Reel Paper: Leading the Tree-Free Paper Revolution

In a world where 50,000 trees are cut down each day to meet global household paper needs, Reel Paper is a tree-free, plastic-free household paper brand with a goal of saving 8 million trees by 2030 utilizing bamboo as a tree substitute for major paper products such as toilet paper, paper towels, and more. 

Branch Venture Group is thrilled to be a part of Reel Paper’s journey as the team continues to drive meaningful impact in the sustainability and consumer-product space. Here are three key reasons why we believe that Reel Paper will revolutionize the paper industry and this pursuit is a worthwhile investment opportunity. 

Reason One: Uncompromising Quality at a Consumer-Friendly Price Point

Consumers will no longer need to compromise on quality and price in the name of sustainability. Reel Paper’s proprietary toilet paper manufacturing process allows their bamboo-based paper to be manufactured with the same softness, comfort, absorbency and thickness as traditional tree-based toilet paper. They have won awards for their products, such as the Nexty Award at ExpoWest and Good Housekeeping’s Best Sustainable Innovation Award, and their products are priced comparably with traditional paper brands such as Charmin and Cottonelle. 

 As such, the company is able to connect and generate strong brand loyalty with younger millennial families and the next generation of consumers through the quality, affordability, as well as sustainability of its products. At Branch Venture Group, we were impressed with the consumer engagement and conversation around Reel Paper products.

Reason Two: Significant Retail Market Traction

Not only do consumers love Reel Paper, but their retail partners do as well! Reel Paper has seen considerable market traction over the past years in retail with its toilet paper products – scaling to thousands of retail stores nationally across major retail channels. Their retail partners include Target, Harris Teeter, Gelson’s, and many more conventional and natural/specialty grocery stores. As a result of the great product and brand, Reel Paper is able to help retail partners drive growth in net new customer sales in the category. 

Here at Branch Venture Group, we are encouraged by the traction that Reel Paper has seen not only DTC but especially in retail, and we are confident in their growth trajectory in 2024 and beyond. 

Reason Three: Strong Management Team with Significant CPG Experience

Branch Venture Group has been consistently impressed by the strength of the Reel Paper management team and company advisors, all of whom have significant experience leading and scaling consumer-oriented startups, and also have worked across several billion dollar brands including P&G, Kraft Heinz, Hippeas, and Meyer’s Clean Day. Company executives are customer-obsessed, astute, agile, and have demonstrated energy and passion for building a sustainable, impactful consumer brand. 

We are confident that this management team will be the ones to execute on their ambitious growth strategy. We are excited at the opportunity to work with the team at Reel Paper, and welcome them to the Branch Venture Group family. If you’re interested in learning more, we’re happy to connect you with the team. And, if you’re curious to learn more about Branch Venture Group and what we do, please reference our Investor page or reach out to info@branchventuregroup.com.

TrewUp: Revolutionizing Deduction Management for Growing Brands

In today's competitive business landscape, efficient deduction management is crucial for the success of consumer goods startups. By automating the retrieval, interpretation, and categorization of deductions, TrewUp empowers companies with easily accessible, actionable cost data – freeing up resources and allowing brands to focus on delighting customers.

Branch Venture Group is excited to support TrewUp's journey as they revolutionize the way businesses manage deductions, improve cash flow, and streamline operations in the consumer goods sector. Here are three key reasons why we’re confident they’ll transform deduction management.

Reason One: Dedicated Focus on an Industry Pain Point

Deduction management has traditionally been an unglamorous task due to its arduous and contentious nature and is overshadowed by its sister: trade promotion management, a front-office task which often carries promises of a faster ROI. Thus, CPG services companies tend to offer deduction management services as part of a larger bundle.

TrewUp offers a tailored solution specifically designed to address the challenges of managing deductions. This focused approach pays off immensely; in our conversations with customers, users sing praises of TrewUp’s clear dedication to cracking the industry’s toughest problem. Move over, trade promotion – TrewUp is changing the narrative on what’s now considered a quick and easy ROI. 

Reason Two: Leaders with a Unique Perspective 

TrewUp boasts a team of exceptional leaders who bring deep industry experience and a strong understanding of the natural food distribution landscape. Kyle Barnholdt, co-founder and CEO, experienced the pain of deduction management firsthand as a General Manager of a growing CPG startup. Scott Cousins, co-founder and CTO, served as the CIO of KeHE, a major natural foods distributor, for 10 years.  

