Food Brands Paying It Forward

On the whole capitalism and business in general get a bad press. It’s viewed by many as a ruthless, Machiavellian world where it’s dog eat dog and I’ll eat your dog! Now, please don’t be alarmed, I’m not about to stand on my soap box but I do want to shine a light on some of the positivity that emanates from the Food and Drink industry and how some of the preconceived ideas are misconceptions

Firstly, let’s be frank: people are in business to make money. Unless it’s a not-for-profit organisation you need to accept that it will never be completely altruistic. However that doesn’t mean that it’s every man for himself; in fact, with the new wave of foodpreneurs, it’s far from it. Many successful new businesses will attribute some of their fortunes to the advice of other business leaders or a well-placed mentor. In my experience of the world of foodpreneurs I have been surprised at how open people are to share contacts, ideas and resources in a symbiotic bid for success. If you ever peek behind the curtain of foodpreneurship you’ll find an amicable, humble and transparent bunch willing to help, listen and advise. Some people call it karma, some people sat it’s ‘paying it forward’ whatever the term used it can be a great help.

There are thousands of examples out there but let me share one example of this positive light that I came across recently…

This example involves two businesses not selling in the same category, not geographically close and not even at the same stage of business development however they do share a passion: producing great food with a brand that people can get fanatical about.

FunkyNut5

Funky Nut Company was founded in 2014 on The Wirral by Julian Campbell and Vigor Foods in 2017 by Paul Rampal in Broxbourne. Julian is currently into his 4th year building distribution and sales of his nut butter brand empire and business is booming with plans to expand production facilities in early 2018. Paul is just beginning his journey with a range of cold-pressed protein balls that he plans to sell to gyms, coffee shops, cafes, farm shops, fine food outlets and direct to his adoring fans.

So, on the surface, two exciting young brands operating independently of each other with their own designs on being the next big disruptor in the market place right? Well, not quite; allow me to explain why…

So you know the fisherman analogy? Give a man a fish and he’ll feed his family for a day, teach a man to fish and he’ll feed them for a lifetime – that one? Well this brand of foodpreneurs takes that one step further because this man will not just feed his family, but he’ll teach you how to feed yours. Then he’ll let you borrow his rod and net. Then he’ll tell you where the best places to fish are and when he’s done all that he’ll fry up one of the fish he caught and invite you and your family round to feast. It’s kind of beautiful isn’t it?

So, with that extrapolated analogy in mind, look out for the symbiotic relationship25008907_154533361836501_4181817344659554304_n between Funky Nut Company and Vigor Foods blossoming in 2018. Now it’s only a simple step but it’s a brilliant gesture because this year will see collaboration between the two brands with a mass sampling campaign of Vigor’s cold-pressed protein balls with orders placed of Funky Nut’s nut butters. The beauty of this is that more people get to try Paul’s beautiful balls and get a cheeky reward just for being fans of Julian’s phenomenal nuts. It’s almost poetic isn’t it? The team at funky nut have done the same in 2016 with the Magnificent Marshmallow Company and the customer feedback to the unexpected squishy treat was great.

There may be some naysayers out there questioning motive but this is how the foodpreneur world works. You start out in business and at some stage you’ll be blown away by the kindness of an apparent stranger. It’ll be someone you admire, someone that’s been there and done that. However that stranger will have had their own apparent stranger just a short while ago, when they were in your position. Fast forward a short while into the future and you find yourself in a position to be a kind apparent stranger and thus the cycle perpetuates. It’s kind of nice that.

So here’s my plea…if you’re a new business: don’t be afraid to talk to your peers, promise they’ll surprise you; and if you’re forming your opinions of corporate fat cats in the Food and Drink industry: please challenge them; there are some awesome brands and people doing some amazing things. Oh, and of course, make sure you check out the collaboration between Funky Nut Company and Vigor Foods…who doesn’t love a freebie and new food forage?

Northern Munkee.

