The Craftory Secret to a Successful Exit
How to achieve over five times growth in three and a half years
This week we exited Edgard and Cooper to General Mills, and it’s a major deal for all parties involved. To give you some measure of scale: Last year (2023) Edgard and Cooper’s estimated retail sales were in excess of €100M. This represents over five times growth during the three and a half years they were part of the Craftory portfolio.
During this time Edgard and Cooper’s positive impact was also significant: They reduced their carbon emissions by 70% in 2022 alone, prevented tens of millions of pieces of plastic packaging falling into landfill, and their animal welfare foundation helped over 176k cats and dogs in need globally. All of that is above and beyond their core mission to revolutionize nutritional quality in the pet care category by taking a zero tolerance approach to nutrient poor, hyper-processed ingredients.
There can be no doubt Edgard and Cooper is an archetypal Craftory investment, and proves the power of our investment strategy. Regardless of the challenges of our current economic environment, it seems clear to me that doing good and doing well are mutually compatible, and represent the new normal.
How we got there
I: Research and discovery
We initially spotted Edgard and Cooper on a graphic design blog dishing out praise for their visual identity, but we could see more - this was a strong, consistent and distinctive brand that was telling a category redefining story about the pet-owner relationship. Pet owners were now pet parents, something more caring and kindred was happening, and that extended to the quality of what the pets were eating. This brand vision resonated with our take on the zeitgeist and is as relevant today as it was then.
We immediately included Edgard and Cooper in a major piece of primary category research we were conducting. It rapidly became apparent that Edgard and Cooper was a standout business. We reached out, met, and clicked instantly.
II: Two significant rounds of finance
You can see from our website that we took part in two investment rounds, leading their series C - thereby signalling our resolute confidence in the Edgard and Cooper team, their cause, and the core business metrics. We were determined to clear the growth runway for them, and that’s exactly what we did.
III: Consistent intellectual capital
The collaborative relationship between our two organizations has been immensely productive. The cause alignment and shared understanding of sustainable CPG anchored that relationship from the start.
Ongoing economic guidance, primary consumer research, brand development, marketing strategy and performance analysis are areas I’d highlight as having been particularly rich. This is an essential part of the Craftory difference. We are uncommonly collaborative, zero BS, and collegiate with our investments.
Looking to the future
Edgard and Cooper entered our portfolio at an AAR of €20M and exited at over €100M. Product market fit, organisational professionalisation, consumer targeting and brand positioning are all primed for growth of the next magnitude. This is the all too needed growth leap we exist to facilitate.
General Mills is a partner that can help next-level Edgard and Cooper’s business by taking them global - this means even more consumers will get access to Edgard and Cooper’s excellent products, and share in the pet health and sustainability benefits the brand brings. This is the rapid scale change that comes with responsible consumer investing, and the reason Ernesto Schmitt and I founded the Craftory.
To conclude: Even though we’re saying farewell to Edgard and Cooper our passion for petcare remains strong - so here’s my shoutout to the entrepreneurs: If your goal is to transform the category status quo for the better then say hello to the Craftory. Our radical, progressive approach will guide you towards greater success faster. Just ask Edgard and Cooper.
In the meantime take a look at our investment criteria.
Elio Leoni Sceti is co-founder at The Craftory, the progressive investment fund on a $550M mission to back the world's boldest consumer brands.
