As the lines between online and offline platforms blur, Consumer Packaged Goods (CPG) firms are constantly searching for ways to stand out in a competitive environment. Since last year, CPG firms have experienced creativity and development in several key areas such as cross-channel customer interactions, new products and brands, and thrilling product demonstrations.
Private equity firm VMG Partners has recently announced the acquisition PopChips, a North American snacking brand. Apparently, the announcement comes following VMG’s launch of Velocity Snacks Brand (VSB), a snacking platform that will purchase, incubate and create a portfolio of leading snack brands by potentially collaborating with retailers.
Notably, VMG has been a leading investor in consumer products, while partnering with entrepreneurial firms to build iconic and ground-breaking consumer brands for more than a decade. With VMG’s vast expertise in investing, expanding and exiting consumer packaged goods and products the company seemingly identified a huge opportunity for a platform such as VSB in the market.
Developing platforms in categories such as food & beverage, pet food, wellness and personal care & beauty, VMG has certainly been making sizable investments for over 15 years. The team is excited to partner with PopChips to kick off its first consumer products platform, VMG mentioned in a statement.
Sources with knowledge of the matter reported that CEO Amit Pandhi will lead the VSB brand which will be headquartered in Los Angeles. Pandhi was previously the CEO of low-calorie ice cream brand Arctic Zero.
According to VMG general partner Wayne Wu, the group is planning to invest extensively in snacking through sweet, salty and nutrition snack bar categories. He added that VSB’s vision is to provide snacking product manufacturers the opportunity to build an initial momentum while also providing a launch pad for innovation.
Keith Belling, Founder and ex-CEO of PopChips was reported saying that VSB’s vision complements PopChips’s commitment to be an innovative leader in better-for-you snack section. The company looks forward to seeing how VSB leverages expertise and organizational synergies of PopChip’s snack system to bring the later company to the next level, Keith stated.
Barclays reportedly served PopChips as an exclusive financial advisor for the transaction while its majority shareholder Verlinvest, and Morrison Foerster, acted as legal advisors to the company.