Issue #15 | February 9, 2026
🥄 FIRST BITE
The appetizer before we dive in
Welcome back to The Deeter Digest. This week, Once Upon a Farm began trading on the NYSE after raising $198M in their IPO, Marzetti dropped $400M on Japanese barbecue sauce brand Bachan’s, and Willie Nelson’s THC beverage company hit an $80M run rate in less than a year because apparently country music and cannabis make perfect business sense.
Meanwhile, SEMCAP doubled down on Good Culture with another $55M investment, CAVU Consumer Partners raised $325M for their fifth fund, and Vacation teamed up with Pepsi to make Wild Cherry lip balm because 2026 continues to be the year every collaboration sounds completely reasonable.
The message is clear: when baby food IPOs trade on major exchanges and barbecue sauce commands $400M valuations, there’s officially no such thing as a “niche” food category anymore. Let’s feast on the public market feeding frenzy.
🍊 THE MAIN COURSE
This week’s biggest CPG moves
Once Upon a Farm’s Public Market Debut
Once Upon a Farm began trading on the NYSE today under ticker OFRM after raising $198M in their IPO. The organic baby food maker reported $177M in revenue and a $38M net loss for the first nine months of 2025, with backing from CAVU Consumer Partners, Cambridge SPG, Access Capital, and Beechwood Capital.
This isn’t just another food brand going public - it’s validation that premium children’s nutrition has evolved into a legitimate institutional investment category. When baby food companies command $200M+ public market valuations, conscious parenting has officially become a scalable business model rather than a niche health trend.
The timing couldn’t be better. With Little Spoon now feeding approximately 3% of U.S. babies according to co-founder Angela Vranich, premium baby nutrition has proven both market demand and operational scalability at institutional levels.
Marzetti’s $400M Bachan’s Bet
The Marzetti Company acquired Japanese barbecue sauce brand Bachan’s for $400M, valuing the 2019-launched brand at roughly 4.6x its $87M in 2025 net sales. Bachan’s achieved 50% annual growth over three years with backing from Prelude Growth Partners, Sonoma Brands Capital, Simple Food Ventures, and New Fare Partners.
This acquisition signals that authentic ethnic condiment brands with premium positioning can command massive multiples when they achieve meaningful scale. When traditional sauce manufacturers pay $400M for Japanese barbecue sauce, it proves that cultural authenticity plus superior execution creates defensible value propositions in crowded categories.
The strategic insight: heritage flavors with modern branding and distribution excellence justify premium valuations when they solve real consumer problems better than commodity alternatives.
Willie’s Remedy+ Cannabis Success
Willie Nelson’s THC beverage brand Willie’s Remedy+ closed a $15M Series A led by Left Lane Capital after hitting an $80M run rate in less than a year. The JuneShine Brands partnership has sold over 400,000 bottles and recently debuted at Total Wine & More.
This proves that celebrity cannabis brands work when they combine authentic personal connection with operational excellence. Willie Nelson’s decades-long association with cannabis creates genuine brand credibility that most celebrity endorsements can’t replicate. When country music legends build THC beverage empires, cultural authenticity drives business success.
💰 THE FUNDING FRENZY
Big checks being written
CAVU’s $325M Consumer Appetite
CAVU Consumer Partners exceeded their $275M target by raising $325M for Fund V, bringing total assets under management to nearly $1.4 billion. Recent investments include $30M in Recess and $12M in Sauz, with a portfolio including Poppi, Bai, ONE Brands, Vital Proteins, and Once Upon a Farm.
When consumer-focused funds consistently exceed targets and scale to $1.4B AUM, institutional appetite for premium lifestyle brands remains robust despite macro headwinds. CAVU’s track record validates that authentic consumer brands with strong unit economics attract serious institutional capital.
SEMCAP’s Good Culture Double-Down
SEMCAP Food & Nutrition invested an additional $55M into Good Culture, doubling down on their 2021 investment alongside majority investor L Catterton. This signals continued confidence in cottage cheese category expansion and Good Culture’s market leadership position.
