Start-ups are newly emerging businesses established by entrepreneurs in order to bring a unique product or service to market.  Here, FoodBev takes a look at five qualities that can ultimately make a food or beverage start-up a success.  An innovative idea A successful business usually starts with a unique idea – for example, a solution to a societal challenge. It is important that a new product or service conforms with today’s consumer needs. Does it offer convenience? World Food Innovation Awards winner, SAVRpak, won the ‘best convenience packaging’ category in 2020 for its patented packaging technology that can extend food freshness and shelf life. Does it offer functionality? For instance, Zeno Functional Foods won ‘best health or wellness food’ category in 2020 with its innovative snack bar, Sobar, which addresses a need for a low-caloric food that can effectively reduce alcohol absorption. A successful product could also have exciting or unique features, such as 2019’s ‘best organic product’ winner PLAYin CHOC’s kids cube which, along with vegan mini chocolate bars, contains a 3D puzzle toy to assemble and play with. Check out the competition Defining the target market and USP of a product idea is crucial. Research what both direct and indirect competitors are doing within that market, and use them as a benchmark to create a relevant difference. A thorough competitor analysis will also give potential start-ups plenty of data to help develop their own strategies and could ultimately boost further innovation and recognition in the market space. Incubators Start-up incubators help turn innovative product ideas into viable businesses by offering support on a range of elements, from work facilities to advice on suppliers and investors. Many industry giants have launched their own incubator programmes to support food and beverage start-ups. For example, in August 2020, PepsiCo named Spudsy winner of the 2020 North America Greenhouse programme. With the aim of ramping up innovation efforts in the snacking space, Mondelēz International joined forces with business incubator The Hatchery Chicago in 2019, which has been described as “one of the largest food incubation spaces in the US”. Investors Gaining support from investors can help fuel business plans and make start-up company growth possible. Many angel investors and venture capitalists focus on particular areas of the food and beverage industry, such as foodtech, dairy or plant-based. Global venture capital fund, Lever VC – whose partners were investors in Beyond Meat, Impossible Foods, Memphis Meats and other sector leaders – have launched a new fund investing in a range of early-stage plant-based and cell-cultivated meat and dairy companies. In addition, the judging panel for the 2021 World Food Innovation Awards features two judges who specialise in food industry investment. First, is co-founder and partner head of operations at Mission Ventures, Louis Bedwell, who leads on the delivery of the Good Food Fund, a prototype venture fund and accelerator that aims to bring healthier challenger brands to market. Second, is Eric-Alan Rapp, a partner investing in sustainable agrifood tech companies at Danish investment fund, Vækstfonden (VF). All companies entering the World Food Innovation Awards 2021 will have their innovations recognised and assessed by all members of the panel. Branding It is imperative to get the product’s branding and packaging right, and competitor research will help start-ups develop their own unique mark in relevant sectors. Research groups may also be useful throughout the brand-building process, in order to gauge how consumers view and interact with products/services. What is the brand’s story? Storytelling can help to shape a brand’s message and showcase the thought-process behind the innovation. Compelling messages such as sustainability concerns or aiding health and immunity demonstrate to consumers how buying certain products can make a difference. World Food Innovation Awards 2019 winner of ‘best packaging technology’, Stixfresh, developed a sticker which could extend the shelf life of fruit by up to two weeks, addressing concerns that 52% of fruits and vegetables from farm to fork go to waste. Packaging also plays an important role in showcasing what’s on offer inside and helping the product stand out on the shelf. For example, ‘best plant-based start-up’ finalist from the 2020 World Plant-Based Awards, Bright Barley, presented a simple yet convenient carton design with a strong plant-based message highlighting nutritional ingredients. Think your innovative start-up company is award-worthy? Enter the ‘best start-up’ category in the World Food Innovation Awards now!  For more awards information and to see our other 25 categories, click here .

ETF Partners has invested £5 million in UK start-up The Modern Milkman (TMM) to support its plastic-free grocery delivery service. The Manchester-based business delivers fresh groceries from independent and local suppliers directly to customers' doorsteps in returnable and reusable packaging. While the start-up began as a local milk round that looked to reduce plastic waste, it has since grown to deliver goods such as fresh fruit juice, eggs, coffee and cereals. According to ETF Partners, The Modern Milkman’s digitally advanced delivery platform grew its revenue by ten times in 2020. To date, the start-up has helped reduce more than nine tons of single-use plastic. With the capital, the start-up hopes to boost its growth plans in 2021 and accelerate sustainable grocery shopping in the UK. The company looks to expand beyond Northern England across the UK, hoping to help consumers shift away from single-use plastic, without having to compromise on convenience. The funding comes as demand for food deliveries are soaring as a result of the Covid-19 pandemic, as an increasing number of UK consumers are shopping online. Simon Mellin, founder and CEO of The Modern Milkman, said: “ETF was the obvious choice of investor for us and we’re thrilled to have their support as we move into the next phase of our journey. We believe their insight, skill and experience in the sustainability space will help us deliver the positive impact we strive to have on the environment at pace, as we move forward with our expansion plans across the UK over the course of 2021.”  Tomer Strikovsky from ETF Partners added: “In today’s world, many of us are looking to reduce our environmental impact on the planet, but convenience remains key to daily life. We have full confidence that TMM will play an important role in changing how we consume food, and we continue to be impressed by the founders and their commitment to sustainability.”

