Scaling Emerging Food & Beverage Brands: Three Priorities for Private Equity Firms
The food and beverage industries are growing rapidly, fueled by consumer demand for clean-label products, functional benefits, and innovative formats. This has created a wave of challenger brands, many with strong ideas and loyal followings. But turning an early-stage product into a scalable, profitable business is rarely straightforward.
For private equity firms backing these brands, value creation isn’t just about capital — it’s about bridging the gap between vision and execution. That’s where technical expertise makes the difference.
At Eurofins Product Development & Innovation, we work with startups and portfolio companies to bring rigor, scalability, and consumer insight to product development. Here are three key areas where PE firms can maximize portfolio performance:
Consolidate R&D for Efficiency
- Streamline redundant internal R&D teams
Reduce duplication by centralizing research efforts across business units. This enables better resource allocation, eliminates siloed workflows, and fosters cross-functional collaboration to accelerate product development.
- Gain flexible access to food scientists with expertise in emerging ingredients, packaging, and processing
Build a scalable R&D model by integrating external experts and consultants. Tap into specialized knowledge in areas like plant-based proteins, sustainable packaging, and novel preservation techniques to stay ahead of industry trends. - Ensure faster, more consistent innovation across brands
Create a unified innovation pipeline that supports multiple brands under one umbrella. Standardize processes and share learnings to reduce time-to-market and maintain a steady cadence of launches that meet evolving consumer expectations.
Optimize Products to Match Consumer Demand
- Improve taste, texture, nutrition, and shelf stability
Conduct sensory testing and reformulation to enhance product appeal while maintaining nutritional integrity. Use data-driven insights to fine-tune flavor profiles and extend shelf life without compromising quality. - Reformulate for clean-label and regulatory alignment
Audit ingredient lists to remove artificial additives and allergens. Align with global regulatory standards and consumer preferences for transparency, simplicity, and sustainability in food labeling.
- Add functional benefits like adaptogens, probiotics, or protein fortification
Infuse products with health-forward ingredients that support immunity, digestion, energy, and cognitive function. Position offerings as part of a holistic wellness lifestyle to attract health-conscious consumers.
Expand Offerings and Formats
- Launch line extensions and new formats to capture new audiences
Introduce variations in flavor, size, and use-case to appeal to different demographics and consumption occasions. Extend core products into adjacent categories to increase brand reach and relevance.
- Leverage trends in convenience (e.g., RTD to stick packs, frozen to shelf-stable)
Adapt formats to suit modern lifestyles—on-the-go, single-serve, and pantry-friendly options that reduce prep time and increase portability. Innovate packaging to enhance usability and reduce waste. - Build defensibility by diversifying revenue streams
Mitigate risk by expanding into new channels (e.g., e-commerce, foodservice, international markets) and developing products that serve multiple consumer needs. A broader portfolio strengthens brand resilience and long-term growth.
The takeaway: Post-investment, scaling an emerging brand requires more than capital. By partnering with technical experts in formulation, process development, and commercialization, PE firms can accelerate growth, improve margins, and strengthen portfolio resilience.
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