
Morgan Zanotti - Act Two After A $200 Million Exit to Kraft

On this episode, we're joined by Morgan Zanotti, Founder and CEO of Waay - the sparkling protein water brand with 10 grams of protein, zero sugar, and 45 calories a can.
Morgan co-founded Primal Kitchen, which she helped grow from a kitchen to roughly $50 million in revenue before a $200 million exit to Kraft Heinz.
We get into the origin of Waay, starting with the clear whey protein isolate that made Morgan wonder why no one had put it in a sparkling water. Morgan walks through the rapid launch timeline, the rollout across Whole Foods, Sprouts, and a Target protein end cap, where a sparkling protein belongs on shelf, and why the brand took off on Amazon and TikTok Shop faster than she expected.
We also talk about the importance of reaching profitability ASAP in order to maintain ownership, what five years inside Kraft Heinz taught her, and what strategics and PE really look for in a brand.
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Episode Highlights:
π‘ The clear whey protein "aha" moment behind Waay
πͺ Why the protein message finally tells women to eat more
π₯€ 10 grams of protein, zero sugar, 45 calories
π Why a second-time founder gets back in the ring
π Chasing a $40 billion TAM instead of a niche
π Landing a Whole Foods national yes with blank silver cans
β±οΈ Three months to build a brand from scratch
π Riding Target's protein end cap, and the risk
π¦ Why beverage blew up on Amazon and TikTok Shop
π° Staying profitable to keep ownership
π’ Five years inside Kraft Heinz after the exit
π The brands and trends she's watching now
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Table of Contents:
00:00 β Intro
00:49 β The origin story: a millennial mom and clear whey protein
01:40 β How the message to women shifted to protein
03:06 β Why a second-time founder jumps back in
04:55 β True innovation and a $40 billion TAM
06:40 β How GLP-1 reshaped the category
08:13 β Selling Whole Foods national with silver cans and a trademark
10:43 β Three months to build a brand, find a co-packer, and nail the taste
14:09 β The protein arms race and a "support, not solution" position
14:55 β Sprouts, Target, and the end cap bet
16:31 β Where a sparkling protein sits on shelf
17:57 β Why beverage took off on Amazon and TikTok Shop
19:11 β Staying profitable to keep ownership
21:28 β Her cap table approach vs Primal Kitchen
22:30 β Five years inside Kraft Heinz and "keep being you"
24:40 β What acquirers actually look for
27:21 β Reading an exit, and why she loves Good Culture
29:56 β Brands and trends she's watching
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Links:
Waay β https://drinkwaay.com/
Follow Morgan on LinkedIn β https://www.linkedin.com/in/morgan-buehler-zanotti-31989620/
Waay on LinkedIn β https://www.linkedin.com/company/drinkwaay/posts/?feedView=all
Follow me on LinkedIn β https://www.linkedin.com/in/adam-martin-steinberg/
For help with CPG production design - packaging and label design, product renders, POS assets, retail media assets, quick-turn sales and marketing assets and all the other work that bogs down creative teams - check out https://kitprintco.com/.
Shout out to my friends over at Glimpse, the go-to partner for automating retail-related back-office operations and unlocking margin trapped in invalid fees and manual processes.
