Page 15 - INC Magazine-November 2018

from concept to market in 28 weeks, he says, “faster than
we’ve ever developed almost anything.” A couple of years ago,
he says, “it would have taken us two years.”
One day this spring, the couple brought a bunch of General
Mills brass out to the ranch for Epic’s first-ever Impact Summit,
an attempt to rally other brands within the conglomerate to
cooperate on sustainability goals. They walked around testing
soil health and examined the effect of chickens’ pecking
and pooping on grass growth. They slaughtered some birds
for dinner and finally got around to talking about business.
An Annie’s executive discussed a partnership it had devel-
oped with a farm in Montana to create a line of organic mac
and cheese with ingredients from regenerative agriculture. How Austin
When the farm isn’t growing corn and wheat, it plants cover
crops and rotates cattle. Became a Food
Collins spoke up: “Hey, guys, don’t you know a company
that uses beef? Can we expand this partnership [to Epic]?” Startup Hub
Then someone from Cascadian Farm added: “Their cover
crops are oats, and they don’t know what to do with them—
but we need oats!”
THE WHOLE FOODS EFFECT Bath Company graduated
Similarly, General Mills recently purchased Blue Buffalo, a The Austin-based natural- from SKU, as did Epic. The next
natural dog food company, and Collins sees that as an oppor- foods giant has long been a big hit: Siete Family Foods, a
launch pad for local startups, maker of grain-free tortillas
tunity to revitalize Epic’s Whole Animal Project, in a new which often start out with shelf and tortilla chips.
way. “With the eggs we’re using now, we use only the whites,” space in a single region and
he explains, “but can Blue Buffalo use the pastured egg yolks? then expand nationally. The THE FUNDING
I see us being 85 percent animal utilization in bison, beef, Whole Foods Local Producer As more CPG hits have
Loan Program, which started emerged from Austin,
venison, and turkey over the next year. What we don’t use,
more than a decade ago, has the network of investors looking
committed to $25 million in to grow such companies has
funding for upstarts around the increased. Foremost among
“Their style is extremely country. In Austin specifically, them is Cavu Venture Partners,
an early- to midstage-growth
“you can’t overestimate the
direct. For people who impact of Whole Foods’ being venture capital firm co-founded
here,” says Adam Grossman,
by Clayton Christopher, a
aren’t used to that, they the founder of personal-care veteran food entrepreneur who
brand the Seaweed Bath Co.
created and sold both Sweet
can come off as caustic “It’s the talent, the access Leaf Tea and Deep Eddy Vodka.
to people in the company, the
Cavu’s portfolio includes
and obnoxious.” trends they see.” Waterloo Sparkling Water and
High Brew Coffee—as well
THE PLAYBOOK non-Austin breakout brands
“There’s more to selling food such as Bai and Bulletproof.
now than fat, calories, and
[Blue Buffalo] might be able to use.” Epic’s goals suddenly taste,” says Brian Goldberg, THE ACQUISITION PIPELINE
a serial food entrepreneur Big food companies have been
seem more achievable than ever, not despite but because whose Austin-based company, on an acquisition spree in
of General Mills. Amplify Snack Brands—maker recent years, and because of
The couple have started spending every weekend on their of SkinnyPop popcorn—was deals like Epic’s acquisition by
new ranch, and they intend to turn it into a profitable business. recently acquired by Hershey for General Mills, Christopher’s
$1.6 billion. “Consumers now, successes (selling to Nestlé
Watching them bond with their herd of bison or marvel at the Millennials and younger, the and Heaven Hill), and Her-
effects of chicken scratch, it’s easy to imagine them opting stuff they are looking for is more shey’s acquisition of Amplify,
eventually for a full-time life on the range. And yet, Collins authentic brands, not what the Austin has become a happy
says, “that’s not going to happen any time soon.” It’s likely their big guys make. They want hunting ground. “Over the past
better-for-you products with 10 to 15 years, a lot of these
roles at Epic will evolve after their three-year commitment transparent, simple ingredients. billion-dollar brands like Coke,
ends, and they’ll relinquish some day-to-day management. But They want to know there weren’t, Pepsi, Doritos, and Budweiser
their new working relationship with General Mills presents like, kids making it in Peru.” have been dying a slow profit-
too much opportunity for them not to pursue it relentlessly, able death” because of chang-
THE MENTORSHIP ing consumer tastes, says
like entrepreneurs, for the foreseeable future. The nation’s first CPG accelera- Christopher. “And yet the food
The relationship with General Mills, Collins says, is “kind tor, SKU, was born in Austin and and beverage industry spends
of like an arranged marriage.” Unlike the love that led to his provides entrepreneurs with 12 less on R&D than pretty
and Forrest’s marriage, this kind of love had to be learned. weeks of coaching in everything much any other industry. It’s
from branding to supply chain safer to use entrepreneurs as
to distribution. The Seaweed an innovation pipeline.”
TOM FOSTER is an Inc. editor-at-large. ISTOCK

3 8 ● I N C . ● N O V E M B E R 2 0 1 8 ● ● ● ● ● ●