This Fast-Growing Startup Is Presenting A Rare Opportunity For Retail Investors

The most successful companies in the world were created while searching for the solution to a common problem, and that’s exactly how Rule Breaker Snacks was founded.

Nancy Kalish, founder and CEO of Rule Breaker Snacks, is a certified health coach and former health journalist who knows how to eat healthy but shares the same problem as so many others: an unstoppable sweet tooth. Not getting the satisfaction she needed from the better-for-you snack options on the market, she got to work in her Brooklyn kitchen to find the solution.

A year and a half later, Kalish finally found what she was looking for after creating a brownie made from chickpeas that actually satisfied her cravings for a sweet snack. As the story goes with any great startup, Kalish shared these brownies with her friends and family who then convinced her to turn the delicious discovery into a business.

The aspiring entrepreneur spent the next seven years learning how difficult it can be to grow a food business, especially when competing with so many brands that claim to be healthy but are actually filled with animal products, sugar or common allergens. However, Kalish was armed with the perfect recipe and an insatiable passion for bringing truly healthy yet delicious snacks to the masses.

The company fought and persevered through some of the most difficult startup stages and hit some major milestones in 2021. In January 2021, Grupo Bimbo’s venture capital arm, Bimbo Ventures, made a minority investment in Rule Breaker Snacks — the first ever by its U.S. venture hub. While the name Grupo Bimbo may not sound familiar, the company’s many iconic brand names are widely recognized around the world.

Grupo Bimbo S.A.B de C.V. is the world's largest baking company with operations in 33 countries and $15.4 billion in annual revenue. It's most well known for its category-leading brands including Sara Lee, Arnold, Thomas’, Boboli, Entenmann's, Freihofer's and others.

Rule Breaker Snacks’ products are now sold in over 3,500 retail locations, such as Kroger Co. KR and Albertsons Companies Inc.’s ACI Jewel, increasing to 4,800 locations by the end of 2022.

Direct-to-consumer sales account for nearly half of revenue, and Rule Breaker Snacks is frequently an Amazon.com Inc. AMZN "Top Choice" in vegan and gluten-free cookies and allergen-free cookies.

Rule Breaker Snacks tripled its year-over-year sales, passing the million-dollar milestone with $1.3 million in sales for 2021 and projecting $2.2 million in sales for 2022.

As Rule Breaker Snacks enters into a rapid growth phase, retail investors are getting the opportunity to make an early investment in this emerging snack startup. The company launched an offering on the private market investment platform Republic.

Retail investors have until May 1, 2022, to invest in Rule Breaker Snacks, alongside the world’s largest baking company.

View offering details

While once considered a niche market, the healthy snack sector is one of the fastest-growing categories in the food industry.

  • The healthy snack market is projected to grow to $108 billion by 2027.
  • Cookie consumption increased by 25% during the pandemic.
  • The plant-based snack market is set to exceed $73 billion by 2028 with an 8.7 compound annual growth rate.
  • Plant-based food retail sales increased by 27% in 2020 to $7 billion, growing nine times faster than total food sales in the last two years.
  • As many as 57% of U.S. households now purchase plant-based foods for health, animal welfare and environmental reasons.

The company has immediate plans to capture a larger share of this growing market, to include introducing new flavors, developing new multi-pack SKUs in order to increase average sales per customer, growing direct-to-consumer sales and expanding current US and global distributions.

Based on current projections, the company should be able to achieve a major acquisition within the next four years, which could result in significant return on investment for investors participating in the current offering.

Find more information on Rule Breaker Snacks and the investment terms on the company’s offering page.

Photo: Courtesy of Rule Breaker Snacks

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!