With consumers doing more online shopping than ever before, brands need to make sure that their e-commerce and direct to consumer (DTC) strategies are built for success.

Whether you are launching a new product through e-commerce/DTC or shifting focus from existing brick and motor sales channels – here are some tips on making sure you are on the right track to building a successful e-commerce business.

Online Sales Channels

When it comes to selling products online there are many different sales channels available. The best approach is testing out several to see which works best for your business. 

Make sure you have established a presence in each of these sales channels to be able to capture the largest % of your target audience.

Selling through Amazon 

Amazon is the GIANT of online retailers and now with their ownership of Whole Foods, they have established themself as a major player in Food and Beverage CPG. Amazon has a few different options available to brands interested in selling on their platform:

Fulfilled by Amazon (FBA): This is a great way to get started. With FBA, you’ll setup your own Amazon seller account but let Amazon handle your fulfillment. This means you send your product to one of their fulfillment warehouses and they handle all the logistics but you still keep control of your brand, marketing and pricing. There are some limitations around shelf life (minimum 90 days) and temperature – so be sure to check out their meltable policy! 

Fulfilled by Merchant (FBM) The other option is setting up a merchant account and handling fulfillment yourself. This is the cheapest option, but not always the best. Having to handle shipping, customer service, and returns can be a daunting task when you are trying to focus on multiple areas of your business. If you’ve decided to go this route, look at partnering with a third party fulfillment provider. More on that below!

Other E-Tailers

With the major brick and mortar retailers having to shift their strategies, many are developing pretty robust e-commerce offerings.  

However getting into the large retailers even if just to sell online, can still be tough. There are lots of smaller more targeted platforms that can be a great way to get your products in front of your target customer. 

Subscription based models like Thrive Market or health focused e-tailers like Bubble Goods are great alternatives to the traditional big retailers.

StartupCPG launched a great resource of other e-tailers that could be good options for brands looking to get their products listed. Check it out here! 

In-house DTC (Selling from your website!) 

Selling product directly form your brand’s website is also a great option and owning the entire customer experience can definitely have its advantages. It can save on any costs associated with selling through a third party, whether in margin or added fees. It also gives brands direct access to consumer insights through analyzing customers activity on the site, and can be a great platform to test new products & educate consumers.

When selling directly through your own website you’ll want to make sure that you have the right technology platforms setup to make sure the process is seamless for both the customer and for you when managing the business. 

There are a lot of great platform to help manage your e-commerce business. Look through all the options out there, a few examples are Shopify and Bigcommerce. They can make it a lot easier to build a great storefront on your website and manage the transaction in an easy and efficient way. 

Fulfillment & Distribution

No matter which online channel you are selling through you will need to figure out your warehousing, fulfillment and distribution strategy.

What happens to your finished product after it’s made? Does your co-packer store it for you? Maybe in the past, you have had your distributor pick up finished product from your co-packer to be delivered to the various retailers where your product is sold. 

Well now that you’re building an e-commerce business it’s not always that easy. For the channels where you are in-charge of fulfillment, you’ll need to find a way to store that inventory and fill orders as they come in from your various online storefronts.

Working with a good fulfillment provider that can handle all of that for you is a great solution. Ideally your fulfillment center will be able to:

1. Store your product until an order comes in
2. Pick and package that order based on your specifications
3. Then have the product shipped out to your customer.

Sometimes, your co-packer offers these services, or has great partners that do, so definitely discuss your needs with them.

Often you can find a fulfillment provider that will be able to integrate directly with your store front technology so that whenever an order comes in, they immediately get to work. 

When looking for a fulfillment center make sure you discuss all of these options and see what tools they can offer to streamline your logistics.

Packaging & Customer Experience

One of the best parts of selling products DTC is the brand is able to completely control the customer experience. That includes how they interact with your website and the content you provide, how they pay for your product, and lastly how they receive it.

A big part of their experience once receiving the product comes down to packaging design. There are many ways to make an impression on your customer beyond just your product.

• Is your primary and secondary packaging branded?
• Are you using recycled or eco-friendly packaging materials?
• Did you include additional content about your product that is informative?
•  

Make sure that you have communicated all of these specifications with your fulfillment provider as well so that they know how to accurately pick and pack each order.

From the minute that package lands on your customer’s doorstep up until when they are eating or drinking your product is an experience. Make sure that you’ve done everything you can to make it as enjoyable as possible and one that will make a lasting impression on your consumer.

The post How to Set Up your CPG Business for E-Commerce Success appeared first on PartnerSlate.

When working with a contract manufacturer for the first time, there are a lot of things that can go wrong. The best way to avoid making costly mistakes is by educating yourself and being as prepared as possible. A lot of times, that means learning from the mistakes made by the thousands of entrepreneurs before you!

We caught up with food industry consultant, David Boyle fromSherpa CPG, to learn about 3 of the major mistakes he sees entrepreneurs making when entering a co-pack relationship and how to avoid them!

Mistake #1: Not clarifying who owns the formula!

Typical scenario: Usually an entrepreneur that is approaching a co-packer will have their own custom recipe already developed. However, sometimes they will only have a basic idea of what they want to create and they will rely on the manufacturer’s product development team to develop the recipe for them. When this happens, the brand and the co-packer will go back and forth to create a product that tastes great and is easily produced in their facility. Then once they have what they want, they’re off to the races producing and selling product and they’ll never discuss the formula again.

Why this is bad: The formula is the basis for your CPG IP portfolio. Just one product line can do millions of dollars in sales and that formula is the skeleton of that value. If you do not own your formula, the co-packer will have ultimate leverage on you to make sure you don’t leave them for another manufacturer in the future. Similarly, when you try to sell your business for a big exit, they will be expecting a huge payout before handing over that formula.

What you should do: If you don’t own your recipe because it was developed by them, you’ll want to purchase the co-packer’s recipe as soon as possible while its perceived value is still low. Or even better, try to build it into your agreement before starting down the product development path with the manufacturer. Many times, you’ll have to pay extra upfront for product development but then in turn, you’ll have full ownership of the recipe, which will hopefully be worth millions someday!

If you do own your recipe, make sure that you have it in writing with the manufacturer that your recipe is your proprietary information and stays that way even if changes are made during bench testing, line trials and/or production.

Mistake #2: Not visiting the production facility!

Typical scenario: Your contract manufacturer is located a couple states over or maybe across the country. Since every $ counts in the food business, you ask the food manufacturing executive if it’s required you be there, or better to save on the travel costs. He assures you that there is no reason for you to be at the facility because they are the pro’s. Or perhaps, the co-packer says they are unable to have you there because of “conflicting NDA’s.”

