Colorado Springs Startup Uses Acquisition Strategy to Fuel Growth
FoodMaven brings Anderson Boneless Beef into the fold
Citing strong alignment, FoodMaven announced the close of its first formal acquisition, purchasing Denver-based Anderson Boneless Beef for an undisclosed amount as part of the company's ambitious expansion plans. The acquisition will allow the young business to add meat processing capabilities to its functionality and expand the startup by 35 employees.
"This is our first acquisition and a big milestone for FoodMaven," says Patrick Bultema, FoodMaven's founder and CEO. "Not only will we grow our company size, but we'll be able to process oversupplied proteins, which is key for our mission of ensuring all food gets used with good purpoes."
According to the federal government, between 30 percent and 40 percent of U.S. agricultural produce goes to waste, while nearly 12 percent of the nation's population struggles to find food.
Headquartered in Colorado Springs and launched in 2015, FoodMaven aims to tackle the $161 billion (a year) problem, developing new pathways for lost food with its online marketplace. The triple-bottom-line business model allows high-quality, natural food to be distributed more efficiently than traditional outlets.
With this acquisition, FoodMaven will offer customers customized cuts of meat and be able to capture and process otherwise lost product, redistributing it as part of the effort to improve stewardship of food.
The Anderson Meat Company has distributed all-natural meat products to more than 400 customers across the Front Range and Colorado mountain communities since 1976.
"Joining FoodMaven gives Anderson Boneless Beef the opportunity to be part of something bigger," says Charlie Tan, founder and CEO of Anderson Boneless Beef. "FoodMaven's mission is so important and we're excited to be part of it."
Tan will continue as a consultant for the first three months following the purchase to steer the transition and will remain an advisor thereafter.
Though details remain under wraps, the startup is gearing up for its Series B capital raise, expected to close this year. Toward the finale of 2018, FoodMaven announced its expansion into the Dallas, Texas market, with plans to continue growth in six additional markets this year, and achieving revenues of $1 billion within the next five years.