Alice Mushrooms has received the backing of private-equity firm L Catterton, along with investment from US celebrities such as actor Zac Efron.
Set up in 2022 by Lindsay Goodstein and Charlotte Cruze, the US company produces a functional chocolate range that aid sleep or provide an energy boost. Its Happy Ending variety is also said to cause “arousal”.
Alice Mushrooms’ organic dark chocolates are marketed as vegan and both gluten- and dairy-free. The key ingredient reflecting the name is an extract from the “fruiting body” part of the fungus, said to be “nutrient-dense”.
Other ingredients are added depending on the chocolate type such as chamomile, relaxation promotors L-theanine and magnesium, and sleep-inducing zinc.
Joining the undisclosed investment were actor Pedro Pascal and comedian Kevin Hart. Previous funding was supported by Jason Strauss, the co-CEO of Las Vegas-based hospitality firm Tao Group and Dr Jennifer Ashton, a former ABC correspondent who is now Alice Mushrooms' medical advisor.
Co-founder Goodstein said: “This funding will help us expand and introduce new products and collaborations. It will also scale-up our production capacity to meet the increasing demand across both direct-to-consumer (DTC) and retail channels.”
California-based Alice Mushrooms said the business supplies more than 400 US retail outlets such as Erewhon and Pop Up Grocer. A listing with a “national grocery chain” is in the pipeline for later this year.
Cruze added: “The support from well-known entertainment figures and a globally recognised fund shows the mushroom market's potential as a wellness category, with Alice at the forefront.”
Just Food contacted Alice Mushrooms to ascertain its funding to date and for an idea on its revenues and growth rates.
While no update was provided on the financing, the company said via a spokesperson that revenue is expected to reach an eight-figure sum by the end of the year, representing growth of 175% year on year.
Alice Mushrooms also aims to increase distribution to a 1,000 stores by year-end.
Along with Happy Ending, the portfolio line-up features Nightcap and Brainstorm. The mushroom extracts are sourced from the Reishi and Cordyceps fungus incorporating the compounds guarana and ashwagandha.
Whitney Casey, a partner at L Catterton, said: “Alice Mushrooms distinguishes itself with its innovative branding and unique product offerings that connect with a new generation of consumers.
“This investment aligns with our strategy to support forward-thinking companies in the VMS space. We look forward to partnering with Alice and supporting their mission to transform the wellness market.”
