The diffusion of radical transformative innovations is essential for a transition towards more sustainable food systems. However, scholars have paid little attention to the power struggles shaping this process. This article applies the concept of social capital to the multilevel perspective and uses qualitative data from field research and media analysis to investigate the case of a local food movement in South Tyrol, Italy. It poses the following question: How did the conventional regime in South Tyrol discourage transformative innovations to further their interests against the efforts of the movement? The results show that the movement built up microlevel social capital to diffuse transformative innovations. Conventional regime actors used existing macrolevel social capital to inhibit transformative innovations and promote gradual innovations instead. The article argues that radical transformative and gradual innovations were mutually exclusive in the case under study and therefore caused intense power conflicts. It concludes with recommendations for future research.