When considering sales strategies for their products, there are two key channels every startup should consider: Business to Business (B2B) and Business to Consumer (B2C). Within the alternative protein industry both channels have proven to be viable though understanding the key differences between these two can inform strategy and influence where investment dollars are funneled – particularly in a company’s early days. 

B2B transactions are conducted between two companies, such as wholesalers or online retailers. These kinds of transactions typically have long sales cycles and involve multiple decision makers, sometimes an entire sales department. These orders often involve large quantities of product and happen infrequently, or on a regular cycle (i.e. once a quarter). Generally this is a relationship driven sales model where both companies involved are benefitting from the arrangement. 

B2C, on the contrary, is the process of selling directly to individual consumers and will likely involve many more sales of smaller quantities – for example the purchases of single items. The sales cycles in this model can be very short and buying decisions are typically made by one consumer, or consumer unit (i.e. a household), and are influenced by everyday realities like mood, weather, availability, and other consumers. These are typically product/service driven purchases and tend to involve company-to-consumer relationships less often. 

Companies which employ a B2B driven sales strategy should be able to provide large quantities of their product to fulfill single orders. Though may be able to invest less in a marketing department than a comparable B2C company as brand-identity tends to play less of a role in this sales model. 

Dealing directly with other businesses means that the supply chains in B2B models are often shorter with each party having comparable negotiating power. This can result in less demanding logistical work, depending on the complexity of the product requirements – frozen products, for example, requiring more specialized freight services than shelf-stable goods. 

B2C companies generally have a strong brand identity and must invest heavily in marketing to reach large numbers of potential buyers. While the supply chains in this model tend to be more complex–as numerous producers, wholesalers, and retailers are often involved–the business ultimately has greater negotiating power than in a B2B model and is able to develop strong guidelines around products and brand identity. 

B2C models currently dominate the food and beverage industry, though the B2B sector is growing rapidly and expected to make up 15-20% of the sales in this industry by 2025, 10x more than it did in 2016. Much of the growth in the B2B sector is ascribed to changing demand spurred by the pandemic, and the resulting disruptions to supply chains. 

In the alternative protein space, companies have proven the viability of both channel kinds. B2C companies like Alpha Foods and Barvecue are working effectively through a retail channel model, distributing their products through multiple brick and mortar storefronts as well as online to reach consumers. While others utilize B2B channels, like Artesa (formerly Nutriati) and recently Gathered Foods to reach broad customer bases with their unique products.