Sunflower raises $35 million financing
Sunday, 13 December 2009
COLORADO, Dec 12 (Commodity Online): Sunflower Farmers Market, a Colorado-based natural foods grocery chain, has raised $35 million in new financing.
The funding is comprised of a $30 million five-year loan package with Fifth Third Bank and a $5 million equity investment from existing financial partner, Pacific Corporate Group.
Despite conservative lending practices in 2009, Sunflower has garnered confidence from the investment community.
The newly generated capital underscores investor confidence in the growing demand for value-priced natural foods.
Sunflower's mission is to provide high quality food at low prices. This is especially relevant in an era where both the economy and health are driving market forces. Consumers are increasingly aspiring to improve their diets without the high cost often associated with natural foods.
In a year of overall economic contraction, it is notable that Sunflower Farmers Market opened seven new stores across four states in 2009, and achieved a 50 per cent increase in sales over prior year. The $35 million financing will be used to add new stores within their existing geographical markets in Arizona, Colorado, New Mexico, Utah, Nevada, and in Texas (where it operates as Newflower Farmers Market). Sunflower management forecasts sustained growth through 2013, with more than 50 stores.
"We're very excited by our new partnership with Fifth Third Bank and our ongoing relationship with the Pacific Corporate Group," said Sunflower CEO Mike Gilliland.
The funding is comprised of a $30 million five-year loan package with Fifth Third Bank and a $5 million equity investment from existing financial partner, Pacific Corporate Group.
Despite conservative lending practices in 2009, Sunflower has garnered confidence from the investment community.
The newly generated capital underscores investor confidence in the growing demand for value-priced natural foods.
Sunflower's mission is to provide high quality food at low prices. This is especially relevant in an era where both the economy and health are driving market forces. Consumers are increasingly aspiring to improve their diets without the high cost often associated with natural foods.
In a year of overall economic contraction, it is notable that Sunflower Farmers Market opened seven new stores across four states in 2009, and achieved a 50 per cent increase in sales over prior year. The $35 million financing will be used to add new stores within their existing geographical markets in Arizona, Colorado, New Mexico, Utah, Nevada, and in Texas (where it operates as Newflower Farmers Market). Sunflower management forecasts sustained growth through 2013, with more than 50 stores.
"We're very excited by our new partnership with Fifth Third Bank and our ongoing relationship with the Pacific Corporate Group," said Sunflower CEO Mike Gilliland.