Posted on Leave a comment

#6: How the 1st Ever Coconut Milk Ice Cream, Nadamoo!, Earned Its Way Into the Freezer Aisle

nadamoo podcast
UMAI social circle cpg podcast

#6: How the 1st Ever Coconut Milk Ice Cream, NadaMoo!, Earned Its Way Into the Freezer Aisle

In 2005, @nadamoo seriously shook up the frozen dessert market with the first ever dairy-free coconut milk ice cream. 🥥🚫🐄

Not long after, CEO @nadamoodan joined the team – re-working his mechanical engineering skills to put their books in order and become a chief problem solver as the company expanded to the well-known CPG brand 🍦 it is today.

Let us break it down for you…

[0:55] Introducing Daniel Nicholson, CEO of NadaMoo!
[1:24] How’d Daniel link up with NadaMoo!? More background on the brand – the first-ever coconut-milk based ice cream on the market. From Madrid to Austin!
[5:41] More why behind the transition from mechanical engineer to ice cream bookkeeper. Optimizing the problem-solving process.
[9:29] Where has NadaMoo! sent you around the world?
[11:16] Key tips for other brands wanting to stand out against the competition.
[15:11] Key pain points associated with the frozen dessert industry.
[20:23] Seasonal flavors – are they decided year-by-year? Is there a method to the madness of seasonal launches?
[22:54] How does your team come up with new flavors? Is there a Chief Flavor Officer behind the scenes?? Touching on The Scoop Shop in Austin, Texas.
[28:05] Back to operations! A lot of the brands that we work with only ship their product within the U.S. Tell us more about the process of expanding the NadaMoo! to include Canada. In a way, “starting the business all over again…”
[33:20] How might a business inform + empower consumers to speak up about their brand and get more product on shelves across more retailers?
[35:26] The impact of listening and interacting with your customers through an online community.
[38:20] What advice would you like to share with new CPG owners? The reality of this type of business.
[50:44] Finally, Daniel’s favorite flavor and if it’s changed throughout the years!

Mentions from this episode: 

Stay in touch:

Join Umai’s Facebook Group: CORE 3

Alison:
Hey, Hey, y’all. Alison here. I wanted to quickly thank you for listening to our podcast. I know you’re about to get a lot of valuable information from it, but I also wanted to hop in and share with you guys a free SOP, which stands for standard operating procedure. We use this SOP every single day in our agency to authentically grow and engage our audiences on social. It is 1000% free and I’d love for you to have it and use it in your business as well. So just go to my umaimarketing.com/engage to go download. All right, cheers.

Karin:
Welcome to the Umai Social Circle, where we talk consumer goods, marketing tips to help business owners and marketers alike grow. I’m Karin, co-founder of Umai.

Alison:
And I’m Alison, the other co-founder of Umai.

Karin:
And we’re being joined by Daniel Nicholson, CEO of our favorite dairy-free ice cream, NadaMoo.

Daniel Nicholson:
Thank you. Thanks so much for having me.

Karin:
Thanks for being here. Well, I’d love to start out with, how on earth did you get started with this killer vegan ice cream brand?

Daniel Nicholson:
Yeah. It’s a great story and it’s a long story too, but I’ll definitely try to try my best to condense it down for those of the listeners that don’t know our brand. We’ve been around for 15 years. We were the very first coconut milk based ice cream product to market back in 2005. We just celebrated our 15th year anniversary in May. So I was not the founder. I got involved in the business in 2008 when the founder was about three years into it. For some brief background on me, I’ve studied mechanical engineering at the University of Texas. My first job out of school was in renewable energy, worked for a big wind power utility out in Spain. So working on another side of the sustainability problems, solutions or solutions to the sustainability problem.

Daniel Nicholson:
But when I moved back to Austin after that stint in Madrid, was introduced to the founder of NadaMoo through a close family friend. I’ll never forget the first time I tried the product. Maple pecan was the very first flavor that I ever tried. And the second I put it in my mouth, I was just like, “Wow, this product is incredible. Tastes just like ice cream with much lower calories, much lower sugar, zero cholesterol.” As you all can imagine, the dairy free movement, this predated the plant-based movement. So I saw it from a much higher level of just like a better for you ice cream product. It’s lower calories, lower sugar as I said.

Daniel Nicholson:
The founder at the time was looking for was looking for help. I mean, was already three years into the business, created an incredible product, which a lot of founders in the CPG space do, but really needed some help on the operation side and with a lot of the numbers, a lot of the day-to-day accounting. I loved the product so much and thought that NadaMoo, the brand, for one, too, I loved the brand name, NadaMoo. I grew up in South Texas from a family who speaks both Spanish and English. So for me, NadaMoo just spoke to me and resonated with me on, on that deeper level too.

Daniel Nicholson:
So, yeah, just in speaking with her around what she needed help with, how I could potentially help, it ended up landing me a job in the CPG industry. I started off as the … I hate even saying they gave me the beautiful title of controller. But I had no formal experience in accounting. I took an introductory course in undergrad, but really was flung into keeping the books for the company in 2008. My family made a small investment in the company that year and I was often running in my new CPG journey, which now I think I just celebrated 12 years, 12 years in CPG, which is a third of my life. I continue to just be blown away by the fact that a third of my life has been spent in an industry that I knew nothing about when I got started. But it’s been incredibly rewarding and it’s been a great ride so far.

Alison:
Awesome.

Karin:
Wow.

Alison:
Yeah.

Karin:
So you’re saying that you went to school to be a mechanical engineer. That’s a lot of schooling. Are you saying you had one taste of NadaMoo and you just switched?

Daniel Nicholson:
Done. Switched. I guess to expand upon that, what I did what I did learn after my stint at this very large renewable energy company in Spain was that I didn’t want to work for a big company. I just did not feel like my day-to-day work contributed to some really bigger impact and bigger mission that the company was obviously trying to achieve. So I knew I didn’t like that. I also, didn’t like just sitting at a computer, working on spreadsheets all day, every day. I’m fairly good with numbers, but it’s just not dynamic enough for what I wanted to do. So some of my initial thoughts were like, “I don’t think engineering is like the career path for me.” And straight out of school, it’s like, “Well, now that I’ve had that moment, it’s kind of too late now.”

Alison:
Too late. Wow.

Daniel Nicholson:
So as I moved back to Austin and I was interviewing for some positions that I really didn’t want just because my degree lend themselves well to it. And really, I’m glad that I met the founder when I did because it was an opportunity that got me just excited enough to be like, “Wow, this would be exciting and interesting. I can get on the ground floor of this potentially massive opportunity and see whether or not I can really add value.”

Karin:
I mean, look what happened.

Daniel Nicholson:
12 years later, it’s kind of crazy to think about.

Karin:
So what have you applied from that background? Has that been helpful in the CPG space?

Daniel Nicholson:
I think so. The fact that I chose engineering, I like to think that I’ve thought about it at least a little bit. Really, for one, I think engineering is probably one of the more difficult undergraduate degrees to obtain. We work really hard. We make jokes about the business school students within the engineering school, just saying like, “Man, these guys just get to party all the time.” We don’t get to party as much. There was a lot of studying involves … There was just a lot of really difficult concepts to wrap our minds around. But I think the value that it has really added to my life and what I’ve decided to do is just general problem solving like when you are presented with a problem, you need to go through a systematic process of, “Okay, how do I solve this and how do I create the best possible solution for the problem that has been put in front of me?”

Daniel Nicholson:
So, yeah, it’s been reduced to just a very strong analytical background, problem solving background that I think really is important for any entrepreneur to begin to optimize their problem solving process.

Karin:
I love how that’s a true Testament to you do not have to go to school to do anything you want to do outside of being a doctor or a lawyer, things like that. But it’s just like, if you have a passion for something, you’re going to perform so much better, because you like doing what you’re doing. I think that’s so powerful. I just remembered, you said you don’t like sitting behind a desk. I would love to hear more like how many trips … spoiler, you source from Thailand, right? The coconut milk?

Daniel Nicholson:
Yes. Our coconut milk providers is based out of Thailand, which has been awesome. So first I’ll say, the ironic thing is I still do sit behind a desk because it’s [inaudible 00:09:53] way for me to receive information and share information through email, through calls like this, meetings and conference calls. So I do sit behind the desk quite a bit, especially now during COVID where there’s little to no travel that is happening in my life right now. But the position has allowed me some really cool opportunities to travel to really cool and far away places to conduct business, right? To create relationships with our suppliers, meet their families, go out to their farms, break bread, have dinner, and just really share in this life that they live in their home where we just happened to be connected by way of sourcing very important raw material for our ice cream product that we sell to the grocery stores.

Karin:
That’s awesome. One of my biggest questions that I was excited to ask you is in a really heavily saturated market, you’re competing against big dairy dogs of the aisle, what are some key tips that you would want to give to a brand that’s wanting to stand out against a really strong competition?

Daniel Nicholson:
Yeah. That’s a great question. We’ve definitely picked a difficult category to try to achieve what we’re trying to achieve. The frozen dessert category is limited, right? There is limited shelf space in freezer sets across the country. Sometimes some stores have larger frozen sets, some have smaller, and it’s our job to try to gain shelf and as many of these sets as possible nationwide, at some point worldwide. I think it’s really important to not be overwhelmed by the reality of the category that you’re trying to break into. I think if you really feel strongly that you have some value proposition to bring to the category and you’re really passionate about the work that you’re doing, I’m really big on staying the course mostly because that’s what we’ve done.

Daniel Nicholson:
We knew what we were up against day one. We knew we were going to be pushing up against the very strong and powerful dairy industry. But it didn’t stop our approach. We’re just like, “Look, we are literally a fly on the radar of these massive entities. They won’t even know that we exist until we begin to get to a certain size and scale that maybe they start seeing us on that radar.” So I think it’s don’t overwhelm yourself with the daunting task of taking on some really massive partners. You just have to take it on a day at a time and really work at making your brand or your product significant enough to the point that you start becoming a bigger target to others.

Daniel Nicholson:
And by the time you reach that point, yes, you have some even more challenging obstacles and opportunities ahead of you. At that point, you’ve done something right. And then it’s up to you to, again, wake up each and every day and continue to execute upon the plan that you’ve put in front of you yourself. I think that’s been a big part of what we do. We don’t get overwhelmed by the noise of new products launching into our space. Haagen-Dazs is coming in and Ben & Jerry’s is coming in. We’ve been through this for a really long time. We’ve seen a lot of brands come and go. We’ve seen a lot of brands come into the space and not have success.

Daniel Nicholson:
And at the end of the day, all you can really focus on is you and your mission and your vision. Yeah. I think that’s really what we’ve stayed focused on here and so far so good. We’ll see if that continues to be the right plan and strategy, but for now I can say it has absolutely gotten us to this point and we just want to keep pushing forward with that same mentality.

Karin:
Definitely. I think it’s so easy for people of all sorts of different brands and goods to get bogged down with what other people are doing. I really like that advice to just do what you know how to do best, execute the best way you can, and keep delivering really great product. It’s awesome. Cool. Well, what have been some key pain points in the business? Yeah, it’s ice cream and like online orders. And I want to hear a little bit more about those kinds of pain points.

Daniel Nicholson:
Yeah. The biggest pain point for an ice cream product is we have to keep it frozen, right? It has to be handled, everything has to be handled in such a delicate manner. I mean, a shelf stable product, or a brand with shelf stable products does not have to think about cold chain, does not have to think about storage, does not have to think about the temperature that the truck needs to be set at in order to transit your products safely so that it’s not melting and refreezing and then the consumer ends up having a less than stellar experience. Not because you didn’t make it well, but because the handlers of the product as you were moving the product around to different places, they were not disciplined about the way that they handled it.

Daniel Nicholson:
The part that I really enjoy most about the business is probably the part that most founders or most CPG entrepreneurs hate. I like the unsexy stuff. I like operations. I like the finance. I liked the accounting. I like all the systems and processes that are put in place to ensure that we have systems in place that are fail-proof. You have to have a system and a process for everything. And as long as you hold to that, then you can create a lot of extra room for yourself to be creative. As you scale, then it gets a lot more important to begin to focus on the sales and marketing aspects of the business.

Daniel Nicholson:
But we have always felt like until we have the backend taken care of, there’s really not a lot of need for us to press forward, trying to light the world on fire sales-wise and marketing-wise, because the backend is not prepared to handle it. We’re going to create bigger issues for ourselves than we’re ready for. I think that’s been a big part of … maybe that’s why it’s taken us 15 years to get to this point where we were really focused on the backend and optimizing every single piece of the operation to being prepared, to have more fun on the sales and marketing side.

Karin:
Hey, it’s proven to be a good call because I feel like that is something that I’ll see with founders. It’s all sales and marketing upfront, and the rest is falling by the wayside. So focusing on that to make sure that you’re delivering the most premium, premium product makes a lot of sense.

Daniel Nicholson:
Yeah. I think like a big part of the food business in CPG, the health of a business is directly related to scale. You have to scale, you have to create those operational efficiencies in order to make any kind of money in this industry. I think it’s very easy to get carried away with sales and marketing and product development. Oh, what’s the [inaudible 00:18:52] we’re going to bring to the market. And those things are all fun and they’re exciting. The market wants that. They want you to do those things, but they don’t want you to do that if you’re not ready for that, because that’s going to put you at a massive predicament where you don’t have full control or you don’t have the full vision in place yet of how you’re going to bring all this added value to the market before you’re really ready to handle it.

Daniel Nicholson:
It’s tough. Most of the advice I give is rooted in what I’ve been through. There are thousands of different ways to have success here in CPG. I’m much more operationally focused as I do believe that scale and efficiency will ultimately give you the opportunity to build the healthiest company possible. I think any entrepreneur, that should be the goal. You want to build something of scale, build something that is sustainable, that can stand on its own two feet so that you don’t necessarily have to depend on other capital partners and on others to continue to drive your vision. I think that has driven our approach since the day we got started.

Karin:
That’s awesome. I know that you’re talking about the flash and pizzazz of new products and stuff, but seasonal flavors. Is it year by year? Does it change? Do you guys get excited about the same ones year over year, or any hot tips for creating seasonal products?

Daniel Nicholson:
Yeah. I’m not sure if you knew, we barely launched first seasonal last year, 2019, 14 years into the business. To the points you’re making, it takes just as much work and effort to create a seasonal product that’s going to be on the shelf for two months or three months than you do for a product that’s going to be on the shelf for an entire year. So for right now, as we dipped our toe in the water last year, launched that first seasonal product, 2020 is a year where we want to do it again. We’re not even worried about creating a new seasonal product. We’d love to, but we didn’t think we were ready yet. We want to achieve greater sales and distribution with the seasonal product this year around, this time around.

Daniel Nicholson:
And then we’re very iterative about everything we do. We do something, we learn from it. The next year we come back, maybe we do exactly the same thing, but we do it better because we’ve learned some things. And then from there, once that really works successfully, then we can have even more fun on the product development side developing new seasonal flavors for the consumer to enjoy. So for 2020, it’ll be the same products. We already have a new seasonal on tap that we were wanting to launch in 2020. It didn’t pan out for some of the supply chain issues that needed to be hashed out first, but we effectively have two seasonals prepared for 2021. Some of that could include a new flavor that isn’t one of the originals that we launched with.

Daniel Nicholson:
So I think people get so impatient, to some of that earlier points I’m making, they get so impatient, want to do too much too soon before really understanding that there are really good lessons to learn in doing something, kind of taking that feedback, doing it better the next year, and then maybe starting to have more fun with it based off of all those insights that you’ve gained as you were kind of testing that.

Alison:
So question on when you do launch new products, how do you guys come up with the flavors? Do you get customer input? Do you have a chief flavor officer that creates it and you guys just say, “This is good”? How does that work?

Daniel Nicholson:
Yeah, it’s been an evolving process for us too, but I think what I like to touch on is a big part of the reason why we opened up a scoop shop here in Austin was to speed up that formulation process, testing new flavors, getting real time feedback from the consumer, seeing how they sell relative to the other products that we’re selling. So it’s all, I mean, those insights. We opened our shop in the summer of 2018. It’s only two years old. But as we’d wanted to continue to improve around the speed that we’re able to achieve new flavors and new products, this group shot became the perfect format for us to do that. Before having the scoop shop, it was really just our internal team members, maybe some friends and family, and we’re just sending some samples around, “Hey, what do you think of these new flavors?”

Daniel Nicholson:
Maybe we would look at some data. Maybe if we have our hands on spins reports, or other data sources, we could begin to understand what is selling well out there in the market already that maybe we haven’t tapped into. So we’re looking at competitors’ products, not only from the dairy free category, but we look at the dairy ice cream category too, because we believe that our consumer is an ice cream lover. People who eat NadaMoo, they love ice cream. Some of them might not be 100% dairy-free or 100% plant-based, they dabble in both sides. We’ve learned a lot about that. So we’ve gained insights from the ice cream industry at large by looking at data, looking at what is selling well, and that’s what kind of drives our innovative process.

Daniel Nicholson:
And now that coupled with the scoop shop, we have access to even more data. We have access to even more people who enjoy our brand and products. So hopefully, we’ll continue to get better and better at launching new things that are just perfect for the market that will do really, really well sales-wise when they hit the shelves. That’s ultimately what you’re trying to achieve, is putting things on the shelf that sell well like. That it’s not that difficult. It is difficult, but you can always simplify any difficult problem into a very simple snippet. Yeah. I think ultimately when we think of product development, we’re thinking about creating products that as soon as they’re on shelf are going to sell them.

Alison:
I love that y’all are using that scoop shop as a little testing incubator and getting feedback right from there. That’s awesome.

Karin:
Bless that scoop shop.

Alison:
I know.

Daniel Nicholson:
As you all can imagine, it’s been a massive undertaking for us. It’s one thing to be a CPG company. It’s a whole other thing to also operate this like brick and mortar type of operation, two very different worlds. But again, for us, it’s about taking a problem, creating a solution, and beginning to learn from that and continue to get better and continue to be able to use it as value for the bigger operation that we’re running. That’s what the scoop shop is for us. It’s marketing. It’s increase brand visibility in our hometown of Austin where we were founded in 2005. It’s about that direct consumer experience. It’s about speeding up our product development process. And every single decision you make as a company has to bring value to the table because you’re putting money in, you’re making an investment in people, and in space, and equipment and you have to make sure that you can tie any of those investments back to some form of value to the overall operation.

Daniel Nicholson:
That’s what our investors, that’s what they expect from us and we have to deliver. When we have a good idea, it can’t just be a good idea. There has to be some real value there. And it’s really motivated us to work really hard in making the scoop shop a success and making sure that it creates value for the bigger company and for the bigger mission and vision.

Karin:
Cool. Well, going back to operations and your operations brain, I know a lot of the CPG consumer goods brands that we work with now are only based in the US, so how was it when you expanded to Canada? What was that like? I mean, that’s just like another world to me.

Daniel Nicholson:
And it is. It absolutely is. We have aspirations to grow everywhere. But again, Rome wasn’t built in a night. It takes time, it takes energy, it takes beginning to understand new markets that are not America, or very different consumer, very different purchasing process for that consumer. I’ll say we jumped into Canada. This is our second go round at Canada. Much earlier in the history of the company, we went into Canada thinking, “Oh, new distribution expansion opportunity.” And we got a distributor and we’re just going to make this happen. We weren’t ready for it. We didn’t understand how drastically different the distribution systems are and the margins that distributors work off of that are different than the US. I mean, all sorts of things.

Daniel Nicholson:
We opened Pandora’s box of when we thought we were ready for Canada the first time. Since relaunching into Canada, we definitely understand it a lot better, but we’re starting slow. We know that we can obtain greater distribution right now if we wanted do. We’d have to spend a significant amount of money. And sometimes those business decisions don’t make financial sense. So we’re trying to build a brand organically there right now and we know that there are other larger retailers we can align ourselves with, but we have to go prove success in a more organic format first.

Daniel Nicholson:
But yeah, I think the main takeaway is, it’s absolutely a different world and you have to have a really serious plan in place and you’d have to be open to understanding that it’s like starting a business all over again and in a new market. Cool. You’re making it here in America and you have all this scale. But launching into a new market is like building a business from scratch. So you have to have the bandwidth and the capacity to manage the healthier part of your business. It’s a little more mature than the new projects that you’ve taken on at the same time that you’re beginning to understand these new business ventures that you’ve kind of flung yourself into. So I think that’s a big part of what you have to understand at least enough to be prepared to approaching it in a healthy manner that’s possible. If you go in there with unrealistic expectations, the market will hold you up and spit you out pretty quickly.

Karin:
Yeah. I feel like consumers have no idea how difficult it is. They’re coming from all over the world and they’re like, “Why can’t you just ship to me here?” I’m just like, “It is a lot [crosstalk 00:31:37].”-

Daniel Nicholson:
Yeah. They are just like, “We can’t find your product on our shelf.” Like “Why? Request it.” I mean, I don’t know. It’s not like we get to pick where we get to place our product. The consumer has to demand it. I think we see it every day. It’s very easy to begin to understand why we feel so powerless as consumers and as people, but at the end of the day, what we demand is ultimately what will find its way on your shelf. So if there are products out there that, that you want to have the opportunity to buy, then work on your store level staff. Work on the manager, work on writing emails to the corporate office. We don’t get to buy our way onto all of these shelves.

Daniel Nicholson:
And, yeah, I think the consumer needs to understand and the entrepreneur needs to understand that we need to inform the consumer in this manner and educate them on how this even begins to work, because they always just want things to magically appear in front of them at a very convenient price for point. It’s not that simple. If we want to continue to do the good work that we want to do, we have to have a relationship with our customers and we have to help them understand what we need them to do so that we can do what we want to do and continue to build our businesses and then create greater impact in the consumer packaged goods space.

Alison:
Can you tell us how you get your consumer to do those things? What are some ways that other CPG brands can ask their consumer to go ask for the product?

