US cottage cheese producer Good Culture has a new majority owner following L Catterton’s acquisition of a controlling stake from private-equity firm Manna Tree. This strategic move reflects growing interest in the food and beverage industry trends, particularly in the dairy segment.
Manna Tree, which has supported Good Culture since 2022, revealed that the transaction is valued at “more than” $500 million. The firm plans to reinvest in Good Culture alongside L Catterton, signaling confidence in the food and drink business’s future.
Gabrielle Rubenstein, co-founder and managing partner of Manna Tree, remarked: “We’re excited to see what Good Culture and L Catterton will achieve together to unlock further growth and bring Good Culture products to more consumers.” This partnership aims to leverage the food and drink consumer trends, enhancing product accessibility.
Founded in 2015, Good Culture specializes in high-quality cottage cheese, sour cream, and cream cheese, sourcing milk from cows raised on family farms. Recently, the company announced its intention to utilize the new capital to “increase” production capacity and “accelerate growth initiatives.”
Co-founder and CEO Jesse Merrill stated: “Looking ahead, we’re excited to work alongside L Catterton, a proven and well-respected operator in the consumer space, to bring our products to even more consumers nationwide while staying true to our quality, team, and mission.” The firm has experienced a sales growth of “nearly four times” over the past three years, aligning with a 60% expansion in the US cottage-cheese market during the same timeframe.
L Catterton managing director Michael Hutchings noted: “This partnership formalises a relationship we’ve built with Jesse and his investors over the past several years, and is underpinned by our deep conviction in the durability of the tailwinds driving growth in the category.” The transaction awaits customary regulatory approvals and is anticipated to close in the first quarter.
General Mills, which has made previous investments in Good Culture, is no longer involved, according to Manna Tree. Other investors include US private-equity firm SEMCAP and co-founders Merrill and Anders Eisner.
