TechCrunch featured a story recently on Love with Food. This startup that ships consumers a box of snacks each month just received another $1.4 Million in funding — bringing total funding to just over $2 Million.
Love with Food is a simple concept with a new kind of business model — we’ll call it a multi-beneficiary business model, and it’s worth looking at this model for reapplication across any number of businesses.
Unlike many other consumer models, where there is a clear end user, who receives the majority of the benefit, the Love with Food model has three solid beneficiaries — despite the fact that it’s a direct to consumer shipment of snacks with no retailer involvement.
The three beneficiaries of the Love with Food Model are:
1. Consumer: Clearly, the consumer is a key beneficiary for Love with Food. Consumers receive a new selection of snacks each month, and can learn about and purchase those snacks by visiting Love with Food’s website. A convenient and trusted way to try new snacks.
2. Cause: The second beneficiary of the Love with Food model is the cause — US Childhood Hunger. Cause orientation is clearly more than a trend, and has been built in from the beginning of Love with Food’s model.
3. Client: Finally, Love with Food has another revenue engine woven into their model. Clients like General Mills and Nestle can quickly get feedback on new products since Love with Food can share directly with manufacturers how consumers are reacting to their new snack samples — a service they provide. Interestingly, TechCrunch quotes this service may be the bigger money maker within the business model for Love with Food.
In any business or industry, considering a multi-beneficiary business model is a new avenue to growth.
Image credit: TechCrunch
The Garage Group teaches and enables corporate teams to innovate like startups. Our approach to Ideation stretches teams to consider new business models as a way to optimize innovation results. Contact us for more information or to discuss your innovation challenge.