Daniel Nicholson:
Yeah. We answer to any of them and all of them, whether they communicate with us via email through our website. We kind of have a general inquiries area on our website where if people have a question, shoot us an email. We’ll read it. We will think about how to respond to it. There has to be some thoughtful communication. That happens on social media too. If you build a social media following, those are the people that for now are the lifeblood of your organization. And if they DM you, read it, respond, have dialogue, have that conversation. It is tedious. It is absolutely tedious. It takes time. It takes energy. But if you’re not spending your time and energy engaging with your consumer, you’re losing. You’re not listening to them, you’re not talking to them, and you are neglecting that connection.

Daniel Nicholson:
Those are the people who are going to be your brand champion over time. And you have to, whatever the opportunity, if it’s in a demo. Of course, we’re not doing demos in COVID right now, but if you were. If you’re doing a demo, engage with that consumer, listen to them, take feedback to heart. If you’re at a large scale tasting event, same thing like you’re engaging with your customer or a potential customer. Talk to them, listen to them, hear what they like, hear what they don’t like about your product. And same thing through email channel, through social media. It’s really about taking the time and energy to understand how important your customer is and learning from them by engaging with them.

Karin:
And the advocates of your brand, there’s so many, there’s so many. I remember we’d be at those conventions, we’d be like at the Natural Foods Convention, you guys always had a way of attracting these big name influencers that are just singing your praises. I think it’s a true testament to how good the product is, but also how well you built community. And the campaign you just did for the anniversary where you guys got a bunch of video input and someone did like a stop motion. It was incredible.

Daniel Nicholson:
People spend time and energy on doing it. I think that’s the kind of harmony that we’ve always tried to create with our customer. I tell the team all the time like, “This is still a relationship driven business. Let’s go out into the world and get to know these people.” It’s not transactional. Sure, sometimes we do. The influencers, they have to make a living too. And they created this project for themselves to do that. Yes, sometimes we have to pay them because that is a part of the transaction, but it’s so much more to us than that. We want to know these people. We want to know what they like. We want to know when their birthdays are. We want to engage with their families.

Daniel Nicholson:
As the team continues to grow and expand, if everybody is of that same mentality, you get to multiply and everybody becomes a steward of the brand. I think when people are around us and when they understand what we’re talking about, and how we’re trying to go about this, I think it resonates. People want that sense of community and want to take part in that human connection process. That’s really we’ve approached it. It’s not about throwing marketing dollars around. There are some tactical things around that too, around putting your money to work in good ways strategically on the marketing side. But more than that, if you really want to create that loyal fan base, those champions of your brand, you have to desire to know them as the people that they are and it’s way more than influencing. We’re all people trying to do things in the world and you have to understand people at that foundational level.

Karin:
Definitely. I feel like a lot of people will get stuck in influencer partnerships. They’re just like sliding into their DMS right off the bat, asking them for things. It’s like, you got to slow down. You got to build the relationship first and I think you guys do such a beautiful job of that. Well, if you had three pieces of advice or a couple of pieces of advice for a new CPG owner navigating this space, what would you share with them?

Daniel Nicholson:
Be passionate for sure. Make sure that you were getting into this for all the right reasons. If money is a motivator, fine, that’s okay, but it won’t be enough. It won’t be enough to sustain a lasting success in this industry. It just won’t. So be passionate. Second, I’d say to some of my earlier points, stay the course. Stay the course on why you did it, why that product, what value are you bringing to the category? Because staying that course is going to be the thing that naturally continues to differentiate you from everybody else. If you get bogged down with all the noise, you’re going to start trying to copy and follow what others are doing, and now you’re off track. Now you have no path. Now you’re following someone else’s. So be very methodical about what that path is, how you’re going to stay on it, how you’re going to stay focused on it. So, yeah, stay the course.

Daniel Nicholson:
I guess the third, the word grit comes to mind. Be tenacious, be persistent. Definitely have that virtue of grit to lean on when things get really, really difficult. This is a very hard business. I like to tell CPG entrepreneurs all the time, I can tell they’re just getting started. I can tell what I’m about to tell them is going to overwhelm them or make them have second thoughts around what it is they’re doing or why they’re doing it. But if you cannot grasp the reality of how difficult this business is and even more so how difficult it will be to be successful at it, I want to tell them as early as possible, it is tough.

Daniel Nicholson:
You have to be … tenacity, grit, all the toughness words. You’re going to have to be persistent in the pursuit of your passion and your dreams. I think those are the three super general, but I think really that’s what it comes back to. All the other work, all the other strategy and planning, those things are things that you have to do to even set yourself up for that opportunity. But when the hard times really, really come, it’s all about going back to the basics and being very introspective around how you started on the journey to begin with.

Karin:
Yeah. I think that’s good for all sorts of company owners.

Daniel Nicholson:
Yeah. It’s not just CPG, it’s very, very general, but I think these are things we hear all the time growing up, right? You’ve heard of these little one offs, people are throwing a little hint of wisdom at you, and you’re not ready to hear it for what it is. It’s not until you hit some of those roadblocks and then begin to experience those obstacles that you’re like, “Oh, okay. That made sense. I wasn’t ready to really listen to that for how powerful it was.” So I always go back to the most simple thoughts. I think there’s power in simplicity and we need to continue to engage in those thoughts to get better and better results out of ourselves.

Karin:
Definitely. I think it’s so important to not overcomplicate things, which, I mean, I tend to do a lot, you know?

Alison:
We all do.

Daniel Nicholson:
It’s super easy to do and in a business that is so complex, like this is really what, to the points you were making earlier about the consumer not understanding how hard it is that we’re doing. It’s not our job to really let them know how hard it is. We need to make it as easy and seamless for them as possible. But if we did want to start getting them to understand what it was, I mean, we are literally importing products like raw materials from all over the world. We’re getting them all to a certain place at a certain time so that they can be on a truck to get to our co-packing facilities so that we can make finished good product so that it can be on the shelf without ever having any out of stocks over and over again for every single day of every year. We do not break. Yes, we, we take some vacations here and there, but the consumer never stop seeding. So we have to continue to make our product all the time.

Daniel Nicholson:
And as you scale the problem is bigger, and the coordinating is bigger, and the communication of every single thing has to be so buttoned up and tight. Because if not, the consumer sees no product on the shelf and they think you’re a failure. And you kind of are, like you’re [inaudible 00:44:11] them, you’re failing them because it’s up to us to solve through all of the many challenges that we face to get our product on the shelf. You have to be up to that task. The consumer deserves to have that opportunity to, in a very frictionless manner, purchase the product that they’ve already chosen, they want to support. So we lean on each other so much and we have a lot of work to do in order to continue to deliver on that and build a sustainable business.

Karin:
Definitely.

Daniel Nicholson:
I think this I think this CBD coffee I’m drinking is … I think it has me pretty chatty.

Karin:
No, it’s introspective.

Alison:
[crosstalk 00:45:02] focused thoughts. Yeah

Karin:
I love it. Yeah. I mean, and especially I think this is completely where your fulfillment operations brain comes in handy because time and time again, I just get my mind boggled by the operations teams at consumer goods brands, because they’re always the first there, they’re always the last to leave, they’re grinding because it is so hard. It’s so much easier said than done when you go to the grocery store and you pick a product off the shelf, and you’re like, “Oh, this is great. This was easy to get here.” It’s just so complicated.

Alison:
It’s such a delight being a consumer. I was laughing when you were saying that you had to tell people how hard it is because, they’re just getting into the CPG space. They’re probably used to being a consumer and just being delighted all the time. And it’s basically like telling them Santa Claus isn’t real and it’s going to be a grind, but yeah.

Daniel Nicholson:
Yeah, it is. It’s pretty [inaudible 00:46:04]. And then as I’ve gotten more and more comfortable in my role as the leader of the company as I touched on, I started doing accounting. That’s literally where I started. Now I’m running a company. I’m running a team of 22 individuals and four different departments as we’re touching on, sales and marketing is one thing and ops and accounting and CPG is a totally different world, but one of the major challenges is getting everybody to see each other’s perspective. Can we put ourselves in that other person’s shoes? Can we even begin to understand what it is that they’re doing every day? And only then can we work in harmony and really understand how we can help each other be better at our jobs because everybody has a different piece of information.

Daniel Nicholson:
We have to share it in an efficient and effective manner as often as possible or people are lost or people begin to fail to see the bigger picture that they operate within and why all of our team members are counting on each and every one of our other team members to show up to work every day and just put their best work forward possible every day, every single day. So, yeah, I think our team members still think, “Man, he’s so intense. Does he ever … ” When I rest, I rest. It’s such an important part, but when I’m on and when I’m working I’m intense about it because there’s a lot of moving parts and I want to make sure that everybody at this organization is set up for success.

Daniel Nicholson:
I don’t want anybody to feel like they’re being left out or they’re not a part of the whole, because then if that begins to happen, then it goes right back to what I felt like when I worked at this renewable energy company. I was doing some job function, but nobody was really helping me see the bigger picture. I feel like when we are more engaged in that bigger picture, we’re going to do much better work because we understand why our job every day is so important from top to bottom. I would argue, we run a pretty flat organization, but you have to create some structure and hierarchy to an organization. Whether you are the c-suite executive level person or the entry level position, I don’t care. I want everybody to know how important their work is and how it contributes to us being able to provide a product to our customer when they want it. It takes a lot of work and it takes a lot of creating harmony between a lot of different people to make it all work.

Karin:
And that’s the passion and grit, right? You got to have it and you have it. I think that’s incredible. Then teamwork, of course, it’s like teamwork makes the dream work. It’s so true.

Daniel Nicholson:
It is. It’s important to you. Yes, it’s so big on team. I could care less. Most days, I probably neglect myself more than anything, but that’s fine. I’m okay with that. That’s the position that I’ve chosen, that’s the path that I’ve chosen. I care more about our team at this point than anything that I could ever do for myself. It becomes a very selfless of selfless role. Leadership, I do believe if done right, leadership is selfless and it’s not about me. It’s about the work that our team is doing day in and day out, year in and year out that is allowing us to compete at new levels.

Karin:
Hey, you’re bringing in the dairy free heat or the opposite of heat.

Daniel Nicholson:
Yeah. Dairy free frozen stuff.

Karin:
Freeze.

Daniel Nicholson:
The dairy free freeze.

Alison:
Can we go through your favorite flavor and has it changed throughout the years?

Daniel Nicholson:
Man, that’s such a hard question. So my favorite flavor is maple pecan by far, has never changed. It was the first flavor that I ever tried.

Alison:
12 years strong.

Daniel Nicholson:
It’s the reason I’m here today, so there’s a lot more past flavor. There’s sentimental value in maple pecan. Sad news coming soon about maple pecan, but sometimes you have to make business decisions too, right? If I could impart some additional lessons on entrepreneurs, yeah, sometimes sentimental value is great and real, but if the data is showing that you could be making something else that is going to sell better and is going to do better for your customers, better for your retail partners, you have to do it. But yeah, I will probably keep a very private stash of that product. We’ll probably make one last run and I’ll keep it in my own personal [inaudible 00:51:48].

Alison:
You could do seasonal Daniel’s flavor.

Karin:
Yeah. Just completely rebrand and [inaudible 00:51:55] maple pecan.

Daniel Nicholson:
But yeah, maples my favorite. It’ll never change even if we never make it again. But at the end of the day, when I try all our different flavors … I don’t eat ice cream all the time as it is work, but when I do eat our products, I’ll take a random flavor that I haven’t had in a while. I’ll take it off the shelf, I’ll scoop myself some scoops. And I’m constantly amazed at how incredible our flavors are. It blows my mind. So maple pecan, but they are all our children [inaudible 00:52:37] the same. I think ice cream, it’s so consumer driven. Everybody has their all time favorite ice cream flavor. Mine is maple pecan because pecan prairie kind of … the butter pecan stuff was kind of in my wheelhouse as I grew up, so maple pecan kinda has filled that void for me as I’ve begun to shed my life off dairy intake.

Karin:
Awesome.

Alison:
It’s a great flavor.

Daniel Nicholson:
What about you all. Do y’all have a-

Alison:
I am mint chocolate chip.

Daniel Nicholson:
Me too.

Alison:
That was also the first one I tasted too.

Daniel Nicholson:
Awesome.

Alison:
Maybe there’s a thing with that. The first one you taste is just-

Daniel Nicholson:
The first one you taste just holds you.

Alison:
Just sticks with you. Yeah.

Karin:
Yeah. The Rocky Road … forgive me for forgetting the clever name you guys came up with. That is my favorite.

Daniel Nicholson:
We did things in a very not dialed there. It’s Rocky Road. We’re not going to reinvent the wheel, but we called it The Rockiest Road.

Alison:
The Rockiest Road.

Karin:
I love that.

Daniel Nicholson:
The Rockiest Road. And of course, it’s a play on words. We really feel like as we’ve built this brand, we’ve chosen the rockiest road path. So that’s kind of why we decided to play with a very traditional Rocky Road flavor name. Yeah, I mean, ours is rockier because we’ve done it the long and the hard way.

Karin:
So it’s rocking. Well, Daniel, it was so nice to have you on. Thank you so much for sharing some wisdom from start to finish on your journey and what people can take from this to do better, and be better, and create a better product.

Daniel Nicholson:
Awesome. No, I thank you all for creating the opportunity for me to share. Thank you all so much.

Karin:
Thanks. And then one last thing, if you’d like to leave the audience with a link, or a call to action, or a reminder of the seasonal product, here’s what you’re missing.

Daniel Nicholson:
Yeah, I think, again, my big leave behind, it’s really eat more plants, eat more NadaMoo. It’s all plant-based. And if you haven’t tried our product before, we welcome you to try it for the first time. If you love ice cream, and you’ve never had NadaMoo before, whether you’re dairy free or not, it is a great ice cream product that you can consume and enjoy with minimal damage to your own personal health and even more than that, to the planet that we all want to sustain life on. So, yeah, we appreciate those who have already supported us and we look forward to those of you who will give our product the first try here in the near future.

Alison:
Umai Social Circle is a CPG agency driven podcast based out of Austin, Texas. We’re excited to share more behind the scenes insights, chats with industry leaders, or whatever else we learn along the way. Follow us on Instagram @umaimarketing, or check out our website, umaimarketing.com. Catch you back here soon.

Sign up below to subscribe to our newsletter and get free marketing guides + how-tos!

Posted on 1 Comment

#5: Kettle & Fire Mukbang, How They Seriously Increase Average Order and Cart Value

UMAI social circle cpg podcast

#5: Kettle & Fire Mukbang, Their Unique Approach to Increasing Average Order Value

Kettle & Fire bring the heat with a checkout system, indoctrination email series, and landing page loaded with special offers! You’re going to walk away from this episode hungry for Tom Yum Chicken Bone Broth and raring to edit your own sales pages for more 🤑.

There’s no better way to celebrate the beginning of autumn than chatting upsell strategies over a cup of bone broth. 🍲 Don’t ya think?

Let us break it down for you…

[0:55] Introduction! What we know about them to start.
[2:13] Giving Tom Yum Chicken Keto Bone Broth a try. Initial thoughts on scent, flavor profile, and ingredients list.
[4:46] A little pho tangent – where our love for flavorful broth stems from.
[7:33] Consensus on taste.
[8:01] Diving into how we recognize Kettle and Fire increasing their average order and cart value at store checkout.
[10:20] What’s a good dollar amount to hit per order before posing a free shipping offer?
[11:00] Product page breakdown. Automatically selected six-packs.
[12:22] The power of a subscription model. What’s a good discount to seal the deal?
[14:22] A gift at checkout – that’s gamified! A prize?! As well as recommendations to increase order value.
[16:27] After you buy, what’s next? You’re hit with something more – another offer that’s about to expire…
[17:59] Alison’s checklist for a really good upsell.
[20:30] Kettle & Fire’s most recent ads. What do the landing pages for those ads look like?
[24:00] Nuances needed when advertising a product associated with weight management (no-no word = weight loss).
[25:25] The importance of a pixel and how valuable it is for your sales pages.
[26:54] A little knowledge on product pricing tiers.
[27:56] More added *free* value, like secure checkout, a money-back guarantee, and free recipe guide.
[29:14] Touching on the nature of the Kettle & Fire ad we referenced. What’s a prospecting campaign?
[30:25] After we ordered the product, what happened next? Another offer! Via email. What’s their indoctrination sequence look like?
[33:02] Final thoughts + advice you can take to raise your average order value TODAY.
[35:00] Landing page creation. Alison’s recommended tools!

Alison:
Hey, hey, y’all. Alison here. I wanted to quickly thank you for listening to our podcast. I know you’re about to get a lot of valuable information from it.

But I also wanted to hop in and share with you guys a free SOP, which stands for standard operating procedure. We use this SOP every single day in our agency to authentically grow and engage our audiences on social. It is 1000% free and I’d love for you to have it and use it in your biz as well. So, just go to umaimarketing.com/engage to go download. All right, cheers.

Alison:
Hello everyone. Welcome to Umai Social Circle. Today, Karin and I are talking about Kettle & Fire Bone Broth. We both ordered the Tom Yum Chicken Bone Broth. I’ve been a huge fan of Kettle & Fire for so long but I’ve never actually tried their products. I’ve just been a fan of what they’ve been doing digitally. Have you ever tried them before?

Karin:
Really?

Alison:
Yeah.

Karin:
Yeah. It’s the bone broth I use when I cook.

Alison:
Oh really? Oh wow.

Karin:
I know. They’re local Austin folks. We have some connections. I feel like I would do yoga with the guy at Austin Bouldering Project and he is friends with the Kettle & Fire folks. And Hannah, of Purely Pecans, her cousin is one of the founders, I believe.

Alison:
Yeah.

Karin:
So, few connections, great product, great marketing obviously, if that’s how you know them.

Alison:
Yeah. I just look to them as the thought leaders in a lot of ways.

Karin:
What a compliment.

Alison:
I’m pretty excited to try it. So we both heated up our little Tom Yum bowls. Oh, you have a Pho spoon.

Karin:
I don’t have the Pho spoon. [crosstalk 00:02:21] What are you doing? Oh God.

Alison:
All right.

Karin:
It smells so good. It smells really coconutty.

Alison:
And Tom Yum, I guess is a new flavor, right? A newish flavor?

Karin:
I think it’s one of their newish flavors, but I love it. It’s just like straight bone broth to simmer and sip. So easy.

Alison:
Okay. So you’re saying you use the bone broth when you make other soups or you drink it?

Karin:
So I’ve never done the sipping. I’ve never just sipped it. I’ve always done it when I’m slow roasting meat and it requires some bone broth.

Alison:
Okay. Well, I’m going to try mine because I’m ready.

Karin:
That is so hot.

Alison:
It is coconutty. I love the slurping sounds.

Karin:
It’s a lot more mild than I thought it would be. I thought it was going to be… I thought it was going to have like more of a punch of flavor to be honest, based on the smell. But it’s good.

Alison:
Yeah. I’m getting like a little bit of heat. Are you getting that or am I just making that up in my head?

Karin:
Yeah. Tom Yum is usually a little bit spicy.

Alison:
So, oh, it’s the red curry spice maybe. They’ve got some chilies, but you’re right. You could sip this or you could just use it, the flavor to make something else, I guess.

Karin:
Yeah. Enhance it. Yeah. They say like perfect for sipping as an afternoon pick me up or like as a meal replacement.

So Tom Yum, I always thought of it as just like sour, spicy lemon grass, really forward, and then Tom Kha is the more coconutty. But in this recipe they do organic coconut milk, Thai chilies, ginger, garlic, and coriander as well as obviously the chicken broth. I think it’s good.

Alison:
Yeah. Tom Yum is the soup I always order.

Karin:
Yeah, right?

Alison:
But yeah, it is good.

Karin:
It’s more coconutty than I… I mean, I’m not a Thai Food connoisseur, but it’s more coconutty than I’ve ever tasted before for Tommy Yum. It’s not what I expected.

Alison:
Right. I wish I was a Thai Food connoisseur. But how do you feel… So I feel like a relationship with soup. I have very strong beliefs that soup actually cures you. If you’re having a hangover or I mean, obviously if you’re feeling sick, you drink soup. But if you’re having a sad day, soup makes me feel happy. I mean, what do you think about that?

Karin:
I resonate with that so deeply. Ask anybody who knows me and they’re like, “Give the woman a bowl of Pho.” So, backstory, my mother is full Vietnamese, born and raised, came here after the Vietnam war and I grew up eating… I mean, I used chopsticks before I used a fork and Pho is my happy, happy place. That is like-

Alison:
I mean, I knew you would agree. So I just wanted to get you on this tangent.

Karin:
Well honestly, do you remember that the last meal that we had together before you moved to Vietnam was Pho.

Alison:
Yeah. And Karin makes one of the best Phos I’ve ever had too.

Karin:
So nice. Thank you.

Alison:
You too. But yeah. So Karin’s mom is Vietnamese, so she knows What’s Up. And I lived in Vietnam for a bit and-

Karin:
So she knows What’s Up.

Alison:
I sort of know What’s Up, but I just loved in Vietnam in the morning. It’s 8:00 AM and you just go and sit on the sidewalk and eat Pho for breakfast and it’s 100 degrees already and you’re sweating into your fumble, but it’s something like… It just energizes you. I don’t know. I just love soup.

Karin:
And it’s every corner you walk on. I know that this is Thai, this is a Thai soup, but we’ll run a tangent.

Alison:
You were on a tangent.

Karin:
But any corner you walk on in Vietnam it was like, “Do you want a bowl of Pho?” And it was some lady’s house. I was like, “Yes I want your Pho.”

Alison:
“I want your Pho, yeah.” But similar in Thailand, I know there are street foods. They have a lot of different outside of soups mostly, but yeah. Cold-weather soup is for 100-degree weather, soup is for any of your thoughts and feelings. Let’s just talk about soup for this whole time.

Karin:
Well, taste overall, delicious, a little bit more coconutty than I expected, a little bit more mild in flavor development than I expected but in all reality, it is a bone broth first and foremost, it’s like a chicken bone broth. I think that the Tom Yum is just extra pizzazz that they have. That’s good.

