Pulse News

**Eight Food and Drink Startups Primed for a Takeover**

By Ann Gehan

Mar 10, 2025, 6:00am PDT

Celsius' $1.8 billion purchase of influencer-founded energy drink brand Alani Nu last month sparked fresh hope among investors in startups touting healthier versions of mainstream food and beverage brands. Among the fast-growing brands that could be the next targets for purchase are Good Culture, which sells cottage cheese packaged in single servings, and Chomps, which is targeting $1 billion in retail sales of meat sticks and other snacks this year, according to its co-founder.

The consumer deals market is generally sluggish, but the bright spots are trendy categories like high-protein snacks or low-sugar soda, bankers say. And Celsius' acquisition shows big companies have money to spend for the right brand.

**The Takeaway**

- Sales at brands including Olipop and Good Culture surged in 2024

- Healthy food craze, weight loss drugs fuel demand for protein-filled snacks

- Potential sellers plan to start seeking buyers once impact of tariffs is more clear

"The strategic [acquirers] are starved for growth—they're cash rich, and they need to innovate," said John LeVert, a managing director for consumer retail at investment bank Solomon Partners. Shoppers are still willing to pay up for goods like high-protein snacks—what LeVert called "permissible indulgence" purchases—even as they tighten their belts elsewhere.

Conglomerates like Coca-Cola, PepsiCo, and Mars have long used acquisitions to add trendier brands popular with new sets of shoppers. And over the past few years, new food and drink brands have been able to grow sales quicker than ever, using social media to reach shoppers cheaply and leaning into viral health and wellness trends.

Executives at big companies have been enthusiastic about the potential of "better for you" products, industry lingo for brands that don't have ingredients like sugar or artificial flavors, to boost sales growth. At the same time, the popularity of weight loss drugs like Ozempic has boosted demand for snacks that pack a lot of protein into small serving sizes.

PepsiCo, for example, said recently it is looking to focus more on zero-sugar and sports drinks, as well as functional beverages, which use ingredients that claim benefits like relaxation or energy. The consumer giant made a big recent acquisition in healthy snacks, buying Siete Foods, a brand of grain-free tortillas and chips, in a $1.2 billion deal early this year.

More dealmaking would be a relief for investors, who have poured over $10 billion into food and beverage startups since 2020, according to Fabid, a research and financial services firm focusing on the consumer packaged goods industry. Chances for any of the startups to go public anytime soon look grim, given the icy market for consumer debuts and the poor stock market performance of stand-alone brands such as zero-sugar soda brand Zevia, whose shares are trading more than 80% below their 2021 initial public offering price.

Still, big acquirers will likely be selective, since they are under pressure to increase their margins amid rising materials and production costs. To be a good candidate for an acquisition, brands need to have over $100 million in annual sales and gross margins of between 30% and 50%, LeVert said. They should also be "nicely" profitable on an earnings before interest, tax, depreciation, and amortization basis, he said, but if they're growing quickly, buyers are typically OK with a lower EBITDA, he said.

Some potential sellers are holding off on seeking buyers until later this year, LeVert said, amid uncertainty around the impact of tariffs and supply chain disruptions. Selling or offloading a big stake to private equity firms could be another alternative for brands that aren't able to find a strategic buyer.

Below, we list eight food and beverage startups that could be appealing takeover candidates in the next year or two.

**Banza**

Year founded: 2014

Amount raised: $31 million, according to PitchBook

Last disclosed valuation: N/A

Key investors: Prelude Growth Partners, Enlightened Hospitality Investments

Banza, a line of chickpea pasta founded in 2014, originally focused on offering gluten-free foods, then ultratrendy. More recently, it has added products including high-protein waffles. The company's last announced fundraising was $20 million in 2019 from investors including private equity firm Prelude Growth Partners and Enlightened Hospitality Investments, restaurateur Danny Meyer's investment firm. Banza sells its products in over 23,000 locations, including Whole Foods, Walmart, Target, and Costco.

**Chomps**

Year founded: 2012

2024 sales: over $500 million

Amount raised: $80 million

Last disclosed valuation: $200 million to $300 million (2021)

Key investor: Stride Consumer Partners

Chomps, a line of meat sticks and other snacks, was founded by personal trainer Pete Maldonado and former consultant Rashid Ali, who bootstrapped the brand until late 2021, when private equity firm Stride Consumer Partners invested $80 million for a minority stake. Chomps has proven it can scale up on its own—the brand has already expanded to most major grocery chains, including Whole Foods, Target, Kroger, and Trader Joe's, as well as many convenience stores, and Maldonado said it expects to hit $1 billion in retail sales this year. Maldonado said in a statement that while the company isn't actively pursuing a sale, Chomps has received "significant inbound interest” and is focused on building out supply chain and production capabilities this year. "Chomps is our legacy and the key focus is to continue building a great business so we'll have the optionality to decide what's best for its long-term success," he said. "That could include a strategic exit, an IPO, or we could continue to hold it for cash flow."

