Spilling The Tea On Ryl's Latest Raise

0:04Monica Watrous:Welcome to the CPG Week podcast by BevNet and Nosh. I'm Monica Watrous here with my co-host, Lukas Southard. If you're enjoying the show, please subscribe on your listening platform of choice. Now here is the latest in food and beverage industry news. Trek One Capital has acquired Good Karma Foods and No Cow. Financial terms were not disclosed. The transaction brings both brands under the Houston-based investment firm's growing umbrella, which also includes premium chocolate brand Alter Eco Foods. Good Karma is best known for its non-dairy flax-based milk products. The brand has endured a winding road in the years since it was acquired by Dean Foods in 2018.

0:48Monica Watrous:After the dairy producer went bankrupt in 2019, Good Karma acquired majority to control the following year while raising capital from firms including Valor Siren Ventures and 2X Consumer Products Growth Ventures. No Cow, founded in 2015, offers plant-based low-sugar nutrition bars with 20 grams of protein. No Cow and Good Karma products are sold at leading natural and conventional retailers throughout the U.S. and online. Brian Fontana, operating partner at Trek One Capital, said that No Cow and Good Karma represent, quote, terrific strategic additions to the portfolio of better-for-you differentiated food and beverage brands.

1:30Monica Watrous:Founded in 2023, Trek One Capital seeks to partner with owner-operators, founders, and management teams with majority control investments where it can leverage its financial and operational experience to drive growth. Ice-T brand, Real Tea, secured a$20 million Series C round this week, bringing its total investment to over$42 million since launching in 2022. The brand has been rapidly expanding its footprint in the last year and a half after spending its first two years taking a quote disciplined approach to growth. Founder and CEO Blodin Ukela told me, the brand is part of a growing subcategory of iced tea brands, taking a similar approach to what we've seen in the next-gen or better-for-you soda set.

2:17Modern iced tea brands like Real, Half Day, and Swoon are using functionality paired with little to no sugar sweeteners to bring Gen Z and millennials back to what was formerly a fairly stagnant set. Last month, Walmart announced it had added a dedicated modern iced tea section to its stores that includes many of these brands. While recognizable iced tea names like Arizona and Pepsi's Pure Leaf still dominate the category with over 20 % of dollar sales each, brands like Real and St. James have each grown their dollar sales 171 % and 121 % respectively in the last year. For real, the opportunity now lies in expanding its footprint in drug stores, convenience stores, and the club channel, as it also adds more varieties and pack sizes to its grocery and mass channel retail partners.

3:17Monica Watrous:In other funding news, Smash Foods has raised$5 million in equity investment, according to a Form D filed with the U.S. Securities Exchange and Commission. The six-year-old brand markets an assortment of superfood spreads and snacks formulated with chia seeds and dates. Its products are available nationwide at Whole Foods Market, Sprouts Farmers Market, Target, Walmart, Costco, and more. The new funding follows a seven-figure round announced this past November that was led by Eclair Partners with participation from Label Capital and The Family Fund, alongside a strategic supply chain partner. The company planned to use the proceeds of that round to build out its team, add distribution, and develop additional products.

4:02Monica Watrous:Formerly known as Chia Smash, the brand launched with a line of no-sugar-added jams, then refreshed its identity two years later as it set its sights beyond the spread's aisle. The rebrand coincided with the debut of poppable peanut butter and jelly-inspired snack bites, marking the company's first step into new categories. And last year, Smash Foods introduced a wholesome twist on toaster pastries, made with whole wheat flour, dates, coconut oil, coconut sugar, egg whites, chia seeds, and fruit juice. Yeah, I mean, we've talked about it in the past, but nostalgia is definitely playing a big role in bringing Gen Z and millennial consumers back to some of these categories.

4:41And it was something, again, that Bloden was talking about with me when it came to Real Tea and what he's been doing in the iced tea category, they just launched a Rocket Pop and also have a licensing deal with Jolly Ranchers.

4:57Monica Watrous:Everybody's doing some version of the Rocket Pop. I feel like that's the flavor of 2026. Mark my words. It is definitely everywhere. We'll be seeing a lot more of it too in the lead up to the America's 250th birthday celebrations. There's a lot of people who identify that flavor profile as patriotic. Yeah. Well, you know, the red, white, and blue goes a long way i suppose even when it's not really sure what all three of those is like a cherry blue raspberry and white and white i think it's lime some kind of nondescript citrus flavor citrusy okay got it all right yeah it's a melting pot just like america exactly you might not have known this monica but actor and comedian kevin heart has a supplement brand.

5:46The celebrity launched his plant protein powdered shake brand Vita Hustle in 2022. And last week it announced it received an undisclosed equity investment from private equity firm Axum Capital Partners. The Charlotte based Axum was co-founded by former NFL player Moussin Muhammad II and has primarily invested in food service businesses, mostly in the Southeast. But last year, the PE firm announced it launched a$300 million fund targeting health and wellness brands. VitaHustle is one of its new investments and the heart-backed brand will be using its funding to support its expansion into retail.

6:35Vita Hustle has primarily built itself through e-commerce channels and QVC, but last year it also added distribution into brick and mortar retail with the Vitamin Shop and Sprouts Farmer's Market. You're right.

6:51Monica Watrous:I did not know that Kevin Hart had a supplement brand. He is one of many. I know Mark Wahlberg has done supplements. We've got Kate Hudson had In Bloom, I believe it was named. It's kind of a thing. It's alcohol brands and protein supplements, I guess, is what celebrities like to invest in. Well, I wonder if this means we might see Kevin Hart at BevNet Live New York. I haven't heard anything, but that's not to say that he might not just drop in. But there will be a packed schedule. very interesting speakers and panelists and just generally the beverage industry coming together in New York City.

7:30Monica Watrous:Well, last I heard, we had more than 625 people registered, but it's not too late to grab a seat. People can register for BevNet Live Summer at bevnetlive.com. And that's taking place June 10th and 11th in New York City. Be there or be square. I'm not going to be there. Square, I guess. I guess I'm a square. somebody's got to hold down the nosh for it while the rest of us are you know sweating in New York City you and Brad are going to be at BevNet live and I'm going to be recording CPG week all by my lonesome well at least you won't have to like wade through the mass of New York Knicks fans that are going to be mobbing the streets next week which is going to be interesting to see but I'm a little scared of what New York City is going to look like amidst NBA finals fever yeah well guess what I'm in Kansas City and we have the World Cup.

8:22Ooh, yeah. And that does start next week as well.

8:25Monica Watrous:Yeah, the Argentinians just got here. Messi is in my town. That's even more exciting, in my opinion, than the Knicks. Here are some other notable bits of news from the week. Protein pretzel purveyor Crisp Power is planting deeper roots in the U.S. with a new$15 million production facility in Stafford, Texas that will serve as a stateside hub after roughly two years of importing product from Israel. David Protein is entering the high-protein ice cream category with the launch of Indulgent Frozen Dessert Pints, which sold out in less than a half hour on the brand's website. And finally, Uncle Nearest Premium Whiskey is possibly closer to new ownership after its court-appointed receiver announced he has signed a non-binding letter of intent to sell nearly all of the brand's assets to a Black-owned investment firm.

9:18Monica Watrous:For these stories and more, become an insider at BevNet and Nosh. 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 Erin Willett. If you enjoyed the podcast, please subscribe on your listening platform of choice, and we will see you next time.

9:46Thank you.