Their two-sided point of view, with the brand-led perspective as well as distributor-led, gives them a unique understanding of the industry dynamics and challenges. 

Reason Three: Strong Market Positioning in a Growing Segment

Branch Venture Group believes that the food industry is ripe for innovation. Startup barriers to entry are lowering, creating an environment ripe for innovation and disruption and leveling the playing field against large, established players with significant resources and distribution networks. 

TrewUp provides startups with a cost-effective and scalable solution that was previously only accessible to large, well-funded companies. By democratizing deduction management, TrewUp is poised to challenge the status quo in the CPG industry.

Want to learn more about TrewUp?

We are thrilled to invest in TrewUp, as we believe in their unique value proposition, strong leadership, and the potential to capitalize on the evolving CPG landscape. We believe in the company's dedication to innovation as well as their customer-centric approach. If you’re interested in learning more, we’re happy to connect you with the team. And, if you’re curious to learn more about Branch Venture Group and what we do, please reference our Investor page or reach out to info@branchventuregroup.com.

Pulp Pantry: Reducing food waste through a delicious chip

Introducing Pulp Pantry, the trailblazers in the snack industry who are shaking up the traditional chip aisle with their pulp chips. These innovative chips are not only incredibly delicious but also packed with fiber and made from upcycled ingredients. Pulp Pantry upcycles what’s usually thrown away from vegetable processors and transforms them into tasty snacks.

What sets Pulp Pantry apart is its unwavering commitment to producing healthy and environmentally friendly snacks on the market. By utilizing upcycled fruits and vegetables, they not only reduce food waste but also contribute to the sustainable food movement, resonating with consumers who value eco-conscious choices.

We are thrilled to announce our investment in Pulp Pantry's seed round, captivated by their innovative approach and commitment to disrupting veggie chips and offering a great alternative to vegetable-based snacking. Here are the three key reasons why Pulp Pantry has caught our attention:

Reason One: Early Traction and Unique Offerings

Pulp Pantry has gained significant traction early on, exceeding traditional revenue milestones and achieving 2x year-over-year growth.  Currently available in 600 retail stores on the West Coast primarily, we expect Pulp Pantry to soon reach every 190 million US consumers who are seeking healthier snacking options. 

The use of low-cost upcycled ingredients in their Pulp Chips allows Pulp Pantry to generate a favorable product margin, which sets them apart in the market. This margin not only ensures profitability but also empowers the company to allocate resources towards strategic initiatives that fuel brand expansion. By investing in trade spend and promotion, Pulp Pantry can increase brand visibility and awareness, capturing the attention of a wider consumer base.

Reason Two: A Commitment to Sustainability

Pulp Pantry's commitment to sustainability is evident in their innovative product, Pulp Chips. These chips are not only delicious but also contain an impressive 30-40% upcycled ingredients, earning them the prestigious Certified Upcycled status. By incorporating these upcycled ingredients, Pulp Pantry has successfully upcycled over 200,000 pounds of materials to date, making a significant positive impact on the environment.

Through their upcycling efforts, Pulp Pantry has managed to save approximately 38 gallons of water and 1 kilogram of CO2 emissions per pound of ingredient upcycled. This commitment to sustainability not only reduces waste but also contributes to the conservation of vital resources. Pulp Pantry's dedication to creating delicious snacks while actively minimizing their environmental footprint sets a remarkable example for the industry.

Reason Three: A Resilient, Dedicated, and Mission-Driven Founder

Pulp Pantry's story is one of ingenuity and a commitment to tackling food waste while promoting healthier eating habits. Founder Kaitlin Mogentale's journey began when she witnessed the vast amount of fresh pulp being discarded after juicing a carrot. This realization sparked her passion to rescue this valuable resource from going to waste. Kaitlin took the pulp home and transformed it into her first-ever juice pulp carrot cookies, igniting her mission to find a widespread solution to address food waste and nourish humanity.

Want to learn more about Pulp Pantry?

We’re inspired by the work Kaitlin and the team are doing at Pulp Pantry. We’re excited for this opportunity to contribute to positive change in the way we eat and reduce food waste.

If you’re interested in learning more, reach out and we’re happy to connect you with the Pulp Pantry team. And, if you’re curious to learn more about Branch Venture Group and what we do, please reference our Investor page or reach out to info@branchventuregroup.com.

Superfood Jam - upcycled, clean ingredients and better for you - Chia Smash

Peanut butter has a new best friend. Meet Chia Smash, the jams that seek to disrupt the outdated and traditional jam, jellies, and preservatives aisle. Their products aim is to be the healthiest on the shelf, giving nutrition-conscious customers an alternative to sugar-packed fruit spreads. 

