Bobbie, the only mom-founded and mom-led infant formula company in the United States, has announced its acquisition of Nature's One, an Ohio-based pediatric nutrition company known for setting high standards in quality and organic formula. The strategic acquisition positions Bobbie, the fastest-growing American infant formula company in the past five decades, to unlock its full growth potential while reinforcing domestic manufacturing capabilities. This move comes in the wake of a nationwide infant formula shortage that underscored the need for industry reinvention. By focusing on manufacturing infant formula in the U.S., Bobbie is making significant progress towards its $100 million commitment to strengthen the domestic infant formula supply chain and industry. To facilitate the acquisition, Bobbie is closing a $70 million Series C funding round, with PowerPlant Partners leading the way with a $35 million investment. In total, Bobbie has raised $142 million to date.
Established in 2019 with a mission to develop safe and nutritious infant formula, Bobbie's newly built facility is the first of its kind in the U.S. in 40 years. The state-of-the-art facility enables Bobbie to exercise end-to-end control over the manufacturing process, from raw material sourcing to production and canning. With this infrastructure and its unique European Style Recipes and beloved brand, Bobbie solidifies its position as a disruptor and next-generation industry leader. Once the facility is fully dedicated to infant formula production, Bobbie is projected to serve 15% of the non-WIC (Special Supplemental Nutrition Program for Women, Infants, and Children) market, effectively tripling the number of babies it can nourish. Additionally, Bobbie will continue manufacturing Nature's One products under the Baby's Only brand for the foreseeable future.
Laura Modi, Bobbie's CEO and co-founder, expressed the company's commitment to evolving the infant formula industry through the acquisition. She highlighted Nature's One founder Jay Highman's role as a key asset in pursuing their vision. Highman, often referred to as the godfather of organic formula, revolutionized the industry with his dedication to purity, accessibility, and safety. Modi emphasized the importance of owning end-to-end production while maintaining the valued partnership with Perrigo, a trusted infant formula co-manufacturer, as Bobbie scales up and builds resilience for the future.
Modi emphasized the significance of the acquisition for the U.S. infant formula market, highlighting the importance of American companies feeding American babies. She pointed out that just a year ago, the industry faced a crisis with overseas formulas being flown in to fill U.S. shelves, indicating a lack of long-term preparedness. While acknowledging that Bobbie is not the singular solution, Modi believes the acquisition is a step in the right direction for the industry. As a mother and CEO, she expressed immense pride in the progress made.
Jay Highman, Founder of Nature's One, expressed his pride in the evidence-based approach and dedication to purity that his company brings to pediatric nutrition. He believes that handing the reins to Bobbie will expand their reach and continue promoting the message of purity.
The Series C financing raised by Bobbie demonstrates the company's resilience and strong market fit, particularly during challenging macroeconomic conditions. The round included participation from existing investors, reflecting their loyalty and belief in Bobbie's disruptive potential.
Olivia Walton, Founder and CEO of Ingeborg Investments, commended Bobbie's commitment to providing better options for infant nutrition in the U.S. market. As an investor, she praised Bobbie's ability to pivot, grow, and raise funds during turbulent markets. Walton expressed pride in supporting the only female-founded and mom-led infant formula company in the U.S.
George Birman, Principal at Powerplant Partners, emphasized the role of Bobbie in spearheading a new generation of thinking in infant and child nutrition. He praised the company's unique product quality and understanding of modern parents' challenges and choices. As investors in consumer brands, Birman and his team look forward to supporting Bobbie's future endeavors.
The acquisition signifies Bobbie's rapid growth and remarkable achievements:
- Within two years, the company's revenue reached $100 million, despite temporarily closing new customer registrations during the formula shortage.
- Bobbie became the first infant formula company in the last 30 years to break into the top five in the market.
- Bobbie currently serves over 5% of the non-WIC market, having fed over 300,000 babies.
- In the past year, Bobbie achieved a 394% year-over-year growth rate, six times faster than the rest of the infant formula market.
- Bobbie is committed to enhancing supply chain resilience by reinforcing U.S. domestic manufacturing and maintaining a strong partnership with Perrigo, a trusted co-manufacturer.
- Bobbie became the first U.S.-manufactured infant formula to be both Clean Label and Pesticide Free Certified.
- The company's team has expanded from a dynamic duo to over 100 employees.
- Bobbie's entry into national retail shelves, launching at Target, made it the first U.S.-manufactured infant formula to achieve this milestone. Within a year, Bobbie was named Target's Vendor of the Year for increasing accessibility to families during the formula shortage.
Modi concluded by emphasizing Bobbie's commitment to redefining the future of infant nutrition. The company aims to question the status quo and build a better path for the industry, focusing on innovation for the next generation rather than short-term gains. With an unwavering dedication to providing the best for babies, Bobbie is set to make a lasting impact.