April 22, 2020

By Lynda Kiernan

British plant-based yogurt and dessert company The Collaborative (formerly called The Coconut Collaborative) announced it has raised $7 million from PowerPlant Ventures, and has named a new CEO amid a rebranding that will position the company for rapid U.S. expansion. 

Company founder James Averdieck also founded the dessert company Gü which he sold for £32 million in 2010. At that time he acquired a majority stake in the European non-dairy ice cream business Bessant and Drury, which eventually became the Coconut Collaborative, and then, The Collaborative, according to NOSH, which goes on to state that the company began looking to the U.S. market in 2018.

Mark Rampolla, the co-founder and managing partner of $165 million PowerPlant Ventures, and who now also serves as a board member for The Collaborative, told Forbes that he had been watching the company since its arrival in the U.S., but decided to pull the trigger on investing once the company took on Meiky Tollman as its new CEO. 

Most recently, Tollman served as the general manager, COO, and executive vice president international for Sabra Dipping Company over a period of 15 years. However, after being introduced to The Collaborative through a headhunter, Tollman was struck by the company’s mission and is driven to lead revolutionary category growth with the company’s low-sugar, non-GMO, gluten-free, plant-based products that offer nutritional benefits, taste, and sustainability.

“For me, coming to The Collaborative is motivating and inspiring to work with one of the fastest-growing category growth drivers of plant-based products on the market that is also purpose driven. I’m excited to join the team as we are committed to spreading plant-based moments of joy to America with a collaborative essence and good intentions, something that is very much needed today and will be needed tomorrow,” said Tollman.

Today, the company has six products on the U.S. market: single serve yogurt cups in Vanilla, Plain, Blueberry, and Mango Passion Fruit, and two chocolate puddings. However, The Collaborative has multiple products in the pipeline for launch on the American market that will triple its lineup, including: plant-based desserts in Vanilla Rice Pudding, Double Chocolate Mousse, and chocolate pudding varieties, along with new sizes of yogurts including 4.2oz, 7oz, and 12.3oz multi-serve available in Plain, Vanilla, Alphonso Mango & Passionfruit, and Blueberry & Rosemary varieties.

A Big Narrative 

Demand for plant-based protein continues to rise. Between 2013 and 2017 launches of vegan-focused food and beverage startups saw average annual growth exceeding 45 percent, according to Innova Market Insights, and shipments of plant-based products to food service distributors to retailers and operators increased by 20 percent  in the 12 months ending November 2018, compared to the previous year, according to the NPD Group.

Today, a full 25 percent of U.S. consumers say they eat and drink plant-based foods for a variety of reasons, ranging from dietary and health reasons, to concerns over animal welfare and the environment.

All of this rapid change – not only toward plant-based diets, but consumers also being more engaged in their food and its supply chains – has created a space ripe for investment.

“Not only will this investment and partnership allow us to leverage the momentum of our growth, but also further expedite our expansion into more conventional and natural grocery channels. We are honored to have the support of one of the best plant-based food investment firms who sees and believes in our essence, mission, and vision,” said Tollman.

Indeed, having PowerPlant in its corner is having a leading driver in growth for plant-based startups. Founded in Los Angeles in 2015, PowerPlant is led by an impressive team of founders: Mark Rampolla, the founder of ZICO Beverages, a coconut water pioneer that was acquired by The Coca Cola Company in 2013; Kevin Boylan and T.K. Pillan, co-founders of Veggie Grill, the largest plant-centric restaurant company in the U.S.; and Dan Gluck, co-founder of Health Warrior, a superfood brand acquired by PepsiCo in 2018.

In 2016 the firm announced the close of its first fund at $42 million, with a portfolio at the time that included  Hail Merry – a  vegan, gluten-free, dairy-free, non-GMO snack company; REBBL – a plant-based protein drink company; Thrive Market – an online gluten-free, non-gmo, non-toxic, vegan marketplace; Terravia – a biotech company; Hampton Creek – a plant-based food company; Treasure8 – a food innovation and technology company; and Juicero – an organic, cold-pressed juice company.

Then in August 2018 the firm closed its PPV Fund II at more than three times its predecessor, exceeding its original target by more than 50 percent.

Most recently, in January of this year, PowerPlant led a $7.5 million round for leading plant-based and functional protein beverage and nutritional products company OWYN (Only What You Need). Other prior investments include Beyond Meat, Your Super, Beanfield Snacks, Rebbl, and Thrive Market, among others.

– 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.com.