LOS ANGELES — Post Holdings, Inc. is leading a $12.5 million Series B fundraising round for snack brand Peatos. The announcement comes less than six months after Peatos completed a $7 million Series A fundraising round led by Jackson Springs Management Partners and Connetic Ventures.
Peatos offers snacks inspired by popular brands such as Cheetos and Funyuns that are formulated with peas and lentils instead of corn, which results in a crunchy texture with a healthier nutrition profile. Developed to disrupt the “$21 billion junk snack market” dominated by PepsiCo Inc.’s Frito-Lay, Peatos products first appeared on grocery shelves in late 2017 and have since expanded to more than 4,700 retailers, including Kroger, Safeway, Albertsons, 7-Eleven and Costco.
“The days of trading flavor for nutrition are behind us,” said Nick Desai, founder and chief executive officer of Peatos. “Today’s consumers will not accept a compromise, and that is the holy grail of snacking Peatos makes good on.”
Peatos said it plans to use proceeds from the latest round of funding to strengthen its fan base across the digital landscape. Specifically, the brand intends to ramp up its presence in both traditional retail and direct-to-consumer channels. The company recently added new services such as subscriptions and a loyalty program to round out a new website launch.
“We are honored by this investment from Post and their confidence in the Peatos brand,” Mr. Desai said. “Post has a long history of success in the CPG space, and we are honored to have them as part of our mission. The proceeds of this funding round will give us the ability to further execute on our ambitious strategic plan.”
Howard Friedman, president and CEO of Post Consumer Brands, said the company is excited to begin its partnership with Peatos.
“We believe (Peatos) has a bright future, and we can learn a lot from their entrepreneurial culture and gain an understanding of the fast-growing snacking space,” Mr. Friedman said.
Other investors and advisers for the brand include Apu Mody, former president of Mars Food North America; Carlos Barroso, former head of global research and development for Frito-Lay; Carl E. Lee Jr., former president and CEO of Snyder’s-Lance; Dean Hollis, former president and chief operating officer of ConAgra Foods (now Conagra Brands); Tracy McGrady, Hall of Fame basketball player; Francis Ngannou, heavyweight boxing contender; and Kyle “Bugha” Giersdorf, a professional Fortnite streamer and player for the Sentinels esports organization.