There are multiple challenges along the way for start-ups in green business building. More customers are using—and are willing to pay a premium for—goods and services that are made in a sustainable way, and more and more businesses and investors are making sustainability a key business priority. However, price is still one of the top reasons holding customers back from adopting and purchasing sustainable goods and services. Vertically integrated business models and strategic partnerships can help companies flatten the green premium.
Address the key risks
Tackle the challenges head-on
People say plant-based products are expensive, but that’s a misconception ....”
Initially, customers in China weren’t prepared to pay for sustainability ....”
Ensuring low costs is vital for the sustainable expansion of the industry ....”
CEO and cofounder, TiNDLE
Andre Menezes
Chief strategist, TurtleTree
Max Rye
People say plant-based products are expensive, but that’s a misconception. It’s an issue of time and scale. Plant-based meats are still in the investing and developing stages. There will be a green premium if you’re investing in the technology and capital expenditures. But after that portion is over, it doesn’t mean they’re more expensive to produce. The moment you have a vertically integrated model like top companies in the meat industry, you can run more efficiently and buy materials cheaply. You’ll be running at equal capacity. To me, that’s the question: How quickly can the category as a whole get an equal setup?”
—Andre Menezes, CEO and cofounder, TiNDLE
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Jesper Jos Olsson
CEO and founding partner, White Peak Real Estate
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Initially, customers in China weren’t prepared to pay for sustainability. And although we were data driven, we didn’t analyze whether people agreed with our values, because we basically decided people should want green because, long term, that’s where we’re heading.”
—Jesper Jos Olsson, CEO and founding partner, White Peak Real Estate
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Ensuring low costs is vital for the sustainable expansion of the industry. Currently, the costs of cell culture make up 55 to 95 percent of cell-based meat and dairy products. That’s why we’re working quickly to commercialize the growth factors that support cell growth. This will be a game changer in enabling cell-based meat companies to accelerate their cost-reduction progress in the next five years.”
—Max Rye, chief strategist, TurtleTree
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