NextFoods, the maker of functional food and beverage brand GoodBelly, is merging the business with tart cherry juice producer Cheribundi.
As part of the deal, announced today, NextFoods will remain as the majority shareholder of the combined entity, which will operate under the GoodBelly name. Venture capital firm Emil Capital Partners (ECP) is the company’s largest investor.
“Consumers are continuously looking to manage their health through the foods and beverages they consume,” said Andreas Guldin, managing partner and CEO of ECP, in a press release. “We are excited to bring together two talented, driven companies to execute on the vision of better-for-you and better-for-the-planet products that meet growing consumer demand.”
Cheribundi CEO Marcel Bens, who also serves as managing partner and COO of ECP, will take the role of chief executive of GoodBelly, while NextFoods chief executive Juan Gluth will remain with the company as its chief commercial officer.
In an email to BevNET, Bens said the merger is expected to “accelerate innovation” and noted that both brands will continue to focus on functional nutrition products with an eye towards juices, shots and supplements.
“Both Cheribundi and GoodBelly share an ethos of natural or naturally-derived products that offer proven benefits, and, as such, their shared mission makes them a good fit for a merger,” Bens wrote. “Both brands successfully deliver natural performance, specifically in gut health and recovery, through exceptional products and brands that resonate with consumers looking for natural solutions to manage their health. They will now do this together at a larger scale than before. For our team, it was a natural fit.”
Founded in 2004, Cheribundi is based in Stamford, Connecticut and produces a line of functional tart cherry juices and concentrates marketed towards “everyday athletes” with drinks tailored around post-workout recovery and immunity with additional products built around protein and sleep.
In 2020, Cheribundi closed a $15 million financing round led by ECP and at its height the company reported a national footprint of over 50,000 doors. The brand is currently sold to over 400 professional and collegiate sports teams – which will be an “area of focus” for NextFoods, the company said – and reported 120% year-over-year annual sales growth.
Founded in 2006, Boulder, Colorado-based NextFoods markets a variety of probiotic juice drinks, shots, kids drinks, supplements and powders under the GoodBelly label. The brand previously raised $12 million in a 2018 funding round led by 301, Inc. with participation from ECP. Through a partnership with General Mills, the brand previously produced foods such as cereals, bars and yogurts, however Bens said those products had been discontinued “for some time.”
Both Cheribundi and GoodBelly are currently sold in around 20,000 stores nationwide each. Bens said the merger is expected to provide both brands with a foundation to scale and grow the brands, with the company targeting the $1.5 trillion health and wellness industry.
He noted there are no plans to adjust manufacturing for either brand, but the company intends to combine the staff into a single group. He added that the management teams of both brands “are complimentary in skillsets and will continue to support the new company” and team synergies were a “key part of the rationale for the merger.”
“We want to leverage both team’s existing areas of strength to deliver on our combined mission of bringing natural performance solutions to as many consumers as possible,” Bens said. “Additionally, we will unify Cheribundi and GoodBelly sales efforts to deliver more options for retailers looking to deliver on health and wellness for today’s shoppers across the juice, shots, and supplements categories.”