Friday 31 October 2014

5 Steps To Starting A New Specialty Food Brand

As a bulk oil ingredient supplier, we have an unique vantage point: we get watch food companies 5 Steps to Starting a New Specialty Food Manufacturing Companygrow from their inception into a strong brand name and then, (for the lucky few) become nationally renowned. This is one of the perks of our job: the joy in watching something real and strong grow from just a little seed.
We often work with these manufacturing companies from their start-- as they’re writing their business plan, to comparing how to bring their new ingredients in. And then later, we get to see their finished products flourish. We have the privilege to help them transition from small to large, and watch them grow. Many manufacturers we’ve worked with go on to sell to Whole Foods, UNFI, and other natural grocery chains.
But, most food manufacturers start their journey along the same path. To be able to build a solid foundation, we’ve noticed that they all need to need to learn the same things about the industry and make some key decisions about their new business. These decisions will allow them to really get their feet underneath them and begin growing their brand.
So as a way of paying it forward, here’s what you should keep in mind as you’re starting your new food brand. We hope others’ experiences can help you flourish!

Friday 24 October 2014

How and why I started my food sector business


Bristol-based Kabuto Foods aims to take instant noodles to a whole new level. But what makes its products and brand different, and what inspired Crispin Busk (pictured right) to launch the business?
Crispin Busk launched Kabuto Noodles in January 2011, following a five-year stint as sales director for Pieminister, without doubt one of Bristol’s biggest food success stories.

“I had experience of selling into the retail and grocery trade,” he explains. “Pieminister was a very entrepreneurial environment and I’m delighted to have been part of that. Kabuto is in that same tradition. We’re very good at what we do and very focused on developing a unique, ‘big’ small brand.”Instant noodle brands generally compete on price and the market seems full of similar products, but Busk says Kabuto aims to bring something different. Busk’s products have no additives or preservatives, and there’s a mouthwatering selection of authentic Asian flavours to choose from.“Pieminister did a lot of things right. It took a standard product and made it better. I decided to take the same approach, but I had to decide on the right product.”
Market intelligence
Busk knew that supermarkets showcase products in a certain way – premium items at eye-level on the top shelf, ‘mid-range’, then own-brand or ‘value’ products at the bottom. The knowledge helped him make his choices.“Around this time, I went to eat at [popular Japanese food and noodle restaurant chain] Wagamama,” he recalls. “People were eating mainstream Asian food, mainly based on healthy noodles. Afterwards, I walked over the road to a supermarket and noticed all the instant noodles were low cost, pretty unhealthy and with flavours such as donner kebab. It felt like there was a ‘disconnect’ between the lovely food at Wagamama and the instant noodles on sale in the supermarket. That moment I knew I’d found my niche.” Busk’s research revealed that almost 100 billion instant noodle units are sold each year worldwide, with the UK consuming 230m, which equals about 4-5 units per head of the population. Many of us go through an ‘instant-noodle phase’, often when we’re students, but Busk’s mission is to catch people who are considering giving up on noodles and give them another reason to carry on eating them.
“Noodles are quick and easy. They appeal to a very wide range of people. We’re combining a quality product with a strong brand, and our growth shows we have tapped into a real market. My aspiration is that Kabuto will be the next big thing throughout the UK and then to take it overseas.”

Food for thought
New and smaller brands can be put off from trying to compete against the big established brands, especially when it comes to getting supermarket space. Buyers don’t make it easy — but Busk persevered. “To get a meeting you have to have done the homework: prices, packaging, does it look and taste good? Everything has to add up to a compelling story. It helps to have a product you believe in. There is no formula for success in grocery retailing. However, the big brands simply can’t have the heart and character that smaller brands like Kabuto does,” he concludes.


 

Wednesday 8 October 2014

New Food Business Startup Checklist

   
Want to start a food business?

