‘A Massive Opportunity’: Inside Drumroll’s Plans to Expand in the Natural Channel With New Funding

Amidst accelerated growth, refrigerated donut brand Drumroll Snacks is seeking to further expand its distribution footprint in the natural channel with the support of a recent $3 million investment from CPG brand incubator 7 Mile Brands.

“It’s a really exciting moment for us. [7 Mile Brands] not only provides capital but also a ton of strategic guidance, from how to improve your back-end operations to making connections to people within the industry who can guide you in the right direction. They’re helping put cement in the potholes down the road so you don’t hit them,” said Drumroll co-founder Ryan Brothers.

Though Drumroll did not disclose how much capital it has raised to date, it named New Ventures, 4th & 1 Ventures and Dream Ventures as other investors in the brand.

Founded in 2019 by two investment-banker-turned-entrepreneurs, the Austin, Texas-based brand produces a portfolio of gluten-free, low-sugar, high-protein donuts in Chocolate Glazed, Vanilla Glazed and Strawberry varieties. Each serving has 10 grams of plant-based protein and 8 grams of net carbs.

According to Brothers, the capital infusion follows a period of “rocket ship growth,” with the brand having tripled its door count in the past 10 months. Currently, Drumroll is available in around 3,500 stores nationwide, including select Target, Kroger, Wegmans, H-E-B, Albertsons, and Shoprite stores, with a SRP of $3.49 per 3-count single-serve sleeve.

In part, the new funds will be used to support the brand’s presence in these existing accounts as well as its expansion into new ones. Velocities have held steady and, to date, Drumroll has had zero retail churns, according to the brand’s co-founders.

“I don’t think we’ve even hit the tip of the iceberg [in the natural channel], and the main targets [right now] are Whole Foods and Sprouts. There’s a massive opportunity there that is backed up by a lot of the data we see,” said co-founder Hassan Safieddine.

He continued, “I think there are other opportunities [as well], and we’ll assess them as they come. For example, if there are opportunities at the club or big box level, it could make sense in areas where we have a lot of awareness, like in the Northeast.”

The recent capital infusion will also support product line expansion. Drumroll is a refrigerated snacking platform, said Safieddine, and the brand wants to make good on its promise to expand outside of donuts. Ultimately, the brand wants to provide better-for-you versions of classic novelties like Hostess and Grupo Bimbo products.

“We will be debuting a new product at Expo West that offers another use occasion and gives our customers more value, which is why we started the company,” said Safieddine.

In the increasingly crowded better-for-you baked goods category, Drumroll says its key point of differentiation is innovating from a holistic perspective. Whereas some brands feature one or two dietary attributes – such as low sugar or gluten-free – Drumroll provides “a lot of new age dietary trends.”

The opportunity in the refrigerated snacking set is clear. According to Future Market Insights (FMI), the U.S. refrigerated snacks market is currently worth $27.8 billion and is experiencing accelerated growth as consumers increasingly seek healthier snack options. Moreover, 60% of consumers look for snacks that provide additional health benefits beyond basic nutrients.

“The thing that’s really important about this product is that it’s in the refrigerated set, and that’s where we’re going to expand the brand. That’s where we can stay true to a lot of our fundamentals, including low-sugar, high-protein and accessible price points,” said Safieddine.