YSpace helps diverse food and beverage startups expand into global markets

Food and beverage companies owned by racialized groups, visible minorities and other under-represented entrepreneurs now have support to break barriers and grow their companies through a program run by York University’s YSpace and funded by Agriculture and Agri-Food Canada’s (AAFC) AgriDiversity Program.

The YSpace agrifood business accelerator, supported by AAFC, welcomed a new cohort of 14 startups in May 2024. Less than one year later, most participants are on track to doubling their revenues and sales velocity.

Business support for agrifood startups

YSpace 2024 agrifood founders cohort attending a workshop.

YSpace offers a range of programs to help entrepreneurs scale their companies, secure funding and expand into new markets. Food and beverage startups can join YSpace’s incubator, accelerator or food investment-readiness program, where they participate in workshops, mentoring by successful entrepreneurs, fireside chats with industry experts, roundtables with investors, peer networking, and pitch sessions.

“Most founders in our agrifood portfolio come from diverse backgrounds,” explains Bookie Adekanye, Agrifood Program Officer at YSpace. “They bring products from different cultures and countries that are infused with a lot of innovation, and that are new to the Canadian food and beverage space.”

The program helps founders scale across different channels into mass retail, opening doors and opportunities. In 2023–2024, funding from AAFC’s AgriDiversity Program allowed YSpace to expand the program’s scope across Canada. The first cohort included companies from British Columbia, Ontario, Québec and the Yukon.

In the first year, startups in the YSpace program:

Overcoming barriers in food and beverage

Out of the 14 companies, 11 founders were women, and 11 founders identified as racialized persons, visible minorities or immigrants. A big part of YSpace’s work is to help founders break systemic barriers in the food and beverage space.

“We understand the systemic barriers many of our founders face,” explains Adekanye. “It’s hard for racialized persons or women to get into food and beverage networks. It’s about who you know and what rooms you can get into. We work with partners across the food and beverage ecosystem to break down silos and ensure the companies are getting visibility.”

Connecting founders with opportunities

The Canadian Health Food Association’s CHFA NOW is Canada’s biggest trade show for natural, organic and wellness products. Thanks to YSpace’s industry connections, three of the startups exhibited at the event’s “Incubator Alley,” and two of those companies participated in pitches, giving founders the opportunity to draw attention to their brands and connect with buyers, retailers, brokers and distributors.

From pitch to profit: YSpace success stories

Many of the companies that have participated in the program have seen significant traction. Here are some of their biggest successes:

Aki Kaltenbach Founder, CEO of Save Da Sea Foods Inc., at a trade show.

Victoria-based foodtech startup Save Da Sea makes sustainable seafood from plants. The company’s founder developed new product lines while participating in the YSpace program. The support and guidance they received helped them secure $650,000 in seed financing from Business Development Bank of Canada’s Thrive Lab. Save Da Sea is now expanding into the U.S.

Participating company logos of the YSpace 2024 agrifood founder's cohort.

Using a proprietary vacuum dehydration technology, Toronto-based Oh My Okra makes nutrient-dense okra snack foods. While participating in the YSpace program, they secured three U.S. distributors, including the largest confectionary distributor in the U.S.

Leila Kairns, Co-Founder and COO, Healtea, receiving the 2024 Product of the Year Award.

Québec-based Healtea is another YSpace success. The company creates organic, caffeine-free soft drinks, including a new 4-in-1 product pack that led to retail listings. They’ve also piqued the interest of large retailers like TJX and Loblaws, independent stores and institutional buyers.

Future outlook: Creating opportunities for diversity and growth

YSpace is successfully yielding results and planning for the next group of startups. Their goal is to continue supporting Canadian founders who may face systemic challenges in the food and beverage industry with support from the AgriDiversity Program.

“As Canadians, this is something for us to be proud of,” says Nafis Ahmed, Associate Director of Entrepreneurship at YSpace. “We have incredible Canadian companies and products hitting the shelves in the U.S. They’re becoming known name brands in American households. We see this as a catalyst for Canadian entrepreneurs and consumer packaged goods companies to take over the world with the amazing products we create here.”