In the not-so-distant past, building a brand was a labor of love, patience, and grit. Entrepreneurs spent years—sometimes decades—nurturing their products, connecting with consumers, and earning loyalty. Success was measured not by flashy valuations or press releases but by sustainable growth, profitability, and the strength of customer relationships. Somewhere along the way, we lost this ethos. Today’s startups, particularly in the food and beverage industry, seem to be racing toward the next funding round or acquisition, often neglecting the fundamentals of brand building—and worse, forgetting the simple but critical factor of taste.

Let’s unpack where we went wrong.

The Rise of Tooling Over Building

Modern startups have access to an unprecedented array of tools: social media platforms, e-commerce solutions, analytics dashboards, and automation systems. These tools are powerful, no doubt. But they’ve also created a dangerous distraction.

Instead of focusing on the slow, methodical process of building a brand, many entrepreneurs get caught in the shiny-object syndrome of tooling. They spend more time optimizing ad campaigns, tweaking websites, and analyzing data than actually connecting with their audience. Tools are just that—tools. They should amplify a well-thought-out strategy, not replace it.

When the obsession with tooling overtakes the core principles of storytelling, authenticity, and value creation, startups risk building something that looks good on the surface but lacks substance underneath. Brands like KIND Snacks, which focused on honest ingredients and real connections with consumers, grew organically before becoming household names. They didn’t over-rely on tools but instead built trust through authenticity and consistent quality.

The Exit-Driven Mindset

Venture capital has undoubtedly fueled innovation, but it has also changed the game. For many startups, the goal isn’t to create a sustainable, profitable business—it’s to build something that looks good enough to sell. This “exit-driven mindset” prioritizes short-term growth hacks over long-term strategies.

Consider the success of brands like RXBAR, which created simple, clean-label protein bars with strong margins and a focus on building consumer trust. Their straightforward approach ultimately led to a $600 million acquisition by Kellogg’s. Compare that to brands that focus solely on scaling fast for an exit, burning through capital and losing consumer trust when shortcuts are taken. The result? Brands that burn bright and fizzle out just as quickly.

A truly great brand doesn’t just aim for an exit—it aims for enduring relevance and profitability. Yet today’s obsession with exits means we’re building startups that sprint toward the finish line without preparing for the marathon ahead.

Liquid Death: A Case Study in Marketing Over Margins

Consider Liquid Death, the canned water brand that has captivated consumers with its irreverent branding and edgy marketing. The company raised nearly $200 million and became a cultural phenomenon by selling a simple product—water—in an audacious way. Liquid Death’s marketing success cannot be denied—it brilliantly leveraged humor, sustainability, and a countercultural ethos.

However, look under the hood, and a different picture emerges: very slim margins and a business model heavily reliant on massive funding to fuel growth. Is this the future of the food and beverage industry? A model where sky-high valuations and unsustainable margins are the norm? We don’t think so.

While Liquid Death’s marketing is a masterclass, it highlights a deeper problem. Startups are often too focused on the buzz to pay attention to margins and sustainable growth. Long-term success requires more than clever campaigns and viral moments—it requires a commitment to profitability and a product that delivers on value and taste.

Forgetting the Basics: Taste Trumps Everything

One of the most troubling trends in food and beverage startups today is the obsession with function over flavor. It seems like every new product on the market is touting its health benefits, its functionality, or its trendy ingredients—while completely overlooking taste.

Consider these real-world examples:
• Hint Water has built a loyal following by offering flavored water without sweeteners or artificial ingredients, but even its founder, Kara Goldin, emphasizes that flavor is non-negotiable. Consumers come for the simplicity, but they stay because it tastes great.
• LaCroix might have ridden the sparkling water trend to success, but its competitors, like Spindrift, differentiated themselves by focusing on better, fresher taste using real fruit juice.
• On the other hand, Soylent, a pioneer in meal-replacement beverages, initially focused on function and convenience. While the brand gained a niche following, its limited focus on taste kept it from achieving broader mainstream appeal.
• Oatly, while celebrated for its plant-based functionality, gained massive traction because its product doesn’t just work as a dairy alternative—it tastes good. This allowed it to succeed where many early plant-based milks failed.
• Ben & Jerry’s built a global empire by focusing on indulgence and unique flavors that delighted consumers. While they’ve expanded into areas like non-dairy products, their commitment to taste remains their cornerstone.

Taste isn’t just an afterthought—it’s the foundation of brand loyalty. For every consumer looking for the next turmeric-infused drink or adaptogen snack, there are ten who just want something that tastes amazing. Startups chasing the functional trend risk alienating mainstream consumers—and losing the opportunity to build broad appeal.

Where’s the Margin?

Another casualty of this new approach is margin. In the rush to scale, many startups offer heavy discounts, promotions, and razor-thin pricing strategies to win market share. But without healthy margins, there’s no room for reinvestment in product development, marketing, or customer service.

Historically, the best brands—those that stood the test of time—focused on delivering value at a fair price. They built trust and loyalty, which allowed them to charge a premium and maintain strong margins. Today, many startups sacrifice margin for volume, hoping that sheer scale will compensate. More often than not, it doesn’t.

The Case for Building Slowly

Building a brand slowly may sound old-fashioned, but it’s exactly what today’s startups need to rediscover. Here’s why:
1. Authenticity Takes Time: Building a relationship with your audience is like any other relationship—it requires trust, consistency, and effort over time. No tool or shortcut can replace this.
2. Profitability Over Growth: A sustainable brand focuses on profitability from day one. Healthy margins provide the resources to invest in innovation, customer experience, and resilience during downturns.
3. Resilience to Trends: Brands built for the long haul can weather the ups and downs of market trends. They don’t chase fads but focus on timeless value.
4. Customer Loyalty: The best brands don’t just sell products; they create communities. Loyal customers become advocates, driving organic growth that no amount of ad spend can replicate.
5. Taste Builds Loyalty: No matter how well you market your product, no matter how functional or trendy it is, the product needs to taste good. Flavor is the emotional connection between the consumer and the product—it’s what keeps them coming back.

Getting Back on Track

To reclaim the art of brand building, startups must shift their focus:
• Start with the Customer: Before you think about tooling or growth, understand your audience. What do they need? What problem are you solving for them? Build from there.
• Make Taste a Priority: No functional benefit can overcome a poor flavor profile. Invest in R&D to ensure your product is both functional and delicious.
• Prioritize Profitability: Healthy margins aren’t a luxury—they’re a necessity. Resist the temptation to underprice or over-discount your product for short-term gains.
• Invest in Storytelling: A great brand tells a compelling story that resonates with its audience. This is the foundation of loyalty and long-term success.
• Be Patient: Rome wasn’t built in a day, and neither are great brands. Accept that success takes time and embrace the journey.

Final Thoughts

The obsession with tooling, exits, and functionality has pulled startups away from the core principles of brand building. But it’s not too late to course-correct. By focusing on authenticity, profitability, taste, and patience, today’s entrepreneurs can create brands that not only succeed but endure.

Look to brands like Ben & Jerry’s, RXBAR, Red Bull, Hint Water, and Harmless Harvest, which have achieved success not just through innovation but by creating products that taste great and connect emotionally with their audience. Liquid Death may have succeeded through marketing, but its reliance on massive funding and slim margins raises the question: is that sustainable? We don’t think so.

It’s time to shift the narrative—back to building, back to margins, and back to flavor. The question isn’t, “How quickly can we sell?” but, “How well can we build—and how good does it taste?” After all, the best brands don’t just function. They delight.

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