“Disrupting US F&B categories”: Chobani unveils latest Spring Incubator class

20 Mar 2019 --- Chobani has unveiled the members of its Spring Incubator 2019 class, including eight food and beverage start-ups that the company says are “disrupting and improving mainstay food and beverage categories in the US.” According to Chobani, the Spring 2019 class bring together a diverse mix of backgrounds, perspectives and culinary inspirations.

The Spring 2019 program will run for four months, meeting one week per month, from April to July 2019, according to Chobani.

“The brands selected to participate in the Chobani Incubator’s Spring 2019 cohort are each significant in their own way,” a Chobani spokesperson tells FoodIngredientsFirst. “Several of the start-ups support local farmers and ranchers through a supply chain focused on sustainability, such as Cannonborough Beverage Company, The Meat Hook and Seal the Seasons.”

Others are creating “healthier” products including better-for-you alternatives to pantry staples, such as Mason Dixie Biscuit Co., which sells frozen biscuits made with natural ingredients, says the spokesperson. “Others are deeply rooted in cultural heritages and personal experiences, such as Thaifusions (Thai simmering sauces), AFIA Foods (Mediterranean products from age-old Syrian family recipes) and Cocina 54 (Argentinian empanadas).”

Moreover, one start-up founder, MeWe/Edesia Nutrition, is bringing her own global manufacturing expertise to the US market to support malnutrition and undernutrition in children globally.

The spokesperson also notes that “the start-ups set themselves apart through packaging, others through their personal story. But for all, it is through the taste and quality of their innovative foods.” 

By offering individuals the opportunity to have a “seat at the table,” Chobani says they are “giving small, like-minded food start-ups access to resources to help them grow and positively impact our world.”

“Our vision is to help positively shape the food industry of tomorrow. As a part of this unique program, food entrepreneurs who share our vision for Delicious, Nutritious, Natural and Accessible (DNNA) food will receive support, guidance and resources needed to provide better food to all,” the spokesperson comments.

Notably, 63 percent of the Spring 2019 class founders or co-founders are female, while underrepresented minority founders make up 75 percent of the class. According to Chobani, this class is the most diverse cohort in the program’s history, across genders, geographies, race and ethnicity and country-of-origin.

Click to EnlargeAFIA Foods: “Bringing the Mediterranean home”Here is a closer look at the Chobani Incubator’s Spring 2019 Class:

AFIA Foods
The mission at AFIA Foods is to “bring the Mediterranean home” by using authentic Syrian family recipes for frozen, high-in-protein falafel and kibbeh made with Halal certified meat. AFIA Foods is founded by British-born Syrian Farrah Moussallati Sibai and employees at the Texas-based company include family members who fled the Syrian civil war.

COCINA 54
Founded by Argentinian immigrants Cecilia Panichelli and Federico Carrillo, COCINA 54’s mission is to “make delicious empanadas, bringing a convenient product that fits consumer’s busy lifestyles and the search for bold international flavors” sold in the frozen food aisle. Flavors include beef, chicken and peppers and spinach and cheese.

The Meat HookClick to EnlargeThe Meat Hook is a Brooklyn-based, nose-to-tail butcher with a focus on local meat
The Meat Hook is a Brooklyn-based, nose-to-tail butcher with a focus on local meat from small, family-run farms in New York. All of the beef sold by The Meat Hook is 100 percent grass-fed and grass-finished and the company’s pork and lamb are pasture raised. The Meat Hook was founded in 2009 by whole animal butchers Brent Young and Ben Turley.

Mason Dixie Biscuit Co
Founder Ayeshah Abuelhiga’s mission is to make “America’s best biscuit” – chef-created biscuits that are natural, preservative and additive-free, and the only biscuit at the grocery store made with real butter and dairy. Based in Washington D.C., Mason Dixie Biscuit Co purposefully co-packs with a female owned biscuit co-manufacturer.

