The Checkout: Hershey Tests Plant-Based Chocolate Bar; Gopuff Launches Accelerator

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Hershey Tests Oat Made Plant-Based Chocolate Bar

Chocolate giant Hershey this week announced a new move into the plant-based segment with the debut of Hershey’s Oat Made Chocolate bars. The oat-based bars, which are available in Almond & Sea Salt and Classic Dark Chocolate flavors, will be tested in select markets, according to a blog post on the company’s site authored by Dan Mohnshine, Team Lead of Strategic Growth Platforms.

The limited launch will help the company “manage uncertainty and measure the additional benefit to both the category and to the Hershey portfolio,” Mohnshine said. The chocolate maker worked with its current retail partners to choose locations where consumers were most interested in plant-based products. The company will use findings from the test to determine the possibility of a future national rollout.

“A key signal for us will be to evaluate how well our plant-based offerings reach new consumers and create new occasions to enjoy our brands,” Mohnshine said.

Mohnshine said the company evaluated other plant-based dairy alternatives, ultimately landing on oats as the “preferred substitute” for milk in the chocolate. Natural brands including Endangered Species and Raaka already offer plant-based chocolate bars with oat milk offerings, while Taza has developed an almond milk-based bar.

With this new line, the company hopes to reach a sub-segment of more health conscious, better-for-you (BFY)-focused consumers that purchase from “smaller niche brands” that offer organic, plant-based and fair trade products, Mohnshine said. The company has already been working to expand its BFY confection portfolio to reach consumers interested in smaller portion sizes and low to no sugar products. Earlier this year, the company acquired low-sugar chocolate brand Lily’s and also debuted organic Hershey’s and Reese’s products. Hershey also repositioned its own sugar-free products this year, debuting with new packaging across the Reese’s, Hershey’s, Twizzlers, Jolly Rancher and York lines.

The company did not name specific retailers selling the Oat Made line, though Target has both varieties listed on its website for $1.99 per bar. While the Oat Made moniker is currently being used, the naming and branding for the product line is still fluid, Mohnshine said.

“Once naming and branding for the products are defined, we’ll tackle the even-bigger questions: How do we scale up the product? When do we launch, and who are the key retailers for this product? How soon do we complement the launch of our Oat Made chocolate with a plant-based Reese’s?,” Mohnshine said. “Time and consumer insights will help us determine the answers, just as they’ve helped inform our entire BFY strategy.”

Gopuff Announces New Accelerator for Underrepresented Entrepreneurs

Digital delivery platform Gopuff this week announced the launch of a new virtual small business accelerator program called “Put Me On.” The accelerator aims to support entrepreneurs from historically underrepresented groups, including BIPOC, woman, LGBTQ+, differently abled, immigrant and veteran entrepreneurs.

“Put Me On” was created in partnership with NBA All-Star Chris Paul, who helped select the first cohort of participants alongside the Gopuff team and will serve as a program ambassador.

“Gopuff’s rapidly growing following and ability to add products to its platform immediately — and deliver to the hands of customers in minutes — is an invaluable resource for brands, and I’m looking forward to unlocking that further for the underrepresented entrepreneurs who need it most,” Paul said in a press release.

The biannual six-month program includes the launch of the participants’ products on the Gopuff platform, as well as networking events, workshops and one-on-one sessions with Gopuff’s merchandising, marketing, branding, finance and supply chains teams. They’ll also be invited to join an alumni network of participants at the end of the program.

The first cohort of the accelerator includes companies across food, beverage, personal care and toys and games. Food and beverage brands include Creole, Caribbean and Latin American-inspired rice and beans brand A Dozen Cousins, nut butter maker MUMGRY, heirloom popcorn and cracker brand Pipcorn and Me & the Bees Lemonade.

Participants must be North American CPG companies with U.S. operations that ship products and have generated revenue. They must also be 51% owned, operated or controlled by BIPOC, woman, LGBTQ+, differently abled, immigrant or veteran entrepreneurs.

The accelerator is currently accepting applications for its next cohort, which will take place in 2022.

Meatless Farm and Equinom Partner on New Yellow Pea Protein Variety

Israel-based non-GMO crop breeding company Equinom this week unveiled its first plant-based meat partnership with alt-protein brand Meatless Farm and Meatless Farms’ subsidiary Lovingly Made Ingredients to produce plant-based meat products using Equinom’s new pea protein offering. The yellow pea protein concentrate, which has been in development since 2015, offers over 50% more protein and has a lower carbon footprint than the typical yellow pea crop.

While the yellow pea is one of the most popular sources of protein for plant-based meat alternatives, food companies have “merely scratched the surface,” when it comes to the crop, Equinom’s VP of R&D said in a press release, as products using this crop often don’t always measure up nutritionally to their animal-based counterparts. Meatless Farm founder Morten Toft Bech said the ingredient will not only help the company produce a product that is nutritionally more similar to meat, but also help it meet sustainability goals.

The new partnership comes after Equinom secured $20 million in new funding in June. The company previously partnered with hummus maker Sabra to develop a sesame seed optimized for use in tahini that could be grown in the U.S. Equinom said it plans to make its first limited edition pea concentrate available to other food manufacturers later this year.

“We are proud to collaborate with a company with the same vision ⎯⎯ that the world’s source of protein must come from a clean, sustainable and accessible ingredient made only by nature,” Equinom founder and CEO Gil Shalev said in a press release.

Superfood Powder Brand Teatis Secures Seed Funding

Teatis, a maker of superfood powders designed for diabetic consumers, has secured $700,000 in seed funding, the brand announced this week, bringing its total capital raised to date to over $1 million. Genesia Ventures, Mercari co-founder Ryo Ishizuk and Takuya Noguchi, CEO and founder of Japanese skincare brand BULK HOMME, led the funding round.

The company will use the capital to fund production and marketing.

Launched in April by entrepreneur and angel investor Hiroshi Takatoh following his late wife’s battle with cancer, Teatis seeks to provide nutritious food for critically ill consumers. The plant-based powders contain seaweed extract that the company says suppresses the intestinal tract’s absorption of sugar in order to moderate consumers’ blood sugar. The products are offered in Awake (matcha) and Calm (ginger and turmeric) varieties on the brand’s website.

“With millions of diabetics living in the United States, there is significant demand for diabetic-friendly foods that are nutritious, convenient, and functional,” Takatoh said in a press release. “Our team of doctors has worked for years to perfect our product line, and this is just the beginning. We plan on building out a comprehensive one-stop shop for Diabetic health.”