Alter Eco Foods sold to new investors Trek One Capital

Alter Eco Foods, the US-based organic chocolate company, has been sold to Trek One Capital, a private-equity firm that focuses on the food and beverage sector. The deal, which was announced on February 1, 2024, involves the transfer of 100% of the shares of Alter Eco Foods, as well as its plant in California. The financial details of the transaction were not disclosed.

Alter Eco Foods
Alter Eco Foods

Alter Eco Foods: a pioneer in organic and fair-trade chocolate

Alter Eco Foods was founded in 2004 by a group of entrepreneurs who wanted to create a premium organic chocolate brand that supports cacao farmers in South America. The company produces a range of organic chocolate products, such as bars, truffles, truffle thins, and chocolate-covered nut butter balls. It also has a granola and quinoa line.

The company is known for its high standards of quality, sustainability, and social responsibility. The company’s products are certified organic, fair-trade, non-GMO, gluten-free, and carbon-neutral. The company sources its ingredients from eco-friendly farms that practice regenerative agriculture, agroforestry, and fair-trade. The company also uses recyclable and compostable packaging for its products.

The company sells its products in the US, Canada, Australia, and New Zealand, mainly through the organic and natural retail channel. The company’s products are popular among consumers who seek natural and healthy products, especially amid the COVID-19 pandemic. The company’s revenue exceeded $20m in 2023, and it has a loyal and satisfied customer base.

Trek One Capital: a private-equity firm with a focus on food and beverage

Trek One Capital is a private-equity firm that specializes in investing in and growing food and beverage companies. The firm was founded in 2020 by a team of experienced investors and operators, who have a track record of creating value in the food and beverage sector. The firm has offices in Houston, Texas, and Los Angeles, California.

The firm’s strategy is to partner with entrepreneurs and management teams who have built differentiated and innovative food and beverage brands, and to provide them with capital, expertise, and resources to accelerate their growth and profitability. The firm targets companies that have revenues between $10m and $100m, and that operate in attractive and growing categories.

The firm’s portfolio includes brands such as Pop Up, a popcorn brand that was acquired from Grupo Bimbo in November 2023, and Viube Foods, a vegetable crisps business that was acquired from local entrepreneurs in August 2023. The firm said that it is actively looking for new investment opportunities in the food and beverage sector, and that it has a strong pipeline of potential deals.

The rationale and the impact of the deal

The deal between Alter Eco Foods and Trek One Capital is expected to benefit both parties, as well as the customers and the suppliers of Alter Eco Foods. The deal will enable Alter Eco Foods to leverage the capital, expertise, and resources of Trek One Capital, and to pursue its growth and innovation plans. The deal will also allow Trek One Capital to add a leading organic chocolate brand to its portfolio, and to tap into the growing demand for natural and healthy products.

The deal will have no impact on the employees, the products, or the values of Alter Eco Foods, according to the company. The company said that it will retain its identity and culture, and that it will continue to operate independently under the leadership of its CEO, Keith Bearden, who joined the company in 2023. The company also said that it will maintain its relationships with its suppliers and its customers, and that it will uphold its commitments to quality, sustainability, and social responsibility.

The deal is subject to customary closing conditions, and is expected to be completed by the end of the first quarter of 2024. The deal was advised by Cascadia Capital, a boutique investment bank that specializes in the food and beverage sector.

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