Elevator Talk Live: Loli's Foods

Ray Latif [00:14] Hey, folks. I'm Ray Latif, the editor and producer of Bevnet's Taste Radio podcast, and you're watching us here at Nosh Live Winter 2023 in Marina del Rey. And this is Elevator Talk Live, a live version of our series that profiles early-stage and disruptive brands from across the food and beverage industry. Seated to my right is the one and only Lee Keith, the co-founder of Perfect Snacks. And we have our very first entrepreneur for the afternoon. That's Scott Zimmerman, who's the founder and CEO of Lowly's Foods. Scott, Lee, great to see you.

Speaker 2 [00:42] Nice to see you, Ray.

Ray Latif [00:43] Pleasure. Now I, I don't wanna like make a big thing of this, but you know, everyone knows that Lee is a superstar. She's probably like the most awesome person here at Notch Live. No, this has been so amazing having you here. Thank you so much, uh, in the business for almost 2 decades,

Speaker 2 [00:57] right? Yes, I started the business when I was 19 and that was 19 years ago, so half of my life, yeah.

Ray Latif [01:03] Amazing, amazing, and it's just amazing to see what Perfect Snacks represents for entrepreneurial brands. I mean it just represents hope. And perseverance and some of these great things that uh people need to be successful in our industry and I'm so happy that you're here to share some of your experience with our entrepreneurs today. Thank

Speaker 2 [01:20] you, thank you so much for having me. Yes,

Ray Latif [01:23] well, Scott, uh, we all wanna hear about Loly's uh very excited about your brand. Uh, tell us all about it.

Speaker 3 [01:29] So Loly's Food started in 2021, uh, proudly named after my grandmother. Um, we make refrigerated sauces, dips, and salad dressings just like you're gonna make at home. No junk, no gum, starches, and no unwanted preservatives. Um, we make about four skews. Um, we have a ranch, a lemon garlic, a green goddess, and a Caesar. Um, we are out of Pasadena, California, but we, uh, launched in San Diego, so we kinda have a home, um, away from home in, in both areas. Um, we've grown from the, uh, Southern California market all the way up to Nor Cal Market. Um, on the slide there you'll probably see that, uh, we have those 4 SKUs, but you also see below that, um, we have, um, our food service line. We've gotten so popular, um, a lot of the retailers like us and have seen us in. In the salad bar as well. Um, but more importantly, it, it really all culminated and started with, uh, my grandmother. Um, she had 9 kids. So I grew up cooking with her, um, in the kitchen and she encouraged me to, um, She encouraged me to pursue a culinary career where I worked in Michelin starred restaurants in New York. And then around that time, um, well, she also had type 2 diabetes, so we're always looking at the ingredient list. We're always trying to reduce the sugars and making the best products possible, obviously for the health of the family and for just, um, overall, um, making everybody smile at the table as well. Um. Fast forward to, uh, working in the kitchens in New York, um, I got into gut health. I, um, found that the kombuchas were a little too sugary to support the gut health, and I also, um, ran out of ways to put kimchi and sauerkraut on, didn't wanna take another supplement, so I wanted, uh, a kind of a functional way to, um, support my overall, um, gut health, immune health, digestive health, and just overall well-being. And so, um. That's why you'll see in, um, excuse me, let me do the slide. That's why you see what's uh kind of set us apart is we've been more than just a sauce dip and dressing, um, where I've mentioned that we're organic, we're really clean ingredients. We, um, have zero sugars, um, and then we also are gluten-free and dairy-free. Uh, we use flaxseeds as a flaxseed uh replacement. So we're actually a creamy dressing. I think a lot of people in the marketplace have seen a very watered down. Um, salad dressing with, uh, with dairy alternatives and that's where we're, we're, um, changing that in the taste profile. And then, um, on top of that, we're also just, um, We are, we have a lot of personal ingredients. We use apple cider vinegar, has a mother culture, the probiotics are, uh, clinically proven to support immune health, gut health, and digestive health. And, um, we've just seen a lot of traction, uh, growing from up from San Diego. Then we launched into Hawaii, and then we, um, launched into NorCal earlier this year. Uh, our biggest, um, Our biggest retailer being Rayley's up in the north, they've been a great partner for us and then obviously all the small independents and we're just growing, uh, in that refrigerated category that you find in the, in the refrigerated department in the produce department, and then, um, yeah, that's been. Uh, a blink of 2 years, but that's been, that's been our story. Yes,

Ray Latif [04:54] well, 2 years and 3 minutes, I think you did quite well there, Scott, very well done, um, you know, interesting refrigerated brand, refrigerated brand, um, lots of complexities to being in that cooler case. Uh, I, I imagine that you have some thoughts on this type of business, Lee, uh, and what you heard from Scott.

Speaker 2 [05:14] Certainly being in the refrigerator you have to earn earn your keep maybe more so than anywhere else, right? And you can't do off shelf promotions, right? Certainly in your category I think as a bar that's what a lot of ambient bars are used to and so I think we liken ourselves to maybe a beverage or even your category, right? Where you really have just your space, your couple inches on shelf to play with, um, so what, what's your um. How are you guys in measuring your tactics on really driving velocity? You guys are spread out. You're having a good launch plan here, quite a few retailers I see still not in Whole Foods. I think that's probably next in the horizon.

