Skip to navigationSkip to content

Hungry for Investment: Big Food Races Toward Startups

By CB Insights Research

Since 2015, global food giants from Tyson Foods to Land O'Lakes have launched venture funds and incubator programs to attract early-stage startupsRead full story

Comments

  • Also share to
  • Sometimes a large influx of capital doesn’t always work out and signals an inflection point. Blue Print Juice was purchased by Hain, Organic Avenue passed hands between two sets of investors and Liqueteria was purchased by a private investor. All three juice brands were the top cleanses in the city a decade ago and all three struggle to compete with Juice Press and Juice Generation. The money thrown at the industry the last few years was silly and of course there were going to be losers like Organic Avenue.

  • Food companies are waking up to the reality that tech companies have known for decades. Sometimes, it’s a lot easier to invest in things than create them in house.

    This goes double for acquisitions. Why did Nestle spend $600m to acquire Blue Bottle? They had been secretly trying to launch their own similar chain, without much success.

    With strong cash flow from established businesses, if done well, corporations can purchase their way to great new businesses.

  • It’s an interesting predicament. This is essentially outsourced innovation for these large cpg brands. The issue is that the best startups will be very difficult for these food companies to invest in. The fastest growing startups will be able to get capital from pure financial VCs and getting an investment from just one cpg investment fund is dangerous for the startup because it limits the potential exit opportunities. On the other hand, if multiple CPG groups invest (which we advise) then they still

    It’s an interesting predicament. This is essentially outsourced innovation for these large cpg brands. The issue is that the best startups will be very difficult for these food companies to invest in. The fastest growing startups will be able to get capital from pure financial VCs and getting an investment from just one cpg investment fund is dangerous for the startup because it limits the potential exit opportunities. On the other hand, if multiple CPG groups invest (which we advise) then they still are not that much closer to an easy acquisition since they have to potentially compete with the other investors and not to mention other potential buyers

  • If you can’t beat ‘em, buy ‘em.

  • This is a great breakdown of the top food brands building their own venture arms or incubators. I didn't realize that Thrive Market also started their own arm!

  • Enlightening. That is a tremendous amount of money flowing into food industry innovation.

Want more conversations like this?

Join the Quartz community for all the intelligence, without the noise.

App Store BadgeGoogle Play Badge
Leaderboard Screenshot

A community of leaders, subject matter experts, and curious minds bringing nuance back to how we talk about the news.

Editors' Picks Screenshot

No content overload: our editors will curate the most notable and discussion-worthy pieces for you every day.

Share Screenshot

Don’t just read the story, tell it: contribute your ideas and experience to the dialogue.