Edible-Alpha® Podcast

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Edible-Alpha® is your source for actionable insights into making money in food. Hosted by Tera Johnson, we talk to a wide range of stakeholders about what it really takes to grow a successful food business. Learn more at www.edible-alpha.org

Tera Johnson - Food Finance Institute


    • Oct 27, 2022 LATEST EPISODE
    • infrequent NEW EPISODES
    • 1h 4m AVG DURATION
    • 182 EPISODES
    • 1 SEASONS


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    Latest episodes from Edible-Alpha® Podcast

    Helping Food and Farm Entrepreneurs Access R&D Funding

    Play Episode Listen Later Oct 27, 2022 66:08


    In Edible-Alpha® podcast #121, Brad talks with Idella Yamben, Ph.D., director of the Center for Technology Commercialization (CTC), which, like FFI, is part of the University of Wisconsin System's Institute for Business & Entrepreneurship. CTC offers a variety of programs and resources to help early-stage technology businesses—including those in the food or agriculture space—develop and conduct research to inform commercialization strategies and access funding to support the work.   Idella insists that research and technology aren't only about next-gen gadgets, machine learning, or university lab studies. CTC mainly works with inventors who have a novel approach to addressing a critical problem. For instance, maybe a farmer thinks of a way to boost crop yields, or a food entrepreneur wants to assess a new manufacturing process. CTC could help them determine how to test their hypotheses, business models, and market viability. “You might not think what you're doing could use technology, be innovation, or require research,” Idella says. “But my team's job is to see if those opportunities are there and help you go after federal funding.” One of CTC's offerings is Ideadvance, which provides companies with seed money to test their business models through the Lean Startup framework. It helps them hone in on their target consumer, path to market, positioning, etc., to give the product, service, or solution the best chance of success. CTC also prepares entrepreneurs to apply for Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, aka America's Seed Fund. Through this highly competitive program, 11 government agencies, including USDA, offer grants for early-stage R&D. Through all of its programs, CTC helps startups test assumptions, which Idella says is basically the scientific method: “You make a hypothesis, develop an experiment, run it, then iterate.” But to ensure the best outcomes, she says it's important to take a very disciplined approach to determine what that assumption and experiments should be. CTC helps entrepreneurs do that, often in partnership with industry-specific resources such as FFI. A key piece of the Lean Startup model is customer discovery, which involves both listening to potential customers and then running experiments to validate what an entrepreneur thinks they heard. Ideally, the results can provide answers around cost, revenue, or value proposition. Idella says those findings should then be balanced against the team's goals and unique capabilities, which will help differentiate the business proposition. Through this process, entrepreneurs learn to synthesize information and become storytellers, both important skills for seeking any kind of financing. Also through this work, entrepreneurs typically meet a lot of people and learn a ton. By listening well, Idella says they could identify a new angle, a different problem, or an opportunity to pivot. And pivoting early could save a lot of headaches—and money—later on, potentially even preventing a failed business. Brad and Idella cover a whole lot more in this engaging podcast, including the many free tools, resources, and funding sources available to food and farm entrepreneurs.

    Financial Lessons from a Successful Diversified Farm

    Play Episode Listen Later Oct 13, 2022 81:10


    In Edible-Alpha® podcast #120, Andy sits down with Cliff McConville, founder of All Grass Farms northwest of Chicago. The diversified ag operation provides raw A2 milk, 100% grass-fed beef, pastured pork, organic vegetables, and free-range turkeys, broiler chickens, and eggs, all sold at the onsite farm store or online. After working in the insurance business in Chicago for 25 years, Cliff's last job allowed him to work from home. Now with more free time, he and his partner Anna purchased a suburban horse farm. Soon the documentary Food Inc., Michael Pollan's The Omnivore's Dilemma, and Joel Salatin's You Can Farm sparked his intrigue in small-scale regenerative farming, so in 2011, he gave it a go on their 8.5 acres. Cliff loved the work and realized it could become a small business, so in 2012, they started selling grass-fed and pastured proteins out of their house. Customers asked for raw A2 milk, which was not on Cliff's radar, but once he researched its benefits, he became a devotee. They bought two Guernsey cows, got licensed to sell raw milk, secured liability insurance, and added the in-demand product to their mix. With business booming, Cliff and Anna needed to increase production, so they leased 20 acres of pastureland near their home. Needing even more pastureland and ideally a dairy barn, they found exactly what they were looking for in the Brunner Family Forest Preserve, a picturesque property along a busy suburban highway. After 18 months of negotiations, they worked out a unique 25-year lease. The forest preserve invested $200,000 to restore the historic dairy barn's roof and foundation while Cliff and Anna foot the bill for septic, electricity, fencing, and other upgrades. They lease 160 acres for $150 per acre and pay the preserve 5% of all farm store sales. Cliff calls this a wonderful partnership, and the property's high visibility has supercharged sales.   Next, Andy and Cliff dig into the financials, as Cliff meticulously tracks production costs, sales, and profits of each enterprise. The largest and fastest growing animal enterprise is beef, while raw milk, which requires a ton of labor and time, isn't nearly as profitable, so Cliff caps production. His data also informs when and where to raise prices to ensure profitability.   Uniquely, All Grass Farms has equity investors, longtime friends who were eager to provide patient capital. Later on, they took out an operating line of credit to help with infrastructure improvements. Most recently, Cliff and Anna began leasing organic pastureland in Elkhorn, Wisconsin, owned by the Yggdrasil Land Foundation. With a triple-net lease, they maintain the buildings, property, and infrastructure and pay insurance, property taxes, and a stewardship fee as rent. Cliff and Anna now live at this property and are looking for a full-time farm manager for the Brunner property, although finding and keeping workers is challenging. Cliff is a great role model for managing farm finances, so tune in to learn more!

    Farmer Brothers Distill Grains into Profits

    Play Episode Listen Later Sep 29, 2022 64:51


    In Edible-Alpha podcast #119, Andy talks to Will Glazik of Cow Creek Organic Farm and Silver Tree Beer & Spirits in Paxton, Illinois. The fifth-generation farmer is building upon his family legacy with his own organic grain operation and vertically integrated distillery business. Will's parents transitioned Cow Creek Farm to organic in 2002, an anomaly in an area dominated by conventional row-crop agriculture. He went off to college, got an agronomy degree, and entered ag retail while still helping his father farm on the side. But selling chemical fertilizers and pesticides didn't really jive with Will's values. Instead, he enjoyed teaching area farmers how to save money and be more sustainable through cover-cropping, reduced tillage, integrative pest management, and eventually transitioning to organic. Though he was a sought-after consultant, Will wanted to farm. But with ground costing up to $14,000 per acre in his county, purchasing land wasn't the best option. Instead, by chance encounter, he met landowner Jackie Davis, who wanted to transition her ground to organic. The two hit it off, forged a 50/50 share crop agreement, and Will got to work, using $20,000 he'd saved up. Going in, he thought he had all the answers, but he soon learned he did not. There were some tough years, but Jackie remained supportive. After working out the kinks, Will says they went “hog wild,” expanding their rotation to 14 crops, bringing in hogs and cattle, and dabbling in distilling. Combined with raising a young family, this was a recipe for burnout. All along, Will just assumed that his specialty crop variety made him more profitable. But once he hired an accountant, he learned that wasn't the case. In reality, the extra work required to grow some of those crops canceled out the profits. So he streamlined his operations, narrowed his crop assortment to six, and created a better work-life balance. Now, rather than acquiring more acreage, he's trying to coax more profitability out of each acre—a smart move since growing grains isn't Will's only endeavor. Already hobby brewers, he and his brothers founded Silver Tree Beer & Spirits in 2017 to turn their grains into beer, vodka and whiskey. They partnered with an established distiller to produce the vodka, then the Glaziks “busted their tails” trying to secure distribution. Will says the marketing part is tough, but they've learned a lot and built solid relationships. Meanwhile, they began aging their whiskey, ready for release this fall. When their distiller decided to scale up, he sold his equipment to the Glaziks. Then last year they bought a fixer-upper in Paxton, gutted it, moved in the equipment, are now almost ready to start distilling. By owning every step from farm to bottle, their margins will balloon. Eventually, they'll open tasting room and tour experience, which the town is thrilled about. Tune into the full podcast to get the full story, including how Will and his brothers have financed their endeavors.

    Sisters Succeed with Simple Syrup, Soda Shop, and Subscriptions

    Play Episode Listen Later Sep 1, 2022 78:20


    In Edible-Alpha® podcast #118, Andy has a fascinating discussion with Belinda Kelly and Venise Cunningham, co-founders of Simple Goodness Sisters. The two started with a retail line of small-batch simple syrups and have since diversified with a subscription box club and the Simple Goodness Soda Shop in Wilkeson, Washington. Growing up with a family business, Belinda and Venise knew they wanted to be entrepreneurs someday. Both worked in tech in Seattle, but after becoming moms, they craved careers more aligned with their passions and lifestyles. Venise loved working on Simple Goodness Farm, which she and her husband bought in 2010, while Belinda enjoyed cooking. In 2016, Belinda quit her corporate job and launched a mobile bar business that became an instant hit. The secret to her success were her handcrafted simple syrups featuring herbs, fruits, and edible flowers from Venise's farm and other locally sourced ingredients. Serving craft cocktails at events ginned up demand for the syrups, and Venise eventually convinced Belinda that they should launch a retail product. So, they set to work on Simple Goodness Sisters, with Belinda developing recipes and Venise researching potential co-packers. They finally found a co-packer six hours away that would take their very small, self-financed run, capped at 1,000 bottles to test demand. Though that partnership was ultimately unsustainable, they learned a ton about producing at scale. Launching their first flavors in 2018, they received rave reviews and decided to ramp up production. As their business grew, Belinda sold the mobile bar company and Venise expanded production on her farm. While still using a co-packer, they wanted to get certified to produce small batches themselves, which leads to their brick-and-mortar endeavor. They'd purchased a historic building in touristy Wilkeson, envisioning it as a seasonal off-farm agritourism destination for sampling cocktails, sodas, and other items featuring their syrups. Also, having learned from an FFI boot camp that they needed a steadier cash flow, they began plotting a subscription box featuring special-release syrups that they'd produce onsite.   When the liquor board demanded that they also sell food, Belinda and Venise pivoted concepts to include a farm-to-table sandwich menu. The pandemic forced even more pivots, first delaying the Simple Goodness Soda Shop's opening from May to October 2020 and then turning it into a to-go joint. Still, the shop gained a following in the 10 weeks it was open before closing for the season. In early 2021, they launched Cocktail Farm Club, which has grown significantly, aided by the sisters' active social media presence and key PR opportunities. They also reopened the Soda Shop in May and had a great first full season, followed by a bustling 2022 so far. With their retail, wholesale, and e-commerce business growing as well, Simple Goodness Sisters has outgrown its co-packer. So now Belinda and Venise want to invest in their own production facility, which will require more financing. Having mostly self-financed and invested in real estate thus far, along with receiving a USDA marketing grant, this will be an exciting next phase for this inspiring business.

    Doctor Turns Dates into Healthier Sweetener

    Play Episode Listen Later Aug 18, 2022 62:58


    In Edible-Alpha® podcast #117, Brad chats with Sylvie Charles, M.D., who traded a stable career as a physician for the wild ride of entrepreneurship when launching organic real-food sweetener company Just Date in 2018. She shares the mission behind her endeavor, along with her business arc and growth strategy. As a practicing physician at the University of California, San Francisco, Sylvie was alarmed by the rise in obesity, type 2 diabetes and other chronic illnesses. She knew that refined sugar in the diet was a key culprit, yet her patients often struggled to cut back. Realizing that there really wasn't a healthy, great-tasting alternative to cane sugar, she thought about nutrient-rich dates, which her Indian family used to sweeten chutneys. Sylvie got to work developing a low-glycemic organic date syrup that has less sugar than maple syrup, honey, or agave and delivers fiber, vitamins, and minerals. Her family, friends, and patients loved it, so she took it to Bay Area natural foods retailers, where it flew off the shelves. About two months in, Just Date broke into Whole Foods Market nationwide, prompting Sylvie to quit practicing medicine to be a full-time entrepreneur. The move paid off. After three years of proving the concept with three flagship SKUs and several other products, Just Date is now in about 2,000 natural retail doors. The brand also does a robust e-commerce business and has a small but growing foodservice arm. Sylvie has mainly bootstrapped the company with her own money, loans, credit, and reinvested revenue, which limited growth and kept it mostly a one-woman show. Recognizing that raising funds and building a team could turbocharge the next phase of growth, she recruited a business partner from the tech world last year. Together, they raised a successful seed round and put together a sales and marketing team. Though bootstrapping made for some lean years, Sylvie is grateful she is only receiving investor money now that she knows exactly how to spend it. In less than a year, the company has made tremendous progress, including by optimizing its supply chain, enhancing sustainability, and refining its messaging and branding. Acknowledging that sugar science is complex and the array of alternative sweeteners is confusing, Just Date has opted to message more around its simple, clean ingredients and low-sugar proposition. What's next for this growing company? While it has done wonderfully in the natural channel, Sylvie says there is still room for growth there. She also aims to make more inroads in conventional to reach a broader audience. More opportunities are opening up in the foodservice space too, and as an ingredient play, with other CPG brands swapping sugar for Just Date sweeteners. Though the exact path ahead isn't carved out yet, Sylvie hopes to grow the company to about $20 million and exit in about five years.

    SBDC Consultant Helps Food Businesses Go Global

    Play Episode Listen Later Aug 4, 2022 54:41


    In Edible-Alpha® podcast #116, Sarah sits down with Chris Wojtowicz, international trade consultant with the Wisconsin Small Business Development Center (SBDC). With 30 years of experience in trade development and trade compliance, he helps small businesses statewide plan and execute their global strategies.   According to Chris, less than 1% of U.S. companies export, yet more than 95% of the world's market lies outside the U.S. Therefore, selling excess capacity overseas or simply expanding internationally could be a smart play for food and farm businesses. Many entrepreneurs assume it'll be too complicated, expensive, or scary, but Chris insists it doesn't have to be. It just requires research, planning, and tapping into the right resources. Chris tells clients to first evaluate their product, its benefits, and the reason consumers want to buy it. Then explore various international markets to learn whether they are importing similar products and/or would have a desire for theirs. To help, the International Trade Administration has a database at export.gov that suggests market opportunities for specific products. Next, zero in on the nations with the most potential and develop a strategic market entry. Entrepreneurs should decide how they want to sell, such as direct to the end user or through a distributor, and what each path would entail. Overall, this process is very similar to planning a regional or national expansion, except it also requires consideration of foreign regulations around food safety, packaging, labeling, licensure, taxes, etc. Entrepreneurs must also look at costs and logistics, and if working with a distributor, hammer out terms such as who covers freight, insurance, and loss. Clear documentation and good relationships are key. On the surface, this all might seem daunting to a small business owner. But there are plenty of resources to help, including SBDC and the Wisconsin Economic Development Corporation (WEDC) and similar organizations in other states, as well as the U.S. Commercial Service and industry trade associations. Domestic resources such as these can then connect entrepreneurs to foreign-equivalent organizations.   With the right guidance, Chris says even very small companies can successfully go global—in some cases, even before they expand domestically. It all boils down to finding the white space and executing on the right opportunities—and budgeting time and money carefully, of course.   There's a lot more valuable info packed into this podcast, so definitely tune in!

