Aloha has emerged as one of the most successful food startups in the last few years. The company first entered the market with plant-based protein powders and snack bars. Within a couple years, the line has already expanded to include pre-made protein drinks that are low in sugar and created from organic material. Part of the key to its success lies in the company’s decision to align its brand values with investors, which has meant accepting small investments from people who believe in the Aloha vision rather than from top private equity investors. Recently, Aloha bars reached the shelves of Trader Joe’s stores across the country, a testament to the persistence of the company’s CEO, Brad Charron.
The Importance of Perseverance in Pitching a Product
Prior to getting Aloha bars into Trader Joe’s stores, Charron spent months cold-calling the chain’s corporate heads to pitch the product. Waiting for a retailer to vet a brand or even just respond to a cold call can feel like an eternity. However, entrepreneurs need to stay persistent. Individuals should not give up or assume that the answer is “no” if communication stalls for a period of time. Particularly with a brand like Trader Joe’s, which prefers private labels, the vetting process can take considerable time. The Trader Joe’s Buying Group takes a thoughtful and thorough approach to partnership offers, which has allowed the company to build customer loyalty without relying on gimmicks such as coupons and discounts. Customers trust that the store will carry only the best products.
Charron sent emails to a Trader Joe’s buyer weekly for several months to sell the Aloha products. During this time, Charron said that he remained hopeful for a response but never expected one. However, after the fourth email, the buyer offered to speak with him on the phone. After a three-minute pitch, Trader Joe’s asked for samples that were sent immediately. Charron stresses that entrepreneurs need to be respectful of buyers’ time and cover the salient points of a pitch in a matter of minutes. This level of conciseness has helped to spark interest and keep the conversation going. The conversation continued for multiple weeks before Trader Joe’s agreed to a thorough vetting of the company to ensure that the values of each organization were in alignment.
Convincing Buyers with a Win-Win Value Proposition
While Charron doubted himself during the entire vetting process, he urges other entrepreneurs not to fall into the same trap. Buyers will only take the time to go through this process if they truly see the potential for a partnership. Since buyers tend to be risk-averse, entrepreneurs need to position the value proposition as a win-win scenario that will benefit both brands. While plant-based foods have become a growing sub-segment in the food industry, not all companies offering these products are the same. Aloha has high protein content and low sugar, which has filled a gap in the market. By selling the company in this way to Trader Joe’s, Charron was able to obtain the interest of the brand.
Ultimately, Charron recommends that entrepreneurs pitch their product from the perspective of the buyer. Doing so will help to create a win-win scenario that can prove convincing for buyers. Ideally, entrepreneurs have benchmarks that can be used to demonstrate their products’ performance. Buyers tend to prefer lagging and present indicators rather than future ones in terms of determining the risk of a partnership. This kind of data can really sell the win-win scenario. However, Charron points out the importance of also making your pitch personal. Since business is personal, building a strong foundation for a relationship will ultimately help with the overall partnership. Personal appeals can help to create this sort of relationship.
Creative Approaches to Driving Velocity in a Challenging Market
Another important point that Charron brings up in relation to building partnerships with stores is the ability to drive velocity. Especially now, due to COVID-19, traditional launch strategies are not possible. In-store sampling, large displays, and promotions no longer serve as a way of getting customers interested in a product, so companies need to become more creative. In terms of Aloha, Charron teamed with a delivery service for snack boxes that will include the bars for customers to sample. Creative solutions like this will become extremely important, particularly in 2020. Charron believes that market victories can no longer be won independently. Companies need to work together to appeal to consumers.
Driving velocity becomes extremely important once products are placed on the shelves of a popular store. Getting those products to stores is only half the battle. The rest of the push involves getting customers interested in the product. Partnering with a company like Trader Joe’s can help, as the store is known for carrying only heavily vetted products. However, people have also shifted their spending habits due to the pandemic. Driving velocity may involve creating additional partnerships, particularly in terms of getting products into the homes of consumers, and this investment is expected to pay off in the long run.