Founded in 2019 by Anna Peck and Steve Ford, Chia Smash’s jellies are made with delicious superfoods while keeping a clean and simple ingredient line. Yes, that means no preservatives, pectin or added sugar. Filling its jars instead are upcycled fruit, or “imperfect” fruit that would otherwise go to waste. 

Because Chia Smash provides the jam aisle with a fresh better-for-you and better-for-the-environment product, we are excited to announce our investment in their seed round. Chia Smash caught our eye for three main reasons:

Caption: Chia Smash is not your grandmother’s jam. It’s bold, unapologetic, and proud of its claims.

Reason One: Chia Smash is an innovator in a sleepy, sugar-packed category

Chia Smash is not afraid to be different in a space that has seen little innovation in 30 years. The packaging alone is a stark contrast from the usual incumbents; traditional jams have a bland white label with meek cursive font. In contrast, Chia Smash’s product labels are boldly colorful with big unapologetic lettering.   

Caption: Chia Smash is the only brand to be certifiably “up-cycled”

Even more exciting than the packaging is the recipe itself. While conventional jams have 8-10 grams of added sugar, Chia Smash uniquely claims zero grams of added sugars, naturally sweetening the product with dates. With 74% of US consumers looking to avoid sugar, these products seek to fill the increasing demand for better-for-you products in every corner of the kitchen cabinet.

Additionally, Chia Smash is the only brand in the category to be certifiably upcycled. Because it seeks to utilize “ugly” fruit, the company aims to reduce food waste while being cost-efficient. And with consumer interest in up-cycled food growing 147% in the past year, Chia Smash is poised in the market for success.

Reason Two: Strong Retail Partnerships and Performance

Chia Smash is an omnichannel company, selling through DTC and retailers. Currently, Chia Smash is sold in 1,200 retail stores including Whole Foods, Kroger, and Sprouts, with plans to grow to 2,000 by end of year. 

The company has also found success selling on Amazon. With minimal marketing efforts, Chia Smash has earned a place in the top 25 in the category. Consumers rave about the no-added sugar and its use in yogurts, on toast, and with peanut butter. Part of the seed raise will be used to amplify its offerings on Amazon and continue its growth trajectory. 

In addition to Amazon and its own website, you can also find Chia Smash on other DTC sites, such as Thrive, Imperfect Foods, and FreshDirect.

Reason Three: Great founding team

Anna and Steve are a dynamic duo handling the entire Chia Smash operations. Anna, the CEO and Founder, started Chia Smash in her kitchen and is passionate about healthy eating. As a former Division 1 athlete, Anna is acutely aware of the larger better-for-you trends sweeping the US. Previously, Anna worked in product innovation at Blue Apron, where she met Steve, the COO and Co-Founder. Steve is an industrial engineer by trade with previous experience in Amazon. A highly experienced operator, Steve helped secure a contract with a leading co-manufacturer in the jam space. Chia Smash’s advisory board includes executives from Unilever and Yasso, as well as executives from the hospitality industry – a key area should the team decide to expand into foodservice.

Want to Learn More About Chia Smash?

We’re thrilled to support Chia Smash’s next phase of growth as they seek to expand their presence in retail and online. We fully expect Chia Smash to become a household name soon! To learn more about the company check out their website and buy a jar of their delicious jam.

If you’re interested in learning more about Branch Ventures Group and what we do, please reference our Investor page or reach out to info@branchventuregroup.com.

Pest Management and Control: Why We Invested in Extrasense Technologies' $550k Pre-Seed Round

Credit + Copywright: Dusko - stock.adobe.com

The world’s population is set to grow to 8.5 billion people by 2030 and one resounding question is how we are going to feed everyone. While food supply chain issues have become glaringly apparent since the onset of the pandemic, pests represent another major challenge threatening food safety and availability for the masses. 

Pests destroy 30% of all food grown from agriculture to processing every year. Pest management in food and other manufacturing facilities has been largely carried out through fumigation when the problem reaches a certain threshold. However, this is expensive, bad for the environment, and the standards for food safety have increased. Food and other high-hygiene facilities need a way to prevent pest infestations before they get out of control. 

