US natural foods business Fresca Foods has paid US$3.4m for a 10% stake in 34° Crisps maker 34 Degrees, for which it is a supply chain partner.
The firms say the investment will be used to accelerate growth at 34 Degrees through brand-building programmes and product innovation.
Go deeper with GlobalData
For the past ten years, Louisville, Colorado-based Fresca and 34 Degrees have been business partners, with Fresca managing the other business’ product development, materials purchasing, manufacturing and warehousing functions.
Denver-based 34 Degrees makes all-natural, wafer thin crackers, available in six savoury and four sweet flavours. They are sold in the deli departments of grocery stores throughout North America.
Craig Lieberman, founder and president of 34 Degrees, said: “Since day one, our team has looked for creative ways to grow our business, from how we produce 34° Crisps, to where we chose to sell our product in the store.
“As we considered potential investors, we once again saw the opportunity to do things a bit differently, expanding an existing partnership with our supply chain partner rather than creating a new partnership with a financial institution.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“For us, it came down to our beliefs and mission. This is more than a value based partnership, it’s a values based partnership. We’re excited to continue building our business with a partner who places just as much significance on people, community and healthy growth as we do.”
Todd Dutkin, CEO of Fresca, said: “We chose to partner with Craig years ago because we recognised his energy, passion and commitment to building a successful business that delivered a strongly-differentiated product.
“Today, 34 Degrees is at the precipice of accelerated growth and by combining the strengths of each of our teams, the potential is boundless.”
Fresca Foods started life as Pasta Fresca in Boulder, Colorado, selling all natural foods to retail customers and wholesale accounts.
Today it has its own natural food brands and serves as a supply chain and “innovation partner to category leaders”.
