Disruption is the name of the game in the early stages of brand building. Those who can carve out a unique market space with high growth potential have the best chance at getting noticed, according to the team at Mondelez International’s innovation and venture hub SnackFutures.
Members of the SnackFutures team offered a glimpse at what they look for when scouting emerging brands at the October 26 Food Entrepreneur Experience event:
Growing From an Innovative Start
A top factor SnackFutures considers is whether brands are “really changing the paradigm, whether it’s with flavor or texture, whether it’s route to market, or other unique ways that founders are building business models,” says Tapan Shah, SnackFutures head of venture capital.
Shah says this can apply to companies that have already built a presence on a national level, citing Mondelez’s investment in Perfect Snacks as an example, or in a more regionalized or specialty channel like in the case of chocolate brand Hu.
“We’re looking for bands that have the opportunity to grow and grow significantly in the future, and we as investors and as an organization are extremely hands-on in how we partner with those brands to help them reach their goals,” Shah says.
This hands-on approach includes help with developing a financial model, research and development, education on new modes of packaging, and other benefits available through Mondelez resources, such as its brand accelerator program CoLab. “It’s really about partnership and brands that move the needle for where we’re going as an organization,” says Shah.
Leading the Way with Emerging Trends
SnackFutures also positions itself as a “window for the organization,” spotting emerging trends and applying those ideas to brand partners, says Brigette Wolf, SnackFutures vice president and global head.
Sustainability is a top trend on SnackFutures’ radar. Wolf says her team is tracking a surge in consumer social and eco consciousness, “both of the rise of recyclability and sustainability in packaging, but also where ingredients are sourced and the ethics that are coming into that.”
Wolf says for startups, a great place to start is tackling food waste, particularly by making the most of available materials through methods like upcycling. She cited brands already in the SnackFutures portfolio innovating in this space, like upcycled cacao fruit brand Capao and kelp chip brand 12 Tides.
Maintaining Brand Identity Through Upscaling
While venture organizations like SnackFutures have the resources to help new brands adapt and spur innovation, there’s no replacement for a startup’s attitude.
“We can go to the shelf and find great products, and then go try and recreate the product, but what we can’t recreate is the spirit of the brand, the scrappiness of the consumer connection that brands build, in spider webs across the country,” Shah says.
Shah says the best relationships between venture groups and startups continue to work with the founder’s vision, “just in their own kind of energy and conversations that we can learn from, but also how they push the boundaries on product formulation, how they think about messaging, how they think about consumer connection.”
Advice When Getting Started
Upscaling a small brand can be a daunting task, but the SnackFutures team has a few tips for staying on track.
The best thing brand owners can do is be kind to themselves, as Wolf explains, “There are going to be some brilliant highs and some incredible lows, and I think to build a network to support you and to be kind to yourself on those days where it’s hard, it’s just to keep putting one foot in front of the other and remember why you started this business.”
Jackie Haney, SnackFutures innovation and CoLab program manager, says to work on asking questions without fear of an unfavorable answer. “Be open to the possibilities that can exist and solutions that can be implemented if you just ask,” she says.
Shah advises to avoid falling into assumptions and expectations for how to build a business, but instead focus on what works in a particular situation. “There’s a lot of noise in our space on quote-unquote expectations,” Shah says. “And I’ll tell you, we certainly don’t operate by those expectations, we operate by what’s right.”
- Casey Flanagan, PMMI Media Group Editorial Assistant