That said, we are thrilled to announce our investment in Extrasense Technologies, a leading image recognition platform for the pest control industry. Extransense's software platform solves current pest control problems through A.I.-powered automated pest identification, remote monitoring, and root cause analysis that drive early corrective actions. Founded in 2019 by Oliver Sanchez and Greg Santos, Extrasense is aiming to transform the $20 billion pest management industry by utilizing a SaaS platform that records and analyzes pest information from sensors, mobile apps, and technician reports to provide prescriptive and predictive data on pests. Extrasense will use this financing round to complete pilot tests in collaboration with strategic partners and expand their product feature set.

Why did Branch Venture Group Invest in Extrasense Technologies?

Extrasense stood out to the Branch Venture Group team as an exciting investment for three key reasons:

Reason 1: Unique Product Offering with Strong IP and First Mover Advantage

The Extrasense offering is unlike anything currently available on the market, leading to strong initial interest from strategic partners and corporate customers to further develop their core technology. Extrasense’s technology is unique because it uses artificial intelligence to automatically identify pests. The system solves technical challenges such as the ability to identify small insects in images, no pest images or unknown pests, and the AI is combined with other field data to improve overall accuracy. With this technology, the Extrasense system can achieve over 98% accuracy identifying multiple insect species with field quality images.

Extrasense’s technology allows food manufacturers to keep their operation safe from pests with real time monitoring by empowering employees to report pest sightings through their AI powered app; connect and collect data from any other smart traps on the factory floor; and identify and get alerts for pest species ahead of time so their technicians are prepared. Customers can diagnose issues and pest activity with real time visualizations, analyze historical data and prepare for external audits and prioritize corrective actions.

Reason 2: Strong Regulatory Tailwinds are Increasing the Need for New Digital Based Pest Control Options

Extrasense’s solution was built for large scale production and manufacturing facilities with high hygiene and pest control standards. Food processing facilities are required by the FDA and USDA to have stringent monitoring of pests. Health and medical facilities have low thresholds for pest infestations and pesticide use is limited. Finally indoor farms need real time information on pests and crop health. Failures in pest management ultimately present a very high and asymmetric business risk: the cost of a plant shut down or food recalls for pest infestation far exceeds the cost of pest management. 

The Food Safety Modernization Act (FSMA) signed into law in 2011 and finalized by the FDA in 2015 overhauled regulations regarding food production and safety. Failure to comply can ultimately lead to health risks such as disease outbreak and financial risks such as reputational damage, loss of market share and competitive advantage. Extrasense helps facilities maintain compliance by identifying current problems and preventing future infestations from occurring.

Extrasense PestID Location Dashboard

Reason 3: Strong Management Team and Advisory Board

Oliver and Greg are both experienced entrepreneurs with prior startup and deep tech expertise. Oliver completed his MBA at Boston University and previously was the CEO of Plug Cambridge, a boutique coworking innovation space, which was acquired by Rent24. Greg completed his JD at Boston University and has spent time as an engaged advisor and attorney to high-tech and emerging companies. Oliver and Greg are complimented by a strong entomology team with insect taxonomy and identification experience.

Oliver and Greg have also assembled a team of advisors with expertise in business, entomology, and artificial intelligence. Extrasense has attracted a well-known lead investor, L’Attitude Ventures, a purpose-led venture capital firm that invests in early stage, US Latino led and owned companies with high growth opportunities capturable through technology.

Want to Learn More about Extrasense?

At Branch Venture Group we’re always looking to connect our portfolio companies with strategic partners. If you are interested in connecting with the Extrasense team, please reach out to info@branchventuregroup.com. To learn more, check out the company website and Instagram pages and extending a huge congratulations to Oliver, Greg, and the team on their successful fundraise. We look forward to supporting their continued success!

Alternative Dairy: Why We Invested in UFO’s Seed Round

As you walk down the refrigerated section in the grocery store these days, you will notice the growth in plant-based milk brands. The category has gained widespread recognition with the IPO of Oatly and shows no signs of stopping. With increasing consumer demand for clean ingredients, low sugar, and better-for-you and better for the environment there is certainly room for new brands to successfully enter the market. We believe UFO, Udder Free Only, a Los Angeles based hemp milk company will do just that. 

Longtime friends Drew Schwartz and Daniel Art started UFO to reduce consumers’ environmental footprint and support healthier lives.

Founded in July 2019 by Daniel Art and Drew Schwartz, UFO utilizes a unique blend of USDA organic hemp, oats, and chia seeds to create a clean label, eco-friendly, and plant-based dairy alternative. With a delicious product that replicates the taste, texture, and nutritional value of dairy milk, a growing plant-based milk market, and incredible founders we knew UFO was a fit for Branch Venture Group. As the website states, their plant-based dairy alternatives are out of this world. We couldn’t agree more!

