Luke Vernon

NextFoods, Inc. ,Parents of GoodBelly+ Cheribundi just raised $10M led by ECP Growth If you build in functional CPG, this is a great mini case study in how growth actually gets funded and what operators should pay attention to. 1) Doors matter… but turns are the business They’re reportedly sitting at 24,000+ points of distribution nationwide and grew footprint about 10% in the last two months. That’s solid. But here’s the real lesson: door growth only works if velocity shows up. 2) A brand refresh can be a revenue lever (when it creates clarity) GoodBelly’s recent packaging/brand refresh was tied to a reported 40%+ lift in retail velocities. “Brand” isn’t colors and fonts it’s speed of understanding at shelf. If a shopper gets it faster, conversion goes up. Period. 3) The shot category is crowded so specificity wins GoodBelly reformulated its 2oz Wellness Shots and launched them nationally at Whole Foods. The formula callout that jumped out to me: 3g of prebiotic fiber. The lesson: in crowded formats, you can’t be “general wellness.” You need to own a job (gut, sleep, recovery) and build your product + messaging around that single outcome. 4) Innovation + retail expansion is the 1–2 punch They’re aiming that capital at innovation across gut health, recovery, and sleep, while also pushing deeper into national retail. And there’s more in the pipeline: they’ve previewed a quart-sized GoodBelly item with 11g plant-based protein targeted for Q1 2026. My founder takeaway: capital doesn’t fix a business it amplifies it. If your positioning is crisp and your product delivers, funding helps you scale faster. If not, it just helps you burn faster. If you were deploying $10M in functional CPG heading into 2026, what’s first: velocity, innovation, or sharper positioning? #CPG #FunctionalBeverages #Wellness #TrevorHague

27

2 Comments

Fellow innovators — this week’s VentureFuel Visionaries episode with Jim Weber, longtime CEO behind 𝗕𝗿𝗼𝗼𝗸𝘀 𝗥𝘂𝗻𝗻𝗶𝗻𝗴’𝘀 𝗿𝗲𝗺𝗮𝗿𝗸𝗮𝗯𝗹𝗲 𝘁𝘂𝗿𝗻𝗮𝗿𝗼𝘂𝗻𝗱, is a must-listen. So many nuggets, but the following really hit home for me: “𝗗𝗶𝘀𝗿𝘂𝗽𝘁𝗶𝗼𝗻 𝗶𝘀𝗻’𝘁 𝗮 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆. 𝗜𝘁’𝘀 𝗮𝗻 𝗼𝘂𝘁𝗰𝗼𝗺𝗲 of solving the customer better.” Brooks doubled down on 𝘤𝘶𝘴𝘵𝘰𝘮𝘦𝘳 𝘰𝘣𝘴𝘦𝘴𝘴𝘪𝘰𝘯 — investing through headwinds, not cutting back in '08/'09 — and came out stronger, tripling the US business. “𝗧𝗵𝗲 𝗖𝗘𝗢 𝗼𝘄𝗻𝘀 𝘁𝗵𝗲 𝗼𝘂𝘁-𝘆𝗲𝗮𝗿𝘀.” True leadership means building beyond the next quarter — thinking in 𝗛𝗼𝗿𝗶𝘇𝗼𝗻 𝟭 / 𝟮 / 𝟯 (𝟯, 𝟱, 𝟭𝟬 𝘆𝗲𝗮𝗿𝘀) to prevent short-termism and fuel sustained growth. #Innovation #Leadership #CorporateInnovation #CustomerObsessed #VentureFuelVisionaries

21

Butter has slipped below $1.50, cheese feels heavy and futures point toward $13 milk. 🐻 So why are whey proteins still trading like the lone bull in the barn? 🐂 I sat down with Gus Jacoby, Josh White, Joe Maixner and Diego Carvallo to unpack: -      How long can strong farm balance sheets delay cow culling -      Why Western cheese regions and Europe may feel low prices first -      Why WPC 80 and WPI remain tight despite all the extra milk 🎧 Listen in before you set your 2026 plan. Check out The Milk Check episode 88: One Bull in a Barn Full of Bears. #Dairy #DairyMarkets #DairyFutures #Whey

