Active nutrition brand Stars + Honey has announced a minority growth equity investment from premier consumer-focused investment firm VMG Partners.
The capital injection is designated to fund the brand's omnichannel expansion, accelerate product development, and finance the construction of a new 60,000-square-foot manufacturing facility. The upcoming production site is expected to establish the operational infrastructure required to scale the brand's distribution nationally.
As part of the transaction, McConnell Smith, general partner at VMG Partners, will join the Stars + Honey board of directors. Financial terms of the minority stake have not been disclosed.
The investment follows a period of rapid growth for the business. Launched in 2023, Stars + Honey recorded a 300% increase in sales last year and is projected to reach approximately $50 million in revenue in fiscal year 2026 as it prepares to enter national retail channels.
Vertical Integration and Manufacturing Infrastructure
The capital allocation toward a dedicated 60,000-square-foot facility highlights a broader focus on vertical integration within the active nutrition sector.
While many emerging functional food brands rely on third-party co-manufacturers, Stars + Honey has prioritised in-house production and supply chain control. According to company leadership, managing formulation and manufacturing internally has allowed the firm to maintain strict oversight of ingredient quality, accelerate product innovation timelines, and protect its proprietary recipes.
According to Daniel Rainey, founder and Chief Executive Officer of Stars + Honey, establishing end-to-end control over the production process was necessary to achieve the desired quality and texture profiles for the brand's product range. He noted that partnering with VMG Partners will provide the operational resources and category expertise needed to scale this vertically integrated model to a national level.
McConnell Smith, general partner at VMG Partners, stated that the investment firm’s historical experience in the nutrition bar category allowed it to quickly recognise the commercial viability of the Stars + Honey model. He highlighted that the brand has successfully addressed an underserved consumer segment by prioritising both clean-label ingredients and premium taste profiles.
Formulation and Nutritional Profile
Stars + Honey has developed a portfolio of 18 distinct, dessert-inspired collagen protein bars. The product formulations are engineered to deliver functional health benefits while remaining free from common allergens and synthetic additives.
The core product specifications include:
🥩 Bovine Collagen Peptides – Formulated with Type I and Type III grass-fed bovine collagen peptides to support skin elasticity, hair strength, and joint comfort.
🌱 Clean Label Standards – Manufactured without gluten, dairy, soy, sugar alcohols, or seed oils, with each bar containing fewer than 200 calories.
☕ Espresso Vanilla Cinnamon – A chef-inspired coffee flavour profile combining rich espresso with warm cinnamon and vanilla.
🧇 Cherry Chocolate Waffle Cone – A sweet, dessert-style profile featuring tart cherry and rich chocolate inclusions.
The brand's portfolio currently contains 18 unique variants, with plans to introduce additional flavours and format extensions ahead of its upcoming national retail rollout.
Investment Trends in Active Nutrition
The transaction highlights sustained investor confidence in the functional snacking and active nutrition sectors.
As consumer interest in metabolic health, joint support, and clean-label protein continues to rise, brand operators are increasingly moving away from synthetic ingredients and artificial sweeteners. Within this shifting market, brands that combine high nutritional metrics with premium, chef-driven flavour profiles are capturing market share from legacy operators.
By partnering with VMG Partners, which has spent two decades investing in the nutrition bar space, Stars + Honey is positioned to navigate the logistical challenges of national physical retail distribution while maintaining the integrity of its in-house manufacturing process.
