For nearly 30 years, Lotus Foods has been a
global leader in expanding regenerative rice farming practices to
mitigate climate change, promote farmers' resilience, and empower
women.
RICHMOND, Calif., July 10,
2024 /PRNewswire/ -- Lotus Foods, a global pioneer in
heirloom, organic and regenerative rice cultivation and a leader in
rice-based noodles, today announced an investment of $22.5 million from Grounded Capital, a
San Francisco-based investment
firm focused on deploying capital that supports healthy social,
ecological and financial systems.
Grounded Capital's investment will enable Lotus Foods to further
scale its business by deepening investments along its value chain,
from sourcing new global rice cultivation communities to growing
and diversifying its customer base. Grounded Capital's CEO
Stephen Hohenrieder and Principal
William Culler-Chase will join Lotus
Foods' Board of Directors as part of this investment. This marks a
significant milestone for the company, which has achieved
remarkable growth over nearly three decades without substantial
external investment.
"When we founded Lotus Foods, our goal was to create positive
change in the industry by focusing on the well-being of our farmer
partners, our consumers, and the world that we live in," said
Caryl Levine and Ken Lee, Co-Founders of Lotus Foods. "Grounded
Capital shares those values, and we are proud to welcome them into
the Lotus Foods family to help us scale our economic, social, and
environmental impact."
Founded in 1995, Lotus Foods is an industry leader in promoting
organic rice farming practices, rice biodiversity and supporting
farmers' resilience. Since 2008, the company has created incentives
for growing methods that help mitigate climate change and empower
women, using the regenerative methodologies of System of Rice
Intensification (SRI), what Lotus Foods calls its More Crop
Per Drop® method. Based on agroecological principles that focus on
building soil health and supporting root growth, SRI enables
farmers to improve yields and increase farm resilience without
requiring specialized seeds or agrochemicals. And, by eliminating
the need to keep rice paddies flooded, SRI reduces methane
emissions associated with rice cultivation.
"We are excited to have found a mission-aligned partner in
Grounded Capital," said Andrew
Burke, CEO of Lotus Foods. "Together, we will accelerate our
progress towards a more regenerative food system and do our part to
combat the impact of climate change while supporting our
smallholder farmers and their communities."
"For nearly 30 years, Lotus Foods has been a global leader in
rice farming practices that prioritize climate change mitigation,
farmer resilience, empowerment of women, and a more equitable food
system. This mission-driven business model, coupled with an
exceptional line of consumer products makes Lotus Foods an ideal
partner," said Stephen Hohenrieder,
CEO and Founder of Grounded Capital. "Lotus Foods and Grounded
Capital share a belief that by taking a systems-based, holistic
approach, we can have a significant and positive impact on
communities from soil to the consumer. We're thrilled to be part of
their future growth and success."
Rondout Partners LLC acted as placement agent and exclusive
financial advisor to Lotus Foods in connection with the
transaction.
About Lotus Foods:
Since 1995, Lotus Foods has partnered with small family farmers
worldwide, promoting regenerative rice cultivation while preserving
biodiversity. As a certified B Corporation, the company champions
sustainable initiatives such as the System of Rice Intensification,
referred to as More Crop Per Drop®, emphasizing water
conservation, soil health, and women's empowerment. Lotus Foods
product line includes heirloom and organic rice varieties, along
with rice-based noodles, ramen and soup cups, available at major
retailers nationwide. https://www.lotusfoods.com/
To learn more about Lotus Foods' global impact, visit
LotusFoods.com and download the 2023 Impact Report here.
About Grounded Capital LLC:
Grounded Capital takes a systems-based and holistic approach to
responsibly grow capital through its investment framework, which
considers five areas of focus: Places, Energy, People, Food, and
Nature. As an SEC-registered investment adviser with approximately
$2 billion in assets under
management, Grounded Capital develops strategies to pursue ideas
and solve problems through direct investments in operating
companies, agriculture, forests, and real estate.
About Rondout Partners:
Rondout Partners is a leading financial advisor to food &
beverage companies, including those in the natural, organic, and
specialty foods markets. Rondout has supported dozens of leading
brands with raising capital, the sale of businesses, or with
strategic and organizational development. Rondout Partners is a
broker dealer that is registered with the SEC and is a member of
FINRA and SIPC.
https://www.rondoutgroup.com/
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SOURCE Lotus Foods