29

1 Comment

Healthy Expansion: Sprouts' Unique Approach to Scaling and Serving Shoppers Jack Sinclair, CEO, Sprouts Farmers Market 🛒Mission will continue to focus on helping consumers live better. Always has been. But now they're pushing further into that space as consumers crave the products they offer. 🛒By focusing on what works best, they learned what select stores were doing best and applied across the ecosystem. Original idea of going beyond 32k sq ft was proven wrong when they studied some of their smaller stores in the 16-32k sq ft. Less was actually more... cause they made the experience more approachable. 🛒Further, they leaned heavily into an #InnovationCenter idea to showcase products you couldn't find anywhere else. That unique + exclusive format has created a lure... a hook... that keeps customers interested (invested?). 🛒The creation of a "foraging team" and giving them a seat at the executive level has led to new + better products. Always looking for new 'n interesting ideas to bring to the #Sprouts customer. 🛒The customer is curious, interested... discerning. Wants to know what goes into the products they offer. 🛒Today, they're only in 24 states. They will scale, but carefully. Must ensure speed is optimized w/strong distribution centers. Especially given 20% of their sales are tied to fresh products. 🛒Their evolving model that is always identifying new customer is essential. 🛒Today they ignore a HUGE focus of the consumers; they only focus on those that value eating healthy. 🛒Should be 1,400 stores in the US, but there's only 450 stores (today). They will build 35 stores in '25... 40 stores in '26. Leading to a ton of training & development to ensure the brand is carried through in new geographies. 🛒Customers spend around 13% of their grocery budget in Sprouts... they don't want 100%. Perhaps a bit more, but they need to stay in their lane (something I always say). 🛒One of their biggest challenges is ensuring their culture is carried through as they expand their offerings. 🛒Since 2019, they've gone through a lot (when Jack joined). It was only 2% of sales back then -> fast FWD to today. It's maintained at 15% since the COVID era and they will continue to partner w/key distribution partners (DoorDash, etc.). Fresh produce is the SAME percentage now based on average purchase on digital vs. physical (i.e. consumers trust Sprouts to select the right apple, lol). 🛒With loyalty, it's been a challenge. It's evolving and will reach all stores in Q4. Chris Walton, Co-CEO, Omni Talk Retail (Interviewer) Hyve Group Channel M #GroceryShop #Retail #AlwaysLearning

15

3 Comments

Consolidation is proving to be a viable alternative for some companies in the once-hot food tech space. David 🤝 Epogee PepsiCo 🤝 poppi Flowers Foods & Subsidiaries 🤝 Simple Mills The Hershey Company 🤝 LesserEvil Brand Snack Co. FoodYoung 🤝 MeliBio Big Idea Ventures 🤝 Vevolution Venture funding for food tech has fallen sharply in recent years, but M&A activity in the space appears to be on the rise. The funding and dealmaking trends indicate that in the face of declining investor interest, consolidation is proving to be a viable alternative for some companies in the once-hot food tech space. Nathan Cooper of Barrel Ventures shares, “Many of the companies that were funded were years, if not decades away from commercial viability. They were seeing tech valuations, and required substantial amounts of cap-ex, when at the end of the day what they were selling was a CPG (consumer packaged goods) product and should have been valued as such.” Andrew D Ive of Big Idea Ventures commented, “Valuations have normalized compared to two years ago, creating an attractive window for strategic buyers to acquire de-risked, well-funded companies with validated technologies — often at reasonable prices.” This is a great article by Crunchbase highlighting the consolidation activity of the foodtech space. My tip to startups who are struggling to fundraise. Start having serious M&A conversations because you might be surprised at the partnerships you may find! https://lnkd.in/gHVJ35nm

19

Ever wonder which beers truly deserve the spotlight on your taplist? Your sales data already knows. And ignoring it could be costing you margin and momentum. In my latest article, I dig into how breweries are using real-time keg depletion and POS exports to let data—not gut—decide what stays on draft. From Untappd’s 2024 “Year in Beer” showing Pale Lager/Pilsner as the #2 style worldwide, to 2025 on-premise data confirming light lagers are outpacing sours and session IPAs, the signals are clear: crisp, lower-ABV beers are here to stay. The formula? Segment taps by job: thirst quenchers (lagers, pils), signature hops (flagship IPA + rotations), explorers (seasonals, sours), and access (NA draft). Track the fastest-kicking kegs, promote winners to permanent slots, and publish a monthly “Draft Index” to keep guests engaged. Curious how turning numbers into narratives could sharpen your lineup and boost loyalty?

