CPGs in search of long-term success reasonably than fast wins ought to floor innovation in knowledge and macro conduct change reasonably than novelty, in line with traders who spoke at Startup CPG’s Founders & Funders occasion in New York Metropolis.
The dialog centered on one query: How do you establish a long-lasting product thought, and what is going to really matter to VCs in 2026?
The reply, repeatedly, got here right down to sturdiness, adaptability, knowledge and macro conduct change – not novelty.
Protein as proof of a sturdy development
Protein is a transparent instance of a long-term shopper shift reasonably than a passing fad, in line with Jon Sebastiani, founding associate, Sonoma Manufacturers Capital.
“Protein, as everyone knows, is in full blossom as a development,” he stated. “Possibly 20 years in the past, it was coming into this fad territory. It’s laborious to at all times inform when one thing strikes in its early innings.”
He tied that evolution on to his personal investing journey, from Krave Jerky to Oats In a single day. Sebastiani bought Krave to Hershey in 2015 and later purchased it again below his firm Sonoma Manufacturers in 2020. Sonoma Manufacturers continued its protein push in 2024 as an investor of Oats In a single day, “which is now taking protein into breakfast that may be very handy and consumer pleasant and fulfilling,” Sebastiani famous.
For Sebastiani, protein represents what a viable development seems like: Lengthy-term shopper conduct change with a number of functions and codecs, not a single-claim product.
“Protein is that this simply excellent instance of a really large groundswell development,” he added.
Fast-fire: What traders see as traits in 2026
Prebiotics and microbiome well being? Pattern.
Each Kur and Amos agreed on prebiotics persevering with its relevance for shoppers’ well being priorities. But, the information hole on intestine well being has but to shut for shoppers, in line with analysis, underscoring a white area for manufacturers to coach their audiences on the advantages of various biotics.
Plant-based? Pattern.
Between vegan and vegetarian life, local weather impacts and the well being halo of plant-based diets, the class stays rooted as one with promise, in line with the panelists.
GLP-1 pleasant merchandise? Pattern.
GLP-1 labeling and positioning is a fad, however not as a result of GLP-1 medication themselves are going away, however as a result of GLP-1 use goes to turn into so widespread that it received’t want particular labeling anymore, Amos stated. Sebastiani emphasised that GLP-1 merchandise are right here to remain, citing the “advantages are so widespread past weight reduction.”
Sturdiness over novelty: How VCs outline ‘actual’ traits
For rising manufacturers, filtering out traits from fads relies on sturdiness and adaptableness, not buzz, in line with Julianne Kur, principal, Alliance Shopper Development.
“How is that shopper conduct change? What’s driving it? What do we predict occurred to drive it? How sturdy is that change?” she stated.
She added that manufacturers constructed on slim hooks battle long run.
“We wish to associate with a model that may actually be adaptable past an ingredient, past a single declare, past what could be a tremendous approach to purchase some prospects right this moment, however probably not the definition of a model in these form of long run, 10–20 years out.”
Whereas single-claim innovation might drive short-term consideration, VCs are underwriting model platforms, not product traits, Kur defined.
Non-alcoholic beer as a case examine in long-term class constructing
Kur pointed to non-alcoholic beer model Athletic Brewing Co. for instance of Alliance Shopper Development’s funding within the model that was pushed by macro tailwinds, not hype cycles.
“We appeared to extra developed alcohol markets,” like Western Europe, “the place non-alcoholic beers [are] excessive single digits, mid double digits within the beer market,” Kur defined.
The thesis wasn’t trendiness, it was structural class growth.
“A number of it got here right down to product availability,” Kur stated. “Athletic actually was providing product that was not asking shoppers to compromise product.”
She additionally emphasised ecosystem tailwinds, the place Athletic launched at a time when alcohol large Heineken was investing in the identical class, which helped “the US shopper recover from the hump,” and introducing the “apparent good thing about tailwinds round shoppers prioritizing their well being and wellness.”
The non-alcoholic beer class wasn’t constructed on a declare, it was constructed on cultural, social and well being conduct shifts already in movement.
Early-stage investing: Seismic traits vs cultural moments
Manufacturers ought to establish traits by way of macro conduct change, not shopper novelty, defined Amanda Amos, investor, Collaborative Fund.
Collaborative Fund was an early investor in premium pet food model Farmers Canine which captured the “humanization of pets” and “how folks take into consideration their pets as youngsters,” she stated.
Amos additionally pointed to prebiotic soda Olipop, during which Collaborative invested in 2020, for instance of class enlargement. The model faucets into the large current soda market, however introduced in new shoppers who love soda flavors and wish much less sugar, are contemplating intestine well being, and interested by how fiber matches into their life-style, Amos famous.
“What feels extra seismic and rooted inside the bigger macro atmosphere, and what appears like perhaps a short-term response or a straightforward repair or one thing that’s inside the cultural zeitgeist,” she stated.
Ingredient-led manufacturers and the issue with fad constructing
Amos additionally warned towards overly slim ingredient positioning, citing for instance charcoal’s emergence in 2010 as a preferred ‘detox’ ingredient in drinks and toothpaste.
Many fads are based mostly “on ingredient-led manufacturers or ingredient-led extensions.”
Charcoal’s positioning as a detoxifying ingredient throughout meals and private care merchandise was “one thing that’s so particular to a time and a spot,” Amos stated.
The viral ingredient may have been a “enjoyable extension or place to begin,” however didn’t have a long-term trajectory to vary the way in which shoppers reside, she added.
How manufacturers show they’re constructed on traits, not fads
From the VC perspective, proof comes from knowledge, loyalty and repeat conduct.
“The straightforward reply is knowledge,” Sebastiani stated. “Addressing a market alternative, the dimensions of the market relative to your aggressive set.”
He additionally emphasised utilization event disruption, citing the Japanese barbecue sauce model Bachan’s.
“The world didn’t want one other barbecue sauce. But, the model positioned itself into this utilization event disruption,” by eradicating the phrase ‘barbecue’ and increasing its use into different meals like “scrambled eggs, steamed greens, sushi and grilling,” he stated.
The end result: a $100 million condiment enterprise, Sebastiani emphasised.
Kur strengthened the significance of loyalty and pipeline depth.
Startups ought to focus “past a selected ingredient to point out repeat and loyalty,” whereas guaranteeing a secure product pipeline, she stated.
She added: “In the end, your prospects don’t lie. They select and show their conviction with their {dollars} and with their share of pockets.”
