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Diving overview:
- Private equity fund L Catterton takes over. Majority stake in cottage cheese manufacturer Good Culturethe company said in a statement. Details of the transaction were not disclosed, but Reuters and wall street journal The deal values Good Culture at more than $500 million, it said.
- Good Culture, which also produces sour cream and cream cheese, said the investment would improve the dairy manufacturer’s production capacity and accelerate growth. These initiatives allow brands to respond to growing demand from retailers and expand product accessibility to shoppers.
- Growing consumer interest in protein has created a big tailwind for cottage cheese, once considered a popular staple food for seniors. Cottage cheese sales increased 20% at U.S. retail in the 52 weeks ended June 15. According to Circana data cited by CNN:Following a 17% increase in 2024 and 2023,
Dive Insights:
Good Culture’s decision to sell a majority stake in its operations comes during a period of hot growth for the 11-year-old company.
Over the past three years, Good Culture sales have increased nearly four-fold, with the broader cottage cheese category also growing nearly 60% over the same period, according to the company. With sales not expected to slow down anytime soon, the deal with L Catterton provides Good Culture with capital to grow its business and further increase consumer interest in protein-containing foods.
“Today is a landmark moment for Good Culture as we embark on our next phase of growth with L Catterton,” said Jesse Merrill, Good Culture co-founder and CEO. “Going forward, we are excited to partner with L Catterton, a proven and respected operator in the consumer space, to bring our products to more consumers across the country while staying true to our quality, team and mission.”
Having worked with several consumer brands, L Catterton is a logical partner for Good Culture due to its consumer insights and industry relationships. L Catterton’s portfolio includes Kodiak, a high-protein whole grain foods company. Acquired in 2021.
