Noops Raises $2M for Plant-Based Pudding | Food Industry News

Noops Secures $2 Million Funding Extension

Following a recent $2 million pre-seed investment, plant-based pudding innovator Noops has announced a further $2 million in funding, spearheaded by Lerer Hippeau.

Company Origins and Founding Vision

The Long Island-based company was established in 2019 by Gregory Harry Struck, a co-founder of Hungryroot. His journey towards a plant-based lifestyle began during his battle with cancer.

Struck explained to TechCrunch that the company’s inception stemmed from personal necessity. Facing dietary restrictions, he began to contemplate the relationship between consumption and overall health.

He vividly remembers questioning the lack of innovation within the pudding aisle while grocery shopping. This sparked a period of experimentation in his home kitchen, often utilizing his children as taste testers.

Product Innovation and Key Features

After perfecting a recipe, Struck began sharing his pudding with friends and family, ultimately leading to the launch of Noops. The company’s initial offering is an oat milk-based line.

This product is certified organic, devoid of dairy and gluten, and enriched with prebiotics, plant protein, and fiber. Importantly, it contains no added sugar and is available in classic flavors such as chocolate, caramel, mocha, and vanilla.

Investment Details and Future Plans

This investment round included participation from Siddhi Capital, Idea Farm Ventures, Simple Food Ventures, Animal Capital, and Alan Mitzner of American Pie. The total funding raised by the company now amounts to $5 million, according to Struck.

He expressed that this funding signifies a strong vote of confidence from Lerer Hippeau, believing Noops can redefine the category. The company has a clear vision for the future and intends to play a pivotal role in it.

Advisory Board Expansion

Larry Appel, the former CEO of The Fresh Market, and Benjamin McKean, CEO of Hungryroot, will be joining Noops’ advisory board as part of this investment.

Market Opportunity and Investor Perspective

Andrea Hippeau, a partner at Lerer Hippeau, highlighted Struck’s background and vision as key factors in the firm’s decision to invest. She believes he has the potential to significantly impact the plant-based food sector.

The plant-based foods market reached a valuation of $29.4 billion in 2020 and is projected to expand to $74 billion by 2027, as reported by Bloomberg Intelligence.

Hippeau views this category as “the next generation of consumables,” poised to disrupt numerous food segments. While plant-based alternatives have emerged in areas like meat and seafood, the pudding category remains largely untapped.

Incumbent Challenges and Market Gaps

Struck noted that approximately $50 billion in annual sales from the top 25 U.S. food and beverage companies can be attributed to snack brands, such as Jell-O, which utilize animal byproducts and have seen minimal changes since their inception in 1897.

Hippeau emphasized that retailers are actively seeking plant-based alternatives. Noops offers a pudding that delivers familiar flavors with enhanced nutritional benefits, directly competing with yogurt.

She added that Struck and his team already possessed established relationships within the retail landscape when they approached the firm.

Funding Allocation and Growth Strategy

The new funding will be allocated to expanding Noops’ distribution network, forging new partnerships, and making strategic hires in finance and sales.

The company also plans to onboard a second manufacturing partner to triple production capacity and introduce new flavors and product lines, including a yogurt alternative within a breakfast-focused range.

Current Availability and Expansion Plans

Noops officially launched in the first quarter of 2021 and is currently available in over 750 retail locations, including Sprouts Farmers Market and Wegmans Foods Markets. The company has already surpassed its projected growth since its pre-launch phase in 2020.

A launch in Fresh Thyme is planned for the current year.