Chocolate start-up SoChatti raises $2.2m in Series A
The US company uses a proprietary flavour preservation method that captures and maintains the flavour of chocolate and packages it to be eaten in melted form
SoChatti, a chocolate start-up based in Indianapolis, has raised $2.2 million in a Series A funding round. Fuelled by the fresh capital and $950,000 in bank financing, the company moved into a new 12,000 square foot facility in Indianapolis’ Circle City Industrial Complex.
The start-up said its new home will allow the company to expand production ten-fold as it grows its direct-to-consumer distribution and retail presence.
SoChatti claims to have created a new chocolate experience by using a ground-breaking proprietary flavour preservation method that captures and maintains the flavours of chocolate and packages it to be eaten in melted form directly from the packaging.
“The overwhelming consumer response to SoChatti chocolate signalled that we’ve cracked a code when it comes to flavour preservation,” said Matt Rubin, SoChatti founder and chief executive.
Rubin explained that SoChatti’s proprietary technology captures and produces a chocolate flavour that doesn’t degrade over time in a way that was previously impossible and unheard of in the industry. “What’s most exciting is that what we’ve been able to prove with chocolate is just the tip of the iceberg when it comes to shelf-stable flavour that doesn’t require preservatives,” he said.
Looking ahead, SoChatti is focused on several milestones, including the launch of SoChatti To Go, a snack-sized, 8 oz (226 gr) counterpart to its original 8 oz meltable product, which is a 72% dark chocolate bar made with only three ingredients.
SoChatti claims that due to its process and packaging technology, the chocolate is completely shelf-stable for up to two years without the use of preservatives. Products can be stored and transported at temperatures up to 48 oC and can be subjected to repeated thermal cycling without degradation.
“As consumers have increasingly turned to online shopping during Covid-19, SoChatti is uniquely positioned to deliver the outstanding natural flavours of the chocolate and to travel through any type of supply chain,” said Bob Kirch, managing partner at Kirch Equity Investments, an investor in SoChatti. Kirch is the former chief executive of Caito Foods.
The new facility features a space dedicated to R&D to focus on expansion into other future food and drink categories through flavour preservation and balancing.
“Not only is the chocolate the best I’ve ever tasted, but there are some very exciting things on the horizon for SoChatti from a growth perspective,” said Ryan Rans, managing partner of Great Lakes Capital and an investor in the company. “SoChatti has developed some fantastic new technologies in food that pave the way for continued innovation in the chocolate category and beyond.”