Dean Foods Picks Up Good Karma

Dean Foods Co. has made a minority investment and a distribution deal with Good Karma Foods, a producer of flaxseed-based milk and yogurt alternatives.

The partnership is expected to help Good Karma more quickly expand distribution across the U.S., as well as to increase investments in brand building and product innovation. Dean joins lead investor 2x Consumer Products Growth Partners.

"We love Good Karma as a fit for Dean Foods as we focus on diversification both within and beyond dairy," said Ralph Scozzafava, Dean's chief executive officer. "This opportunity with Good Karma is a way for us to build a platform for a larger plant-based portfolio. The management team has deep category expertise, the brand is a disruptor in the plant-based, non-dairy space, and we believe we can support its growth."

"One of the pillars of our strategic plan is to build and buy strong brands, and Good Karma embodies the exact type of opportunity we're interested in as we look to add leading and high-potential brands in adjacent growing categories," Scozzafava continued.

Good Karma will continue to operate as a Boulder, CO-based independent company led by its existing leadership team. As part of the agreement, Dean will lend support to Good Karma's growth plans in the conventional retail channel through its experienced sales team. Terms of the deal were not disclosed. 

Dean Foods ranked 63rd on CGT's list of the Top 100 Consumer Goods Companies for 2016.