Good Culture’s recent majority-stake investment from private-equity firm L Catterton is just the beginning of a big year for the cottage cheese brand.
A month after the big announcement from L Catterton, another private-equity firm, SEMCAP, gave Good Culture a financial boost with a $55 million investment in the company.
The investment from SEMCAP doubles down on a new growth phase for Good Culture, which L Catterton valued at more than $500 million in January, according to the Wall Street Journal.
SEMCAP bets on Good Culture
SEMCAP, a private-equity firm that focuses on growth companies, said the new investment builds on its long-standing relationship with the 11-year-old cultured dairy brand.
The transaction underscores its commitment to food and beverage manufacturers redefining the the cottage cheese category and “reshaping the future of food,” SEMCAP said.
The investment “reflects the investor’s conviction in the brand’s ability to continue redefining modern dairy with clean-label, high-protein products,” SEMCAP said.
Investing in better-for-you
SEMCAP made the investment less than a month after raising $125 million for its inaugural Food & Nutrition fund. Investors in the fund include Fresh Del Monte, Farm Credit Canada and Securian Financial, SEMCAP reported.
The Wayne, Pa.-based private-equity firm said the fundraise – which brings the firm’s total assets under management to more than $500 million – is a vote of confidence in SEMCAP’s ability to identify and scale better-for-you food brands.
The firm has already deployed the funds in companies including ALOHA, Fresh Prep, Kite Hill and Purely Elizabeth. SEMCAP said the new fund will help add to its existing holdings and drive further growth in North America.
“We established this fund to address some of the most critical challenges arising from the dual food and health crises facing the country,” said SEMCAP co-Founder and co-Chief Investment Officer Walter “Buck” Buckley. “Together, the strength of this team and the timeliness of the opportunity position SEMCAP Food & Nutrition to meaningfully capitalize on the urgent needs these crises present.”
Cottage cheese is no fad
While the rapid growth of cottage cheese sales might initially be due to its popularity on TikTok, the trend is more than just a passing fad, according to the International Dairy Foods Association (IDFA).
IDFA reported in December that cottage cheese was among the fastest growing dairy products of 2024, according to USDA data. On average, US consumers ate 2.4 pounds of cottage cheese in 2024, hitting a 15-year high for the category.
“American families continue to consume dairy foods at near record levels because dairy delivers what matters most today – flavor, affordability and complete nutrition,” said IDFA President and CEO Michael Dykes. “Consumers are leaning into high-protein foods, gut-healthy options and simple, wholesome ingredients, and dairy meets every one of those needs. Surging sales of yogurt and cottage cheese only underscore the transformation happening for US dairy.”
