Food Venture Financing News - Weekly Issue No. 55
In This Issue:
- Restaurant Revitalization Fund Inches Towards Launch
- SBA Releases Updated PPP Data
- Food Venture Financing Trends
- CPG Corporate Venture and Private Equity Funds
- Links to Relevant Content and Events
- DWT Projects & Partners
Restaurant Revitalization Fund Inches Towards Launch
- The SBA has yet to open the $28.6 billion Restaurant Revitalization Fund, but the program launch is expected soon.
- The SBA has released a Program Guide and sample application.
- Once launched, the SBA will accept applications from all eligible participants, but during an initial 21-day period will only process and fund applications from priority groups.
- Priority groups include small business concerns that are at least 51% owned by women, veterans. or those that are socially and economically disadvantaged (see Program Guide for more information).
- After this initial 21-day period, the SBA will process applications from all eligible participants until funds are exhausted.
SBA Releases Updated PPP Data
- The SBA's latest report on the Paycheck Protection Program can be found here.
- To date, SBA has approved over 5 million loans for an aggregate $248 billion dollars in 2021 (with 10 million loans and $770 billion loaned since inception).
- The overall average loan size to date in 2021 is $48,000, reflecting the program's recent focus on supporting small businesses.
Food Venture Financing Trends
- A recent report by the Consumer Brands Association indicates that CPG sales grew by $131 billion (9.4%) in 2020 as compared to the prior year. The report states that the CPG industry has outpaced the overall economy regarding job recovery by increasing CPG employment levels to 98% of pre-pandemic levels in October 2020.
- Large food and beverage companies such as Nestlé and Coca-Cola have signaled product price increases for next year to combat increasing inflation.
- Food and beverage companies are using upcycled barley straw for beer cartons and molded pulp rings for soda cans to develop sustainable packaging to cut carbon emission in the supply chain.
- The 21st edition of the McCormick Flavor Forecast includes flavors in the categories of plant-based foods, global flavors, underwater flavors, and Ayurvedic supplements.
CPG Corporate Venture and Private Equity Funds
This week's featured corporate venture and private equity Tate & Lyle Ventures.
- Tate & Lyle Ventures is a corporate venture arm of Tate & Lyle that seeks to invest in companies operating in the food sciences and technologies, with a specific interest in specialty food ingredients. The firm was established in 2006 and is based in London. It operates two funds, which are managed externally by Circadia Ventures LLP.
- The firm invests in the agri-tech, food tech, robotics, big data, and life sciences sectors.
- Portfolio companies include:
- Changing Health
- Evolve Biosystems
- Tate & Lyle Ventures looks for companies with defensible technologies, clear growth plans, and ambitious management teams building aggressive high-growth businesses.
Links to Relevant Content and Events
- RipeLocker Raises $5 Million for Its Low Atmosphere Approach to Extending Food Freshness
- Bushel Bags $47 Million Series C Funding as It Scales Up & Eyes New Fintech Offering
- Brewing Eggs: AB Inbev Venture Arm to Help Clara Foods Scale Up Animal-Free Protein
- Plant-Based Meat Maker Hungry Planet Raises $25 Million
- Plant-Based Sales Grow to $7 Billion
- Leading AgTech Company AppHarvest Reports Progress on Sustainability and Social Impact Goals to Feed the Future on Earth Day
- AgTech Turns to Public Benefit Corporations to Pursue Environmental, Social, and Corporate Governance (ESG) Goals
- Cell-Cultured Milk: Tech Fantasy or a Liquid Goldmine? BioMilk Goes Public
- How the CPG Industry Delivered in 2020
- Nestlé Warns of Price Increases, Against ‘Excessive’ Growth Expectations After Best Quarter In Decade
- Coca-Cola Co. Weighs Price Increases as Part of ‘Holistic’ Inflation Management to Offset Rising Commodity Costs
- 8 Sustainable Packaging Innovations For Food And Beverages
- McCormick® Flavor Forecast® 21st Edition Reveals Global Trends Driving the Tastes of Tomorrow
- Hungry Planet® Announces Oversubscribed Series A Financing Round to Build Capacity for Breakthrough Plant-Based Meat Range
The Rise of Transparency in the Food Supply Chain
Tuesday, April 27 at 8:00 a.m. PT
Join FoodBytes! Global Head Anne Greven in a conversation with FoodBytes! Pitch member CGC Ventures and FoodBytes! alumni Bushel. They will discuss transparency in the supply chain and how digitization and traceability can help us usher in a new era of resilience.
