KANSAS CITY, MO — Consumers want it all, and the constant evolution of consumer preferences is one of the biggest challenges faced by the baking industry. Collaborating with an accelerator or incubator program — as a sponsor or participant — is proving to be an effective way for established companies and disruptive entrepreneurs to work together.
While incubators focus more on early-stage ideas and products, accelerators target existing companies that already have a product but need help growing the brand and business. Both types benefit smaller companies by offering mentorship, resources and guidance, and they can also offer value to larger bakers.
“Bringing this idea of using accelerators and incubators to the forefront may encourage thought leadership around this type of innovation, which could be embraced by larger baking companies who may not be using them as much as other food and beverage sectors,” said industry consultant Lee Sanders, founder and president of the Lee Sanders Strategy Group. “These programs can provide a unique way of looking at product development to test the viability of new products and determine if a larger investment is worthwhile.”
Established CPG baking companies like Chicago-based Mondelez International are operating their own accelerator and incubator models to bring innovation to their brands. SnackFutures, Mondelez’ venture hub program, builds a pipeline of companies with high growth potential and a proven path to scale.
Through a 12-week CoLab startup engagement program, participants gain access to resources, instruction, mentoring and industry expertise.
“SnackFutures adds great value for participants since two of Mondelez’ core businesses are biscuits and baked snacks,” said Jackie Haney, innovation and CoLab program manager at Mondelez International. “We have the expertise in baking science, ingredient technologies and manufacturing at scale, which is the core of what every baking business needs, especially smaller ones trying to figure out a formulation that is functional and tastes good.”
Glen Cove, NY-based Steiner’s Coffee Cake of New York was chosen as a part of this year’s CoLab class because its flagship product — gluten-free coffee cake — fit the startup program’s Disruptively Delicious theme.
“On the flip side, it’s also great for us,” Haney said. “Our CoLab programs were deliberately built on the principle of collaboration. We only select companies that can help accelerate innovation in our core businesses, bring insights and ideas in wellbeing, and introduce us to capabilities in technology and sustainability.”
SnackFutures’ participants are small brands and businesses that have neither time nor resources to spare, so the program establishes a partnership and provides tangible, actionable support tailored to each company’s specific startup needs.
For example, Candace Wu and Jonathan Weinstein, co-founders of Boston-based Wonder Monday, decided to participate in Mondelez’ CoLab after they had already created their product, a keto-friendly, low-carb, zero-sugar cheesecake snack inspired by classic New York-style cheesecake.
“While our product development and formulation were not a part of our CoLab experience, Mondelez helped connect us to suppliers that otherwise would have been difficult for us to reach given our early stage, and that was significant for our company,” Wu said.
Drexel University’s Food Lab is an incubator-style program. It specializes in early-stage food product development and helps entrepreneurs take family recipes from home kitchens to a product ready for mass distribution.
“Entrepreneurs look for experts who can help them make that transition from home baked to a scalable, automated or mass marketed bakery product,” said Jonathan Deutsch, PhD, director of the Food Lab program at Drexel University.
Kimberle Lau, founder of New York-based Bake Me Healthy, needed external help and experience in crafting a baking mix that was easy to use, included the top nine allergen-free attributes and used upcycled ingredients.
“I wanted to work with Dr. Deutsch, his team and the students because they are all food scientists, and baking is 100 percent science,” Lau said. “They knew the testing grounds, how to work with certain ingredients, tweak the recipes given some of the challenges, and balance them with upcycled ingredients.”
Drexel’s Food Lab also runs focus groups and consumer surveys before sending a product to market. These tools provide participants with pre-market input and a product optimized with consumer research, sensory research and consumer feedback beforehand so they can minimize the risk of needing to reformulate.
Suppliers are also establishing incubator programs. Ingredient supplier Puratos has a program that supports innovation in food technology and invests in startups focused on developing healthier, more sustainable baked goods. At iba 2023, the company sponsored the trade fair’s first-ever startup area, which featured 24 emerging brands.
This story has been adapted from the 2023 Innovations Annual issue of Commercial Baking. Read the full story in the digital edition here.
