May 22, 2018

CAVU Venture Partners has led a $20 million funding round for REBBL, a maker of organic and functional coconut milk-based, super-herb beverages. Under the terms of the funding agreement, CAVU co-founder Clayton Christopher will join the REBBL Board.

Founded in 2011, REBBL is an impact-driven company that states it was “born out of a conscious collaboration between global thought-leaders, whose soul purpose was to address the malfunctioning global food system through a regenerative business model that would respect, uplift, and delight the world.”   

Working within a regenerative business model, the company ethically sources organic whole roots, extracts, berries, barks, and leaves such as matcha, turmeric, ashwagandha, maca and schizandra from 29 different countries to make functional, nutrient-dense beverages that are soy-free, gluten-free, GMO-free, and made without cane sugar, carrageenan, thickeners, gums, natural flavors, or agave.

Furthermore, REBBL is partnering with its non-profit co-founder, Not For Sale, donating 2.5 percent of its net sales to Not For Sale to support the eradication of human trafficking. It is this deep dedication to social justice, health, ethical business practices, plant-based nutrition, and traditional herbal wisdom that sets REBBL apart from the herd in an increasingly crowded category.

“We’ve long admired REBBL not just for its exceptional products, but also for its mission to make a real difference in the world,” said Clayton Christopher, co-founder and managing partner at CAVU Venture Partners. “Their seasoned management team spearheaded by CEO Sheryl O’Loughlin and co-founder Palo Hawken know inside and out who they are as a brand. REBBL has disrupted the functional beverage space while simultaneously highlighting the positive impact an innovative social enterprise can have on our world.”

All told, this business model has seen REBBL post triple-digit growth since its launch, which has attracted not only CAVU, the backer of powerhouse brands including BAI Brands, Health-Ade Kombucha, and Bulletproof Coffee, but BIGR Ventures, and PowerPlant Ventures.

“We are so excited to welcome CAVU Venture Partners to the REBBL family,” said Sheryl O’Loughlin, CEO of REBBL. “It was important to our team that whoever we brought on during this round of funding felt as passionate as we do about our REBBL mission. CAVU exemplifies this and co-founder, Clayton Christopher, will join our board. With his experience as a founder of Sweet Leaf Tea and Deep Eddy Vodka, his addition will enhance the deep brain trust already in place. This includes the best of the best in the beverage industry such as Duane Primozich from BIGR Ventures and Mark Rampolla from PowerPlant Ventures, whose forward-thinking companies also chose to continue to invest in the brand.”

Power to the Plant

The plant protein and plant-based narrative is rapidly becoming mainstream among both consumers and investors.

The deepening of the connection between consumers and their food supply chains, along with a rising popularity of veganism, concerns over animal rights, and awareness around the hormones, antibiotic usage, and unsustainability inherent in the global livestock industry have pushed many consumers to opt for organic, plant-based alternatives to their traditional food and beverage choices.

The plant-based food sector is one of the fastest growing and dynamic investment spaces within the investment universe. Launches of vegetarian startups increased by 60 percent between 2011 and 2015, according to Innova Market Insights reports Inc.  Even more telling of how the category is growing is that more than one-third of consumers now consider themselves to be “open to plant-based products,” according to the Global Food and Drink Trends Report 2016 issued by Mintel, and sales of meat alternative products are expected to reach $5 billion by 2020, reports Latest Vegan News.

“…the growing ranks of novel protein sources and potential replacements appeal to the everyday consumer,” states the report, “foreshadowing a profoundly changed marketplace in which what was formerly ‘alternative’ could take over the mainstream.”

This wave of preference for plant-based proteins by consumers, combined with a deepening knowledge about the food supply chain, has resulted in consumers not only wanting more functional, plant-based options in their own diets, but in the diet of the chickens that lay their eggs, and the livestock that are raised for consumption.

In July of last year, Cargill announced that it has entered into a strategic partnership with Delacon – the pioneering global leader in phytogenic (plant-based) feed additives with natural plant-based extracts, herbs, and spices – through an unspecified minority equity investment. Although the financial details of the deal were not disclosed, Chuck Warta, president of Cargill Premix and Nutrition, told the Star Tribune that the investment was the largest investment to date by Cargill in the area of natural animal feed.

“Phytogenics are one of the most promising groups of feed additives, and are turning from a niche market into a mainstream need,” said Markus Dedl, chief executive officer of Delacon, in a joint statement announcing the partnership with Cargill. “We are entering a new era of phytogenic feed additives, and the next five years are decisive for the developments in this growing market.”

REBBL With a Cause

For REBBL, which currently sells its beverages at 7,000 retailers, this funding will enable the company to seize opportunities presented by a growing market. The company plans to expand its team, increase marketing efforts with the goal of deeper household penetration, expand its sales function, and enrich its R&D efforts. It also will support the company in furthering its social mission.

“When Not for Sale set out to create a company to further its mission, we could have never imagined what a success it would be,” says Dave Batstone, president of Not for Sale and REBBL board member. “To date, REBBL has donated over $630,000 to help our mission of creating a future without human trafficking and we know with this additional capital, the deeply experienced team at REBBL will grow this number in the years to come, giving more back to the world we live in.”

-Lynda Kiernan