Kraft Heinz’s Evolv Ventures, the $100 million venture fund backed by the prepared foods company, has announced GrubMarket as its first investment.
GrubMarket is a platform that sources local food directly from producers and delivers it directly to businesses and consumers. Terms of the agreement were not released.
“We’re excited to invest in GrubMarket, a platform that is disrupting the food wholesale market,” said Steve Sanger, General Partner of Evolv Ventures. “GrubMarket plans to grow its presence and product offerings through both geographic and product expansion. Evolv Ventures is pleased to support its innovative founders.”
Since Evolv Ventures announced the formation of the fund in October 2018, the fund has quickly established itself by hiring an experienced team of investors and entrepreneurs and is actively working and investing with leading companies in the space, such as GrubMarket.
Evolv Ventures Capital Fund invests in emerging tech companies transforming the food industry. The venture fund aims to accelerate Kraft Heinz’s exposure to emerging technologies and businesses and leverage Kraft Heinz’s position in the industry to become the most value-added investor in the space.
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past perfo
Kraft Heinz’s Springboard, a brand innovation platform launched by the company in 2016 to nurture, scale, and accelerate growth of disruptive brands, has announced its second Incubator Program class.
The program was created to help nurture and develop the next generation of food & beverage brands, while staying close to entrepreneurs, new ideas and consumer trends.
The second Incubator class continues the vision and includes Blake’s Seed Based, BRAMI, Ka-Pop! Ancient inGRAINed Snack Co™, Origin Almond®, and Tiny Giants.
All Incubator teams fall strongly within at least one of the Springboard committed growth pillars: Natural & Organic, Specialty & Craft, Health & Performance, and Experiential brands. Over the course of the next 16 weeks, the selected startups will participate in a dynamic program composed of learning, funding, infrastructure access, and mentorship in Chicago, IL.
Springboard is also announcing the application period for the third incubator class is open now until June 14th for the fall program which will take place August 5th through November 22nd.
Keep an eye out for:
Growing up with a deathly nut-allergy, Founder, Blake Sorensen, was frustrated with the lack of allergen-free snack options on the market. So, he began to make bars in his kitchen, using seeds instead of nuts. Blake quickly realized people with and without food allergies enjoyed them. Blake’s Seed Based mission is to make seed based, Top 8 Allergen-Free snacks accessible to everyone. Blake’s Seed Based products are not only delicious and safe for most eat, but they also donate a bar to a school in need for every box purchased. All great reasons to try Blake’s today!
https://www.blakesseedbased.com/
In their Brooklyn test-kitchen, BRAMI reimagined lupini beans, a fresh legume snack beloved in the Mediterranean since Ancient Roman times. BRAMI beans are packed with plant protein and fiber with a fraction of the calories, carbs, fat and sugar of other snacks, so you can satisfy your hunger without compromising your diet. Marinated and packaged fresh out of the pickling barrel, BRAMI offers one of the few shelf-stable snacks that isn’t baked, dried or fried, and something totally differentiated to the growing functional snack category.
https://bramisnacks.com/
Ka-Pop! Ancient inGRAINed Snack Co™ has the mission to always be tasty, nutritious, and satisfying. Founder, Dustin, was tired of compromising taste for boring, empty, better for you snacks, so he created his own. Ka-Pop! is delicious and powered by ancient grains to bring fun and nutrition together. Ka-pop! wants you to save your snack time from boring “good for you” snacks that don’t deliver on taste and to replace those empty calories with protein, fiber, omega-3s, potassium, and vitamins. Take that regular snacks, and try Ka-Pop!
