762 Kelsi Petersen: Co-Founder of Kelsi’s

0:00Kara Goldin:I am unwilling to give up, but I will start over from scratch as many times as it takes to get where I want to be. You just want to make sure you will get knocked down, but just make sure you don't get knocked out. So your only choice should be, go focus on what you can control. Hi everyone and welcome to the Kara Goldin show. Join me each week for inspiring conversations with some of the world's greatest leaders. We'll talk with founders, entrepreneurs, CEOs, and really some of the most interesting people of our time. Can't wait to get started. Let's go. Hi, everyone, and welcome back to The Kara Golden Show.

0:44Kara Goldin:Today, I'm joined by Kelsey Peterson, who is the co-founder and the recipe mastermind behind Kelsey's, the better for you dessert brand known for their cult favorite brownie batter bites. And Kelsey's story began in rural Idaho Falls, where she taught raw food classes with her mom. We'll get into how that parlayed into building this company with her co-founder, Cassandra. And I'm very, very excited to hear all about that. But they have built a brand that honors real ingredients, indulgent taste, and a mission-driven business model that donates a percentage of profits to ALS Research in honor of her mother.

1:36Kara Goldin:So I cannot wait to talk all about how you're launching and scaling this incredible brand that you two have built. So, Kelsey, welcome to the show. Yeah, thank you. Thanks for having me on. I'm excited to be here. Very excited. Okay, so let's start with the actual brand, Kelsey's. So how is it different from everything else in the, I guess, better for you dessert space? Yeah, I think it really stands out in the fact that there's a lot of better for you treats out there and they might be better for you. Bar treats are actually good for you. And every ingredient in it really does have nutrients in it.

2:14So it's nice to find a brand that or a product that's like, wow, this tastes really good. And the ingredients, like everything I would just find in my pantry and make it.

2:22Kara Goldin:Yeah, definitely. So the, the, uh, I would say, where did you come up with the name? But obviously it is your name. How did you decide to, well, it is actually, but how did you decide to name it Kelsey's. It actually started I started Kelsey's Kitchen when I was gosh 14 years old so it was just very like oh people want my my stuff I would just say all right just pay Kelsey's Kitchen it just kind of was what I started I sold lots of different raw food recipes and the brownie batter bites are the ones that stuck. Yeah I love it so you have a co-founder Cassandra Hume. So tell me how you two connected.

3:08Yeah. So as I mentioned, I kind of started this as a side hustle. Kara talked about how I taught raw food classes in Idaho Falls. That whole thing started when I was 12. So I'll take you back to the very beginning to get the story of how Cassandra and I met. But when I was 12, my mom had some health issues where her intestines just totally flipped over and she had to find a new way of eating. And my mom was very intense and anything that she did, it had to be the very best. And so she realized that the doctor was like, well, after you've had the surgery, like your body, you're going to have to take pills of enzymes to digest any food because it's just totally different in there now.

3:47And my mom knew enough about nutrition, be like, oh, actually, if I don't cook anything, it naturally has enzymes in the food. And that led her to a raw food diet. I have seven older siblings. And she was like, man, in order to feed these guys, and six of them are boys, I've got to make some really good food with just fruits, vegetables, nuts, and seeds. And she went to California, actually, to Living Light Institute there in Fort Bragg is where it used to be. I don't know where it's at now. But we went there and she came back actually and started making this amazing food. I mean, she was making lasagna, she was making ice cream, all just fruits, vegetables, nuts, and seeds.

4:25none of it was cooked. And I, as a 12 year old was blown away. I was like, wow, this is so cool. And I could see, I mean, I was young, but very observe a lot. And it's like, man, I can see a change in her and her health. And just her demeanor was different. And I was like, I got to learn what she's doing and figure it out why I'm here at the house. I was only 12. I was the youngest and I saw my siblings leaving. So I kind of realized I need to, I need to learn fast. So I went with her to California and to Puerto Rico and learn how to make this food. And we came back to Idaho Falls, which is very small, and started teaching raw food classes.

5:01And people after the classes knew that I knew how to make it and were like, hey, can you make me this, this, and this? I really love it, but I don't want to make it myself. So I do that. But the thing that they really love were the brownie batter bites, what we're currently selling. And that's what they would ask me to continue to keep making. So I keep doing it. And I tweaked the recipe all the way up until this point of making it the best that it could be with just the simplest ingredients. And I realized, I'm like, man, if there is a need for this in Idaho Falls, there's got to be a need elsewhere.

