It’s not as easy as stealing candy from a baby. But Irving-based Sow Good has made fast progress at disrupting the sweet-tooth industry since it launched its freeze-dried candy line in May. Now, with fresh funding, it’s gearing up to make another big, tasty move.
Sow Good—a pioneer in the freeze-dried candy that’s popping up on more and more store shelves across the country and soon around the globe—has successfully completed a $3.7 million private capital placement raised from 735,000 newly issued shares.
The company said that the share price of $5 represents an 18% premium to Sow Good’s last equity raise in 2021. Sow Good said it’s excited by the continued sales growth of its freeze-dried candy line and said this raise will help enable it to meet customer demand.
Executive Chairman Ira Goldfarb called Sow Good’s sales numbers “extremely exciting and promising,”
Their products are flying off retailers’ shelves, “which is why our customers are increasing order volume and increasing their SKUs assortment,” Goldfarb said in a statement.
Sow Good unveiled its first product line of freeze-dried fruit and veggie snacks and smoothies in 2021, including these. [Photo: Sow Good]
Growing fast, including a workforce jump of 40%
Since launching its freeze-dried candy line in May, Sow Good said that sales have continued to outpace expectations. In the last two months, the company has increased its workforce by 40%, leased a 12,000 square-foot foot warehouse, and is in the process of multiplying its production capacity.
The company has also placed deposits on three additional freeze driers to meet growing demand. Sow Good said those freeze driers will double current production capacity and will be operational in the first quarter of 2024.
“The need for immediate increased capacity is apparent,” Goldfarb said. “With our team’s extensive manufacturing expertise and passion for growth, we thrive in rapid scaling environments, and these expansion plans are only the beginning.”
Founders’ back stories make their success all the sweeter
On Sow Good’s website, Co-Founders Ira and Claudia Goldfarb share intriguing back stories.
“Entrepreneurship runs in my blood,” Ira writes. “My father, Aron Goldfarb, survived the Holocaust by hiding in a hole that he and his brother dug outside a Nazi military compound for 6 months in the frigid Polish winter. My grandfather’s last words to my father were: go my son, maybe you will survive. Not only did my father survive, he built a thriving business called Glll.”
“Sow Good is my opportunity to continue building better and spreading the entrepreneurial spirit, passion for life, and compassion that my father inspired in me, and that his family inspired in him,” Ira adds.
Claudia’s story: “My parents emigrated from Mexico to the U.S. when I was three years old. At a young age the desire to build a better life was imbued in me as I watched my father build his business from the ground up. When I was a single mom, the desire to build a better life for my two daughters was my driving force for many years.”
“My journey from being a retail store cashier to the co-founder and CEO of Sow Good was a long one,” Claudia adds, “but it has provided me and my family a level of resilience, gratitude, and love of community that are fundamental to who we are and how we approach our life and business.”
Adding many more retailers—and preparing for freeze-dried ice cream launch
Sow Good said its retail presence continues to grow with its upcoming launch into Cracker Barrel and a four-SKU launch into 300 Target stores in early September.
At the same time, Sow Good’s sales performance has maintained a strong upward trajectory with current distributors and retailers, including Hy-Vee, FYE, Big Lots, and Five Below, the company said.
Sow Good said its partnership with Five Below has expanded from two candy SKUs to four and will include SKUs from Sow Good’s upcoming freeze-dried ice cream line, which is expected to launch across all channels in Q4 2023.
International launch begins in Israel
The company said its expansion into the Israeli market has yielded notable success as well, marking the first introduction of such treats in the region and Sow Good’s first foray into international markets.
Sow Good started out selling freeze-dried snacks, soups, and smoothies, but has recently switched gears. According to its website, “Due to an overwhelming surge in demand for our delightful freeze candy, we have decided to focus all our efforts on meeting your sweet cravings. As a result, we are temporarily pausing the production of our other product lines.”
Sow Good plans to resume making snacks and other products at a later date. In the meantime, the company is focused on global candy domination.
“Our expansion efforts, strategic partnerships, and foray into international markets are all in alignment with our pursuit of relentless innovation and mission to revolutionize and disrupt the candy industry,” Sow Good CEO Claudia Goldfarb said in a statement.
Sandra Engelland contributed to this report.
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