Breaking the Mold - Why We Invested in Partake Foods
No cookie-cutter, Denise Woodard developed her own playbook to create one of the fastest growing allergen-free brands today. We are honored to have invested in her latest round.
An astounding 10% of adults and 7.5% of children in the US have food allergies, yet allergen-free products are still few and far between. The economic cost of food allergies for children alone is nearly $25 billion a year. And as moms of small humans we know that allergen-free food for birthday parties, school events, and family gatherings are a must these days.
We invested in Partake Foods with these statistics and experiences in mind. Founded in 2016 by Denise Woodard, Partake is a top 9 allergen-free, gluten-free food company. Partake’s mission is to make the joy of eating and sharing food safer, in a radically inclusive way. The company's current products include a variety of cookies, pancake and waffle mixes, and baking mixes. Its products are free of the top 9 allergens (peanuts, eggs, dairy, soy, tree nuts, sesame, soy, fish, and shellfish) as well as free of artificial flavors, GMOs, and artificial preservatives.
The consumer products industry is notoriously hard to break into. In fact, over 85% of SKUs (new products) fail within just two years of reaching supermarket shelves when they are launched by large companies like Kraft and Mars. If it is that difficult for the incumbents, the insurgents are duly challenged, which is why Supply Change has an extremely high bar for CPG investments.
Partake exceeded this bar. I first met Denise in 2016 when we were both early in our entrepreneurial journeys. At the time, she was selling Partake cookies out of her car to local grocers in and around the New York City area! As an early-mover in the category, within a few years, Partake has landed at #45 on the 2022 Inc 5,000 list for the company’s rapid growth, achieving distribution nationwide in stores like Target, Walmart, Kroger and Whole Foods Market. Notably, Denise was also just named one of Inc. Magazine’s 100 Female Founders of 2022.
We are extremely impressed with the business fundamentals. Consumers have a high loyalty and are willing to pay more for high-quality, safe, allergy-friendly products. Sales and margins are healthy and, thus more predictable for the category.
The Partake supply chain has built-in resilience. In a food economy where three crops comprise 50%+ of our diets, the company uses a diversified base of ingredients including oats, buckwheat, and cassava that are both better for our diets and good for the planet—providing soil benefits such as nitrogen-fixation and natural weed suppression. Partake’s diversified supply chain has built-in regional resiliency, too; over half of their products are sourced in the US and Canada.
Beyond commercial resilience, Denise is building a values-aligned company that deeply resonates with Supply Change. She has become a voice for diversity, equity, and inclusion in the food industry, establishing a program called Black Futures in Food & Beverage to support the next generation of leaders in CPG in partnership with Historically Black Colleges and Universities.
We are thrilled to be on the journey and to see where this category-leader will next break the mold! Co-investors include celebrities Rihanna and H.E.R, and leading investment firms Marcy Venture Partners, Cleveland Avenue, Black Star Fund, Fearless Fund, CircleUp Growth Partners, Kaya Ventures, and more.