Miyoko's Deal Meltdown And A Tale of Two IPOs

0:05Welcome to the CPG Week podcast by BevNet and Nosh. I'm Monica Watris, here with my co-host, Brad Avery. Now here is the latest in food and beverage industry news. Miyoko's Creamery has a new owner, and it's not Miyoko Shinner. Prosperity Organic Foods, the parent company of plant-based butter brand Melt Organic, has been revealed as the winning bidder of the vegan cheese business, which was liquidated two weeks ago. The dissolution of California-based Miyoko's comes after Shinner mounted an unsuccessful campaign to regain control of the company she founded and led until she was removed by her board three years ago.

0:42Prosperity said it will continue to honor the, quote, roots and community of its new acquisition, highlighting it will maintain its commitment to the highest standards of quality, taste, and sustainability. Melt, which debuted in Boise, Idaho in 2010, was created as an allergen-free butter product made with organic, non-GMO ingredients and cold-pressed oils. The products are available at retailers including Sprouts, Stop & Shop, Big Y, and Natural Grocer, among a wide range of independent regional and specialty stores. The acquisition in combination with Miyoko's could give Melt a foothold in the natural channel, including Whole Foods Market.

1:19But the deal comes with a side of drama. Shinner had aimed to raise half a million dollars via a crowdfunding campaign to buy back the business. And in the span of six days, she had received over$100 ,000 in commitments. After Melt Organic emerged as the winning bidder, Shinner took to LinkedIn to call out its chief executive, Scott Fisher, for slinging insults at her in a personal text message, specifically calling her, quote, a cagey one and, quote, a failed business person. upon learning she was also bidding for Miyoko's. The following day, Fisher posted a public apology and admitted to sending a, quote, unprofessional text that failed to reflect the respect she deserves as the founder of this incredible brand, end quote.

2:05Fisher's post was met with criticism, with many questioning the sincerity of the apology and several suggesting he sell or give the business back to Schinner. Well, it's a new chapter in a pretty long saga that we've been following this entire time. You know, I do think it is distracted from the quality of the brand and the potential of the brand that so much of the story has been this almost tabloidesque element of personalities feuding with one another. And I do think it's interesting to see Fisher admit to speaking out of turn here. And I would hope that that's the opportunity for everyone to turn the page in this saga.

2:47Absolutely. And we have been talking to Miyoko. Our colleague, Adrienne DeLuca, had an interview with her before Melt Organic was announced the winning bidder of the business. And we'll continue to talk to her and all parties involved and follow this developing story on NOSH. Speaking of new chapters, Suja Life is going public. The cold-pressed juice business has filed with the U.S. Security and Exchange Commission for an IPO. Well, subject to the SEC's review process, it's the first step towards an exit for Suja owners Payne Schwartz. Suja is a leader in the cold-pressed juice and shots categories, with Vive Organic and, more recently, Better For You Soda brand Slice added to its portfolio.

3:29If successful, the IPO would mark the end of a long journey for Suja's investors. The brand launched in 2012 as one of several pioneering brands in the HPP juice category, and in 2015, it took on a$90 million investment from Coca-Cola. But Coke ultimately passed on acquisition, and it was PE firm Payne Schwartz who ultimately bought the business in 2021. The IPO filing seems to come at a time of confidence for Suja, as the brand has reported double-digit growth for its leading beverage offerings over the past year. And speaking of IPOs, Once Upon a Farm is pushing its debut on the New York Stock Exchange to next year after the retracted government shutdown thwarted the company's plans to go public back in October.

4:12John Foraker, the chief executive officer and co-founder of Once Upon a Farm, posted on LinkedIn this past weekend that the celebrity-backed baby and kids nutrition brand would remain private for a bit longer than anticipated. The company had announced in September that it had filed plans to go public in a stock sale that some speculated could value the company at$1 billion. Forker noted in the recent post that the team will use the found time to continue to innovate and build the brand in support of its mission. If successful, the deal could spark a shift back towards IPOs in the packaged food and beverage space, according to some industry watchers.

4:49Well, you've already got Suja right on their heels. That's right. Maybe it will work out. Yeah, it's 2026. It's the year of the IPO. Exactly. It's all a circle. It always comes back around. Mm-hmm. And in smaller acquisition news, non-alcoholic beverage brand Proxies has acquired the assets of defunct mocktail maker Avec. They plan to use the recipes from Avec for a new line of canned drinks under the Proxies brand name, which is scheduled to launch early next year in time for dry January. I spoke last week with Proxies co-founder and president, Charlie Friedman, and he told me that despite Avec needing to shut down, which he thought was more a matter of timing and financial markets, he believes that the brand had an excellent product that Proxies can build off of as it seeks to get into this canned cocktail occasion and expand its presence in retail.

5:44Proxies is primarily a maker of zero-proof wines and more recently added a non-alcoholic dry cider to its lineup. So Mocktails is just the next step for this brand's platform growth. Avec was founded in 2021 but had to begin dissolving last year due to the said market difficulties. One thing that Friedman believed as he brings the brand into the fold is that the brand was splitting itself thin in its positioning. It was sold as both a mocktail on its own and as a cocktail mixer for alcoholic drinks. The plan with the proxy's relaunch is to lean entirely into this canned mocktail occasion, and they're going to be modifying the formulations a bit in order to elevate the taste profiles to that more standalone drinking occasion.

6:34Interesting. Well, insiders can read more in your story on BevNet. On a lighter note, this episode drops on Thanksgiving, and we hope our listeners have a very safe, healthy, and happy one. And maybe we'll see you in Marina Del Rey next week for Nosh Live and BevNet Live. Here are some other notable bits of news from the week. Altmeat food tech startup Tindal announced plans to pivot its business model to focus exclusively on private label operations in the European market. As part of the shift, the company will divest its U.S. operations. Liquid Death has named four fresh distributor partners to its national DSD network as it aims to shore up its presence in the West Coast.

7:17And finally, online retailer Quince is now selling food and wine as it begins building a curated set of premium giftable products from specialty producers, global brands, and more. For these stories and more, become an insider at BevNet and Nosh. And if you're enjoying the show, please subscribe on your listening platform of choice. That wraps up this edition of CPG Week by BevNet and Nosh. Thank you to our audio engineer, Joshua Pratt. Our director is Mike Schneider, and our designer is Aaron Willett. If you enjoyed the podcast, please subscribe on your listening platform of choice and we will see you next time.