How investing in organic food and sustainable consumer businesses made a difference in 2018

We take a long-term investment approach, not driven by exits, and support a diversity of companies operating across the value chain.

Evergreen approach

Triodos Organic Growth Fund provides long-term capital to a diversified portfolio of leading organic food and sustainable consumer companies across Europe, based on an evergreen fund model. Private equity often has a short-term focus on profit maximisation due to the limited duration of such a fund. By creating an evergreen fund, Triodos Organic Growth Fund can remain invested in companies without the pressure of an exit, thereby supporting them to achieve their long-term environmental, social and financial goals. This approach safeguards the companies’ independence, entrepreneurship and mission.

Across the value chain

Triodos Organic Growth Fund looks to catalyse and support the value chain for organic food and sustainable consumer products. A chain in which (agricultural) production, distribution and consumption strikes a balance between the earth’s natural resources and the needs of society. Through its investments in sourcing, product development, production, wholesaling and retailing, the fund is active throughout the value chain from (natural) resources to final products, and from farmers to the end consumer.

Impact objectives →

Activities →

Indicators

Environment

Preserve soil fertility and
biodiversity and promote
animal welfare
Increase food and
resource efficiency

Socio-economic

Promote fair and transparent
business practices
Grow the share of
sustainable consumption

Sector development

Catalyse growth of the sector
for sustainable consumption
and production
Demonstrate and promote
viability of long-term mission-
aligned private equity

Providing capital

Unlocking long-term private
capital to leading European
organic food and sustainable
consumer businesses to
increase the market share of
sustainable consumer products

Enabling portfolio companies

Building meaningful and long-
term relationships, enabling
portfolio companies to realise
their ambitions
Facilitating knowledge exchange
Giving access to our extensive
network

Inspiring sector

Showcasing exemplary
entrepreneurs in their journey
for sustainability, growth and
succession
Advocating an evergreen
private equity approach

Results per company*

% of organic offering
Use of renewable energy sources
Number of households reached
% of biodegradable packaging
Interviews and case studies

Portfolio results

Total turnover of portfolio
companies reflecting consumers’ access
to sustainable products
Cost of goods sold reflecting
portfolio companies’ impact on
global value chains
Number of jobs reflecting
portfolio companies’ contribution
to 'green economy' jobs
Invested capital by Triodos Organic
Growth Fund

*Indicators differ per portfolio company

These numbers reflect the entire fund portfolio. You will find more impact details in the case studies below.

277M total turnover in EUR

Total turnover

The total turnover generated by the portfolio companies amounts to EUR 277 million. This is an indicator for the access that consumers have to sustainable consumer goods.

170M cost of goods sold in EUR

Cost of goods sold

The cost of goods sold by the portfolio companies amount to EUR 170 million. This amount reflects the portfolio companies’ impact on global value chains.

1,344 green economy jobs

Green economy jobs

The number of people directly employed by the portfolio companies, reflecting the jobs created in the sustainable consumption and production sector.

54.6M mission-aligned long-term capital in EUR

Mission-aligned long-term capital

The net assets of Triodos Organic Growth Fund as per the end of 2018, of which 68% has been invested in seven European frontrunners in the organic food and sustainable consumer products sectors.

As an investor for impact we understand finance to be transformational, and define it as directing money so that it benefits people and the environment over the long term.

Triodos Organic Growth Fund intends to play a pivotal role in the much-needed transition towards sustainable consumption and production. It provides long-term mission-aligned private capital to leading European organic food and sustainable consumer businesses that have a clear commitment to increasing consumer awareness and the market share of sustainable consumer products.

Capital provider, enabler and inspirer
Our role and efforts in this complex web of change can only be captured in quantitative metrics and indicators to a limited extent. We believe that impact investing moves beyond providing capital and requires a strong intention and a holistic and long-term approach. We build long-term relationships with our portfolio companies and other stakeholders and play an enabler and inspirer role. With this approach, Triodos differentiates itself from other capital providers.

To explain our vision and the extent to which we’re delivering on it means sharing stories that illustrate the whole picture. These stories provide the essential context and background for our activities. They illustrate our ‘theory of change’.

Impact measurement
The organic food and sustainable consumer sectors are very diverse: from organic food and beverages and personal care to textiles and household items. This diversity is also reflected in the portfolio of the Triodos Organic Growth Fund. The portfolio companies are active in different parts of the value chain, from a product developer with a business-to-business approach to a retailer with a business-to-consumer approach. Due to this diversity, reporting on impact at an aggregated fund level is challenging and therefore limited to a small range of indicators reflecting the entire fund portfolio. Reporting mainly takes place at company level data is collected on an annual basis, in close cooperation with the portfolio companies.

Part of the whole story
The quantitative indicators are a part of the whole story. This means that indicators such as annual turnover, costs of goods sold and percentage organic offering are not goals in themselves; they are pieces of information that are part of the broader picture. They give a sense of the impact we achieve through the capital that we have invested. For that reason, we don’t set specific goals for indicators or compare them to last year figures, because a higher number doesn’t necessarily mean more impact. For instance, financing a relatively small player in the organic food sector which drives innovative and ground-breaking approaches to increase market share could mean more impact than financing a larger company in a mature market.

This publication aims to assess and communicate the impact of the Triodos Organic Growth Fund investments in a transparent and meaningful way.

Triodos Organic Growth Fund’s geographical focus is on northern and western Europe. See where the fund’s current investments make a difference. Click on each to find out more.

Read the case studies to find out more of each of the seven portfolio companies and discover how they contribute to the growth of organic food and sustainable consumer products.

Beendhi: Green cuisine that’s tasty, healthy, convenient and affordable

Based on Ayurvedic principles and inspired by Indian cuisine, French food company Beendhi helps people to make healthy food choices.

Ecoffee Cup: Activating re-use for everyone

The cup stops here, according to Ecoffee Cup founders Ali and David McLagan. They are passionate about cutting out waste in the on-the-go drinks market. We talk to them about how they are trying to eradicate single-use cups and encourage more responsible consumerism.

Contact a member of our investment team.

Want to know more about Triodos Organic Growth Fund?

Visit the fund page

Accelerating the food transition

Why do we invest in organic food and sustainable products?

How do we invest for impact in these sectors?

Impact framework

Portfolio results

Total turnover

Cost of goods sold

Green economy jobs

Mission-aligned long-term capital

Investments in European frontrunners

European frontrunners

Beendhi in France

Ecoffee Cup in the United Kingdom

DO-IT in the Netherlands

Naturfrisk in Denmark

Aarstiderne in Denmark

Beendhi: Green cuisine that’s tasty, healthy, convenient and affordable

Ecoffee Cup: Activating re-use for everyone

Are you an European frontrunner in organic food or sustainable consumer goods and looking for funding?

Katie Brokman

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