The Checkout: Oats Overnight Raises $2M; Ocean Hugger Relaunches Through Joint Venture

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Oats Overnight Raises $2 Million

Shake brand Oats Overnight announced this week it has secured $2 million in equity funding, which the company will use to launch new products and grow its retail footprint.

The round was led by Schnitzel Capital, with participation from FabFitFun CTO Danilo Stern-Sapad, Rebag CFO Kevin Weinman, Spacestation Investments, Costella Kirsch and an unnamed member of the Allbirds executive team. The investment marks the company’s first equity capital raise, as founder and CEO Brain Tate said the company was previously funded through venture debt.

“We looked for investors who believed in our vision and were aligned with where we plan to go in the future,” Tate said. “We were looking for people who were smart and experienced – but also relevant with current trends, open-minded, innovative and creative.”

Launched in 2016, Oats Overnight markets “spoon-free,” high-protein oats, designed to be consumed as a beverage with the addition of milk or milk alternatives and offered in a variety of unique flavors such as Peach Upside Down Cake and Blueberry Cobbler. Last month, the brand grew beyond its dry oats mixes with the launch of the Oats Overnight Shake. Now consumers only need to add water to a bottled shake mix formulated with a proprietary oat milk for an on-the-go option. Available in Maple Brown Sugar, Blueberry Muffin and Peanut Butter Crunch flavors, the shakes contain15 grams of protein, formulated with pea protein and chia seeds.

While the majority of its sales are through ecommerce, the brand has recently begun building out its brick-and-mortar footprint and will use the funding to continue this expansion. The brand last month launched in Wegmans nationwide with the new bottled shakes and has plans to launch into additional retailers in mid-2021, Tate said.

Looking ahead, Tate said innovation is the “prime focus” for 2021, as the company recently doubled its manufacturing footprint and is now building an internal Oats Innovation Lab. The company uses its subscriber base to test potential new flavors of its flagship oats line, launching a Mint Chocolate Chip Cookie flavor last month, and currently testing new flavors like Orange Creamsicle and Lemon Poppy Seed.

“To us, it is so important to have our customer provide insight into product development because we’re able to directly manufacture what they want, which, in turn, creates long standing customer happiness and helps grow our subscriber network,” he said.

Ocean Hugger Relaunches Through Joint Venture With Nove Foods

After pausing operations in June of 2020, plant-based seafood company Ocean Hugger Foods this week announced its relaunch with the formation of Ocean Hugger Inc., a joint venture with Thailand-based food importer, distributor and co-packer Nove Foods Limited.

Founded in 2016, Ocean Hugger operated largely in the foodservice channel, including Whole Foods’ sushi bar, with accounts across the United States, Canada, the Caribbean and the United Kingdom. The company offered two plant-based seafood products: Ahimi, its tomato-based raw tuna alternative and Unami, an eggplant-based version of unagi eel. The company announced last summer it had halted operations due to COVID-19’s impact on the foodservice industry.

Nove Foods Limited is a subsidiary of global manufacturer NR Instant Produce Public Company Limited (NRF), which is publicly traded on The Stock Exchange of Thailand. NRF’s goal, according to Nove Foods chairman Dan Pathomvanich, is to “transform the food system for a more inclusive and sustainable world,” exporting its sustainability produced foods to 30 countries and operating manufacturing facilities across several continents.

Through the venture with Nove Foods, Ocean Hugger will launch its plant-based seafood products globally both in foodservice and retail in late 2021.

“We couldn’t be more excited about our new partnership with Nove Foods,” Ocean Hugger Foods co-founder and CEO David Benzaquen said in a press release. “With our beloved brand and products, and Nove Foods’ strategic capabilities, the sky is the limit for this company.”

Instacart Lands $265M in Funding

Online grocery platform Instacart closed a $265 million funding round, the company announced this week, bringing its valuation to $39 billion, a significant jump since it’s previous valuation of $17.7 billion in October 2020.

The round was led by existing investors such as Andreessen Horowitz, Sequoia Capital, D1 Capital Partners, Fidelity Management & Research Company LLC, and T. Rowe Price Associates, Inc. The company has raised nearly $2.7 billion to date, including funding rounds announced in October and June of last year.

Instacart CFO Nick Giovanni said in a press release that the new financing reflects “the strength of Instacart’s business, the growth our teams have delivered and the incredible opportunity ahead,” as consumers shopping habits continue to shift online. The company currently has partnerships with over 600 retailers, offering delivery and pick-up service across over 45,000 locations. The company added 200 retailers and 15,000 new stores in 2020.

“This past year ushered in a new normal, changing the way people shop for groceries and goods,” he said. “As online grocery penetration increases over the coming years, we’ll continue to invest in our people, products and partners to support all of the communities we serve.”

Instacart plans to use the new funding to increase its team by 50% this year, according to the release, and will also invest in Instacart Marketplace, Instacart Advertising and Instacart Enterprise, which provides ecommerce solutions for retailers.

Nut Butter Brand Natural Way Food Group Raises $1M

Arkansas-based nut butter maker Natural Way Food Group announced yesterday it had secured $1 million from Tusk Private Investment. The new funding will allow the company to “invest in all facets” of the business, co-founder Austin Simkins said in a press release, which includes expanding its retail distribution, bringing new products to market and adding new team members.

“The unique combination of talented founders of a well-run family business, doubling revenues annually with a superior product, in a growing category segment is rare to find and we’re excited to grow Natural Way and support their continued expansion over the coming years,” Tusk managing partner Aaron Pierce said in a press release.

The company, launched in 2018, offers a variety of low sugar peanut and almond butters formulated with olive oil, rather than palm oil. The brand is sold at retailers such as Walmart, Whole Foods, Safeway/Albertsons, Sprouts and Central Market.