Vegan brand Good Karma Foods has regained majority ownership of its flaxseed milk and yogurt business from recently bankrupt dairy giant Dean Foods. Last November, Dallas-based Dean Foods—the largest producer of dairy milk in the United States—filed for bankruptcy due to shifting consumer preferences and private-label competition. This presented Good Karma with the opportunity to regain ownership of its brand. A “significant” but undisclosed investment from early-stage food fund Valor Siren Ventures and existing investor 2x Consumer Products Growth Partners allowed Good Karma to buyout interest from the dairy company, which became a majority stakeholder after multiple investments in the vegan company since 2017.
“We’re on a mission to inspire goodness and provide plant-based options that are nutritious, surprisingly delicious and creamy, and free of allergens,” Doug Radi, CEO of Good Karma, said. “We could not have found a better partner than Valor Siren Ventures to help us bring more plant-based goodness to more places, and [we] are honored to be among the mission-driven teams and brands in their portfolio.”
Good Karma plans to continue to operate as a Boulder, CO-based independent company led by its existing leadership team. With the new investment partners, Good Karma plans to expand distribution, innovate in a variety of other plant-based categories, and expand its brand-building and consumer awareness programs.