Atlanta-based kids drink brand good2grow was acquired today by Chicago-based private equity firm Wind Point Partners, which purchased the brand from its owner Kainos Capital. Terms of the deal were not disclosed.
Founded in 1997, good2grow produces clean label, RTD juices, fortified waters and flavored milks and has now emerged as one of the fastest growing brands in the kids drink space. In addition to its better-for-you positioning, the company has driven growth through its collectible bottle tops, featuring cartoon characters from Disney, Hasbro and Nickelodeon, to name only a few of the brand’s licensing partners.
Since 2018, good2grow has been part of the Kainos portfolio and, according to the firm, has doubled in size.
“We chose to partner with the Kainos team in 2018 with the belief that their sector knowledge and network of relationships – in particular in the c-store channel – would be invaluable, and this proved to be true,” good2grow CEO Gunnar Olson said in a press release. “They are a great team to work with, and they execute with speed and certainty.”
Under Kainos, the brand expanded its DSD distribution network nationwide, added to the product portfolio with the launch of waters and milks and revamped the brand’s marketing strategy with a stronger focus on in-store activation.
But it was the expansion of good2grow’s brand marketing partnerships with kid-friendly companies that has been one of its biggest growth drivers. In May, VP of marketing Edrza Gibson told BevNET that the growth of streaming services and increased home viewing during the pandemic was a significant booster for the brand as families watched more content and became familiar with new properties. In particular, sales spikes can often be times towards big film releases, as the brand saw its Trolls and Scooby-Doo licensed drinks rise in time with the releases of the films Trolls World Tour and Scoob!
According to NielsenIQ, good2grow’s flavored water retail dollars sales were up 77.9% to $31.8 million in the 52-week period ending November 6. On a two-year stack basis, those sales were up 86%. IRI data for the 52-weeks ending October 3 showed strong dollar sales in MULO plus convenience, with flavored fruit drinks (+33.2% to $51.6 million), apple juice (+29.8% to $88.4 million) and fruit juice blends (+41.8%) all up double digits.
Wind Point Partners is a private equity firm focused on consumer products, industrial produces and business services. Its portfolio includes companies such as Stir Foods, cookies and crackers brand Nonni’s and Bakery Chef.
Robert W. Baird and Credit Suisse served as financial advisors to good2grow and Weil, Gotshal & Manges LLP served as its legal counsel.