How to scale a challenger brand with Tony’s Chief Chocolonely Douglas Lamont (ex Innocent MD)

4 Dec 2024 · 57 min

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Uncensored CMO - Episode Summary

Episode Title How to scale a challenger brand with Tony’s Chief Chocolonely Douglas Lamont (ex Innocent MD)

Episode Description In this episode, Douglas Lamont, the CEO of Tony’s Chocolonely, discusses his journey from Innocent Smoothies to leading Tony's as a challenger brand. He focuses on balancing a strong mission with business growth, touching on Tony's commitments to ethical practices in cocoa sourcing, child labor eradication, and maintaining consumer engagement through a fun brand image.

Key Themes and Discussion Points

  1. Douglas Lamont's Journey
  2. Early Career: Douglas shares his background, starting at KPMG Corporate Finance and transitioning to smaller, more entrepreneurial brands like FreeServe and Innocent.
  3. Leadership at Innocent: His tenure involved scaling Innocent from €50 million to €500 million, emphasizing the importance of mission, culture, and process.
  1. Scaling a Challenger Brand
  2. Balancing Mission and Growth: Douglas emphasizes the need to respect the founding mission while adapting to change and implementing necessary processes for growth.
  3. Cultural Challenges: He discusses the transition from a startup culture to a more structured environment, ensuring that creativity remains a core aspect of the company.
  1. Tony's Chocolonely Overview
  2. Origin Story: Founded by journalists who aimed to expose child labor in the cocoa industry, Tony's mission is centered around social impact rather than just profit.
  3. B2B Efforts: Tony’s Open Chain model aims to provide ethical cocoa sourcing for other brands, demonstrating a commitment to industry-wide change.
  1. Product Quality and Branding
  2. Quality Ingredients: The commitment to high-quality cocoa translates into superior product offerings, contributing to customer loyalty.
  3. Fun Branding: The brand maintains an engaging and playful image, attracting consumers while addressing serious issues like child labor.
  1. International Expansion
  2. Market Adaptation: Douglas discusses strategies for penetrating new markets, emphasizing the importance of local talent and understanding.
  3. U.S. Market Entry: The challenges of entering the U.S. market were significant, but the brand's unique positioning and quality helped secure success in major retailers.
  1. Company Culture
  2. Values and Behaviors: Emphasizing values like being "outspoken" and maintaining a fun work environment, Douglas highlights the importance of culture as the company scales.
  3. Employee Engagement: Creating conditions for employees to feel empowered and authentic is crucial for maintaining morale and productivity.
  1. Challenges and Strategies
  2. Pricing Structure: Tony's commitment to fair pricing leads to higher retail prices, but consumers are increasingly willing to pay for ethical products.
  3. Transparency: The company embraces transparency regarding its challenges in eradicating child labor and maintaining ethical practices.

Key Takeaways

  • Mission-Driven Growth: A strong mission can guide a brand's growth without compromising on values.
  • Adaptability is Key: Brands must adapt their strategies according to market conditions and consumer preferences.
  • Cultural Integrity: Maintaining a healthy company culture is essential for sustained employee engagement and brand authenticity.
  • Consumer Awareness: Increasing consumer consciousness around ethical practices can lead to brand loyalty and allow for premium pricing strategies.

Conclusion Douglas Lamont's insights provide valuable lessons on scaling challenger brands while maintaining a commitment to ethical practices. The episode sets the stage for continued exploration of Tony's Chocolonely's journey in the next part, featuring Sadira E. Furlow, the Chief Brand Officer.

--- For more information, visit the [Uncensored CMO](https://uncensoredcmo.com/) website.

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Transcript

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0:28Ladies and gentlemen, welcome back to Uncensored CMO. the Coke acquisition and scaling them up after Coke acquired them. He really, really knows a thing or two about great challenger brands, which is why he finds himself now as CEO of Tony's Chocolonely, taking them on the next stage of their journey. So I caught up with Douglas to find out about not only what he did on Innocent, but what he's now going to do on the Tony's brand. And if you'd like to hear more next week, I'll be talking to Sidira, their CMO, who's recently joined as well, about how Tony's are marketing their brand to the audience.

0:58There's so much in this. I know you'll love it. Here it is. Douglas Lamont. So welcome to the show. Thank you very much. It's great to be here. Well, brilliant to have you. And I probably, I think I name dropped Tony's more than any other brands on the show. That's why I listen. Exactly. Is he going to mention it again? But anyway, it's a real pleasure to be in the HQ of all places. So this is Choco Central. Presumably someone's got a job just coming up with all the names around the office for, you know. Yeah, definitely having in-house copywriters and creative is a really important part of how we keep it fresh and also move at pace.

1:34So it's, you know, having that creativity in the building is really important. It's great, isn't it? Now, Diane's getting to talk about Tony's a little bit more, but, you know, you're famous for having been CEO of Innocence for many, many years through a very rich period of expansion. How did you get the job in the first place? Long story, but I guess it starts way back. My parents were entrepreneurs. They ran a software business, believe it or not, in the 1980s. And so from a young age, I sat around a table listening to business talk, and I wanted to be in business, and I didn't know what that meant.

2:04And then I ended up at KPMG Corporate Finance, which is not a traditional place to start then to become a CEO of a brand-led company. But what I found there was actually a really entrepreneurial business that was growing really fast because it was winning lots of business off the banks at the time to do M &A. but after a while there I went I got an assignment to go down to Screwfix in Yeovil of all places and write the information memorandum and I fell in love I was there for like two weeks inside the company and I fell in love with being inside a business and I was like actually being an advisor is great but I I want to be part of a real company and as ever serendipity then followed and I got a a call from a headhunter to join FreeServe the internet again challenger brand that was disrupting you know what was then dial-up internet in 1999 it seems so so long ago with the old dial-up stuff and and joined them and at that point I started to get a wider role inside the business it wasn't just about corporate finance and corporate development and actually I met you know someone we know both well Adam Morgan as part of that where we were looking at the brand positioning and he really opened my eyes to challenger brand thinking what what the brand side of a company meant and you know I'd always been more kind of business and projects and all that kind of stuff and I sort of fell in love with the challenge brand mindset and so when I went to look for my next role it was like actually I want a fast-growing challenger entrepreneurial brand and I bumped into the founders of Innocence through a friend of a friend they said oh great come in we'll talk to you they said oh great really nice to meet you yeah you're a nice guy if we ever have a role we'll let you know.

3:44And I thought, okay, well, that's not going to go anywhere. I love the company and what it stood for. And then about two weeks later, they called me and said, that didn't really sit right with us. Why don't you come back in and we'll have a proper talk. And they made up a role for me of the dangerous title of head of new opportunities. And they said, come in, learn the business for a year, and then we'll give you a big chunk of it to run. Because obviously, as we get bigger, we want to step back. And so then I did various roles. I relaunched a product that had sugar in it called juicy water to take it away from the innocent brand and built a little team, which gave me lots of experience of running different teams, marketing teams, commercial teams, supply chain teams.

