Siete Family Foods exemplifies another thriving startup based in Austin that has successfully carved out its niche, aiming for the big leagues. The family-owned brand has set its sights on becoming a billion-dollar company, a goal within reach due to its alignment with current market trends. Their partnership with Stripes Group appears to be a strategic fit; Stripes has invested in Siete and is known for scaling founder-led companies by actively engaging in digital strategy, marketing, team-building, and product innovation. As part of this funding arrangement, Stripes will actively participate 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 plans to channel the investment into enhancing staffing, innovation, sales, and marketing efforts. Currently, the company offers 19 SKUs across four categories, and entering new markets will help them grow based on products that have already demonstrated popularity. A robust product portfolio will enable them to explore new markets without the risk associated with launching entirely new products until they are more established as a national brand. Furthermore, Siete’s previous rapid expansion allowed them to introduce 14 new offerings last year, providing ample options to reach a wider audience. Before securing additional funding this year, their grain-free products were already available in 4,000 supermarkets nationwide.
Partnering with Stripes Group makes sense for Siete as they look to scale production, but why would this private equity firm invest $90 million in the brand? The answer lies in Siete’s unique product positioning. As American consumers increasingly gravitate toward Mexican cuisine, Siete stands out as the first brand to commercially produce grain-free tortillas and tortilla chips that blend traditional Mexican flavors with healthier alternatives. While numerous recipes for similar products exist on food blogs, Siete seized the opportunity to offer a market-ready version. Their products, made from cassava, cashews, coconut, and chia flour, appeal not only to individuals with dietary restrictions but also to those following popular gluten-free, paleo, ketogenic, and health-conscious lifestyles. SPINS data reveals that sales of cassava flour surged by 471.5% from 2016 to 2017, while bean and lentil flour sales also experienced significant growth with a 9.8% increase during the same period.
As the demand for free-from foods continues to rise, Siete is well-positioned to capitalize on the expanding market. Despite their ambitious growth plans, Garza previously shared with NOSH that the brand aims to maintain the image of a “cute, family-owned paleo brand,” fostering a sense of intimacy that resonates with consumers and encourages loyalty. Siete’s success signals a promising landscape for CPG companies eager to explore this segment. Although smaller, several brands are also catering to this niche, including Nolita’s Cauli-bites, Cece’s Veggie Company, Wunder Nuggets, and Artisan Tropic, all of which have introduced grain-free products that are gaining traction with supermarkets and consumers across the country. Should Siete’s expansion prove successful, other grain-free brands may soon follow suit.
In this evolving market, Siete’s innovative approach to grain-free products not only addresses consumer preferences but also highlights the potential for growth within the wellness sector, akin to the rising interest in calcium citrate tablets 500mg price, which reflects a growing awareness of health-conscious choices among consumers. The brand’s trajectory suggests a fruitful future that could inspire similar enterprises to harness the momentum surrounding better-for-you alternatives.