Gourmet News

Butterfly to Acquire Milk Specialties Global

Published December 26, 2022

Credit: Milk Specialties Global

Butterfly, a Los Angeles-based private equity firm specializing in the food sector, has entered into a definitive agreement to acquire Milk Specialties Global, a leader in human and animal nutrition, from affiliates of American Securities LLC.

Founded in 1949 and based in Eden Prairie, Minn., Milk Specialties is an industry-leading, vertically integrated ingredient manufacturer focused on the processing of raw dairy inputs, such as milk and liquid whey, into value-added functional ingredients for a variety of growing nutrition end markets.

The company’s Human Nutrition segment is a leading performance nutrition manufacturer that produces high-quality dairy protein ingredients and products designed to optimize health and nutrition. Today, Milk Specialties’ Human Nutrition segment is the largest producer of whey protein isolate in the world. The company’s Animal Nutrition segment is a leading provider of science-based animal nutrition products for the dairy industry.

Milk Specialties operates 12 state-of-the-art facilities strategically positioned across the United States that allow the company to deliver high-quality, specialized ingredients and exceptional service to customers around the globe. It has been led for over 14 years by CEO and industry veteran David Lenzmeier, who will continue to lead the business going forward.

Milk Specialties is Butterfly’s latest investment within its “seed to fork” strategy spanning agriculture and aquaculture, food and beverage products, food distribution, and foodservice. Butterfly brings specialized expertise in performance nutrition as a result of its 2019 majority investment in Orgain, one of the fastest-growing consumer brands in the nutrition industry. In 2022, Butterfly sold a majority stake in Orgain to Nestlé Health Science and continues to own a minority stake.

“We are beyond excited to roll up our sleeves and get to work with the Butterfly team. Partnering with a food-focused firm like Butterfly, we can drive enhanced value creation for all partners. We are really looking forward to what the future holds because Butterfly will enable Milk Specialties to achieve a new level of growth,” said Lenzmeier.

“We’ve admired Dave and team from afar for many years and are excited to welcome them to the Butterfly family,” said Butterfly founders and CEOs Adam Waglay and Dustin Beck. “We’re confident that Milk Specialties’ industry leadership and best-in-class team, combined with our expertise in the space, will enable us to drive even greater success for the business going forward. We can’t wait to see what we can accomplish together.”

“The Milk Specialties team has continually pushed the envelope of quality, service and innovation in the protein space, and we’re thrilled to join them in making high-quality, affordable nutrition products available to even more consumers,” added Butterfly Managing Director Aaron Kirkbride.

Terms of the transaction were not disclosed. The transaction is expected to close in Q1 2023. Butterfly was advised by Kirkland & Ellis LLP on legal matters in connection with the transaction. Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC, and Rabo Securities USA, Inc. acted as financial advisors to Milk Specialties and Arnold & Porter Kaye Scholer LLP served as legal counsel.

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Faction Food Delivery Uses Driverless Technology

Published December 26, 2022

Faction Technology, Inc., a driverless-technology company offering solutions that solve inefficiencies in micro-logistics and vehicles on demand, announced it is bringing driverless delivery to portions of the San Francisco Bay Area. Faction’s first partner is Cocola Bakery, which is using Faction to reliably deliver to its customers around the metro region.

Deliveries will be made in lightweight, electric vehicles based on three wheel EV platforms from Arcimoto, Inc. and from ElectraMeccanica. Since July, Faction has made regular deliveries to the bakery’s customers and it’s now looking to add additional delivery partners in the coming months.

Equipped with Faction’s DriveLink and TeleAssist technologies, the company’s vehicle fleet combines autonomy with remote human teleoperation to carry out its deliveries. These technologies allow Faction to provide businesses like Cocola Bakery with a delivery service that seamlessly delivers goods via a driverless fleet in an affordable, safe, and predictable way.

“Cocola Bakery and our customers have been ecstatic with the services Faction has provided us so far,” said Amir Aliabadi, CEO of Cocola Bakery. “We are now able to quickly, affordably, and reliably deliver our products to customers around the Bay Area, something we couldn’t easily accomplish before due to inconsistent gig-worker services.”