Why this is bad: While this is hopefully not the case, even the most buttoned up looking manufacturing facilities may be less than they are cracked up to be once you peer behind the curtain. Simply put, making a professional website is easy, making a professional food manufacturing facility is hard. Maybe the facility looks like it is not being cleaned or maintained properly. Or maybe they have different manufacturing lines and one is clearly better than the other one or maybe they never disclosed that they make their own competing product line.

One time, I tried to tour a co-packer to find out they weren’t actually a co-packer. They were actually a third party broker pretending to be a co-packer, but really just planning to subcontract out the job to another facility. Your food product is your baby, you should want to know where it’s being produced!

What you should do: You don’t need to make it sound too official, just ask if you can come by and introduce yourself formally prior to production and check out the facility. A good manufacturer will consider their facility a selling point, and should be happy to show you.

You or someone from your team should also be present for both bench testing and the first production run. 

A manufacturer not wanting you at the facility at all during your production is a BIG red flag. 

As a general rule, I will not work with any manufacturers that won’t let me tour their facility or attend production days.

Mistake #3: Not checking the manufacturer’s certifications!

Typical scenario: You have a great business and are selling online and through the natural food channel (Whole Foods, Erewhon Market, Bristol Farms, Amazon, etc). The manufacturer you are working with is certified Organic or Gluten Free so you are good to go!

Why this is bad: While your current food channels may not require it, you are eventually going to be selling to larger retailers like Costco and Walmart and they will require higher standards and food safety evaluations such as SQF Level II. You don’t want to put your business in a position where you have to turn down a large order from Walmart because your co-packer isn’t adequately certified. Or even worse, you don’t want to have a quality issue come up because your co-packer isn’t following any guidelines.

What you should do: It’s super important from day one to make sure that your co-packer is following strict quality standards. That doesn’t mean they necessarily have to be SQF Level II from the start, but make sure at the very least they are third party audited by The Department of Agriculture. Then if you know that you’ll eventually want to move into Walmart or Costco, look into what they require and start the discussion with your co-packer to see if you can work together on getting them there. If not, then you know it’s time to start looking for another option.

When looking at manufacturers, some quality certifications that I like to see are: SQF, BRC, IFS, or FSSC 2200.

Hopefully, you can learn from some of these mistakes and avoid them! The best way to have a successful partnership with your contract manufacturer is through honest and open communication. As long as you are able to address some of these issues from the beginning, you’ll be setup for success!

About Sherpa CPG:
Made to empower makers, Sherpa CPG guides food and beverage brands through the comprehensive product development process from concept through creation. Sherpa takes a multi-dimensional, strategic approach to each phase of innovation to deliver cost-effective, efficient product solutions that are positioned for real-world success in a retail environment.

For any further questions on finding a co-packer, please feel free reach out to David@sherpacpg.com

The post 3 Costly Mistakes Entrepreneurs Make When Working with Co-packers appeared first on PartnerSlate.

We have helped thousands of brands find and connect with contract manufacturers. But these are some of the most common questions we get. Here’s a good place to start!

Starting a food business and getting your product produced can be incredibly expensive. You can’t make money until you make a product – but you can’t make a product without money. Classic chicken or the egg dilemma. So how do you know how much it will cost so you can adequately prepare for the future, or in some cases decide that the whole food startup idea may not be in the cards!

Well the first step is determining your cost of goods sold (COGS). This is how you can build out future projections and determine how much product you can make based off your company’s financial situation. It also might help you realize that maybe now isn’t the right time to use a contract manufacturer. More on that here! 

So what is cost of good sold and how do you figure it out?

COGS includes all of the expenses that go into the production of your final product. In simplest form that includes:

Ingredients
Packaging
Production Costs (co-packer’s overhead and labor)

Now let’s say you are just getting started, how do you determine target COGS without knowing what the co-packer fee might be? You can determine a target COGS range by backing into that number from your MSRP price. If you aren’t selling product yet, look at competitor products in the market that might have a similar price point as you.

Now assuming you plan to sell in retail using distributors, you’ll want to build in the typical margin for each link in the sales channel:

40% for retailers
25% for distributors
leaving you with about 30-40% profit margin

See the example below from our pricing blog post:

Using the equations above you can back into what your COGS will need to be in order for you to be successful. Now the fun begins on determining if it’s even possible!

How do co-packers charge?

First off, it’s important to know what you’re paying for, is it turn-key, partial turn-key (they source the ingredients but the brand is in charge of packaging materials) or strictly tolling (the brand is essentially just paying for the facility and labor).

Just as brands make money off their product’s profit margin, contract manufacturers have to build in margin as well in order to be successful. Typically, turn-key manufacturers will build in margin on both the labor and the raw materials.

Since co-packers typically have several customers that they produce for, they likely are ordering large amounts of raw materials which gives them economies of scale. Therefore although they are marking up your materials, it can still sometimes be cheaper (and a lot easier!) then it would be if you handled all the raw materials sourcing yourself.

The price for labor and overhead really depends on the type of product and the production process. Maybe it requires expensive equipment that the contract manufacturer has invested in, or perhaps your product is very labor intensive. Volume will also always play a large role in the cost of production. Typically the higher the volume, the lower the price per unit.

In order for a co-packer to be successful, it’s incredibly important for them to be as efficient as possible. Therefore they want to make sure that they are making the most of their time and labor force as well as using their equipment to the best of it’s ability. This is why many times a co-packer’s minimums will be based on the amount of units that can be produced efficiently in one shift – that might be 5000 units, or a 100,000 units. Switching out labeling, packaging or making equipment changes for a new customer takes time and if they are having to do this multiple times throughout the day, it’s not very efficient and might impact their bottom line.

All of these are major factors when it comes to how much a co-packer will charge. Typically once a co-packer reviews your formula, they will price it out and present you with a per unit cost to produce and package the product for you. It’s okay to ask questions about the cost to better understand the breakdown. Transparency and open communication between you (the brand) and the co-packer are incredibly important for a successful partnership.

More questions about COGS or how co-packers charge? Our team of experts is here and ready to help if you have questions. PartnerSlate offers a range of consulting plans tailored to suit your needs, bringing you one step closer from #ideatoshelf.

(Source: blog.partnerslate.com)

The post Co-packer Costs? How much does it cost to get your food or beverage product produced? appeared first on PartnerSlate.

How do I sell my products?

Determining the best sales channel is very important to the success of your business. Each channel is very different and there are a lot of factors to consider. Whether you are doing a combination of multiple channels or focusing on one, make sure you know the ins and outs of how to be successful in that sales channel.

Here are the basics on a few of the main channels for food and beverage CPG brands. 

Selling Direct to Retailers

Selling direct to retail can be a great way to get started. Let’s say you have a new food product and you know of several small retailers in your area. Well now is the time to put on your sales hat, get your samples and sell sheet ready, and start selling!