4:24And I'd never been in FMCG, so I hadn't got a clue what I was doing. And then as sort of time went by, obviously the Coke investment happened in innocent. And I stuck my hand up and said, well, I'll be the integration person and kind of lead how, you know, the relationship between the two. And obviously when the founders then decided to sell the rest of the business it then became okay douglas you know will you take it on and and and lead it in in a new era and what was it like taking over the founders i mean they're they're very famous aren't they you know the three of them and their story's very well known and they would have presumably run it in their own kind of way and now with the coke investment you're now ceo what was that challenge like taking over three such famous founders taking over from three highly successful high profile um vivacious um founders when i'm a bit of an introvert was was definitely quite daunting i think what was really helpful is that there were three of them and and they all had different characters and so when i knew when i took over it wasn't like oh i've got to kind of mimic the founder because you couldn't mimic three of them and i guess it was like okay i have to be myself the reason i'm i've been given the job for a reason and and authenticity is really important to me so it was like okay how do you be yourself and when it came to I think the really important thing was I obviously had been in the business whilst people knew what I stood for you know what I was passionate about and really you know purpose vision and values of innocence was deep in my heart and whilst I wasn't necessarily the amazing Richard Reid front of house speaker like what I describe as true you know still waters run deep people understood the depth of passion I had to maintain that and therefore could bring people with me because people realized yes we want commercial success but at the heart of this the purpose vision and value still remained and we just continued to try and make get that balance right as we then grew the company from 100 to 200 to 300 to sort of 500 million over the over the next 10 years wow so it was around 100 what's the turnover when you started so when i started it was about 50 million euros as a business when i first joined when coke first invested was around 100 and then when when i finally took over as CEO, it was 200.

6:28We'd launched Juice and kind of gone from smoothies into Juice and the business had doubled very quickly. So I took over at about 200 million and when I left it was 500 million of turnover. Very impressive. Now a lot of startups struggle in the scale up phase, don't they? Because kind of what got you to there doesn't necessarily get you to the next stage. Definitely. What were the key lessons and insights about how to scale a business that, like Innocent, that kind of proven itself, it got to a certain scale. How do you go from that 100 to 500? The trick was you have to be, as I said, incredibly respectful of the core reason that you're all there, the mission, the purpose, but you have to have, I think, enough self-confidence to say, yeah, but things have got to change.

7:04And I'm not a massive process guy by nature, but you have to put in enough process in order to keep moving at pace. So we didn't want to lose that mindset. We're entrepreneurial and we move fast, but that wasn't the same as, oh, well then And let's be funky and have no processes and all just because you start smashing into each other. So it was about creating the disciplines, but making sure that you weren't becoming bureaucratic. And at the same time, making sure that the culture and the brand and the types of people you hired, you know, were people that rolled up their sleeves and got on with it.

7:41They felt passionate about the mission. They had some maybe a bit more experience than some of us had in the past, but they're still prepared to do the work. and being prepared to do the work in a scale-up is really important. You can't come from a big... It's seductive. Let's go and work for Innocent or Tony's. But if you're not prepared to do the work, you're going to die on your backside pretty quickly. Yeah. And for anyone not familiar with Innocent's story, what were the key moments in its history that really defined it as a brand and led to the growth? Using the bottles as a way to talk to consumers.

8:12They had no money. They had a credit card. They were trying to build a brand from the bottom up and they were the first ones to say, oh instead of just writing boring like ingredient stuff we can actually have a conversation with our consumers so they were kind of if you like digital before digital existed with you know the first kind of newsletters and the way that we talked on the packaging and what then became called wackaging and innocent was loved and hated for it in equal measure by different people was definitely a kind of core point of of difference that sense of you know the whole industry said no nothing but nothing but fruit couldn't be done you need preservatives you need whatever just that that sort of slightly intelligent naivety saying yeah but it must be able to be done you know that sense of relentless finding the yes in the no is something we talk about a lot so as ever a great product it was delicious it worked the repeat off the shelf was great and then obviously smoothies you know just became bigger and bigger but it was always a small part of the category you would get you to 100 million but wouldn't get you further and then obviously i guess the next phase was saying okay we're gonna reverse into juice which was the largest category but again how do you do that in a way that creates a real point of difference and you know we talked about stealing with pride from a lot so there was a juice brand in the US that was in a carafe and so we did our own version of that put it in a transparent bottle made the juice product and everything else was a wall of tetra and suddenly we come along with a brand that people kind of like and then a very different product proposition the juice inside wasn't that different But the combination of pack, decent quality product, just transformed it.

9:46So again, that was the next phase of growth. And then from there, we could expand out into super smoothies and coconut waters. And, you know, international growth was clearly a really important part of the story as well. So taking something from your home market, being in the UK, to then starting to build a global European business in the case of Innocent. And finding ways to make the French think that Innocent's a French brand. So again, we talked about copy earlier. One of the things I'm proudest about my time in Ireland is that the French think it's a French brand because we gave a bunch of copywriters say, okay, this is the brand I can feel, but you've got to do French jokes.

10:21You've got to do French storytelling. Your advertising, you know, when you started to do out-of-phone posters, has to be about your connection to the local. And I think particularly with food, people are very, it's very rare for food businesses to kind of quickly go country by country because people are very specific about the kind of food they like and what's French or what's English or whatever. And we just found a way to connect with consumers, particularly if you're a purpose-led brand. I think you have to find a way to connect locally with people. Being a purpose-led brand that's sort of very, you know, flat and the same everywhere, people want to feel a kind of personal connection to a kind of purpose, mission-led brand.

10:56So you have to adapt your marketing locally. I think that was a really key part of the success as well. I mean, I was a competitor at the time. So watching all this kind of from the sidelines a little bit, So one interesting thing I noticed is I think a few, maybe about 10 years prior, maybe less than that, Minute Maid had launched in the UK. And Minute Maid had been astonishingly successful, but lasted only about a year, 18 months. And I think that shows the power of the brand, isn't it? Because essentially, you know, fresh juice in a bottle, you know, craft bottle looks pretty similar. But the Innocent brand just carried it in a way that, you know, another brand wouldn't do.

11:28Two things. And probably one that's an untold story of Innocent is the operational kind of excellence in chill that sat behind that. And one of the founders, John Wright, you know, was a bane brain. And he structured the business from day one to be able to cope with the various phases of growth and having the discipline to have good forecasting, to, you know, do all the grind stuff that when you end up becoming the juice category, I think, you know, Minute Maid, one of the reasons it fell over was because they got their forecasting wrong and suddenly had a whole pile of waste. And waste and chilled is an absolute killer.

