TemperPack Raises $10 Million to Expand Sustainable Packaging Operations

TemperPack, Richmond, Va., USA, a manufacturer of earth-friendly packaging for insulated, temperature-sensitive goods, this week announced that it has raised $10 million to expand its operations and further commercialize innovative, new products. SJF Ventures led the fundraising round, joined by Interplay Ventures, Third Prime Capital and Dolik Ventures. Robert Beckler, formerly the president of packaging at WestRock, Norcross, Ga., USA, also participated in the round and will be joining the board as executive chairman. 

Concerned with the steep increase in packaging waste from e-commerce, materials engineers James McGoff and Charles Vincent partnered with Brian Powers to found TemperPack, with the aim of lowering the environmental impact of shipping while improving the customer experience. Together, they developed and launched TemperPack in 2014 and have released a range of powerful insulation products that can be easily disposed of into existing recycling and composting facilities. The company currently serves more than 40 customers, including market leaders within the meal-kit and grocery e-commerce sectors.  

 

 

"We are excited to be partnering with SJF and the other syndicate partners in this next phase of growth for the company. TemperPack grew sales more than 500% in 2016 and the company is now ready to bring in outside capital to help meet growing customer and market needs for disruptive packaging and insulation products," said Brian Powers, co-founder and co-CEO of TemperPack. "SJF Ventures, a leading impact investment fund, is highly aligned with our commitment to sustainability and environmental stewardship."

Rapidly growing consumer demand for convenient delivery of perishable products such as produce, frozen meats and fish, meal-kits, prepared meals, and pharmaceuticals is driving significant packaging disposal concerns for retailers and suppliers as well as end-consumers. TemperPack's mission is to provide these booming industries with sustainable packaging materials that consumers can feel great about.   

"TemperPack addresses a core pain point for the e-commerce sector today," said Cody Nystrom, managing director of SJF Ventures. "Their products replace environmentally-damaging materials such as styrofoam and other petroleum-derived insulation with a suite of proprietary, temperature-controlled products proven durable, safe, and cost-efficient. TemperPack stood out as a highly innovative company purpose-built to compete effectively against the existing, uninspiring insulation solutions. The company refutes perceptions that 'green' should require meaningful trade-offs in effectiveness or price." Nystrom will also be joining the TemperPack Board. 

According to Robert Beckler, executive chairman, "e-commerce is driving revolutionary change in the way consumers experience brands. Increasingly, packaging influences this consumer experience in a lasting way. TemperPack has tapped directly into this market trend, by providing its customers with a unique suite of insulating products that are not only great for the environment, but significantly enhance the brand experience."

The company currently ships millions of insulation products each month to more than 40 customers. Since 2015, TemperPack has recycled more than 5 million lb. of plant fiber, and is on track to divert more than 10 million lb. of plastic foam from landfills, preventing more than 10 million lb. of carbon emissions from its sustainable alternatives.

TemperPack employs more than 200 associates, and is on track to create an additional 150 jobs in Virginia and Nevada by 2018.