Funding from a $70 million venture capital fund headed by former McDonald’s CEO Don Thompson is fueling an expansion at Chicago snack company Every Body Eat.
The year-old company launched its products in Mariano’s and Illinois Whole Foods stores earlier this month, and is eyeing growth outside the Midwest.
Every Body Eat makes plant-based snack foods that are allergen-friendly and gluten-free. The company has raised about $3 million so far, and is among a group of startups that have drawn the attention of the Cleveland Avenue State Treasurer Urban Success Initiative, or CAST US.
The new fund invests in minority and women entrepreneurs in Chicago. It includes money from the state of Illinois and nonprofits such as the MacArthur Foundation, and is run by Thompson’s firm Cleveland Avenue.
Every Body Eat is a well-run company in a growing category, said Andrea Zopp, the former president of World Business Chicago who joined Cleveland Avenue in December to lead CAST US.
“They’re positioned to expand, they have plans to expand into other categories,” she said. “That’s exactly the kind of investment you want to be in. And we can be helpful to them.”
Now that its products are on shelves, the challenge is connecting with customers and getting those products off shelves, Zopp said. “You have to have the right kind of marketing.” That’s where previous experience might help, and the cofounders have it.
Trish Thomas and Nichole Wilson met at a book fair at their children’s school in 2016. Thomas was an entrepreneur and Wilson worked the food industry, including at PepsiCo—and both had dealt with restrictive diets.
Thomas was diagnosed with two autoimmune diseases after having her children, and learned to treat the diseases and reduce inflammation through her diet. Wilson’s family took to a special diet after discovering her son and daughter had food intolerances, too.
More than 17 percent of people age 20 and older reported being on a special diet in 2015 through 2018, according to Centers for Disease Control and Prevention report from last year.
Every Body Eat is aiming to capture those consumers, as well as a broader swath of people simply aiming to eat healthier. Thomas said about one-third of Every Body Eat’s customers have dietary restrictions in the family, one-third want to eat healthy and the remaining third are fitness aficionados.
“What we’re not trying to do is just build another snack company,” Thomas said. “We’re really trying to create a brand that’s much more akin to Newman’s Own, so that when somebody walks into the store and sees our food, they know they can eat it.”
The company’s snack thins, in flavors such as fiery chili lime, sea salt chia and chive and garlic, are sold in 500 stores and online. They’re made with a base of potato starch and rice flour, and the ingredients are listed clearly on the front of the packaging. Every Body Eat plans to launch crisp breads next month.
The snacks are made in a facility near the West Loop that employs about 40 people, most of whom are from the South and West sides, Wilson said.
That detail attracted CAST US too, Zopp said. The fund is looking to invest in companies in Chicago’s South and West sides.
Cleveland Avenue is making the investments and providing support to the companies CAST US invests in. Other recent investments include Chicago-based 86 Repairs, a tech platform that streamlines equipment repair and maintenance for restaurants, and AYO Foods, a Chicago-based line of West African-inspired food.
Every Body Eat expands distribution of gluten-free, allergen-friendly snacks - Crain's Chicago Business
Read More
No comments:
Post a Comment