https://kapopsnacks.com/
Origin Almond® believes the first step to better health is the reduction of excess sugars, especially the hidden sugars found in perceived healthy foods such as fruit juices. Founder, Jake Deleon, had a unique solution: Juice almonds instead of sugary fruits! Origin Almond® uses cold-press technology to extract the liquid essence of almonds. This Cold-Pressed Almond Juice offers the fresh & lightly sweetened taste of premium fruit juices minus the excess sugar & carbs. Each flavor contains as low as 1g of sugar per bottle and is infused with a rainbow of superfoods and adaptogens to provide added functional benefits. Love juice again with Origin Almond® and see why almonds make for better juice! Origin Almond® is a certified Minority Business Enterprise (MBE).
https://www.originalmond.com/
Danielle Calabrese, mom of two and CPG entrepreneur, enlisted help from friend and Chef, Gregg Drusinsky to create a delicious and sustainable plant based snack brand for future-forward kids and parents. Together, they built a fun and empowering brand to fuel the superheroes of tomorrow. Their first product is a plant based yogurt that is certified organic and non GMO with no added sweeteners. Tiny Giants believes that healthy bellies equals happy kids and they are on a mission to change the way kids snack.
https://tinygiantsfood.com/#shopify-section-1534600654784
“We had an incredibly competitive group of applicants. All five companies in our second Incubator class offer delicious products that cater to the better-for-you offerings consumers are demanding,” said Kelly Reinke, Springboard Incubator Lead. “Springboard exists to help shape the future of food, and we are confident our next class does just that.”
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.
The Kraft Heinz Company completed the sale of Indian brands Complan, Glucon-D, Nycil and Sampriti to Zydus Wellness Limited and its affiliates.
“The sale of this niche business fits into our overall global growth strategy and our focus on investing in and growing brands within our core categories, and where we see a clear path to sustainable competitive advantage,” said Bernardo Hees, Chief Executive Officer of Kraft Heinz.
Under the terms of the agreement, Kraft Heinz sold to Zydus Wellness Limited and an affiliate 100% of its equity shares in Heinz India Private Limited, which is comprised of Complan, Glucon-D, Nycil and Sampriti brands, and two manufacturing facilities, with approximately 760 employees associated with these brands and operations.
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.
Unhappy with its large position in Kraft Heinz, Czech Republic-based hedge fund Krupa Global Investments is threatening to wage a proxy fight over a possible Kraft Heinz bid for Campbell Soup Co.’s international business.
Kraft Heinz and Mondelez, along with private equity firms Bain Capital LP, KKR and FinTrek Capital Hong Kong Co., are reportedly the approved bidders for an auction that will see the winner gain Campbell’s Australian cookie brand Arnott’s and its Danish baked-snacks maker Kelsen Group.
“This auction process may be great for Dan Loeb and Campbell’s Soup but it does nothing for Kraft Heinz and its shareholders,” said KGI Chairman Pavol Krupa in a statement. “Campbell’s Soup is selling its international assets for a reason thus we are concerned that these assets could be a drain on Kraft Heinz’s profitability and add to its debt. We strongly oppose Kraft Heinz’s participation in this auction and will organize a strong campaign against it if necessary.”
KGI has been campaigning for an $80/share buyout of public investors by Warren Buffett and Berkshire Hathaway.
KGI cites a recent piece by Daniel Thurecht in Seeking Alpha backing up KGI’s $80/share valuation published on November 20, 2018 and a piece by Lauren Hirsch in CNBC underscoring the benefits of large legacy consumer companies going private published on October 27, 2018.
“We do not believe Warren Buffett wants his career tarnished by the embarrassment of losing Kraft Heinz investors 40 percent of their investments from 2015 prices. We are liaising with Kraft Heinz management, 3G Capital and Berkshire Hathaway to figure out a constructive solution that will benefit Berkshire Hathaway, 3G, Kraft Heinz shareholders, and the Kraft Heinz brand. We believe such a resolution is possible and will not rest until one is achieved,” added Krupa.
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.
Kraft Heinz has launched Evolv Ventures, a venture fund that will invest in emerging tech companies transforming the food industry.
Kraft Heinz has committed up to $100 million to Evolv Ventures and brought on venture investor Bill Pescatello to lead the fund.
