Hungry For Growth: Investment in the Food Space

Union Kitchen is a food and beverage business accelerator based in Washington, D.C. Founded in 2012, we have helped launch over 350 businesses including 70 with storefronts and 15 national products. We host an investor day for members, which resulted in $13 million of investments at the latest iteration.

Working with so many small-scale food and beverage businesses, we’ve found that food and beverage investing is a unique market, outside of the purview of traditional venture capital and private equity firms. In a consolidated industry made up of a few large players, established brands are increasingly looking to acquire smaller food businesses to tap into new markets, rather than invest heavily in internal Research & Development. These conditions lead to vibrant Mergers & Acquisition activity and strong opportunities for institutional investors interested in new and emerging brands.

Many high-potential companies are unable to reach the next level due to lack of investment, or are acquired early due to their inability to achieve scale. As the industry continues to consolidate and larger brands acquire rather than innovate, there will be increased activity and increasing opportunity for investors to help emerging brands reach scale and achieve meaningful exits.

Learn more about the investment opportunity in the food space here.

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