By Lynda Kiernan
Family-owned MMG Equity Partners has invested $5 million in POWERFUL Foods, a leader in natural, high-protein foods and beverages marketed toward consumers living an active lifestyle. The investment was made through MMG Consumer Brands (MMGCB), MMG’s consumer brands investment platform.
This funding follows a $4 million Series B that the company ended up closing in December 2017, led by private equity firm, River Hollow Partners, and asset-based lending (ABL) financing through a partnership with New York-based Gerber Finance. Eventually, the round was joined by California-based food and beverage investment firm Cambridge Company SPG.
Founded in 2013 by Carlos Ramirez in Miami, Florida, Powerful is credited with creating the “brogurt” category, when it released its first Greek yogurt targeted toward men, and employed the first black packaging in the dairy aisle. Since then, the company has grown into a multi-category lifestyle brand that is focused on both men and women.
“When we launched with Powerful Yogurt in 2013, we focused on men, but almost immediately we could see that our products appealed to both men and women, and women now account for about 60 percent of our customer base,” Sara Goldthwait, chief commercial officer at Powerful, told FoodNavigator-USA in 2017.
Today, the company has a reputation as being fast-moving and innovative, and has grown into a multi-category active lifestyles brand platform with a portfolio that includes POWERFUL Yogurt, POWERFUL Drinks, POWERFUL Oatmeal, POWERFUL Smoothies, and POWERFUL Bites, all of which are high in protein and made with natural ingredients.
“We partnered with POWERFUL because we believe in the potential of the brand and the platform Carlos and his team have created,” said Jon Raccah, director, MMG Equity Partners. “Not only have they proven the ability to disrupt sleepy product categories with unique and innovative products, but they have carved out a niche with a brand that resonates, particularly with the coveted millennial consumer.”
A Break with Breakfast
Not only is POWERFUL targeting health-conscious Millennials, but its product line has a focus on alternatives to traditional breakfast foods.
For about 10 years breakfast cereals have been losing market share as consumers raise concerns about their nutritional content and lack of convenience, opting instead for higher protein choices like yogurt or breakfast bars.
Meanwhile, consumer demand for value-added, or functional foods and beverages that offer higher protein content also continues to grow, with expectations that the global functional foods market will reach a value of $275.77 billion by 2025, according to Grand View Research.
With market prospects such as this, and products already being sold in more than 12,000 U.S. stores, including Walmart, POWERFUL plans to use the funds from this round to support the launch of its innovative POWERFUL 2.0 platform by accelerating product development, manufacturing, sales, and marketing to reinforce its place as a high-protein food and beverage brand platform.
“We could not be more thrilled to partner with MMG to take POWERFUL Foods to the next level,” said Carlos Ramirez, CEO and founder, POWERFUL Foods. “The opportunities for our high-protein, great-tasting offering has expanded greatly as consumers look to incorporate high-protein products into their diets, creating a significant and growing marketplace for our platform. We are thrilled, but not surprised, that a prominent private equity firm like MMG recognizes the tremendous potential of our brand and the passion behind it.”
– 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.