Category: Whole Foods Broker

Business, Real Food, Whole Foods Broker

Episode 163 – Why Amazon-Whole Foods is unlikely to work (for Whole Foods)

Written by Matt Aaron | November 20th, 2017

Listen Here to Jeremy Smith of Launchpad

There is no denying the inventory and logistical benefits of Whole Foods being purchased by Amazon. Any spreadsheet or report can prove that.

But what is often overlooked in the history of (failed) acquisitions is culture.

Jeremy Smith believes there is a high probability that Whole Foods will fail post-Amazon purchase because of it.

John Mackey, CEO of Whole Foods, has already acknowledged the cultural challenges.

We talk about Online vs Retail, the culture clash, what the future holds, and what food startups can do to best compete moving forward.

Thought-provoking insights from Jeremy, who is on the podcast for the third time.

Business, Lifestyle, Real Food, Whole Foods Broker

Amazon Rescues Whole Foods From Itself

Amazon Rescues Whole Foods From Itself

Checkout the video segment on money.cnn.com here.

Linkedin Article here.

Jeremy Smith  |  LaunchPad

 

While investors, stock analysts, and food industry gurus pontificate on Amazon’s acquisition of Whole Foods, there are some lessons here for food retailers and food brands. There are steep challenges ahead as the food industry moves through the early stages of the most transformational changes in our industry. Whether you are a retailer like Kroger, or a large CPG food brand, without radical changes to your business culture, you are going the way of the dinosaurs.

As the food industry evolves, consumers will continue to dramatically reduce the power traditional CPG food brands have had on America’s grocery shelves. I am not saying these brands will all go away overnight, but they have already lost a great deal of their influence and prestige. Millennial consumers are quickly shifting away from the brands they grew up with: Quaker Oats, Coke, and Kellogg’s Rice Krispies. As the children of yesterday become the adults of today, they are moving to brands like Urban Remedy, Spindrift, and Bob’s Red Mill. This is the beginning of the dominance of the emerging food brands that will drive America’s grocery shelves and ecommerce platform. As I stated during my podcast interview with Matt Aaron of Food Podcast Startups,

Whole Foods grocery shelves are stocked with the best of the best in emerging food brands. which provides them with an advantage over some traditional retailers. Their challenges, and why they needed Amazon to bail them out fall squarely at the feet of their executive management team.

Of all of the mistakes the Whole Food management team has made, the biggest blunder, in my mind, is ignoring Costco’s announcement it was moving into the organic space on a larger scale. Costco’s strategy of going after the most strategic brands carried at Whole Foods caught the Whole Foods management team completely off guard. By the time Whole Foods management realized what was happening, it was too late. In less than two years, Costco is now the number one seller of Organic Foods. Costco isn’t done, I have no doubt that Costco will continue to find success because their management team is much more proactive, and in tune with, the changes going on today, than any other retailer.

Jeff Bezos understands that for Amazon to have a shot at the big grocery pie, emerging food brands are one of the keys to his success. In that area, Whole Foods will play an important part in Amazon’s long-term strategy. Amazon will seize on this opportunity and take Whole Foods to the next level. It’s only a matter of time before Amazon enters the funding space, and creates an Amazon Food VC Fund that will provide early stage funding and beyond, to these young food brands.

The executive management team at Whole Foods behaved more like the Captain of the Titanic than the stewards of a great organization. Whether it’s Costco, or other issues, like kicking Chobani out of their stores, the management team at Whole Foods is responsible for their failures. Amazon at least will shake up Whole Foods and make sure no one is ever asleep at the wheel again.

When we look back at this historic acquisition, this transaction may very well represent the turning point, and single most important strategic acquisition, in the Food Industry of all time. At the very least, it’s a warning to every grocer and food brand that they better get things together now, or face the potential extinction of their business.

Club Stores, Costco Broker, New Brands, Whole Foods Broker

Episode 147 – More on Brokers, Costco, and the Evolving Food Space – Jeremy Smith of LaunchPad

More on Brokers, Costco, and the Evolving Food Space.

Listen Here for the full Podcast.

Jeremy Smith is back. If you haven’t heard the first interview, listen here.

There is trouble brewing in the food broker space. Whole Foods sales are down. The market has changed dramatically.

