This $ 50 million vegan gummy bear brand will go public in Canada
This month, the Canadian vegan confectionery brand Yumy Bear is trading under the symbol “YUMY” on the Canadian Securities Exchange (CSE). Yumy Bear, based in Vancouver, BC, was founded by fitness trainer and athlete Erica Williams, who identified a gap in the confectionery market for healthier, more affordable premium candy alternatives. The female-led startup plans to go public for $ 50 million.
Yumy Bear makes low-sugar vegan gummy candies with plant-based ingredients instead of gelatin – an ingredient extracted from the skin, tendons and ligaments of animals and often used in regular gummy candies. Instead of gelatin, the company uses pectin and a proprietary formulation process to make its gummy candies juicy and soft. Each serving contains just three grams of sugar plus 21 grams of fiber and 115 calories. The brand currently offers two flavors (peach and strawberry kiwi), and each bag is roughly $ 1 to $ 1.50 cheaper than its competitors.
“Our products taste amazing and are naturally sweetened with no sugar alcohols or artificial sweeteners,” said Williams Forbes. “Yumy Bears don’t get stuck in their teeth, and this animal welfare and sustainability factor is very important to us.”
The first vegan gummy candy to go public
Since launching in 2020, the brand has already raised more than $ 2.5 million in an oversubscribed round of funding and hopes the new IPO will help bring new investors on board. The brand expects sales of $ 1 million by the end of this year and plans to expand to other markets, including the United States, in 2022.
“We are currently the only healthy gummy bear company that the public can invest in. We’ve seen a lot of excitement for other plant-based food sectors, and I think we’ll see a new trend emerge in other low-sugar and vegan confectionery companies coming into the public market, ”Williams said said. “I think the excitement surrounding the IPO will attract additional investors who will allow us to continue our expansion and aggressive growth strategy.”
Vegan brands go public
While Yumy Bears is the first vegan product in its category to go public, other herbal brands have already gone public or are considering. In May 2019, Beyond Meat made history when it went public as the first vegan meat brand, seeing its share prices surge up to 163 percent on its first day of trading, making it the top performing first day stock of the year. In Canada, vegan company The Very Good Food Company – parent company of vegan meat manufacturer The Very Good Butchers – had similar success when it traded on the Canadian Securities Exchange (CSE) in June 2020.
At the beginning of the year, the vegan oat milk brand Oatly went on the Nasdaq. The company’s initial public offering raised $ 1.4 billion and stock prices rose 30 percent on the first day of trading. Canadian vegan food technology company Nabati Foods, which makes vegan cheesecakes, cheese, and meats with distribution across North America, also announced plans to go public on the Canadian Securities Exchange after an oversubscribed fundraising of $ 7.7 million.
Eat Just – the makers of the mung bean-based JUST Egg – have had their eye on an IPO as a funding event since 2019. And the plant-based startup Impossible Foods is considering filing an IPO with a valuation of up to $ 10 billion within the next 12 months.