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Fundraising · Food and beverage

5 questions investors ask food and beverage founders

Investors who back food and beverage companies ask a familiar set of questions. Here are the five that come up most, why they ask, and what a strong answer looks like on a slide.

Write my investor story freeSee the questions
INVESTORHow do you win shelf space?
THELAIn 320 stores · sell-through 2x category average
INVESTORWhat are your margins after distributors?
THELAGross margin 41% · 28% after distributor

The five questions

Each answer is shown for our fictional food and beverage company, Thela, which makes ready-to-drink masala chai. The numbers are illustrations. Swap in your own.

01

How do you win shelf space?

Why they askRetail shelves are crowded and expensive.
A strong answer showsSell-through data and retailer relationships.
THELA

In 320 stores · sell-through 2x category average

Sample slide line · illustrative numbers
02

What are your margins after distributors?

Why they askDistribution takes a big cut in food.
A strong answer showsMargin at each step, from factory to shelf.
THELA

Gross margin 41% · 28% after distributor

Sample slide line · illustrative numbers
03

How do you keep quality as you scale production?

Why they askQuality slips are deadly in food.
A strong answer showsCo-manufacturer, quality checks and certifications.
THELA

FSSAI licensed co-packer · batch testing every run

Sample slide line · illustrative numbers
04

Do customers buy again?

Why they askRepeat purchase is the real test of taste.
A strong answer showsRepeat rate from your own store and retailers.
THELA

36% repeat within 60 days online

Sample slide line · illustrative numbers
05

How much do you spend on trade marketing?

Why they askTrade spend can quietly eat profit.
A strong answer showsTrade spend as a share of revenue and its return.
THELA

Trade spend 9% of revenue · falling with velocity

Sample slide line · illustrative numbers

The four numbers they check first

Before the questions, investors scan for these. Show each one by month, with dates, so the trend is easy to read.

Metric 1Retail doors or outlets
Metric 2Sell-through rate
Metric 3Gross margin per unit
Metric 4Repeat purchase rate

The gap that costs food and beverage founders meetings

Gap

The most common gap in food and beverage decks is no photos of the actual product. Fix it before you send the deck.

Know your buyer

Your customers are shoppers, cafes or retailers who buy your food or drinks. Name the first group you will win, and show why they pick you today.

Prepare the appendix

  • Monthly metrics for the last 12 months
  • Unit economics by customer group
  • Your answer to each question above, with sources

Questions

What do investors look for in a food and beverage startup?

They start with these metrics: retail doors or outlets, sell-through rate, gross margin per unit, repeat purchase rate. Then they test the five questions on this page.

What is the most common gap in food and beverage pitch decks?

No photos of the actual product.

Are the numbers on this page real?

No. They are illustrations for a fictional company, Thela, to show what a strong answer looks like. Use your own numbers.

Can Astitva build my pitch deck?

Yes. Astitva writes your investor story from a short brief, in the order investors expect, and designs every slide in your brand. The written story is free.

More for food and beverage founders

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Answer them before they ask

Astitva writes your investor story from a short brief, in the order investors expect, then designs every slide in your brand.

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