The Checkout: Keto Krisp Closes Funding Round, Adds RXBAR Alum; Instacart Reports Plant-Based Trends

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Keto Krisp Closes Funding Round, Adds RXBAR Alum as COO

Keto-friendly protein bar brand Keto Krisp has closed a round of funding that will support distribution growth and the addition of new team members, the brand announced this week. CEO Matt Clifford declined to disclose the size of the round, saying the company is focused on “not over-capitalizing the business,” but SEC filings indicate the company raised $1.35 million, following a $1.5 million round closed last year.

“The business has a very healthy structure in place in which we don’t have to raise a ton of money,” Clifford said. “And I think this is a healthier, more disciplined approach. We want to keep it lean, and just have smart people around the table and grow.”

The round included existing investors such as Enlightened Access Capital as well as new investors Health Warrior founder Shane Emmet, Twitch founder Justin Kan and Once Upon a Farm co-founder and president Ari Raz. Beyond capital, these new investors can also lend “strategic help” to the brand, Clifford said.

In addition to strategic support from investors, Keto Krisp is also seeking bar category expertise with the hiring of former RXBAR chief supply chain officer Tom Melcher, who has joined as COO. Having been drawn to the brand because of the “quality of the food and what problems [the brand] is solving in the market,” Melcher said “service and quality” will be his immediate focus in this role.

“We’re going through some pretty substantial growth, there’s global supply chain challenges that have a direct impact towards service, so we’re putting a lot of energy towards being able to set ourselves up to deliver against all of the growth we have ahead of us,” he said.

The brand will also be using the funding to grow its retail footprint, entering 1,000 Walmart locations this spring, while also increasing store counts and flavors at H-E-B and adding two new flavors at Sprouts. Keto Krisp is also sold at natural retailers including Whole Foods, where it’s the number one selling bar according to Nielsen data, along with Wegmans, Publix and Fresh Market. The brand’s close relationship with Erewhon has been essential for the brand’s growth, Clifford said, noting that it launches new SKUs in end caps at the store before bringing them to other retailers.

“That really close dialog with a great retail partner to innovate with, I think that’s a huge factor for success in this category,” Clifford said.

Instacart Reports Shopping Trends, Plans Global Expansion

While it continues to invest in its North American business, Instacart this week announced plans for potential global expansion. The company has added Nikila Srinivasan, former director of product at Facebook, as its VP of Product, International, leading development of the company’s global strategy as it “explore[s] potential future market expansions,” the company said in a press release.

The company also added three new VP of product roles, focusing on retailers, the Instacart App and shoppers and fulfillment.

As Instacart looks to expand, this week the company also looked back on the biggest shopper trends on the platform over the past year, particularly in the plant-based category.

Meat and milk alternatives are “taking over our carts,” according to Instacart, as one in three of its customers has purchased plant-based meat or milk products. Plant-based meat grew 42% year-over-year on Instacart, with top brands including Impossible Foods, Alpha Foods, Franklin Farms, Sweet Earth and Earth Grown. Meanwhile, plant-based milk saw a 27% sales uptick, led by Laird Superfood, Simply, Nutpods, Planet Oat and Mooala Organic.

Consumers are also searching for these products more often, Instacart found, with terms like “plant-based,” “meatless,” “vegetarian,” and, most significantly, “vegan,” growing in popularity.

Instacart also offered detailed information of plant-based shopper demographics. Plant-based shoppers on the platform tend to skew younger compared to traditional meat and milk shoppers, Instacart found, with one-third falling between the ages of 30 to 39. The data also indicated that plant-based purchases are booming on the West Coast, particularly in the San Francisco Bay Area, Los Angeles, Seattle and Portland, Oregon. They’re also picking up steam in the South and East, with notable plant-based meat sales jumps in Pittsburgh, Pennsylvania (55%) and Orlando, Florida (22%) over the last year.

The shopping platform said that first time plant-based customers often gravitate toward some products over others, and are most likely to add almond milk to their cart, followed by dairy-free cheese, tofu and veggie burgers. But even seasoned plant-based Instacart shoppers aren’t all vegan: 43% of these consumers also buy conventional meat, according to the report.

“Mixed baskets also illustrate a reality for most American families — the multi-diet household,” Laurentia Romaniuk, Instacart’s Trends Expert and Senior Product Manager, said. “With so many meat and milk alternatives available to consumers, it’s easier than ever for a variety of dietary preferences to live in harmony under one roof.”

Whole Foods Releases Its First Plant-Based Trend Predictions

Whole Foods Market this week published its first ever plant-based predictions created by its Trends Council, highlighting the products and ingredients it anticipates will fill shoppers’ carts this summer including seafood alternatives and dairy-free dips.

The retailer predicts that shoppers will be adding more gourmet non-dairy alternative cheeses to their carts, such as those from Miyoko’s Creamery and Kite Hill, as well as dairy-free dips from brands like Siete and Bitchin’ Sauce. Barbecue-friendly plant-based hot dogs and sausages from Field Roast and Upton’s Naturals will also see a popularity boost, according to the retailer. And while plant-based meats have dominated the alt-protein space, Whole Foods suggests that plant-based seafood brands could see a sales uptick this summer, led by Gathered Foods, maker of Good Catch, which raised $26 million last month to fuel innovation. Finally, kid-friendly sweets and snacks which offer fruits and vegetables in approachable formats — such as Chloe’s Kids Pops and Miyoko’s Plant Milk Cheddar Sticks — are expected to gain traction with a younger demographic this summer

The natural retailer released the predictions as plant-based eating continues to gain traction, with the booming category now valued at $7 billion, according to the Plant Based Food Association. The new predictions also align with the beginning of a season when consumers are more apt to shop outside of their comfort zones, said Parker Brody, senior global category merchant for plant-based at Whole Foods.

“Plant-based is the grocery category to watch right now as brands continue to innovate by using new ingredients and processes that make plant-based products exciting for shoppers,” Brody said. “And in the laid-back days of summer, we find that customers are breaking out of their routines and are more open to trying something new, whether they’re longtime vegans or just starting to experiment with plant-based eating.”