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- Monday Newsletter 11/18/24
Monday Newsletter 11/18/24
😋This Week in CPG 11/18/24
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Hey ,
It’s possible to run a profitable, bootstrapped CPG business and here’s how.
Last week my friend Sean Hall posted that his business Wellious just saw a 850% year over year sales increase for its almond powder protein powder. And they’re still a bootstrapped company.
How is he doing it? He created a great product in a category with high existing demand and brand loyalty (protein powder). Rather than innovating by adding adaptogens, wild flavors, or functional ingredients, he innovated through subtraction. He has two SKUs and the products only contain 4 simple ingredients.
Almond Flour
Chickpea Protein
Cocao or Vanilla
Monk Fruit
The result? An easy to understand product requiring almost no consumer education. When people see it, they immediately understand the value proposition.
This has lead to strong product market fit with 50% of new customers spending $280+ per year. 🤯
Here’s a formula you can use to find your own success (it’s not the only one):
Large Product Category with High Purchase Frequency
Product Focus on Taste #1 and Simple Ingredients
High Product Margin and Simple Go-To-Market strategy.
Here’s the thing. MOST CPG products don’t have these fundamentals and it’s the reason why they struggle. Hell, it was the mistake I made with TeaSquares.
So if you’re looking to run a profitable bootstrapped company, what changes can you make in your business to hit these fundamentals?
Jordan Buckner
CPG NEWS
A roundup of CPG news that happened last week.
🛒 Retail Rollouts
🍝 Kaizen Food Company, co-founded by Madalina Defta and Arash Hashemi, has launched its high-protein, low-carb Ziti, Fusilli, and Radiatori pastas in all Andronico's stores across California, marking their West Coast debut.
🍖 Side Project Jerky, founded by Marcos Espinoza, brings its chef-inspired jerky flavors to Lowe's Foods, now available across 80 stores in North Carolina, South Carolina, Virginia, and Georgia.
🥔 Actual Veggies, co-founded by Hailey Swartz, Alex Swartz and Jason Rosenbaum, celebrates its Purple Potato and Classic Super Fries' debut at Texas' Central Market locations.
🍫 Nguyen Coffee Supply, founded by Sahra Nguyen, lands nationwide at Sprouts Farmers Market with its Vietnamese 100% robusta and arabica dark roast coffee beans.
🌴 Realsy, co-founded by Sophia Karbowski and Austin Patry, launches its naturally sweet fruit displays in 50+ California Safeway locations at a "2 for $5" deal.
🧄 Maazah, co-founded by Yasameen and Sheilla Sajady, achieves nationwide availability of its South Asian-inspired sauces at Whole Foods Market.
🍞 Kooshy, co-founded by Matt Wachsman and Jonathan W., is now available in 800 stores, including Mariano's, Jewel-Osco, and Rouses Markets, as the brand expands its retail footprint.
🚀 New Product Launch
🍪 Bake Me Healthy, founded by Kimberle Lau, unveils Soft-Baked Dark Chocolate Chip Cookies that are top 9 allergen-free, gluten-free, and upcycled, now available online and soon on Amazon.
🍍Painterland Sisters, co-founded by Hayley and Stephanie Painter, debuts Passion Fruit, a new organic Icelandic-style skyr yogurt, exclusively at Sprouts Farmers Market.
🔨 Kooshy introduces Panko Breadcrumbs, made with Non-GMO sourdough and free from seed oils and sugar, designed for frying, binding, and adding a perfect crunch to holiday dishes.
🤝 Brand Partnerships
🍹Creature Comforts co founded by David Stein, Adam Beauchamp, Derek Imes, and Chris Herron and Tip Top Proper Cocktails co-founder by Neal Cohen collaborate to launch "(A Beer Known As) Jungle Bird," a cocktail-inspired ale available for a limited time.
🎉 News to Celebrate
🎥 Fishwife, co-founded by Becca Millstein and Caroline Goldfarb, premieres its first TV commercial featuring Alison Roman, streaming on platforms like Hulu and ESPN.
🌱 ReGen Brands, co-founded by Kyle Krull and Anthony "AC" Corsaro, launches an innovative ecosystem to provide education, community, and financing for CPG brands supporting regenerative agriculture, aiming to transform the food system from soil to shelf.
In collaboration with Amber Caro from Marketbite.
Have news to share?
WEBINAR REPLAY
Webinar: Sustainable Packaging for CPG Brands
How do you create sustainable packaging as a CPG brand? In this webinar we’ll be breaking down our framework for reducing your packaging footprint through recyclable and compostable materials, along with packaging design choices.
We’ll break down the various goals you have with your packaging when considering:
Sustainability
Oxygen barrier
Moisture barrier
Design aesthetic
PODCAST
195. Financing Options for CPG Brands
Debt financing is a tool that can be incredibly useful for emerging CPG brands, but is also fretted with questions. When is debt the right tool for you? What are the different financing types? How much should I take out? For this episode I invited Daniel Taylor, CEO of Bags to help break down these answers.
Interested in connecting with Bags?
Book a free financial growth session with their team here!
Listen on:
OPERATION
Automating Your Business Backend
Managing backend processes like inventory, sales orders, and fulfillment can be overwhelming, especially as your business grows. Automation is the key to reducing manual work, improving accuracy, and freeing up your time to focus on growth. In this guide, we’ll explore how automating five crucial backend functions can transform your business:
Inventory Management
Sales Orders
Fulfillment
Raw Ingredient Management
Forecasting
Let’s delve deeper into how automation in each of these areas can simplify your business operations.
SALES
7 Steps To Maximize CPG Sales This Holiday Season
The holiday season is a golden opportunity for consumer packaged goods (CPG) brands to shine. According to Adobe, online shopping for the 2024 holiday season is projected to hit a record $240.8 billion, with 53.2% expected to be mobile transactions.
With nuanced consumer behavior and the continued surge in online shopping, it’s crucial to continue to refine your retail ecommerce strategy.
Follow these 7 essential steps to navigate the holiday rush & maximize your sales.
FINANCE
This is What You Need to Qualify for Debt Financing
Debt financing can be a life-line for CPG brands looking to scale, meet increasing demand, or expand their reach. For many founders, accessing capital can feel challenging, especially when you’re navigating the complexities of financing alone.
Whether you’re expanding production, funding new marketing initiatives, or boosting inventory, debt financing provides a structured and accessible way to access capital without giving up equity.
But what does it take to qualify for this type of financing? Here’s everything you need to know to prepare your business for debt financing success.
BUSINESS
Adapt your Innovation to Extended Retailer Reset Windows
In the competitive retail landscape, the time it takes to introduce a product to store shelves is getting longer. Category resets, where retailers rearrange products or replace underperforming items, have traditionally been an opportunity for brands to get their products in front of buyers.
We’re seeing a trend towards longer retailer reset windows, forcing brands to wait longer to secure shelf space. For both emerging brands eager to break into the market and established players trying to stay ahead, these delays can create significant challenges.
How can brands adapt and navigate this shifting environment? With expert input from Project Manager Danielle Habitz and Sales Strategist Dean Sinclair, we dive into the causes of longer reset windows and explore the best ways to overcome associated challenges.
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About Foodbevy
Foodbevy helps food and beverage brands grow from startup to scale through inspiration, education, and partnership.
Jordan Buckner
Founder
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