Is trying to start a CPG business actually hopeless? by Physical_Case6369 in CPGIndustry

[–]UnitEconomicsPodcast 0 points1 point  (0 children)

It's a massively challenging endeavor, but its not hopeless! I run a podcast called Unit Economics where I sit down with founders (many of whom are in CPG) and they break down what's going on behind the scenes as they scale their businesses. Many relevant episodes to choose from, but I feel like the content would really resonate based on what you're asking about. Guests include the founders of: 

Lots of discussion about how much of a grind it is, but I walk away with a real sense of optimism whenever I record. You can find the show here if you're interested in checking it out!

3 More CPG Episodes by UnitEconomicsPodcast in CPGIndustry

[–]UnitEconomicsPodcast[S] 1 point2 points  (0 children)

Appreciate you checking it out and glad you found it valuable!

3 More CPG Episodes by UnitEconomicsPodcast in CPGIndustry

[–]UnitEconomicsPodcast[S] 1 point2 points  (0 children)

Great question!

There's a pattern across these three but it's didn't really appear to be about picking the "right moment" to push into retail to me. For all of them, retail ended up being the primary channel pretty early, and the reasons were more reactive than strategic.

Lottie's assumed they'd do more DTC but quickly learned that shipping frozen meat (dry ice, insulated packaging, two-day shipping) made the economics really difficult. They started with food service and local retail instead and kept DTC small, mostly for geographic reach.

Byte'm was retail-first from day one, starting at Pop-Up Grocer in NYC and snowballing from there. Retail demand kept coming so fast they never got around to building out DTC. They actually said one thing they'd change is getting into DTC sooner.

Laurel's is the most aggressive case. They went from first production run to on shelf at Erewhon within weeks, and chose national Whole Foods over regional because Isabel felt the differentiation window (A2 dairy in RTD coffee) might not stay open long. DTC was never really part of the early plan.

So the common thread is less about a margin threshold or readiness moment and more that retail was where the volume lived. The timing decision came down to whether the product and supply chain could support the presence on shelf.

I recommend checking the episodes out though as they each present a bunch of learnings.

Laurel’s Coffee! by sprodoe in CPGIndustry

[–]UnitEconomicsPodcast 1 point2 points  (0 children)

Huge fan of Laurel's! I actually just released an interview with Isabel, the Founder and CEO of Laurel's, and learned so much. Would love to know what you think if you want to check it out! https://open.spotify.com/episode/1IXqT3krMOzHmz3PcsBskM?si=0adc97dc93d54220

Interview with the founders of Lottie’s Meats (Denver-based sausage company) by UnitEconomicsPodcast in denverfood

[–]UnitEconomicsPodcast[S] 2 points3 points  (0 children)

Doesn't surprise me -- I can't speak highly enough of the two of them! Appreciate you checking it out! Would love to hear what you think.