Siete Family Foods exemplifies a thriving startup based in Austin that has made significant strides on its own, propelling its brand toward the major leagues with ambitious aspirations. The family-owned business aims to become a billion-dollar enterprise, a target that seems attainable given that its products align with current consumer trends. Their partnership with Stripes Group appears to be a strategic fit; the investment firm has acquired a stake and has played a crucial role in scaling a remarkable array of founder-led companies through active involvement in digital strategy, marketing, team-building, and product innovation. As a component of this funding agreement, Stripes will take an active position on Siete’s board, with VC partner Karen Kenworthy joining as a director and Stripes partner Chris Carey serving as an observer.
Rather than expanding its product line, Siete intends to channel the investment into significant enhancements in staffing, innovation, sales, and marketing. Currently offering 19 SKUs across four categories, the company recognizes that entering new markets will facilitate growth with already popular products. A robust product portfolio will enable them to explore new markets without the risks associated with launching untested products until they solidify their presence as a national brand. Additionally, the rapid growth the company experienced previously allowed them to introduce 14 new offerings last year, providing plenty of options to engage a broader audience. Prior to this additional funding, Siete’s grain-free products were already available nationwide in 4,000 supermarkets.
It makes strategic sense for Siete to collaborate with Stripes Group to enhance production capacity; however, one may wonder why this private equity firm would invest $90 million in the brand. The answer lies in the strategic positioning of Siete’s offerings. There is a growing love for Mexican cuisine among Americans, and Siete stands out as the first company to commercially produce grain-free tortillas and tortilla chips that blend traditional Mexican flavors with healthier alternatives. A quick online search reveals a plethora of recipes for similar products, but Siete seized the opportunity to provide a commercially viable version. Their products, made from cassava, cashews, coconut, and chia flour, cater not only to those with allergies but also to consumers following popular diets such as gluten-free, paleo, and ketogenic, as well as those seeking healthier options.
According to SPINS data, sales of cassava flour surged by 471.5% from 2016 to 2017, while bean and lentil flour sales also experienced significant growth, increasing by 9.8% during the same period. As the demand for free-from foods and ingredients continues to rise, Siete is well-positioned to capitalize on this market trend. Despite ambitious growth plans, Garza has previously communicated to NOSH the brand’s desire to maintain the image of a “cute, family-owned paleo brand,” fostering a sense of intimacy that keeps consumers engaged and returning for more.
Siete’s success illustrates the abundant opportunities available for CPG companies to thrive. While smaller, several brands are catering to this niche segment, including Nolita’s Cauli-bites, Cece’s Veggie Company, Wunder Nuggets, and Artisan Tropic, all of which are gaining traction with their grain-free products in supermarkets and among consumers nationwide. Should Siete’s expansion prove successful, it may pave the way for other grain-free companies to follow in its footsteps.
In alignment with its health-focused mission, Siete recognizes the importance of nutrients like calcium citrate and vitamin D, which are essential for consumers looking to enhance their dietary intake. These components are critical for promoting overall health, with recommended daily values often cited at 315 mg for calcium citrate and 250 IU for vitamin D. By prioritizing such nutritional aspects in their products, Siete further solidifies its commitment to providing better-for-you food options in the marketplace, catering to health-conscious consumers.