Reason 1 – A Delicious Product and Strong Initial Sales Traction

UFO is currently sold in ~75 stores with plans to grow to 600+ by the end of 2021 and 1,500+ by mid-2022. The company has experienced strong consumer demand from e-grocers including Imperfect Foods and traditional retailers like Whole Foods. UFO’s Unsweetened, Vanilla, Chocolate, and Banana hemp milks are available in 16oz and 32oz sizes and the products are packed with all the nutrients and great taste consumers look for in a milk substitute. All products are organic and the nutritional profile includes omega 3’s and 6’s, all 9 fatty acids, and 12 grams of protein. The milks contain half the number of calories and half the sugar content of the leading oat milk brand, and, unlike other leading dairy alternatives, they are nut, dairy, soy, gum, preservative, and gluten free. 

Reason 2 – Growth in Plant-Based Milk and Recent Deregulation of Hemp

Consumer demand for alternative dairy products and plant-based milk has grown tremendously in recent years alongside increasing health and environmental concerns associated with traditional dairy products. The current market for alternative dairy products is around $3.8 billion with around $2.5 billion in plant-based milk sales. In 2020, plant-based milk grew by 20% in the US and Global Market Insights suggests plant-based milk will continue to grow at an 11% CAGR globally through 2026.

Flavors include Unsweetened, Vanilla, Chocolate, and Banana -- all free of added oils, gums, and stabilizers. The Chocolate and Banana flavors are both sweetened with real organic Bananas.

Although the plant-based milk category has seen many new entrants over the last 5 years, UFO stands out as the only branded company producing fresh (versus shelf stable) alternative dairy milks with hemp as the lead ingredient. Additionally, data shows that soy and almond milk are losing market share to alternative plant-based milk product competitors. Due to recent deregulation, the hemp milk market is still nascent compared to other plant-based milk products. However, the global hemp milk market is forecasted to reach around $454MM by 2024, growing at a CAGR of 16%. As the category and hemp subcategory continues to grow, UFO is well positioned to capture this growth.

Reason 3 – A Small but Mighty Team and Plans for Team Expansion

Hand delivering hemp milk orders to customers in LA.

Currently a team of two, Daniel and Drew have impressively done it all from sales and marketing to product formulation and manufacturing. Embodying true entrepreneurial spirits, Daniel and Drew are resourceful, hardworking, and data-driven. Faced with the uncertainty of COVID the team even dressed in a full space suit to hand deliver orders not only bringing joy to the streets of LA but maintaining and growing the company’s customer base. With this recent round of funding the team plans to hire new operations and sales team members to support UFO’s rapid growth. We know that with Drew and Daniel at the lead, UFO will accomplish great things and face any challenge with a creative twist.

Want to Learn More About UFO?

We’re thrilled to support UFO’s next phase of growth and are eagerly awaiting their expansion to the East Coast. For those on the West Coast, make sure to take a look at the company's store locator to see if UFO is available where you shop. To learn more about UFO check out their website and follow their adventures on Instagram. If you’re interested in learning more about Branch Ventures Group and what we do please reference our Investor page or reach out to info@branchventuregroup.com.

Ready-to-Drink (‘RTD’) Champagne Cocktails: Why We Invested in Ohza’s $4MM Series A Financing Round

Gearing up for a summer of celebrations with friends, family, and loved ones? Look no further, Ohza has you covered for your go-to drink for the summer (and year-round of course!).

Founder and CEO, Ryan Ayotte holding the Classic Mimosa in Cape Cod where the idea for Ohza first originated.

Founded in 2019 by Ryan Ayotte, Ohza currently sells Mimosas and Bellini canned cocktails made from quality sparkling wine and real juice. The products have no added sugar or preservatives and have a similar calorie count to a hard seltzer but with the bold flavor of a traditional cocktail. Ohza is one of few brands in the space that meets growing consumer demand for transparent labeling, a clear value proposition, and full flavor. The product has an elevated, premium look and feel but at an affordable price point. Ultimately, Ohza’s goal is to be the RTD cocktail category leader in all aspects of taste, price, and brand loyalty. Their mission “everyday calls for a celebration” has broad mass appeal and can resonate with all consumers 21+.

