Food Startups Panel: Culture Kitchen, Kitchit, Forage Kitchen, Vignette Wine Country Soda, Buyer’s Best Friend, Local Dirt and Cater2.me

Since last summer, I’ve been part of a meetup group spearheaded by entrepreneur Matthew Wise focused on food startups in the Bay Area. What began as a casual group of 20-30 interested people meeting for tacos and margaritas in SOMA has now morphed into a much larger profile meetup group with close to 600 members. Matthew and his conspirator Andreas Saebjoernsen organize panels every three months featuring food startup founders.

From left to right, Zach (Cater2.me), Iso (Forage Kitchen), Heather (Local Dirt), Joyce (BBF), George and Ian (Kitchit), Adam (BBF), and Pat (Vignette). Not pictured: Abby and Jen (Culture Kitchen)

The most recent panel was held last Thursday night at SOMA Central in SF and attracted over 200 attendees. It was a pretty unique opportunity to hear from a lot of up-and-coming actors in the food startup movement and it left me feeling inspired and engaged. My highlights from the event:

  • Listening to Abby Sturges and Jennifer Lopez describe the pivot their startup, Culture Kitchen has taken with tons of passion and enthusiasm. Culture Kitchen was founded at the Stanford d.school with the mission of “spreading culture through food and empowering people to learn and share authentic ethnic cuisine.” They began by hosting cooking classes for people who want to learn authentic ethnic cooking directly from immigrant women living in the Bay Area. However recognizing the limitations of that model, they recently shifted towards selling subscription cooking boxes. Each month subscribers receive a box showcasing a different cuisine. The box includes recipes for a complete meal, all the hard-to-find ethnic ingredients (e.g., dried limes), a grocery list for fresh ingredients, tips, tricks, a list of tools, and access to blog posts conveying the “between the lines” of the recipes. Jennifer’s passion for the new model is contagious. She described to us, “we know there’s a family in Alaska, for example, that made Iraqi food for the first time.” About another family, Jennifer shared, “they never thought they’d make Western Indian food but because they made Bengali last month they’re like, ‘yeah, let me at it.’” I think it’s pretty exciting that they’re spreading ethnic cuisines all over the country, even in areas that lack ethnic grocery stores, and even beyond as they’re already talking about international expansion. Plus they totally sold me on the gift-worthiness of their boxes. I went to a wedding this weekend and bought the newlyweds a three month subscription.
  • Gaining insight from Kitchit co-founders Ian Ferguson and George Tang into the inner workings of the chef world. Kitchit enables dinner party (or brunch, or lunch, or cocktail hour) hosts to hire well known chefs to cook in the hosts’ homes for groups of diners of all sizes. Started by two graduates from the 2011 class of the Stanford GSB (Ferguson and Brendan Marshall) along with a Stanford CS masters grad (Tang), the startup has been killing it within the Stanford community. During GSB graduation weekend, for example, tons of houses of students hosted their families for Kitchit dinners in their homes serving anywhere from 20-60 people. Every dinner I’ve heard about was a huge success and a major crowd-pleaser. What was interesting to learn from Ian and George was how they had to understand the politics of the chef world in order to get their business off the ground. Traditionally private dining was viewed by chefs as selling out and lining your pockets on your off days. They had to tackle this connotation by making the Kitchit experience unique and desirable. They faced a huge barrier when signing up their first chefs as each chef would ask, “well who else is on it?” Now that they’ve recruited noteworthy Bay Area chefs, including Chef Douglas Keane from Healdsburg’s Cyrus, Chef Traci Des Jardins of Jardiniere, and Chef Mourad Lahlou from Aziza, their growth is accelerating.
  • Hearing ForageSF founder Iso Rabins’s totally different approach to serving unmet market needs. Given Kitchit and CultureKitchen were both nurtured on the Stanford campus with MBA co-founders and team members, the founders of each company spoke my language. It was refreshing, on the other hand, to hear Iso, who started ForageSF in 2008, speak a totally different language, and to realize that his approach works…well. ForageSF supports local “foragers” and small food businesses via projects like the Underground Market and the Wild Kitchen (an underground supper club). While Iso admitted most of his earlier efforts were questionably legal, he’s succeeded in creating a movement and building momentum. For him, the balance