Why TrueStart Coffee Chooses Profitable Growth Over Scale | Founder Helena Hills

0:00We developed this product three years ago and normally it doesn't take us that long to do things. We're going to have to wait until a major player goes first.

0:13Today it's my absolute pleasure to speak to one of the two co-founders behind True Start Coffee, the powerful positive smiley force that is Helena Hills. Helena talks about their incredible growth over the last three or four years. even though they've been around 11 years, they've shown some superb traction recently. And they're growing profitably, which is something we can all only dream of. We talk about their Series A fundraise. We talk about the importance of people and team and culture. And we talk about how they are moving from an emerging scaling brand into one that is really making waves in such a solid, consistent and concrete way.

0:51Look forward to this one. Dive in.

0:57Hell in the Hills of True Start Coffee. Welcome to Brand Growth Heroes. Hello. Delighted to be here. Thanks for having me. It's so good to have you on. And what an amazing year you guys are having. Tell us all the big things that are happening right now because you're all over the news. Oh my gosh. We've got so many big things happening. Okay, well, we started off the year announcing a really exciting that we closed a Series A fundraise with Jam Jar, who are the founders of Innocent Smoothies, which is super exciting. and they've been a dream partner of ours for a really long time. So that's awesome.

1:30And it's kind of marked the start of this next chapter, I suppose, for True Start. The last couple of years, we've seen this like really insane growth, growth that we're really proud of. And now it's about like investing in all the things that we know are working really well and going boof, like scale-up mode. Like from startup to scale-up mode, I guess.

1:57Welcome to Brand Growth Heroes, the leading podcast for the founders of Challenger grocery brands. I'm your host, Fiona Fitz. My 25 years at global giants such as Nestle and Challenger brands such as Goo Chocolate Puds, Chobani and Strong Roots, as well as coached to over 400 scaling brands, means I have the experience to ask the questions that truly matter and get you the insight that will inspire you to think differently and drive serious growth for your brand.

2:29You said to me that you are doing an insane monthly run rate and you are profitable. Is that true? Yes, that is correct. Tell us. Well, I think for me, I've talked a lot for the last, so True Start is 11 years old this month. That's probably worth mentioning, which is mad for Simon and I, because it feels like we've been doing this forever, but also that we just started it yesterday. Like I'm sure you know what I mean. But we kind of spend the first five years like figuring ourselves out. And then the second five years is really like, okay, we've got something here. We're going to like really build this on, I always say on concrete and not sand.

3:10So we've worked really, really hard to be really choosy, I suppose, as to what we invest in for growth. And yeah, we've grown over the past few years profitably, which is something that I'm really, really proud of. That's incredible. And you obviously focused on that and set out to do that. Yes. Because it doesn't just happen, right? No. So we'll talk about that a little. Take us back in time to what that first kind of phase was. I was going to say messy phase before you were growing up, but actually you've said that you were trying to build on concrete, not in sand, which I think is quite a different lens than what most founders have when in that first messy period so maybe I can't say that messy ungrown up face because oh no you definitely can like no we we had a like insanely messy um a start like who doesn't that's all part of it I think is it worth me mentioning like or just sort of talking through the little how to start began like just quickly well I mean we obviously make delicious healthy coffee that's what we're all about um and if we go back like 12 years well even before that so I didn't even drink coffee we never came at true start from like a super coffee angle because I mean I didn't even drink coffee until I lived in South America many years ago now does feel like a different lifetime and I remember I lived with a Dutch girl at uni and she used to say in first year she used to say um oh do you want to go for a coffee and I'd be like do you mean the pub like it just wasn't really like um I guess it culturally it's changed a lot over here hasn't it so I definitely didn't really drink coffee until I lived in South America and it was over there specifically in Colombia that I like absolutely fell in love with it because over there it's a massive part of the culture the people are amazing big buzz and coffee's a big part of it so I came home like a big coffee fan and especially a Colombian coffee fan and then years later um Simon and I had obviously met Simon we became obsessed with this idea of like clean healthy coffee that doesn't just taste good, but it also makes you feel great.

5:16Well, can you just explain that? Because I blindly, I mean, I am so naive for someone who's worked in the food and drink industry as long as I have. Honestly, like when I buy coffee in the supermarket, am I not buying clean and healthy coffee? Well, this is it. I mean, so our coffee is like really rigorously tested for tons of quality and purity markers that people just haven't been doing. So things like caffeine consistency mycotoxins which are molds that grow on mass-produced coffee you've got like heavy metals pesticide residues and positive things as well like antioxidant content because high quality coffee is like really good for you but not not all coffee's high quality right and we didn't know that either and if we you know go back to the start of true style just before simon and i were training for like one of these iron man triathlons which is like a really big deal for me.

