Nosh Live 2024 Replay: Financing Cycles and Food Brands

It’s been a lean few years on the funding front – but it’s not the first time. By examining previous boom and bust periods, entrepreneurs can gain a clearer understanding of what to expect now and how to build a durable, sustainable business for the long term.

At Nosh Live Winter 2024, Rodney Clark, co-founder and managing partner at Aspect Consumer Partners, walked attendees through the past quarter-century of financing cycles – specifically, the dot-com bust (1999-2001), the great financial crisis (2007-2009), and the pandemic (2020-2022) – drawing on his perspective as one of the first investment bankers to understand the fundamental changes taking place within the food and beverage industry as consumers became interested in health and sustainability.

Clark has analyzed heaps of data to provide insights on how to operate in the best and worst conditions – “Is there anything we can learn from past cycles that is instructive to brands and businesses as they seek to grow, expand and thrive?”

Clark also noted the average time span for food and beverage businesses from inception to a major liquidity event is at least nine years and likely 11 years or more, so any given company is likely to hit at least one “bust” period.

“You’re going to hit some period where you can’t get financing or all the terms are going against you. It’s going to be nasty out there, and you should be prepared for it,” Clark said.

In this video, he shares advice for navigating a financial bust, with examples of food companies that have successfully weathered storms to achieve successful exits.