September 22, 2021

photo credit: Ripple

By Lynda Kiernan-Stone, Global AgInvesting Media

Ripple Foods, a producer of plant-based dairy alternative beverages and foods made from pea protein, has closed on a $60 million Series E led by Rage Capital, Ajax Strategies, and S2G Ventures. Additional investors who joined the round were OurCrowd, GV, Prelude Ventures, Euclidian, Fall Line Capital, and Tao Capital Partners. 

Founded in 2014 by Adam Lowry (founder of Method cleaning products) and scientist Neil Renninger, Ripple Foods makes plant-based dairy alternatives including Plant-Based Milk, Kids Milk, Protein Shakes, Frozen Desserts, and more that set a higher standard in the alternative dairy segment, offering more protein, half the sugar of dairy milk, and 50 percent more calcium.

In the overall alternative protein category, pea protein has rapidly gained popularity. Extracted from ground yellow split peas, unlike soy or whey, pea protein is not an allergen, is non-GMO, is gluten-free, vegan, kosher, and is comparatively more environmentally friendly than other protein sources. Pea protein also is cholesterol-free, helps control blood pressure, provides a feeling of satiety, and is an effective source of protein for muscle building.

Ripple surpasses other alternatives in sustainability, requiring nearly six times less water to get the same amount of protein compared to almond milk, while using ecologically conscious manufacturing and processing systems.

Given this list of benefits, pea protein’s growing popularity is being reflected in the capital Ripple has been raising. GAI News first discussed Ripple in 2015 when it raised $13.6 million through a Series A led by Prelude Ventures and including Khosla Ventures, Blueberry Ventures, and Eagle Cliff Partners. 

The following year, the company secured $55 million through a Series B, followed in 2018 by a $65 million Series C, and now a $60 million Series E – reflecting growth that is outpacing the category by a factor of three. 

“Ripple’s growth is outpacing the category by 3x, and we are well-positioned to further accelerate that growth,” said Laura Flanagan, CEO, Ripple Foods. “This capital raise will enable us to accelerate innovation and growth across product categories, and expand into new channels and global markets. It allows us to further achieve our mission of making plant-based foods that are better for people, and better for the planet, on an even larger scale.”

As is well-established at this point, the plant-based food category has been on fire, reaching $7 billion by 2020. When certain categories are running hot, it can be very difficult to carve out a niche among an overcrowded field of competitors all vying for market share. Ripple, however, boasts strong customer loyalty, driving the company to experience 20 percent growth compared to 6 percent for the category in general.

“There are very few products in the plant-based arena that offer consumers a no-compromise proposition like Ripple: great taste, great nutrition and great for the environment,” said Gabriel Ruimy, Rage Capital’s Managing Partner.

“There is a huge demand for high-quality Ripple products around the world,” Ruimy continued, “and we look forward to helping Ripple enter new markets as they become the go-to alternative to dairy for consumers everywhere.”

Ripple is currently sitting in the cat-bird seat as a leader of a rapidly growing category ahead of the wave of consumer trends. Between 2020 – 2027 the alternative dairy category is expected to grow at a CAGR of 11.2 percent to reach $44.89 billion, according to a report by Meticulous Research. 

Meanwhile, the environmental impact of the animal dairy industry has increasingly come under a harsh lens, prompting consumers to re-evaluate their choices. Then again, more consumers than you would think don’t have a choice, as 44 percent of North Americans, 60-80 percent of Africans and Asians, and 5-17 percent of Europeans are lactose intolerant. 

The global pandemic has also been a factor in only intensifying the health consciousness of consumers, giving ever greater traction to the plant-based segment.

“Our investment with Ripple supports its continued growth and success in the milk aisle and its upcoming innovation in new product categories,” said Chuck Templeton, managing director, S2G Ventures. “Ripple is a clear leader in plant-based dairy alternatives, and we are excited to support this team of proven industry veterans as they continue to scale the business.”

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.