Do you have any great examples of the food industry working together? Why not give a cheeky comment below because if this has taught us nothing more…sharing is caring!

 

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Big Ideas for Small Businesses

So the first thing I need to do here is come clean because I am a massive nerd. I love a good business book and I’ve read a good few. My book shelves are littered with frogs to eat, purple cows and moving cheese and my Audible account looks like an MBA lecturer’s wet dream. I have amassed a multitude of other regurgitateable business speak; but I don’t care. I am fully aware of the stigma that some of these texts carry and they are the root cause of cringeworthy conversations in board rooms across the world as big wigs play buzz word tennis as they seek to understand.

If you’re already in business you’ll know that everyone has an opinion. Everyone will believe they’ve got that silver bullet that you’ve missed in your business. Everyone will have something to say. So you need to be really cautious about who’s counsel you take and a lot of very successful business people will tell you that collecting advice is a road to indecision which can be true. However, I believe that knowledge is power and it’s that pursuit that keeps our ideas fresh and relevant. So, with that pursuit in mind, here’s my review of John Lamerton’s Big Ideas for Small Businesses.

northernmunkeebites.bigideasforsmallbusinessesBig Ideas for Small Businesses: John Lamerton

Rating: 9/10

Key Themes:

  • Ambitious Lifestyle Business
  • F*ck Fear
  • HIIT

Synopsis:

This isn’t about stealing John’s thunder…because you should just get the book…but let me give you my humble opinion on why you should get the book.

Can I be honest? I was sceptical. I’ve read my fair share of books claiming to herald ‘advice’ for small businesses and, more often than not, they fall well short of the mark. However this book really delivered. It is full of simple, succinct and actionable advice and it’s not told from a pedestal. John Lamerton’s book combines a biographical narrative with sufficient breathing room for business advice relayed in a no nonsense fashion. This approach forges a bond between mentor and mentee that creates a sense of togetherness which is not apparent in other business literature I’ve read.

I chose to read the book as a linear narrative (starting at page 1 and working through to 236) however it’s structured in a fashion that allows the reader to dip in and out as appropriate. This book represents the opportunity to do the smart thing and learn from someone else’s mistakes and reap the benefits of insight from someone who has been there, done that and probably made profit from selling the t-shirts.

Verdict: in a word – inspiring! I read this book in one evening. I genuinely couldn’t put down. Now I’m not going to say this book will definitely revolutionise the way you conduct your business but what it will do is provide a tried and tested framework that you can implement today.

Northern Munkee.

 

Foodies in The Den (15:8)

I love Dragons’ Den. There, I said it. I know some business folk are a dismissive of the show because it can glamourise the investment process and potentially mislead around the rigor involved in securing funding – but I just love it! You can also accuse the show of sensationalising some of the issues which could literally make or break a young business but we’re all adults here so surely we know what we’re letting ourselves in for?

There are many reasons to love The Den and if it is used correctly it can be the perfect platform to propel a small business to the next level which is a fantastic gift to the small business world. However, I love it for one reason: the business lessons. It’s a marvellous microcosm for the business world and emphasises some of the amazing abilities and frustrating failings of the entrepreneurial world.

I have watched the show all the way through but this series I decided not to be a passive observer and get stuck in to offer my thoughts on any foodie that makes their way passed Evan’s lair in the basement and through those ominous sliding elevator doors. So this series I’m going to pull out some of the business lessons gleaned from any brave foodie to enter The Den. I’d also like to point out that what follows is not a criticism but a critique; even if it goes badly wrong, anyone that demonstrates the stones to go on TV to bare all has my respect!

northernmunkeebites.dragonsdenbtemptedSeason 15: episode 8

Entrepreneur(s): Sarah Hilleary

Company: B-Tempted

Elevator Pitch: great tasting gluten free cakes with 9 flavours in a range of formats

Asking For: £75k in exchange for 5% equity

What Went Well?