Alison:
So good and good for you. So anyways, that was delicious. I’m going to keep drinking mine, but today we are specifically talking about Kettle & Fire and how they are the leaders I would say, one of the leaders at least at increasing cart value or increasing their AOV, average order value. I mean, just going through the checkout process, I was blown away with all the things that they’re doing. So, we’re going to walk you all through that today. It’s going to be fun.

Karin:
And I, yeah. So this is Alison’s bread and butter. This is how to increase your average order value is so essential for all businesses and when I was going… It’s not something that you’re used to all the time because brands aren’t all utilizing this. So when I was going through the checkout process, I was like, “Oh my gosh. How many upsells am I going to get?” It was actually incredible. So I’m very excited to dive in to this with Alison.

Alison:
Right. And if you don’t ask a user, “Oh, by the way, do you want this?” What might as well ask. So they gave a lot of ask to increase your value. So we’re going to start with their website. So as soon as you go to kettleandfire.com, they have a banner at the very top, which is so easy to do. Any brand should be doing this and it’s just talking about free shipping when you buy six or more cartons. So buying one of these guys, one of these cartons is about $8 and then about $7 for shipping. But if you buy six or more, that’s $50. So already they’re trying to up your cart value from, let’s say like $15 to $50 with that free shipping offer.

Karin:
And when it’s $8 for it, this is a premium product. Not everybody can afford this. Having that $7 shipping is like, “Oh gosh, how do I get rid of it?

Alison:
It’s a turn off.

Karin:
What can I do to get rid of it? And it’s like, okay, well, if I get $50 with this, I’m going to have a lot of dope soup. So I love this one.

Alison:
Right. Yeah. And if-

Karin:
What is a good dollar amount to offer free shipping?

Alison:
It’s going to depend on every brand, but I think there is like a $50 threshold. That is a great price point to start offering. It’s really going to depend on all of your costs for goods sold and everything like that. So I would say it’s brand to brand, but once you find that average order value, try to up it a little bit with your free shipping. All right. So next, when you go to the product page of Kettle & Fire, so when you’re actually going to look at a product like this Tom Yum soup, they give you a bunch of options and they’re laid out really nicely.

Alison:
So, you can say, okay, I want 1-pack for $8 or they give you discounts per carton once you get to the 6-pack, 12-pack, 18-pack. So they’re using psychology to be like, “Oh, well this is a better deal to buy more,” which I really love. And also what I like is when you go there, it’s automatically chosen, the 6-pack is automatically chosen. They’re not trying to push you into the 1-pack. They automatically select the 6-pack for you and that’s a $50 cart value. So another way they’re just increasing their average order value.

Karin:
Yeah. And I love how they lay out all the buying options. It’s the one time purchase, it’s the subscribe and save right next to it and it’s the quantities. It’s the 1-pack, 6-pack, 12-pack, 18-pack. I love that. It’s giving me all of the different price breaks so I can see exactly how much I’m going to be saving, making it real easy.

Alison:
Exactly. Yeah. You feel like you’re getting a deal. And then also, which I think every consumer package goods brand should do this a subscription. Consumer goods obviously, they expire, they get eaten, they get used. Find out what that expiration date is and start a subscription model for your brand, because that’s going to increase your lifetime value of your customer and that, it’s doing the work for you instead of continuing to remarket and asking people to buy again. They’re on a subscription plan and that cash flow is coming in.

Karin:
So for a subscribe and save, what’s like a good discount to provide for a subscription?

Alison:
Like 20% is real nice.

Karin:
Yeah. Okay.

Alison:
Again, it’s going to depend on what you can offer. What does Kettle & Fire do?

Karin:
Fast math is not my forte. I got to do some cross multiplication real quick, but for a one-time purchase without subscription, it’s $47.94 and for a subscribe and save, it’s almost $10 cheaper. So I think that’s 20%, right?

Alison:
Yeah. I’m going to say yes as well, because I’m not going to pull out my calculator right now. I mean, 20%, that’s a great deal. And again, I mean, if you’re really into Keto or making soups like we talked about, that is something that you’re going to want delivered. So, think about that. They do their delivery every 30 to 60 days. And then once you finally go and you select, do you want a 1-pack, a 6-pack? Do you want to subscribe? Then you go through the checkout flow on their site. So, you’ve added the product to cart and now you see a checkout screen and they’re not done yet, not even close. So the checkout process before you purchase, it has a little, like a gift bar and it’s kind of gamifying buying, which is really awesome. And it’s saying, “Add five more cartons to unlock the next prize,” which excites you. You’re like, “What is the prize?”

Karin:
“Give me the prize.”

Alison:
Yeah, “Give me the prize.” So it has that on the checkout before buying. It also has a subscribe to save 20%. Oh, 20% Karin, good math.

Karin:
That’s nice.

Alison:
Subscribed to take 20% off on your future delivery. So you can click there or there and then even under the product that you have selected, it also says, “Your order goes great with Butter Chicken Keto Broth.” So it has three different ways to increase your order value before you even buy.

Karin:
And that’s in the checkout. So just to repeat that, it is a reminder to subscribe and save. It’s a reminder to add more cartons, to unlock a prize. They don’t even tell you what the prize is, but I want to know. And then the third is a recommendation to your order, to order directly in there. That is so crazy. And I am on the checkout page right now too, just testing, and it’s telling me to add a 2-pack of beef and chicken that’s on sale. Don’t mind if I do

Alison:
That’s right. So and it’s not overly done. I think it’s pretty simplified. It does kind of… When everyone says, get them to check out and then upsell them, but I like how they do it in a way that’s gamified number one, giving you really good offers, 20% off, or like you said, that product was on sale. So, there is a right way to do this I think and Kettle & Fire did it right.

Karin:
Yeah. It’s not obnoxious.

Alison:
Right. Okay. So then you buy and you immediately get upsold. So they have your credit card information. You have purchased whatever you ended up purchasing, but they say, hold up. There’s another offer and it’s about to expire. So they play on the scarcity thing here. And looking at this upsell page, it says, “Say yes to the best. Your body will thank you. Last offer. Upgrade to six more cartons of our fastest selling classic bone broths at a price better than any store sales.” So they’re giving you 20% off, six cartons of, excuse me, of their fastest selling classic bone broths.

Karin:
That’s after you press purchase, right?

Alison:
That’s after you press purchase. That’s their upsell and you don’t have to enter any information again. All you have to say is, “Yes, send me more,” or “No, thank you.” It’s not heavily advertised. You’re adding $41 to your cart. It’s just like, “Do you want this or not?” It does have the price on there. It does say 20% off, but you don’t have to reenter any information. It’s just like, “Yeah, I’ll take that too.”

Karin:
Yeah. So what would be your checklist for an upsell page like this after purchase? What needs to be on that page?

Alison:
So a checklist for a really great upsell, you obviously need to lay out visually what that person is going to receive. They did a really nice job of stacking these cartons. So it looks like, wow, I’m getting like all this stuff. They have the 20% off or the percentage off front and center. There is a price on there but it’s not all about you’re adding $40 to your cart. It’s more kind of a psychology like, “Last offer. Upgrade your order. It’s only available on this screen. Hurry. It expires soon.” They’re playing very hard on scarcity and the buttons are super simple, “Yes. Send me more. No, thank you.” You could even go a little deeper and say, “No, I don’t want to treat my body well,” do something like that.

Alison:
But great job on this. I did only get one upsell offer, which some people go very intense with their upsells and downsells. So a lot of people go, they do an upsell after you buy, if you say no, then they say, okay, here’s another offer and it’s even less expensive or even a sweeter deal to try to get that cart value up. I think Kettle & Fire has maybe enough going on that they don’t need to annoy you that much. They checkout [inaudible 00:19:25]

Karin:
So, twist, I got more than one.

Alison:
Oh, did you?

Karin:
I got more than one upsell page, yeah. I got, I want to say three. I want to say that I kept clicking, “No, thank you,” maybe about three times.

Alison:
Okay. So that’s usually what happens with people. If you say no to their first offer, it gets sweeter and sweeter and sweeter.

Karin:
Do you recommend that?

Alison:
I mean, what I think is happening here is I think that they’re A/B testing what one upsell looks like versus entire flow upsells downsells. And that’s a very difficult thing to test because that’s a lifetime value of a customer. A really long upsell downsell could turn off a potential long-term customer. So, that’s what I think is happening. We don’t know for sure. I think it’s worth the test.

Karin:
That makes sense, I like that.

Alison:
All right. So we’re moving on. So, if you get a Kettle & Fire ad as of right now, they are pushing 30% off their ads. But when you click on the ad, you’re not taken to their kettleandfire.com website. You’re taken to offers. kettleandfire.com, which is their sales page. They are only running this one sales page as of right now, as of today. And it is not a beautiful page, but it is a copy heavy, long form sales page, which reads more news like I guess, I would say. It’s heavy and copy. It’s very long. By the time you get to the bottom, you should be sold. It’s full of testimonials. It’s full of PR. It’s full of a lot. If you’re not a reader, I’m not a reader. I’m pretty visual. They do have buttons to go ahead and add to cart throughout that sales page. So you don’t have to get to the bottom.

Karin:
This sales page is nuts, and we’ll leave this in the podcast notes for you guys to click through and take a look, but I have personally never seen a landing page this long in my life, but again, this is not my expertise. This is Alison’s. Is this normal?

Alison:
Yes, this is normal.

Karin:
Oh my gosh.

Alison:
If you’re strong in copy or have a copywriter, long form sales pages like these work amazingly. I’m not as great at this psychology of what it all takes to write this long of a sales page, and so, I use short form sales pages generally, and they’re a little more visually appealing, but long form sales pages work tremendously and I would love to know who they’re targeting with these too.

Karin:
This sales page is absolutely nuts. And so, what do you think at the top of the fold when you first click into it, the only photo that I see is a scale, someone stepping on a scale and the headline is, “Drink this every morning and lose weight without struggles.” So they’re obviously targeting those weight management folks. So there’s no mention of the product. There’s no visual of the product. So what’s that all about?

Alison:
Right. Like I was saying, this reads to me like a news article.

Karin:
Okay.

Alison:
So, which works so well and like you said, I think that they’re targeting people who are interested in losing weight or managing their weight and for some reason, I’m thinking that this might be an older demographic as well, because a lot of the imagery that they’re using, it trends a little older and this type of long point sales page does work for older demographics who are more maybe likely to read something like this. It’s like a news piece.

Karin:
Yeah. And the caption of this ad is, “Keto sucks,” in caps Yeah, I said it. Eating Keto every single day is a huge pain in the “bedonkadonk.” So yeah, it’s targeting that dieter. Is that the wrong term? But it is the dieter.

Alison:
Which is maybe everyone.

Karin:
Right. And can you explain a little bit on how tough it is to advertise and the nuances that are needed when you advertise like a weight loss, weight management product?

Alison:
There’s a lot of things that you cannot say or show with social ads. One of them being like a fit body that’s a little too much. You can’t really talk about dieter weight loss. That could get you flagged by Facebook. So when we talk about these types of things, we say weight management, like Karin said. But, once you get to your sales page, there’s a little more leeway. If you have a pixel on your sales page, Facebook will crawl and look at this most likely, but you can do a little bit more here and once you guys look at this page, you’ll see there’s a lot on here talking about weight loss.

Karin:
Can you explain a little bit about the importance of what a pixel is, first of all, like a 40-foot view and then how important it is to have it on your sales page?

Alison:
Yeah. So the Facebook pixel is basically a snippet of code that you install on your website or any pages on your website and what it does is it tracks people that visit your page and that allows you to remarket to them. It also grabs a lot of information about their demographic. Are they male, female? What’s their age? And it also knows what they’re interested in based on what they’re interacting with on the web. So it’s very important to have this installed. They have theirs installed on their sales page so that they can remarket to people that didn’t maybe purchase.

Alison:
A lot of people if they do have a sales page that maybe wouldn’t get approved by Facebook, leave it off. I’m not sure I really agree with that. I would try to stick to the Facebook standards and have a sales page that Facebook likes. And then if you have it, if you have a pixel on that sales page, you’ll be able to correctly view your conversion, your cost per purchase, because it is tracking who bought and how much they bought on that page.

Alison:
So moving down on the page, once you click, okay, give me this offer, I am sold, it takes you to a product pricing tier, which I love. I wish I could tell you guys more about the psychology behind this, but what it does is it has their first offer at the very top and then three less ideal offers below. So that again, you’re looking at the first offer and that’s the sweetest deal and that’s when comparing to the other lesser offers, you’re going to choose that most likely. So the main offer is 30% off, 14 cartons was originally $132, now $93. And they make that very clear, the dollar amount that you’re saving, which is nice.

Alison:
And I will say another thing that they do is they list that they use secure checkout, money back guarantee and they’ll also give you a free guide once you buy. So they’re just making you feel good about your purchase and giving you an extra little bonus on top of it. Right. So, I mean, when you think about it, it’s pretty freaking cool. You’re running an ad for new folks who have never heard about you. You’re sending them to a page where the main offer is $93.

Alison:
Not a lot of first-time buyers are going to spend that much if they go directly to your main website. They’re probably going to spend around $25, $30, what have you. But when you send them to a dedicated sales page that they can’t really click out of, they can’t look at the menu or anything like that they’re hyper-focused on the copy that you have specifically written talking to them about their weight management or whatnot that they’re sold by the end and they’re going to spend $93 instead of what, $40 or whatever. So, another great way to increase that cart value.

Karin:
So this ad that you pulled from that leads to this sales page, this is retargeting or prospecting, or can we tell?

Alison:
I think that this is prospecting. So I didn’t get targeted for this ad. I found it in the Facebook ads library. So I wasn’t able to see any of the UTMs that would generally usually tell me who they’re targeting. I’m thinking that this is a prospecting campaign though.

Karin:
And prospecting means completely cold audience. They have never heard of the brand. Well, you don’t think they have, because there is no signs on the internet. Like they haven’t liked the Facebook page, they haven’t been to the website. So that is a cold prospecting audience.

Alison:
Yes. But correct me if I’m wrong, Kettle & Fire. It could be remarketing. You never know. I think it’s a great cold sales page though, for prospecting. All right. We’re not done yet.

Karin:
Take a break.

Alison:
Yeah. Okay. And also just thinking about what Karin and I did, we literally ordered at about the same time. So if you’re interested in emulating a brand that you love, go in and maybe have a friend do it with you and buy it, just buy it. This was $8. Okay. Just buy it and we now can see the back end of what they’re doing and what they’re testing, which is so cool. The same day that we ordered our bone broth, maybe like within an hour or something, I immediately got a 10% off coupon if I order again in 24 hours. Did you get that?

Karin:
Well, I don’t want to say now. So I got to take a look. Oh yeah, yap. I got an email where he’s in a romper. If you didn’t know what a man romper was until reading this email, you’re welcome. Bringing in that humorous element, the human element. And then at the bottom copy and paste this code. I’m not telling you because I want to use it and get 10% off.

Alison:
Well, they played scarcity again. It says in the next 24 hours. So maybe it works, maybe it doesn’t. But, I mean, so once someone buys, they’re more apt to buy again. I think we all know that, but to get them to buy again in 24 hours, that’s pretty cool.

Karin:
I wonder what the percentage of success is on that?

Alison:
Yeah. I mean 10% off. So that same day email. Two days after ordering, we got another friendly indoctrination email letting us know more about the brand and whatnot, but it ended with, to join our referral program. We got that two days and six days after pushing a referral program. So basically getting the customer to work for you. That is what a referral program is. And they have created a really great community. Most people know who they are. Like Karin said, they’ve got a great human element, a great brand. So I’m thinking a lot of people probably joined this referral program and they can earn rewards and they can share their referral link with others to get more… They get a $10 coupon. So yeah. Make the customer work for you basically.

Alison:
And that is all. I’m sure there’s so much more, but that is our experience going through the Kettle & Fire checkout flow, going to their website, getting their emails. So, job well done.

Karin:
Right. And if you look at all of these things that they’re doing and doing well, it’s like, you do not see a lot of consumer goods brands pulling these levers and seemingly pretty simple, right? It’s just a lot of content that you have to create on the back end.

Alison:
Yeah. And that’s a great point. So, thinking about what you could walk away with from this that’s super, that takes five minutes maybe, put a banner immediately on your website that offers free shipping if you can, after they get to a certain amount spent. What else can… Set up an email automation sequence that after they purchase, offer them something else as you indoctrinate them.

Karin:
Yeah. We didn’t talk about this, but I’m sure I’m opening incognito right now, but there is probably a pop-up that-

Alison:
Yeah. Add a pop-up to your website that gives them-

Karin:
Collects emails.

Alison:
Yeah. That gives them 10% off, collects their email address. The things in the cart like the add more cartons to unlock a gift, that most likely you’ll need an app or a developer to do something like that, but look into it. Why not? I mean, if an app costs $8 but your average order of value increases by 20%, that is extremely worth it.

Karin:
Off the top of your head. Do you have any recommendations on your favorite software for building those sales pages or upsell pages?

Alison:
Yeah. For sales pages, I generally use ClickFunnels, but there’s also like Shogun integrates really well with Shopify. There’s Instapages, Leadpages. For the upsell downsell funnels, you can also use ClickFunnels for that. It’s just a little more difficult to integrate, but I highly recommend CartHook for upsells and downsells and I don’t know the pricing off the top of my head, but that is something to look into easily integrates with Shopify and what happens is after someone buys a product from your store, after you collect their information, their credit card, then you can say, “Hey, do you want this extra thing?” “No.” “Okay. Do you want this other extra thing?” “Yes,” and increase that order value pretty easily.

Karin:
Awesome. And we can include all of the links to those recommended software in the notes as well.

Alison:
Definitely. Whew! That was a lot. Kettle & Fire wore me out.

Karin:
That was a lot, but we started with the Tom Yum chicken and I want to try more of their flavored broth instead of just getting the plain old beef broth like I’ve been getting. I’m interested.

Alison:
Oh yeah. I mean, this is like a great little snack though, right? I might start subscribing and saving.

Karin:
Oho! She’s going to subscribe and save. You got in.

Alison:
You got me. You got me. Well, I had a really great time drinking this.

Karin:
Yeah, me too.

Alison:
And talking through it.

Karin:
Yeah. And thank you, Alison, for dropping the knowledge on increasing average order value and how Kettle & Fire is doing an amazing job and we hope to come back soon with more tidbits, marketing tidbits.

Alison:
That’s right.

Karin:
Thank you guys for joining us for the Umai Social Circle. We had such a great time talking about Kettle & Fire and increasing average order value and we can’t wait to talk to you again in a couple of weeks to discuss more consumer packaged goods marketing tips.

Alison:
Umai Social Circle is a CPG agency driven podcast based out of Austin, Texas. We’re excited to share more behind the scene insights chats with industry leaders and whatever else we learn along the way. Follow us on Instagram @umaimarketing or check out our website umaimarketing.com. Catch you back here soon.

 

Sign up below to subscribe to our newsletter and get free marketing guides + how-tos!

Posted on 1 Comment

#4: Shaking up the Market with Pasture-Raised Eggs and Cricket Protein

UMAI social circle cpg podcast

#4: Shaking up the Market with Vital Farms Pasture-Raised Eggs and Exo Cricket Protein

Believe us when we say we’re eggstatic to share this week’s episode. 😬🥚 We chat with Jason Jones, Cofounder of Vital Farms – a company created with revitalized farming methods that prioritize animal welfare!

Not only that, he’s an advisor to entrepreneurs and CEO of Exo Protein (🦗). And, before you ask – yes, we’ve tried their Whole Roasted Crickets! And yes, they’re amazing!!

Let us break it down for you…

[1:29] Meet Jason Jones, Cofounder of Vital Farms!
[3:31] Touching on conscious capitalism.
[4:49] The “Pasture-Raised” difference – how the term and method was created to set a fresh, more ethical trend.
[9:00] Recall how the food, beverage, and wellness landscape looked during Vital Farms’ inception. Were there any other brands created with transparency as a driving value?
[10:18] Transparency sometimes means sharing the dark side of your industry – then, uplifting a positive message with your company’s mission.
[12:44] Logistics! Egg breakage and refrigeration issues. How’d your team troubleshoot fragile packaging? Any tips for CPG brands with sensitive product?
[15:33] Let’s move into your consultation biz. What’re some of the biggest pain points that entrepreneurs experience?
[18:21] Some issues that result in failure for a new business more often than others.
[21:00] What was your background leading up to Vital Farms? Wandering, but not lost.
[28:26] Staying humble – a quick company culture blurb + when Karin met Jason.
[30:28] How’d you end up at Exo Protein? Tackling new marketing challenges when you sell crickets to the U.S. market.
[38:47] Barrier to entry for western consumers – how’re you solving for this today?

Alison (Recorded):
Hey, hey, y’all, Alison here, I wanted to quickly thank you for listening to our podcast. I know you’re about to get a lot of valuable information from it. But I also wanted to hop in and share with you guys a free SOP, which stands for Standard Operating Procedure. We use this SOP every single day in our agency to authentically grow and engage our audiences on social. It is 1000% free, and I’d love for you to have it, and use it in your biz as well. So, just go to umaimarketing.com/engage to go download. All right, cheers.

Alison:
Welcome everyone to the Umai Social Circle, where we talk about CPG marketing to help business owners and marketers alike grow. This is Karin, and I’m Alison, we are the co-founders of Umai Marketing, and today we have Jason Jones. He is an entrepreneur extraordinaire, and CEO of Exo Protein. I added a little flair for you.

Jason:
Hey, y’all. Good to be here.

Karin:
Thanks for joining us, Jason.

Jason:
I appreciate the invite. Good to see y’all.

Karin:
Yeah, so a little bit of a background. Jason and I met while he was the president and co-founder of Vital Farms. This is my first real CPG job.

Karin:
Jason, can you tell us a little bit about co-founding Vital and what those early days looked like?

Jason:
It’s hard to believe it’s been 11 years, I think, since Matt and I, we started the company. So, to be clear, Matt and Katherine had the farm, so they purchased the land in ’07 and had chickens that they had put out to pasture quite literally with the idea of producing a better egg. In late 2008 or 2009, I met them, heard about what they were doing, heard about these birds that were running around outdoors in south Austin, and that just sounded like something that the world needed.