he strives to strike is between supporting a local food culture and complying with regulations and laws. Recently he’s kicked off a much larger project: The Forage Kitchen, which requires him to do things much more by the book. The kitchen is a $3M space and he’s putting a lot of thought into how to make it a sustainable for-profit + for-good business. The kitchen will be a hub for the San Francisco food community: a place to “cook, learn, produce, and enjoy local food.” The hub will include shared office space, an incubator program for artisan food startups, cooking classes and kitchen rentals, a rooftop garden, and a café and store for enjoying local products. Consistent with Iso’s approach of starting from what the community needs, he’s funding the project from the community using a Kickstarter campaign. As I write, the campaign has raised ~$120K out of the needed $150K. I contributed this weekend and encourage you all to do so. There are some pretty cool perks for contributing.
  • Learning from Vignette founder Pat Galvin that 35% of Americans over the age of 18 identify as non-drinkers, and are often ignored or treated unfairly in drinking environments. Pat started Vignette, the Wine Country Soda, to produce a new artisanal beverage made from grapes. Providing an option for non-drinkers was a secondary motivation; Pat himself is not a non-drinker. However as he’s gained momentum and received feedback from customers he’s realized he’s filling an important niche. Non-drinkers are often left out of the wine tasting experience. Now many Napa and Sonoma Valley wineries carry Vignette and are able to offer an artisanal beverage (in flavors including Pinot Noir, Chardonnay, Rose, and California Brut) made from local grapes to non-drinkers. Pretty cool to stumble on an unmet need in this way and fill it so perfectly. I haven’t tried the sodas yet, and am pretty sure in most cases I’d choose wine over nonalcoholic grape soda but I’m excited to give them a taste.
  • Listening to Buyer’s Best Friend co-founder and CEO Adam Sah debate the symbiosis between food and tech. Adam and his girlfriend Joyce Guan co-founded Buyer’s Best Friend (BBF) in 2010 as a comprehensive wholesale catalog of artisan food products. They boast over 60,000 products from 1100+ manufacturers and have (very) recently partnered with natural foods distribution giant UNFIto increase the reach of otherwise local small-scale food companies. Adam’s take on food and tech? Food can’t be tech’ed. Given their company’s role is to catalog 60K products it makes sense that, although technology can help, there will always be a manual portion of the business. Adam explained, “there is no food plus tech. There are food people, and there are tech people. There will always be a divide. There are partial fixes, comprises, iterations, and highly manual solutions.” Iso chimed in at this point with one of my favorite takes on the relationship between food and tech: “In the Bay Area, the tech world is the patron of the food world.” I.e., money flows into tech companies, whose owners spend it on high quality food experiences. Sounds about right. Overall Buyer’s Best Friend sounded like a pretty impressive company, especially given how quickly Adam and Joyce have built it. Besides the recent UNFI partnership they’ve also launched a retail space this month in the Upper Haight (1740 Haight at Cole) called Buyer’s Best Friend – Whole Sale and Mercantile showcasing small regional food brands (and almost everything for sale can be sampled—sounds like a fun excursion). They’re success is not surprising given the power couple’s background. Joyce is a rockstar saleswoman from the food world and Adam is a serial entrepreneur with three IPOs under his belt. According to the Eater SF profile of the new store, BBF is only “the third biggest project” that Joyce and Adam are working on. I’m excited to see what else they come up with.

Beyond the individuals listed above, the other two panelists were  Zach Yungst, co-founder of Cater2.me, a catering company connecting Bay Area offices to local food purveyors, and Heather Hilleren, owner of Local Dirt, an online site for finding, buying and selling local produce.

Given the tidbits described above, and the passion and excitement I derive from attending events like these and connecting with this community, I judged the panel to be a success. I do think there’s some room for improvement (e.g., the panel was a bit too large for every question to be answered by every panelist in the same order, and there was some gratuitous self-promotion) but the issues were minor. Overall Matthew and Andreas have built a unique and engaged community with lots to share and I’m looking forward to the next event in September. RVSP here.