1.    Business and Marketing Plan. Preliminarily, even just brainstorming ideas on paper to create a basic foundation is a good start. Unless you are planning on getting an SBA loan or funding from Angel Investors, Venture Capitalists, etc. then you don’t have to have a formally completed business plan to get started. A business plan is great to put your ideas and vision on paper, but most of the time it will be pretty fluid during the first year or two – so don’t waste too much time stressing about it. Now, if you are seeking outside funding/financing to launch your business, then you will certainly need a solid, polished food business plan .

2.    Establish business name. You can have a corporate name such as “Your Name Foods Incorporated” and a different brand name (or names) such as “XYZ Sweets” for your products. Setting up your business name this way is a good idea if you plan on introducing brand extensions at a later time that are completely different from your first line (i.e. you start with a line of salsas and sauces but then introduce a different line of baked goods a year later). A good example of this is Bodine Specialty Foods (corporate name) who produces several lines, including their “RC Buck’s” line, their “Cocktail Dancers” line, and their “Memphis Mojo” line, just to name a few.

It is strongly suggested to trademark your business and (and eventually product/brand names), which can be done online here: www.uspto.gov

3.    Business filing (Sole-proprietorship, LLC, S-Corp, etc). Before filing, you will need to register for an EIN (Employer Identification Number) which can be done online at the IRS website here. It is then advised to consult with a CPA to determine best option for your business structure and state in which you conduct business. Your CPA can do the filing for you, but you can also do it on your own (and save some money in the process) at sites like www.incfile.com once the filing status has been chosen.

4.    Manufacturing: Self or Co-pack? It is recommended to make this decision as early as possible. This can be one of the most difficult and frustrating parts of launching a food product.

•    Self-manufacturing: will you be building/customizing your own facility, renting a commercial kitchen, or using a shared commercial kitchen? Your facility will need to comply with health standards and will need inspection from the local health department.
•    Using a co-packer: a co-packer (contract packaging company) is a company that will produce your product for you in large quantities for a fee. Most co-packers produce their own line of branded products, but aren’t operating at full capacity – so they also produce other products to maximize their production facilities’ efficiency.

Consider different production obstacles your products may encounter (i.e. products with meat and dairy will require USDA certified facilities, not just FDA certified). It is always preferable to find a local co-packer within a reasonable driving distance for testing and quality control purposes. Co-packers provide a great advantage when getting started as they typically have a food-scientist/technologist on staff that can help you with your recipe and regulatory issues (shelf-stability, compliance, etc).

*Get help understanding the ‘ins and outs’ of manufacturing food products .

4a. Product liability insurance. You will need to get product liability insurance to protect your business. This can be attained from most insurance companies with most policies offering coverage in the $500k-$2MM range.

5.    Logo and Branding. This is the face of your business/products, and must be done with great consideration and planning. Your logo and brand should be something that can implemented with consistency throughout all literatures and sales channels such as your packaging/labeling, letterhead, business cards, sales materials, order forms, and website. Get help with food logo design and food branding .

6.    Packaging/Labeling: if using the services of a co-packer, they will likely have many resources for bottling/packaging to fit your needs. If you plan using a non-standard package/bottle/jar, make sure you check with the co-packer to see if they can fill that type of container. Some co-packers offer nutritional label & ingredient statement analysis services, but most of the time you will need to take your recipe to a 3rd party labeling company. LabelCalc is our preferred provider of nutritional labeling and ingredient statement labeling services.

In addition to the nutritional/ingredient labeling, it is recommended to attain UPC codes for each of your SKUs. There are a number of resources available online for UPC codes, and surprisingly, the process and turn-around time is quite simple, quick, and reasonably priced.

Once you have your nutritional/ingredient statement labels and UPC labels, you will need to find a company that help with your food label design.

7.    Website , Sales Materials Business Cards, etc

8.    Time to Market and Sell!

http://www.gourmetbusinesssolutions.com/new-food-business-services-51?task=view