What's Happening?
AGT Foods, a prominent food ingredients supplier, has made a significant investment in the Canadian pasta company Chickapea. The investment was part of a C$4.3 million ($3.1 million) funding round that also included FCC Capital, the investment arm of Farm Credit Canada, and existing backer InvestEco. Chickapea, known for its organic dried pasta made from chickpeas and yellow peas, plans to use the funds to enhance marketing, product development, and expand its distribution across North America. The company, founded in 2015 by Shelby Taylor, has been experiencing significant growth, with retail channel velocity increases of 25-50% in both Canada and the U.S. this year. As part of the investment, Murad Al-Katib, president and CEO of AGT Foods, has joined Chickapea’s board of directors.
Why It's Important?
This investment is crucial for Chickapea as it seeks to capitalize on the growing consumer demand for healthier pasta alternatives. The partnership with AGT Foods provides Chickapea with the necessary resources and expertise to scale its operations and increase its market presence in North America. For AGT Foods, this investment represents an opportunity to diversify its portfolio and strengthen its position in the plant-based food sector, which is experiencing rapid growth. The collaboration is expected to benefit both companies by leveraging AGT Foods' extensive industry experience and Chickapea's innovative product offerings.
What's Next?
Chickapea plans to utilize the investment to further penetrate the North American market by expanding its retail presence and exploring new distribution channels. The company aims to continue its growth trajectory by meeting the increasing demand for plant-based pasta products. AGT Foods' involvement is likely to facilitate Chickapea's expansion efforts, potentially leading to new product developments and increased brand recognition. Stakeholders in the plant-based food industry will be watching closely to see how this partnership influences market dynamics and consumer preferences.
