NOSH Live Winter 2022 Day One Recap: How Whole30’s Brand Built A Community

Building a Community That Keeps Coming Back

Melissa Urban, founder and creator of elimination diet Whole30, brought attendees together during the opening session of NOSH Live Winter 2022 for a discussion on building a brand through community.

Throughout the conversation, Urban emphasized the deliberate choices the Whole30 team made to create the ​​cult following the diet has today, which enabled the platform to later extend into the world of CPG with a line of salad dressings.

As an elimination style diet, Urban said followers often use Whole30 as a “self-experiment” with the understanding that it is not a diet intended to be a continuous part of their lifestyle. Even so, consumers coming back year after year. According to Urban, those who revisit Whole30 often do so because of the support of the community and the inclusivity that has been fostered by the brand’s leaders.

She also highlighted the importance of rhetoric when it comes to every aspect of copy associated with the brand. Citing an example from Whole30’s early days where the program labeled foods as compliant, she explained the word “compliance” gave a “militant” connotation leading the team to later adopt the phrase “Whole30 compatible” instead.

The brand also made the conscious decision to be outspoken about topics that span beyond food, but impact the lives of many of its followers, which further helped develop a sense of community around the program. Urban explained that in taking an active stance on social media, the team knew it may lose portions of its audience but made the deliberate decision to do so anyway and it paid off.

Specifically when it came to MSG, the ingredient was once not part of the Whole30 plan. However, after looking into the rationale and “demonization” of MSG, Urban and her team found the argument against MSG was rooted in “racism and xenophobia” against the Asian community and lacked a scientific justification for avoiding the ingredient. The ingredient was then deemed Whole30 compatible.

For emerging brands aiming to build on a platform of inclusivity, Urban suggests baby steps such as reviewing the brand’s social media platform and ensuring posts accurately to the audience it is speaking to. She emphasized that when it comes to diversity, equity and inclusion, every brand is either going to enter the conversation themselves or get dragged into it.

Plan For Profitability, Not Performative Growth

Capital efficiency, a path to profitability and velocity are top of mind for Jared Stein, co-founder of Los Angeles-based private equity investment firm Monogram Capital Partners.

Speaking at NOSH Live today, Stein noted that the former had not been a major factor for many investors until recent years. He said a business that has grown efficiently without taking on outside finds is alluring to many investors in today’s market, as it shows grit and a willingness to build a business no matter what.

Supply chains have also become a point of interest for investors when assessing a brand’s health and long term sustainability. Stein said in today’s market, an analysis of each piece of the puzzle that gets a product to market is required to assess the overall health of a business. This includes relationships with co-manufacturers which are increasingly being offered to join investors in fundraising rounds.

According to Stein, giving a co-manufacturer a financial stake in the business can help with a brand’s margins and help “whittle out” the toll rates that come with outsourced production. Meanwhile businesses that self-manufacture bring an added complexity when it comes to an investor assessment as these brands are often running two businesses under one roof. Many may want to see plans to diversify how the manufacturing business operates outside the brand itself, such as with private label products or offering co-manufacturing for other businesses.

Lastly, Stein emphasized that investors today, more than ever, are looking for a business that was thoughtfully built from day one. They are asking for more discipline and do not want to enter a situation where they need to “fix it as they move down the freeway.”

Emma Chamberlain Emphasizes Importance of Authenticity in Creator-Based CPG Brands

YouTube sensation-turned-entrepreneur Emma Chamberlain joined NOSH Live on Thursday morning, providing insight into how she turned her love of coffee that she developed “at an inappropriately young age” into a rapidly growing CPG brand that has a multitude of SKUs, ranging from whole bean coffee blends to flavored matcha.

During the discussion on Thursday, Chamberlain, who has amassed a social media audience of more than 35 million followers, emphasized the importance of establishing a brand that stood on its own. The 21-year-old said it was important for her that the specialty coffee brand’s audience didn’t just “see her face everywhere” when they visited its social media pages.

Additionally, Chamberlain stressed the importance of recognizing when you need help, especially in the situation of creators making their first foray into the CPG world. Last year, she brought on Christopher Gallant as CEO.

Following Gallant’s appointment, Chamberlain Coffee raised a $7 million dollar funding round to fuel omnichannel business growth.

“I don’t know every nut and bolt, I’m still young and learning, but my personal passion starts with coffee, but is also building a brand that means something to people, they can connect with and fills a gap,” Chamberlain said.

Don’t Discount Your Brand, Even In Times Of Economic Turbulence

Years after starting luxury cupcake brand Sprinkles, founder and CEO Candace Nelson opened her next venture, a modern take on Neapolitan pizza. Nelson managed to build both luxury brick-and-mortar retail businesses during times of economic decline, launching Sprinkles during the 2008 Great Recession and starting Pizzana right before the onset of the COVID-19 pandemic.

Nelson explained that both businesses were able to scale sustainably because they offered consumers “affordable luxuries” during a time where they still may want to treat themselves, but were likely cutting back on unnecessary expenses. Throughout the course of running both businesses, Nelson never discounted products stating this practice will train consumers to wait to purchase and inherently devalues the brand’s positioning.

You Can’t Simply Sit On Shelf, You Must Do More For Your Retailer

According to Holly Adrien, Natural and Organic Strategy and Innovation Manager at Kroger, emerging brands looking to get on the grocery chain’s shelves should try pitching buyers on how their product will drive more consumers to the store.

Direct-to-consumer-first brands specifically have the advantage of their close relationship to consumers, data which she suggests should be leveraged in any conversations with retail partners. While a few years ago, the general attitude of brands and buyers was “we will make it work on shelf,” Adrien said. However, nowadays those conversations have changed with most buyers looking for brands that are willing to start small and have focused and reasonable expectations for retail distribution.