Dean Foods, a leading food and beverages company in the U.S. currently made a minority agreement with Good Karma Foods and invested in their plant-based food and beverages project. The agreement is distribution based and is also focused towards achieving a mass growth for the products in this line as well as the two companies in this venture. Good Karma Foods is known for manufacturing flaxseed-based milk alternatives in formats such as beverages and yogurts. The distribution and investment agreement will enable Good Karma to expand its consumer base in the U.S. along with helping the company to build their brand.
Diversification to be Key Focus of Dean Foods
After the announcement of the investment and distribution agreement, the chief executive officer of Dean Foods, Ralph Scozzafava said that their main focus at present is solely on diversification both beyond and within dairy. They are planning to build a platform for plant-based portfolio on large scale. He further added that their management team has high potential in category expertise and the brand is also a disruptor in the non-dairy and plant-based space. Thus, he believes his company can aid its growth and help in its publicity as well.
Good Karma to Expand its Presence over Conventional Channels
Doug Radi, the chief executive officer of Good Karma Foods believes that this partnership will be fruitful for his company as the agreement will allow them to utilize the sales force of Dean Foods efficiently. He further added that Good Karma Foods is slowly gaining prominence in the industry is determined towards achieving a strong foot hold in the market once this partnership is completely brought into task.
In the light of these, Dean Foods discloses the fact that it is a part of their strategic plan to buy and build strong brands and the opportunity with Good Karma embodies the same.