Why gummy supplements are everywhere now

0:00Welcome back to another episode of the Curious Consumer. Today we actually have our first guest Rachel Mansfield. She is a recipe creator, influencer, and founder of Kadute Snacks, a new snacking brand designed for kids. After our interview, please stick around for our normal Curious Consumer podcast. Today, we're going into the world of gummy supplements, THC beverages at stadiums, and so much more. For now, let's get into it. We're really excited to have you here, Rachel, as one of our first guests, which is wild. Rachel why don't you tell us a little bit about yourself hi my name is Rachel Bansfield I am a food content creator I have been running my food content site for over 10 years before the term influencer was a thing I was sharing healthy better for you recipes I run a venture capital fund called great shit ventures where we're investors now in over 25 companies in again the better for you space and most recently I am the co-founder and titleist person behind the scenes of Kadute Snacks which is a new organic kids protein snack that just launched but I'm excited to be here hi no it's amazing we'd love to hear a little bit more about the Kadute's story and what founding that has been like coming from the content side and the investing side um i've been recorded on numerous other interviews and podcasts that i would never start a food company like do this um but about three years ago i was sitting on our couch and i was like hey jord he's like what's up like i think we need to start a kid's snack brand we really wanted to find a healthy kid's snack brand to invest in and we told our lps like that was like the type of company we were looking for and after a couple years we couldn't find it so I'm a mom of three my kids are seven five and three and I'm like very passionate about the food that they eat and I want them to be like excited about the food that they eat where I think that the industry has like fallen really flat in that sense of like a healthy snack parents feel good about giving their kids and that kids actually want to eat so three years ago we the idea of Caduce was born it took us forever ever to launch because the R &D of our product was so intense and we have such high standards, but we launched 22 days ago and I'm, feels great.

2:32It's like I birthed a fourth child. Well, I'm really interested in what you said that you were never planning on starting a food company. So can you tell me about why you were hesitant to start your own brand in the first place? And then also what changed your mind? I mean, the food industry is tough. It's not an easy industry to be in and like before this I worked at a beverage company in the same in the same space and I saw how much work and grit and tenacity and like chutzpah it really takes to grow and scale a brand and like like wow that's it's a lot the margins are awful in food and it takes a lot to really grow it to in a point to a point where like it's either run efficiently and you're not you're not in the red like are you going to get acquired like what is going to happen I'm like I just saw how much work it took and it's honestly it's easier to be on the other side as an investor it's a lot easier to be like not like judgmental be like oh well you should really increase those margins before we would even consider you writing you a check or you're not in enough stores so like not enough people can get you your market penetration is not good it's great being on the other end but now to be the brand that's like okay well who's our first retailer how are we get our margins up a bit like where can we actually cut back on cost so it's there's just like a lot more to like keep you up at night almost to the point where I think Jordan I say it's like a catch-22 because we know so much where it makes us like very thoughtful in what we're doing with Canoots but it also sometimes paralyzes us because we like have seen so many like brands fail and it kind of just like always makes us I think it'll make us like stronger leaders in our for our company but it also has like scared me in a lot of ways before starting Caduce do you think it's changing how you might invest in brands in the future yeah I think that I mean for us our venture fund has always been like our side passion of sorts and I will definitely continue to be so I think Caduce is like what I'm like born to like what this is like why I'm here And this is like why Jordan's here.

4:41Kadoots is our main focus. And the brands that we're investing in, like I'm not looking for like snacks anymore. Like I'm like, you know, we're investors and like Shopmai, which is like a tech company. Like we're looking at like other areas of places to invest just because we didn't find what we were looking for originally. You mentioned that this is like food is one of the hardest kinds of companies to operate in, to grow. What is making Kadoots the exception to that rule? That's good. I mean, I hope that we are the exception. I really do. We have worked so hard to get to the point that we are today, like to create the product that actually tastes good, that like hits all the pillars of like what we were looking for.

