In the competitive world of consumer packaged goods, few stories are as inspiring as that of Partake Foods. Founded by Denise Woodard in 2016, this allergy-friendly snack company has risen from humble beginnings to secure multi-million dollar investments, including backing from music mogul Jay-Z. Let's dive into the remarkable fundraising journey of Partake Foods and explore the lessons it offers to aspiring entrepreneurs.
The Birth of a Mission-Driven Brand
A Mother's Love Sparks Innovation
Partake Foods wasn't born in a boardroom or a venture capital firm. It started in the kitchen of a concerned mother. When Denise Woodard's daughter was diagnosed with severe food allergies, she struggled to find safe, tasty treats for her child. Frustrated by the lack of options, Woodard took matters into her own hands.
"I dreamed of a brand that made products that tasted good, that had ingredients I felt good about sharing with my family, but was cool enough that someone without food allergies would choose to also eat it." – Denise Woodard
This vision became the cornerstone of Partake Foods' mission: to create delicious, allergy-friendly snacks that everyone could enjoy, regardless of dietary restrictions.
From Corporate Career to Entrepreneurial Leap
Woodard's journey wasn't a straight path from idea to success. She left a stable career at Coca-Cola, where she had worked for over a decade, to pursue her dream. This move required not only courage and conviction but also a significant financial risk. Woodard's experience at Coca-Cola, however, proved invaluable, providing her with insights into brand building, product development, and market strategy that would later inform her approach to Partake Foods.
The Early Stages: Bootstrapping and Small Wins
Self-Funding and Creative Solutions
Like many startups, Partake Foods began with bootstrapping. Woodard invested her own savings, approximately $100,000, and even sold her engagement ring to keep the business afloat in its early days. This personal investment demonstrated her commitment to the cause and would later impress potential investors.
Leveraging Small Opportunities
- Kickstarter Campaign: An early crowdfunding effort in 2017 raised over $30,000, providing initial capital and market validation.
- Pitch Competition Success: Winning a local business pitch competition gave Partake Foods its first taste of public recognition and a small financial boost of $10,000.
Building Retail Relationships
Woodard's approach to securing retail partnerships was hands-on and grassroots:
- She personally visited over 100 natural food stores in New Jersey and New York.
- Armed with samples and a compelling story, she pitched her products directly to store managers.
- Her goal was to be in 50 stores by the end of the first year, conducting demos to gather customer feedback.
This strategy not only secured initial retail placements but also provided valuable market insights that would prove crucial in future fundraising efforts. By the end of 2018, Partake Foods was in over 350 stores.
Challenges and Perseverance: The Road to Serious Funding
Overcoming Manufacturing Hurdles
One of the biggest challenges Partake Foods faced was finding a manufacturing facility that could produce allergen-free products. Through persistence and networking, Woodard secured a partnership with one of the few facilities in the country capable of meeting their stringent requirements. This facility, located in Colorado, was certified free from the top 8 allergens, ensuring the safety and quality of Partake's products.
The Reality of Rejection
Woodard's fundraising journey was far from easy. She faced a staggering 86 rejections from potential investors over a period of 18 months. Reasons varied from:
- "It's too early."
- "The market isn't big enough."
- Lack of understanding of the allergy-friendly food sector.
Despite these setbacks, Woodard remained committed to her vision, drawing strength from her daughter and the broader community she aimed to serve. She used each rejection as an opportunity to refine her pitch and business model.
The Breakthrough: Securing Major Investment
From 86 "No's" to a Multi-Million Dollar "Yes"
In June 2019, Partake Foods achieved a landmark success:
- Raised $1.1 million in seed funding
- Led by Jay-Z's Marcy Venture Partners
- Woodard became the first Black woman to raise more than $1 million for a packaged food or beverage company
This investment was a game-changer, providing not just capital but also invaluable publicity and industry credibility. The involvement of Jay-Z's venture firm brought significant media attention, helping to amplify Partake's brand awareness.
Key Factors in Securing Investment
Proven Market Traction: By the time of this investment, Partake Foods had already secured partnerships with major retailers like Whole Foods and Wegmans, demonstrating market demand.
Clear Market Need: The growing awareness of food allergies and demand for inclusive snack options resonated with investors. According to Food Allergy Research & Education (FARE), up to 32 million Americans have food allergies, including 5.6 million children under age 18.
Founder's Resilience: Woodard's persistence through numerous rejections demonstrated her commitment and adaptability, key traits that investors look for in entrepreneurs.
Unique Product Offering: Partake Foods stood out with its allergen-free, tasty, and nutritious snacks in a market dominated by less healthy options. Their products are free from the top 8 allergens and are vegan and gluten-free.
Leveraging Success: Expanding Reach and Impact
Rapid Retail Expansion
Post-investment, Partake Foods experienced accelerated growth:
- Launched nationally in Target stores in 2020, reaching over 1,600 locations
- Expanded presence in Whole Foods, The Fresh Market, and Sprouts, growing from 350 stores in 2018 to over 2,700 by 2021
- Introduced new product lines and seasonal offerings, expanding from cookies to baking mixes and breakfast mixes
Community Impact and Brand Building
Woodard used the company's newfound prominence to:
- Partner with nonprofits like The Food Equality Initiative to provide food to allergen-sensitive, food-insecure families, donating over 30,000 meals in 2020.