Make sure you have your story down and know what makes your product different. Since you are just getting started, see if they are open to allowing you to deliver direct – sometimes retailers require you to use their distributor. (more on that later)

Let them know that you are willing to do in-store demos as this shows your dedication to sales. Also, once you are in the store, make a relationship with store employees. They are the ones placing your product and making sure it’s always replenished on the shelf.

Really focus on these initial accounts. It important to make sure your product moves in your first few accounts, as these are the velocity numbers that you will take to your larger retailer sales meetings down the line.

More tips for pitching to grocery buyers here!

Using Food Brokers

Using brokers can be a great way to bring on new accounts. Brokers will often work on behalf of brands as well as retailers. When a broker is working for a brand, they’ll reach out to their retailer contacts and do everything they can to get your product in the stores.

Due to their experience and connections, they can often be very beneficial for a first time entrepreneur, but remember, the broker will take a cut, so make sure you have built in enough margin in your product pricing to handle the broker fee and still make money.

Also make sure you are constantly running the numbers because once your volume hits a certain threshold, it might actually be less expensive to hire your own full-time sales team, than pay the brokerage fees.

Working with Distributors

If you plan on selling your product to large retailers, using distributors is pretty much a must as many of them require it.

Therefore it’s crucial that you understand how distributors work, which kind will work best for your type of product and the type of stores you are trying to deliver to. Some distributors are simply “transporters” – they deliver your product from point A to point B. Others offer sales and marketing strategies on top of that. 

There are several different types of distributors: regional, national and specialty. Specialty Distributors might focus on organic or natural products and only deliver to specific types of stores. Start off by finding the store chains that you believe your product will do well in, then find out what distributors they work with.

Regional Distributors will focus on a smaller geographical region and often service smaller stores. This can be helpful when first getting started or when hoping for more personal interaction from your distributor.

National Distributors service the big fish retailers across the country. This means they have a lot of influence with large grocery chains – so if you get in with one of these, it can quickly boost your business nationally. However, be prepared for what national distribution means for your brand. You’ll need to ramp up production to keep up with additional orders, which costs money. You’ll also probably need to look into expanding your team to keep up with all of the growing areas of your business from marketing to operations to accounting.

Many times brands will do a combination of all of the above. They will work with specialty, regional and national distributors in order hit all the types of retailers where their customers are shopping. Also keep in mind, having a good relationship with your distributor is very important. You need to constantly be working with them on ways to get your products on the shelf in the best and most cost efficient manner.

Direct to Consumer (DTC)

In today’s market you almost have to have some type of direct to consumer business, whether it’s through your own website, or through e-retailers like Amazon. And just like any other sales channel, you’ll want to build out a strategy of how to target customers and get them to “click” purchase. Digital advertising and social media are great ways to spread brand awareness and get customers to buy your products online directly from you. 

Dirty Lemon is a great example, they have solely focused on direct to consumer sales and grown their customer base to over 100,000. 

Here are some advantages to doing direct to consumer sales:

• Less inventory: Because direct to consumer sales happen in much smaller quantities, you’ll likely not need as much inventory on hand which can translate into major cost savings.
• Better margins: When you sell directly to your own customers, profit margins are much better as you aren’t having to give a cut to distributors and retailers. More on pricing and margins here!
• More control over your brand: When you sell your own products straight to consumers, you control every step of the sales process — how your products are portrayed, marketing initiatives, customer service, and more.
• Direct feedback & brand loyalty: Selling straight to your target customers offers you the chance to interact directly with them. They can give you immediate product feedback and you can build a strong relationship with them, which can lead to higher brand loyalty!

Selling through Amazon

Amazon is the largest e-commerce site in the world and therefore can be a great way to get your products out to the masses. There are a few different ways that you can sell your product on Amazon:

Similar to a typical retail arrangement, you sell your products wholesale directly to Amazon and they sell it to their customers. Unless you are the low price option in your category, this isn’t always the best choice for food and beverage products. While it takes the least amount of work on your end, Amazon doesn’t care about your brand or sales, and if your product isn’t performing well they won’t do much to help.

Setup your own Amazon seller account but let Amazon handle your fulfillment. This means you send your product to one of their fulfillment warehouses and they handle all the logistics but you still keep control of your brand, marketing and pricing.

Setup a merchant account and handle fulfillment yourself. This is the cheapest option, but not always the best. Having to handle shipping, customer service, and returns can be a daunting task when you are trying to focus on multiple areas of your business.

So when you are looking into selling your products on Amazon, be sure to look at all the options and find which is the best fit for your business and growth plan. There are consultants out there that specialize in selling on Amazon – if this could be be a major sales channel for you, it might be worth looking into getting an expert on board to help make sure you are doing it right!

When you are developing your sales and marketing strategy, look at all the sales channels out there and begin to find what works best for your business. 

Test Test Test!!!: Test several channels and determine which combination is the most successful. Some products sell better at large conventional retailers, while others might sell incredibly well online or DTC. Just make sure you are always tracking an collecting data on each channel so you know which ones are performing and where to direct your focus in the future.

(Source: blog.partnerslate.com)

The post Selling Your Food or Beverage Product – Which Sales Channels Are Right For You? appeared first on PartnerSlate.

In order to have a good understanding of how pricing in the food industry works, it’s important to know a few key terms:

• Cost of Goods Sold (COGS): This includes all of the expenses that go into the production of your final product. COGS includes raw material costs (ingredients & packaging) & production costs. When working with a turnkey co-packer, your COGS will be the price per unit that you pay for your product. If working out of a commercial kitchen or at home, remember to include your own labor costs as this will give you the right cushion for when you do move to larger production.

• Gross Profit Margin: Margin is what’s left over in revenue after paying for COGS. Each link of your supply chain will take a margin percentage. Below are some typical margin percentages that you will need to prepare for:
  Brokers 5-7%
  Distributors: 20-30%
  Retailers 30-50%

• Operating Expense: These are all other business expenses outside of cost of good sold. Overhead, marketing & sales, additional labor etc.

• Net Profit: This is your bottom line. Your gross profit – operating expense. Many food businesses will be operating at a net loss for the first several years (hence all the venture capital money!)

Determining the right price for your product is very important, and there is a lot that you need to consider. Many brands will make the mistake of doing top down pricing. They decide that they want to sell their product for $4.99 – however after everyone takes their cut, the brand is left over making almost nothing on each unit. That’s not sustainable and therefore you need to start with your costs and go from there.

If you are already working with a co-packer then you’ll likely know your COGS. If not, you can determine it by finding out the following:

COGS = Ingredient costs/unit + packaging costs/unit + total labor costs/unit

Now that you have figured out your cost of production per unit you can move on to pricing. First off, you’ll want to determine your gross margin (the amount your business will make per unit). Now this can really vary depending on which sales channel. For example if you are selling through the retail channel, your margin is going to be much less, as there are a lot of other parties involved (broker, distributor, retailer). But if you are selling direct to consumer, your profit margin will be much higher as it’s just you (more on that later!). We will lay out an example below to make it easier to understand.

