The cookie market in the United States exceeded $11B in 2021. Working from home fueled a growing demand for cookies as they were a quick and easy source of nourishment. However, most of the market has been concentrated on options that are not too healthy and are also full of sugar. For people with allergies and sensitivities, the market for suitable options is even scarcer with friendly options often sacrificing taste. Partake Foods is a natural cookie brand that offers a full selection of delicious, gluten-free, vegan, non-GMO options that are free of the top nine most common allergens (wheat, tree nuts, peanuts, milk, eggs, soy, fish, sesame, and shellfish). Flavors include Gingersnap, Birthday Cake, Chocolate Chip, Lemon, and Pumpkin Spice; a package of cookies retails at $16.49 for 15 cookies; each cookie is only ~50 calories. In addition to cookies, the company also offers baking and breakfast mixes for pancakes and waffles. Products can be purchased online direct-to-consumer through Partake’s website and Amazon as well as purchased in 9000 brick-and-mortar retail locations that include Target, Whole Foods, Walmart, and Kroger.
AlleyWatch caught up with Partake Foods Founder and CEO Denise Woodard to learn more about the business, the company’s strategic plans, latest round of funding, which brings the total funding raised to $19M, and much, much more…
Who were your investors and how much did you raise?
New investors in this Series B round include Cleveland Ave’s CAST US fund, Fearless Fund, Supply Change Capital, Kaya Ventures along with returning investors Marcy Venture Partners, CircleUp Growth Partners, Black Star Fund, FF2032 (Lotus Bakeries’ venture arm), and Black Capital.
Tell us about the product or service that Partake Foods offers.
Partake Foods is a natural food brand offering allergy-friendly products including crunchy and soft-baked cookie flavors such as Chocolate Chip, Birthday Cake, and Ginger Snap, baking mixes, and a pancake & waffle line in Confetti and Classic flavors. All products are certified gluten-free, non-GMO, vegan, and free of the top 9 allergens (wheat, tree nuts, peanuts, milk, eggs, soy, fish, sesame, and shellfish). Our products are made with high-quality, better-for-you ingredients and offer a variety of flavors that those with and without dietary restrictions can enjoy.
What inspired the start of Partake Foods?
I started Partake in 2016 after my daughter Vivienne was diagnosed with multiple food allergies and I realized there weren’t enough delicious, high-quality, allergy-friendly snack options on the market.
How is Partake Foods different?
While there are many better-for-you snack brands on the market, Partake’s core mission of bringing delicious, allergy-friendly snacks to the people who need them hasn’t changed since the brand launched in 2016. Partake is also one of the few Black and Asian American-owned, women-led brands in the CPG food & beverage industry. Through Partake’s Black Futures in Food & Beverage program that steers HBCU students through an annual fellowship and its commitment to eradicating childhood food insecurity, Partake Foods is committed to lifting as we climb.
What market does Partake Foods target and how big is it?
Partake Foods appeals to health-conscious consumers seeking delicious products made with better-for-you ingredients and consumers living with food allergies (either personally or within their homes). According to FARE, there are approximately 32M Americans living with food allergies.
What’s your business model?
From day 1, we have been a brick-and-mortar retail brand. We sell our products – cookies, breakfast mixes, and baking mixes – in over 9,000 retailers across the US, on our website, and on Amazon. You can find Partake on American Airlines and in additional on-the-go outlets.
How you are preparing for a potential economic slowdown??
From 2016-2019, Partake was bootstrapped, so we’ve had a scrappy mindset from day One. Our plan includes a continued focus on delivering high-quality products our customers love, clearly articulating our brand proposition and value, and ensuring we are maximizing our dollars along the way.
What was the funding process like?
The volatility of the market over the past 8 months has made raising funds unpredictable! Despite that, we were able to fulfill our strategic intent for this round and are thrilled about the participating partners and the value they will add to Partake.
What are the biggest challenges that you faced while raising capital?
Raising capital is a full-time job! In a time of rapid company growth, juggling fundraising and leading a team has been the biggest challenge of this round.
What factors about your business led your investors to write the check?
I think investors were excited about Partake because of our mission and business traction. We’ve seen tremendous growth from a revenue and distribution perspective since launch, but we’ve also kept a focus on our social impact along the way — particularly around increasing diversity in the food industry and fighting food insecurity.
I think investors were excited about Partake because of our mission and business traction. We’ve seen tremendous growth from a revenue and distribution perspective since launch, but we’ve also kept a focus on our social impact along the way — particularly around increasing diversity in the food industry and fighting food insecurity.
What are the milestones you plan to achieve in the next six months?
We are launching a new key national retailer in Q1, announcing two brand partnerships that we are excited about, and launching within a new category, while expanding flavors in existing categories.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Focus on what’s working in the business and lean in there, work on improving unit economics and product margin.
Where do you see the company going now over the near term?
More stores, more products, more impact. You’ll see Partake increase our distribution in new retailers, as well as across new channels in 2023, while launching additional products. We will continue to prioritize our social impact initiatives aimed at increasing diversity in the food industry and eradicating childhood food insecurity.
What’s your favorite restaurant in the city? Too many to name just one – ZouZous, ilili, Lucali.
