Nashville, Tennessee-based snacking brand, Daily Crunch, known for its sprouted and dehydrated nut products, has raised $4 million in a series A funding round, led by state-backed VC Launch Tennessee. The capital will be used to expand its product line, scale retail presence, and increase production capacity.
Founded in 2020 by Laurel Orley and her aunt Diane Orley, alongside seasoned entrepreneur Dan Stephenson, Daily Crunch has carved a niche in the competitive snack food industry through its unique sprouting process. This process, a long-standing practice in many cultures, including India, where Diane Orley first encountered it two decades ago, involves soaking almonds and other nuts to sprout them. The method makes the nuts easier to digest, more nutrient-dense, and gives them a distinct crunch that sets them apart from their roasted or raw counterparts.
Upon returning to the U.S., Orley began experimenting with sprouting almonds and dehydrating them at low temperatures rather than roasting them. This technique preserves the natural flavor, improves digestibility, and enhances nutrient absorption by breaking down phytic acid, an anti-nutrient that can inhibit the body’s ability to absorb key vitamins and minerals.
‘Think Outside The Box’ To Raise Capital
Securing series A funding in today’s challenging fundraising environment is no small feat. Recognizing the hurdles facing emerging brands, Daily Crunch adopted an unconventional strategy, leveraging its Nashville roots to attract local investors who typically focus on healthcare.
“We had to think outside the box and knew that the conventional approach might not be the best strategy for this round of fundraising,” explained Laurel Orley, the CEO of Daily Crunch. By focusing on local partnerships, the company stood out in the typically bi-coastal landscape of emerging food brands.
The infusion of capital will be used to enhance production capacity — Daily Crunch’s manufacturing partner has increased its output fivefold — ensuring the brand can meet rising consumer demand, according to Orley. The company is also methodically planning new product launches, with just one or two SKUs introduced annually to avoid overextending its resources.
In a public statement, Eller Kelliher, chief investment officer at Launch Tennessee, which also participated in Daily Crunch’s seed round, said: “We are thrilled to support Daily Crunch’s continued growth. Over the last few years, we have witnessed their transformation from a promising startup to a rapidly expanding presence in the snack industry. Laurel and Dan’s success in raising this round is a testament to their leadership, dedication to a unique product, and the future potential of Daily Crunch as a leading CPG brand.”
During this fundraise, Daily Crunch also formed a board of directors, including veteran CPG leader Nancy Pak, who previously served as CEO of Tate’s Bake Shop and President of North America Ventures for Mondelēz, through a collaboration with Women On Boards Project; as well as Steve Barr, who previously led PwC’s Global and U.S. Consumer Markets practice; and Matt Jonna, co-founder and CEO of Plum Market.
Patented Four-Day Process
Daily Crunch’s patented four-day sprouting and dehydrating process is at the heart of its business. The company claims its technique not only boosts the nutritional profile of its snacks but also creates a hollow core inside the almonds, resulting in a signature crunch.
Daily Crunch’s patented four-day sprouting and dehydrating process results in an enhanced … [+]
“The intrigue lies in our sprouting process and its transformative effects on texture and flavor, which we protect with our patented technology,” said Orley. “We’re capturing the attention of consumers who may have previously dismissed nuts as boring or unhealthy, showing them a new way to enjoy these nutritious snacks.”
Daily Crunch’s product lineup includes seven distinct flavors, from classic sprouted almonds to more adventurous varieties like Nashville Hot and Dill Pickle. The latter flavor is a recent innovation that combines real pickle ends, upcycled into paste in partnership with fermented foods company Cleveland Kitchen.
Retail Expansion & Product Launches
While e-commerce has been a strong growth driver for Daily Crunch, the company’s primary focus remains on retail expansion. Recent partnerships with major retailers like Target have significantly boosted brand awareness and sales. In-store sampling initiatives, which allow customers to experience the brand’s signature crunch firsthand, have also contributed to Daily Crunch’s rapid growth.
The company has grown its shelf presence by expanding SKU offerings in existing retail locations and has managed to enter new markets, positioning itself for further growth in 2025. “We want to grow because of the retailer, not despite the retailer,” noted Orley, highlighting the importance of understanding each retail partner’s unique needs to drive sales.
Daily Crunch is poised for significant growth in 2025. The company’s sprouted nut snacks are already sold in major retailers across the U.S., and with its latest funding, it plans to expand distribution further, aiming for 100% placement in a national retailer by the end of 2024.
In addition to expanding its retail presence, Daily Crunch is focused on continuing product innovation. Its next major launch, a collaboration with a prominent woman-owned brand, is expected to become a top-selling SKU by 2025, Orley revealed.
With the global healthy snack market projected to grow, Daily Crunch is well-positioned to lead the U.S. nut snacks sector. According to Nielsen data, Daily Crunch remains the number-one selling sprouted brand, across all pack sizes and all channels with $462K in revenue over the past 12 weeks, followed by private-label options and Purely Sprouted. But the company noted its revenue is “considerably higher” in reality since the data doesn’t include all sales from channels, such as Amazon, Target, and Thrive Market.
Other top players in the category also include Karma Nuts, Mauna Loa, Sahale Snacks, and SkinnyDipped. According to food and beverage data aggregator FABID, more than $41 million has been raised for all U.S. nut products since 2017.
“The nut snack category is a multi-billion dollar market in the U.S., where we currently hold just 0.1% of the share,” said Orley. “This presents a significant opportunity for us to focus on this space before expanding into other categories.”