Lotus Foods Announces Transformational Investment to Accelerate the Transition to a More Regenerative Food System
For nearly three decades, Lotus Foods has been a global leader in scaling up regenerative rice farming practices to mitigate climate change, promote farmer resilience and empower women.
RICHMOND, Calif. , July 10, 2024 /PRNewswire/ — Lotus Foods, a global pioneer in traditional, organic and regenerative rice cultivation and a leader in rice noodles, today announced it has received a $22.5 million investment from Grounded Capital, a San Francisco-based investment firm focused on allocating capital that supports healthy social, ecological and financial systems.
Ground Capital’s investment will enable Lotus Foods to further expand its business by deepening investments along the value chain, from discovering new global rice-growing communities to expanding and diversifying its customer base. Ground Capital CEO Steven Hohenrieder and Principal William Culler Chase will join Lotus Foods’ Board of Directors as part of the investment. This marks a significant milestone for the company, which has experienced impressive growth without significant outside investment for nearly three decades.
“When we founded Lotus Foods, our goal was to effect positive change in the industry by focusing on the well-being of our farmer-partners, consumers, and the world we live in,” said Lotus Foods co-founders Caryl Levine and Ken Lee. “Ground Capital shares those values, and we’re proud to welcome them into the Lotus Foods family and help expand our economic, social and environmental impact.”
Founded in 1995, Lotus Foods is an industry leader in promoting organic rice cultivation, rice biodiversity, and supporting farmer resilience. Since 2008, the company has been using the Regenerative System of Rice Intensification (SRI) method, which Lotus Foods calls More Crop Per Drop®, to create incentives for growing practices that help mitigate climate change and empower women. Based on agroecological principles that focus on building soil health and supporting root growth, SRI helps farmers improve yields and increase farm resilience without the need for specialized seeds or pesticides. SRI also reduces methane emissions associated with rice cultivation by eliminating the need to keep rice fields flooded.
“We are thrilled to have found a partner that aligns with our mission in Ground Capital,” said Andrew Burke, CEO of Lotus Foods. “Together we will accelerate progress toward a more regenerative food system and support small farmers and their communities while doing our part to combat the effects of climate change.”
“For almost three decades, Lotus Foods has been a global leader in rice growing practices that prioritize climate change mitigation, farmer resilience, women’s empowerment, and a more equitable food system. This mission-driven business model, combined with a great consumer product line, makes Lotus Foods an ideal partner,” said Steven Hohenrieder, CEO and founder of Ground Capital. “Lotus Foods and Ground Capital share the belief that by taking a holistic, systems-based approach, we can make a significant positive impact on communities, from the soil to the consumer. We are excited to be a 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 around the world to promote regenerative rice cultivation while preserving biodiversity. As a Certified B Corporation, the company is committed to sustainable practices. More Yield Per Drop®water conservation, soil health and women’s empowerment. Lotus Foods’ product line includes traditional and organic rice varieties, as well as rice-based noodles, ramen and soup cups, and is available at leading 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, holistic approach to responsibly growing capital through its investment framework, which considers five focus areas: Place, Energy, People, Food, and Nature. As an SEC-registered investment advisor with approximately $2 billion in assets under management, Grounded Capital pursues ideas and develops problem-solving strategies through direct investments in operating companies, agriculture, forestry, and real estate.
About Rondout Partners:
Rondout Partners is a leading financial advisor to food and beverage companies including the natural, organic and specialty foods markets. Rondout has assisted dozens of leading brands in capital raises, divestitures, and strategy and organizational development. Rondout Partners is an SEC registered broker-dealer and member of FINRA and SIPC.
https://www.rondoutgroup.com/
SOURCE Lotus Foods
