From Board Seat to Buyer: The Alter Eco Turnaround | Keith Bearden, Alter Eco
From Shelf Help: The Tactical CPG Podcast · 39:36
Show by Adam Steinberg
On this episode, we're joined by Keith Bearden, CEO of Alter Eco, No Cow and Good Karma - the Trek One Capital portfolio spanning organic Swiss-made chocolate, plant-based protein bars and flax milk. Keith previously led Yogi Tea's international division, served as CEO of Lifebrands US and American Botanicals, and spent 15 years at Dow Chemical.Keith walks through how he went from Alter Eco board member to buyer, flying to Houston to pitch his path-to-profitability plan to Trek One Capital and closing on December 22, 2023. He breaks down the three levers behind a profitable first quarter of 2024: cutting headcount and outsourcing, moving the warehouse from Oakland to Columbus, Ohio (saving over $1M a year and roughly 20 days of lead time), and cutting trade spend from about 25% of sales to 19%.We get into managing a cocoa market that more than tripled after the deal closed, a 39% tariff on Swiss imports, and Keith's bet to take a 12% price increase while competitors took 30 to 40%. We also dig into SKU rationalization without losing shelf space and why Alter Eco doesn't chase trends.Keith also shares how a moment on a granola production floor in Canada became Oat Clusters, why his CMO pushed "delicious" over "organic" and moved "Made in Switzerland" to the front of pack, and how Alter Eco hit 1,400 Publix doors on day one by putting inventory on a plane.---------------Episode Highlights:🍫 Alter Eco's origin and "taste is the price of admission"🤝 From board seat to buyer: the Houston lunch that closed the deal✂️ Turnaround lever one: headcount, outsourced QA and back office🚚 Moving the warehouse from Oakland to Columbus, Ohio💸 Cutting trade spend on truffles that saw no incremental lift🔄 SKU rationalization and proactive swaps to protect shelf space🌱 Pre-bought beans and loyal farmers through the cocoa spike🧾 Eating a 39% tariff on Swiss-made chocolate in 2025🏷️ The 12% price increase bet when competitors took 30 to 40%✈️ From granola production floor to airport shelves: Oat Clusters🇨🇭 Why "delicious" beat "organic" and put a Swiss logo on the front of pack🛒 Landing 1,400 Publix doors on day one (and air-freighting inventory to do it)🔮 GLP-1 tailwinds and why No Cow is built for that shopper---------------Table of Contents:00:00 – Intro01:04 – Alter Eco's origin and three core principles03:36 – Running three brands as one CEO06:30 – From board member to buyer08:54 – Turnaround lever one: headcount and outsourcing10:20 – Moving the warehouse to Columbus, Ohio11:20 – Cutting trade spend that wasn't driving lift12:36 – SKU rationalization without losing shelf space14:16 – Hedging against cocoa's price spike16:25 – Absorbing a 39% tariff on Swiss imports19:56 – The 12% price increase bet22:25 – From natural into conventional grocery23:33 – Product roadmap and not chasing trends26:44 – Granola and the Oat Clusters origin story29:50 – The say-do gap and why "delicious" won32:18 – Practical Magic 2 and brand collaborations33:27 – Scaling doors and landing 1,400 at Publix36:02 – No Cow, GLP-1 and what Keith's watching---------------Links:Alter Eco - https://www.alterecofoods.com/No Cow - https://www.nocow.com/Good Karma - https://www.goodkarmafoods.com/Follow Keith on LinkedIn - https://www.linkedin.com/in/keith-bearden-736821/Follow me on LinkedIn - https://www.linkedin.com/in/adam-martin-steinberg/For help with CPG production design - packaging and label design, product renders, POS assets, retail media assets, quick-turn sales and marketing assets and all the other work that bogs down creative teams - check out https://www.kitprint.co/Shout out to my friends over at Glimpse, the go-to partner for automating retail-related back-office operations and unlocking margin trapped in invalid fees and manual processes.Are you in the market for a new flexible packaging partner? Check out HD Packaging. Third-generation, family-owned and built for the needs of category leaders like Newman’s Own and A Dozen Cousins. Faster launches, lower costs, and no artwork fees. Looking to dominate the cognitive health space? Upgrade your formula with Cognizin. It’s the branded, clinically backed citicoline trusted by top innovators in supplements, foods, and beverages. Differentiate your brand today at Cognizin.com.
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