Dairy-free on track for ~50% revenue growth in 2022
Superior plant-based milk alternative, 3X protein, lower fat, sugar than typical oat milks, and 8X more protein than almond milk
Outpacing growth in each category: 6X milks, 4X shakes, 8X on-the-go
18% YOY net revenue growth to $41M in 2021, forecasting increase to $60M+ by end 2022 based on success of Ripple Kids, new markets, strong growth pipeline
Ripple Kids #1 new item in plant-based milk category; Ripple soft serve won 2022 National Restaurant Association award for best new food & beverage innovation
CEO Laura Flanagan ex-CEO of Foster Farms with $2B revenue, 12,000 employees
$20M convertible loan at 20% discount with 25% warrant coverage; top-tier co-investors participating include Ajax Partners, Prelude Ventures, Euclidian, S2G Ventures, Google Ventures
Ripple presents: Cows on vacation
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Dear Josb,
As concerns grow about the sustainability of dairy farming and the impact on health and climate of dairy products, consumers are switching in large numbers to plant-based milk alternatives.
OurCrowd is re-investing in Ripple, a fast-growing FoodTech company that produces great-tasting, nutritious alternatives to milk, shakes and ice cream. The details below are based on information received from, and verified solely by, the company.
The Problem Dairy farming creates large amounts of greenhouse gases - one gallon of milk produces 17.6 pounds of CO2. Cows require large amounts of carbon-intensive cattle feed and release large amounts of methane, contributing to greenhouse gas emissions. Cow's milk also contains high levels of sugar and saturated fat. Almond, cashew and coconut-based milk have less sugar than dairy, but almost none of the protein.
Consumers are looking for dairy alternatives that have a taste approaching real milk and many current plant-based products fail to provide it.
The Solution Ripple has developed a portfolio of alternative milk products based on exclusive and proprietary yellow pea protein isolate that have the look, feel, and taste of real dairy. In addition, its products have high nutritional value compared to both traditional dairy and to other plant-based beverages. A serving of Ripple has the same amount of protein as cow's milk and up to 8X the amount found in other non-dairy alternatives. Ripple has 3X the protein, with lower fat and sugar than traditional oat milks. It also has the most vitamin D of all dairy and non-dairy milks and more calcium than dairy milk.
Consumers love the taste of Ripple and keep coming back for more. The high greenhouse gas emissions do not occur with yellow peas.
Traction Ripple's net revenue grew 18% YOY to $41M in 2021, despite supply-chain disruptions and the reluctance of many retailers to stock new products during the Covid-19 pandemic. These factors impacted the rollout of Ripple Kids, now the #1 new item in the plant-based milk category, and delayed the launch of Ripple sliced cheese. Even with these negative headwinds, Ripple sales grew several times faster than the industry average across all categories: 6X milks, 4X shakes, and 8X on-the-go drinks.
Ripple products are available in branches of Target, Whole Foods, Walmart and nearly 20,000 retail stores across the US, where the company has captured high-value customers and driven category expansion of plant-based milk products.
Ripple's soft serve ice cream won the 2022 National Restaurant Association award for best new food and beverage innovation.
The Outlook Building on its resilience in 2021, the company is poised to grow still further in 2022 by implementing the new distribution opportunities delayed from the previous year and forecasts increasing net revenue to $60M+ by the end of the year.
Ripple Kids is delivering above expectations and more stores are poised to sell the product. Additional retailers are set to start distributing Ripple products in H2 2022 and expand the company's distribution network.
Ripple will launch sliced cheese in H2 2022 and expects to increase sales of soft serve. The company has signed NDAs with several companies to show the soft serve and cheese and is ready to start deliveries.
Ripple recently made its first shipment to China and will launch in the summer on a platform equivalent to Alibaba, which the company expects will boost export sales. The company has also strengthened its sales and marketing team.
MarketsandMarkets projects the global dairy-alternatives market to grow from $22.6B in 2020 to $40.6B in 2026 at a compound annual growth rate (CAGR) of 10.3%, the highest CAGR of any dairy category.
The Team CEO Laura Flanagan previously served as the CEO of Foster Farms, a leading poultry provider with over $2B in sales.
The Round OurCrowd has secured an up to $5M allocation in this up to $20M convertible loan at a 20% discount and 25% warrant coverage. Top-tier co-investors participating include Ajax Partners, Prelude Ventures, Euclidian, S2G Ventures and Google Ventures.
Meet the CEO We're hosting a webinar/conference call on Thursday, June 23rd, at 7PM Israel / 12 Noon New York / 9AM San Francisco for investors to meet CEO Laura Flanagan and learn more about Ripple.
Can't make the webinar? Register and we will send you a recording of the call.
The Ripple Solution The key to Ripple's success is its patented Ripptein process which dramatically lowers the impurities found in plant proteins. Fats, carbohydrates, starches, isoflavonoids, tannins and other impurities leave sour, bitter, and astringent flavors in alternative dairy products, and ultimately cause them to retain the flavor of the almonds, coconuts, or other plants they are produced from. The Ripptein process produces the purest protein currently on the market. The company currently uses yellow peas as the feedstock, but the process is feedstock agnostic and can be used with other sources, such as soy.
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Certain information in this email contains "forward-looking information" under applicable securities laws ("forward-looking statements"). These may include, among others, projected performance; expected development of the company's business, projects and partnerships; execution of the company's vision and growth strategy; and the like. Forward-looking statements are not guarantees of future performance and should not be relied on in any way.
Nothing contained in and accompanying this communication shall be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any security by OurCrowd, its portfolio companies or any third party. Information regarding OurCrowd's limited partnerships and/or portfolio companies and the investment opportunities on OurCrowd's website is intended and available for accredited investors only (criteria at OurCrowd). OurCrowd urges potential investors to consult with licensed legal professionals and investment advisors for any legal, tax, insurance, or investment advice.OurCrowd operates in Canada through OurCrowd Canada Inc., an exempt market dealer registered in the Provinces of British Columbia, Alberta, Manitoba, Ontario, Quebec and Nova Scotia.
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