Jon Sebastiani’s company expands its equity financing reach; hires CEO for Smashmallow

Sonoma Brands CEO Jon Sebastiani announced last week the company has received $60 million in new funding to continue its strategy of investing in high-growth consumer brands.

“We’re seeking to partner with visionary and imaginative entrepreneurs to usher in a new wave of bold, breakthrough products and to establish the Sonoma region as a focal point for consumer products entrepreneurship,” he said in the press release announcing the funding.

One recent example provided by Sebastiani, 47, is Sonoma Brands’ recent minority stake in Guayaki, the market leader in yerba mate beverages, based in Sebastopol.

Sebastiani also announced last week that Sonoma Brands’ first major incubated brand, SmashMallow, has been spun off as an independent company, based in Sonoma, and that David Lacy has been hired as its new CEO. Lacy previously served as VP of Finance at Plum Inc., CFO at Krave Pure Foods, and most recently as CFO at Habit Inc. He also announced that SmashMallow will be distributed nationwide in all Target stores, beginning in February 2018.

The Sonoma Brands business model is to seek out disruptive, high-growth consumer brands, and either provide an incubation space in Sonoma or a minority stake investment that can be used to take their business to the next level, explained Sebastiani this week in his company’s new office space on West Napa Street.

“With our expertise and financing, we believe we can guide emerging brands towards breakout growth,” he explained. “Our aim is to work hand-in-hand with groundbreaking brands that will excite consumers and fill gaps within the market.”

In addition to funding, Sebastiani’s plan is for his Sonoma Brands team to add value with in-house brand building expertise and the ability to leverage existing industry relationships.

In its first round of investments last year, Sonoma Brands made an outside minority investment in Dang Foods, maker of the all-natural coconut chips; brought to market SmashMallow’s premium snackable marshmallows; and launched Zupa Noma ready-to-sip chilled superfood soups under the company’s incubator arm.

The second round of investments that is now underway, $60 million in total, includes $10 million earmarked to expand the growth of SmashMallow.

Sebastiani launched Sonoma Brands in 2016 as his next endeavor following the $220 million acquisition of the Krave jerky brand by The Hershey Company.

Contact Lorna at businessnews@sonomanews.com.