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Success Tips for Food Startups

The next season of “The Cave of the Lions” will start in a few months, but the shooting is already in full swing. Although no information about the new deals seeps to the public, one can probably assume that Ralf Dümmel will strike again powerful.

Meanwhile, he and his company DS have also become food experts. On May 20, Ralf Dümmel will be seen and heard at our Food Innovation Camp. Today he tells us what food startups have to pay attention to succeed.

How do I get into food retail as a food startup?

“You do not get around cleaning latches,” says Ralf Dümmel. It’s best to start with smaller chains, where the decision-making is shorter. But the big ones are also cracking. More and more regional decision makers or market leaders are eager to experiment and like to give new products a chance.

Even in the headquarters of the leading chains is increasingly open, where you need a little luck to find the right contact. Well suited for entry are also organic markets. Their customers are basically ready to pay more for good quality. Since food startups usually rely on organic and not least, therefore, are rather expensive, there is a high degree of agreement here.

How does a startup manage to assert itself permanently in the food retail sector?

“In the end, it’s all about the taste,” says Ralf Dümmel. He likes to eat himself passionately and as a result, he has already had his suits cut a little bit more, he adds with a wink. He certainly is not alone with his pleasure in eating. Consumers like to use new products, especially if they know them from TV.

But if they do not taste good then even the biggest promise of health and the most sustainable way of production will not help. Another criterion is the price-performance ratio. For a one-off test, you are happy to spend a few cents or more, but in the long run, the quality must justify the price.

With which actions can I reach the attention of the consumers?

“At the point of sale, a creative and attractive display helps,” advises Ralf Dümmel. Every supermarket has many thousands of products to choose from. For newcomers, there is an eye-catching presentation in a beautifully designed stand a major help.

Elaborate advertising campaigns are not to pay for startups, but on social media, for example, an original clip to become a viral hit. Idea beats budget here. In the meantime, teleshopping has also achieved mass effects in relevant target groups. Anyone who has made it into the product range, achieves large TV audiences, without having to strain his marketing budget.

Which strategy is more suitable for startups: careful brand building or rapid attack on the mass market?

“That depends on whether you have a strong partner or not,” says Ralf Dümmel. On its own, a startup should take a path of small steps so as not to take over. With a partner who plays an important role in the market and brings appropriate capital, in order to be able to take a higher risk, an attack is announced. It is important to fill a product niche as quickly and thoroughly as possible. The competition does not sleep and food can be easily imitated by corporations.

Does an appearance on “The Cave of the Lions” give startups more chances or more risks?

“Definitely opportunities,” replies Ralf Dümmel. For a good product, the show is an ideal springboard. Here, startups get the attention of millions of people and in a deal a strategic partner who can help them enormously. Food is by nature an emotional topic and literally a matter of taste. What one lion finds delicious, may not please the other. The biggest risk is that it does not taste good, but then, most likely, a product will not stand a chance anyway.

What special challenges for logistics are food products?

“That depends, among other things, on the best before date,” explains Ralf Dümmel. In general, the storage principle “First In – First Out” applies, meaning that the oldest goods in the warehouse must first be delivered. Longer-lasting products generally have a best-before date (MHD) of six months or more in the future. It gets even more complex for goods with a short shelf life. Here precise quantity planning is required. Chilled products also require a supply chain that ensures complete cooling, for example through special boxes.

What should be considered when pricing food products?

“German consumers are particularly price-sensitive,” says Ralf Dümmel. For example, they are barely willing to pay twice as much for a new chip variety as a well-known brand, even if it tastes better. Therefore, it is important to study the market closely and to know the prices of the competitors. The price-performance ratio and therefore the quality must vote anyway. For some items, consumers are willing to spend more money if it has a positive image and story. Skillful marketing, therefore, plays an important role.

Published inStartups
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