Food Venture Financing News - Weekly Issue No. 71
In This Issue:
- Food Venture Financing Trends
- CPG Corporate Venture and Private Equity Funds
- Links to Relevant Content and Events
Food Venture Financing Trends
- The New York Times reported that startups gained significant traction during the pandemic with a 24% increase in the formation of startup business last year. Start-up activity has continued to accelerate this year, with significant growth in the food-service sector.
- Apeel, a food system tech company that developed an edible food coating resulting in longer shelf life for produce, announced that it raised $250 million in its Series E round. The company is now valued at over $2 billion.
- Target's food and beverage business reported double-digit growth in the second quarter of 2021. The drive in growth is primarily due to strong sales associated with Target's private label food and beverage brand and Target's new curbside pickup program.
- Major brands have stepped up their sustainability goals to significantly reduce plastic usage and waste by 2025 in order to meet the goals set by the U.S. Plastics Pact and meet the sustainability demands of consumers and environmentalists.
CPG Corporate Venture and Private Equity Funds
This week's featured corporate venture and private equity fund is Union Kitchen.
- Union Kitchen is a food business accelerator based in Washington, D.C. It started as a cookie business named "Blind Dog Cafe" in 2012 (the Blind Dog Cookie is still served in its stores), and evolved into an accelerator to help food businesses grow and succeed.
- Union Kitchen has worked with over 650 food and beverage businesses since 2012, including over 100 Accelerator members. These businesses have created over $350 million of revenue collectively, opened over 50 storefronts and manufacturing facilities, and created well over 1,000 jobs. Examples include:
- Revol Snax
- Caribe Juice
- Compass Coffee
- Mas Panadas
- Of the companies Union Kitchen supported, over 50% are woman and/or minority-owned. Union Kitchen's core values include:
- Service Comes First
- Build to Last
- Make Things People Want
- Insist on Excellence
- Sense of Belonging
- Growth Mindset
Links to Relevant Content and Events
- Apeel Raises $250 Million to Accelerate Its Fight Against Food Waste
- Cox Enterprises Acquires High-Tech Greenhouse Grower BrightFarms
- Trifecta Raises $20 Million
- Fast-Growing Organic Meal Company Trifecta Gets $20 Million in Investments
- Kainos Capital Acquires Muenster Milling
- AmplifiedAg Inc. Completes $40 Million in Capital Raise, Expanding Vertical Roots Indoor Farms Across the Southeast
- Harlan Bakeries Seeks to Scale With Deal for AmeriQual
- Former Essentia Investor Acquires Controlling Stake in Kombucha Brand Health-Ade
- Start-Up Boom in the Pandemic Is Growing Stronger
- Edible Food Coating Maker Apeel Gains Another $250M Investment; Value Hits $2B
- Target’s Enhanced Curbside Pickup, New Private Label Brand Help Drive Grocery Sales Up Double-Digits
- Progress Report: Brands Face Increasing Pressure on Recyclability Claims in 2021
EVENTS AND OPPORTUNITIES
Naturally Bay Area's 2021 Quick Bites Series:
Is Sampling Back?
How Emerging Brands Can Drive Awareness & Trial at Whole Foods
Wednesday, September 1, 12:00 - 12:45 p.m. PST
Just when it seemed demos were making a comeback, retailers are postponing the rollout of in-store sampling as a response to the ever-changing COVID environment. What does this mean for emerging brands?
Join this Quick Bites discussion led by Mary Tarczynski of Parabolic and representatives from shelf stable and perishable brands who are addressing these questions as they plan for Q4 and beyond.
Naturally Bay Area's 2021 Quick Bites Series:
CPG Corporate Venture Funds: How Big Food Invests in Emerging Brands
Wednesday, September 15, 12:00 - 12:45 p.m. PST
Hear how the venture investment arms of leading global food companies are supporting emerging food brands with investment capital and both strategic and operations resources.
Join this Quick Bites discussion moderated by Don Buder of Davis Wright Tremaine LLP with leaders of the venture arms of large food-focused CPG companies.
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.
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.