5:21Like it's one thing to get a customer to buy your product, but it's a whole other thing to have them buy it again. And I think that like why we're going to stand out is like our product actually does at least we think like so far all of our customers, I think it can actually taste really good. And I think a lot of these healthy products they just like kind of fall flat like they fall short because they're not satisfying that craving of what the customer is looking for we're like for us like if you love salty cheesy crackers you're going to love our snacks because like that is like what made us want to start this company in the first place like my middle son was obsessed with a very popular cheese cracker that's like in a fun shape for kids and it's a glorified other cheese cracker so i I didn't like I just didn't want to buy it anymore.

6:08And it like wasn't in the house. So he's gluten free. My husband's gluten free. I couldn't find a gluten free cracker that tasted good. That was fitting all the pillars of like what we were looking for. So we spend so much time trying to create the actual product that we're selling now. And I think that because of the like experience and the knowledge that we have, even though we're still learning so much every single day, like I don't like I'm not a know-it-all. We're really learning here. I do think it's going to help set us up for success. We also were very well supported. We fundraising is not a huge issue for us.

6:41And I think that because we were not coming at this like naive, I should say, we like know what we're getting ourselves into. So I'm hopeful that that helps set us up for success. But you never know. I mean, obviously your background is going to play a huge role here. And just the product differentiation and taste you mentioned is huge. We've kind of alluded to, I haven't really spelled out, like what your non-negotiables were when you were building the brand. So we have five grams of protein. We're all organic. No seed oils. Gluten-free, nut-free, seed-free, lunchbox safe. No natural flavors because I think this is like a huge part of the educational piece of Kadoots where like a lot of people look at the label and they're like, oh, natural flavors.

7:23That's a good thing. Like it's natural. And natural flavors, as you guys know, like kind of have up to like hundreds or thousands of other ingredients in that one ingredient called natural flavors. so we have one of our flavors is ranch and we could have just put like organic ranch flavor in it and like called it a day to make it taste good but i did not want to put natural flavors in it there's a lot of key attributes if i had to pick my top couple it's five grams protein organic and no seed oils something else that comes up all the time is when you're scaling a cpg brand obviously it gets more and more challenging for these non-negotiables to remain a core piece of the product.

8:00So for example, when a big company like Pepsi buys some snack brand, people tend to get concerned that the formulation might change so that the margins change and yada yada. So what are some things you're thinking about in terms of maintaining quality for the brand as it scales? And what do you want scaling to even look like? That's good. No one's asked me that yet. I think that some brands are doing it really well after they get acquired. I think Perfect Bar is a great example of that where like they were acquired by mandalays i've been a perfect park early for like oh i think almost 15 years now i'm obsessed at you and every single day but like they didn't change their ingredients since they got acquired like kitchen they didn't change their ingredients when they got acquired like not everyone does as they're growing we're light years away from even like considering you know what i mean but i do think that with the right leadership in place you can continue to like fuel your customers and your products with what's most important to you I've been seeing reels trending everywhere about like a brand a lot of people love that like they change the ingredients already after getting acquired like I think that it does happen but the team is in charge of that like you have to like stand your ground and I'm stubborn it's also like not getting distracted like yeah you have a bet and that bet your betting will take off and you want to be focused on that.

9:21But to that point, how do you think about expanding to other product lines and thinking about other kids' snacks under this Kadoots branding, if it will be under the Kadoots branding or even another name? Yeah. I mean, Kadoots, we're doing our very best to make sure that people know that Kadoots is not a cracker company. It is a snack company. I really want to be a shelf-stable snack brand that covers all the bases. So think like salty, sweet, crunchy, like all of the things like I want a parent or you know customer whomever like to pick up a box of Caduce no matter what the product is and you don't even have to read the ingredient panel you just have faith that like Caduce is making it's going to be like a product that I could trust.

