Gabrielle "Ellie" Rubenstein is co-founder and CEO of the private equity firm Manna Tree. Manna Tree makes growth equity investments in companies that improve human health through nutrition. Ellie works with global family offices and research partners to connect Manna Tree's mission of improving human health to capital while ensuring the firm is an innovator in a rapidly evolving investment category.
Russ Prince: Where does Manna Tree exist in the world of private equity?
Gabrielle Rubenstein: Manna Tree’s founding partners—Ross Iverson, Brent Drever and I—believe that improvements in human health, well-being and longevity are attainable through innovation in food and nutrition, which is a somewhat different strategy than most PE companies operate from. Manna Tree wants to be at the forefront of solving human health issues through better nutrition.
We invest in companies that are at the convergence of secular trends accelerating the transformation of the food sector. Manna Tree identifies and invests in category leaders in food production and consumer products that are winning in this transformation and provides growth equity, which is supportive of the founders’ journey coupled with practical expertise to assist management teams. We believe we bring the most value when we partner with growth-stage companies who are category leaders, at the intersection of food production and consumer products.
One of our most recent investments, Urban Remedy is a great example of our approach in action. The company delivers plant-based, organic ready-to-eat meals, snacks and cold-pressed juices that are all certified organic, non-GMO Project Verified, and gluten-free. Urban Remedy operates 270 grocery kiosks in 21 states across the U.S., empowering consumers to conveniently eat ultra-fresh and clean.
Another company we’ve recently taken a stake in is Cheetah, a tech-enabled platform designed to allow independent restaurants to order wholesale food and supplies for next-day delivery, which has been a lifesaver for many restaurants since the Covid pandemic hit.
Prince: What new technologies and nutritious food trends can investors and consumers expect to see in 2022?
Rubenstein: At Manna Tree, we believe consumers are becoming more aware of what they eat, where those foods come from, and how they are produced. We believe that over the next few years, environmental awareness and the increased interest in novel ingredients and natural additives will continue to change how people look at food and connect with the companies whose products they consume.
We understand that large-scale societal change is a gradual process, not something that happens overnight. We enter into investing with growth-stage companies aware that just because a product can help address a serious health issue doesn’t mean that masses of consumers are ready to embrace it. We carefully assess the timing of product introduction and the level of required consumer education when we consider making an investment.
We expect innovation in food products and supply chain logistics to be key market forces in 2022 and beyond. More companies are creating new products such as plant-based foods or using natural rather than artificial additives. We continue to see meat alternatives at record numbers, but the sell-through data is still too early to determine which categories will prove most popular.
As investors, we are ever mindful of human health and the consumers’ interest in both improving their health and avoiding what’s making them sick. For example, in response to consumer demand for more healthy options, companies have leaned on ingredient technologies to improve processed foods by reducing sugar and increasing fiber. This is in addition to several other functional ingredients and products that are starting to flood the market.
Among the investment trends, we’ve been following is indoor agriculture, which raised a record amount of capital last year. We think it’s important to highlight how practical this conversion will be for the supply chain and investments moving forward.
Prince: Manna Tree has 100% female managing directors. What is the value of getting women on boards and how do leaders find these women?
Rubenstein: Yes, Manna Tree’s three managing directors are women, and they are also working mothers, but those attributes are secondary. What’s important to note is that they hold those positions because of their backgrounds, abilities and experience.
Women are still the primary decision-makers regarding food choices in most households. Above the known benefits of gender diversity, we believe this is a core reason to ensure that perspective is well represented on the boards of our portfolio companies.
It’s not difficult to find women leaders. Women leaders are out there, and companies who can’t find them need to be willing to discard outdated, gender-based stereotypes and choose the best-qualified people.
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