By Abigail Summerville
NEW YORK, Aug 6 (Reuters) - Functional beverage brand Javvy, known for its protein coffee powders, is exploring a sale that could value it at around $1 billion, as demand for protein-rich products grows among consumers, especially those taking GLP-1 weight-loss drugs, according to people familiar with the matter.
The company, which makes caffeinated protein powders and coffee concentrates in flavors including Dubai chocolate, banana bread and tiramisu, has hired investment bank
Houlihan Lokey for the sale process, which is at an early stage, the people said, requesting anonymity to discuss a private matter.
The South Carolina-based company generates nearly $300 million of annual revenue, they said.
Houlihan Lokey declined to comment. Javvy did not respond to a comment request.
Javvy's sale comes to market as food and beverage companies look to capitalize on rising demand for protein-rich and other functional products. Major food and beverage companies have been expanding their offerings in that category.
Coffee powerhouse Starbucks added protein lattes and protein cold foams to its menus last year, and this year rolled out ready-to-drink protein coffee beverages online and to grocery and convenience stores.
Each serving of Javvy's mix-with-water powder delivers 10 grams of protein, prebiotics for gut health and medium-chain triglycerides that the company says support brain health. Javvy also sells protein refreshers, coffee syrups and creamers.
Founded in 2020 by entrepreneurs Justin Kemperman and Brandon Monaghan, Javvy launched in Walmart stores last month. Its products are also sold at Target, Sprouts Farmers Market and other supermarket and pharmacy chains.
Venture capital firms including Amberstone Ventures, Platinum Mile Ventures and Selva Ventures have invested in Javvy.
The company said last month that it had reached approximately one in every 44 U.S. households, with one Javvy Protein Coffee sold every seven to eight seconds.
One bag of Javvy's protein coffee, which serves 20, sells for $34.95, according to its website.
(Reporting by Abigail Summerville in New York; Editing by Echo Wang and Lisa Shumaker)