10:03I'm just curious how you're thinking about the kids space generally like to get Caduce out of it how are you looking at the category right now what are you excited for are there other brands that are exciting you right now? There hasn't been much that's exciting to me in a really long time, which is like, honestly, again, another reason why we started Caduce. I think baby and toddler is great. Like, you know, we have like Serenity Kids, Little Spoon, like there's a lot of really great brands. I haven't seen too much for kids in the food space. I see a lot of supplements for kids. I just heard of something this morning that someone asked me for a feedback on.

10:39It was like a probiotic, like a powder to mix into water. than like I think there's a lot of supplements for kids right now and I really just like I want more companies that are like making parents lives easier and more convenient with like ready to eat things with like good ingredients and we haven't been finding that many brands in general that we're like overly excited about right now every Monday I read your newsletter and I'm like looking for the new brands I'm like looking for all the things there's always something well thank you Rachel this was so much fun want to let the people know where they can find you so I'm at Rachel Mansfield there's no e and Rachel in my Instagram handle and my website I'm over at Substack which is called Rachel Mansfield and more please and then I'm at Kadoot Snacks and kadoots.com is where you could find our snacks and I'm so excited I hope everyone likes them thank you for your time it was so fun to chat thank you for having me so this week like every week there have been more gummy supplement launches somehow i'm a fan of this it's become such a trend that it's impossible to ignore and the two launches that we were tracking on this week first one is lucky energy which we've mentioned before on the podcast actually it's one of the fastest growing energy drink brands in the united states it's fresh off a 25 million Series B raise.

12:02They just launched their very first caffeinated gummies, which have 128 milligrams of caffeine. They also have seven grams of fiber and prebiotics in them because why would they not? So they have now entered the gummy category. And then Lemmy, which is Kourtney Kardashian Barker's supplement brand, just dropped another gummy. And the reason this was a little bit more notable because I want to say she has over a dozen gummy skews at this point. There's so many. Oh my God. I thought there was a skin one already. There's just, I think there might be a skin one already, but there is now a new skin one called skin glaze gummies, which I suppose is different from the other one because it is her very first collaboration product, which she kept in the fam by partnering with her sister, Kylie.

12:52So it's a partnership with Kylie cosmetics. And this is an Ulta exclusive gummy supplement. So that was just this week in terms of gummy supplement launches. But as I said, there have been new gummy supplements literally every week for, I would say the past at least six months. And so we wanted to dig in a little bit more and not just be like, oh, this is a trend. Gummy supplements, people are taking them, people are producing them. But more, how did we actually get here? So we ended up doing a little bit of research. And we walked it all the way back to 2014. That's when Ollie entered the market.

13:39Yeah, Eric Ryan, the co-founder of Method Cleaning Products, he and Brad Harrington, they started Ollie in 2014. And something that they did differently is, while there were some functional gummies before, they were mostly for like kids. They, and there were obviously a lot of supplements. Something that they did differently was that instead of saying melatonin, three milligrams, they said sleep. They led with what it does for you when you take it, not just what's in it. Instead of putting on the packaging, this is three milligrams of melatonin or whatever it is. They put on the packaging, just the word sleep.

14:23Sleep. This was brand new, the supplement aisle. The supplement aisle before was just a list of ingredients, basically. Right. What they did differently is the biggest thing on the packaging is what it does for you. Yeah. And they branded it cute. They made it match what somebody would want to pick up that doesn't want something that feels clinical, not just some random scary pill. And the other thing is gummies. Gummies are fun. But Ollie really set the stage for the modern gummy adult vitamin market that we see today. They were like all the other trendy brands right now. They were a Target exclusive back in 2015.

15:02They hit a hundred million plus in revenue by 2018. And then eventually they were acquired by Unilever in 2019. And that same year is when the other brand that we talked about was Goalie Nutrition, which are apple cider vinegar gummies. They launched in 2019. apple cider vinegar shots does not sound that fun they turned into gummy format and made it uh routinified they made it incorporated into somebody's daily routine but they also really leaned heavily into influencer marketing and social media and made it go viral and by 2021 they were doing almost half a billion in sales and they were one of the top 25 supplements in the U.S.

