Getting into Whole Foods nearly destroyed her business
558 segments
There were days I went home and and my
husband would fall asleep and I'd put my
head in my pillow and I'd cry quietly,
you know. Um because it was I was
thinking, "What am I doing to my family?
I'm working nonstop. Um I'm eating,
sleeping, breathing, everything debies.
Um and are we going to make it through
financially?" And my husband said, "Are
we going to be on the street? Like how
are we going to get through this?
Howdy y'all. I'm Elizabeth Gore. Welcome
to the big idea from Yahoo Finance. As
the co-founder of the small business
funding platform Hello, it has always
been my mission to ensure entrepreneurs
have the tools they need to succeed. So,
let's cowboy up. Today's big idea
question is, can I successfully pivot
from one profession to a completely
different industry? Our industry focus
will be health focused snacks. The
global better for you snacks market is
valued at 50 billion and is projected to
reach over 70 billion by 2030. Joining
me to talk about it today is the founder
of DB's Organics, Dr. Dion Llo Baker.
DB's Organics is brand known for its
organic frozen popsicles and fruit-based
clean snacks. Dr. BN has grown the
company from a small startup into a
nationally recognized brands, including
major retail distribution collaborations
such as Disney licensing partnerships
with a focus on healthier indulgent
treats for all your families. Here's Dr.
Dion.
All right, Dr. Dion, welcome to the Big
Idea. We're so excited to have you. I am
so excited to be here. Um, I'm obsessed
with your coat. So, let's just start
there. It's so cute. We're so excited to
be surrounded here in the studio with
your absolutely beautiful, tasty,
wonderful products. Tell me how that
started.
Oh my gosh, if you would have told me
years ago I'd be here, I wouldn't
believe you. I was finishing my PhD in
an area of medical science called
maternal fetal toxicology
and uh really didn't know anything about
business, minding my own business, doing
my thing. Um, but our son, we took him
off all artificial ingredients,
everything with added sugars, and it was
really tough to find him treats. One day
I was in the kitchen with my kids and he
was making um pops popsicles and his
sorry, he was making tea and his sister
was making popsicles and all of a sudden
they were arguing over who was going to
do what with mommy and one of them said,
"Mommy, let's make teicles, tea,
popsicles together." And I kind of had
like literally a light bulb go off and I
realized, my god, I've never heard of
this. I could make something that David
could eat and be proud of. Um, and I
could do something with a heart and a
soul and build a company pretty naively
at that time. I really didn't know
anything. And that's how we got started.
You know, the the mind of babes, right?
I mean, you just think about if if if
kids could start being entrepreneurs at
three, we'd all be geniuses, right? I
mean, they always come up with the best
things. And the fact you're such a good
mama and you listened, look at look at
what you've become. It's amazing.
>> Thanks. Yeah, it is out of the mouth of
babes, you know, because they're so
creative sometimes. I think that that
we're held so tight, you know, right?
Their minds are just open, you know.
It's amazing.
>> And I also um I have to thank you for
your former career as a as a mama of a
preeie. And um I it's it's I mean look
at what you've contributed to the world
multiple times now. So how did you go
from your your teicle kitchen to your
first product? I mean that's that's a
heck of a leap. It was a heck of a leap.
Um and it was probably pretty good that
I didn't know how hard it would be. Um
you know so I I I had this light bulb. I
went immediately. I'm a researcher by
training and by heart. And I looked, is
anyone making this kind of thing
anywhere in the world? And nobody was.
And I I'm the type of person, my mom
always said, "Oh my god, I'm giving up
on you." Because if there's a challenge,
I'm like, "Bring it on." And if you tell
me I can't do it, I'm like, "Watch me."
Um, and and that's really kind of where
we got started and how I pushed through.
And you know, I had to figure out how to
make a frozen novelty in Little
Victoria, British Columbia, where I live
be in perfect condition when it arrives
in Florida.
>> You have to think of every step of the
way.
>> I mean, we're we're just crazy enough to
be entrepreneurs, right? I I mean,
that's the whole thing is you got to be
just a little bit crazy to get there.
