UpTrajectory Review
In a recent piece, Angela Vranich discusses the challenges and opportunities that arise for startups in unstable markets. She argues that while many founders instinctively shy away from risk, embracing chaos can lead to significant advantages. By actively engaging with troubled product categories, companies can not only rebuild trust but also set new industry standards, as demonstrated by Vranich's own experience with Little Spoon during a time of heightened scrutiny in the infant formula market.
This perspective is particularly relevant for small business owners navigating today's unpredictable landscape. Rather than waiting for conditions to improve, operators should consider how they can innovate and lead in challenging times. The key takeaway here is that taking calculated risks can differentiate a brand and foster consumer loyalty, especially when competitors are hesitant. However, it's crucial to ensure that any new offerings genuinely address consumer concerns and improve standards, rather than merely capitalizing on chaos.
“Companies that embrace difficulty—rather than steering away from it—are much more likely to become enduring industry leaders.” — Fast Company
Takeaway: Embrace industry chaos as an opportunity to innovate and build consumer trust.
From the original item — Fast Company:
As a startup founder, I understand the impulse to reduce risk wherever possible. After all, you’ve already embarked on an uncertain journey by building a brand from the ground up. Why add further precarity to the equation? Don’t you want to get some sleep at night?
It’s easy to see why many companies are wary of entering product categories that are experiencing major instability, whether because of regulatory pressure or consumer distrust. Faced with this kind of chaos, founders have a choice: They can either wait for the category to calm down, or they can work to rebuild trust in real time. In my experience, “safe timing” is overrated. Companies that embrace difficulty—rather than steering away from it—are much more likely to become enduring industry leaders. In fact, I’ve found that it’s precisely when consumer skepticism is high, regulators are watching, and trust in the incumbents is eroding that courageous brands have the opportunity to create better standards for the entire category.
I saw this play out firsthand at Little Spoon, the baby and kids food company that I cofounded in 2017. When we launched infant formula earlier this year, the category was under extraordinary scrutiny, and rightfully so: There had been contamination concerns and recalls across the industry, putting parents in the stressful position of wondering whether they would be able to feed their baby safely. Given this context, it would have been far easier for us to avoid formula entirely, or at least wait until pressure on the category had eased.
Instead, we decided to keep our eye on our mission of making parents’ lives easier and kids healthier. We asked ourselves: What would it look like to create infant formula that actually exceeds the current testing and transparency standards? Then we set out to build a new paradigm.
The truth is that not every company entering a troubled category is trying to do right by consumers. While instability opens up opportunities for brands to improve standards, it also gives certain players the chance to exploit confusion, or to use carefully crafted PR narratives as a substitute for material change.
As a founder, you have to be honest about whether you’re merely reframing a category, or truly rethinking how your product serves everyday consumers. The strongest and most influential leaders put their heads down to build systems and products that earn (and keep) consumers’ trust over time. They understand that marketing should follow action.
When my team decided to take on the challenge of creating infant formula worthy of parents’ trust, we realized that we needed to operate with complete transparency. And “transparency” couldn’t just be a buzzword; it had to be part of our core infrastructure.
We knew that food safety was top-of-mind for parents, so we channeled high school calculus class and showed them our work. Little Spoon tests for more than 500 contaminants and shares exact heavy metal numbers, rather than making vague statements about having “passed” a certain test. We publish our batch-level testing results publicly, and we have codified batch-level safety testing across our full product range with our Always Tested standard.
Importantly, this transparency is all voluntary. By going above and beyond regulatory requirements, we helped raise the bar for the entire industry.
It’s been exciting to see other startups taking on the challenge of repairing different product categories. Olipop scaled during a period of growing backlash against soda and ultra-processed foods by reformulating their beverages around fiber and other functional ingredients, emphasizing measurable nutritional value, and positioning their products as a replacement for traditional soda (not just a better-for-you indulgence).
Julie, the emergency contraception company, launched in the midst of tremendous category headwinds, including intense political, legal, and cultural scrutiny around reproductive healthcare. Despite these pressures, the brand stayed laser-focused on serving its consumers. It redesigned the emergency contraception experience with an emphasis on accessibility, education, and transparency, and it modernized branding and distribution channels for a younger audience.
Crucially, the Julie team worked to reduce confusion and shame around emergency contraception, understanding that they would be reaching everyday women during a particularly high-stress moment in their lives. In doing so, the company demonstrated what it means to take responsibility for the consumer experience.
Many founders believe that trust-sensitive categories are too risky to pursue—too regulated, politically exposed, and operationally difficult. But avoiding tough categories can also mean avoiding areas where meaningful innovation is most needed.
There are several commonalities between companies that build lasting trust in challenged categories. First, they treat skepticism as useful information, because consumer distrust typically signals unresolved problems. Second, they build proof into the product itself, earning consumer approval by showing measurable improvements (rather than relying on branding to sway public opinion). Third, they act before they are forced to do so. This is key: The most rigorous standards are often voluntary long before they become the industry norm.
If you’re wondering whether doing the hard thing is more expensive, the answer is yes—in the short term. It often means investing in more testing, more disclosure, more operational complexity, and more accountability, all of which tend to drive up costs. But these measures build trust that will pay dividends in the long term.
In my work, I have had the privilege of seeing up close how smart and savvy consumers are. Their expectations are high, their trust is hard-won, and they want to spend their money with brands that are actively trying to improve their industry. Raising the bar is hard work—I can attest to that—but earning the loyalty of those consumers makes the fight absolutely worthwhile.
Angela Vranich is the cofounder and chief product officer of Little Spoon.