Cannonborough Beverage Company
Founded in 2012 by Matt Fendley, Mick Matricciano and Brandon Wogamon, Cannonborough Beverage Company’s mission is to “change the way people think about soda by creating a product that excites the senses and challenges the limits of the beverage industry.” Based in South Charleston, SC, the company sells four core flavors and a dozen seasonal items based on farmers’ varieties.

EClick to EnlargeEdesia’s ready-to-use therapeutic foods (RUTFs) have reached over 8 million malnourished children in over 50 countries since 2010desia Nutrition/MeWe
Founded by Navyn Salem as a Rhode Island-based nonprofit, Edesia currently employs about 100 people from 25 countries and provides nourishment to children in need globally. Edesia’s ready-to-use therapeutic foods (RUTFs) have reached over 8 million malnourished children in over 50 countries since 2010, and the company’s goal is to reach 10 million by 2020. The company recently debuted its US-facing line of nut butters for children in easy-to-squeeze packs.

Seal the Seasons
Founded in 2014 by Alex Piasecki and Patrick Mateer, the company’s mission is to “bring delicious local food to your grocery store 12 months a year by sourcing the best of your community’s food, creating impact for both your community and your taste buds.” The company sells 37 frozen food items in a variety of flavors, including blueberries, strawberries and peaches, all of which they source from local farmers pertinent to the regions in which they grow.

Thaifusions
Thaifusions was founded in 2008 by first generation Thai American Max Borthwick and his parents, Toi and Tom, in Seattle WA, selling sauces and curries based on family recipes that reflect the family’s heritage, pride in the Thai culture, and a lifelong craving for the fresh, potent flavors found only in authentic Thai cooking.

Since 2016, the Chobani Incubator program has helped entrepreneurs break into food and beverage industries through equity-free investment and a strong focus on mentorship. Chobani’s founder and CEO, Hamdi Ulukaya, selects all the final participants and spends time getting to know and mentor each company during the program.Click to EnlargeThaifusions, founded in 2008 

There is proof that this model is successful, says Chobani. Collectively, the first two classes to participate in the Chobani Incubator program have, on average, achieved a 68 percent increase in distribution and a 67 percent increase in annual revenue in 2018 from the year-ago period. And, overall, alumni have collectively raised over US$60 million since the program’s inception in 2016.

Investing in start-ups
The role of start-ups in shaping the future of the food and beverage industry is pronounced. Innova Market Insights listed “Small player mindset” as one of its key trends for 2019, where small players are shaking up the food and beverage industry by taking on the classic FMCG giants in an increasingly high-tech arena. Many of the big boys are venturing into the funding space or setting up investment competitions. Kombucha, cellular agriculture, clean meat and insect proteins are just some of the on-trend platforms in this “golden age of creativity.” 

Their strength as thought leaders has driven multinational companies and legacy brands to invest in them. These companies also have a marketing advantage. A 2018 Innova Market Insights trends survey found that 2 in 5 US and UK consumers prefer small brands “because they are more dedicated to their products and have a personal story.” This is completely on trend of course, as 20 percent growth has been reported in food and beverage launches with a social ethical claim (Global, 2017 vs. 2016).

It is clear that significant players are going small in their strategy in order to pick up on these trends. Just some examples of incubator programs in place come from General Mills (301 Inc.), Nestlé (TERRA Accelerator), Danone (Danone Manifesto Ventures), Kraft Heinz (Springboard Incubator), Kellogg’s (eighteen94 capital) and Unilever (Unilever Ventures).

In 2018, PepsiCo announced the launch of its Nutrition Greenhouse accelerator program in North America, an innovation initiative designed to discover and support emerging brands in the food and beverage sector. 

PepsiCo also recently revealed ten start-ups that were selected to take part in PepsiCo’s North American Nutrition Greenhouse. Brands of plant-based seafood alternatives and bean-based snacks were among the chosen companies. 

By Elizabeth Green

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