December 2, 2020

photo credit: Kate Farms

By Lynda Kiernan, Global AgInvesting Media

Although there is admittedly still much we don’t know about the connection and interaction between our genes and the foods we eat, personalized nutrition, and by proxy, functional foods and beverages, have been noted as being some of the key drivers in the evolution of the food industry.

A development that perhaps reflects and reinforces the growing credibility of personalized nutrition is the number of doctors that are considering the impact of nutrition into their patients’ treatment plans for both preventing and treating illnesses.

At the same time, many of these same concerns, along with thoughts to animal welfare and environmental impacts, have been behind a widespread consumer shift toward incorporating more plant-based foods and beverages into our daily diets.

Today there are an increasing number of startups led by science-driven innovators that are integrating both a functional aspect, such as ‘food as medicine’, and a plant-based formulation in new product advances. One such company is Kate Farms.

Goldman Sachs has led a significant $51 million Series B for Kate Farms with participation from Kaiser Permanente Ventures and existing individual investors to back the company’s plant-based medical nutrition portfolio including both adult and pediatric formulas for tube feeding and nutritional shakes. As per the terms of the deal, Allison Berardo, a vice president with Goldman Sachs’ growth equity platform, will be joining the Kate Farms board. 

“We are excited to be backing the Kate Farms team as they continue to pave the way for plant-based nutrition in healthcare,” said Berardo. “Kate Farms’ differentiated product, strong community support from both patients and providers, and widespread distribution make them a true category leader within the overall liquid nutrition industry.”

Kate Farms was founded by Richard and Michelle Laver when their daughter Kate failed to thrive on typical tube-feeding formulas. In 2015 entrepreneur Brett Matthews invested in the company, becoming chairman, and eventually its full-time CEO.

Made from easily-digested organic pea protein, Kate Farms’ feeding tube formulas and shakes are free from the common allergens found in existing choices on the market, but include prebiotic soluble fiber from organic agave inulin, and a clinically effective phytonutrient blend that provides antioxidants.

Today, Kate Farms’ products are available in more than 95 percent of U.S. hospitals and are covered by U.S. Medicare and Medicaid, more than 2,000 private insurance plans, and an increasing number of WIC programs.

This year has been a significant one for the company. McKesson Corp named it its Supplier of the Year for 2020 based on its pipeline of healthy products, its rapid growth, and its continued innovation.

Kate Farms also launched three new products including a specialty formula for children, a product designed specifically for patients losing weight due to chemotherapy, and a meal replacement shake that is available over the country.

Additionally, the company has signed a five-year contract with the Department of Veterans Affairs (VA) making its products available to the country’s veterans and others through government services. 

“Kate Farms’ mission has always been to make nutrition the foundation of health so that people can live their best lives,”  said Brett Matthews, chairman and CEO of Kate Farms. “We know first-hand that plant-based nutrition can reverse disease and prevent illness and are excited to be working alongside some of the leading hospitals, doctors and dietitians to provide a higher standard of nutrition for people with medical conditions.”

“Now with the addition of our new Blue-Chip investors, we will continue to accelerate our efforts to lead the plant-based revolution in healthcare to help the hundreds of millions of people who can benefit.”

– 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.