Through this initial launch, Faction continues to develop the technology powering its remote and driverless delivery solutions. New customer routes are first qualified with vehicles using safety drivers, in addition to being supervised by TeleAssist operators. System performance and road data are collected during every delivery to aid Faction in consistently improving its technology and further expanding its services for Cocola Bakery and future customers.

“Our partnership with Cocola is just the beginning of what we have planned for Faction,” said Faction CEO, Ain McKendrick. “We’re achieving our cost and delivery targets while securing the data necessary to bring Faction and our technology to more partners in the coming year. The next phase is to make our services available to additional commercial customers in the Bay Area – restaurant chains, hardware stores, auto parts stores, and others – to maximize the use of our operating fleet while streamlining delivery in an affordable, reliable, and seamless way.”

Faction is expanding its delivery services within the San Francisco Bay Area, and is currently opening up driverless delivery for other partners starting at under $2 per mile.

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SpartanNash Food Bank Fundraising Raises $400K

Published December 26, 2022

Food solutions company SpartanNash continues to support local food pantries across the country. The company recently raised $313,000 on behalf of the SpartanNash Foundation through in-store fundraising efforts. The SpartanNash Foundation pledged additional funding to make a total donation of $400,000 to help fight food insecurity.

During the fundraisers, store guests and online shoppers were able to make quick, easy donations at checkout or through SpartanNash’s Fast Lane program. Leadership teams at each SpartanNash-owned grocery store were invited to select a recipient community food pantry, so funds raised through this effort stayed local. The SpartanNash Foundation’s $85,000 donation was distributed among food pantries and food banks surrounding the company’s distribution centers around the U.S.

“SpartanNash is committed to providing access to quality nutrition as part of our mission to deliver the ingredients for a better life,” said SpartanNash Senior Vice President of Communications and Executive Director of the SpartanNash Foundation Adrienne Chance. “The holidays can put a strain on household budgets, and with inflation, everyone is feeling their grocery bills get a little tighter. That’s why this year, it was especially important for us to team up with community members to help our neighbors.”

According to the USDA, more than 34 million people, including nine million children, in the U.S. are food insecure. Feeding America estimates that for every dollar donated, the organization secures and distributes 10 meals to people facing hunger.

“The commitment from SpartanNash and their loyal customers in the fight to end hunger gets stronger every year,” Great Plains Food Bank Chief Development Officer Marcia Paulson said. “This gift from SpartanNash comes at a crucial time for us and will go a long way in feeding our neighbors in need this holiday season. We cannot thank SpartanNash and their store guests enough for all they do.”

Additionally, as part of SpartanNash’s recent Investor Day, the company donated $25,000 worth of food to Feeding America from its Our Family^® private label brand. The donation came from Our Family’s community outreach program, Our Family Cares.

Since starting this annual fundraiser in 2016, the SpartanNash Foundation has raised more than $2 million to support food pantries. This effort is part of SpartanNash’s commitment to philanthropy and social responsibility. Funds raised during this campaign supplement SpartanNash’s year-round food donations, which also help reduce food waste and fight food insecurity.

SpartanNash is a food solutions company that delivers the ingredients for a better life. As a distributor, wholesaler and retailer with a global supply chain network, SpartanNash customers span a diverse group of national accounts, independent and chain grocers, e-commerce retailers, U.S. military commissaries and exchanges, and the Company’s own brick-and-mortar grocery stores, pharmacies and fuel centers. SpartanNash distributes grocery and household goods, including fresh produce and its Our Family portfolio of products, to locations in all 50 states, in addition to distributing to the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, Djibouti, Korea and Japan. To support its distribution business, the Company operates a strategically developed network of large-scale distribution facilities and a nationwide transportation fleet.

In addition, the company owns and operates 147 supermarkets – primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market – and shares its operational insights to drive innovative solutions for SpartanNash food retail customers. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,500 strong and growing.

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