Meal delivery service Deliveroo has raised more than $180 million in Series H funding from existing investors. The round – which values Deliveroo at over $7 billion – was led by Fidelity Management and Research Company, and Durable Capital Partners. The investment comes ahead of a potential initial public offering, which would mark the biggest new share issue in London for three years, according to Reuters. Deliveroo says that it will use the funds raised in its latest financing round to continue to invest in the company’s growth and in enhancements to its services for restaurants, riders and consumers. Examples of areas in which the new capital will be used include: expanding the company’s Editions delivery-only kitchen sites globally; extending Deliveroo’s Plus subscription service; and expanding on-demand grocery services. Will Shu, founder and CEO of Deliveroo, said: "This investment will help us to continue to innovate, developing new tech tools to support restaurants, to provide riders with more work and to extend choice for customers, bringing them the food they love from more restaurants than ever before. We are really pleased our shareholders see the opportunity and growth potential ahead of us.” Henry Ellenbogen, managing partner and chief investment officer at Durable Capital Partners, added: "I have been impressed with the team's ability to spot opportunities, innovate and adapt to changes in the market. "The online food delivery market is nascent and underpenetrated. We believe Deliveroo has the potential to become a much bigger company over time."

Campbell Soup Company has announced its plans to close its snacks manufacturing facility in Columbus, Georgia by spring 2022. The plant – which produces a range of candy, crackers, cookies, nuts and bars under brands such as Synder’s of Hanover and Pepperidge Farm – currently employs 326 people. Campbell says impacted employees will receive severance or separation packages. The decision comes after a careful review of the company's snacks division’s manufacturing operations and the plant was chosen in part due to its age and reduced consumer demand for non-core products that are manufactured there.   Founded in 1927 by Tom Houston, the Columbus facility marks the oldest plant in the Campbell network. The 94-years-old plant previously operated as Tom’s Foods, before it was acquired by Lance in 2005 and then as part of Campbell’s purchase of Snyder’s-Lance in 2018. The company plans to operate the facility for up to 18 months and will shut it down in phases. Campbell says it will phase out the production of candy under the Lance brand and will shift production of its higher demand Lance, Emerald and Late July snacks across the division’s manufacturing network. Valerie Oswalt, executive vice president and president of Campbell Snacks, said: “Closing one of our facilities is a very difficult decision. The Columbus plant is the oldest in our manufacturing network, making it difficult to retrofit. Our Columbus team is talented and dedicated, and we are committed to assisting them through this transition.”

Swedish better-for-you snack brand Nick's has partnered with Perfect Day to launch a new line of ‘vegan dairy ice creams’. The new keto-friendly range features seven flavours, including Swedish Mint Chip, Choklad Choklad and Karamell Swirl. The ice creams are said to be free from added sugar and to contain 70% fewer calories than traditional premium ice cream. The line is made using Perfect Day's animal-free dairy proteins, which are produced in a process that involves the fermentation of microflora. Perfect Day claims that its 'flora-made' dairy proteins are identical to the proteins found in cow’s milk, imparting to food products the nutrition, texture and taste of conventional dairy. Three of the Nick's vegan ice creams are available for home delivery in the US via the brand’s website. All seven flavours will be available for online order in February and from select retail grocery stores in the spring. Last year, The Urgent Company launched a new ice cream brand in the US made with Perfect Day’s animal-free whey protein.

Flow Alkaline Spring Water has unveiled its new vitamin-infused water line that claims to support a consumer’s immune system. Launching in the US later this year, Flow Vitamin-Infused Water is made using natural organic flavours and will come in three varieties: cherry, citrus and elderberry. The line of alkaline spring waters contains a blend of eight vitamins and minerals that are recognised for their support of immunity and metabolic function. These include vitamin C, vitamin B1 and zinc gluconate. Each beverage is available in a 500ml Tetra Pak carton that is made from nearly 70% renewable materials and is fully recyclable. “We are focused on innovation that honours the primary reasons consumers have embraced Flow: taste, refreshment and water quality,” said Nicholas Reichenbach, founder and CEO of Flow Alkaline Spring Water. “With an increased consumer focus on health, wellness and immunity-supporting functional beverages, it is an ideal time for the Flow brand to introduce Flow Vitamin-Infused Water,” he added. Flow Vitamin-Infused Water is the latest product release from the brand, following its spring 2020 launch of a collagen-infused water line. The drinks will be available to buy at US retailers from March/April, as well as to pre-order online from February, for a suggested retail price of $2.99. Last October, Flow secured a seven-figure investmentfrom Virgo Investment Group to fund new product lines and expand distribution channels.

