Navigating Co-Packing Issues And Growing Our Drink Brand [Update]
This is a follow up story for Mindful Proteins Inc.. If you're interested in reading how they got started, published almost 5 years ago, check it out here.
Hello again! Remind us who you are and what business you started.
I am Jacoba Gundle, COO and Co-Founder of Mindful Proteins. You’ve heard from my co-founder Sean Penrith on Starter Story before, but I’d like to take this opportunity to introduce myself now.
I was born in Alaska and grew up in the Pacific Northwest. I now live right outside of Portland, Oregon with my husband, daughter (soon to be two daughters), and two dogs. Mindful Proteins is the first business that I have helped create, and I love the journey it has taken us on so far.
Our vision with Mindful Proteins is to create a family of high protein, functional foods, and beverages made from healthy and simple ingredients. Our first product is TATU Protein Water.
TATU is available initially in two flavors – Juicy Orange & Mango and Zesty Lemon & Ginger. Each 12 FL Oz can of TATU is loaded with 15g of the purest whey protein isolate, contains 0g of sugar or carbs, and just 60 calories. We source our whey from the pristine pastures of New Zealand. Our delicious and naturally flavored clear water provides 30% of your recommended daily dose of protein.
We are working on our third production run this month and are excited for the product to be ready for mass consumption!
Having the ability to control our messaging and brand positioning online will be key to our success. We are on the cusp of something big and are going to do this right.
Tell us about what you’ve been up to. Has the business been growing?
We had a huge opportunity this year to participate in the Target Forward Founders Accelerators program. There were over 5,000 applicants for cohort 5 and we were chosen as one of the 30 companies to participate in this immersive program designed to provide education, tools, and mentorship to early-stage entrepreneurs to prepare them for mass retail.
We received feedback from a large network of Target employees, consultants, and food and beverage professionals on how to grow TATU. We were fortunate enough to learn about retail financials, supply chain logistics, branding, marketing, and growing our direct-to-consumer sales (D2C).
From this experience, we have decided to double down on our D2C sales with TATU before continuing to expand our presence in retail. Having the ability to control our messaging and brand positioning online will be key to our success. We are on the cusp of something big and are going to do this right.
After we finish our third production run this month, we will ramp up D2C online sales and marketing via social media, Amazon, and Google. We have connected with a great firm that specializes in helping e-commerce brands achieve their maximum potential based on tailoring the needs of our brand.
What have been your biggest challenges in the last year?
Our biggest challenge this year was a blessing in disguise. We have been challenged to keep our Juicy Orange Mango flavor in stock! Our local co-packer experienced a state-wide regulation change which impacted their ability to produce TATU for us. We went through the painstaking process of finding a new copacker.
Eventually, we found a great firm that will be a great partner as we scale. We have completed a successful test run with them, shipped them all the ingredients, and have a run date on the calendar for our first official production run with this new copacker.
Once we have successfully run TATU at the new co-packing facility, we will commence the planning for our next production run in early Spring to ensure that our “out of stock” issue is banished! We know you love TATU and we know you want to drink it.
Because of our copacker issues, our monthly revenue has not grown to the level that we predicted. Our current monthly revenue is several thousand dollars with plans for substantial growth once we have solidified our inventory issues. Our revenue has grown 100% since our last starter story between our two SKU’s. The potential for TATU is huge and you should expect to see these numbers grow very shortly!
What have been your biggest lessons learned in the last year?
Always have a backup plan! There have been too many times where we thought we had a solidified partnership in place and then it disintegrated for some reason or another. There are too many variables in this business to not have a backup plan for every ingredient, every copacker, or every service that you use.
Not only should you always have a backup plan, but you should also always be on the search for better options for your business. By being complacent you miss out on other opportunities that could benefit your idea, your employees, or your product.
I know you may not want to hear this, but sometimes it is best if you just take that pesky sales call that you’ve been pushing off. Listen to the conversation so you can decide what is best for your business, gauge if your current solution is better, or decide whether you want to take a chance on another entrepreneur who is working to build their dream right alongside yours.
I believe that many entrepreneurs fail because they simply stop pushing forward on their dreams, just short of the goal line.
What’s in the plans for the upcoming year, and the next 5 years?
We spent much of 2023 carefully crafting our go-to-market plan. We hired outside consultants to help us re-craft our ideal plan to continue to grow TATU.
We will engage in a four-step plan for growing the market penetration of TATU.
Step one is to leverage the huge growth in the functional beverage market, leverage our environmental ethos as our significant differentiator, and create a community of TATU enthusiasts. We will use brand ambassadors, attend fitness festivals and wellness events, and utilize social media.
We will push our D2C sales engagement via our website and Amazon to ensure that we can control the messaging on the attributes of our functional TATU protein water. This medium will also allow us to share education on the importance of protein, hydration, and clean and simple ingredients.
Our second step is to expand TATU into targeted boutique fitness studios and gyms. This wholesale strategy will prepare us for larger retail chains once we have created significant brand recognition for TATU.
This step will be a phased introduction, beginning in the Pacific Northwest, followed by the West Coast, the East Coast, and then throughout the Midwest metropolitan areas.
Step three will build on the success and product appeal of steps one and two, with expansion into the natural grocery market. We will target 3,500 of the 26,000 retail grocery stores in the US that feature clean label, functional foods, and beverages. We plan to follow the same phased approach, starting with the Pacific Northwest.
Lastly step four, on achieving success in steps one, two ,and three, we will range TATU into the mass retail market. At this point, we believe we will have created significant demand such that we can move products at scale and provide appealing margins to mass retailers.
As we work through steps one through four for TATU, we always have new product ideas brewing and hope to add to our line of products of high-protein functional foods and beverages.
What’s the best thing you read in the last year?
“The Diary of a CEO” by Steven Bartlett, is hands-down the best book ever on growing a business.
Advice for other entrepreneurs who might be struggling to grow their business?
The best advice that I can give you, is advice that I have to heed myself every single day. Keep. Pushing. Forward.
There are days that I feel like we are moving two steps back for every one step forward, but I know that we have to keep pushing. There is no doubt that it is tempting to throw one's hands up. It is hard to keep pushing forward. I believe that many entrepreneurs fail because they simply stop pushing forward on their dreams, just short of the goal line.
This is a hard business; if it was easy then tons of people would be doing it. You have to be okay with hearing “no” and being rejected. If you believe in your idea, you need to keep at it. You will make it. I believe in me and I believe in you!
Are you looking to hire for certain positions right now?
We are always interested in hiring Sales positions/wholesale reps who are immersed in the CPG beverage world. We hope these people have a passion for better-for-you products, as well as a commitment to the UN Sustainable Development Goals. We want to welcome you to our mindful family. If this sounds like you, please email us a resume at [email protected] with Wholesale Sales Rep in the subject line.
Where can we go to learn more?
If you have any questions or comments, drop a comment below!
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
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