“New technological innovations in the food industry create endless new opportunities to strengthen business models,” said Bernardo Hees, Chief Executive Officer at Kraft Heinz. “Through Evolv Ventures, we will work with tomorrow’s most innovative founders and companies in the space, and use the full resources of Kraft Heinz to help them succeed.”
Pescatello brings more than a decade of successful venture investing experience at two leading venture funds to Kraft Heinz. Most recently, he was a Partner at Lightbank, the Chicago venture capital fund founded by serial entrepreneurs Eric Lefkofsky and Brad Keywell, and was also a founding member of the Peacock Equity Fund, a $250 million global capital fund of GE Capitaland NBCUniversal.
While Kraft Heinz has a long history of developing iconic brands including Philadelphia, Heinz and Oscar Mayer, the new fund will accelerate the company’s exposure to emerging technologies and businesses, and better leverage its position in the industry.
“At Evolv Ventures, we will move beyond brands to have a committed first look at our industry’s most promising and disruptive tech-enabled companies,” said Pescatello. “With the insights, data and access available at Kraft Heinz, we look to take full advantage of our unique position and be the foremost value-added investor in the space.”
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.
Kraft Heinz Canada, a subsidiary of The Kraft Heinz Company, has acquired the assets of Ethical Bean Coffee.
Founded in 2003, Ethical Bean Coffee is a leading roaster of 100% Fairtrade, certified organic coffee. Based in Vancouver, British Columbia, Ethical Bean is committed to social responsibility, global awareness and environmental accountability.
Terms of the deal were not disclosed.
Carlos Piani, President of Kraft Heinz Canada said: “Kraft Heinz Canada is continuously looking for ways to deliver superior quality, extensive variety, and finer products to Canadians. We believe quality coffee starts at the source, which involves responsible sourcing and supporting the hard-working dedicated farmers at origin. The acquisition of Ethical Bean Coffee reinforces our pledge to the sustainable health of our people, our planet and our Company.”
Lloyd Bernhardt, co-founder of Ethical Bean stated: “We are proud of what Ethical Bean has been able to accomplish over the past fifteen years, building a brand with a solid reputation across North America for great tasting coffee, that is sustainably sourced. With Kraft Heinz’s expertise and scale, we’re confident that Ethical Bean Coffee will continue to deliver on that reputation to a much wider audience.”
Ethical Bean Coffee is a leading roaster of 100% Fairtrade Certified Organic coffee. Co-founders Lloyd Bernhardt — recognized by Business in Vancouver’s “Top 40 under 40”, and Kim Schachte — an award-winning graphic designer, are committed to social responsibility, global awareness, and environmental accountability.
Their journey to Guatemala in 1999 to adopt their daughter forever changed their lives, sparking a passion for the culture of the country and inspiring a desire to better the lives of the farmers and families living and working in the coffee industry. The couple returned to Vancouver and in 2003 launched Ethical Bean Coffee. What began as a small operation with one employee has grown into an international success.
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.
Kraft Heinz is putting £20 million into its production facility in Kitts Green near Wigan, UK.
According to Kraft Heinz, the investment expands the production capacity for its canned good products, including soups, baked beans, spaghetti, and its Snap Pots microwavable, quick-serve products.
The upgraded facility adds a high-speed production line capable of filling 1,200 cans with beans or soup a minute, and a new triple-pack can packaging line and a high-speed weigh filling line.
The Kitts Green site is already one of the largest canned food production facilities in Europe, and produces 383,000 tons of products every year even before the expansion.
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.
Kraft Heinz is looking to acquire Campbell according to a report in the New York Post.
According to the Post, Kraft Heinz assumes that the soup company’s strategic review will lead to a sale, especially after its stock has tumbled 21% in the past six months, and it wants to be first in line.