Jason:
So, I met Matt out at the farm, and just loved what they had started there, and we formed a company. And, the meager Jones nest-egg went into the company as our working capital really, for a while.

Jason:
And, we set out to bring that really honest and authentic, very small farming method. We wanted to, how do you keep it small and true to the ethos of high, high animal welfare that centered on the life that that bird got to enjoy in contrast to factory farming, which we’re probably all familiar with by now.

Jason:
But how do we do that and keep it honest, keep it really legitimate on the farm, but scale it up? And, the early days were more humble than you would believe. There was a lot of mistakes that we made, but we really figured out on the farm, what it meant to raise a bird outside.

Jason:
That’s very contrary to pretty much how any other egg at the time was being produced, and found some great partners in different parts of the country where it wasn’t quite so hot and dry, and that worked out well. We were able to find some good partners, some good supplier farms up in the north-west Arkansas area. That’s really the first place we went. And, climate worked out really great, and we found some willing partners who would do things our way, and worked out a model that was really beneficial for them.

Jason:
Karin, you remember, we were always talking about our stakeholder model and that version of conscious capitalism that really, it’s not just all about the profit and the bottom line, and making the shareholders wealthy. There’s nothing wrong with any of that, but business can and should be so much more. And, I think we’re all acclimated to that now, especially in the natural food space. And, here in Austin where everybody seems purpose-driven and mission-minded, we can go sell a lot of product and do well for ourselves. But, we really are making the world better.

Jason:
Anyhow, we tried really hard to embody that from the beginning of Vital, and I give that really purpose backbone that we always worked off of. I give that a lot of credit for the success that Vital has seen, in addition to the wonderful people we had, like yourself, who were part of that crew in the very beginning, and then kind of in the middle bit, and now today in its current incarnation there’s great people walking around who are championing that very important message that we can do better, and we ought not have to compromise the well-being of another sentient creature to get cheap food.

Jason:
And so, it feels good to do that. And really, it’s validating because customers are out there, willing to buy these products and usually pay a little more for them. And, we did that at the right time in the right place with a lot of the right people like yourself. So, it’s been quite a run.

Karin:
Giving me all, saying a lot of nice things. So, Vital Farms really did champion the term “pasture-raised”. It was something that we always, everybody else was cage-free. They were free-ranged. And, what do you think Vital did so right in making it such a huge explosion of the term and a way of raising animals?

Jason:
Yeah, that was a very conscious decision. I remember having a discussion with Matt very early on, how are we going to talk about our product? What is the label claim, or the term, that we’re going to use to talk about this stuff, how the birds get to live, truly, every day?

Jason:
And, it was always pasture-raised because that felt like a term that had not been adulterated yet. You got to rewind 11 or 12 years from where we sit today. The concept of even grass-fed beef was not nearly as prominent as part of the vernacular as it is today.

Jason:
So, we needed a term that hadn’t been bastardized, unfortunately, by larger producers. Cage-free was a thing back then. And, that’s arguably a step up from being in a cage. But still, it’s not a great way to live if you’re a laying hen. And then, there’s free-range, which conjures up a certain, I think, a mental picture for most people until you really get educated on the matter, and you realize that means you have access to the outdoors, but you may not be taking advantage of it, or it’s not really a nice lifestyle.

Jason:
So, pasture-raised, it was really, as of then, it was undefined, and we saw that as, we definitely needed to claim that term and be very proactive in defining it, so education was always, arguably, what we were doing. We were marketing, but we were really educating, not very sophisticated, but we were really honest about it.

Jason:
You know, we were always talking about transparency and authenticity. And, somebody had a question about, what did pasture-raised mean, and we would tell them. And, we got as specific as they would want to. You can’t put all that stuff on your carton, but it needed to be somewhere for the consumer who’s interested. And, we would tell them whatever they wanted to know. We would even talk about some of the less shiny parts of farming. The chickens don’t live forever, that kind of thing. What do you with them when they get some age on them? And, we would just be transparent.

Jason:
And, I think we got a lot of credit for that. But, it was much more about, what does pasture-raised mean that it was about Vital Farms, the brand, in the early days. And, people didn’t really know about us yet. I think today, we’ve advanced quite a bit, although there’s still loads of room for people to be buying better eggs.

Jason:
But, when you’re a new brand, you can do what you can to get your name out there. We had a great logo and imagery, and stuff you were doing on social, Karin, was really getting us out there in a big, big way. But, there’s a lot of people, a lot of consumers out there. And, because Vital Farms wasn’t recognizable yet, we would feature that term, pasture-raised. And so yeah, we definitely were more about, what does pasture-raising mean than, here’s our cool brand. Let us tell you about our sales. It was more, let’s describe, really, this farming method.

Jason:
And, that was at a time when everybody was hungry for more information. Michael Pollan had been writing his books for a while. And, we’d seen some documentaries that were telling us we needed to be more careful about the food choices we were making, how we were voting with those dollars and that kind of thing.

Jason:
And, we were there to meet that education, not starved, but hungry consumer, and take them wherever they wanted to go. And thankfully, I think pasture-raised now stands up as a term. It has not been green-washed or homogenized in any way. I think people see that now. You’ll see it on a carton of milk. You’ll see it on butter and eggs, obviously. And, I think people really do know now that basically the animal got to live like it was intended, running around outdoors at least during the day.

Jason:
So, we were a part of that, I think, not all of it. But, I’m really proud of what we did.

Karin:
Yeah, sorry.

Alison:
No, you’re good. So, I wanted to ask, when was Vital Farms? When did y’all found it?

Karin:
2009.

Alison:
2009. So, when you guys were founding? Wow.

Karin:
Founded.

Alison:
When you founded Vital Farms, were you looking at other CPG brands that we also as transparent as y’all? Or, were y’all carving that path?

Jason:
Yeah, it’s a great question. It was definitely the early days of the industry. And, by this time, in natural CPG, I think Vital is one of the more, one of the pillar brands I would say. There wasn’t a lot of this going on. You had Organic Valley. You had Niman or Niman Ranch, I’ve never actually known how to pronounce that. You got the sense that they were doing things right. And then, they’ve been other brands like Maple Hill up in New York doing really amazing, truly grass fed and pasture-raised dairy.

Alison:
Love their milk.

Jason:
Oh yeah. The cheese is so good. It’s different from the cheese we grew up on. You know something’s different about how that cow is living, which is a good thing, but it’s a different taste profile.

Jason:
But yeah, there weren’t a whole lot of models, honestly. Really, we were focused, we were always very careful, and this can be a tough needle to thread if you’re a natural, organic, better for you food company. You need people, in certain cases, to understand kind of the dark side of what you are an alternative to. And in our case, it was, our chickens don’t live like this. They have it really good. And, if you were a chicken, you would want to be on a Vital Farm than opposed to a big factory situation.

Jason:
But, you don’t want to lead with the negative. You want to have a positive message that talks about the good aspects of what you do. And, it’s tricky. Karin, you remember this. We needed people to understand where most of their food was coming from and what that was like, and then, present a better alternative without having a downer message. I think by that irreverence and bit of a humor that we established, I still remember stuff you were doing with hashtags and stuff, “Put an egg on it”, and stuff like that, it kept it light, but also got people to think, because consumers in the age that we’re in with all the information we have and questions that get raised that maybe 10, 20 years ago just wouldn’t have happened if you grew up eating out of a Campbell soup can like I did. We were there to meet that.

Jason:
And yeah, now it’s everywhere, especially in our neighborhood, or neck of the woods, of the industry here with all of the better-for-you concepts and brands that are getting launched. It’s a great time to care about what’s going into your body, what you’re feeding your family and your kids, and that kind of thing.

Jason:
So, all of us say this a lot. We’re all doing the good work, from the ground up, changing an industry for the better. We’re not depending on some government agency to change a law or something. We’re just putting better alternatives out there for people. And they go for them, once they understand why it’s worth it.

Karin:
Yeah, and I think defining the term, setting really stringent standards and abiding by them and sharing them transparently, I think that was such a huge portion of people’s passion. They believed it. And, little touches, like the Vital Times in each carton, it was like, even while you were growing and the brand was growing, there was still little pieces that made it seem really like small farm. And, I think appeals to a lot of people. Well, being honest too, because the eggs do come from a lot of small farms. So, very cool.

Karin:
I did have a quick question about logistics, and off the marketing, but the breakage, the refrigeration, looking back on it now, with all the brands that we’ve worked with, I’m just like, how on earth did y’all handle that? And, what would be your best advice to an entrepreneur that has glass jars, and they experience a lot of breakage and challenges logistically?

Jason:
Yeah, man, it turns out when you take an egg and ship it across the country, lots of stuff can happen. And, we would have bouts of this where a truck driver just wasn’t careful or maybe the road was icy because they were coming through the Ozarks or something. And, as it turns out, eggs are fragile.

Jason:
The first thing that you’ve got to do is to plan for it. You don’t want to be starting your brand, coming up with your unit economics, and telling a buyer, here’s our pricing, and this is what we will give you in trade-spend. You can’t forget about spoilage of any type, whether it’s, something gets broken in transit, or it gets hung up, or it’s not moving, and it goes out of code-dating while it’s sitting in a warehouse somewhere.

Jason:
You need to plan pretty conservatively, especially when you’re small because you just don’t have the scale to smooth out bumps like that, and they will come. So, I guess the first thing I would say that may sound somewhat intelligent anyway, is just plan for it so that your model accounts for a healthy degree of that, especially in the early days because issues are going to come, and I’ve worked with companies like you.

Jason:
I’ve done a lot of consultative stuff and mentoring younger entrepreneurs or just road-stage companies. And, there’s some unfortunate stories where you know what it costs you, so you come up with what the economics you think are going to be, and this is how much cash you’re going to need to keep it all going, and you didn’t plan for the $80,000 charge back you’re going to get from the big grocery customer if any number of things go south. And, there’s the front end, and the consumer story, and the branding, and all that. And then, there’s the reality of, you can’t run out of cash. And so, planning for that, well ahead of when you’re going to need to get through that batch of broken eggs, or expired product, or your co-man put your labels on upside down, and it’s just going to take three weeks to get it done.

Jason:
Stuff happens. And, that’s just the struggle of needing to have good partners and be able to control your destiny a little bit. It’s just harder to do when you’re small and in the early stages. I don’t know, the first thing you should do is plan for things to be a little rougher than you think they should.

Karin:
Cool, well seguing out of Vital and into your consulting work that you just mentioned. What were some of the biggest pain points of the entrepreneurs that you worked with? What did you just hear constantly?

Jason:
Well, entrepreneurs, especially the more visionary types, they’re their own breed of cat. And, I think it’s really hard for anyone to be a super well-rounded, I guess you’d say leader, where you come up with a concept. You can breathe life into this thing. You can sell the shit out of it, whether it’s to a consumer or a buyer or people online, and then also get all of those nuts and bolts we were just talking about where the rubber meets the road, much less the economics of the exercise. And, you’re out raising money and trying not to run out of it, keep your investors happy, whether it’s your uncle or some equity firm.

Jason:
So, there’s a lot of disciplines going there in this exercise. And I guess, one thing I’ve come up against more than once, is just a founder who birthed something into the world, and it definitely has its place, and they have some level of momentum.

Jason:
But, it can be hard for visionary types to get out of their own way. I’ll say that nicely. And, either take advice about, hey, I can see around this corner, because I’ve been to this movie before. And you should prioritize this and maybe put a little more focus on, getting a good accounting system underneath you, or maybe getting a better co-manufacturer because this one’s totally killing you. It just reads like a book, even though it may not be that clear to you.

Jason:
Rare is the visionary who is also a great operator. And so, that’s advice I would often end up hearing myself say to somebody, is like, hey, it’s time to go get maybe somebody who really, really has moved a lot of stuff around the country before, and not just somebody, a friend or relative, who you’ve put in this position, or an expert in accounting who actually understands CPG, and trade-spin, and the games that UNFI will play with you, and how they extort you this way and that, instead of the guy who’s done your dad’s taxes for the last 20 years. Yeah, he’s an accountant, but he doesn’t understand this industry.

Jason:
So, I guess knowing when to bring in seasoned help in certain disciplines and from the industry, that’s something that it probably takes everybody a while to learn, but, the quicker you do, the quicker you, like I said, can get out of your own way and start delegating to people who actually understand a certain function better than you, because it’s quite enough to be a visionary and put something new out in the world.

Alison:
Have you seen a lot of great entrepreneurs with a lot of product fail because of that in your time as consultant?

Jason:
Yeah, fail, I guess there’s a spectrum of that. I’ve seen a lot where they should be much further down the road than they are. By the way, I’m not trying to come off as some expert who would do everything right or knows all the right moves. I sure don’t.

Karin:
Who does?

Alison:
Yes.

Jason:
Nobody. But, I’ve seen businesses fold, for sure, because you just run out of cash because you weren’t planning well, or you weren’t focused. Another thing that happens a lot, is being so eager to launch your next product line when you have way more room to go do what you’re already doing much more deeply. And, those are things you can get kind of a sixth sense for just being in the industry a while.

Jason:
But yeah, unless you have a billionaire backer who just keeps writing checks, and I’ve actually seen that happen before too, which is, you could argue, equally unfortunate because sometimes, things just need to run their course and get cleared out of the way. But, it usually does come down to the economics one way or the other, and it’s a ruthless game. I don’t think it’s quite as tough as, say, opening a restaurant, where, I guess, what I’ve heard, is 90% of those don’t hang around.

Jason:
But yeah, it’s tough like any industry. There’s lot’s to rope together and get right. And you have to be in a favorable set of conditions. I won’t call it luck, but you could look at Vital. We put this out in the market at perfect time. We were really just ahead of the crest of this wave of awareness and desire for something better. We were also in Austin, so right up the road you have Whole Foods, and then an hour the other way, you’ve got HEB.

Jason:
You’re in Texas, and I was talking about this earlier today, there’s such a pride for whatever it is that makes Texas, Texas. I was talking with somebody earlier who spent a lot of time abroad in the first part of their career, as did I, and we, just saying, you can be in a bar in Roppongi in Tokyo, and somebody hears you’re from Texas, and you got something to talk about, because that’s like its own brand, and even within that, Austin, as we all know.

Jason:
So, not sure where I was going with that, but…

Alison:
So you’re saying, if you have a CPG brand, and you don’t live in Austin, you better get down here quick.

Jason:
One way of looking-

Alison:
…in Austin.

Jason:
We’re not going to mention that city outside of Denver that shall not be named.

Alison:
Yeah, no.

Karin:
It’s where I went to school.

Jason:
You were smart.

Karin:
It’s a nice place.

Jason:
I think I would check that one out too, if I had it to do over again.

Alison:
But, what was your background before Vital? Were you in CPG? Were you just interested in CPG space? Or, what were-

Karin:
We were just interested in chickens.

Alison:
Or, do you like eggs a lot?

Jason:
I just couldn’t get enough eggs in the morning. Maybe, I don’t know, wandering but not lost. I didn’t have a background in agriculture, didn’t really think a great deal about the food space. I guess, my journey, I always knew I would peel off and do something more for myself as opposed to being in a larger company. I guess in 2008, I had been at Motorola, which was a Fortune 50. You’re talking 40+ billion in revenue, 150,000 employees when I joined.

Jason:
And, that was amazing for a lot of reasons, learned so much. It was a great, in some senses, place to kind of come up and cut your teeth. But, I always knew because it’s been in my family’s blood, we’ve always just kind of done our own thing, I supposed, and finished my grad school up in Chicago. And, we just wanted to be in Austin.

Jason:
So, we got down here mainly because we just love the town, and love the vibe and the energy that was here, and we also knew it was friendly for young business. And, that certainly proved to be the case.

Jason:
What I really knew I needed to do differently, was I needed to care about what I was doing when I popped out of bed in the morning. And, in a big, massive company, it’s easy to feel like it doesn’t really matter what your function in your cubicle is. I couldn’t deal with that anymore. It was soul-crushing.

Alison:
Real quick, what were you doing at Motorola?

Jason:
Man, everything because I would get bored. So, I started out in finance. I did audit. I got into a risk management strategy role for the CFO, traveling abroad a lot, which was super cool, especially before family and stuff. But then, I got into supply chain for a couple years. And then, my last role there I was managing the global marketing strategy for mobile devices.

Alison:
Wow.

Jason:
Ah, it’s a fancy, long title. What it meant was, that I was super frustrated because we could all see that smart phone was coming. This was, iPhone launched in ’08, and we just knew that the wrong people were driving there. We were over-engineering products and totally missing what the consumer really wanted. And, a lot of us knew that, but weren’t able to impact it due to the culture of that once-great company, very unfortunately.

Jason:
So anyhow, that really, I guess, teed me up to say, enough of this. I need to control my own destiny more, and I need to care about what I’m doing. I needed to be advancing something important in the world, and I just didn’t feel that was. And so, getting in to Austin was part of another young venture, kind of an international tourism play with some friends. It was doing well, but it wasn’t going to scale quickly enough. And, that’s when, like I said, I met Matt and Katherine and the farm they had started, and I guess, the bones of that brand. And we kind of formalized it and grew it from there.

Jason:
And what I knew was, it’s kind of funny, it was more of a heart decision than a head one. I was that early consumer who was looking for something better, and preferred organic, and this was before gluten-free and all these other nerd badges you can throw on something. But, just being that consumer, I knew there was a place for it, without having any sophisticated market research or anything. We just had a napkin, and on the back of that, showed that, hey, if we get a little slice of this, if people are willing to pay, and we found out very quickly they were.

Jason:
So anyhow, I wasn’t a farmer, but I also wasn’t, I don’t deserve credit for much. Maybe I do for at least being humble enough to have had a really nice, secure, high-paying job and fancy degree from Kellogg and whatnot. But, you fast-forward a couple months, and I’m out kicking around in the dust, chasing chickens around with a fishing net, quite literally.

Alison:
Is that literally how you catch a chicken?

Jason:
The longer the handle on the net, the better because they are fast.

Alison:
Wow.

Jason:
Oh yeah. We went through a lot of nets-

Alison:
Like a pole skimmer.

Jason:
That would have been smart. They were quick, man. We were going to Academy like twice a week to buy more nets. It was ridiculous.

Alison:
Oh my gosh.

Jason:
There was so many stories. But you got to be humble enough to go knock around in the dirt in the 100 degrees and figure out what the hell does a chicken need when it lives outside, especially down here, and go to farmers’ market and schlep your eggs that you’re really proud of. You can’t really be above anything when you want to part of getting something off the ground.

Jason:
And yeah, it just always from the beginning felt really good to be in the food space because we can all relate to it. It’s all, in times of COVID, it’s essential. If there’s anything essential, it’s this. And, to be elevating that and improving, I really do believe, the quality of people’s lives, and health, and wellness, and our consciousness too, depending on what you believe. Nobody would feel there should be more suffering in the world. How about we don’t cram chickens into a, let’s cut off the front of their face, and cram them into a cage with eight of their friends? That’s not a good way to live, and we can do better.

Jason:
And, it’s a cool time to be alive because there’s a lot at our disposal, but let us make advancements in the world again from the ground up, and particularly in the food space. The barriers are low. Anybody can come up with a healthier version of something in their own kitchen, and then take it Wheatsville. That’s a beautiful way to move through the world. And, there’s all kind of rewards out there for us. But, we’re making the world better. I really believe that.

Karin:
I like that. And, I think there’s something to be said about making a business plan on a napkin. I feel like that’s a recurring thing. A lot of great businesses come from a napkin. So, maybe that’s the goal.

Jason:
A good buddy of mine, he’s from Zimbabwe, but he’s been living in London, or outside of London, for most of his life. But, he gave me a book called, “The Beermat Entrepreneur”, and what they mean is like the little coaster that your pint sits on in the pub. But basically, exactly about that. And, I suppose I’ve taken advantage of some of the highest forms of business education, where I got to go to school and things.

Jason:
And bottom line, none of it’s rocket science. There’s formulas and fancy methodologies and models and whatnot. But yeah, it doesn’t have to be super complicated. It certainly wasn’t for us at Vital. The main thing you got to do is put something out there where people are going to really go for it on its own merits. If you’re having to market too hard, y’all probably know this better than I do, to a degree, the product really needs to sell itself. Otherwise, it’s going to be pushing uphill pretty hard.

Jason:
So anyway, it’s neat because we get to tinker around in that space in the food world, and it doesn’t take years or millions of dollars to come up with something great and differentiate it.

Karin:
Yeah, well.

Jason:
And drink more beer, by all means, you’ll be a better [inaudible 00:28:22] person.

Karin:
I love the humble aspect. I remember one thing at Vital, where [inaudible 00:28:29] here. You guys were having interviews, and some guy came in suit, and it was immediately, he was like, no. He didn’t care-

Alison:
Poor guy.

Karin:
…what the guy had to say, it was just like, no. So, true to the roots. True to the farming roots, I appreciate that.

Jason:
Yeah, enough with the-

Alison:
Know your audience.

Karin:
Know your audience. That’s important. One take away from this, know your audience.

Jason:
We thought that guy was going to be too high-maintenance for us.

Karin:
We don’t even remember. [crosstalk 00:29:00]

Jason:
I remember interviewing you. I actually do.

Alison:
What was Karin wearing? Like, overalls? And, I don’t know [inaudible 00:29:07]

Karin:
I had piece of wheat coming out of my mouth.

Alison:
Like, spot on.

Jason:
It wouldn’t have been a bad move. I can’t say I remember that. But, I just remember you leaving, and then, you remember who else was probably in the room. And, we just kind of had a pow-wow after we probably gave you, I don’t know, a dozen eggs and said, thanks for coming in.

Karin:
A six-pack.

Jason:
Sorry.

Karin:
So already, I can tell what you felt about me on that.

