Amara Raises $12M for Nutrient-Dense Baby Food | Food Tech News

Concerns Over Baby Food Safety Drive Investment in Nutritious Alternatives

A report released by the U.S. House Committee on Oversight and Reform in February revealed the presence of “dangerous levels” of toxic metals in certain commercial baby foods, prompting significant parental concern.

This discovery spurred widespread media coverage regarding the potential impacts and preventative measures, including careful ingredient scrutiny. Consequently, heightened nutritional awareness has proven beneficial for companies specializing in healthier food options for both babies and older children.

Amara Secures $12 Million in Series A Funding

Amara, a burgeoning startup in this sector, recently announced the successful completion of a $12 million Series A funding round. These funds will be utilized to broaden the company’s product portfolio of nutrient-rich foods designed for children up to seven years of age.

This investment follows an earlier $2 million seed round secured 18 months prior, and coincides with substantial company growth – expanding from distribution in 100 stores to 1,000.

The current funding round was spearheaded by Eat Well Group, a plant-based foods company, in a majority partnership. Founder and CEO Jessica Sturzenegger informed TechCrunch that the deal values Amara at $100 million, with existing management remaining in their positions.

Initial investors from the seed round, including Pharmapacks, also participated in this latest funding effort.

Technological Innovation and Product Development

Sturzenegger and her team initially launched Amara’s products in Whole Foods stores in 2017, following three years dedicated to technology development.

The company has created a unique, proprietary technology that effectively preserves the flavor, texture, and nutritional value of fresh baby food within a shelf-stable pouch. Currently, Amara offers 10 distinct SKUs and a baby food line formulated to be mixed with breast milk, formula, or water.

Addressing Cost and Nutritional Concerns

Many packaged foods available in grocery stores are often fruit-based and contain high sugar content, typically priced between $3 and $7 per meal, and require refrigeration or freezing, as Sturzenegger points out.

In contrast, Amara’s meals are available starting at $1.80, aligning with the company’s commitment to providing accessible products for families across various income levels.

This year saw the introduction of Amara’s Yogurt Smoothie Melts, which Sturzenegger highlights as “the only melt-in-mouth snacks for babies and toddlers without any added sugar.”

The Importance of Early Nutrition

“Research indicates that dietary intake during the first seven years of life significantly influences cognitive function, emotional well-being, and overall performance later in life,” Sturzenegger explained to TechCrunch.

She added that while the phrase ‘You are what you eat’ is a common saying, scientific studies validate its accuracy, and parents are increasingly recognizing this connection.

Growth and Increased Demand

Prior to securing the Series A funding, Amara was already operating profitably on each order. The company experienced a threefold year-over-year growth rate organically and through positive word-of-mouth referrals.

However, the February report on baby food safety further amplified attention towards Amara, attracting interest from both parents and venture capital firms.

“Amara has demonstrated a remarkable capacity for scaling through both retail distribution and e-commerce strategies,” stated Marc Aneed, president of Eat Well Group, in a press release. “The funding and expertise provided by Eat Well Group will accelerate Amara’s expansion as we move into 2022.”

Future Expansion and Market Potential

The funding will facilitate Amara’s rapid growth to meet increasing demand, with investments directed towards hiring, product development, and brand awareness initiatives.

Beyond grocery stores, the company currently sells its products through its website, Amazon, and select grocery stores, primarily in California, as well as nationwide through Sprouts. Sturzenegger intends to expand Amara’s presence in additional grocery stores over the next 12 months.

The growing emphasis on nutrition is creating opportunities for numerous startups to disrupt the baby and child food market. The global baby food market was valued at $67.3 billion in 2019 and is projected to reach $96.3 billion by 2027, with the U.S. market contributing $6.3 billion in current revenue.

Investment Trends in the Infant and Child Food Sector

Venture capital firms are actively investing in food companies focused on infants and children, exemplified by Little Spoon’s $44 million Series B funding in July and Serenity Kids’ $7 million Series A funding in June, which focuses on low-sugar baby food options.

“The market offers ample space for diverse companies to cater to different parental preferences and price points,” Sturzenegger noted. “Our focus is on providing wholesome food for all. To truly transform the eating habits of future generations, accessibility is paramount.”