- Amplify other BIPOC-owned businesses, recognizing the rarity of her success in the industry. Woodard launched the Black Futures in Food & Beverage program, providing fellowships and mentorship to BIPOC students interested in consumer packaged goods careers.
- Engage in broader conversations about race and representation in the food and beverage sector, speaking at industry events and in media interviews about the importance of diversity in entrepreneurship.
Fundraising Strategies and Lessons
1. Nurture Relationships Early and Consistently
Woodard's experience with Target illustrates the importance of long-term relationship building:
- Initial contact at a trade show in 2017
- Continuous updates and nurturing of the relationship over three years
- National launch in Target stores in 2020
Lesson: Major retail partnerships often take years to develop. Consistent communication and updates are key.
2. Be Prepared for Opportunities
Woodard emphasizes the importance of being ready when opportunities arise:
"It's not often that you're going to get more than one shot with some of the large retailers. So make sure you're ready to put your best foot forward, that you have everything buttoned up from a supply chain perspective, that you have the marketing budget ready to support the accounts because once you get your chance, it's showtime."
This preparedness allowed Partake to successfully scale when major opportunities like the Target launch presented themselves.
3. Leverage Digital Marketing Strategically
As the business grew, Partake Foods adapted its marketing strategies:
- Shifted from in-person demos to digital campaigns, particularly during the COVID-19 pandemic
- Focused on email marketing for cost-effective customer engagement, growing their subscriber list to over 100,000
- Utilized platforms like Instacart for targeted, conversion-focused advertising, seeing a 200% increase in online sales in 2020
4. Maintain Brand Integrity Throughout Growth
Woodard credits her corporate experience at Coca-Cola for understanding the importance of consistent brand experience:
"I think oftentimes entrepreneurs think of a brand as my logo or my website or just my packaging, but I think it's every single touchpoint that a consumer has with your brand."
This approach has helped Partake Foods maintain its mission-driven identity even as it scales, ensuring that every product, social media post, and customer interaction aligns with their core values.
5. Embrace Transparency and Vulnerability
Throughout her fundraising journey, Woodard found strength in:
- Being open about her struggles and needs, which helped build authentic connections with investors and customers
- Asking for help and advice from more experienced entrepreneurs, leading to valuable mentorship relationships
- Sharing her story authentically, which resonated with investors and customers alike, creating a loyal community around the brand
The Future of Partake Foods and Inclusive Fundraising
Continued Product Innovation
Partake Foods continues to expand its product line, with plans including:
- Seasonal flavors like pumpkin spice and birthday cake, catering to consumer demand for variety
- Expansion beyond cookies into new snack categories, including soft-baked cookies and savory options
- E-commerce exclusive offerings to test market demand and build direct customer relationships
Advocating for Diversity in Funding
Woodard's success has highlighted the disparities in funding for BIPOC and women-owned businesses. She actively works to:
- Mentor other entrepreneurs from underrepresented backgrounds, dedicating over 100 hours annually to mentorship programs
- Speak out about the need for more diverse representation in the CPG industry, participating in panels and interviews to raise awareness
- Encourage investors to broaden their portfolios to include more diverse founders, citing statistics that show only 0.0006% of venture capital funding goes to Black female founders
Setting New Industry Standards
Partake Foods is not just selling cookies; it's setting new standards for:
- Allergen-free manufacturing practices, working with suppliers to implement rigorous testing and safety protocols
- Inclusive product development, considering a wide range of dietary needs and preferences in their innovation pipeline
- Socially conscious business operations, including sustainable packaging initiatives and ethical sourcing practices
Conclusion: Lessons for Aspiring Entrepreneurs
The Partake Foods fundraising story offers valuable insights for all entrepreneurs:
Passion and Purpose Matter: A strong mission can sustain you through challenging times. Woodard's personal connection to the cause of allergy-friendly foods drove her through 86 rejections.
Persistence Pays Off: 86 rejections preceded a multi-million dollar investment. This persistence not only led to funding but also refined Partake's business model and pitch.
Build Relationships Early: Major partnerships often take years to cultivate. Woodard's early outreach to retailers like Target paid off years later.
Be Prepared for Opportunity: Success often comes when preparation meets opportunity. Partake's ability to scale quickly when major opportunities arose was crucial to their growth.
Leverage Your Unique Story: Personal experiences can differentiate your brand in a crowded market. Woodard's journey as a mother and a Black female entrepreneur resonated with investors and customers.
Give Back and Lift Others: Success is more meaningful when shared and used to create opportunities for others. Partake's community initiatives and advocacy work have strengthened its brand and impact.
Denise Woodard's journey with Partake Foods from a kitchen experiment to a nationally recognized brand is a testament to the power of perseverance, mission-driven business, and strategic fundraising. As the company continues to grow, with projections to reach $20 million in revenue by 2022, it stands as an inspiration for entrepreneurs everywhere, especially those from underrepresented backgrounds, proving that with the right mix of passion, preparation, and persistence, sweet success is possible.
