Atlantic Sea Farms Adds Funding, New CEO
Atlantic Sea Farms (ASF) is proving different types of green come with kelp cultivation.
The seaweed ingredient wholesaler and CPG brand has netted $3.8 million in equity funding to support its expansion in foodservice and new retail products that will launch later this year. The vertically integrated business also announced that its CEO Briana Warner will be transitioning to a new role as strategic advisor.
Third Nature Ventures led the funding round with additional capital from True Wealth Ventures and Builders Bridge. All three investors are recommitted after participating on previous funding rounds.
“People know us best through our retail products, but our ingredient and foodservice channels are currently expanding, which helps us to achieve our impact of increasing opportunities for fishermen to regeneratively grow seaweed,” said an ASF spokesperson.
Board member Mikel Durham will become interim CEO starting at the end of the month.
“[ASF] is an extraordinary model pioneering ocean farming, seed research and market demand development,” said Durham in a statement. “It is an honor to support the team and shareholders through this transition.”
Along with being a board member of the Marine Stewardship Council and Yum China, Durham brings leadership experience as the former CEO of American Seafoods for over five years and chairperson at Genuine Alaska Pollock Producers for three years. She has also held executive roles at CSM Bakery Solutions, PepsiCo and Cadbury.
Durham is expected to use her experience in foodservice and B2B sales to build demand for kelp in similar ways to her work at Genuine Alaska Pollack. In her time there, she helped shift consumer understanding of pollock away from being called “whitefish” and, similarly, “imitation crab” to “seafood surimi,” a spokesperson said.
The company also anticipates Durham will help build a structure where Maine kelp farming can be replicated to other seaweed species and in other regions.
The new investment will go towards capitalizing ASF’s footprint in foodservice as well as its expanding wholesale business. The farming operation network already provides kelp to brands like Bluebonnet Nutrition, Thorne, Navitas, Polkadog, Seacharrones, GEM Real Food Vitamins and Credo Beauty, among others.
ASF has built a network of kelp farmers to help service both its ingredient wholesale business as well as develop its branded products segment. The company refreshed its branding in October 2023 to better message that connection to consumers.
Although there has been a steadily growing demand for kelp-based foods, it is unknown what the ceiling is for the environmentally sustainable ingredient.
The global kelp market size is estimated to be $3.1 billion in 2023 and is projected to reach $5.1 billion by 2032, according to data from Business Research Insights.
New entrants to the category like Snacks from the Sea’s brand Kelpie Chips see an opportunity in snacking while many wellness and supplement makers are using the ingredient in powders, beauty products and other food offerings.
In August, kelp burger brand Akua abruptly shuttered its operations, citing packaging, manufacturing, warehouse and shipping “catastrophes.” The brand tried a variety of food products with its hero ingredient from jerky to pasta to spices over its seven years before landing on seaweed-based patties.
