When Krave Jerky Showed up in Class with a $435,000 Check

[DiemTrader]

http://steveblank.com/2015/02/03/wh...jerky-showed-up-in-class-with-a-435000-check/

 

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[MJ DeMarco]

Great story, just saw Krave in my local Costco.

 

[eqttrdr]

must be good to have parents with a vineyard in Sonoma county and tons of connections

 

[healthstatus]

must be good to have parents with a vineyard in Sonoma county and tons of connections

You seem to have your own supply of WHINE.

Everybody has some connections, and think about all the people out there with these kinds of connections that don't do squat.

 

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[DiemTrader]

Great story, just saw Krave in my local Costco.

I thought it was a good story about "spotting the open road" as you write about in MF. They did it better than the other established competitors. My son actually introduced me to their product. It's actually pretty good stuff!

 

[Ronnie]

must be good to have parents with a vineyard in Sonoma county and tons of connections

Connections mean nothing if the product sucks.

 

[eqttrdr]

Connections mean nothing if the product sucks.

100% incorrect. Tons of jerky in the supermarkets suck horribly and are hard as bricks yet they are still there.

 

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[Unknown]

100% incorrect. Tons of jerky in the supermarkets suck horribly and are hard as bricks yet they are still there.

They suck to you. Last time I checked there were about 6.9 billion other people in the world.

 

[JasonR]

must be good to have parents with a vineyard in Sonoma county and tons of connections

This is not a "winning" attitude.

If you have connections and you don't use them, you would be considered stupid.

We all aren't born "equal" in terms of status, connections, money, etc - that's just the hard truth.

Winners aren't jealous because they're disadvantaged. Winners find a way to leap over their own obstacles and applaud the advantaged action-takers.

 

[OzzieRob]

The Jerky market is also HUGE in Australia...

http://www.smh.com.au/small-busines...panese-plenty-to-chew-on-20141120-11qpct.html

http://www.locallegendsjerky.com.au/shop/

Here is a summary:

We have a company here in Australia called New World Foods which began selling its Local Legends beef jerky range into Japan

The Local Legends brand launched in 2012 and was developed for the Australian market but a Japanese distributor saw it and said that it was exactly what was needed in Japan.

"Before we knew it we were in Tokyo and putting a deal together. Japan found us rather than us finding them."

The Local Legends beef jerky is a softer and chewier product than traditional jerky products, which are tougher and tend to attract an older demographic.

"It's been available in Australia for two years and while it's only by chance that we launched it in Japan, we're glad we did."

The company supplies 55 per cent of all imported meat snacks, a sector worth about $135 million in retail. The Local Legends brand targets the medium-premium to high premium end of the market and the attraction for Japanese consumers was around the packaging.

"Traditionally, packaging for beef jerky products focused on the association with cowboys but we were keen to get away from that," he said. "We focused more on what consumers have been saying they want and much of our success is about the branding, as well as what's in the product."

"Our Mariani range is the only beef jerky product sold on Japan's bullet train, which caters to 400,000 customers daily," he said. "We're also in Costco, on Jetstar Japan's in-flight menus and in their convenience stores, and there are more convenience stores in Japan than in any other country in the world. This presence gives us a high credibility factor."

Local Legends launched in Australia in 2012 and has achieved 84 per cent compound growth. "We attribute this to bringing new consumers to the ready-to-eat savoury snacking category," he said. "We developed the range after identifying consumer demand that was not being met by either peer products or brands."

New World Foods was the biggest producer of beef jerky in Australia by a long way, Nisbet said. "There is a large US competitor and smaller manufacturers but we account for 55 per cent of all beef jerky consumed in Australia."

The company changed its name from Mariani Foods in July as part of its push to expand worldwide. As well as Japan, other key export markets include the United States, Taiwan, Singapore, Korea, New Zealand and the Middle East.

"New World Foods is the platform to grow our business into a more diversified company," Nisbet said. "We're in an acquisitive mode and looking at other businesses that have a good fit with us. In February this year we bought a UK business that manufactures biltong and we see lots of opportunities in Europe.

We're not interested in the mass market - we have niche high-value products that we know we can sell into domestic and international markets. Moving into China is a key focus for us."

"In just 10 years our business has grown from a small Australian beef jerky manufacturer to a diverse food company with international manufacturing capabilities. I believe within five years we will be a global food company with a portfolio of successful brands."

Cheers
Rob


Read more: http://www.smh.com.au/small-busines...to-chew-on-20141120-11qpct.html#ixzz3QmOsdet7

 

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[benhebert]

If the market is only 2.5 bn domestically and they were bought for ~ 200mm on only 35mm of revenue... we must be missing some key information.

Is brand equity really worth that much for Krave to expand into other categories like protein / meat bars and things like that?

Anyway seems like good news for folks like me

 

[DiemTrader]

This is who Ben mentioned today as an example....