US breakfast cereal and eggs supplier Post Holdings has invested in PeaTos, a Los Angeles-based business making better-for-you snacks from peas.
PeaTos is the second investment made by the company in the space of a week after it announced it had taken an undisclosed stake in plant-based meat business Hungry Planet, which like Post is headquartered in St. Louis.
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Post has contributed to a Series B US$12.5m investment round in PeaTos, founded in 2018 by Nick Desai as a company pursuing an alternative to corn snacks. It supplies retailers in the US, including Kroger, Sprouts Farmers Market Albertsons, Safeway and Costco.
A statement announcing the investment did not disclose who the other investors were, although just-food has approached the company to clarify.
US investor Jackson Springs Management Partners, which backs start-up businesses, and early-stage venture capital firm Connetic Ventures in Kentucky, led a Series A round in PeaTos last year amounting to $7m.
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By GlobalData"We are honoured by this investment from Post and their confidence in the PeaTos brand," CEO Desai said. "Post has a long history of success in the CPG space and we are honoured 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, the president and CEO of Post's consumer brands subsidiary, added: "We are very excited to begin our partnership with Nick, and the PeaTos brand. We believe it has a bright future, and we can learn a lot from their entrepreneurial culture and gain an understanding of the fast-growing snacking space."
Post has also been active in investments in other areas of the food chain. In December, the company acquired Almark Foods, an egg supplier for the retail and foodservice channels based in the state of Georgia. And the same month, Post bought the Peter Pan peanut butter brand from US peer Conagra Brands.
And last summer, Michael Foods, a subsidiary of Post, formed a manufacturing partnership with faux egg producer Just.
