Growing CPG startup from zero to millions in revenue
We are experiencing an exciting period within the CPG (Consumer Packaged Goods) community. There has been a notable increase in the number of brand startups, while distribution businesses are actively supporting promising brands, and communities are facilitating knowledge-sharing, advice, and connections. However, it’s essential to acknowledge that only a small fraction, approximately 5%, of CPG brands achieve success.
Recently, we had the opportunity to participate in a webinar featuring a CEO from that successful 5% who transformed his beverage startup into one of the most popular ginger shots in New York City in less than three years—Namik. The discussion included Lisa, the Product Marketing Manager at SimplyDepo, and Josh, the CEO of CPG community Foodboro. They shared insights on navigating the competitive landscape and driving success for startups in NYC, one of the world’s largest cities.
From the initial steps to selecting distribution channels, finding sales representatives, utilizing effective tools, budget allocation, and improving sales strategies. Namik’s firsthand experience is invaluable, considering GNGR labs’ impressive achievements in 2022, selling over 1 million items and surpassing $2 million in revenue within New York City alone.
Namik’s key insights
- “NYC provides an exceptional environment for product evaluation, offering a diverse population representing various nationalities. The local infrastructure, including corner stores, allows for comprehensive product validation across different demographics.”
- “While self-distribution isn’t a magical solution, it is a sensible approach to kickstart your business when starting from scratch. Distributors play a role in validating your product’s potential, but ultimately, it’s up to you to drive its success.”
- “Managing a business requires utilizing various tools, and in our experience, SimplyDepo played a significant role, contributing to a remarkable 20% growth in sales.”
- “Initially, our sales team consisted of ourselves and friends, but as we expanded, we recognized the need to hire additional sales representatives to support our business further.”
Lisa, a speaker at the webinar, addressed a common struggle faced by young brands aiming to establish self-distribution—finding effective sales representatives and optimizing their performance. She highlighted the importance of having key information, such as the number of store visits and products sold, to analyze the situation and make informed decisions. Lisa emphasized their platform’s usefulness, allowing business owners to track actual growth and identify and address any issues hindering that growth.
Foodboro’s remarkable engagement during the webinar and subsequent interactions demonstrated their genuine interest in supporting the CPG community. Josh, at the helm of Foodboro, is committed to empowering entrepreneurs with valuable insights and opportunities for business growth. We extend our heartfelt appreciation to Foodboro for graciously hosting us.
Foodboro is a vibrant hub where founders, investors, service providers, retailers, and other industry professionals converge. This dynamic platform offers an invaluable opportunity to connect, learn from experienced mentors, and foster the growth of your CPG business. Through their dedication and resources, Foodboro plays a pivotal role in shaping the future of the CPG community.
About GNGR Labs
GNGR Labs is an innovative nutraceutical start-up that provides customers with all-natural solutions to support immune and digestive health. Their mission is to revolutionize how minor illnesses such as the common cold are treated by offering natural remedies to help prevent symptoms before they start and reduce their impact once present.
Inspired by a family recipe, Namik experimented with the key ingredients and crafted a cold-pressed ginger shot that made him feel healthier, clearing his digestive system and providing a morning jolt of energy.
It was then that GNGR Labs was born. In the summer of 2020, Namik and his friend Ivan began selling the first few batches of ginger shots from the back of a truck that traveled between Manhattan and Brooklyn, reaching into coolers and introducing locals to their products.
Demand grew quickly, and in a short few years, GNGR Labs sold over a million ginger shots across 800+ locations in New York and is now excited to introduce its signature ginger shots to the rest of the world.
Simplify self-distribution and field sales
Discover the power of SimplyDepo, the ultimate platform that simplifies wholesale business and self-distribution. Join us to explore the platform, gain insights from our experiences, and hear success stories from distributors and brands who rely on SimplyDepo daily.
And enjoy watching the entire webinar on Vimeo!