    Hill Valley Dairy Broadens Family Legacy

    Play Episode Listen Later Jul 21, 2022 62:50


    In Edible-Alpha® podcast #115, Andy talks with Ron Henningfeld, founder and cheesemaker at Hill Valley Dairy in Lake Geneva, Wisconsin. Sourcing milk from his family's small dairy farm nearby, the company sells a wide variety of artisan cheeses at local shops, farmers markets, and restaurants and recently opened its own downtown storefront. Ron loved growing up on Romari Farms and wanted to stay involved in some capacity. He studied ag education and biology at the University of Wisconsin-Madison, where he began dabbling in cheesemaking, but only as a hobby. After teaching high school for a few years, he decided to pursue his passion, hoping cheesemaking would someday lead him back to the family farm, now owned by his oldest brother. But first Ron had to hone his craft. He apprenticed at UW's Babcock Hall, then took a job at a creamery, and then helped open Clock Shadow Creamery in Milwaukee in 2012. These experiences taught him the art, science, and nuances of cheesemaking and helped him broaden his skillset. Eventually, Ron felt ready to strike out on his own. In 2016, he and wife Josie launched Hill Valley Dairy, with Ron as the cheesemaker and Josie in charge of marketing. By renting production space from Clock Shadow, their operating costs were quite low, allowing them to self-finance the business. They also started small, making 50 to 100 pounds of cheese every few weeks to sell at two farmers markets. Hill Valley Dairy stayed hyperlocal for the first few years, building a following with delicious staples like cheddar, gouda, and cheese curds. But as they gained more traction and demand, they added more wholesale accounts and launched unique artisan varieties, including two prizewinning cave-aged hard cheeses, Luna and Alina. Today, Ron produces 500 pounds of cheese a week, using almost 20% of the milk his family's farm produces. Still renting space from Clock Shadow, he takes a truckload of milk to the creamery each week, makes cheese, then hauls it back to the farm to age, cut, package, and distribute. The couple's two young daughters love helping out, making Hill Valley Dairy a true family business. Earlier this year, Ron and Josie opened Hill Valley Cheese Shop in downtown Lake Geneva, a bustling tourist town between Madison, Milwaukee, and Chicago. They sell their own products, of course, plus cheeses from other local artisans, and soon they'll add a cheese bar to make it more experiential. Now with more overhead and infrastructure, Ron and Josie have brought in outside capital and financing. They received a value-added producer grant (VAPG) in 2018, which they qualified for because his farmer brother owns a small part of Hill Valley Dairy. This past winter, they scored a Wisconsin Department of Agriculture grant to do a feasibility study on building their own creamery. Most recently, they opened a line of credit with a local bank to help buy equipment and build up their brick-and-mortar space.   Tune in to get the full scoop on this growing Wisconsin food business's inspiring trajectory!

    Grassway Organics Cultivates Community

    Play Episode Listen Later Jul 7, 2022 71:07


    In Edible-Alpha® podcast #114, Andy chats with Chaz Self, owner of Grassway Organics in southeastern Wisconsin. This regenerative, certified-organic farm raises 100% grass-based dairy, beef, and poultry; operates a farm store; and hosts Pizza on the Farm.     California-born Chaz grew up passionate about animal welfare but had never set foot on a farm. Then, after moving to Wisconsin as a teen, he became curious about ag and enrolled in a farm management program at a local technical college. Through that, he got a job milking cows at a CAFO and loved it. “It was not the way I chose to farm, but it taught me everything I didn't want to do,” Chaz says. “It opened my eyes to how big the ag world really is.” From there, Chaz and his wife, Megan, worked at a few smaller farms, including in Norway. There, as part of the Worldwide Opportunities for Organic Farms (WWOOF) program, they milked 14 grass-fed cows at a biodynamic farm and fell in love with the sustainable, community-focused agricultural principles. Back in Wisconsin in 2016, they met a ready-to-retire farming couple in New Holstein who wanted to pass on their land and business. Excited about mentorship and succession, Chaz began working for the couple full-time. With an FSA loan, the Selfs bought the business, cows, equipment, store, and inventory—everything but the land and buildings. They also purchased a food truck to make and sell pizzas for extra revenue. After a year in business, the Selfs made an offer on the land but were outbid, forcing them to find a new location. Chaz called up the Yggdrasil Land Foundation, which buys up organic and biodynamic farmland to lease to young farmers. In “a serendipitous moment,” there was land available near East Troy. Fifty-eight semi loads later, Grassway Organics had a new home. With a 30-year contract, the Selfs rent 390 acres, plus 150 acres for forage, from Yggdrasil. They raise Jerseys that produce A2/A2 milk, which has health benefits over conventional A1/A1 milk. And because their milk is raw, their farm store sells only to co-op members in accordance with Wisconsin law. The store also features their grass-fed beef and pastured chicken, turkey, and eggs, as well as local producers' pastured pork and bulk goods. Grassway Organics also operates an e-commerce store and delivers to drop points around the state.   With live music and a casual vibe, Pizza on the Farm is a huge success, accounting for about half of the business's revenue. The weekend events enable the community to gather and learn about regenerative ag while allowing Grassway Organics to support other local producers. They now have 15 employees for pizza nights and used a value-added producer grant (VAPG) to hire marketing help. On the financial side, Andy and Chaz discuss the pros and cons of renting versus owning land, how VAPGs can transform a farm business, and how family farms can benefit local economies and uplift entire communities.  

    Clean Beam Advances Food Safety for the 21st Century

    Play Episode Listen Later Jun 23, 2022 87:35


    In Edible-Alpha® podcast #113, Brad connects with Mark Cottone, founder of Clean Beam, and Jim Rush, the company's marketing director. Clean Beam's revolutionary footwear sanitizer powered by DryZap!, its patented pulsed ultraviolet (PUV) light technology, helps processing facilities enhance food safety and security. After Mark's other company, Cougar Packaging Concepts, began using PUV to sanitize and extend the shelf life of food, the idea arose to apply DryZap! to footwear in food processing facilities. He started Clean Beam about five years ago to develop a dry, fast, chemical-free sanitation solution to replace boot washers and other existing systems, which are notoriously problematic. The initial goal was simply to protect plant employees from slipping. But then, through rigorous testing, the team realized DryZap's superior speed, efficacy, and consistency in eliminating a wide range of contaminants. PUV kills bacteria, molds, yeasts, and other pathogens in six seconds or less and delivers the kill value of heat without changing a product's temperature. Plus, as an electronic system, the Clean Beam sanitizer tracks every user and feeds data into the cloud. This enables plants to track movement patterns and pinpoint the source of problems should they occur. Overall, DryZap! has the potential to prevent security breaches while providing total traceability, monitoring, and predictive analytics. Clean Beam's innovation is especially timely, as all food manufacturers must now comply with Food Safety Modernization Act (FSMA) rules. Through FSMA, FDA requires companies to implement preventative controls, to be proactive about food safety rather than reactive. Although DryZap! would be a stellar solution for most any production facility, there is still a steep education curve for many food companies. In their industry conversations, Mark and Jim explain that FSMA compliance is about more than checking a box. Yes, a standard boot washer might make them compliant, and no, they may not foresee any safety issues now, but the costs of weathering a recall are astronomical. As Jim points out, “this is a cost-avoidance play as much as a cost-savings play.” Along with educating potential customers, Clean Beam also listens to their pain points and needs. This consultative selling approach may be slower than hard-selling, but Brad says it is ultimately more effective. It helps entrepreneurs engender trust in the industry and hone their solutions to better suit the companies they want to help. This has definitely been the case for Clean Beam, which has been evolving its offerings in response to these conversations—and they are definitely not done innovating yet! Tune in to hear the full story of Clean Beam's inception, development, launch, sales strategy, and goals for growth. This podcast offers great guidance and inspiration for food technology entrepreneurs, as well as food manufacturers looking to safeguard their operations.

    Together Farms Diversifies into Agritourism

    Play Episode Listen Later Jun 9, 2022 74:16


    In Edible-Alpha® podcast #112, Andy sits down with Stephanie Schneider of Together Farms in Mondovi, Wisconsin, at the edge of the Driftless Area. This diversified farm business sells 100% grass-fed beef and lamb, pastured heritage pork, and meal kits direct-to-consumer, delivering locally and shipping regionally. Together Farms also hosts farm tours and Burger Night onsite. Stephanie and husband Andy purchased the “dilapidated old dairy farm” and small farmhouse in 2009, wanting to raise their daughters in the country and produce their own food. Neither had ag experience, so they had to learn it all—and build most of the infrastructure—as they went. Committed to raising animals 100% on grass, they made mistakes along the way but gained knowledge and experience too. Around 2012, adjacent acreage came up for sale, so the Schneiders seized the fortuitous opportunity, bought the land, and tried to turn farming into a real business. They planned to sell their meats at farmers markets, but when that fell through last minute, they pivoted to online sales—long before most farms were doing it. Figuring out e-commerce was tricky, as neither Stephanie nor Andy had marketing backgrounds either, but they got it dialed in. Then a few years ago, Stephanie was “drowning in lard” and wanted to figure out a way to use it. She also hoped to branch into agritourism. To accomplish both, plus feature Together Farms' grass-fed beef, she came up with Burger Night. The Schneiders didn't have restaurant experience, but folks from farm-to-table restaurants they supplied meat to helped them get it off the ground. After a successful test-run in 2017, bolstered by a feature on Wisconsin Foodie, the Schneiders invested in the infrastructure to host Burger Night every weekend May through October. The event really took off during the height of the pandemic and now draws some 500 people per weekend. Although Stephanie quit her day job two years ago, the family still relies on Andy's off-farm income. He plans to join her full-time within two years, which will help them “get our heads above water from the daily grind,” get a better handle on their businesses, and boost efficiencies across the board. In the meantime, the Schneiders secured loans to construct a building for hay storage and pig housing, plus a multipurpose facility for shipping and receiving and a farm store. They aim to finish both buildings this year. Ultimately, the store will feature Together Farms' meats alongside other local producers' goods. Smartly, the Schneiders have incorporated their multiple enterprises as separate businesses. And while Stephanie says they still have a lot to learn about finances, they've done a good job of keeping expenses in line with cash flow, receiving help from FSA, EIDL money, and Buy Local, Buy Wisconsin grants. Once the new buildings are complete and Andy becomes full-time, they'll streamline operations further and hopefully drive more revenue.

    T4 Solutions Streamlines Grocery E-commerce

    Play Episode Listen Later May 26, 2022 87:28


    In Edible-Alpha® podcast #111, Brad talks with Steve Mehmert, managing partner at T4 Solutions, a Pewaukee, Wisconsin-based consulting firm that helps grocers and other food distributors map out profitable e-commerce programs, from ordering platforms through delivery. Brad and Steve have a fascinating conversation about key challenges, opportunities, and innovations in the rapidly evolving grocery landscape. Steve started T4 Solutions in 2019, shortly after selling his first company, Mehmert Store Services. He'd spent 30 years designing and developing grocery stores, focusing primarily on independents. Through his new venture, he could leverage his expertise and connections to continue serving that market. Prior to the pandemic, independent grocers were increasingly—but reluctantly—launching e-commerce just to stay competitive. Typically, their systems were inefficient and incapable of much volume. They'd lose money on every order, but since e-commerce represented a tiny percentage of total sales, they'd shrug it off. Anticipating where the market was heading, Steve knew, as did most of these retailers, that these systems weren't sustainable long-term. But nobody foresaw COVID-19 or its impact on the food industry. With millions of Americans suddenly wanting to buy groceries online, brick-and-mortars had to up their e-commerce game STAT. Now Steve's services were in even hotter demand. T4 Solutions helps identify, develop, and deliver the best technology, tools, and systems to make each client's e-commerce program run smoothly and cost-effectively. For example, the firm offers technology-managed, temperature-controlled lockers that hold online orders for customer pickup, as well as temperature-controlled delivery vehicles to replace crowdsourced drivers. T4 also helps clients set up micro-fulfillment centers, onsite order storage, and other e-commerce infrastructure. Brad and Steve discuss how the food landscape has shaken out over the last two years. Today, grocers' sales remain well above pre-pandemic levels, and many continue to do robust online business. Though most retailers have streamlined e-commerce, there are still kinks to work out and improvements to be made, especially amidst the challenging labor market. Next, they dig into Amazon's grocery strategy and how corporate grocers are expanding e-commerce services. Steve says even the big guys don't have everything figured out. He firmly believes independents can and should compete, and those willing to evolve and embrace technology can thrive. He envisions grocery stores big and small moving to more micro-fulfillment models, finding them more efficient and able to serve even more customers. T4 isn't done devising solutions either. Steve loves a challenge, and in today's food industry, new ones arise constantly. He details the latest projects he's working on, including figuring out a merchandiser for impulse purchases to accompany the lockers. And while most of his clients are grocers, he's also working with food banks and organizations serving rural and urban food deserts. This podcast is packed with many more insights, so be sure to tune in!

    Flavor Temptations Finds Formula for Omnichannel Success

    Play Episode Listen Later May 12, 2022 90:29


    In Edible-Alpha® podcast #110, Brad chats with Sara Parthasarathy, co-founder of FillMyRecipe, which makes Indian spice kits, spice blends and sauces under the Flavor Temptations brand. She and husband Partha Sabniviss launched the business 10 years ago to share their joyful, vibrant Indian culture with Americans and make it easy to cook authentic Indian cuisine. Both IT professionals, Sara and Partha moved to the U.S. in the late 1990s and settled in Madison, Wisconsin. When their son went off to college, he wanted to cook Indian food but struggled to replicate his mom's dishes, which Sara had learned from her mother. She set him up with recipes, sachets of premeasured spices, and step-by-step instructions—and it worked! Sara then realized that many people were in the same boat as her son. Wanting to help them connect with Indian culture, create joy in the kitchen, and take pride in their culinary creations, she started preparing cooking kits for friends and family. This was just a hobby at first, but a new business was brewing. In 2012, Sara and Partha incorporated FillMyRecipe, rented commercial kitchen space, and built an Amazon store, planning to sell exclusively online. But when a 2013 writeup in the Milwaukee Journal Sentinel supercharged their business, local grocery stores started picking up their products, then branded Ethnic Spicery. Through mentorships and entrepreneurship workshops, Sara and Partha honed their strategy and rebranded as Flavor Temptations. In 2014, they met FFI founder Tera Johnson. “She took us under her wing and walked us step-by-step through packaging, merchandising, how to approach distributors and retailers, and how to scale,” Sara says. “She helped us approach a copacker in India, which made sense because that's where the spices come from.” With production now outsourced, Flavor Temptations expanded into 70 grocery stores throughout Wisconsin and Minnesota. They also branched into food service, not a channel they'd considered, but one that made a lot of sense. Soon they got in with a Minneapolis school district, followed by some 50 school-district customers nationwide. During this period of explosive growth, Sara and Partha participated in the FaB Cap Accelerator (now the FFI Fellows Program). Brad remembers them traveling constantly to do demos, wearing many hats, and spreading themselves thin. Then COVID-19 happened, shuttering schools, suspending retail food service, and sending grocery shoppers online. Fortunately, about six months prior, Flavor Temptations had begun shoring up their e-commerce strategy, taking a course from Amazon sales guru Mike Fenrici, featured in Edible-Alpha® podcast #84. They pivoted their focus to Amazon, stepped up innovation, and expanded their offerings. Sales skyrocketed, which, along with some grants and loans, kept the company afloat through 2020. Then in early 2021, with foodservice customers still not returning, Sara and Partha considered closing up shop. But then an Edible-Alpha® Scenario Planning course helped them look at their business objectively, refocus, and set goals for the future. They decided to shrink their retail footprint to just Madison, freeing them up to drill in on the other channels. Now into 2022, the food service business has picked up again, and Sara is sharing her expertise in Indian cooking at conferences.

