Bobbie, a US infant-formula challenger in the food and beverage industry, has acquired peer Nature’s One, positioning itself as the third-largest fully-integrated brand in the country.
This strategic move comes as part of Bobbie’s mission to evolve the infant-formula industry. The San Francisco-based company, led by mom-founders, specializes in European-style formula and has secured $70m in Series C funding. A major investment of $35m by PowerPlant Partners has facilitated the acquisition of Nature’s One, a leading organic baby formula provider headquartered in Ohio.
Nature’s One, known for introducing the first organic baby formula in the US in 1999, offers a range of products under the Baby’s Only brand. With this acquisition, Bobbie plans to leverage Nature’s One’s recently-built facility, gaining end-to-end control of manufacturing from raw material sourcing to production and canning. The company will continue manufacturing Nature’s One products under the Baby’s Only brand for the foreseeable future.
According to Laura Modi, CEO and co-founder of Bobbie, “There is no one better suited to help us pursue our vision than Nature’s One’s founder, Jay Highman, the godfather of organic formula.” Highman, who revolutionized the industry with his dedication to purity, accessibility, and safety, will stay on as executive director of Nature’s One and become a key shareholder in the combined entity.
Despite facing challenges in its early years, including an FDA crackdown and recall, Bobbie has successfully rebounded and attracted significant investments. Overcoming last year’s crisis in the US infant-formula category, which resulted in health scares and empty supermarket shelves, Bobbie has gained popularity among mothers nationwide. The company’s subscription service has seen a surge in demand, highlighting the need for diverse options in an industry dominated by a duopoly.
Looking ahead, Bobbie believes that an expanded market with more new options will lead to a stronger and more secure food and beverage industry. Investigations into the make-up and operations of the US infant-formula industry, including those of Abbott Laboratories, have further underscored the importance of diversification in this sector.
As Laura Modi stated, “I’m confident that the more new options we have, the better. Bobbie’s acquisition of Nature’s One is a significant step towards providing parents with innovative and reliable choices in infant formula.”