3

Big news from the Manna Tree portfolio: Health-Ade has been acquired by Generous Brands — now creating a nearly $1 billion total sales platform transforming the refrigerated beverage aisle.   We partnered with Health-Ade in 2021, recognizing the growing demand for gut health and functional nutrition. Approaching $250M+ in retail sales annually and distribution in over 65,000 stores, Health-Ade exemplifies what it means to scale with integrity.   It’s been an honor to support this journey alongside FIRSTBEV LIMITED — and we can’t wait to see what Health-Ade and Generous Brands do next. Story via The Wall Street Journal: https://lnkd.in/dxvX8GD2   Press release here: https://lnkd.in/df2ZgEWg   #MannaTree #HealthAde #GutHealth #BetterForYou

138

13 Comments

In uncertain times, consumers gravitate towards reliable brands. In a recent Take On the Week podcast episode by The Wall Street Journal, Markus Hansen shared insights about how food brands historically fare well during recessions, partially because consumers will remain loyal to their comfort foods (like Coca-Cola and Oreos) in times of economic distress. That makes total sense. So if you're a F&B founder, this is my reminder to you that now is the time to show up for your customers and double down on building and maintaining your relationships. Now is the time when marketing matters most. https://lnkd.in/gaemkTED

4

Here's a recap of what happened in the alcohol industry this week: 1. Diageo cuts $500M and will divest non-core assets 2. Doom scrolling, not wellness, could be tanking alcohol sales 3. Warren Buffet doubles down on Constellation Brands & Modelo 4. Avaline Wine signs a major distribution deal with SWGS 5. Trumps threatens 50% tariffs on EU, LVMH, Pernod Ricard, Diageo at risk (To stay up-to-date every day on what's going on in the alcohol industry, considering signing up for my daily newsletter - the first 30 days are free to try! - thealcoholreport.com)

5

Education fills notebooks. Execution fills shelves. And Expo West is about to highlight the difference. Every year founders leave smarter. Every year many still struggle. Not because they lack information. But because they execute alone. CPG doesn’t kill brands due to lack of education. It kills brands in moments of pressure. When: – The buyer email hits at night. – The promo math doesn’t make sense. – The deduction feels wrong. – Cash flow tightens fast. Education feels productive. Execution is where brands live or die. And execution happens when: You’re tired. You’re emotional. You’re unsure. And no one is in the room. That’s the gap no accelerator has solved. Not more content. An execution layer. An always-on system that helps founders think clearly in high-stakes retail moments. That’s what I’m building. If you want details on the CPG AI Execution Lab by Believe (6 weeks / real implementation), comment LAB or send me a DM! Founding April cohort is capped at 20. And if you see me at Expo, ask me for a “Get Out of Brutal Free” card! Because CPG is hard. And you’re not crazy for feeling that. #CPG #CPGFounder #RetailGrowth #AIinCPG #ExpoWest

2

We at Compass Natural Marketing shot some fun video interviews with innovative brands exhibiting at New Hope Network's recent Newtopia Now event in Denver. Here's a clip featuring Dry Land Distillers, a Colorado-based spirits company pursuing Regenerative Organic Certification. In using heirloom and heritage organic grains, founder Nels and brand director and alchemist Kelly Dressman share their commitment to sustainability and excellence in alcoholic beverages. A special thanks to Douglas Brown who I drafted to film for us, and to Susan Enfield and the Colorado Department of Agriculture for coordinating the Colorado pavilion at Newtopia Now.

21