What's In Our Food — Not What's Missing From It

For decades, the food industry sold us subtraction. Fat-free. Sugar-free. Gluten-free. The shelves filled up with products defined by what had been taken out. That era is ending. The center of gravity in food has shifted from "free of" to "full of," and we believe it is one of the most investable consumer trends in the current landscape.

The Rise of Functional "Presence"

The shift is simple to describe and harder to execute. Consumers no longer just want to know what was removed; they want to know what was added—and they want it to do something. Whether it is prebiotics for gut health or adaptogens for stress, the question on the package is no longer "is this safe to eat?" It is "is this worth eating?"

Several forces are converging to drive this:

• The Ozempic Effect: A reset in caloric expectations; if a consumer eats less, every calorie must deliver more value.
• Quantified Health: Wearables and at-home testing have created a data-driven relationship with physiology.
• Regulatory Pressure: A bipartisan push against ultra-processed foods (UPFs) and synthetic dyes.

Case Study: Function as the Product

In our view, the clearest opportunities are brands where the functional ingredient is the core value proposition.

Portfolio Insight: Waku Waku enters the stagnant iced tea category not with sugar-water, but with an Andean herbal recipe featuring six grams of prebiotic fiber and zero added sugar. While incumbents sell 39g of sugar in a bottle, Waku wins on the label. This is why we have seen their strongest growth in the 35–64 female demographic—a cohort that prioritizes digestive function without sacrificing taste.

Case Study: The Seed Oil Reckoning

The "what's not in" side is equally disruptive, targeting the very ingredients the industrial food system depends on—specifically industrial seed oils.

Portfolio Insight: Ancient Crunch Their MASA chip uses only three ingredients: organic corn, 100% grass-fed beef tallow, and sea salt. It isn't a "health chip" that tastes like cardboard; it is a premium recreation of the original recipe using traditional fats. We view this as a "wedge" product. Once a consumer rejects seed oils in their chips, they inevitably begin looking for the same standard in their crackers, dressings, and snacks.

What This Means for Capital Allocation

As we evaluate this space for our Partners, we focus on three primary patterns:

1. Lower Acquisition Costs: Functional brands have a built-in "reason-to-believe."
2. Premium Pricing: Consumers are buying a health outcome, not a commodity.
3. The M&A Gap: Large strategics (PepsiCo, Kraft Heinz) are built on cheap ingredients. The gap between what they know they should do and what they can execute is where we believe the next decade of food M&A will be concentrated.

As of the date of this publication, Beckett Industries holds a financial interest in Waku and Ancient Crunch. A General Partner of Beckett Industries holds a financial interest in Poppi via an external entity. This mention does not constitute an endorsement by the GP or Beckett Industries.