KANSAS CITY, MO — Smaller companies or startups that have already launched brands typically participate in accelerator programs when they encounter barriers to growth. Creating a winning product falls flat without the ability to get it to market and grow the business.
That was one reason Milwaukee-based Milwaukee Pretzel Co. participated in the FaBcap program offered by Food and Beverage Wisconsin in collaboration with the University of Wisconsin’s Food Finance Institute (FFI). The FaBcap program moved to FFI and expanded to the current Fellows Program.
The FFI’s Fellows Program offered the pretzel manufacturer a way to interface more with companies that had already experienced some of the challenges it was facing as a growing business.
Matt Wessel, president and COO of Milwaukee Pretzel, was drawn to the program because it was composed of a more eclectic mix of entrepreneurs that included not just food and beverage producers but also food safety and packaging professionals who could offer solutions useful in growing his business.
“We wanted to network and learn from more seasoned entrepreneurs who had been through the ups and downs, made difficult decisions and were willing to share knowledge to make it easier for those of us at the earlier stages of growth,” Wessel said. “The greatest benefit was building a Rolodex of experienced people that we could contact when we had questions down the road.
Accelerator, incubator and venture capital programs are proving to be a win-win for baking companies of all sizes. While there are a variety of programs to choose from, finding value is about matching a brand and its business goals to the strengths of the right partnership.
“Wonder Monday is profitable, but the community and connection benefits that Mondelez’ CoLab offered made sense for our business,” said Candace Wu, co-founder of Wonder Monda. “At the same time, we bring to the table expertise as a fast-growing digitally native CPG brand. This aspect of our business differs from the retail-first origin of most brands in the Mondelez portfolio.”
Product formulation, financing, industry connections and community are all benefits that new or existing brands can receive from these programs.
“We get insights, ideas and capabilities that we can integrate into our businesses to accelerate innovation,” said Jackie Haney, innovation and CoLab program manager at Mondelez International. “At the same time, we provide resources, expertise and an ecosystem that can help brands poised for growth reduce barriers and find solutions to grow faster.”
Innovation is the name of the game in every industry. Commercial baking manufacturers need that extra help as a sounding board and to gain experience and additional insights to reach that target consumer.
“Consumers are always looking for that shiny new penny,” said Kimberle Lau, founder of Bake Me Healthy. “As founders, we cannot do it by ourselves and need the support and expertise upfront, so we are not starting from scratch.”
For Lee Sanders, founder and president of the Lee Sanders Strategy Group, it’s exciting to think about stakeholders in the baking industry helping entrepreneurs successfully develop their novel concepts, which results in new products, processing techniques, and ways of thinking that propel businesses and elevate opportunities.
“This kind of collaboration may become a trend where everyone wins,” she added.
When it comes to food, consumers do want it all. Strategic partnerships forged among established baking manufacturers and dynamic entrepreneurs have the potential to grow brands and businesses, resulting in groundbreaking innovation that taps into consumer trends shaping demand for baked goods.
This story has been adapted from the 2023 Innovations Annual issue of Commercial Baking. Read the full story in the digital edition here.