15:44by that year as well. And they're still growing. They've had some issues. They've had, I think, like a bankruptcy and then somebody acquired them, but they're still like, and they had some lawsuits as well, but they're doing well. One of the things Goalie did as well, other than just social media, is that they ventured into a part of supplements that wasn't even in the supplement aisle to begin with. Apple cider vinegar is a supplement that was not really a supplement it was right household the kitchen products that was found elsewhere in the grocery store and by putting it into gummy form they were able to put it in the supplement aisle and that also I think did play a really big role in this later phase of putting ingredients that just were never in the supplement aisle before into gummy form and then into the supplement aisle.

16:35And we can look at companies like Ohm Mushrooms. They have a mushroom gummy, not non-psychedelic, just like adaptogen, I guess, gummy supplement. There's brands like Create, Create Wellness, and now also Bloom Nutrition both have creatine gummies. Creatine, again, was like not in every supplement aisle in the way that melatonin was. It was more of like a niche wellness supplement. And by putting it in gummy form, they really transformed what the supplement aisle could look like, not just what gummy supplements could look like. Yeah, and made it more accessible to a wider audience as well. And I think something we touched on in the newsletter was how athletic greens and this like D to C wellness boom and this just general boom of fitness going a little bit more mainstream, really also on top of the Ollie and the goalie of it all.

17:34It really put all the pieces in place to get to this gummy gold rush that we're seeing today. It was a mix of benefit driven, over ingredient driven. It was the social media driving things. And for AG1 in particular, it was also like pretty packaging and premium pricing. That was. Oh, yeah. Because everything's expensive. And they tried to sell on taste. I wouldn't say that they should have tried to sell on taste because it didn't taste great. But they tried to sell on taste, which again was new for supplements. And by putting everything in one and being like, we can be this all in one, only thing you need to take supplement.

18:07That also really informed what we kind of think of as like one of the pinnacles of the gummy supplement boom, which is the brand Grooms. and Groom's launched in 2023 it's really young actually and has blown up Groom's is not just like one or two gummies but gummy packets you can take a serving of eight and they're basically a gummy version of AG1 they're all exactly all supposed to be all of the supplements you could need in one packet of a great tasting gummy format and that's like the convergence of all of these trends we just spoke about. Yeah. It's, grooms is kind of a, it's crazy what they've done and how big they've grown and how fast they've grown.

18:53I mean, within basically two years, they grew to half a billion dollar valuation. They've raised$60 million. They ship 4 million gummies daily. I personally love it. I love the gummy explosion. I adore candy. And I think a lot of people also adore candy. And I think it's a way to get indulgence into your routine without necessarily having candy. I think there's a bigger space for gummy supplements and gummy wellness products kind of than there is for this world of better for you candy. I mean, there's a reason we don't see too many better for you candy brands. Yes. And that is the key to a winning product, I think is not when you say it's a better for you version of something else I think consumers translate that in their heads a lot of the time too that's a worse tasting version of something else yeah whereas this is a better tasting version of something else of a supplement of a worse thing yeah and so being the better tasting version of a bad thing I think that is a much easier upfront sell people are willing to do a year-long subscription without having tried it based on the concept alone in a way that consumers approach something like a healthy better for you ice cream much more skeptically right i mean i i think even what ag1 did like yes powders sort of phased out a little bit i still think it made getting quote-unquote a multivitamin and all these different vitamins far easier.

20:26And if they positioned it as far tastier, I think it tastes like dirty bubble gum. Jury's out on that. But like a lot of people probably just don't want to take a bunch of pills. I know, I know my wife can't really swallow a pill. We gotta work on that. I can swallow a pill. I'm an adult. It's very easy. I'm a pro at this. But I think the format just makes it so much easier for a wider audience of people who don't want to put together a powder and a shake and all of that. Mishigas. They don't want to throw pills down their throat. They kind of want this all-in-one, indulgent, easier thing. And that's what Gruen's is.

