Introducing Our New Blog Series: ‘Five Food Startups Winning the Branding Battle’

There’s no one recipe for success in the food industry. The space is crowded and many verticals are dominated by massive corporations. How can a startup food brand succeed?

This is the question we put to five startup founders at Branchfood, our community that promotes food entrepreneurship and innovation. Over the next five weeks, we’ll be publishing interviews with a few of the most exciting and promising food brand founders in our community to understand how they’re building standout brands and developing their products.

Though each of these founders’ journeys is far from over, they’ve learned a lot that other founders can and should apply to their own businesses.

Featured in this series are:

Join us every other week for the next 10 weeks as we release new interviews from our ‘Five Food Startups Winning the Branding Battle’ series.

This series features interviews conducted by Ideometry an all-in-one growth marketing agency helping everyone from startups to Fortune 500 companies engineer brilliant integrated campaigns, find their ideal audience, fuel their pipeline, and drive real success.

In the middle of a campaign and need some support? Want to build something awesome from scratch? We’d love to hear from you. Get in touch with us at ideometry.com or at hello@ideometry.com.

 

The State of Food Innovation: Food Retail in Boston

STATE OF FOOD INNOVATION (3).png

In the old days – meaning 20 years ago – Boston eaters had but a few options for filling their pantries and refrigerators. Some could find the ingredients they needed at a farmer’s market or a co-op, but most likely, we were visiting the local supermarket, with its lines, its crowds, and its fluorescent lighting. For many locals, it was Stop & Shop, which began in Somerville in 1914 as the family-owned Economy Grocery Store before adding dozens of stores throughout New England over the coming decades.

Food retail was an industry dominated by hulking, set-in-their ways supermarkets that had a captive audience for years but were begging for disruption. The Internet would not disappoint.

Home Delivery

Believe it or not, home grocery delivery can be traced back to before the dawn of the Internet. Grocery delivery pioneer Peapod was founded in 1989 as a smart shopping solution for busy families, but it came of age during the dot-com boom — with Boston was an early and profitable launching pad for the service. Then, the dot-com bubble burst, and with it nearly all of the handful of food delivery services. For the better part of a decade, folks went back to the old way of food shopping.

The mobile revolution has inspired a newer crop of companies offering the delivery of food to our front porches. The backdrop against which all grocery delivery solutions will be measured was set last summer when ecommerce giant Amazon acquired traditional organic grocer Whole Foods. The union is expected to bring, at some point, a push by Amazon into the food retail space that could upend the industry. In the meantime, Instacart, though headquartered elsewhere, continues to make inroads with local supermarket chains with its fleet of personal shoppers and checkout-to-porch grocery delivery service.

Several locally owned companies are making their presence known as well. The local veteran in this space, Boston Organics has been providing organic food deliver to homes and offices for more than a decade. Just Add Cooking, which launched out of Dorchester’s Commonwealth Kitchen, has emerged as a local leader in the meal kit delivery space, sourcing its ingredients regionally and partnering with local celebrities and chefs on recipes. Al-FreshCo provides locally sourced vegan meal kits to Boston households, most of the deliveries being made on bicycle.

 Curated and Artisanal

Compared to older shoppers who are more brand-loyal when food shopping, Millennials tend to seek a wider field of smaller brands when picking out what to cook and eat. While many Millennials will still purchase products from larger companies, these days, they are especially drawn to foods with particular stories, ingredients, and other specifics that let them “shop their values.” Food companies are obviously capitalizing on this, but so are curators of these specialty brands.

  Nibble Snack Shop’s Joyce Lee (a Branchfood community member) searches high and low for the perfect mix of snacks from up-and-coming companies for her Cambridge tasting room and occasional pop-ups around the city. Think of Nibble as both brand ambassador and retailer, and Lee has found a niche selling to munchy office-dwellers in Cambridge and Downtown Boston.

