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Willy Street Co-op is a set of cooperatively owned retail grocery stores in Madison, WI with 35,000 member-owners and about 400 employees across three stores. They have found that operating transparently and openly, emphasizing cooperative ownership and owner literacy, has provided a point of differentiation in the current marketplace.
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ReGrained launched their product at scale in January 2018 after multiple iterations of their product (in the crowded bar category) and now are working with other businesses to help them produce/co-brand new products using their production facility and the expertise embedded in their proprietary process.
Because the food space is competitive, online and off, emerging food companies have to spend lots of marketing and sales dollars to get consumer attention and trial by paying to have their product in the right place with the right positioning.
Median on-farm household income has been negative for the past 20 years, with many farms keeping their cash flow positive by increasing their debt load. Finding new business models that allow farmers to be profitable while meeting changing consumer demand will require high-quality technical assistance and coordinated effort from multiple actors.
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The Old Fort at Hesperus’ team sees farming education as a continuum where different people are best served by discreet programs, depending on their interests and stage of development. Their sustainable agriculture program includes an educational garden internship, a farmer-in-training program, and market garden incubator.
Grocery stores have introduced their own branded “private label” products on their shelves, offering an opportunity for food producers to increase cash flow, maximize production efficiency and diversify revenue streams without having to do all of the brand building and customer relationship management themselves.
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Tribe 9 Foods secured growth capital to bring manufacturing in-house for the three brands that merged into their portfolio, something that has allowed them to have control over batch timing, batch size and product quality. In addition, in-house production allows them the flexibility to try new things and have a co-packing line of business for their core product types.
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TRIBALÍ’s clean, simple packaging communicates their organic, grass-fed and Paleo certifications, stands out on the freezer shelf and helps communicate their brand’s promise to that tribe. Angela Mavridis, TRIBALÍ’s founder and CEO reflects that the investor pitch process forces you to learn every single aspect of the business.
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Union Kitchen is a shared-use kitchen and food business accelerator in in Washington D.C. While having a shared-use kitchen eliminates the need for capital for kitchen equipment, there are many other things food businesses need to raise capital for, which is why they have distribution and retail outlets as part of their model.
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This hub discovered that the bigger the business got, the more money it lost and that moving aggregation functions off of the owner’s farm caused the operation to be less efficient at that level of sales. The owner chose to contract the business to focus on getting profitable and repaying existing suppliers.