Oats Overnight’s latest capital injection to boost manufacturing and distribution
30 Jul 2024 --- US-based Oats Overnight has raised US$35 million in Series B capital, which the company will use to grow its spoon-free, high-protein oats brand, which features more than 50 flavors. The company’s model involves customers directly in the R&D process.
Every month, a new product is shared pre-launch with active subscribers. The R&D team communicates directly with these consumers to understand how the product is received. Once survey results are reviewed, the team decides whether to launch the product.
To support iterative product development and growth, Oats Overnight has made significant investments in its manufacturing facilities. The company opened a new facility in Ohio, US, in 2023 and one in Arizona in June. The capital investment will continue to support the build-out of the company’s manufacturing and product development capabilities.
“This capital will help us continue our expansion in the retail channel, further develop our manufacturing and distribution footprint and drive new innovation in collaboration with our community of subscribers,” says Brian Tate, founder and CEO of Oats Overnight.
Consumer-facing ventures
The round was led by Enlightened Hospitality Investments, a pioneering investment firm that fuels growth in “people-first” organizations and has considerable experience in bringing consumer-facing businesses to the venture.
“Now more than ever, consumers are looking for protein-rich, craveable food,” says Nina McKinney, chief strategy officer at Oats Overnight. “Our model allows us to create products that meet these expectations faster than ever before. Working directly with subscribers to fine-tune these formulas pre-launch ensures our innovation pipeline is always in line with consumers’ evolving preferences.”
The round was participated in by new investor Sonoma Brands Capital and existing investors, including Impatient Ventures, Singh Capital Partners, Morrison Seger Venture Capital Partners and BFG Partners.
On-the-go nutrition
Oats Overnight’s oatmeal is prepped at night for use in the morning. The company’s founder, former poker player Brian Tate, created the first recipes in a search for a nutritional breakfast that would fit his busy schedule.
“Controlling the process from procurement to fulfillment has been a key tenet of our business since inception. Complete ownership of our supply chain increases resilience, while owning manufacturing allows us to produce high-quality products in an iterative way. This process is critical for executing our product development strategy,” says Vincent Comerford, chief operating officer at Oats Overnight.
In other industry news, a new report by Garage Gym Reviews aims to bust the “myth” of plant-based protein being an incomplete source of essential amino acids, arguing that many of the most popular vegan proteins contain all nine essential amino acids — histidine, isoleucine, leucine, lysine, methionine, phenylalanine, threonine, tryptophan and valine.
