American plant-based dairy maker Miyoko’s Creamery has announced plans to raise $12 million in funding and potentially sell its business. Bloomberg.
In a letter sent to shareholders on November 10, he quotes BloombergMiyoko CEO Stuart Kronauge said the group was implementing a “financial stabilization plan” to boost profits and “opened the door to a number of strategic alternatives, including the sale of the business”.
Sales of its vegan alt-dairy products doubled to $40 million between 2019 and 2021, but fell 17.5% to $33 million in 2022 and nearly 25% in the third quarter of 2023, the letter said. million dollars.
The California-based group, which offers products including plant-based milk and non-dairy cheeses and butter, has faced challenges in the plant-based market and the broader economy, Kronauge said in the letter. “Many years of big deficits”.
Miyoko announced earlier this year that production had been halted at its Petaluma, California facility due to a recent expansion that necessitated “expanded production capacity and greater efficiency.”
No information has been given on where the production will be moved.
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Speaking in the letter about the Petaluma closings, Kronauge said more cost-cutting measures will be considered in the future.
He added that the company “will continue discussions with potential strategic partners that could result in new partnerships or the sale of the business” and that such a strategy “requires an immediate injection of capital into the business.”
In Miyoko’s pool of shareholders, Cult, GroundForce and Obvious Ventures have already invested $1.5 million in the company and have agreed to invest up to $12 million. Bloomberg.
In the letter, the company urged its other shareholders to invest, adding that those who could not would lose “certain liquidation privileges and voting rights” that their shares have fallen in value.
Miyoko’s Creamery did not respond to a request for comment Just Food.
Kronauge was named the new CEO of Miyoko’s Creamery in August, replacing Jon Blair, who had been in the position since February after founder and former CEO Miyoko Schinner left the company.
Miyoko’s Creamery filed a lawsuit against Schinner as a result of his departure. She counterclaimed that she faced sexual discrimination.
The two sides reached an agreement in May and said the business would begin a “new phase of growth.”
The company closed a $52 million Series C funding round in 2021. In 2022, it also secured nearly $7 million in additional equity financing, according to company filings with the Securities and Exchange Commission.