In addition to its familiar soups, Campbell owns a host of top brands, including Pepperidge Farm breads, cookies and Goldfish crackers; Royal Dansk and Kjeldsens cookies; V8 beverages; Bolthouse Farms beverages, carrots and dressings; Plum Organics baby food; Swanson broths; Prego pasta sauces; Garden Fresh Gourmet fresh refrigerated salsas, dips and hummus, and Pace sauces.
Campbell has been seeking to spur its own growth through acquisition. In March, Campbell created a new snack division after its $4.87 billion cash acquisition of snack-maker Snyder-Lance. The deal was financed with $5.3 billion of bonds.
The company is projecting $10 billion in annual revenue from its snack brands, however the acquisition price was considered steep to say the least.
Ask any analyst about potential Berkshire Hathaway acquisitions and Campbell usually finds its way on the list.
Kraft Heinz was rebuffed in its megadeal for Unilever in February 2017, so smaller deals look to be the way forward for now.
With 3G Capital’s Bernardo Hees at the helm, Kraft Heinz has been in relentless cost-cutting mode since 2015, and Campbell has been in the midst of its own $500 million effort, so it’s not clear how much more savings Kraft Heinz can wring out of it.
In any case, Kraft Heinz, which is in third place worldwide among global food conglomerates, is clearly looking to move up the chart. With Berkshire’s money behind it, there’s little doubt they will.
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.
Kraft Heinz’s Springboard, a recently launched platform to nurture, scale, and accelerate growth of disruptive brands, announced its inaugural Incubator Program class.
The program was created to help nurture and develop the next generation of food & beverage brands, nurturing and being close to entrepreneurs, new ideas and consumer trends.
“Hundreds of applications were carefully reviewed to select authentic propositions and inspired founders within one of the four pillars shaping the future of food: Natural & Organic, Specialty & Craft, Health & Performance, and Experiential brands,” said Sergio Eleuterio, General Manager, Springboard Brands. “We are excited to kick off our program with a group of great founders, amazing and purposeful products, that we wholeheartedly believe will succeed in the marketplace.”
Over the course of the next 16 weeks, the selected startups will participate in a dynamic program composed of learning, funding, infrastructure access, and mentorship in Chicago, Illinois.
The inaugural Springboard brands are:
Ayoba-Yo introduces a high quality, nutritious, and delicious alternative to traditional beef jerky and meat sticks, known as Biltong & Droewors. Founders and South-African native brothers, Wian and Emile van Blommestein, introduced their 400-year-old family recipe to the market in 2017. Their 14-day air-drying process, combined with high quality meat cuts and spices deliver incredibly tender, savory, and sugar-free products with no shortage of flavor.
Cleveland Kraut is perfectly positioned to grow within the fermented foods market. A bold brand, grounded in and proud of its Cleveland heritage, dedicated to serving the great tasting healthy fermented foods at a fair price. The team is led by Drew Anderson who, along with his brother Mac and brother-in-law Luke, aim to be the kings of fermented foods by expanding from their kraut roots.
Kumana, best known for its signature Venezuelan-inspired Avocado Sauce, is a Los Angeles-based company creating original sauces representing the diverse and delicious flavors from different regions of the worlds. Venezuelan native, Francisco Pavan, and his partner Todd Vine channeled their passion for pure discovery into the core values of this brand.
Poppilu, a Chicago-based antioxidant lemonade brand, gives consumers permission to love lemonade again. Melanie Kahn, Poppilu’s founder, has developed a truly irresistible, mouth puckering, high-antioxidant citrus refreshment. It features Midwest-grown aronia berries, one of the highest antioxidant fruits in the world, and is one of the many reasons this brand will soar.
Quevos, believes the days of sinful snacking are over– it’s time to munch on snacks made from real food that taste great and are even greater for you. Quevos are salty and crunchy egg-white chips that are low in carbs and fat, and packed with protein. The disruptive brand was founded by young, ambitious University of Chicago students-Nick Hamburger and Zach Schreier.
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.