 With $4MM in funding from lead investor CircleUp and participation from Ruttenberg Gordon Investments, Riverside Ventures, and individuals such as Elliot Grainge (founder of 10K Projects and Forbes 30 Under 30), Ohza plans to use the capital to support new partnerships with large distributors including Southern Glazer’s Wine & Spirits and Breakthru Beverage, as well as  invest in its DTC capabilities.

Among a multitude of additional reasons, Ohza stood out as a not-to-be-missed investment opportunity for the following key reasons.

Ohza comes in four flavors - Classic Mimosa, Mango Mimosa, Cranberry Mimosa, and Classic Bellini.

Reason 1: Huge Market Opportunity in the Better-for-You, RTD Alcohol Space with Little Competition in Mimosas & Bellinis

RTD cocktails have experienced significant growth in recent years; sales volume increased 57% in 2020 up from 43% percent in 2019 and tripling 2018’s 17% percent growth. Canned cocktails offer convenience, controlled ABV, and require no prep or cleanup. Covid-19 has also had an increase on the growth of RTD cocktails as consumers perceive the products as safer alternatives. Ohza has been an early mover with limited direct competitors in Mimosa and Bellini RTD and competitive pricing at $9.99 per 4-pack. Ultimately, with no signs of the growth in RTD slowing and industry research that shows mimosas are the #1 mixed drink of 21-45 year old women, Ohza is incredibly well positioned in the market for continued success.

Reason 2: Rapid Growth both in Retail and Online with Planned Expansion Through Key Distributors

After almost exactly 2 years since launch, Ohza has gained considerable market traction and strong repeat orders at this stage. The company ships directly to consumers in 42 states and is available in over 2,500 retailers, primarily in the Northeast. Recently, Ohza was ranked a top 4 canned cocktail company nationally by USA Today. Global alcohol e-commerce reached $5.6 billion in 2020 up from $3 billion in 2019, and International Wine & Spirit Research expects total alcohol e-commerce to exceed $40 billion by 2024. However, due to rules and regulations, only wine-based alcohol products with the proper permitting are allowed to be sold D2C with spirit and malt-based products reaching consumers via retail or alcohol e-commerce platforms such as Drizly which can ship legally in 15 states. As a wine based beverage, Ohza’s ability to ship DTC provides a unique advantage over its competitors. Ohza’s DTC capabilities and recent partnerships with Southern Glazer’s and Breakthru Beverage propel growth efforts and expand reach to additional consumers. 

Reason 3: Exceptional Team with Existing Investor Base of Brand Advocates

The Mimosa taste we all know and love but with 80% less sugar.

Ryan, a Boston-native, graduated magna cumme laude from Northeastern University and previously worked as a private equity associate at Bain Capital before founding Ohza. Described by investors and advisors as resourceful, disciplined, reactive and by one as the “best entrepreneur” they’ve worked with, Ryan’s character quickly stood out. Through his leadership, Ryan has attracted well-known investors including the Co-Founder of Tinder, and professional athletes Chandler Parsons and Kelley O’Hara. Additionally, he recently recruited two all-star sales team members, Matt Giese and Jeff Janisse with a combined nearly 45 years of industry experience.

Want to Learn More about Ohza?

We couldn’t be more excited to support Ohza’s future growth. If you’re interested in learning more about Ohza please check out their website and follow their Instagram page. For those 21+ make sure to give Ohza a try next time you shop at Whole Foods, Hannaford, Wegmans, Total Wine & More, Market Basket and many more independent retailers. Or place an online order at ohzamimosas.com (available to ship to 42 states). Cheers to Ryan and the team, and cheers to a sunny, happy, and healthy summer! 

Young Thai Coconuts: Why We Invested in Copra Coconuts' $1.6MM Series Seed-2

Crazy for coconuts?! So are we, and we’re not alone. In recent years, coconut water and coconut products have gained popularity in the US and around the world as consumers seek alternative beverages with low sugar content and nutritional benefits. It’s estimated that in 2020, the US coconut water market surpassed $1B and is on track to exceed $2B by 2024. Currently the global coconut water market is $4.2B and expected to grow at a CAGR of over 16%. With naturally low sugar and an excellent source of nutritional ingredients including fiber, minerals, and vitamins -- consumer demand for coconut products is here to stay.

Two of Copra's branded products, coconut water and coconut meat. The coconut water's pink hue indicates its naturally high in antioxidants.

