By Lynda Kiernan
Soulfresh, a Melbourne-based “better-for-you” alternative food and beverage company, has secured an impressive investment of AU$49 million (GBP26 million, US$35 million) from European vertically integrated consumer and retail innovator and investment firm, True.
As part of the investment, True will also manage a new capital commitment from Soros Capital Management, the family office of Robert Soros, and will leverage Soros’ extensive asset base and network to help Soulfresh achieve its goals.
Founded in 2003, Soulfresh is disrupting traditional food and beverage verticals by championing better-for-you alternatives for mainstream consumers. Focusing in on market shifts toward low sugar, natural, plant-based, and sustainable products, Soulfresh is targeting categories reflecting some of the greatest rates of growth in the industry.
For example, plant-based foods continue to post growth rates that are eight times those of the global meat category, a market valued at GBP171 billion (US$228 billion), and living beverages are delivering a CAGR of nearly 30 percent, compared to a stagnant global soft drinks category, worth GBP278 billion (US$369 billion), according to a recent press release announcing True’s investment.
“At True we invest in business models that are at the forefront of consumer behavioral shifts. Soulfresh is at the epicenter of the global health, wellness and sustainability mega-trends with a focus on R&D and innovation that is market-leading,” said Matt Truman, co-founder and CEO, True.
Today, Soulfresh operates within three core verticals, managing a portfolio of 11 owned brands across fermented (living) beverages, plant-based foods, and beverages, including Lo Bros, a kombucha range of drinks; Nutty Bruce, a line of plant-based milk alternatives; Pico, an organic vegan chocolate brand; and Eaty, plant-based meats.
“In the past 15 years Soulfresh has experienced a great deal of growth off the back of disrupting mainstream categories like juices, soft drinks and dairy milk,” said Didi Lo, founder and CEO, Soulfresh. “We have been looking for the right partner to take our fast growing, innovative global business to the next level and have found that in True.”
Moving forward, True will work with Didi Lo and the Soulfresh management team to achieve scalable growth and international expansion beyond the company’s current reach across Asia Pacific, the UK, the EU, and South Africa.
To do this, True will leverage its unique business model and its innovation hub that engages the most forward-thinking consumer brands in the market, including grocery giants, Waitrose, M&S, UK-based Morrisons, 7-Eleven, TJX, and Shell to accelerate distribution for Soulfresh. In addition, the firm also will utilize its Live Network to help isolate next-generation products, marketing solutions, and technologies to grow Soulfresh’s brands both domestically and internationally.
“Our unique business model will allow us to genuinely add value for Didi and his team who have built a fantastic platform of brands with potential for rapid growth,” said Truman.
As part of the tie-in, food industry veteran Ben Clarke will also be joining the Soulfresh board of directors. Clarke brings more than 25 years of experience in growing food brands, most recently as chairman of the highly successful Grenade protein brand. Clarke also led Burton’s Biscuit Company as CEO from 2009-2016, during which time he oversaw its subsequent sale to a Canadian pension fund, and the sale of the Cadbury business to Mondelez.
Beyond this, Clarke also spent 15 years in various management roles with Kraft Foods including director for Australia/New Zealand, and UK/Ireland, is a senior industry advisor at Bain Capital, and works with the innovative “Young Foodies” platform in the UK, advising disruptive young food and beverage brands.
“We are delighted to welcome Soros as an investor, and to have also secured Ben Clarke as chairman and together are excited to be partnering with the Soulfresh team for the next phase of growth,” said Truman.
“Matt and his team are genuine entrepreneurs and not only have the retail and consumer expertise but are a great cultural fit for Soulfresh,” said Didi Lo.
“At Soulfresh, we are passionate about innovation, growth and championing healthy food and drinks for the mainstream, and in True we have found a partner who believes in the scale of the opportunity these market shifts provide. We are delighted to be working with them for the next phase of our journey.”
– 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.