by Lynda Kiernan

California startup 4th & Heart, an artisanal company that makes a line of grass-fed ghee products, announced it has raised $7.5 million through a Series C led by Harbinger Ventures, an early-stage private equity investment firm focused on supporting female-led startups. 

Additional mission-driven venture investors participating in the round include Cambridge Companies SPG, Blueberry Ventures, Boulder Food Group, Monogram Capital Partners, Finn Capital Partners, and Everplus Capital.

Founded in Venice, California, in 2015 by Raquel Tavares, who also founded 4th & Heart’s parent company Tava Organics Ltd., 4th & Heart was launched with a mission to revolutionize the modern pantry through the innovation and development of gourmet products utilizing the ancient Ayurvedic staple, ghee, or clarified butter. The company currently has 21 skus of spreads, oils, sprays, and chocolate spreads that are available at more than 10,000 retail locations including Amazon, Whole Foods, Kroger, Sprouts, and others. 

Ghee plays directly into current wide-sweeping trends in diet and food consumption. It is created by heating butter until the milk solids separate, then skimming them off and evaporating the water content out, leaving a shelf-stable “healthy fat” popular in keto and Whole30 diet plans. 

Although processes for making ghee differ, (some use heating, some a centrifuge to separate out the fat) 4th & Heart makes their products by heating grass-fed butter sourced from New Zealand, and then using a specialized cooling process before filtering their ghee three times prior to packing, Tavares told Food Navigator. 

It is credited with being high in vitamins E, A, and K, contains butyric acid, which is claimed to have a detoxifying effect, and is proposed to support healthy insulin levels, be an anti-inflammatory, and be beneficial to those with IBS, Crohn’s disease, and ulcerative colitis. 

A New Direction

Plans for the company include taking its business in a new direction, by expanding into the highly-competitive bar category. A launch is planned for this September for a new line of grass-fed, ghee-based protein bars in three flavors – chocolate, peanut butter, and cookie dough – to be sold under the brand WOKE. 

Expanding from a leadership position in a niche category into a much more saturated space might seem risky, however, WOKE products will set themselves apart on the crowded shelf by using ghee and whole eggs in their bars, compared to egg whites used in competing brands. The move will not only expand the company into a new revenue channel, but could serve as a bit of an ambassador product line, creating greater familiarity of ghee with Western consumers. 

“4th & Heart is a trailblazer in the superfood category, and we couldn’t be more excited to be involved in the next phase of the brand’s growth,” said Megan Bent, founder and managing partner, Harbinger Ventures. 

“Raquel and her team are driven not only by their strong vision for their own brand, but by their deep understanding of their target consumer, and we look forward to supporting their ongoing mission to deliver the best possible alternative options to that consumer, whether in the kitchen or on the go.”

Although competition in the bar category may be tight, the same cannot be said (at the moment) for ghee. However, there are rivals emerging. One such rival, Vital Farms, which announced it raised funding from Vail, Colorado-based asset manager Manna Tree Partners earlier this month, is adding grass-fed ghee to its product lineup this year. Investors in 4th & Heart, however, remain unfazed. 

“Ghee offers functionality to a traditional category staple with 4th & Heart as the clear winner on shelf. As the ghee market continues to expand, Raquel and her team are positioned to be the category leader in velocity, innovation and consumer engagement,” said Filipp Chebotarev, COO and partner, Cambridge Companies SPG.

 

– 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.