January 8, 2020

By Lynda Kiernan

PowerPlant Ventures has led a $7.5 million funding round for OWYN (Only What You Need), a leading plant-based and functional protein beverage and nutritional products company. 

Joining PowerPlant in this round were existing investors Clearlake Capital Group, and Halan Brands, a better-for-you food and beverage brand accelerator and investor.

“When we initially invested in OWYN, we partnered with Halen Brands to implement the Clearlake O.P.S.® framework, including initiatives focused on recruiting a highly effective leadership team and world-class sales organization to quickly scale OWYN,” said Sean Courtney of Clearlake.

“We are confident that adding PowerPlant’s expertise in plant-based food and beverage investing will only enhance OWYN’s successful trajectory.”

PowerPlant Ventures, a private equity firm dedicated to investing in emerging plant-based food and beverage companies, and backer of some of the leading brands in the category, including Beyond Meat, Ripple Nutrition, and Thrive Market, announced it had closed its second fund – PPV Fund II, at $165 million in August 2019.

Plant-based proteins have possibly been the most prominent narrative within the food sector in recent years, leading the plant-based food sector to be one of the fastest growing and dynamic spaces within the investment universe – evidenced by PPV Fund II closing at more than three times its predecessor, and exceeding its original target of $100 million by more than 50 percent.

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.

OWYN

OWYN’s cornerstone line of all-natural, protein beverages are free from the top eight allergens, and use a proprietary blend of flax, pea protein, and pumpkin seed as a protein source instead of the widely used whey, eliminating any dairy.

The line includes six shelf-stable flavors – Dark Chocolate, Cold Brew Coffee, Smooth Vanilla, Cookies N’ Cream, Turmeric Golden Mylk, and Strawberry Banana – each providing 20 grams of protein, and has less than four grams of sugar and less than 180 calories per serving. Recent additions include meal replacement shakes in Chocolate, and Chai. 

“OWYN brought much needed innovation to the protein beverage category, and its products clearly hit the spot for consumers looking for plant-based options with great flavors and clean ingredients,” said Mark Rampolla, co-founder and partner, PowerPlant Ventures. “We are thrilled to partner with Mark and team to leverage their great work to date, accelerate growth, and help OWYN become one of the next great plant-based brands.”

As one of the fastest growing protein brands in the natural category, the capital raised through this funding will support OWYN as it accelerates its growth and prepares for its expansion into the conventional grocery space next year.

OWYN president Mark Olivieri told BevNET that the company is projecting retail revenue in 2020 of between $90 and $100 million – up from $20 million in 2018, and $50 million in 2019. 

In Q1 2020 the company will be adding new accounts with Target, Publix, Vons, and Albertsons/Safeway, as well as expanding into the drug store channel with a new nationwide account with CVS.

Expansions are in the works with its existing accounts too, including Whole Foods, Vitamin Shoppe, and Sprouts, while its online presence remains strong through its retail partners including Amazon, and its liveowyn.com website.

Geographically, this growth will focus on the U.S. Northeast and Mid-Atlantic regions, but also will focus on the New York metro area, and Los Angeles markets, Olivieri told BevNET.

“OWYN’s success in evolving into a thought leader in functional, plant-based nutrition is another example of the value that Clearlake’s partnership with Halen Brands can bring to promising better-for-you brands,” said Arta Tabaee, managing director at Clearlake. “We look forward to partnering with PowerPlant and Halen on the next phase of OWYN’s evolution.”

– 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.