Programs for accelerators and incubators that assist dairy startups
Mentoring and guidance on anything from branding to marketing to obtaining funding are offered by incubators. In that environment, startups have the opportunity to interact with and learn from some of the most intriguing challenger companies that are upending the market.
These programs provide a different, more affordable method of taking advantage of the most likely future developments in the sector.
Increasing the level of innovation
In an effort to boost and expedite the release of cutting-edge goods manufactured with California milk and dairy into the market, the Real California Milk Excelerator was introduced in 2019. The meeting started with a conversation about the need for innovation in the dairy category between Fred Schonenberg, CEO of VentureFuel, Brooklyn, NY, and John Talbot, CEO of the California Milk Advisory Board (CMAB), Tracy, Calif.
“The Excelerator swiftly evolved from the original ‘what if’ question,” Mr. Talbot stated. “The goal is to harness the fervor and spirit of entrepreneurship of California’s startup scene and combine it with easy access to a plentiful supply of dairy products and milk that are sourced sustainably in California.”
The foundation of the initiative is the encouragement and development of novel ventures and goods that capitalize on the qualities, taste, and health advantages of authentic California dairy.
The competition, according to Mr. Talbot, is especially made to identify, finance, and accelerate early-stage innovations. It provides entrepreneurs with non-dilutive capital, exclusive network access from the California Milk Advisory Board, mentors, investors, and customers.
The program’s first year concentrated on innovation in the fluid dairy industry; over time, snacking, functional products, and open innovation have all been added.
In order to prepare them for the final pitch round, Mr. Talbot stated, “We recruit the most innovative products and entrepreneurs making products that use at least 50% real dairy in their formulation, winnow them down to a selection of finalists and take them through a rigorous mentorship and support program.”
Leaders in venture capital, retail, media, and CPG are among those who hear the proposal.
Mr. Talbot noted that in 2021, a new incubator spinoff was established for applicants with potential who did not satisfy the requirements for the full competition. This spinoff gave them access to individualized mentorship.
From idea to creation
Mr. Talbot clarified that there are numerous stops along the road when a product moves from the idea stage to production and, eventually, to the consumer, either through retail channels or direct to consumer.
“Programs like the RCM Excelerator give access to high-level mentors and even funding for elements like packaging and promotional tools. They also tap into a network of resources — from formulation and copacker contacts, market research, marketing resources, etc. — that are often unavailable to startups,” he said. “It speeds up the process of getting these products into the market by giving the dairy industry access to a pipeline of new products and inventors using genuine milk and dairy components.
“The connections made at these competitions endure long after the entry and pitch phases, serving as a source of inspiration for both finalists and other competitors.” We have established an innovation ecosystem to help these products prosper both during and after the competition.
According to Mr. Talbot, the Excelerator program is designed especially to support business owners in expanding their brands and product lines.
According to Mr. Talbot, manufacturers who produce goods that contain at least 50% dairy have a month to apply. These products can be anything from foods and drinks to personal care items, packaging, materials sciences, textiles, pet products, or anything else that creatively uses dairy.
These producers must be willing to commit to operating within the state of California and using only milk from California to make their products, as well as have less than $1 million in lifetime domestic sales.
A three-month program with access to industry-specific content resources, individualized and excellent coaching, and a group stipend to cover expenses related to creating, refining, and developing products and business ideas is offered to eight selected finalists.
According to Mr. Talbot, at a final live pitch event, the cohort samples and presents their products to a panel of judges who are industry experts at the end of the program. In addition to admission to an exclusive retailer and investor event aimed at generating new leads and investment prospects, the four winners will receive a $30,000 marketing support prize. A year following the live pitch event, the winner with the highest sales tracked receives a $100,000 grand prize in marketing support.
The Excelerator has worked with 45 businesses in a variety of areas over the last four years, including food, drink, textiles, personal care, and direct-to-consumer platforms.
According to Mr. Talbot, “we’ve accelerated products like Goon With A Spoon, Wheyward Spirit, Sach Foods, Cheese Bits, dosa by Dosa, and Kefir Labs.” “Alumni of the program, who represent almost 40% of US states, have gone from concept to distribution with UNFI and KeHE; many are now available on the shelves of stores like Walmart, Safeway, Kroger, Amazon, and Whole Foods.”
CMAB focuses on establishing connections between resources and comprehending the industry rather than producing or selling goods.
“The CPG, retail, research, advertising, and public relations industries comprise our team. From food to technology and all points in between, our partner VentureFuel is immersed in the realm of innovation,” he stated. With this partnership, we are able to offer market research and insights, processor and co-packer access, team mentorship from production, retail, sales, and marketing specialists, and a network of startup and innovation experts fostered by VentureFuel team members and CMAB staff.
An entirely new whey
Through mentoring and educational programming, the 90-day immersive Dairy Farmers of America (DFA) CoLAB Accelerator program helps establish and accelerate ag-tech startup enterprises.
