Time-Sensitive Investment Opportunity: Ripple
Attractive valuation for dairy-free milk with ~40% revenue growth in 2022
- ~$40M Series F raise; attractive valuation for new investment compared to current public valuation comps
- Strongly differentiated plant-based milk alternative, same amount of protein, half the sugar and 50% more calcium than dairy milk, 3X more protein than typical oat milks, 8X more protein than almond and coconut milk, less sugar than soy and coconut alternatives
- Market-leading net revenue growth of nearly 40% YOY in 2022, with business plan that focuses on profitability
- Growing market share through Ripple Kids product achieving more than 3X YOY revenue growth in 2022; retail milk velocities outpacing Oatly by ~4X in last quarter
- CEO Laura Flanagan ex-CEO of Foster Farms with $2B revenue, 12,000 employees
- Time-sensitive opportunity available for limited period only
- Further information available upon signing of NDA
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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 and shakes.
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 is a fast-growing food company that produces a plant-based milk alternative with nutrition and taste comparable to real cow's milk. Ripple contains more protein than other plant-based substitutes. These dairy-free, hypoallergenic products based on pea protein are vegan, lactose-free, nut-free, gluten-free, and soy-free. Ripple's products provide the same amount of protein as dairy milk (8 grams per serving), while almond, oat or coconut milk and similar milk alternatives have little or no protein. Compared to dairy milk, the company's creamy creations contain no cholesterol, half the sugar and 50% more calcium.
The company's source of protein is yellow peas. Ripple is produced using only 1/55 of the greenhouse gas emissions of dairy milk, none of the methane gas that cows produce and 86% lower emissions than almond milk. The production of dairy milk requires 25X more water than to produce a similar quantity of Ripple. It takes 6X as much water to get an equivalent amount of protein from almond milk as from Ripple.
The brand is carried by Target, Whole Foods, Walmart, Amazon, Kroger, Albertsons, and other major retailers, e-commerce channels and food service providers across North America.
The Round
OurCrowd is participating in the company's currently funding Series F round. As the public market has seen significant drops in valuations, the company is currently offering a potentially attractive opportunity which could yield significant return. This investment opportunity is available for a limited period only.
The Traction
Ripple has enjoyed impressive revenue growth of 40% YOY in 2022 with Ripple milk growing 6X faster than the category. The company is on track to increase gross margins and focusing on its fast-growing products like Ripple Kids, whose revenues grew more than 3X YOY in 2022.
In addition, Ripple products benefit from a loyal customer base and offer the lowest price elasticity in the plant-based category.
Ripple milk scores higher than competition on key purchase drivers such as uniqueness, worth paying more for, kids like, and best plant-based milk.
Strong Existing Investors
The company enjoys the presence and expertise of prominent investors such as Prelude Ventures, Euclidean Capital, Bloom8, S2G and Salix Investments.
The Team
CEO Laura Flanagan previously served as the CEO of Foster Farms, a leading poultry provider with over $2B in sales. Adam Lowry is the co-founder of Ripple and a board member. Prior to Ripple, Adam co-founded Method Products, now the world's largest green cleaning company. OurCrowd has brought on Jacob R. Robbins, Founder and CEO of Emeterra, as its nominated board observer to steward OurCrowd's investment in Ripple Foods. Jacob is a food and beverage industry veteran who spent 20 years as a global executive at The Coca-Cola Company.
If you are interested in receiving further information about the transaction and your potential opportunity for participation, please click here to sign the NDA and receive access to the deal page. In order to view the deal page, you need to be logged in to your OurCrowd account before clicking the link.
Meet the CEO
We're hosting a webinar/conference call on Thursday, January 12th, at 6PM Israel / 11AM New York / 8AM 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.
You will be able to register for the webinar, after signing the NDA, on the Ripple Foods deal page here.
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