US turkey producer Butterball has announced that it is investing a total of $8.7 million at two processing facilities in Northwest Arkansas. The project includes a $4.7 million investment in Ozark and a $4 million investment in Huntsville, with the company expecting to create a total of 360 new jobs within three years. Butterball’s Huntsville facility makes a range of products, including pre-packaged fresh, frozen and cooked whole turkeys, as well as turkey breasts and roasts. The company plans to upgrade processing equipment, expand cooler space and implement production line modifications at the Huntsville site, among other changes. At the Ozark plant, where Butterball produces pre-packaged fresh and frozen whole turkeys, the company plans to expand refrigeration capacity and upgrade processing equipment. Butterball will also reportedly remodel employee welfare areas at the facility. Butterball president and CEO, Jay Jandrain, said: “Having been a longstanding employer in Arkansas through our feed mills, turkey growing operations and production facilities, Butterball appreciates the continued support from the state of Arkansas as we look to expand some of our processing operations at our Huntsville and Ozark, Arkansas facilities.” Asa Hutchinson, Governor of Arkansas, said: “This is a great day for Northwest Arkansas. Butterball has chosen to expand not just one, but two Arkansas facilities. The trust that they have placed in our workforce and business climate is a great testament to the hard work and dedication of our state and these two communities.”

New Zealand-based biotechnology company PharmaZen has received a NZD 14 million ($9.94 million) investment from ADM Capital's Cibus Fund. PharmaZen – which trades as Waitaki Biosciences – develops, manufactures and distributes a portfolio of nutraceutical ingredients including marine and bovine collagen, fruit extracts and protein ingredients. These ingredients include greenshell mussell powder, shark cartilage powder and blackcurrant extracts, to support areas such as joint, bone, muscle and digestive health. Cibus Fund, meanwhile, is an agri-technology investment fund established by ADM Capital, which invests in "sustainably run" food and agriculture companies. Cibus Fund will acquire a 13.8% stake in PharmaZen as a result of this transaction, and the capital raised through the investment will reportedly be used to expand PharmaZen's production capacity amid growing demand for its nutraceutical ingredients. According to a release, a new 3,000 square-metre production facility will be constructed on PharmaZen’s existing site in Rolleston, New Zealand, which is expected to be operational in August 2021. Once completed, the site will house three more two-tonne freeze dryers, as well as new extraction facilities and an expanded marine collagen plant. PharmaZen also reportedly plans to purchase another hectare alongside the existing Rolleston site, with proposals for a further 3,000 square-metre factory currently being outlined, with an anticipated build date of mid-2021. Damon Petrie, investment director at ADM Capital and a member of the Cibus team, will join the PharmaZen board as a non-executive director once the transaction is completed. Petrie said: “PharmaZen occupies a unique position on the world stage and is well placed to benefit from the strong growth we are seeing in international Nutraceuticals markets, now forecast to grow to become a $722 billion industry by 2027 from $383 billion in 2019. "Its portfolio of nutraceutical ingredients and its AiOra® range of branded products are high quality and aimed at fast-growing market segments. The range also benefits from New Zealand’s clean green reputation and the country’s record for producing high-quality food and ingredients."

Walmart has announced that it will be testing out grocery deliveries using a HomeValet’s smart box to keep food fresh outside of customer’s homes. From this spring, participating customers in Bentonville, Arkansas, will be able to receive deliveries from their local Walmart directly in a temperature-controlled HomeValet-powered smart box placed outside their home. As a result, Walmart says customers will have the ability to receive secure, contactless deliveries and will know their grocery items will stay fresh whether they are home or not. Powered by an internet of things (IoT) platform, HomeValet’s smart box has three temperature-controlled zones, ensuring it can properly store frozen, refrigerated and pantry items. When it is time for a delivery to be made, the smart box also communicates with the delivery provider’s device, giving them secure access to the smart box to complete the delivery. Walmart says the solution presents the retailer an opportunity to deliver items 24 hours a day, seven days a week. The US retail corporation launched its grocery delivery service in 2018, and it aims to continue to find new ways to serve customers. Last year, the company announced that its automated system Alphabot was fully operational to enable more efficient order picking and was ready for a wider roll out.