5:31So I started kind of opening my eyes. I was listening to how I built this at the time. And I was feeling really ambitious one day. I was like, you know, I'm going to go down to the juice bar that just opened up and see if they would like to sell these. And they did. They loved it. They're like, this will be perfect. So I got scrappy. I was like, okay, well, can I use your kitchen on the off hours of your juice bar so I could start making these and it kind of took off and I got into another grocery chain here in Idaho Falls. And right at that time, my mom was actually diagnosed with ALS. And I didn't really know about it until the ice bucket challenge.

6:05And then my mom got diagnosed with it, but she had a type of onset that it started in her throat. So she couldn't start talking. We're trying to like figure out the test and it came back as ALS and she had three months to three years to live. And unfortunately it was only three months, but in that time she really motivated me. It was, she's just like, man, like you've been training for this your whole life. You really got to go for it. And I remember going to Brolum to check on the shelves to see where my product was and no, no product was there. I was like, man, how do you know who knows about me yet?

6:38Like I just was selling my, my bites in like a little brown paper bag. And, um, I went back to my mom's house that night and all the chocolates were in her freezer, but she was passing them out to all of her friends as Costco samples, just getting everybody hyped about it. And, um, unfortunately passed away shortly after, but right then about a month after my mom passed away, Cassandra, my co-founder found me on Instagram. She had just moved from San Francisco and was living in Idaho falls. And she found them at that same little grocery store hidden in the back and this little Brown little bag.

7:10And she's like, man, this is actually really good. Like, uh, She was trying to figure out what was happening in Idaho Falls because she's used to San Francisco. A lot of fun things happening. And it's not as common in Idaho Falls to have a startup brand doing a healthy chocolate. But she was very into it and reached out to me on Instagram if I wanted to have lunch, if I was interested in having a partner. And I was. I wanted someone that had a little more business background than I did. I've had a lot of experience in the kitchen, but I needed someone to compliment me. And it's worked out great.

7:42It's been six years of us working together. And yeah, our skill sets really complement each other.

7:49Kara Goldin:And so you give a percentage of the profits to ALS research. So was that always the business model? I mean, how did that all come about that you just decided that this is what you wanted to do? I think Cassandra and I actually decided that together. I had started just a few months before she joined. And at the time when I started, I didn't have a long vision plan. I was just kind of going day by day. I'm like, oh, all right, this is kind of taking off. Let's keep going. And then as we were talking about the longer term, we're like, you know, it feels right to have that be part of the bigger vision.

8:26Definitely.

8:28Kara Goldin:So you two make this decision that you're actually going to take your recipe and get it out to people beyond your community in Idaho. How long did that take to actually get the packaging, the business plan, like really understand what you're doing? I mean, you started, you were a little ahead in the sense that you had the recipe and you knew what the focus was going to be. But then to actually, you know, get the trademark, the, you know, all of the things that need to happen, how long did that take? I remember on our lunch, actually, we were talking about this because it was in a bag. And she's like, you know, I really see this as a bar packaging and kind of laying the bites down in a bar instead of a bag.

9:16And I think that's when we first were like, OK, like we need to start. Like, how do you even I remember talking about it on our lunch? Like, how do you even like go about doing this? And we found that it was called a flow wrap machine. And so, OK, we need to we need to find someone that has a flow wrap machine to get the packaging out. But all the meantime, while we were figuring that out, we were still selling everything in our brown bags that we were doing just by hand at a local commercial kitchen in Idaho Falls and then shipping out or hand actually hand driving, I think, because at the time the rest we had to be refrigerated.

9:47So it was really tricky to ship. We've currently made it so that we can send an ambient, which is great. But, yeah, we were hand delivering everything as we were trying to figure out getting everything into a bar. But I guess from the get-go, we didn't really pause anything. We just kept making changes as we went. And I had the idea to go to the juice bar. And then I think within like two weeks, I was in the juice bar. So it's quick.

10:15Kara Goldin:What has surprised you about launching the company? Either something that came that was positive out of it or something that was just super challenging? like you just didn't realize it was going to be so difficult. So I was kind of thinking about this a while ago and I was like, I might have like some, I don't know if this is a good thing or a bad thing, but I always feel like I could do something and then I get into it. I'm like, oh man, maybe I overestimated like what this is going to be like or my capabilities of doing it. I just kind of like jump into it and then start figuring out as we're in the middle of it.

