Healthy snacking brand reviews its business model and raises further funding
Help founders raise further capital from investors
We met the founders of a healthy snacking brand at an international food industry fair. They had recently launched the range with a mission to get children to eat better. The product and branding were strong, but sales growth was disappointing.
We were asked to help them raise further funds from existing investors.
Identify and address key issues
Undoubtedly, the founders’ drive had helped them win the attention of investors and leading retailers. However, their limited commercial experience was proving a handicap. We resolved to partially address this by working very closely with them rather than in parallel with them.
Together, we reviewed the performance of the business, the market and the business model. This revealed three key issues:
- Inadequate And Costly Distribution Solution: The appointed sales agency was on a high fixed retainer fee, had a narrow channel focus and was consistently falling short of its targets
- Insufficient Focus On Social Media: The brand profile was well suited to social media marketing and so far only one competitor in the sub-category was investing in the channel
- Poor Management And Investor Information: There was no business plan in place and investors were not being updated on a regular basis
Once we had established solutions to the issues, we built a business plan and compiled an investor pitch.
Pitch to investors with more compelling plan and team
A new distribution strategy was implemented with the incumbent agent replaced by two parties: a distributor for the grocery channel (taking title of the goods rather than working on commission) and a specialist agent for the out-of-home channel (a new focus for the brand). Both providers offered lower fixed fees than the incumbent.
A new marketing agency was appointed to galvanise the social media strategy, and an experienced advisory board was recruited to sharpen the commercial skills of the founders.
In early 2020, a new business plan and investment proposal were distributed to investors. Whilst they were concerned with historical results, they were also reassured by the robustness of the plan. New funds are now starting to flow into the business.