338. We Finally Got the Stores. Now How Do We Make Them Work? With Julia Klein, LiveMore Superfoods

0:00Exactly. Yeah, we've learned the hard way with that. But I think you have to learn and learn quickly and pivot to focus your efforts in the right retailer, right region. I think something that I'm sure you've talked to others about is when you're like scattered across the US and conventional and natural, how do you really drive velocity awareness? And I think that's what we're doing a better job of now with the rebrand is staying very focused in one area, making sure you're going to be able to do it. in the right accounts and not spreading yourself too thin. I think that's something that we tried to do and had a lot of learnings with.

0:38Dan Lohman:Ready to hear more? I'm Dan Lohman and this is the Bulletproof Your CPG Brand Podcast. There's always a free guide at the end of every episode to help you go deeper into topics we cover. Now let's roll up our sleeves and get started. Julia, thanks for coming on today. Can you please tell me a little bit about yourself and how you got to where you're at today? More importantly, why did you start this business? But tell me about yourself first. Perfect. Well, thank you for having me. Very excited to have the opportunity to speak with you. I'll start with my family background. I'm fourth generation in the fruit business.

1:11My family's been selling fruit for almost 88 years. My great-grandfather was one of the first importers of boysenberries to Knott's Berry Farm from New Zealand to California. So if you've had Boys and Berry Jam, he was very instrumental in the launch of that jam, as well as my grandma got into the business as one of the first female entrepreneurs in the fruit business. So it was very incredible to watch her growing up in the business. And then my dad got involved and just really loved creating new products. So he was one of the first innovators of dried pomegranates, dried bananas, if you've had those before.

1:50growing up all the dried fruit was like candy to my sisters and I and really was inspired by all the innovation and then on a different note he actually had brain surgery when I was about 10 years old and went through a lot of health struggles was in and out of doctor's offices and really taught my sisters and I that there's nothing more important than your health so that's what really inspired my dad and I to start Live More. And we have been building the brand for almost eight years. So in college, I already kind of knew what I wanted to do and studied business and nutrition at USC in Los Angeles.

2:29And really, my passion is helping people eat better. So Live More was really born to help people feel better, live better, live more. And we've been really proud of what we've built. So excited to tell you more about it.

2:45Dan Lohman:Looking forward to that. Thank you so much for recapping all that. So let's back up to the farm part. I thought you actually lived on a farm. You were a distributor or do you live? Okay. So talk about that because you then I'm assuming you had all different kinds of fruits coming in. So how did that work? Where did you get them from New Zealand? Where else? So our strongest partners are out of South America. So actually in Chile. And I'll tell you more about that partnership. But really, my dad has been working with the largest grower partners, farmers in South America for 35 years. So we're really strong in berries, actually, and been importing berries into the United States for quite some time now.

3:30So I would say I don't never lived on a farm. We've had a lot of partnerships with farmers. And what my family's done really well is building relationships with farmers around the globe.

3:41Dan Lohman:Appreciate that. Thank you. So let's jump forward to where you're at now. Let's talk about the product. But more importantly, you said that you wanted to put together something or create something that would help people be healthier. Let's talk about that and then why this product fits in that space. So really, we believe that simple ingredients are the best nutrition. So whole foods and my dad and I are very big on the berries, antioxidants. We believe less is more. So going back to our roots of fruit, we've started with blends of berries that have been in Costco now almost nine years. And then what we developed together was smoothie cups.

4:26So you can make a smoothie in a minute and we're the first to retail with this format. and in the smoothie cups, we started very basic, just fruits and cups. And then now we've really transformed to the next level where you have nuts and seeds, and then we have formulations with different functionality. So really focused on immunity, energy, protein, and helping people get something out of their daily smoothie.

4:54Dan Lohman:I think that's great. In fact, actually, when you were saying that, I was thinking about how I used to go to the store, Costco, et cetera, and buy a huge bag full of mix. But then you're kind of stuck with that flavor. I like the fact that you have the variety in terms of what you're doing. So please talk about that. And then you said that some of them offer immunity, different functionality. So how did you build that out? And then why? Well, originally, we had seen a competitor that had done$250 million in annual revenue selling just direct to consumer. And really, their products were$9,$10 a smoothie cup.

