Good Good Closes $20M Financing, Expands U.S. Footprint

Icelandic low-sugar snack and breakfast products maker Good Good has closed a $20 million Series B round led by European capital group Strategic Investment Advisors (SÍA).

The new funding, announced today, arrives as the company continues to double its revenue year-over-year and the financing will help the brand in “strengthening the Good Good shareholder group for the future,” co-founder and chairman Jóhann Ingi Kristjansson said in a release. In addition to SIA, the round also features investment from additional private investors.

“We are very pleased with the progress of the share capital increase and that the demand from investors has far exceeded our expectations,” Kristjansson said. “This funding strengthens the company’s foundation for continued growth, specifically in the United States, online sales, and other foreign markets. In recent months, many experienced new team members joined our company in Iceland, USA, and the Netherlands.”

With SÍA, Good Good has brought in a significant global investment partner with a portfolio that includes Cenovus Energy Inc., Sodexo, Grieg Seafood ASA and Suncor Energy, among others. Good Good is the second investment from its SÍA IV fund.

“We first met the Good Good team in 2019 and were impressed by their initial success and data-driven approach,” Heidar Ingi Olafsson, SÍA IV managing director, said. “Having kept an eye on the company since, we’ve been thrilled with their ability to innovate and execute on their brand vision.”

Founded in 2015 as an alternative sweetener brand, Good Good has expanded its platform over the past two years to feature a variety of no-sugar-added products including keto bars, jams, jellies, spreads, pancake and waffle mixes and syrups. The company is committed to using non-GMO natural sweetening agents including maltitol, xylitol, stevia, erythritol and inulin.

The company, which entered the U.S market in 2020, is now launching its latest offering – a low-carb, no added sugar Peanut Butter. The new product has only 2g net carbs per serving and features natural fibers from chicory root. The non-GMO, keto-friendly spread will be available online direct-to-consumer and on Amazon later this month.

The latest round of financing marks Good Good’s third in as many years. In 2021 the brand closed a $2 million round featuring firms Icepharma, K2B Investments and Aton.JL, and in 2020 the company raised $3 million to support its initial U.S. launch.

Co-founder and CEO Gardar Stefansson told NOSH last year that Good Good reported a 171% increase in year-over-year sales growth in 2020 and the company intended to scale production of existing lines and leverage its global network of co-packers to swiftly increase its innovation rollout.

The growth coincides with consumers’ ongoing rejection of sugar. Last year, Euromonitor reported that 53% of respondents to its 2020 Voice of the Consumer health and nutrition survey said they are looking to “eat less sugar.” Additionally, 31% of respondents said they seek out food and beverage products that include “does not contain artificial sweeteners” on their labels.

Good Good is currently available in over 10,000 retail stores across 36 countries, including Publix, Albertsons, Meijer and Giant stores in the U.S. The brand now aims to go deeper in the U.S. In September, it brought on former Grounded Foods Co. supply chain and operations manager Jason Meacher as director of operations for North America, and this month the brand said it is expanding its nationwide distribution with 3,500 Walmart locations this spring. The mass retailer will carry Good Good’s Strawberry and Raspberry Jams, Concord Grape Jelly and Chocolate Spread products.

As the brand broadens its presence in North America, however, it’s also facing increased competition from established spread brands. This morning, leading U.S. preserves brand Bonne Maman announced a new Fruit Spreads line of reduced sugar products, available in Red Fruit, Cherry, Apricot, Orange, Strawberry and Blueberry flavors. The new spreads contain 38% less sugar and 28%-34% more fruit than the brand’s core preserve offerings. Meanwhile, other emerging keto-focused brands have also pivoted towards low-sugar offerings while large companies have turned to M&A to grow their portfolios, such as Hershey’s acquisition of Lily’s Sweets.

“Good Good is on a mission to innovate great-tasting, no added sugar alternatives in a world where such products are necessary for everyday living,” Stefansson said in today’s release. “With this new round of $20 million, we are on track to materialize our vision of making a positive impact on our consumers.”