• 📄 Kroger/Albertsons Release Divestiture List
• 🏭 Ahimsa Companies Buys Good Catch Facility
• 🚚 Distribution: Sunnie Lands in Sprouts
• 🥑 PepsiCo’s Latest Accelerator Class
• 🤝 Sweet Deal: Incredo Partners With Sucro

Thirty-year-old Lotus Foods has weathered plenty of challenges with minimal outside investment. But today, the regenerative and heirloom rice, noodle and ramen producer is going after growth, announcing it has raised $22.5 million from San Francisco-based firm Grounded Capital to “scale its impact,” Lotus CEO Andrew Burke told Nosh. 

“What makes [Lotus founders] Ken [Lee] and Caryl [Levine] very unique is they take the long view – we wanted to make sure that we found the right partner,” Burke said, explaining that the team spent nearly three years searching for the right investor. 

Stephen Hohenrieder, CEO of Grounded Capital, and William Culler-Chase, principal, will join Lotus’ board of directors as part of the deal. 

Burke said internal conversations about how to finance the company’s next stage and scale its smallholder farming network have been simmering for a long time. He joined Lotus in 2019 as the company’s first c-suite executive, serving as president and COO, before moving into the CEO spot in 2023.

The investment decision was based around the idea of increasing consumer exposure while deepening the company’s ability to positively affect its base of regenerative farmers, Burke said.

“We had two decisions: go seek outside capital to accelerate that, or continue what they were already doing.”

The new funds will be deployed in three main areas: First, Lotus intends to deepen its investment within its existing farmer supply network and support those partners’ continued transition to regenerative agricultural practices. Lotus farmers currently use a unique growing method known as System of Rice Intensification (SRI) which it claims uses half the amount of water and 90% less seed and emits 40% less methane while producing two to three times greater yields. 

Second, the company will expand its supplier network and its growing method to new regions. That means Lotus will begin to bring its unique growing practices, a process which it has trademarked under the name More Crop Per Drop, to new countries. Currently, Lotus sources from farmers across Cambodia, Thailand, Indonesia, China and India.

And third, the funds will be put towards the company’s own infrastructure, Burke said, which will “allow us to broaden our customer base so that we can bring these great products to more people.” In practice that will see Lotus expand to additional retail doors, grow its portfolio and place a greater focus on engaging with consumers.

“We want to bring the Lotus story to a lot more people,” said Burke.

Nosh Insiders can access the full story to learn why Lotus believes Grounded is the “perfect partner” and more details on its plans for the new cash.

Kroger and Albertsons have released the full list of planned divestments to C&S Wholesalers – including 579 stores, six distribution centers and one production plant. The move comes after the Federal Trade Commission’s (FTC) claimed in a lawsuit that the plan included a “hodgepodge” of unconnected stores.

🛒 The majority of the stores are in the West including Washington State (124), Arizona (101), California (63) and Oregon (62) with a scattering of locations throughout the rest of the country.

🤨 It remains to be seen if releasing the details of the planned divestiture will stave off the various lawsuits the grocery mega-merger is facing, but it appears to give credence to the two grocery stores’ claims that the stores being divested are not random.

🏪 The majority of the stores are Albertsons’ chains, like Safeway and Vons, as well as Kroger banners Mariano’s in Illinois and QFC in the Pacific Northwest.

📞 The two grocery chains started notifying staff at the affected locations, according to a Bloomberg News story.

Go Deeper: 166 Stores and Support Assets Added To Updated Divestiture Plan With C&S

Ahimsa Companies has acquired a plant-based production facility in Heath, Ohio, from Gathered Foods, the maker of alt-seafood brand Good Catch.

🌱 ICYMI: Last month, the newly established holding company announced its acquisition of Wicked Kitchen and its associated brands, Good Catch and Current Foods, for an undisclosed sum as part of an “industry-wide consolidation effort.” 

🐟 Gathered Foods, which owns a pilot plant and innovation center in Vancouver, B.C., will remain a strategic operating and intellectual property (IP) partner for both the facility and Ahimsa Companies’ broader portfolio.

💬 "This strategically located plant is a best-in-class production facility and is one that Ahimsa is keen to optimize and utilize in support of the broader industry. The plant is a core asset in our consolidation strategy," said Matt Tullman, Group CEO of Ahimsa Companies, in a statement.

Go Deeper: Read more about the future of Wicked Kitchen under Ahimsa Companies.

🍕 Snack dipper brand (and Nosh Pitch Slam 2022 winner) Sunnie will roll out nationwide to Sprouts, as well as expand into additional Target stores and the Southern Pacific Region of Whole Foods, bringing the brand’s total store count to over 600. 

🍨 Alec’s Ice Cream shared via LinkedIn that its Meyer Cookie Lemon and Strawberry Crumble flavors are now available at all Gelson’s Market locations, growing the brand’s SoCal footprint.

🫒SIMPLi is growing its partnership with Whole Foods, announcing its sustainably-sourced Extra Virgin Olive Oil and Olive Oil Blend are now available at all Whole Foods locations, building on its bean and grain lines national presence. 

🍝 Globally-inspired noodle chip maker S’NOODS has launched in 160 Fresh Market locations across the East and Mid Coasts. The retailer will carry all three snack varieties – Cavatappi Carbonara, Rigatoni Basil Pomodoro and Spicy Miso Ramen – for $6.99 per 3 oz. bag. 

🥩 Unlimeat, a Korean vegan food company, has landed its Korean BBQ original, Bulgogi and Pulled Pork offerings at 400 Sprouts locations nationwide, expanding the brand’s U.S. market presence.

Eight early-stage startups have been selected for PepsiCo’s Greenhouse Accelerator Program, marking the company’s ninth overall cycle and the second year its “Juntos Crecemos” – or, Together We Grow – edition has returned with a focus on brands “inspired by Hispanic flavors and culture.”

😋 The eight finalists in the incubator include NA cocktail brand JAS, plant-based pasta maker JaziLupini, Mexican-inspired prebiotic soda Mayawell, snack brands Nemi and PAKTLI, prickly pear water Pricklee, ready-to-toast foods brand TOAST-IT and artisanal sauce and salsa manufacturer ¡Ya Oaxaca!

🧮 The mentorship program runs for five months, and each participant will receive a $20,000 grant to help grow their business. One participant will receive an additional $100,000 at the end of the session.

🌶️ Last year spicy fruit snacks brand Chuza won the additional sum during the inaugural Junto Crecemos accelerator. 

Food tech company Incredo, Inc. announced today a partnership with sugar refiner Sucro Limited to produce and expand the availability of its sugar-based sugar reduction solution, aptly known as Incredo Sugar, across the U.S. 

⏩ Beginning this month, Sucro will add Incredo Sugar to its portfolio of value-added specialty products, which also includes a focus on organic products such as its SweetLife by Sucro Organic Cane Sugar. 

👀 Incredo Sugar is a cane sugar-based reduction food tech solution that provides the same sweet taste with up to 50% less sugar and no sugar alcohols. The company said its products help manufacturers and CPG companies “significantly” reduce sugar contents in their offerings.

🏭 The new partnership coincides with Sucro’s new refinery construction in University Park, Ill., to meet increased market demand for value-added specialty products. 

💭“We are prepared to meet the growing consumer demand for lower sugar products with our commercial-ready solution. Our collaboration with Sucro will allow us to distribute Incredo Sugar to an array of new customers,” said Kelly Thompson, co-CEO of Incredo, in a statement.