Nourish Foods, the parent company of the popular organic children’s food brand Whole Kids, has found new owners in the form of the Tempo Group. Tempo Group has acquired the brand’s intellectual property from the company’s administrators, marking a pivotal moment in the brand’s journey.
The business had experienced financial challenges, with John McInerney and Matt Byrnes from Grant Thornton taking charge as receivers in mid-September. This move came just a week after Nourish Foods entered voluntary administration, prompted by an unsuccessful attempt to raise $1 million through crowdfunding.
The receivers, in a joint statement, explained, “Shortly after the 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. 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.”
Nourish Foods, originally launched in 2005 by founders Monica and James Meldrum, began as a healthy snacking brand. Over the years, they expanded their offerings to include Whole Kids, a brand of organic children’s food. Whole Kids experienced strong consumer support, with sales through Woolworths growing by an impressive 77% in the last year. Furthermore, the brand successfully entered Chemist Warehouse and had plans to expand its presence to Coles shelves in late 2023.
The business, during its journey, generated $23 million in revenue over the past five years and introduced two new brands: Offbeat, designed to appeal to Gen Z snackers, and Just Add, a brand in the infant pouch category.
Previously, Nourish Foods had raised approximately $2.4 million from more than 1,000 backers through previous crowdfunding campaigns. They aimed to secure more than $2 million when they launched a fresh campaign on Birchal in May. However, the Meldrums set a minimum commitment of $1 million, and when that level of support did not materialize by mid-June, the investment endeavor did not proceed.
Notably, it acquired the Freedom Foods specialty seafood division two years ago, which includes well-known canned seafood brands such as Paramount and Brunswick.
Monica Meldrum, a co-founder of Nourish Foods, expressed her commitment to the brand’s future under its new owners, stating, “I will be staying on to realize our vision for the business with the full support of the Tempo founders and executive team.” This indicates a positive outlook for the brand and its continued mission to provide healthy options for children.