Shocken Foods
Emma and Peter’s first venture in 2011 was an award-winning restaurant in Dublin, Ireland, where their most famous dish was a “gray squirrel.” Emma came from a four-generation lineage of women in the food business, with her great-grandmother setting up a family business back when women had no right to vote. Peter was an investor with some corporate background but limited knowledge of the food industry. Like most restaurateurs, they focused on perfecting their food and creating a buzz to attract customers and achieve profitability. Despite critical acclaim, the profit was disappointing, so when the lease ended, they decided it was time to move on. Emma traveled the world to work with the best chefs from the San Pellegrino list in Michelin kitchens to perfect her craftsmanship in food. Peter took some time off to decompress after working 16 hours per day for the past three years.
Peter and Emma soon launched their second venture, a gourmet catering company in London focusing on high-end office lunches for blue-chip companies like Meta, Google, Amazon, and Airbnb. This was an improvement on their previous business model, with lower labor costs, no wait staff, and higher scalability. However, even then the importance of IP was not on their minds. Then the pandemic occurred, and their catering business collapsed, literally, overnight. The country was in lockdown, gatherings were outlawed, and the world entered an era of remote work.
This was a dark time for Shocken. However, while working with giant corporations, Peter and Emma were exposed to the latest trends in food and were always being asked for innovative dishes, particularly vegan dishes. This spurred an idea to launch a brand that would be somewhat “pandemic-proof”: a vegan meat manufacturer, producing alternative protein for home delivery. Now they entered an arena where IP would really make a difference. But Shocken just didn’t know that yet. Their original brand was called “Veganly Deli,” and as the name suggests, they were making vegan deli products. Peter and Emma thought this was absolutely brilliant—little did they know just how brilliant. They continued to bootstrap and launch their products with online retailers. IP was finally on their minds, but they had no budget for it.
IP Is a Vital Investment
The awareness of IP as a valuable protection tool and a value- and brand-building strategy varies significantly between business sectors. Many individuals from the traditional food industry background believe IP isn’t applicable to them or at least isn’t a priority. Shocken certainly thought so, and this assumption has cost them. Mistakes were made.
Two years into their venture, Shocken was at the breaking point and finally shifted their mindset to build a global company with the help of investors. They decided to ditch bootstrapping and small-volume orders once and for all. They were selected by a global accelerator and secured their first investment to scale the company. This was a turning point for Shocken, although they still lacked a deeper understanding of IP and mainly saw IP as suitable for science-backed companies with patent potential. Through the accelerator mentorship, the immediate realization was that they couldn’t continue under their original brand name Veganly Deli: a brand name like “Veganly Deli” for a vegan deli products company was super descriptive and thus not eligible for strong (if any) trademark protection in most jurisdictions. Two years of brand building, advertising investments, and social media presence were lost, again, literally overnight. Even then, and with all their success thus far, it was a difficult decision to commit financial resources toward IP, as the company’s existence depended on whether they could secure a co-manufacturing facility to produce and sell. Peter and Emma were delaying any IP-related spend for as long as they could to see how much investment would be consumed by the R&D process with their co-manufacturer.
Eventually, but not until there were sales, Peter and Emma decided to protect their new brand name: Shocken Foods. Most people who tasted their whole-food vegan meats were shocked that they were plant-based, so “Shocken” sounded like a great reflection of this common reaction. This was their brand, and when they were able to afford to protect it, they did.
Legal Lessons Learned in the Food Industry
While plenty of their food company peers had scientists as cofounders and were filing for patents, Peter and Emma’s business model relied on brand-specific trademarks, trade secrets, nondisclosure agreements, and commercial agreements. Their experience, and what they continue to see in the plant-based market, is that consumers do not care about patents. In fact, patent protection may be associated with the overprocessing of food, which is a turnoff to most consumers. Patents matter internally for a company in this sector that is looking to attract investors and protect their trade, so as a company Shocken needed to balance these various needs.
The United Kingdom (UK) is currently assessing its novel food framework after exiting the European Union, and there is pressure to simplify and expedite the approval process to boost innovation in the food sector.1 Shocken specifically wanted to avoid having their food products fall under the Novel Foods Regulation—a regulation administered by the UK’s Food Standards Agency before certain foods in that category can be brought to market—so their process was developed around creative flavor combination and utilizing Michelin cooking methods that Emma learned over the years. For Shocken, a plant-based company, alternative protein is not moving away from plant sources anytime soon.
Shocken believes that the cell-based or cultivated meat industry has a tough road ahead with poor infrastructure and high production costs. Investors like to invest in patents but not in factories, which leads to a limited supply of cultivation equipment. In addition, the traditional meat sector is organized and subsidized by governments with a well-established infrastructure and strong consumer identification. Peter and Emma have seen a number of public relations campaigns launched by dairy and meat interest groups attacking the plant-based sector,2 and they expect the same thing with cultivated meat once it gets past the regulatory barriers. “Lab-grown meat” will likely be one of the narratives promoted to dampen the wider consumer adoption, but the first hurdles are regulatory and commercial.
