Plant-based protein nutrition beverage company Koia, has snapped up a proprietary manufacturing facility in Anaheim, California.
The Los Angeles-based company has made the purchase as part of a new “vertical integration strategy“ in a bid to control more of its own production capabilities.
Go deeper with GlobalData
The firm did not disclose how much it paid for the new facility.
Michael Woolard, president of Koia, said: “Vertical integration allows us to control our destiny, quickly deliver on innovation, and react to market demand.”
Koia, which saw units sold rise from 3m in 2018 to 20m last year, said it was presently producing 2m bottles per month. The move into the 48,000sq foot Anaheim facility will support a production increase four-fold, up to 8m bottles a month.
The new site will also enable Koia to expand its NPD efforts and produce more seasonal flavours, it added.
Writing on LinkedIn, CEO and co-founder Christopher Hunter said the decision to move towards a vertical integration model had come from Woolard two years ago.
“At the time, this was a contrarian view,“ he wrote. “Stay “asset light” and focus on sales and marketing, was the common strategy that I, among others, agreed with. We were wrong.“
The protein drink brand was founded in 2014 and turned over $85m last year. It distributes to 25,000 stores across the US, including Whole Foods and Walmart. Its beverage range consists of ready-to-drink protein shakes and smoothies that are free from dairy, soy and gluten.
Last month, plant-based drinks company Oatly struck a production deal with Canada-based Ya YA Foods Corporation. Unlike Koia, the alternative-milk producer is seeking to move to an asset-light model in a bid to cut costs.
In November 2022, the group announced it was to axe an undisclosed number of jobs to save up to up to US$25m.
