Compound Foods, a San Francisco-based startup known for its “Minus” beanless coffee brand, is now venturing into the B2B space. The company has launched an ingredients platform offering cocoa, coffee, and chocolate alternatives aimed at manufacturers looking to “future-proof” their supply chains.
As ingredient prices rise and availability becomes less predictable, many companies are seeking ways to reduce their reliance on traditional ingredients, using alternatives to fill the gap. Maricel Saenz, the founder and CEO of Compound Foods, explained to AgFunderNews that the B2B move aligns with their long-term vision. “Large-scale transformation will always happen at the B2B level,” she said.
Originally, Saenz introduced her technology with a ready-to-drink (RTD) beanless cold brew in 7.5oz cans. Since then, the company has pivoted towards offering a powdered instant oatmilk latte, which is marketed as a protein-fortified, lower-caffeine product with added L-theanine.
While the company initially focused on the consumer market with the Minus brand, Saenz emphasized that their goal was always to enter the B2B sector. “We wanted to get feedback from consumers so that when talking to larger partners, we could demonstrate that we can produce high-quality products at scale and that consumers accept them,” she said.
However, the decision to shift focus also involved evaluating where to best allocate resources. Saenz noted that the RTD segment is challenging and highly competitive, leading them to reconsider whether to scale the consumer product in retail or use it as a “business card” to show potential B2B partners what a finished product could look like.
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