10:49I think it's good to have Cassandra with me because she's probably a little better at like planning it out and whatnot. And so I'm just like, hours just jump in let's figure it out and um but it has its pros and its cons i think the hardest thing i feel like we've been struggling is probably like inventory and cash planning it's really tricky of getting the cash in and getting inventory and keeping that cycle going when you're small business and um working with bigger distributors that have a lot of chargebacks which is really tricky and knowing if you're gonna get paid not get paid and how to get that cash and then you know, make more inventory to stay on the shelf.

11:25So that's probably been the hardest part. But I think Cassandra and I both believe that we're meant to solve problems, like humans are meant to do that. And so we both like, kind of put our heads together and figure out how to solve the problems. Yeah.

11:40Kara Goldin:Yeah, definitely. Well, I, and I think the, you know, the traction too is so key. I always say that it's paying attention to your consumer and really trying to think about how can you make things better, right? Whether it's changing packaging or changing a recipe, or I think it's just the listening skills, too, that are needed as founders. Um, and also the, uh, you know, as my, my husband and I co-founded a company hint many, many years ago. And I remember, uh, my husband saying he would have never done it with, if it wasn't, you know, somebody like, uh, me who was willing to take risks, right?

12:30Kara Goldin:Like you almost need that balance, but the co-founder aspect is also can be really, really tricky. So how did you, like, what would you say about finding a co-founder? Like if somebody's out there listening and like, how do you create that balance and, and what, what should you look for? I guess. I think for us, like some of the hard things that have happened, And I think back to those experiences that we had. I'm like, man, I think if one of us started blaming one of the others for that, it would have caused a big riff. So my biggest thing, like find somebody that tackles the problem with you instead of start blaming another person.

13:11Because I think that's when a lot of the bad energy starts arising, you know, when really you're both in it together. So you both have to figure it out together instead of start blaming each other.

13:22Kara Goldin:Definitely. Absolutely. So when you talk about, you know, your label and it's, is it considered a clean label? I don't know if that's the, uh, the actual, uh, definition, um, of it, or is it just raw or what, what is the definition? Yeah. Is there an actual definition for a clean label? Well, and that's what I was going to say. That's what I don't know. Like, I don't know. I feel like for me it'd be a clean label, but I, I actually feel like I should reverse this and start asking you all the questions about founding a company. Yeah, definitely. Well, and it's changed. And I think for from a consumer perspective, I mean, there's these buzzwords, but what does it really mean?

14:02Kara Goldin:And so often, I think that so many companies have taken liberties with, you know, these labels where people who are actually trying to do the right thing with, you know, solid ingredients, I think it's just, it gets really confusing. But when you talk about what you've created, and obviously, you're so proud of it, it's raw, all of those aspects of it. You know, how do you get, I guess, consumers to know and to trust and to, you know, you have two different audiences that are buying today, it's the consumers, and then it's also the people who are the gatekeepers, I call them, to getting you on the shelf at these various stores.

14:49Kara Goldin:But how do you get people to really understand a lot more about your product? The best way is demos. Like having people actually try it. Like if they can actually try it, then they understand like, oh, this is good. Because I think just seeing our ingredients is almonds is number one ingredient. Almonds, we do dates, coconut oil, honey, cacao powder, and then whatever else to flavor it. And at first they don't think of it being an indulgent thing. It's more like a granola bar or something, but it's much more indulgent and satisfies a sweet craving. So having people actually try it has been our number one strategy.

15:26Kara Goldin:Yeah, definitely. And I think having success at a place like Air One, for example, I always say when other founders have said to me, Like, how do you get into the next one and get into the next one? It's just, you know, what I found was that a lot of these other retailers were kind of lemmings, right? If you were successful in one, then the others would start to follow as long as you showed up and said, how about it? You know, and I think gone are the days where launching a product that doesn't taste good is gone. And you guys have obviously nailed the taste profile as well. But when you think about like the feedback and some of the things that you're hearing from either consumers or buyers, what has been the most exciting to hear?

