BIGR Ventures has led a $2 million Seed round for RE Botanicals, contributing $1 million to back the first national hemp CBD brand to be certified organic by the U.S. Department of Agriculture (USDA). The balance of the investment was committed by leading natural and organic industry veterans.
Founded last year as a hobby by 20-year hemp and superfoods veteran John Roulac, the founder and former CEO of superfood brand Nutiva, RE Botanicals labels itself as a “Pure, Organic, Hemp Apothecary”, the company offers a range of hemp CBD products including tinctures, body oil, and organic coconut oil capsules, created using the highest-quality, full-spectrum hemp extract.
Since its launch, the startup has seen rapid expansion: being offered through 150 locations, and with commitments to be made available through 850 more, RE Botanicals now has 10 employees.
Roulac told Project Nosh that he credits the startups’ success to its focus on “efficacy and agriculture”. As an activist, Roulac is dedicated to promoting a shift for agriculture away from chemical practices to organic and regenerative systems, committing to donate 1 percent of RE Botanical’s sales to promote regenerative agriculture.
“I was disappointed that most of the [CBD] industry was about capturing market share and making money,” Roulac told Project Nosh. “If Hemp and CBD is having a day in the sun… what are we going to do with this moment. Is it just going to be about growing the market, EBITDA, and cashing out? Or is it going to be about building an industry that starts with soil health.”
The startups mission-driven approach was a draw for BIGR Ventures, which said that RE Botanicals will be the only CBD company in its portfolio. Founded by Carole Buyers, Duane Primozich, and Bill Weiland – three executives that managed an investment unit of Boulder Brands prior to that company being acquired by Pinnacle Foods for $975 million at the end of 2016 – (BIGR) announced the closing of its newest fund, BIGR Ventures LP, at $55 million following its launch in December 2015 with an initial tranche of $18 million.
Headquartered in Boulder, Colorado, and with a combined 70 years experience in natural products across its founding team, BIGR is aiming to build out a portfolio of up to 10 companies.
“BIGR Ventures is inspired to partner with RE Botanicals, as the company is uniquely positioned around heritage, credibility and experience,” said Carole Buyers, managing partner of BIGR Ventures.
“The company’s founder, John Roulac, has a long history of hemp advocacy. His leadership, coupled with deep operational expertise and a brand that stands for organic certification and strict extraction protocols, make RE Botanicals a standout company. We are elated to partner with a brand that exemplifies such balance and purpose.”
Looking toward future growth, although it is tempting to expand into food and beverage categories, there are no plans to extend RE Botanical’s product lines beyond supplements and topical creams, as these are seen as the most efficacious CBD forms.
The key is to win over consumers, and based on a recent study conducted by cannabis-focused market research firm High Yield Insights that found that 40 percent of U.S. consumers over the age of 21 would be willing to try CBD, consumers might just be ready.
“We founded RE Botanicals on the belief that people are ready to support organic hemp CBD products that are carefully crafted and processed with trusted ingredients.” said Roulac. “We are at a critical time in the history of hemp and are excited to partner with BIGR Ventures.”
-Lynda Kiernan