That said, we are thrilled to announce our investment in Copra Coconuts, a vertically integrated and certified Organic, BRC Grade A, and Fair Trade supplier of authentic, premium young coconut products sourced from Thailand. Young Thai coconuts are the world’s gold standard in taste and quality. Their unique pink hue and aromatic taste is implied in its name Nam Hom, which means fragrant water in Thai. Founded in 2013 by Ben Minges and Chai Phonsuwan as a branded coconut water company, Copra has evolved into primarily a B2B supplier of high-quality cold chain coconut products.

Copra is one of the only cold chain coconut companies in the market. The majority of shelf-stable coconut water companies are sourced from mature coconuts and are flash-pasteurized leaving an unappealing flavor to some. The company owns a dedicated processing facility in Thailand and through their carefully architected cold supply chain has mastered the ability to provide customers with a fresh, right off the tree coconut flavor. The taste is spectacular. As the company scales and takes on new, large customers, Copra plans to use this round of funding to double its manufacturing capacity and fund working capital. The team’s hard work continues!

Why did Branch Venture Group Invest in Copra?

Copra stood out to the Branch Venture Group team as an exciting investment for three key reasons:

Unique Product Offering with Emphasis on Sustainability & Worker Conditions

The product not only tastes amazing but also is sustainably and ethically sourced. In addition to Copra’s certification audits, the company undergoes a yearly external ethics and employee audit. Copra employs a majority of female workers (70% female / 30% male) and pays workers 15% above the market. The company’s high standards and extensive certifications are a clear competitive differentiator. 

Coconuts being harvested by hand at one of the canals at Copra's partner farms.

Sustainability of the land and local farming communities is a focus for the Copra team.  This year, the company plans to plant a tree for every case sold. If they meet their sales estimates that would mean 200,000+ seedlings next year! The coconut farms are located in a region of Thailand that has been farmed for tropical fruit for generations, so does not require the conversion of virgin forests. Copra only partners with coconut farms that grow dwarf trees so they can be easily harvested by hand with human labor. A growing list of top US retailers have recently boycotted a Thai based coconut milk company when they discovered they were using monkeys to harvest their coconuts.  

Diversified Distribution Channels & Key Top-Tier Private Label Retailer Partnerships

Copra has a diversified set of customers and distribution channels in Private Label, fast growing natural brands as well as local restaurants, hotels and cafes around the country.

In the last three years, the company has attracted and grown large private label partnerships driving rapid growth. Revenues doubled from 2019 to 2020, and are expected to double again 2020 to 2021. On your next trip to the grocery store, make sure to be on the lookout for young Thai pink coconut water in the refrigerated section. Be warned, the taste is so delicious it’s a bit addicting! 

At Copra's processing facility in Thailand workers scoop out the coconut meat after the water has been extracted.

Experienced, Dedicated Founders and Advisory Board

Last but certainly not least, a stellar team and the right team for the job. It’s been a pleasure to get to know and work with Ben, Chai, and Tim. Benjamin Minges, CEO and Co-Founder, grew up in Thailand and has been leading the company for 7+ years. One of Copra’s customers described Ben as someone who works diligently on customer needs, always tries to solve problems, and never stops innovating new ways to grow the business, team, and Thailand facility.  Chai Phonsuwan, COO and Co-Founder, grew up with Co-Founder Ben and his family has experience in frozen food manufacturing. He brings a strong knowledge of production and manufacturing and is committed to quality control. Ben and Chai have the support of Ben’s father, Tim Minges, who was the CEO of PepsiCo Asia & Chief Customer Officer, Pepsi North America. Ben sits on Copra’s board of directors. 

Want to Learn More about Copra?

At Branch Venture Group we’re always looking to connect our portfolio companies with strategic partners, so if you have any interest please reach out to info@branchventuregroup.com. To learn more about Copra make sure to check out their website and follow their Instagram page. A huge congratulations to Ben, Chai and the team on their successful fundraise and continued success!

Cellular Aquaculture: Why We Invested in Cultured Decadence’s $1.6MM Seed Round

As the world seeks to find alternative ways to feed our growing population in a sustainable and environmentally friendly way, one solution could be cell-cultured meat and seafood. Cell-cultured meat and seafood aims to disrupt the traditional food supply chain by creating a viable and sustainable alternative to conventional sources. 

Cultured meat is a form of cellular agriculture where meat is produced by in vitro cell culture of animal cells, instead of through the raising of live animals. According to a recent study by Boston Consulting Group and Blue Horizon, alternative proteins such as cell-cultured meat could claim as much as 22% of the overall protein market by 2035.