5:34And because we're vertically integrated with our farmers and growers, we're able to offer something more affordable. and we believe that going to retail first was the right move for us because you can drive trial where someone could buy one smoothie cup for five six dollars and we really started there at the retail channel and started simple where we had it was called mind over mango and it's mango goji berries bananas and then we had one that pineapple passion and really kept it more in the tropical berries and then really evolved to see that our community was adding collagen or protein so that's where now a few years down the road we've had learnings that we want to have the functionality in the products so still keeping it very simple no artificial ingredients but adding in the functionality has been where we see the market going and the demand of the consumers.

6:38Dan Lohman:Actually, I think that's brilliant because that's exactly where it's going. We can get into more of that in a minute. So I buy your cup, but then I need a blender for it, right? Yes. Yeah. Do you have a blender? I do. Okay. That's great. But I mean, just in general, for everyone using it, we have to have a blender to be able to use it, right? Okay. Yeah. And I would say, I feel like I've had a lot of friends start to get blenders because of me. It's funny how many people didn't have blenders, but you look on Amazon now and you can buy a blender for$20,$30. It's become so much more affordable. And I think maybe your next question is, did we ever think of just doing like ready to drink and without the blender?

7:16Because that could potentially take away the obstacle to trying our products. But we have felt that blending a smoothie is part of the experience that our community loves, like the moms and kids in the kitchen having a smoothie party. it gives your our product like the consistency that you could try at smoothie king or jamba juice but in your home so we've really embraced the blender because there are other products that don't have a blender but for now we feel that blending the smoothie gives you the best like consistency and quality smoothie no actually where i was going i mean you're kind of right

7:53Dan Lohman:but what i was really thinking about have you ever seen the personal blenders the the one single serve. You guys should white label one of those and then add that to your mix. Yeah, we've thought about that. So maybe down the line, that's something that we could do. But in the technology business, I think it's smart. Oh yeah. I think it would be great. Anyhow, it just make it more accessible. We actually, I will tell you, we have smoothie machines that have started in South America where, I don't know if you've seen them in Japan at 7-Eleven, where you walk in and put your ready to blend cup in the machine, it blends it and then you're on the go.

8:29So I do think there's something about the ease and instead of like Starbucks, going to grab your coffee, being able to go to convenience stores, gas stations and have a smoothie. I think that's where the, I guess, society's headed. They want something healthier, but they don't have the time sometimes to go make a smoothie. So we're trying to also evolve with that and make it easier to eat healthy.

8:55Dan Lohman:I think that, and that's exactly where I was going with that. Cause then it could go into C stores and I can see a lot of opportunity there. I'm not, I'm not familiar with the smoothie machine you're talking about. Does it make the smoothie in your cup or do you pour it in? No, it makes it in your cup. So maybe you'll see it in the United States soon, but we have a clip and I can send you after you have ready to blend frozen cups, put it in the machine it blends it and then you're on the go in a minute oh that's handy that's the future of smoothies well i i think that's a great idea and the reason i'm where i'm going with there so i spent a lot of time i think i told you yeah came up with a creative strategy that we launched into a major retailer and it was all about providing protein collagen and all that stuff people are interested in.

9:46Dan Lohman:And I could see this being a natural fit for that, with the exception of the fact that you're frozen. So that changes the dynamic a little bit. But then again, your ingredients are fresh. So I mean, I wouldn't let that hold you back. So let's talk a little bit about you're in Walmart. Where else are you at Costco and Walmart? Yeah, so I want to add in the last year, the next step after smoothies was covered fruit. So we've actually launched a new product line that is enrobed covered fruit. So there's one very big player out there doing this. And because we've been so strong in the fruit business, the next evolution was really investing in a facility equipment and getting into this business.

10:32And with Walmart, we have yogurt and granola covered strawberries and raspberries. So it's very snackable that when you don't need the blender. And we're getting a lot of attention and momentum with this product line. And we believe because we're vertically integrated, we can have one, the cost structure to be competitive, but then and the quality, but really, our focus is innovating there. So in the next six months to year, you'll start to see some really fun formulas launched in different retailers across the country that I feel are a really great fit for our demographic. Have you had the covered fruits before?

11:11Dan Lohman:I haven't. Excuse me. Yes, I have had covered fruits before. Okay. Yeah. So we feel that next to the smoothies, it's a huge category. Those that are having a smoothie a day, they want a better for you snack, better for you dessert. And we see not only chocolate and yogurt, but a lot of other fun formulas that you'll see launched under the Live More brand in the next year. But really excited about that product line. And that's currently we launched into 700 Walmarts across the country in the frozen fruit set with that product. And then, yeah, we're looking at more retailers coming on again in the next few months.