Food curators need not be brick and mortar businesses, however. Boston-based Small Batch Daily uses its popular Instagram account to sell one new artisan product per day with enticing photography fitting of the social media site. How does it work? Users follow the SBD account, sign up online, and type “sold” in the comments under products they want to try.

Consulting and Support Services

Several local companies have made it their mission to help food retailers sell more of their products, more efficiently. The Cambridge-based ThirdChannel platform utilizes retail execution to help retailers manage their merchandise and integrate digital platforms into the brick-and-mortar environment. Another technology, Survey.com – headquartered in Boston – harnesses the power of a digital app and fleet of merchandising experts to assist retailers to conduct retail audits, manage merchandising, and conduct mobile market research among consumers. Boston-based Revenue Architects does exactly what its name suggests: convenes experts in marketing, sales, and public relations to assist businesses build models for revenue growth. Finally, Repsly, headquartered in Boston’s financial district, is a mobile app used by field teams to manage sales, track inventory and prices, and collect and organize data to grow brands – including many in the food and beverage space.

 Farm-to-Consumer

We’d be remiss if we didn’t include in our discussion of food retail direct sales by farmers to consumers. More than 167,000 farms now market and sell the food they produce directly to consumers, resulting in $8.7 billion in sales in 2015, according to the United States Department of Agriculture. New England’s farmers, ranchers, and producers do so in a number of ways, including through roadside farm stands, farmer’s markets, and Web-based marketplaces trading in local food.  

The Boston Public Market, an indoor, year-round food hall and marketplace that opened to much fanfare in 2015, features a few dozen regional producers selling diverse products like beer, ice cream, meat, produce, and chocolate. The centrally located BPM has become a centerpiece of the city, attracting both tourists and locals to a space that showcases the region’s rich culinary bounty.

Supermarkets

And finally, supermarkets. Despite all the flux in food retail, that legacy model isn’t dead. Far from it. In some cases, these legacy institutions are, in fact, adapting to changing times. Examples include Albertson’s purchase of New York-based meal kit delivery service Plated, or supermarkets’ expansion to ecommerce.

Technology company MyWebGrocer – whose web marketing division is located within Branchfood coworking community – provides the support and digital platform for traditional supermarkets to enter the e-commerce space.

Cambridge startup Takeoff is working to disrupt the legacy supermarket model. The eGrocery platform has partnered with Austrian robotics firm Knapp to make grocery fulfillment centers more lean and convenient, allowing consumers to quickly pick up food they’ve ordered online or via mobile apps – virtually sans human interaction.

But it could be that the future of large-scale food retail looks like fewer – but more customer-centric – supermarkets. Taking a page out of the Whole Foods Market playbook (whose North Atlantic regional offices are located in Marlborough), local chain Roche Brothers lays out its new stores with comfort and aesthetics in mind and now offers a number of regional foods. Supermarkets are getting leaner and more nimble as well. Stop & Shop, owned by Dutch food conglomerate Ahold Delhaize, has launched Bfresh, a handful of smaller-format food outlets geared toward a younger, more urban demographic in Greater Boston. Despite consolidating two of its Bfresh stores and announcing a rebranding effort, it’s clear Stop & Shop and its grocery counterparts recognize that change is in the food retail air.

With so many Millennial shoppers and their smart phones out there dictating the food retail trends, one thing’s for certain: we won’t be buying our food the way we’ve always done it.

Mapping the Future of Food, Cooking and the Kitchen at the Smart Kitchen Summit

sks17_event_partner.png

The Smart Kitchen Summit is the first and only event dedicated to mapping the future of food, cooking, and the kitchen. Branchfood is thrilled to be a marketing partner of the conference since its inception and we'll have someone there at the event! If you would like to connect with us, DM us on Twitter!

The Summit was founded in 2015 when smart home and IoT veteran analyst Michael Wolf noticed a trend forming in the smart home space – the emergence of kitchen technology or, the smart kitchen. He realized that this unique relationship between the food we consume and create and the technology that is revolutionizing that experience was beginning to grow at an increasingly fast pace. Mike saw an opportunity to create a forum for conversation around this burgeoning trend that would bring leading voices across the various niches in smart kitchen together to share ideas and information.

