May 7, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Los Angeles-based, food-focused private equity firm Butterfly announced the imminent separation of its portfolio Bolthouse Farms into two distinct standalone businesses: Bolthouse Fresh Foods and Generous Brands.

Bolthouse Fresh Foods will continue as a leading North American supplier of fresh carrots with nearly 700 million pounds sold annually, and Generous Brands will now encompass the premium fresh beverage and salad dressing business of Bolthouse Farms and Evolution Fresh. 

Butterfly has held Bolthouse Farms for about five years after acquiring it from Campbell Soup in early 2019 for $510 million. Over the course of its ownership, Butterfly has implemented multiple strategy initiatives that have resulted in Bolthouse Farms’ topline growth exceeding 30 percent, while re-establishing the company as a leading partner to produce departments across North America. 

Additionally, Bolthouse Farms acquired Evolution Fresh from Starbucks in August 2022, combining two powerful beverage brands with complementary product lines, channel penetration, and consumer bases. 

The separation of Bolthouse Farms is being carried out via distinct debt recapitalizations of each business, enabling Bolthouse Fresh Foods and Generous Brands to continue as two separate companies with purpose-driven strategies and leadership teams. Butterfly also expressed that it expects these transactions to foster accelerated growth due to increased flexibility for investment in capabilities as well as acquisitions. 

“We’re incredibly excited to announce the separation of Bolthouse Farms into two distinct industry-leading platforms, which will further propel the growth of these businesses and their ability to outperform for customers throughout the world,” said Adam Waglay, co-founder and co-CEO, Butterfly. 

“This separation was always part of our investment thesis, and we have recruited best-in-class leadership teams which are strategically aligned to each business so that Bolthouse Fresh Foods can focus on delivering high quality, fresh produce with excellent service and Generous Brands can become a strong, consumer-centric business with superior fresh beverage brands.”

As part of the restructuring, Butterfly operating partner Jeff Dunn has been promoted from CEO to executive chairman of both companies, while Timothy Escamilla, former president of Dole Fresh Vegetables, has been appointed as CEO of Bolthouse Fresh Foods. Escamilla joined Bolthouse Fresh Foods as CEO in May 2023, bringing 30 years of experience in the produce industry with leading companies such as Dole, Tanimura & Antle, Ready Pac Foods, and more.

“Bolthouse Fresh Foods remains dedicated to nourishing people’s lives by providing high-quality, nutrient-dense products that continue to thrive in today’s dynamic marketplace,” said Escamilla. 

Likewise, Steve Cornell, former president of fresh, beverages and desserts with The Kraft Heinz Company, has been appointed as CEO of Generous Brands. Cornell joined the company in the role in January 2024 with more than 15 years of experience at Kraft Heinz, having led globally reorganized brands including  Heinz, Philadelphia, and Capri-Sun.

“Generous Brands is an exciting consumer-centric platform, with iconic and fresh beverage brands,” said Cornell.“ This transaction will enable Generous Brands to meet the needs of more consumers through more innovation, new investments in our business, and acquiring complementary brands to take our platform to its full potential.”

“This separation is proof that the future of value creation within private equity is grounded in deep operational expertise and transformation through specialization, and we could not be more appreciative of the amount of work, creativity and collaboration that went into this from all teams,” added Dunn.

“It’s been amazing to watch the two entities develop their own unique cultures during the transition, and we are proud of the robust teams we have built across the companies. By separating, each business is now unleashed to drive its own unique growth strategy to ultimately deliver more fresh, healthy food for more people.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News. She can be reached at lkiernan-stone@globalaginvesting.com.

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