    Doudlah Farms Organics Builds a Regenerative Legacy

    Play Episode Listen Later Apr 28, 2022 69:52


    In Edible-Alpha® podcast #109, Andy interviews Mark Doudlah, a fifth-generation farmer and owner of Doudlah Farms Organics in southcentral Wisconsin. The 1,625-acre certified-organic, regenerative farm grows 15 different crops for human consumption. Doudlah Farms Organics also has a value-added component, milling, packaging, and selling branded dry beans, seeds, and flours direct-to-consumer and at retail. Mark actually started out as a conventional farmer, just like his father, Earl. But then in 2008, Earl was diagnosed with lymphoma, likely caused by lifelong exposure to chemical ag inputs. Realizing the environmental and human health hazards of conventional farming, Mark grew determined to do things differently—safely for the planet and people. So, to honor his dad, he transitioned 40 acres to organic. This new way of farming had a steep learning curve, but Mark, along with wife Lucy and son Jason, was committed to figuring it out. They learned a lot over the next three years, working out best practices for planting, weed control, combining, cleaning, and storing. Then when Earl passed away in 2011, the Doudlahs began transitioning the rest of their acreage to organic and regenerative. Along the way, they've continually sought support and guidance from FFI, Rodale Institute, UW-Madison, MOSES, and other resources to help hone and grow their operations. Today, along with carrying USDA Organic certification, Doudlah Farms Organics is certified by the Real Organic Project and is in the process of becoming Regenerative Organic Certified. The farm is also Yahara Pride Certified, which verifies its efforts to enhance soil and water quality. Mark explains why these measures are so important to truly regenerate the soil, protect surrounding ecosystems, and ensure safe food. As for Doudlah Farms Organics' consumer products business, Mark wishes he'd taken FFI training courses before writing his first value-added producer grant (VAPG). Our programs gave him a better understanding of various marketing channels, cash flow management, forecasting, and what it really takes to move a product from field to consumer. Now with more value-added experience under his belt, the business is growing steadily and expanding its retail footprint. To wrap up, Andy and Mark discuss financing. Most banks, even ag specialists, don't understand the nuances of organic and regenerative, let alone value-added, so it's important to find one that does. Then before signing off, Mark shares his vision for Doudlah Farms Organics and his hope for combatting climate change. 

    Field to Freezer Streamlines Meat Processing

    Play Episode Listen Later Apr 14, 2022 55:02


    In Edible-Alpha® podcast #108, Brad talks with Matt McCoy, founder and president of Field to Freezer, a Hartland, Wisconsin-based software as a service (SaaS) company that's streamlining wild game and domestic meat processing. Matt's story highlights the unsung importance of technology solutions to the food industry and serves as a guidepost for growing and scaling a viable tech-related food business.  A few years back, Matt, an avid deer hunter, recognized that small-scale meat processing was rife with inefficiencies for both processors and customers. Having founded software company Lanex 23 years ago, he'd helped all kinds of companies solve business challenges through custom solutions, so he wondered: Could he build something to help this industry? He envisioned an app that connected hunters to an extensive database of meat processors, with functionalities to make ordering, drop-off, and pickup smoother for all parties.  In 2018, Matt got to work on discovery. He visited meat processors nationwide to learn their pain points, show them sketches of his ideas, get feedback, and make tweaks. Though these #meatings, he learned that processors also needed solutions to help run their businesses, and that Field to Freezer really should expand to beef, pork and other domestic animal meat processing. The response to his proposals was overwhelmingly positive, so Matt filed a patent on the app. Then in fall 2019, Field to Freezer got accepted to gener8tor's gBETA investment accelerator, where Matt met Brad. His advisor challenged him to develop a minimum viable product, or MVP, by deer season. Having the whole system ready would be a stretch, but Matt felt he could at least launch the search tool. So he started with a website that linked to some 1,500 processors and supported it with a press blitz. Word spread fast, and Field to Freezer took off. So far, Matt has mostly bootstrapped the business, which is more common in tech than in consumer packaged goods. He says investors often have their own ideas about the company's direction, which can throw entrepreneurs off-target, making it crucial to dial in MVP and stay focused. Also, when bootstrapping, it's essential to track all the time and money spent building the business to know what it's worth down the line. Now that Field to Freezer is at a place to consider investors, Matt is looking for a partner who can help propel his vision, not just write a check. Digging deeper into domestic meat processing, Matt and Brad discuss how demand trumps supply and how Field to Freezer can help. Though this part is still in the design phase, ideally, the software will alleviate farmers' frustrations while also streamlining processors' work. Getting more domestic customers on board will also stabilize Field to Freezer's revenue model. Finally, they circle back to discovery and how integral it is for all types of food and farm businesses. Going boots-on-the-ground early on helps to spread the word, ensure the product suits the target audience, and position the company for growth.

    Exploring the Arc of Entrepreneurship with Kwadwo Owusu-Ofori

    Play Episode Listen Later Mar 31, 2022 74:28


    In Edible-Alpha® podcast #107, Brad sits down with Kwadwo Owusu-Ofori, founder and CEO of Twi Pods, maker of single-serve hot cocoa and mocha latte enriched with mental wellness–supporting nutrients. The duo delves into the arc of entrepreneurship in today's world, how it has evolved, and the tools founders need now to grow a viable food business. First, Kwadwo shares his unconventional path to starting a food company. While working toward his Ph.D. at the University of Wisconsin-Madison School of Pharmacy, he realized he'd rather create products that could help people directly than focus on research. This was around the time The Lean Startup was published, Shark Tank was becoming a hit, and there was big buzz around entrepreneurship. Kwadwo wondered if lean startup principles could be used to streamline drug development and health care access. He landed a spot in the Kauffman Foundation Global Scholar Program, which teaches academics business skills to focus their research on entrepreneurship. But rather than start a drug company as he'd planned, Kwadwo pivoted to food. Wanting to help the millions of people who grapple with anxiety, he designed a convenient way to deliver daily magnesium and other stress-busting nutrients: through canned coffee creamers. Kwadwo launched Satori Food Project on Etsy while also working full-time. After so-so success, he quit his job and went all in. Sales increased, but profits did not, and production got harder. With his Kauffman training, plus tools he'd picked up from FaB Wisconsin (where he met Brad) and various accelerators, Kwadwo knew to step back, do a postmortem, and re-strategize. He realized something huge that changed his whole attitude toward production and funding: Instead of deciding what he could achieve based on the resources he had, he should be asking, “what does this look like, finished and polished, and what resources do I need to create that?” With this “prime organization” approach, he knew he must sell on a bigger platform like Amazon, find a surefire way to keep up with production and raise enough money to get there. Kwadwo also realized that his product was odd and messaging too scientific. So he ditched the creamers, launched hot cocoa and mocha pods for Keurig machines, simplified the messaging, and changed the brand name to Twi Pods. These moves proved successful, and the company has now transitioned from startup to small business. From there, Brad brings in the three-year go-to-market arc he emphasizes in the Food Finance Institute Fellows Program, in which he helps founders map out their growth plans. Kwadwo mentions four key stages: sell a product, sell it reliably, sell it at scale, then sell it at profit. They discuss how entrepreneurs in their 30s and 40s tend to excel, thanks to more industry experience and patience. Next, they discuss how cost-cutting, right-sizing, and outsourcing in corporate America have destroyed worker loyalty and created a lane for entrepreneurship. But without the skills development and network building that corporations used to provide, entrepreneurs must navigate their own path. This is where FFI, FaB Wisconsin, university programs, and economic development organizations can be a huge help.

    Acuity's Manufacturing Pro Unpacks Risk Management

    Play Episode Listen Later Feb 24, 2022 90:37


    In Edible-Alpha® podcast #106, Brad speaks with Michael Schlagenhaufer, manufacturing consultant at FFI partner Acuity Insurance, which provides property and casualty insurance to businesses. The two dig deep into risk management and why it's so critical for food or beverage manufacturers. Uniquely, Acuity offers consultant services to all insurance customers at no additional cost. As the resident manufacturing expert, Michael helps producers large and small optimize their operations and curtail risks to their business, property, bottom line, and brand reputation. Whether related to natural disasters, food safety, product recalls, or cybercrime, he ensures that they've assessed their risks correctly and have sufficient mitigation in place. And while he doesn't tell them which insurance packages to buy, he flags key issues and helps them understand the coverage they need. When working with a new client, Michael starts by asking lots of questions, including which risks it has identified and whether it's possible to engineer those out. After visiting the facility and learning more about the business, he'll often point out several additional risks the client hasn't thought of. Next, Michael will ask how a manufacturer plans to address identified risks, and what are its recovery plans should a risk become reality. For example, has the company done everything possible to protect against natural disasters, such as building a tornado shelter, installing sprinklers, or ensuring the roof can withstand a windstorm? What are the communication and evacuation plans should such a disaster occur? And if the event causes physical damage or otherwise halts business, how will the company rebuild, when will it resume manufacturing, and does its business interruption plan cover all the bases? Michael also helps clients maximize operations. He'll discuss various manufacturing methods and technologies, such as an ERP system or new robot for the production floor, and make recommendations. He'll even sit in as clients talk with vendors to ensure they're asking the right questions and getting the products and services they need. Although it's generally true that the larger the manufacturer, the greater the risks, that doesn't mean small and midsize manufacturers should take risk management lightly. It becomes even more important as brands scale and expand distribution. Michael cites cybersecurity as an example. Many large distributors and retailers require integration with vendors' ERP systems, which exponentially increases small brands' vulnerability to cybercrime, as well as the potential ramifications of a cyberattack. Michael and Brad also discuss the importance of quality control and supplier verification. By locking in processes and certifications around each, small manufacturers can preserve their integrity and preempt product recall issues. It's all about taking proactive measures to head off future problems. Plus, when small brands have solid risk management practices and business continuity plans in place, they become more attractive to big distribution players. And as blockchain expands and full traceability becomes the norm, small manufacturers will definitely need to dial this stuff in. While risk management may seem complex, Michael stresses that no manufacturer needs to navigate it alone. There are plenty of resources that can help, including consultants like him, independent experts, trade associations, and institutions such as FFI.

    How Rustic Road Farm Became a Community Treasure

    Play Episode Listen Later Feb 10, 2022 63:18


    In Edible Alpha® podcast #105, Andy talks with Marc Bernard of Rustic Road Farm in Elburn, Illinois. He and husband Luis farm 18 acres plus hoop houses, produce honey, and raise heritage-breed pigs, free-range chickens, sheep, and goats. They also run a thriving agritourism business and growing value-added brand. A longtime horticulture enthusiast and successful chef, Marc had always dreamed of farming someday. So in 2011, when he learned of a farmhouse on five acres headed for foreclosure, he and Luis snapped it up. Neither had real farming experience, but they looked forward to figuring it out as they went. Their initial plan was to produce food just for themselves and friends while Marc stayed with his restaurant group and Luis finished up his master's degree. The Bernards started small, growing vegetables organically and pasture-raising chickens and hogs. Marc's restaurant connections provided an automatic market for their meat and eggs, and they started a farm stand and CSA for the community. Over time, they expanded their farming acreage and now raise about 700 laying hens and 150 red wattle pigs, plus sheep and goats, inviting the community to come play with the goat kids. They partner with Amish farmers downstate for turkey. Rustic Road also makes an expanding roster of value-added products, including soup, sausages, entrées, and baked goods. Marc says they've made many mistakes along the way, teaching them valuable lessons and shaping their business plan. But they've stayed committed to organic, pasture-raised, non-GMO, and—most importantly, says Marc—producing delicious food. These tenets have earned their community's support, so much so that they no longer sell anything wholesale. As suburban Chicago expands closer to Rustic Road Farm, more and more people come to visit and shop the onsite farmer's market—plus, the pandemic boosted traffic. The Bernards, along with their well-paid, empowered, talented team, love playing host, espousing a “cherish the guest” philosophy. They're also intent on expanding access to high-quality food, so the farm grows a lot of food for a local pantry. But of course, making this multifaceted business work requires keen attention to the numbers, something that Marc has always excelled at. Rustic Road tracks inventory and sales, uses data to determine harvests, works with an accountant, and is smart about financing. In the beginning, they received USDA microloans, FSA support, and a value-added producer grant. More recently, they've scored Compeer Financial loan to purchase a building for their own value-added kitchen, won a second VAPG to build up their soup brand, and got their first line of credit. Tune in to hear Marc's journey in more detail, as well as his advice for starting, operating, and expanding a viable farm business.

    Sweet Pea's Succeeds with Small-Town Pie Shop

    Play Episode Listen Later Jan 27, 2022 88:49


    In Edible-Alpha® podcast #104, Brad interviews Rachel Smith, founder of Sweet Pea's, a made-from-scratch treat shop in downtown Mayville, Wisconsin. Along with baking pies and other goodies onsite for its retail store, Sweet Pea's has a growing wholesale business, an e-commerce site, and fundraiser partnerships. Rachel aka “Sweet Pea” started baking with her grandmothers as a child and envisioned owning a unique bakery someday. Back in 2009, while still living in Minnesota, she started doing take-and-bake pies and selling them at a local meat market, quickly turning it into a pie destination. As business boomed, her husband helped bake, and they'd pull in extra hands during busy seasons. They also set up a rudimentary website for online orders. Through the next decade, Rachel and her husband grew the business slowly. With full-time jobs and busy family life, they felt no pressure to move faster. Instead, they took advantage of what Rachel calls “a very long market research period,” which prepared them for their big move to Wisconsin and the next iteration of their business. Almost two years ago, the Smiths bought an old building in downtown Mayville, initially planning to renovate it into a manufacturing facility for wholesale. But upon learning the locals loved the historic site and wanted to come inside, “we realized we'd get the support of the community if we heard their request for retail,” Rachel explains. “That was the first of many changes to our business model.” Since renovating to retail standards would require more money, the Smiths connected with the University of Wisconsin's Small Business Development Center, which led them to the Wisconsin Economic Development Corporation for a Community Development Investment (CDI) Grant. They also secured financing from the city, plus a community-funded Kiva loan, and several townspeople donated their time and skills to the renovation. Sweet Pea's started manufacturing in Mayville in July 2020 and opened the retail shop two months later. During this time, Rachel was also still producing pies in Minnesota, earning her MBA, and had “stumbled upon fundraisers” as another revenue stream. She also participated in FFI's Scenario Planning workshop, which helped her see her next smartest move: professionalizing Sweet Pea's online presence and ordering platform. Brad and Rachel discuss the ins and outs of entrepreneurship, including the importance of knowing and honoring your talents rather than trying to be everything to everyone. That said, Rachel always stays abreast of market trends and aims to deliver the flavors and formats customers crave. They also touch on the value of having a strong financing team and supportive bank that understands the food space. As part of her master's coursework, Rachel is currently evaluating whether the fundraiser channel makes financial sense. Meanwhile, Sweet Pea's continues to navigate the ongoing pandemic and labor constraints, having just gotten accepted to UW's work-study program. Moving forward, Sweet Pea's will refine its business model, establish its wholesale capacity and determine how it wants to grow, whether by pitching to more grocery stores or opening more locations—or both. Regardless, Rachel is excited to create jobs locally, foster skills development, and empower others to do this fulfilling work.