11:59So you're suddenly like, selling okay, but I'm killing myself on waste. So there's a lot of sexy, fun marketing stuff about Innocent, but there was an underlying core of kind of high performance operational excellence that also, and it was that combination that I think really drove the success and then allowed us to attract great talent into the business as well. It's a good point because you'd mastered chill supply chain and demand by that point. So you knew what you were doing compared to Minimates. I mean, the other interesting thing is I was at Britwick at the time when Coke bought a stake in Innocent, and we all thought it was going to fail because we're like, yeah, Coke doesn't do acquisitions.

12:33They've bought a share, I think about a 30 % share, haven't they, of Innocent, and we all expect it to fail, and it didn't. But I think that Coke took an interesting approach, didn't it, to the investment. So rather than integrate it into the Coke system and leverage the power of that system, which you'd expect them to do, they actually kept Innocent independent, you know, with lots of autonomy. I mean, what role did that play in the success of the next? My personal view is it was everything in the sense that James Quincy, who's now the CEO of Coke, but was at the time running Europe, who did the deal with us, what he was very clear about was we're buying the brand and the capability of chilled.

13:07We don't have that capability. We love the brand, but we also want that to build a chilled platform for Europe. And that's different from the skill set that we've got. And so very clear as they came in with that minority stake, we're going to leave you alone. and he built into that model protections because big systems love to fiddle. He built it into the way that we did the agreement and the phasing of the kind of buyout so that by the time we got to 2012 and Coke owned all of it, we'd already more than doubled and also built relationships and credibility with the system so that they were like, oh, actually those guys know what they're doing and it's working and they're growing really fast.

13:43Let's just leave them to get on with it and that allowed us to invest in the business and built the business in that kind of purpose-led way. We're making decisions that are like investing for five years at a time and making those choices and all the rest of it. And the bottler, obviously this Coke structure is this sort of split structure, the bottler had an amazing experience in Ambient but absolutely no experience in children. And they really are, they're all drinks, but the yin and the yang of those two things is huge. And they were smart enough to see that and then let us get on with it. I think it's one of the best examples of Innovator's Dilemma because one of my favorite books, the idea that, you know, big companies can't innovate because, well, they can innovate with, you know, with incremental innovation, but when they try and disrupt with new categories, it becomes very hard because, you know, they would probably have viewed Innocent as still quite small.

14:29I mean, I worked on what we called the seed brand portfolio at BritVic and people are always going, oh, yeah, John, you're only 3 % of the turnover. You know, why bother? You know, we'll put Pepsi on promotion in Tesco and we'll easily beat your annual sales. but I think the thing I learned is it takes a lot longer than people think to become successful and you know the whole FMCG machine is all around we'll launch in one year you know we'll put everything behind it it'll be an immediate success but overnight successes rarely ever happen and I think people forget the amount of time that actually goes into like Innocent to build it up grassroots before it becomes a sustainable every market we went into or even product that we launched but you know the classic five year overnight success story story You know, no one had heard of it for the first five years and then they got a waitress listing and then, you know, 2005, 2006, it was already six or seven years old.

15:17No one in a big company would have had the patience for six or seven years. But when it's your own space and similarly with products that we launched, we didn't do the big, put loads of marketing on day one behind something that we believed in. it was always launch two or three different things, see which one's selling itself on shelf because ultimately I genuinely believe if it doesn't sell itself on shelf, it's going to die anyway. However much marketing you throw at it, you can't dress up the pig, so to speak. And so then we would back the things that were working on shelf and have confidence that we could then turn the campaign around or dial up the money.

15:52And spending money on things that are already working is just so much more effective. And when you've got very little marketing money, that's just a smart model. and I just think the big companies get themselves in. The money's available and the big machine is chucking the money. So it's tempting to say, yeah, we've got loads of money, so why don't we spend it on day one? And then when it doesn't work, there's the Spanish Inquisition and then everyone gets fearful. So then they take even longer to launch the next thing because there's more and more rounds of marketing testing so someone's covering their backside.

16:19We were much more, get products to market. Each product launch maybe cost us€100 ,000. So if it didn't work, you were writing off€100 ,000, not€10 or€20 million of marketing campaign. And so it never felt, failure never felt too painful. And then you could back the winners as you went. And similarly with countries, you know, start with a small team, get really clear on what you're trying to achieve. And yet none of our markets, even less than five years, to get to a meaningful scale. And it's similar with Tony's. I mean, we're seeing now amazing success in lots of our markets. But I was like, oh, wow, like it's everywhere in the UK or everywhere in the US.

16:54It's like, yeah, we launched in 2017. Like no one remembers the hard yards for the last five or six years. I think the two best bits of advice in any of this conversation is you need to remove the fear of failure. Because as you say, most people are trying to negate failure rather than optimize success. And then big systems are all designed around annual calendars as well. And if it hasn't kind of hit 10 million in year one, people will go, it's not a success. But most successes happen over a long period of time. So getting that long and short right is incredibly important, particularly of innovation, I think.

17:25because it does take time, doesn't it, to get the right distribution, get consumers to adopt it, get awareness built. Definitely, and some of it's about iteration as well. I mean, Super Smoothies was a great example. Smoothies had worked for a long time and then Naked had come into the market. It was like, do we do it? Do we do a copy? And we sort of went into that category and we didn't get it quite right first time. There was enough rate of sale to go, yeah, there's something here. But we did fast iteration of sort of three different steps over about a year and a half, two years. and then all of a sudden it flipped.

17:56And you would never be able to... if you spent all the time researching that up front, you'd have kind of driven yourself in knots. But we just did small iterations and it was year two, year three, and then suddenly it grew incredibly rapidly. Kind of you tapped into that kind of sense of natural energy with the vitamins as well as the nothing but fruit of the core smoothie range and very quickly it became much bigger than our core range. So it's that patience, but also don't be patient being passive. You've got to be patient, but something's got to change. So what is it? How do we quickly get onto that project?

18:31So it's finding that balance of being always hungry. Continuous improvement, right? How do we get better? How do we get better? The great thing about Chill was when it was really a dog, you just had to kill it because the waste got you so quickly. So in a way, sometimes the temptation is, oh it's a million let's leave it around because it's a million of revenue that's helpful like the waste bills and chilled just made me like yeah kill that one let's focus on that one so that it was sort of a self-protection mechanism the other advantage you've got is speed i mean i remember i i did four years in juice at juice burst and uh the thing that really shocked me is i was used to britbit where i think 12 months would be a really quick turnaround so 12 months would be an on-pack promotion you know probably not even a flavor actually in 12 months probably 18 months to a new flavor.

