The COVID-19 pandemic threw a massive wrench that few food and farm businesses saw coming. Entrepreneurs barely had time to accept that this crisis was real and raring to hit the U.S. before it sent them scrambling to navigate its ramifications for their businesses. Whether their primary sales channel evaporated overnight or demand for their products quadrupled in a flash, everyone was forced to deal with unprecedented change as they did whatever was necessary to stay afloat.
Now more than a year into the pandemic, we know that many food and farm businesses didn’t make it—the challenges were just too great to overcome. But we’ve also heard plenty of stories of businesses that have survived, even thrived. Most of these enterprises did so by pivoting—some just slightly, others by retooling their entire business model or product offering.
As we’ve discussed a lot over the past year, the food and farm operations that have stayed viable all share one integral attribute: resiliency. Even in the face of so much uncertainty, their leaders have remained focused, engaged and nimble enough to embrace new ideas and new directions. By establishing resilient business models and teams, they’ve been able to change course as necessary and traverse uncharted territory with success.
How does a food or farm entrepreneur build a resilient business? Or, how does a business that’s already fairly nimble, such as one that has thus far survived the COVID-19 crisis, become even more resilient in preparation of whatever crazy curveball could come next?
Remember, it doesn’t have to be something as sweeping as a global pandemic. It could be a drought that dries up supply of a key ingredient. Or maybe road construction that cuts off access to a farm-to-table restaurant for an entire year. It could even be a major investor pulling the plug. Let’s face it: the possibilities for major disruption are endless.
An excellent way to bolster resiliency is through scenario planning. Used by some large corporations and even governments, this exercise involves crafting multiple plausible outcomes for the business’s future and developing strategies to deal with each. It doesn’t mean predicting the future—that’s impossible—or even mapping out the vision leadership hopes to see. Scenario planning requires digging in deep, examining trends, bucking common conceptions and examining the worst possible outcomes along with the best.
If this sounds challenging, well, it is. It’s not easy for any entrepreneur to evaluate their company—their baby—with unbiased, totally objective eyes. But with the right guidance, it certainly can be done, and it will absolutely make food and farm businesses more resilient in the process.
To help businesses implement this method, FFI is hosting three Scenario Planning Workshops, starting with the first cohort next week. Eric DeLuca, founder of Leverage Point Consulting and a scenario planning expert, is leading the three-day immersions along with Brad Rostowfske, FFI’s accelerator program manager. Eric joined Tera on the latest Edible-Alpha® podcast to discuss the importance of scenario planning and how it has helped several businesses survive adversity.
Each session is limited to 10 businesses, so apply today! Stepping away from the day-to-day grind to learn these tools is a fantastic way to safeguard your businesses’ future.
Scenario planning expert Eric DeLuca, founder of Leverage Point Consulting, joins Tera to discuss the importance of this critical tool for scaling food and farm businesses—especially during a time of so much upheaval and so many unknowns. He walks through the origins of scenario planning, how it has helped major corporations and why small companies can benefit from it even more. By thinking objectively about their businesses, examining several plausible futures and making action plans accordingly, entrepreneurs can become more resilient.
Listen to the Latest Episode
And now, our roundup of the best food and beverage finance news, events and resources from around the web…
Business Model Insights
- Help wanted: Food manufacturers compete over workers as big data, e-commerce stoke hiring frenzy (Food Dive)
While employers prioritize adding people who can pivot across multiple jobs, prospective employees are placing more value in what companies stand for before they accept a job. - For food companies, shifting to regenerative ag practices is complicated (GreenBiz)
- COVID-19 changed the advertising playbook. Now what? (Nielsen Insights)
Raising Capital
- Resources for BIPOC-owned natural products businesses (New Hope Network)
In effort to bridge the success gap between white- and BIPOC-owned businesses, several groups are stepping forward to offer capital, networking and other resources. - 10 takeaways from FamilyFarmed’s 2021 Good Food Financing and Innovation Conference (New Hope Network)
- 10 Billion for Carbon Negative Food Transition (S2G Ventures)
CPG/National Brands
- COVID-19 has fundamentally changed the CPG industry, report says (Food Dive)
Recyclable packaging, transparency and the adoption of digital labels that provide more information about product origins—as well as consumers’ growing expectation that brands lead on social and environmental issues—should be on all CPG companies’ radars. - 5 ways brands can tell their regenerative stories (New Hope Network)
- Frozen food packaging gets more sustainable as consumers want more individually wrapped items (Food Dive)
Market Trends
- Home baking continues in 2021 giving rise to comfort and wellness trends (FoodNavigator-USA)
The trend of home baking, which soared in popularity during the pandemic, is still going strong, with sustained elevated sales expected through 2025, according to new market data. - Report: Beef led soaring meat sales in 2020 (Food Dive)
- From soup to chips, more everyday foods find a place at the table as ingredients (Food Dive)
Farming and AgTech
- No more “boutique” restaurant crops: This spring, cautious farmers are planting the basics (The Counter)
As demand soars for storage crops like onions, carrots and potatoes, farmers give up chasing trends, experimenting with new varieties and wooing high-end chefs with something unique. - After 20 years of advocacy, Black farmers finally get debt relief (Grist)
- How the Pandemic Has Further Isolated Farmers (Civil Eats)
Deals/M&A
- How the COVID-19 pandemic has changed investing in food (Food Dive)
Leaders from venture firms and finance say much of the strategy is the same, but the target is becoming more defined through careful choices and the advent of special-purpose acquisition companies, or SPACs. - Industry insiders: Current market ‘very conducive to M&A’ in food industry (Food Institute Focus)
- Natural products industry investments held strong in 2020 (New Hope Network)
Industry Events
Virtual Events
- Edible-Alpha® Consultant Huddle: 4/5 (Read March 1 huddle notes here)
- FFI Scenario Planning: 4/6–4/8
- Plant-Based Foods Value Chain Americas 2021: 4/13–4/14
- FFI MVP Series: Food Safety & GFSI Planning Workshop: 4/15
- Nutrition Capital Network Spring Investor Meeting: 4/20–4/21
- FFI Raising Equity: 4/20–4/22
- Brand Strategy Fundamentals: 4/27–4/29
- Grains Week: 5/3–5/7
- FFI Meat Processing Boot Camp Part 1: 5/6–5/7
- Food Safety Summit: 5/11–5/13
- Edible-Alpha® Meat Processing Boot Camp: Part 1: 5/13–5/14
- Natural Products Expo West Virtual Week: 5/24–5/27
- KeHE Holiday Show: 6/8–6/10
- Digital Food & Beverage Connect: 6/15–6/16
- FFI-FaBcap Accelerator Pitch Event: 6/16
- Edible-Alpha® Meat Processing Boot Camp: Part 2: 6/17–6/18