Mastering Lean Strategies in Foodtech: Insights from Insa M. Mohr

Insa M. Mohr is the founder of Offbeast, a US-based startup specializing in plant-based steaks. With experience as a strategy consultant in BCG’s healthcare practice and as an associate director of strategy and innovation at Merck, Mohr also holds a pending patent for the manufacturing of plant-based whole cuts.

The views expressed in this article are the author’s own and do not necessarily represent those of AgFunderNews.

Disclosure: AgFunderNews’ parent company AgFunder is an investor in Offbeast.

During my time at Y Combinator, we received crucial advice: raise only the money you absolutely need. The mantra was “stay small and nimble” for as long as possible. Thus, I was surprised when a group partner shared a unique perspective with me as a foodtech founder:

“Foodtech companies need a lot of money.”

This statement left me feeling anxious, particularly in a climate where capital is shrinking. Like many founders, I was an avid reader of The Lean Startup by Eric Ries, a guide that emphasizes rapid testing and avoiding superfluous builds.

However, applying these principles effectively to the foodtech sector appeared daunting. Over time, I’ve gleaned valuable lessons on how to operate a lean foodtech company. Here are five effective strategies I recommend:

1 – Reduce the Cost of Consumer Tastings

Typically, external tastings can cost between $10,000 and $15,000 per session. As an early-stage company, this can be crippling. Instead, consider organizing small in-house consumer panels.

A group of ten or twenty taste-testers can provide insightful feedback. Once you outgrow that stage, look toward university food science departments, many of which offer consumer panels for non-profits at much lower costs. You can also partner with firms like Palate for on-site tastings that accommodate startup budgets.

2 – Go Direct to Consumer

Why pay for feedback when you can be compensated for it? Once your tastings yield favorable feedback, pivot to direct sales. Nothing compares to insights acquired from customers who pay for your products.

Don’t allow indecision about product readiness to hold you back; remember, the startup motto is: “If you’re not a little ashamed to charge for your early product, you launched too late.” Begin small by selling to your most enthusiastic customers.

3 – Implement Scrappy Packaging

Once you enter D2C sales, avoid the pitfall of investing in expensive packaging too soon. This can considerably delay commercialization. Focus on creating minimal viable packaging that you can easily iterate.

At Offbeast, we transitioned from costly shipping boxes to simple postcards that you can print quickly, allowing us to adapt our packaging based on real-time feedback.

4 – Invest in a Lean Product Cycle

When customer feedback necessitates product adjustments, it’s crucial to remain agile. Foodtech iteration is notoriously slow, but you can streamline it by delaying hardware development until your product is validated.

We adopted a “test dummy” model at Offbeast, allowing us to validate ideas without committing to manufacturing the complete product, thus shortening our development cycles drastically.

5 – Shift to Commercialization at ‘Good Enough’

As you find product-market fit, it’s important to redistribute your team’s focus from R&D to operations and commercialization. Even as you continue gathering feedback, the changes should be smaller and more manageable.

At Offbeast, we transitioned from a full R&D team to only half an employee dedicated to it, reallocating resources to business roles while still launching new products or variations regularly.

👉 Advice for Foodtech Founders: Sufficient resources could accelerate growth, but most foodtech entrepreneurs must navigate lean operations. Prioritizing cost-effective product improvements can extend your runway, helping you reach profitability or the next investment round.