So let’s start with the most expensive channel (distribution & retail). At the very least, a successful food business should be aiming for 30% profit margin. Meaning the difference in the price you pay for production (COGS) and the price in which you sell it to the distributors. So let’s run through each link in the supply chain and determine final pricing.

As an example lets stay the COGS for your product is $1.50. In order to account for your 30% margin. You’ll do the following calculation: COGS / (1- margin %).

COGS: $1.50
Brand Margin: 30%
Price to Distributor: $1.50 / (1-.3) = $2.14
Brand Gross Profit per unit: $.64

So that means you’ll make $.64 gross profit per unit. Now the distributor will typically take a 20-30% margin when selling to the retailer:

Distributor price: $2.14
Distributor Margin: 25%
Price to Retailer: $2.14/(1-.25)= $2.85

Keep in mind, if you skip the distributor and sell direct to retail – you’ll still use this price, it will just increase your brand profit margin – which is a good thing!)

Now that the retailer has your product they are going to price it with a 30-50% margin. So in this example, if the retailer takes a 40% margin, your product will be priced on the shelves for around: $4.75

Retailer price: $2.85
Retailer margin: 40%
Final product price to customer: $2.85/(1-.40): $4.75

Here is a chart to sum up our example:

This is a pretty simple example but keep in mind there are a lot of additional factors that can come into play when working through your pricing. For example sometimes shipping costs will be built in, or you might need to use a broker which will have an additional 5-7% margin that you’ll need to account for.

Also, your profit margin will fluctuate depending on which sales channel you are using. If your product is selling to consumers for $4.75, your profit margin per unit with distribution and retail might only be $.64 but if you are selling direct to consumer from your website, your profit margin will be closer to $3.25 per unit! So take a look at each channel and determine which is the best option for your business. Many times, it’s a combination!

Brand gross profit margin for each channel with a $4.75 retail price:

• Distribution: 30% -> $.64
• Direct to Retail: 47% -> $1.35
• Direct to Consumer: 68% -> $3.25

It’s a good exercise to determine the lowest price you are willing to sell your product for, while still making the profit margin necessary to keep you in business. Then start testing the market and see how high consumers are willing to pay for your product. There is typically a happy medium in sales velocity and price.

Pricing can be confusing, and an ever evolving process. The best way to improve profit margin is to lower your costs, so be responsible and always look for ways to be more efficient and save money without risking quality.

The post How to Correctly Price your Food or Beverage Product appeared first on PartnerSlate.

You may have heard of them, and if not yet, you will soon. Meet Vive Organic, one of the CPG industry’s top up and coming wellness beverage brands. We had the opportunity to sit down with their Co-founder & COO, Kyle Withycombe last week and pick his brain on their journey, the ups and downs of a thriving startup and some keys to success that he has picked up along the way.

Kyle “dished” out advice on where to begin, how to grow, stay organized, and manage all the many moving parts that comes along with a food startup. With experience at three startups, we knew he’d have some valuable advice to share!

Question #1: Tell us about Vive and how you guys got started? Where did you get the idea to make a wellness shot?

Wyatt, my business partner, saw the trend back in 2014. At the time, he was working with another startup and didn’t have much time to focus on the idea. There was a clear opportunity in the category, for a nutrient dense product, a convenient way for a consumer to get all of the benefits of a larger format, while eliminating the sugar, calories, water, etc. It was exciting. I had been working in the organic food and beverage industry for the past 5 years at the time, with most of my experience in operations. He had the idea but didn’t really know how to manufacture or distribute refrigerated beverages. He came to me and our other co-founder JR in 2015, pitched us the idea, and we were immediately in.

We hit the ground running, within weeks we were making our first formulas/flavors and talking to prospective customers. I would say my first piece of advice is don’t be afraid to just start. Even if you don’t know quite where to begin, you’ll figure it out along the way. There are a lot of great resources out there like PartnerSlate that can help you find the knowledge and partners needed to get you going in the right direction early on.

JUST START! Even if you don’t know where to begin, you’ll figure it out along the way.

Question #2: How was the process of developing your formula(s) and finding a co-packer?

As a startup, finding a co-packer can be challenging. There can be a limited number of manufacturers who specialize in what you need, but also a limited number of manufactures who can scale as you grow. Finding a manufacturer who buys into your product & business plan and is willing to invest in your growth is key in building a strong operational foundation. You will need to pitch the copacker like you would a potential investor, get them to buy into what you are creating.

This industry has a strong network of professionals who are willing to help you throughout your search. I spoke with hundreds of people, who pointed me in many directions, until I was able to find the right partner. I found equipment manufacturers to be very helpful in identifying those who can manufacture/co-pack your product.

Honestly, that’s why it’s awesome having online platforms now that are making this process much more efficient by creating an environment where entrepreneurs can connect with hundreds of people in the industry with the click of a button. This is really what the industry has been lacking.

When it comes to developing your formula. If you don’t have experience formulating products, find a food scientist who specializes in your product category. They usually have tons of experience, and can help with a wide range of activities such as formulating, product testing, production support, SOP creation and nutritional testing.

Question #3: Supply chain has so many moving parts, how do you keep it all organized?

Strong processes are KEY in building a successful supply chain! With all the moving parts, its important to build a process for EVERY piece in the chain. You will find it very difficult to manage the supply chain effectively if you are running wild, not checking the boxes to ensure the ball is not being dropped.

Strong Processes -> Successful Supply Chain

Get the right systems in place to scale your business. Most startups are able to run the business off of excel, which can be a powerful tool until you are able to implement an ERP system down the road. Build out reporting and planning tools that give you visibility into how you are operating. Gather data, analyze and adjust accordingly. The business will change daily, and the data you receive will allow you to change with it. Make sure you are using it to your advantage.

Question #4: How do you currently source the ingredients for your products? Do you recommend doing it yourself or building it into your co-packing contract?

We always source the highest quality ingredients in order to provide the consumer with the most efficacious product. Since quality (along with pricing) is one of the most important aspect of sourcing, we keep control over who we buy from. If you hand this over to a co-packer to manage, you lose a little control over both the quality, and price of your supply. Because of this, I would recommend keeping this in house, and not relying on your copacker to manage and meet your needs.

The downside of this, is the resources required to source ingredients in house. It’s definitely a lot of work and with a massive amount of responsibility already on your plate it can be a little daunting. Using platforms like Partnerslate is a great way for people new to the industry to identify a handful of suppliers that can help supply their needs. They have a network of countless suppliers to connect with.

Question #5: A lot of times the difference in a successful food business and one that fails is correctly managing your costs and determining the right price for your product. How important is it to correctly manage your margins?

Super important! If not one of the most important parts of your entire business. I have listed a few tips below on how to manage margins correctly and keep your costs in check.

