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In a significant financial boost, California-based pea milk brand Ripple has successfully garnered $49 million in its latest funding round, as disclosed in a recent SEC filing. This injection of capital elevates Ripple’s total funding to an impressive sum exceeding $274 million. The funding round comes on the heels of a $60 million Series E raise in 2021, led by Rage Capital (now Bloom8), Ajax Strategies, and S2G Ventures.
The plant-based milk market, currently valued at $29 million, is experiencing heightened competition, with the pea milk sector demonstrating resilience and outpacing both conventional and overall plant-based dairy segments. Despite a recent minor dip in total sales, Ripple Foods has maintained its competitive edge.
In July, Ripple Foods capitalized on the success of its popular Kids Original Milk, one of the few plant-based milk products specifically tailored for children, by introducing an unsweetened version. CEO Laura Flanagan, who assumed leadership in 2019 and sits on the board, emphasized the positive impact of Ripple Kids on families, citing its appeal as a dairy alternative offering both excellent taste and optimal nutrition for children.
Yellow peas, a favored primary ingredient for plant-based milk, are also utilized by other industry players such as PepsiCo-owned Sabra, Dipasa, and Roquette. However, Ripple distinguishes itself by innovatively removing unwanted components like color and flavor from the ingredient, resulting in “rippetin,” a neutral-tasting protein that can be seamlessly incorporated into various food and beverage products. Ripple asserts nutritional superiority, claiming its products boast 50% more calcium than dairy milk, 8 grams of protein per serving, and half the sugar found in traditional dairy milk.
The broader plant-based sector has witnessed a notable shift in consumer sentiment, with an increasing demand for healthier options featuring ingredients that align with label claims. Plant-based milk stands out as the most developed sector within the overall plant-based category, commanding approximately $2.8 billion. According to the Good Food Institute’s 2022 report, plant-based milk alone contributes to 35% of the total plant-based food market by dollar sales. Ripple’s recent investment success underscores its position as a key player in this thriving market, emblematic of the growing preference for nutritious and sustainable alternatives.
