CHICAGO — Riceworks, a rapidly-growing maker of wholesome, gluten-free gourmet rice snacks, has landed a significant funding package from Decathlon Capital.
With the seven-figure investment from Decathlon and additional equity raised from affiliated sponsors as part of the transaction, Riceworks is undertaking aggressive expansion of its distribution in the United States and Canada. The company also will introduce new product lines.
Riceworks, headquartered in Chicago, has developed branded rice-based snacks that include chips in five flavors as well as three flavors of Omega-3 bars. The products, which focus on the better-for-you, natural healthy snack segment, rely on whole grain rice and are gluten-free with no artificial flavors or preservatives.The company’s products are available in more than 7,500 locations, including major grocery and warehouse clubs as well as convenience stores across the United States and Canada.
“Consumers have enthusiastically embraced the delicious, real and wholesome snacks developed by Riceworks,” said Rick Letizia, President and Chief Operating Officer of the company. “This additional funding supports the company’s aggressive plans to expand distribution into new geographies and open multiple new channels.”
Jeff Posner, Chief Executive Officer of Riceworks, said the company’s revenue-based financing agreement with Decathlon provides important flexibility as Riceworks strengthens its position in the better-for-you snacks segment. “This investment is a revenue-based finance arrangement,” Posner said. “Riceworks is not required to give up equity or ownership for growth capital. Instead, the investment will be repaid through Riceworks’ future revenue.”
Kevin Grossman, Vice President of Decathlon Capital Partners, said the experienced management team of Riceworks has a track record of building and managing large consumer brands. “With a skilled, well-respected leadership team, ownership of two process patents in North America, Europe and Asia, and a pipeline of delicious new products, Riceworks has created a strong platform for continued growth as a significant player in the expanding natural healthy snack segment,” Grossman said.
Beginning in 2005 with the experiments of a family rice grower who created snacks made with brown rice, Riceworks products have evolved and grown to include a variety of rice chips and rice-based Omega 3 bars. Today, every delicious Riceworks product is gluten-free with no artificial flavors or preservatives. Riceworks whole grain gourmet rice chips and O3MG bars are sold in grocery stores, warehouse clubs and convenience stores across the United States and Canada.
Decathlon Capital Partners provides growth capital for companies seeking alternatives to traditional equity investment. Through the use of highly customized revenue-based financing solutions, Decathlon provides long-term growth capital without the dilution, loss of control and operational overhead that often comes with equity-based funding. With offices in Palo Alto and Park City, Decathlon is the largest revenue-based funding investor in the U.S. and is active across a wide range of sectors.