Baking & Snack - November 2019 - 42

Brand
chemistry
STARTUP
BRANDSbrings legacy companies into the future
In 2017, Chicago-based Conagra
Brands acquired Mankato, MNbased Boomchicapop to modernize its offerings and accelerate its
growth. That same year, the Kellogg
Company, Battle Creek, MI, acquired
RXBar, Chicago, to diversify its
offerings and follow present and
future trends.
Established companies are incorporating new brands into their
portfolios; by doing this, they're
implementing disruptive ideas with-

out much resistance and gaining
valuable resources and insight from
these innovators.
The biggest element of success
for this type of cooperation is having
common goals. "It sounds fundamental, but what are you both trying
to do?" asked Jim Stengel, president
and CEO of The Jim Stengel Co.
"You have to have a common purpose, and you have to have trust."
Acquired companies often need
reassurance that their brand's

creating snack brands designed to fill perceived voids in
the marketplace," said Rob Sarlls, president and CEO,
Wyandot Snacks, Marion, OH. "They are typically passionate about a certain product attribute or base ingredient. But having a great idea or a slick brand depiction
is not enough to succeed. Consumers are looking for
authenticity and to connect with a strong founder story
and a purpose. When it's fake, they know it. If it is there
and it's genuine, then it can be very powerful."
A company's story can be its connection to its product. New York-based The Safe + Fair Co., an allergenfree snack brand, came about because founders Dave
Leyrer and Pete Najarian and chairman Gereth Asten
had children with food allergies. They understood there
was a hole in the market and knew, as a consumer, what
was needed to fill it.
"Startups are very closely connected to their consumA company's voice on
social media is essential ers and are typically consumers of their own products,"
to reach consumers. Ms. Shmulik said. "This allows them to rapidly test and
The Hatchery Chicago

personality won't be stripped and
their values will be upheld after a
partnership has been made; therefore, honest communication before
and after the deal is critical.
"Startups are changing legacy
brands and making them better,"
Mr. Stengel said. "Those that are
proactively trying to work with startups are the ones I think are changing the fastest. Open eyes and ears
on both sides to make the company
better. That's where the magic is."

prototype as well as better understand growing interest
in health-oriented foods and unique snacking desires.
They are able to connect with their consumer on a deeper level through sampling, demos, event engagement
and heeding the feedback they receive."
Additionally, storytelling also pertains to the message
that's being sent to consumers. What does a company
stand for? Perhaps it's sustainability, an emphasis on
better-for-you or a desire to give parents a break with a
healthy snack for kids.
Stacy Madison, founder of Stacy's Pita Chip Co.,
which was eventually acquired by Purchase, NY-based
PepsiCo, launched BeBOLD Energy Bars earlier this
year. While the snack incorporates a variety of trending
qualities plant protein, no gluten or dairy, 18 g whole
grain, and refrigerated or frozen to maintain freshness
it also sends consumers an inspiring message by asking them the question: "What's your bold?" Consumers
can submit their stories, and BeBold highlights these
courageous tales on its Facebook page.
San Francisco-based Regrained is becoming a wellknown name due to its purpose of fighting food waste
through upcycled ingredients. It harvests the leftover grains
from the beer-brewing process and transforms them into
Supergrain+, which is the core ingredient of its snack bars.
More and more new brands have a purpose, and it's
become evident to consumers. "The consuming public increasingly wants to connect with what they buy,"
Mr. Sarlls said. "They want their values represented and
mirrored. They want to see the brand stand for something, whether it is helping farmers or contributing to
Feeding America for every bag bought. The newer brands
are phenomenal at doing this. It helps their consuming
base identify better with the brand and creates more and
lasting loyalty."
Consumer still enjoy traditional brands, but growth
requires product disruption, agility and a purpose that
people can relate to and trust. And although legacy
companies have been around the block a few times,
they just might be able to learn from startups coming
around for the first time.

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