Beer Marketer's Insights - FOLO UP: Laird Superfood Will Have 'Wide Aperture' in Seeking Next Acquisition Targets, tho Bagged Powder Brands Are Clear Fit; Adjacencies to Its Liquid Creamer Biz Also Logical

Over the years, the matter of acquisitions has occasionally come up at Laird Superfood, but it seemed like a pipe dream. After all, cash was scarce, the co's own financials were upside down and the one deal the co did, paying $12 mil for Picky nutrition bar brand, was just unwound this fall as a misfire. So announcement yesterday that LSF had found a financial backer in Lexus Capital Management and was embarking on a string of deals, starting with Navitas LLC, came as a surprise to some Laird watchers. Still, there's no question now that once-struggling purveyor mainly of powdered creamers, coffees and hydration entries now should be regarded as a potential strategic partner for early-stage brands, particularly ecomm-friendly bagged items that like Laird and Navitas are clean and nutrient-dense. "We're building a powerhouse in functional foods" and Navitas deal is "just the first step in a journey to put together a portfolio of the best health & wellness brands in the market," CEO Jason Vieth pronounced to investors yesterday afternoon. Merged co will offer a largely shelf-stable portfolio of items, "mostly in bags," so emerging powder brands should be appealing targets. But Vieth noted that Laird musters a liquid creamer too, opening doors to complementary acquisitions in that space too - really, "anything in the functional space."On call yesterday, Vieth wouldn't offer much on Navitas' detailed financials, promising more as deal moves toward conclusion. All he would say is that it generated nearly $36.4 mil in revenues in 2024 fiscal year, is growing at "double-digits" and maintains gross margin of 32.7%. He wouldn't answer question on specific growth rate or say whether co is operating profitably. LSF intends to integrate well-regarded Navitas team led by CEO Ira Haber into merged co, tho Vieth didn't specify what role Faber would play or whether co would continue to operate from its Bay Area base. Under Vieth, LSF effectively has shifted its own base from founding site in rural Ore to former WhiteWave exec's own base in Denver.With Lexus' dry powder in the horn, he emphasized that LSF is serious about attaining scale and breadth thru M&A. "The reality is we do believe this is one of the most opportune moments to be aggressive in this space," he said. He cited "a great number of emerging brands that fit our ethos really well and would fit with our supply chain and commercial teams." So LSF "will be pretty active and look for that third stool of the chair." But likely not immediately. "First we have to put the two businesses together," he was quick to add. As we reported yesterday, Laird has agreed to acquire Navitas for $38.5 mil in cash, backed by private placement of $50 mil of convertible preferred shares to Nexus, with PE shop ready to buy an additional $60 mil worth of shares to fuel further acquisitions (BBI, Dec 22). Asked how soon next deal may emerge, Vieth demurred. "We won't box ourselves into a timeline" because co intends to be discerning in choosing its targets, he explained. No mention of Picky deal, which occurred in 2021 under prior leader, nor why that didn't work out.Tho Vieth didn't state it that way, in essence LSF seems to be staking out terrain as welcome home for brands that offer alternative to ultraprocessed foods, at time issue has been rising in awareness among American shoppers and is a focus of HHS chief RFK Jr. Navitas, Vieth said, is focused on "premium, minimally processed ingredients that mesh perfectly with Laird." At another point he said, "the reality is we're going to have a pretty wide aperture as we take a look at superfood players . . . We're very interested in superfoods in general." In merged co, each component will fill gaps in other with minimal overlap in portfolio, he reported. Navitas is in more grocery doors (he wouldn't say how many) at time LSF has prioritized retail for its future growth. Meanwhile, Laird is a DTC-birthed brand that can offer ecomm expertise on both DTC and Amazon to the less ecomm-developed Navitas.

FOLO UP: Laird Superfood Will Have 'Wide Aperture' in Seeking Next Acquisition Targets, tho Bagged Powder Brands Are Clear Fit; Adjacencies to Its Liquid Creamer Biz Also Logical

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