Food & Drink

Low-Sugar Vegan Candy Startup Yumy Bear Will Go Public At $50 Million Valuation

Canadian confectioner Yumy Bear that offers a line of low-sugar and vegan gummy will start trading on CSE in July under the symbol “YUMY” with an anticipated $50 million enterprise value, and plans to expand to the U.S. in 2022.

The company became the latest to enter the multibillion-dollar jellies and gummies industry that’s projected grow at a 3.5% CAGR between 2019 and 2025, Grand View Research showed, joining competitors, including Behave Candy and SmartSweets — another Canadian gummy maker that was acquired by TPG Growth, and recently made foray into the hard candy space.

Erica Williams, who is a fitness coach and athlete, launched Yumy Bear after identifying a market gap for healthy alternatives to candy incumbents, as well as affordable options within the premium aisle.

Made with three grams of sugar, 21 grams of fiber, and 115 calories per serving, the non-GMO verified Yumy Bear currently offers peach and strawberry kiwi flavors, and each bag is approximately $1 to $1.5 cheaper than its market peers.

“Our products taste amazing, and they’re naturally sweetened without sugar alcohols or artificial sweeteners,” Williams told me recently, stressing how her women-led team has also created a unique formulation process that allows Yumy Bear to deliver juicer and softer texture using plant-based ingredients instead of gelatin, an animal-derived component that’s commonly used in regular gummy.

“Yumy Bears don’t get stuck in your teeth,” she added, “and having that animal welfare and sustainable factor is really important to us.”

The candy company has previously raised $2.5 million in an oversubscribed round at a $30 million market cap, which Williams believes represents the investor hype around the vegan food in general.

“We are currently the only healthy gummy company the public can invest in,” she said, “We have seen a huge buzz around other plant-based food sectors, and I think we’ll start to see a new trend established with other low-sugar and vegan confectionery companies coming to the public market. 

“I think the buzz around the IPO will attract additional investors that will allow us to continue our expansion and aggressive growth strategy.”

Yumy Bears expects its sales to hit $1 million by year-end, and further grow to reach $5 million in 2022 after expanding to multiple markets.

Comments On Sky-High Valuation

The CPG industry has quickly called out Yumy Bear’s sky-high valuation upon its upcoming IPO, which literally represents a 50x multiple, after this article was published. Here’s the full response from Williams and the Yumy Bear team:

“We were substantially oversubscribed in all of our financing rounds and we’re the only healthy confectionery company investors can invest in. Due to the amount of consumer demand, growth in this sector and lack of investment opportunities in the healthy confectionery space, the company has become a focus of the investment community. Further, its model of targeting affordable health food is another outlet which separates it from other companies, making us very desirable to invest in. The company’s valuation is based on investor demand and competitors, such as SmartSweets which is still early in its growth cycle and achieved a $400 million valuation.”


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