NEW YORK and DENVER — On June 22, Better Choice Company, Inc., shared that it had received a $5 million investment from Alphia, Inc., a manufacturer of super premium pet foods, establishing a direct manufacturing partnership.
“Better Choice shares our values and mission to create high-quality, nutritional dog food and treats for family’s pets,” said Dave McLain, chief executive officer for Alphia. “This investment brings us closer to a strong brand that shares our values for the highest product quality and food safety. We are ready to help propel growth for both companies.”
The investment will help Better Choice stabilize its business outlook. At the beginning of the year, the company reduced its workforce, revealed it would examine acquisition interest in its Halo brand, and shared that recurring losses, and “significant accumulated deficit” have raised “substantial doubt” in terms of its ability to stay in business.
“With this strategic investment into Better Choice as well as a multi-year manufacturing partnership with leading premium pet manufacturer, Alphia, Better Choice is in an excellent position to grow the Halo brand with a strong partner,” said Michael Young, chairman of Better Choice.
“We look forward to working with Alphia, leveraging their investment and deep knowledge of the pet food manufacturing marketplace,” he added. “Alphia and Better Choice’s multi-year manufacturing partnership will positively impact our brand, Halo and the millions of people who choose our products for their pets.”
According to Better Choice, the investment will eliminate debt held by its Halo brand with Wintrust Bank N.A. The funds will also offer the company improved liquidity. Better Choice will enter an asset-based lending agreement with Wintrust Receivables Finance to help improve its debt conditions and cash flow plans to improve profitability.
Alongside the investment, Alphia will serve as the manufacturer for the Halo pet food brand.
“Solidifying a long-term manufacturing relationship with Better Choice is in line with Alphia’s vision to nourish and protect pets every day, creating a lasting impact with brand partners that share our views on safe, high quality pet food,” McLain said. “We respect the Halo brand, and look forward to fueling their growth to feed more pets.”
Read more news from pet food manufacturers.