Food Entrepreneur - October 25, 2022 - 3

FOOD ENTREPRENEUR®
COMMENTARY
Non-trConsider the alternative
F
BY MONICA WATROUS
itness studios, cafes and clothing stores offer opportunities
for emerging food and beverage brands to
be discovered. Entrepreneurs should pursue such
outlets when the setting aligns with the brand.
ELAVI, a Los Angeles-based snack startup founded
by a pair of exercise instructors, recently launched its collagen
protein bites and single-serve cashew butter packets
at dozens of Life Time health clubs across the country.
Co-founders Michelle Razavi and Nikki Elliott said the
brand is part of a thoughtfully selected, wellness-driven
assortment.
" Most grocery stores are massively overstocked with
protein bars and nut butters, " Ms. Razavi said. " You kind
of get lost in a sea of your competitors, whereas the fitness
channels curate their products to only bring the best of
the best, to reduce paralysis of decision making. "
Additionally, she said, a frequent patron of a fitness
center is likely not seeking discounts or deals, which
benefits smaller-scale specialty players.
" In that moment when you're hungry, you've just
had a workout, or you need something really quickly,
you're not as price conscious, " Ms. Razavi said. " That's
been a great advantage for us to play as a premium brand
in a place where there isn't as much price sensitivity or
pressure to discount. "
Sampling products before and after group fitness
classes at Life Time locations enables the founders to
interact with target consumers and receive real-time
feedback.
" Grocery stores ... is more about getting people in
and out whereas gyms and fitness studios want to curate
an experience for their members, and we get to be a part
of that experience, " Ms. Elliott said.
Grace Cheng, founder of Los Angeles-based Mylk
Labs, described coffee shops as " prime real estate " for her
brand's grab-and-go oatmeal cups.
" What was great about it was there was no marketing
effort that needed
to be done on my
end, " she said. " All
the coffee shops have
loyal customers ... I'm
sure there were a ton
of people looking for
vegan, gluten-free options.
They're never
going to offer two oatmeal
brands. I have
no competition ...
" When I got
into it, I found out so
quickly that this is
ELAVI
how I'm going to grow my company. I stopped reaching out
to grocery stores and just started with coffee shops. From
coffee I moved on to hotels. From hotels I moved on to coworking.
From coworking I moved on to corporate offices. "
Because shelf space is limited in such venues, landing
a spot may prove challenging, and managing numerous
accounts without brokers or distributors requires a lot
of work. Still, the advantages are significant, Ms. Cheng
said, citing higher margins, stronger relationships with
her customers and complete visibility into her brand's
performance at each location. (Distributors don't always
provide reporting, so " if an account is doing terribly or
discontinues your product, you have no idea, " she said).
Some apparel chains also stock specialty food brands
near checkouts alongside other impulse items. Lauren
Chew, founder and chief executive officer of San Francisco-based
Love + Chew, recently tested her cookies at some
Old Navy stores during a monthlong period for consideration
for a national launch. Ultimately, the brand was not
selected, and, she shared in a LinkedIn post, " the 'betterfor-you'
category in general did not perform well. "
The experience provided insight into her core consumer
that will help her position the brand elsewhere, she
said, adding, " Sometimes a partnership is not a fit, and it's
better to find out now rather than launch at 1,100 stores
and then be cut later. "
Establishing and nurturing partnerships in alternaMonica
Watrous is the managing
editor of Food Business News.
Email: mwatrous@sosland.com.
October 25, 2022
tive retail channels may help a young brand gain footing
and exposure, while potentially avoiding broker and
distributor fees or the slotting fees of traditional grocery
outlets. Founders should identify the appropriate venue
with the best offering to surprise and delight the right
consumer who will keep coming back for more. ▪
Food Business News
33
Nikki Elliott, left,
and Michelle Razavi,
founders of ELAVI, at a
Life Time health club
aditional retail offers advantages for emerging brands
Food Entrepreneur - October 25, 2022

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