The Product: it’s on trend. The feedback from all the Dragons on taste was very complimentary, which is clearly a must. It’s well packaged and well thought out in terms of market positioning and pricing (which is usually out of kilter with reality on ‘artisan’ foods).

The Plan: the foodpreneur was very clear with her reason for entering The Den: the opportunity to launch in Tesco Express. Not only is it a great selling point but it shows very clear direction which is quite often lacking from pitches.

The Brand: I can’t say it loudly enough: YOU LIVE AND DIE BY YOUR BRAND. This brand was very well joined up; even down to the Temptation Officer living and breathing the brand assets with a cheeky wink every now and again.

What Could Have Gone Better?

The Numbers: Tuker said, ‘rule number 1 in The Den: you’ve got to get your figures right’. Well unfortunately she didn’t. However, Tuker did launch a bit of a financial assault on the foodie. You could argue it was a bit unfair and most people would crumble under that kind of pressure.

Business Valuation: now this is always a contentious issue – it’s the battle ground in an investor/entrepreneur relationship. For me the ball was dropped when the foodpreneur admitted that the valuation was delivered by a third party. Terminal Value calculated on hugely successful (and ultimately very different) business models was a faux pas.

‘Artisan’: I’m sorry but this is a bugbear of mine. The ‘artisan’ label has become far too manufactured and I fear it’s designed to hoodwink shoppers. If this business has designs on expansion that label cannot carry through.

What Other Lessons Can We Learn?

The Power is in the Plan: I truly believe that this pitch was saved because of the strength and clarity of the entrepreneur’s plan. For an investor it’s absolutely paramount that they understand where their money is going and how the entrepreneur is going to deliver the (usually) ambitious numbers. These elements were evident today!

Outcome: Success! 30% given to the new Dragon Tej Lalvani with a buy back option.

Would Munkee invest? Can I sit on the fence? The business proposition and branding are fantastic. However my nervousness is in the product category. It’s a crowded market and scalability isn’t easy without lowering quality or principles. However, if this is possible then B-Tempted might be onto a winner. So would I take a punt? Yeh go on!

Northern Munkee.

 

When Brands Re-Brand!

Who remembers when Opal Fruits crossed the picket line and became Starburst? When Marathon Bars left the track and became Snickers? Or when Oil of Ulay shocked us all by becoming Olay? Brands rebrand all the time. Sometimes it’s a simple refresh to remain relevant or signal a slight change in direction and sometimes it’s a complete departure from the name and the established brand. I’m sure that none of these decisions were made lightly and I’m sure every concept and subtle nuance were focus-grouped to within an inch of their life – it’s a big deal right. Businesses can spend vast sums of money building brand assets and equity so it’s not an easy decision to go back to the drawing board; however sometimes it may be absolutely necessary.

This post takes me back to the theme of brand building for food businesses. I’m not going to talk about the food itself (although it is awesome) because I’ve written a number of posts in the past about my love of jerky and biltong; instead this post is going critique the decisions on rebranding that Meat Snacks Group recently implement across their range…enjoy!

Wild West Jerky & Cruga Biltong

northernmunkeebites.wildwestjerkyoldWhat was wrong with the old branding?

Well, nothing really. It has good shelf impact. It’s simple. It has traditional and trusted cues that are relevant to the food. It has a window to allow the shopper to see the food. The brand has been careful to call out important nutritional information: protein and no nasties. So, what’s the big deal? My criticism of this platform is that it’s a bit brash, bold and dated. Although it does a lot of good things a brand needs to remain relevant to its audience and if there’s a shift in who that is then the brand needs to address that.

Was there a need to rebrand?

Yes. The meat snacking market in the UK has moved on significantly in the last three years and the target audience has shifted. When I was still active and playing sport I was the typical jerky and biltong consumer: a gym junky with a need for a high protein (yet tasty) snack. Although this consumer still exists there is a swell of early-adopting foodies that are coming to the table. So if the paradigm has moved brands need to move too.

What’s so good about the new branding?