19:15And then when I turned up at Juice Burst, the private equity owner said, you've got 16 weeks to design a new bottle, design new labels, launch new flavors, get retail distribution, because at that point, it was a food service only brand pretty much. And we wanted to get into retail in 16 weeks. And it was crazy. I mean, we did it because we could parallel everything at the same time. Being small, we could make decisions every single day, parallel shelf testing along with label design, along with kind of like launch information to all the customers, that kind of thing. But I think in a smaller business, you can do so many things quicker, can't you, in a way that – and this is probably another thing.

19:50If you're in the Coke system trying to get a new flavor of innocence through it, take it out. Yeah, exactly. But at the same time, sometimes I think that is overplayed because when you're really small, you can go really fast. But even at Innocent and even here at Tony's now, when you're trading off, okay, we're prioritizing the Netherlands packs that they want or the ones from the US. And they're coming off the same production line and sequencing. You know, I don't want to overplay the, oh, yeah, we can get stuff to market in eight weeks because generally we don't. you have to be thoughtful. And as you get bigger, retailers quickly, you quickly move over the, oh, well, they're small and we're trying to help them to the, you're a big guy now.

20:23If you screw it up, you know, there's pain involved. So once that sort of bar with big retailers and, you know, Innocent was a grocery-led brand and Tony's is a grocery-led brand, there's a certain standard where you go, okay, it is worth taking the time. But where I think you can cut a lot of time out is in the sort of constant, as you say, The risk aversion of covering your back with, you know, yes, I'm a big fan of one round of research. And does it back your gut instinct of what you think about this product? But then people then go, oh, well, it's not quite, let's do another round. And suddenly another six months has gone by.

20:56So I think it's mindset more than it is a system thing. Yeah. And also you don't have to like, seeking approval can be a lot quicker, can't it? Because a few people in the decision making process, you're not competing with other. The thing I found that really challenging at Britvik is, I can't remember how many brands, I mean, we might have 20 brands and I had to fight in every kind of monthly meeting for just, you know, a tiny line on a spreadsheet type thing. Which is why I love this scale of business because, you know, again, when I interview people and bring people in business, I say the difference here is you can pull a lever and see the effect.

21:27You can understand how your personal contribution has made a difference to the company's growth. Whereas I think in some of those bigger systems, lots of bright-headed people, they're like, you know, if I was here, would it really make a difference? And I think in this, I love this phase of going, you know, 100 million to 500 million, because there's a lot of kind of big choices and you need a lot of brainpower and you need a lot of capabilities. But at the same time, you can still see how you make a difference. And I think that's really powerful for attracting talent. So talking about the 100 to 500 journey, you're now applying that to a different business here at Tony's.

21:58Tell me when the call came in and why did you say yes? So I spent 16 years at Innocent. I'd done nine and a bit as CEO. And we'd reached that point where it's like, okay, it's about to, there's another three-year cycle coming up. Do I want to stay and do my kind of fourth three-year cycle as CEO? I just, honestly, to some extent, I just didn't have the vision of, okay, the next phase. We'd taken it. We built this amazing manufacturing site. I just felt like I'd taken it as far as I could take it. And there's only so many times you can go around in one category. Obviously, there are connections between Innocent and Tony's in the sense that the founders of Innocent are also invested in Tony's.

22:35So when I was chatting to them and obviously sort of know them very well about, oh, I was thinking about what next, can you introduce me to some people as I start to think about that journey? They said, yeah, sure, and met a few people. Then about a few months later, they came back and said, oh, well, Hank Yan, who is the sort of CEO and sort of major shareholder of Tony's, is thinking of it's the time for him. You know, he's loved that 0 to 100 million phase and is thinking, actually, is he the right guy to go from 100 to 500 rather than step back as a non-exec and so he was going through that journey so they said to me are you interested i said yes but i can't move i was thinking well they're not going to allow me to come and do it from the uk and but covid had happened everyone got used to a world of teams and so now yeah i do a kind of one week on one week off in in in the netherlands and i jumped at it i mean if you're me who loves this phase of business who has very passionate about purpose-led business you know i'm I'm a co-chair of the Better Business Act.

23:35I led Innocent into B Corp. I'm a huge believer in demonstrating that good businesses can be large businesses. There aren't many better brands and opportunities in terms of the potential that Tony's had. So it was like, you know, I couldn't go and join Shell as a sort of next step. So it was like, and actually there aren't many that are of this size and this potential. So I was like, that's mine. I was very clear. As soon as he'd said, I was like, yeah, that's mine. I want that. and then and here we are now anyone in holland will know tony's very well because i mean literally can't go to a store without a wall of in fact the wall behind you is is probably like most albert heinz it's literally i mean the hotel i was staying in last night actually that had a like two walls of tony's that you could kind of you know buy with your card sort of thing but obviously you're starting out a lot of the market but for anyone who doesn't know the origin story there's a fascinating story isn't there about how the brand came to life and it wasn't what you thing he wasn't like i've got a product idea let's let's dream up the best chocolate brand um it was motivated by quite a different motive wasn't it yeah i mean what i say is the the mission came first and the business happened by accident you know we were founded by three journalists who were who had a tv show and they were investigating inequalities in the supply chain and in 2000 there'd been a big industry promise that we were going to solve child labor issues you know there's one and a half million children working in child labor in west africa and it was more back then.

24:59For me, that's totally unacceptable. And for them, it was too. And they said, okay, five years on from the chocolate company saying, oh, we don't need regulation, we'll sort it out ourselves. Let's see how they've done. And they went to West Africa and they realized that they'd done absolutely nothing. And the situation was pretty shocking in terms of the exploitation that was going on in the industry. And they then tried to persuade the big guys to say, well, why don't you do this kind of bar and make it more ethical? and after the phone being put down on them so many times, they were like, how do we ramp this up?

25:32And they got themselves arrested. Yeah, how did the arrest happen? Because they basically found an EU law that said if you're aware of child labour in a product and then you participate in that product, you're committing a crime. So they walked into a police station and said, you need to arrest me. I know that there's child labour. I've been and seen it. I know there's child labour in this chocolate bar. you need to arrest me I'm committing a crime under e law and of course the police and the legal system like really but they kind of kept bumping it up and obviously this was all part of a tv documentary so it was becoming more afraid eventually the courts threw it out so you can't prove that that particular chocolate bar was related to the but they flew over children you know trafficked children from west africa and had them in the court and and then after that part they were realized okay we're not going to persuade them to change we have to lead by example we have to do it ourselves and the sort of third series of this documentary was you know dragon's den how do we make a chocolate bar and you know so many accidents the packaging you see behind me right now was literally the thing that you know who's he's still our you know one of our in-house crew drew on a sort of napkin as a 10 minute brief of for the tv show and then they went to our you know which is a co-packer we now own and said could you make something yeah well the only thing we can make is chunky bars so and that's you know there was no thought in oh let's differentiate with the chunky bars like we need bars in in four days time well this is the mold we've got okay make that and then so all these happy accidents that then turned out to be winning consumer propositions of a chunky bar with bright packaging that completely breaks the codes on shelf so it sells itself and then obviously we've worked hard over time to make sure that that chocolate's absolutely delicious and and in lots of bold flavors so yeah it you know one of those accidents that happened and and you know that's how how it came about isn't it insane because you assume you most companies would employ a very expensive design agency, spend years kind of perfecting it.

