December 1, 2016

Sunrise Strategic Partners announced it has agreed to acquire a minority stake in Maple Hill Creamery – a New York based leader in the production of third-party certified 100 percent grass-fed, organic dairy products including whole milk yogurt, kefir, cheese, and milk.

Sunrise was launched earlier this year by former chief executive of Boulder Brands, Steve Hughes and his partner, the New York-based private equity firm, Trilantic North America.

Under its investment strategy, the firm will be seeking out companies that resonate with millennials and their lifestyles choices and will provide capital and expertise to early-stage companies focused on healthy, active, and sustainable lifestyles that have reached revenue of between $10 million and $20 million. Over the next two years, Sunrise is looking to invest in between seven and ten companies and, at the point of its launch, was already in talks with several Colorado-based startups that Sunrise hopes to scale up to $100 million operations.

Founded in 2009, family-owned Maple Hill is widely recognized as a leader in the 100 percent grass-fed dairy space and has grown its Maple Hill Creamery Milkshed over the years to include over 100 small farms. On the back of high consumer demand, Its popular product line is available in over 6,000 retail stores across the U.S. including Whole Foods, Natural Grocers, Sprouts, and select Kroger sites.

“As consumers and retailers begin to understand the value and benefits of 100% grass-fed there is significant opportunity to scale this brand,” said Steve Hughes, CEO and co-founder of Sunrise Strategic Partners. “I’m looking forward to working with Tim and the entire Maple Hill team to bring 100 percent grass-fed dairy to more consumers.”

Under Maple Hill’s 100 percent grass-fed production model, cows eat grass from pasture and baleage, while spending most of their day on pasture. The holistic approach to farm management improves the soil and nutrient density, sequesters carbon, and reduces waterway contamination while also creating dairy products that are shown to have higher concentrations of omega-3 fatty acids and beta carotene.

“Maple Hill Creamery is challenging conventional thinking that you can’t produce milk with ‘just grass’. We are committed to growing a community of regenerative grass farmers and demonstrating how 100% grass-fed dairy is the ‘new’ organic by benefitting the cows, consumers, the farmers and the land,” said Tim Joseph, Maple Hill Creamery Founding Farmer & CEO.

This will be the fifth acquisition for Sunrise under its investment strategy that targets brands with a strong standing in the natural channel, have “compelling points of differentiation, and an authentic back story”, according to the firm’s website. Maple Hill will be joining a portfolio that includes Boulder-based apparel company, PACT,  premium jerky company, Perky Jerky,  grass-fed meat producer Teton Waters Ranch, and producer of better-for-you breakfast items, Kodiak Cakes.

Despite the fact that the first investment made by the fund is in Boulder-based apparel company, PACT, Mr. Hughes told the Daily Camera that the fund will mainly focus on food and beverage startups, saying, “I’m not really an apparel guy — I’m a food and beverage guy.”

The capital investment by Sunrise will be used by Maple Hill to fund the expansion of its team, and to increase its sales, marketing, and supply to keep pace with the brands’ brisk growth.

“Partnering with Sunrise Strategic Partners is an exciting new chapter for Maple Hill,” said Tim Joseph. “We look forward to leveraging the Sunrise team’s operational expertise and industry relationships to grow the brand.”

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Lynda Kiernan