Rapidly Growing Disruptive Snack Brand PeaTos® Secures Cereal Giant Post Holdings to Lead $12.5M Series B Round
PeaTos®, a snack chip brand, has raised $12.5M in a Series B round led by Post Holdings (NYSE:POST), following a $7M Series A six months prior. PeaTos aims to revolutionize snacks by incorporating nutrient-rich peas and eliminating artificial ingredients. The brand has shown significant growth and popularity, with products available in over 4,700 retailers, including Kroger and Sam’s Club. The funding will support its strategic plans and enhance its direct-to-consumer initiatives. CEO Nick Desai emphasizes a commitment to flavor without compromising nutrition.
- Secured $12.5M in Series B funding led by Post Holdings.
- Experiencing rapid growth with products in over 4,700 retailers.
- Increased direct-to-consumer sales through new services like subscriptions.
- None.
Less than six months after raising
Cereal Giant POST invests in PeaTos revolutionary snack brand. (Photo: Business Wire)
“The days of trading flavor for nutrition are behind us,” says PeaTos Brand Founder and CEO Nick Desai. “Today’s consumers will not accept a compromise and that is the holy grail of snacking PeaTos makes good on!”
PeaTos has used proprietary technology and state-of-the-art innovation to create an incredible product that has that rare “WOW” factor. PeaTos have 2X the protein and 3X the fiber of their famous counterparts and none of the artificial junk, and yet they taste better. As a very young brand, PeaTos has been wildly successful in both gaining distribution and brand awareness by being resourceful in navigating the consumer-packaged goods (CPG) category. PeaTos has gone head-on at the competition, which has monopolized the category for decades in a classic David v Goliath battle. The brand has succeeded by utilizing an over-the-top and amusing brand voice, leveraging unique partnerships, and strengthening relationships to a growing fan-base across the digital landscape. This next round of funding will enable the brand to further these efforts.
As consumers find themselves migrating into the online space with more frequency over the course of this pandemic, a brand’s relevancy depends on having a strong presence in both traditional retail and direct-to-consumer channels. PeaTos has developed a very strong and loyal online following and experienced massive growth in its direct-to-consumer business by adding new services such as subscriptions and a loyalty program to round out the new site launch.
“We are honored by this investment from Post and their confidence in the PeaTos brand,” said Nick Desai, founder and CEO of PeaTos. “Post has a long history of success in the CPG space and we are honored to have them as part of our mission! The proceeds of this funding round will give us the ability to further execute on our ambitious strategic plan.”
Howard Friedman, President and CEO of Post Consumer Brands, said, “We are very excited to begin our partnership with Nick and the Peatos brand. We believe it has a bright future and we can learn a lot from their entrepreneurial culture and gain an understanding of the fast growing snacking space.”
PeaTos® Brand is available in over 4,700 retailers, including Kroger and its banner stores like King Soopers, Fred Meyer, Ralphs, Dillons, and Smith's. PeaTos® are also available at Vons, Pavilions, Albertsons, Safeway, Sprouts, and Sam’s Club. The perfect go-to snack, PeaTos are seeing an uptick in the foodservice sector with increased popularity in the tech space as well as quick-service restaurants like Lee’s Sandwich and Fat Shack. PeaTos are also witnessing heroic growth in digital, with online purchases at PeaTos.com accelerating month over month.
Since securing partners like Heavyweight contender Francis Ngannou and Fortnite Gamer Bugha, the brand’s social following has tripled in size with continued growth and engagement. The “PeaTos vs Cheetos” marketing efforts have proven out in the social media space, especially with the millennial and Gen Z crowd. The brand has also planted stakes within many niche dieting communities and is partnering with fitness and lifestyle brands. PeaTos is making good on the promise to revolutionize snacking, and the brand is poised for explosive growth in 2021 and beyond.
About Post Holdings
Post Holdings, headquartered in St. Louis, Missouri, is a consumer packaged goods holding company operating in the center-of-the-store, refrigerated, foodservice, food ingredient and convenient nutrition food categories. Through its Post Consumer Brands business, Post is a leader in the North American ready-to-eat cereal category offering a broad portfolio including recognized brands such as Honey Bunches of Oats®, Pebbles™, Great Grains® and Malt-O-Meal® bag cereal. The company was founded in 1897 by the legendary C.W. Post, who introduced the Grape Nuts brand to the world.
About PeaTos®
Rapidly growing revolutionary snack brand PeaTos® is advancing its mission to create a new class of snack chips that offer all the taste and crunch of America’s top selling "junk food" like Cheetos® and Funyuns® but by augmenting the old-school base of corn with peas and removing the artificial stuff. Now you get all that “junk food” chip taste you crave without any of the junk. PeaTos® is available in over 4,700 retailers including Kroger and its banner stores like Ralphs, King Soopers, Fred Meyer, Dillons, and Smith's. PeaTos® are also available at Vons, Pavilions, Albertsons, Safeway, Sprouts, Sam’s Club and online on Peatos.com, BetterSnacks.com and Amazon.com.
Learn more at peatos.com, and find us on Facebook.com/peatosbrand, Twitter and Instagram @peatosbrand.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210202005136/en/
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