27:28Ten minutes to find a design, to put in a show. As you know, when you put something like this together, it's like, we've got an episode that's going out next Tuesday. Can you do this by then? And, you know, Serendipity, they also went, they sort of flew to Ben and Jerry's and said, can you give us some ideas? And the guy who was in front of the camera was a guy called Tone van der Koeken. And they're like, well, I'm going to call it Tone's Chocolate. He was like, well, if you want to be an international global impact brand, it's got to have an international name. So why don't you call it Tony's?

27:57Instead, that was the Ben & Jerry suggestion. And, you know, all these years on, we now work with Ben & Jerry's through our supply chain and they source cocoa from us. So there's just all these really nice kind of moments, but all crashed together as part of a sort of TV production process that then turn out to be these amazing pillars of the brand. I love that. It's so funny, isn't it? Because these acts, when you look back at the success stories and you kind of think, oh, there must be loads of thought that goes into it. And sometimes it is just, you know, force of circumstances or constraints that, you know, the constraints of having to take whatever the co-packer had available at the time.

28:30Absolutely. You know, I mean, the product itself is, I think, one of the most essential ingredients, to excuse the pun, but, you know, it is essential. So what goes into making the chocolate so good? Because I confess as a regular consumer here, and I've tried many alternatives, it is genuinely one of the best bars of chocolate you can find. So I think a combination of making sure that you use high quality ingredients and you're not cutting corners. And obviously as bigger companies get more cost focused, it's easy to say, oh, well, we'll have a little bit of the less of the more expensive milk powder.

29:00So just maintaining quality standards around how you get that richness of flavor. And then I think the bravery that we've had around flavor combinations. And yes, everybody's done a sea salt caramel, but we kind of did a sea salt caramel quite early. And the chunkiness of the bits is something that people in our products is something that people really appreciate. So it's that combination of good quality chocolate with kind of interesting inclusions and bits has just resonated with people and it works. And I'm totally with you. We can all get very excited about the brand and the positioning and the stunts we've done and the fact that we're an impact brand.

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29:37Without a great product, then you go nowhere. And the impact side is incredibly important to us and we say we're an impact company that sells chocolate, not a chocolate company that does impact because we put that impact to the heart of it. And the whole point of this is to change the whole industry. When I was at Innocent, it was about proving you could be a good company at scale. The difference here at Tony's is that founding mission that then the guy started off with was we have to change the whole industry. There's no point in us being tiny and doing it the right way unless the mission is to change the industry, we do not eradicate child labor.

30:20And so for me, I'm CEO of a change mission, not of a brand. And that's really interesting because it just gets you into all these different ways that you structure and grow the business. And what growth is important? Is it the growth of the revenue of Tony's Chocoloni, the chocolate brand, or is it the number of beans we're sourcing from West Africa by also opening that up through our Tony's Open Chain model to other brands as well, which was again a key moment and a key decision for us was saying if we really mean this impact thing we're not going to grow fast enough on our own to prove that this model works at scale let's open it up to anybody including our competitors who wants to source beans in the way that we do and we had all the ngos saying ngos saying this is working so now lots of private label players waitrose in the uk you'll find a tony's open chain stamp on waitrose private label Albert Heine have just now committed all of their chocolate sourcing for all their products, not just bars, to Tony's Open Chain.

31:18Ben & Jerry's came on board as a partner a couple of years ago for all their chocolate and their ice creams. Feastables, Mr. Beast Feastables, very rapidly growing chocolate brand in the US, again, have come on board. So our impact business, our B2B cocoa business is actually growing faster than Tony's Chocolate Only, the chocolate business, and that's growing at 33 % year on year. So does that give you some dilemmas, though? Because if you've got to think, because in that case, you're thinking about the impacts on the entire category, not just yours. But does that give you any trade-off dilemmas in terms of you're going to push Tony's versus?

31:52Definitely. It's the, with the brand Tony, you know, we're famous for being quite bold, quite edgy, saying, you know, we've got to raise awareness of the issue. And how do you do joy whilst explaining there are one and a half million children talking child labour? You know, lots of people do alpine looks and cows and isn't it beautiful? we're quite raw with the way that we talk about the issues in the category and also support the product. That's great but actually then the trade-off is do I get edgier and edgier but if I'm trying to persuade people also to come with me on the journey of change, when do they start saying we're never going to work with those guys because they're just too edgy or they're too this or they're too that.

32:36Which we'll come on to talk about But, you know, the brand and the marketing side, sometimes we have to make those trade-offs. And so, yeah, actually, it's better to give our open chain stamp and our USP of sourcing to competitors. Because what matters is our five sourcing principles on the ground, have volume, grow fast. And we get to 5 % of the beans in West Africa. Yeah, wow. I want to touch on pricing briefly as well, because that's another challenge you've got, I suppose. because let me ask you, what's the premium you have to pay to maintain your kind of slavery-free price? So on the cocoa element, and obviously there's a kind of interplay with the world market price, but we commit to paying the living income reference price, which is set independently each year.

33:21And typically over the last five years, that's between 60 % and 80 % premium on cocoa. And so, yes, on the cocoa element of the product, it's a 60 % to 80 % premium, which then translates into about a 25%, 30 % premium on shelf, depending on the market, depending on the exact product that you're benchmarking against. So it's a material increase. In the UK, we're probably a pound more expensive than the equivalent bar size for Cadbury, but it's also one that increasingly consumers, both because of the quality of the product and then increasing loyalty through the mission, are prepared to pay. And I think once you know that 1.5 million children are working in child labour, It's quite hard to unknow that as well in terms of a behavioral drive and change.

34:05Well, one of the things that's the juxtapositions you've got, which I find fascinating, is you're dealing with a very, very serious topic. And most brands, the packaging and what they do would also become very, very serious. And yet you've got this wonderfully fun, tongue-in-cheek sense of humor, bright packaging, quite fun and engaging. How do you balance those two things, kind of being serious about what you're trying to do, but also create a brand people want? I mean, again, it was similar. You can't be, if your hair shirt about everything is like, oh, that's really bad and terrible, and you've got to bring joy, and makes you smile is one of our values, and exactly that.