• Work through your multi-channel pricing strategy early on
  This will enable you to work through long term financial planning, and give you a clear pricing strategy that you can build upon as you grow.
• Build a strong promotional plan, forecast and budget accordingly.
  Trade spend can be a difficult one to get your arms around, and manage appropriately. If you don’t pay close attention to your spend, your margins can take an unexpected hit. Create a system that provides good visibility into your spend, and monitor it closely.
• Find opportunities to reduce costs whenever and wherever possible.
  Work closely with your vendors and provide them visibility into your business plans and growth so that they can plan accordingly and are ready to grow with you. Leverage this growth to reduce material/labor costs.
• Constantly look for ways to improve, solve inefficiencies and reduce risk.
  Create a budget, forecast margins and work to build processes and procedures around hitting your goals. It will be very difficult to manage margins effectively without a clear plan that the team can work against.

Question #6: Vive has had some crazy early growth – what has been the most difficult part and the most fun?

Yes, we have definitely experienced strong growth since we launched. And fortunately, we have been very successful in managing this acceleration. As I mentioned before, developing strong processes is the most important step in ensuring you can scale your business. Make sure you are prepared for this when the time comes. The hardest part about growing so quickly is ensuring you stick to these processes in the moments of chaos. Cutting corners to get something done will usually end with a negative result, creating more work in the end.The most fun part is talking to customers and seeing them respond positively to our product and love it as much as we do. 

Okay, what’s one bit of advice you have to offer to a fellow food or beverage entrepreneur out there?

Stay focused on what you need to achieve in the short term, to have long term success. With so many moving pieces, it’s easy to get distracted and fall off course. Find a strong support system in advisors, and lean on them for their knowledge and expertise.

(Source: blog.partnerslate.com)

The post Beverage Entrepreneur: Managing all the Moving Parts of a Growing Beverage Brand appeared first on PartnerSlate.

With the specialty bar market being one of the most competitive product categories in the CPG industry, it’s tough to be a stand out.  But JoJé Bar is definitely on their way to being just that!

While cycling professionally, Jess Cera was in need of an energy bar that would taste great and provide her all of the nutrition to train and compete at a high level. She found that the commercial energy bar market simply could not meet her demands for a bar that was easy to digest, gluten and dairy free, and delicious tasting. So, Jess took to the kitchen over five years ago with a goal in mind: to make the most delicious tasting energy bar that is made from actual real food ingredients that offered a sustainable release of energy. That’s when JoJé Bar was born.

Since their launch, JoJé has seen steady growth pushing their customer base past just athletes to healthy on the go everyday people that are looking for a healthy snack or meal replacement.

And like many food brands, with growth comes challenges. They were growing out of their current production facility and needed to find a new co-packer fast. They could have wasted hours on google searches and scouring industry lists but instead they signed up for PartnerSlate to help with their search.

“We needed the ability to scale to a larger co-packing facility and using a resource such as PartnerSlate gave us a comprehensive, efficient, and time saving tool to search and sort co-packers across the nation. Using the Search function, we were able to customize our search to fit our needs as a company.”

The co-packer search process can definitely be a daunting one. Many brands have a checklist of items that they want in a manufacturing partner and being able to find someone that checks all the boxes can be incredibly difficult. It’s important to cast your net wide in order to make sure you are talking to all the potential partners out there, but once you have narrowed it down, do your research and make sure they really are the RIGHT fit.

When we asked JoJé Bar co-founder John Abate what he recommended to brands going down the co-packer path, his advice was exactly that:

“When seeking a manufacturing partner, be sure to really research their company – do they have all of their process and handling certifications? If you can, schedule a meeting with them on site and view their operations from the production floor. Also, be sure to understand whether they have the ability to scale to meet larger demands. Growth can happen faster than you realize!”

We built PartnerSlate to help pull the CPG industry out of its old ways, constant trade shows, phone calls and out of date industry contact lists. PartnerSlate’s easy to use platform can help brands find the RIGHT partners to take their products from idea to shelf.

“Our experience was great using PartnerSlate! It was easy to sign up and begin searching and corresponding with partners right away. The services were affordable for a small, yet growing company and we were greeted with a LIVE support person immediately upon signing up. Further, we receive timely (and non-spammy) emails directly from their support team about potential partners that might be a fit for us that we could have overlooked.”

Working with brands like JoJé Bar is exactly why we we do what we do. By helping entrepreneurs create and scale healthy delicious products, it’s a win-win for everyone! Learn more about JoJé Bar on their website and next time you see them in the store, definitely try one, you won’t regret it!

The post Customer Success Story: JoJé Bar appeared first on PartnerSlate.

However, the truth is… many are not actually READY for a contract manufacturer.

Outsourcing your production can be a game changer for your brand. It can enable you to ramp up volume in order to take on larger accounts and increase overall revenue. 

However, working with a co-packer is a BIG STEP. It’s important that you are at the right stage in your business to go down that route, because if you aren’t it can cause a big waste of time and resources for your business, which for a startup could mean life or death.

If you are thinking about going the co-packing route, read through these 4 steps first to make sure the it’s the RIGHT time and decision for your business.

What stage is your business in?

Every business goes through several different stages and food industry consultant Deb Mazzaferro from Growing Your Specialty Food Business does a great job of identifying the different stages for food brands. She breaks them up into four stages: Exploring, Startup, Emerging & Legacy. 

If you are in the Exploring stage, you are probably just thinking about starting a food or beverage business and you may or may not even have a product idea. If you are at this stage you are most likely not ready for a co-packer. 

If you are in this stage, that’s awesome, continue doing just that. Explore what type of product you want to make, do your research, develop a formula and if you need help, start by reaching out to a food scientist or consultant because you are still a bit premature to begin co-packing conversations.

Now the Startup Stage is a bit tougher to determine if the time is right. At this point you have likely decided on a product, developed a recipe or formula, and possibly even sold some units at farmers markets or local grocery stores. However, if you are still not selling more than you can produce, then it’s probably not quite time yet to move to a large production operation. 

On the flip side, if you feel that you’re business is on a strong growth curve and you need the ability to scale up quickly, then it’s probably time for a co-packer. 

A bit of advice on picking the right partner, Match Size! Do your best to find a co-packer that is about the same size as you. If you find someone too big, than you’re the small fish and most likely at the bottom of their schedule priority. So it’s good to find a partner that is large enough to grow with you but also truly values your business.

Emerging and Legacy Brands are typically already working with co-packers or producing their product themselves. But even these businesses that are doing relatively large volume are constantly looking for new co-packers to produce new product lines. If your brand is in the legacy stage, but producing your product in house, it might be time to run the numbers and see if outsourcing production would save you time and money moving forward. 

Money! Money! Money! What is your company’s financial situation? 

If you haven’t figured it out yet, starting a food business is expensive. We hear it all the time:

“I am just going to make my product on the side and reinvest all proceeds and grow it really inexpensively.”

