General Mills has acquired a pet supplements business, marking the first purchase facilitated by the new “growth equity fund” of the US-based conglomerate.
The owner of Blue Buffalo pet food has acquired Fera Pets, a company specializing in the development and sale of supplements for dogs and cats.
A spokesperson from General Mills stated that their recently launched fund, announced on November 9 alongside the Fera Pets deal, is “dedicated to acquiring, scaling, and incubating businesses.”
The fund is part of a trio of units employed by General Mills for either investing in emerging businesses or cultivating its own products. These units are consolidated under a division known as Gold Medal Ventures.
301 Inc, previously functioning as the company’s innovation arm and later as its in-house investment vehicle, now serves as the deal-sourcing arm for the growth equity fund, as clarified by the spokesperson.
They added: “301 Inc will find passionate and driven founders, in or adjacent to General Mills’ current categories, with proven impact in the market. The growth equity fund is focused on acquiring, scaling and incubating businesses to accelerate their growth, providing them with access to General Mills’ talent and expertise, while remaining founder-led and independently operated.”
The spokesperson declined to comment when asked why General Mills wanted to set up the new fund when it had been using 301 Inc to make the investments.
They also refused to be drawn on the investment budgets the units have, or how many staff work within them.
Gold Medal Ventures’ third pillar is G-Works, set up in 2019 and through which the company develops and launches its own products.
Launches to have emerged from G-Works include “blood sugar friendly” snack brand Good Measure and lower net-carb pasta brand Carbe Diem.
Earlier this year, General Mills pulled another of G-Works’ products – the experimental non-cow milk cream-cheese brand – Bold Cultr from the market.
Dr. Michelle Dulake, a veterinarian and co-founder of Fera Pets, said the US-based company was “thrilled to join the General Mills family and embark on a new chapter of growth for our business”.
She added, “Fera Pets was created after recognising a lack of transparency in the pet supplement category and a gap in the market for a holistic approach to our pets’ wellbeing. With the support of General Mills’ scaling capabilities, we are looking forward to furthering our mission to create better lives for pets and their families.”
Fera Pets sells products including probiotic supplements and fish oil. Its products can be bought online, including through pet specialist Chewy, as well as through more mainstream retailers like Target.
Earlier this year, General Mills announced plans to close a pet-food plant in Iowa.
However, in March, the company set out plans to invest in its Blue Buffalo facility in Wayne County, Indiana.
The group’s recent investments in pet food have also included financial backing for US cat-food business Smalls.
In March, the New York-headquartered D2C start-up said it had raised $19m from investors including 301 Inc and the Mars-affiliated Companion Fund.