Goodfood Acquires Controlling Interest in Genuine Tea, A Leading Third-Wave Craft Tea Company

MONTREAL and TORONTO, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Goodfood Market Corp. (“Goodfood” or “the Company”) (TSX: FOOD), a leading Canadian online meal solutions company, is pleased to announce its acquisition of an 81% interest in Genuine Tea Inc. (“Genuine Tea”), a leading Canadian craft tea company.

The founding shareholders of Genuine Tea will continue to lead the business and hold the remaining shares of the company, with Goodfood having a right to acquire their shares in the future. The acquisition, financed mainly with Goodfood’s cash reserves, includes future performance-based payment features to the Genuine Tea shareholders.

Goodfood is celebrating its 10th anniversary and has developed expertise and infrastructure in the direct-to-consumer food and beverage space that will serve as a strong platform for Genuine Tea to accelerate its growth and scale its reach.

“We have grown Genuine Tea from a farmers’ market venture to a multi-million-dollar national brand and we could not be happier to join the Goodfood family to propel Genuine Tea to the next level,” said Sarah Wilcox, cofounder and CEO of Genuine Tea. Genuine Tea had over $3.5 million dollars of net sales in its most recent Fiscal year and the acquisition will be accretive to Goodfood’s Adj. EBITDA margin.

This acquisition marks the beginning of Goodfood’s next chapter, focusing on building a portfolio of innovative direct-to-consumer food and beverage brands. Having helped pioneer meal-kits for millions of Canadians, Goodfood now leverages its direct-to-consumer infrastructure, technology, and culinary expertise to empower select founders with a unique offering to expand and scale their businesses. As part of this acquisition, Genuine Tea’s premium tea varieties will also be available through Goodfood’s meal kit subscriptions, bringing added convenience and quality to Canadian consumers.

“Over the past decade, as we have scaled Goodfood, we observed a clear gap in the market for quality, niche direct-to-consumer food and beverage brands,” said Jonathan Ferrari, cofounder, and CEO of Goodfood. “Canadian consumers want these brands but the infrastructure to scale and meet demand did not exist. Bringing Genuine Tea on board is the first step in building an exciting portfolio of brands that resonate with Canadians’ tastes and preferences. We look forward to helping the next generation of entrepreneurs elevate their businesses and achieve new levels of success,” added Mr. Ferrari.

With its “for entrepreneurs, by entrepreneurs” approach, Goodfood is targeting passionate founders committed to expanding their business. The partnerships represent not an end, but the beginning of a new growth chapter for each brand.

Acquired brands will benefit from Goodfood’s extensive resources, including its cost-effective distribution network, temperature-controlled facilities, established supplier relationships and expertise in food and beverage innovation.

About Goodfood

Goodfood (TSX: FOOD) is a leading digitally native meal solutions brand in Canada, delivering fresh meals and add-ons that make it easy for customers from across Canada to enjoy delicious meals at home every day. The Goodfood team is building Canada’s most loved millennial food brand, with the mission to create experiences that spark joy and help our community live longer on a healthier planet. Goodfood customers have access to uniquely fresh and delicious products, as well as exclusive pricing, made possible by its world class culinary team and direct-to-consumer infrastructures and technology. We are passionate about connecting our partner farms and suppliers to our customers’ kitchens while eliminating food waste and costly retail overhead. The Company’s administrative offices are based in Montreal, Québec, with production facilities located in the provinces of Quebec and Alberta.

About Genuine Tea

Founded in 2015, Genuine Tea is a leading omni-channel tea brand based in Toronto, Canada. After spending five years in Taiwan and learning from tea farmers across Asia, founders Sarah Wilcox and David O’Connor identified a gap in the quality, freshness and ethical trade of teas available in Canada. A proud leader in the Third Wave Tea movement, Genuine Tea sources fresh, high-quality teas and botanicals while recognizing and fairly compensating tea makers for their craftsmanship. Driven by a passion for tea and wellness, Genuine Tea is pushing the boundaries in the tea industry with its innovative better-for-you products that resonate with the modern consumer.