Welcome to YODL! In addition to daily original content, YODL helps CFIN Members find new partners, resources, and funding opportunities to grow their food business. Learn more about this growing community and become a CFIN Member (for free!) today.
In addition to being CFIN’s Regional Innovation Director for BC and Yukon, Lavina Gully is a food scientist and product developer with almost two decades of experience helping food and beverage companies innovate. In this series, Lavina answers questions from CFIN members on everything from product development, R&D, manufacturing best practices, and co-packing – just to name a few!
To kick off the series, Lavina answers questions about sourcing new supply partners, the basics of applying for funding, and labelling approvals from the CFIA.
Q: I’m currently looking for a new supply partner. What are your best business practices when it comes to finding and working with a new ingredient or equipment supplier?
A: The success of your business is often closely tied to the reliability and quality of your suppliers, so investing time and effort in the sourcing process is crucial. There are several aspects that should be considered when undertaking this process. A good place to start is by defining your requirements in terms of product needs, standards, quantity and deliver specifications. Based on those needs you’ll then be able to conduct the research and proper due diligence required to choose a potential supplier. To help narrow down the field, look at a company’s reputation in the industry, and review client testimonials or references.
Once you have pinpointed the supplier you are hoping to work with, it’s time to look at specifics. Quality assurance should be a priority, and ensure that potential suppliers meet or exceed your quality standards. Request samples and visit their facilities if possible for more insight into their operation, and ask about their quality control processes. It’s also crucial to evaluate the supplier’s communication and responsiveness – a supplier which is prompt, transparent and open to communication can help address issues more effectively. You will also want to verify that potential partners comply with all relevant regulations and standards. And if sustainability is a priority for your business, inquire about the supplier’s sustainability practices for sourcing, waste management, and environmental initiatives.
Other considerations include a cost analysis (including overall value, quality and any additional support services offered by the supplier), the supplier’s financial stability, its ability to scale with your business, and its flexibility in accommodating changes in order volume, specifications, or delivery schedules. You’ll then need to develop clear and comprehensive contractual agreements that outline terms, conditions, pricing, delivery schedules, and any other relevant details. Finally, all supplier partnerships require regular monitoring and ongoing performance assessments to ensure they continue to meet your standards and expectations. You may also want to consider having alternative suppliers in case of unexpected disruptions with your primary supplier.
Q: We’re a foodtech startup that requires financial investment to grow, but the process of applying for funding seems overwhelming. Do you have any tips on what the process involves?
A: Applying for grant funding can be a complex process, but careful planning and attention to detail can increase your chances of success. Start by identifying grant opportunities that align with your company or project and ensure that you fully understand the eligibility criteria. If you don’t meet the criteria, don’t bother investing time in the application. It’s important at this point to have a clear project concept that you will be able to outline on grant applications. Define the problem the initiative will address, your objectives, and the expected outcomes – a well-defined concept is essential for demonstrating the potential impact of your work. It’s also essential to establish measurable objectives for your project concept using quantifiable metrics, which will allow funding agencies to assess the potential impact of their investment.
Each grant application is unique, so tailor your approach to the specific requirements of each opportunity. Pay close attention to the application instructions to ensure you’ve followed any specific format or length requirements, and that you have included all the required documents. That may include a detailed budget showing how the funds will be used, and supporting documents such as financial statements, resumes of key personnel, letters of recommendation, and letters from the community or stakeholders. Lastly, submit your application on time in order to avoid any technical issues or last-minute complications. Late submissions are usually not accepted. If you receive the grant, track the progress of your project and be prepared to provide regular reports to the grantor. Remember that competition for grants can be fierce, so putting in the effort to create a well-crafted, compelling application is a must.
Q: We currently sell our food products at our store, but are hoping to begin selling at other retailers. Do I need to submit the label for approval to the CFIA before selling the product?