In a dynamic landscape where consumer brands navigate ever-evolving markets, Camino Partners has emerged as a beacon of innovation and collaboration. I sat down with Elle Lanning, President of Camino Partners and veteran of KIND Snacks, to discuss the firm’s pioneering approach to investing and incubating emerging brands. From leveraging operational experience to championing values-driven partnerships, Lanning shared what inspired Camino to take a differentiated approach to consumer investment, guided by a commitment to sustainable growth and strategic innovation.
Dave Knox: Can you introduce Camino Partners and elaborate on the firm’s mission and operations?
Elle Lanning: Camino Partners is a new venture for us, drawing on our experience from building and growing KIND Snacks. As operators and founders of KIND, we bring both capital and strategic operating guidance to today’s consumer entrepreneurs and management teams.
Knox: Transitioning from KIND to Camino, how are you differentiating your firm in the investing and incubation space?
Lanning: Our 20-year journey with KIND taught us that there’s no one-size-fits-all playbook for success in the consumer market. While it’s crucial to learn from others’ successes, creative thinking and tailored solutions are key. At Camino, we apply this unique approach, leveraging our experiences to dissect opportunities and challenges, rather than relying on predefined playbooks.
Knox: You mention “building value with values” as a core principle of Camino. Could you elaborate on this concept?
Lanning: Values are paramount, both in our operations and in the brands we support. Values are one of the first things we screen for when we’re talking with potential partners. When unexpected challenges arise, teams with shared values can navigate through them more effectively. Integrity, entrepreneurial spirit, and what we refer to as strenghening one another are central to our ethos, guiding our partnerships and internal culture. These values, akin to those at KIND, form the foundation of our approach at Camino.
Knox: With your extensive tenure at KIND, how has your approach to working with portfolio companies evolved?
Lanning: My time at KIND provided invaluable insight into the evolution of a business, spanning various stages of growth. This collective experience, shared by several members of our team, uniquely positions Camino to support our partners. We emphasize that we’re not governors of businesses; our interaction isn’t confined to quarterly board meetings or micromanaging. Rather, we adapt our involvement based on each company’s needs. For instance, drawing from our experience at KIND, we assist partners in establishing effective management teams tailored to their stage of growth. We recognize that first-time founders may lack this experience and offer guidance accordingly. In some cases, we roll up our sleeves to provide hands-on support, such as refining marketing strategies within budget constraints. By leveraging our diverse expertise across various functions and growth stages, we tailor our approach to meet the specific needs of each partner.
Knox: Reflecting on your transition from operating at KIND to becoming a first-time investor, what have been your key insights?
Lanning: Being an operator is hard and being an investor is hard, and now that I have the experience as an investor, I appreciate how hard it can be for each of those seats to understand each other and the challenges that the other faces. This realization underscores the value proposition of Camino: blending capital with operational support and experience to bridge this gap. Unlike my deep immersion in a single business at KIND, investing requires a broader focus and a strategic approach to prioritize opportunities. While I can identify potential challenges and opportunities for our partner companies, executing solutions falls primarily on their shoulders. This shift has been a personal adjustment, highlighting the importance of teamwork and collaboration in driving success.
Knox: Beyond shared values, what qualities do you seek in entrepreneurs and businesses you aim to partner with?
Lanning: Alongside shared values, a fundamental trait we seek is a commitment to lifelong learning. This trait, epitomized by Daniel Lubetzky, founder of KIND and principal at Camino, has been a driving force behind our success. Daniel’s insatiable curiosity and willingness to embrace vulnerability have been instrumental in navigating dynamic business landscapes. We value leaders who possess this intrinsic curiosity and drive, as they are better equipped to adapt to change and self-lead through uncertainty. However, it’s crucial to balance this openness with a strong point of view. Leaders must be agile enough to incorporate new information while maintaining a clear direction for their business. This balance ensures speed and decisiveness, essential qualities for success, especially in competitive markets. Ultimately, we prioritize individuals who embody both a thirst for knowledge and a strategic approach to decision-making.
Knox: You’ve mentioned both incubation and investing throughout our conversation, which sets Camino apart in the investment landscape. How do you approach each, and when do you decide between incubating a brand and simply investing in a business?
Lanning: At Camino, we embrace our entrepreneurial spirit, allowing flexibility in our approach. While we believe in the power of focus and repetition, we also recognize the value of agility. Incubation, though less common in our portfolio, represents an organic path to innovation. Take SOMOS, for example, a Mexican meals made easy platform. Born from our team’s shared heritage and culinary expertise, SOMOS arose organically as a response to market gaps and personal passion. This approach, while less standardized, allows us to pursue unique opportunities rooted in our team’s diverse experiences and insights.
Conversely, our investment strategy follows a more traditional path. We identify high-growth sectors and visionary entrepreneurs, aiming to align our expertise and capital with their journey. By focusing on spaces with long-term consumer interest, we seek partnerships that leverage our experience to propel growth and innovation. While the origins of our collaborations may vary, our commitment to supporting transformative ventures remains steadfast.
Knox: As Camino navigates the evolving landscape of CPG investing, how do you support founders in this changing environment?
Lanning: The recent shifts in CPG investing underscore the importance of sound fundamentals and strategic partnerships. Reflecting on our experience at KIND, where profitability and decision discretion were paramount from day one, we empathize with earlier-stage operators who face different market dynamics. During the era of abundant capital and growth-at-all-costs mentality, many founders received misguided advice that prioritized growth over sustainability. However, the market correction has prompted a return to fundamentals, fostering a healthier ecosystem for both founders and consumers.
Our approach at Camino aligns with this shift, emphasizing the importance of problem-solving and solution-oriented innovation. Daniel often refers to the three Cs: the creative, the critic, and the crusader stages of an entrepreneurial journey. We believe in thorough ideation followed by rigorous self-assessment before championing a solution. For founders who have embraced this approach, the current landscape presents opportunities to find supportive partners who share their vision and help execute their plans effectively.
While discussions often highlight challenges, it’s essential to recognize the positive trajectory towards a more sustainable and consumer-centric marketplace. As consolidation occurs, founders who have prioritized problem-solving and solution-oriented innovation will emerge stronger and more resilient.
