August 24, 2016

Advantage Capital Agribusiness Partners, LC (ACAP) announced a $2 million investment in California-based Hip Chick Farms – producer of a line of fully cooked, organic poultry foods and entrées.

Founded in 2013 by Jennifer Johnson and Serafina Palandech, who were both unsatisfied with the conventional production methods and products offered on the market, Hip Chick Farms sources its ingredients from local farms, cooks chickens raised without antibiotics and fed a non-GMO, plant-based diet, and produces foods without the use of fillers or starches.

“Hip Chick Farms is setting a new standard for products in the frozen food aisle,” said Tyler Mayoras, principal at Advantage Capital, adding, “This is a company that is changing the marketplace and proving that frozen food can be both healthful and tasty.”

This investment by ACAP comes at a pivotal moment for Hip Chick Farms, which has launched eight products to date, of which five are labeled as organic. The company plans to expand its portfolio next year as the ACAP investment will support marketing expansion to larger retailers including Target and Kroger.

ACAP’s investment also follows closely behind Hip Chick raising $500,000 in July in exchange for a 35 percent stake in the company for CNBC’s West Texas Investors Club where investors Wayne “Butch” Gilliam and Mike “Rooster” McConaughey noted high consumer demand for highly transparent foods.

ACAP is a $154.5 million fund partnership between Advantage Capital Partners and nine Farm Credit organizations that is licensed as a Rural Business Investment Company (RBIC) by the U.S. Department of Agriculture (USDA). The fund focuses on businesses involved in the production, processing, and supply of agricultural products and on providing funding to rural U.S. agribusinesses.

Some of ACAP’s early investments include funding for irrigation management systems company Hortau, certified organic herb supplier Shenandoah Growers, bulk botanical and herb supplier American Botanicals, and crop residue supply chain solutions company Pacific Ag.

ACAP’s last two investments, however, have been focused further upstream. Last month the fund announced a $3.7 million investment in Austin-based startup, NuturMe, a maker of organic quinoa-based baby and toddler foods and snacks, before announcing its latest commitment to Hip Chick Farms. Both are companies that cater to consumer demand for transparent, non-GMO ingredients with a focus on no added fillers, preservatives or sugars.

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Lynda Kiernan