n!ck's Secures $100M Funding for Healthy Snacks

N!CK’S Secures $100 Million to Expand Healthy Snack Offerings

Swedish food technology firm N!CK’S is rapidly expanding its global presence, focusing on the development and distribution of healthier snack and ice cream options.

Series C Funding Details

The company recently announced a $100 million Series C funding round. This capital will be dedicated to the creation of innovative, healthy snacks and ice cream formulations. These products utilize a unique blend of sweeteners and ingredients, while significantly reducing calorie content and eliminating added sugar.

Kinnevik, Ambrosia, and Temasek jointly led the investment, with participation from Gullspang. According to Carlos Altschul, N!CK’S CEO North America, this latest funding brings the company’s total investments to $160 million, as reported to TechCrunch.

Origins and Founding Principles

N!CK’S was founded in 2017 in Europe. The impetus for its creation stemmed from health challenges faced by founder and head of R&D, Niclas Luthman, and his mother – a diabetes diagnosis for his mother and a pre-diabetic diagnosis for himself.

Altschul explained that Luthman identified a gap in the market. He believed that advancements in food science could deliver better-for-you solutions, rather than relying on individuals to drastically alter their eating habits.

Product Portfolio and Brand Vision

Currently, N!CK’S offers ice cream, snack bars, and confectionery products in Europe. However, Altschul positions N!CK’S as more than just a food company; it’s a snacking brand aiming to reshape consumer culture.

The company’s competitive advantage lies in its dedication to research and development, and the innovative ingredients that underpin its product line.

Recent Growth and Market Leadership

Over the past two years, N!CK’S has experienced substantial growth. The company entered the U.S. market in late 2019 with its ice cream line and has since achieved leading velocity per store within that category.

Furthermore, N!CK’S launched a vegan dairy line, incorporating Perfect Day’s animal-free dairy proteins and plant-based fat alternatives.

The company’s direct-to-consumer (DTC) business, launched in 2020, has consistently held the top position in DTC ice cream delivery since July. This year also saw the introduction of a Keto protein bar line, initially available through DTC channels and Amazon, with plans for retail expansion by year-end.

Between 2020 and 2021, N!CK’S significantly expanded its retail footprint, growing from 4,500 to 6,700 stores in the U.S. A partnership with WHSmith facilitated expansion into the U.K. market.

Future Plans and Investment Allocation

The newly acquired funding will be used to accelerate the company’s growth strategy. This includes doubling its store presence in both the U.S. and Europe, expanding its team, increasing marketing efforts, and investing further in research and development to facilitate the launch of new products.

Investor Perspective

Magnus Jakobson, investment director at Kinnevik, highlighted the attractiveness of the food industry, citing the growing trends of sustainability and health consciousness as key drivers of demand and brand building.

Jakobson praised N!CK’S impressive traction, particularly its initial success achieved independently. He noted that this success has attracted partnerships with other food technology companies.

“The way people live and consume food is evolving, creating opportunities for new brands to emerge,” Jakobson stated. “Companies like Oatly, Beyond and Impossible paved the way, but we are now witnessing more breakthroughs in technology and innovative approaches to reaching consumers with distinct brands. N!CK’S is a particularly promising example, demonstrating significant potential even in the early stages of this industry.”