Grady’s Calls for Crowdfunding
In the thick of the winter holiday season, New York-based cold brew coffee maker Grady’s is offering its fans a chance to treat themselves to a piece of the company.
Earlier this week, Grady’s Cold Brew announced the launch of a crowdfunding investment campaign via online platform StartEngine. For a minimum of $299 up to a maximum of $10,000, anyone can become an investor in the brand, which markets New Orleans-style cold brew in both ready-to-drink and DIY bean-bag kit formats.
Founded in 2011, Grady’s business is comprised of retail (57%), ecommerce (29%) and food service/corporate (14%). The company is set to surpass $5 million in revenue this year, according to financial details provided by the company, at a valuation of $12.8 million.
As of midday on Friday, the company has raised over $176,000, with 80 days remaining.
Speaking to BevNET earlier today, Grady’s president and co-founder Grady Laird said the company spent a substantial amount of time speaking with beverage funds about potential investment over the past year, but the process led to the realization that “it just wasn’t the right fit for a company like ours.”
“It ended up being so time consuming and it ultimately didn’t work out and we had wasted this first half of the year,” he said. “So we really wanted to take matters into our own hands and have a lot more control in the process, and that’s what we really appreciated about equity crowdfunding.”
For Grady’s, crowdfunding also represented an opportunity to bring its loyal fans closer to the brand, Laird said. Each investment tier includes additional perks, such as product subscriptions, lifetime discounts and even bonus shares.
“I’m so glad that we have the experience of how this works, how to really drive investments on a platform like this,” Laird said. “It’s something that will only get better over time.”
Grady’s isn’t the only beverage startup seeking investment via crowdfunding. Los Angeles-based Genius Juice recently launched a fundraising campaign on WeFunder.Com with the goal of raising $1 million.
JAB to Merge Peet’s and Jacobs Douwe Egberts
JAB Holdings is bringing together two of its major American and European coffee brands to form a new company ahead of a potential IPO in 2020.
Earlier this week, Luxembourg-based JAB announced the merger of Peet’s Coffee and Jacobs Douwe Egberts (JDE) to form JDE Peet’s, with Peet’s CEO Casey Keller serving as the new entity’s first CEO. JDE CEO Frederic Larmuseau is stepping down but will remain on as a special advisor.
As JDE Peet’s, the combined entities represent approximately $7.81 billion in revenue across 140 countries, according to Daily Coffee News.
“JDE Peet’s is an exceptional business with some of the most beloved coffee brands in the world, and I am excited to lead the company in its next phase of growth,” Keller said in a press release. “With our leading positions in many important markets, supported by all the great people in our organization, we are well-positioned to continue achieving strong long-term growth.”
According to a report in the Financial Times, the deal is aimed at helping JAB raise over $3.35 billion through an initial public offering sometime next year in a venue yet to be announced. Should that occur, JDE Peet’s will become the world’s largest publicly traded coffee company.
In addition to its roasting and retail operations, which includes packaged and RTD coffee, Peet’s also owns several beverage businesses, including Portland-based Stumptown Coffee Roasters, Chicago-based Intelligentsia Coffee and Revive Kombucha.
IFF Set to Join DuPont’s Nutrition & Science Unit
New York-based ingredient supplier International Flavors and Fragrances (IFF) is set to complete a reverse merger with DuPont’s Nutrition & Science division to form a new company.
Announced on Sunday, the deal values the combined companies at $45.4 million. IFF DuPont shareholders will control 55.4% of the new entity, with the remaining balance going to IFF shareholders. The new company will have estimated 2019 revenue in excess of $11 billion, according to a press release.
DuPont will receive an additional cash payment of $7.3 billion at the close of the deal.
Between the two companies, business interests range across food and beverage, home and personal care, and health and wellness categories.