Podcast Summary
Creating a Healthier Alternative to Traditional Ketchup: Co-founders Evan and Reid made a healthier ketchup with no added sugar, 80% less carbs, 37% less sodium, and only 5 calories, while maintaining great taste, and it's USDA organic, the only organic no sugar added and sweetened ketchup in the world, competitively priced compared to other brands, and gaining traction with 80 retailers.
Evan and Reid, the co-founders of Ketchup, Please, created a healthier alternative to traditional ketchup in response to Evan's personal experience with heart health and his father's request for ketchup. They noticed a problem with the high amounts of sugar and sodium in popular brands like Heinz, and set out to create a product with no added sugar and 80% less carbs, 37% less sodium, and only 5 calories, all while maintaining the same great taste. Their product, which is USDA organic, is the only organic, no sugar added and sweetened ketchup in the world. Despite not being the cheapest option, they are competitively priced compared to other brands like Primal Kitchen, g Hughes, and Taramas. The team, currently consisting of Evan and Reid, but with help from friends and retailers, has gained traction with almost 80 retailers carrying their product.
Small ketchup company seeks $100,000 investment for growth: A small ketchup company aims to expand with $100,000 investment, using funds for inventory, product development, marketing, and market expansion.
Ketchup Please, a small ketchup company, has experienced significant growth in 2021, expanding from 15 to 78 retailers. However, to continue this growth and pursue new opportunities in ecommerce, food service, and retail, the company is seeking a $100,000 investment for a 20% stake. The funds will be allocated towards inventory to take advantage of economies of scale, product development for new flavors, marketing, particularly for ecommerce, and expansion into new markets and retailers. Despite maintaining a 30% profit margin, the company's revenue is heavily reliant on events and retail, with events becoming less viable for scaling. By 2025, the company projects to generate $260,000 in net profit. The investment will help Ketchup Please to capture new opportunities and expand efficiently.
Taste test reveals 'ketchup, please' is better than Heinz: Podcast hosts discovered their homemade ketchup complements various foods without overpowering them, enhancing natural flavors.
During a podcast discussion about ketchup, it was discovered that "ketchup, please" tastes better than Heinz and other competitors, according to a taste test conducted by the podcast hosts. The hosts, Jack and Graham, had a series of conversations about confiscating phones during podcast recordings due to people getting distracted and cutting in. They also shared their experience of developing their own ketchup brand and conducting taste tests in high school. In the process, they found that their ketchup complements various foods without overpowering them, allowing the natural flavors to shine through. They highly recommended their sponsor, Morning Brew, a free daily newsletter that provides business, finance, and tech news in an easily digestible format.
Expanding KP's Reach: Overcoming Production and Shipping Costs: Despite producing healthier ketchup, KP faces challenges in expanding to new markets due to high production and shipping costs. They're focusing on centralizing production and logistics in a larger facility to make expansion more efficient.
The team behind KP, a healthy ketchup brand, aims to provide the best and healthier alternative to popular brands like Heinz, but they face challenges in expanding to new markets due to high production and shipping costs. They are focused on producing high-quality ketchup with reduced sugar and are currently managing their business while also exploring opportunities in real estate. The team, consisting of two entrepreneurs who have known each other since 5th grade, are currently producing in Wisconsin and are looking to centralize production and logistics in a larger facility to make expansion more efficient. They have been approached by retailers like Erewhon but have not been able to meet their price points due to manufacturing costs. The team is currently focusing on servicing their current retailers and reaching out to new ones while managing their operations and exploring real estate opportunities.
Understanding inventory needs for efficient shipping and retail appeal: Retailers prefer ordering pallets monthly, shipping is most cost-effective, smaller orders require less, customer data is essential for sales trends, farmers markets have high retention, ketchup lasts 2 months, food trucks, restaurants, and cafeterias use in high volume
Producing enough inventory at a low cost is crucial for affordable shipping and appealing to retailers. Retailers like Whole Foods and Erewhon typically order pallets of products monthly, and shipping a pallet is the most efficient way to transport goods. However, smaller orders from new retailers might only require a half or quarter pallet. Customer data is essential for understanding sales trends and repeat customers, with Square and website sales providing valuable insights. Farmers markets offer high customer retention rates, but cash transactions aren't easily tracked. A bottle of ketchup lasts about 2 months on average, making food trucks, restaurants, and cafeterias attractive markets due to their high volume usage.
Optimizing ketchup production costs for restaurants: By working with larger co-packers and reducing labor costs, the price of bulk ketchup for restaurants can be lowered from $3.20 to $2.20, increasing profitability and preventing potential revenue losses due to high costs.
