BOULDER, COLO. — Sunrise Strategic Partners is aiming to speed up the next era of disruptive meals and beverage manufacturers with the addition of a brand new chief and new funding from its companion Trilantic North America.
The Boulder-based accelerator introduced Trilantic invested “hundreds of thousands of dollars” to help the growth of rising manufacturers within the wholesome, energetic and sustainable dwelling area. It additionally added CPG veteran Peter Burns as a managing companion.
Mr. Burns most just lately was chief govt officer of ONE Brands, the place he led the vitamin bar maker’s sale to The Hershey Co. Before that he was CEO of Justin’s, the place he led the nut butter model’s sale to Hormel Foods Corp. He joins Steve Hughes and Vincent Love as managing companions of Sunrise’s new funding automobile funded by Trilantic North America’s Fund VI North America.
Launched in 2016, Sunrise has offered growth experience and capital to rising manufacturers, together with Cali’flour Foods, Coolhaus, Kill Cliff, Little Secrets, Maple Hill Creamery, Pact and Teton Waters Ranch. The partnership between Sunrise and Trilantic already has led to 2 profitable exits. Sunrise invested in Kodiak Cakes in 2016, serving to develop income from $15 million to greater than $200 million and driving the better-for-you meals model’s sale to L Catterton. It additionally was an investor in Vital Farms, an egg and butter model, which accomplished its IPO final 12 months.
Key to Sunrise’s success is its technique of investing in manufacturers that resonate with millennials. The demographic’s buying energy elevated greater than 60%, or $1.5 trillion, between 2016 and 2020.
“With this purchasing power, millennial consumers are driving a massive shift from legacy brands and businesses to emerging companies that better align with their values, including better-for-you food and beverage brands,” Mr. Hughes and Mr. Burns stated.
Eight-in-ten millennials take into account high quality a prime issue for making meals purchases, and 68% are prepared to pay extra for higher-quality meals merchandise, they added.
“With these higher expectations from millennial consumers, mission-driven brands that recognize this shift in consumer preference and use the opportunity to connect with millennials will be influential, growth-driven brands for the next 25 years,” the managing companions stated.
Healthy snacking, low-carb, practical drinks, flexitarian diets and plant-based diets are among the many developments Mr. Burns and Mr. Hughes are watching intently.
“Brands that are finding success with a direct-to-consumer model are very interesting to us,” they stated. “Also, brands that are focused on solving key issues like climate change via product or packaging innovation.”
Consumers are starting to grasp the environmental affect of manufacturing unit farming and are making the change to help manufacturers that implement regenerative agricultural practices, they added. Sunrise’s portfolio features a quantity of manufacturers supporting this shift, together with Vital Farms, which affords solely pasture-raised merchandise. Teton Waters Ranch affords 100% grass-fed, antibiotic- and hormone-free beef, whereas Maple Hill affords 100% grass-fed natural dairy gadgets from greater than 100 farms, representing 1 / 4 of all natural dairy farms working in New York State.
Another millennial-driven pattern Sunrise is maintaining a tally of is the push towards easy, clear elements and low sugar choices.
“Since sugar is known as the new tobacco, we’ve seen that brands who can deliver on great taste without added sugar are finding success with consumers,” Mr. Hughes and Mr. Burns stated. “We’ve already seen our current portfolio brands capitalizing on this trend, with Little Secrets offering chocolate products that are lower sugar than conventional products, and Maple Hill recently launching the industry’s first-ever zero sugar organic milk.”