Well the truth is, that likely won’t work. Sure you’ll be able to sell a few Pasta Sauce jars at the local farmer’s market, but that’s likely as far as it will ever go. 

The harsh reality is that you can’t build a successful food or beverage business (or at least it’s VERY difficult) without a solid chunk of capital.

And, this is more so the case if you plan to work with a co-packer. Even if you convince a co-packer to do a tiny batch for you, it will still be thousands of dollars at the very least. It’s also not uncommon for the manufacturer to ask how you are funded, as they want to make sure you will be around for a while.

So take a look at your finances and make sure you are ready to make the FINANCIAL commitment necessary to begin a co-packer relationship.

Have you done your research?

The second you begin your conversation with a co-packer they are going to immediately start firing questions at you about your product. 

Make sure that you have informative answers ready. Here are some examples of the type of questions you should be ready to answer.

• What type of volume in units are looking to get produced?
• How many different SKUs?
• What are you monthly sales volume by SKU?
• What’s your annual sales projections?
• Does your product require special equipment?
• What type of packaging will the product be in?
• What are your current sales channels?
• What is your brand’s current gross margin?

It’s super important that you have spent the time and done your research before reaching out to potential manufacturers about producing your product. 

It’s okay if you are a startup and don’t have concrete answers to all of these questions, but just make sure that you understand them and have educated answers so that you at-least sound like you know what you are doing 🙂

Okay, now what?

Okay, so you have determined based off your business stage, financing and research that it’s definitely time to take your business to the next level and begin mass producing your product at a co-packing facility. Now you need to determine what happens next: logistics.

Some co-packers will be able to store the product for you and maybe even ship it directly to your customers, but it’s typically pretty expensive. You’ll likely have the product shipped to your own warehouse from the co-packing facility and then have your distributors pick it up there. These logistics are important to have ironed out when beginning negotiations with co-packers.Learn more about supply chain and freight here!

Hopefully some of these tips have helped you think through whether you are ready to take the plunge into working with a co-packer.

I promise that this post wasn’t meant to scare you! It’s hopefully just motivation to put in the work so that you are as prepared as possible and ready to start a successful co-packing relationship with the RIGHT partner.

(Source: blog.partnerslate.com)

The post Co-packing – Is Your Business Actually READY? appeared first on PartnerSlate.

That’s where Tracy’s Gourmet was born. Tracy’s Gourmet is a gourmet foods company based in North Carolina. Their flagship product is their line of natural and organic vinaigrette salad dressings and marinades.

With a great line of products, Tracy was ready to find a production home to help get her dressings produced, bottled and out to market. The problem was that she was having an almost impossible time finding co-packer. That was until she joined PartnerSlate.

“Finding the right co packer for my product has been incredibly challenging. It’s taken over two years. Hours of research, phone calls and questions were exhausting. However, in less than one month on PartnerSlate I found several co packers that were a good match for my product.”

Tracy mentioned how the stress of finding the right co-packer almost caused her to lower her standards in what she was looking for in a production partner. Which could have been catastrophic for her brand down the line. Quality is arguably one of the most important aspects of creating a successful product in today’s marketplace. Therefore it’s incredibly important to stick to your guns and hold out for the right partner that can make that great quality product that you have been dreaming up from day one.

Thankfully PartnerSlate was there to help Tracy with her search and make sure she was able to easily and efficiently find great potential manufacturing partners for her dressings.

“The experience with PartnerSlate has been great. I had a problem initially with my search results appearing, but the customer service was very fast and effective.  They reached out to me directly and made sure my issue was fixed. PartnerSlate significantly decreased my research time and made it very easy to find co packers I never heard of in the two years that I had been looking.”

We are so happy to work with brands like Tracy’s Gourmet and help them bring their dreams to life. Learn more about Tracy’s Gourmet here.

The post Customer Success Story: Tracy’s Gourmet appeared first on PartnerSlate.

Having a successful food or beverage business takes more than just having a tasty product and good sales! Michael Fougere has been in the CPG industry for over 20 years and he knows a thing or two about optimizing your supply chain so that you can grow a successful and healthy business. He has shared some insights below to help entrepreneurs get a grasp on managing their supply chain in the right way!

The first half of my career I worked for some of the biggest CPG companies in the food and beverage industry and I was lucky to work for some great managers who were willing to mentor me. When I moved to the consulting side and worked with my first entrepreneur, I was snake bit! Being an adrenaline junkie, I was hooked on the world of entrepreneurs, especially newbies!

Working in the world of entrepreneurs was eye opening as I learned that they have one thing I did not have: creative vision. An entrepreneur can take a concept, nurture it and birth a prototype while consuming a good chunk of capital.  

Once an entrepreneur has a prototype in hand and they are ready to market and sell, many will recommend hiring an experienced sales or marketing executive. While sales & marketing are definitely important, hiring a big shot executive that early can be expensive, and maybe not the best place to spend all your capital early on!

I have seen it time and time again when an entrepreneur goes this route. They go big on marketing and sales right off the bat and when it comes time to make the product, the entrepreneur will only have enough money left to hire a college intern or a distant relative with some retail experience to run operations. Often finding that after the first year they are not making margin.

In the world of CPG today, the money is in supply chain and freight! 

Someone with experience in supply chain will easily pay for him or herself. I work with many early stage entrepreneurial spirited companies on margin improvement, tearing apart their supply chain and rebuilding it with typical savings averaging 20% on cost of goods. This 20% savings can easily cover hiring an experienced supply chain professional at the beginning.

I admit that some of that savings is like picking fruit from a low hanging tree and  the entrepreneur can start by doing a lot of it on their own. A few examples of what brands should be doing from day one to set up their supply chain:

