RightRice Sold to The Planting Hope Company
Plant-based food and beverage company The Planting Hope Company has acquired Betterer Foods, the producer of legume-based rice alternative RightRice, for $7 million.
The deal includes RightRice’s inventory, key contracts, and brands as well as other intellectual property that Planting Hope “expects to integrate into its business,” according to a press release announcing the deal. The purchase price includes $4 million in cash at the closing as well as two unsecured promissory notes with an interest rate of 5%. The initial note matures March 31 2022 with the second maturing Jan 14 2023.
“The RightRice brand and products add another high potential line of breakthrough innovation to Planting Hope’s growing portfolio of plant-based, planet-friendly, highly-nutritious brands,” said Julia Stamberger, CEO and Co-founder of Planting Hope. “We believe the RightRice products present meaningful innovation with strong growth potential globally.”
RightRice currently offers three lines: a legume-based rice alternative and then a “Medley” and “Risotto” also made with the same grain alternative. The product, which is a mix of lentils, chickpeas, green peas and rice, has 10g-12g of protein and 5g fiber per serving. RightRice is currently sold in 7,000 doors with retail accounts including Whole Foods Market, Wegmans, Kroger, Sprouts, Safeway/Albertsons, Ahold and Meijer.
The line was founded in 2019 by former popchips CEO and founder Keith Belling and came at a time when other brands, such as Banza and Explore Cuisine, had also launched their own legume-based rice alternatives. In March 2019 the company announced it had raised a $5.5 million round of funding led by Strand Equity, with models Ashley Graham, Molly Sims and Karlie Kloss; Kris Jenner, Wesley Pentz (Diplo), Jillian Michael, Impossible Foods then-COO David Lee, Gary Vaynerchuk, Allbirds co-founder Joey Zwillinger and Warby Parker co-founder Dave Gilboa also taking part.
Belling had also previously committed to donating 1% of the company’s equity — which would be paid out upon its sale — to nonprofit No Kid Hungry.
Planting Hope went public on the Toronto Stock Exchange Venture in November, raising $9 million and bringing the company’s total valuation to about $30 million CAD. The company offers a portfolio of plant-based offerings, including Hope & Sesame sesame milk, Mozaic’s veggie chips and Veggicopia dips and snacking olives. In a release, Planting Hope noted that the acquisition would bring the company into the global rice category while allowing it to maintain its plant-forward focus.
Belling signed on as a consultant to the brand as part of the deal, with several of RightRice’s marketing and sales employees also remaining the company. Belling had previously told NOSH the company had a lean full-time staff, electing instead to use outsourced brokers, finance and HR teams.
Aspect Consumer Partners acted as financial advisor and Morrison & Foerster LLP acted as legal advisor to RightRice in the Transaction. Foster Garvey PC and Miller Thomson LLP acted as legal advisors to Planting Hope.