The family farm owners of DFA, located near Kansas City, Kansas, have worked with a number of startups throughout the dairy value chain to offer valuable services to them, as well as wholesome dairy-based goods to customers and useful business data. DFA has provided more funding and support to other CoLAB enterprises, fostering enduring partnerships.
An alcohol company called Wheyward Spirit in Portland, Oregon uses leftover whey from the dairy industry to create a farm-to-flask spirit that is smoother, tastes better, and is more environmentally friendly.
2020 saw Wheyward Spirit participate in DFA and Sprint’s CoLAB Accelerator.
The creator and CEO of Wheyward Spirit, Emily Darchuk, remarked, “It was a great experience as the cohort was a blended class with food tech, ag tech, and true tech solutions.” We had a more varied range of presenters in our blended learning class, which allowed me to network and exchange knowledge with a large number of other founders—something that was particularly helpful during the quarantine.
Some of the ag tech solutions, in my opinion, profited from seeing the branding strategy that the food tech/CPG solutions used to create our goods. I found that observing how ag tech companies addressed issues upstream on farms provided valuable insight into the requirements of a fully integrated co-op such as DFA.
According to Ms. Darchuk, DFA became aware of Wheyward Spirit when it was searching for established businesses that supported innovation and addressed the needs of its stakeholders and clients.
“We had an innovation that drove category creation and valorized a waste stream for DFA, so Wheyward Spirit fit the bill,” the spokesperson stated. Additionally, we were a business with a clear mission and brand. The DFA team encouraged me to apply after we had a screening call and they mentioned that they had read about Wheyward Spirit in a magazine article. A few companies in the cohort—GoodSport, Superfrau, Wheyward Spirit, and Capro-X—were using whey waste, and waste stream utilization was a popular trend among them. It’s been wonderful since I’ve stayed in contact with the founders of each of these businesses as we’ve all expanded them successfully.
According to Ms. Darchuk, the accelerator program served as a spur for carrying on with DFA’s work.
“Wheyward Spirit is always behind the bar at their events, and we have maintained a very close relationship with senior leadership,” the speaker stated. She had also spoken at previous annual meetings.
Accelerators, according to Ms. Darchuk, are a fantastic way for bigger businesses to collaborate with startups on innovative projects.
“It would often take enormous resources for a large company to recreate what startups bring to the table, which includes nimbleness, focus, rapid value creation, innovation, category creation, unique branding, and real-time customer insights. However, money and supply chain efficiency—which are simple for a big business to share and provide a win-win—are frequently what startups need most, according to her.
Ms. Darchuk went on to say that accelerators and incubators are also a fantastic way for a larger company to meet the founding team and explore potential business and partnership opportunities in the future.
She predicted those who do will have a significant competitive advantage in a few years. “With many challenges facing the industry, I am starting to see a real divide in which dairy companies that are forward-thinking on tech and innovation solutions, and able to effectively partner with startups to cost effectively acquire and incubate solutions of the future,” she said.
A significant development for milk
Early in 2023, DFA unveiled a ground-breaking innovation for milk in collaboration with Irvine, California’s Good Culture.
For a number of years, the R&D and Innovation teams at DFA Dairy Brands have been investigating lactose-free, probiotic milk, particularly in light of the growing interest in lactose-free milk and gut health. The COVID-19 pandemic increased consumer demand for products that can support immune health, making the project even more pertinent.
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The novel Good Culture Probiotic Milk blends a patented probiotic that has been demonstrated to assist immune system function and digestion with the flavor and nutritional value of lactose-free milk. Good Culture is well-known for its line of cultured dairy products, which promote gut health by using basic ingredients.
Good Culture Probiotic Milk comes in whole and 2% reduced fat milk varieties. It has a longer shelf life and offers one billion probiotic cultures per 12-ounce serving.
According to Jesse Merrill, the founder and CEO of Good Culture, “the opportunity to introduce a new take on milk with functional benefits was the perfect fit for the Good Culture brand and mission.” “We continue to be rooted in the conviction that human health and wellness begin in the gut, having brought the same disruption to the cottage cheese category in 2015.”
Good Culture is dedicated to doing what’s good for animals and the environment, in addition to producing healthy, gut-friendly products, according to Mr. Merrill.
“We’ve been leading the way to raise the bar for pasture-raised dairy in the industry, and our collaboration with Dairy Farmers of America offers a chance to significantly alter the food system,” he stated. Together with DFA, we have been extending the mission of pasture-raised dairy. We’ve joined forces to start a Path to Pasture pilot program, which provides DFA farmer-owners with farming resources for regenerative agriculture.
According to Mr. Merrill, the Path to Pasture program offers technical support, instructional materials, soil testing, funding opportunities, and other services to help farms create specialized plans for grazing and soil health in order to assist them in implementing sustainable business practices.