Cleveland Kitchen taps LAGO for debt to scale fermented foods brand
What's the deal? Cleveland Kitchen has closed a debt financing round from Chicago-based alternative investment platform LAGO. The deal provides a revolving line of credit and term loan to fund the brand's expansion.
What does the company do? Founded in Cleveland, Ohio in 2014, Cleveland Kitchen makes fresh fermented foods, starting with sauerkraut and expanding into kimchi, pickles, pickled vegetables, and coleslaw. Its products now sell in more than 18,000 stores nationwide, including WalmartDealroom has a profile for this one. Try Dealroom →, TargetDealroom has a profile for this one. Try Dealroom →, Kroger, Publix, Whole Foods Market, and Costco.
Why now? The fermented food and beverage sector is expanding as consumers chase wellness trends. Cleveland Kitchen is pursuing an aggressive growth and expansion strategy, and LAGO offers full debt capital solutions to support it.
What are they saying? "We have known the LAGO leadership team for years, and this partnership feels like a natural next step," said Drew Anderson, chief executive officer and co-founder of Cleveland Kitchen.
LAGO managing partner and chief operating officer Heather La Freniere said the firm looks beyond collateral. "Most lenders look at a balance sheet and see collateral, but we want to understand where the real value is created — brand strength, customer loyalty, growth trajectory," she said.
Who is LAGO? The lower middle market lender has financed over 130 companies across sectors since its founding. It targets markets where demand for institutional credit exceeds supply, covering working capital, growth initiatives, liquidity solutions, and refinancings.
The signal: Debt is becoming a go-to option for consumer brands that want to scale without diluting equity. For a growing CPG player like Cleveland Kitchen, a structured credit facility offers flexibility to expand distribution while riding the wellness wave.
Image credit: TheDeliciousLife
