Latest / Imagine If with Doone Roisin | Health, Wealth & Wisdom for Women (formerly Female Startup Club Podcast) / Two childhood best friends started a froyo company, now it’s done $150M in sales, here’s what Yasso co-founder Amanda Klane attributes their success to.. (part 1/2)
Transcript
- 0:00This is Amanda Klain for Female Startup Club.
- 0:12Hello and welcome back to the show. It's Dune here, your host and hype girl. Today we're learning from Amanda Klain, the founder of Yasso, a frozen Greek yogurt company that's been putting smiles on faces since 2011. Kindergarten friends turned entrepreneurs, founders Drew and Amanda set out on a mission to create desserts that deliver on everyday indulgence with great taste, quality ingredients and superb nutritionals.
- 0:40Since hitting the store shelves in 2011 as the first to market frozen Greek yogurt, Yasso quickly became one of the fastest growing dessert brands in the world, disrupting the brand ranks of deeply entrenched competitors and attracting a loyal following of brand enthusiasts.
- 0:58In this episode, we cover the journey to building a business that does hundreds of millions of dollars in annual revenue. Yes, hundreds of millions of dollars. Can you imagine that much ice cream out on the street? It would be so big, so big. Holy moly. We also talk about how to keep the energy and excitement in a business 10 years down the track and Amanda's most important piece of advice for food founders in 2022.
- 1:25Now, before we get into this episode, and in case you haven't heard my recent announcement on Instagram, I have my very first book coming out at the end of Feb, featuring the stories and learnings from 51 of the most brilliant women from the first year on the show. And I am just so excited.
- 1:44If you are someone who might be able to help me get the word out there, or you know someone who I should talk to that can help me get the word out there, I would love to meet you. Please slide into my Instagram DMs so we can have a chat. If we aren't friends already, you can find me at Doon Roisin, which is D-O-O-N-E-R-O-I-S-I-N. Let's get into this episode. This is Amanda for Female Startup Club.
- 2:11Amanda, hi, hello, welcome to the Female Startup Club podcast. Hi, thanks for having me. I'm excited to be here. Happy New Year, by the way. I know, yes, welcome to 2022. Welcome to 2022, indeed. I'm excited for what this year is going to bring. Did you set any goals or resolutions or anything like that? You know, I have a few different things I'm trying to do this year. I have a big event I signed up for at the end of this year.
- 2:40from a mental and physical standpoint, I'm doing this Everesting challenge. So that should be fun. Pretty much have 36 hours to hike the elevation of Mount Everest, but you get to gondola down the mountain. So it's not just like physically, can you do it? I think mentally, you know, can you keep your body moving? And so it'll be a fun event. I'm doing it with some other females. Uh,
- 3:03So yeah, a lot of my year is going to be training. Wait, did you say 36 hours going up a hill and fun in the same sentence? Might not be fun. I don't know. Maybe I should remove fun until after. Yeah, I feel like you're going to have to report back on that one. But no, really, 36 hours? Is that how long you...
- 3:24You have at least 36 hours to try to complete it. It's 29,029 feet of elevation. So it'll be really fun. Great group of women doing it together. Wow. That is a life bucket list moment. That's like one of those things you're going to remember for the rest of your life. That's crazy. I'm excited for you. Thanks. Yeah, I'm excited too. Yeah.
- 3:49Really interested to see how it goes, but it'll be fun. It's in Whistler Mountain up in Canada. So never been. So it's a new place, which is part of my 2022 is just getting out there and seeing more places again. Since I think the last two years, I haven't gone too far. You've been in the house.
- 4:06Yeah. Inside one room. Most of us. Yeah. Oh, my gosh. Wow. So do you have to train for a whole year or, like, what's the training period? Yeah. I mean, started already, but they give you a 20-week training program to follow. But, yeah, I've just been getting out and moving as much as possible.
- 4:24Wow. To just get used to it. That is something. I've never even heard of that before. Go you. Congratulations. I'm excited. Can't wait to see how it goes. Appreciate it. For anyone who might not know who you are just yet, could you introduce yourself and tell us what your business is?
- 4:42Yeah, I'm Amanda Klain. I'm one of the co-founders of Yasso. For those of you who don't know what Yasso is, we create frozen Greek yogurt novelties and snacks that we sell in the ice cream set of all your conventional grocery stores. They are creamy, delicious, full of chunks of cookie dough and fudge and brownies, and they're all around about 100 calories. So it's a really great way to eat dessert and not feel bad about doing it. It's a happy, fun category.