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Episode Transcript
today we're speaking with Morgan Zanotti
founder and CEO of way
sparkling protein water brand with 10 grams of protein
zero sugar
Morgan cofounded Primal Kitchen think
back in 2014 or so
and the cofounders bootstrapped it from zero to
I think 50 million or so in three years
before eventually exiting to craft
for around 200 million or so
so now she's back in the arena
building brand number two
a lot of great experience
and super excited to dive into it
um
Morgan just first off
for the
the listeners that maybe not as familiar with way
Love to start off just getting a quick lay of the land
just in terms of kind of the
the origin story the why
behind the brand and core products in the lineup
and then we'll go from there
sure yeah
thank you for having me um
way so god
I'm just a millennial mom of three boys
trying to get my hundred grams of protein a day
and finding that you know
like many other moms we're like
lucky if we're eating two meals a day
so I you know
had it all the chomps in the purse and the whole thing
and one day I was drinking a sparkling water
and I had Learned about Clearway Protein isolate
and I was like how does this ingredient exist
and I didn't know about it
I like
personally and professionally have
like lived and breathed this industry for 20 years
how does this ingredient exist
I didn't know about it and
can't someone just take this
and put it in my sparkling water and like
let's just call it a day like I
I would like to be not just
you know buying expensive
kind of dirty sock tasting
like expensive pee pee water
more or less like
I feel like you know
there's just more these beverages could be doing for us
so big believer in protein
especially for women I think
as women if I look at
even back to my mom I'm 42
my whole life right
I've watched the message to women
and it's been very like okay ladies
calories are the problem we're doing 100
like limit your calories
and then it was like you know what
it's fat no fat
and then they were like actually
it's the carbs you gotta cut the carbs
and then they were like you know what
we're not eating at all
we need you to just intermittent fast now
if you could just cut the food all together
that'd be great and then protein came around
and it's like the first time in my life
where the message to women has been like
hey we want you to be eating more of something
it's clinically proven it's
probably the most clinically studied
food group in the world right
like there's nothing that has more data behind it
than protein and hey
by the way you don't have to like
walk around restricting food all day
and you're gonna feel better and be stronger
so I'm just like
really here for the protein movement for the women
I think it's just important from a health perspective
and also just empowering from a mindset
with food perspective so here we are
we've got whey
taste kind of like a Poppy meets a spin drift
but with 10 grams of sugar in it
or 10 grams of protein no sugar
zero sugar 10 grams of protein
so that's way awesome that's great
when we chatted a few weeks back
yeah you
I think you mentioned to me
that you'd spent a year and a half
trying to
talk yourself out of launching a beverage brand
and that you know
I think you said like
only someone someone insane
would launch a beverage company knowing what you know
um I think
like CPG
so interesting now
like I
you know we launched from a kitchen in 2,015
so 11 years ago it was a totally different world
there was no TikTok
we we executed an influencer playbook very early on
before there was such thing as an influencer almost
because Mark was like an OG influencer
my partner on the business
so we had all these like
friends who launched paleo blogs and Instagram accounts
that we just started sending free product to
every quarter and that was like
there literally wasn't a term called influencer then
right like
we were super early on that movement
and it paid off I think that's how we built the brand
um and we had a great
differentiated product I think
you know if I step back and look at how I ended up here
I've met enough second time founders in the last 8
9 months people who have had like
huge exits who don't need to work again
who are like
back in the ring building like
and I've realized like for
so for a while I was judging myself like
what's wrong with you like
you must be like psycho
why would you do this it's knowing what you
it's so hard right
so like
knowing what you know why would you do it
and then
and then I met enough other people
that are also doing hard things
that have already had major success in this industry
and it's like we're just diseased humans
you know we're just like
sick in the head
and there's nothing more fun than building
like it's horrible
but it's also so fun so
you know it is what it is
like yup
I'm not meant like
for a boring like
like I value like
adventure and freedom so it suits my personality well
it is definitely not for the faint of heart
I would actually recommend you don't do it
to anyone listening like
I don't
I think this is a good idea for me or anybody else
but here we are and I think it comes down to like
do you have something you're really like
passionate about that you think you could
you think you have a unique position in the marketplace
so when we launched
when I started working on the product two years ago
there was like
no other clear sparkling protein in the market
um and now there's like
50 brands that have launched in the last year
but it was true innovation
and I think true innovation is like
fairly hard to come by these days
like everything's kind of been cleaned up
we've seen like
