Green Park Brands plans to raise capital next year
Green Park Brands, a holding company that creates "better-for-you" CPG brands, plans to raise money next year both for itself and for toilet paper brand Reel, CEO Livio Bisterzo tells Axios.
Why it matters: Toilet paper alone is a $26 billion-plus category as of 2020, according to several market research providers, and demand is growing for sustainable alternatives that do not contribute to deforestation.
Details: Reel, which is made from bamboo and sold in biodegradable packaging, will likely raise growth capital from institutional investors, Bisterzo says.
- The round could be in the eight-figure range, but he declined to comment further on a specific amount.
- "Reel is getting to a stage of development now where I think an institutional growth round makes sense for next year," he says.
- "It's growing to a fairly large business at this point, so next year we could be looking for institutional growth investors to really take it to an even bigger business," Bisterzo adds.
Yes, and: Green Park Brands could also look to raise some cash for its own balance sheet, Bisterzo says.
- "We're a fairly fluid structure. We have capital on the balance sheet to develop and incubate while also we take some of these businesses into partnerships and strategic investments to continue to grow," he says.
- He declined to comment further on the targeted amount as the holding group is still "in the process of figuring it all out," but will disclose more details when the company gets closer to that moment.
Flashback: Green Park Brands' organic chickpea snack brand Hippeas raised more than $50 million from The Craftory Ltd. in early 2021.
- In addition to Hippeas and Reel, the company also owns Mavericks, a children's snack brand, and Betr, a provider of over-the-counter medicines.
- Its other brands have thus far raised small amounts of money from partnerships that have some strategic element, but which did not involve institutional investors, Bisterzo explains.
What's next: After launching HoldOn, a plant-based compostable trash bag brand earlier this year, Green Park Brands will unveil a sixth home essential brand next year, Bisterzo says.