June 13, 2018

Gluten-free, paleo and non-GMO baked goods manufacturer Soozy’s announced that it has closed on $2.5 million of seed capital led by BIGR Ventures and AccelFoods. Launched in the fall of 2017, Soozy’s  has gained traction with consumers interested in eliminating grains, gluten, dairy, peanuts and soy from baked goods that deliver the same taste profile, texture and appeal of conventional products. All of the company’s products are Certified Gluten-Free, Certified Paleo, Non-GMO Project Verified and contain no gums, fillers, refined sugars or additives.

The global gluten-free market is expected to exceed $7.5 billion by 2020, according to Statista. There were 190 paleo-labeled products introduced in the US in 2016, which is a fraction of the 20,ooo new food and beverage products launched each year, but even so, some analysts are predicting it could reach heights similar to that of the gluten-free category.

Supply Chain Remains an Issue for Market Growth

While consumer demand has been growing, a shortage of non-GM compliant grains and other ingredients has been a challenge, leading to reliance of imports of dubious provenance. This has led to a number of investments in both supply chain and transparency-related ventures. Notably, Pipeline Foods, launched in 2017 by AMERRA Capital Management and Pipreline Opportunity Ventures to developing sustainable global supply chains to meet demand for organic and non-GMO ingredients and grains.

On the technology side, several companies are looking at blockchain as a possible solution for creating transparent supply chains for tracing food safey and provenance.

BIGR Ventures, founded by industry veterans Carole Buyers, Bill Weiland and Duane Primozich, is a growth equity fund providing value-added, strategic partnership and capital to promising early-stage natural and organic products. With the seed round, Carole Buyers, managing partner of BIGR, will join the company’s board of directors.

“Nearly a decade ago, I had a front-row seat to the emergence of the gluten-free category and led the acquisitions of the number one and number two brands in the market at that time. We see the opportunity in grain-free today as very similar to gluten-free 10 years ago. Soozy’s is exceptionally well-positioned to capitalize on this emerging market,” said Buyers. 

David Nitchman, GAI Media