Now in its third year, Smart Kitchen Summit is the premier convening of leaders from technology, food, appliances, commerce and retail, and delivery and features discussions, panels, fireside chats and workshops on how connectivity, artificial intelligence, robotics and machine learning, virtual reality, design innovation and the on-demand economy will transform the consumer experience with food.

In addition to conversations and presentations, the Smart Kitchen Summit features opportunities for companies to expand their presence in the industry. The Startup Showcase, a competition that seeks out the most interesting and disruptive startups in food and kitchen tech, is a place for emerging leaders to demo and pitch their ideas to an audience packed with key decision makers and thought leaders.

The Smart Kitchen Summit is more than just an event. With the success of the Summit came a joint venture – The Spoon, a media B2B site dedicated to covering the future of food, cooking and the kitchen through regular industry news, contributed pieces, and more.

Interested in joining the conversation? Join us October 10-11, 2017 at Benaroya Hall in Seattle, WA for two packed days of networking, product demonstrations, and programming. Use code BRANCHFOOD for 25% off the price of any ticket type. www.smartkitchensummit.com

The State of Food Innovation: Consumer Packaged Goods in Boston

Life Sciences (1).png

Consumer Packaged Goods (CPG) manufacturing is a leading global industry. Over the past ten years, food manufacturers have transformed business practices in response to changing consumer preferences. Campbell Soup, one of the largest CPG companies in the world, saw a decrease in profits of almost 20% in the last fiscal year, and is one of many Big Food companies that are experiencing the shift: since 2009, the top twenty-five food and beverage names in the United States lost the equivalent of $18B in market share to startups and small businesses. The entrepreneurs behind these smaller companies create products that reflect changing public values and build trust between company and consumer. Greater Boston has been an unsuspecting leader in CPG since the dawn of the NECCO wafer and cites companies like Schrafft's, Stacy's Pita Chips, and The Boston Beer Company as more recent success stories. Beyond brand, Boston is a place where innovative food product companies continue to launch and grow. 

RESOURCES

The visionary ethos of Boston perfectly complements its historic roots. Kendall Square in Cambridge has been called the most innovative square mile on the planet, and much of Boston’s creative energy goes toward product development for CPG companies. With an experimental kitchen in Fenway, Chew Labs works with food companies both high and low profile to create tastier, more cost-effective CPGs. CEO Adam Melonas explains, “Everyone here has an equal seat at the table. It’s interesting to see the food scientists start to lean on the chefs to direct and guide the taste. And the chefs start to lean on the food scientists to help guide the conversation on stability, technique, and what’s possible, and where we go next.” The unique combination of food and technology found in Boston means the city incorporates both old-world tradition and new culinary innovation into its rapidly developing food scene.

A profusion of commercial kitchens makes Greater Boston an ideal city for startup CPG companies looking to scale manufacturing out of home kitchens. CommonWealth Kitchen, with locations in Somerville and Medford, is one example of these shared community spaces, offering business assistance to aspiring entrepreneurs and strengthening the regional food economy. Smaller kitchens, such as Caroline Huffstetler’s Local Fare and Food Revolution, are able to provide allergen-free workspaces. Foundation Kitchen and Stock Pot Malden offer even more variety to the mix. Many CPG startups, whether they need storage, guidance, or workspace, use these commercial kitchens as a steppingstone as they build their brand and their consumer base.

EDUCATION

One of Greater Boston’s most notable characteristics is its abundance of colleges and universities. Out of these institutions have grown community resources such as the Harvard University i-lab, where Harvard affiliates can participate in a twelve-week program that provides workshops and mentoring sessions about entrepreneurship. The founders of Six Foods, producer of one of the country’s first-ever cricket-based snack, started at the i-lab when they were undergrads before making a national debut. The startup BevSpot is another Boston education success story: founded by students from the Harvard Business School and MIT, the online tool helps bar and restaurant managers track inventory and spending.

