Led · Equity · Sep 2019

Strong Roots produces plant-based frozen food products sold in existing markets including the UK and the US. The company has entered a strategic partnership with McCain Foods, which will provide distribution reach and resources to expand into additional retailers. The deal also opens entry into the foodservice/out-of-home channel via McCain’s network. Strong Roots will continue to operate in an independent capacity, according to the company. The transaction includes a $55 million minority investment from McCain Foods and signals an exit for Series A lead investor Goode Partners. The partnership is positioned to broaden Strong Roots’ market presence and ‘fix the freezer aisle’ with more plant-based options. Strong Roots produces vegetarian and plant-based frozen foods — including premium root vegetables, veggie burgers and items like Cauliflower Hash Browns — sold in major U.K. and U.S. retailers. The company is stocked in U.S. retailers such as Target, Wegmans and Whole Foods and in the U.K. at Tesco, Asda, Sainsbury’s and Marks and Spencer. It is not a direct-to-consumer business or a novel technology developer; instead it focuses on branded frozen CPG sold through retail channels. Strong Roots began selling frozen foods in 2015 and is led by CEO Samuel Dennigan. The company says it is on track to move $50 million worth of frozen vegan food in the current calendar year and expects sales to more than quadruple over the next four years. Management plans to use new financing to expand its U.S. presence and to build R&D and technological capabilities, including product fortification and other IP development to broaden categories.