Fort Lee-based Creatd on June 7 completed the purchase of an additional 56% of the membership interests in Plant Camp LLC, through its wholly-owned subsidiary Creatd Partners, bringing the company’s stake to 89% and making it the majority owner.
Creatd Partners will control Plant Camp’s operations going forward. Additionally, Creatd will recognize all Plant Camp revenue in the company’s consolidated financial statements. Management currently estimates approximately $1 million in annual revenues from this newly acquired business, according to a press release.
Plant Camp was first brought to market when its co-founders, two consumer product goods industry executives, identified the high-growth niche of healthy, kid-friendly foods, and it became the inaugural partner of Creatd’s corporate venture division, Creatd Partners, which invests in early-stage direct-to-consumer brands. The company provided Plant Camp with nominal seed capital and helped construct the brand’s e-commerce infrastructure. It also used its Vocal creator platform to generate a profile of Plant Camp’s target audience.
“It is rare to see ideas become realities,” commented Creatd Chief Executive Officer Jeremy Frommer in a prepared statement. “Plant Camp’s success thus far is due to the vision and creativity of its founders, Angela Hein and Dr. Heidi Brown. Without their commitment and hard work, we surely could not have brought this product to market.”
Plant Camp had its soft launch at the end of the fourth quarter of 2020, and entered the pre-order phase for its first product, a nutrient-rich mac and cheese for kids. Over the next months, Plant Camp implemented supply chain and general operations that would lay the foundation for its future scale.
Plant Camp officially entered into the fulfillment phase in January 2021 and has sold nearly half of its initial 15,000-unit order entirely through its e-commerce site, and expects to sell out of its remaining inventory before the end of the second quarter.
At the start of the second quarter 2021, Rich Vinchesi, who was recently named the lead acquisition strategist for Creatd Partners, initiated discussions with Plant Camp’s original founders regarding purchasing a majority stake, bringing on a new executive team, and implementing a strategic plan intended to increase revenue two- to three-fold within 12 months.
Frommer stated, “Plant Camp is our inaugural ‘Creatd Partner,’ and it took only a matter of months for us to prove its viability sufficient to warrant taking a more significant ownership interest. In addition to other potential Creatd Partners opportunities that are in development, we have recently announced publicly our plans to introduce new e-commerce offerings, including by leveraging our extensive library of archival content. Being able to now consolidate Plant Camp revenues on our balance sheet represents the first manifestation of Creatd’s newly reconstituted e-commerce pillar.”
Looking ahead to the third quarter 2021, the company expects to continue accelerating sales. In the fourth quarter, the Company expects to begin expanding Plant Camp’s offerings by introducing one or more additional SKUs to its product line, including a nutrient-rich, kid-friendly pancake mix.