- 5:10Yeah, I bet. So much fun. My goodness. I want to go back to circa 2009 to 2011, when this brand was just coming into the world, which is crazy that we're talking about something more than 10 years ago now. The landscape has changed a lot. What was getting you excited about starting a frozen food company and why this business?
- 5:36Yeah, so I think, you know, going back to my childhood, I kind of grew up in the food business. My dad was a food broker, which is really like the middleman between manufacturers and the retailers. So I grew up in the business just seeing different brands and I had always been kind of drawn to it. And what I had seen is just really the shift to healthier and better for you brands and in different categories throughout the grocery store, whether it was, you know,
- 5:58you know, chips and snacks and yogurt. You just saw this evolution of brands like Food Should Taste Good, Chobani, Kind, really just doing something unique and different. And for me and Drew, my partner and co-founder,
- 6:13What we saw and what we loved was dessert. But what we saw was no one was creating anything healthy. You had your diet items that were more like we always choked your grandma's items with healthy choice and Weight Watchers on one end of the category. Complete other end of the category, you had Haagen-Dazs, Ben & Jerry's, these delicious super premium ice cream that we love to consume. But as athletes and people that cared about what we were putting in our body, we weren't going to consume it all the time.
- 6:40And for us, it was how do we create something that we can eat every day, tastes delicious, feels like you're eating ice cream, but also, you know, was cleaner and healthier and lower calories and less sugar. And so...
- 6:53We were a joke kind of just like naive and dumb to some degree. We had just graduated college, didn't know what we were doing, had no idea about frozen food manufacturing, nonetheless, how to create ice cream. But we were determined. And I think that was extremely important with our athletic backgrounds. We were just if we wanted to do something, it was figure out how to do it and then make sure that you're giving it all your energy. And so.
- 7:19We went to Google and started learning, how do you make ice cream? Who makes ice cream? Where do you make ice cream? We went to Ice Cream University, which is a real thing. It was like an ice cream camp in Pennsylvania. We started just listening and learning. That was really the beginning phase of what we were doing.
- 7:41For us, Greek yogurt was taking off in the United States. Faye and Chobani had had extreme success building this category that no one had heard about. But what people started to just naturally attribute to Greek yogurt was, you know, this creamy, delicious yogurt that was lower calorie and less sugar. So...
- 7:59We were fortunate that that kind of educational piece about what Greek yogurt was had already been done. For us, it was really we had to figure out how do we create something that tasted like ice cream using Greek yogurt that gave us these better nutritionals. And so it was a fun, exciting learning process for us.
- 8:17Wow, that's so cool. Did you have the vision of like, oh, yeah, we're going to build this business and we're going to do this for the next 10 years of our lives? Or were you kind of like, yeah, like, we'll just see like whether this is a thing and go with the flow? Like, what was the kind of ambition in the beginning?
- 8:32We were like, we're going to be the biggest ice cream brand there is. I think when we put our minds to something, we were like, we're going to do this. I think we started out doing it kind of on the side because we needed our jobs to sustain our life. So we were doing it at night and on weekends. And then eventually we realized to truly do this, we have to put everything into it. And we quit our day jobs and started working on Yasso full time.
- 8:57But I think from the beginning, we always had the mentality of like, go big or go home. Like, let's make this huge or let's not make it. And I think that the time in which we launched was different than some of the brands today and that there were less avenues to sell your product, especially frozen products. So we almost had to just step up to the big leagues right away if we wanted to make it successful.
- 9:22I mean, I read something like you launched within two years into 15,000 stores or something crazy like that, which is wild. We went for it. You know, I think a lot of brands start in the natural channel or farmer's markets and, you know, then continue to grow from there. And that's a really great methodical way of of going going into business for us.
- 9:46we saw this massive void in the category and we're like, let's just go right up against the big guys day one. Again, I think sometimes our lack of just knowledge probably worked to our benefit in that,
- 10:00we were like, this will work and don't turn back. Where a lot of people with more experience in the industry is probably like, yeah, good luck with that. It's never going to be successful that way. But that was just kind of who me and Drew were. I spoke to like our competitive backgrounds. Yeah, that's crazy. Do you think that launching into 15,000 stores, was that like success attributed to having like a 10 out of 10 product? Or was that attributed to being able to figure out the supply chain and like operation side of the business? Because obviously...
