Insights from F&B Founders!

Insights from F&B Founders on Market Trends and Growth Opportunities
Published by
Rohit Raj
June 25, 2024

The number of high-quality F&B options driven by innovative founders is insane, ranging from healthy snacks like makhana, chocolates, non-alcoholic beverages, protein bars, guilt-free ice creams, to RTD coffee. The battle for wallet share in what we eat and drink is fierce, and as a health-conscious consumer (ahem), I’m excited to see what’s next! If there’s a white space right now, it’s to launch a super unhealthy, high-calorie, indulgent dessert option. 

We received our first F&B Letter of Intent (LOI) last month for an innovative brand in the healthy spreads category. There are many exciting companies to evaluate on the platform at Done Deal - sign up to get introduced! 

We've synthesized discussions with hundreds of founders and investors at Done Deal and would love to learn more from you all!

Channel Innovation

Evolving Marketplaces: Founders are shifting from D2C to marketplaces and now Quick Commerce, showcasing adaptability to evolving market trends.

Pop-Up Stores: Small store/pop-up formats are yielding fantastic ROI, with payback in months.

Increasing Ticket Size: Leveraging cross-sells and upsells on D2C platforms to combat rising CACs.

Customer Retention: This remains the holy grail in this high-repeat category.

Diverse Revenue Streams

Gifting: This category is gaining traction, contributing up to 20-30% of revenue for some founders.

Cafeteria Stocking: Another lucrative channel proving to be effective for many brands.

Sourcing and Margins

Outsourcing Manufacturing: Brands invest in experiments and innovations tailored to Indian tastes, staying asset-light.

Profitability: Achieving profitability with healthy margins (not as high as B&PC) even with 4-5 crore ARR reflects the financial viability of these F&B companies.

Offshore Growth Opportunities

Strategic Backing: Essential for scaling within and outside India. Exploring exports, especially to MENA and SEA, holds immense potential. Strategic investors with a presence in these regions can be game-changers.

To showcase your innovative F&B company, join Done Deal. List your business on our platform and connect with leading founders and investors in the F&B space!