• NCN News for March 29, 2011

GrubHub Raises $20 Million
GrubHub (Chicago) has raised a $20 million series D funding round, led by DAG Ventures and Benchmark Capital. This follows an $11 million Series C investment by Benchmark last November. Founded in 2004 by two software engineers, Matt Maloney and Mike Evans, GrubHub provides online ordering and delivery from a network of 13,000 restaurants in 13 cities. Consumers can also access menus, reviews and coupons on line. There is no charge for the service, but restaurants that are fully engaged with the site reportedly pay an average 15.5 percent commission on orders. According to TechCrunch.com, GrubHub sent $85 million in orders to restaurants in 2010 and generated revenues of $8.5 million, which it aims to double in 2011. Maloney indicated GrubHub could be on an IPO track. (The online restaurant reservation service OpenTable Inc. raised $31.4 million from its 2009 IPO. OpenTable revenues were $99 million in 2010, up 44%.) GrubHub raised Series A funding in 2007 through Amicus Capital, Origin Ventures and several angel investors. Series B funding of $2 million was co-led in March 2009 by Origin Ventures and Leo Capital. The company has raised $34 million to date.

Avrio Ventures Invests $2 Million in Biopharmacopae
Biopharmacopae Design International Inc. (Quebec City), a company specializing in the discovery and development of science-based, plant-derived ingredients and products for the nutraceutical and cosmeceutical industries, has closed a $2 million private financing round with Canadian venture capital firm Avrio Ventures. This is the second round from Avrio. Funds will contribute to the commercialization of Biopharmacopae's flagship product RIDOVIR Cold, a natural product for coughs and colds. "Biopharmacopae holds a portfolio of extremely promising products with significant market potential, and their recent studies on the antiviral activity of… RIDOVIR Cold, are very encouraging,” said Aki Georgacacos, a partner at Avrio Ventures. Biopharmacopae has a collection of more than 15,000 plant extracts and an exclusive technology platform, eXcelerate, which it says can rapidly screen thousands of plant extracts, highlighting their specific beneficial effects on human health. The Avrio portfolio includes Origin BioMed, Ascenta, and NCN presenting companies Manitoba Harvest and Advitech (Botaneco).

General Mills in Talks to Buy 51% of Yoplait
The French dairy cooperative Sodiaal and private equity firm PAI partners have granted an exclusivity period to General Mills for the acquisition of PAI’s 50% stake in Yoplait. In the proposed transaction, PAI partners will sell its 50% stake in Yoplait, but Sodiaal does not plan to sell its share. The deal values the yogurt maker at about $2.25 billion. General Mills’ binding offer makes a distinction between the brand and the operating company. The operating company would be 51% owned by General Mills, and Sodiaal and GM would jointly own the Yoplait brand worldwide. General Mills was granted the Yoplait brand licence in the U.S. in 1977. Since then, Yoplait has achieved close to a 35% market share of the U.S. yogurt market. General Mills’ long term strategic plan aims to strengthen Yoplait’s position in Western Europe and accelerate its international expansion, particularly in emerging markets. The competitive bidding process for Yoplait began in late 2010 and included China's Bright Foods, Switzerland's Nestlé SA, Mexico's Grupo Lala, Axa Private Equity and French dairy company Groupe Lactalis. French regulators are following the transaction closely.

Tongue Cleaner Orabrush Attracts $2.5 Million Funding Round
Orabrush (Provo, Utah), maker of a patented, FDA-approved tongue cleaner, has closed a $2.5 million funding round from True Ventures (Palo Alto, Calif.) and 2X Consumer Products Growth Partners (Chicago). Funds will be used to expand the company's retail presence. Orabrush has sold more than one million tongue cleaners over the Internet and is currently available in 50 retailers in five countries. Orabrush is generating consumer buzz via its humorous video diary, with over 30 million YouTube channel views. "The videos have already created huge awareness of our product online and are also helping get our foot in the door with retailers,” said Jeffrey Harmon, chief marketing officer of Orabrush. Dr. Robert Wagstaff created the Orabrush in 2000, using a combination of ultra-soft, pointed bristles and a scraper to remove bacteria. 2X announced a previous investment in Orabrush in October 2010.

AquaHydrate Receives $10 Million from Yucaipa
AquaHydrate (Colton, Calif.), which uses a proprietary process to make purified, alkaline water with electrolytes and trace minerals, has received a $10 million investment from an affiliate of The Yucaipa Companies LLC. Capital will be used to strengthen AquaHydrate’s balance sheet and provide financing for an accelerated national roll-out. The Fisher family and Emerald Partners are early stage investors in AquaHydrate. Actor Mark Wahlberg serves on the board and is a foundation shareholder. The company is in discussions with a number of major strategic investors to secure a long-term partner for distribution and marketing.

LVMH Acquires Botanicals Skincare Company
LVMH Moët Hennessy Louis Vuitton, the global luxury products group, has acquired Ole Henriksen (Los Angeles), a botanical skincare company. Terms of the transaction were not disclosed. The Ole Henriksen brand is sold at Sephora (the group’s prestige beauty retailer) and in spas in 22 countries. In the perfumes and cosmetics sector, the group has partnered with brands such as Benefit, Make Up For Ever, and Fresh.