Optimizing the cost of production for bulk ketchup orders for restaurants can significantly increase profitability. Currently, the cost per bottle is around $3.20, but by working with larger co-packers and reducing labor costs, the price can be lowered to approximately $2.20. This cost savings can be used to make up for potential slim margins on fancier ketchup brands or to increase overall profits. The restaurant industry is a significant sales channel, with potential revenue losses due to high ketchup costs. Last year, missing the July and September months due to tomato shortages resulted in approximately $15,000 in lost revenue. To prevent recurring issues, the company is focusing on securing larger tomato purchases and building up inventory to ensure a consistent supply. While the company has seen success selling to retailers and farmers markets, there is potential for significant growth in e-commerce sales, particularly through targeted Facebook ads.
Save on shipping costs with ketchup bundles: Buying a ketchup bundle is more cost-effective than purchasing a single bottle due to high shipping fees. Dana's Bestest offers a variety of flavors and plans to expand into other condiments.
The best value for ketchup, whether purchased on Facebook or Amazon, is in buying a bundle rather than a single bottle due to the high shipping costs. The creators of this ketchup brand, Dana's Bestest, suggest that customers try their smooth heat and doughnut sauce flavors in a bundle to save on shipping costs. The brand also plans to expand into other condiments, starting with barbecue sauce, to create a premium brand that stands out at cookouts and events. The ultimate goal is to grow the brand and potentially attract the attention of larger companies. Dana's Bestest aims to provide healthier and better-tasting condiment options for consumers, contributing to a healthier and happier America.
Differentiating a business through unique product and brand identity: Creating a high-quality, unique product and building a strong brand identity can help businesses stand out from competitors, even in saturated markets. Offering healthier or premium options can attract customers who value these qualities.
Creating a unique, high-quality product with a strong brand identity can help differentiate a business from competitors, even if they attempt to copy the concept. The speaker's ketchup brand, Bancro Coffee, has succeeded by offering an organic, no sugar added option that tastes better than traditional brands, appealing to consumers who value health and premium quality. However, challenges such as supply chain issues and competing against well-established brands with large consumer bases remain obstacles. Despite these hurdles, the speaker remains confident in Bancro Coffee's ability to stand out in the market and attract new customers through word-of-mouth and positive reviews.
Production challenges and quality issues hinder growth: Despite raw material costs and logistics, production delays, quality issues, and lack of funding pose significant challenges to the ketchup business's growth.
The production challenges and supply issues faced by the ketchup business go beyond just the cost of raw materials and logistics. The co-packer's inability to meet production deadlines and the quality issues that led to significant product waste were major obstacles. The business partners started with a small investment and have grown it significantly, but the leap to supplying large retailers requires more capital than their current profit margins allow. They've been actively seeking a strategic partner who can provide value beyond just funding. Despite these challenges, they believe in the quality of their product and their potential for growth.
Starting an ecommerce food business: High costs and uncertain returns: Cautious planning, substantial investment, and market understanding are crucial for starting a successful ecommerce food business, with initial costs including ad expenses, inventory, and hidden fees for retail partnerships.
Starting an ecommerce business, specifically in the food industry, comes with significant upfront costs and uncertain returns. The speaker shared their experience of facing high ad costs on Facebook and expensive inventory, including empty bottles and raw materials. They mentioned that even getting into retail stores like Erewhon and Whole Foods involves hidden costs and requires sufficient inventory, which can put a strain on cash flow. The speaker also noted that they would first focus on distributors to minimize inventory costs and increase profit margins. So, in essence, starting an ecommerce business requires careful planning, a substantial investment, and a solid understanding of the market and its dynamics.
Difficulties in selling low velocity items in retail: Scaling up sales for low velocity items like healthy ketchup is tough due to consumer loyalty towards iconic brands.
Selling a low velocity item like a healthy ketchup in the retail space can be challenging due to the difficulty in scaling up and competing against established, iconic brands that consumers are fiercely loyal to. The speaker, who has experience in retail and direct-to-consumer sales across various categories, mentioned that condiments like ketchup and mayonnaise are difficult to scale due to their lower velocity compared to high velocity items like potato chips or coffee. He also highlighted the consumers' strong loyalty towards iconic brands, making it tough for new entrants to gain market share. The speaker expressed his interest in collaborating with Jesse Wolfe, who has experience in the retail space, to potentially overcome these challenges together.
Challenges in the condiments market: To succeed in the condiments market, focus on building a loyal customer base, strategic partnerships, and a unique selling proposition.
