Native's Manufacturing Growth
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A story about how Native Deodorant scaled their manufacturing while significantly reducing costs.
"When we launched the business, it cost $5.50 to make a stick of Native deodorant and we were selling it for $12. In our first 6 months, we lost our original manufacturer - they just said 'I'm going to stop making this.'
We found another company working out of an 800 square foot facility. It was perfect for us because when we called them saying we wanted to order 1,000 units a week, they said that's fine. Other manufacturers we spoke to wanted 100,000 units minimum out of the gate, which we couldn't afford.
The new manufacturer brought our costs down from $5.50 to $3.20. We went from making 1,000 units of deodorant a week at the beginning of 2016 to making 21,000 units a day by mid-2017. Our costs came down to substantially below $2.
What was amazing is we found a manufacturer that really grew with us. They moved from an 800 square foot facility to a 20,000 square foot facility, then to a 40,000 square foot facility. Rarely do you find service providers that grow with you - usually you outgrow them and they don't make the infrastructure changes needed, forcing you to find somebody new."
Moiz Ali
Moiz Ali is the Founder of Native. Launched in 2015, Native is the fastest growing CPG company in the United States, and has over 1 million customers nationwide. The company was acquired by Procter & Gamble for $100 Million in November 2017, the first acquisition by P&G in nearly ten years. Prior to founding Native, Moiz was the Founder and CEO of Caskers, a flash sales site for spirits. Moiz graduated from Harvard Law School in 2009. In addition to his work at Native, today he is an active investor in over 100 startups, and a speaker on stages across the world.