Nourish Foods, the parent company of organic children’s food brand Whole Kids, has new owners, with the Tempo Group buying the brand’s intellectual property from the company’s administrators.
John McInerney and Matt Byrnes from Grant Thornton took charge of the business as receivers in mid-September, a week after it was placed in voluntary administration following an unsuccessful $1 million raise via crowdfunding.
“Shortly after commencement of the receivership, an expressions of interest sale campaign was conducted to find a buyer for the company’s business and assets, which included the ‘Nourish Foods’ brand,” the duo said in a statement confirming the sale.
“As receivers and managers, we are pleased to have been able to support the brand through to a positive outcome and find a suitable buyer who is motivated to see the brand continue.”
Founders Monica and James Meldrum launched Nourish in 2005, as a healthy snacking brand, and expanded the range to Whole Kids, which had strong consumer support with sales via Woolworths growing by 77% in the last year. The range also launched into Chemist Warehouse amid plans to reach Coles shelves in late 2023.
Having generated $23 million in revenue over the past five years, they also launched two new brands: Offbeat, to appeal to Gen Z snackers and Just Add, in the infant pouch category.
The business had previously raised around $2.4 million from more than 1000 backers across to previous crowdfunding (CSF) campaigns, and was hoping for another $2 million-plus when it kicked off a fresh Birchal campaign in May. But the Meldrums set a high bar in seeking a $1 million minimum commitment and when that level of support failed to materialise by mid-June, the investment didn’t proceed.
Tempo Group supplies a range of products to retailers in Australia, New Zealand, UK and North America, with offices in 8 countries . It acquired the Freedom Foods speciality seafood division two years ago, which includes the Paramount and Brunswick canned seafood brands.
Monica Meldrum said she’ll continue to be part of Nourish Foods under its new owners.
“I will be staying on to realise our vision for the business with the full support of the Tempo founders and executive team,” she said.