Health-Ade’s investors are selling the company to Generous Brands, a portfolio company of private equity firm Butterfly Equity, for approximately $500 million.
“With its purpose-led brand and products that are positioned at the intersection of delicious taste and modern health trends, Health-Ade fits perfectly into our platform and growth strategy, said Generous Brands CEO Steve Cornell in a statement. “This exciting addition to the Generous Brands portfolio will accelerate our mission of inspiring more people to thrive through the power of vibrant nutrition.”
The kombucha brand, founded by husband-and-wife team Justin and Daina Trout and Vanessa Dew, has long been the major alternative to category leader GT’s.
Health-Ade sold $182 million in kombucha over the past 52 week period ending June 15 – up 8% from the previous 52-week period, according to data from retail information group Circana, good for a 24% share of the refrigerated kombucha category. GT’s was at close to $340 million in the same category. Both brands have other products; Health-Ade’s SunSip is intended to compete with prebiotic “Modern Soda” brands like Poppi, Olipop, and Culture Pop.
Generous Brands, a platform that includes Bolthouse and Evolution Fresh juices, as well as manufacturing for açaí brand Sambazon, has been pushing to acquire Health-Ade for more than a year. Health-Ade has long been rumored to be on the market, with CEO Chris Lansing brought in at the end of 2022 to accelerate growth and make it a more appealing sales target.
“This announcement marks a natural evolution in Health-Ade’s journey and an exciting milestone for the premium refrigerated beverage category,” Lansing said in a statement. “Health-Ade and Generous Brands are aligned in their unwavering commitment to delivering exceptional taste while prioritizing clean, nutritious ingredients. We are excited and confident that Generous Brands is the right platform to unlock Health-Ade’s full potential and introduce even more people to the power of gut-healthy beverages. We are grateful to our founders who helped pioneer this category, and to First Bev and Manna Tree for their support and partnership to help us grow to where we are today.”
Both First Beverage and Manna Tree Partners, Health Ade’s primary investors, will maintain stakes in the company as shareholders in Generous Brands, according to a statement from the company.
With the acquisition, the Generous Brands portfolio will have nearly $1 billion in retail sales, the company said.
This is a developing story.