Well, firstly it’s being considerate of the new paradigm with dialled down but still northernmunkeebites.jerkyrebrandappropriate imagery and colour palette. Big tick. Secondly, it’s kept all the good parts of the old branding and it’s managed to maintain a sufficient number of the old brand assets that it won’t completely alienate the brand’s existing fan base. Finally, the branding has morphed subtly into being more appropriate; what was ‘solid strips of marinated smoked beef’ has become ‘beef silverside marinated, smoked and cooked’. Lovely stuff!

Could they have done anything differently?

No, I don’t think they could. If the aim was to develop a brand that didn’t completely alienate existing users but would excite and intrigue new users then: job done!

Verdict – in a word, boom! If you’re Meat Snacks Group you’ve got to be really chuffed with this. It’s been a bit under the radar (much like the new imagery) but it has reacted to competition in the marketplace and stolen a march at the front again. Well played!

Northern Munkee.

Foodies in The Den (15:5)

I love Dragons’ Den. There, I said it. I know some business folk are a dismissive of the show because it can glamourise the investment process and potentially mislead around the rigor involved in securing funding – but I just love it! You can also accuse the show of sensationalising some of the issues which could literally make or break a young business but we’re all adults here so surely we know what we’re letting ourselves in for?

There are many reasons to love The Den and if it is used correctly it can be the perfect platform to propel a small business to the next level which is a fantastic gift to the small business world. However, I love it for one reason: the business lessons. It’s a marvellous microcosm for the business world and emphasises some of the amazing abilities and frustrating failings of the entrepreneurial world.

I have watched the show all the way through but this series I decided not to be a passive observer and get stuck in to offer my thoughts on any foodie that makes their way passed Evan’s lair in the basement and through those ominous sliding elevator doors. So this series I’m going to pull out some of the business lessons gleaned from any brave foodie to enter The Den. I’d also like to point out that what follows is not a criticism but a critique; even if it goes badly wrong, anyone that demonstrates the stones to go on TV to bare all has my respect!

northernmunkeebites.dragonsdenbkdSeason 15: episode 5

Entrepreneur(s): Adelle Smith

Company: BKD

Elevator Pitch: children’s baking brand with an ethos of fuelling children’s imagination

Asking For: £80k in exchange for 20% equity

What Went Well?

The Product: it’s on trend. Baking and crafting has grown exponentially over the last few years and any activity that brings the family together is bound to resonate with a large audience.

Branding: the products all look fantastic, polished and very clean. It’s easy to see how the range would stand it out in major retailers. It looks premium and fits the premium price point and will certainly offer a point of disruption on shelf versus the beige competition currently on offer in supermarkets.

What Could Have Gone Better?

Subscription Sales: subscription offerings are another rapidly expanding market and brands like Graze have demonstrated that it’s a fantastically effective way to build a brand. However, this entrepreneur failed to capitalise on a potential USP that could support the brand in commanding a premium price point.

‘Strong’ Interest: unfortunately this is a trap that a lot of entrants to The Den fall into. Entrepreneurs are very keen to tell the Dragons which retailers have shown some interest in placing orders; but this isn’t something you can put in the bank. It’s a great encouragement but it’s worthless until the invoice is paid.

What Other Lessons Can We Learn?

Negotiation is a Game: I appreciate that emotions must run high in The Den but Adele’s poker face slipped when Peter Jones made his offer and weakened her negotiation position with both Dragons. I admit that I’d probably get a bit giddy and it must be really difficult not to react on the spot but it’s not a strong stance unless it’s a professional flinch!

Outcome: Success! 35% given to the serial foodie backer Peter Jones!

Would Munkee invest? I wouldn’t usually want to disagree with Peter Jones but did I mention I’m risk averse? The market for baking kits is evolving with the continued success of GBBO but I’m not convinced that the high volume retailers would back a premium offering in a big way. I’m sure this brand will have a lot of success in premium outlets but I’m not sure we’re going to be overcome by a sea of black and white, so I’m out – however I’d love to be wrong!