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Eco Top Chef: Engaging Middle Schoolers in the Food System

I had the pleasure this weekend of attending the Eco Top Chef Marin final competition: the culmination of two months of food and cooking education for groups of 6th, 7th, and 8th graders from seven middle schools across Marin County. The program was executed by Teens Turning Green, a nonprofit of which I’ve served on the board for the past two years. I hadn’t read much about the Eco Top Chef program before coming to the event and I was blown away by what I witnessed. I’ve never been prouder to be involved with an organization as I was on Saturday.

Seven teams of ten middle schoolers spent the past two months learning about healthy food, sustainable ingredients, fair trade, school lunch regulations, and menus. Each school team was partnered with a chef from a sustainably-minded restaurant in Marin (including Sol Hernandez, the owner of one of my all-time favorites—Sol Food—I was star-struck! Full list of the illustrious chefs here). The students and their chefs field-tripped to Whole Foods to study ingredient labels, to the farmers’ market to learn about the benefits of buying locally and organically, to Green Gulch Farm to see farming in action, and finally to the restaurant of their partner chef. The teams applied everything they’d learned at the Eco Top Chef Finale: a cooking competition to create a healthy and delicious lunch for middle school students costing no more than $1.35 per serving, accordant with the federal school lunch reimbursement rate (excluding cost of labor). The students presented their meals to the (awesome) judges and shared how they addressed the challenges of sourcing local and organic, balancing health with kid-friendliness, and meeting tough budget constraints. Judges scored based on a range of criteria including taste, sustainability, and health. First, second, and third place prizes were given out and then the audience had a chance to eat the food.

What struck me most about the event was listening to the kids. Each participant was interviewed on camera before the event and shared what they had learned. Here are my favorites:

  • “I learned how much sugar we normally eat and have eaten a lot less since”
  • “Now I look at ingredients in the grocery store and can tell my mom not to buy it if it has high fructose corn syrup”
  • “I know that GMOs aren’t labeled and they should be”
  • “I understand now how much more money goes to farmers when you buy at the farmers’ market instead of at the store”
  • “At the farmers’ market they showed us how many cups of sugar are in a candy bar. It’s hard to imagine that much sugar could be in something so small but now I know”
  • “The best part for me is seeing it happen here, in a school kitchen. If it can happen today then we now have living proof it will work and we can tell our principal. I know it works because we’re doing it right now”

The students were engaged, passionate, and empowered to change their own eating as well as their schools’ lunch programs from conventional to conscious. This is exactly what Teens Turning Green, and its Executive Director Judi Shils, are so effective at achieving: giving youth a choice, a voice, and a platform. I can’t wait to participate in future Eco Top Chef events. Stay tuned. And congrats to the team from MLK Academy in Marin City! They earned major points for growing many of their ingredients on campus, in addition to presenting a delicious meal.

Photos from the event:

Luna from MLK in Marin City

Ali from Ross Middle School

Judging panel

Pulled pork shoulder tacos

The team from Kent Middle School in Kentfield

The team from Mill Valley Middle School, my alma mater!

The beverage presented by team MVMS

The winning team, from MLK in Marin City, with their trophy

Sample budget and sourcing info from the San Domenico School team, prepared with the help of Sol Hernandez

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The Weight of the Nation: what the experts say

I haven’t had time to watch this highly-anticipated HBO mini-series yet but I have enjoyed reading the reactions of my favorite bloggers. I’ve listed them all below if you want to check them out. Consensus is that the series brings home the severity of the situation but doesn’t take risks in addressing the systemic and politically sensitive changes that are very much needed. Hoping to watch it myself soon!

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Afternoon at Lemnos Labs (2 of 2): Momentum Machines

A continuation of my earlier post on the afternoon I spent at Lemnos Labs, a hardware incubator in SOMA.

Momentum Machines

While hanging out at Lemnos, Jeremy and Matt introduced me to Alexandros Vardakostas and Lucas Lincoln, President and CTO, respectively, of Momentum Machines. The company is relatively stealth, and the website reveals little except the basic philosophy: “Momentum Machines Company is about the new industrial revolution. It is about clever applications of technology to free us from unpleasant labor. Our unique and carefully crafted commercial robotic devices are designed to maximize efficiency by minimizing consumer facing businesses’ labor and overhead costs, while providing higher quality, speed, & precision.”

