August 28, 2018

Edinburgh-based private equity firm Inverleith has acquired a majority stake in Good Hemp, a UK-based hemp food and beverage company, through a deal with its parent company Braham and Murray.

Inverleith targets its investments toward UK-based and European consumer brand businesses with revenue between £5 million  (US$6.4 million) and £30 million (US$48.6 million). Driven by macro trends that include an increased consumer awareness of both mental and physical well-being and the role that food plays in human health; rising popularity of craft brands; the adoption of e-commerce as a channel for growth; and the ability for small startups to rapidly innovate and adapt to market demands, Inverleith acquires majority or strategic minority stakes in scalable businesses with a “strong defendable market position”, according to the firm’s website.

Good Hemp fits this criteria well. Founded in 1998 by Henry Braham and Glynis Murray at their farm in Devon, England, Good Hemp produces a range of hemp-based products including hemp milk, protein supplements, protein flours, and hemp seeds.

The global hemp-based food market is expected to see a CAGR in excess of 24 percent between 2018 and 2022, according to Technavio. This impressive growth is forecast to be largely driven by an expanding vegan population and a higher rate of diagnosis of celiac disease.

Hemp (cannabis sativa) contains no THC and is one of the oldest and most sustainable crops grown. Produced without pesticides, hemp is high in omega oils, protein, fiber, vitamin E, potassium, and iron. The plant captures four times the CO² as the same area of trees, and requires 14 times less water than cotton.

“Good Hemp continues as a successful investment within our health and wellness investment category,” said Paul Skipworth, managing partner, Inverleith. “The company is firmly placed to take advantage of the high growth plant based food & drink trend, with high quality hemp based products which are nutritionally rich, whilst also being manufactured from a sustainable plant.”

The company plans to use the funds and the expertise gained through this deal with Inverleith to expand distribution of its alternative hemp milk throughout the UK and into overseas markets; to expand its hemp-based product portfolio, and to launch a new marketing campaign that will shed light on Good Hemp’s nutritional benefits.

“Supported by the Inverleith LLP experience and expertise, combined with its further investment, we believe that Good Hemp is perfectly positioned to reach new consumers and continue to flourish both in the UK and internationally,” said Skipworth.

“Henry and Glynis have built a tremendous business from the ground up through their vision of what could be achieved with hemp,” added Ben Thomson, chairman of Inverleith. “We are really excited about Good Hemp’s products and believe Good Hemp has the potential to gain a significant share within the fast growing milk alternative market, as well as within other plant based categories.”

-Lynda Kiernan