INDEX

account buyers, connecting distributors with, 52

account executives, in brokerage, 106

Acosta, 107–108

ad slick, 43, 163

ads, 129–131

restrictions on changes, 25–26

aluminum-packaged products, 21

Alzheimer’s disease, aluminum and, 21

Amazon, 56

ambassador team for brand, 132–134

antioxidant, 163

Argo Tea, 3–4

packaging, 20

As Advertised, 163

As Advertised coupons, 129

attention, for new items, 32–34

authorization, 68, 85

obtaining from WFM, 87

Avakian, Arsen, 3–4

back order, 164

bar code, 26, 164

Bontouhi, David, 142

bonus program, 157

boutique brokers, desperation of, 98

BPA (Bisphenol A), 21

brand, 164

brand ambassador team, 132–134

brand awareness, demos for, 128

brand recognition, 62

brand share, 164

breakout DSD items, 63

broadline distributors, 39

broker account executives, 99

broker burn, avoiding, 103–105

brokers, 93, 95–114, 152–153, 164

agreements with, 110–113

avoiding being broken by, 101–110

boutique, 98

competition and, 109

development or launches and, 96–97

disclosure of account list, 105–106

evaluating visits to retail accounts, 107

pay on performance for, 108

percentage or retainer charges, 109–110

products represented by, 108–109

questions for potential, 98–99

research on, 102–103

staffing levels, 106

business, valuation, 145–149

business plan, see game plan

buyer, 164

accessibility to, 107–108

valuation from perspective of, 147

Calabasas Capital, 142

calendar, 165

canned products, 20–21

capital, raising, 142–143, 144

case count, 165

cash flow, 13

categories, splitting brand between, 78

category, 165

growth vs. shrinking, 14–15

category review, 59, 84–85, 165

for WFMs, 90–92

ceiling signage, at trade shows, 118

certification of product, 22, 24–26

charges of broker, percentage or retainer, 109–110

Chu, Judy, 136

coaches, 143–144

cold calling, 54

Cold Front Distribution, 60

communication, 89

competition

and broker account, 109

packaging similar to, 12–13

price points, 13–14

vs. product, 11–12

removal of your shelf tag, 71

studying, 8

contacts

from trade shows, 116, 119–120

value of, 138

co-packer, 29

Core-Mark, 48–49

costs, 2, 74

for broker, 109–110

C-stores (convenience stores), 48–49

Cuban, Mark, 57

customers, first experience, 132

cut-in, 69

day-to-day activities, letting go of, 155

delivery of product, punctuality for, 39

demand

and distributor interest, 37

for product, 15–16

demo kits, 133–134

demos

minimum product purchase for, 127

setting limit, 128–129

design work for packaging, 20

development, 57–58

brokers and, 96–97

differentiation, 11–12

direct sales, 58, 64–65, 165

website for, 64

direct sales distributor (DSD), 59–64, 166

advantages, 61–62

disadvantages, 62–64

discounted sales, 14

discounts

avoiding endless, 126–127

for distributors, 38

ending, 131

discretionary income of seller, 146–147

distributor codes, from UNFI, 44–45

distributors, 35–66, 166

connecting with account buyers, 52

Core-Mark, 48–49

easy or tough, 36–37

function of, 36

KeHE, 46–48, see also KeHE

McLane, 49–50

minimum order requirements, 63

Nature’s Best, 41–43, 167

networks, 39–50

out of product, 72

requirements of, 37–39

sales reps of, 50–52

trade shows, 51–52

UNFI (United Natural Foods, Inc.), 43–46, see also UNFI (United Natural Foods, Inc.)