34:44It's like, how do we bring consumers? We know that consumers won't, their innate initial driver will not be, oh, is this an impact brand that's changing things on the ground in West Africa? They'll be like, does that look cool? Does it taste good? if it tastes good oh the discovery the loyalty part is from the discovery of oh and they've got an amazing mission and i'm going to tell my friend about that and you know the penetration comes from storytelling so it's just as you say it's finding the balance between how do we cut through on the mission and you know that opens doors for us it opens partnerships for us it get you know it gets a lot of you know earned media for not a lot not a lot of investment and our marketing budgets are absolutely tiny because we're paying the farmers the right price and so yeah to grow the business to 200 million that we are now with kind of three percent marketing if you if your hair shirt you're never gonna do it you have to be bold you have to be loud you have to have a sense of fun because you want you want people to like you you want people to be yeah that's the club you want it to be the cool club you want the thing that people are in not the oh god okay let's all go and feel guilty about what we're doing that's that's the what the balance we're trying to strike it's kind of like oh i spent my advertising budget on paying farmers a fair wage kind of thing isn't it one of the things that i really admire about you is your transparency and your your willingness to admit even when you don't even live up to your own standards right so i noticed with the slave three is sort of the slope of my teeth back in but you know when you talk about being slave free you've changed that even that phrase haven't you recently yeah so one one of the key things is if you're going to tackle child labor, it's not something that you can say, oh, well, we've tackled it and it goes away.

36:20And what we've always tried to say is we're going to put a system, our five sourcing principles, that drives change over time. So in our marketing and our AFR and our reports, what we report every single year is the number of child labor cases that we find because we go out and look for them because we're educating farmers about how many. So now today we've shown that you can take, on a typical farm in West Africa, 50 % of the children you will find working in child labour. So doing illegal jobs under sort of Ghanaian or Ivory Coast law, when you audit our farms, it's less than 4%. But it's still 4%.

36:57And we're very happy to report about that and talk about it and say, yeah, we've still got work to do. So, you know, again, in some of the early days when we were like, yeah, we're slave free, people were like, oh, is that a misrepresentation? And to some extent, it was. we've moved to a kind of wider promise of exploitation because what we've realized is if we want to tackle child labor what you what you have to do is tackle a number of things it starts with poverty and paying living income so you know we pay living income price to every farmer as we talked about it's also tackling deforestation which is you know a huge problem in west africa and it's it's facing in and tackling and going to look for child labor because that's how you then educate the farmers to say if we're committing and paying your living income the the quid pro quo of that is that then we find ways to get your children into school and so being you know transparency is my friend because i i can report on those things and sometimes journalists pick them up and we had a story in the headline oh child labor and tony supply chain their source was our report so i'm like that's not really not really journalism that's clickbait at the same time you know a gift i would wish on bigger companies actually is the ability to say okay we're going to share everything that's under the rocks here and our commitment is now that we get better from here so at tony's what we're committed to is just continuous improvement raising the bar but also being very transparent about where we are what's working you know we didn't just magic the five sourcing principles loads of stuff we tried in the first place didn't work and we've talked about that consistently through our reports where we've got to now is a model that is really working backed up you know with ngos coming to order to us pwc coming to order us and say yeah here are the facts on the table this is the results that we're seeing you know all our cocoa comes from non-deforested areas our child labor rates are way way way lower than anybody else in industry and we're committing to a living income price that's powerful change that is why so many people are coming into tony's open chain as well because they see the results and being an impact company rather than saying we've got a purpose or we've got a mission that's the difference the mission the impact is the results you get not the statement you've got on the wall about what you'd like to do so when we talk about being an impact company is because it's about demonstrating the impact we're having against an ambition to end you know child labor but that's the statement that's the mission the impact is what you actually do and the actual results you have and that's really important distinction i think in terms of your purpose has had a bad rap to some extent because i think people have put a nice phrase on the wall but they're not actually done a lot about it is not a stick of rock that runs through them and they're not actually driving for wider results across their business or or a wider result like we are across the whole industry yeah well this is where i think purpose gets a bad name isn't it because people like to do it as a nice statement of corporate responsibility but actually what you've done is gone to extraordinary lengths to actually demonstrate that your promise actually is is happening and you also admit when it's wrong which i think it's a really good kind of proof point that you care about it and you actually wanting to make a difference.

39:56Yeah, and similarly when I was at Innocent, when you're called Innocent, for the first 10 years everyone's with you and then everyone wants to knock you off the pedestal and write the guilty headline. So you have to be on your game every day and I think that's where transparency is just, I love it because it's like, well, we can admit when we screw up and actually people give you credit for that. And I think that's, again, really powerful because this is about trust. This is about building what I call leaf drops of trust with consumers over time and even if you're not perfect but you're open and transparent and authentic about that people yeah i trust that business sort of creates believability doesn't it because you go well if they're willing to admit that small percent the four percent of what you said exists then a that must be true because they've gone and done the research to you know to find out and b if they're willing to talk about when they get it wrong they must really care about getting it right yeah exactly and and we know that the industry the change model has to happen over a period of time and what we're trying to role model is, yeah, we're not expecting a magic switch to click and it's all solved.

40:57It's like, put the work in. We're showing a model that if you put the work in over five or 10 years, we can change this whole industry to a place where millions of farmers in West Africa are not exploited. And I genuinely believe a tipping point is coming. EU regulations are also playing a role, deforestation regulations, where traceability is becoming more and more needed. The thing that they've said, oh, it's impossible to do traceability, suddenly there's an EU law and traceability is coming along, at that point it's just an economic choice. Once you know who your farmer is, it's just an economic choice of are you going to pay them a living income or not.

41:30And so that's why I genuinely believe we're raising the ceiling, legislators are raising the floor, and that combination I think is going to drive change over the next five to ten years. My job is to accelerate when that tipping point happens and just keep banging the drum, raising awareness, inspiring others to act. That's the essence of the brand. Let's talk about international expansion because I mean, I was fortunate enough, I was actually commuting to, well, working in Holland maybe 10, 15 years ago. So I sort of discovered the brand by virtue of that really. But are you number one in Holland?

42:04By the way, what certainly feels like? Yeah, so we're basically between us and Milka, we're the top two and we kind of Josh for that top position. So we have about 17 % market share in bars in the Netherlands, which is kind of, you know, if we replicated that everywhere around the world, we'd be a billion billion dollar company so yeah so you know netherlands is our heartland and continues to grow but clearly the growth that we've seen in the uk and now particularly in the us where the brand is really taking off it's just meaning that the business is growing incredibly fast in multiple markets and and again it's that it's resonating in multiple contexts you know we've got a business in australia through a distributor none of us have ever been there we've never spent a penny on marketing there and we've got national listings in Coles and Woolworths.

