Client: Califresh
Background
Califresh was formed with the idea of commercializing and marketing fresh green garbanzos, a Mexican delicacy found in street markets in Central Mexico and parts of the US. Within four years the company was facing a number of issues it had not anticipated such as production snafus, product packaging failures, supply chain limitations, lack of significant new customer acceptance and traction. The founders were evaluating whether or not to close down the company. A senior partner approached FLG with a request to help turn the company around.
Approach
- FLG evaluated and rewrote the company’s business plan; conducted an in-depth market study working with a group of students from the USC Graduate School of Business and their professor, a McKinsey & Company consultant.
- FLG introduced the company’s product to a broader set of retail customers and re-introduced it to certain customers who
had discontinued buying it.
- FLG worked with a series of vendors to develop new packaging which maintained the product’s freshness and quality longer.
- FLG leveraged the product’s built-in Hispanic demographic recognition, by introducing it to mainstream retailers such as
WalMart and Safeway with Hispanic demographic stores. At the same time, FLG started introducing the product to
retailers with no Hispanic demographics.
- FLG repositioned the product as a mainstream fresh, green, healthy snack and side-dish and created a “trendy and
nutritious” image with mainstream consumers. Components of this repositioning strategy included
- Developing mainstream recipes by award winning Chef Jill Davie.
- Introducing Califresh product to high profile chefs and food editors nationwide.
Results
The company grew from significant year to year losses to profitability within two years. The product was featured on The Today Show as “the next Edamame”. Company sales have more than doubled and are continuing to grow.