Buddha Brands secures $5.25M financing led by Fondaction

CPE News

CPE News (10.26.2022) – Buddha Brands has announced the closing of a $5.25 million round of financing with Fondaction.

Mathieu Sasseville from Fondaction has joined Buddha Brands board of directors.

Stifel Nicolaus Canada Inc. acted as financial advisor to Buddha Brands in connection with the transaction

Christopher Magnone, Michael Magnone, Kaila Magnone, and Mark Cigos, Montréal, Québec based Buddha Brands is the makers of better-for-you, plant-based snacks and beverages. With 21 employees, the company offers a range of plant-based snacks and beverages including Thirsty Buddha® coconut water, Thirsty Buddha® sparkling coconut water, and Hungry Buddha® nutrition bars.

New investment will allow Buddha Brands™ to hire more resources, develop new products, increase production of its Hungry Buddha® nutrition bars in Quebec, and accelerate its penetration in the U.S. market.

In 2021, Buddha Brands raised $3 million in growth capital funding from BDC Capital and Investissement Quebec.

photo credit: Buddha Brands

News Release

Buddha Brands™ Closes 5.25 Million Investment Funding with Fondaction

Innovator of Better-For-You Food & Beverages Announces Major Investment to Support Accelerated Growth and Expansion of Plant-Based Products in the Better-For-You Space

October 25, 2022 03:00 PM Eastern Daylight Time

MONTREAL–(BUSINESS WIRE)–Buddha Brands™, makers of better-for-you, plant-based snacks and beverages, today announced a $5.25 million round of funding from leading capital investor, Fondaction, whose commitment to the positive transformation of the local Quebec economy will help support their new phase of growth. The company, which is headquartered in Montreal, Quebec, makes plant-based snacks and beverages that are low in added sugar and stand out due to their superior nutritional value, with an emphasis on clean, purposeful ingredients. The investment, will allow Buddha Brands™ to hire more resources, develop new products, increase production of its Hungry Buddha® nutrition bars in Quebec, and accelerate its penetration in the U.S. market.

Buddha Brands™ was founded in 2012 with a simple mission to redefine what it means to live well. Today, the company employs 21 people and offers a range of plant-based snacks and beverages including Thirsty Buddha® coconut water, Thirsty Buddha® sparkling coconut water, and Hungry Buddha® nutrition bars.

Having diversified its product portfolio in Canada and begun distributing products in the U.S. market in 2020, Buddha Brands™’ CEO and co-founder, Christopher Magnone believes it is now time to take the next step. “We are part of a lasting consumer trend that only continues to accelerate, where better-for-you consumer products are in high demand. Fondaction’s support comes at the right time as we continue to expand distribution and push forward with promoting better eating habits in North America. Generating more market awareness for Buddha Brands™ and our plant-powered, clean-ingredient snacks and beverages will remain a key focus for the business. We have lofty visions for where we can take Buddha Brands™, and we are excited about our next chapter with Fondaction by our side!”

For Claire Bisson, Deputy Head of Investment, Impact and Sustainability, “supporting Buddha Brands™ means supporting the production of plant-based foods with simple and healthy ingredients. This investment is thus encouraging the supply and accessibility of plant-based, better-for-you foods, which will positively impact society’s overall health and wellness.”

Buddha Brands™ can be found in over 5,000 retail locations across Canada and the United States with distribution in natural and independent food stores, grocery chains, including Loblaws, Metro, Sobeys, Costco, and more, as well as big box retailers, convenience stores, and online shopping platforms like Amazon. As members of the 1% For the Planet, Buddha Brands™ is committed to donating 1% of its annual sales to environmental organizations such as Oceana, Second Harvest, and many others.

Stifel GMP acted as financial advisor to Buddha Brands™ in connection with the transaction.

About Buddha Brands™
Buddha Brands™ is Powered by Plants and Fueled by Purpose. From the very beginning the founders set out to build a company that reflects a conscious effort to live better, eat better, and do better through the creation of delicious, plant-based snacks and beverages made with clean and purposeful ingredients. Buddha Brands™ makes a range of Deliciously Clean™ snacks and beverages including Thirsty Buddha® Coconut Water, Thirsty Buddha® Sparkling Coconut Water, and Hungry Buddha® Nutrition Bars. As members of 1% For The Planet, Buddha Brands™ pledges 1% of annual sales to organizations focused on protecting our natural resources and nourishing our communities. To learn more about Buddha Brands™, visit www.buddhabrands.ca or follow Buddha Brands™ on Instagram and Facebook (@BuddhaBrandsCo).

About Fondaction
A pioneer for 25 years, Fondaction is the investment fund for those who are committed to the positive transformation of the Quebec economy. To make our economy more efficient, more equitable, more inclusive, and greener. As a labour-sponsored fund, Fondaction represents tens of thousands of investors and hundreds of companies committed to advancing Quebec. It manages more than $3.11 billion in net assets invested in hundreds of companies and financial markets, with a focus on investments that generate positive economic, social, and environmental impacts in addition to financial returns. Fondaction helps maintain and create jobs, reduce inequalities, and fight climate change. For more information, visit fondaction.com or their LinkedIn page.

Contacts
Media:
Samantha Carpanzano
Temple Lifestyle Inc. (Buddha Brands)
(514) 382-3805 x.208
samantha@buddhabrands.com