# #49 Scaling Health-Ade Kombucha's Operations with Co-Founder Justin Trout

- Show: [The Startup CPG Podcast](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast)
- Published: 2022-06-21
- Length: 51m
- Episode: 26
- Page: https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-06-21-49-scaling-health-ade-kombuchas-operations-with-co-founder-justin-trout
- Listen: https://share.transistor.fm/s/62dabe72

## Summary

Justin Trout, co-founder and former COO of Health-Ade Kombucha, details the company's scaling journey from a farmers market stall to nearly 50,000 retail doors. He explains the strategic decision to self-manufacture due to unique fermentation requirements, the operational challenges of managing a large labor force, and the critical pivot to extending product shelf life to stabilize production. Trout also discusses overcoming a massive supply chain disruption during a major Costco launch and the implementation of an ERP system to replace spreadsheets.

## Chapters

- [0:03](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-06-21-49-scaling-health-ade-kombuchas-operations-with-co-founder-justin-trout#t=3) Introduction and Justin Trout's Background
- [3:35](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-06-21-49-scaling-health-ade-kombuchas-operations-with-co-founder-justin-trout#t=215) Defining Roles and Early Operations Structure
- [9:34](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-06-21-49-scaling-health-ade-kombuchas-operations-with-co-founder-justin-trout#t=574) Scaling Facilities and the Self-Manufacturing Decision
- [19:00](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-06-21-49-scaling-health-ade-kombuchas-operations-with-co-founder-justin-trout#t=1140) Transitioning from Technician to Manager
- [24:02](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-06-21-49-scaling-health-ade-kombuchas-operations-with-co-founder-justin-trout#t=1442) Solving High Turnover via Shelf Life Extension
- [30:34](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-06-21-49-scaling-health-ade-kombuchas-operations-with-co-founder-justin-trout#t=1834) Supply Chain Crisis and the Costco MVM Launch
- [39:02](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-06-21-49-scaling-health-ade-kombuchas-operations-with-co-founder-justin-trout#t=2342) Hiring Criteria and ERP Implementation
- [49:25](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-06-21-49-scaling-health-ade-kombuchas-operations-with-co-founder-justin-trout#t=2965) Advice on Margins and Profitability

## Topics

- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)
- [Sourcing & supply chain](https://hardwarepodcasts.com/topic/sourcing-and-supply-chain)
- [Hiring & workforce](https://hardwarepodcasts.com/topic/hiring-and-workforce)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Factory operations & automation](https://hardwarepodcasts.com/topic/factory-operations)

## Most relevant to

companies scaling up

## Mentioned

- Health-Ade Kombucha (company)
- Costco (company)
- First Beverage Group (company)
- LivBar (company)
- UCLA Anderson (company)
- The E-Myth Revisited (other)
- Measure What Matters (other)
- Essentialism (other)
- Crossing the Chasm (other)

## Related episodes from other shows

- [Health-Ade Kombucha: Daina Trout (2020)](https://hardwarepodcasts.com/podcast/how-i-built-this/2023-01-09-health-ade-kombucha-daina-trout-2020) (How I Built This)
- [Brewing up Growth by Building on Heritage with Sprecher Brewing CEO, Sharad Chadha](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2022-04-12-brewing-up-growth-by-building-on-heritage-with-sprecher-brewing-ceo-sharad-chadh) (Manufacturing Happy Hour)
- [Dang Foods: Vincent and Andrew Kitirattragarn](https://hardwarepodcasts.com/podcast/how-i-built-this/2022-01-24-dang-foods-vincent-and-andrew-kitirattragarn) (How I Built This)
- [How I Built Resilience: Kara Goldin of Hint](https://hardwarepodcasts.com/podcast/how-i-built-this/2021-04-01-how-i-built-resilience-kara-goldin-of-hint) (How I Built This)
- [Guayakí Yerba Mate: David Karr and Chris Mann](https://hardwarepodcasts.com/podcast/how-i-built-this/2022-11-28-guayaki-yerba-mate-david-karr-and-chris-mann) (How I Built This)

## Citing this page

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