January 27, 2021

By Lynda Kiernan, Global AgInvesting Media

Chickpeas continue to gain popularity as a plant-based protein – a trend that is being reflected in the size of the most recent investment in Hippeas, a pioneer in the chickpea snack category. 

The Craftory, a $375 million global investment house that is “notably counter-corporate and anti-traditional VC”, has invested $50 million in the startup, which has grown from a category disruptor to a brand force within the competitive snack space. 

Launched in Q2 2016 in the U.S. and the UK, Hippeas® began organic, gluten-free, vegan, kosher, and non-GMO chickpea puffs, with three grams of fiber and four grams of protein per serving, that quickly gained traction with consumers who were looking for a new, healthy snack choice.

In 2019 the startup launched HIPPEAS® Organic Tortilla Chips, chickpea-based tortilla chips, and has since secured shelf space in 50,000 stores including Starbucks, Whole Foods, Target, CVS, Wegmans, Stop & Shop, Kroger, Albertsons, Safeway, Thrive Market, and on Amazon.com.

“HIPPEAS® has grown from a disruptive start-up to a true challenger brand in very competitive snack categories with innovative products, delicious flavors and nutritional offerings that consumers want – the brand has the potential to become a household name with its loyal millennial fanbase,” said Livio Bisterzo, HIPPEAS® founder and CEO.

The market for plant-based protein is currently estimated at US$40 billion, as plant-based food sales jumped by more than 20 percent over the past year to hit $3.3 billion. And as has been true across the agriculture and food landscape, COVID-19 has rapidly changed consumer habits, national priorities, and global trade norms – widening the growth opportunity for new, more sustainable food formulations and ingredients. And chickpeas fit the bill. 

Chickpeas have been called “the new cauliflower” and have been noted by Whole Foods as a Top Ten Food Trend for 2021 due to their high protein and fiber content, allergen-free status compared to soy or wheat, neutral flavor, digestibility, and flexibility in application across snacks, baked goods, flour, pastas, and cereals. 

Additionally, chickpeas naturally release nitrogen, improving the soil by simply being cultivated – making the crop more sustainable than its rivals, and aligning with HIPPEAS’® mantra of Peas, Love & Giving Back which the company supports through donating food through food banks, and aiding in disaster relief. 

“The consumer agenda in snacking has fundamentally changed and HIPPEAS stands out as a clear leader,” said Elio Leoni Sceti, co-founder and chief crafter, The Craftory. “HIPPEAS offers zero compromise of flavour and texture, no need to change consumer habits nor expectations, while also being healthier and more sustainable than the more traditional alternatives – that’s a great proposition and a proven recipe for success.”

This investment now makes The Craftory the largest stakeholder in HIPPEAS®, and also created an exit opportunity for early investors including CAVU Partners, which invested $10 million in the startup in 2017. 

“HIPPEAS® is redefining plant-based snacking with their tasty organic chickpea puffs and unique branding,” said co-founder and managing partner of CAVU, Brett Thomas, at the time. “Their product reflects the desires of today’s consumer – to eat delicious, convenient snacks that are healthy and have a positive social impact.”

Along with the investment also came changes to leadership for HIPPEAS®. Greg Buscher, an entrepreneurial CFO with 25 years of leadership experience, has joined the company as CFO where he will bring a strategic business perspective, operational orientation, and background in manufacturing and distribution to create value through both top and bottom line growth.

Likewise, César Melo, former senior management at Colgate-Palmolive, former president at Mondelez and PepsiCo, and former CEO of Foster Grant International, has joined the HIPPEAS® board of directors, where Melo can focus on advising the early-stage company in the areas of “better-food, better-planet, and better-technology.

“HIPPEAS® are that rarest of things – a healthier snack which actually tastes good. Really good. Too often, the healthy option which you know is better for you just leaves you feeling ‘I’d rather not have anything’ – but HIPPEAS® snacks are delicious,” said Johathan Miller, Craft Partner, The Craftory. “And not only better for you – they’re also better for the planet. We’re excited to be partnering with the business, to help bring their better breed of snacks to more people, on more occasions, around the world.”

– 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.