We work with investors and companies looking for investment, seeing both sides of the coin. Part of our job is to stop entrepreneurs from going after investment too early, in the process burning bridges they may well need at a later time.

Here are 7 issues we see time after time and what to do about them:

Lack of a Unique Value Proposition: Investors want to see a product or service that stands out in the crowded CPG market. If your offering is too similar to existing options, you need to differentiate it by highlighting its unique features, benefits, or target audience. The world doesn’t need another gluten-free cookie.

Weak Financial Projections: Investors look for startups with a solid financial plan and realistic projections – including pre-revenue startups. Ensure that your financial forecasts are well-researched, backed by data, and demonstrate a path to profitability. If you don’t have a financial expert on your team, hire one today.

Inexperienced Management Team: The experience and expertise of the management team is hugely important. If your team lacks relevant industry experience or a track record of success, consider bringing on advisors or mentors to strengthen your credibility.

Unclear Go-to-Market Strategy: Everybody wants to see a clear and well-defined plan for how you will bring your product to market, including distribution channels, marketing strategies, and sales tactics. Be vague or unrealistic to raise instant red flags..

Inadequate Intellectual Property Protection: I cannot possibly stress enough how important this is. If your product or service is easily replicable, if your brand is your only moat, investment will be harder to come by. Ideally, you’ll have patents, trademarks, or other intellectual property protections in place to demonstrate your competitive advantage.

Poor Branding and Packaging: Repeat after me: Canva doesn’t cut it. Your neighbour’s kid with a design degree doesn’t cut it. Branding and packaging that’s optimized for the industry are essential for attracting consumers and standing out on store shelves. If your branding and packaging are lacklustre or fail to resonate with your target audience, it will deter investors.

Insufficient Passion and Commitment: Investors need to see that you and your team are passionate about your product and committed to the long-term success of the business. “Great product, not sure about the team” is feedback we hear far too often from potential investment partners. If you don’t believe in yourself, nobody will.

Restaurant prices have been soaring 7.1% YoY compared to a 3.6% rise at grocery stores, and consumers are shifting their dining habits towards more affordable, but still convenient options.

→ Enter “Grocerants” – ready-to-eat meals served by grocery stores like Loblaws, Kroger and CostCo are taking a bite out of the restaurant industry’s profits.

→ Deli 2.0: Kroger has expanded its prepared-meal section, bundling entrées with sides and drinks. Giant Eagle is tripling the number of its prepared meals on offer , and Walmart is innovating with in-store ghost kitchens. In Canada, Loblaw Companies Limited are expanding into the market.

→ Pushing the Cart: Prepared-food sales grew 12% last year to over $23B, led by lunch favourites like soup and chilli. Convenience is key!

→ Convenience vs. Experience: Fast food restaurants like Taco Bell, KFC, and Chipotle are upping their game with unique offerings and improved interiors. But can they beat the convenience of a premade meal placed right by pantry staples?

THE TAKEAWAY: Fast food thrived on speed and predictability, but grocers are now encroaching on that turf. And with the cost of food at an all-time high, price will continue to drive decisions.

Recent research from Kerry (5000 consumers in 10 countries) revealed a an interesting consensus across countries: 98% of us are actively seeking ways to reduce food waste, mostly driven by environmental, social, and financial concerns.

Key Insights:

→ 70% of consumers are interested in products designed to minimize food waste.

→ A significant 72% believe longer shelf-life products are crucial in waste reduction.

→ Stance on preservatives: 82% prefer natural options, highlighting a shift towards healthier, more sustainable choices.

→ Changes in purchasing habits, with 91% of consumers willing to switch brands for better sustainability practices.

Opportunities for Innovation and Marketing Strategy:

With 70% of consumers interested in products designed to minimize food waste, there’s a clear demand for innovative solutions.

This could mean creating products that have a longer shelf life or utilizing ingredients that are typically discarded. For instance, developing products that use “ugly” fruits and vegetables, or creating new foods from by-products of processing, can appeal to environmentally conscious consumers.

Natural Preservatives:

The consumer preference for natural preservatives over artificial ones (82%) means that if your brands leverage natural preservatives they not only cater to the demand for cleaner labels but also position themselves as champions of sustainability.

Marketing and Brand Positioning:

Food waste reduction and shelf life efforts should inform marketing strategies.

Messaging that highlights the sustainability efforts of a brand, especially in terms of reducing food waste will resonate with consumers.

Packaging Innovations:

With consumers willing to switch brands for better shelf life, there’s a substantial opportunity in rethinking packaging. Innovations in packaging that extend the shelf life of products or allow for better portion control can meet consumer demands and reduce food waste.

Smart packaging solutions that incorporate technology to indicate freshness or optimal consumption periods can also be a significant draw.

Consumer Education:

Beyond product and packaging innovations, there’s a role for consumer education in reducing food waste. Brands can engage consumers with tips on storing and preserving food at home, understanding expiration dates, and creatively using leftovers.

This not only helps in building a relationship with consumers but also positions a brand as a thought leader in sustainability.