Feastables' Explosive Launch
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Reed Duchscher shares how Feastables, their chocolate bar company, had an unusual launch challenge with immediate mass retail distribution.
"The big issue with Feastables was retailers instead of starting small, like if you started a chips business without a creator attached, they would say 'we want to test you in 100 or 200 stores.' From a cost perspective to fund the purchase order, it wouldn't put much strain on the business.
The issue we had with Feastables was Walmart was willing to put us in all 4,650 stores right when we launched. That's becoming the issue with some of these businesses - how do you fund the purchase order of 6-8 million dollars right out of the gate to meet that retail demand? We've had to either raise capital or beg a bank to give us money as a PO loan.
Even at Feastables, we raised a small amount of capital and it was really just to fund the 4 million chocolate bars that we ended up selling in season 1 that sold out in 45 days. That was the biggest cash constraint to the business."
Reed Duchscher
Founder and CEO of Night Media, a talent management and digital marketing agency. Co-founded Feastables, a chocolate company, expanding his entrepreneurial portfolio.
Featured on the My First Million podcast, sharing insights on building and scaling niche creator businesses.