Danone-Backed Laird Superfood Going Public On NYSE With A Valuation Of $184.3 MillionSeptember 23, 2020
Plant-based health foods company Laird Superfood, which previously received $10 million from Danone Manifesto Ventures to help fuel its expansion, is going public today on NYSE with a valuation of $184.3 million.
The maker behind a line of superfood coffee creamers, hydration products, roasted and instant coffee, tea and hot chocolate will trade under the ticker symbol LSF, and is expected to raise $58.3 million on the high range by issuing 2.65 million shares, putting its price at $22 per share.
Laird Superfood’s IPO, following in footsteps of peer players such as Beyond Meat (NASDAQ:BYND) and Modern Meat (CSE:MEAT), represents a growing public interest in the global plant-based category that is estimated to reach $72.4 billion by 2027, according to Meticulous Market Research.
Recurring business model
The Oregon-based company, co-founded by serial entrepreneur Paul Hodge, big-wave surfer Laird Hamilton, and his wife Gabby Reece in 2015, has reportedly grown subscriptions at a 297% CAGR from its inception through June 30, 2020.
“We’re driven by the mantra of ‘better food, better you’,” Hamilton wrote me via email. “We offer products that fuel consumers from sunrise to sunset, or what we call the ‘daily ritual’.
“Daily ritual stemmed from our team’s desire to perform at our best, whether at the office, in the water, on the slopes, or with the family,” he explained. “The ritual kickstarts our day with clean, all natural energy and sustains us throughout the afternoon without a crash.”
However, it was the resiliency of Laird Superfood’s recurring revenues and business model amid the ongoing COVID-19 pandemic that has ultimately led the team to file for IPO.
Hodge notes how the company generated $11.1 million during the first half of 2020 — the highest revenue in its history, of which 57% came from e-commerce.
“The performance of Laird Superfood during this extremely difficult period provides us with even greater confidence in the recurring nature of our business, the efficacy of our omni-channel sales model, and the elasticity of our vertically integrated capabilities when facing spiking demand, even during otherwise challenging conditions,” he recently told me.
“Further, we view our wholesale business as highly recurring due to the high retention rate of our largest wholesale customers, who remain pleased with the strong sell-through of our products.”
Unique platform in natural foods
Laird Superfood plans to use the proceeds from the IPO to invest in its continuous expansion that includes product development beyond its current offerings.
Hodge said: “We believe the larger long-term opportunity lies in building Laird Superfood into a unique platform within the natural foods industry, which is currently dominated by single-product companies.
“The core tenets of this platform approach are strengthening our authentic and trusted brand name, growing our expansive omni-channel distribution strategy and the introduction of a constant flow of new products that align with our core ethos.”
He added: “This platform provides opportunities for continual expansion of our total addressable market to allow long-duration growth, sustained differentiation of our brand, product diversification and leveraging our core strengths and operating costs to increase profit margins.”