The move will accelerate Nosh Foods distribution both domestically and internationally, said Grays Peak Capital.
The current size of the US baby and toddler snacking is approximately $450m and the size of US baby food (snacking + purees) is approximately $1.8bn and growing, according to IRI Market Advantage.
In September 2019, Grays Peak Capital purchased organic baby and toddler food and tummy friendly brand, NurturMe.
“We had everything from pouches to cereal to yogurt, but one of things we didn’t have a lot was the snacking category, so we wanted to fill that out,” founder of Grays Peak Capital Scott Stevens told FoodNavigator-USA.
Nosh Foods products are marketed as easy-to-eat, organic snack food products including organic munchable teethers, whole grain puffs, soft oat bars, and gummy fruity stars that promote healthy eating habits and help build foundational food knowledge and developmental skills.
“Their product was completely complementary to what we’re doing, and it also allows us to go and sell to a much larger age group, because now we can go up all the way to 8 or 10 years old,” noted Stevens.
With the recent acquisition of Nosh Foods, Grays Peak Capital has been able to expand its retailer partnerships to Whole Foods and Target, which Nosh Foods had existing distribution in, as well as introduce the brand into other national accounts such as Walmart.
Jason Becker, CEO of Nosh Foods, said, “We expect this transaction to accelerate our expansion of Nosh Foods in North America and our initiatives internationally. Grays Peak will provide resources and expertise to build out a direct-to-consumer and omnichannel digital approach across the multiple brands.”
Outside of brick-and-mortar, Grays Peak Capital is fueling up its international and e-commerce businesses this year, according to Stevens.
‘We’re getting some of the largest orders we’ve ever had’
Stevens said the move will help the many parents adjusting to an indefinite period of time working from home and taking care of their kids by giving them access to healthy food options they can feel good about feeding their families.
K-12 school across the country have closed and transitioned to online learning. Many day cares and preschools — which are primarily privately run and not part of a public national school network — have taken similar measures to help prevent the spread of COVID-19 leaving many families scrambling on how to keep their kids occupied and fed.
“There’s not a lot of choices for people to feed their families right now,” said Stevens.
Amid the global public health pandemic of COVID-19, Stevens said the NuturMe brand is seeing surging demand for its products.
“As it relates to our business, because schools have all been canceled and most infants, toddlers, and kids are all at home with their parents, our business is up significantly. We’re getting some of the largest orders we’ve ever had because people are looking for alternatives of how to feed their families,” said Stevens.
“People are certainly looking to direct to consumer. And I think that’s going to continue for some time, for the next three to five months, I think we’re going to see a continued demand from that as people are just being cautious.”
Interested in foods and beverages for babies, toddlers, and young children?
Join us at FoodNavigator-USA’s 3rd FOOD FOR KIDS summit in Chicago November 11-13 to find out more about what kids are eating and drinking, and which brands are developing innovative products that kids want to eat and parents feel good about buying.