• Electronic Data Interchange (EDI) As early as possible, get your business up on an EDI system for all transactions with customers, suppliers, warehouses, manufacturers and carriers. There are some reasonable, cost-effective systems to work with. The benefits to the start-up will include optimizing staff size as business grows while maximizing your order-to-cash flow.
• Turnkey – To conserve cash during your startup period, you may want to have the co-packer quote a turnkey project where they supply 100% of ingredients and packaging materials and sell you a finished product. This type of pricing will typically include a 10% up-charge to cover their administrative costs, however it will likely still be cheaper than what you can get on your own in the beginning. My suggestion is to run cost of goods model for both turnkey and non-turkey options and compare to make a good business decision. Whatever you decide initially can always be changed in the future. Need help choosing a co-packer?
• Plan Accordingly – If you decide to order your own ingredients you should factor in enough ingredients to do one more batch of each SKU you plan to run for your initial run. You want to have enough ingredients on hand in the event you run into a problem when making the initial batch. The last thing you want is not be able to run what you planned to run because the initial batch needed to be scrapped.
• Forecasting! To develop the best possible pricing on ingredients and packaging, provide suppliers with an annual forecast when negotiating pricing. A forecast is NOT a commitment and should be adjusted on a quarterly basis once you begin shipping orders. Your initial purchase orders will be small to begin with and price will be the highest you will ever pay. If your suppliers know what they can expect for future orders, it could help you upfront.
• Delivered Pricing – Freight is a component of ingredient and packaging procurement. When ordering for the first time, get quotes for delivered pricing and non-delivered pricing. Initially it may make sense to buy based on delivered pricing otherwise you need to have someone on your team manage all the admin related to freight, such as quoting, invoicing, payments etc. It can be consuming for a small staff. However, as soon as possible, try to manage your own freight. Suppliers will be less diligent about cost of freight because they are just passing it on to you. Freight will become a bigger expense as your business grows so you definitely need to plan to manage it directly as it impacts your cost of goods.
• Freight – There are savings to be gained by managing freight including UPS and FedEx. Many start-ups think nothing of shipping materials overnight to meet a poorly planned production run only to find out at month’s end that their FedEx bill is in the thousands of dollars. Sourcing the right Freight partner can be a huge advantage, especially one that has experience working with startups and is able to grow with you. You want a freight partner that can provide value added services at no additional cost. Setting up freight consolidation programs or pool shipments for outbound customer orders can generate significant savings.

An experienced supply chain professional will then use their experience to mine for additional savings, be it through finding alternative sources, negotiating favorable supply contracts, bundling purchased items from fewer suppliers.

At the end of the day, establishing a solid supply chain from the beginning will provide the basis for launching a successful business and will properly set the entrepreneur up to sell more through their developed marketing and sales programs. 

About Michael Fougere

Michael Fougere is the owner of Bayview Consulting Group. He is a consummate professional with over 20 years expertise in developing and executing successful manufacturing and distribution strategies in the food, beverage and nutritional supplement industries utilizing Third Party Manufacturers and Logistics Providers. Demonstrated expertise ranges from product/package development, supply chain, processing and packaging, logistics, distribution and customer service. Specializing in Start-Ups and Early Stage entrepreneurial spirited companies. 

Learn more about Michael and his services at Bayviewconsultinggroup.com!

(Source: blog.partnerslate.com)

The post Supply Chain & Freight – Where Experience Matters! appeared first on PartnerSlate.

Grocery buyers are busy, and you have one chance to make a positive impression – Do you know what it takes to convince them that your product is a great fit for their shelves?

Retail specialist and SF based food consultant, Allison Ball is here to help. She as laid out 4 helpful tips to get you ready to pitch to wholesale buyers.

Think through the following four topics to ensure that you’re ready to answer all of the buyer’s questions and get them to say YES! to carrying your brand.

1) Determine Product Fit

Do your research! It’s important to make sure you are the right product fit for the buyer that you are pitching. Ensure that you’ve done your homework and understand that it makes sense in their assortment.

• Is your product similar or different than other products that they carry?
  
• Where in the store would it be merchandised?
  
• What benefits would the store get from carrying your brand?

Remember, above all a buyer brings in new products to increase sales in a particular category. You need to show them how your product will do exactly that!


If, for example, you produce a new style of coconut water you might reach out to a buyer who has a store located next to a sunny park, known for its picnic crowd on weekends. You would then present the buyer with your fantastic sales numbers, showing how well you do at other stores that are similar in size, style, or location as well as a trend report on how coconut water is driving sales in the beverage category. 

You can then highlight how your specific product will lead to increased sales in their refrigerated section, and you’ll win over that buyer in no time!

 2) Know Your Pricing

Arguably one of the most important factores and there are multiple questions that you need to be ready to answer around pricing. 

• How will the store price your item and hit their margin?
• Do you do buy-backs or guaranteed sales?
• Do you offer promotions or coupons?
• Do you pay for shipping or delivery, or do they?

Also, know exactly how much you are willing to negotiate. Have a clear pricing structure in mind before entering the conversation and know what areas you are willing to budge on in order to get the deal done. Don’t get overeager and promise low pricing just to get into the store, only to realize once you get home and run the numbers that you can’t sustain those prices.

In this instance, you could negotiate a lower priced opening order that was in place for a set period of time (say, 3 months), or coupons for that same initial period, to gain interest and drive sales. 

Above all- work with a financial consultant who is fluent in packaged food products. It will save you down the line! 

Your financials is not the place to wing it!

3) Promotional Materials & Support

Do you have an eye catching, effective sell sheet? 

Heavy weight paper, double sided, with full color photos of your packaging is perfect. Make sure it contains all of the information needed for a buyer to make a decision on your brand without your being there. Make sure that your packaging is both professional and functional. It also needs to look good on the shelf!

Sometimes it’s good to provide shelf talkers. You know, those small, laminated signs that hang under your product on the shelf and highlight the taste, benefits, and story behind your brand. Smaller, independent retailers appreciate it when you make the shelf talker yourself and provide a physical copy and a PDF for them to reprint as needed.

Lastly, how often will you come and do demos? At the beginning you should expect to do it once a month, remembering that you interact with only a very small portion of that store’s customers in each three hour demo window that you do. 

4) Have Your Logistics In Order  

Make sure that you have all of the necessary logistics ironed out for your product before entering the meeting. For example, what are the order days & delivery days? What is the case count, and minimums? What is your shelf life? How will the retailer place and receive orders?

Remember that by using larger distributors, stores can receive deliveries multiple times a week from the same vendors. They expect you to compete with that timeline, and ideally you’re able to deliver once a week and on the same day weekly. Buyers want to be in a rhythm with ordering & receiving as it makes it easier for them to manage their inventory.

Think about the long term growth for your company...

You’d ideally want everyone to place orders on the same day, that way you can produce and package in bigger runs and then deliver later in the week. In this case, you could receive orders on Monday, produce on Tuesday, pack on Wednesday, and deliver on Thursdays and Fridays. Now this way you have your weekly schedule set up rather than scrambling every time an order comes in.

The Take Away

The more prepared you are, the more likely the buyer will agree to give your brand a chance in their store. Remember, you’ve got one chance to make a positive impression, so BE PREPARED!

If you can’t answer those questions above and need support in getting ready to pitch to buyers, (or have been pitching with little success!), let’s talk. I love strategizing with food businesses and ensuring that you’re fully prepared for those exciting, stressful meetings with wholesale buyers!

About Allison
Allison Ball is a food industry consultant in San Francisco who specializes in helping producers understand the in’s and out’s of wholesale through her one-on-one client work and online group course, Retail Ready. She works to help small and medium sized businesses figure out how to get their packaged product on the grocery shelf, and keep it there. 

For more information on Allison Ball and her business, visit her website at Alliball.com.

(Source: blog.partnerslate.com)

The post 4 Tips for Pitching Your Food or Beverage Product to Grocery Buyers appeared first on PartnerSlate.

