Exact terms of the deal were not disclosed, but The Good Bean now owns Beanitos’ assets, including products, recipes, branding and retailer relationships. However, it did not assume any responsibility for Beanitos’ debt, according to a report by NOSH.com.
The Texas-based better-for-you snack brand sold over 15 million bags of its bean-based chips and puffs in 2018, but struggled with issues following a rebrand at the start of 2019, including initial production issues with a new copacker and a slow return to shore shelves of the new smaller packs, which needed a change to Beanitos’ UPC codes.
According to Sarah Wallace, cofounder and CEO of The Good Bean – who will run the combined business – the merger opens opportunities not only for combined marketing and sales efforts, but also to be able to make a greater impact in encouraging sustainable agriculture in the US.
Both companies source their ingredients from family farms in the US.
Both brands have also seen strong velocities in conventional grocery and club channels. Beanitos’ snacks can be found in 15,000 stores across the US, including Walmart, HEB, Kroger, Whole Foods Market and Publix. The Good Bean, alternatively, is sold in around 10,000 stores, including Walmart, Kroger, Rite Aid, 7-11 and Costco.
Wallace added the new company will realise revenues between $30m-$40m, with each brand expected to roughly contribute equally to the bottom line. She noted The Good Bean has been profitable with positive cash flow since 2013, growing 52% year-over-year in 2019.
“This allows the platform to go places that each business couldn’t easily go on their own,” said Andrew Whitman, managing partner of 2x Consumer Products Growth Partner, which, under the deal, is now a minority shareholder in The Good Bean.
“Now you have a platform that’s in three categories not one or two, and it gives you a lot more credibility to go to other sectors of nutrient dense snacks in an easy way.”
The two companies are planning to release their first joint product later this year.
Founded in 2010, Beanitos was one of the leaders of the bean-based revolution, turning them into a line snacks that are packed with protein, fibre and antioxidants. Its portfolio includes Original Black Bean chips, Mac N' Cheese Crunch, Hint of Lime Skinny Dippers and Nacho Cheese White Bean Chips, among others. Beanitos CEO Giannella Alvarez has departed the brand.
The Good Bean arrived on the scene the same year – cofounded by Wallace and former Pixar animator Suzanne Slatcher – debuting with roasted chickpea snacks and later expanding into crispy fava and pea chips and bars.