And you are because the way I think of
your company and when we chatted before,
you weren't just making amazing products
and figuring that out. you were figuring
out cold chain which is insane. I mean I
mean let's jump to that for a second. I
mean how do you even figure that out? I
can't imagine the amount of mistakes and
oh my lord learnings. Tell me. Oh my
gosh. I remember sending out product to
Whole Foods that was frozen and calling
a buyer once and the answer was what do
you want? It actually wasn't hello. He
had no idea who it was and I I was like
I just want to hang up now but is is my
did you receive my product and he said
it was melted too bad for you. Um you
know and so it was it was hard that cold
chain from when you buy the product or
you buy the ingredients from the farm
and it's got to get you know all along
the way and kept frozen and in
meticulous condition. It was very hard
and it's expensive. Um, and you know
there is a big environmental footprint
there. And when we had the opportunity
to get out of Frozen and into the
ambient shelf stable world, we jumped on
it. And you know, you must have had
products that you were in love with.
First of all, how out of all the things
you can create, how did you narrow down
originally? Okay, these are the, you
know, two to three SKs I'm going to go
out with. I mean at because small
business owners they have a lot of
passions and how did you do it and
what's your advice to them on how do you
pick the one
really really good thought uh I I always
tell younger or earlier stage
entrepreneurs
think about skew rationalization like
just go out with a few so we went out
with about four or five um which was
probably too many but I didn't know at
the time and we went out with frozen
novelties which is tough Our velocity
wasn't great and it was tough, really,
really tough. We were self-funded. Um,
and then in 2016 when we came up with
the idea to make the first organic all
fruity,
you know, and we launched it in 2017 and
it went gang busters. We kind of went,
"Ah,
this is how you do it. one skew
with high velocity
um creating a category and the business
really took off. It was just a major
major change in the company and we got
out of Frozen completely. What was the
word? Skew. What did you say?
>> Rationalization. Skewrationalization.
Okay. I I feel like we need t-shirts
that say that because you know we we all
have products that we're in love with
and we want to get them out to market. I
mean, have you had a product that you
just swore that it was going to work and
you had to pull it?
>> Yeah, we we've had a few. I mean, the
frozen was the first and then we also
came out with something called dipums.
Um, which we loved, but it was actually
a fruit stick that you dipped into this
powder and you can lick off the fruit
stick. Um, and we just could not get the
the the pricing right, like in terms of
we couldn't manufacture it at the price
point where we could scale. And you
know, I'm looking at a box of it right
now and and it was painful because I was
like one tier to it.
>> Yeah. Yeah. It was sad, but you know,
you never know in the future what what
you know, maybe we can bring that back.
Absolutely. Now, I want to go back to um
that you bootstrapped. Tell me about
that. What was the risk you took?
Because it was you and your family,
right? Kids and the whole deal.
>> The whole deal. For the first few years,
it was just us. Um, I would say my my
husband is my to this day my biggest
supporter. I have this analogy where you
each put each other's feet on your
shoulders and you help them soar to the
top. And we're both that way. Um, but it
was tough. Um, we put everything we had
into starting DBs. And I can remember a
day in the grocery store, local grocery
store, where I had bought a bunch of
stuff. I was with the kids groceries.
And one credit card, they said, "Oh,
ma'am, it didn't go through." And I'm
trying another one. No. Another one. No.
Another one of my kids. And they can see
there's tears, you know, my eyes are
starting to go red and there's a line up
behind me. And and one of my kids says,
"Mommy, I've got my I've got some
money." And I took I'm like, "Okay, take
away everything just just like the the
the the milk and the and the bread and
we're good, you know." And uh it was
hard bootstrapping. There were days I
went home and and my husband would fall
asleep and I'd put my head in my pillow
and I'd cry quietly, you know. Um
because it was I was thinking, "What am
I doing to my family? I'm working
nonstop. Um I'm eating, sleeping,
breathing, everything. Debbies. Um, and
are we going to make it through
financially? And my husband said, "Are
we going to be on the street?" Like,
"How are we going to get through this?"
>> So, it was tough.
>> That is tough. And I admire you so much.