    Taste Profit Helps Businesses Strategize Digital Marketing

    Play Episode Listen Later Dec 30, 2021 58:15


    In Edible-Alpha® podcast #103, Sarah sits down with Noah Munro, MBA, founder of Taste Profit, a digital marketing and e-commerce consulting firm that supports sustainable farms and specialty food brands. They discuss the importance of crafting a marketing strategy that syncs with the overall business plan, as well as key suggestions, cautions, and benchmarks for growth. After founding an artisan fudge company and then earning his MBA, Noah launched Taste Profit to help food and farm entrepreneurs grow their enterprises. The firm offers specialists in e-commerce, SEO, food photography, blogging, PR, direct advertising, and other aspects of digital marketing to meet each client's needs. Noah is also part owner of sister company Kitchen Table Consultants, which assists entrepreneurs with financial management and business planning (featured in Edible-Alpha® podcast #62). When thinking about marketing, Noah stresses strategy, as opposed to running random Facebook ads, as many young businesses do. He says a marketing strategy should be informed by business strategy, which should be informed by personal strategy. Thus, entrepreneurs should first figure out their vision for the company, margins, sales goals, and exactly what they want to market. Also, what is their marketing budget? Noah says each case is unique but offers some guidelines for budgeting as a percentage of sales. These percentages are often bigger than entrepreneurs expect—and yes, they'll eat into profits early on—but marketing spend is crucial for growth. Next, Noah walks through Taste Profit's framework for helping clients with marketing, which centers on the acronym SPEMA: S for strategy, P for planning, E for execution, M for measurement, and A for adjustment. Listen to the full podcast to get his detailed breakdown of each step. Sarah notes that many new entrepreneurs are intimidated by marketing and don't know where to start. She and Noah discuss how farmers markets and other direct-selling events can provide invaluable market research in the early stages. Food and farm entrepreneurs can even test out different marketing strategies to see what works and what doesn't. But no matter what stage a business is at, Noah suggests having a “marketing scoreboard,” a simple spreadsheet that tracks the number of strangers (total web traffic, number of farmers market attendees who don't stop by, etc.), friends (email subscribers, social media fans, etc.) and customers (number of orders, average order size, etc.). Marketing's goal is to funnel people from strangers to friends (aka audience) to customers to loyal fans. After talking nuts and bolts, Noah outlines his own fudge business's marketing journey, complete with missteps, lessons learned, and triumphs. Then he discusses common mistakes food and farm entrepreneurs make, such as overfocusing on sales at the expense of profitability and gross margin. Finally, Sarah roleplays an entrepreneur seeking marketing help from Noah. He asks her crucial questions about her business and goals, and together they work through the SPEMA framework. This podcast offers even more actionable insights to get entrepreneurs on the right track with marketing, so tune in today!

    Betterbin Leverages Data to Demystify Recycling

    Play Episode Listen Later Dec 16, 2021 61:31


    In Edible-Alpha® podcast #102, Brad chats with Michelle Goetsch, founder, and CEO of Betterbin, a data company that empowers consumers and brands to recycle and compost CPG packaging properly. An alumna of the Wisconsin FFI FaBcap Accelerator, Michelle details her journey of bringing an app to market, building a viable business, and laying the foundation for future growth. Betterbin was born in 2018 out of a pain point. As a consumer passionate about environmental responsibility, Michelle was frustrated by how difficult it can be to determine packaging recyclability or compostability since the rules are different everywhere. “You can Google anything, so why was it so hard for me to recycle properly in my community?” she says. “I thought there has to be a way to use data to solve this problem.” There was a way—Michelle just had to invent it. Knowing that CPG manufacturers and brands catalog their product specs digitally, “I realized there is nothing stopping us from leveraging that infrastructure of data that already exists to help people know what to do with waste.” Betterbin's first product, a consumer-facing app, does exactly that, powered by proprietary machine-learning technology. Users simply scan a product barcode or snap a photo, and the app identifies the packaging materials, cross-references that data with local recycling and composting guidelines, and spits out disposal instructions. Users are then rewarded with points and gift cards. But a whole lot went into getting the product to market. Michelle first consulted with multiple stakeholders in the materials recovery sector to better understand the scope of this issue. Learning it was indeed massive and complex, she wrote a grant for her app idea and partnered with a data scientist to build it. Then, with financial help from several Wisconsin communities, Betterbin launched pilot projects nationwide. The COVID-19 pandemic paused the pilots, which was a blessing in disguise. “It gave us a moment, when things were moving so fast, to reflect on what our product was and what our goals were,” Michelle says. That's also right when Betterbin got accepted to the Plug and Play Sustainability Accelerator in Silicon Valley, introducing the team to mentors, investors, and other support, and connecting them with CPG brands to learn their pain points. Currently, the app has about 2,500 users, and Betterbin is now talking with brands, municipalities, and larger systems players about how to scale. The company is exploring various B2B2C business models, such as selling to property managers and Airbnb hosts, who can offer their tenants the app for free. Moving forward, Michelle expects policy decisions to be a big growth driver, as state legislatures start cracking down on allowable on-pack recycling and composting claims. Such policies should push more brands toward Betterbin since the app gives them an easy way to disseminate localized disposal instructions—as opposed to designing 20 different labels for 20 different markets. Additionally, the app collects unique consumer-use data that can further benefit brands, so monetizing that intel will be Betterbin's main focus in the future. Brad and Michelle conclude by discussing the nuances of launching a tech company as compared to CPG, including the level of collaboration required. Tech also needs different capital than CPG, and Michelle says it has been crucial to work with investors that understand Betterbin's growth arc, performance metrics, and sustainability mission. She stresses the importance of networking, accelerator programs, and keeping an even keel through the highs and lows of entrepreneurship.

    B&E's Trees Diversifies with Value-Added Brand Embark Maple

    Play Episode Listen Later Dec 2, 2021 61:29


    In Edible-Alpha® podcast #101, FFI's Brad Rostowfske interviews Bree Breckel and Eric Weninger of B&E's Trees, a certified-organic maple farm near Viroqua, Wisconsin. Along with tapping trees, the couple makes a value-added product, B&E's Trees Bourbon Barrel Aged Maple Syrup, and is launching a new consumer-facing brand, Embark Maple. When Bree and Eric bought their 184-acre farm in 2011, their main goal was to live off the grid while doing fulfilling physical work outdoors. If they could make and sell enough maple syrup to pay the mortgage, they'd be happy. But when their first go at it, in 2012, happened to be the worst maple syrup season on record in Wisconsin, they realized they needed a value-added component. So in 2013, they began collaborating with local Central Waters Brewing, which provides B&E's Trees with bourbon barrels to age their syrup in for two years, then uses the maple-soaked barrels to age its Maple Barrel Stout. As their business took off, Bree and Eric realized they wanted to remain a family-sized farm and keep doing the physical labor they loved. So, with about 5,000 taps in their trees, they stepped up their partnerships with other local farmers, businesses, and retailers to add more resilience to their supply chain and business model. When the COVID-19 pandemic sidelined their usual travel and events plans, Bree and Eric pivoted into another value-added project. Years prior, Eric had the genius idea of offering maple syrup in resealable, packable pouches for adventure races and endurance events. Suddenly having more bandwidth, the two set to work creating the product and building a brand around it: Embark Maple Energy. In doing so they created two separate-but-intertwined business models that are running as two separate entities: B&E Tress remains the farm name and all of their products, including their bourbon barrel-aged maple syrup, is branded as Embark. Business structure aside, the team is now focused on bringing the Embark brand, and its new adventure packs, to life. As such, Bree and Eric attended several races to hand out prototypes, network, and build brand awareness for Embark. Revenue from their Bourbon Barrel Aged Maple Syrup has carried the business through these hiccups during a pandemic launch period, underscoring the benefits of a diversified business model. As for funding, Bree and Eric had received a value-added producer grant (VAPG) to propel their brand-building efforts just before the pandemic hit. They had to pivot their spending of that money, which actually proved beneficial by helping them streamline their marketing and communications. Wrapping up, Bree and Eric discuss navigating their finances through a year where things didn't go as planned. They share a few lessons they've learned while scaling their business and offer advice for other farmers exploring adding value to their farm and launching consumer-facing brands.

    How Eco Practices Can Boost Farm Revenues

    Play Episode Listen Later Nov 11, 2021 67:15


    In Edible-Alpha® podcast #100, we bring back FFI founder Tera Johnson, who is now CEO of Iroquois Valley Farmland REIT, an organic farmland finance company. She was the featured presenter for our October 26 “Enhancing Farm Revenues with Conservation Practices & Ecosystem Services” webinar, which forms the basis of this podcast. Tera defines ecosystem services on-farm conservation practices and structural improvements that farmers can get at least partially reimbursed or credited for. Examples include converting cropland to CRP, planting riparian buffers to protect waterways, acquiring high tunnels for controlled growing, or leasing space for solar arrays. Farmers can sometimes stack these practices, purposing the same piece of land for multiple benefits and credits. The USDA's Natural Resources Conservation Service (NRCS) has a thick catalog of programs and initiatives for farmers, and the financial kickbacks can be significant. However, the options can be tricky to wade through and understand which would make sense on an individual farm. Some USDA offices provide excellent assistance, but this isn't always the case. Some conservation practices, such as nutrient mitigation, are gaining traction with other sectors as well. More county and municipal governments and sewage districts are incentivizing farmers to keep phosphorus and other nutrients on-farm and out of waterways. Farmer incentives for solar installation are gaining steam, too, especially in the expansive, sunny West. The financial benefits of these programs for farmers can be significant. However, the reimbursement process may be complex and drawn out. Sometimes farmers must foot the bill upfront, or their exact earnings may be outcome dependent, such as solar- or wind-power generation. Next, Tera and Andy discuss carbon sequestration, a key tenet of regenerative ag—and a hot topic lately, with more and more stakeholders incentivizing farmers to capture carbon in the soil. But, as Tera notes, we're in the Stone Age of this market, so it's kind of a Wild West, lacking universal measurement or impact standards. Many farmers are receiving offers from carbon credit buyers, but don't know who to trust. And whether organic and regenerative farmers who've been sequestering carbon for years are being justifiably recognized or compensated for their efforts is still murky. Tera says these kinks should all get ironed out eventually, as this is clearly the future of ag. Webinar participant Marie Raboin, who works in phosphorous crediting and adaptive management in Dane County, Wisconsin, while also running Brix Cider, adds important context to the discussion: Even though science shows many conservation practices work, farmers aren't always eager adopters. This requires them to think very differently about their farm, and they need to feel like they can trust the people and organizations propositioning them. Marie says farm businesses work very differently than most, and outside parties must respect their culture, language and way of doing things. Despite the complexities and yet-to-be-worked-out aspects of ecosystem services and conservation practices, both Tera and FFI strongly believe they are well worth farmers exploring for their many environmental and economic benefits.

    FACT Helps Farmers Raise Animals Humanely

    Play Episode Listen Later Oct 21, 2021 55:49


    In Edible-Alpha® podcast #99, FFI farm financial consultant Andy Larson interviews Larissa McKenna, humane farming program director of Food Animal Concerns Trust (FACT). Founded in 1982, this Chicago-based nonprofit holds the vision that all food-producing animals be raised in a healthy and humane manner and that everyone has access to safe and humanely produced food. FACT offers grants, scholarships, mentorship and webinars for farmers nationwide to give them the skills and resources to raise animals on well-managed pasture-based systems. Though not a certifying agency, FACT helps farmers take steps toward particular production principles. As Larissa explains, these include ensuring that animals, at minimum, get adequate space, access to the outdoors, clean water and air, the opportunity to express natural behaviors, and natural, healthful diets. Also, antibiotics should be used only when disease is present. As more consumers are learning about the variation in animal production methods, they are increasingly demanding humanely produced products. FACT helps educate shoppers about packaging labels and claims—which ones are meaningful, which are not—to guide their purchasing decisions. Larissa walks through some of the most reliable third-party certifications, such as Certified Animal Welfare Approved, Certified Humane and Animal Welfare Certified and the American Grassfed Association's standards. Such certifications can aid farmers' business by boosting brand awareness, opening grant opportunities and, of course, improving animal welfare. However, certification isn't always the goal of the farmers Larissa works with—and that's perfectly OK. FACT's mission is to help them improve their production methods, and different farmers have different starting points. For example, some are moving from conventional confinement systems while others come to FACT with some humane practices already in play. Regardless of specific circumstances, Larissa lauds the farmers' innovation, creativity and cost-efficiency in figuring out ways to improve their systems. There is often a strong economic case for making these changes to complement their multiple environmental and animal-welfare benefits. Lastly, Andy and Larissa discuss FACT's myriad offerings, including webinars and trainings covering topics such as grazing management and livestock protection, as well as grants for on-farm improvement projects and scholarships for outside education. And in response to farmer demand for more business- and finance-related assistance, FACT is now teaming up with FFI to offer free boot camps and webinars starting this fall. Our mutual goal in providing these valuable opportunities is to help livestock and poultry farmers' businesses thrive, so learn more and apply today!

    chicago animals raise helps farmers founded ffi humanely american grassfed association andy larson
    Tera Johnson Shares FFI's Impact and Opportunities

    Play Episode Listen Later Oct 7, 2021


    In Edible-Alpha® podcast #98, we flip the script, with Food Finance Institute interim director Sarah Larson interviewing FFI founder and outgoing director Tera Johnson. After building up FFI and the Edible-Alpha® brand over the last eight years, Tera is moving on to her next entrepreneurial venture as CEO of Iroquois Valley Farmland REIT. To start, Tera explains how she first identified the need for FFI and got it off the ground. Through building teraswhey from scratch and then selling the company, she'd acquired a unique knowledge base and skill set around financing food and agriculture enterprises—expertise that was badly needed. So, Tera pitched her idea to the University of Wisconsin System, the system agreed with the need, and FFI was launched within the Institute for Business and Entrepreneurship. At first, FFI was just Tera doing one-on-one consulting with clients. With way too much work for one person, she applied for and received a USDA Local Food Promotion Program grant to hire a program director. From there, they began developing curricula for boot camps and webinars, started training consultants nationally and launched the Edible-Alpha® podcast. Before long, FFI was working with food and farm enterprises across the U.S., and the podcast was carrying impact far and wide (46,000 downloads to date!). Tera intentionally combined the food and farm sectors into FFI's focus, knowing that many of the same tenets (such as money follows business model) and needs (such as understanding numbers before courting financing) apply to both. The COVID-19 pandemic has blurred the lines even further, with farms pivoting to direct-to-consumer, food hubs pivoting to hunger relief, food brands pivoting from retail distribution to e-commerce, etc. This has made FFI's financial education and technical assistance all the more pertinent. Next, Tera and Sarah talk through the biggest financing gaps today. Tera says most food brands need working capital, which remains the toughest to get. Many farms now need working capital too since they're selling direct-to-consumer, although, unlike brands, farms have access to value-added producer grants. Food hubs and other food system-related entities are finding more help from foundations, economic development funds and government grants. When asked how she has built both teraswhey and FFI to last, Tera says it's just like she tells businesses in boot camps: do something defensively unique that people actually want, develop a business model around it and figure out how to finance, staff and market it. Embedded in that is creating a culture and hiring an excellent team - FFI now is 5+ strong - that can carry out the work even without the founder. “What I love about the Edible-Alpha® learning platform, combined with the consultant network, is it doesn't need one person anymore,” Tera says. “It has grown way beyond me.” Although FFI is sad to see Tera go, she has left a sound business model behind and a strong staff of experts to carry the torch forward.  Though, as Tera says "she is on the same merryground just riding a different horse"- as the founder having presence on our FFI Vision Board and with so many intersections between Iroquois and FFI, she won't be far away.

