Struggling beverage chain gets a new key investor

The popular eatery caters to a growing population of consumers.

May 1, 2024 - 02:30

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Struggling beverage chain gets a new key investor

One of the fastest growing trends in the food and beverage industry is the health-conscious movement, which may be easy to miss if you don't know what you're looking at.

Browse the shelves at your local grocery store and you may notice more organic and less-processed foods than you might have seen several years ago.

Nearly every large grocery chain stocks some sort of in-house or generic organic brand.

Stores like Stop & Shop and Giant stock Nature's Promise organic goods, which includes everything from canned goods to produce. Publix carries Greenwise, which includes produce, yogurt and breakfast cereal. Kroger (KR) stocks Simple Truth, also featuring organic produce, pasta and packaged goods like spaghetti sauce.

But it's easy to miss these products unless you take the time to look at labels, most of which tend to be green but subtle. Many customers in big-box grocery stores are seeking the best prices and tend to be less concerned about organic goods, which largely are pricier.

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Instead, those wishing to find less processed foods with less pesticides, for example, may instead shop at Whole Foods.

Healthy dining is growing

It has also been difficult to find wholesome and healthful foods while dining out. Many restaurants are mum on their ingredients, and you'd be hard pressed to find an organic salad at your local fast food chain.

That is, until very recently. Niche, typically more expensive, eateries have begun to crop up, particularly in wealthier metropolitan areas.

Places that serve dishes like açaí bowls, green juices, micro green salads and avocado toast are more growing popular, particularly as some restaurants and markets go viral on social media. These include Erewhon market in Los Angeles and A Matter of Health and East Village Organic in New York City.

These places are great when you know what you're looking for or if you're a health nut seeking the best-quality ingredients and are willing to stretch your budget.

Popular organic chain to be bought

But expanding outside wealthy areas can be a tricky game. The most typical approach is to franchise out a market or restaurant and hope it catches on. But if the most recent Foxtrot and Dom's Kitchen & Market saga is any sort of cautionary tale, expansion is costly and consumers are fickle, with their tastes difficult to capture at a given moment.

Which may in part be why Brix Holdings, a Dallas restaurant-portfolio group, is buying more than 75 Clean Juice locations, per an announcement on Monday.

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Clean Juice, which was founded in 2016 and as of 2022 had some 135 locations in the U.S., specializes in organic smoothies and light fare options. It operates mostly on a franchise model, with the bulk of its locations on the East Coast.

The chain had been struggling in recent months after it moved from a cold-pressed-juice model to bottled juices. The move may have put off customers who were looking for the more artisanal approach to food prep. And Franchise Times reported that the switch created a sharp dispute with franchisors covering dozens of stores.

Brix, which also owns Friendly's, the New England-based ice cream and American fare restaurant, says the acquisition will further develop its portfolio of restaurants with strong brand identities.

"Our Brix portfolio of brands all share a common thread: Each has a unique and differentiated position in their sector with loyal guests and fans," Chief Executive Sherif Mityas said in a statement. "Clean Juice fits right into that mold with a strong foundation of beloved and certified organic offerings that effectively extend our spectrum of 'better-for-you' options."

Terms weren't disclosed but the deal is expected to close within several weeks.

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