Conference call took place tonight. Very infomative overall. After speaking with him, a lot of light was shed on the what it takes to bring a food/beverage item into chain grocery stores. The big take away was “Even if you build a great mouse trap, you can’t guarantee the people will come”. The big challenge will be manufacturing, distribution, and marketing. It may be a more invovled venture than we originally though. A more thorough marketing study may be needed to verify the feasibility/profitability of this product. Below shows our original list of questions, and below them is the answers from Mike in blue font.
-Chris
Question/Topic List
- What is your experience in the food and drink production/processing industry?
- What are some barriers to entry?
- Access to quality/cheap water source (raw materials in general)
- Retailers exist to lease space to vendors (Grocery stores are more of a RE business)
- kickbacks, forced marketing programs, product placement on shelves
- Beverage Industry is a very croweded one
- May have to goto smaller stores
- Delivery method to stores can be a challenge
- Cannot assume a good product will be seen by public
- Established companies will make sure they dominate shelf space
- This has forced smaller companies to market through the internet, small retailers, etc.
- Dealing with kickbacks, pecking order (ankle level first)
- In creating a new product, is it wise to consult the help of a professional lab?
- Find a co-manufacturer to work with, and would be a good idea to private label
- get manuf, marketing and distribution system in place
- Competition is prevalent in the drink mixer category, we are going to try to differentiate through the use of Sugar Free (only done successfully by one other compeitor – Baja Bob’s) and through strategic marketing? Is this enough in your estimation?
- Are their any resources to do a peer group study of new product ideas?
- What is your opinion of private labeling an existing product and focusing more on the branding and marketing instead of worring about manufacuturing and quality control issues?
- Mike has done it with a beer and gave it an Indian name
- margins were good, tested for 2 years, bottling company when out of buisness
- Schlafly wants guarantees, etc before working with them
- Supplying company has to be able to support the volume generated
- Guy in KC has a virtual company,
- 3 marketing people, no offices, etc
- undercuts private labeling competition at SafeWay, Aldi’s, Shop ‘N Save, etc
- negotiates contracts, made to spec, guarantees pick up times
- no upfront money tied up in equipment, salaries, RE, etc.
- uses manufacturers to produce product
- Would be a good way to start to see what possibilities are
- Don’t fully expose full nature of idea, just gather info
- Try to get 2-3 manufacturers to bid on the job
- Mike has done it with a beer and gave it an Indian name
Follow up: Conference call with John in near future? He is attempting to become “the hot dog man of St. Louis”
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Mike Meinzen’s Profile
Relation: Dominique’s Father
Experience: ER Doctor, Owns India’s Rasoi Restaurants, Owns 5 gas stations, Others…
Contact Info: 636.458.4380 (home) 636.346.4851 (mobile)
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