you know 20 years ago you
you could just be organic and that would be enough
like Annie like
look at these brands like Organic Valley
Annie's like
it was enough to just be organic
and then it was like okay
you know now it has to be better for you
and now I don't
even think it's enough to just be better for you
I think that's just like the expectation
like yeah
you know you need to now do something for me
so we're in
we're just kind of seeing the industry evolve
and I think beverage is super challenging
because it's super competitive
it's hard to stand out on shelf
there's a million different brands
but it's also like a massive Tam
like the total addressable markets
like you know
mayonnaise might be 2 billion
and sparkling water might be 40 billion right
so you're talking about
you don't need a huge percent of the consumption
to flow into your business
in order to have like
high revenue so
I think you could have a really great idea
in a 200 million dollar category
and find yourself up against a pretty hard wall
when you realize like okay
maybe only there's only 13% of shoppers
who want a better for you version of this
so I was excited about the Big Tam personally
and I was excited about the innovation
and doing something that like
hasn't been done yeah totally
which obviously speaking to the choir at this point
but like how did that
I don't know category level like
factor into the decision to actually
launch this beverage in terms of the GLP1 stuff
if at all
I think like
I think we're at the tip of the iceberg on Chiopi 1
like I think we aren't
I think we talk about it so much
and we're still not talking about it enough
like I don't think we can really see
I mean I read an article recently that was like
airlines are realizing more profit
because the bodies in the seats weigh less
and the fuel is now taking less fuel
to fly the bodies from point a to point B
so like
the downstream effects of this are just like
it's like unbelievable
every area of the of the world it touches right
it's kind of crazy so um yeah
so I think that's interesting
but yeah
so I I don't know
I think people I think GOP one
if it's done nothing else besides
you know whatever
reduce everybody's appetite
it has brought this mass awareness to like
what we're putting in our bodies
and the emphasis seems to be around protein and fiber
which is basically protein and vegetables
which is kind of like the basis of the Paleo diet
and what we should really be eating anyway
so you know
I think there's that but I think protein
if you're not eating like
a steak and a burger and eggs and whatever like
has existed largely in just thick powdery
milky creamy shakes that are sold to gym bros
so I'm kind of like protein
but make it casual and fun and put it in a can and like
this doesn't need to be so serious
totally no
I think it was like locally last April
I think it was you know
you didn't even know
if you want to launch the brand yet
and you know
you obviously know Whole Foods very well
know the space very well
I'm sure that's part of them trusting you
but they came back and said yeah
we'll take it nationwide in October
and I think at that point
you had no brand no
no command no packages on
basically just just the idea
maybe the formulation and
and the trademark I think for just some of those other
you know especially first time founders
that are in that similar stage
maybe they didn't get a commitment from the retailer
but they're in that early stages
and they have some sort of timeline
they're trying to launch pretty quickly
you know pulling together the co man
the brand the packaging design
all the stuff in a pretty short timeline
three kids under seven at the same time
yeah I'm on the hunt for a co founder
so if you know anyone send them my way
cause I'm like
drowning over here no seriously
I am actually though
but I uh
yeah it was crazy
I like
took a can actually
that I'm drinking an R&D sample
like I'm launching two new flavors in the fall
so I'm like
drinking a whole can of it to get the experience first
just like tasting
but I took these silver cans
for those who can't see these
like plain silver cans with no packaging on it
to Whole Foods they all
the retailers review like
each category at a certain
like one month period
so you have you know
a set time of year when that buyer for your category
is looking at new items so you submit like
it's very formal you like
submit your Powerpoint presentation
you have a broker who requests a meeting
you send samples if they want them
and then like
three or four months later
they make their decisions on what they're bringing in
and you don't roll onto shelf for six to
nine to sometimes 12 months after that
it's a long process but I had an idea
and I registered trademark for the name way
and I was like let's just see what Whole Foods thinks
so I took it to Whole Foods
I I will say I'm in like
a bit of a unique situation
I have a relationship with Whole Foods
I've been selling to them for 12 years
they were a huge partner of ours at Primal Kitchens
um David Lafferty over there
I've known for a long time
he's like a great friend
and I love him I was
I was like David
can you get me a meeting with the buyer
and I would love to like
meet with you
and show you this new thing I'm working on
so I went and met with them
no one else had presented Clear Protein
last year to them so I was like
the only they hadn't
we were early right
like a year ago with Whole Foods saying yes
like there wasn't really anything in market
and that's what's crazy like
there was nothing in market a year ago hardly okay
we present it and they then they called a month later
and they were like we'll take it nationwide in October
and then I had like