And And for the those business owners,
cuz everyone, no matter what business
you're in, you're going to have that
moment. What What's your personal advice
to the individual
in that moment when they're crying in
their pillow?
I would say make sure you're surrounded
by people you can talk to. You know,
it's so so important. You know, I
remember calling I have a a a few fellow
entrepreneurs that I go to when things
are really really tough and we talk
through it. You know, know what you're
getting into as much as you can. You're
still going to go through that painoint.
It will happen. Um, but have somebody at
least one person you can reach out to
and cry your head off and it's okay if
it's a coach, if it's a friend, if it's,
you know, probably needs to be someone
in the business world who gets it. Um,
but I think that's really, really
important or a partner that, you know,
like my husband.
>> So, have that good cry, but then reach
out to people you trust to pull you
through or push you through either way.
>> Yeah. or to say, you know what, you need
to know when to say, you know, I think
I've done everything I can here. Let's
move on to the next idea. I'm wiser now.
I mean, sometimes you need to do that.
>> Absolutely. I mean, we learn from our
failures. And and speaking of on our
show, we love to talk about dirty
unicorns. So, which is your mistakes in
business that we can all learn from. Do
you have one you could share with us?
>> Oh my gosh, yes, I do. I remember when
we were in the frozen novelties when I
first started and we had tea popsicles
sweetened with coconut sugar. And I
thought, okay, people want really
healthy. And uh what I discovered when
um a big retailer in the US called me
and said, "Your products not moving.
This frozen novelty tea popsicle not
selling. Bring your trucks, pick it up,
and get it out." O
and I remember thinking, "Oh my god,
we're this is the end of the business.
This is it. We're done." Like, this is
in the hundreds of thousands of dollars.
I can't even afford to send you a truck,
let alone multiple trucks to all your
DCs. And uh you know, we got through it,
but we it almost took us out. And um
that was part of what made me decide
we're getting out of Frozen. this this
were were and also also the buyer said
one thing to me taste is king. H so you
might think you coconut sugar is what
everybody wants cuz it's it's low
glycemic. It's this and that. Um but
taste is king and that really shifted
and now everything DB's makes is
sweetened only with organic fruit puree
and fruit juice and that's it. And it
has to taste amazing. You should never
have a DB's product that is anything
less than phenomenal.
Well, you told me this story that I love
about um I believe it was your son going
to parties and couldn't eat the things
around him. And you know, as moms, you
know, you you don't want to have the kid
who's not cool and now he's the cool kid
bring in DBs. tell us that story because
I think real world especially moms when
we create products that real world
experience of what people are going
through is is is what guides us. Well, I
think it it's it impacts our heart. You
know, if there's something that leaves
an imprint, I always say like that's the
stuff that's going to stay with you. And
you know, our son would go to birthday
parties. We took him off all artificial
ingredients. you name it. Anything that
wasn't from the earth, no added sugars,
um had to be from fruits, uh or from
nature, and otherwise couldn't eat it.
And so, yeah, he'd go to birthday
parties, they'd have all this colorful
cake and this these treats and these all
these things, and he'd have a brown
piece of fruit leather, and it just
didn't cut it. And he'd come home and be
angry and kick something or hit a sister
or act out. And when he could bring DB's
um it was all of a sudden this product
that he was proud of. It was colorful.
It was delicious. Um and his friends
thought he was awesome. Um and he didn't
have to say I don't eat I can't eat this
and I can't eat that. This was something
that he could eat. He could feel proud
of. Um and and and it's something that
lives today that you know he's still to
this day now he's a lot older. He will
chug back our juice boxes, our freezies,
you name it. He loves them.
>> Well, we also know when when kids don't
like something, they're going to tell
you immediately. So, they're they are
our best focus groups. They're so they
they love their mamas, but they're also
hard on them, right? Um so,
>> Oh, yeah.
>> What What's next? What's the future?
