A big, wonderful article in today’s NY Times Business section on droves of venture capitalists throwing money at start-up food businesses. The good news is that people without money will get money to buy pretty things. The bad news is that people with the money will, of course, introduce business models to create products that will generate more profit. Nothing wrong with that, in concept, but pragmatically what will happen is the continuation of brands and words to market when these brands and words do not mean what they say they mean.
Like “probiotics,” which is a word banned in the E.U. in marketing when said to create healthier results. Dannon lost a $20 million+ suit in California for making this claim.
More broadly, you’ll see an ongoing erosion of rights and authority of the people who make low wages to create these “healthier” products. Take China. Please.
While here in the U.S., you’ll see more of, “conscious capitalism,” as espoused by union buster John McKay, CEO of Whole Foods. All that means is the guy with the most money in the room has halfway decent views of gender rights and environmental protection. Hardly an ideology.
A better bet would be for start-up’s to start small and build their own niche markets. Once you let the venture capitalist in you lose control. Guaranteed.