Dean Foods, one of the leading manufacturers of dairy products, announced on 2nd July that it has taken a majority stake in flax-based drink producers Good Karma Foods. Dean Foods had previously acquired a minority share in May last year and had hinted that this announcement could be pending. This diversification into plant-based milk producers by the Dallas firm provides more promising news about the future of vegan milk alternatives in the mainstream market.
Employing almost 16,000 employees, Dean Foods are the largest processors and distributors of dairy milk and other dairy products in the USA, with a total of over 50 national and regional brands and private labels, plus the distribution of ice cream, juices, teas and bottled water. They also partner with Organic Valley as distributors of organic milk to retail outlets as well as Uncle Matt’s Organic Juices. “Diversification to higher-growth, on-trend products is a key focus for Dean Foods,” commented CEO Ralph Scozzafava.
Following the purchase, Good Karma Foods will continue to be based in their current headquarters in Boulder Colorado. Their plant-based milks are free from allergens, full of nutrients and are known for their creamy texture. As such, Dean Foods can expand their consumer-base to both vegans and non-vegans who seek decent alternatives to their cow milk products.
“Good Karma is a fast-growing brand that gets us back into the growing plant-based food and beverage category, making it an excellent addition to our portfolio,” said Scozzafava. “Our investment in Good Karma is just one example of how we are executing against one of the major pillars of our strategic plan, to build and buy strong brands.”
Doug Radi, CEO of Good Karma, stated about the partnership: “We are thrilled about our continued partnership with the Dean Foods team…We believe this relationship validates that Good Karma is one of the leading and fastest-growing brands to watch in the plant-based category, and we are excited about how this partnership will advance our mission of inspiring goodness by making our plant-based, non-dairy beverages and yogurts more accessible across the U.S.”