42:51So it tells you that the innate cut through of the product on shelf and then the quality of it to get that repeat purchase that you need to stay on shelf is there on itself. And then it's how do you layer on the marketing positioning and to drive that forward? Well, I'm familiar with this challenge having done international roles before because, you know, taking a brand that's really strong in one market and then starting from scratch in another market, It's really hard to do. What's the secret to getting international expansion and having the patience to do the right thing rather than expect to turn up?

43:19I think, yeah, I think both here and at Innocent, you've got to find the right talent. And you've got to find the talent that believes in your mission, believes in the product, but then understands the market. And you have to respect that they understand the market because if you take so many markets, actually the consumer is not that different, but the trade structure, how you go to market, where you give margin away to the retailer, how the logistics have to work it's so different so you so i think where people made a mistake and we certainly did in the early days of innocence like let's no we've got a successful model we must copy it i don't take it to that market and you realize that was rather stupid and arrogant let's let's adapt ourselves to the market circumstance so you need local talent and you need them to fall in love with the brand and then trust their expertise to then you bring the brand to life but also then execute it commercially because the commercial execution gets talked about a lot less but it's it's the hard yards of how you build a business and winning grocery stocking points day in day out building those you know category stories so you can demonstrate that your rate of sale relative to others is how you go from a few whole foods to all whole foods to then into target and now into walmart as we are and we've just got a kind of in and out listing with starbucks as well across you know an unbelievable number of starbucks in the u.s so So, but that's all locally led by local talent and attracting that talent is the key.

44:40I can imagine when Walmart came knocking, you had a bit of a dilemma because like, in most cases, what we were saying earlier, when we take five or seven years to really establish a brand to be sustainable and you've got the biggest retail in the US saying we want to launch you. What kind of dilemmas did that pose for you? Yeah, I mean, they came to us. Clearly they were on our plan, but about two years later, we're like, okay, we're not quite, let's prove it a bit more in kind of you know other retailers and grocers they came to us and said we really believe it we've seen what you're doing in europe we want to back it and back it early and we believe we can so it was is it going to work and can we execute it you know those those two challenges were were huge kind of considerations and it was a real month of we're going to do this are we ready we just set up manufacturing in the u.s and so again but that's where i think a scale up then kicks in because that the entrepreneurial spirit of okay come on let's take the risk let's go for it and then everybody marshalling to make that happen make sure we didn't screw it up and thank goodness we didn't screw it up and the products really working and selling well on in Walmart but it was definitely a big just I was only a year in and it's a big gulp moment of okay we're going to do this but it's if you do Walmart and screw it up and you basically take the potential off the table for future years that's not a good look so it was yeah definitely a moment to think about but um we took the risk and we you know in the end this is a risk reward game and we you know believing in your team to be able to execute now now my american listeners will probably shout at me at this point but but i may be playing to a stereotype but chocolate is not the same and in fact what i often find is whenever i'm uh struggling for chocolate fix america i will find a whole foods just to buy a bar of tony's and be paying something like ten dollars or twelve dollars for it so anyway i'm part of your uh your revenue out there so you can thank me later.

46:26But anyway, but how you approach the American market is very different, isn't it, in terms of like chocolate tastes and the taste profile is not the same as it is. Because in the UK, I kind of go with UK and Dutch markets are very similar. We've got similar brands and, you know, similar kind of chocolate culture for gifting and all those kind of things. But America is quite different. So how are you going to position it for the American audience? So we're already over$50 million of sales in the US, which tells you it's working. And I think, to be fair to some others like Lindt, they have come before and they have educated, probably East, West Coast palates to European chocolate.

47:01So I think there's more European flavors coming through. But yeah, Hershey is made with soured milk. That was the traditional way you did it in the US. So if you're a European, you taste it and you're like, what is this? But obviously if you're homegrown, that, but, you know, and the market's so enormous that, you know, the scale of people that like our flavor is clearly big enough that you can build a huge brand. And I think flavor profiles are shifting in the US, which plays to our advantage. And then we come in, we're just such a different look and feel and perspective and all the rest of it.

47:32I think that's why we cut through so quickly in so many markets. And I don't think the US is any different. Yeah. Now, one of the conversations I'm often having with CMOs is how do you get a seat on the boardroom table? How do we get more CMOs to be kind of CEOs? Now, you had a brief stint, didn't you, as marketing director of lessons, which I love. What did you learn in that role and what prepared you for the CEO? So I was CMO for a year as a rite of passage to the CEO job. And I learned a lot more than I thought because it was the year of the transaction. We didn't have a lot of money to spend, but we had Olympic.

48:06It was an Olympic year, so I got to have great fun on the Olympic Park. But at the same time, what I did was really understand the role that creativity and marketeers play in an organization and that it's not as simple as, oh well you know just show me the ROI and genuine creativity is incredibly hard and so when I became CEO I was I think I was enabled you to be a lot more respectful of the art of creativity the art of understanding consumer and therefore not with my sort of more financey house I was show me the ROI show I became much more of a long and the short of it fan and and use the year to read that document and really digest what it meant that says you've got to believe in marketing, you've got to believe in the investment pays back over the long term.

48:52And particularly when you've got relatively small budgets trying to find, did that thing work? And particularly in FMCG, where it's disconnected, it's not a direct sale online. I think you've got to set a framework of how you judge creative work, but not be too obsessed about the spreadsheet that shows that It worked or it didn't work. And looking at the kind of CEO, because you're now in your second very major scale up as a CEO, what qualities make for a successful CEO of a scale up brand? I think like all the talent is finding the right blend between experience and as I said earlier on, the willingness to do the work.

49:30Because you come into a business like Tony's, yes, we're 200 million, but we've got just 200, 250 people. So if you're coming in thinking, oh, I'm used to limo land and you're going to be whisked around agencies. no you're you know you're writing a brief on how do we get some decent tracking and and and doing some of those things and finding someone that's got you know our case with Tony's and with Sadira who's come into the chief brand role not just a kind of European lens I was looking for somebody with you know global experience real good understanding of the US the US is becoming the largest part of our business very quickly and so really as you say how do you understand I'm the US consumer, not with just a European lens.

50:08How do you have someone that has got experience of FMCG? Because, again, when we first went out with a brief, I had loads of unbelievable high quality, but they were what I would call creative creatives and had not been in close to, this is how a product gets to shelf in a supermarket. I think in FMCG, you just need to understand the discipline. You're not just up in the clouds coming up with great advertising ideas. You've got to have the rhythm and discipline to execute through the supply chain and make sure you don't disappoint customers as well as the creativity to understand the consumer and put great propositions on top of that.

50:43So that blend of sort of more than European experience and FMCG and passion and capability, someone that was in love with the proposition. If you come to a company like this, my difficulty is not attracting talent, it's picking the ones that really mean it when they say they want to work for an impact company, understand that, and are prepared to do the work. And those are the ones I'm always looking for, and it's hard to filter when you've got 1 ,000 applicants for every job that you do. Yeah, what a problem to have. Yeah, it's great, but picking the right balance is really important. But we need experience.

