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To figure out production for his nut butter, Justin Gold studied salsa companies. He reasoned that they used similar glass jars, labels, and fillers. This adjacent-category thinking helped him identify suppliers and manufacturing processes when direct industry information was scarce.
Inspiration for brand execution can come from entirely different product categories. The Gruuns founder modeled his company after Dr. Squatch, aiming to replicate their success in making a mundane category (soap) fun and relatable, but within the often intimidating supplement industry.
To overcome early capital constraints, Beryl Stafford formed an LLC with Justin's Nut Butters. They shared a commercial kitchen, employees, and even a bookkeeper, allowing both nascent CPG brands to scale operations affordably.
To identify their first retail targets, the founders analyzed the wholesale account lists published in the catalogs of similar, established brands. This scrappy tactic allowed them to efficiently find stores that were already proven to carry products appealing to their target customer.
Needing a larger kitchen for his squeeze pack machine but unable to afford it alone, Justin Gold partnered with another local CPG brand, Bobo's Oat Bars. They shared the facility, employees, and costs, manufacturing their products on alternating days to scale affordably.
Breakthrough product ideas often originate from observing successful patterns in completely different product categories and asking how that success could be adapted to your own market, as seen in the creation of Cool Ranch Doritos.
The concept of arbitrage—exploiting knowledge advantages between markets—can be applied to marketing. By asking 'What would a juice brand do in the shaving category?', marketers can find novel solutions by applying successful tactics from one industry to another with different dynamics.
Instead of focusing solely on capital, founders should bring on an experienced industry advisor. This person's relationships with major retailers can unlock distribution channels and strategic growth, as seen with Justin's Nut Butter, providing more immediate value than just a cash injection.
The key inflection point for Justin's Nut Butter wasn't its recipe but its introduction of single-serve pouches. This format innovation unlocked new use cases (hiking, biking), highlighting that packaging and delivery can be more impactful than the core product itself.
To create its complex non-alcoholic cocktails, Curious Elixirs had to first partner with food scientists to invent foundational ingredients, like non-alcoholic gentian extract, that didn't exist. True category creation required building the supply chain, not just the end product.
When contract manufacturers rejected making his nut butter squeeze packs due to allergy liability, Justin Gold saw an opportunity. He realized this barrier to entry meant that if he could build the manufacturing capability himself, he would face little to no competition.