16:22Yeah. Well, we recently just went through a ton of changes listening to customers and feedback and putting that into play. And it's fun to see it now play out because a lot of it, our past packaging had a brown chocolate drip and it was kind of getting hidden in the shelves. It was hard for people to find. One thing was, is that they didn't know if it was supposed to be a sweet snack or just like a granola bar. So we added some dates to kind of make it a little sweeter, but still keeping it in this, you know, still healthy ingredients and using everything that you just find in your pantry. And it's fun to see that playing out also that it was melting very fast.

17:04And that was kind of a consumer issue of traveling around with it and the convenience factor and having the dates in there kind of solved it. So I was like, oh, the missing puzzle piece, we found it. So that was exciting. And it's fun to see it play out. And it's, yeah, it's, I think you were talking earlier about how you have to listen. I think another thing too we're learning is you have to be pretty agile and not so in stone about one thing that you can kind of look back and not be so into it that you can't see what's happening. So I think having the agility to kind of not only listen, but then to follow through with what you're hearing.

17:41Kara Goldin:Yeah, definitely. And also not get so wrapped up in feedback because you're always going to hear a lot of it, right? And people are going to tell you what you should be doing and trying to figure out where you need to put the stakes in the ground right around what you're doing today is important. So you have four different SKUs, correct? Yes. Yep. We have a double fudge, a rich raspberry, a salty peanut caramel, and a mint chocolate crunch. Is there one that you would say is kind of the runaway bestseller or is it too early to tell? Yeah, the salted peanut caramel is our top seller. We recently just got the Shelfie Award for the mint chocolate crunch.

18:29And that's personally my favorite. We added some puff quinoa into it. People are wanting a little more texture. And we solved that by adding the puff quinoa. So that would be my personal favorite. But I do love them all.

18:41Kara Goldin:yeah no it's so they are so so good so so when when you look at uh when you look at success so what is success for kelsey's i mean what what is when when you think about launching it are there um is there something that you hit or what is the the marker where you say yeah this is this is it were really successful. That's funny because I think that this is ever evolving for me. When I first launched, I was like, yeah, when we get into Whole Foods, that will be a success. And then as we're into that, I'm like, no, actually, I think now that we've made a little bit of a change with our recipe and we can ship ambient, success would be that people are ordering this or having more of a relationship with our customers instead of just kind of being distant from just being in the store.

19:37So having more of an online presence is kind of like the marker right now, which I do think that it's always changing.

19:44Kara Goldin:Yeah, definitely. And I think it's, but I think you touched on something, which is being able to continue to grow it, right? You're not stopping, right? And I think that that's a sign of true entrepreneurs that you keep raising your own bar, right? Even when people around you, they might tell you, you know, you should go do this, you should go and then you, you go achieve that, but you don't stop there. You just keep raising your own bar and which it sounds like you definitely have, have done. Yeah. I think in order to, it's CPG is kind of brutal. So I think in order to, to stay there, you have to keep evolving and changing and figuring out what you need to do.

20:30So, yeah. Yeah, definitely.

20:32Kara Goldin:How have you found your most, I guess, whether it's an actual mentor or whether it's like information to figure this out? because I feel like you two have both really rolled up your sleeves and you're co-founding together and you're breaking down doors and being able to do things that maybe you never imagined you'd be able to do, but you're doing it. So how have you found not just the courage to do it, but also what you need to do next? Yeah. Honestly, that's been a hard thing for us to know because there's not like a play by play of what to do. Like, you know, I, I did a lot of CrossFit training and I was like, man, I love this.

21:18Like, I just have like, this is what you have to do every day. And like, it's just a step by step, check it off, check it off. And that's really hard with this because it's not like, I don't have a check by check thing of what I need to be doing. So that is tricky. We have just kind of rolled our sleeves ups and, and gone after it. But I think that is always something that we're looking for is like a mentor or someone to help us guide us. If they've gone there, like what would be helpful. But, and what we have done is we've, um, we joined SKU, which has been helpful. There's a lot of mentors there that have kind of guided us and, and pointed us in the right direction.

21:49A lot of the changes that we made this year were actually influenced by SKU. So that was very helpful. Um, we also, uh, we also are part of the startup CPG. So that is also helpful. A bunch of other startups are getting together and we can kind of bounce ideas off of each other, kind of ask like, okay, when you've struggled with this, what do you do? So both of those have been very helpful. But yeah, we're always looking for people to mentor us.