three months to like
do the branding find a co man
reformulate everything it was very stressful
I spent an entire girls trip in Mexico
like going back and forth with graphic designers
trying to get the package design figured out
so yeah
it was stressful for sure
yeah it's all stressful
was it hard to find a co packer
or is that not that hard it wasn't that hard
cause I had the right people on my team who like
knew where to go
but I think if you didn't have someone who like
knows beverage commands inside and out
it would be challenging um yeah totally
so yeah
from a brand identity packaging design standpoint
what were said
as you were working at the brand identity
and kind of the visual identity
and all that kind of stuff
I mean I just knew I wanted to sell like
fun protein to women so I just was like
kind of hitting that
we had like a version of the package design
and I was like uh
it's like looking to like sports
and then I was like I need like
a Jane Fonda logo and then that's how we like
found the font for Wayne and then it kind of like
brought the whole personality to life on the can
from a formulation standpoint
no obviously don't want to give
giving away too many trade secrets
but in terms of like the different kind of factors
actually get the product where it is today where
you know you said it's a summer routine of
like you said a spin drift and
and a Poppy which with 10 grams of protein
was cause I was like ugh
it doesn't like
taste good enough
and I'm not gonna launch it if I don't like
love it so then I'd go back to the drawing board
and then I would be like ugh
do I really want to do this beverage thing
and I'd be distracted with like
you know my EIR program was summited
and then I you know
it was just kind of like
on to the next thing I don't know
the last 40 years was yuppie
focus on what you can cut out
and now it's finally like
protein is anything take more of like
like I said I just feel like dieting has been just
the messaging to women has just been so awful
and it is like I look
I'm just like 100
and I'm I'm five feet tall right
I'm super short so like
five pounds makes it is noticeable on me
and I feel like every one of my girlfriends
not every one of them I live in Southern California
so there's a lot of just like
naturally super skinny beautiful women here
but like
it seems a lot of my friends are like
have been trying to lose 5 to 10 pounds for like
30 years right
so like
imagine how much mental energy goes to just like
trying to lose five to 10 pounds
then you get into like
you have three kids you get into like
the postpartum phase and we
the way what we've been sending out
I think is just really
like
restrictive and awful and not healthy
and not something from a place of like
true health which is like
you know enjoying my mental health right
like enjoying my life and not letting like some
you know elusive body goal like
derail me and also like
feeling good you know
like I don't know like yeah
so I just think protein solves a lot of that for us
it's like
it's very important like
recovering from surgery
it's very important if you're pregnant
it's very important if you're aging
it's very important if you're perimenopausal
or menopausal it's very important if you're trying to
like you know
reduce hunger hormone signals the whole day
that you start your day with a lot of protein
and all these things so we know these things
um yeah
how do you think about in terms of like I
seems like you know
the natural progression is
some brands that are gonna start just saying hey
trying to differentiate on the sales
okay this
all the other competitors have 25 grams of protein
ours has 27 okay
then the next one comes up
it has 28 grams of protein
I think there's been a lot of brands
like
if you look at cloud popcorn or Wild Chips or chomps
that have just like
taken a more of like a
eat your real food and if you need a little like bump
we're here for you right
like it tastes good
it's very sessionable it's very snackable
we're not trying to be your like
protein solution we're trying to be your like
support person you know what I mean
so I think that's kind of
more of the position we're taking in the marketplace
in that April to nationwide pretty quickly
then sprouts I think
in January Target following that
generally
seem like it's been a pretty aggressive expansion
from a retail standpoint what's been
have you been finding has been the biggest impact
in terms of really driving those velocity numbers
at some of those first key retailers
I think look
it was like a known risk to go to target this early
but we got an opportunity to be on like
a protein front race track end cap for like
you know
it's a multi month long through the summer end cap
so you're not gonna repeat that opportunity next year
it's not just like oh
do you go into the target set this year
do you go in next year it's like
Target's leaning in on clear protein
do you want to be one of the brands
that's leaning in with them now
or do you want to wait so
the verdict's still out on
if that was a good decision or not
but like most of the time
Whole Foods is really partnered with us on like
building the brand and they've been an amazing partner
and and they're approaching the category like different
right they're kind of like
we picked our horse we're betting on way
and like you know
we're gonna help you kind of build the brand
and I think target is more like
wanting to be really early on the trend
and they're leaning into with this end cap
but they've rolled out a ton of different brands
so you know
they're kind of gonna let us all duke it out
and see who the winners are
is what I think is happening
but yeah
for me I think it's more just about like