Momentum Machines team at work

So how does this relate to food? The food preparation industry is one that is ripe with “unpleasant labor.” And Momentum is initially targeting one specific food-related task which occurs all over the world: hamburger assembly. They’ve built a robotic machine which can assemble hamburgers rapidly, consistently, and with a great degree of customization.

An intriguing question the founding team has regards consumer reaction. How will customers feel about a robot assembling their burgers? What role does their product play given the foodie/handmade/locally-crafted zeitgeist that’s intoxicated the Bay Area and other parts of the world? Is there an inherent contradiction? I actually feel pretty strongly that the answer is no. Here’s why:

The product will dramatically reduce labor costs, giving smaller burger joints a chance to be cost-competitive if they choose to source organic and grass-fed beef and organic condiments. The machine also enables restaurants to use whole ingredients without dramatically increasing costs. For example, a meat grinder is an easy add-on which would enable users to bypass the frozen additive-laden patties that are so ubiquitous in favor of actual 100% beef from a single animal. We talked about making the machine physically transparent so that customers can actually see the whole foods get ground, chopped and assembled into their meal (just how everyone loves watching In-N-Out employees make french fries out of real potatoes…) If the goal of the foodie movement to connect customers to their food, I see a ton of alignment.

While it’s unclear at this point if the company will adopt the sustainable ingredient angle that I’d love to see, there’s no denying this product will enable restaurateurs to pursue quality at a competitive price point. Imagine the implications of an organic hamburger chain serving marginalized consumers at a competitive price in communities that previously only had a McDonald’s? While a burger is still a burger, a burger made from all-natural whole ingredients is a vast improvement over the heavily-processed fast food product that contains, on average, meat from “a thousand or more cattle from as many as five different countries,” according to Eric Schlosser.

Although consumer reaction is important, the main focus of the Momentum team is identifying their target market. Alex, Momentum’s President, explains, “determining our target market is our main problem right now and we’re excited to implement a true tech startup’s take on the QSR industry. A lot of industries were disrupted by tech startups and we hope to be an example of that.” I’m excited to hear more from this innovative team.

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Afternoon at Lemnos Labs (1 of 2): Blossom Coffee

I had the privilege of spending last Friday afternoon at Lemnos Labs, a hardware incubator in SOMA. Lemnos is pretty new and still small: the first class of startups, set to graduate this June, comprises four companies. But it is attracting attention due to its unique focus on hardware, especially given the success hardware startups are currently experiencing. And, most exciting to me, two of the four companies are focused on food: Blossom Coffee and Momentum Machines.

Blossom Coffee

I spent about an hour and a half with Jeremy Kuempel and Matt Walliser, President and Chief Engineer, respectively, of Blossom Coffee. From their website, “Blossom seeks to provide coffee professionals with unparalleled control over the variables that affect the extraction of flavor from coffee.” Jeremy walked me through the path that brought him to Blossom and to working on coffee in the first place. As an undergrad at MIT, he drank a ton of coffee. He started investigating how brewing affects the flavor of coffee and came up with a simple yet novel framework: if you put temperature of brewing on a vertical axis and the duration of steeping on a horizontal access, the intersection of these two variables on a graph plays a huge role in the flavor profile and acidity resulting from a given bean. With over 800 identified flavor elements contained in a coffee bean, brewing variables can dramatically enhance the expression of its natural flavors.

With a background in engineering and human-machine interaction (MIT), user interface design (Tesla Motors) and product design (Apple), Jeremy decided to build a machine to empower baristas, and, in the future, consumers in their homes, to brew the most flavorful coffee possible. The machine is called Cafe1 (see sketch), and, with Matt leading technical development, Blossom is 6 weeks away from a working prototype. Jeremy also has some really exciting ideas regarding human interaction with the process and the role of internet connectivity.

