But through working with the Good Food Programme – a fund supporting ten healthier challenger brands over two years – the two organisations are convinced it’s possible to develop products that are both healthy and affordable. Putting healthy food in the spotlight​ HFSS was working, and we believe the government should go full throttle on its initial intentions instead of dragging its heels on genuinely good legislation,” ​said Louis Bedwell, managing director and co-founder at Mission Ventures. The youth activist is calling for collaboration between industry players, notably manufacturers and retailers, to put ‘healthy food in the spotlight’. Ensuring healthy food is affordable​ Additionally, they had gut health benefits – thanks to the inclusion of a probiotic – and were a source of vitamin B12, said the brand. It follows the maiden investment of the Batch joint venture in biscuit producer The Artful Baker in February.

The situation is exacerbated by the current cost-of-living crisis. Rising input costs, coupled with rising inflation, means that consumers are finding it harder to access healthy food. But challenger brands have the potential to play a positive role here, Kelly believes. For starters, there is appetite for new brands amongst youths: “Young people want to see new brands,” ​he told delegates. “Consumers and young people like to try new things.”​ Interestingly, consumers are less fussed about which grains the brand is using, but absolutely do care about the nutritional benefits they offer, Shah revealed. Innovation beats reformulation​Further, young people no longer trust the ‘big brands’. “We’ve been lied to for so long,” ​said Kelly, suggesting that major manufacturers ‘bombard’ students with false health claims on social media. Its competitors, however, now find themselves in a position of having to reformulate to reduce fat, salt, and sugar levels, as well as overall calories, to comply with the UK’s laws. In October last year, rules limiting the location of unhealthy foods in shops came into play. When healthy food is available, and affordable, young people ‘naturally gravitate’ towards them, however, we were told. So how can healthier challenger brands keep their prices low?

I wanted to build a team that understood what it took to build a business from the ground up and so approached individuals who had successfully set-up and exited fmcg brands themselves and also had a real entrepreneurial spirit,” Shah added. Parrott, a former marketing director at Golden Wonder and Hain Daniels Group, is a co-founder of Insane Grain, and Stapleton, who set up New Covent Garden and Little Dish, is also an investor.

SHARING BAGS

Warburtons chairman Jonathan Warburton said the product quality, the founder and the brand all made Insane Grain stand out.

The investment is the second one made by the 50:50 joint venture with independent business accelerator Mission Ventures, which provided capital for Dorset-based specialist biscuit manufacturer, The Artful Baker Ltd in February.

Rewards For Life

There has also been export demand in the UAE, Kuwait, Singapore, Germany, Greece and Switzerland, with overseas sales to start in the fourth quarter of 2020. A major issue is affordability: as a general rule, healthier products tend to carry more expensive price tags. The start-ups will get intensive support, including help establishing new manufacturing partners, the reduction of costs and RSP, retailer partnerships and increased distribution. They will receive a place on a free 12-month accelerator programme and enjoy an intensive 12-week business review process that has a focus on consumer branding, cost model and sales strategy. Kelly is particularly concerned about the impact on young people. “The food industry isn’t set up for young people,” ​he stressed. “It should be easier to access nutritious food, but it isn’t.”​ People say healthy food is a choice. But in an ocean of junk food, you don’t really have a choice anymore.”​