21:08That's what a lot of these are. I'm very curious to see how the energy gummies go. Because there's a few on the market. There's Proper Good has them. There's Lucky Energy. There's this brand called Rally, which is a newer brand. And I'm curious how they get adopted by consumer base because it's a unique format for that. And there's like such an establishment around energy drinks, coffee, and if we're going a little bit smaller, maybe five-hour energy. But I'm curious how many people adopt the energy gummy in particular. Yeah, that will be interesting. I think that's a trickier one because it doesn't have that same value proposition of there's something that is a less pleasant experience to take.

21:55Like people like to drink energy drinks. People like to drink coffee. It's really only playing into the convenience factor, which I don't think is the key selling piece here. Yeah. So it will be interesting to see if that becomes something that can be habitual enough to win. because that really is why the rest of these gummy supplements are winning. It's so habitual. It's so easy to want to eat your gummies every day because it feels like a little treat and it feels like you're doing something good for your body, which is like it feels like you're hacking life. And the reality is it probably actually is a catch because we don't actually really know much about the efficacy of these supplements as with most supplements because the FDA doesn't regulate supplements.

22:44Yeah, I think that's something that I want to caveat as well. As much as we love this segment because we love gummies and they're so fun and it does feel good to do something that feels good for your body, we don't know much about how well these actually work. They make a lot of claims. A lot of these brands say that their ingredients are backed by thousands of studies. which you might have to read twice to realize means that they're like vitamin a is backed by thousands of studies sure but it doesn't mean that their specific product is backed by thousands of studies in that specific dosage in that delivery method so we don't actually know what's really being delivered and that's a caveat the other caveat is a lot of the gummies are like two to eight grams of sugar per serving, so it doesn't sound like a lot, but once you start taking your skin gummies and also your digestive gummies and also your mood gummies, that can add up pretty fast, and suddenly these same people who are anti-added sugar in all of their food products are probably eating a day's worth of sugar in their supplements.

23:58So those are the pieces we will leave you with. I loved, I added to the newsletter too, that I saw a quote from Ollie's co-founder, which obviously originates from Mary Poppins, very blatantly admitting the reason these work, which is that a spoonful of sugar helps the medicine go down. But I will say my favorite functional gummy, do you want to guess? Weed? Yeah. What a transition. Oh yeah. So we do have some fun THC and cannabis news for y 'all this week. So the United Center, which is one of the largest arenas in the country, they are starting to sell THC beverages in their arena. So they're going to be selling Cinerita drinks and Rhythm, which are two Delta 9 hemp-based THC beverages.

24:48They're going to start selling them in their arena, which is huge. We've talked about this in the past how much validation these different distribution channels give to this category, especially coming out of like decades long of cannabis being so taboo. And then slowly but surely it's becoming a lot less taboo because you combine this with other retail placements in Sprouts, in Circle K, in Target, and then all the different significant food service distributions. It's just going to reinforce all this consumer confidence that is already being built up by all of these brands that look pretty and are marketed like the rest of the brands out there and like new consumers are coming to the space that you wouldn't have expected moms in the suburb who are switching their merlot for a lemon can drink it's it's such an interesting space that barring any federal potential federal ban we'll see what happens there I think this, especially the cannabis beverages, will be a massive market.

25:52We're going to see a lot more alcohol companies starting to get into the space and invest in the space and distribute these products. Because it's already starting to happen. What's really exciting about this to me is that arenas or stadiums generally are a really interesting distribution channel because I love to think about Liquid Death for this, which Liquid Death, if you don't know it, that's actually really surprising to me by now. Liquid Death is a canned water and sparkling water company that honestly, a lot of its name recognition, despite having insane, unhinged, fantastic marketing, came from the fact that they had a Live Nation partnership early on.

