FPP Chicago Speaker Interview: Shannon Theobald, Founder, Foodtech Advising

Shannon Theobald is Founder of Foodtech Advising (you can probably guess what her business involves by its name!) and, as she explains below, in an industry that’s both relatively new and extremely complex, advisory skills such as hers are in great demand

When asked what prompted her interest in the food sector, Shannon Theobald recalls an amusing incident in her formative years that set her on the path to where she is today. “I became conscious of our food system when I was three years old, and my mom (jokingly) told me pepperoni was made from butterfly wings,” she explains. “She didn’t know it, but she changed my life that day! I’ve been passionate about altering the animal agriculture system ever since.”

Theobald’s path through the industry has involved a combination of corporate and startup work. “I got into the food-tech space around 2016 when I got the opportunity to write a book about what was changing in food… and quickly found out how much needs to change! I worked as a buyer at Walmart and later at Kroger, and covered many categories from snacks to beverages to proteins. After that I moved into corporate strategy and also began consulting to help food-tech startups scale to new markets and categories. The food-space matters to me so deeply because it’s something everyone on earth interacts with intimately every day. Food is vital to life on this earth – both sustaining our present and mitigating climate change for our future. To me, nothing could be more human.”

The panel discussion at The Future of Protein Production Chicago that Theobald is participating in is called, ‘From restaurant plates to supermarket shelves – breakout strategies and best practices to bring alternative protein products to market in 2024 and beyond’. So, what does she feel are the winning strategies here? “To start, you want to have a strong, data-backed vision of your ideal customer and where they engage – then pursue that niche hard to demonstrate traction and hopefully rapid adoption,” Theobald states. “For example, I’ve worked with clients who have had a lot of luck targeting bodegas in New York, focusing in on deli counter merchandising and nothing else for months before even approaching larger distributors. Wait until you can confidently say, ‘We’re routinely doing X volume with X% growth: here’s how we’ll make it happen for you, too.’ Establishing that base is vital.

“Of course, portfolio expansion will be on your mind,” Theobald notes. “I don’t need to tell you to deep dive customer data – but I may need to ask you to question its source. So, often I find folks cling to one stat – say, that consumers stated they’re willing to pay more for a sustainable option – without acknowledging the context in which consumers were studied. It’s important to do your own consumer testing to see first-hand how consumers react to your actual product, pricing, and positioning.”

The food-space matters to me so deeply because it’s something everyone on earth interacts with intimately every day. Food is vital to life on this earth – both sustaining our present and mitigating climate change for our future

Another thing that can help here is to learn lessons from previous generations of products, which Theobald feels is of great importance right now. “The perception of alt-protein products as ‘ultra-processed’ and filled with additives has absolutely hurt the space. However, something we don’t talk about as much is alt protein’s positioning as something so new and different and groundbreaking. We created a bubble. Instead, the next generation of alt-protein companies should focus on functional benefits and partnership development instead of novelty and IPOs.”

With that in mind, what advice would Theobald give to those about to begin their startup journey in the alternative protein sector? “Realize that you’re operating within a food system steeped in tradition,” she says simply. “We must understand the system to change it, and we must break it down bit by bit.”

On the consumer side, Theobald says she doesn’t think awareness is a problem at this point – most people know about plant-based and its benefits. “Easily removing perception barriers is the trick,” she feels. “Right now, we’re swinging between ‘ultra-processed’ and ‘tastes bad’ in the public perception. Our job is to highlight options that are health supporting and taste great. Using traditional ingredients and introducing people to new cuisines is way too overlooked in the alt-protein space. I’d love to see more options highlighting heritage foods and demonstrating that food doesn’t have to taste like a hamburger to be delicious. You’d be surprised how many people who love burgers are open to a great lentil dish.”

In terms of reaching those people, how can alternative protein companies realize new markets and distribution channels? “As far as distribution goes, there are really two choices – bring in an in-house sales team or work with a broker,” Theobald details. “The right choice depends on your goals. If you’re looking to target a retailer or channel in particular, bringing on a broker that has established relationships there can save you months of follow-up emails. If you’re going for a broader reach or looking to really own all touch points of your brand, in-house is a great choice.”

Theobald adds that partnerships are her go-to for new markets. “I like to approach potential partners with prepared data on how we can help them accomplish their goals faster (often climate objectives), so they have an incentive to market the partnership.”

And having partners on all sides – particularly in funding – who are in it for the long haul will be crucial to success. “It’s no surprise the capital landscape is tough right now, but this period will be vital to sustained alt protein consumption versus positioning it as a fad,” Theobald says. “Food isn’t tech, but so many shiny startups were valued like SaaS. We need leaders focused on long-term forces shaping consumer food choices instead of focused on the latest trends.”

Shannon will be taking part in a panel in at The Future of Protein Production Chicago called, ‘From restaurant plates to supermarket shelves – breakout strategies and best practices to bring alternative protein products to market in 2024 and beyond', which takes place at McCormick Place on 24/25 April 2024. Book your tickets today to come and hear a further +85 speakers, 30 presentations, eight panel discussions and network with +400 other attendees. Click here