do you have the right like
buyer relationships and retail partnerships
and is it versus just like
chasing doors for the sake of chasing doors
I don't need any more distribution right now
like I think we're good
so there's that but yeah
in terms of where you want it to sit versus
does it sit in the sparkling water section like
you know the functional beverage section
is it in like
the supplement section where like
the protein powders are or multiple of those
and yeah
what where does it sit in
where do you work yeah
we're in the functional beverage set
in all of the stores so Whole Foods
but the difference is
the functional beverage set is different at target
than it is at Whole Foods
for instance so like
Whole Foods functional beverage has like
shelf stable RTD proteins
like organ and Owen and slate milk
and it also has energy and it has like
high Owen trip so it's kind of this mish mash
and then sprouts has a lot of the similar
maybe type of brands more like RTD protein etcetera
functional beverage at target
RTD protein that's like
over 20 grams is actually somewhere else
it's in like
OK set so at target
it's more like shelf stable coconut water
tripping high oh
like the vitamin waters it's all kind of like a random
OK that's interesting
so their cutoff was like
anything above 20 grams of protein goes in a different
I mean section
yeah
the retailers are trying to figure out where this goes
it's an interesting price
and that
it could probably live in four different places
in the grocery store yeah
it could live next to liquor
it could live in soda it could live in protein
and it could live in functional beverage
so
yeah that's yeah that's super interesting
and Amazon and TikTok and all those e commerce
so we're on Amazon we just launched on TikTok Shop
or we are launching like
as soon but we're on
we've been on Amazon since like October November
that has actually taken off
like I was shocked
like I just didn't
I didn't expect
beverage to be so heavily shopped online
and I think I I then I heard someone say like
liquid debt I remember a few years ago
they're like
number one and most profitable account was Amazon
like Americans don't like carrying like
a case of something to their car
and then to their doorsteps or into their fridge
so it's like
I think people do maybe over index on beverage delivery
if you're buying like 12 packs
yeah yeah
that's interesting that's a good point
and I wanted to carry it I never thought about that
you mentioned about like
jury's still out was getting in target that early
like you know
the right call or not like for
for other brands
especially with just all your experience in general
that are in their first say 1,000
2,000 doors probably some
like natural channel or independence
they're evaluating when to make that jump to
more conventional like
what signal should they be looking for
that tells them they're ready
velocity just like
it just cost so much money
to go into every new retailer
so just don't go until you have like
really strong velocity in the accounts you're in
talking about like
for a second um
95% of the business at exit
assuming I got that right
for other founders
that are trying to maintain ownership and control
while scaling to you know
nine figures especially today
and maybe
it's a little bit different than when you guys started
you know 2015
in terms of it's just more expensive and what not to
to win in the market today
but yeah
what should what should their playbook look like
if they want to maintain as much ownership as possible
then
if you want to maintain as much ownership as possible
you need to just get profitable from like
as soon as humanly possible
like that's the only way
you're maintaining as much ownership as possible
so I feel like CPG has become like a billionaire's game
like you're like
it just feels like
you either need to go raise pre revenue
at some crazy valuation
like David Bar Goodles or groons or whatever
and then you've got $80 million
and you better figure it out
cause you raised $80 million
or you need to like
crap buy and get profitable as soon as possible
I didn't do the Gruns David protein
I mean it would
that would have been great
but you know I
I was I didn't do that
I think that can also bite you in the ass
more often than not you raise it too high of evaluation
then you're doing down rounds
and everybody just is over it
and you end up folding the company
so I'm scrappy like
I'm not like and I'm
I'm learning how to manage like
fundraising and having investors
and that's something like
that is a mental that's something that's hard for me
because I think I went in
everybody has this like maintain ownership
and you don't want investors
but like
some of these brands would never have exited
if they didn't have like
amazing strategic investors backing them right
so I think investors are amazing
like I have had amazing support from people
who are on my cap table who are like
let me help make introductions for your next round
let me have you talked to this person
have you thought about this
like so
the whole experience for me
has been much more pleasant
than I thought it was gonna be
but I think you gotta be picky about like
who you take money from but in the end of the day
like I would give up
yeah I
I'm not like
super hyper focused on maintaining all equity
I'm just like
can I keep the business capitalized and
you know do I
am I working with like
nice people yeah
I mean you mentioned the cap table
so you're taking a bit of a
a different approach than Primal Kitchen
and raising more capital here
or trying to do to give it to like
friends and family and no
I do not have the risk tolerance of Mark
and there's no way