Jason:
Times were tough. Maybe we were sold out. Look at it that way. But yeah, I just remember looking around, and everybody was like, she’s exactly what we need. And, of course, you were and helped really take our online presence and really the face of the brand, if you think about it, for probably most people anymore. I don’t know so much about eggs, just categories, certain ones are more, that’s probably a little less prone to D-to-C exploration, but anymore, really the front of your store is online. And, that’s the first exposure most people are going to get to whatever it is you’re offering. And yeah, you’re a big part of the reason we’ve been able to grow Vital and get to where it has.

Karin:
Ay yay, Jason, this isn’t about me. That’s very nice though.

Jason:
It’s certainly not about me.

Karin:
Well, it is. I personally, we’re friends. And I don’t even know how you ended up in Exo. So can you talk a little more about your new venture?

Alison:
Exo Protein.

Jason:
Yeah so, I’m a sucker for something that really is disruptive, I suppose. So, really was neck-deep in Vital, kind of running the whole ball of wax for most of the early years of it. And then, we started bringing on people who were, just had a lot of potential to take the thing forward, probably in ways that I just couldn’t have. And certainly, I was also really tired and kind of worn out. It takes a lot out of you, especially when you don’t have a lot of equity money behind you to go have some of the things that are nice to have when you’re trying to scale quickly.

Jason:
Anyway, I took a bit of a break. And thankfully, things aligned for me to be able to do that. I had missed an awful lot, kind of family stuff. We have three kids by now, and all of those came after Vital. And so anyway, was able to just kind of decompress a little bit and decided, yeah, I definitely don’t want to leave the food space. There was just too much good stuff going on, and my heart is here.

Jason:
So, I would work with in an advisory, or consultative, or mentor capacity, bunch of brands across categories, really learned a ton, and I think, hopefully, had some nice impact along the way. I guess in that period, probably about four or five years ago, I got to know the founders of Aspire Food Group.

Jason:
And, they are Canadian, but they had located the company here for the same reasons that many food companies want to be established here because of the network and other things. Anyhow, their purpose is to solve for all sorts of problems across the global stage. The idea about having access to great quality protein in turbulent times, whether it’s climate, or economics, or population, or whatever, they had won a million bucks in a business competition, that Bill Clinton handed them a check back in, I think 2013, to go explore, hey, can we help feed the world with great quality protein and really rounded nutrition offering through insects?

Jason:
And, they had been hard at work ever since, working out the R&D, and all the manufacturing capability and production. This is new to the world in once sense, at least the way they’ve come across it, in kind of a modular, scalable, very economically efficient way, in a way that had never been done. Basically, they have achieved a great deal in a matter of 5 short years, they have done what probably took the poultry industry 50 to do, and that’s to bring the grow-out cycle, or the life-span, of a mature, in their case, cricket to maturity in basically 30 days, down from 60.

Jason:
And so, they’ve made massive leaps forward from a technological standpoint. And, I knew them to be just amazing humans. That’s something that I, it really matters who you’re doing something with as much as what it is that you’re actually pushing on. The people are everything, and I just had loads of respect for them, just as humans, as well as what they were trying to accomplish in the world.

Jason:
And anyway, about this time last year, I re-connected with Muhammad, one of the founding team, and basically was giving him some advice, how to approach the consumer space. And it just, long story short, sounded like a really interesting challenge that I wanted to put more time into, that involved into me coming onto the Aspire Food Group team as the chief growth officer to basically try to figure out, that really the sales piece, but the consumer piece. It’s one thing to produce all this stuff, and they’ve, we’re the leaders in the clubhouse globally in how to do that at scale with great economics that get it down to where it can compete with almost anything as a protein ingredient.

Jason:
But, the question still remains, and it sounded like a fun one to me to try to figure out, well, how do you convince the Western consumer to go for this stuff? Because there’s obviously that stigma there. And the thing is, there’s tons of really amazing reasons why it does make sense, and I wanted to think about really the marketing puzzle that that presented.

Jason:
And, that’s what I’ve been doing for 9 or 10 months now, with our Exo brand, and we’ve done a ton of very deep, primary consumer insights work that we now have in the hopper as well as our experience of selling the Exo line for years now. And, we’re kind of in this innovation and product development phase where, we’re not out here saying, this is going to be $100 million market in two years. I don’t think it’s there yet.

Jason:
But, we’re trying to be thoughtful about how we can position and then present this in formats, and in a format and brand that maybe make the most sense and can maximize on what we understand the TAM to be, as well as selling it into the pet food market, where that’s not going to be nearly as much of a challenge, and we’ve already done a good job with that.

Jason:
Yeah, it’s a fun one. And, I know it’s a little out there still for some, but we’re going to get you. You’re going to come around to it, just a matter of time.

Karin:
I like them.

Alison:
Tastes like a corn chip. [inaudible 00:35:56]

Karin:
Yeah, for people who maybe don’t know what Exo Protein is, it’s cricket protein. I think y’all have crisps, you have flour, and bars, is that right? Now you’re in that food space?

Jason:
Yeah, that is a good synopsis. We recently discontinued to crispy line, though, which was the actual whole cricket.

Karin:
That’s the one we tried, yeah.

Jason:
Yeah, it was not because people didn’t like it, actually. It was very problematic from a supply chain and production standpoint. And, this is one of those choices you make when you need to focus. And, we needed to focus on stuff we can just make with our powder, or flour, which is just kind of a roasted and ground up. It looks like flour or protein powder. And, we’re not really limited as to how that can get applied.

Jason:
So yeah, we have the Exo line of bars. There’s protein and energy bars, and they’re relatively really high in protein. And, it’s a complete protein. It’s kind of the same protein profile in terms of the full amino stack, all nine of the essentials, as you get in beef or pork or chicken, other kind of livestock-based proteins. But, it’s much, much lighter on the environment and our resources, and so less that it requires as inputs to make a pound of that.

Jason:
It’s also a lot less harmful gasses and things that are the result of the production. It’s kind of the environmental footprint of plants with the nutrition of animals. That’s one way to look at it. And, we’re just trying to figure out what really we should best go do with that in a way that navigates that stigma and addresses it and educates, and there’s going to be a lot, I think, that we learned on the Vital journey that will come to bear here.

Jason:
But, no final answers, yet. But, just telling you, telling you right here, remember this. It’s coming. It will be a thing. It is a viable, very, it’s the most responsible form of protein we can take in. And, our job is to make that in the way we define pasture-raised and animal welfare and quality in that part of the store, this is a viable option that we need to take seriously for ourselves as well as the earth.

Alison:
Yeah, and I’ll tell you, if you just go down to Waco’s Hollywood movie theater, outside there’s a ton of crickets. So, I’m sure.

Karin:
Go harvest.

Alison:
[inaudible 00:38:19]

Jason:
Yeah, send me an address.

Alison:
Okay.

Jason:
Did you go the Baylor? How do you even know that?

Alison:
I’m from Waco.

Jason:
Okay.

Alison:
Yeah. Yeah, well I mean-

Jason:
If you got a pickup, we can head up there-

Alison:
Oh, they would love you.

Jason:
[crosstalk 00:38:37]

Alison:
…y’all to swing by.

Jason:
We’ll get our nets from the first Vital farm-

Alison:
I know. There’re a lot of similarities, between Exo and Vital, it seems like. But yeah, I kind of just have one more question. You talked a little bit about the barrier, I’m sure there’s a big barrier to entry for consumers, especially Western consumers, I’m sure taking into the flour, maybe help. But, what other ways have you solved that challenge, for someone to go try a cricket?

Jason:
Well, I guess one response is, we don’t think we fully have yet, but one thing that you know across food is that, it has to be delicious. So, taste is the table-stakes. And, we’ve been, we’ve had some formulas that we had inherited for the bar line, and we’ve been tinkering with those quite a bit, to improve the eating experience and the flavor as well as the nutritionals and the macros and things.

Jason:
Our protein line is going to be 14 grams of protein and only 3 grams of sugar. So, you get into the space where that’s appealing to people on all sorts of low-carb diets.

Alison:
What does the calorie look like for that? The calorie count?

Jason:
It’s under 200. So, I’m telling you, it’s quite potent nutritional.

Alison:
It’s not going to hurt your tummy, like whey protein in the end?

Jason:
No.

Alison:
It’s a lot better, yeah.

Jason:
Yeah, so cricket powder is prebiotic inherently. So, it’s actually really great for digestion and gut health. And the fiber content is something that’s kind of a bonus. We’re actually getting to be kind of deficient across the board as a nation, I think, with respect to fiber. A lot of people are anyway in the way similar to Vitamin D and some other things, due to the way we eat anymore.

Jason:
So, there’s a fiber, a prebiotic content. There’s more iron than spinach, and great B12 and Omega 3s in all this stuff. It feels not dissimilar to the early Vital Farms days when we had all this crap to say, we need to distill it down in the most cogent way and that’s digestible.

Jason:
But anyway, yeah, it has to taste great. It has to be in a format that is not off-putting. Also, the education obviously is going to be central to, why the hell should I do that? We kind of think of insects in a certain way. And, we’re actually kind of unique on the global stage, or compared to many other cultures across the globe for whom this is already just a very natural food source. If it’s on the planet here with us, and we don’t have to be naked and afraid to take advantage of some humble but very powerful protein here.

Jason:
And yeah, don’t have all the answers yet, but that’s kind of the core of the job. And then, we’re also standing up all of the other stuff you need just as a company to go do things well in the CPG space, both grocery and D-to-C. We’re primarily D-to-C now, but the bars have been in HEB for almost a year and a half now. About a third of the HEBs out there are going to have our protein bars and energy as of this month now.

Karin:
Congratulations. That’s awesome.

Jason:
Yeah, HEB. There’s a Texas connection there, but they deserve a lot of credit. They’re kind of a mainstream grocer, but they’re way better. They’re progressive and very forward thinking, and we just had an amazing call that was so helpful with our buyer just yesterday. We were having some real talk. Like, hey, it would be great if your economics were a little bit better, about the purpose, but you need to provide us the dollars and cents.

Jason:
And so, it’s a good thing we’ve been working to go improve our supply chain and how we manufacture and our cost structure, so that we can have great answers to those questions when they come, because you can be real special, but a slot on a grocery shelf is kind of priceless for that retailer. So really, this comes full circle if you think of a stake-holder model or a consciously, capitalistic way of moving through all this.

Jason:
It has to be good for everybody, whether it’s a farmer, an animal, the consumer. Your HEB buyer. He needs to look good, or she, just in our case it’s a he, but they need to, you got to be careful today. It has to benefit everyone to be viable, or v-buyable. Think about that.

Alison:
I’m mean, we’re huge HEB fans.

Karin:
Love it.

Alison:
And stakeholder model fans. Well, thanks Jason, for joining us.

Karin:
It was fun.

Alison:
It was so nice to hear expertise. Do you want to tell everybody where you can find Exo? Besides HEB.

Jason:
Well, we’re primarily D-to-C, but all your usual online channels, be they our website or Amazon. And, we’re in about 30 HEBs today. We’re in every Cost Plus World Market that there is. They’ve been a great partner as well. It’s actually a really great account that is non-typical, but it’s a really great one.

Jason:
Yeah, a lot of other mom’s and pop’s and stuff, but we’re looking to drive our grocery presence and get that door count up. And, we’ve been doing a lot of work in the online space too to better target folks, and be able to cut everybody good deals for trying what we’ve got. So, hope everybody does.

Alison:
Yep, and they are delicious. So, don’t let the crickets scare you.

Jason:
Yeah, get over it. It’s just food.

Alison:
Get over it already, shoot.

Jason:
That’s probably not a good tag line.

Alison:
Get over it already?

Karin:
Yeah, you don’t need to pay us for that. That’s free advice.

Jason:
Congratulations on Umai, and I know for a fact from just being out there in the space that y’all are kicking tail out there, and it’s so cool to see. You can stand up food brands, you can also stand up companies like what you’ve done. And, you’re to be commended for that. You’re providing a great value, and it’s doing well by y’all as well. It’s a great space, but congratulations on your success there at Umai, and keep doing what you’re doing. It’s going to be fun to see how y’all track as well.

Alison:
Yeah, thank you.

Karin:
I mean, hey, you get a lot of credit for starting this.

Alison:
Yeah, I know. All those lunches. We owe you lunch again too, probably, once this is all over.

Jason:
Could we get arrested for going to a restaurant?

Alison:
Probably.

Karin:
I know. We’re sitting very close to each other right now.

Jason:
Yeah, I may call the authorities.

Karin:
Be safe. Stay safe out there.

Jason:
…headset.

Alison:
Yeah, we disinfected it though, so we’re clean.

Jason:
Thank you all for having me. I sure appreciate it.

Alison:
Thank you.

Jason:
Yeah, enjoyed it, and congrats.

Karin:
Thanks, Jason, we’ll talk to you soon.

Alison (Recorded):
Umai Social Circle is a CPG, agency-driven podcast based out of Austin, Texas. We’re excited to share more behind the scene insights, chats with industry leaders, and whatever else we learn along the way. Follow us on Instagram at Umai Marketing, or check out our website, umaimarketing.com.

Alison (Recorded):
Catch you back here soon.

Sign up below to subscribe to our newsletter and get free marketing guides + how-tos!

Posted on 2 Comments

#3: Siete Foods Mukbang, How They Nurture a +300k Community of Engaged Followers

Siete foods podcast episode cover image
UMAI social circle cpg podcast

#3: Siete Foods Mukbang, How They Nurture a +300k Community of Engaged Followers

Y’all are in for a literal treat this episode! It’s this duo’s first mukbang: chip and dip Siete Foods edition. 

Alison and Karin taste test Siete Foods Spicy Blanco Cashew Queso with Grain Free Tortilla Chips (Sea Salt & Jalapeno). Then, break down the brand’s mission to better understand why their sizable Instagram following is soo engaged.

Let us break it down for you…

[1:03] Today’s mukbang product is Siete Spicy Blanco Cashew Queso! Initial thoughts, branding, ingredients.
[2:50] First, it’s time for a taste test.
[5:50] Before this, picking up Siete Foods from Whole Foods.
[6:18] Then, we take a deep dive into the greater Siete Foods brand! How’d they get their engaged, devoted audience – stellar following AND engagement (an honestly rare combo).
[9:37] Customer delight in the comments section + how our agency engages.
[13:45] Positive impact of leveraging user-generated content on their (and your own) Instagram feed
[14:29] Showing up through IGTV During times of COVID-19 getting on the IGTV!
[16:48] Posting more than just product photos – maintain authenticity and leverage software (our recommendations).
[19:20] Messaging buckets in action. Problem-solution minded approach.
[20:25] Supplemental content on Stories and how it turns a brand into a family that you want to be a part of.
[23:03] Touching on influencer partnerships and a memory from Expo West.
[28:41] Beautiful content, specifically photography created in house. Duping that content for retail advertising.
[30:15] Finally, the use of witty copy across the board. If you’re a fun brand, be fun and funny!
[32:00] Wrap it up – take the elements that would work for you (and your brand) and implement them TOMORROW. Piece by piece.

Alison:

Hey, hey y’all, Alison here. I wanted to quickly thank you for listening to our podcasts. I know you’re

about to get a lot of valuable information from it, but I also wanted to pop in and share with you guys a

free SOP, which stands for Standard Operating Procedure. We use this SOP every single day in our

agency to authentically grow and engage our audiences on social. It is 1000% free and I’d love for you to

have it and use it in your biz as well. So just go to umaimarketing.com/engage to go download. All right,

cheers.

Alison:

Hello everyone. Welcome to the Umai Social Circle. I am Alison.

Karin:

I’m Karin.

Alison:

And that’s Karin. Today, we are doing a little taste test. We are tasting Siete Foods’ Cashew Queso and

Spicy Blanco. I’m not going to lie. I already ate probably the majority of mine, but that’s okay.

Karin:

Yeah. And I know… So Alison and I have the exact same cashew queso. But for some reason our lids are

different, but I’m sure they just ran out of blue lids and had to put white lids on. But, it’s smells. I mean,

it smells like queso, it has that tomato-y spice smell that comes with any cheesy queso.

Alison:

Smells good. Also, can we just talk about how cute this is? All Siete branding is amazing. They really play

into the Mexican culture, use a lot of colors and it just kind of makes you want to grab it off the shelf, no

matter what product. I’m also having some of their chips too, and just, it’s all colorful and bright and

definitely not boring, which I like.

Karin:

Absolutely. I mean, if I was in the aisle and I was looking for a vegan queso, I mean, even if I didn’t know

what the Siete brand was all about, the packaging just is going to immediately draw me in.

Alison:

Yep. It’s fire. And also, we had talked about this a little bit before the pod, but it’s blowing my mind, the

ingredients in this queso, so number one, first ingredient’s water, then cashews and then it has your

tomatoes and onion, green pepper, but basically you’re hydrating when youKarin:

Yeah, first ingredient’s water. That means it’s okay that you ate the whole jar already right?

Alison:

Because I’m about to finish it. Okay. Let’s dig in.

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 2 of 14

Karin:

Yeah, let’s try it.

Alison:

I’ll pretend like it’s my first time. (silence) So it’s nutty, it’s cashew obviously. So you kind of get the

nuttiness, slight queso taste, but really, to me it’s not… It’s like another dip. It’s not a queso, but I love it.

Karin:

Yeah. It’s delicious. I mean, how… So, full disclosure, I am not vegan. I don’t eat a lot of vegan foods, so

I’m not sure how the nutritional yeast plays into giving it that cheesy texture and flavor. So I don’t really

know what that’s supposed to taste like, so yeah, I completely agree. It tastes like dip. It’s delicious. If

someone had this in a bowl at a party, I would be eating it just like it was a bean dip, even though it’s

not beans.

Alison:

It’s also paleo, gluten free, vegan, grain free, dairy free, soy free, justKarin:

It’s delicious. Yeah. I don’t like using the phrase, “guilt-free,” I don’t because guilt should never be a part

of eating.

Alison:

Oh my gosh.

Karin:

But it’s just like, I could eat this whole thing and really not regret a second of it.

Alison:

[inaudible 00:04:15] I did it. No ragrets. Yeah. Really great. I always wonder if you’re a truly vegan and

have been your whole life and never tasted a queso, I’m sure this is it for you.

Karin:

Right? And I mean, the texture, when you come in right out of the fridge, it’s a little bit thick, but heating

it up, they said, “Use a saucepan,” I used a wide pan. So it would heat faster and be more even, and it

really did come out a little bit more liquidity, but still really thick. So I mean, if you can make some

nachos out of these, some vegan nachos.

Alison:

I did see on their stories yesterday that one of their customer delight specialists that, they all get on and

do stories, which is really cool, did a avocado toast topped with some queso, yeah. It looked great.

Karin:

I like that. I mean, it’s not spicy, sorry.

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 3 of 14

Alison:

I’m getting a little… But again, it could be my chips.

Karin:

Yeah. You’re eating the jalapeno chips. I’m eating it with just their grain-free sea salt tortilla chips. And

it’s not coming through, not even a hint of spice. I mean, it’s delicious.

Alison:

Yeah, but not spicy. It’s more for us regular [inaudible 00:05:36] who can’t handle… I’m like, “This is

perfect.”

Karin:

A lady at Whole Foods… So Allison and I went to whole foods to pick this up and she was navigating us

to the refrigerated section, the vegan refrigerated section, plant-basedAlison:

Great point, it’s refrigerated. Your other run of the mill quesos are on the shelf, all those preservatives in

them.

Karin:

So she told us where it was. She showed us where it was. She told us that Spicy Blanco was her favorite.

And she said that she wasn’t a fan of spice and that she loved it. So thank you for the heads up Whole

Foods employee.

Alison:

Yeah. Very helpful. All right. So today we’re not just eating on camera or podcast for you. We love Siete

brands. They are local Austin, but they go well beyond Austin. I think most people are aware of them.

Great products, great brand, great culture. So today we’re going to talk about how they were able to

build such an engaged, devoted community, because their community is just fire. So we’re going to do a

little deep dive and get in there and give you some tips from what Siete’s done on how you can apply it

to your own brand.

Karin:

Yeah. So we are going to be focusing on how the brand was able to build such an engaged, devoted

audience. Not only do they have hundreds of thousands of followers on Instagram, it’s really the

engagement that those followers provide for them that impresses us so much, impresses everyone. I

mean, this is a brand to aspire to. And it’s one that we always look to for inspiration. And when it comes

to the content, when it comes to the visuals, it’s just something… It’s just really well done, right? So first

off I think that the biggest way that they were able to really… To begin with Siete, seven, it’s

representative of the seven family members, the Garza family that created the brand. And I think that

speaks volumes, right? So the bird, we found out is a heron and in Spanish, I believe Garza means heron.

Alison:

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 4 of 14

Right. It translates in some way to Garza. So it’s all about family from, I mean, asset number one, it’s

kind of like their foundation.

Karin:

Definitely. And on their mission page, it always mentions family first, family second, business third. And I

think that that is immensely prevalent in all things that they do in their marketing. I mean, when they do

their commercials and their videos, the family’s there. It’s all of them, it’s not hired actors. So I think that

that’s a very, very beautiful touch that is seen throughout their marketing.

Alison:

Right. Even on this queso, and I’m sure it’s on some other, yeah, all the products, is they have this abuela

approved stamp. It’s right next to their gluten free certified stamp, just a nice little trademark touch. It

makes you feel warm and cozy and you kind of think of this abuela, your old grandma just like beating

you or something like that. And that’s how it feels to eat their products, which I love, so very prevalent.

Karin:

Yeah, I love that [inaudible 00:09:04]. And their slogan, their tagline, [foreign language 00:09:08], sorry

about my pronunciation. Truly, truly sorry. But it means, “Together is better.” And I don’t think that is

only their family. I think that does extend to their overall team. I’m sure they’re all family, but not blood

relatives. And I like how you said that their customer support team is on the stories, that they have free

range to just get on the stories, to share what they’re eating, to share what they’re doing.

Alison:

Right. Yeah. And that, that brings to a next point. If you look at their team page, it’s stacked, there’s

seven people whose job is customer delight, which just goes to show you how much they value making

their customers happy.