Recipe.. Formula, same thing right?

No! It is important to get your food or beverage recipe converted to a formula before you even start looking to commercialize your product. If you are going to be a real life food business start acting like one and get your product recipe converted to a formula so you’ll be ready to scale up when it’s time!

We talked to Food ScientistRachel Zemser to give us some advice on how to convert your homemade recipe to a professional industrial formula.

This is a common question asked by first time entrepreneurs and if you present your homemade kitchen recipe (still scribbled on a napkin in grandma’s hand writing) to a co-packer, they are guaranteed to run for the hills.

So what is the difference in a recipe and a formula?

A recipe is what you make at home, using cups, tablespoons and
pinches. A formula is how a professional specialty-food manufacturer documents your information in pounds, kilograms, grams and other weight measurements. These weights are converted to relative percentages and then used to make any amount or batch size of your product. 

So put on your scientist hat and get to work. Here is an example of a homemade chocolate chip cooke recipe converted to weights. 

Yes literally, weigh it out! 

Right from the start, always document your formula by weight. That’s how to ensure the formula remains consistent from bench-top preparation through final production.

Now that you have converted to weight you can easily break it out into percentages. Which is a necessary step in developing your formula.

Converting grams to percentages is a straightforward process. Simply add up the total grams of all your ingredients (in this sample formula, the total weight is 1399.8) and then divide each individual ingredients weight by the total.

Athough this is a very basic example, it gives you an idea of how to convert your recipe to a formula. Then, once you are ready to beginworking with a co-packer you will get the formula tested and approved in your manufacturing facility. 

The reason it is so important to get your food recipe converted to a formula is now you can easily and accurately scale your production up or down without sacrificing quality. And as we all know Quality Is Everything! 

The post How to Convert Your Food Product Recipe to a Formula (and why!) appeared first on PartnerSlate.

I wish it was as easy as just making a delicious product, but unfortunately the marketplace is INCREDIBLY competitive, and developing a thoughtful and unique brand is arguably the most important aspect of making your food business successful. 

Here are some pointers on creating a great brand for your food or beverage product.

Know Your Customer

The first step in developing a brand, is determining who your target market is. Who is your ideal customer? What do they like? Is it an older, more refined person that buys hand crafted, premium products? Or is it a youthful, fun and energized person that relates to quirky, colorful branding?

EPIC Bar and Plum Organics have two very different target markets and their branding shows it. EPIC Bar targets adults that want premium grass fed protein jerky. Where as, Plum is targeting moms that want fresh, healthy baby food.

A good exercise is to actually create a persona for your ideal customer. Maybe it is “Josh”, a teenager that loves fun, vibrant, healthy food. Figure out why Josh chooses some products over others and begin to develop your brand to reach out to him specifically. Do your customer research! (future post coming on this!).

It is important to know who it is that you are targeting before developing a brand for your product. Once you have determined that, you can begin to develop a brand identity.

Develop Your Brand Identity

Your brand is so much more than just a name and logo. It is the story behind your product and everything your business represents. When developing your brand identity, sometimes it is a good idea to create a backstory. Where did your product come from? Why should I (the shopper) choose this over a similar product next to it on the shelf.

Sir Kensington’shas done an amazing job at this: The story of the upscale British traveler/businessmen that devoted his life to ketchup.

Through developing the back story around their product, Sir Kensington’s makes the consumer believe they are eating a premium condiment from upper-class England.

Once you have identified the basis of what you want your brand to represent you can begin to work on the fun stuff: Name, Logo, Colors & Fonts, Labels, etc…

If you don’t have a designer on your team – hire a design firm or freelancer that has experience with CPG products. Set an upfront budget with them so there are no surprises. Sure it might be pricey, but it is worth spending the money to get a well-designed logo and label – think of it as a business investment. They will help you think through what you are trying to achieve and give you options from which to choose.

Also, do your market research. Make sure that you are not only targeting your ideal customer but that you are also setting yourself apart from the competition.

What are your competitors achieving with their brand?
How will you compare?

In the early stages, the look and feel of your brand is all you have going for you. Be unique and bold, if you believe your product is the best out there, make sure the name, logo and labeling represent that!

Stick To It!

Now that you have developed your identity, you must stick to it. Everything you do on behalf of the business has to be in line with that identity.

Stay consistent with all of your branding efforts, when you sell your product to a customer, you are creating an experience for them that they will hopefully want to repeat. Make sure you are constantly telling the same story no matter what touch point. Whether it is the way the product is displayed on the shelf, your website or even your customer service. It is important you deliver that same experience for your customer every time!

Having a strong consistent brand helps you build brand equity, which is what sets you apart from your competition. Much of the reason customers buy Gatorade over other similar sports drink options is due to the brand equity that Gatorade has developed over time with their customers.

Looking Forward

As with any business, your brand is a work in progress. You (and your customers) will mold your brand over time and it will grow as your business grows. But it is important to start off on the right track. Make sure you understand the basis of what you are trying to achieve so that every step you take is a step forward toward building a stronger brand.

The post Build A Great Brand For Your Food or Beverage Product appeared first on PartnerSlate.

Welcome to the first PartnerSlate blog post! I am Matt Suggs the founder of PartnerSlate. I want to start off by telling you a little bit about what we’re building at PartnerSlate and why we think (and hope) we can bring some great value to all types of companies in the food industry. I will also share a few of the reasons we started PartnerSlate what kind of posts you can expect going forward!

We LOVE food! And well, we love startups too..so why not combine the two! 

Okay, a little more than that went into it, but basically we decided that there had to be an easier way for food entrepreneurs to get their food products built. 

The last few months we have been working day and night to create a way for food brands, small and large, to easily and effectively connect with contract manufacturers and suppliers. The specialty food industry is BOOMING and more and more brands are realizing the benefits of using copackers so they can focus on sales and marketing. Here are a few examples of some brands that have used copackers from very early on, I think you’ll recognize them..

• KRAVE Jerky
  
• KIND
  
• Plum Organics

The problem we have found is that there is no easy way for brands to find the right copackers or suppliers for their specific product needs. 

Are you currently scowering the internet for that perfect specialty manufacturer!?

There has to be a better way right?? Well thats what we think. Before we started PartnerSlate we were just like you, wasting hours of our day trying to find the right strategic partners to help get our product built. When in reality we should have been focusing on the important stuff, like SELLING. 

So…What now?

We really believe in building a company that will make life easier for food entrepreneurs, and the same goes for this blog! So going forward we will have posts that are geared towards helping you build a successful food brand. Some posts will be by us, from our own experiences and others will be from great guests that definitely know a thing or two about building great food products.

We would love to hear from you so please leave any comments or questions below. I love feedback and I promise, I’ll respond to every comment!

Check us out over at PartnerSlate too! 

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