The grocery aisle is changing fast: premium and private label are pushing mid-tier brands aside, capital is tighter, and shoppers are trading down without thinking twice.
Alison Cayne, food founder, advisor, and sharp observer of food culture, breaks down the trends and tough calls that separate brands built to last from those that fade.
How is today’s food ecosystem and consumer behavior changing?
Growth is coming from private label and premium brands. That's why you're seeing big shake-ups at the huge CPG companies. Sounds great for founders... BUT, if you're building a premium brand, you either need to be a cultural signal (“I'm cool”) or a problem-solver (GLP-1, celiac, organic). If you’re neither, shoppers have other alternatives and are happy to trade down.
All of this is happening against a very catalytic backdrop of policy changes (MAHA, FDA), tighter capital (less venture money under $5M), and evolving consumer habits: digital-first discovery, convenience, wellness, values, economic "vibes."
What early decisions matter most?
Foundational ones. WHO are you serving? Tight target demo. WHAT is the need you are filling, and WHY are you better than the alternative?
It can't just be "tastes better and cuter packaging." You also need to get the pack size and price right. Nail positioning before design. Sequence sales and marketing channels carefully. Protect your cap table so you don’t lose control before you’ve proven velocity. And MARGINS!
What’s the key mindset shift from food to food business?
Delicious isn’t enough. Once you’re in retail, it’s about velocity, margin, promos, and servicing distributors and buyers as much as consumers.
Where should founders focus when modernizing or innovating?
Your people and what they expect/want from you. If you know your niche, you will understand when you need to be clearer in your packaging copy or reformulate something that clicks with them. It’s all about them. Founders can forget that. :)
What’s something you’ve learned that’s stood the test of time?
Unless you manufacturer or have a lock on IP or supply chain, you’re building a brand. People need to know why you make their lives better. If people don’t care, nothing else sticks. Get that right early and stay on message.
Alison Cayne is a food entrepreneur, author, and advisor helping the next wave of CPG founders turn bold ideas into lasting brands. She teaches food entrepreneurship at Columbia Business School and hosts In the Sauce, a podcast on building smarter food businesses (relaunching in October).
