Canadian confectioner Yumy Bear, which offers a line of low-sugar and vegan gummy candies, will begin trading on CSE in July under the symbol “YUMY” with an expected enterprise value of $ 50 million, and expects to expand into the United States in 2022.
The company has become the latest to enter the multi-billion dollar jelly and gummy candy industry which is expected to grow at a 3.5% CAGR between 2019 and 2025, Grand View Research has shown, joining competitors including Behave Candy and SmartSweets – another Canadian gummy candy maker that was acquired by TPG Growth, and recently made a foray into the hard candy space.
Erica Williams, who is a fitness trainer and athlete, started Yumy Bear after identifying a market gap for healthy alternatives to candy holders, as well as affordable options in the premium aisle.
Made with three grams of sugar, 21 grams of fiber, and 115 calories per serving, the verified non-GMO Yumy Bear currently features strawberry peach and kiwi flavors, and each bag costs around $ 1 to $ 1.5 cheaper. than its market peers.
“Our products taste amazing and they’re naturally sweet with no sugar alcohols or artificial sweeteners,” Williams told me recently, noting how her female-led team also created a unique formulation process that allows Yumy Bear to. providing a smoother texture and more herbal ingredients instead of gelatin, an animal component commonly used in regular gummy candies.
“Yumy Bears don’t get stuck in our teeth,” she added, “and having that animal welfare and sustainability factor is really important to us.”
The candy company has already raised $ 2.5 million in an oversubscribed fundraiser at a market cap of $ 30 million, which Williams says represents the investor hype around vegan food in general. .
“We are currently the only healthy gum company that the public can invest in,” she said. “We’ve seen a huge buzz around other plant-based food sectors, and I think we’re going to start to see a new trend taking hold with other weak – vegan candy and confectionery companies coming in. on the public market.
“I believe the buzz surrounding the IPO will attract additional investors who will allow us to continue our strategy of aggressive expansion and growth.”
Yumy Bears expects its sales to reach $ 1 million by the end of the year, and continue to grow to $ 5 million in 2022 after expanding into multiple markets.