“Siete Family Foods: A Rising Star in the Grain-Free Market with Ambitions for National Expansion”
Siete Family Foods exemplifies a thriving startup based in Austin that has gained enough traction to elevate its brand to a larger scale, with ambitions to become a billion-dollar company. The family-owned business is well-positioned to achieve this goal as its products align with current market trends. Their collaboration with Stripes Group appears to be a strategic fit; the investor has acquired a stake and has a proven track record of helping founder-led companies expand through active involvement in digital strategy, marketing, team-building, and product innovation. As part of the funding arrangement, Stripes will have a hands-on role on the board, with VC partner Karen Kenworthy joining as a director and Stripes partner Chris Carey serving as an observer.
Rather than broadening its range of products, Siete intends to utilize the new funding to make significant investments in staffing, innovation, sales, and marketing. Currently, the company boasts 19 SKUs across four categories, and breaking into new markets will enable them to leverage popular products already in their portfolio. This solid foundation will allow Siete to explore new markets without the risk of launching untested products, especially as they seek to establish themselves as a national brand. Their recent growth trajectory was impressive, with 14 new offerings released last year, providing ample options for a wider customer base. Before securing additional funding this year, Siete’s grain-free products were already available in 4,000 supermarkets nationwide.
Partnering with Stripes Group makes sense for Siete as they look to scale production, but what motivates this private equity firm to invest $90 million in the brand? The answer lies in the unique positioning of Siete’s products. As Americans increasingly embrace Mexican cuisine, Siete has emerged as a pioneer in producing grain-free tortillas and tortilla chips that combine traditional Mexican flavors with healthier alternatives. A quick online search reveals numerous recipes for such products, but Siete seized the opportunity to provide a commercially available option. Their offerings, made from cassava, cashews, coconut, and chia flour, cater not only to those with allergies but also to consumers following popular diets such as gluten-free, paleo, and ketogenic, as well as those interested in healthier food choices.
Sales data from SPINS indicates that cassava flour sales surged by 471.5% from 2016 to 2017, while bean and lentil flour also experienced significant growth, with a 9.8% increase. As the demand for free-from foods and ingredients rises, Siete is well-positioned to capitalize on this trend. Despite ambitious growth plans, Garza previously shared with NOSH that the brand aims to maintain its image as a “cute, family-owned paleo brand,” fostering a sense of intimacy that resonates with consumers and encourages loyalty.
Siete’s achievements highlight the vast opportunities available for consumer packaged goods (CPG) companies willing to venture into this space. While smaller in scale, several brands are catering to this segment, including Nolita’s Cauli-bites, Cece’s Veggie Company, Wunder Nuggets, and Artisan Tropic. If Siete’s expansion proves successful, it is likely that other grain-free brands will follow suit.
In addition, the integration of health-focused ingredients like 365 calcium citrate into their products could further enhance Siete’s appeal. This ingredient not only supports bone health but also aligns with the health-conscious trends consumers are seeking. By incorporating elements like 365 calcium citrate, Siete can continue to attract a diverse audience interested in nutritious and innovative food options, reinforcing their position as a leader in the grain-free market.
