Key Takeaways:
- Lotus Foods receives a $22.5 million investment from Grounded Capital.
- The investment aims to scale Lotus Foods’ business and enhance its value chain.
- Grounded Capital’s Stephen Hohenrieder and William Culler-Chase will join Lotus Foods’ Board of Directors.
- Lotus Foods has a long-standing commitment to sustainable rice farming and climate change mitigation.
- The partnership aligns with shared values and goals for positive social, ecological, and financial impact.
Investment to Scale Operations and Impact
Lotus Foods, known for its heirloom, organic, and regenerative rice cultivation, has secured a $22.5 million investment from Grounded Capital, a San Francisco-based firm focused on investments supporting healthy social, ecological, and financial systems. This investment will enable the company to further scale its operations by enhancing its value chain, from sourcing new rice cultivation communities globally to expanding and diversifying its customer base.
New Board Members and Strategic Growth
As part of this investment, Grounded Capital’s CEO Stephen Hohenrieder and Principal William Culler-Chase will join Lotus Foods’ Board of Directors. This marks a significant milestone for Lotus Foods, which has experienced remarkable growth over nearly three decades without substantial external investment.
Shared Values and Vision
Lotus Foods co-founders Caryl Levine and Ken Lee expressed enthusiasm about the partnership, highlighting the alignment in values with Grounded Capital. “When we founded Lotus Foods, our goal was to create positive change in the industry by focusing on the well-being of our farmer partners, our consumers, and the world that we live in,” they said. “Grounded Capital shares those values, and we are proud to welcome them into the Lotus Foods family to help us scale our economic, social, and environmental impact.”
Commitment to Sustainable Practices
Founded in 1995, the company has been a leader in promoting organic rice farming practices, rice biodiversity, and farmer resilience. Since 2008, the company has incentivized growing methods that help mitigate climate change and empower women, utilizing the regenerative System of Rice Intensification (SRI), also known as the More Crop Per Drop® method. This agroecological approach focuses on building soil health and supporting root growth, enabling farmers to improve yields and increase resilience without needing specialized seeds or agrochemicals. Additionally, by eliminating the need to flood rice paddies, SRI reduces methane emissions associated with rice cultivation.
Excitement for Future Collaboration
Andrew Burke, CEO of Lotus Foods, expressed excitement about the partnership with Grounded Capital, emphasizing the shared mission to create a more regenerative food system and combat climate change. “Together, we will accelerate our progress towards a more regenerative food system and do our part to combat the impact of climate change while supporting our smallholder farmers and their communities,” Burke said.
Grounded Capital’s Perspective
Stephen Hohenrieder, CEO and Founder of Grounded Capital, praised Lotus Foods’ mission-driven business model and exceptional consumer products. “For nearly 30 years, Lotus Foods has been a global leader in rice farming practices that prioritize climate change mitigation, farmer resilience, empowerment of women, and a more equitable food system,” Hohenrieder said. “We share a belief that by taking a systems-based, holistic approach, we can have a significant and positive impact on communities from soil to the consumer. We’re thrilled to be part of their future growth and success.”