- 10:30I just can imagine 15,000 stores so early on and who knows how many you're in now is just like a logistical nightmare.
- 10:39Yeah, well, I think there were a few things. I think first, the product we make in order to get it made, we had to make bigger runs than some other products out there because there's just fewer co-packers that do it. So we had to get enough stores to make it worth running the product in the first place. I think our background as brokers allotted us the ability to get into more places because we had good relationships. Yeah.
- 11:01But then at the same time, I think we also just struck at the right time where everyone knew what Creek yogurt was doing. It was the biggest thing to ever come into the market. Oh, and now here's an opportunity to kind of move it into an adjacent category.
- 11:16where there really isn't anything there. And I think the big thing is just like creating something that's unique and different. And no one was doing frozen Greek yogurt or a healthier dessert. Yeah, it's like right place, right time. Like there was such an appetite for different variations of this thing that everyone was already in love with.
- 11:35Yeah. And I think at the time you saw Greek yogurt go everywhere. It was in like shampoos. I think, I think like people were writing Greek yogurt on everything, body lotions, like, and I think there's a, there are right and wrong categories to be in. And I think for us, it really truly allowed us to create a better product. And I, you know, I'll harp on it a lot. I think product is key and not getting complacent is key with your product and your brand. And
- 12:00You know, our early product wasn't fabulous. It was 70 calories. We weren't really sure exactly where we needed to be. It was fruit flavors because that's what worked in yogurt. And what we learned over time is just you got to evolve. Like for us, people wanted chocolate, caramel, brownie, coffee, you know, chips, swirls. And so we had to evolve the product. And with that, evolve the brand. And I think where me and Drew have been really good and humble is...
- 12:29Probably not getting too attached to what it is we created at the beginning and really making sure we evolve it over time to make sure it's the best it can be. And even to today, like Mint Ship, one of our best items, we're still tweaking formulas to make it even better whenever we can. If we find things that work, we will still improve even what is one of the best selling novelties in the category.
- 12:51Wow, that is so interesting. Very cool. I love how it's like people want healthy, but they actually just want ice cream. Oh, yeah. In terms of like, they want those things that like cookie dough and things like that, that you find in ice cream, but they want it to be healthy. Myself included.
- 13:07Yeah, I think at the end of the day, you're going to this category to indulge, right? Like you're like, I want to indulge a little and I blame my mom. I like need chocolate after every meal. I don't know like what that is, but I feel you, you know, I want that little bit of something sweet and to be able to eat a full bar for 100 calories. I'm like, this is fabulous.
- 13:26But yeah, people want that indulgence. And so we learned that real quick just by going to road races and talking to consumers. They were always like, where's chocolate? Where's caramel? We're like, yeah, we got to work on that. Yeah, that's so you've just got to get out there and talk to your customer and listen and then iterate totally. Totally.
- 13:46I'd love to ask you about the money piece. You said in the beginning that you were, you know, on the side kind of doing this, then you committed to going in full time and both building the business. How were you approaching like that funding path? I know now you've raised probably around 10 million, I think I read on Crunchbase, but like at the beginning you were bootstrapping. What was your approach and plan to finance?
- 14:10Yeah. So I think we learned really quickly. We needed a decent amount of money just for the space we were in. So, you know, we did what a lot of people did. Friends and family first, like shake your friends and family for all they're worth and willing to give you. Once you've tapped that well, you got to go to a different one. And then we kind of started finding smaller angel type people around the city that...
- 14:30were interested in the brand in the space. And then eventually, as we started getting revenue, that's when we went out to raise more money. But, you know, I think the times were different. And when we started back in, you know, 2011, when we were truly launched, like...
- 14:47There wasn't as much private equity money in the food and beverage space. Valuations weren't as rich as they are today in the space. You know, we're fortunate that today, you know, everyone wants to be in food and beverage because it's such a growing category. It's exciting. There's a lot of great brands. Um,
- 15:03I don't want to sound old, but 10 years ago, like there wasn't that type of excitement. There were a few really, you know, brands that I'd done well, but it wasn't the same atmosphere you see today. So it was definitely a harder environment. You know, we were on a kind of pay to get your production up front and we were living check to check. You know, we always tell this story, like one of our first Costco checks, we needed that to come in the mail that day to wire it to our co-packer so they would run us and we had more product to sell.
