SkinnyDipped, the renowned snack company celebrated for its delicately coated nuts, successfully secured $12 million in Series A funding in August to expand its presence in new retail outlets and diversify its product range.
The enterprise was founded by mother-and-daughter duo Val and Breezy Griffith. It had modest beginnings as part of the 2016 AccelFoods cohort, with a mission to offer healthier snack options characterized by reduced sugar content, non-GMO ingredients, and a complete absence of artificial sweeteners. Initially focusing on almond flavors such as Lemon Bliss, they established a strong direct-to-consumer presence.
Fast forward to today, and this Seattle-based company has broadened its offerings to encompass not only almonds but also cashews, peanuts, and a line of cups and bites introduced last year. CEO Breezy Griffith revealed that the brand has also expanded its distribution, with products now available in over 25,000 retail establishments nationwide, including major chains like Target, Walmart, and Kroger.
Griffith emphasized SkinnyDipped’s strength lies in its ability to innovate, an in-house process driven by her mother, and its universal appeal across various market segments. She pointed out that their brand has thrived in a multitude of settings, including grocery stores, club businesses, gyms, and coffee shops.
This success is particularly noteworthy in an industry currently grappling with uncertainty and changing investor priorities. According to Griffith, there has been a notable shift from prioritizing rapid growth at any cost to emphasizing profitability at an earlier stage, especially in the consumer packaged goods sector. Achieving profitability often requires a certain scale, substantial investment, and effective marketing, and founders are now navigating this path.
However, Griffith believes that the pendulum will eventually swing back towards achieving both growth and profitability simultaneously. SkinnyDipped’s strength, she noted, lies in creating products that are not solely reliant on fleeting trends or niche markets but are designed to endure. This approach has resonated with investors, as evidenced by the substantial interest in their $12 million Series A round.
Leading the round was hospitality entrepreneur David Grutman, known for his support of food-related ventures like Snackpass and Immi. Interestingly, the funding was a departure from the typical special purpose vehicle, as individual investors pooled their resources into a single funding entity. Among these investors were well-known personalities like Amy Schumer, Mark Wahlberg, Becky G, Post Malone, Tan France, Odell Beckham Jr., Frances Tiafoe, Alesso, Kevin Durant, Kaskade, Steve Aoki, and Marshmello.
This infusion of capital will empower SkinnyDipped to execute its retail expansion strategy, which includes partnerships with new retailers such as Costco and Publix. It will also support philanthropic initiatives and marketing efforts while fostering ongoing innovation in new product categories in the months ahead.
This milestone comes on the heels of SkinnyDipped’s dedicated work over the past 18 months to solidify its business foundation, including improvements in manufacturing and cost efficiency, all in preparation for its next phase of growth. During this period, the company has experienced double-digit growth and anticipates doubling its business again in the next 12 months. Profitability is also on the horizon.
As Griffith noted, there is a growing club business and a network of new distribution and retail partners eagerly waiting to collaborate. The company’s expansion plans aim to maintain the integrity of its brand promise while strategically allocating resources to maximize return on investment in marketing endeavors.