Karin:

I think that’s incredible. I wonder how many of them are actually doing the community engagement on

Instagram, right?

Alison:

Yeah. Because it’s a lot.

Karin:

It’s a lot. Yeah.

Alison:

It’sKarin:

They’re responding to absolutely everything.

Alison:

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 5 of 14

Right. Every single thing. And that’s one thing that… I mean, what do you say, Karin, would you

recommend a business owner to, I guess not an owner, but someone from a brand to respond to every

single comment? How important is that on social?

Karin:

I mean, hopefully everybody that’s listening knows how important it is.

Alison:

We got doggies.

Karin:

We got dogs and they have new bark collars and they’re dinging.

Alison:

Are they noise or vibrator ones?

Karin:

It’s vibrating, yeah. And it’s dinging, you can hear it. Yeah. I mean, it’s incredibly important to respond to

everything, positive comments and honestly, more importantly, negative comments. We’re huge

advocates of, if there’s something that’s super customer related, customer service related, like I got this

bag of chips and they were all crushed or I got this bag of chips, and I know that they get that, I’m sure.

Karin:

Or it’s almost empty. We want to navigate you to actual customer service on email to get it off of your

social platform. I don’t know what Siete does, if they handle it internally, on the platform or in DM’s, but

what we would do and what we do for our clients is to push them to email customer service and to take

care of them thereAlison:

Get the negative off the front facing things, right?

Karin:

Yeah. Especially if you’re running ads, you want to spend money running ads and serving ads to people

that are going to see these negative comments in this comment section. It doesn’t make any sense. So I

think it’s incredible that you can see… I mean, this one has 70 comments on it and they are all being

responded to. It’s not like they’re just liking the comments. They’re taking time to say words to these

peopleAlison:

Right. So it’s beyond just customer service. Someone comments something back, and they’re at least

saying, “I know, right?” They’re engaging and they’re being witty and fun with these people. So it goes

beyond customer service where, I mean, it ties back to being a community. That’s how you feel if you’re

commenting and interacting with Siete.

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 6 of 14

Karin:

Absolutely.

Alison:

Something every business can implement… I mean, it’s not easy, it takes work to get in there and

respond to everyone and think about what to say, but something that anyone can do.

Karin:

Right. And so what we do internally is every morning we sign on for our clients and make sure that every

comment that we have missed from Instagram, from Facebook to Twitter, to DM’s across the board,

that we’re properly engaging with them, that we’re interacting with them. And then we’ll do it

throughout the day. But if we can’t do it throughout the day, we make sure to at least do it in the

morning and the last thing we do before we sign off for the day, because we want to be able to provide

really exceptional customer service and get back to people with any questions they have or praise or

anything like that. And then, most importantly, I think it puts your finger on the pulse of what people are

resonating with, what people really like, what issues are arising. So yeah, I think the community

engagement is so, so key. And that’s how you grow your brand online.

Alison:

Right. Let’s talk about their other themes that you’re kind of seeing, because I mean, it helps, it

obviously helps that they’ve got beautiful branding, full of tons of colors. So their feed is just wow. You

get there and you’re already having a fun time just looking at all these beautiful photos, but what else

are they doing on here?

Karin:

Yeah. I mean, well, going backwards really quick to all of their beautiful photos. It’s like most of these

are user generated. It’s insane. All of them are by really incredible influencers and content creators,

making these gorgeous, stunning photos for them. And I truly wonder how many, if any, are paid for.

Are all of these organic and it’s just love for the brand? And obviously it’s really awesome to get a shout

out on a platform that has 340,000 followers.

Alison:

Heck yeah.

Karin:

But yeah, I think what an incentive to grow a community, not just sales, but literally free content. So

other things that we’re seeing… So during times of COVID, we’re seeing this, Juntos at Home, is that?

Yeah. And they’re bringing people on to IGTV to educate and share, and we’re seeing a lot of brands do

that, but this is super branded, super clean. It kind of makes me think. I’m like, “How do they do it so

seamlessly?” Even when it comes to the cover photo on stories. It’s perfect how in the feed in their 1000

X 1000 dimensions, you can see a beautiful, clear, crisp, bright photo with Juntos at Home. And then

when you click through to that IGTV, the touches of the borders that they put on top and bottom to

make it even more beautiful and branded, but not messing up what’s happening on the feed, it’s just

super thoughtful. Whoever’s doing this is so thoughtful.

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 7 of 14

Alison:

Yeah. That’s a big thing that we struggle with too is you want your feed to stay beautiful and what’s the

word I’m looking for?

Karin:

Curated?

Alison:

Curated, right. But you also want to educate in different ways. So I mean, I would definitely, like you

said, look to Siete Foods and see how they did that because it does… It looks seamless. But another

thing that’s great about the Juntos at Home is… Okay, first of all, it’s playing into their tagline, [foreign

language 00:15:54], and then during Coronavirus, that might’ve been an, “Oh shit,” moment, [foreign

language 00:16:03] is obviously not what you want to be doing during Coronavirus, but they spun it in a

way that perfectly resonated with the times and their brand, “Together at home.” Such a great… Yeah.

Karin:

What a pivot. And it’s just so well done, right? It’s it doesn’t seem like it’s grasping, you’re not grasping

for this. It’s very organic, if you will. And judging by the amount of views that are on it, it looks like it’s

resonating with people.

Alison:

But also, I mean, I know you said you do want it to be well done, but I think a lot of brands are scared to

show that inner side or behind the scenes and things like that because it’s not always picture perfect,

nice. So Karin, what would be your suggestion to help some a smaller brand, who’s not Siete yet, post

more than just product photos?

Karin:

That’s such a good reminder. Honestly, sometimes I get lost and I’m looking at this and I’m like, “It’s so

well done. It’s so beautiful. How can we do this?” But it is so important to remember that smaller

brands, where the CEO is running everything, the social, fulfillment, logistics, sales, and it’s not feasible.

So I would say, try and be as authentic as possible because I mean, you see it too Alison, in ads.

Sometimes the most beautiful studio photo does not perform as well as the user generated content. So I

would say, just try and be as authentic as possible and use software to your advantage. So find tools and

software that work for you and are in your budget and create really beautiful content that way.

Alison:

So what would be a good piece of software? What is affordable? Later is one.

Karin:

So personally, I would figure out a good photo editing software. So whether that’s VSCO or it’s

Afterlight, there are so many out there at different price points, but those, I would say are my two

favorite for editing on my phone, outside of the Adobe suite and Canva, I feel like Canva’s super popular

because it’s so easy to use and it’s not very expensive. And you can lay in your logo, you can lay in your

brand colors and templates and create templates. What softwares you like?

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 8 of 14

Alison:

Well, mostly I’m doing ad editing. If y’all don’t know, Karin is our organic guru, we have the Adobe suite

so it’s not very fair. I use the Adobe Spark app, which is amazing. I highly recommend that. And then

other than that, I’m using video editing apps. One I use is Splice, and it’s free, but yeah. And then in

terms of scheduling, I think Later would be a good beginner scheduler. I’m trying to think what else,

because like you were saying, if you’re a business owner and you’re trying to do 500 other things, you

need to get your content scheduled out so that you can go on and focus on getting your product into

retail stores or what have you.

Karin:

Right. So we always preach about the messaging buckets. And when you’re thinking of your content

strategy, focusing in on those messaging buckets and then providing your consumer with a solution,

right? So you’re gluten intolerant. You need to find really flavorful foods. You miss all those foods that

you used to have. Okay, well, these are the foods we provide that are gluten free. This is how you can

eat them. This is what you can make with them. These are fun, different ways to use them and playing

off of your mission, why your brand is what it is. And with Siete, their mission is to bring Mexican

American foods to the table, I believe. I’m going to actually look at their website to say that. So “Boldly

build the leading healthy Mexican American food brand,” and with the togetherness and the community

and the family aspect as a leading driver of that. A lot of their Instagram honestly, is really beautiful

food, which brings you in. But the supplemental community content is whatAlison:

It keeps you there longer yeah.

Karin:

Yeah. And it’s the most impressive.

Alison:

Totally. So the Juntos at Home, we love that. Siete Scaries, have you seen that one?

Karin:

So I’ve seen those in real time, in real time on their stories, but it looks like they have a highlight on

Instagram about it, but it’s literally their team members scaring each other, which is the most delightful

thing. It has nothing to do with the product.

Alison:

It brings me so much joy.

Karin:

Yeah. But in all reality, it really does have everything to do with the product. It’s them enjoying each

other’s company. It’s the communityAlison:

They’re a family. Right.

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 9 of 14

Karin:

They’re a family. I think it’s so… It’s entertaining and right, social media is supposed to be educational

and entertaining and they have that down, for sure.

Alison:

And it makes you feel like you know them. I mean, yeah. All ties back to family first, family second.

Karin:

And the same with their, they have this workout. They have a huge workout room at their office and

they’re always doing these team workouts together. And it’s just all those behind the scenes that

literally have nothing to do with the brand or the food. It’s just helping bring people back into the social

platforms and engaging with them. It’s fun to say like, “Hey, I see this one girl on Instagram all the time,

she’s on their marketing team. Is that who I’m talking to?” When I comment with them. You’re talking to

humans, right?

Alison:

Yeah. It creates super fans for sure. And Karin and I were talking, we want a tee shirt. We want a Siete tshirt, a hat, whatever we can get, because we’re super fans now. I mean, we love the food. We love

what you’re doing on social. Everything’s just curated and beautiful, but it’s also fun. So I mean, that’s

what they doing.

Karin:

And I mean, we can’t lose focus on how important branding is, too. I feel like sometimes we have small

CPG businesses coming to us and wanting to work with us and their packaging, their website, not

everything is tightened up and it’s not something that we personally would purchase. And I think that

that is very vital in how you think about marketing as a whole. You have to make sure that that branding

is on point to begin with, obviously that the product is on point and then everything else will fall into

place with the right tools and the right work and the right levers being pulled. ButAlison:

There’s still some foundational steps, right?

Karin:

Yeah.

Alison:

Right.

Karin:

Cool. So I think another way that is just so impressive with Siete, is their influencer partnerships. I have

no idea what their program looks like. Everybody’s influencer program looks different, but I just

remember at Expo West, maybe two years ago, I was walking the floor with a micro-influencer andAlison:

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 10 of 14

Oh, look at you. You’re famous by association.

Karin:

And we were passing this Siete foods booth and we literally could not get past. We couldn’t get past, it

was stacked to the brim.

Alison:

It was full? Wow.

Karin:

It was full, I’m talking 30 people in front of this booth. And if you’ve ever to a trade show like that, you’re

just trying to get like five to six. You’re trying to build this buzz, but it was just stacked. I couldn’t even

get past, she ended up knowing half of the people there because it was all influencers. There were all

these social media influencers, talking and laughing and hanging. Yeah.

Alison:

And the influencers were just flocking to them.

Karin:

They were just hanging there. Well, and IAlison:

That is not that easy you guys

Karin:

No, no, it is not that easy.

Alison:

Not normal.

Karin:

This is not normal. It’s incredible. And we can talk about it being incredible, but this is not normal. And a

lot of legwork had to go into getting there. Again, going back to the community and building it. But I

have no idea how they do it. One of our favorite Instagrammers, The Defined Dish, such a great

cookbook, such a great Instagram. She is the biggest Siete Foods advocate. I mean, her pop socket on

her phone is a Siete Foods, pop socket.

Alison:

Is it really? I saw her redo a healthy Taco Bell Crunchwrap Supreme, but with all Siete products, and that

was life changing, so. But how do you think… Do you think that they reached out to her because she’s

big time. Are you able to tell what maybe their influencer program looks like, just from the front facing

things?

Karin:

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 11 of 14

I mean, I wish, I feel likeAlison:

Tell us, Siete.

Karin:

I know, tell us, yeah. I feel like this must be… Well, number one, it’s a longterm relationship. I do not

believe that what they’re doing has short term relationships. Like for instance, some brands will partner

with somebody who’s… They’re like, “Yu have to post three times, it’s going to be $2,000. This is what

you say, hashtag ad.” That is not what they’re doing. And there’s such a benefit to that because of what

they’re building. So I don’tAlison:

I think it’s beyond just the business. Here’s the bullet points, here’s what you get paid. It’s more…

Maybe they’re, they’re just sending product to continue the relationship after the business part is done

orKarin:

Yeah. Maybe that’s what’s happening. Maybe they’re doingAlison:

It also helps to have a great product, again.

Karin:

Again, yeah. So I’ve noticed in the past that they would do these retreats, where they would invite a

bunch of influencers then they would have these backyard dinners and concerts, here in Austin in their

office quarters. And I assume that they paid for them to come, paid for all of that jazz and gave them a

super Instagram worthy space that they would share. And maybe afterwards they just provided product.

I don’t know. I’m assuming. And I shouldn’t assume, because I literally have no idea, but something that

we do with our influencer programs is starting off with just engaging as much as possible with these

people and actually making sure, one, that they are an influencer that you want to work with, that has

the beliefs in food as you do.

Karin:

If you’re a food product, I don’t think they’re going to be working with anybody that is posting about

Burger King all the time. And follow them, engage with them, DM them, create a part… Not a

partnership yet. Create a friendship, create just a relationship in general that’s beyond you just trying to

shove your product down their throat. And then following up later, once that relationship has been

established and saying, “Hey, we love what you do. I think you’d love our product too. Can we send you

some for free to see what you think,” and then going from there, right? It’s like, if they love it, they’re

going to reach back out.

Alison:

It is a long game.

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 12 of 14

Karin:

It’s a long game. Oh man.

Alison:

And it is a lot of work. It’s a long game, but it’s worth it. Do you think with a Siete, the parties that you

saw in the past, were those mostly micro influencers? Because Defined Dish is big, but do you think they

were focusing on like smaller groups of influencers?

Karin:

No, I don’t think… I mean, different people have different definitions of micro and macro influencers.

And I honestly don’t know the exact definition, but in my head I’m like, “Okay, micro influencers are

people that are under 40,000 followers and above that, they’re more macro.” And I know that’s

different for everybody. Some people will say, “At a million followers, you’re a macro.” So I think that

most of them had more than a hundred thousand followers. They were super Salish and they have… It’s

like this tight knit community of mostly, honestly women. And they all know each other, they all work

together on the same brands.

Karin:

And if you get one of them on board and really loving your brand, I think it’s really possible for them to

introduce it to their friends. And I think last, but not least, when it comes to how they’ve been able to

build such an engaged and devoted audience, is their content being so beautiful and entertaining. But I

do know that they have somebody working internally. I think it’s their creative director. He’s not just a

photographer for them, but their creative director. He used to be a photographer for The Ellen Show.

And his work is just incredible. If you go into their Instagram and you see their Kroger announcement,

it’s not like other retail announcements that you see. It’s so beautiful.

Alison:

It is.

Karin:

Look how well done that is. And that’s professional level stuff. And again, this doesn’t happen. That is

not normal.

Alison:

Yeah. They’ve got a talented team that they’ve built, that’s for sure.

Karin:

Yeah. So for our clients, when it comes to retailer announcements, obviously you can put their logo on a

photo of the product, but a nice touch is going to the retailer, going outside and taking a photo or a

boomerang of your product in front of the retail face. And that’s always a great announcement. You can

use it in ads.

Alison:

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 13 of 14

Yeah. That’s the most simple way and it’s effective. Siete has taken it to the next level. So what’s new.

And then other than that, I mean, I know we’ve hit a lot on their content, but I just have to do a quick

shout out of how fire their copy is, likeKarin:

Oh my gosh.

Alison:

It’s witty. And it’s very difficult, especially if you’re trying to get four to five pieces of content out a week,

to be witty all the time, talking about the same few products. So if you’re a funny person, that’s great.

I’m happy for you because it’s so fun to read their copy.

Karin:

Yeah. And honestly, I think you saved the best for last. Their copy is honestly one of my favorite things

about their social media and it’s notAlison:

I’m just LOL-ing reading it right now.

Karin:

It’s not easy to do at all. And I remember looking at this years ago and being like, “How are they going to

keep this up?”

Alison:

Yeah. Seriously. Okay, I just have to give this example. So we were talking about the healthy Siete

Crunch Wrap Supreme. This might be a photo that… Oh, looks like someone else. So I think the divine

dish started the crunch wrap, but now everyone’s creating one from Siete products, but their caption,

“How much munch would a munch crunch munch, if a munch crunch could crunch much?” It’s so good.

And then it goes on, but oh man, I just love that.

Karin:

It’s just, I do not understand how you can create so many puns and I’m really imagining this person,

whoever this is, to just be, spitting this out. Just quick, so quick and just fire every time.

Alison:

Pretty impressive.

Karin:

Yeah. So to close it out, this is a brand that we admire greatly. We think that they’re doing such amazing

work. And I think it’s important for small to medium sized CPG owners to look at brands like this and get

inspired and get hyped because they could be doing the same thing someday. And knowing that they

might have crazy resources that the average business owner does not have, but you can take elements

and use tools and software and friends and family and do your best to create something similar.

This transcript was exported on Sep 08, 2020 – view latest version here.

UMAI SOCIAL CIRCLE_V1_AUDIO ONLY (Completed 09/04/20)

Transcript by Rev.com

Page 14 of 14

Alison:

That’s such a good point. Don’t let this discourage you. Take the elements that you can implement

tomorrow. Engage, commenting back on every single person. I mean, that’s huge on its own.

Karin:

Can you get your face onto your stories more often? Can you talk to your consumers, talk with them,

instead of at them.

Alison:

And share your mission in everything you do, make that super prevalent because people that resonate

with that mission are going to love everything that you’re doing with it. So should we close this out with

a cheers? A queso cheers?

Karin:

Yeah. Let’s do it. I’ve got to open mine back up.

Alison:

I’m empty, so… There’s crumbs at the bottom.

Karin:

All right. Thank you, Siete, for the product.

Alison:

Cheers.

Karin:

Cheers. Umai Social Circle is a CPG agency driven podcast, based out of Austin, Texas. We’re excited to

share more behind the scene insights, chats with industry leaders or whatever else we learn along the

way. Follow us on Instagram, @umaimarketing or check out our website, umaimarketing.com. Catch

you back here soon.

Sign up below to subscribe to our newsletter and get free marketing guides + how-tos!

Posted on 2 Comments

#1: Our Founder Story, How Karin & Alison Met

UMAI social circle cpg podcast

#1: Our Founder Story, How Karin & Alison Met

Hey y’all! The day is finally here. Our Umai Social Circle podcast has launched with episode 1.

Alison and Karin sit down together to share their backstory. A series of jobs throughout their early twenties evolved into the food, bev, and wellness marketing agency that you know today. Let’s just say some eggs were indeed cracked to make this omelet happen, but (in hindsight) we’re so glad it all happened the way that it did. 

Let us break it down for you…

[1:00] Welcome, y’all!
[1:55] It started in Austin. Specifically, at a high-end dress shop.
[3:00] Alison’s journey. She made her own prom dress – from Halloween fabric??
[6:55] Karin’s journey: from high school to Craigslist.
[10:50] Vital Farms. How Karin fell in love with a mission-based brand.
[13:12] Peace out! Alison heads to Vietnam. Getting scammed, but makes it *snap, snap* in advertising.
[15:40] A quick reconnection! 
[17:30] More on Alison becoming an eCommerce + education ninja.
[20:20] Karin parts ways with Vital Farms.
[22:27] Jason Jones, Cofounder of Vital Farm swoops in for some very timely career advice.
[23:30] “Go your own way!” so Karin did.
[25:47] Alison is not digging the 9-5 life and Karin’s like, “You. Me. Let’s start an agency of our own.”
[28:56] What’s our agency like today? How does our team jive?

Alison:

Hey, hey, y’all. Alison here. I wanted to quickly thank you for listening to our podcast. I know you’re about to get a lot of valuable information from it, but I also wanted to pop in and share with you guys a free SOP, which stands for standard operating procedure. We use this SOP every single day in our agency to authentically grow and engage our audiences on social. It is 1000% free and I’d love for you to have it and use it in your biz as well. So just go to umaimarketing.com/engage to go download. All right, cheers.

Alison:

All right. Hey everyone. Welcome to the Umai Social Circle. Today we are talking about the Umai backstory. It’s Karin and I’s story of how we met. We like to call this the Umai backstory that nobody asks for, so enjoy.

Karin:

You didn’t ask for it, but we’re going to give it to you.

Alison:

It’ll be fun. We promise.

Karin:

So it all started way back when. It was my first job out of college. Was it your second job out of college?

Alison:

It was my first job, but I interned before that for free, for no money.

Karin:

Right, yeah. This was… Yeah, back in the day when you didn’t get paid for your internships.

Alison:

And you were happy about it.

Karin:

Yeah. Yeah. You were stoked to have the opportunity. So… But we pay our interns, so just side note.

Alison:

Yeah. We’re not salty at all.

Karin:

So this all started at a little place in Austin, filled to the brim with pageant and prom dresses.

Alison:

With rhinestones and sparkles.

Karin:

With lots of sparkles. I would find rhinestones in my shoes when I came home. That only happened twice. It’s not like it happened all the time, but… So yeah, we were there selling prom dresses, selling pageant dresses, and we really bonded over that.

Alison:

We definitely didn’t fit in, which is… It was nice to have someone else that didn’t quite understand why, the why behind pageants, so that was nice. But yeah, Karin, did you even go to prom?

Karin:

Yeah, I went to prom. We had a junior and a senior prom. I went to both years of prom, had a blast. Don’t remember much of it, but it was a good time and I remember picking out my dress, and… Did you go to prom?

Alison:

Yeah, I went to prom. I went to prom both years too, and my senior year, I designed my own prom dress at that point. Yeah, I designed it and then my mom sewed it, because I had to be different in every single way. Like I had to… I don’t know. I couldn’t follow the rules. I’d get sent to the principal’s office because I would… I couldn’t-

Karin:

You got sent to the principal?

