Healthy, banana-based snack company, Barnana announced it has raised $5.3 million in growth equity funding through a round led by Trently Advisors, and including Blueberry Ventures, Boulder Food Group, and Finn Capital Partners.
Founded in 2012 in Santa Monica, California, by Caue Suplicy, Matt Clifford, and Nik Ingersoll, Barnana creates banana-based snacks while also reducing food waste and supporting growers in emerging countries by sourcing ‘imperfect’ organic bananas that would have been discarded from farms across Latin America including Peru, Ecuador, and Mexico.
Forbes reports that an estimated one third of the world’s food is wasted every year – with fruit and vegetables being the category that sees the highest rates of loss, often for aesthetic reasons, which can account for the loss of up to 20 percent of a farmer’s crop.
“Ecuador is the largest exporter of organic bananas in the world, which means that there’s a ton of organic bananas going to waste there,” Suplicy told Forbes. “The top criteria for all of our farmers is that they are USDA certified organic, have fair and equitable working conditions, and have the desire to work with us in ending food waste at the farm.”
The company’s product line of banana bite snacks comes in six flavors including Original, Chocolate, Coconut, Peanut Butter, Apple Cinnamon, and Coffee, and can be found nationwide at Whole Foods, Costco, Safeway, Thrive Market, Sprouts, and Wegmans. And because sustainability is such a key tenant of the company’s mission, Barnana has developed a method of using its own production waste.
“We have been trying to figure out how to close the banana waste loop for a while,” Clifford told Forbes. “So, we created a system that uses the banana peels that are dried, then pressed into pellets and used as a source of energy to power the dehydration ovens. Sustainability is such an important focus for us that we aim to do whatever it takes to reduce food waste in as many areas as possible.”
This multi-faceted dedication to healthy snacking, sustainability, the reduction of food waste, and support for organic and fair-trade farmers in emerging and developing nations has garnered the company rapid consumer support, which has driven the company to see a compounded annual growth rate (CAGR) of 139 percent between 2013 and 2016, as well as being ranked the fastest growing snack in its category by the retail reporting service, SPINS.
The funding is being earmarked to support the company in the production and launch of new products, an expansion into new markets, and the strengthening of its distribution network.
“Barnana’s product lineup and company mission are squarely on-trend: delectable, convenient snacks that are healthy, functional and environmentally sustainable,” said Alan Leavitt, managing director of Trently Advisors. “Trently is very excited to partner with the management team as long-term investors. Caue, Matt, Nik and the team are well-positioned to expand brand presence, launch new and innovative products, and take Barnana into additional markets.”
We’re All Going Bananas
High in potassium, vitamin B6, and pectin, and with a pleasant taste, bananas are gaining prominence not only in the snack category, but as a new dairy alternative too.
Known to ease muscles after a workout, and to sooth sensitive stomachs, banana milk is becoming increasingly popular with health-conscious consumers, those with children with dietary or digestive issues, or consumers with nut allergies or soy sensitivities who avoid the more standard soy, almond, or cashew milks.
Indeed, banana milk has been gaining attention at a grassroots level at such a pace that Eater.com declares Banana Milk Coffee as the new Pumpkin Spice Latte, and more mainstream companies such as WhiteWave are incorporating banana-based products into their lineup. And as bananas begin to shift toward being a key ingredient in products of other healthy snack companies, such as NurtureMe, Paleo People, and Go Raw, the sub-category appears in position to start claiming market share.
-Lynda Kiernan
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