As part of that transformation, we are excited to announce our investment in Cultured Decadence, an early-stage company based in Madison, WI, focused specifically on cellular aquaculture. The company is initially focused on producing cellular cultured lobster meat. Cultured Decadence is the only one in North America specifically targeting crustaceans using novel cell culture and tissue engineering techniques.

With $1.6MM in Pre-Seed capital from strong co-investors such as Bluestein Ventures and Revolution’s Rise of the Rest Seed Fund, Cultured Decadence will be able to advance the progress of their research and development towards disrupting the $20B global crustacean market. 

Why did Branch Venture Group Invest in Cultured Decadence?

Ian Johnson (CSO/Co-founder) reviews proliferation of lobster cells at Cultured Decadence’s facility in Madison, WI—part of the first steps in making lobster meat directly from cells. 

People: Ian Johnson (CSO/Co-founder)

We were excited to connect with Cultured Decadence and work with co-founders, John Pattison and Ian Johnson, as we evaluated the opportunity. As a Boston-based investment network with an active member base whose interests include in high-growth food related businesses, Branch Venture Group evaluates food-tech companies working on plant-based or cell-cultured foods as well as ingredients and technologies to transform the food supply chain. When John and Ian approached the team with the opportunity to participate in their Seed round, we were eager to invest. Here’s why:

The Crustacean Supply Chain has some serious problems

Global warming and increasingly acidic oceans negatively affect wild catch of all seafood, while fossil-fuel intensive harvest methods have an outsized impact on the environment. Oceans absorb 90% of global temperature increases which have caused fisheries to migrate further from land to deeper and cooler waters while these changes in the ocean environment can cause more variable yield in fisherman's catch. Governments have also instituted regulations which limit supply, just as the nutritional benefits of a seafood rich diet are being recognized driving increased consumer demand and awareness. 

The lobster market has not been immune to these trends and feel them even more dramatically as lobsters are not able to be grown by aquaculture farming techniques. Finally, 50% of catch is thrown back today due to size requirements to protect the breeding stock.

The team at Cultured Decadence is aiming to eliminate supply chain inefficiencies and waste by focusing on producing the end product, lobster meat. The meat itself will be fresh, traceable, and sustainable while also being mercury and plastic free with a similar great taste and comparable nutrition to wild caught crustaceans.

Uniquely Qualified Co-Founders and Advisory Board

Cultured Decadence team in their facility in Madison, WI

Subjects from L to R: Daniel Devine (Senior Research Associate), John Pattison (CEO/Co-founder), Leila Mohammadiamirabad (Scientist), and Ian Johnson (CSO/Co-founder), not pictured Jessica Weaver (Strategic Partnerships). 

John and Ian each have extensive experience working on cell-cultured meat. Prior to co-founding Cultured Decadence, CEO John Pattison and CSO Ian Johnson each gained extensive experience in the cell-cultured meat space. Previously, John was the Director of Operations at New Age Meats, a cell-cultured meat company focused on pork. He also serves on the Board of Directors of New Harvest, the leading non-profit research institute dedicated to advancing cell-cultured meat technologies. John is a veteran of the US Army and received his MBA from NYU Stern. Ian was previously a Senior Scientist at Finless Foods, a cell-cultured meat company focused on bluefin tuna. Prior to Finless Foods, he worked at two clinical stage companies giving him experience with the FDA.

John and Ian are also working with leading institutions such as the University of Maine and the Lobster Institute as well as the Virginia Institute of Marine Science to help develop their crustacean cell culture.

Attractive Market and Retail Price Point

The market size for lobster meat in the US is estimated to be roughly $20B and consists of whole meat products as well as added ingredients and flavoring for products such as fishcakes, raviolis, and bisques. Due to the limit on supply via government regulations, this market size is primarily attributed to the high price point of lobster meat which can cost anywhere from $50-75 per pound.

One of the biggest skepticisms today of cell-cultured meat production revolves around its ability to produce products at a cost equivalent to conventional products. Cultured Decadence’s focus on high value crustacean meat can allow them a faster path to profitability compared to other cell-cultured meat companies who are focusing on lower priced products such as poultry or beef. 

Want to Learn More about Cultured Decadence?

Cultured Decadence is growing their team (check out the open roles here) as the company continues to conduct research and development and scale. You can also follow Cultured Decadence on their LinkedIn and Twitter. We could not be more excited to have Cultured Decadence joining the Branch Venture group portfolio and we look forward to working with them on their continued success.