Good Good closes $3m funding round to fuel growth of its no-sugar-added brand of jams, syrups, and spreads

28-May-2020 - Last updated on 28-May-2020 at 15:18 GMT

Icelandic brand Good Good, which makes no-sugar-added jams, syrups, and a chocolate hazelnut spread sweetened with stevia and erthyritol, has closed a $3m Series A round of investment led by Icepharma, AtonJL and Svanhildur Nanna Vigfusdottir along with other private investors located in the US and Europe.

“Those investors have rich investment experience, and can all offer help to this project. Furthermore, they shared the same vision as the co-founders in terms of creating a sustainable better-for-you-brand to assist people as a stepping stone towards healthier lifestyles without added sugars,” Good Good co-founder and CEO, Gardar Stefansson, told FoodNavigator-USA.

"We found that by swapping sugar for stevia, we were able to limit sugar intake without taking away sweet treats from our loved ones.

"From there, we just couldn’t stop experimenting and one of the first products we made were home-made sugar free jams that we made in our kitchen. These jams became extremely well received by friends and family and spurred the first and most popular line of Good Good spreads."

According to Stefansson, the funding will be used to fuel the brand’s US presence by stepping up marketing and branding efforts, distribution, and support future product line introductions including its ‘Krunchy Keto’ bars and new jam flavors, concord grape jelly and salty caramel. Good Good products are currently available in 1,800 stores nationwide and on Amazon with additional distribution on Walmart.com launching this June.

Stefansson started the company in 2015 based on a personal need to create diabetic-friendly, no-sugar-added versions of popular food items.

“When we first started the Good Good brand, we were looking for a solution for our diabetic family members when we realized there were large amounts of added sugar in every popular food item from breakfast to lunch to dinner and even snacks. We found that by swapping sugar for Stevia, we were able to limit sugar intake without taking away sweet treats from our loved ones,” Stefansson said.

Stefansson realized that the market potential for no-sugar-added products could be much larger than the diabetic community.

“The void we were trying to fill was the fact that there were very few sugar-free alternatives out there that actually tasted good. Good Good has a product for everybody, whether you’re following a keto diet, diabetic, plant-based, or just looking for better-for-you options,” said Stefansson.

According to consumer research by The NPD Group, 74% of teens and adults are trying to reduce or avoid sugar completely. The top two nutritional items consumers look for on products are sugar and calories with 57% of consumers who read nutrition facts labels look for sugar content first, said The NPD Group.

Minimalist differentiation

"Our goal is to make sweet products that are better than the sugary ones," Stefansson said.

Stefansson believes that the brand’s minimalistic approach to product ingredients is what sets it apart from other ‘keto’ brands that tout zero sugar but contain a laundry list of other ingredients such as gums, thickeners, and refined oils.

“Coming from the Nordic, we believe in the minimalistic approach in terms of product ingredients. All of our products contain few key ingredients and natural sweeteners instead of sugar. We believe that less is more,” he said.

According to Mintel, reduced sugar claims (i.e. low/no/reduced sugar, sugar-free, and no-added sugar) were the most popular claims on new products between 2014 and 2018.

When it comes to which sugar reduction claims consumers prefer to see on food labels, 48% of US consumers said the ‘no added sugar’ claim was more appealing than low/reduced sugar as consumers tend to associate ‘low/reduced sugar’ with low/no taste, noted Mintel.