Alice Mushrooms
Chocolate brands are raising the bar.
What’s happening: Alice Mushrooms secured an undisclosed investment from L Catterton, with participation from actors Zac Efron and Kevin Hart, to scale its functional chocolate.
Mixing mushrooms, adaptogens, and nootropics, its better-for-you bars promise enhanced focus, sleep, and well-being.
Launched in 2022, influencer marketing, merch drops, and partnerships with specialty retailers like Erewhon helped fuel 175% YoY growth. Targeting mainstream exposure, it’s rolling out in national grocers and department stores.
Edible optimization. Swapping supplements for snacks, consumers are seeking foods with health benefits.
Driving the functional confectionery market toward $2.9B, companies emphasizing ingredients and lifestyle are reinventing the chocolate aisle.
- Boosting sleep, energy, and focus, The Functional Chocolate Company entered Target and The Vitamin Shoppe earlier this year.
- After raising $3.6M, caffeinated chocolate brand AWAKE is expanding retail distribution across the US and Canada.
- With over $17M in funding, high-protein, low-sugar chocolatier Mid-Day Squares sells ~50K chocolate bars daily.
A thing of beauty, snackable skincare is scaling up, with Sourse collecting $2M in first-year sales and recently launching its chocolate vitamins in Sephora.
Takeaway: Functional candy is reformulating unhealthy indulgences, but the line between dessert and dietary supplement could be a slippery slope.
