01: Introduction
The Spark
I remember when I set out to start my own CPG business. At the time I was working long hours as a consultant and just found out the coffee I was drinking to stay alert was causing me stomach issues. Some nights I laid in bed doubled over in pain because the acidity was destroying my stomach lining. I had to stop drinking coffee cold turkey, which brought on a caffeine headache for two weeks.
But the worst part was not having anything to replace the coffee that would help me stay focused and alert, without the negative side effects. I used energy drinks in college, but those were so bad for my body. I enjoyed drinking tea, but it had lower caffeine levels and would always get cold before I could finish the cup. Was there a way to eat my tea instead?
Aha! How about an energy bar made with matcha powder for focus and energy? It would provide a natural caffeine source, without the acidity or jitters from coffee.
The creative spark was lit and I now had my first idea for a food product. But what next? I’d never worked in the Consumer Packaged Goods (CPG) industry before and had absolutely no idea where to start.
This was the beginning of my journey building TeaSquares, a journey which took me on one of the wildest roller coaster adventures of my life.
I Don’t Know What I Don’t Know
After deciding to start a business I was at a loss on what to do next. How do I register a company? What do I need to legally put on my packaging? How do I start an e-commerce website? Even more scary, I didn’t know all the questions I needed to even ask or think about! What if I missed something critical?
If this sounds like you, you’re not alone. There are literally thousands of little pieces you need to put together to run a CPG brand, and we’re going to cover all the major topics in this book. By the end you can feel confident that you have all the major decisions covered.
Is This Book For You?
I wrote this guide for everyone starting, or thinking about starting a CPG food or beverage company to learn from not only my experience, but the experience of dozens of other CPG founders.
CPG Business are packaged products that are sold online, in grocery stores, and sometimes at farmer’s markets.
Thinking about starting a business? You’ll gain insight to help make your decision.
Just starting your business? Congratulations! I’m so excited for you taking such a monumental step. This book will help guide you from the beginning.
A year or two into your business? This book will help clarify your path forward.
Here’s the thing, starting a CPG business is actually pretty easy. Growing it to profitability and/or an eventual exit is incredibly challenging. But that’s what I’m here for, to help guide you towards your goals.
How This Book is Organized
Each chapter focuses on big ideas to help you gain an understanding of the various options available along with their pros and cons. The goal is to empower you with information to make better decisions for each aspect of your business.
You might find it easiest to read the book straight through, or it might be more helpful to skip around to chapters that are particularly relevant to you at this time. Do whatever works for you.
About Foodbevy
I started Foodbevy.com as a resource to help food and beverage founders grow their companies from startup to scale through inspiration, education, and partnership. Running TeaSquares I constantly felt that I was reinventing the wheel for every new task I needed to do, and wished I had someone to just tell me the best way it’s been done before. That’s what Foodbevy is here to do.
Be sure to check in daily to our website for the latest CPG news and education, podcast, webinars, and partner directory.
Disclaimers
Let me be clear, the stories and recommendations in the rest of the book are not a 100% sure way to build a billion dollar company. It’s a collection of experiences and lessons learned the hard way so hopefully you won’t have to. It’s a sharing of collective knowledge so that you can learn from others who came before you.
Not everything will apply to your company. I encourage you to think critically, question everything, and make your own decisions. Pick and choose what works for you, as ultimately, you’re the only one who’s going to make your business successful.
I ran TeaSquares for six years, had a lot of success, and a lot of failures before shutting the company down because of the pandemic. I’m not here to tell you that I know exactly how to build a CPG company. I am confident that through my experience with TeaSquares and Foodbevy I do have a perspective of seeing over 3000 CPG brands start, grow, sell, shutdown and everything in between. I’ve spent the past 4 years analyzing the various decisions these founders make and the outcomes that come from them.
Starting a business is really hard, but it shouldn’t have to be so damn hard. Let’s make it a bit easier shall we?