Austin's CPG scene has been heating up for years. And, even with a pandemic causing delays in supply chains and complicating meetings, Austin has become one of the hottest CPG hubs in the nation, a panel of local CPG mentors said Wednesday.
"Checks are being written, and more importantly, and I think this is really exciting, there's actually new funds coming to town," Marc Nathan, publisher of Texas Squared Startup Newsletter, said during Austin Inno's State of Innovation virtual event.
Austin has developed its own brand name, and just being made in Austin can give local CPG companies a head start over similar companies in most other cities, he said.
But that doesn't mean it's easy. CPG startup founders have to find creative ways to reach out to potential investors and retailers, especially since most of their products, by nature, require sharing samples.
"I think to an investor, or somebody who's interested in your product or you are trying to court, you're going to want to send them your product anyway," said Michelle Breyer, COO of Austin-based CPG accelerator SKU. "You're going to want to make sure that you do some really interesting presentation to get in front of them."
CPG startups face big challenges, and many founders will have to tighten budgets and expand direct-to-consumer strategies since fewer people are shopping in stores. But panelists who work with local companies every day say that Austin is well-situated to navigate the pandemic and continue to generate exciting new CPG companies.
"Austin here has the uncanny ability to innovate especially under duress are under stress," said Emily Kealey, executive director of Naturally Austin. "I think that we actually get more creative and more innovative: just watching and listening to the panelist here and listening to our members... Nothing has slowed us down, but I think we will work smarter, not harder."
You can find dozens of other insights about the local CPG scene in the video below.
It begins with a bit about what Austin Inno does before moving on to a showcase featuring Austin-based CPG startups mmmpanadas, AMMA, Tandem, Sanara, Stroop Club and Yayaya Yaupon!. The panel discussion starts at the 28 minute mark.
Join Austin Inno at its next virtual event -- State of Innovation: The Future of Work -- on Aug. 27. Register here.
