Simple Food Ventures

Some thoughts on CPG from SFV... Over the past two years, the CPG industry has faced a tough reset: high interest rates, frozen capital flows, and sparse exits turned a playground for innovation into a test of survival. At Simple Food Ventures, this moment sharpened our focus—backing founders who are reimagining America’s relationship with food for the better. Now, the tide is turning. In just six weeks, we’ve seen major acquisitions—Siete ($1.2B), Ghost Energy ($900M), FitCrunch ($750M). These aren’t just numbers; they’re proof that brands building real connections during the downturn are attracting attention and showing acquisition potential. So, what’s driving this CPG resurgence? Here’s our take: 1?? Valuations are at record lows Over the past 18-24 months, the inaccessibility of capital has placed downward pressure on multiples in the early stage-venture landscape. The capital squeeze has created unprecedented buying opportunities. Companies once valued at 3-5x TTM Revenue are now closer to 1-3x, creating an extraordinary window for investors that won't last forever. 2?? Strategic acquisitions are still happening Despite economic challenges, demand persists for consumer companies demonstrating authenticity and sustainable growth. 3?? Consumers demand real food Our founding thesis at SFV has always been clear: consumers are done with ingredients they can't pronounce. Clean, crave-worthy, and planet-friendly brands are winning big—and the market is catching up to this reality. 4?? Policy & retail are shifting In the wake of November's election results, markets are anticipating lower capital gains taxes, a more business-friendly regulatory environment, and potential reductions in interest rates. Plus, if antitrust regulations ease as predicted, we expect to see a surge of mergers and acquisitions, like the Kroger-Albertsons deal. 5?? Legacy CPGs are buying, not building Some of the biggest players in consumer goods are leaning on acquisitions instead of innovation to get ahead. For emerging brands with product-market fit, this opens a clear and valuable exit path. For investors and founders alike, the message is clear: the moment to act is now. At SFV, we’re not just looking to catch the next wave—we’re actively helping shape it by investing in brands that stand for more than just sales. Whether it’s functional beverages, clean-label snacks, or transformative wellness products, our commitment is to support brands that are building a healthier, more sustainable future for consumers. The next generation of wellness brands won’t just be selling products; they’ll be solving real challenges in how we live, eat, and care for ourselves. And we’re proud to be here, championing those who are making it happen.