Dora’s Natural, 60

Dragon’s Den, 139

DSD, see direct sales distributor

(DSD)

EAN (International Article Number), 170

EBITDA (earnings before interest, taxes, depreciation, and amortization), 146

e-commerce website, 65–66

ego, and overvaluation, 139–141

employees, samples for, 70

end caps, 127

energy shot market, 14–15

entrepreneur, 166

equity, 136

expenses, discretionary, 146–147

expert on product, becoming, 8

expiration date of product, 55–56

eye-level placement, 68

Ezekiel, 15–16

face-to-face meetings, 86

competing with department heads for, 81

fads, 15

family, start-up funds from, 135

Fancy Food Show, 123–124

first impressions of brokers, 106

5-hour ENERGY, 63

fliers for trade shows, approval for, 120

Food and Drug Administration (FDA), 166

website, 21

formulations, 38–39

free-fill, 89, 125–126, 166

Frozen Gourmet, 60

future income, present value of, 147–149

game plan, 135–149

presenting realistic valuation, 139–142

selling or expanding, 138–139

strategic vs. logical action, 152–154

gaps in distribution, 99, 100–101

Gardein (vegan line), 33

genetically modified organism (GMO), 23–24

geographic organization of sales, 155

glass bottles, for Argo Tea, 20

global review strategy, 91

goals, of sales team, 157

good placement, 68–70

growth of category, 14–15

GS1, 26–27

guaranteed product, 38

HBC (Haralambos Beverage Company), 60

holiday SKUs, 33

hotels, for trade shows, 119

independent chains, 79–80

ingredients

on sales sheet, 53

sources, 38

innovation, importance of, 10

in-store ads, 130

insurance, 58

International Article Number (EAN), 170

investment banker, 143

investors

interest of, 141–145

perspective of, 142–145

IRMA (WFM data site), 85, 166

Island Fresh, 60

KeHE, 33, 46–48, 167

discounts for trade show, 117

Nature’s Best acquisition by, 42

Summer Selling Show, 40, 47–48, 122–123

kosher, 22, 24–25, 167

labels, 22

launches, brokers and, 96–97

liability insurance, 37–38

lids, problems from changing, 29–31

Lipari Foods, 60

Los Angeles Distributors (LAD), 60–61

lost orders, 71

Lum, Leslie, 142

magazine ads, 130

mainstream stores, transition to, 151

major accounts, time for landing, 81–82

market, learning about, 9–16

McLane, 49–50

merchant chargeback (MCB), 126, 167

Michael’s Perfect Pickles (example), 7, 98–99, 151

brokers and, 104

packaging, 19–20

variations, 32

midseason replacements, 99

mistakes, of natural food manufacturers, 1–2

MorningStar Farms, Grillers Prime, 34

Natural Choice, 60

natural foods business growth, 115

manufacturers’ mistakes, 1–2

secrets to, 3

Natural Foods Expo East, 122

Natural Foods Expo West, 58, 115, 121

natural foods industry, 161

Nature’s Best, 41–43, 167

KeHE acquisition of, 42

net present value, 148

net sales, 168

new items, attention for, 32–34

new product display, at trade shows, 118

New York Times, 146

99 Cents Only Stores, 14

non-GMO, 22, 23–24

Non-GMO Project, 167

non-performance contract, structure, 104

nontoxic cleaner, 11

nutritional breakdowns, 38

OAK (KeHE online site), 48

off invoice (OI), 167–168

“Oprah Hot List,” 131

orders, lost, 71

organic, 22, 168

USDA, 22–23

organizing for sales, 155–156

overstock, avoiding, 56

overstock sites, 14

owners, of shelf space, 76–77

packaging, 19

avoiding change in, 25–26

for Michael’s Perfect Pickles, 19–20

regulations, 22

similarity to competition, 12–13

pallet purchases, 64

paperwork, 37

pay, for brand ambassador, 133

pay on performance, for broker, 108

percentage of units shipped, 168

physical presence in stores, 70–72

PO, see purchase order (PO)

