In a landscape where the food industry increasingly embraces advanced technologies, a glaring gap remains in the way brands and retailers find co-manufacturers. Oisin Hanrahan, co-founder of the burgeoning startup Keychain, likens the current state of co-manufacturing searches to a journey through the dark ages. Traditional methods, such as word of mouth, trade shows, and costly consultants, often yield limited results, leaving brands to navigate a cumbersome process that can be both time-consuming and imprecise.
Hanrahan’s frustration with the existing system is palpable. “If I want to make a low sugar, high protein bar, wandering the floors of the Las Vegas Convention Center hoping to find a company who can do that to my exact specs is a horrendous use of my time,” he explains. Instead, he envisions a more efficient approach, where brands can leverage Keychain’s technology to streamline their search for co-manufacturers. With a platform that indexes over 20,000 U.S. manufacturers in less than eight months, Keychain aims to revolutionize the way food and beverage products are brought to market.
Drawing from his previous experience with Handy HQ, which he co-founded and sold to Angie’s List, Hanrahan is applying the same principles to the consumer packaged goods (CPG) sector. Keychain’s platform allows brands to manage their relationships with manufacturers, ingredient suppliers, and packaging companies. The startup recently raised $18 million in seed funding, led by Lightspeed Venture Partners, to further develop its comprehensive database of manufacturing capabilities.
The innovative platform enables brands and retailers to search through a vast array of products and identify co-manufacturers equipped to produce them. By utilizing artificial intelligence, Keychain analyzes product descriptions to determine the necessary processing and packaging equipment, helping users find the right manufacturers for specific items, such as trail mixes. Users can filter results based on certifications or geographic location, significantly enhancing the precision of their searches.
Keychain’s approach to gathering data is equally groundbreaking. Rather than relying solely on online searches, the company begins by examining every private enterprise in the U.S. to identify potential manufacturers. By leveraging NAICS codes and conducting automated data collection alongside manual research, Keychain has built a robust dataset that enriches its platform. Hanrahan notes that relationships with machinery sellers further enhance their data accuracy, creating a virtuous cycle that attracts more manufacturers to participate.
Within just eight months of launching, Keychain has engaged over 10,000 brands and retailers, who have submitted projects totaling more than $200 million. The platform operates on a subscription model for manufacturers, allowing them to enhance their profiles for an annual fee that varies based on their business size and category involvement. This structure eliminates brokerage fees and offers manufacturers control over how their information is presented, fostering a positive reception in the industry.
Keychain’s vision extends beyond merely connecting brands with manufacturers. Hanrahan emphasizes the importance of creating a comprehensive ecosystem that facilitates every step of the manufacturing process, from initial searches to contract negotiations and product approvals. The platform aims to support all aspects of the supply chain, ultimately integrating financing solutions and additional marketplaces for ingredients and packaging.
Moreover, the timing for such innovation is significant. Many CPG manufacturing plants over-invested during the pandemic, resulting in excess capacity as food consumption patterns shifted back to foodservice. At the same time, there’s been a surge in private label products and startups seeking to outsource manufacturing. Keychain’s technology capitalizes on this trend, enabling brands to navigate the complexities of co-manufacturing more effectively.
As the food industry continues to evolve, Keychain stands at the forefront of a much-needed transformation. By harnessing data and technology, the startup is poised to reshape how brands find co-manufacturers, making the process more efficient, accurate, and accessible. With ongoing advancements in AI and a commitment to data integrity, Keychain is not just filling a gap; it is paving the way for a more connected and responsive food manufacturing landscape.