Hooray Foods Latest Funding Round To Support New Innovation
Plant-based bacon maker Hooray Foods announced today it has closed a $2.7 million seed extension round, bringing the company’s total capital raised to over $4 million. The round was led by new and existing investors including David Hoffmann, the former CEO of Dunkin’, Lyra Growth Partners, Evolution VC Partners, Gaingels and Sand Hill Angels. According to a press release the new funding will allow the alternative meat company to scale production in order to continue expanding its retail presence.
“It is exciting to see Hooray’s bacon be so embraced by consumers seeking healthier alternatives to animal products, as evidenced by the rapid growth since launch just a year ago to almost 1,000 stores in which the product is available,” said Gregg Smith, founder of Evolution VC Partners in a press release.
The plant-based bacon launched nationwide at Whole Foods earlier this year and recently entered Canada, rolling out at 180 Sobeys, Safeway and Thrifty Foods locations across Ontario and British Columbia.
In addition to scaling operations, the company also said this new capital will be used to introduce an improved version of its bacon in 2022. The current version of Hooray’s soy-free bacon contains ingredients including coconut oil, rice flour, tapioca starch, liquid smoke and umami seasoning. The company had already debuted one reformulation, sampling the newer offering at this year’s Expo East.
According to a press release, the bacon is made with the company’s proprietary emulsion-forming technology, “allowing for a replicated flavor and texture of real bacon.” Funding will also go towards work on developing new alternative, plant-based meat products made with its proprietary technology.
“I look forward to guiding Hooray Foods as they continue to expand,” said David Hoffmann, the former CEO of Dunkin’ in a press release. “After witnessing the national appeal of meat alternatives in my previous roles at high-profile fast food brands, I am confident Hooray’s plant-based bacon will become a must-have on the menus at thousands of quick-service restaurants and sit-down establishments.”
“Changing what we eat, specifically reducing consumption of animal proteins, is the easiest step anyone can take to help slow climate change,” continued Hooray Foods founder Sri Artham. “Hooray is here to make this transition joyful and delicious. We’re so grateful to have investor support to ensure consumers have access to plant-based options that are just as good as the real thing.”
The announcement comes only a week after leading plant-based meat maker Impossible Foods closed a $500 million funding round to expand supply chain and retail opportunities, grow its portfolio and continue making advancements in its technology. However, the momentum behind the plant-based meat market may be starting to slow down.
According to recent data from SPINS, plant-based alt-meat sales in the U.S. dropped 1.8% in the four-week period ending October 3, marking a 0.6% decline in sales over the course of 2021. Additionally, Beyond Meat reported overall decline in its retail and foodservice businesses in a Q3 earnings report, attributing the slowing demand to increased competition in the category and supply chain challenges.