The condiments market, specifically ketchup, is a challenging category due to consumer loyalty towards established brands and infrequent usage. The profit margins for selling condiments online may be thin due to shipping costs, making it more suitable for retail sales through health-focused stores. Building a loyal customer base, or "tribe," is essential for success in this category, as seen with brands like Primal Kitchen and Truff who catered to specific dietary trends. While it's not impossible to succeed in the condiments market, it requires careful planning, strategic partnerships, and a unique selling proposition.
Investment Opportunity for KPKetchup's New Product Line: KPKetchup seeks $1,000,000 investment for iced coffee hour crunch cereal and Pop-Tarts production and distribution to offset rising costs and maintain pricing for their popular bankroll product.
The speakers are proposing a business opportunity to invest in their company, KPKetchup, offering equity for $1,000,000 in exchange for production and distribution of a new product line, including iced coffee hour crunch cereal and Pop-Tarts. They believe this investment will help offset rising costs, such as inflation, and maintain their current pricing for their popular bankroll product. The speakers are confident in the potential success of this new product line due to its alignment with consumers' morning routines and convenience preferences. They invite potential investors and food production facilities to contact them for further discussion. Overall, this investment opportunity aims to provide a solution for businesses facing rising costs and maintain competitive pricing in the market.
New Bankroll product discovery: Iced coffee with unique flavors: Group discovered new Bankroll iced coffee flavors, including red velvet, millionaire matcha, caramel capitulation, sushi night, and taco alarm clock. Received additional items: Bankroll candle and Stifamily air freshener. Impressed by new product offerings and thoughtfulness behind them.
The group discovered a new product from Bankroll, which was a box of iced coffee, and they were excited about its unique flavors and packaging. The new flavors included red velvet, millionaire matcha, caramel capitulation, sushi night, and taco alarm clock. They also received a Bankroll candle and Stifamily air freshener, which added to the overall experience. The group was intrigued by the possibility of Bankroll selling coffee beans and even suggested a new product idea, bank bars. Overall, the group was impressed with the new product offerings and the thoughtfulness behind them. The discussion also included some light-hearted moments, such as the group's excitement about the new flavors and the potential presence of a Canadian penny in the box.
Discussing Unique Food Products: Flavored Protein Bars & Coffee-Infused Seasonings: The group plans to create unique food products like flavored protein bars and coffee-infused seasonings, appealing to consumers with distinct flavors and caloric value, despite potential challenges like expiration dates and regulatory requirements.
The group is discussing the creation of unique and premium food products, including flavored protein bars and coffee-infused seasonings. They believe these items, such as "Jacked pre workout" and "Coffeefy," would appeal to consumers due to their distinct flavors and caloric value. However, they acknowledge potential challenges like expiration dates and regulatory requirements for certain products. The group also mentions the potential for a line of Jack-related supplements and using coffee flavoring to enhance other foods. Ultimately, they aim to offer innovative and tasty products that cater to various consumer preferences.
Exploring new ideas and pushing boundaries: Unexpected places can birth creativity and innovation, leading to unique and valuable digital assets, like Graham Stephan NFT, for fundraising and engagement in the digital age.
Creativity and innovation can come from unexpected places, even in the form of a seemingly ordinary product or idea. In this case, the discussion revolved around the creation of a Graham Stephan NFT, which was developed through a collaborative effort with industry experts and cutting-edge technology. Despite the initial focus on food products, the team's determination and perseverance led to the creation of a unique and potentially valuable digital asset. The NFT, which could be sold and donated to charity, represents an innovative approach to fundraising and engagement in the digital age. Ultimately, the discussion highlights the importance of exploring new ideas and pushing boundaries, even when faced with seemingly mundane circumstances.
Donating free stocks to charity multiple times: Repeating the act of donating free stocks to charity can lead to substantial donations, benefiting causes like puppies and food grants, with potential contributions totaling over $1,000.
Participating in a free stock offer multiple times can potentially lead to significant donations for charitable causes. For instance, donating the stocks to support puppies and food grants could amount to a substantial sum, such as $1,000 or more. This act of giving back can be repeated multiple times, possibly even over 50 instances. It's essential to remember to claim the free stocks and send them for charitable causes, making a meaningful impact on the community. We encourage viewers to engage in this practice and share the information with others to help make a difference. Additionally, we want to thank our viewers for tuning in and for their support. We will include the relevant links to the charitable causes and the video in the description below, making it easy for viewers to learn more and take action. We look forward to continuing our mission to educate and inspire, and we appreciate your continued support. Stay tuned for more informative and inspiring content!
