London-based better-for-you food business Hunter & Gather is planning to raise funds via a Series A round next year on the back of winning listings with UK grocery heavyweight Tesco.
The company, which has a gluten-free product portfolio including avocado oil mayonnaise, unsweetened ketchup and collagen peptides, has also brought in experienced sales and finance executives as it gears up for a push in retail.
Until now it has shipped products to more than 150,000 households in the UK via its own website and Amazon and it is also stocked in the market by retailers including Whole Foods Market but it has not had a presence in the stores of the country’s ‘big four’ grocers.
Three SKUs – all avocado oil mayonnaise products – will be stocked by Tesco, the country’s largest supermarket group, as part of its accelerator programme. They will sit alongside other mayonnaise brands rather than being in a distinct new product display.
Amy Moring, Hunter & Gather’s co-founder and CEO, is confident of success.
“In the mayonnaise category there has been premiumisation by flavour but everybody seems to have forgotten about health,” she told Just Food.
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“We are the only range that is completely seed oil-free and there are no chemicals or added sugar.”
Tesco will stock the companies classic mayonnaise in 266 stores and the flavoured varieties in 94 outlets.
The accelerator programme terms will see Hunter & Gather’s products stocked in Tesco stores for a year.
“We are hoping to prove ourselves within that period,” Moring said.
Meanwhile, Hunter & Gather, which said in November it is now targeting US consumers via its D2C platform, has added to its executive team, bringing in Ian Wilkinson, formerly of AB World Foods, as sales director, and Alan Gerbi, who worked at Innocent Drinks and The Collective, as finance director.
On Wilkinson’s appointment, Moring said: “We really wanted to invest behind someone who had knowledge in the food area and could take on the big grocers to set us up for success. We see big potential in retail.”
Hunter & Gather achieved revenue of £6.8m ($8.5m) last year and is expecting that figure to nearly double this year.
“I will be disappointed if it is less than 80% higher than last year,” Moring said.
The company has just completed a £505,000 bridging round from existing shareholders to help with cashflow and marketing costs as it moves into the retail realm.
It raised £3.8m in a funding round in 2022 and is planning a Series A round next year.
“It will be in the millions and is likely to involve new investors,“ Moring said. “We will be looking for a strategic VC or partner to lead the round.”
