March 2, 2021

By Lynda Kiernan, Global AgInvesting Media

Did you know that the vast majority of the blue dye used today to color the jeans we wear no longer comes from indigo plants, but is synthetic and made through petroleum-based processes that rely on toxic chemicals?   I didn’t, either.  

Stony Creek Colors has been working since its founding in 2012 to reverse this trend, by developing proprietary systems to transform the dye supply chain along with a full agricultural value chain for plant-based indigo.

Company founder and CEO Sarah Bellos said that she launched the company when she and her sister began a company that offered naturally-dyed clothing, but discovered that a supply chain for natural dye at scale didn’t exist. 

“That’s when I decided to dig in, roll up my sleeves, and do something about it,”stated Bellos on her company website.

“I have to admit, it was daunting at first. But I just knew it had to happen. And my experience working in agriculture and sustainable business provided a unique vantage point. I could see what was broken, and I wanted to help fix it.”

Today, Stony Creek Colors is the leading producer of plant-based, high-purity indigo dye that is able to meet the demand for natural colorants, and is produced in such a way to profitably supply the market while enabling a transition from synthetic, petroleum-based dyes.

“Today, the synthetic indigo used in denim relies on petroleum-based processes that leave behind toxic residue on jeans,” said Bellos. “Stony Creek Color’s plant-made indigo is free of these toxins, providing a healthier and more sustainable solution for coloring denim. In addition, our indigo-producing crops create a high value rotation opportunity for farmers, sequester carbon in the soil, and reduce the need for nitrogen fertilizers.”

Identifying Stony Creek Colors as aligning with the growing narrative around plant-based ingredients, St. Louis-based agricultural investment firm Lewis & Clark AgriFood has led a $9 million Series B for the company. Also participating in the round were Innova Ag Innovation Fund, iSelect, and return investors from previous rounds, along with Green Spark Capital, and Next Wave Impact.

“We are extremely proud to partner with Sarah and Stony Creek Colors, which is one of the few ag tech startups led by a female founder,” said David Taiclet, general partner & managing director, Lewis & Clark AgriFood. “This investment aligns with our thesis built around the rising consumer focus on natural and sustainable plant-based ingredients.”

For many tobacco farmers, Stony Creek Colors has provided a way to transition away from tobacco, which can be labor-intensive, susceptible to disease, and difficult to grow, toward a more sustainable and profitable crop. 

Stony Creek has developed a method of planting indigo that uses the same equipment as tobacco, and specialized equipment for harvesting, which is done by Stony Creek, who then pays each farmer per acre of successful crop.

The company then extracts the indigo from the harvested plants at its 80,000-square-foot warehouse, transforming the dye into a natural powder to be used by companies, such as Patagonia. 

“We are impressed with what Sarah and her team have built in Springfield, Tennessee, recognizing how incredibly challenging it is to introduce a “new” crop to an area, establish an industrial processing method and acquire customers,” said Dean Didato, general manager, Innova Memphis, which invested through its Ag Innovation Fund IV.

“The ingenuity here is in Sarah’s vision to offer tobacco farmers with an alternative high margin specialty crop that largely parallels current farming practices and more fully utilizes pre-existing capital equipment, bringing those farmers new means to generate revenue.”

The company stated that the capital acquired through this round will enable Stony Creek Colors to scale their operations to allow for a geographic expansion of its proprietary indigo and processing methods, which in turn will bring more natural indigo to more denim mills.

“We are pleased to partner with Lewis and Clark AgriFood to enable our expansion with investors holding deep agriculture and operating expertise and a focus on sustainable growth in emerging sectors,” said Bellos.

“Customer demands for cleaner color and the removal of toxic chemicals from their products will not wane. Our proven plant-based indigo solutions offer an exciting opportunity for brands to exceed customer expectations. This investment will leverage our new technology, from seed to extraction, to help bring Stony Creek Colors through a phase of rapid growth.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.