UPDATE: July 20, 2021: Stryve Foods, the maker of air-dried meat products, said shareholders of Andina Acquisition Corp. III had approved the merger between the two entities. The specialty acquisition company changed its name to Stryve Foods Inc., with shares of the new company scheduled to begin trading on NASDAQ on or around July 21. The company will continue to be led by Joe Oblas, co-founder and co-CEO. , and Jaxie Alt, Co-CEO and Chief Marketing Officer.
Jaxie Alt, co-CEO and chief marketing officer of Stryve Foods, is decidedly optimistic when she says that her company’s air-dried meat products have the potential to disrupt the meat-based snack category, and Wall Street seems to agree. The challenge remains to convince American consumers.
“We have an amazing product, but no one has heard of it,” said Alt, who has already spent over 17 years with the former Dr Pepper Snapple Group, where she was co-director of marketing. “We have to market and educate and get people to try it.”
Now Stryve Foods will hit public markets as part of a merger with Andina Acquisition Corp. III, a specialist acquisition company, which would value the business at $ 170 million, giving the three-year-old an infusion of money to grow. its business and market its products against leaders in its category, including Jack’s Link. A separate group of private investors, including actor Channing Tatum and NFL quarterback Justin Herbert, are privately buying $ 42.5 million of common stock at $ 10 per share, which will close at the same time that merger. The deal is expected to be finalized in the second quarter.
A public offering marks the final step for the fast-growing company founded three years ago. For much of its brief existence, its portfolio included its flagship product, Stryve, the top-selling biltong brand in the United States. Last fall, it launched Vacadillos, a dried carne seca aimed at Hispanics who may not be familiar with its flagship product. . Then, in mid-December, it bought Kalahari, the second-largest biltong brand, to further strengthen its dominant position in the category.
The protein snack company has posted a compound annual growth rate of 63% in gross revenue since its debut in 2018. The pace is expected to accelerate in 2021. Sales are expected to double to $ 51 million in 2021 as Stryve strengthens its presence in e-commerce and grows. sales of its existing brands and adds more retail stores to the 20,000 locations where it already operates.
While the biltong market remains largely untapped for most Americans, the offer is becoming increasingly popular among consumers looking to eat healthier. The process of air-drying meat – compared to cooking, as is the case with beef jerky – creates a product that contains up to 50% more protein per serving, the company said. . Stryve’s meat snacks also avoid other ingredients rejected by many consumers, including sugar, MSG, gluten, nitrates, nitrites, and preservatives.
Alt said the meat snacks are the first item in Stryve’s larger Better-for-You snack platform, which will eventually expand to include other offerings such as crisps and crackers.
“We’re not scared. The meat snacks are quite competitive and we’ve found a way to play there in a very differentiated way,” she said. “This will be our same strategy: how do we find a way to get consumer insights and differentiated products that are really compelling that makes consumers want to try us and meet a need that isn’t there.” today ? ”
The healthy snack company is the latest of many food manufacturers to turn to PSPC. Hostess Brands, which is now publicly traded, was acquired through this type of investment vehicle in 2016. And century-old snack maker Utz recently went public using a blank check. Indoor greenhouse operator AppHavest is expected to hit public markets in the coming weeks following its own PSPC deal.
A blank check company is created by a fundraising entity for the purpose of merging or acquiring another business. For the companies they acquire, this is usually a faster and cheaper way to go public.
Alt said the company decided to go public using a PSPC after his meeting Andina executives because it was a much faster way to raise money than a traditional IPO or by being bought out by a larger CPG or private equity firm.
A handful of premium food manufacturers have tapped the public markets on their own over the past year, including plant-based nutritional company Laird Superfood, plant-based food maker Modern Meat and Vital Farms, the world’s largest producer of farm eggs. Others could join them this year. Plant-based egg producer and cell-based meat developer Eat Just and Swedish plant-based dairy titan Oatly have reportedly been considering IPOs, though there is no timeline to find out. when these might occur.
Alt said the success of these new entrants in the stock market bodes well for Stryve.
“When we look at this idea of bringing healthier snacks to America, I think [investors] understand, “OK, I understand what you’re trying to do, we see where consumers are heading and we think the market will respond favorably to what we are offering,” Alt said. “That’s what I think these other IPOs are showing us is that the public markets understand.