Investing at the Intersection Of Agriculture & CPG

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When seeking investment, brands should pursue partners with aligned goals and values; for a mission-focused brand an impact investor might be ideal. In a presentation at NOSH Live Winter 2019, Tyler Mayoras, co-manager of the Food & Agribusiness Fund at Advantage Capital Partners, discussed investing in consumer packaged goods (CPG) brands that cross with agriculture. Though Mayoras’ 25-year-old investment firm focuses on brands in rural areas, he noted key criteria for all brands includes strong management — the biggest challenge for emerging brands — a sustainable and clean-label ethos, and flexibility.

“Every brand has pivoted at some point,” Mayoras said. “It’s not a straight line to success.”

The profit-focused fund seeks companies with Series A funding and beyond, at around $4-5 million in revenue, Mayoras noted, citing gut health brand Farmhouse Culture as a brand that sticks firmly to its mission and exemplifies quality leadership and growth. (The fund’s most recent investment in the brand was last year.) He further noted that better-for-you brands are where he expects to see the most growth -- but that brands should prioritize ROI and employ a sensible distribution approach.

“Just getting doors isn’t necessarily a win,” Mayoras said. “You really need to see that the product is actually moving at the doors you have, and you’re continuing to grow from a regional area to a national area.”