I'm taking out a nine million dollar line of credit
that I have a personal guarantee on
and I
Mark didn't really have any business doing that either
when we were at primal
but he's been an entrepreneur his whole life
you know I got to like
reap the benefits of entrepreneurship with him
but it wasn't like a full
it wasn't like my house wasn't on the line
right like
that's a different level of stress and anxiety that
like I just certainly could not handle at 42
with three kids under the age of seven
so I've raised money um
and we'll continue to I'm
I'm actually raising again right now
so I raised money last summer before we launched
and I'm raising again I'll probably yeah
I'll raise a little bit now
and then hopefully get to like
a bigger number of revenue
and I can bring on like
an institutional partner sure
what's the what is the
the team look right now are you like
three other people full time besides me
and then I'm in some contractors
so I think after that acquisition
you stayed at craft for like
four years
which seems pretty long compared to the average
and I'm still at craft I'm still at craft
you are still at craft oh wow
I didn't know that okay no
I mean I'm not full time
but when I'm in advisory role
but yeah
I did stay and run the day to day
for five years after we sold
very rare
yeah it's very rare
like what I guess
what did you learn about operating inside a company
like that size
like the size of a craft
hinds that you're now applying at way
that you didn't know pre craft
pre acquisition when you're building Primal Kitchen
like what did I learn being there
yeah I guess
any learnings that you've kind of
gleaned from being in such a bigger
big organization that you're kind of applying
you do professionalize the way you like
look at the business a bit
like in the 0 to 50 million dollar pre exit
you're like
you're like so emotionally tied to your business
it's not even like
it's like an extension of your identity
it's just such a different like
ride versus you've exited and now you need to like
you know be a professional right
like yeah
and this is a business and like
all those things I think I was really fortunate
the boss that I had when we were acquired
Steve Cornell he was amazing
and I remember we had a review and he was like
what do you think you need to work on
and I was like I think I need to like
learn how to actually like
like put pivot tables together
and like
analyze the sales data and he was like
the fuck are you talking about
he's like that's crazy
like that's what analysts do like
and I was like okay
I think I could be more professional
like I'm a hugger
I can't really put a Powerpoint deck together
I like
swear in business meetings
and he was like he was like
no you need to keep being exactly you
like so
I just feel very lucky
to have been surrounded by people who are like
keep being you
and not trying to make me something I'm not
and that's you know
what I hope I could do for people who work for me
and what I think everyone should be striving for
if nothing else is just like
at least showing up authentically as yourself
yeah if you've done that
you've done more than what most people are doing
so yeah
where I think you're evaluating acquisitions for craft
and in the health and wellness space
anything that you've Learned about what some of these
acquiring these emerging brands
and is there anything that you've kind of seen
can consistently miss
well I think it's just like
two different skill sets right
like I'm not the person to like
run the you know
price elasticity test
and know exactly what's gonna happen
and be able to forecast and all this stuff
like it's a bit of an art and a science
like I feel like
you know entrepreneurial businesses are very like art
it's more like intuitive
it's more of an art
and you have a pulse on your business because it's like
an extension of yourself right
and then you get into more of a corporate
bigger environment it just becomes more of a science
so it's like you know
the forecast is happening earlier
the forecast is more important
it's not almost as important as what you do in revenue
just that you hit your forecast
like they'd almost rather have you do less in revenue
and hit your forecast
than do more in revenue and not hit your forecast
so it's just a different and then it's a lot of like
like fighting for resources which
you know
the resources are constrained as an entrepreneur
as well but you at least can make quick decisions
I think in a big organization
it's a lot of like
justifying people needs justifying marketing needs
it's just a lot of resource management
whereas that resource management
in an entrepreneurial organization happens like
just ongoing it isn't like a big pre planned
you know discussion
it's just happening in real time
or maybe lucky enough to be in a position
where you guys were with Primal Kitchen
where they're seriously exploring an exit
have some interest from one serious party
or maybe a few just looking back now
and you've gone through that full process
what
what should founders kind of be keeping top of mind
as they're going through this exit evaluation process
yeah I mean
I think the days of like oh
we're a hockey stick growth
but we're losing $20 million a year are kind of like
over so I think there is just
and it has been over for a while right
like I think there's just a lot more emphasis on just
unit economics
and the viability of the business long term
I mean
we had 2 million of EBIT on 50 million of revenue
when we sold so we weren't
you know rolling in cash by any means
but we were at least like
fiscally responsible because
what's gonna happen
when you go to sell your businesses
some team of analysts is gonna look at your business
