By Nancy Dahlberg / firstname.lastname@example.org
Powerful, a Miami-based food and beverage startup offering all-natural, high-protein products for active lifestyles, has been on a growth tear the past year, doubling the number of U.S. stores the product is sold in. Now the company has raised $4 million in funding as it expands into additional product categories.
The Series B funding was led by River Hollow Partners, a lower mid-market private equity firm focused on consumer and retail brands in the natural products space. The company has also secured ABL financing through a partnership with Gerber Finance, a leading asset-based lending financial company with headquarters in New York City.
Carlos Ramirez launched Powerful (then called Powerful Yogurt) in March 2013 after years as a marketing and strategy consultant for global companies. He helped launch or expand other food products around the world, including Greek yogurt, and wondered why no one was branding the product for athletes. Although it has since expanded its focus, Powerful was the first company to market dairy products to the needs of active men, said Ramirez, a Venezuelan native who received his MBA from the University of California Berkeley.
“The idea of a dairy product designed with active men in mind was a very controversial concept to many. It completely disrupted the dairy category and put us in the spotlight, but most importantly, it proved very successful,” said Ramirez.
But women were big buyers too, more than half of sales, and now Powerful is a multi-category active lifestyles brand for both genders. Its products are in 10,000 U.S. stores -- up from 5,000 less than a year ago -- and they include Walmart, Target, Kroger, Stop n’ Shop and Shoprite, as well as Amazon and the company’s website. On its own website, powerful.co, Powerful offers a subscription where customers can create a custom recurring product bundle at a discounted price.
Powerful Yogurt, Powerful Drinks and Powerful Oatmeal are part of the lineup now, all of which are high in protein and made with natural ingredients, and there's more to come, including new product lines and international expansion, Ramirez said. “The capital provided gives us the additional resources we will use to reach our ambitious goals as we continue to expand the product offerings and increase our footprint in the U.S. and beyond.”
In early 2018, Powerful plans to add a smoothie to its lineup, in a convenient on-the-go pouch format. Each all-natural smoothie will serve up 22 grams of protein in flavors like banana, mixed berry and vanilla.
River Hollow is Powerful’s first institutional investment partner. The new funding will further support product development, manufacturing, and sales and marketing.
“We partnered with Powerful because it is uniquely poised for success,” said Charlie Baynes-Reid of River Hollow Partners, noting Powerful's seasoned management team and clear brand vision and mission. “You typically see new companies come in and try to create their own niche specialty, but what Powerful has done really makes a significant impact through disruption in an already successful category, and that is something l saw as very compelling as a private equity partner.”
Last December, Powerful's Ramirez was the fifth Miami food and beverage entrepreneur selected to join the global network of Endeavor, a nonprofit that selects, mentors and accelerates high-impact entrepreneurs. In an Endeavor Miami study in 2015, Endeavor found that food and beverage is one of five areas that could sizzle for entrepreneurial activity in South Florida because the ingredients are already here: a foodie culture, expertise, a talent base and educational opportunities, as well as a strong healthy and green trend to ride upon.
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