Venture money is already in short supply for emerging CPG concepts; for disruptive moonshots like regenerative agriculture-focused food and beverage, securing cash from “high risk, high reward”-minded firms is even tougher. Often carrying complex supply chains – including farmers, processors and distributors for some – early access to capital is essential to get these businesses off the ground and growing if their eventual long-term returns are ever to be realized. 

Currently, about 40 entrepreneurial regen ag brands are right in the window where they may begin looking to start a seed round, having been on the market for about three to five years and raised about $1 to $3 million from angel investors. Yet even as funding flooded into plant-based protein startups over the last decade, this sustainability-centric segment doesn’t seem to be garnering the same rate of investor interest, or the large checks.

“[Regen ag] definitely doesn't fit into the traditional venture model,” stated Lara Dickinson, executive director and co-founder of One Step Closer. “Especially technology venture models – it's sort of the death of a small food company.” 

That doesn’t mean investors don’t see a future for regen ag – one firm expects $700 billion to be invested into the sector by 2050. Instead, early proponents are aiming to rethink how capital is allocated to brands with an emphasis on ensuring its arrival “at the right time, from the right person.” Some investors are even questioning whether these models are working beyond regen as well. Could it be time the industry looks to mold the VC mindset to better with the priorities of food and bev businesses? 

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Next-gen kitchen tabletop devices for beverages have a spotty record in recent years (Juicero, anyone?), and Cana is the latest ambitious drink-tech startup to shut down before really getting started. The company had raised $30 million for its appliance to make custom versions of virtually any drink on-demand, Star Trek-style (with Jean-Luc Picard as 'Mission Ambassador,' no less). Though a working prototype and brand partners were lined up, the company failed to find the “funding necessary to build a production line for manufacturing and shipping devices,” per The Spoon . 

Major distributor Republic National Distributing Company (RNDC) just gained more geographic territory— which it is putting to use by upping its sake and baijiu offerings. The distributor acquired Young Won Trading Distribution on May 17, enhancing its portfolio of sake, soju, Korean wine, baijiu and Asian beer, and expanding its distribution to North Carolina. The move will also expand business in Virginia, Maryland, D.C., and Pennsylvania. Last year the company announced the purchase of Ultra, a division of Horizon Beverage, expanding its operations in Maine, New Hampshire and Vermont, as part of its efforts toward a presence in every control state.

Last Friday, when hordes of fans were pushing their way towards refreshment stands at Massachusetts’s Gillette Stadium during the opening night of Taylor Swift’s much-heralded new tour, there was something different on tap: a glittery purple cocktail inspired by the pop star’s hit, “Lavender Haze.” Capturing venue audiences eager for something other than beer is the big bet behind Halfday Kegged Cocktails, which is bringing its (fully legal) spirit-based libations in 20-liter and 58-liter keg barrels to concerts and live events across the country. Ferron Salniker spoke with the brand last week ahead of Taylor's big show to hear about the format economics, the company's pitch to partners, and how it can thrive without space on the shelf. 

Despite the seemingly endless proliferation of flavored sparkling waters over the last decade, organic remains a relatively unexplored section of the space. It’s a segment that Nixie has targeted since its launch, and now the brand (which recently released its newest flavor, Black Cherry Lime) is set to see how its offering resonates with shoppers via a national test at Sprouts Farmers Market. In a LinkedIn post announcing the news, Nixie founder/CEO Nicole Dawes praised senior category manager Brian Albert for his ability to “recognize… and create pathways to success at retail.”  

For years kombucha brands have tried various ways to make the category more friendly and inviting to mainstream America, a job fewer people are more equipped or experienced in than Ryan Seacrest. The TV host and producer was announced last week as the new face of Health-Ade Kombucha via a multi-year partnership to create advertising and omnichannel media content, helping to push the product in both glass bottles and in newly launched cans. The move should give Health-Ade an awareness boost while it reshuffles the deck behind the scenes under new CEO Chris Lansing.

It may seem counterintuitive, but successful founders are often stung by self-doubt, a topic the hosts discussed in this episode, along with Neil Patrick Harris’ foray into the RTD cocktail business and a divisive brand collaboration. We also sat down with operations expert Andrew Guard to speak about scaling strategies, generating mainstream demand through flavor and working with non-nutritive sweeteners. Read the story.