    Dynamic Rhode Island Food Hub Connects Farmers and Eaters

    Play Episode Listen Later Sep 16, 2021


    In Edible-Alpha® podcast #97, Tera interviews Jesse Rye, co-executive director of Farm Fresh Rhode Island, a nationally acclaimed nonprofit food hub that connects local farmers and eaters and helps strengthen New England's food infrastructure. Launched as a Brown University student project in 2004, the organization has grown tremendously and recently built a 60,000-square-foot permanent home in Providence. With a $4.2 million annual budget, Farm Fresh Rhode Island runs several successful programs. There's Mobile Market, which aggregates and distributes food from over 115 local farmers and producers, and Harvest Kitchen, which produces value-added products from local produce while providing job training for at-risk youth. Farm Fresh also operates 10 farmers markets and provides the infrastructure for 25 more. Additionally, the organization has a farm-to-school and community education program, and it facilitates Bonus Bucks, a one-to-one match for people using SNAP. Of course, Farm Fresh Rhode Island didn't start out so ambitiously. It began by developing a food guide to link local farmers with locavore consumers and businesses. Then over time, Jesse says, “we've had strong organizational growth, driven through technological innovation, sound business and organizational practices, and an extremely dedicated staff and team of volunteers.” Jesse joined Farm Fresh as managing director in 2012, amidst a rapid growth phase. He found his niche implementing support structures around growth, including financial systems, collections management and human resources—"all the things a young food hub or organization needs to think about.” Around 2015, the organization, then renting office, market and warehouse space in Pawtucket, began discussing finding a forever home. Over the next few years, they refined their vision, pitched to potential funders and built momentum around the project. “We were out there selling people the idea of a hub where Farm Fresh could grow as an organization and keep doing our mission-driven work, but also as a place where density of other business focused on farming and food could come together,” Jesse says. “It's very much a cluster of economic activity that could bolster the regional food system but also have a really big impact on those businesses.” Ultimately, Farm Fresh secured government funding, plus significant philanthropic support—a mix that Jesse says has been crucial. In 2017, the group purchased a 3-acre property in Providence, began building an environmentally conscious, purpose-designed facility, and started courting other food and farm businesses to rent spaces. COVID-19 struck just as construction was complete—a lucky break because it let Farm Fresh move its summer farmers market inside. But with institutional customers dropping out rapidly, its other programs were impacted overnight. Within a week, Farm Fresh opened its wholesale ordering platform to home delivery. Orders jumped tenfold; one day they delivered $90,000 in food. The food hub also partook in the USDA Farmers to Families Food Box Program, which segued into hunger relief work that continues today. As the pandemic has settled down, Farm Fresh has been able to move some tenants into the building and push forward with many initiatives. We're excited to see how this dynamic organization continues to scale and evolve. This podcast is packed with inspiration, so definitely tune in!

    Oregon Coast Wasabi Grows a Niche Market

    Play Episode Listen Later Sep 2, 2021 61:51


    In Edible-Alpha® podcast #96, Tera welcomes Jennifer Bloeser, co-founder and CEO of Oregon Coast Wasabi, the largest wasabi farm in the U.S. Launched in 2010, the e-commerce company sells an array of fresh and shelf-stable wasabi products to restaurants, retailers, distributors and consumers, as well as plant starts to gardeners. First, Jennifer demystifies wasabi, a slow-growing perennial that most Americans only know as the spicy green paste served with sushi. Wasabi is brassica native to Japanese streambeds, so it prefers shade and cool temperatures, making the foggy, temperate Oregon shoreline near Tillamook the ideal place to grow it. That's precisely why Oregon Coast Wasabi set up shop there, cultivating plants in nine low-tech greenhouses. Next, Jennifer explains wasabi's growth cycle and details the flavor, heat factor and culinary potential of each plant part. The revered plant also has many traditional medicinal properties. She says that while growing wasabi at scale requires infrastructure, home gardeners can easily maintain a few plants in pots. Oregon Coast Wasabi is one of only three wasabi growers nationwide, and in the beginning, they sold only wholesale to food distributors. A few years in, they expanded into restaurants and retail and set up an e-commerce site for consumer sales. Though it took some time—and stress—to dial in shipping methods, Jennifer figured it out and the business grew steadily. She says the company has benefitted from consumers becoming more adventurous with food and more people discovering that the wasabi at sushi restaurants is usually fake. Early media coverage helped too. And with so little competition in this niche market, customers easily find Oregon Coast Wasabi, so they haven't needed to invest much in marketing—yet. Jennifer knows that with continued growth, that will change. Right now, the company is in the midst of expanding. They'd been pressing the limits of the current greenhouse space for a while, so Jennifer had been eying a land purchase. The uncertainties brought on by the COVID-19 pandemic made her hesitant, but after the company weathered last year just fine, she went for it, signing a sale agreement on a 4-acre property in May. The previous owner let her start building infrastructure and greenhouses right away, and she self-financed and did much of the construction herself. After closing on the property in August, a construction loan will kick in, allowing the company to pay down its bills. They've completed four 3,000-square-foot greenhouses so far, and the property can hold 12 to 14 more. Retaining the original greenhouses will keep sales coming in over the 12 to 18 months it will take for the new crops to mature.

    Cricket Farmer Highlights the Potential of Insect Ag

    Play Episode Listen Later Aug 19, 2021 52:01


    In Edible-Alpha® podcast #95, Tera sits down with Kevin Bachhuber, founder of Bachhuber Consulting and Madison Cricket Farm to learn about the emergent industry of insect agriculture and its potential for pet food, human food and so much more. Kevin, quite simply, is a cricket guy. Inspired by a 2013 United Nations report advising the world to eat more insects, he started Big Cricket Farms, the nation's first FDA-inspected human food–grade cricket-growing operation. With this pioneering venture, Kevin helped carve out the federal regulatory framework and built deep relationships with fellow insect farmers. He ran that business for two years, until unforeseen circumstances forced its shutdown. Then in 2016, Kevin launched Bachhuber Consulting, a niche agency dedicated to insect agriculture and related systems. Leveraging his first-hand expertise and industry relationships, he offers advice, technical assistance and training to insect growers nationwide. Recently, Kevin caught the farming bug again and, this past January, opened his own operation, which raises and sells bandit crickets into the live feed market, with a focus on pet store owners. Crickets have a super speedy lifecycle, so they multiply fast. This allowed Madison Cricket Farm to break even in less than two months and scale up very quickly, recently relocating from a 700-sqare-foot facility to a 3,000-square-foot home base. Still, the business has a long way to grow. Kevin says a mature cricket farm typically has 100,000 to 250,000 square feet of rearing space—the size of two city blocks! He's unsure whether he'll want to get that big, or maybe go bigger. Since there's a lot of unmet need in the Upper Midwest, he says the first step is sizing out that market. Next, Kevin and Tera discuss the human food market, which Madison Cricket Farm isn't ready to explore yet, partly due to its relatively small footprint. But also, the live feed industry yields higher margins and isn't easily disrupted by cheap cricket powders from overseas like the human food market is. Still, if and when Americans embrace eating protein-packed insects, likely for sustainability reasons, there will be ample opportunities for Kevin's company. He can see maybe collaborating on product development in the future, but he knows his expertise and passion lie in the production side. For now, he's most interested in growing his bug population, optimizing processes and exploring full-cycle agriculture, such as selling cricket poop to vegetable growers. Along with the endless possibilities with cricket farming, there continue to be challenges, namely finding suitable facilities and navigating the murky regulatory environment. But Kevin, with his unique knowledge and eagerness to learn, build and test out new things, is certainly set up to succeed.

    Barn2Door Makes Direct-Selling Seamless for Farmers

    Play Episode Listen Later Aug 5, 2021 53:15


    In Edible-Alpha® podcast #94, Tera chats with James Maiocco, chief operations officer at Barn2Door, a Seattle-based provider of software and services that help farmers grow and manage direct sales. The company was already growing fast before COVID-19. But now, with even more farmers looking to direct-market and more consumers embracing e-commerce and seeking out local products, Barn2Door's business is booming. Before founding the company six years ago, CEO Janelle Maiocco started an online marketplace to connect chefs and consumers with local farmers. But she soon realized the marketplace concept didn't fully meet farmers' needs or facilitate direct farmer-buyer relationships, so she scrapped that business and launched Barn2Door. With this innovative new model, farmers pay a software fee but keep 100% of their sales and totally own their relationships with customers. James says that nine out of 10 consumers want to buy local, but they just don't know how to discover farmers. That's why Barn2Door teaches farmers—many of whom are new to e-commerce and intimidated by everything it entails—how to be discovered, accessible, engaging and easy to purchase from so they can cultivate recurring sales and enduring one-on-one relationships with buyers. On the software side, Barn2Door's turnkey solutions help farmers manage their products, reach customers and conduct transactions through multiple channels and touchpoints. The most successful farmers, James says, do business on two to three channels, such as email, social media or Nextdoor. Barn2Door's close partnerships with Mailchimp, Square Space and other entities enable seamless integration among channels, ultimately saving farmers time, money and headaches. These partnerships also allow Barn2Door to capture a wealth of data, which it readily shares with farmers to help them make better-informed decisions on sales and marketing strategies. Whether it's which packaging sizes or product mixes sell best, how frequent blog posts should be, how many calls to action they need per webpage, or how much farmers can charge for delivery, data are available to guide them. But of course, Barn2Door's work entails a lot more than backend engineering and numbers. Knowing that every farmer's situation, priorities and goals are unique, the company assigns each an account manager who works closely with them to strategize the best tactics to implement for success. Barn2Door also offers virtual bootcamps and academies for further education and to foster farmers learning from one another. This is just a teaser of Tera and James's conversation! He shares a bunch of valuable insights throughout this podcast—and even a few data-supported marketing tips that can make a big difference in any farmer's business.

    From the Archives: Peter Robertson of RP's Pasta on Managing Growth And Changing With The Consumer

    Play Episode Listen Later Jul 22, 2021 67:34


    We revisit a podcast from our archives, episode #43 with Peter Robertson, founder of RP's Pasta and co-founder of Tribe 9 Foods. Peter touches on managing growth and changing with the consumer.

    The Good Acre Food Hub Pivots to Hunger Relief

    Play Episode Listen Later Jul 8, 2021 69:41


    The Good Acre's David Van Eeckhout talks with Tera about the Twin Cities food hub's evolving role in uplifting diverse farmers, supporting local food makers and increasing community access to high-quality local produce.

    The Good Acre Food Hub Pivots to Hunger Relief

    Play Episode Listen Later Jul 8, 2021 69:41


    The Good Acre's David Van Eeckhout talks with Tera about the Twin Cities food hub's evolving role in uplifting diverse farmers, supporting local food makers and increasing community access to high-quality local produce.

    Forage Kombucha Expands from Restaurant to Retail Brand

    Play Episode Listen Later Jun 24, 2021 60:50


    In Edible-Alpha® podcast #92, Tera chats with Henry Aschauer, co-founder of Forage Kombucha and Forage Kitchen in Madison, Wisconsin. What began as a single healthy fast-casual restaurant on State Street has expanded to include two more local eateries plus a budding beverage brand now sold in nearly 800 retail doors across 18 states. In launching Forage Kitchen in 2015, Henry and his partners hoped it would be the first of many locations. After some slight menu tweaking, the restaurant became a hit, attracting a broad clientele with its fresh-made salads and grain bowls—and proving that the concept worked. This paved the way to open a second outpost in March 2019 and a third in September 2019. Originally, Forage Kitchen crafted its own juices and lemonades but brought in kombucha from elsewhere. “Maybe being young and naïve, we began to tinker with the idea of making our own, not knowing full well what that entails,” Henry explains. Once his team developed a HACCP plan and got the proper regulatory clearance, they began brewing and bottling kombucha in the Forage Kitchen basement and selling it to customers in January 2017. Just like the restaurant, the fermented tea beverages were also a hit. Plus, producing and serving them onsite allowed them to trial different flavors in a real-life setting, giving them excellent feedback. They secured a distribution partner and established retail sales outside of Forage Kitchen. To build capacity and grow the brand, Henry and partners looked to move kombucha production into a dedicated facility. Additionally, intent on offering a convenient, approachable and affordable—yet still high-quality—kombucha, they switched from bottles to cans. They contemplated the co-packer route, which is notoriously difficult for small beverages brands, especially those involving fermentation, but no suitable partner emerged. Ultimately, they found production space locally and began self-manufacturing in October 2018. From there, Forage Kombucha grew tremendously, having expanded capacity and added a few more regional distributors to widen its territory beyond Wisconsin. After banner kombucha and restaurant sales in 2019, Henry expected sustained growth in 2020—but a certain virus had other plans. Though COVID-19 pandemic hit the restaurant industry hard and made it tough for beverage brands to land new retail accounts, both Forage Kitchen and Forage Kombucha managed to grow. Now that the pandemic is winding down, Henry says more doors are opening on the retail front. Currently, Forage Kombucha is in the process of gaining USDA Organic certification, which should broaden its appeal further. Henry and Tera talk about the valuable interplay between the restaurants and kombucha business, in terms of consumer recognition, brand proposition and cash flow management. He hopes the future includes an even broader reach, additional Forage Kitchen locations and more brand-aligned beverage launches.