True to the “visionary” stereotype of entrepreneurs, Jeremy sees big things for the future of coffee. The rapidly spreading trend of pour-over brewing is beginning to bring high-end coffee to the mainstream. In 5-10 years, Jeremy expects “coffee to be like wine. Everyone smells wine before drinking it, even if they don’t know what to smell for. And you would rarely drink wine out of a plastic cup. Instead it’s savored and revered. There’s no reason coffee can’t head in the same direction.”

Jeremy succeeded in getting me pretty excited about what he’s doing. After spending a few weeks in Guatemala studying coffee last year, I’ve seen first-hand the opportunity for smallholder coffee growers to improve their lives when the quality of their product is recognized and celebrated. By creating a tool for enhancing the flavor of high-quality beans, Blossom can play a pivotal role in the advancement and democratization of a massive global commodity trade.

Stay tuned for news of a launch party in the near future! And a follow-up post on the second company I learned about: Momentum Machines.

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Weekly digest: Sunday, February 26

Favorites from February:

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Nest Collective: Innovation in Consumer Packaged Goods

Today I had the pleasure of meeting Neil Grimmer, the Co-Founder and CEO of The Nest Collective: “the next generation consumer packaged goods company.” Neil spoke at the GSB this afternoon and I was also lucky enough to spend 30 minutes one-on-one with him. Both interactions left me incredibly excited about Nest itself and inspired about innovation opportunities in food.

On The Nest Collective
Let’s start with Nest. From their website, “the Nest Collective is a company of mission-driven consumer products brands focused on nourishing babies, toddlers, and kids with healthy, organic foods from the highchair to the lunchbox.” Over the past five years they’ve built two brands: Plum Organics and Revolution Foods. Going forward, they’ll be rolling all their products under the Plum brand.

Plum spouted pouch packaging

Besides their impressive integrity around ingredients (organic, non-GMO, minimally processed…), what stands out to me about Nest is their focus on and track record in innovation. Five years ago, they looked at baby food, saw a commoditized and stagnant category, and used human-centered design to create a meaningful, inspirational and fun customer experience that is 1) healthy for consumers (babies and kids) and 2) good for the environment. They pioneered the spouted pouch that has single-handedly revolutionized baby food packaging with an improved user experience and a strikingly smaller ecological footprint (compared with glass jars, their pouches use 1/9 the fossil fuels and have less than 1/14 the landfill impact), throwing a “retirement party for the glass jar.” Their focus on human-centered design (i.e., design based on the needs and experiences of the user) permeates the company. Their products and marketing are fresh and fun and meet the needs of “modern parents.” I love this campaign, called “Babies for Yum.”

Babies for Yum

Nest has experienced amazing growth, proving that this trend (i.e., parent demand for healthy baby/kid food) will continue. They’ve served over 30M organic baby meals to date, and they’ve experienced a CAGR of ~400% in revenue from 2008 to 2011, with ~$38M in revenue in 2011. Their growth and the competitive pressures they’re placing on their baby food peers have the potential to create huge impact on the health of the next generation. In an earlier post I described how influencing tastes and metabolism at an early age through healthy baby food can create lasting impact on a child’s health. To me, the Nest Collective exemplifies the innovative, impactful, responsible and mission-driven company ideal.

Plus I love their unpretentious, un-“granola” approach to marketing organics (see below). No need to confine a product this awesome to the Whole Foods elite.

On Innovation in CPG
Neil also provided some really interesting advice to me and my classmates about how to think about disrupting the packaged food world. There are over 30,000 products in the infamous middle aisles of a given grocery store (those aisles that are packed with packaged foods, i.e., not the produce, dairy, meat or seafood sections). He advised us to ask, for each of those products, are the incumbents providing solutions that are healthy, sustainable, and enjoyable? Probably not. There is tremendous opportunity to do to another category what Nest has done to baby/kid food.

In terms of prioritizing among these 30,000 categories, he recommended we as entrepreneurs look for points of consumer reflection. When in a person’s life is he or she taking a moment to reflect on lifestyle choices? At the birth of a baby is a natural answer. So is after an illness. And there are other important moments when consumers reflect on their eating. Think about the products these consumers are buying at pivotal moments and innovate there. As Neil said, when talking about addressing the glass jar baby food status quo, “we believe there is always a better way.”

Thanks Neil for an inspiring morning!

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