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.