Custom Flavors Announces Partnership with Butterfly and Graham

SAN CLEMENTE, Calif.--(BUSINESS WIRE)--Custom Flavors, a developer and manufacturer of premium liquid and powdered flavor solutions, today announced a partnership with Butterfly Equity (“Butterfly”) and Graham Partners (“Graham”), private investment firms with deep expertise in the food & beverage sector.

Founded in 2000 and headquartered in San Clemente, California, Custom Flavors has built a strong reputation for innovation, technical expertise, and quality in the development of complex flavor systems for the most demanding applications. Custom Flavors’ formulation capabilities are purpose-built for higher-complexity segments within the flavors space, including functional foods, protein & nutrition bars, gummies & nutraceuticals, and better-for-you snacks. The Company will continue to be led by Alex Wendling, CEO, with support from co-founders Mike Wendling and Steve Bishop.

“What makes Custom special is our people. We’re a team of flavorists and food scientists who genuinely love solving hard problems,” said Alex Wendling, CEO of Custom Flavors. “This partnership gives us the resources to grow that team and keep raising the bar. It also means more investment in our facilities to unlock shorter lead times, expanded capacity, and the ability to serve customers coast to coast.”

Scott Nadison, President of Custom Flavors, added, "We are incredibly excited to partner with Butterfly Equity and Graham Partners. They bring deep experience and connections in the food sector and share our vision for Custom’s next phase of growth.”

Custom Flavors’ flavor systems are used in some of the most recognizable and fast-growing brands in North America. The Company’s strong modulation and masking capabilities – critical in applications that contain high protein, high fiber, or other functional ingredients with off-notes – have established its position as an innovation partner of choice for its customers.

With a newly opened, state-of-the-art facility in Concord, North Carolina, in addition to its primary San Clemente, California facility, Custom Flavors has established a bi-coastal manufacturing footprint that positions it well to serve customers at scale across the United States.

“Custom Flavors is an exceptional business and one we have followed closely for many years,” said Aaron Kirkbride, Partner at Butterfly. “Alex, Mike and Steve have built a platform with best-in-class technical capabilities, strong customer relationships, and a deep commitment to quality and service.”

"Demand for functional, better-for-you, and clean-label products is growing quickly, and those are exactly the applications where great flavor is hardest to get right,” said Andrew Snyder, Managing Partner and President at Graham. “Custom Flavors has built its reputation solving those challenges, and that puts the Company right where the market is heading. Graham is excited to partner with Butterfly and the Wendling family to support Custom's continued growth.”

In connection with the investment, Butterfly and Graham have created a flavor investment platform backing Custom alongside Target Flavors, a full-service flavor house serving the beverage, dairy, dairy alternatives, pharmaceutical and bakery industries, that Graham has partnered with since late 2025.

Butterfly and Graham were advised by Simpson Thacher & Bartlett LLP and Dechert LLP on legal matters and by Deloitte on financial matters. Hexagon Capital LLC acted as financial advisor to Custom Flavors, and TALG LTD acted as legal counsel.

About Custom Flavors
Headquartered in San Clemente, California, Custom Flavors is a developer and manufacturer of premium liquid and powdered sweet flavors serving the protein & nutrition, gummies & nutraceuticals, functional food & beverage, and better-for-you snack industries. Founded in 2000, Custom has built a reputation for delivering customized, high-complexity flavor solutions through deep technical expertise, a robust regulatory function, and an agile, customer-focused operating model. Custom’s newest facility in Concord, North Carolina, which opened in late 2025, significantly expands the Company’s production capacity and establishes a bi-coastal presence to serve customers nationally.

About Target Flavors
Headquartered in Newport News, Virginia, Target Flavors is a full-service flavor house serving CPG brands and co-manufacturers across the beverage, dairy, dairy alternatives, pharmaceutical, and bakery industries. Since its founding in 1981, Target Flavors has built a reputation for delivering customized, high-quality flavor solutions through deep technical expertise and operational agility. With a focus on natural flavors, Target Flavors believes it is well-positioned to benefit from evolving consumer preferences.

About Butterfly
Butterfly is a private equity firm specializing exclusively in the $28 trillion food sector. Since its founding in 2016, the firm has invested in a diverse portfolio of category-leading businesses representing approximately $9 billion in enterprise value including ePac Flexible Packaging, The Duckhorn Portfolio, Rise Baking Company, Actus Nutrition, Chosen Foods, Pete and Gerry’s, Mary Ruth Organics, Orgain, Generous Brands (a portfolio consisting of Health-Ade, Evolution Fresh, and Bolthouse Farms), Bolthouse Fresh Foods and QDOBA, among others. Butterfly is headquartered in Los Angeles with an additional office in New York City. For more information, please visit https://www.bfly.com/.

About Graham Partners
Graham Partners is a private investment firm principally focused on investing in technology-driven companies in advanced manufacturing and technology-enabled services that are spurring innovation, resulting in product substitutions, raw materials conversions, and disruptions to traditional end markets. Since Graham began managing third-party capital over 25 years ago, the firm has closed over 160 acquisitions and investments, and currently manages approximately $5 billion of assets. Based in suburban Philadelphia, the Firm has access to extensive operating resources and industrial expertise and is a member of The Graham Group, an alliance of independent operating businesses, investment firms and philanthropic entities, which all share in the common legacy of entrepreneur Donald Graham. For additional information about Graham, please visit its website at www.grahampartners.net.