How We Re-Invented America's Favorite Dessert [And Sold Hundreds Of Thousands]
Hi! I’m Candace Wu — one of the founders of Wonder Monday, a healthy snack brand re-inventing America’s favorite dessert: the cheesecake.
Our high protein, low carb, no sugar added cheesecakes taste just like the real deal with an impeccable nutrition panel: 1g net carb, <1g sugar, 5g clean protein, and 90-100 calories. We have 6 decadent flavors: Classic New York, Strawberry Bliss, Key Lime Pie, Pumpkin Spice, Salted Caramel, and Chocolate Decadence.
My partner, Jonathan Weinstein, and I started the brand with no prior CPG experience and no venture funding. Since launching in early 2021, we’ve sold hundreds of thousands of cheesecake snacks to all 50 states — all online!
What's your backstory and how did you come up with the idea?
I’ve always believed in the power of good food to transform your life. Before starting Wonder Monday, I worked as a Product Manager at WW (Weight Watchers) on their mobile app and focused on designing app experiences to help 4.5m+ members on their wellness journey.
There, I had the opportunity to intimately understand and interact with everyday people who were actively working on transforming their health. I spent a large amount of my time partnering with the WW Behavior Science team to design features that helped members get back on track after a setback or plateau.
Through this experience and implementing learnings into my health journey, I learned that the most impactful way to create sustainable change was intuitive eating and redefining my relationship with “bad” foods. I grew very fond of discovering and making my own healthy alternatives to foods I enjoyed.
Your job as an entrepreneur and operator is to focus on the things that matter in a world where distractions and shiny objects are everywhere.
In 2020, in the middle of the pandemic, I decided to quit my job to start something new — it’s always been my dream to start my own company. At the same time, my partner, Jonathan, had just finished up at the startup he previously co-founded. We were really excited about creating something together, ideally something we could use (or eat!) every day. Now if there’s one thing you should know about us, it’s that we care a lot about the quality of our food. We’re the kind of people to read every ingredient on the nutrition label. And, we’ve even been known to go on dates to our favorite supermarkets to browse the latest products.
One day, we were strolling through the grocery store looking for a cheesecake. Except, every single cheesecake we found was filled with sugars, grains, and a list of additives a mile long.
So we set out to create a snack as delicious as our favorite cheesecake, but without sugar, carbs, and junk. We started with real ingredients we could stand behind, then spent over a year crafting an impossibly decadent and nutritious snack.
Take us through the process of designing, prototyping, and manufacturing your first product.
The first healthy cheesecake we ever made was baked in our kitchen using our trusty red Kitchen-aid mixer. We had a pantry stuffed with specialty ingredients from suppliers and housemates who tried a new version of cheesecake every day. To test our concept and make sure there was a market for our product, we created a simple Shopify website, listed our product for sale, and ran paid ads. In the first week of running ads, we had our first 200 customers. That’s when we knew we had something special.
Initially, our cheesecakes were produced in a commercial kitchen and all the packing and fulfillment were done by Jonathan and me.
We sourced specialty ingredients by googling and reaching out to vendors and found the right packaging through trial and error. Given the fact that our product is perishable, we also focused on designing our products and price pack architecture to ensure cost efficiency and profitability.
We financed the brand with a small grant we’d won along with personal savings and reinvesting profits.
When you’re first starting out, focus on shipping your MVP and iterating. Listen to your customers (not friends or family who’re being nice).
Describe the process of launching the business.
We got started by launching a basic Shopify site using the free Brooklyn theme and product photos I took with my iPhone. We quickly saw early success and traction within the first week of running Facebook ads and converting our first 200 customers.
After we established a semblance of product market fit from sales and feedback from our early customers, we then spent the majority of all our time on further refining and iterating our product.
During these early days, we worked closely with a trained French pastry chef who helped us refine our product and we simultaneously developed a really deep understanding of the costs, manufacturing, ingredient, and quality process. Being very hands-on was critical as the brand grew and we used our knowledge to vet vendors, partners, and manufacturers.
During this time, we also figured out how to ship our perishable products all over the country in a cost-effective and profitable way.
From there, we taught ourselves performance marketing and brand building along with recipe development, food manufacturing, perishable shipping, logistics, and everything else required to be a successful food brand.
Within the first 3 months, we quickly realized that self-manufacturing was not sustainable due to product demand and we started to identify the right co-manufacturing and 3PL partner.
We soon found the right co-manufacturer and worked closely with their R&D team to commercialize our product. The search and R&D process took roughly 7-8 months.
Since launch, what has worked to attract and retain customers?
In the early days, the majority of our traffic was from Facebook and Instagram ads. We used to see 7x-11x return on ad spend. As we’ve grown with iOS 14, we’ve diversified into other paid channels as well as influencer/ambassador marketing. We’ve seen great success with influencers who align with our product values along with traditional word of mouth.
Once a customer has discovered our world, our goal is to give them a deliciously fun experience and bring them along for the ride. We do this by inviting them into a private Facebook group where we post BTS as well as provide a space for customers to talk to each other. We send a monthly newsletter that’s a recap of fun updates and things that happened within the brand.
Additionally, we’ve expanded into strategic partnerships with other reputable brands and their audiences. For example, in January 2021, we launched Weight Watchers on their marketplace. It’s been a fantastic place for us to get in front of our target customers. We have a number of brand partnerships launching soon…stay tuned!
How are you doing today and what does the future look like?
We’re continuing to expand and grow online! Currently, our sales are still 100% online from our online store along with a few strategic online partners. Our next step is expanding into retailers to be in a grocery store near you.
If you’re in the food CPG space, always remember taste is king.
Through starting the business, have you learned anything particularly helpful or advantageous?
Know your margins like the back of your hand.
In the food & beverage CPG space, the gross margin target is 40%. If your product allows, I would aim for 50%+ to give you ample space for all the related expenses required to comfortably operate and scale (e.g. slotting fees, marketing/promos, freight).
The influencer marketing space is the wild west. Focus on building real relationships with influencers who genuinely care about you, your brand, and your product.
What platform/tools do you use for your business?
Our marketing tech stack is pretty straightforward — Shopify, Klaviyo, One Text, Klaviyo, Dovetale (Now Shopify Collabs), and Shipstation.
Lightroom for photo editing and Clipping Magic is my holy grail for clipping images with a transparent background instantly.
What have been the most influential books, podcasts, or other resources?
My must-read book for all eCommerce founders is Traction by Justin Mares.
Demand Curve is also a fantastic resource.
Advice for other entrepreneurs who want to get started or are just starting out?
Your job as an entrepreneur and operator is to focus on the things that matter in a world where distractions and shiny objects are everywhere.
Crazy topline revenue growth…a fancy website…sexy retailer launch.
Is chasing topline sacrificing sustainable growth and profitability? Is your fancy website design actually necessary? Once you launch in this retailer nationwide, how are you going to stay on shelves?
When you’re first starting out, focus on shipping your MVP and iterating. Listen to your customers (not friends or family who’re being nice). If you’re in the food CPG space, always remember taste is king.
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.
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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