    Forage Kombucha Expands from Restaurant to Retail Brand

    Play Episode Listen Later Jun 24, 2021 60:50


    In Edible-Alpha® podcast #92, Tera chats with Henry Aschauer, co-founder of Forage Kombucha and Forage Kitchen in Madison, Wisconsin. What began as a single healthy fast-casual restaurant on State Street has expanded to include two more local eateries plus a budding beverage brand now sold in nearly 800 retail doors across 18 states. In launching Forage Kitchen in 2015, Henry and his partners hoped it would be the first of many locations. After some slight menu tweaking, the restaurant became a hit, attracting a broad clientele with its fresh-made salads and grain bowls—and proving that the concept worked. This paved the way to open a second outpost in March 2019 and a third in September 2019. Originally, Forage Kitchen crafted its own juices and lemonades but brought in kombucha from elsewhere. “Maybe being young and naïve, we began to tinker with the idea of making our own, not knowing full well what that entails,” Henry explains. Once his team developed a HACCP plan and got the proper regulatory clearance, they began brewing and bottling kombucha in the Forage Kitchen basement and selling it to customers in January 2017. Just like the restaurant, the fermented tea beverages were also a hit. Plus, producing and serving them onsite allowed them to trial different flavors in a real-life setting, giving them excellent feedback. They secured a distribution partner and established retail sales outside of Forage Kitchen. To build capacity and grow the brand, Henry and partners looked to move kombucha production into a dedicated facility. Additionally, intent on offering a convenient, approachable and affordable—yet still high-quality—kombucha, they switched from bottles to cans. They contemplated the co-packer route, which is notoriously difficult for small beverages brands, especially those involving fermentation, but no suitable partner emerged. Ultimately, they found production space locally and began self-manufacturing in October 2018. From there, Forage Kombucha grew tremendously, having expanded capacity and added a few more regional distributors to widen its territory beyond Wisconsin. After banner kombucha and restaurant sales in 2019, Henry expected sustained growth in 2020—but a certain virus had other plans. Though COVID-19 pandemic hit the restaurant industry hard and made it tough for beverage brands to land new retail accounts, both Forage Kitchen and Forage Kombucha managed to grow. Now that the pandemic is winding down, Henry says more doors are opening on the retail front. Currently, Forage Kombucha is in the process of gaining USDA Organic certification, which should broaden its appeal further. Henry and Tera talk about the valuable interplay between the restaurants and kombucha business, in terms of consumer recognition, brand proposition and cash flow management. He hopes the future includes an even broader reach, additional Forage Kitchen locations and more brand-aligned beverage launches.

    Nordik Meats Opens Mid-Pandemic and Perseveres

    Play Episode Listen Later Jun 10, 2021 52:14


    In Edible-Alpha® podcast #91, Tera talks to Rod Ofte, a fourth-generation farmer and wearer of many hats, whose latest venture is a small USDA-inspected meat-processing plant outside Viroqua, Wisconsin. Nordik Meats opened last July, right in the thick of the COVID-19 pandemic. Rod and Tera discuss the business's wild first year plus the state of local meat processing nationwide. Like a lot of farm kids, Rod initially didn't want anything to do with agriculture. He went to West Point, worked for Mars in Germany for 14 years and traveled the world. But when it came time to start a family, he and his wife moved back to southwestern Wisconsin, bought a farm and began raising grass-fed beef. Next, Rod started a food and beverage consultancy and became general manager of the Wisconsin Grass-fed Beef Cooperative (WGBC), owner of the Wisconsin Meadows brand. Through these experiences, Rod grew frustrated by the dwindling availability of local meat processing for small producers and co-ops. He wanted to help reduce farmers' pain—and costs—by getting involved with processing in the Driftless Region of Wisconsin, but capital constraints held him back. Finally, in December 2019, Rod and a few other WGBC members and partners purchased the shuttered Driftless Meats plant. With a closing date set for April 1, 2020, the partners began due diligence. By March, COVID-19 was storming the nation, upending the food supply chain and exacerbating longstanding issues in the meat business. Suddenly, processors were in higher demand than ever. Nordik began booking appointments in advance, smartly requiring a reservation deposit, which provided capital for building up the facility, website and other infrastructure. Upon opening July 1, the plant was booked solid nine months out. Nordik Meats handles hogs, lamb, sheep, goats and some beef and offers slaughter, cutting and value-added production. Demand for appointments has since cooled, just as it has for most meat processors. But as Rod tells Tera, the pandemic-spawned demand had been overblown, primarily a product of ranchers overbooking slots for fear they wouldn't find processing when they needed it. Next, they discuss the seasonality of the business, which poses challenges—i.e., maintaining revenue, retaining skilled workers—for meat processors everywhere. Rod then gives his take on how the pandemic has impacted consumer behavior and buying patterns, such as more home-cooking, increased demand for local meat and greater acceptance of cuts once deemed less desirable, and whether these trends will last. Finally, Tera and Rod talk about the problems with meat processing, which largely stem from massive corporate consolidation and the many obstacles faced by small players and potential new entrants. Yet despite these challenges, Rod believes it's possible for small-scale meat processing to reemerge a la the current microbrewery renaissance. In closing, he offers sage advice for food and ag entrepreneurs looking to tackle this space.

    Nordik Meats Opens Mid-Pandemic and Perseveres

    Play Episode Listen Later Jun 10, 2021 52:14


    In Edible-Alpha® podcast #91, Tera talks to Rod Ofte, a fourth-generation farmer and wearer of many hats, whose latest venture is a small USDA-inspected meat-processing plant outside Viroqua, Wisconsin. Nordik Meats opened last July, right in the thick of the COVID-19 pandemic. Rod and Tera discuss the business's wild first year plus the state of local meat processing nationwide. Like a lot of farm kids, Rod initially didn't want anything to do with agriculture. He went to West Point, worked for Mars in Germany for 14 years and traveled the world. But when it came time to start a family, he and his wife moved back to southwestern Wisconsin, bought a farm and began raising grass-fed beef. Next, Rod started a food and beverage consultancy and became general manager of the Wisconsin Grass-fed Beef Cooperative (WGBC), owner of the Wisconsin Meadows brand. Through these experiences, Rod grew frustrated by the dwindling availability of local meat processing for small producers and co-ops. He wanted to help reduce farmers' pain—and costs—by getting involved with processing in the Driftless Region of Wisconsin, but capital constraints held him back. Finally, in December 2019, Rod and a few other WGBC members and partners purchased the shuttered Driftless Meats plant. With a closing date set for April 1, 2020, the partners began due diligence. By March, COVID-19 was storming the nation, upending the food supply chain and exacerbating longstanding issues in the meat business. Suddenly, processors were in higher demand than ever. Nordik began booking appointments in advance, smartly requiring a reservation deposit, which provided capital for building up the facility, website and other infrastructure. Upon opening July 1, the plant was booked solid nine months out. Nordik Meats handles hogs, lamb, sheep, goats and some beef and offers slaughter, cutting and value-added production. Demand for appointments has since cooled, just as it has for most meat processors. But as Rod tells Tera, the pandemic-spawned demand had been overblown, primarily a product of ranchers overbooking slots for fear they wouldn't find processing when they needed it. Next, they discuss the seasonality of the business, which poses challenges—i.e., maintaining revenue, retaining skilled workers—for meat processors everywhere. Rod then gives his take on how the pandemic has impacted consumer behavior and buying patterns, such as more home-cooking, increased demand for local meat and greater acceptance of cuts once deemed less desirable, and whether these trends will last. Finally, Tera and Rod talk about the problems with meat processing, which largely stem from massive corporate consolidation and the many obstacles faced by small players and potential new entrants. Yet despite these challenges, Rod believes it's possible for small-scale meat processing to reemerge a la the current microbrewery renaissance. In closing, he offers sage advice for food and ag entrepreneurs looking to tackle this space.

    How This Old Farm Built a Successful Meat Processing Business

    Play Episode Listen Later May 27, 2021 65:34


    In Edible-Alpha® podcast #90, Tera interviews This Old Farm founder Jessica Roosa, who has spent the last 11 years scaling a small USDA-inspected meat processing facility and local food hub in Colfax, Indiana. They discuss the complexities, costs and rewards of entering this business, offering important insights for food and ag entrepreneurs eying the in-demand meat processing space. Jessica started organic farming some 20 years ago, committed to raising sheep and poultry responsibly. Frustrated with the meat processing options available, she decided to start her own processing business, one that would ensure full traceability to enable product-label claims such as grass-fed and USDA Organic. Funded by a value-added producer grant, Jessica conducted a feasibility study to determine whether to build new onsite or purchase an existing facility nearby. The latter option proved much more economical, and soon she acquired an old custom-exempt facility for $150,000, investing another $100,000 to get it up and running. Then in December 2010, with her new business barely off the ground, the facility burned down. Devastated but undeterred, Jessica built a better facility in its place, one she could take under USDA inspection to allow This Old Farm to ship across state lines. Although she’d loved to have erected a bigger building to expand capacity, she stuck close to the original facility’s footprint in order to be operational by that July when the processing business ramps up. This Old Farm would need to capture this revenue in 2011, to ensure her young venture would not go kaput. After recounting the business’s beginnings, Jessica and Tera discussed the current state of meat processing in the U.S. There are major gaps in availability and efficiency, with farmers driving an average of 400 miles to access processing. There are niche processors and big industrial processors, but not much in the middle. The business’s seasonality adds complexities too, as does the dearth of skilled labor. This Old Farm employs about 40 people, most of them full-time, for the slaughter, processing and value-added sides of the business. Guaranteeing 100% traceability requires a lot of effort and decreases efficiency, which is why most processors don’t do it. But this service assures farmers that the products they’re getting back, whether steaks, hamburger or sausage, come from their animals—a big marketing advantage. Currently, This Old Farm is expanding capacity, with three different buildouts in the works. Jessica is holding off on one of those projects until she can be certain she’ll have the customer base to support it. The company is also opening an urban butcher shop in West Lafayette this summer. Finally, Tera and Jessica talk financing. Meat processing is costly to break into, especially for newcomers who don’t have generational assets. Back when Jessica started, it would’ve cost her $1 million or more to build a facility on-farm—and that was without beef processing—which is why she bought the old facility. Along with her VAPG, she received funding from a small business innovation and research grant, a local food promotion program and a $300,000 bank loan. Now she’s weighing what types of investment vehicles to pursue for future scaling.

    How This Old Farm Built a Successful Meat Processing Business

    Play Episode Listen Later May 27, 2021 65:34


    Jessica Roosa of This Old Farm shares her journey from organic farming to starting and scaling a 100% traceable meat processing business.

    Driftless Provisions Slices into the Charcuterie Business

    Play Episode Listen Later May 6, 2021 62:38


    In Edible-Alpha® podcast #89, Tera is joined by Ryan Wagner, Justin VerMeer and Spencer Schaller, the trio behind Driftless Provisions, an artisanal salami company based in Viroqua, Wisconsin. Since launching in 2017, the guys have grown the business steadily and smartly, recently taking production in-house. Ryan got the idea for a premium salami company several years ago, having realized the charcuterie market in Wisconsin was wide open. After business school, he moved to the Driftless Area, a hilly region in the state’s southwest corner that’s dotted with small, sustainable farms, and invited his pal Justin to join him. While working as the business manager at the acclaimed Driftless Café, Ryan met Spencer, the sous chef, who had started an in-house butchery there. Together, they developed a charcuterie program at the café, giving Ryan his salami-making start. Because fermenting and dry-curing salami is a complex and precise multiweek process, it took some time and tweaking to develop a product for market. Meanwhile, Ryan and Justin raised money via Kickstarter and learned what launching a charcuterie company—a high-barrier-of-entry business—would entail (Spencer didn’t join the company officially until 2021). They also dialed in their brand proposition to convey the Driftless Area’s ethos of respect for the land. This influenced many decisions, including basing the company in Viroqua, a town of about 4,400 surrounded by family farms, and sourcing only humanely raised pork. To cure and dry the salami, Ryan and Justin would need a USDA-certified meat processing facility with multiple climate-controlled environments—an astronomical cost. Given the working-capital constraints, they felt it would be smarter to start with a co-packer, a decision that influenced the smaller gauge size of their salami. Working with co-packers on a highly nuanced product is never easy, and Driftless Provisions cycled through a few in the first few years. However, contracting out manufacturing allowed them to get their products out there, first at farmers markets and then at retail. This, in turn, helped them build up their direct-to-consumer e-commerce business, which proved fortuitous once COVID-19 hit. It also let them prove their concept to future investors. After switching co-packers mid-pandemic, Driftless Provisions caught a break. A space once occupied by a cheese manufacturer opened up at the Food Enterprise Center of Viroqua, a 100,000-square-foot multi-tenet facility. Since it was climate-controlled already, the company didn’t have to spend a ton of money to retrofit the space. After raising about $230,000, they brought in equipment from Italy to set themselves up for long-term success. They expect they can reach up to $600,000 in sales before needing to upgrade the space. Now, with the pandemic winding down, business is ramping up, especially on the retail side. Ryan, Justin and Spencer look forward to being able to demo and sample again, as charcuterie requires consumer education. They are also experimenting with other meats besides pork and exploring complementary revenue streams. We see many great things ahead for this company!

    Driftless Provisions Slices into the Charcuterie Business

    Play Episode Listen Later May 6, 2021 62:38


    In Edible-Alpha® podcast #89, Tera is joined by Ryan Wagner, Justin VerMeer and Spencer Schaller, the trio behind Driftless Provisions, an artisanal salami company based in Viroqua, Wisconsin. Since launching in 2017, the guys have grown the business steadily and smartly, recently taking production in-house. Ryan got the idea for a premium salami company several years ago, having realized the charcuterie market in Wisconsin was wide open. After business school, he moved to the Driftless Area, a hilly region in the state's southwest corner that's dotted with small, sustainable farms, and invited his pal Justin to join him. While working as the business manager at the acclaimed Driftless Café, Ryan met Spencer, the sous chef, who had started an in-house butchery there. Together, they developed a charcuterie program at the café, giving Ryan his salami-making start. Because fermenting and dry-curing salami is a complex and precise multiweek process, it took some time and tweaking to develop a product for market. Meanwhile, Ryan and Justin raised money via Kickstarter and learned what launching a charcuterie company—a high-barrier-of-entry business—would entail (Spencer didn't join the company officially until 2021). They also dialed in their brand proposition to convey the Driftless Area's ethos of respect for the land. This influenced many decisions, including basing the company in Viroqua, a town of about 4,400 surrounded by family farms, and sourcing only humanely raised pork. To cure and dry the salami, Ryan and Justin would need a USDA-certified meat processing facility with multiple climate-controlled environments—an astronomical cost. Given the working-capital constraints, they felt it would be smarter to start with a co-packer, a decision that influenced the smaller gauge size of their salami. Working with co-packers on a highly nuanced product is never easy, and Driftless Provisions cycled through a few in the first few years. However, contracting out manufacturing allowed them to get their products out there, first at farmers markets and then at retail. This, in turn, helped them build up their direct-to-consumer e-commerce business, which proved fortuitous once COVID-19 hit. It also let them prove their concept to future investors. After switching co-packers mid-pandemic, Driftless Provisions caught a break. A space once occupied by a cheese manufacturer opened up at the Food Enterprise Center of Viroqua, a 100,000-square-foot multi-tenet facility. Since it was climate-controlled already, the company didn't have to spend a ton of money to retrofit the space. After raising about $230,000, they brought in equipment from Italy to set themselves up for long-term success. They expect they can reach up to $600,000 in sales before needing to upgrade the space. Now, with the pandemic winding down, business is ramping up, especially on the retail side. Ryan, Justin and Spencer look forward to being able to demo and sample again, as charcuterie requires consumer education. They are also experimenting with other meats besides pork and exploring complementary revenue streams. We see many great things ahead for this company!