Alison:

I couldn’t follow any of the rules, and so that was one of the things I wanted to be different. So I chose my fabric from Joann’s Fabric, and it was Halloween fabric. So my dress was made with Halloween fabric and I loved it. I thought it was the coolest thing, and I’m pretty sure I looked really good. Time will tell, but…

Karin:

Well, the thing is, when you say things like that, you have to follow it up with evidence. I need to see the proof of that.

Alison:

Yeah, we need to…

Karin:

Was it like… Because in my head I’m like, this is like a spider web, it’s black.

Alison:

Mm-hmm (affirmative).

Karin:

What? Oh gosh. [inaudible 00:04:13].

Alison:

Well, yeah, it’s not a spider web, but it was black and gold and it was more of like an ode to Halloween. I was really impressed with the fabric that Joann’s was carrying that year, so…

Karin:

Shoutout to Joann’s in Waco, Texas. Sponsor us.

Alison:

Exactly. So anyways…

Karin:

Oh, I can’t wait to see that. Oh, so it was kind of like you were meant to work for a prom dress designer because you had the experience. Did you put that on your resume?

Alison:

Oh my god. Did I put, designed my own prom dress? No, I did not. Really, so I interned in La La Land.

Karin:

Ooh, fancy.

Alison:

That’s LA for y’all that don’t know. I interned for a showroom. It was called Open Showroom and it was really cool streetwear. We styled local rappers and artists, and it was so cool. I also didn’t really fit in there either, let’s be honest. I tried.

Karin:

I know in your head, you fit in there, and I like that.

Alison:

And so somehow I got into the fashion world. I studied political science in college, but got into the fashion world. It was fun, because it’s all about art, and so I wanted to kind of pursue it. It was the only job experience I had other than working tiny, small jobs throughout high school. I knew I wanted to live in Austin, and the only designer here basically felt like that prom and pageant place we worked at.

Karin:

Okay. So that was… You were into it. You were like, I’m doing fashion. This is what I’m going to do.

Alison:

Yeah. I mean, when I was younger, I collected magazines and I would study them so that I would know all of the designers. I still know all the designers, but I never… It’s like, I like it, but I don’t like it, you know? I don’t like what it’s about sometimes, but I do like wearable arts. I like functional art.

Karin:

I love that, and for those of you that do not know Alison, she will not spend money on clothing now.

Alison:

I don’t spend money on clothing. People give me hand-me-downs because they hate how I dress that much. I’m just usually wearing cutoff jean shorts and tee shirts.

Karin:

Hey, aren’t we all. It’s a pandemic. Let us live our lives.

Alison:

Anyways. Yeah. Enough about that background. Karin, let’s… So you applied to a content specialist role.

Karin:

Yeah, I mean, I think the job title is just straight-up marketing coordinator, but so much of the job description was copywriting and content creation and social media. So I was just like, okay, because I remember… This is the worst thing to say for any journalism student out there. You can do it. You’re doing great. Keep it up. But I was in this class, this intro journalism class of like 200 people, and I remember the professor, great professor, Robert Jensen, shout-out. He was just like, “Look around. Only one or two of you will become a journalist.” And I was just like, that is so harsh. I am not the smartest person in this room. I am not the most passionate about journalism. What on earth am I going to do?

Karin:

So when I graduated and I saw this job, I was like, ooh, yeah, fashion. Let’s do it. There was so many great things about it. We worked with a couple really cool people. The president of the company and my boss, like they were totally cool and I really liked working with them. I mean, we got to do some really cool stuff.

Alison:

That’s true, and I love that family still. I mean, a family business is hard and they made me feel like family, which I really liked. But can we take it back to what you said about college professors?

Karin:

Please.

Alison:

Because I feel like it’s a professor’s job to say that, like to let you know that you’re probably not going to make it. I feel like that’s the thing all professors say.

Karin:

I mean, they got to speak their truth. They’re not lying. I can’t… None of the journalism students, maybe one or two that I was friends with… That’s not true. There’s a good handful of them doing their thing.

Alison:

Yeah. It’s like their job to kill your hopes and dreams.

Karin:

I mean, I’m glad he did because it brought me here and… So, yeah, but the pageant dress. Side note, we went to New York Fashion Week. We got to run around on the subway trying to find goods for the DJ that was going to be at the fashion show. I mean, it was a good time, but I don’t know how much of that was really me learning about marketing, more me just learning how to have a real job.

Alison:

Yeah, yeah. That job was hard for both of us, I think. It was the first job out of high school, and we had a lot of responsibilities. So after that, what happened? Where did you go?

Karin:

After that, I bounced out so quickly from there, abruptly, some may say. That’s for a different podcast. I was searching Craigslist. I was searching the job boards and just trying to find my way, figure out what I wanted. Along comes this Craigslist ad for a marketing coordinator at Vital Farm.

Alison:

Craigslist…

Karin:

Craigslist.

Alison:

…was the place to find jobs.

Karin:

That was where I found my first job too.

Alison:

I forgot about that. Wow. Okay. Now it’s like, don’t get on Craigslist.

Karin:

Like what am I going to do on Craigslist?

Alison:

Yeah.

Karin:

So, for those of you Gen Z-ers, Craigslist was like Facebook Marketplace, but also had jobs. I’m sure you know about Craigslist, but just being completely sure. So yeah, I went to Vital Farms and that was really where all the juices started flowing. That’s where I fell in love with consumer-packaged goods. I fell in love with mission-based brands who really just wanted to do good by the consumer, by the planet, by their teams, by the animals that provide for us. I had the greatest boss. He’s this British guy that we’re still very good friends. We’re very good friends now, but he was just so creative and broadened my mind to really look at things in certain ways to reach as many people as possible in a relatable fashion. Shoutout, Jason Jones. He was the president there and a mentor as well.

Karin:

Yeah, that’s how it was, and I was there for a couple of years until another company snatched me up, and then I was there at that company for a couple of years until I wasn’t. What were you doing within that time when I was at the farm? I mean, I know, but tell the audience.

Alison:

So… Yeah. Let’s just hit this a little harder. Karin was in the baby stages of Vital Farms. Early phase, right?

Karin:

Yeah. I was like, what, their eighth employee. I’m talking, this brand is just… It has flourished. It has grown. It has gone through a lot of amazing things. I was there when the distribution center was in the back parking lot. We would literally walk over there, get our free eggs, say hello to everybody working in there, packing, cleaning. It was just really fun. We had vegan, vegetarian meals on Tuesdays with the whole team. It was great. It has definitely grown since then, but yeah.

Alison:

Cool. I love Vital Farms.

Karin:

They have good eggs.

Alison:

Good eggs.

Karin:

So what were you doing while I was on the chicken farm?

Alison:

Well, I think we both were like, let’s get the F out. I took that very literally and moved to Vietnam. I wanted to get so far away because I think that’s when I realized, okay, I’m not in love with fashion. I always wanted to be creative in my job, and that’s it. Fashion was just one of those ways to do that for me, and once I got in that world, I realized I didn’t…you know.

Alison:

So I wanted to get far away, moved to Vietnam to clear my head, to figure out what I wanted. I moved there without a place to stay. I didn’t have a job. I tend to do that with decisions. I don’t really think about them. I just do it. It didn’t really hit me until the plane, on the 26th hour of being on a plane, what I was doing. There might’ve been a few tears, but then I get there and immediately a six-year-old kid is smoking a cigarette, and people are yelling and screaming at me, and I’m like, this is it. I am so excited.

Karin:

Was it just like, you in a backpack? Is that all you had?

Alison:

Me and a backpack. Yeah. I immediately got screwed over by my taxi driver, like…

Karin:

Classic.

Alison:

Just needed to learn a lot of things in life, and today-

Karin:

Did you already have a place secured to stay? How does this work?

Alison:

I knew where to go, like I knew to go to Bui Vien Street to look for hostels. I knew to go there and it was easy to find a place to stay. It was just a little whatever room. Then I would go into different teachers’ offices and apply for jobs during the day, and I got one. So I was an English teacher for maybe six months. I really was not very good at it, so I didn’t last very long.

Karin:

Dang. That’s nuts. So let’s fast forward again. I don’t exactly remember what year it was or where I was, but I got a message from you. We were friends before you left, and of course you were in Vietnam, so we weren’t seeing each other. We would occasionally talk, but then I got a DM from you that was like, “Hey, did you do ads for Sherri Hill, our first job?” And I was just like, oh, Alison’s reaching out, she wants to learn about something. Little did I know that this woman was killing it in Vietnam, knowing 20 million times the amount I did about ads, and was just hustling getting work. So how did you start, like how did that even start? Who did you get introduced to? Who did you learn from?

Alison:

Yeah, that’s right. So Saigon, where I lived in Vietnam, is actually a huge entrepreneurial hub. I randomly moved in with this guy, and there was a couple of people in this apartment, and he was a part of this entrepreneurial group called Tropical MBA. Basically they took what Tim Ferriss talks about in The 4-Hour Workweek and applied it to life. There was like a hundred of these people living in Saigon, creating their own businesses, working a free schedule, work-life balance, what have you. I was like, damn, this is exactly what I want, and I just kind of fell into it.

Alison:

Then I started working for this guy who taught e-commerce courses, taught you how to create an e-commerce business. He wanted to hire his first employee outside of his…like his sister. I got the job and I told him I knew how to do things that I didn’t know how to do like Facebook ads. It was quickly realized that I didn’t really know, but I was going to give it all I got and just started learning as much as I could. I took a ton of courses. I still take a lot of courses on Facebook ads and in everything, because it changes all the time. But yeah, we started spending about $30,000 a month when I started, and by the time I left, we were spending about 300,000 to 500,000 a month, and that was in a year and a half, so just scaled the shit out of it.

Karin:

That is nuts.

Alison:

Yeah.

Karin:

That’s crazy. I mean, you can say those numbers and you think of these big businesses, but you’re talking about one man and you starting this company, and a year and a half later, spending half a million dollars a month on Facebook ads. That’s crazy.

Alison:

Yeah. It was the only means for advertising that we did. It was a lot of fun, that’s for sure.

Karin:

Well…

Alison:

I wish someone else would give me $500,000 to spend.

Karin:

I know. Who out there…

Alison:

Give me your money.

Karin:

Who out there has some measly chump change that Alison could spend on Facebook ads to kill it for you? Hit us up, hello@umaimarketing.com.

Alison:

But anyways, so we were working out there in Vietnam. My boss is probably the smartest person I’ve ever met. I can’t even tell you how much I learned from him, but he wanted to move back to the States to grow the team. There was three of us at that point. He said, “I want to move to San Francisco, Austin, or Boulder.” I went to school in Boulder, lived in Austin before. I didn’t really want to live in San Francisco. So I was like, “Austin or Boulder. He decides on Austin, so I just basically go full circle back to Austin where I started from.

Karin:

Thank you, Anton.

Alison:

Yeah, but then what happened?

Karin:

Then I was two years into my job at a local pet food company, and after close to two years, there was a little bit of a thing within the organization where it was just like, the leadership was changing, it was… I can’t blame. I’m not blaming, but I’ve always been very strong in my convictions, and I am very forthright with my opinions. I just was talking too much and I got laid off.

Alison:

What do you mean you were talking too much?

Karin:

Well, I mean, okay. So our VP of marketing left, and we got a new VP of marketing, and I still was friends with our old VP of marketing and he was a mentor. So I was like, “Hey, let’s go to happy hour.” We plan that and news and our marketing team, they get word that I’m having happy hour with our old VP of marketing who we all liked. So, one by one, they’re like, “Ooh, can I come? Can I come? Can I come?” And it’s like, okay, so the whole team is going to happy hour with the old VP of marketing. In hindsight, I’m like, why wasn’t I aware enough to know that current VP of marketing, if he knew that that was happening, would probably be like, what the F is happening? What are y’all doing? And that’s-

Alison:

He thinks there’s a mutiny.

Karin:

Yeah, exactly, and I’m the ringleader, of course. I’m the one that planned it. So that, among other things about just being a little bit too loud about my opinions, I guess, it led to a few of us being laid off. It was half of the marketing team.

Alison:

Just from that one happy hour.

Karin:

I mean-

Alison:

That’s the catalyst.

Karin:

I think that was the catalyst. Yeah. I think it was the catalyst, and it was so hard. Anybody that’s been laid off knows it’s such a blow to your ego. I was so mortified. I remember sitting in… My friends all took me to dinner. I’m like, how can I talk about my friends and I going to dinner during COVID? I’m like, was that allowed? But it was when it was allowed, and we were all sitting at dinner and I was just like… I was drained the whole day. I was just sobbing all day, so upset. I get a text message from who other than, shouting back out to you, Jason Jones, the president and cofounder of Vital Farms. He was like, “Hey, let’s have coffee.” And I was like, okay, we have not talked in how long, and you’re texting me the day I got laid off to say let’s go have coffee.

Alison:

He’s got some sort of sixth sense, I think.

Karin:

Well, not the sixth sense. He was just very well-connected. So, I was just like, “Who told you.” Immediately. “Who told you?” He was like, “Haha, don’t worry about it. Let’s go get coffee.” I was like, okay, well, he knows. Someone told him. Who told him?

Karin:

So we go get coffee that week, and in between that time, I was already being offered a position at another CPG here in Austin. Pretty much, I almost had the job and I was really thinking to myself, do I want to do this full time? What can I do? So Jason and I go get coffee, and he’s like, “Hey, what’s going on? What do you think about all this?” I gave him the spiel and he was like, “Okay, well you live in Austin. It’s a CPG hub, consumer packaged goods hub. There are so many brands that need your help right now. They need social media marketing help.” I was like, okay. So, long story long, the CFO of the company I got laid off from reached out to his connection who knew Jason Jones, and he knows… It’s a very small world here in Austin. He was like, “Hey”…and I am forever, very much grateful to this person for doing that…said, “Hey, we had to let this woman go. You need to help her. You need to help guide her.” That’s what happened.

Karin:

So I got connected with Jason, again, reconnected with him, and then connected with another leader in the CPG industry here in Austin. They were my saving grace. Within a week, maybe a week and a half, I had a full client load. One was the company that almost hired me, and they said to me, they were like, “Hey, if you’re not in completely, if you’re not in this to win it with us, then maybe we can work fractionally together.” So I had a full workload within a week and a half, and I can try and say that it was because of my hard work and dedication, but it was a lot of who I was connected to and who I knew and who I’d built past relationships with. So that is why it’s one of my biggest pieces of advice to people, especially just starting out in whatever industry you’re in, is make connections. 110%, that is what is going to propel you forward.

Alison:

Right, but make real connections. I mean, I think you’re so good at keeping up with past people that you’ve worked with and things like that. You got to put in some effort.

Karin:

Yeah, yeah. It can’t be fake. I mean, and I’m always like, I’d rather have a very close group of really good friends then have a million friends. That’s how I feel when it comes to work as well. So yeah, I did that for awhile, and the whole time I was just thinking to myself, advertising is not my specialty. I’ve done it. I’ve spent hundreds of thousand dollars on it. Did I know exactly what I was doing the whole time? No. Do I want to work with somebody who knows it a million times better than I do? Yes. And so, how many times have I asked you? Like, hey, are you ready? Like are you…

Alison:

A few times. Yeah. [crosstalk 00:26:16]

Karin:

I’m texting you really late at night. I’m like, I’m having these feelings within me. Are you ready?

Alison:

Yeah. No, it’s funny, because I kind of was… So we brought the company back to Austin and we grew it, so we had a full marketing team, a full team of maybe 12 people. I had already been there two years. We moved fast. The digital world moves fast, that’s for sure. But I had been there two years, and then all of a sudden I found myself back in Austin with a team, but in an office. I really think that was the downside for me. Every single day, I drove 20 minutes, which sounds not like a lot, but for me, it was, I drove my commute, and I sat at my desk and I worked 9 to 5, you know? It just isn’t how I operate, so it just started weighing on me, and then Karin kept bugging me.

Karin:

Hey.

Alison:

And I’m glad she did, and I knew that I’d kind of hit a roof there. Where was I going to go from here? I absorbed everything that my boss… And just like you said, he was my mentor, really. I learned everything I think I could from him. I wanted to do something new and learn some new things. I said, let’s… I think I called my boss, and then I called you and I said, “Okay, let’s do it.”

Karin:

Yeah. I lost my mind. I was working at Cosmic Coffee, I think that was. You were like, “Hey,” and you always do things really professionally. That’s one thing about you, that you always… Or you, as professionally… You think about doing it that way, and I love that. So you were like, “Hey.” You didn’t call me, and you were like, “I’m in,” and we screamed on the phone. That’s not how it was. You’re like, “Hey, let’s meet.” So we met over coffee and you were like, “I’m ready.” I just couldn’t believe it, but I was like, when you say you’re going to do things, you do them.

Karin:

So it happened, and I mean, I never… I remember that in my interview for the pet food job, they were like, “Where do you see yourself in five years?” That question. And I said, “Owning my own agency,” and I didn’t believe it. It came out of my mouth and I was like, oh, I’m going to sound like-

Alison:

Just said it?

Karin:

Yeah, I’m going to sound like I’m a badass overachiever, like I’m going to get it done. Within two years, it happened and it couldn’t have happened without you. This agency is our love child.

Alison:

It is, and I love it.

Karin:

I love it so much.

Alison:

I love our love child.

Karin:

Me too. People always say don’t get in business with your friends, and I mean, that’s true for a lot of people and a lot of my personal friends, but we bring… We are opposites in so many ways that just make the business work.

Alison:

Yeah.

Karin:

So I’m not-

Alison:

Like honestly, we are ying and yang. I know we say that, and probably a lot of people think that’s so lame, but it’s true. Where I fall, you pick up and vice versa. It’s actually like the complete opposite, but then we come together on the big, important things, and I think that’s what matters. But I mean, it’s not easy either.

Karin:

Yeah. Not easy, and we do come together for the big, important things, but we have to talk through some things, right? Not everything that we want to do we agree on, but it really is about just talking through it. I think that that’s what we all have to do, whether you’re friends in business or family in business or in business with people you don’t care about.

Alison:

Right, and at the end of the day, even when it’s a hard conversation, I always know that we’ve made the best decision or we produce the best product or service, but yeah.

Karin:

Yeah, and the team is growing. We have a marketing manager, Holly, who’s just… I cannot say enough good things about this woman. I hope she never leaves us. I know someday she will and she’ll need to fly and grow her wings, but she’s just the greatest, I feel. We’re so lucky. I remember her interview in Cosmic Coffee again, Austin, Texas, and she left and we both just looked at each other and we’re like, yep. Immediately.

Alison:

Yeah. We knew immediately.

Karin:

I don’t know if that’s normal. I think that that’s really lucky.

Alison:

Yeah. It is so rare to find an untapped diamond, like she is a diamond, but yeah.

Karin:

Yeah, and just hired our fourth full-time employee, and she starts on Monday. We’re just… I mean, this, what, it’s going to be two years in September, which is so crazy. How has it been two years?

Alison:

No.

Karin:

Yeah, but it’s been… Yeah.

Alison:

It’s so soon.

Karin:

I know. Wow.

Alison:

So that’s the story.

Karin:

Yeah. So that is the story of how we met, how we grew apart… Well, not grew apart, but grew separately.

Alison:

We grew separately, and then…

Karin:

And then came together.

Alison:

Like a ying and a yang situation. But there’s so much more to tell. There’s so much more that we can’t wait to share.

Karin:

Mm-hmm (affirmative). For another day, and we want to hear from you guys what’s interesting. What do you want to know more about? What do you want to know less about? We know you didn’t ask for this, but we gave it to you, and we’ll continue to do that.

Karin:
Umai Social Circle is a CPG agency driven podcast based out of Austin, Texas. We’re excited to share more behind-the-scene insights, chats with industry leaders, or whatever else we learn along the way. Follow us on Instagram at Umai Marketing, or check out our website, umaimarketing.com. Catch you back here soon.

Sign up below to subscribe to our newsletter and get free marketing guides + how-tos!

Posted on 1 Comment

#2: Creating a product that’s *actually* different with Natural Stacks

podcast cover image with roy krebs founder of natural stacks
UMAI social circle cpg podcast

#2: Creating a product that’s *actually* different with Natural Stacks

Grab a snack  and settle in – ’cause your brain is about to get bio-hacked. 

Today, Alison catches up with Roy Krebs (Cofounder & CEO of Natural Stacks) to discuss his entrepreneurial “why” as well as the how behind creating standout supplements in an increasingly overcrowded market. Spoiler alert: It has a whole lot to do with quality ingredients!

Let us break it down for you…

[1:50] What does it mean to be an open source supplement company? The supply chain and ingredient traceability.
[4:35] Are you worried another company may come along and steal your not-so-secret recipes?
[11:22] What motivated you to get started in this industry?
[12:48] How did you connect with influencers + get the Natural Stacks name out there? Cold emailing big names, like Ben Greenfield and Dave Asprey.
[14:46] Connecting with poker champion, Martin Jacobson.
[19:31] Any other brands inspiring you in this niche? 
[24:45] Moving from eCommerce only to retail and expanding your team.
[26:25] In-person store training to educate retailer teams.
[30:33]  What does the future of Natural Stacks look like?

Mentions from this episode: 

Stay in touch:

Join Umai’s Facebook Group: CORE 3

ROY:

This was right when brain health was hot, nootropics were becoming a thing, the movie Limitless came out a year or two before. We were lucky to catch that wave.

ALISON:

Hello, everyone. Welcome to the Umai Social Circle, where we talk all things CPG marketing. We are here to help business owners and marketers, alike, grow. I’m Alison. I’m the cofounder of Umai, and today we’re talking about Natural Stacks with Roy Krebs. He’s the cofounder and CEO of Natural Stacks. I still use a lot of their supplements. I actually have CILTEP right here. I take it every morning. It’s like a healthy Adderall. I don’t know if that’s accurate. I take Omega CBD instead of Advil now, a lot healthier. I take their CBD for sleeping. So I’m a huge fan of this brand. Excited to have you, Roy. Welcome.

ROY:

Awesome. Thanks, Alison.

ALISON:

Natural Stacks is an open source supplement company. Can you explain what that means?

