Venture-backed RIND has fully acquired Vermont-based granola producer Small Batch Organics as the upcycled snacking company transitions into manufacturing and fulfillment self sufficiency. Financial details were undisclosed.
Best known for its flagship line of dried whole fruit with peels, RIND has expanded its portfolio to include nutrient-dense chips, and built a national presence with approximately 12,000 distribution points since the business launched in 2018.
With the latest equity partnership, RIND anticipates a more efficient product R&D and a 5-6x markup in growth capacity, according to founder and CEO Matt Weiss. “There’s a huge efficiency unlocked by becoming vertically integrated, alongside major innovations,” Weiss said recently during an exclusive interview, which together will likely help RIND become “EBITDA positive” and push its annual revenue to $20 million by the end of the year.
PitchBook data showed RIND has amassed $12.8 million in funding as of April 2023, putting the company’s post-money valuation at $31 million. Existing investors include Grt Sht Ventures, Valor Equity Partners, Melitas Ventures, RCV Frontline, and angel groups, Spacestation Investments and Tompkins Square Ventures.
Weiss revealed RIND also closed an “opportunistic and value-add” $1.5 million round from RCV and Adam Spriggs- and Chris Robb-led The Angel Group before acquiring Small Batch Organics to strengthen its R&D and operational capabilities.
Revitalizing The Breakfast Granola Category
Weiss describes how the deal with Small Batch Organics was completed without an investment bank; instead, it started as a serendipitous encounter during a family trip to Vermont four years ago that later evolved to become a more complementary kinship.
RIND’s new fruit, nut, and granola remix line (left) & the company’s founder Matt Weiss at their new … [+]
“I’m a firm believer in the idea of planting a million seeds, cultivating these relationships, and good karma will come back in ways you can’t imagine,” said Weiss, while recalling meeting with Small Batch Organics’ founder Lindsey Martin at a farmers’ market. “That’s just the right way to run your business.”
Martin was subsequently named as the VP of manufacturing and product development with “significant equity upside” at the newly combined company, Weiss noted. “Lindsey has a great inclination to experiment and to tinker and she’s not dogmatic about innovations… that spirit shows real flexibility.”
The first joint product, RIND Cherry Cashew Crunch that features upcycled cherries, spiced cashews, and vanilla granola clusters, has hit Sam’s Club stores nationwide, and will be available this spring in select Walmart
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“We produced 70% faster than we anticipated — about 40-50 pallets per day, so we were even able to ship all these ahead of schedule,” he said. “This is a really compelling grab-and-go item that is also waking up a sleepy granola category similarly to dried fruit.”
30,000-Square-Foot, In-House Capacity
Small Batch Organics’ facility is 100% powered by solar energy, aligning with RIND’s focus on … [+]
As a result of the acquisition, RIND will undergo several phases before fully transitioning into in-house manufacturing and fulfillment. Small Batch Organics’ products will also be rebranded as RIND over the course of the year.
“We can’t just flip the switch and have 100% of our existing business under one roof; we want to do this in a smart, methodical way,” said Weiss, and some equipment, such as automatic tumbling machines, have been moved to the new facility.
RIND’s current capacity is approximately 30,000 square feet, 12,000 of which are allocated for production with the remaining dedicated to warehousing. These tangible and strategic assets will allow the company to better execute and control variables, thus help sustain long-term business growth, Weiss believes.
“Our manufacturing is also 100% solar power generated; it has 2.5 acres of solar panels on the roof of the facility,” Weiss said. “Having this sustainability alignment is huge because RIND is all about fighting food waste, and we’re oriented to become the next-generation snacking platform.”