April 29, 2017

Kidfresh, a leading and rapidly growing brand of frozen meals targeted for kids, announced that it has closed on a significant $10 million Series B led by Monogram Capital Partners, and including AccelFoods and Emil Capital Partners, which previously led the company’s Series A in 2013.

Founded in 2007 in New York by co-founders Matt Cohen and Giles Deloux who were frustrated by the lack of nutritious food options for their children, Kidfresh’s product line includes meals developed with the help of pediatric nutritionists and chefs that contain no artificial colors, flavors, or preservatives, and contain hidden vegetables in their formulations.

“We want children to have better food choices than we had as kids,” said Cohen. “Today’s parents are saying no to processed foods and yes to nutritious and convenient meals for their children. We are creating a solution for them and a destination in the frozen food aisle.”

The brand has seen 110 percent year-on-year growth, and is now being sold in 9,000 stores including Walmart, HEB, Kroger, Harris Teeter, ShipRite, Fresh Direct, Wegmans, and Whole Foods retail outlets. Since its founding, Kidfresh has sold 12 million meals, and is now selling 500,000 meals per month, reports Project Nosh.

“Today, we are the best kept secret. Our distribution is broad, but our awareness is still limited. We know that eight out of 10 moms that try Kidfresh for the first time become repeat customers and [are] loyal,” Cohen said. “They stick, they don’t leave the brand and we have almost no attrition. So we know that we have built something that is connecting with consumers.”

Jordan Gaspar, co-founder and managing partner of AccelFoods, which invests in early-stage funding rounds and innovative brands in the food and beverage sectors as they scale up and achieve high rates of growth, notes how she and the firm’s co-founder, Lauren Jupiter, can identify with the value of Kidfresh.

“As working moms, we have been looking for a platform focused on nutrition for young families since we launched AccelFoods,” said Gaspar. “It is time for innovation in our children’s meal solutions. We look forward to supporting a banner year for Kidfresh as it continues its mission to transform the food that working parents offer their families.”

Three quarters of the funding from this round will be earmarked to support brand marketing initiatives such as demos, social media platforms, and promotions, according to co-founder Matt Cohen – a decision that is imperative to the brand’s future success according to Food Dive.

Food Dive points out that the market for convenience foods targeted toward kids is extremely noisy, with children seeing an average of 11 advertisements for foods and beverages per day – most of which are not health-conscious. However, Kidfresh is well positioned to satisfy the top two drivers of food purchases by parent – products that kids want, and that parents know are nutritious. However, the brand will have to undertake a serious push to spread its message and branding.

“In today’s often crowded consumer landscape, Matt and Gilles have built a brand with a strong reason to exist in a category of frozen food that is starved for innovation,” said Jared Stein, founder and partner with Monogram Capital Partners. “At its core, Kidfresh is on an authentic mission to provide parents with food offerings that are equal parts healthy and convenient at an approachable price point. We believe the next generation of moms will increasingly look to Kidfresh as a trusted partner in feeding their families, and look forward to supporting the team in this exciting next phase of growth.”

-Lynda Kiernan

Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration please contact Ms. Kiernan at lkiernan@globalaginvesting.com.