Specialty Food Magazine

FALL 2016

Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.

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™ sausage & chickpea stew mix ™ southwestern Bold flavor in easy home cooking C E L E B R A T I N G S O U P E R Y E A R S ! Homemade in minu tes Made with Natural Ingredients Winter Fancy Food Show Booth 342 How quickly were you able to scale up from where you started? We did something kind of interesting. We actually built a media consortium group with an equity stake in the company. Big media companies like I Heart Radio and others actually own a piece of Direct Eats. The idea is that instead of raising tens of millions of dollars and turning around and spending it on media, we actually had the media compa- nies give us tens of millions of dollars imme- diately. That allowed us to push and drive the brand out of the gate. I used to work for a media company, Nonprofit Sponsorship Network, and the contacts I made there led to this partnership. What was your strategy with your recent acquisition of Abe's Marketplace? Abe's is actually the first of many acquisi- tions that we have planned. We're going to buy subscription businesses, we're going to buy media companies, and other e-commerce companies. Our purpose is to consolidate, to become a central point for each individual maker to reach the maximum audience. So far we've seen significant growth rates, quarter over quarter, with customers coming back. What's the process for looking for vendors? We reach out to companies (such as Winking Girl Tomatillo Foods, Organico Bello, and Acalli Chocolate) and help them understand the value, understand that we're going to be the definitive source or hub or aggregator to sell online. [Many] have zero brand-recognition and [the key component] is helping them to understand quickly how we're here to help them in a significant way. I believe in what these makers are doing. They've worked hard to create this great cookie or great granola or great hot sauce. They need an opportunity—a mar- ketplace—to help the country see what they've created. With big-name retailers, as soon as they find it's a hot product, they slap q&a 46 ❘ SPECIALTY FOOD MAGAZINE specialtyfood.com

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