11:49So really excited about that product line. But currently, I will say our brand has gone through a rebrand. So it feels like we're starting a bit from the beginning again of we're going out to retailers and repitching like this new California inspired brand that you'll see in more stores soon. But yeah, hopefully that answers the question of today. We're in Walmart, we're in club, Costco, but soon to be in a lot more stores that have the right demographic for our products.

12:24Dan Lohman:I appreciate you mentioning it. In fact, actually, I'm really glad you mentioned the covered fruit, the interrope fruit, because that looks really tasty. Yeah, I can see that. So it's all frozen. Okay, nothing's refrigerated. Everything's frozen. We have about a year to shelf life on every product, which is helpful. I always am fascinated by like the fresh business where people have like turnover in a week or two. It's nice with the frozen is there's so much less waste. And obviously we want to turn product quickly, but it's nice that this product can last in the freezer for a while. Sounds good.

13:02Dan Lohman:So you're moving into other retailers without mentioning which retailers you're looking at. How, what is your strategy? What are you doing to get in to how you, how are you deciding where you want to be positioned or where you want to locate? No, that's a good question. And I think I can tell you a story of at the very beginning, we had some very big retailers come to us and you realize about naming names that maybe they're not a fit, but because they're like a big banner and it sounds glamorous, you say yes. And then you realize like, are people shopping? I mean, I can just say Target, CVS for smoothies.

13:37And there was a lot of learnings there of maybe we are too early as also the retailer is moving towards that. But I think for us, going to stores that our customers are already shopping it. So I guess without saying the name, like natural, the natural channel, I believe where you already have customers that are willing to pay the premium. They want healthier products. Our focus is really there right now. And then being available on our website has been important, too, to start to build community and have communication with customers and have quick learning. But I would say focusing on the natural channel, whereas Live More did start very conventional.

14:22We launched into Target, Walmart, CVS. but really if I was to tell you where the best fit is and I'm sure you would guess I think the natural channel where you already have customers looking for products that are clean ingredient labels and to us that's where we want to focus our efforts and ideally regionally we feel that the coasts are very strong for us so I grew up born and raised in California I now live in Florida but And I can talk about that transition of moving from more of startup with my dad to a corporate company after we got acquired. But I would say focusing right now in the natural and then on the coast for our customers is where we want to be in distribution.

15:10I love that.

15:11Dan Lohman:In fact, actually, the last couple of podcast episodes were about exactly this. making sure that you grow your distribution where your customers shop where it fits so important it is and I'm really glad that you shared that story because so many brands think that the the the finish line is getting the door without thinking about is it a good door to be in one exactly yeah we've learned the hard way with that but I think you have to learn and learn quickly and pivot to focus your efforts in the right retailer right region I think something that I'm sure you've talked to others about is when you're like scattered across the U.S.

15:52and conventional and natural, how do you really drive velocity awareness? And I think that's what we're doing a better job of now with the rebrand is staying very focused in one area, making sure you're in the right accounts and not spreading yourself too thin. I think that's something that we tried to do and had a lot of learnings with.

16:13Dan Lohman:without putting it on the spot and I apologize if I am we could we can switch us we can skip this but can you talk a little bit about some of your learning some of the things that you did that you wish you wouldn't have done the things that you learned from and why you're doing what you're doing now I would say so many learnings but I'm trying to think of I think yes having the right retail partner very important so if you're going to a conventional account and just saying yes because you have the banner that might not be the right fit and then you're spending a lot of money investing but your customer is not there so that would be one um I would say yeah I think that one has been a really big learning and then And I think having the right product line, something if you go way back to when I started, we are actually in the beverage space.

17:10So we had like a ready to drink beverage, which was interesting before the smoothies. And I haven't really talked about that. But we and we tried to do a natural, healthy energy shot. And I drank them every day. I was addicted. But the thing is, it was more processed. it wasn't as, it didn't resonate with what my dad and I really stand for. And that's food is medicine. And with the smoothies, once it became more authentic, more genuine of, hey, we're selling this because it aligns with what we believe in. And our messaging is now clear. The name is clear, live more. I feel like everyone understands what we stand for.