- 15:31And we were so excited when we got the check. It was our first six figure check ever. So we went to the bar to celebrate at lunch. Drew spills his beer on the check. And we were like, well, actually in his defense, the bartender spilled the beer on the check.
- 15:46And we're like, oh, no, we need this check. Like, we can't run today if we don't get this in the bank. And she's like, what was that? Was that important? We're like, oh, just a check. No big deal. That we really need. So she's like, oh, my God. So she starts drying it on the industrial dryers. And we've got to the bank and...
- 16:03I remember standing there. It was like, you almost like you stole the check and it wasn't yours. You were like, please clear, please clear. And they took it and it worked and we were able to keep going. But, you know, we did learn really fast, like cashflow and money was important. And, you know, for people starting today, I'd say like,
- 16:20A lot of time can be taken off growing your business and doing revenue driving things to fundraise and get money. So, you know, when you do have the opportunity to get the money, make sure you get enough so that you don't have to keep spending your time doing it. Because it takes away from the things that truly drive the business and drive growth and revenue.
- 16:43So essentially raise more money than you need to. Just make sure you raise enough. Know that your forecasts are probably wrong and make sure you raise enough. Because I will say we spent a lot of time fundraising throughout the years. And I know obviously equity and dilution is very important to founders. But I would also say taking your eyes off the business is also important. So just make sure you're...
- 17:10Not raising too much, but raising enough to make sure that you're not spending all your time fundraising. 100 percent. That's great advice. Over the course of the last 10-ish years, what have been the key moments or milestones for growth outside of raising capital that can fund more growth?
- 17:32Yeah, I mean, obviously, so funding growth, like for us was one, improve the product, improve your brand. Because every time you have a product that's more productive on shelf, moving, you know, eight units per store versus three, you're generating more revenue. At the same time, for us, it's,
- 17:53focus on your gross margin and what are the things that put your business in a position where it can sustain itself and doesn't always need to go back to get more money to grow. So for us, we switched the flavors, we switched our packaging design, and we started seeing our velocities increase. At the same time, we were really so focused on every single line of
- 18:23And then how do we make sure our spends are so efficient that they're generating more revenue? And as we got better at that, and it took time, we were able to sustain the business where we didn't need to go raise capital to grow the business. We were generating cash to be able to grow the business. And I think once you can get to that point, one, as an entrepreneur, it's less stressful. You're not always worried about when are we going to run out of money? You're more focused on what are we doing?
- 18:50You know, what marketing spends are we activating? What products are we launching? What branding are we changing to make our product and brand stronger? And that's really when you kind of hit that sweet spot and you can really generate some great growth. You can pour the fuel on the fire. Exactly.
- 19:07When you say like focusing on that P&L and like really understanding like how you can increase your margins or change things, what are some examples of like the kinds of things you did maybe in the early days that kind of helped you reach that sustainable kind of growth? Yeah. So we ripped apart our supply chain in our products. Where can we get some costs out of the products if possible? Is it
- 19:32you know, in your, how many colors are you using in your design? Is it, you know, just going and fighting for better costs on your raw materials? Are we shipping products to the wrong places that aren't logistically cost-effective? So ripping apart everything that goes into creating and selling the product. And then below the line, it was really, if we're spending it, do we need to be spending it? And is it giving us a return? And if it's not, just get rid of it.
- 19:56And some of those cuts are hard. Some of them you don't want to get rid of, but they just make the most sense. So we really looked at every line item below the line in SG&A to say, is this needed and is it contributing? If it's not, let's move away from it. If it is, spend more on it.
- 20:17And so, yeah, we looked at all of our marketing spends, our trade spend, you know, for a small company, we really dug into like our promotional strategy, like what promos are working, what aren't, you know, if they're not working, get rid of them. If they are working, let's keep them. What marketing spends are working, what aren't. And really just looking at every single piece to figure out if it's worthwhile or not.
- 20:40And what are some of the things that are working for you now or in recent years? Obviously, the landscape has changed so much from when you started to now and especially with, you know, social media and like all these kind of new platforms coming out for shopping online and that kind of thing. But what kind of works for you now in acquiring new customers and growth?
