SnackNation, a snack delivery service startup aims to satisfy snack cravings with healthier snacks.
SnackNation, a snack delivery service startup aims to satisfy snack cravings with healthier snacks. The company seeks to replace, in many homes and offices across America, the high-calorie items like gummies and chips, introducing customers to low-calorie snacks that are better for you.
The firm announced yesterday that it raised $12 million in a series B funding round led by 3L Capital. This latest round of funding brings the overall amount raised to $22.5 million.
SnackNation was founded in 2014 by current CEO, Sean Kelly, The company's core business is to deliver monthly curated packages filled with healthier snack options to their customers. The firm offers over 5000 better-for-you snack options.
To be considered for delivery, each snack is put through the company's rigorous internal review process.
The Company has also built a healthy business within its core operation by providing big snack brands with insights into how customers interact with their products. We are talking reviews, feedback, taste tests, etc.
Through its vast network of over 500,000 customers across the country, the company collects a little under 5 million data points. These data points include consumer purchasing habits, product ratings, and many more.
The company then sells the data it collects back to the various snack companies who participate in the company's delivery offerings.
“We have used the insights to improve some flavors," said Robert Mock, co-founder and CEO of Ocean’s Halo. "The feedback we received on one of our products helped us in the decision to discontinue that line of snacks. We share SnackNation insights with investors, board members and retailers like Whole Foods and Sprouts."
SnackNation has invested a considerable amount of resources to try and capture a healthy portion of the office snack delivery market and counts Microsoft and MailChimp among its customers.
Prices for offices start at $299 a month for 140 – 160 single-serving snacks (consumer boxes start at $9.99). The company plans to spend some cash to open up new distribution channels into hospitality and transportation and bolster its consumer business.
The company also plans to make investments into its technology infrastructure and to make strategic acquisitions. The company recently acquired Love With Food, a subscription snack box company it hopes will help boost its growing data business.
To be able to execute on all growth and business improvement plans, Kelly said his company needs to always be a step ahead of the competition and think outside the box.
"As an entrepreneur you’ve got to be fucking nimble. You've got to be agile. You've got to realize that every day something is new and you've got to have plans and forecasts, but you’ve got to be ready to move away from them," he said. "Once you come to grips with that and you accept it and you realize that you're never just going to have made it -- it's pretty cool."