In the vibrant landscape of Nashville, Tennessee, a unique brand has emerged, shaking up the traditional notions of nut snacks: Daily Crunch. Established in 2020 by Laurel Orley, her aunt Diane, and experienced entrepreneur Dan Stephenson, this company specializes in sprouted and dehydrated nut products. Recently, Daily Crunch successfully secured $4 million in a Series A funding round, led by the state-backed VC firm Launch Tennessee. The exciting infusion of capital aims to bolster the brand’s product array, enhance retail visibility, and increase production capabilities.
Daily Crunch has effectively harnessed the ancient technique of nut sprouting to create a product that stands out not only for its flavor but also for its nutritional value. This sprouting process, learned by Diane Orley during her travels to India two decades ago, transforms the nuts into a more digestible form while enriching their nutrient profiles. Unlike traditional roasted nuts, these sprouted varieties are dehydrated at low temperatures, which preserves their inherent flavors and maximizes nutrient absorption by breaking down phytic acid, a compound known to hinder the uptake of essential minerals.
Navigating the challenging terrain of fundraising in the current financial climate is a daunting task for many startups, and Daily Crunch is no exception. Recognizing the unique challenges presented in the snack food sector, the team adopted a novel approach. Rather than stick with conventional funding strategies, they tapped into their local Nashville roots to allure investors who typically focus on healthcare. As Laurel Orley, the CEO, emphasized, “We had to think outside the box.” This connection to the local community and willingness to innovate set them apart in an industry predominantly driven by coasts—highlighting the versatile nature of modern venture capital.
With this new influx of funds, Daily Crunch aims to amplify its production capabilities significantly; their manufacturing partner has reportedly enhanced its output fivefold. This increase is critical for meeting the growing consumer demand for their unique nut snacks. Daily Crunch is not just focused on ramping up production; they have a carefully curated strategy for product launches, introducing only one or two new SKUs per year to maintain quality and avoid overextension.
At the heart of Daily Crunch’s success lies its patented four-day sprouting and dehydrating process. This method does not merely elevate the nutritional quality of their snacks but also cultivates a distinctive crunch, setting the brand apart from competitors. Orley points out that their intriguing sprouting technique significantly transforms the texture and taste of nuts, making them appealing even to those who have never favored nuts. This unique element captures consumer interest and opens up a broader market for innovative nut snacks.
Currently, Daily Crunch’s product roster features a delectable array of seven flavors, ranging from classic sprouted almonds to creative options such as Nashville Hot and Dill Pickle—both of which reflect local culinary influences but also tap into broader flavor trends. Their collaboration with Cleveland Kitchen to incorporate fermented foods showcases their commitment to sustainability by upcycling leftover pickle ends.
While e-commerce has provided strong growth for Daily Crunch, the brand remains committed to physical retail expansion. Strategic partnerships with major retailers, including Target, have allowed the company to significantly increase its visibility and sales. In-store sampling strategies have proven effective, letting consumers experience the signature crunch firsthand, which is crucial in enticing hesitant customers.
As Daily Crunch gears up for an ambitious growth phase in 2025, its goal is to secure distribution in a major national retailer by the end of 2024. Orley emphasizes the significance of understanding each retail partner’s individual needs to drive success. Their commitment to tailored partnerships and innovative product offerings is driving their growth trajectory in a booming healthy snack market.
According to Nielsen, Daily Crunch has recently emerged as the number one selling sprouted brand across all distribution channels, with remarkable revenue achievements that position the company favorably against private-label brands and fierce competitors like Purely Sprouted and Karma Nuts.
With the health snack market primed for rapid expansion, Daily Crunch is poised to lead the nut snack sector in the U.S. Despite holding just 0.1% of a multi-billion dollar market, the upward trajectory indicates significant potential for growth. Their innovative approach to capital raising, processing methods, and retail strategies positions them for remarkable success in the evolving landscape of healthy snacking. With ongoing product innovations and a clear vision for the future, Daily Crunch is not just capitalizing on market trends; they are redefined how consumers view and enjoy nut snacks.