Speaker 3 [05:51] Right? I mean that would be the the early Christmas wish list, um, but, um, I think what we've gone with especially in our category and it'd be interesting to know um if it was a lot of demoing and a lot of trial basis. I think it was um. Because you're, you're kind of taking one arm or one hand away by not being able to. Do end cap promotions you're not able to do a lot of shelf stable things that are that are beneficial. So being in the refrigerate set is harder, but that's exactly what the consumer is, is seeking and, and, um, it is a sleepy category and we're bringing that, uh, not only that functional consumer, but we're bringing a, a cleaner product that hasn't really been seen in that set, um, just like, just like yours. You just didn't have it, you know, a, a refrigerated bar in, in that set, um, so the challenges also bring a lot of opportunity and working with buyers and, um. I think it would be great to know also is how do you get maybe a buyer to um who sees. Something that is the status quo or traditionally and how to get them to think out of the box as a promotional way and that's our biggest challenge too is hey, this set, this category can be so much more or or and how the promotions can replicate that. It's it's been

Speaker 2 [07:06] I think Finding ways um even if that feels like breaking the rules a little bit like in your retailers here, um you can get behind demo tables in a lot of ways. I think um. Scaling a demo program is no easy thing, right? And so, patience and getting the right people, certainly at the top of that structure that are really fired up, the right people leaders, um, starting with yourself, of course, like that's where you do most of your consumer, you know, findings in the beginning is just listening to your customers one on one, but certainly scaling a demo program takes, it's like ugly, terrible work but

Speaker 3 [07:41] it Going up and

Speaker 2 [07:43] being able to do that as well.

Speaker 3 [07:45] Cause

Speaker 2 [07:45] I see your probiotic proposition and I think to be able to educate consumers as I'm sure you're doing, you know, one on one to really show your point of difference. And what is your price point compared to uh uh for like

Speaker 3 [07:57] product? Yeah, so the biggest we're usually $1 over your next um product. So, um, if, you know, generally the highest price point you see in the set is $699 we're about $799. And we're um all organic and what's not in the, in the bottle, which is, um, on that second slide, it shows um a lot of xanthan gum is obviously used uh in a lot of sauces and dips, which is devaluing the customer cause it's not real ingredients. It's just a, it's just a filler. So, um, with the proposition of justifying that price, um, we say organic, the probiotic functionality of it, and the, um, and it's all real ingredients just like you make at home. I think

Speaker 2 [08:38] that's really fair. Yeah,

Ray Latif [08:40] well, Lee, as you pointed out, you know, that probiotic component is important for Loli's, um, but for you I, I, I'm curious as to what you think the hierarchy of importance is for consumers. Is it that probiotic, is it taste? is it organic? And I wanna see if that lines up with what Scott has seen.

Speaker 2 [08:56] I'd say taste we've always just seen as number one as I think especially well probably almost in any category except for maybe a supplement or something more performance but taste um and then that USDA organic uh logo that we just continue seeing that kind of reign supreme for us in bars it's it's um taste protein USDA organic uh really is our. Top 3 and then Superfoods and and Project Verified non-GMO right behind that. So I'd say have that USDA organic loud and proud on there. And then of course like making sure that your packaging is conveying taste which I think you do well.

Speaker 3 [09:33] Yeah, I I and that that perfectly aligns with what we are doing, you know, and maybe change um 2 or 3 to 3rd or 2nd. It's, it's been Um, it's been USD organic, obviously taste because, um, yeah, our biggest compliment, um, is actually, um, 4 year olds going up and trying our ranch with the new parents and then the, the moms or, or the, the, the dads are, are really surprised that they're seeing their kids eat veggies and it's, and they don't want them to eat Hidden Valley Ranch and they want them to actually eat as many, um, You know, carrot sticks, snap peas, um, you know, cherry tomatoes as possible, and so, and it's a great way to get probiotics into their diet early. They're not using supplements. They're not using kombuchas, and so those three things, uh, I would say is taste, USD organic and clean ingredients are

Ray Latif [10:21] usually if you get kids to eat it, you got hit on your hands. Uh, we're almost out of time, but I gotta ask about plant-based as well, um. You know, for a Caesar or ranch and a green goddess for them to all be plant-based is pretty awesome, um, but how much does that move the the needle these days, do you think, Lee, for a product like that for a brand like this?

Speaker 2 [10:38] I, I think if taste is there, then plant-based is a is a nice to have for sure. I think for, uh, Perfect Bar, um, we've done plant-based in the past and I think it compromised taste to some extent and so really just, um, leaning in on our. Our hero kind of formula which does include dairy. Um, so I think if it doesn't compromise your taste, it's absolutely, I think in this this day and age continues to be a a nice benefit to consumers.

Speaker 3 [11:06] And really to be honest, we, you know, I was hesitant at first um to cause you obviously we can go through with eggs or we can use a um a whole dairy product. Um, but when we did some R&D testing, um, People actually preferred the flaxseed, which was the biggest surprise to me. Um, I think I'm probably like most people are probably uh our families like most families is, um, we're between um Some of them are vegetarian, some of them are, um, uh, still carnivores. And so, um, what we are is kind of a flexitarian brand. We're just trying to make everybody happy at the table and we're really more about just putting, you know, we're just happy if we get more and more plants on the plate. Um, and, um, when we looked at the plant-based, we do, um, we do a flaxseed. So it's like a flax egg replacer and that gives us that nice creamy consistency. And then we're also um on the Caesar, yeah, you, if you look at a Caesar skew or even a ranch, you either get a lot of heavy buttermilk or you get a lot of um heavy cheeses or uh or sometimes anchovies, but we've used that with, we've sup supplemented that with um coconut aminos and then also um we um. People who've really liked, uh, dairy ranches, um, or don't like dairy ranches or the artificial flavors really liked our ranch because it's fresher, lighter, and, um, just better, better tasting and better ingredients.

Ray Latif [12:29] Well, I'm excited to taste your product, Scott. Uh, thank you so much for being with us on Elevator Talk. Really excited for the future of your brand. Please stay in touch and let us know how we can help in any way. 100%. Thanks so much. You can hand your microphone over to.