Fermented Funding: Cleveland Kitchen Raises $2.9 Million

Fermented foods slinger Cleveland Kitchen has raised $2.9 million in equity funding, according to a filing last week with the U.S. Securities and Exchange Commission (SEC).

Founded in 2014, Cleveland Kitchen – formerly Cleveland Kraut – markets a range of sauerkrauts, kimchi, pickles, dressings and marinades that are sold in 14,000 grocery stores and foodservice accounts across the country. Earlier this year, the brand debuted a pair of sauces – Kimchi Ranch and Dill Pickle Buffalo – at Whole Foods Market.

As the leading brand and manufacturer in the category, according to SPINS, Cleveland Kitchen is well-positioned to capture growing demand for gut-friendly foods and fermented flavors. The brand generated $41 million in sales last year and is anticipating continued strong double-digit growth supported by new distribution and investments in marketing and operations, co-founder and chief commercial officer Mac Anderson told Nosh via email.

In 2022, the company secured $19 million in a Series A round, using part of the proceeds to purchase Sonoma Brinery and relocate its pickle production operations from California to Ohio while expanding its facility and workforce.

The company landed on Bain & Company’s annual Insurgent Brands list earlier this year, named as an “emerging insurgent,” which is defined as a high-growth consumer brand with $10 million to $25 million in annual revenue in tracked channels.

The company’s previous backers have included Amberstone Ventures, CJ Group, Clover Vitality and Cabbage Inc. Kraft Heinz selected the brand to participate in its inaugural Springboard incubator program in 2018.