According to people familiar with the situation, Generous Brands, a subsidiary of Butterfly Equity, will pay $500 million to acquire Health-Ade, a well-known kombucha brand. Confirmed Tuesday, the deal represents yet another significant deal in the rapidly expanding health-conscious food and beverage industry.
First Bev and Manna Tree Partners, Health-Ade’s private equity backers since 2021, will continue to hold minority stakes in the business, Generous Brands announced in conjunction with the acquisition. Wellness-focused products like Bolthouse Farms, Evolution Fresh, and Sambazon açaí juices are already part of Generous Brands’ portfolio.
Kombucha brand sells for $500 million
“We feel like we’re still at the beginning of this consumer revolution of choosing healthier, tastier products out there,” said Steve Cornell, CEO of Generous Brands.
Since its founding in 2012, Health-Ade has expanded to become a nationwide kombucha brand, selling a range of fermented, carbonated teas that promote digestive health. Its products are widely accessible both online and in thousands of retail locations throughout the United States.
The agreement coincides with an increase in demand for fermented drinks and functional beverages that offer potential health advantages. The growing industry interest in gut health products was highlighted in March when PepsiCo agreed to pay nearly $2 billion to acquire Poppi, a manufacturer of prebiotic soda. Probiotic drinks like kombucha bring new healthy microorganisms into the digestive tract, while prebiotic drinks like Poppi provide dietary fiber to existing gut bacteria.
The sale of Health-Ade is Manna Tree’s third exit. Ellie Rubenstein, the daughter of David Rubenstein, a co-founder of the Carlyle Group, founded the company, which specializes in investing in health-conscious companies. In addition to investing in wellness and beverage businesses, First Bev backed Essentia Water, which Nestlé bought in 2021, and Drizly, which Uber Technologies purchased for $1.1 billion that same year.
Major food and beverage companies are vying for market share in the wellness sector as consumers continue to choose natural, less processed options. Political and cultural initiatives like “Make America Healthy Again,” spearheaded by Health and Human Services Secretary Robert F. Kennedy Jr., which seeks to reduce processed food consumption, are also helping to accelerate the movement.
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