Food Edge Virtual Summit 2021
May 4 & 6, 2021
With Day 1 dedicated to food science and innovation and Day 2 focused on sales and marketing, join us to:
- Stay updated on emerging opportunities in plant-based
- Learn how to capitalize on the alternative protein wave
- Gain insights on sustainable business practices
- Explore consumer trends and new product attributes
- Efficiently navigate the new retail landscape
- Set strategies for brand growth in an omnichannel world
- Glean investor insights to support your funding journey
Get tickets here
Naturally Bay Area's 2021 Quick Bites Series
Category Review Trends With Top Buyers
Wednesday, May 5, 12:00 - 12:45 p.m. PT
Hear from leading Bay Area category buyers on how their review processes, timing, and criteria have shifted during and coming out of COVID.
They'll discuss the trends they're seeing, preferred marketing support tactics, and how to set yourself up for success with each retailer.
- Sarah Gordon: Senior Buyer, Whole Foods
- Patrick Wyman: Local Forager, Whole Foods
- Thuy Nguyen: Category Manager, Good Eggs
- Mirian Welch: NorCal Category Manager, Safeway
- Jen Berliner: Moderator, Naturally Bay Area & General Manager, Moonshot Snacks
Food Funded 2021 JEDI
Wednesday, May 12, 10 a.m. - 2 p.m. PT
There's more urgency and opportunity for racial equity out there, and past Food Investor Fairs have catalyzed investments for BIPOC food entrepreneurs. Slow Money and J.E.D.I Collaborative invite you to join them for:
- Entrepreneur Lab: Changemakers and experienced practitioners speaking the truth about breakthrough.
- Food Investor Showcase:
- Bay Area Food Investor Fair: Forum for investors to meet BIPOC food entrepreneurs and see pre-screened investment opportunities.
- Virtual Tastings With Real Food and Small Group Exchanges: Engage your palate. Attendees will receive a Smorgasbox with samples from presenting food makers (while supplies last). Talk with the entrepreneurs about their food and their business.
Expo West Virtual - J.E.D.I Collaborative
Wednesday, May 26, 9 a.m. - 12 p.m. PT
J.E.D.I Collaborative will have programming at Natural Products Expo West Virtual on May 26th, 2021. The sessions will include a keynote by Van Jones and an unveiling of the next phase of J.E.D.I Collaborative.
Don't forget to register! Natural Products Expo Virtual is FREE to qualified industry members. Your registration will give you access to all of the virtual events for 2021. You can see the full list of programs here.
The FoodBytes! Pitch competition is now accepting applications from food tech, agtech and CPG innovators. This year, it's focused on three innovation areas that are shaped by their 2021 Pitch Members: sustainable supply chains, improved resource management, and next frontier of nutrition.
To learn more about this year's program and the members involved, check out their press release and details in Food Business News, and if you're a startup or you know one – get those applications in via the link below before Sunday, May 16, 2021.
DWT Projects & Partners
Project W x Farm to Label's Emerging Food Brand Lab: DWT is excited to announce that Project W is bringing its signature programming to female founders in the food and beverage sector through our first Emerging Food Brands Lab. Developed in collaboration with DWT's Food + Beverage practice, this multi-week program has been crafted to help female founders take their brand to the next level through workshops dedicated to scaling production, optimizing distribution networks, and raising capital. If you know any female founded branded food companies that would be a good fit, encourage them to apply here by May 7th!
Davis Wright Tremaine is proud to partner with OSC2 as a founding member of J.E.D.I. Collaborative. We are committed to creating a more equitable, diverse, and inclusive future in the food and beverage businesses we serve. See our statement here.
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.