The Startup CPG Podcast · 4 Mar 2025 · 53m · Episode 128
Mott Smith, co-founder of Amped Kitchens, and Jaime Valenti-Jordan, CEO of Catapult Commercialization Services, discuss the strategic choice between using a commercial kitchen or a contract manufacturer (co-man) for early-stage food brands aiming for their first $1 million in sales. They highlight that commercial kitchens like Amped Kitchens (used by Beyond Meat and 4th & Heart) are ideal for iteration and learning, while co-mans require standardized, industrial-grade products and high volumes to be economically viable. The guests emphasize that cash flow management and understanding unit economics are the most critical factors, as scaling often reveals hidden costs in staffing, packaging, and ingredient sourcing that can break a business if not planned for.
early-stage companies
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Sir Kensington's co-founder Mark Ramadan joins Guy Raz to advise three early-stage founders on business challenges. He helps Pat of Dripsy LLC navigate the complexities of getting a single-product sink strainer into major retail chains, Lucas of Taco Shop on how to differentiate from an impending Chipotle competitor, and Beth Benneke of Busy Baby on managing cash flow and operational costs while scaling from DTC to mass retail.
Katlin Smith, founder and CEO of Simple Mills, joins Guy Raz to answer questions from three founders about scaling physical product businesses. She advises Scott of Upcycle Foods on adapting recipes for contract manufacturers, Tim of Grumpy Dad Sauce Company on the financial risks of going 'all-in,' and Marissa of Sweet Paws on focused marketing strategies for their silicone pet products. Smith shares her own journey from kitchen experiments to a brand sold in nearly 30,000 stores, recently acquired by Flowers Foods for nearly $800 million.
Christina Tosi, founder of Milk Bar, explains how she transitioned from a pastry cook at high-end NYC restaurants like WD50 and Momofuku to opening her own bakery in 2008 with mentor David Chang. She details the creation of iconic products like crack pie and compost cookies, which were born from improvisation and a desire to make nostalgic, unfussy desserts accessible. Tosi describes scaling the business from a single East Village location to 16 shops and a national retail presence, emphasizing her decision to keep prices low and bootstrap the company for eight years before raising outside capital. The episode highlights her operational challenges, including managing supply chains for mail-order goods and expanding production capacity to support growth.
Jim Koch, founder of Boston Beer Company, joins Guy Raz to advise three founders on product-market fit and scaling. He advises Kim Jones of Tropical Vibes to build a brand story around the feeling of the tropics rather than just the founder, and to leverage direct-to-consumer channels for community building. For Lance Kessner of Millie's Sipping Broth, who is launching nationally at Walmart, Koch warns against taking expensive early-stage capital, suggesting instead that they negotiate faster payment terms with retailers to manage cash flow. Finally, he advises Amy Dana of Blay Electric to be transparent about their premium pricing and focus on customer experience to justify the cost.
Guy Raz hosts a special Advice Line episode with former guests Travis Boersma of Dutch Bros. Coffee, Michael Preysman of Everlane, and Chris Ruder of Spikeball to answer scaling questions from three callers. Andy Atkins of Bad Luck Burger Club asks whether to bootstrap to a brick-and-mortar location or raise capital, with Travis advising on cash flow and overhead. Tiffany Narbonne of T Giselle seeks advice on entering large retailers, receiving guidance from Michael on simplifying her brand story for packaging and retail displays. Finally, Peter Hauk of Rink Rabbit evaluates expanding his figure skating accessories brand internationally, with Chris and Guy advising him to focus on his rapid US growth before tackling complex logistics.
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