Nicks Raises $100M for Low Sugar Platform
Better-for-you snack and frozen brand Nick’s announced today that it had raised an additional $100 million to grow the company’s distribution and product assortment.
The company was founded four years ago in Stockholm by mechanical engineer Niclas Luthman.
Abroad, the company has a wide range of products including ice cream, pasta, sweeteners, bars, chocolates — all primarily with low-carb and low-sugar nutritional profiles due to the use of stevia, allulose, xylitol, Monk Fruit and Erythritol, depending on the product. Nick’s ice cream is also low-fat thanks to the company’s use of E.P.G., a proprietary fat made by Canadian ingredient firm Epogee that is derived from the rapeseed plant. According to Epogee, EPG’s fats are 92 percent lower in calories. Nick’s claims to have the exclusive rights to the ingredient in ice cream. While Nick’s has leaned heavily on advances in food science, it has not particularly emphasized this use of technology to consumers.
Nick’s entered the U.S. in 2018 with its line of ice cream, since adding protein bars, ice cream sandwiches and a line of ice cream made with Perfect Day’s animal-free whey protein. In total, the brand is sold in 6,700 U.S. retailers (with roughly 2,200 doors coming online only in the last 10 months) and is in 16 international markets, including the U.S. and U.K.
In total the company has brought in $160 million in funding, $30 million of which was raised this past January. With an eye on the U.S. market, Nick’s also brought on Carlos Altschul as CEO North America this year, hoping the dairy veteran’s prior experience as CEO of yogurt brand Siggi’s, and time spent at Stonyfield Farms and Danone, would prove advantageous.
The round was led by Kinnevik, Ambrosia Investments and Temasek, with participation by previous investor Gullspang, an early investor in fellow Swedish brand Oatly, Peak Bridge, Capagro and Nicoya.
“When we look at potential food investments, we look for companies that are addressing and taking advantage of tail winds within consumption patterns, the importance of health and sustainability,” Magnus Jakobson, investment director at Kinnevik, said in a release. “NiCK’S fits squarely into these areas and we have been impressed by the strong market traction across the US and Europe.”
Other investors in the company include DNS capital, Djursholm Investment Group, Skandrenting AB and Khosla Ventures.
The capital will go towards the company’s North American and European growth, Nick’s said in a press release. In addition to a goal of doubling its store count in 2022, the company also plans to invest in its R&D efforts, launching new SKUs. To support both of these areas of focus, Nick’s also plans to hire more team members and invest in marketing tactics.