Barilla has purchased a majority stake in Pasta Evangelists, a UK company which delivers fresh pasta recipe boxes direct-to-consumers. The Italian company says the deal supports its international growth plans, especially in the UK, and boosts its digital sales efforts amid a period when food delivery businesses are thriving. Founded in 2016, Pasta Evangelists delivers various forms of pasta and sauces directly to consumers across the UK on a subscription basis. The company also distributes its pasta and sauces via Ocado, Amazon and Marks & Spencer. Among its investors is Great British Bake Off judge Prue Leith. Barilla – known as the world’s biggest pasta maker – will acquire the UK company through its venture firm BLU1877 for an undisclosed sum. As cited by Reuters, two sources close to the matter said Barilla would pay around £40 million for the fresh pasta firm. According to Barilla, Pasta Evangelists’ sales rose more than 300% during 2020, having sold in excess of 1 million portions of pasta during the year, up from just 200 portions when it launched in 2016. Gianluca Di Tondo, Barilla Group chief marketing officer, said: “The Covid-19 crisis has changed consumer behaviour, the way people work, and the way products are distributed. “The consumer demand for freshly made, premium food is growing, as well as the boom in ecommerce and subscription-based consumer products. We are excited to expand our family with a brand that underlines these major trends. The UK is at the forefront of both.” Following the acquisition, Pasta Evangelists will continue to operate as a stand-alone entity led by its CEO and founder, Alessandro Savelli, and co-founders Chris Rennoldson and Finn Lagun, who will remain significant shareholders in the company. Barilla is looking to expand in the promising UK market, where the company is registering interesting growth rates. These efforts will also be supported by the creation of a digital hub in London, which will work in an integrated way with the Parma headquarters. Pasta Evangelists CEO and founder, Alessandro Savelli, said: “With Barilla's support, we look forward to taking Pasta Evangelists to the next level, including through internationalisation and scaling up our production whilst staying true to our core values: freshness, craftsmanship and italianità, or Italianness. As an entrepreneur, and as an Italian, for me this is a dream come true.”

AB InBev’s Michelob Ultra brand has expanded its portfolio with the introduction of a range of USDA certified organic hard seltzers. Marking the brand’s entry into the hard seltzer category, Michelob Ultra Organic Seltzer comes in three flavours: cucumber lime, spicy pineapple and peach pear. According to Michelob Ultra, the new offering “caters to the more mature hard seltzer lover, ages 35-54 years old”, who the brand says is driving half of the growth in the hard seltzer segment. "We're kicking off 2021 in a big way by bringing an innovative...organic option to the hard seltzer category for those who enjoy clean and refreshing flavours," said Ricardo Marques, global vice president of Michelob Ultra. "We believe that Michelob Ultra is uniquely positioned to win in the hard seltzer segment, not only because it's one of the hottest brands in the country, but also because it has unmatched equity as a high-quality brand. This is just the beginning of an exciting, action-packed year from Michelob Ultra, and we couldn't be more excited." According to Michelob Ultra, the new offering contains zero sugar and only 80 calories, and is filtered six times to remove impurities. The seltzers will be available nationwide starting this month in 12oz can 12-packs and 12oz can 24-packs, as well as in 25oz cans, wherever the Michelob Ultra brand is sold. A second variety pack and additional flavours will be available later this year. AB InBev’s Bud Light brand is also expanding its range with new Seltzer Lemonades, which will be available in the US from next week.

Mars has partnered with DHL in a project that will see the construction of two new warehousing facilities in the UK, in an effort to reduce its logistics carbon footprint. The project represents a £350 million investment and Mars claims that it will deliver annual outbound logistics CO2 savings of 7.7%. The multi-year partnership with logistics company DHL will ensure that Mars is well positioned to meet increasing consumer demand with its products. The new sites will be based in the Midlands and East London and will designed with sustainability in focus, with the buildings to be partially solar powered. They will have a combined square footage of over a million feet, increasing Mars’ warehousing capacity by over 50%. Mars UK says it transports over 1.2 million pallets of its products every year, and as a result of the £350 million sustainable logistics operation, the company claims it will remove a million miles a year from roads.  Tim Walker, supply chain director at Mars UK, said: “Our partnership with DHL will deliver a world class logistics operation that is sustainable, smart and agile. This project is a meaningful step in our sustainability journey as we look to create the world we want tomorrow – which we know starts with how we do business today.” Jim Hartshorne, managing director, retail & consumer & Ireland, DHL Supply Chain, said: “We’re delighted to be extending our global partnership with Mars in the construction and management of these sites. Our shared environmental commitments are supported by this investment and we are creating long term, exciting jobs in both of these communities.” The two depots, East Midlands Gateway and London Thames Gateway, will be operational in the spring of 2022 and 2023 respectively.