Venture capital firm PowerPlant Partners announced an investment in and partnership with holding company SYSTM Brands today to launch SYSTM Foods, a new platform focused on acquiring sustainable and socially conscious food and beverage brands. Terms of the deal were not disclosed.
SYSTM was founded in 2021 by Andy Fathollahi, an entrepreneur with over 200 patents who grew the company from a single product line to a diverse portfolio of owned brands. While its website does not detail other companies held by SYSTM’s larger platform, Fattollhai’s LinkedIn profile also lists him as the CEO of robotics company Ozbot and vaporizer brand Kanvas.
The firm’s thesis is that an ongoing global supply chain shortage, heightened by the pandemic, has opened the door to acquire and expand disruptive brands. In a press release, PowerPlant said it is particularly interested in changing consumer habits citing plant-based brands as an example.
SYSTM Foods will aim to scale impact-driven brands that are focused on improving the community and the environment for the next generation by expanding distribution, revenue and profits.
The full press release can be found below:
NEWPORT BEACH, Calif.– PowerPlant Partners, an emerging growth equity firm investing in disruptive consumer and enablement companies that are better for humanity and the climate, today announced a partnership with SYSTM Brands, a consumer products brand platform, to create SYSTM Foods, a new premium, impact-focused food and beverage (F&B) brand platform. Operated by the SYSTM Brands team, with PowerPlant Partners as the lead investor, SYSTM Foods will seek to acquire and grow leading F&B brands that aim to bring innovative formulations to market in a sustainable, socially conscious manner.
PowerPlant Partners believes that COVID and the global supply chain challenges have created opportunities to acquire strong brands with good long-term potential at rational valuations. To execute such a strategy, PowerPlant partnered with SYSTM Brands, a strong group of operators with deep expertise in buyouts and operations.
SYSTM Brands, founded in 2021, is led by a team of proven executives, experienced operators, and passionate founders who are dedicated to growing brands that deliver truly impactful and innovative products. The group utilizes its collective experience, expertise, and network to create, partner with, and acquire brands with a results-driven approach to product development, and seeks to expand and scale its brands thoughtfully and profitably.
“With this partnership, we will offer impact-driven brands operational excellence to help them grow profitably,” said Julianne Hummelberg, Vice President, PowerPlant Partners. “We know the SYSTM Brands team can help elevate these brands to the next level of sustainability while expanding distribution, revenue, and profits.”
“The new capital partnership with PowerPlant Partners is a validation of our founding vision, to deliver truly impactive and transformative products while growing brands focused on the next generation,” said Julian Cheng, CIO & Founding Partner, SYSTM Brands.
Mark Rampolla, Co-Founder and Managing Partner, PowerPlant Partners added, “These are challenging times, and battled-hardened, experienced operators are more helpful than ever to emerging brands. The SYSTM team brings decades of experience across a variety of industries which we believe will help our current and future portfolio companies successfully navigate these complicated waters.”