and say like
where are the synergies
how can we make this more profitable
and where is the growth gonna come from
so you just need to be able to present a business
that shows that there are either synergies
or growth opportunities
that warrant the purchase price
more or less yeah
I mean it's pretty simple at the end of the day
so when we sold to craft
we had never done a dollar through the register
at Whole Foods or sorry
at Costco Walmart
or target so we had just a ton of distribution
white space available
in terms of what these strategics or
you know these bigger growth
equity PE type groups
are the things that are most important to them
in terms of what they're looking for in an acquisition
that maybe you know
I mean I think it's like
they're so varied in their theses is so
and it's all so dependent on like
so many variables at play
I think like
the truth is you just
it's like it's just like marriage
like it's like finding a person who
you want each other equally at the right time
in both of your lives so like
you might meet a PE fund that's like
we're not interested but the truth is like
they don't have any dry powder left
and they're in the middle of raising their next fund
or like you know
or there's certain funds
that have a very strict thesis going in
we write one million dollar checks
we only write at valuations of 10 to 12 million dollars
you know we want
we don't want to be anybody
we have it has to be pre revenue or seed
or there's people who are like
we deploy a minimum of $150 million
we want a business that has a founder owner
and doesn't have a lot of P around the table
other P
and we're gonna do a structured buyout and own 60
70% of the business I think
there's just so many different options out there
it's all hard and it's about like
finding the right people for where you're at
when we were talking about your experience at summit
you were talking about how you had mentioned that um
you had hoped that that
that they would buy good culture
that especially got you excited about
I mean I think like
everybody wants to buy good culture right
like I don't think there's any like
big magic there but
or big any big secret right
I think looking at that business
there's like
a great manufacturing cottage cheese is hard to do
there's not a lot of manufacturers in the United States
so there's a little bit of a mode around the product
I think they created like
a great cultural they kind of like
created cottage cheese to be quite honest
like nobody was talking about cottage cheese
and they like
had a bunch of stuff go viral on TikTok and kind of
like
turned cottage cheese into the new cauliflower
although cauliflower bleeped and died a long time ago
but so I just love the brand
I love Jessie
I think the founders over there is amazing
and for for what the thesis was at summit
they were big enough there aren't a lot of like
businesses who haven't it transacted
that are big enough
and could support an EBITDA multiple right
like most businesses
if they are big they don't
they can't support an EBITDA multiple or
you know so anyway
it was a good fit for a brand
like for a business
for a P firm that wants to buy a big company that needs
for sure yeah
that totally makes sense yeah
last question for you Morgan
outside of the clear protein beverage space
you obviously know CPG very well
any particular brands in general
or just categories that you're kind of
oh there's a lot of interesting stuff out there
companies trends
I don't know I mean
the seed oil movements really funny because we like
kicked it off in 2,015
and I feel like it's having its moment now
so I think what's going on there is fun
I like uh
that smash company that I buy their jelly now
like I think kind of innovated in a super
just kind of sleepy category so that's fun
that's a great brand it's really good brand
smash is fun yeah
I should be I like sunny
I don't know if you know Sunny Snacks
but they're like a yeah
yeah yeah
I like them I like that product yeah
my wife buys those through um
what's it called Imperfect Produce
Misfits here and there yeah yeah
um a lot of cool stuff
well yeah
Morgan this has been awesome
um what's the
what's the best place for people to follow along with
everything that you're working on
and then what's the best place these days
for people to follow along with the way brand
as well yeah
you can go buy whey at target uh
Whole Foods or sprouts
um and I
we're at Drink Whey w a a y
on Instagram and TikTok
and then I'm just Morgan Zanotti on social media
I don't have it on my phone
but I log in every once in a while and check it
they post for my account but yeah perfect
thanks Adam
Awesome
appreciate the time this has been awesome
I think that's the pub great
in some of the M&A role to a certain extent
some of these bigger operators kind of
what what have you felt like you've Learned
a lot of founders and operators may not actually know
what was it about that good culture opportunity
from a launch standpoint you sold way into Whole Foods
walk me through kind of what those
that could do carbonated protein beverages
we've already moved to a new command since then
the key variables that were top of mind for you
variables you were playing around with
I think part of the reason I didn't launch for so long
the message for women the
has been super restrictive
I mean I think
the protein arms race is maybe good way to put it where
I think you went from local Whole Foods tests in
where does the brand sit and is there a difference
are you thinking about d to C and
the Primal Kitchen experience for
just circling back to the procurement stuff
I mean I think like
you've definitely been in
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