Snacks brand PeaTos raises funds through Series B round

US-based snacks brand PeaTos has raised $12.5m through Series B round led by cereals and egg supplier Post Holdings.

Proceeds from this funding round will help PeaTos to “continue driving its mission to revolutionise” chips by adding nutrient-dense pea to traditional corn base and replacing artificial colours and flavours with more natural ingredients.

This is PeaTos’ second investment round in less than six months. It raised $7m through Series A round.

PeaTos claimed that it experienced growth by creating a better form of “junk food” with nutrients and flavours just as conventional snacks.

PeaTos brand founder and CEO Nick Desai “The days of trading flavour for nutrition are behind us. Today’s consumers will not accept a compromise and that is the holy grail of snacking PeaTos makes good on.”

It expects to leverage partnerships and tap the digital landscape to expand further.

Desai added: “We are honoured by this investment from Post and their confidence in the PeaTos brand. Post has a long history of success in the CPG space and we are honoured to have them as part of our mission. The proceeds of this funding round will give us the ability to further execute on our ambitious strategic plan.”

Post consumer brands president and CEO Howard Friedman said: “We are very excited to begin our partnership with Nick and the Peatos brand. We believe it has a bright future and we can learn a lot from their entrepreneurial culture and gain an understanding of the fast-growing snacking space.”

PeaTos brand is available in more than 4,700 retailers, which include Kroger and its banner stores such as King Soopers, Fred Meyer, Ralphs, Dillons and Smith’s. It is also available at Vons, Pavilions, Albertsons, Safeway, Sprouts and Sam’s Club.

Meanwhile, this month, Post completed the acquisition of Almark Foods, an egg supplier for the retail and foodservice channels.

In December, Post also announced the acquisition of Peter Pan peanut butter brand from Conagra Brands, expected to close in Q1 2021.