By Gerelyn Terzo, Global AgInvesting Media

Manna Tree, a global private equity firm with office hubs in Denver, Minneapolis and New York specializing in health and nutrition-based investments, is making a portfolio exit. The firm will sell its stake in Health-Ade Kombucha as part of a newly announced acquisition by Generous Brands, a growth platform focused on premium, high-velocity food and beverage companies. According to a report in The Wall Street Journal, the sale comes with a $500 million price tag, a sign of the growing investor appetite in health-forward consumer-packaged goods (CPG) brands.

Manna Tree first invested a controlling stake in Health-Ade in 2021 alongside First Bev, helping scale the kombucha maker’s operations and commercial reach during a period of rapid category growth. Founded in 2012, Health-Ade has since become one of the most recognizable kombucha brands in the U.S., with products in over 65,000 retail locations and nearly $250 million in annual retail sales.

Manna Tree Managing Partner Steve Young told GAI News, “We’re proud to have worked hand-in-hand with Health-Ade on its journey to becoming one of the fastest-growing kombucha brands in the U.S. Consumers’ embrace of functional beverages continues to grow, and Health-Ade has built a brand that resonates strongly and has even more runway to expand now as part of the Generous Brands refrigerated beverage platform.”

First Bev Managing Partner Kyle Wheeler stated, “From its early days at farmers markets, we recognized Health-Ade’s exceptional potential and are incredibly proud to have supported the business from a start-up to a cornerstone brand.”

Generous Brands, owned by Butterfly Equity, adds Health-Ade to a portfolio that includes Sambazon açaí, Evolution Fresh and Bolthouse Farms. “We feel like we’re still at the beginning of this consumer revolution of choosing healthier, tastier products out there,” Generous Brands CEO Steve Cornell told the Wall Street Journal.

The Health-Ade exit is reportedly Manna Tree’s third since its founding in 2018, reflecting the firm’s selective, mission-driven strategy. Managing more than $600 million in AUM, Manna Tree targets health and wellness businesses showing strong fundamentals, typically investing $25 million to $75 million in companies with 20 percent-plus annual revenue growth, category leadership and scalable operations.

Health-Ade’s trajectory, from a small kombucha startup to a national brand, demonstrates how Manna Tree supports founders beyond capital. The firm brings operational firepower in the form of strategic planning, commercialization and expertise, helping consumer brands transition from early momentum to institutional scale. Manna Tree Co-Founder Ellie Rubenstein has said the firm’s mission is to drive meaningful health outcomes through smart capital and long-term partnerships.

Manna Tree’s portfolio includes over a dozen companies, including Vital Farms, Gotham Greens, Good Culture, True Food Kitchen, Verde Farms and Urban Remedy. Each brand reflects the firm’s broader goal of backing better-for-you platforms with loyal consumer followings and long-term global potential.

The Generous Brands acquisition is also part of a broader wave of consolidation in the health beverage space. Big players like PepsiCo, which in early 2025 paid close to $2 billion for prebiotic soda brand Poppi, are looking to bolster portfolios with high-growth, gut-health-oriented drinks.

Additionally, private equity continues to play a central role in the health-forward beverage wave. Firms such as VMG Partners, overseeing a $1 billion consumer growth fund and known for backing brands like Spindrift and Kind, are targeting wellness innovation in food and drinks. Meanwhile, sector M&A surged in 2024, with PE participation rising to more than 35 percent of deal volume in the broader food and beverage sector.

Manna Tree and First Bev’s exit from Health-Ade to Generous Brands reflects the strong demand for health-focused CPG brands, particularly in functional beverages like kombucha. With private equity fueling food and beverage M&A, it is fair to expect continued deal momentum as firms like Manna Tree and others target high-growth, wellness-oriented companies while seeking to capitalize on consumer trends favoring scalable, health-driven brands.

On the future pipeline, Manna Tree’s Young told GAI News, “Looking at the rest of 2025, we remain bullish on the health and wellness sector, which continues to be a resilient driver in the consumer market. Despite broader economic headwinds, we’re seeing sustained growth and an overall prioritization of wellness and transparency, largely driven by younger generations.”

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