The Hershey Co. is among the lead investors in a $20 million series B round for Blue Stripes, a New York-based startup that makes a range of products from cacao. Other lead investors in the round include Amazon-owned grocery chain Whole Foods Market and food-focused venture capital fund Zintinus.
Founded in 2018, Blue Stripes makes water, chocolate bars, trail mix and other products from cacao, seen as a good source of antioxidants and other nutrients.
The company’s process uses portions of the cacao fruit that are typically thrown out in traditional chocolate-making processes, reducing food waste and boosting income for cocoa farmers, who are clustered in West Africa.
Blue Stripes’ founders include Oded Brenner, who previously founded chocolate retail chain Max Brenner.
The background: Dauphin County-based Hershey has made several investments in food-related startups in recent years, sometimes through its venture capital arm, C7 Ventures.
Indeed, C7 made a minority investment in Blue Stripes in 2019, according to reports at the time.
Hershey does not disclose its investments, but the company’s annual reports detail spending on what are described as “unconsolidated affiliates.”
They include ownership interests in emerging snacking business and startups but also equity investments in projects generating tax credits that reduce the company’s tax bill.
According to its most recent annual report, Hershey invested $207.2 million in such affiliates in 2023, up from $133 million in 2022.
