GroundForce Capital Completes Beverage Roll-Up Strategy with SYSTM Foods’ Acquisition of Humm Kombucha
January 11, 2024
GroundForce Capital announces its majority-owned portfolio company, SYSTM Foods, has acquired Humm Kombucha. This acquisition marks the completion of the firm’s first roll-up strategy.
“After COVID, we anticipated that strategics would focus on their core businesses and capital for emerging brands would dry up. However, consumers still want better-for-you products and entrepreneurs are still building great brands. We saw an opportunity to create a platform where a few great brands could profitably grow together. This approach is working,” said Co-Founder and Co-Managing Partner of GroundForce Capital, Mark Rampolla.
In 2021, the firm began mapping the industry, identifying potential targets, and interviewing operating groups with the capability to manage multiple brands. GroundForce Capital selected SYSTM Foods, an established team new to the beverage sector but with extensive experience acquiring and managing multiple consumer brands.
Backed by GroundForce Capital, SYSTM Foods first acquired the functional protein brand, REBBL®, and then Chameleon Organic Coffee® from Nestle. The acquisition of Humm Kombucha completes the SYSTM Brands portfolio which is now focused on driving growth, synergies, and profitability across all three brands.
This strategy builds off GroundForce Capital’s recent rebranding to expand its reach and invest more broadly in food-related companies aligning with two impact goals: promoting healthy and sustainable lifestyles and catalyzing the transition to lower carbon and regenerative food production.
Co-Founder and Co-Managing Partner of GroundForce Capital, Dan Gluck, stated, “The roll-up strategy under SYSTM Foods is just part of the evolution of our strategy. We see opportunities to replicate this model in other sectors. This move also highlights our ability to identify opportunities and successfully develop and execute investment strategies.”
Please see our press release here to read more.