Northern Munkee.

 

 

Foodies in The Den (15:3)

I love Dragons’ Den. There, I said it. I know some business folk are a dismissive of the show because it can glamourise the investment process and potentially mislead around the rigor involved in securing funding – but I just love it! You can also accuse the show of sensationalising some of the issues which could literally make or break a young business but we’re all adults here so surely we know what we’re letting ourselves in for?

There are many reasons to love The Den and if it is used correctly it can be the perfect platform to propel a small business to the next level which is a fantastic gift to the small business world. However, I love it for one reason: the business lessons. It’s a marvellous microcosm for the business world and emphasises some of the amazing abilities and frustrating failings of the entrepreneurial world.

I have watched the show all the way through but this series I decided not to be a passive observer and get stuck in to offer my thoughts on any foodie that makes their way passed Evan’s lair in the basement and through those ominous sliding elevator doors. So this series I’m going to pull out some of the business lessons gleaned from any brave foodie to enter The Den. I’d also like to point out that what follows is not a criticism but a critique; even if it goes badly wrong, anyone that demonstrates the stones to go on TV to bare all has my respect!

northernmunkeebites.dragonsdenspicedbyrayeesaSeason 15: episode 3

Entrepreneur(s): Rayeesa Ashgar-Sandy

Company: Spiced by Rayeesa

Elevator Pitch: fresh-frozen curry sauce with low calorie and gluten free curry bases.

Asking For: £75k in exchange for 12% equity

What Went Well?

Family Business: the positive noise in this pitch was down to the individual who came across very well and the family element of the business added a great slice of personality. Passion, persistence and drive are fundamental to demonstrating entrepreneurial spirit.

Health: this is a fundamental trend in this product area and this focus will drive growth. Assuming the product tastes as good as Deborah Meaden asserted then this USP will help to differentiate the product against some of the more established brands in the category.

What Could Have Gone Better?

The Approach: it may sound impressive and it’s something you should be proud of but being approached by Sainsbury’s and Ocado is not something you can bank. I do appreciate that it will give some confidence but I’m afraid it’s just literature.

Lack of Market Understanding: ‘we don’t have competition’ is a terrible thing to say in the food industry and very unlikely to be true. There are very few brands and products that are inexchangeable. Most products bought are bought in favour of something else because the shopper doesn’t have an endless pit of money. In this example the competition is vast and Rayeesa’s product is easily substitutable for an ambient or chilled option.

Retailer Challenge: for me this single point killed the pitch. If retailers don’t get it, it will never sell. They’re absolutely right in that most shoppers in the frozen aisle are not looking to cook, they’re looking for a convenient, full solution which is why there are so few ingredients in freezers. Unfortunately Rayeesa’s vision that retailers would be willing to put a freezer in the ambient fixture is so far detached from reality. This type of initiative would not be completely impossible to secure but I would wager that it would warrant funding into the £millions plus the cost of hardware. Even in what Jenny coined ‘second tier retailers’ I can’t see it becoming a reality and, although COOK have made some headway, it’s a pipe dream.

What Other Lessons Can We Learn?

Know Your Strengths: for me this pitch is a great example of an entrepreneur that has the right behaviours and drivers to be successful. However, it also highlights Rayeesa’s need to seek market specific support and gain experience and insight externally. This is not a criticism. A lot of entrepreneurs become successful because they surround themselves by the right people.

Outcome: No investment today.

Would Munkee invest? No, I’m afraid I’m too risk averse for this one. The market is challenging and I don’t think the product offering is right. However there are a lot of positive aspects of this pitch so with a few tweaks I’m sure they’ll find success.

Northern Munkee.

 

Foodies in The Den (15:1)

I love Dragons’ Den. There, I said it. I know some business folk are a dismissive of the show because it can glamourise the investment process and potentially mislead around the rigor involved in securing funding – but I just love it! You can also accuse the show of sensationalising some of the issues which could literally make or break a young business but we’re all adults here so surely we know what we’re letting ourselves in for?

