- Herbivore Earthfoods is the first investment by Tiger Brands’ Venture Capital Fund.
- The fund was set up by food and beverage company Tiger Brands in mid-2021.
- It is meant to support up and coming consumer brands in the food and beverage sector.
- The fund says it plans to invest between R2 million and R20 million per investment.
Plant-based and vegan products maker Herbivore Earthfoods is the first investment by Tiger Brands’ Venture Capital Fund.
The R100 million fund, set up by food and beverage company Tiger Brands in mid-2021, is meant to support up and coming consumer brands in the food and beverage sector.
No figure was given on how much Tiger Brands invested or the percentage holding it took in Herbivore Earthfoods but the fund says it plans to invest between R2 million and R20 million per investment, says Barati Mahloele, Venture Capital Fund Director, Tiger Brands.
When it was launched last year, Tiger Brands said at the time this fund was part of its strategy to “stay ahead of the curve in terms of trends to better cater to the evolving needs of our consumers.”
Though supporting these investments could give Tiger Brands access to emerging technologies and exciting new brands, Mahloele says buying out the companies it has invested in was not an immediate objective for the group.
“The focus going into the investment is definitely to let the entrepreneurs do what they do best. So, we are actually very deliberate going in as minority investors. We want them to carry on being flexible and innovative. And we want to take it one step at a time.”
The move to take a holding in Herbivore Earthfoods comes as there is a growing appetite for meat replacement products, as consumers become more aware of the impact of meat production on the environment.
Herbivore Earthfoods was founded in 2014 by Chanel Grantham and Davey du Plessis.
Their goal was to make healthy, plant-based foods accessible and affordable in South Africa. Their first product was kale chips, and their product lines now include. dairy-free milk alternatives and desserts, confectionery and protein alternatives.
Tiger Brands along with co-investor, Secha Capital also shares this goal, saying they want to give Herbivore Earthfoods the scale to make plant-based foods more accessible and affordable for the South African consumer.
Mahloele says Tiger Brands is committed to being a long-term partner, as aside from the financial investment, companies the group invested in will also get support in terms of distribution, brand building, and research and development.
“We are a long-term investor. We are not in a hurry to flip this.”