News

Grupo Bimbo invests in Ecuador-based LiveKuna

Grupo Bimbo, the world’s largest baking company that owns over 100 brands including Sara Lee and Thomas' English Muffins, took the lead on a Series A funding round for the Latin American superfood startup LiveKuna. Other investors in the round include existing partners SOSV and AMADEO. Financial details about the investment were not disclosed.

Although investment specifics were not published, LiveKuna did say this round will support the launch of a product extension into cereal and snacks for its sweet product line called KunaPops as well as the expansion of its salty portfolio across North America.

LiveKuna specializes in crafting snacks, cereals, pastas and alternative baking flours from Andean superfoods and veggies. The company works directly with 500 local family farms in Ecuador from which it sources traceable and sustainably grown chia and quinoa.

This better for you brand has exploded onto the scene in Latin America, and recently, it has also recently begun making inroads into Mexico, Canada and the United States. Between 2020 and 2021, the company said revenue for the quinoa and chia puffed snacks doubled, and it expects that its portfolio will experience double digits year-over-year for the next five years. As part of its growth strategy, LiveKuna is looking at international expansion. Already, this summer the brand debuted in the U.S. where it gained shelf space in 364 Sprouts Farmers Market locations.

Now, its partnership with Mexico’s Grupo Bimbo, which has deep ties in U.S. retailers through its U.S. snack division Barcel USA, will lead it even farther into the American market.

"As we double down in the better-for-you category, we know LiveKuna – a purpose-led brand committed to sourcing superfood ingredients from family farms – will push the limits of what's possible in snacking," the director of Grupo Bimbo’s venture arm Constantino Matouk said in a statement.

LiveKuna represents the latest foray by the Mexican CPG group into the better-for-you snacking category. Recently, Grupo Bimbo acquired Popcornopolis, and the conglomerate said it will expand its well-known Takis line to other categories including popcorn and nuts. It is also not the first time that Grupo Bimbo and LiveKuna have worked together. In July 2020, the two companies collaborated to develop a superfood bread in Grupo Bimbo’s BakeLab accelerator program.

Snacking — and especially salty snacking — has been growing in popularity in recent years. According to Frito-Lay’s latest U.S. Snack Index, 84% of consumers said snacks were essential to enjoying the season. And consumers are not the only ones interested in this category. In Mondelez’s State of Snacking report, the company found that the snacking segment commanded $1.2 trillion in sales, making snacks a formidable force in the food and beverage space. LiveKuna brings not only the salty taste profile that consumers crave but it is also focuses on promoting superfoods, which, in light of the continued interest from consumers in health and wellness, will likely benefit Grupo Bimbo should it choose to expand its investment or even acquire this startup.