17:51The story, everything started to work better if that makes sense instead of like chasing the shiny object i think that would be my biggest learning is if you try to do something that you see is successful in other brands to me you don't want to go chase that you really need to hone into why you're doing what you're doing and your messaging your branding there's so many things that have to work as you know for a brand to succeed and i think with livemore we're finally there where i feel we have the right product mix we have the right branding we have the right partners we have the right story but it's taking taken years of really honing in on that messaging and branding to get to where we are today instead of chasing the idea that oh well five hour energy does well let's have a natural energy shot but really our strength is in fruits we went back to our roots and said let's do what we really know best and it aligns so well with our mission and our story so I think it's just been a lot of iterations of hey we could go try that but what do we know best and what can we succeed in because the market is so saturated there's so much competition how can we focus in on what we can be best and excel at love that thank you for sharing that

19:20Dan Lohman:but I do want I have one question about that so how did you get the idea to go into those retailers that you shouldn't have been in where did that come from actually Expo West and I love sales I love telling our story so I think if a buyer came by and it was I wish I could like make up a name right now retailer A retailer A and they sell let's say energy drinks and cigarettes or something but I was like you know we can change that because the world's becoming healthier. I think we sold them on the idea of smoothies in their retailer. But at the end of the day, I don't feel like it was a fit. And then you're really going to have to spend more and like put a lot of investment into the wrong retailer.

20:07So I think that is so crucial that you're almost saying no to the shiny objects, just because they have a big name, they have thousands of stores. You have to really, I almost think, say no more at the beginning until you realize it's a fit, if that makes sense. So yeah, I think being, if I could redo from the start, we would have said no to more opportunities than we did.

20:35Dan Lohman:I'm so glad you said that. Thank you for sharing that. Again, that ties in so nicely with what I was talking about. And here's where I wanted to go with that, why I was going there with that is that this industry spends a lot of time teaching brands how to pitch and then that's it you get the yes then what do you do what is it the right yes and then exactly what do you do once you get that yes yeah and when you're so hungry for sales I feel like I was it like I ingrained it in myself like let's sell to everyone let's get retailer A B C D but then you're so spread thin your customers don't know where to find you there's so many stores in America.

21:13If I, again, was to redo, I think having pilot programs in very concentrated areas from the start that you're proving out and like walking before you're running, because I think it's very tempting to say yes to retailer A because they have the big name. You're going to be next to the giant on shelf. But at the end of the day, if your customer is already there, it's going to be pretty difficult to drive health conscious consumers to that retailer, especially when you're, I think my hardest part was being spread so thin across the country that let's say there's 4 ,000 doors, 3 ,000 doors, and you're in 500.

21:54And it's very hard to drive velocity. And to your point, it's one piece to get on the shelf, but the journey, the battle, it all starts on how can you start driving the velocity?

22:06Dan Lohman:Thank you for sharing. Okay. So now we're going to switch to retailer end. how are you approaching them? How are you helping them? How are you helping them understand and appreciate the value of the product that you want to put on their shelf? I think being very intentional now with where our partnerships are focused. So if we have a partnership, I think less is more. It's definitely quality over quantity. And then being on shelf, I think the hard again the hard part is like driving the customers into the stores but asking for regional tests I do think is very important if you're in such a concentrated area like we have a retailer coming on in the next few months and it's going to be in California and just really focusing the efforts on California that's where the brand's been rooted been made having events there, having demos.

23:03I think the samplings are so huge that people can actually try the product and then buy it. I think it's very hard nowadays. Everyone's on social media. There's so many banners everywhere. It's hard to really know what to trust and try. So I do think samplings in a concentrated area, to me, is the best way to start to drive sales and showing the retailer that we're supporting and investing the best way we can.

23:32Dan Lohman:I have someone that I can recommend if you need that does demos. That's fantastic. That'd be great. So I'll reach out. I think demos are like the best way really to capture customers' attention and drive sales because once you try the product and then let's say you give them a coupon, it's so much easier to now acquire that customer and bring them into your community to start like why buy live more over the other products on shelf right and but demos done right because a lot of companies do demos it's like here you go but somebody who has your passion or enthusiasm can explain the product talk about it so you're going to the retailer and you're talking about them putting you on the shelf how do you help the retailer by driving incremental sales to their shelf.

24:20I think every buyer, and I'm sure you've talked to lots of buyers and maybe everyone said the same thing, but I feel like it's, they want to have the brands that are driving the most velocity on their set. And for a frozen set, it's so limited. Even I've, I mean, you have one door sometimes in some of these stores. So you're really only going to be able to be on the shelf if you're driving the benchmark or higher. And I think that's something we're still continuing. I don't think anyone has this down unless you're a huge company. But for us now seeing like giving them only our top flavors, sending customers to that retailer.

25:01And I think it's an easier task if you have the right retailer, again, in a concentrated area when you are spread across the country. I think it is difficult being a smaller company to do that.