    Katie Mleziva Gets Real About Brand Strategy

    Play Episode Listen Later Apr 22, 2021 64:38


    In Edible-Alpha® podcast #88, Tera talks with Katie Mleziva, founder of Real Food Brands, host of the Real Food Brands Marketing Podcast and instructor for our upcoming Building a Brand That Stands Out training course. FFI is a strong advocate for locking down your brand strategy early on so it can be systematically and intentionally engrained in all areas of your business. As a brand strategist, Katie helps natural food and beverage companies do this through defining, aligning and activating clear, consistent brand strategies that resonate with consumers. Before striking out on her own, Katie worked in brand management and marketing for Kraft and other Fortune 500 companies, which informed the concepts she teaches now: “I took those big-business ideals, streamlined them down and resized them for small entrepreneurial startups and emerging brands looking to scale up.” Next, she and Tera discussed the importance of branding for food companies. Basically, unless a brand establishes an emotional connection with consumers and why it's special, shoppers may see it as just another brand of cheese, cookies, kombucha, [insert any product here]. Katie said entrepreneurs are often so engrossed in their products and business operations that they don't truly think through how their brand benefits consumers—or know how to convey that benefit through branding. She helps them to think externally so they can transition from just having great products to owning a strong brand. As FFI Founder Tera Johnson often highlights in our Boot Camp your business is more than your products! But to do that, food, farm, and beverage entrepreneurs must first lock down their values and vision—know who they are as a brand before attempting to sell it to others. Then, Katie stresses the three C's: consumers, competition and company. Brands should identify their target consumers based on demographics and psychographics and determine how exactly the brand benefits them. Next, they should look at what their competitors are doing and saying to ensure their brand offers a suite of attributes that truly stands out from the competition. Based on consumer needs and the competitive landscape, companies can establish a few main brand pillars, qualities such as sustainability or locally sourced ingredients. Katie explained the importance of aligning brand strategy around those pillars: “If your whole brand strategy is the north star, this is the light that shines on the path to say we're on right path. If we're building everything around these pillars, we know we're sticking to what we said we wanted to do in terms of overall vision.” Another important element is brand voice, which should be consistent throughout marketing, messaging, packaging, and internal and external communications. Cohesive voice gets the team on the same page and lets consumers know what to expect. After defining (or refining) and aligning the brand strategy comes activation—how the company executes based on its business goals. This involves everything from posting on Instagram to creating an advertisement. This work can be challenging for entrepreneurs, yet it is definitely worth tackling. That's why Katie is so passionate about coaching brands through the process. We look forward to working with her on our three-day Building a Brand That Stands Out workshop May 19 to 21. Hope you can join us too!

    Katie Mleziva Gets Real About Brand Strategy

    Play Episode Listen Later Apr 22, 2021 64:38


    In Edible-Alpha® podcast #88, Tera talks with Katie Mleziva, founder of Real Food Brands, host of the Real Food Brands Marketing Podcast and instructor for our upcoming Building a Brand That Stands Out training course. FFI is a strong advocate for locking down your brand strategy early on so it can be systematically and intentionally engrained in all areas of your business. As a brand strategist, Katie helps natural food and beverage companies do this through defining, aligning and activating clear, consistent brand strategies that resonate with consumers. Before striking out on her own, Katie worked in brand management and marketing for Kraft and other Fortune 500 companies, which informed the concepts she teaches now: “I took those big-business ideals, streamlined them down and resized them for small entrepreneurial startups and emerging brands looking to scale up.” Next, she and Tera discussed the importance of branding for food companies. Basically, unless a brand establishes an emotional connection with consumers and why it’s special, shoppers may see it as just another brand of cheese, cookies, kombucha, [insert any product here]. Katie said entrepreneurs are often so engrossed in their products and business operations that they don’t truly think through how their brand benefits consumers—or know how to convey that benefit through branding. She helps them to think externally so they can transition from just having great products to owning a strong brand. As FFI Founder Tera Johnson often highlights in our Boot Camp your business is more than your products! But to do that, food, farm, and beverage entrepreneurs must first lock down their values and vision—know who they are as a brand before attempting to sell it to others. Then, Katie stresses the three C’s: consumers, competition and company. Brands should identify their target consumers based on demographics and psychographics and determine how exactly the brand benefits them. Next, they should look at what their competitors are doing and saying to ensure their brand offers a suite of attributes that truly stands out from the competition. Based on consumer needs and the competitive landscape, companies can establish a few main brand pillars, qualities such as sustainability or locally sourced ingredients. Katie explained the importance of aligning brand strategy around those pillars: “If your whole brand strategy is the north star, this is the light that shines on the path to say we’re on right path. If we’re building everything around these pillars, we know we’re sticking to what we said we wanted to do in terms of overall vision.” Another important element is brand voice, which should be consistent throughout marketing, messaging, packaging, and internal and external communications. Cohesive voice gets the team on the same page and lets consumers know what to expect. After defining (or refining) and aligning the brand strategy comes activation—how the company executes based on its business goals. This involves everything from posting on Instagram to creating an advertisement. This work can be challenging for entrepreneurs, yet it is definitely worth tackling. That’s why Katie is so passionate about coaching brands through the process. We look forward to working with her on our three-day Building a Brand That Stands Out workshop May 19 to 21. Hope you can join us too!

    Connoils Scales from One-Woman Op to One-Stop Shop

    Play Episode Listen Later Apr 8, 2021 41:17


    In Edible-Alpha® podcast #87, Tera is joined by Stacy Peterson, founder and CEO of Connoils, a manufacturer, distributor and wholesale supplier of oil and oil powder ingredients for food and beverages, dietary supplements, personal care and pet food. As a seasoned entrepreneur—and one who works on the ingredients side of food—she provides valuable insights for listeners. Kicking off the conversation, Stacy shared the history of the company she launched in 2007. It all started when her then-employer, Cargill, decided to discontinue its line of nutritional oils, eliminating her job along with it. Seeing an opportunity to keep serving those customers while ensuring her own employment, Stacy proposed forming an independent company to acquire the product line. Cargill agreed and sold her its remaining inventory at a discount. So, with an established product line and customer base, Stacy began her entrepreneurial journey. At first, she was a one-woman show. She worked out of her home, stored inventory at the food-grade storage facility where her husband worked and relied on contract manufacturers for oil encapsulation. As the business grew, Stacy began hiring help, and after a few years, moved the company to a 7,500-square-foot facility to bring more of the work in-house. Connoils eventually outgrew that space too, building a brand-new 25,000-square-foot facility in Big Bend, Wisconsin, last year, complete with solar panels on the roof. The new space better allows Connoils to be a one-stop shop for its customers, offering manufacturing, spray-drying, encapsulation, bottling, private-labeling, white-labeling, R&D consultation and shipping. The company's portfolio now includes about 200 types of oils in multiple formats, including canola, avocado, sesame seed, evening primrose, CBD, medium-chain triglycerides (MCTs) and fish oils, sourced primarily from the U.S. and Mexico. Like all businesses in the food space, the COVID-19 pandemic impacted Connoils early on, with some customers delaying product launches and orders ramping up for ingredients used in sanitation products. Domestic sourcing has proved fortuitous, given the ongoing logistical problems with international supply chains. Looking forward, Stacy sees more growth ahead for Connoils, especially in MCTs, CBD, immune health products and pet nutrition. She is currently mapping out strategies to boost efficiencies and continue scaling smartly. To wrap up the interview, Stacy offered her best advice for food entrepreneurs just starting out, including the importance of mentorship, collaboration and joining business groups such as Vistage. Tune into the full podcast!

    Connoils Scales from One-Woman Op to One-Stop Shop

    Play Episode Listen Later Apr 8, 2021 41:17


    In Edible-Alpha® podcast #87, Tera is joined by Stacy Peterson, founder and CEO of Connoils, a manufacturer, distributor and wholesale supplier of oil and oil powder ingredients for food and beverages, dietary supplements, personal care and pet food. As a seasoned entrepreneur—and one who works on the ingredients side of food—she provides valuable insights for listeners. Kicking off the conversation, Stacy shared the history of the company she launched in 2007. It all started when her then-employer, Cargill, decided to discontinue its line of nutritional oils, eliminating her job along with it. Seeing an opportunity to keep serving those customers while ensuring her own employment, Stacy proposed forming an independent company to acquire the product line. Cargill agreed and sold her its remaining inventory at a discount. So, with an established product line and customer base, Stacy began her entrepreneurial journey. At first, she was a one-woman show. She worked out of her home, stored inventory at the food-grade storage facility where her husband worked and relied on contract manufacturers for oil encapsulation. As the business grew, Stacy began hiring help, and after a few years, moved the company to a 7,500-square-foot facility to bring more of the work in-house. Connoils eventually outgrew that space too, building a brand-new 25,000-square-foot facility in Big Bend, Wisconsin, last year, complete with solar panels on the roof. The new space better allows Connoils to be a one-stop shop for its customers, offering manufacturing, spray-drying, encapsulation, bottling, private-labeling, white-labeling, R&D consultation and shipping. The company’s portfolio now includes about 200 types of oils in multiple formats, including canola, avocado, sesame seed, evening primrose, CBD, medium-chain triglycerides (MCTs) and fish oils, sourced primarily from the U.S. and Mexico. Like all businesses in the food space, the COVID-19 pandemic impacted Connoils early on, with some customers delaying product launches and orders ramping up for ingredients used in sanitation products. Domestic sourcing has proved fortuitous, given the ongoing logistical problems with international supply chains. Looking forward, Stacy sees more growth ahead for Connoils, especially in MCTs, CBD, immune health products and pet nutrition. She is currently mapping out strategies to boost efficiencies and continue scaling smartly. To wrap up the interview, Stacy offered her best advice for food entrepreneurs just starting out, including the importance of mentorship, collaboration and joining business groups such as Vistage. Tune into the full podcast!

    The Nuts and Bolts (and Benefits) of Scenario Planning

    Play Episode Listen Later Mar 25, 2021 53:07


    In Edible-Alpha® podcast #86, Tera sits down with Eric DeLuca, founder of Leverage Point Consulting, a market development firm focused on land-based, sustainable and socially responsible enterprises. Eric also serves as one of the Food Finance Institute's Food Systems Expert-in-Residence, instructing the Scenario Planning immersion training. With vast experience in organizational and food-systems development, strategy and finance, he helps food and farm businesses strategize and secure funding to scale. One of Eric's areas of expertise is scenario planning, a proven method by which companies map out multiple potential futures and craft action plans for each. The idea is that by considering and strategizing around various outcomes, businesses will be better prepared to navigate “unforeseen” events, such as a drastic decline in market demand, a devastating drought, a significant capital loss or a global pandemic. After sharing the fascinating history of scenario planning, Eric delved deeper into what it is, first by saying what it is not: a crystal ball. Rather than predicting the future, it involves examining all plausible futures with a pragmatic, unbiased eye and then telling a story around them. While it's tempting to focus on scenarios a company wants to happen, it's critical to consider all scenarios that could happen. This involves ditching the rose-colored glasses, testing long-held assumptions and viewpoints, and really thinking through outcomes both positive and negative. Scenario planning would behoove most any business at any time, but the COVID-19 crisis has made it especially crucial. Eric and Tera met in 2018, when he completed FFI's Value-added Food & Farm Business Consultant Certification Training. They further reconnected through the Edible-Alpha® Consultant Huddles last year, which led them to team up to develop a Scenario Planning training program to help scaling food and farm businesses in this time of crazy uncertainty. In discussing the pilot cohort they led, they remarked how beneficial it was for the participants to step away from their day-to-day to strategize in this way. Entrepreneurs spend so much time working in their business—especially these days, with the pandemic still throwing wrenches—that they struggle to find time to work on their business. But in the boot camp environment, each participant was able to move from the tactical thinking they use to run their companies and put out fires every day to thinking more strategically. This shift then greatly impacted how they described their business models and brands. Next, Eric shared his recent experiences working with advisory boards and funds and how their priorities have shifted in response to the pandemic, recent social justice reckoning and intensifying threats of climate change. He said there is now more emphasis on diversity, inclusion and ensuring that funding and business assistance opportunities feel accessible to all and truly match the needs of potential recipients. Listen to the podcast to hear the full discussion on scenario planning. For more info on FFI's Scenario Planning program and to be considered for an upcoming cohort, click here.

    The Nuts and Bolts (and Benefits) of Scenario Planning

    Play Episode Listen Later Mar 25, 2021 53:39


    In Edible-Alpha® podcast #86, Tera sits down with Eric DeLuca, founder of Leverage Point Consulting, a market development firm focused on land-based, sustainable and socially responsible enterprises. With vast experience in organizational and food-systems development, strategy and finance, he helps food and farm businesses strategize and secure funding to scale. One of Eric’s areas of expertise is scenario planning, a proven method by which companies map out multiple potential futures and craft action plans for each. The idea is that by considering and strategizing around various outcomes, businesses will be better prepared to navigate “unforeseen” events, such as a drastic decline in market demand, a devastating drought, a significant capital loss or a global pandemic. After sharing the fascinating history of scenario planning, Eric delved deeper into what it is, first by saying what it is not: a crystal ball. Rather than predicting the future, it involves examining all plausible futures with a pragmatic, unbiased eye and then telling a story around them. While it’s tempting to focus on scenarios a company wants to happen, it’s critical to consider all scenarios that could happen. This involves ditching the rose-colored glasses, testing long-held assumptions and viewpoints, and really thinking through outcomes both positive and negative. Scenario planning would behoove most any business at any time, but the COVID-19 crisis has made it especially crucial. Eric and Tera met in 2018, when he completed FFI’s Value-added Food & Farm Business Consultant Certification Training. They further reconnected through the Edible-Alpha® Consultant Huddles last year, which led them to team up to develop a Scenario Planning training program to help scaling food and farm businesses in this time of crazy uncertainty. In discussing the pilot cohort they led, they remarked how beneficial it was for the participants to step away from their day-to-day to strategize in this way. Entrepreneurs spend so much time working in their business—especially these days, with the pandemic still throwing wrenches—that they struggle to find time to work on their business. But in the boot camp environment, each participant was able to move from the tactical thinking they use to run their companies and put out fires every day to thinking more strategically. This shift then greatly impacted how they described their business models and brands. Next, Eric shared his recent experiences working with advisory boards and funds and how their priorities have shifted in response to the pandemic, recent social justice reckoning and intensifying threats of climate change. He said there is now more emphasis on diversity, inclusion and ensuring that funding and business-assistance opportunities feel accessible to all and truly match the needs of potential recipients. Listen to the podcast to hear the full discussion on scenario planning. For more info on FFI’s Scenario Planning program and to be considered for an upcoming cohort, click here.

