SAN FRANCISCO--(BUSINESS WIRE)--Jul 12, 2023--
Bobbie, the only mom-founded and led infant formula company in the U.S., announced the acquisition of Nature’s One, the Ohio-based pediatric nutrition company who for decades has worked to set a new bar for formula in quality and organics. The industry-disrupting acquisition allows Bobbie, the fastest-growing American infant formula company in the last five decades, to meet its full growth potential while strengthening domestic manufacturing. The acquisition comes less than three years after Bobbie’s launch and just one year after a nationwide infant formula shortage highlighted the need for industry reinvention. By focusing its new facility on making infant formula here in the U.S, Bobbie makes huge strides on their $100 million White House commitment to strengthen the domestic infant formula supply chain and industry. Bobbie is closing a $70 million Series C to acquire Nature’s One, led by a $35 million investment by PowerPlant Partners – totaling $142 million raised to date.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230712698516/en/
Mom-founded and led Bobbie acquires Nature’s One to fast track the future of formula. (Photo: Business Wire)
Designed and built from the ground up in 2019 with its sole mission to develop safe and nutritious infant formula, this is the first newly built infant formula facility in the U.S. in 40 years. The new facility allows Bobbie end-to-end control of manufacturing from raw material sourcing to production and canning. This infrastructure combined with Bobbie’s first of its kind European Style Recipes and beloved brand will cement the company as a continued disruptor and a next-generation industry leader. Once the facility is fully dedicated to infant formula production, Bobbie is poised to serve 15% of the non-WIC market, tripling the number of babies they can currently feed. Bobbie will continue to manufacture Nature's One products under the Baby’s Only brand for the foreseeable future.
“From inception, Bobbie’s mission has been centered around evolving the infant formula industry and this acquisition is one of the biggest diversification moves in this very concentrated industry. There is no one better suited to help us pursue this vision than Nature’s One's founder, Jay Highman, the godfather of organic formula -- he revolutionized the industry decades ago with his dedication to purity, accessibility, and safety and this best-in-class facility is no exception. Owning end-to-end production while also continuing our valued partnership with Perrigo is critical as we scale and build the resiliency needed for the future,” said Laura Modi, Bobbie CEO and co-founder, and mom of three.
“We believe that American companies can and should be feeding American babies. Let's not forget that just one year ago, during the height of the infant formula shortage, we were celebrating overseas formulas being flown in on pallets to fill U.S. shelves, with little regard for how our industry might prepare longterm to solve the issues that led to the crisis in the first place. I won't claim that Bobbie is the cure-all solution, but this certainly marks a step in the right direction for the industry at-large, and as a mom first and CEO second, I'm immensely proud of that," Modi continued.
“Nature’s One takes great pride in our evidence-based approach from the ingredients, to the state-of-the-art facility, and the team that has spent years to ensure our formula is safe, nutritious, and accessible for families. By handing the keys to Bobbie, it helps grow our reach and carries forward our message of purity,” said Jay Highman, Founder of Nature’s One, and dad of two. Jay will remain a strategic force as Executive Director of Nature’s One and will now be a key shareholder in the combined entity, alongside Juggernaut Capital Partners, a majority investor in Nature’s One.
The company is raising a Series C financing in the midst of a particularly challenging macroeconomic climate, highlighting Bobbie’s resilience and product-market-fit. The recent fundraise includes participation from several of Bobbie’s existing investors and proves Bobbie’s loyal backing and investor belief in their ability to continually disrupt an industry ripe for change like no other.
"As a mother of three, I know firsthand that there is a huge, urgent need for better infant nutrition products in the U.S. With this acquisition, Bobbie is positioning itself to become the market leader in high quality baby formula, and to reach millions more customers who are demanding better options to feed their babies. During the formula crisis, Laura and Sarah proved they can both pivot and sprint when needed, but also grow the overall business at a smart, sustainable clip. That’s why they’ve been able to raise this round in choppy markets and it’s why I’m more excited than ever to be investing again. I’m proud to be supporting the only female founded and mom-led infant formula company in the U.S.,” said Olivia Walton, Founder & CEO, Ingeborg Investments.
“We believe Bobbie is leading a new generation of thinking when it comes to the vitally important areas of infant and child nutrition; in addition to making the highest quality product, Bobbie is unique in its understanding of the challenges and choices faced by modern parents, and as a result is becoming a household name. As investors in consumer brands, we are proud to leverage our category and operating expertise to support the company in the years ahead,” said George Birman, Principal at Powerplant Partners.
This acquisition is testament to Bobbie’s rapid growth:
- Before its second birthday, the company's revenue grew to $100 million despite being closed to new customers during the shortage. Fewer than one percent of companies who have reached this status are led by women and Bobbie managed it in a market that hasn’t seen meaningful disruption in decades.
- Bobbie is the first infant formula company to break into the top five in the last 30 years – a testament to its unique organic recipe and beloved brand that leads with empathy.
- Bobbie serves over 5% of the non-WIC market and, in just two years of business, has fed over 300,000 babies.
- Last year, Bobbie grew 394% YoY (6x faster than the rest of the infant formula market).
- Bobbie is committing to unparalleled supply chain resilience by doubling down on U.S. domestic manufacturing and continuing their strong partnership with Perrigo Company plc, a trusted infant formula co-manufacturer in the U.S.
- Bobbie became the first infant formula to be both Clean Label and Pesticide Free Certified.
- The Bobbie team has grown from a dynamic duo to a robust team of over 100 employees.
- Last year, Bobbie became the first U.S.-manufactured infant formula to hit national retail shelves when it launched at Target. Less than one year later, Bobbie was named Target’s Vendor of the Year for increasing accessibility to families across the country during the height of the shortage.
“For us, success goes beyond creating an undeniably good formula, to forging a better path for the industry. The future of formula means fundamentally changing the conversation on how we feed, it means innovating for the next generation and not the next quarter, it means building domestic supply chain resiliency so we don't experience another shortage, it means being a company that questions the status quo, because our babies deserve it,” addedModi.
About Bobbie:
Bobbie is the mission-driven organic pediatric nutrition company that exists to build a parenting culture of confidence, not comparison. Founded in 2018, Bobbie hit the market with its flagship European-inspired formula in 2021 as the first direct-to-consumer, subscription-based infant formula in the U.S. Today, it’s proud to be the only mom-founded and led infant formula brand in the world, and the fastest-growing in the U.S. since the 1980s. Bobbie is focused on providing purposefully sourced, USDA Organic products made with simple ingredients – crafted right here in America, for American families. For more information, visit www.hibobbie.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20230712698516/en/
press@hibobbie.com
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: FAMILY SPECIALTY CONSUMER FOOD/BEVERAGE OTHER MANUFACTURING FITNESS & NUTRITION ORGANIC FOOD PARENTING RETAIL BABY/MATERNITY WOMEN HEALTH MANUFACTURING
SOURCE: Bobbie
Copyright Business Wire 2023.
PUB: 07/12/2023 11:00 AM/DISC: 07/12/2023 11:01 AM
http://www.businesswire.com/news/home/20230712698516/en
