December 11, 2017

Clearlake Capital Group has partnered with Bill Moses, co-founder and former chairman of KeVita Probiotic Drinks, to launch Disruptive Brands, a new accelerator created to invest in and support emerging better-for-you food and beverage startups.

Founded in 2006 in Santa Monica, California, Clearlake Capital is a leading middle market private investment firm that has led or co-led over 100 investments, including other food investments in Chef’s Cut Real Jerky, Mrs. Thinsters, and Sensible Portions, and currently has more than $3.5 billion in assets under management.

Bill Moses was co-founder of KeVita Probiotic Drinks, a leading North American maker of fermented probiotic and kombucha beverages. Launched in 2009, KeVita produced three product lines consisting of two dozen flavors of Sparkling Probiotic Drink, Master Brew Kombucha, and Apple Cider Vinegar Tonic as of December 2016 when the company was acquired by PepsiCo for approximately $250 million, according to sources. Moses also has been involved with multiple non-profit organizations, corporate boards, and business ventures.

By building KeVita into a household name and selling the business to Pepsi, Moses successfully achieved what thousands of entrepreneurs are working towards,” said Arta Tabaee, a principal at Clearlake. “We believe Disruptive Brands will give entrepreneurs and business leaders a great opportunity to leverage Bill’s expertise and gain access to Clearlake’s sponsorship, operational expertise and resources.”

Since the sale of KeVita, Moses has shifted into the role of a “brand builder” according to BevNet, searching out new investment opportunities in the healthy food and beverage space including Iconic Protein and plant-based beverage company Koia.

“The partnership with Clearlake is a natural evolution of my passion to bring consumers healthy choices in organic, better-for-you products with substantiated functional benefits,” said Moses. “As an entrepreneur, I understand the challenges that founders and high-growth companies in the CPG sector face as they scale their businesses.”

Clearlake also has its own experience in early stage investments in the better-for-you food category. In March of last year the firm partnered with food industry veterans Jason Cohen and Leigh Feuerstein of New Jersey-based Helen Brands to launch Better for You Holdings – an investment platform focusing on backing dynamic new brands in the food, health, and wellness sectors.

This partnership with Moses however, is being seen as an expansion and a deepening of the firm’s reach in the consumer products investment space. While Moses told Project Nosh that  with Clearlake’s backing, Disruptive Brands will be able to make investments ranging from $10 million to $50 million.

“We are excited about teaming with an experienced executive like Bill and leveraging our collective expertise in the food and beverage space,” said José E. Feliciano and Behdad Eghbali, co-founders and managing partners of Clearlake. “This platform will enhance and broaden our capabilities in the consumer products industry and continue Clearlake’s track record of partnering with successful entrepreneurs in the better-for-you segment of the market.”

Looking ahead, Moses told Project Nosh that the fund will be highly selective when it comes to beverage investments, however, will be freer with its food investment capital, noting that scientific verification of health claims for functional beverages will be key.

“It’s not going to be enough to say this particular functional benefit or attribute in a particular product really is better for you unless it can be substantiated,” said Moses. “The winners [in the category] will be the ones that can deliver on that substantiation.”

-Lynda Kiernan