Powerplant Ventures Leads Funding Round for Beanfields Snacks

April 26, 2017

Plant-focused venture fund Powerplant Ventures, along with Mark Rampolla, a co-founder of Powerplant Ventures and of ZICO Coconut Water which was later acquired by Coca-Cola for $200 million in 2013, and Bruce Friedman, a media investor who is now transitioning toward investments in the health and wellness spaces, have acquired Beansfield Snacks – a bean and rice-based tortilla chip brand. Terms of the deal were not disclosed.

Founded in 2011 by Reed Glidden, his wife Liza Braude-Glidden, and his brother Boy Glidden, Beanfields was launched with a strong social impact mission based on the tenant that business can be used as a driver for good. With that in mind, Beanfields established an equity and revenue-sharing partnership with Los Angeles-based non-profit Homeboy Industries – the world’s largest gang intervention, rehabilitation, and re-entry program that operates a bakery and other food businesses as a means of giving transitioned gang members and former prisoners a means of employment in support of their re-entry to society.

Under the structure of the partnership, Homeboy Industries will receive a 5 percent stake in the future value of the company, while investors, including Rampolla have pledged another 5 percent. In addition, Homeboy Industries will be granted 1 percent of Beanfields’ sales every quarter, reports Nosh.

Rampolla told Nosh that the novel impact structure was definitely an attractive aspect of the deal.

“The long term goal, my dream, is that in 10 years there’s a homeboy grad running the company,” Rampolla said. “At the same time, we’re going after Frito-Lay. So imagine a brand the size of Frito-Lay that has anti-recidivism at its core.”

Beanfields’ mission is also reflected in its product line – plant-based, non-GMO snacks with a simple ingredient list that are beneficial for both consumers and the environment. The company’s products are currently available in 3,000 stores across the U.S. as well as select retailers in Canada, Australia, and the UK.

“I could not be happier that we found partners in Mark and Bruce that not only share our mission to remake the food industry but that also share our values about doing so in a socially responsible way,” said Glidden in a recent statement announcing the deal.

“We are honored that Beanfields -a socially consciousness company with a commitment to giving back-will be entering into an ongoing revenue-sharing partnership with us,” said Tom Vozzo, CEO of Homeboy Industries. “This innovative ownership structure will allow us to continue to scale the impact of our work and serve the community.”

Upon closing of the deal, Reed Glidden will step back from his current position and daily running of the Beanfields business as its president, and will assume the role of co-chairman of the Board of Directors, but the rest of the team will largely remain in place, according to Food Navigator.

The Plant-Based Narrative

Plant-based proteins have possibly been the most prominent narrative within the food sector over the past year.

The plant-based food sector is one of the fastest growing and dynamic investment spaces within the investment universe. Launches of vegetarian startups increased by 60 percent between 2011 and 2015, according to Innova Market Insights reports Inc.  Even more telling of how the category is growing is that more than one-third of consumers now consider themselves to be “open to plant-based products,” according to the Global Food and Drink Trends Report 2016 issued by Mintel, and sales of meat alternative products are expected to reach $5 billion by 2020, reports Latest Vegan News.

Amid this shifting market, Powerplant Ventures was recently launched in 2015, and announced in August 2016 that it had closed a $42 million fund.

Founders of the fund include Mark Rampolla, Kevin Boylan, and T.K. Pillan, the co-founders of the vegetarian restaurant chain, Veggie Grill, and Dan Beldy, the former managing director of Steamboat Ventures, the capital venture arm of Disney.

“Companies are clearly poised to capitalize on the massive shift that is underway to change how we grow, process, distribute and consume food,” Kevin Boylan, partner, Powerplant Ventures told Inc.

 

-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.

 

 

 

 

 

 

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