There are many reasons to love The Den and if it is used correctly it can be the perfect platform to propel a small business to the next level which is a fantastic gift to the small business world. However, I love it for one reason: the business lessons. It’s a marvellous microcosm for the business world and emphasises some of the amazing abilities and frustrating failings of the entrepreneurial world.

I have watched the show all the way through but this series I decided not to be a passive observer and get stuck in to offer my thoughts on any foodie that makes their way passed Evan’s lair in the basement and through those ominous sliding elevator doors. So this series I’m going to pull out some of the business lessons gleaned from any brave foodie to enter The Den. I’d also like to point out that what follows is not a criticism but a critique; even if it goes badly wrong, anyone that demonstrates the stones to go on TV to bare all has my respect!

northernmunkeebites.dragonsdencreativenatureSeason 15: episode 1

Entrepreneur(s): Julianne Ponan and Matthew Ford

Company: Creative Nature Superfoods

Elevator Pitch: ranges of free-from snack bars, innovative baking mixes and creative superfoods designed to cater for top 14 allergies

Asking For: £75k in exchange for 5% equity

What Went Well?

Preparation: fail to prepare and all that is key for any business pitch but it is absolutely fundamental when you’re asking someone to believe in you and to part with their money. The entrepreneurs demonstrated a strong knowledge of their own business and also the marketplace which might sound like a basic requirement but is often found wanting.

The business idea: the product ranges couldn’t be more on trend; it’s on-the-go, it’s home baking and it’s superfoods. Winning. Deborah Meaden identified that the freefrom shopper has developed into a shopper that no longer surfs packaging but wants product confidence and assurance and these guys have got it.

Distribution: there’s nothing better for a potential investor to hear than people are already buying your products and there are lots of retailers supporting it. Creative Nature was able to successfully demonstrate that its turnover is generated from a wide range of distribution with some very credible retailers. Although I’m not too sure how Christine Tacon would feel about the confession that the distribution was bought through ‘listing fees’; nevertheless from the entrepreneurs’ point of view this is a very savvy use of seed money.

What Could Have Gone Better?

Owner’s Relationship: the fact that Matthew holds no shares in the business may have come across as a bit of a tongue-in-cheek comment from Peter Jones but the reality is this information did cast a shadow of doubt in The Den. Family businesses are fantastic and there’s nothing more heart-warming than seeing a family business succeed however it does raise some questions from a business perspective. Who really owns the business? Who really runs the business? How integral is Matthew? What happens if he leaves and what’s his incentive to stay? These queries were well handled but these issues will ultimately need clearing up.

Rose-Tinted Forecasting: the ‘£1M contract’ in Co-Op was a bit of a faux pas that the Dragons were bound to pick apart. I completely understand where the numbers have come from, it’s simple science. However, we’re dealing with an art form and forecasting is not that simple. Assuming that a Co-Op store will achieve the same rate of sale as an ASDA is a little naïve; in some product categories ASDA will dwarf Co-Op and vice-versa in others. I do sympathise but a big bold headline like this will get scrutinised and criticised by any savvy investor.

What Other Lessons Can We Learn?

Profit is KING: there’s a cliché in business that sales in vanity and profit is sanity and everyone in the room recognised that Creative Nature’s margins were too tight for comfort. Every business needs to account for scalability and assume some benefits as you scale up however if margins are tight at the early stage of a business that’s a real concern. It’s not unfixable but if you can’t sustain profitability you’re in for a rough ride!

Outcome: Success! 25% equity given to Deborah Meaden with a 5% optional buy back if the business hits 2018 targets.

Would Munkee invest? Yes! Who am I to argue with the Meaden?! Creative Nature has the makings of a great brand and business. It appears like a sound investment and I’m sure there’ll be more than just Co-Op placing new orders.

Northern Munkee.