6:10I'd never done anything like it before. And we had got in the habit of having coffee before training. And strangely for someone who has a coffee business, I am actually really sensitive to caffeine. So I was really noticing sometimes I'd have a coffee and I'd be, you know, jittery heart palpitations. Other times I'd have a coffee and I needed another one to get going, put it that way. I totally get that. Totally. Sometimes I have to have two and sometimes I have one and I'm I feel like I'm gonna have a heart attack exactly and because we were quite tuned in like to nutrition as part of our training we started to look into it like okay coffee caffeine what does it do to our brains and what how much of it should we be drinking as well and there is tons of research out there coffee is really good for you high quality coffee is good for you but we realized that the quality of coffee is super variable you never really know how much caffeine you're drinking things like mycotoxins pesticide residues these are all like a problem and we were like okay we just have this idea to create a coffee that you know doesn't just taste great but it's guaranteed to be good for you yeah so it's carefully sourced we like basically we buy the best quality coffee we can find and then we uniquely we test it for a ton of markers quality and purity markers um and it makes a really big difference to how you feel and we started out in the world of sports and fitness and I think over the time that True Start has been around we've gone from relentlessly building the brand by word of mouth at sports events all over the country where we we created a real community around the brand from day one to to be honest I mean we're still relentlessly building the brand by word of mouth at sports events all over the country there's just the events are bigger um but early doors the idea of a healthy coffee it was only a it was only really the fitness community that really got it it's quite a niche idea but over the last decade if you think about it that has changed it was covid really we saw a light switch everything that we've stood for since day one like leading health credentials also ethics you know we're a really proactive certified b corp we're an independent family business all these things everything we've always stood for since day one became important to people and we really benefited from that and I think in that same time period if you look at the rise of like alcohol moderation low and no alcohol products it's the same thing has happened like it's almost like the market came to true start and we're now like laser focused on upgrading the everyday coffee choice there's lots of really traditional major players that people are a bit like they're of been left behind a bit and those are the ones that we are you know upgrading from.

9:05Just a quick word about Brand Growth Heroes partner Jolson. So look as a founder you've got loads on your plate. Fundraising, shareholders, co-founders, co-manufacturing, product, NPD, you name it. Scaling is really complex and the legal side of scaling can be really complex too. Who your legal partner is really matters because it's not something we can afford to get wrong. That's why I work with Jolson. Jolson have worked with brands like Little Moons, Trip, Two Chicks, Graze, Costa Malika, and they've even advised the innocent founders on their sale to Coca-Cola. And they still work with them today at Jam Jar.

9:39And for me, it's not just that they're brilliant at what they do, but they're also really good people. They care about founders, they care about doing things properly, and that really matters. And they're also one of the few law firms that's both B Corp certified and a member of 1 % for the planet. Recently, I asked one of Jolson's managing partners, Phil Halesmith, to talk to us about how Jolson supports female founders on their scaling journey. We're fortunate to have worked with loads of female founders who've had some very successful businesses, raised huge amounts of capital and are happy to give back.

10:08And that's part of what we're trying to do in terms of running a regular programme that supports them both here in the office, but also enabling them to actually access getting VC financing. If you'd like to find out more about Jolson's female founder club, Hercules, why not go to their website www.jolsonlaw.com or send a quick email to hello at jolsonlaw.com You're not going to believe this but Jolson is actually offering a free legal consultation to any founders who listen to Brand Growth Heroes podcast and I would definitely take them up on it. You'll find a link to book now directly here in the show notes below or just drop a comment underneath the episode and I will connect you with them directly.

10:47And now let's get back to the show.

10:52I don't know if you've ever heard of Dr. James Richardson of Ramping Your Brand. We had him on the show recently. Or Category Pirates, Eddie Yoon. But they talk about super consumers and finding your super consumers and doubling down on those in their super geos, which, you know, is self-explanatory really, which is what you did. When you did that, was it like cerebral, you know, we're going to make this choice to talk to these people and get them to do word of mouth? or was it because it just was the only budget you had and the only thing you knew and they were the only people who were going to be receptive?

11:27And it ended up being the right thing. It ended up being the right thing and it became deliberate later down the line. But at the time, the only thing that made sense for us to do was to get out there. And it was, Simon and I, honestly, and it was lucky really that we, our children who are six and seven, and it's mad to think they've been around for more than half of True Starts' life, actually, because it felt like we had a really long period beforehand Simon and I would be at like three sometimes four events a week certainly every weekend and then some in the week as well we'd be up at these like really early running events and we were building a real like we were just out there directly with our consumers from day one and it's still really critical to who TrueStar are actually that real life I always say that the magic of TrueStar is in our real life interaction and now one of the big jobs to be done in scale up mode is scaling that and then amplifying it online um brilliantly um because we've got all the seeds of doing that but actually it really is where the magic is because i always say we're all about making people feel good coffee is ultimately an incredible vehicle for that feeling because loads of people drink it so that's why we exist we exist to make people feel great and in that in that real life interaction that's when it's easiest you can have such an impact on how someone feels you can see someone like you know all sad and grumpy at an event that might be like you know it's still dark and it's drizzling or whatever and people are a bit like oh and you switch them on you know a barrage of positive energy and a nice cup of truth start get them going and you know they've gone off and had a great day afterwards so that's what we love to do one of my big like aha moments recently um has been all around transformation, you know, and it's quite nuanced because I've been telling the brands I work with for years and years and years, you know, that your job is, marketing is about changing people.

