Kate Farms is going from the children’s ward to the kid’s aisle.
The medical-grade meal replacement brand announced today the launch of a new line of plant-based Kids Nutrition drinks into 302 Target locations across the country, as well as online at Target.com, marking a major expansion outside of the medical channel and into mainstream retail.
Available in Chocolate, Strawberry and Vanilla flavors, each 8.45 oz. carton contains 8 grams of organic pea protein, 27 vitamins and minerals and DHA to support brain and eye health. The shakes are certified organic, Non-GMO Project verified and are free of common allergens. The line will retail for $13.99 per 4-pack.
According to Kate Farms CEO Brett Matthews, the retail rollout with Target has been in the works since last year, but requests from patients and retailers looking to carry the brand go back years as the company has positioned itself as the market leader in pediatric plant-based medical meal replacements.
“It’s driven by demand and need,” Matthews said. “We were getting approached by lots of retailers who were coming in asking about Kate Farms, and doctors and dietitians wanted a place that they can recommend to their [patients’] moms and dads.”
Kate Farms was founded in 2012 by entrepreneur Richard Laver, whose daughter Kate was born with cerebral palsy and at age three was placed on an all-liquid diet. Kate struggled to digest the available feeding tube formulas on the market, prompting Laver to develop a plant-based alternative that ultimately led to the creation of the Kate Farms brand.
Within the past five years, the company has raised well over $150 million across multiple investment rounds, most recently closing a $75 million Series C in 2022.
While Kate Farms previously dabbled in retail over a decade ago with now-defunct product lines, the brand has mostly focused on the medical space, with a footprint in around 1,500 U.S. hospitals and availability through programs such as Medicaid, Medicare and the USDA’s Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). It is also sold in select retail pharmacies such as Walmart and Kroger, but the Target launch reflects a mainstream placement with everyday sales and consumption in mind.
Kate Farms’ products have also been available outside of medical channels online, both direct-to-consumer and through Amazon.
Matthews said that ecommerce sales have grown by triple-digits year-over-year, providing the company with proof of demand for its products for everyday use.
To support the retail rollout, Matthews said the company will be working with “traditional brokers” for in-store merchandising and will be seeking to hire additional roles for retail expansion. Kate Farms existing infrastructure will also be significant to the launch, he added.
“We’ve got a really strong backend who are really good at distribution,” he said. “From a marketing perspective, really having the peer-to-peer and the doctor recommendation are key parts.”
Kate Farms extension into the mainstream comes as consumers have prioritized protein and more shake brands have sought to reach kids with cleaner label products. Last year, Koia launched its plant-based Koia Kids line which touts 9 grams of protein per 8 oz. shake
Looking ahead, Matthews did not go into detail about where Kate Farms’ retail strategy may land, stating only that the company wants to focus on partnering with the top retailers in the country.
“It’s going to be a deliberate approach,” he said.
But he did tease that customers can expect more innovation from the company in the near future. After opening an Innovation and Quality Center in California last year, Matthews said that Kate Farms now has a “robust pipeline” of new innovations scheduled for the next three years.