Food Venture Financing News - Weekly Issue No. 50
In This Issue:
- Possible Extension to PPP Deadline
- Employers Must Take Action on COBRA Subsidy
- Food Venture Financing Trends
- Links to Relevant Content and Events
Possible Extension to PPP Deadline
- The current deadline to submit an application for the current round of the Paycheck Protection Program is March 31.
- However, last week the House of Representatives voted overwhelmingly (415-3) to extend the PPP deadline to May 31.
- The bill has moved to the Senate and appears to have bipartisan support. Republican senators have introduced their own version of the bill.
- If Congress cannot agree to a single version, the PPP may expire before lawmakers can approve an extension.
Employers Must Take Action on COBRA Subsidy
- The American Rescue Plan Act signed by President Biden includes a 100% COBRA subsidy to eligible individuals from April 1, 2021, through September 30, 2021.
- Eligible individuals pay nothing, and employers receive a tax credit through quarterly payroll tax returns.
- Employers subject to COBRA must act soon to compile lists of eligible individuals and comply with notice requirements to inform those eligible of the right to receive the subsidy – by May 31, 2021.
- Please see our DWT Alert on the COBRA Subsidy for more information.
Food Venture Financing Trends
- 2020 was a robust year for capital investments in the alternative protein industry. The Good Food Institute stated that a record $3.1 billion was invested in the alternative protein industry last year, the highest annual investment in the industry to date.
- M&A activity in the food and beverage sector increased significantly in Q4 2020. The overall value of deals in Q4 2020 were twice the value of deals in the beginning of 2020.
- Private equity firms are increasing their acquisition activity in the food and beverage sector. Lindsay Goldberg, a private equity firm, announced last week that it will acquire Aryzta North America, a frozen baked goods manufacturer, for $850 million.
- Food and beverage M&A transactional activity is expected to increase as the year progresses. Strategic buyers have cash on hand and are looking to acquire innovative brands to address consumer demand.
- Chobani announced that it is broadening its partnership with PepsiCo to expand its retail distribution to convenience stores, colleges and universities in the Northeast United States to increase its growth prior to its IPO.
Links to Relevant Content and Events
- Investment in Alternative Proteins Reaches Record $3.1 Billion
- Foodtech Exits Continue to Lag, But There Is Cause for Optimism
- Eden Green Technology Nabs $12 Million for Its Vertical Farm-Greenhouse Combo
- Hydroponics Startup Babylon Micro-Farms Raises $3 Million Seed Capital for US Expansion
- Online Grocery Weee! Raises $315 Million Series D Round
- NYC Grocer That Delivers in 15 Minutes or Less Raises $15 Million to Expand
- Cell-Based Meat-Tech 3D Makes US IPO
- Three Startups Setting Out to Transform the Food System
- Indoor Agtech: An Evolving Landscape of 1,300+ Startups
- ARYZTA AG Agrees Disposal of Its North American Business for USD850 Million
- Chobani to Broaden Retail Reach Through Partnership With PepsiCo
- Food Tech News: Electrolyte Beer and Food Waste Jet Fuel
- How the COVID-19 Pandemic Has Changed Investing in Food
Naturally Bay Area: Women in CPG Community Celebration
Panel Discussion & Networking Session
Wednesday, March 24 (4:00 – 5:00 pm PT)
In honor of Women's History Month, we're gathering together for a special networking event to celebrate women in the Natural Products industry.
Panel discussion on career development, mentorship, aligning brand and personal values, and more with guests:
- Ritu Mathur: Senior Dir. of Marketing, Clif Bar & Company
- Shannon Toyos: CMO, Kite Hill
- Jen Berliner: Host, Naturally Bay Area & General Manager, Moonshot Snacks
Rotating breakout rooms led by dynamic female CPG leaders, allowing for more intimate discussion and networking.
Hirshberg Entrepreneurship Institute Webinars
Yes We Can: Perspectives and Strategies for a Successful 2021
These webinars will provide practical perspectives and real world advice for navigating financing, cashflow, retail, distributor, and eComm challenges in the year ahead presented by seasoned experts with opportunities for you to get your questions answered by the presenters.
March 24 – Navigating Costco & Thrive
Speakers: Jeremy Smith, President and Founder, Launchpad Second speaker TBD
Register at hirshberginstitute.com
Please check out DWT's newly re-launched Startup Law Blog
At DWT, we are proud to have one of the largest Food & Beverage legal practices in the country, with over 40 attorneys representing food innovators, entrepreneurs, and investors at every level of the food chain, from Farm to Label.
Please contact our Food and Beverage team if we can assist you in any way in these unprecedented times.
The facts, laws, and regulations regarding COVID-19 are developing rapidly. Since the date of publication, there may be new or additional information not referenced in this advisory. Please consult with your legal counsel for guidance.
DWT will continue to provide up-to-date insights and virtual events regarding COVID-19 concerns. Our most recent insights, as well as information about recorded and upcoming virtual events, are available at www.dwt.com/COVID-19.