- 21:01Yeah, so it's definitely different than when we started. I laugh, like I don't think Instagram existed when we started Yasa, which again is not that long ago. But I think like Facebook just started charging for ads back then. So what's worked for us now? I mean, obviously, for gaining new customers, like we focus a lot about on-shelf marketing.
- 21:21and what we can do kind of in that last few steps in the freezer. So we do a lot of work around in-store execution, whether that's packaging design, you know, shelf talkers, things, trade promos. Then on more of your traditional marketing spends, you know, we kind of hit in a bunch of different buckets. I think we have a, you know,
- 21:41different funnel of marketing tactics we use. And we've seen a lot of great success with some of your influencer stuff, although it's definitely changing. And I think it's really hard to get repetitive eyes on things. It gets very expensive these days because so many brands are playing in that space.
- 21:58But we've also started seeing like traditional marketing be effective for us as we've grown. So talking about like commercials and different types of spends that you haven't seen brands do as much of in the past few years are starting to come back and be very effective. And some of that comes with scale. You know, you can find us in all these grocery stores. So it's easier to do some of these big traditional marketing spends versus a smaller brand that necessarily couldn't get the same return for it.
- 22:26You know, online and DTC, great way to get eyeballs. We've always been challenged. We're frozen. Like shipping a frozen ice cream is. Oh, yeah. That's a tough one. It's not the best, but we are doing it and we are learning and it's become a good little chunk of our business. But I think it's a great avenue for a lot of new brands to be able to get revenue and eyes on the product. We decided to go into ice cream.
- 22:52Make it harder. Yes, make it harder. I read that you guys launched an incubator and you were going down the pathway of launching new brands. And one of the brands you've launched is Juve Pops, which I'm led to believe isn't frozen. Like you ship it non-frozen and then people like freeze, like those, what's the...
- 23:12Yeah, like freezer pops. Yes, like freezer pops. I was like, what's the term? It's actually different in Australia than the US. But anyway, I don't know what it is. But yeah, let's talk about that and how it's going and, you know, how you've approached this brand differently to Yasso.
- 23:31Yeah, so the incubator is a really fun kind of addition. We added to Yasso in the last couple of years, and it was a way to create brands that we believe are complementary to Yasso, but not competitive to Yasso in any way. And so Juve was the first launch. And yes, half of the brand is in this ambient freezer pop state where you don't need to freeze it till it gets to the freezer. The other part of the brand is frozen fruit bars that sell in the freezer set next to a Nestle outshine bar.
- 23:59So our thought process here was, you know, there's a huge category of fruit bars that a lot of them are full of sugar and, you know, they're not necessarily healthy for you. And then there are some that are a little bit cleaner ingredients, but still had a lot of sugar in them. So we were trying to figure out, you know, we saw functional beverage going through the roof.
- 24:19And we were trying to figure out, well, how do we bring some of the things people are looking for, like refreshment and functional beverage over to the freezer set? So we fortified the fruit bars with vitamins and electrolytes. So not only are you getting less sugar, real fruit, but you're getting this dose of vitamins and electrolytes. And that is in both the frozen and the freezer pop version. Yeah.
- 24:40It's been good. You know, it's a small test that we launched it and we'll be expanding it a little bit more this year. But it's a, again, it's another fun brand. I think at the end of the day, like I love the space we play in because it's, no one's like ever mad eating ice cream. It's like, people are always happy. It's a category where like...
- 24:58You're never giving it to someone and they're upset. They're like, oh, my God, ice cream. You're putting smiles on faces. Yeah, exactly. Like, I think my I have a two year old and I think like she thinks my job's fake. But like everyone at her daycare is like, your mom just makes ice cream. I'm like, I know it's it's great. That is so cute. She's my taste tester. Oh, my gosh. I love that.
- 25:21I feel like as well, like if you're going down that pathway of launching new brands, you get to kind of like reinvigorate and reinvent and do new things that keep you really excited and like able to like mentally stay in the journey. Because obviously entrepreneurship is such a long game and like you've been in it for a while. Like you can add these new things that add more flavor kind of thing.
- 25:44Yeah, you know, I think for me and Drew, like we are, we are creative. We like creating new products and packaging and brands. And so, yeah, I think for us, it was, it was kind of a breath of fresh air. I think Yasso is doing a ton of tremendous work.
