- Kidfresh completed a $10 million Series B equity round for its child-centric line of frozen foods with hidden vegetables, according to Project Nosh. Investors included Monogram Capital, Emil Capital Partners and AccelFoods.
- CEO and Co-Founder Matt Cohen told Project Nosh that 75% of the capital will go toward brand marketing efforts like demos, social media and promotions. “Today, we are the best kept secret. Our distribution is broad, but our awareness is still limited. We know that eight out of 10 moms that try Kidfresh for the first time become repeat customers and [are] loyal,” Cohen said.
- Kidfresh is sold in more than 9,000 retailers nationwide, including Kroger, Wegmans and Whole Foods, and has sold more than 12 million meals. The company has also experienced 110% year-over-year growth since it launched.
Any parent can understand why so many investors want to be involved with Kidfresh, a company that "hides" vegetables in kid-friendly meals to make healthy eating easier for families.
According to the Centers for Disease Control and Prevention, about one in five American children are obese, and this number is continuing to swell. Food manufactures that can offer solutions to help kids eat better are not only going to get a stamp of approval from parents, but are also likely to get plenty of recognition from different health organizations and school groups.
Kidfresh’s success shows there is a market for products like this, and that food targeted to children doesn't have to be unhealthy. But if the company wants to cut through the noise of major kid-friendly convenience brands, it's going to have to seriously increase its marketing game. Billions of dollars are spent each year on ads targeted to children. Ss a result, kids see 11 food and beverage advertisements each day, the majority of which are for unhealthy products.
This new funding can help Kidfresh develop a campaign strategy that resonates with both parents and children. as 95% of parental food and beverage purchases are shaped by what children want. The second biggest influencer on grocery purchase decisions, according to the Food Marketing Institute, is whether or not food items are healthy for children, which drives 91% of purchases.
With few competitors and an already loyal consumer base, Kidfresh is poised to thrive in an untapped market that's in high demand. Cohen has said the company could expand into new parts of the grocery store, like prepared foods and center aisle, but it will continue to focus on frozen for now.
It will be interesting to see if the company's revamped advertising strategy will spur other manufacturers to enter the hidden-veggie food game, and how Kidfresh would have to respond if a major player decided to take it on.