Shocken Foods recently achieved major milestones. They finally scaled production to be able to ship pallets, and they are fresh off appearing on a popular UK television show, Aldi’s Next Big Thing,3 which is similar to the U.S.’s Shark Tank, where companies compete to win a nationwide contract with Aldi supermarkets (also trading in the U.S. as Trader Joe’s). Although Shocken didn’t win, the buyers and judges loved their food, and the experience demonstrated that the big chains understand the mass appeal of plant-based alternatives. Their current range of plant-based meats will be available in the U.S. in 2025. Shocken is currently working on bringing a new plant-based protein source with a complete amino acid profile to the market. It has all the hallmarks of sustainability, requiring few resources to produce, and it will blow your taste buds with a stunning sensory fiesta. Needless to say, there is plenty of IP to be developed, and Peter and Emma are very excited about it.
Sophie’s Bionutrients
Eugene Wang of Sophie’s Bionutrients, a company that uses microalgae grown inside of bioreactors to develop plant-based and sustainable alternative proteins, shares his perspective on IP strategy:
Regenerative artificial intelligence (AI), synthetic biology, and deep space explorations have undeniably captured the imagination of both the public and the entrepreneurial world. Beyond the excitement surrounding these advancements lies a complex web of legal and IP considerations that demand attention.
One of the foremost challenges in navigating the realm of IP law within these domains is the sheer intricacy of the technologies involved. The fusion of cutting-edge computing capabilities, unprecedented knowledge sharing, and remarkable technological progress has resulted in innovations that often defy conventional understanding. Even experts within these fields frequently encounter surprises and unforeseen outcomes, as exemplified by the enigmatic nature of regenerative AI. The inherent complexity of these systems raises pertinent questions regarding IP infringement and the role of patent lawyers in safeguarding their clients’ interests.
Indeed, the intricacies of these technologies necessitate a comprehensive understanding among IP professionals to effectively fulfill their duties. As such, there is an urgent need for legal practitioners to delve deep into the nuances of these innovations, equipping themselves with the requisite expertise to navigate the evolving landscape of IP rights.
Moreover, the intertwining of disparate technologies further complicates matters for IP law firms. The ubiquity of AI across various industries, the emergence of biological computing, and the cross-pollination of space exploration technology into biotech and AI sectors underscore the intricate web of interactions at play. These interdependencies present significant challenges in delineating and enforcing IP protections, necessitating a nuanced approach from legal experts.
In light of these complexities, the formulation of a robust IP strategy emerges as a critical imperative for both law firms and the companies they serve. However, devising such a strategy is far from straightforward. Mere patent filings no longer suffice in the face of rapid technological advancement and intricate interconnections between different domains. Instead, a selective and preemptive approach is essential in charting a company’s IP roadmap. Yet, determining the optimal course of action remains a formidable task, often likened to a multimillion-dollar question with elusive answers.
The onus thus falls upon IP law firms to guide their clients through this intricate terrain, assisting them in formulating bespoke IP strategies that align with their business objectives. By leveraging their legal acumen and industry insights, these firms can empower companies to navigate the complexities of IP law in the era of regenerative AI, synthetic biology, and deep space explorations.
Creativity Is Key
What is very apparent is that every food company’s IP strategy is unique and evolves based on factors such as industry, business model, and growth stage. It is essential to tailor IP protection to suit the company’s goals and resources. Companies in this industry are constantly managing their risk, including protecting recipes, signing nondisclosure agreements with manufacturers, and exploring avenues for patenting new innovations. There is no one-size-fits-all IP strategy but rather contemplated decisions that involve a myriad of IP protections that may be dictated by money and who your investors are.
Money is a significant concern for most startups, and the importance of fundraising efforts to support growth and development is a reality. True global growth means transitioning from a small business mindset to a global business mindset, which requires considering various factors like production, supply regulation, international logistics, and product quality. Seeking investment becomes an absolute necessity for scaling operations. Scaling operating means additional challenges, including adapting products to meet different flavor profiles, understanding labeling standards, and complying with local regulations.
Who your investors are or even will be is a personal decision for each founder. Going from bootstrapping to approaching friends and family, angels, or accredited investors such as venture capitalists and private equity is a complicated choice when dealing with being indebted to “someone else.” There are other resources, such as incubators, accelerators, universities, and federal and international grants, that further make these decisions to grant equity in your company even more challenging. Sometimes these decisions are not made by you but for you by the strategic partners and investors you may take on.
Through their IP legal strategies and storytelling, the road to overcoming regulatory requirements may get easier. U.S. and international food regulations must be adhered to if real change is going to be made. This includes educating the U.S. Food and Drug Administration and the masses on innovations used, obtaining certifications such as GRAS (generally recognized as safe), and adhering to food additive regulations and front-of-package labeling laws.
One thing is certain of all entrepreneurs in this space, and that is their passion for changing the landscape of foods. These companies need to tailor their storytelling approach based on their target audience, be it highlighting product quality, health benefits, or environmental impact. Whether it’s attaining better gut health, using science to find healthier alternatives to nutrition, reducing the slaughter of animals, or ensuring sustainability, these founders stand on their beliefs, and all want to provide something that tastes really good.