Holy Cow: NadaMoo! Raises $10M
Non-dairy ice cream brand NadaMoo! announced today it had raised roughly $10 million in funding aimed at helping the sixteen year-old company expand its distribution.
The round was led by existing capital partners, District Ventures Capital and InvestEco, along with a new partner, South Texas-based family office Killam Investments. Austin-based NadaMoo!, a certified B-Corp, previously raised $4 million in 2017 in a round led by Canadian firm InvestEco Capital.
CEO Daniel Nicholson said the round is reflective of the product’s quality, but also how consumers and investors are prioritizing brands with sustainable business practices. Beyond its ingredient deck, which contains many organic ingredients, NadaMoo!’s ice cream is non-GMO and packaged in 100% sustainably sourced sugarcane & paper-based pints.
“It’s encouraging to see Texas-based family offices like Killam Investments diversifying into sustainable industries like plant-based food to ensure our acceleration toward a more sustainable planet,” said Nicholson, who purchased the company in 2008 before becoming CEO in 2011. “This raise underscores the fact that investing in businesses that put people, planet, and purpose before profit has the potential for a strong return.”
Nicholson said that the funding will help the brand to quickly grow its national distribution footprint, in addition to supporting “strategic and aggressive” marketing tactics at existing retailers.
Originally launched in 2005, NadaMoo! debuted its coconut-milk ice cream in Whole Foods Market. Since then, the company has expanded to a portfolio of 20 flavors, including multiple annual seasonal offerings, and a scoop shop in Austin. Most recently the brand launched a four-SKUs sugar-free line which uses chicory root fiber, erythritol, inulin, allulose and stevia as sweeteners. The brand says its core line also is lower carb, lower calorie, lower sugar than traditional dairy and non-dairy options.
“During the pandemic, we saw consumers shift to products that were higher in sugar content as they looked for comfort. However, we know this is not sustainable behavior,” Nicholson said. “We have faith in the consumer and our collective thirst for a more sustainable life and planet, so we believe these trends will be short lived.”
While NadaMoo! does have a differentiated product in a crowded category, there are also plenty of competitors — many of which have raised their own capital.
Plant-based dairy brand Eclipse Foods recently entered Whole Foods Market nationwide and closed $12 million in November. Elsewhere, Brave Robot which uses precision fermentation technology to mimic dairy-based ice cream, is sold in 5,000 doors. Brave Robot is part of the Urgent Company, the CPG arm of Perfect Day, a food technology company that has raised $750 million, including $350 million in September. Meanwhile, publicly traded company Oatly also has pints and recently expanded into novelties.
According to research firm IRI, while ice cream pints sales are still rising, novelty products are fueling incremental revenue gains in the category. While NadaMoo! has also seen this subcategory trending upward, particularly in non-dairy, Nicolson said that “it’s hard to fully say why the dramatic shift is happening.”
“We firmly believe there will always be a place for pints, as well as novelties, in the freezer,” Nicholson said, “But, as a frozen dessert ice cream brand, of course we are looking at it as an opportunity.”