pre-sales, UNFI requirement of, 44

present value of future income

(PVR), 147–149

presenting, realistic goals for, 90–91

price point, 13–14

price sheets, 39

product

vs. competition, 11–12

demand for, 15–16

ingredients on sales sheet, 53

product delivery, punctuality for, 39

product expert, becoming, 8

production timeline, and problems, 31

promotion, 168

proof of success, 45

punctuality, for product delivery, 39

purchase order (PO), 86, 87, 168

PVR (present value of future income), 147–149

recalls, 21, 29–31

regional sales managers (RSMs), 153, 159

regions, approvals from WFM buyer, 89–90

relationships, at trade shows, 120

renters

high-performance-or-you-are-“out” traps, 75–76

of retail world, 73–74

sales minimums for, 75–76

replacements, midseason, 99

research, on brokers, 102–103

reset, 59

delay of, 72

retail accounts, evaluating broker visits to, 107

retail managers, broker information from, 102

retailer ads

cost of, 130

restrictions on changes, 25–26

retailers, 82

demands, 126

distributor connection, 35

physical presence in, 70–72

profits from naive renters, 75

protocols for activities, 69

relationships with, 30–31

relationships with employees, 77

revenue from vendors, 129

transition to mainstream, 151

visiting, 54–55

retainers, for broker, 109–110, 114

RSMs (regional sales managers), 153, 159

sales

data, 82–83

discounted, 14

minimums for renters, 75–76

organizing for, 155–156

sales director, 97, 159

sales displays, 127

sales reports, from Nature’s Best, 42

sales reps, of distributors, 50–52

sales sheets, 119

customizing, 53

sales team, mission of, 157

samples, 132

for employees, 70

San Francisco Chronicle, 4

schematic, 168

seed capital, 142

Select Nutrition, 60

seller, discretionary income, 146–147

selling potential, maximizing at trade shows, 119–120

sell-through, 131–132, 168

senior VP of sales, 158

setup fees

of distributors, 51

of Nature’s Best, 43

7-Eleven franchise stores, McLane and, 50

Shark Tank (TV show), 136, 139

shelf life, 55–56

shelf space, 67–93

allocation, 14

constant watch, 70–72

good placement, 68–70

owners of, 76–77

shelf tags, 69

shrinking category, 14–15

signage at trade shows, 118

SKU (stock keeping unit), 27, 169

having enough, 78

launching multiple, 31–32

for Nature’s Best, 42–43

slotting fees, nonrefundable, 75

small business, information for, 136

small chains, learning in, 78

Specialty Food Association, 123

specialty products, direct sales distributor and, 63

specifications, for shipment, 28

spices and herbs, number of SKUs for launching, 33

spiff, 133

SPINS, 82, 169

Sprouts Farmers Market, 79, 129

store layout, 17–18

store locator, on website, 65

stores, see retailers; shelf space

Stuffed Turk’y, 33–34

super fruit, 169

tabletop shows, by UNFI, 45, 123

Target, 33–34

target market, 10

Taylor, Barbara, 146–147

time requirements, for filing PO, 89

TO, see turnover (TO)

trade shows, 115–124

broker support for clients, 109

commitments to, 39

contact information from, 116

distributors and, 56–58

Fancy Food Show, 123–124

KeHE Summer Selling Show, 40, 47–48, 122–123

selling potential, 119–120

Natural Foods Expo East, 122

Natural Foods Expo West, 58, 115, 121

opportunities in, 116

preparing for, 53–54

reducing costs, 116–119

signage at, 118

UNFI Tabletop Shows, 45, 123

training, for brand ambassador, 133

trends, 15

turnover (TO), 40, 67, 87, 170

for Nature’s Best, 41

and stock in UNFI distribution center, 92–93

for UNFI, 46

understock, 56

UNFI (United Natural Foods, Inc.), 33, 43–46, 170

codes, 86

delivery appointment at, 87–88

discounts for trade show, 117

product shipping through, 88–89

Tabletop Shows, 123

unfunded sponsor, 143

UPC (Universal Product Code), 2, 26, 170

KeHE coding by, 47

no changes to, 27–29

USDA organic, 22–23

U.S. Small Business Administration

(SBA), 136

valuation

of business, 145–149

presenting realistic, 139–141

VP West Coast/East Coast, 158–

159

want-a-preneur, 170

warehouse space, UNFI and, 45

website, e-commerce, 64, 65–66

WFM (Whole Foods Market), 15, 79, 84, 170

category review, 90–92

getting on shelves of, 85–90

Sprouts, 73

UNFI as distributor, 46

Winfrey, Oprah, 131

written agreement, 137–138