When successful investors make follow-on investments at higher valuations, they’re betting on accelerated growth rather than just maintaining market position. SEMCAP’s additional commitment suggests Good Culture has exceeded growth expectations since the L Catterton majority investment.
Proper Wild’s $10M Energy Expansion
New York-based clean energy shot and gummy brand Proper Wild raised $10M after growing their energy shot sales 550% year-over-year and expanding to 65,000+ retail doors in 2025.
This demonstrates how clean energy brands can scale rapidly when they solve real consumer problems through superior formulation and distribution execution. 550% growth in energy shots signals that functional convenience continues driving massive category expansion.
🤝 MERGER MANIA
Everyone’s buying everyone
AG Barr’s UK Beverage Consolidation
Scottish beverage firm AG Barr (owner of Irn-Bru) acquired premium mixers brand Fentimans for £38M and UK fruit beverage brand Frobishers for £13M, building a portfolio of differentiated beverage brands with established distribution networks.
Hain Celestial’s Strategic Divestment
Hain Celestial sold its North American snack division to Canadian manufacturer Snackruptors for $115M cash, divesting brands like Garden Veggie Snacks, Terra, and Garden of Eatin’. The division represented 22% of net sales but contributed negligible EBITDA over the past 12 months.
When CPG giants divest low-margin businesses to focus on higher-margin categories, they’re prioritizing profitability over revenue growth. Hain’s strategic shift toward tea, yogurt, children’s nutrition, and meal prep targets categories with 30%+ gross margins.
ETi Gıda’s TRUBAR Acquisition
Turkish food manufacturer ETi Gıda completed its $173M acquisition of protein bar brand TRUBAR, taking the company private after years of public market challenges.
Other Notable Deals
RoundTable Healthcare Partners acquired mineral sunscreen brand Colorescience, which generated approximately $100M in sales and $15M EBITDA in 2025. Edgewell Personal Care divested its feminine care division to Essity for $340M to focus on suncare, skincare, and grooming.
📊 THE DATA DIGEST
Numbers that matter
Tony’s Chocolonely Defies Industry Trends
Tony’s Chocolonely achieved 20% revenue growth to €240M in 2025, driven by both volume increases and pricing power. While the broader chocolate industry experienced volume declines for the second straight year, Tony’s achieved 4% volume growth. The U.S. officially overtook the Netherlands as Tony’s largest market by net sales.
When premium chocolate brands achieve volume growth during industry contraction, mission-driven positioning and superior execution create competitive advantages that transcend commodity market challenges.
Cannabis Beverage Acceleration
Uncle Arnie’s THC beverage brand scaled from $400K in year one (2020) to over $25M annually, demonstrating the massive growth potential in cannabis beverages as normalization accelerates.
RTD Spirits Market Expansion
RTD wine and spirits sales grew nearly $1 billion in 2025 according to NielsenIQ, with BuzzBallz and Cutwater delivering solid growth while High Noon pulled back from aggressive expansion.
Gut Health Claims Surge
According to Mintel, 5% of new beverages in 2025 featured gut health claims, up from just 1% in 2020, indicating massive category expansion in functional digestive health positioning.
🆕 PRODUCT LAUNCHES & COLLABORATIONS
This week’s innovation circus
Celebrity Brand Partnerships
Vacation and Pepsi collaborated on a Wild Cherry SPF 30 lip balm exclusively at Target, proving that sun care and beverage brands can create meaningful crossover products. Lemme and Kylie Cosmetics launched Skin Glaze Gummies exclusively at Ulta Beauty, bringing Kourtney Kardashian’s supplements together with her half-sister’s beauty empire.
Creatine Category Expansion
Koia launched Strawberry Elite +Creatine exclusively at Publix, combining 32g protein with 1g creatine. Momentous expanded their creatine chews with Mango and Strawberry flavors. UK brand Hustle launched creatine nutrition bars with 18g protein and 5g creatine per bar.
The creatine explosion continues as brands recognize that strength training and muscle building have moved mainstream beyond just bodybuilding demographics.
GLP-1 Targeted Products
California juice maker Langers released “No Worries,” a GLP-1 support beverage with 12g dietary fiber, inulin, magnesium, calcium, and functional fruit juices, targeting the 30+ million Americans taking appetite suppression medications.
