How To Build a Single Ingredient Snack Empire!

Issue #115

November 5th, 2024

Quick Hits:

🥇 Unsung dog heroes are finally being recognized for their work

🇲🇽 Dogs are not forgotten in Mexico’s famed Day of the Dead (Día de Muertos)

🐿️ Social media sensation, Peanut The Squirrel was euthanized by New York authorities

 🇺🇸 Meet the presidential dogs

❤️ This sweet reunion between a dog that was lost in the wild for 5 months and her owner will bring a tear to your eye

🎿 Winter is finally here! Here are 7 dog-friendly accommodations in some of the best ski resorts in North America

We want to hear from you! 🗣️

We are launching a premium tier for our community starting in 2025. We want to pack as much value as possible. However, that’s going to happen incrementally. Initially, we will start with one or two features. Over time we will add more based on your needs and feedback.

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This week we spoke with Dewar Gaines the CEO and founder of Gaines Family Farmstead.

You’ve always dreamed of being a business owner. From lemonade stands to cutting grass as a child, and even running your own digital marketing agency for a while to ultimately leading Gaines Family Farmstead to become a multimillion-dollar company. What is it about entrepreneurship that drew you to it? 

I think it's a combination of things. I come from a long line of entrepreneurs.  My Great Grandparents on both sides were entrepreneurs, my Grandparents on both sides were entrepreneurs and my Dad is an entrepreneur.  Maybe it's genetic?  But also, I have always had the desire to build something of my own and be my own boss.  

After your original manufacturer went out of business, you raised money, bought equipment, and started manufacturing yourself. Why did you decide to do that vs finding another co-packer? How much did you originally raise?

Well, we definitely searched hard for another co-packer before we decided to make the product ourselves but we simply weren’t big enough. We also knew that if we weren’t able to make the product ourselves, it would be difficult to master at scale with a new manufacturer.  We originally raised $200,000.  

One ingredient product, why? What made you look at the pet treats landscape and realize this flagship product could be a winner?

We recognized the “humanization” trend early and we also saw other single-ingredient products doing fairly well… I was confident we could do it better! 

What happened with TJ Maxx during the pandemic and would you call that a pivotal moment for the business during that difficult time?

2020 was a ROUGH year for us.  We were a matter of days away from closing our doors.  Our bread and butter (in terms of retail) are the thousands of independent pet retailers all over the country. Many of these stores were deeply impacted by closures during COVID and as a result, PO’s from our distributors slowed to a crawl. But, because we had a 100% American supply chain and major retailers were having trouble getting Chinese-made products into their stores, we were able to pick up some large orders from TJX, which ultimately kept us alive.  

You have partnerships with Amazon, Chewy, and CostCo, how did you manage to close deals with these massive retailers and online behemoths? 

WE NEVER QUIT.  Our first pitch to Costco was in March of 2020… Our first placement, March of 2023.  Talk about a long sales cycle! As for Amazon, we manage our own listings, so “closing” them was as easy as setting up our storefront and starting to sell.  But, as anyone who has ever sold on Amazon will tell you, launching a store doesn’t make you a business.  It took us 5 years to reach true profitability on Amazon. Chewy, now that's another story.  We told them “no” for two years before we finally decided we were ready to take that leap. Sometimes telling someone no only makes them want you more! 

The company’s revenue jumped from $480,000 in 2022 to more than $2.2 million in 2023, what do you attribute this 4.5x growth to?

 In Q4 of 2022, we were highlighted by Amazon as one of their “top products” and were included in their Holiday gift guide.  Additionally, Amazon did a social media campaign about our brand.  The campaign had close to 30 million views in a matter of 4 to 5 days.  This gave us the momentum to close Costco in Q1 of 23, launch successfully on Chewy in Q2, close a fundraising round, launch 6 new SKU’s, and launch 2 new distributors.  

Pet food, like human food, is following a clear trend. Fresher, more natural, healthier for you products. What are some food trends you think will gain popularity in the coming years and what are some that will fall off?

I think consumers want to know more about the supply chain that is used to manufacture their pets products.  Where are the ingredients coming from? Are they all-natural? Non-GMO? Etc... With that said, we are launching 2 new lines in Q1 of 25 that we think are “on-trend” but I will let everyone wait for the unveiling of those!  

One tip for an entrepreneur entering the pet food space?

Entrepreneurs in general: NEVER QUIT. Entrepreneurs in the pet space: NEVER QUIT and be ready for a long grind!

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Finally, We used to call my dog Egypt

Because every room he went in, he left a pyramid

See you Friday!