BACKGROUND
Brothers Ari and Andrew Cohen realized that they were no longer able to eat dairy products as adults. They loved homemade nut milks, and it struck them - here was something naturally creamy and tasty, low in saturated fat and packed with nutrients. Why not use them to create an ice cream alternative?
They developed an organic cashew ice cream from natural ingredients, with no additives or preservatives, and introduced the product to market under the Mr. Dewie’s brand. A larger food company offered to incubate the company and finance initial growth, and six flavors were introduced into stores in the Western US.
CHALLENGES
This parent company changed strategic priorities, and offered the brothers an opportunity to purchase the company. Valuing and structuring the terms of a purchase, negotiating and financing the ongoing operations presented significant challenges.
ACTIONS
Lee Lambert, SBDC Director, advised the brothers regarding various aspects of the purchase of the assets of the company and financing of the new company. Tara Lynn Gray, SBDC advisor, worked with the company on their crowdfunding campaign to launch the new operation.
RESULTS
The brothers successfully closed the purchase of the assets of the company, raised investor financing and conducted a successful crowdfunding campaign. Manufacturing was relocated and opened in San Leandro, and their first retail outlet was opened in Albany in March of 2016.