ROY:

Yeah, sure. It’s our quality and transparency program, really full visibility of our supply chain. So we created this… It’s a three tier program. When I started the company, I was pretty fed up with just the lack of transparency in the industry. You don’t know where the ingredients came from, there’s no test to validate what’s actually in the products, and then just proprietary formulas which I think are bogus. So we created this program, which I’m super proud of, and I think it gets us a lot of respect and opens some doors for us.

ROY:

And so what we do is ingredient traceability, means we disclose who all of our ingredients’ suppliers are. Every single ingredient, and every single product, we’ll tell you exactly where we got it from, and that’s quite unique. And we do third party lab testing on every single active ingredient of every single batch. And I don’t think anyone does that. It’s very expensive and it’s hard to pull off, but it’s very rewarding to be able to say, “Here’s the supplement facts for this supplement, and here’s the third party test to actually validate you’re actually getting that amount for each compound, rather than just trusting your co-packer.”

ROY:

We actually share all those third party tests online. So any consumer can see those tests for the actual batch they’re holding in their hand. We just started adding QR codes to our labels. So someone can pick it up off the shelf, or if they order it online, scan that and see here’s where you got your ingredients, here’s where those agreements came from, and here’s the third party test to back that up. And then the last thing is just nothing proprietary, full label disclosure. Really, I believe everyone deserves to know what they’re putting in their body. It seems pretty straightforward, but a lot of companies won’t tell you.

ALISON:

That’s very cool. I had no idea about the QR code, so that’s something pretty new. Where did you all get that from, or have you seen some other brands try that out?

ROY:

Well, CPD companies are doing it because there’s a regulation in, I believe, Iowa or some Midwestern state that requires it. But, basically, all the big CBD companies have a QR code on their label that goes to a third party test-validating that there’s less than 0.3% THC in that product. And I saw these QR codes and said, “Cool, we can just make this an extension of our open source program and be able to quickly show a consumer where those ingredients came from in the third party test to back up the [inaudible 00:03:50].

ALISON:

That’s so cool. I really like that. But based on your transparency, is there ever any fear that another company is going to come in and steal your formulas? Do you ever get scared of that?

ROY:

Oh, bring it on.

ALISON:

I like that.

ROY:

We spent a long time sourcing our ingredients and we’re using the highest quality stuff. Even just our ascorbic acid, which is a commodity ingredient, we’re sourcing it from Scotland. It’s a non-GMO source. Our amino acids are sourced from Ajinomoto, a Japanese company, pharmaceutical grade, made from botanical sources rather than hogs hair, or bird feathers, like most amino acids. I know that we’re using the highest quality ingredients. These ingredients are quite expensive. If someone’s going to knock us off, they’re probably not going to want to use these ingredients because they’re going to use the cheaper stuff. And it just requires a lot of work in general. And I don’t think many brands are willing to do that. I believe we have enough brand equity that if someone does completely knock us off, people trust Natural Stacks and they’re going to choose our product over the knock-off.

ALISON:

No fear.

ROY:

Bring it on.

ALISON:

Let’s take it back a little bit. I’d like to talk to you about you, and Ben, said that there was a gap that you saw that needed to be filled with the supplement space. What other motivators made you all get started in this industry?

ROY:

Sure. I had another supplement company before this one and I was working with Ben, so we already had a good relationship. I noticed my own brain wasn’t working that great. I had some brain fog. I was procrastinating a lot. That was probably my biggest problem. Big To Do lists, but not doing much of it. And I wanted to start taking a brain supplement for myself and I didn’t want to use something pharmaceutical. I didn’t want to go to a drug. I wanted to stay all-natural because that’s what I was comfortable with. I started just doing a ton of research. And as I’m doing this, my grandfather got diagnosed with Alzheimer’s and dementia. His degradation happened super quickly. Watching that, and then seeing my own brain not working great, I just took it very seriously and was, frankly, scared and said, “What can I do? What can I take? I want something that works now. I want to stop procrastinating, but I want it to be safe for longterm use.”

ROY:

I looked at what was available for brain health ingredients, currently, for supplements, and there just wasn’t much. There’s only 10 or 15 well-known brain ingredients, ginkgo, gotu kola. There’s a few botanicals, a few amino acids, some vitamins, some minerals, maybe blood vasodilators. I tried them all and they just weren’t that effective. Very well studied. Sure, there are legit studies that back it up, but it’s take it for 60 days and you might have a 5% increase in memory or something. Not something you take and be like, “Oh, dang. I took my ginkgo today. I’m really on fire.” I wanted something a little more experiential. So then I started trying the nootropic blends that were available. These are brain supplements that combined in multiple ingredients, and I just wasn’t impressed. They almost made my procrastination worse, like a scatterbrained effect. I felt something working, but it wasn’t what I was going for.

ROY:

That’s where our concept came in of just creating these very targeted unique formulas that are only trying to do one thing. I realized that the other brain formulas were trying to do it all in one formula. They’re trying to activate mood and focus and memory altogether, when the brain is quite complex and we can’t just blast everything at once. I realized that it makes a lot more sense to target individual pathways in the brain for specific outcomes, and that’s what we’ve done.

ALISON:

Wow. Correct me if I’m wrong, you don’t come from a scientific, chemist type background?

ROY:

No, not at all. I don’t think I did very well in those types of classes. Biology and chemistry were my worst in high school. I was an Econ major in college. I was always an athlete, so I always took supplements and always did my own research to figure that stuff out. And then just the more deep I got into it… I started reading just hardcore medical studies and reading synergies on ingredients, and found some pretty cool stuff that other companies weren’t doing. There was definitely a void in the brain health category, which is a growing category. It still is, but the big brands would release maybe one or two brain products. They weren’t going about it the right way, whereas now we have 10 different brain products that are a lot more targeted. We’re really trying to just own that niche.

ALISON:

Very cool. So for someone who hasn’t done that research, and doesn’t really know any of the terms or whatnot, but would like to find a supplement for them, what type of things can they look at? Should they be looking up the ingredients? What should they be looking for when choosing a supplement?

ROY:

It all comes down to being introspective as much as possible, rather than saying, “My brain is not working great today.” What about it? Is it your mood? Is it your focus? Is it your memory? Is it your ability to sleep and relax? These are all very different things. The farther you can get to pinpoint what exactly about your brain is not working great, the better you can help yourself, I think. A great resource for me when I was getting started was the book called The Edge Effect by Dr. Eric Braverman. He has this assessment, or a quiz, called the Braverman Assessment. You can look up online. It’s very easy to find. It’s a questionnaire that you can answer, and it will tell you which neurotransmitter you’re naturally dominant in and which one, or ones, you might be deficient in at that time. For me, it was very eyeopening, really gave me an understanding of how my own brain worked and, as soon as I had that understanding, it was much easier for me to optimize my mental performance.

ALISON:

Very cool. I think I have taken the Braverman Test back in the day. That’s pretty cool stuff. I could talk about you all’s line forever. I mean everything I’ve tried is pretty awesome. Let’s go back to Natural Stacks, and you and Ben were getting started. What was it like, initially, to start a supplement company? Can you think maybe about one thing, or a turning point, with Natural Stacks that made you realize, “Okay, this is going to be a success or something to stick to”?

ROY:

We knew we had something almost immediately. We launched with two products and then went on to the very niche bio-hacker podcasts. And that was basically our launch strategy, was to go on, use influencers and their podcast to leverage their audience and get them introduced to our brand pretty quickly, give those influencers an aggressive affiliate cut to get them motivated to talk about us. And what we had was unique, so they wanted to talk about us. But really, within those first two weeks, we got on to a podcast and I think we were profitable almost immediately. Really, after the first month we were like, “Wow, okay, we got something. Let’s take this seriously and try to grow it into something a lot bigger.” We did $100,000 in our first 100 days.

ALISON:

So your main strategy was to get in front of as many audiences in your niche through podcasts. And then how did you find influencers?

ROY:

We just sent cold emails. Cold emailed to Ben Greenfield, cold emailed to Dave Aspery. They were very receptive. And that was really it. We had something that was unique. We had this nootropic product, CILTEP, which now we’ve actually rebranded into the name called NEUROFUEL. At that time, CILTEP was developed in this almost community-sourced way, in these online forums, where it was really a couple of years of people tinkering with the formula and trying it for themselves.

ROY:

By the time we came to market with it, a lot of hardcore nootropic bio-hackers have already heard of the formula and some of them were making it themselves, but it was hard to do. You needed a milligram scale, you looked like a drug dealer because you had all this weird capping equipment, and it wasn’t a very good experience. So only the hardcore people were doing it and putting it into a nice package, made it easy to distribute to a more regular audience, and Dave Asprey and Ben Greenfield and Tim Ferriss, and those guys… Brain health was hot, nootropics were becoming a thing, the movie Limitless came out a year or two before. We were lucky to catch that wave.

ALISON:

I mean it’s pretty crazy too. The names that you just spit out, Tim Ferriss, Dave Asprey, and I can’t imagine now cold emailing, or cold calling, one of those guys and them even responding.

ROY:

I think it was a little easier back then, at least for them, but there’s always that opportunity. There’s always up-and-coming influencers that are very receptive to talking to folks that have something new and exciting. So I don’t think that strategy’s dead, I think it’s still very alive.

ALISON:

And did you all offer anything in return, or was it simply a try my product, here’s what’s inside?

ROY:

It depends on who you’re talking to. You have to be very flexible and listen to what they want. Sometimes it would be a straight-up affiliate deal, 15% of whatever you refer. For Dave Asprey, we offered him a great deal for him to sell the product on his own website. He was very receptive to that. For other influencers, like the poker champion that we worked with, we gave him a percentage of sales on our entire website for a certain amount of time after the tournament aired on ESPN. You just have to be flexible and make a deal that makes sense. And all those deals didn’t require any upfront money on our part. Putting the risk back on their side and say, “If you can produce, then you’ll get paid. But if you don’t produce, then it was fun anyways.”

ALISON:

Wow. What was the poker player’s name again?

ROY:

Martin Jacobson.

ALISON:

And did he just wear a Natural Stacks shirt during that game?

ROY:

He wore a patch. It was a patch that said Powered by CILTEP. That was an interesting one. He just reached out to us two weeks before he was sitting at the final table for the World Series of Poker, and it got lost in our inbox and we didn’t see it for a while.

ALISON:

He reached out to you all?

ROY:

Yes.

ALISON:

Wow.

ROY:

He had been taking our products and was a fan and said, “Hey, I’m sitting at the World Series of Poker. Do you want to sponsor me?” Now, I think he wanted something crazy, 40,000 bucks or something, to wear a patch. And we were like, “No, we’re only a startup. There’s no way we can do that, but we want to figure out how to work with you.” That’s when we worked this creative deal that, “You’ll wear a patch that says Powered by CILTEP,” and we made the patch aggressively large, which worked well. He ended up winning the whole thing, which was just amazing.

ALISON:

Did you all have any idea that he was going win?

ROY:

No. He came in and he was ranked eight or ninth. So he was a huge underdog. And we were there in Vegas, watching him, which was a ton of fun. His competitors were drinking fruit smoothies and stuff halfway through these long, 12 hour poker days. And he was popping CILTEP and krill oil, and his concentration, you could tell, was well above his competitors. And he just came through and won. It was super cool, a lot of fun, some great shots on ESPN closeup with our patch. It’s hard to quantify the actual sales that we got from that. It’s not tracked or anything. It definitely had a boost, but maybe wasn’t as big as we were expecting. But because we set up the deal in a way that he was getting a percentage of sales after it aired, there was really little risk to us.

ALISON:

Absolutely. I love that. You’re putting it in the influencers’ hands and making them work for you, instead of the other way around. It’s pretty cool. Another question I wanted to ask, are there any… Because I think that you guys are so innovative, so I wanted to ask you, are there any brands that you have your eye on that influenced your brand, or you, in general?

ROY:

For me, I look up to the really high quality supplement brands. This goes back to our ethos of being open source. I look up to the guys who are doing a lot of testing, who use the highest quality ingredients. So Thorne is one that comes top of mind. They recently purchased WellnessFX, which is the biomarker, blood tests and other testing. And so they’re creating this whole ecosystem of test your biomarkers and then fill in your nutrient gaps with their high quality products. And I think that’s super cool because they’ve actually pulled that off pretty well, and definitely have a lot of respect to them.

ALISON:

And what are your thoughts on, it’s important to follow your competitors closely, but you also want to stand out. So how do you manage that balance?

ROY:

We prefer to be the trendsetters. We’re not waiting to see what competitors are doing and then following. We want to be the innovative products that come first. And maybe it’s a little more risk. You don’t know if the market is quite ready for it. We’d much rather be a first mover than be a second mover. We don’t really watch competitors that closely. Of course, we do and we see how they’re pricing stuff and where they’re distributed. But when it comes to creating our products, we’re always trying to innovate first.

ALISON:

I like that. Well, let’s talk about your team and how it’s grown throughout the years. I know initially… This is a two-part question, I guess. You guys only went with e-commerce for the first couple of years, then moved into retail. I’m guessing your team could stay pretty lean until you started to build out the retail component. Walk us through… How does that look, building out the retail side?

ROY:

Well, each distribution channel definitely has its own challenges and requires its own expertise. Starting off online only, which we did for a couple of years, you can definitely stay very lean. I mean to start, it was just Ben and myself doing everything. And then I think we brought on an intern, and I think we just overworked him. He ended up quitting.

ALISON:

Did you pay him?

ROY:

We did pay him.

ALISON:

Okay, good.

ROY:

And now he’s quite successful, so it’s great to see that. Growing a team is always, I think, the hardest part of growing a business. And when you start and your bootstrapped and you’re very conscious of your budget, you either hire someone young and unexperienced, who’s cheap, and train them. You hope they turn into, which a lot of times fails. And the other side is to hire someone that’s already been there, a professional, that’s done this for a big company. And we’ve tried that too. My experience with that is that industry pros are used to having a lot bigger ecosystem around them, better support. They want to be able to offload their tasks to people underneath them, which there isn’t when you’re just getting started. So we went that route too and tried hiring these pros, and they didn’t really work out either. They were overly expensive and the results weren’t quite there because they didn’t have the support that they were used to, I believe.

ROY:

We figured out we have to be somewhere in the middle. Someone that has some talent, that has proved themselves in some capacity, but maybe they need a little training or something. So that’s where we are today, is trying to hire people that are really excellent in their work and fit well with our culture. Maybe they’re not industry vets that have been doing it for 15 years, but they’re also not complete rookies that we need to train. And that has been a good strategy for us going back to the distribution channels.

ROY:

Starting online only is a really great way to go. You can iterate very quickly. So if you need to make a label change, if you want to change pricing, if you want to change the formula, you can do so pretty quickly. Whereas once you start getting into retail outlets, everything gets harder. It’s very hard to change the formula, the label and the packaging on a batch-by-batch basis. So we started online only, and then we noticed a lot of healthcare practitioners were reaching out to us because we had these innovative brain formulas that they wanted in their practice, where their customers, their clients, were asking for our stuff. So then once we got into maybe 100 healthcare practitioners, which were pretty easy to manage… These were professional doctors who would order a case at a time, or whatever. Pretty easy to manage that.

ALISON:

So doctors were prescribing your supplements?

ROY:

These are more naturopaths, chiropractors-

ALISON:

Okay.

ROY:

… that sort of thing. So not really prescribing, but recommending them to their clients. A lot of those naturopathic type doctors stock a lot of supplements. Getting into that atmosphere, I think was validating for us. “Wow. We could be sold in a physical setting and we’re being recommended by these professionals.” So then I started looking at retail and I said, “Why not?” I think Ben was very against it. He’s like, “You’re crazy.” But I said, “I know we can do it. I know we can get our products into some retail outlets.” It was eyeopening, really, that the retail world is completely different than online. It’s a very slow sales cycle. Most retailers only review a certain category one time per year. So you only have this one month window to submit your products. And if they say, “No,” you basically have to wait another year.

ROY:

It took longer than I thought, really, I think to succeed in retail. Start with the smaller independent stores, the smaller chains, they’re easier to work with, and get your sales velocity up. Do everything you can to support that store, give them great deals, train them excessively, make sure all the staff have tried your product. And once you create velocity in the smaller stores, then you can take that sales story to a larger chain and be like, “Look, I know you know we’re just a startup, but we’re in these 10 stores in California. We’re selling a case a week.” And that will get their attention. So always build off smaller, smaller chunks rather than trying to go straight to a large distributor or a huge retail chain. It definitely helps to have a sales story behind you.

ROY:

And that could be an online sales story. You can say you have these very loyal customers, your reorder rate is super high, we have this tribe of people who, if we say we’re available at their local store, they’re going to go buy it. That, I think, is how to win in retail. But you just have to understand that the sales cycle is super slow. It’s not going to just happen immediately where you launch a product and all of a sudden you’re going to be able to get to a thousand stores.

ALISON:

You spoke about training. So I know you went on circuits to your different retailers to train the staff. Could you see a direct impact in sales because of that?

ROY:

Yes. Totally.

ALISON:

Wow.

ROY:

Very, very important in retail is to get the actual store staff on your side, the staff that are standing in the supplement aisle. When a customer comes in, just your average Joe is going to go to that store staff who is generally uneducated. They didn’t go to med school. They’re a store clerk, and these people are smart and they’ve been working that industry for a while. But a general consumer is going to go to that store staff and say, “What do you have for mood?”, or “What do you have for stress?”, or “I’m trying to focus better. What do you have?” And if you’re not the first or second brand they recommend, they’re not going to try you. And, as a young brand, you don’t have the brand recognition either. You don’t have money for nationwide ads and things like that.

ROY:

So, for a young brand, I think training is the most important thing to get sell through in a store. So we are super generous with staff samples. Anytime we launch in a new store, we’re sending copious amounts of samples for the staff to try for themselves. And then what we do now is, now that we have pretty substantial distribution, every quarter or so, we’ll pick a month and every single order that we send to a store, we’ll include samples with a little note, “Here, try this. Let us know what you think?” The store staff are getting free stuff. They try your product, and if your product works, they’re going to recommend it.

ROY:

So our sales in retail started pretty slow, and I made that my main focus. In big brands, they call it the national educator, is someone that flies around and trains all the staff. It’s a lot of work. I would fly somewhere new in the country and visit 10 or 20 stores. Literally, just walk into the store and ask the staff, “Hey, do you have 10 minutes? I’m the founder of this company and I’d love to tell you about it.” Try to get their email, too, to follow up with them and, “Hey, did you try the products? What do you think? Let me send you some more samples.”

ROY:

The more established retailers, it’s very easy to do a phone training or webinar where they can get maybe five, 10, 20 of their staff together and make a little training event. Maybe you buy them lunch, say, “Hey, let’s do this webinar, and I want to teach you guys about the products.” And then give them some free samples. But super, super important, I think, for a young brand to really win in education. It’s very hard to do, but it definitely pays off in the longterm.

ALISON:

I love that. It’s easily forgotten that the staff is your muse on the ground, so I really like that.

ROY:

Online, it’s very easy to educate. You have your whole website, you have blog posts, you have podcasts, you can show videos, you can have as much text as you want describing the product and how it works and how they’re going to feel if they take it. But on a retail setting, you have two seconds of someone scanning that shelf. So besides your packaging, that’s really all the education that you have. So you really have to get the store staff on your side to be able to do that education for you.

ALISON:

I mean really, all of that, I’ve always felt that online versus retail, retail is just the old school. It’s all old school tactics. And what you were just saying, that just sounds like old school sales tactics, take people to lunch, let those things still work. Very cool. So I’m going to try to wrap this up. I would love to hear about what you’re most excited for, for the future for Natural Stacks.

ROY:

Well, our mission is to build a billion better brains. For me, it’s just really rewarding to get feedback from people that we have improved their mental health and their mental performance. I’m excited to just own the brain niche and be the brain brand. I think we have a ways to go. We’re starting to get there. I just want to help more people and help people become better versions of themselves. And that’s super rewarding for me and our entire team. I think that’s the ultimate goal, is if you can create something and put it into this world and you’re helping people, it’s awesome.

ALISON:

So is that something you’re measuring, one billion? How close are you?

ROY:

It’s hard to measure. We did measure, I think, bottles sold. I forget what count we’re at. It’s a pretty lofty goal, but why have a goal that’s not lofty?

ALISON:

You’re just going to have to keep doubling, two billion better brains, three billion, as you go on. So, thank you so much, Roy. If you want, you can leave one piece of advice for a CPG, small business owner, or someone who’s just getting started. I think they would love to hear from you.

ROY:

You have to create an amazing product, got to have a product that is differentiated and unique and special. I see brands that are successful having copycat products, but I think they fizzle out pretty quickly. So to create a long lasting brand, you’ve got to have something special and you have to know how to target your consumer. And I think a big advantage that startups have is the ability to move fast. Big CPG companies are super slow. They are looking to what the small companies are doing in terms of what they’re going to try to create or innovate. So your advantage is to create something unique. Maybe it’s not a Campbell’s soup that everyone’s going to buy, but you have the ability to really own a niche and you can find your target customer. And then just move fast because you can be faster than the big guys, and that’s a huge advantage.

ALISON:

Very cool. Well, thank you so much, Roy. If people are interested in Natural Stacks, where can they go to learn more?

ROY:

naturalstacks.com. And they can reach out to me directly. I like helping entrepreneurs, so roy@naturalstacks.com.

ALISON:

All right. And we’ll include those in the notes as well. Well, thank you again, Roy. This was super insightful. I actually have a full page of notes just from everything you’ve said,-

ROY:

Sweet. Awesome.

ALISON:

… so really appreciate that.

ROY:

Thank you.

ALISON:

Thank you. That was really fun. I liked that. That was cool.

ROY:

Easy. Any time.

ALISON:

Umai social circle is a CPG agency-driven podcast based out of Austin, Texas. We’re excited to share more behind-the-scenes insights, chats with industry leaders and whatever else we learn along the way. Follow us on Instagram, @umaimarketing, or check out our website, umaimarketing.com. Catch you back here soon.

Sign up below to subscribe to our newsletter and get free marketing guides + how-tos!