    Mentorship and Sweat Equity Build Meadowlark Organics Value-Added Small Grain Farm Business

    Play Episode Listen Later Mar 11, 2021 62:17


    In Edible-Alpha® podcast #85, Tera talks with John Wepking about building Meadowlark Organics, a diversified small-grain farm enterprise on 800-plus acres in the Driftless Area of southwestern Wisconsin. Their conversation shows how mentorship and sweat equity can lead to a successful farm transition. John met his future wife and business partner Halee while working in restaurants and bakeries in New York City. Both ready for a change, they moved to John's home state of Wisconsin and attempted to revitalize his family's farm. After toiling away but seeing no clear road to sole ownership, they answered a Craigslist ad from an organic corn and soy farmer in the Driftless Area who wanted to pass on his knowledge and eventually his land. Paul Bickford had envisioned a young farmer or couple with a bit of equity, which John and Halee didn't have, but he hired them anyway for their passion, work ethic and eagerness to learn. Thrust into the mix immediately, the couple learned a lot from Paul in short order. Meanwhile, they secured an FSA microloan for beginning farmers and purchased 22 breeding heifers and a yearling bull. With a 5-45-50 loan, they bought 80 acres of hilly grazing pastures, flatter spaces to grow annual crops and a homestead. To generate income while their cattle matured and they could grow their herd, John convinced Paul to plant 40 acres of hard red winter wheat to be milled at Lonesome Stone Milling 20 miles away. Paul had never grown grains before, but John knew from his bakery and restaurant experience that he could build a market for organic small-grain flours. The plan worked, so they expanded their grain crops and on-site processing capabilities, with working capital provided by a value-added producer grant. Paul's long track record, credit worthiness and experience helped them secure debt financing along the way. Not long into their partnership, John, Halee and Paul began discussing farm transition. While Paul could always just sell off his land and equipment upon retirement, he feels it's more important to shepherd the next generation of farmers—just like his father did for him—and ensure continuity on the farm. According to their transition plan, the couple is purchasing the first half of the farm on a 20-year note and will eventually secure the second half. A similar thing happened with Lonesome Stone Milling. After toll milling for Meadowlark Organics for several years, owner Gilbert Williams wanted to transition his business, so he sold John and Halee his mill. They are now moving it onto their farm, along with a few other mills for different grains. They aim to continue scaling up their flour operation, sourcing a variety of small grains from other local organic farmers, thereby uplifting the community around them. Check out the podcast to hear Meadowlark Organics' full story, including more details about their financing, diversified income stream and path to farm ownership.

    Mentorship and Sweat Equity Build Meadowlark Organics Value-Added Small Grain Farm Business

    Play Episode Listen Later Mar 11, 2021 62:17


    In Edible-Alpha® podcast #85, Tera talks with John Wepking about building Meadowlark Organics, a diversified small-grain farm enterprise on 800-plus acres in the Driftless Area of southwestern Wisconsin. Their conversation shows how mentorship and sweat equity can lead to a successful farm transition. John met his future wife and business partner Halee while working in restaurants and bakeries in New York City. Both ready for a change, they moved to John’s home state of Wisconsin and attempted to revitalize his family’s farm. After toiling away but seeing no clear road to sole ownership, they answered a Craigslist ad from an organic corn and soy farmer in the Driftless Area who wanted to pass on his knowledge and eventually his land. Paul Bickford had envisioned a young farmer or couple with a bit of equity, which John and Halee didn’t have, but he hired them anyway for their passion, work ethic and eagerness to learn. Thrust into the mix immediately, the couple learned a lot from Paul in short order. Meanwhile, they secured an FSA microloan for beginning farmers and purchased 22 breeding heifers and a yearling bull. With a 5-45-50 loan, they bought 80 acres of hilly grazing pastures, flatter spaces to grow annual crops and a homestead. To generate income while their cattle matured and they could grow their herd, John convinced Paul to plant 40 acres of hard red winter wheat to be milled at Lonesome Stone Milling 20 miles away. Paul had never grown grains before, but John knew from his bakery and restaurant experience that he could build a market for organic small-grain flours. The plan worked, so they expanded their grain crops and on-site processing capabilities, with working capital provided by a value-added producer grant. Paul’s long track record, credit worthiness and experience helped them secure debt financing along the way. Not long into their partnership, John, Halee and Paul began discussing farm transition. While Paul could always just sell off his land and equipment upon retirement, he feels it’s more important to shepherd the next generation of farmers—just like his father did for him—and ensure continuity on the farm. According to their transition plan, the couple is purchasing the first half of the farm on a 20-year note and will eventually secure the second half. A similar thing happened with Lonesome Stone Milling. After toll milling for Meadowlark Organics for several years, owner Gilbert Williams wanted to transition his business, so he sold John and Halee his mill. They are now moving it onto their farm, along with a few other mills for different grains. They aim to continue scaling up their flour operation, sourcing a variety of small grains from other local organic farmers, thereby uplifting the community around them. Check out the podcast to hear Meadowlark Organics’ full story, including more details about their financing, diversified income stream and path to farm ownership.

    Expert Insights into Selling Successfully on Amazon

    Play Episode Listen Later Feb 25, 2021 79:45


    In podcast #84, Tera talks to Amazon expert Michael Zhang, CEO and founder of Fenrici Brands. The lifestyle company, started in 2018, sells over 50 items exclusively on Amazon generating over $4 million in sales.  Combining that success with his previous experience as VP of Ecommerce and Innovation at Lands' End, Michael has added Amazon coaching and consulting to his business portfolio. In this episode, he and Tera discuss what it takes to sell well on Amazon. Often, smaller companies are intimidated by Amazon, but Michael reassures what will set you up for success is no different than what you are used to in retail or other sales channels. Three key things he calls out: You need to be committed to selling on Amazon, which includes investing in advertising and promotion and spending regular time managing your account.You need to have confidence in your products, should know the unique problems your products solve and have clear messaging around your unique differentiator.You need to be prepared to manage your inventory and to have the cash flow to support stocking Amazon distribution centers with your products. Once you make the commitment to sell on Amazon, it is important you set yourself up for the best launch possible. When it comes to fulfillment, Michael recommends setting your business up as FBA – Fulfilled by Amazon, which ensures you get the “Prime” badge. When it comes to positioning, a tip is to look at similar competitors and their product listings. By reading the 5-star reviews, you can see what customers like about those products and borrow words they are using to describe their experience to improve your listing. Similarly, by reading 1-star reviews, you can glean insights about what customers are missing in those competitor products and speak to those features or aspects of the experience within your listing. Once you have launched on Amazon, it is important to drive traffic to your listing through advertising and promotion. Don't be afraid to spend time experimenting with Amazon advertising. It is important to have a paid program, but you can start out small, as low as $5/day, and grow your spend. One paid option is Cost Per Click Ads. These ads help your products get placed at the top of search results. In addition, you can set up coupons, a special store for your product, lightning deals and more to increase traffic to your listings. There are also many free ways to create a narrative around your brand, including writing posts and adding to the live stream on Amazon.com. As you build your Amazon business, don't lose sight of the importance of building out your social media promotions and digital advertising to further your channel growth. Amazon notices when you drive traffic, and it is important to fully activate this channel once you've committed to it. Ratings are an important contributor to your success on Amazon. Michael recommends new-to-Amazon businesses take advantage of the Early Reviewer program and encourages you to check the Amazon Vine program as well. In their first month on Amazon, Michael's company sold $100,000 in products. At the end of their first year, they reached $1 million in sales, and after three years in business, they surpassed $4 million. This illustrates that a committed and savvy entrepreneur who had the time and resources can certainly build their business on Amazon solo. But often food entrepreneurs are busy making their products and wearing many other hats to keep their business afloat. If that is the case, finding a third-party Amazon expert is a solid strategy. Michael says the best thing to look for in a partner is results: What can they do for you in 3 to 6 months? For more insights into selling online check our our free course here!

    Expert Insights into Selling Successfully on Amazon

    Play Episode Listen Later Feb 25, 2021 79:45


    In podcast #84, Tera talks to Amazon expert Michael Zhang, CEO and founder of Fenrici Brands. The lifestyle company, started in 2018, sells over 50 items exclusively on Amazon generating over $4 million in sales.  Combining that success with his previous experience as VP of Ecommerce and Innovation at Lands’ End, Michael has added Amazon coaching and consulting to his business portfolio. In this episode, he and Tera discuss what it takes to sell well on Amazon. Often, smaller companies are intimidated by Amazon, but Michael reassures what will set you up for success is no different than what you are used to in retail or other sales channels. Three key things he calls out: You need to be committed to selling on Amazon, which includes investing in advertising and promotion and spending regular time managing your account. You need to have confidence in your products, should know the unique problems your products solve and have clear messaging around your unique differentiator. You need to be prepared to manage your inventory and to have the cash flow to support stocking Amazon distribution centers with your products. Once you make the commitment to sell on Amazon, it is important you set yourself up for the best launch possible. When it comes to fulfillment, Michael recommends setting your business up as FBA – Fulfilled by Amazon, which ensures you get the “Prime” badge. When it comes to positioning, a tip is to look at similar competitors and their product listings. By reading the 5-star reviews, you can see what customers like about those products and borrow words they are using to describe their experience to improve your listing. Similarly, by reading 1-star reviews, you can glean insights about what customers are missing in those competitor products and speak to those features or aspects of the experience within your listing. Once you have launched on Amazon, it is important to drive traffic to your listing through advertising and promotion. Don’t be afraid to spend time experimenting with Amazon advertising. It is important to have a paid program, but you can start out small, as low as $5/day, and grow your spend. One paid option is Cost Per Click Ads. These ads help your products get placed at the top of search results. In addition, you can set up coupons, a special store for your product, lightning deals and more to increase traffic to your listings. There are also many free ways to create a narrative around your brand, including writing posts and adding to the live stream on Amazon.com. As you build your Amazon business, don’t lose sight of the importance of building out your social media promotions and digital advertising to further your channel growth. Amazon notices when you drive traffic, and it is important to fully activate this channel once you’ve committed to it. Ratings are an important contributor to your success on Amazon. Michael recommends new-to-Amazon businesses take advantage of the Early Reviewer program and encourages you to check the Amazon Vine program as well. In their first month on Amazon, Michael’s company sold $100,000 in products. At the end of their first year, they reached $1 million in sales, and after three years in business, they surpassed $4 million. This illustrates that a committed and savvy entrepreneur who had the time and resources can certainly build their business on Amazon solo. But often food entrepreneurs are busy making their products and wearing many other hats to keep their business afloat. If that is the case, finding a third-party Amazon expert is a solid strategy. Michael says the best thing to look for in a partner is results: What can they do for you in 3 to 6 months? For more insights into selling online check our our free course here!

    Breadtopia Builds off Pandemic Business Boom

    Play Episode Listen Later Feb 11, 2021 85:13


    In podcast #83, recorded at Edible-Alpha® Live!, Tera interviews Galen Saturley of Breadtopia, a virtual baking-education hub and seller of grains, flours and baking equipment based in Fairfield, Iowa. What started as a passion project for Galen's mom and stepdad in 2006 is now a booming e-commerce business with an engaged national community, which have only grown stronger through the COVID-19 pandemic. From the start, Breadtopia's main mission has been to ensure that “baking perfect bread at home is available to everyone.” Founders Eric and Denyce created a content-driven website, featuring recipes, how-to videos and interviews, and funded it through sales of baking equipment, sourdough starters and organic wheat and rye flours. This was back in e-commerce's infancy, so they learned as they went while milling grains to order and packaging products in their garage. As interest in Breadtopia mounted and sales grew, the mom-and-pop operation had to scale. They rented a bigger workspace space in Fairfield, brought on a few employees and expanded into ancient grains and other flour types. Before long, they needed even more space. Once Galen joined the business in 2012, he helped upgrade the milling operation and streamline inventory, and the company settled into 15% to 30% year-on-year growth When Galen first met Tera in 2018, he shared their designs for a new 8,000-square-foot facility. Tera suggested they go even bigger, which proved sage advice. When a 40,000-square-foot space downtown became available last October, Breadtopia found its new home. Amidst its busiest season ever, the team moved everything over, figured out operations and got ready for a stellar 2020. Little did they know, COVID-19 was right around the corner. In early March, as the nation locked down and everyone started baking bread, average daily orders surged from 125 to 600, sending the team scrambling. To continue meeting loyal customers' expectations while also serving the influx of new ones, the company went from eight employees to 30. As grains and flours became nearly impossible to find at grocery stores, Breadtopia's sales kept climbing. The company's close relationships with small farmers and plentiful backstock allowed it to come through when few other retailers could. Galen said the team didn't relax until June, when orders leveled off. Thanks to the heady sales of last spring, they began transforming HQ into a literal breadtopia—complete with a bakery, education center, retail shop and commercial kitchens—a few years ahead of schedule. Tera and Galen also talked about online sales strategies, including Breadtopia's experiences with Amazon, and the company's next project: working with farmers and grain organization to build a sustainable local food system. Be sure to catch this podcast for the whole Breadtopia story and e-commerce lessons for food and farm businesses of all sizes!

    Breadtopia Builds off Pandemic Business Boom

    Play Episode Listen Later Feb 11, 2021 85:13


    In podcast #83, recorded at Edible-Alpha® Live!, Tera interviews Galen Saturley of Breadtopia, a virtual baking-education hub and seller of grains, flours and baking equipment based in Fairfield, Iowa. What started as a passion project for Galen’s mom and stepdad in 2006 is now a booming e-commerce business with an engaged national community, which have only grown stronger through the COVID-19 pandemic. From the start, Breadtopia’s main mission has been to ensure that “baking perfect bread at home is available to everyone.” Founders Eric and Denyce created a content-driven website, featuring recipes, how-to videos and interviews, and funded it through sales of baking equipment, sourdough starters and organic wheat and rye flours. This was back in e-commerce’s infancy, so they learned as they went while milling grains to order and packaging products in their garage. As interest in Breadtopia mounted and sales grew, the mom-and-pop operation had to scale. They rented a bigger workspace space in Fairfield, brought on a few employees and expanded into ancient grains and other flour types. Before long, they needed even more space. Once Galen joined the business in 2012, he helped upgrade the milling operation and streamline inventory, and the company settled into 15% to 30% year-on-year growth When Galen first met Tera in 2018, he shared their designs for a new 8,000-square-foot facility. Tera suggested they go even bigger, which proved sage advice. When a 40,000-square-foot space downtown became available last October, Breadtopia found its new home. Amidst its busiest season ever, the team moved everything over, figured out operations and got ready for a stellar 2020. Little did they know, COVID-19 was right around the corner. In early March, as the nation locked down and everyone started baking bread, average daily orders surged from 125 to 600, sending the team scrambling. To continue meeting loyal customers’ expectations while also serving the influx of new ones, the company went from eight employees to 30. As grains and flours became nearly impossible to find at grocery stores, Breadtopia’s sales kept climbing. The company’s close relationships with small farmers and plentiful backstock allowed it to come through when few other retailers could. Galen said the team didn’t relax until June, when orders leveled off. Thanks to the heady sales of last spring, they began transforming HQ into a literal breadtopia—complete with a bakery, education center, retail shop and commercial kitchens—a few years ahead of schedule. Tera and Galen also talked about online sales strategies, including Breadtopia’s experiences with Amazon, and the company’s next project: working with farmers and grain organization to build a sustainable local food system. Be sure to catch this podcast for the whole Breadtopia story and e-commerce lessons for food and farm businesses of all sizes!

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