- 26:01things with the brand, both on product innovation, marketing, branding, all of it. I think that's exciting to see, but this was just kind of different and unique and allowed us to kind of flex that part of our brain that we've probably had in flex since early days Yasso. So it's been exciting to watch it kind of grow from its infancy. Do you spend a lot of your time on Yasso or do you spend a lot of your time on the new brands in the incubator?
- 26:26Yeah, so we have a CEO we brought in to run the business day to day. And a part of that allowed us to step back and focus more on the creative stuff. So the incubator brands, as well as some new innovation within the Yasso portfolio. You know, I think you're seeing Yasso come out with a lot of different snacking options that are different and unique and not exactly the same as your stick bar that you had day one. And so, you know, working on that stuff as well is really what excites me personally. Yeah, absolutely. That's so cool.
- 26:56I was wondering about like, you know, you guys are at such a level now. I think I read as of two years ago, you're on track to do like 150 million in the year. Like you guys have obviously reached like such a huge level now.
- 27:09What's the next step for a brand like you? Do you get acquired by the likes of a Unilever or some huge, huge corporation? Or do you like go to IPO? Or do you start just building out a portfolio of all the different brands? Like what's the kind of like trajectory that you're on now being at the scale that you're at?
- 27:28Yeah, I think there's a few different options you can take and you kind of keep all of those in sight. For us right now, I always say as big as we got, we always feel like the underdog. You know, we passed Klondike recently, which is like...
- 27:46It's funny. Most people are like, no, Klondike's huge. It's like, well, no, Yasuo is actually bigger than it now. And they just can't really fathom that fully. But I still think of us as the underdog at the end of the day. So I think for us, it's keeping our head down and just executing on our playbook, which is expansion into potentially different categories, new items. You'll see some brands launch out of the incubator. But any of those avenues we could take that you mentioned, I guess time will tell.
- 28:16Oh, very exciting. Very exciting. Super cool. What do you think is your most important piece of advice for entrepreneurs who are coming into the food and bev space this year in 2022? Yeah, I think it's crowded and there's a lot of people in it. So just make sure that what you're doing is truly filling up like a consumer need and make it as
- 28:42you know, differentiate it as possible to kind of build a little bit of a mode around yourself so that you have some runway to really build your brand. And at the end of the day, just if you believe in it, make sure it works. If given the chance, just make it work. Do what you need to make it stick.
- 29:00I love that. Thank you. I just thought of the name of those freezer pops in Australia. I'm pretty sure they're called Zooper Doopers. Zooper Doopers. No, I think it's Zooper Doopers. It's going to bug me until I figure it out. I'm going to look it up. I'm going to report back to you after this call and be like, this is what they are.
- 29:22Hey, it's June here. Thanks for listening to this amazing episode of the Female Startup Club podcast. If you're a fan of the show and want even more of the good stuff, I'd recommend checking out femalestartupclub.com where you can subscribe to our free newsletter. We send it out weekly covering female founder business news, insights and learnings in D2C, and interesting business resources.
- 29:47And if you're a founder building an e-commerce brand, you can join our private network of entrepreneurs called Hype Club at femalestartupclub.com forward slash Hype Club. We have guests from the show joining us for intimate Ask Me Anythings, expert workshops, and a group of totally amazing, like-minded women building the future of D2C brands.
- 30:09As always, please do subscribe, rate and review the show and post your favorite episodes to Instagram stories. I am beyond grateful when you do that.
- 30:26Hey, it's June here. Thanks for listening to this amazing episode of the Female Startup Club podcast. If you're a fan of the show and want even more of the good stuff, I'd recommend checking out femalestartupclub.com where you can subscribe to our free newsletter. We send it out weekly covering female founder business news, insights and learnings in D2C, and interesting business resources.
- 30:50And if you're a founder building an e-commerce brand, you can join our private network of entrepreneurs called Hype Club at femalestartupclub.com forward slash Hype Club. We have guests from the show joining us for intimate Ask Me Anythings, expert workshops, and a group of totally amazing, like-minded women building the future of D2C brands.
- 31:13As always, please do subscribe, rate and review the show and post your favorite episodes to Instagram stories. I am beyond grateful when you do that. Thank you.