51:19As you grow, you can't just go, well, none of us have ever done this before. So there's amazing, great people in these big organizations picking the right ones that can gear change to, you know, we're going faster and you're doing the work is the skill, I think, of bringing talent into a business like Tony's. Maybe round us off then. Let's talk culture. So how do you, because culture can be easier when you're small because it's kind of the founders, the people that are high, they're very close, aren't you? But as you scale, you see you've got 200, 250 people now, culture then becomes more important, doesn't it?

51:54Because you can't be over everything. You've got to delegate responsibilities. You've got to work together. Things become more complex, different markets, different departments now. How do you create a kind of right culture for the business? I think you rapidly remember that the board is not the department of fun. My job and the job of the senior team is to create the conditions for people just to come up with great ideas. And when you walk around this building in the same instance, why that stuff is happening is because they feel like they have permission to try things. And they're all passionate about our mission, but they also are passionate about make you smile, one of our values.

52:29and they feel like they have permission and resources to try some stuff around the office or giving them a bit of money to have a club, a sailing club or a tennis club, where then what you get is lots of different people from different departments who wouldn't maybe necessarily meet each other, spending time together. I pay half, they pay half, and all of a sudden you're creating these informal collaboration moments where people are getting to know each other across the business, which then yields trust and yields benefit. And so it's creating the conditions with actually what is usually small amounts of cash, but being really thoughtful about how you then say to them, you guys work out what fun looks like or what culture looks like.

53:11But from the top also then really living to a high standard, the values. So values are incredibly important and making sure that the behaviors that really deviate from those are not tolerated. You don't ever not show those. and also when you're seeing them, you don't tolerate them and you're quite tough on that. And so the kind of makes you smile edge also has a bit of a, if you're off from the values of this business, however good you are, you're not going to last long. And if you get the culture really right, I don't have to deal with those issues. People are self-regulating people out. You know, it's happening within teams and that's what we had at Innocent and that's definitely what I see we have here as well.

53:50Yeah, good challenge brands always seem to have like really clearly defined values that kind of live and breathe. What examples are some of the values that Tony's has and how do they come to life? Yeah, so we've talked about makes you smile a bit and how that comes to life. We also have a value that is outspoken. And, you know, again, in the brand about raising awareness of those issues, you also have to make sure that that outspoken value doesn't get misused because people just say what they like. So it's outspoken in pursuit of the mission, not outspoken just for the sake of it. And so, again, putting tension into values is really important.

54:24So with entrepreneurial, yes, you want to drive entrepreneurial spirit, but there's got to be a commercial edge to it. You've got to not just do a thousand things, you've got to do the two or three things that really also deliver commercial value. And so I think what I find with values is really defining the behaviors and the regulators that sit below values is also important because otherwise people see the headline word and they interpret what they want from that, and sometimes that can be dangerous. So what we do, and again we worked hard at Innocent, to say, here's the value, here's the behaviors that kind of match against that, which is, yeah, be bold with how you say things, but also be respectful in terms of the context that you're doing it and all the rest of it.

55:04So getting those things right is never about the headline word in itself. It's about, okay, but what behaviors are you expecting from that and coaching and teaching those through the business? Yeah, I mean, being outspoken, being entrepreneurial, probably ones I would have expected. It makes you smile, I had to expect it actually. But how we feel about where we work is really important, isn't it? And if work can make you happy and make others happy, that leads to good outcomes. I think brands like this work because people want to be here. You know, we're making them work incredibly hard. They've all come from kind of big jobs elsewhere or whatever it may be.

55:39If they're not feeling the great advantage I think we had at Innocent and here is that people can bring themselves to work. There's no bullshit. There's no politics. there's a sense of we're in this together and I can I can be a human being in this company and do great work and make a great contribution to kind of a wider mission that we're all on and that's where the power is and I I always talk about as do I feel like I bring myself to work I'm not trying to pretend to be something else to fit in that's what I that for me that's the definition of kind of successful culture is when the vast majority of people saying yeah I really feel I can bring myself to work which then also brings in you know diversity and inclusion as well because it's not about a certain type of person feeling like they can you know bring themselves to work it's you know all your employee base feels like that and that's that's something that we work hard on.

56:27Douglas thank you very much it's been great it's a real delight for me to talk about Tony's having been a fan of the brand and and to hear you tell the story about you know where the journey you've been on and where it's going next and good luck I hope to see lots more everywhere I travel and lots more on shelf. So well done and keep up the good work. Me too. Thank you. Thank you. Thank you very much for listening or watching Uncensored CMO. I hope you enjoyed that. If you did, please do hit the subscribe button wherever you get your podcasts. If you're watching, hit subscribe there as well. I'd also love to get a review.

57:01Reviews make a big difference on other people discovering the show. So please do leave a review wherever you get your podcasts. If you want to contact me, you can do. I'm over on x at Uncensored CMO. or on LinkedIn, where I'm under my own name, John Evans. Thanks for listening and watching. I'll see you next time.

From the publisher

In the first of a two part special on one of my favourite challenger brands of all time, Tony’s Chocolonely, I speak with their Chief Chocolonely (CEO), Douglas Lamont. Douglas is an expert in Challenger Brands, having previously led Innocent Smoothie for 15 years, guiding them through their acquisition by Coca-Cola and subsequent scaling. In this episode, we'll explore the delicate balance between maintaining a strong mission and driving business growth. Douglas also shares insights into Tony's dedicated efforts to eradicate child labor, pay fair wages, and maintain transparency in their cocoa sourcing, all while making their chocolate appealing and fun for consumers.

Tune in next week for an interview with Tony's Dean of Dopeness, Sadira E. Furlow (aka their Chief Brand Officer), to find out exactly what it takes to grow a brand like Tony's.

Timestamps

00:00 - Start
01:38 - Douglas’ journey to CEO at Innocent Smoothies
06:36 - Lessons on how to scale up at Innocent
12:47 - Why Coke kept Innocent independent
15:03 - Innocent’s approach to launching new products
21:52 - Why Douglas moved to Tony’s Chocolonely
24:22 - Tony’s Chocolonely origin story
28:29 - Why is Tony’s chocolate so good
29:42 - The B2B side of Tony’s Chocolonely
32:56 - Is it more expensive to be a change brand?
34:03 - Balancing a serious mission with a fun brand
35:53 - Why Tony’s is so transparent
41:48 - Tony’s international expansion
44:38 - Challenges of being in the biggest retailer in the US
47:35 - Lessons as a CMO
51:33 - Creating the culture at Tony’s

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How to scale a challenger brand with Tony’s Chief Chocolonely Douglas Lamont (ex Innocent MD)Uncensored CMO · 57 min
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