LUB Foods

LUB Foods AB, a Swedish food-tech company operating under the brand name Nick's, was established in 2013 by co-founders Carl Backlund and Niclas Luthman. The company's inception was driven by Luthman's pre-diabetes diagnosis, which compelled him to seek healthier alternatives to his favorite treats like chocolate and ice cream. This personal health journey led to the creation of a product line focused on snacks and treats without added sugar, gluten, or palm oil.

The company's business model is a hybrid, incorporating both direct-to-consumer (D2C) sales and a business-to-business (B2B) approach through retail distribution. LUB Foods manufactures and markets a range of what it terms "functional foods," which includes protein bars, confectionery, sweeteners, and ice cream. Revenue is generated through the sale of these products across more than 15 markets, including a significant presence in the United States and Europe. The company has demonstrated substantial growth, expanding its retail footprint in the U.S. from 4,500 to 6,700 stores between 2020 and 2021.

A key aspect of Nick's product strategy is its focus on food science and ingredient technology. A notable product is a low-calorie ice cream developed for the U.S. market which utilizes EPG, a patented, plant-based fat replacer that resists absorption by the body due to its molecular structure. This allows the ice cream to maintain a creamy texture while being significantly lower in calories. In the U.S., the company's subsidiary generated approximately $10 million in sales from this ice cream alone. The company has also collaborated with Perfect Day to launch vegan ice cream using their animal-free whey protein.

LUB Foods has secured significant investment to fuel its expansion and research and development efforts. It has raised over $150 million in total, including a $100 million Series C round in 2021 co-led by Kinnevik, Ambrosia Investments, and Temasek. These funds are earmarked for expanding its product portfolio, increasing its store count in North America and Europe, and investing in strategic marketing and talent acquisition. Keywords: LUB Foods, Nick's, functional foods, healthy snacks, sugar-free, low-calorie ice cream, food-tech, Carl Backlund, Niclas Luthman, EPG fat replacer, direct-to-consumer, B2B food manufacturing, protein bars, confectionery, sweeteners, European food market, US food market, venture capital, Kinnevik, food innovation, no added sugar, gluten-free, palm oil free, Perfect Day collaboration