Weld North Takes Controlling Stake in Juice Chain

The juice cleanse is all the rage, even in investment circles.

The investment firm Weld North is buying a controlling stake in Organic Avenue, a juice and raw foods purveyor that is a darling of celebrities and the health conscious in New York.

Weld North, which is backed by the giant private equity firm Kohlberg Kravis Roberts, hope to turn Organic Avenue into the cornerstone of a national chain promoting the notion that food plays an integral role in health and wellness, said Jonathan N. Grayer, Weld North's founder.

“Eating well and thinking of food as a medicine is something I've been worki ng on myself over the last five years, some times more successfully than others,” Mr. Grayer said. “I think we all want to feel better and be active longer, and eating differently is a big part of how we can do that.”

The terms of the deal were not disclosed.

Weld North has ambitious plans for Organic Avenue, which has eight stores in the New York area. Along with moving into other cities like Los Angeles and Miami, the investment firm is looking to gain distribution in grocery stores and other retail outlets. It also intends to add cooked vegan foods to its menu of raw options. “We have the resources,” Mr. Grayer said.

The juice business is booming, as health-conscious consumers look for beyond soda. Sales of Naked and Odwalla juices, owned respectively by PepsiCo and Coca-Cola, have been strong. Starbucks is working to develop Evolution Fresh, the juice bar business it bought in late 2011.

Juice cleanses, particularly as an antidote to holiday binging, have become popular in spite of skepticism among some medical doctors. Organic Avenue sells a new year cleansing regimen of juices and all-natural skincare for $60 to $65 a day, depending on the duration.

Mr. Grayer made a name for himself turning around the Kaplan test preparation business and transforming it into a behemoth. The group now generates more than half of the Washington Post Company's revenue.

After the deal, Organic Avenue will begin a search for a new chief executive to replace Doug Evans. Mr. Evans will join Weld North to help it find additional investments in the health and wellness arena, some of which might be melded with Organic Avenue.

“The portability of our brand is pretty broad,” Mr. Grayer said, noting the ubiquity of the company's bright orange bags in upscale neighborhoods of Manhattan. “It can support a wide variety of wholesome products that help people build better lives.”

He was introduced to Organic Avenue by a colleague, Todd Zipper, “a passionate vegan,” who persuaded him to try a juice cleanse before Weld North made a minority investment in the business last summer. “I'm not a vegan, but I aspire to a healthy lifestyle,” Mr. Grayer said. “Organic Avenue wants to serve vegan food and juice to committed vegans but also to customers who just want to eat and drink vegan food just like they eat Chinese food.”