13:27And I can remember last year, the mini NBA last year, someone saying to me, that's ridiculous, and we're not changing people. I was like, no, but you are, because you're getting these people to do this thing for either the first time or the second time. And you're getting them to do it instead of something else. So for me, this transformation was about getting people to do things. But then I had a call recently with this fabulous lady called Sarah Wilson. And by the time this goes out, I don't know if Sarah Wilson will have gone live. And she runs a business called Community Catalysts, where she helps like Airstream and Netflix find online communities.

14:02Now, I'm not talking about like, you know, finding the Facebook group. What she's talking about is like the subreddit, right? and she talks about she's the lady who coined the idea of a digital campfire and when we were on that call she was talking about transformation being that you actually physically have to transform someone internally physically or emotionally and that's what you that's what coffee does and that's what you do even better than coffee you do it to a much greater degree than the category does it um and that's kind of like what in blue ocean theory it's like and i know I'm going off on one but just for anyone who's listening um who's thinking about category creation it's like how can you do something way over and above what the rest of the category does yeah in a way that no one's even considered as important totally and that is that was like our insight with coffee ultimately we are different because we lead with energy and we're better because we're truly obsessed and I mean obsessed with our customer and how we make them feel and that difference, like you're just talking about coming at something from a different angle, to me it's obvious because coffee, that's why people have it.

15:15They're tired and they want to wake up. Leading with energy is just really intrinsic to who we are. It's in our DNA. I've got tons of energy. I grew up with my dad saying every five minutes that we just need to work out how to channel your energy. I think True Start is that. It's how my energy's been channeled. Is all coffee not energy though because of the caffeine? No, of course it is. But from a brand perspective, we lead with energy. And that is what makes us different. Whereas a lot of coffee brands and coffee products, they're more about like cafe culture. It's not really about the energy.

15:51And there's definitely a place for that. Like, don't get me wrong, but we're like, we are here to give you energy. And obviously from a product perspective, there's loads of like product truths that help with that. So with True Start, you can like choose your caffeine level. we've got like a strong one we've got a half calf um but yeah as a brand we're really all about the energy because energy is contagious and your packaging yeah and your hair so yeah the visual visual identity of our brand is the visual kind of like manifestation of who we are your t-shirt is amazing by the way oh thanks love that and like when you meet us at events we are like a wall of yellow we are tons of energy and we're we're literally there to give that energy to other people um and that that and that is what we do and we've had quite a few um we're hiring quite a lot we've had lots of interviews and things like that and people coming into our office we call it the mega shed because it's an upgrade from the shed that we used to be we used to be based from a glorified shed and cybernised garden so now we're the mega shed and people come in and they're like oh my God, it's the vibe, like the team, everything.

17:02It's exactly how, like it's exactly how I expected it to be or I hoped it would be after seeing like, you know, things on socials or whatever. And I love that because it just is, it's such an energising place to be and such a good bunch of people.

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17:55So now you're building your team, but in the first few years, how many of them were you? How many of you were there? And then at what point did you all of a sudden see the switch into getting real traction that you obviously have now? Like what changed? The light switch was COVID because that is when the market came to true start. Right. Or like the whole pandemic situation, because suddenly what became important to people around health is the stuff we were already doing so that was like we had to fundamentally reshape the business like everybody did um but it was we came out of that whole period a much better fit for this kind of new world we're more resilient faster growing than we ever were going into it so that was kind of a light switch moment where it was like okay this is going from being niche to mainstream and then as a result of that you know a couple years later we got our first um major retail listing in co-op um and that was a big inflection for us and then we've had you know then we got costco and then last year we um took our first steps into grocery which i think is quite unusual for a brand after 10 years to take their first steps into grocery this is what this is what is mind-boggling for me so give us the figures in 2023 you were doing what and what are you doing now?

19:162023 was a million, followed by three. Yeah. Three, seven, and now we're on 12. You're on a run rate of 12 million. And that's revenue. Yes, revenue. So 12 million. I mean, basically market, that means like UK consumers or people, I don't know where they're buying it from, are buying around 20 million quid's worth of your coffee. Like they're spending 20 million quid on your coffee. That's incredible. And so it's been a really steep curve recently and that's why it's so interesting because everyone wants to know, you know, I remember a true start from years and years ago, but now all of a sudden, boom, you know, Jam Jar Series A.

19:57I mean, that is pretty hefty.