26:38So they were being sold in stadiums and arenas as the water option, but also a beverage option of choice that kind of looks like you're holding a beer when other people are holding actual beers and you're drinking your water. I think that a THC beverage can play a really similar role. It's meeting people at a place where a lot of people are drinking alcohol. Maybe they don't want to be drinking alcohol. They can still hold a beverage, sip on a beverage that has a different function, which if anything, actually that offers more than just canned water does, especially in something. I mean, a lot of people enjoy THC products while at like a musical experience or just in experiences.

27:20It's something that in the same way people enjoy alcohol products. So I think it makes a ton of sense if it could play a similar role to what Liquid Death played in so many stadiums early on to its launch. I think it will do really, really well in capturing like this cultural piece. It's not just a distribution channel. I think the cultural aspect is such a valid point because it's, again, it's another point of validation for that category. that's like, oh, okay, if it's here alongside my like Bud Light and my liquid death, how bad could it be? I bet it will drive a good amount of trial. And especially because these beverages aren't high in THC.

28:04They're usually like two to five milligrams. It's not something crazy that the average adult cannot handle. And I think the other point too is like Gallup posted a poll about just Americans are drinking less but that doesn't mean they're not seeking an alternative to still feel something and I think that is exactly where the THC and cannabis market fits in so nicely into the into the changing drinking landscape that drinking is not going anywhere alcohol is not going anywhere it is a staple of culture religion everything it is embedded into humanity but Americans are drinking less. Not just young people, older folks as well.

28:49And THC will fill this void, I think, more than a lot of the other NA products that have come out on the market to date. Absolutely. And especially this is something that is still a taboo category in some ways, I think because of the gray legal areas surrounding it. This offers so much legitimacy that I think would make people who aren't typically interested in trying these products, try them if they, again, And yeah, see them next to a Coors or whatever it is. And they're like, oh, this isn't something that like my sketchy neighbor is trying to sell me. It's actually at a stadium. It really helps with eliminating that taboo as well.

29:27So once it hits Disney World, it's game over. Oh, we're screwed. We're screwed as a society. Or that could be the peak of society. Probably the peak of society for talking and drinking around the world. But each one is an infused beverage. Yes. Well, I do feel like we talk about new ways that THC is getting legitimized almost every week. So excited to see what momentum continues. But for now, I want to pivot to allergy care, which I didn't think I would be excited to talk about allergy care, but this is a really fascinating launch. so wizard wellness is a new brand that just launched as a drug-free allergy care brand and it was actually founded by someone who used to work in beauty lorne lucree hopefully i said his name correctly i think so so the idea is to actually apply some beauty and skin care principles to allergy care so instead of it being a over-the-counter drug product line they take things that are typically found as over-the-counter drugs like nasal spray sinus rinse and incorporate microbiome science and skincare ingredients into these products instead of any drug respectfully it's the most 2026 shit ever oh my god no the most 2026 shit ever is the marketing word that they invented to describe the brand which is clinical as in a mix between clean and clinical i it's kind of a vibe i'm curious to try these brands to see how they they change some seasonal allergies but i one of the interesting things about this brand is they positioned it as more of a habitual product something that you take a little bit more consistently rather than just around the times that you have allergies, which I'm sure is a mix of that's a great business model.

31:42But also, it's an interesting premise. And I think it's something also like we're seeing with what we were talking about earlier, the gummy space too, and all these different supplements and wellness is like the encouragement of taking care of yourself consistently and not just preemptively too, and not just when something is happening to you. Well, it's also clearly taking from skincare because the whole idea is to build a skincare ritual or regimen. And that's how so many of these skincare brands have taken off is by building these products that you're supposed to use every day in a very structured regimen.

