Large family whale decided to start the business when her Bank account was almost empty, the property taken as a mortgage and a father ill with cancer. Now they are a company that produces protein bars, worth $300 million, writes Forbes.
Does the whale slowly rolls wooden rolling pin a lot of peanut butter, honey, cranberries and chocolate chips, and then cut the layer into four-inch rectangles. She used to do it a lot faster.
14 years ago, when the family kit just started to sell protein bars with peanut butter, she, along with her brothers and sisters worked through the night to cope with all the orders.
Her wavy light blonde (like almost all members of the family kit) hair tucked under a hairnet.
At first, the family kit, consisting of parents and 13 children, there was virtually nothing but enthusiasm. Bank account? Almost empty. Property? Taken out a mortgage. Father was sick with cancer.
He and his brothers and sisters was only a recipe for protein bars with peanut butter, which long ago came up with their father bad kit. In addition, all who though something understood in this kind of business, told them that their idea is doomed to failure.
Protein bars Perfect Bar were really good, but they need to be stored in the refrigerator. This meant that in supermarkets they would have occupied valuable space on the shelves of refrigerated cabinets, which could be reserved for yogurt or cold meats. At the same time bars of other manufacturers are usually sold in different departments. Place the bars of the whale family alongside the other protein bars would be so stupid as to sell cheese in the cereal aisle.
“Few entrepreneurs started to do business, to save his family from starvation, — said Wayne Wu, a partner at private investment company VMG of San Francisco, which in 2015 became an investor Perfect Snacks. Now this is a story about a real American dream. However, the success really came to him suddenly”.
Overnight or not, today this company definitely managed to achieve great success. Sales Perfect Snacks for 2018 was $84 million, Forbes estimates the market value of the family business in $300 million.
The company manufactures protein bars with 16 different flavors. They are sold at $2,49 in more than 27,000 supermarkets across America, including in large organizations, like Target, Walmart, Kroger and Trader Joe’s.
Bad Keith came up with a signature recipe for protein bars in 1990-ies. He worked in the office and engaged in the sale of juicers Jack Lalane, American TV presenter and fitness guru. He then decided to leave her job to become a promoter of healthy lifestyles and seller of food additives. Work suggested frequent departures, but to be separated from wife and children (at the time there were seven of them) a whale is not wanted. So the family Keith went to a big trip in a six-meter trailer Dodge. At that time bad Keith came up with a recipe for granola bars with peanut butter. To make them more nutritious, he added to them protein powder, the sale of which he was then engaged. Sometimes his children sold the bars on the street to earn pocket money. In one particularly good year they have earned on their sale is about $2200. The money family Keith went to Disneyland. Bad kit is also sometimes put the bars in the box with the order as a gift to customers.
When the family got the thirteenth child, Bud and Barbara Keith bought a small hotel in the small town in Northern California. However, they are still financially depended on lectures about healthy way of life that was reading bad. When he was 57 years old, he was diagnosed with skin cancer. By 2005, the disease has worsened so much that he had to stop to go with lectures in different cities. Soon the family kit has accumulated a mountain of unpaid medical bills. In addition, they have defaulted on the mortgage for two months. Their Bank account was only $1,000, and nine of the thirteen children were minors.
When the health Bud kit has deteriorated, the older children had to take care of the family. 22-year-old bill Keith, who at the time was at College with the Redwoods and successfully played on the basketball team, had to quit school. Open a business he then helped an 18-year-old brother Amias, 19-year-old sister Lee and 17-year-old sister Charisse (she now holds the position of senior operating officer Perfect Snacks). They decided not to follow the traditional approach to enterprise business and forget about the fact that their father 10 years tried unsuccessfully to open a business.
The first rule of business: you need to attract working capital. Bill, Amias, Lee and Charisse quickly sold the hotel. After taxes they have $100 000. Two-thirds of this amount was spent for the purchase of used machines for the packaging of bars. The remainder for the purchase of peanuts and honey.
Then they focused on business development. Bad kit with some of the children moved to his hometown of San Diego (he died of cancer in 2009). Lee, bill, Amias and Charisse remained in Sacramento. They lived four in a one bedroom apartment. Bill Keith traveled throughout the Western United States and advertised protein bars the Perfect Bars in stores organic food and supermarkets. Lee, Amyas and Charisse was responsible for their home production.
The spark that started it all
By 2006, family Keith had made great progress. A year after starting business they have only a small amount, sufficient to Finance only one month of work. Then bill Keith went to music & art festival in Northern California, where they accidentally met with the Manager of the supermarket Whole Foods, which is very much a product of the company. It is suggested that the customers of the supermarket Whole Foods so will appeal to the concept of protein bar with no preservatives, they are curious, come to the refrigerator and will buy at least one pack.
Due to this the company Perfect Snacks got the chance 30 days to sell your product in the supermarket Whole Foods in Berkeley. Bill Keith worked as a promoter in the supermarket. Since he had no money to rent a hotel room for a month he slept in the car and took a shower in the gym. This month sales of the company Perfect Snacks was $20 000. This amount was more than the entire revenue for the previous six months. In this regard, the leadership of Whole Foods decided to put protein bars are Perfect Snacks on sale in ten stores in Northern California.
Bars that have become iconic
Two years later, the Perfect Snacks revenue increased to $1 million Then the company signed a contract with a network of self-service warehouse, Costco. In 2015, the leadership of the Perfect Snacks attracted funding from the investment company VMG. With the extra investment family Keith was able to instruct the manufacturers of protein bars larger orders and, in turn, receive more large orders from supermarkets. Then sales really started to grow.
At the opening of business the Keith family, which still owns a controlling stake in the company, risked everything. Now the user Perfect Snacks chose a more cautious strategy. Instead of launching brand new products in Perfect Snacks has created a line of little protein bars are Perfect Kids that fit in lunch boxes of students, and a range of chocolates Perfect Bites sold in containers with a lid.
According to the forecasts of the family of Keith, by the end of 2019 sales of Perfect Snacks to reach $130 million, the company Therefore engaged in the search for new cargo refrigerated vans to cheap carriage of goods. In connection with the growing demand for fresh food the number of truck drivers has declined and transport prices have risen.
In addition, the user Perfect Snacks trying to convince store owners that the refrigerator with their protein bars should be in a different place. Now the bars are Perfect Bar usually lie on the shelves of refrigerated cabinets in the departments of dairy production. However, entrepreneurs wish they were sold in a small refrigerator next to the cash register. In such refrigerators it is now possible to see the energy of Red Bull.
“We have an unusual story, a great product and people who are willing to work hard to ensure that our bars are iconic for entire generations, — said Lee Keith. The time for rolling pins left. But we have only just begun.”