RTD Innovation Continues
Venturi Bold Brew launched with six unique nitro cold brew flavors including Strawberry Hibiscus, Blueberry Basil, and Sweet Tea Lemonade. Owl’s Brew announced “Spiked Pop” hard soda launching in March with classic flavors like Cream Soda and Pineapple Dew.
🏪 DISTRIBUTION DOMINATION
Everyone’s everywhere
Warehouse Club Expansion
Bloom launched their BFY soda line at Sam’s Club. Mid-Day Squares launched No Bread PB&J at Walmart Canada. When premium brands secure warehouse club distribution, they’re proving velocity at mass market price points.
Fitness Channel Growth
Ketone-IQ launched nationwide at Life Time Fitness centers, bringing advanced ketone supplementation directly to serious fitness consumers. SEEQ launched nationwide at The Vitamin Shoppe, expanding functional beverage access through specialty wellness retail.
Specialty to Mass Pipeline
WAAY and Roxii Supercube both launched nationwide at Sprouts Farmers Market. New Primal officially launched at Kroger. The premium-to-mass distribution pipeline continues accelerating as specialty success validates broader market expansion.
🔥 THE HOT TAKE
My unfiltered opinion on this week’s madness
This week crystallized something profound about the current CPG landscape: authenticity and execution beat innovation and trends every single time.
Once Upon a Farm’s NYSE debut proves that solving real parenting problems through premium positioning creates legitimate institutional investment opportunities. Willie Nelson’s $80M THC beverage run rate demonstrates that authentic personal connection trumps manufactured celebrity endorsements.
Marzetti paying $400M for Bachan’s Japanese barbecue sauce validates that cultural heritage plus superior execution commands massive premiums in commodity categories. Meanwhile, Hain Celestial divesting low-margin snack brands shows how legacy CPG companies are finally prioritizing profitability over revenue growth.
The most telling signal? SEMCAP’s additional $55M investment in Good Culture after their successful exit strategy. When successful investors double down at higher valuations, they’re betting on accelerated growth, not just market maintenance. Good Culture didn’t just disrupt cottage cheese - they created a scalable platform that justifies continued institutional investment.
Tony’s Chocolonely achieving 4% volume growth while the broader chocolate industry contracted proves that mission-driven brands with superior execution transcend commodity market challenges. When premium positioning creates volume growth during industry downturns, you’ve built something truly defensible.
The creatine explosion across multiple brands signals that strength training has moved definitively mainstream. When protein brands, supplement companies, and nutrition bar manufacturers all chase creatine positioning simultaneously, the fitness optimization economy has reached critical mass.
But here’s what excites me most: the GLP-1 opportunity is still in its infancy. Langers launching fiber-rich “No Worries” for GLP-1 users represents early category creation for 30+ million Americans who need specialized nutritional support. This isn’t trend-chasing - it’s problem-solving at massive scale.
The lesson for every founder: don’t chase white space. Find massive existing problems that underserved populations will pay premium prices to solve. Whether that’s premium baby nutrition, authentic ethnic condiments, or GLP-1 nutritional support, money follows authentic value creation.
🎙️ COMING TUESDAY
Unpackaged Goods Episode 16
Breaking down Once Upon a Farm’s IPO strategy and public market implications for premium food brands, Marzetti’s $400M Bachan’s acquisition strategy, and why Willie Nelson’s cannabis beverage success validates celebrity brand authenticity. Plus: The CAVU Consumer playbook for building $1.4B AUM through authentic brand investing.
🥫 ONE MORE THING...
Before you close this tab
Spotted Vacation’s Wild Cherry lip balm at Target yesterday. When sun care brands collaborate with beverage giants on seasonal lip products, every possible brand combination feels inevitable. Sometimes the most unexpected partnerships create the most memorable products.
The IPO revolution is officially public.
Until next Sunday, Jonathan Deeter Your CPG-Obsessed Friend
P.S. - Willie Nelson building an $80M cannabis beverage empire in less than a year proves that authentic personal connection beats manufactured celebrity endorsements every single time. When your brand story is literally decades in the making, investors notice.
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