By Lynda Kiernan
Leading plant-based beverage and food company Califia Farms has raised one of the largest rounds in the natural foods sector, closing on a $225 million Series D led by the Qatar Investment Authority (QIA).
Joining the round were the Singaporean sovereign wealth fund Temasek, Canada-based Claridge, Hong Kong-based Green Monday Ventures, and an unnamed family based in Latin America with significant interests in coffee and consumer products.
Named after the Spanish mythical Queen Califia, ruler of the island of California, Califia Farms began in 2010 as a juice company, pressing “ugly fruit” to produce its beverage line. Today, the company has grown into one of the leading and fastest growing natural beverage companies of scale in the U.S. offering plant-based beverages including almond milks, dairy-free creamer, oat milks, dairy-free probiotic yogurt drinks, and Nitro cold brew coffees.
This significant injection of capital will be used by the company to fund the expansion of its product lines, including oat milks, a dynamic segment in the plant-based milk category. Company founder and CEO Greg Steltenpohl also intimated to Reuters that the company will also develop new products that reach beyond beverages, but did not provide further details.
Although this is a landmark funding round, Califia has a history of large capital raises. In 2015 the company announced it had secured $50 million from New York-based private equity firm Stripes Group, marking the first outside investment for the company, which had been majority owned by Sun Pacific, a producer of citrus fruit, tomatoes, kiwi, and grapes that markets over 35 million boxes of fruit annually.
Two years later the company secured $15 million through a lease structure with CapX Partners to fund the acquisition of new bottling and pasteurization lines to expand capacity. A second $50 million round followed in 2018, led by Ambrosia Investments and including Sun Pacific and Stripes Group.
“Califia is at the intersection of some of the most powerful trends to shape the food system in the last 50 years. With its strong lifestyle brand, track record of innovation and cross-category leadership, Califia is uniquely positioned to capitalize on these trends,” said Sandeep Patel, CFO of Califia, in 2018.
These trends referred to by Patel are driving significant growth for plant-based food and beverage categories, which are expected to grow at a CAGR of 13.82 percent to reach a value of $80.43 billion by 2024, according to BIS Research.
And drilling down to consider just plant-based beverages, the segment that was valued at $11.16 billion in 2017 is expected to grow at CAGR of 12 percent to reach a value of $19.67 billion by 2023, according to research conducted by MarketsandMarkets.
As plant-based foods and beverages continue to gain traction with consumers, Califia said it is looking to engage on a deeper level with a more global investor base.
“Speed to market is critical for companies at our stage and we are thrilled that our new partners share our vision to be the leading independent brand in the plant-based sector,” said Steltenpohl. “Each of our partners brings significant resources and global expertise to accelerate our next stage of our growth.”
“The more than $1 trillion global dairy and ready-to-drink coffee industry is ripe for continued disruption, with individuals all over the world seeking to transform their health & wellness through the adoption of minimally processed and nutrient rich foods that are better for both the planet and the animals,” continued Steltenpohl. “Califia’s role is to help plant the future.”
– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.