Annual events, such as Harvard's public lecture series on the science of cooking, further contribute to the conversation surrounding innovation and food. MIT's Sustainability Summit explores green technology, and the Harvard Food Better initiative hosts conferences which focus on the empowerment of food service employees. Harvard also hosts the Global Food+ Conference, which features top Boston area scholars in a wide variety of disciplines to highlight research findings related to food and its impact on society and the environment.

At Tufts, the School of Nutrition Science and Policy combines the efforts of nutritionists, economists, policy makers, physicians, and many other experts toward the goal of improving nutritional health everywhere. With its Food Sol Program, Babson College focuses similar efforts on a different socio-economic sector through the Cultivate Small Business initiative, in collaboration with the Initiative for a Competitive Inner City (ICIC) and CommonWealth Kitchen. Through Cultivate Small Business, entrepreneurs from low-income backgrounds receive mentoring sessions, the chance to network, and small capital grants.

FUNDS

Local funds including Beechwood Capital, Centerman Capital, and Sherbrooke Capital, to name a few, are providing capital for entrepreneurs to get their businesses off the ground and disrupt the food and beverage industry. The past five years have seen an increase in funds that invest exclusively in this industry, paving the way for transformative businesses, such as Boston-based Yasso and Spindrift, to realize their full potential. Financing reaches beyond local companies, too -- Fidelity and Bessemer Venture Partners invested in New York meal kit service company Blue Apron when it was in its early stages. Fresh Source Capital, which targets high-tech companies dedicated to sustainable regional economies, counts Just Add Cooking among its investments.

PLAYERS

Broadly considered the birthplace of the American Revolution, Boston offers CPG companies a legacy brand recognition unachievable anywhere else in the country. The craft brewery Samuel Adams exemplifies this position: founder and sixth generation brewer Jim Koch debuted his beer on Patriots’ Day in 1985, depicting the founding father mid-cheers in a pose now iconic across the nation.

Beyond history, Boston’s reputation as an durable, revolutionary city is conducive to establishing legacy brands, and consumers respond with enthusiasm to enduring names -- the “What the Fluff” festival, held annually in Somerville, celebrates Marshmallow Fluff as a historic, even traditional food staple in New England, the nation, and abroad. Further to the west, Big Y Supermarkets have been one of the most recognizable grocery establishments in New England since 1936. Stacy’s Pita Chips got its start in Boston, and Quincy-born Dunkin Donuts (“Dunkin’,” “Dunks”) is another iconic brand, its comforting pink and orange logo glow never far from sight.

THE FUTURE

Boston is a city of Millennials, with the highest concentration of 20- to 34-year olds of any populous American city. Values of that generation have already permeated the CPG industry. Sustainability, nutrition, and transparency in sourcing ingredients are three major movements that will continue to affect consumer preferences. Digital spending will also continue to increase, foreshadowed by the recent acquisition of Whole Foods by Amazon, the online retail giant reportedly soon to sign a lease for a space in Seaport.

Investment in small businesses from big names in food ensures a virtuous cycle of innovation in the industry. In this spirit The Boston Beer Company, partnered with small business lender ACCION, provides financial advice and other business coaching to entrepreneurs through their Brewing the American Dream program. As digital spending continues to rise, a high number of niche markets will emerge, fueled by startups. Innovation in the CPG industry and support for small businesses are instrumental in Boston’s role as a national player.

At Branchfood we aim to raise awareness about Boston as a leading food community. This blog post is the first in a series on innovation in Boston’s food and beverage industry. Written by Chloe Barran.

6 Need-To-Know Social Media Tactics for Food Startups

6 Need-To-Know Social Media Tactics for Food Startups

Across all cultures, food carries a significant social element. It’s meant to be seen, shared, and discussed. This makes food startups and social media a particularly strong pairing, as all of the major social networks lend themselves to doing those very things...

Read More