Chobani’s recent acquisition of Daily Harvest is making waves in the frozen food industry, but the deal’s biggest surprise might be the potential tax windfall for the company’s earliest shareholders and founders. While the headlines focus on product synergy and Chobani’s expansion into ready-to-make meals, there’s an equally compelling story playing out behind the scenes, one centered around Qualified Small Business Stock (QSBS) and the rare opportunity it creates for tax-free gains.

Founded in 2015, Daily Harvest built a strong direct-to-consumer brand, selling frozen, single-serve meals and smoothies online and through major retailers like Target and Kroger. Over the years, the company raised approximately $120 million, attracting high-profile investors such as Gwyneth Paltrow and Serena Williams. It operated as a classic high-growth startup, scaling quickly and gaining national distribution. For Chobani, Daily Harvest represents the perfect opportunity to broaden its product portfolio and bring healthy, convenient foods to even more households.

But for Daily Harvest’s founders, employees, and early backers, the financial impact of this exit may be much greater than a headline fundraise or valuation. If structured correctly from the outset, their shares may qualify as QSBS under U.S. tax law—a little-known provision that can allow each eligible shareholder to exclude up to $10 million in capital gains from federal taxes, provided they held their shares for at least five years. The requirements for QSBS eligibility are straightforward but important. The company must have been a U.S. C-Corporation when the stock was issued, with adjusted gross assets not exceeding $50 million at the time of issuance. The shares themselves must have been acquired directly from the company, rather than through secondary transactions, and the business must be actively engaged in a qualified trade—product-based businesses like Daily Harvest typically qualify, while law, consulting, finance, and certain other service sectors do not.

QSBS is often associated with the tech industry, especially among Silicon Valley investors, but the benefit extends far beyond software startups. Daily Harvest is a textbook example of how a consumer brand, structured and capitalized like a classic venture-backed business, can deliver this powerful tax outcome. If the early shareholders acquired their stock before Daily Harvest crossed the $50 million asset mark and simply held it for five years, the Chobani acquisition could mean millions in gains—tax free. Imagine a founder whose shares are now worth $15 million; under QSBS, the first $10 million is exempt from federal capital gains tax, resulting in a potential savings of over $2 million compared to a standard exit…And that’s even before rollovers or trust involvement, which could easily bring the tax bill to $0.

This isn’t just an isolated scenario. Many consumer, food, beverage, health, and direct-to-consumer brands that take on venture funding are set up in a way that makes QSBS eligibility possible. The tax benefits, though often underappreciated outside of the tech world, can be every bit as dramatic for brands like Daily Harvest. The key is meeting the asset, structure, and holding period requirements, and making sure shares are acquired directly from the company during its qualifying phase.

The Chobani-Daily Harvest deal should serve as a wake-up call for founders and early investors in all industries to check whether their shares might qualify for QSBS, and to be proactive in planning. With the right legal and tax planning, and a little patience, it’s possible to turn a successful business exit into a truly tax-free windfall—one that’s just as sweet as the company’s best-selling smoothies.

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You could benefit from a QSBS rollover if:

You recently sold QSBS before the 5 year minimum hold period
You recently sold QSBS that you held for 5 years, but your gain exceeds $10M
You’re considering an exit in the next 1-4 years and want to think ahead about tax planning
Are an angel investor seeking flexible QSBS opportunities to help defer gains

The Vint Retail Partnership Program can be a solution for QSBS gain holders in need of a flexible, low-risk, and relatively liquid QSBS opportunity. Get in touch with our team today to learn how to partner with us and potentially save millions in gains tax from a stock sale.

Here are some of the questions we typically ask when having a first meeting with potential partners:

Did you recently sell or are you holding Qualified Small Business Stock?
When did you sell your stock?
Was this your first liquidity event?
Are you a founder, early employee, outside investor/angel, etc?
Are you certain that your stock met the Active Trade/Business and other requirements under Section 1202? (Outside of holding period requirements)
What is your intended rollover amount?
How long did you hold your initial stock?

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