**Good Culture**

Year founded: 2014

2024 sales: Over $200 million

Amount raised: $85 million

Last disclosed valuation: N/A

Key investors: Manna Tree Partners, Semcap Food & Nutrition

Good Culture has been at the forefront of a resurgence in the popularity of cottage cheese and other protein-packed products, with sales more than doubling year on year to more than $200 million in 2024. The brand has positioned its products as a healthy snack, with smaller, single-serve packages and blends of cottage cheese and fruit that aim to offer a higher-protein alternative to yogurt. A Good Culture spokesperson didn't have a comment.

**LesserEvil**

Year founded: 2004

2024 sales: More than $165 million

Amount raised: $45.9 million, according to PitchBook

Last disclosed valuation: N/A

Key investors: Aria Growth Partners, Valor Equity Partners, Touch Capital

Former bond trader Charles Coristine bought LesserEvil, then a line of french fries and other snacks, from its original owners in 2011 and refocused on popcorn, cheese puffs, and kids' snacks. The brand, which says it has been profitable since 2021, emphasizes what it describes as higher-quality ingredients like coconut oil and Himalayan salt. It last raised money in mid-2023, with around $19 million from investors including Aria Growth Partners, Valor Equity Partners, and Touch Capital. The company has been exploring a potential sale, Bloomberg reported last month, seeking a valuation of around $1 billion. That would be a relatively rich number compared to recent snack deals: In January, Flowers Foods said it would pay $795 million for Simple Mills, which sells gluten-free versions of snacks like Goldfish and Wheat Thins and had higher net sales of around $240 million in 2024. LesserEvil didn't respond to requests for comment.

**Liquid Death**

Year launched: 2019

2024 sales: $333 million in scanned retail sales

Equity funding raised: over $250 million

Last disclosed valuation: $1.4 billion (2024)

Key investors: Science, Gray's Creek Capital Partners, Live Nation

Liquid Death is best known for its edgy branding, inspired by heavy metal music and other subcultures like skateboarding, and its Red Bull-style marketing strategy with splashy stunts and branded merchandise. The company found early success selling its products in concert venues and bars looking for nonalcoholic alternatives. The company was at one point weighing going public, hiring Goldman Sachs in mid-2023 to lead an IPO as soon as 2024, but it raised private funding early last year. It then plowed fresh cash into developing new products including drink mix powders, teas, and soda-flavored sparkling waters. In December, the company took out a $55 million working capital line of credit from Ares Management. Given the brand's popularity among nightlife and concert fans, an alcohol or energy beverage company could be a natural buyer. A Liquid Death spokesperson didn't have a comment.

**Olipop**

Year founded: 2017

2024 sales: Between $400 million and $450 million

Amount raised: $92.5 million in publicly announced funding

Last disclosed valuation: $1.85 billion (2025)

Key investors: JP Morgan Private Capital's Growth Equity Funds, Monogram Capital Partners, Rocana Ventures

Olipop, which sells low-sugar, low-calorie sodas with added fiber, has long been seen as a candidate for a buyout by a big beverage company. Investors are hopeful that Olipop, which is profitable, can boost growth this year by selling more packs of its sodas, as opposed to individual cans. The company last summer launched a soda version that doesn't require refrigeration, which is key to those plans, investors have said. The brand's 2024 sales were between $400 million and $450 million, representing up to 80% growth from a year earlier. Olipop scored $50 million last month in a funding round led by JP Morgan Asset Management's growth equity fund, boosting its valuation to $1.85 billion from around $200 million in 2021. Christopher Dawe, managing partner at JP Morgan Growth Equity Funds and an Olipop board member, said last month that the company could also eventually pursue an IPO. Olipop didn't respond to requests for comment.

**Once Upon a Farm**

Year founded: 2015

2024 sales: Over $100 million

Amount raised: $107 million

Last disclosed valuation: N/A

Key investors: Cavu Consumer Partners, Beechwood Capital

Kids' snack brand Once Upon a Farm began as a line of baby food pouches featuring organic ingredients and later added snack bars and frozen meals for toddlers. The brand's CEO is John Foraker, former CEO of healthy food brand Annie's, which went public in 2012 and sold to General Mills two years later. Foraker said last year that he was preparing the brand to eventually go public, though it could also sell to a strategic buyer. Once Upon a Farm didn't respond to a request for comment.

**Poppi**

Year launched: 2020

2024 sales: More than $500 million

Amount raised: Poppi has announced $38 million in funding

Last disclosed valuation: N/A

Key investors: Cavu Consumer Partners

Similar to Olipop, Poppi sells low-sugar, low-calorie versions of both classic soda flavors as well as newer twists like raspberry rose and ginger lime. Poppi has more than tripled sales each year since launching in 2020, The Information previously reported. Poppi CEO Chris Hall told The Information late last year that an acquisition would happen "at some point," but that major priorities this year for the brand, which is profitable, include launching in more stores and winning shoppers outside of its core base of Gen Z and millennial women. Poppi has never publicly disclosed its valuation, but it would likely fetch around $2 billion or more today, judging by Olipop's recent funding. A Poppi spokesperson didn't have a comment.

Ann Gehan is a reporter covering e-commerce and retail for The Information. Contact her via email at ann.gehan@theinformation.com, on Twitter @anngehan, or on Signal at (646) 374-8461.