32:19And they are very loudly taking inspiration from skincare to build this brand. It is a really interesting combination of things because while they do position it as something that should be ritualistic which feels very skincare-y it also was developed by allergists and they claim that it offers immediate relief which is not something that you know a supplement would claim so it's kind of sitting in between supplements slash skincare and over-the-counter medicine and I think we're going to start to see a lot more brands like this yeah clinical clinical I kind of love that it it kind of roasts off the tongue it's smart but it bothers me because clean is famously a word that is not regulated at all so any brand can use clean say they have clean ingredients or they're whatever a clean skincare brand and no one's regulating the usage of that word so to combine it with clinical which basically means like science oriented is like a little fuzzy and weird to me but i also like have to give them kudos to just like the creativity between behind smooshing those together we love it i think it's really interesting and i think we're seeing also just like a lot of these different brands that are taking slightly unsexy or maybe uninteresting categories and giving them a little bit of love and fun branding and fun marketing names like norms the the hemorrhoid care brand obviously that's a little bit more medicinal but still in that world of like who thinks allergies and hemorrhoids are sexy apparently these founders do and they did make sexy brands i will say they're they're very they're very attractive and hopefully very efficacious though i hope to never have hemorrhoids i can only pray for you but as as we said in the podcast before if with if the fiber trend goes where people think it's going we might all be spending more time on the toilet and might need hemorrhoid cream so we'll see about that but yeah it is interesting on that note let's move on to our next story this i want to talk about briefly because it's it's exciting to me and also kind of close to home sprouts coming to the east coast like really coming to the east coast they just opened up their first new york location out of Long Island.

34:45And I saw in my hometown's local publication that there might be a Sprouts coming to Fairfield County, Connecticut as well, which is really cool to see this retailer gain so much traction on the West Coast, start to move its way East a little bit, and now like really make landfall on the East Coast. And I think it's exciting for me as somebody, as two people who talk about emerging brands so much and see so many brands launching in Sprouts. It's really cool to see that there's going to be more points of distribution for these early stage brands to get in front of a good audience of consumers. And for those who don't know, Sprouts is a natural retailer that, as you said, kind of got its start, I guess, in the West Coast.

35:27Texas and Florida are its biggest markets right now. And it's a brand that or a retailer that would do so well on the East Coast. I've always been like, where are they? Why are they not coming? And it seems like they're not just landing in New York and Connecticut, but they also have big plans for just national expansion more generally this year. So this should be a really big year for Sprouts. And yeah, exciting for emerging brands, as you mentioned, but also just exciting to see a retailer doing well and expanding. I know there's been a lot of cynicism around how much consumers are willing to pay for their groceries this year and a lot of hype around how people are trading for a private label.

36:11And that will continue to happen. But the high-end natural retailers that really thoughtfully curate their selection will also still have a customer base. And I think this expansion is proof of that. Yeah. And I think also like Whole Foods needs a good competitor. Especially now that Amazon has its claws all over it. Oh, yeah. And Sprouts, Wegmans, like all of these are really sort of, I think, gunning for that space and that share of wallet as well. And yeah, it's interesting also that there's so many like regional grocery stores that it's interesting that Sprouts is starting to become more of a national name.

36:52Shall we talk about Overnight Outs? I think we shall. I was really excited to see this. I know. So we're not talking about the, just the concept of overnight oats. We're talking about a brand called Oats Overnight. They are spoon-free, AKA pretty much drinkable overnight oats brand. And they just secured$45 million from ASTO Consumer Partners. They are an incredible brand that has been growing like crazy. They currently have over 300 ,000 active DTC subscribers. They're in major retailers like Target, Walmart, and different club accounts. They were started by a former poker player, Brian Tate.

37:39I love that story. I just love when people have this like fun lucrative background. They're like, you know what? CPG brand. Oh, yeah. Warms my heart. Oats Overnight is an interesting brand because it feels like unintentionally, but I'm sure it was intentional, timed really perfectly with a lot of different consumer trends that it kind of all converged into one product. One being just the D to C boom that we referred to earlier and people wanting the convenience of a subscription product that like riding the wave of AG1 as well, for example. That's one reason. But also it's a higher protein product.