Based on listener response to the first episode and Jeremy’s intuition, we continued the conversation on Costco, brokers, and how to adapt to the evolving food space:

  • Costco pitches: phone vs in-person. Can you do it on the phone?
  • Question: “Does a founder have to live the messaging of the brand before he/she communicates it to the consumer?”
  • Hershey’s and Nestle are not driving the categories anymore ..
  • Thoughts on Whole Foods “decline” ..
  • The types of brands that Jeremy follows
  • Why the food brokerage business is broken. The challenge, how is it impacting companies?
  • Your broker is not doing a good job it could be you.
  • Can you be a food broker?
  • Should you sell directly to Costco or use a broker.
  • Why do some buyers say you should work directly with them and not use brokers?
  • What are Costco Buyers like?
  • Why brands fail at Costco?
  • “Flavor Fatigue”
  • Channel protectors should not sell to Costco.
  • Is there a right time for a brand to go to Costco?
  • Raising money: How Circle Up has evolved
Business, Club Stores, Costco Broker, New Brands, Whole Foods Broker

LaunchPad Lifts Off to Help Emerging Food Brands Win at Retail

LaunchPad Lifts Off to Help Emerging Food Brands Win at Retail
SAN RAMON, Calif., January 19, 2017 

Brand strategy and representation firm set to fuel sales and distribution for tomorrow’s leading food and beverage brands. Just in time for the 2017 Winter Fancy Food Show, brand consulting firm and Costco Broker LaunchPad is opening its doors to food and beverage companies looking to build their brands, grow sales nationwide, and grab the attention of consumers and retailers.

LaunchPad is a new full-service business representation agency focused on market entry and long-term success for emerging food brands. Specializing in delivering strong sales performance at Club Retailers, LaunchPad offers brand strategy, package design and logistics expertise for tomorrow’s leading food brands.

LaunchPad founder and chief executive officer Jeremy Smith brings strong industry experience to his latest venture. As co-founder and chief operating officer at Level One Marketing, Smith nurtured sales and distribution growth for established brands like Bob’s Red Mill and early-stage challengers like Chobani Greek Yogurt, EVOL Foods, Promax Protein Bars and Hope Hummus. He is also currently an advisor to the investment firm VO2 Partners, which specializes in companies in the active & healthy living sector.

LaunchPad has partnered with MarketBrand, an award-winning Creative Strategy and Design firm led, for package design consulting. MarketBrand principals Eric and Deb Read’s decades of food industry experience include developing market entry strategies and impactful packaging for upstart brands like Red’s Burritos, Pure Foods, Promax, Padma’s Easy Exotic, Azuma Foods, Snack to Basics and organicgirl.

“There can’t be progress without questioning the ways things are done, which is why LaunchPad will be like nothing else in the food industry – an anti-agency, a rebel with a cause,” said Smith. ”Our deep business strategy mindset, vision and passion make us the perfect partner for entrepreneurs who approach business with the disruptive mindset of a technology startup.”

Smith continued: “The rise of shrewd retail buyers and savvy consumers means that the old rules of brand building no longer apply. Sadly, the traditional brokerage networks have not grown with changes in the industry and still offer the same old plug-and-play solutions. Their clients are missing out on a big opportunity.

“New businesses that can engineer the right combination of product and execution will have as much clout with retailers as the big CPG brands. The future of the food industry belongs to the dreamers, doers, troublemakers, disruptors and mavericks who are willing to break industry norms to make things happen. LaunchPad will help them think differently, win at retail, and attain sustainable success.”

LaunchPad is available to meet at the upcoming 2017 Winter Fancy Food Show in San Francisco, January 22-25. Please call (925) 329-6425 x100 or email mailto:jeremy@launchpadgroupusa.com for an appointment or more information.

About Launchpad

LaunchPad is the food and beverage industry’s only full service business strategy representation and branding agency focused on market entry and long-term success for emerging food brands. We are experts on the retail environment, packaging, manufacturing and distribution, with a highly specialized focus on the Club Market. We collaborate with dreamers, troublemakers, disruptors and mavericks to break the rules and accomplish the impossible. We promise to guide you, inspire you and never BS you.

LaunchPad® and the LaunchPad logo® are among the trademarks of LaunchPad Group USA LLC. Other trademarks belong to their respective owners. LaunchPad reserves the right to alter product and services offerings, and specifications and pricing at any time without notice, and is not responsible for errors that may appear in this document. ©2017 LaunchPad Group USA LLC. All rights reserved.

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