>> Well, the future is very exciting. Part
of the reason I started this was um to
have DBs accessible, have it everywhere
and also at the same time create a
culture where everybody feels like an
owner and so every single person who
joins the DB's team um has that
opportunity for ownership. And so I'd
say it's twofold. It is one is
accessible at a reasonable reasonable
price everywhere like you can get us at
every Target. You can get us at every
Costco and at a reasonable price. I
always wanted organic to be accessible
to everybody. And we work with organic
farms to make sure that we can get the
best product, the highest quality, every
single ingredient is organic. Um, but
it's still accessible to everybody. So,
there's still opportunity for us to get
everywhere. and also to continue
creating this culture because those
lonely moments when you're crying in
your pillow, you just want people around
you. And so every single leader on our
team, our leadership team are investors.
So they're my partners. And then every
person who's been with the company um
for a while has the opportunity for
ownership. And I think of it as like a
warm cozy quilt, you know, with all
those patches. Um and every person is a
patch. and we wrap around each other.
You know, I just went through a hard
time with something medically with my
husband and my my everybody on the team
had my back. Um, so that's what excites
me and that's what I love. The uh
whenever I see or feel a quilt, it makes
me think of my grandma uh who I miss so
much. Um, and I hope your husband is on
the mend to say the least.
One of the things that I just adore
about you is h how much you want this to
be in every store in America and I in in
Canada and I've been thinking about um
how difficult it is to have one customer
set is the store itself and then the
other is the actual consumer. How do you
balance those two?
>> Yeah, I mean and it is a balance. I
always say if people knew, the
consumers, the customers knew what it
actually takes to get that product on
the shelf, um I think they'd be amazed.
I don't think people understand
that from the farm, making the product,
meeting with buyers, getting it into
warehouses, getting it on the store
shelf, you know, there is a it it's
hard. It's a lot of work and it's a lot
of networking. It's a lot of connection.
It's a lot of, you know, connecting with
your consumers in interesting ways so
they also know where you are um in the
store. You know, there's so many layers
of it. Have you ever said no to the
store when you knew it wasn't right for
your end consumer?
>> Yes. When it you know, sometimes we'll
see a a price, a sticker price, and
we're in shock because we know what we
sold to them. We're we're very fair and
equitable across the market. And when we
see this high high sticker and we kind
of, you know, we'll say, "Hey, like
what's going on here?" Um because people
will kind of reach out to us and say,
"Hey, it's so expensive." And we're
like,
>> so that that's tough cuz cuz you don't
really have a say um with the store. But
we've also uh said no when
when we know we also can't survive um at
a price that we have to sell to the
store and they're going to mark it up
anyway. Um so but we need to survive and
I think as entrepreneurs
um we need to know when to say okay we
need we need the financial wherewithal
in order to say no this isn't going to
work because it's not sustainable
>> and then
right I mean that's the whole thing you
want to be able to serve your core
customer in a way that's both fiduciary
appropriate but also the best product in
the world. I get it. So what do you what
do your kids think now? Wow. I mean, um,
you know, this all started with the
teaicles in the kitchen. Are they proud
of their mama? I think they're proud of
their mama. Um, you know, they're it's
very much a family. Every single thing
that happens is we talk about it at the
table. Um, both my kids are in
entrepreneurship now. Um, they both did
a science degree or they're doing a
science degree and they're both young
starting entrepreneurs. So,
>> I love that.
>> It's interesting. And so now they'll
come to me for advice and we'll t chat
through things. Um and I always say I
went to um school to be a PhD and then I
went to the school of hard knocks to be
an entrepreneur.
I think that one that second one's
really a lot even harder, right?
>> Oh gosh. Yeah. Much harder. Yeah.
>> I mean we got to be crazy every single
day. Um so any new products coming out
that you're fired up about?
Yes, we have our juice boxes. They're
actually right above me there.
Yeah. So, they're the first all organic
uh kids prebiotic juice boxes. And so,
those are just coming out all across the
natural market. Were also in uh some of
the Costco regions. Um it's delicious.
Uh David, my son, was one of the biggest
taste testers of this. Um and uh it's
not until David says, "Yep, mom, it's
really good."
that I I think, okay, this is going to
be awesome. So, yeah, we're really
excited about that.
>> I'm so excited. I can't wait. Um, well,
you are a blessing and congratulations
on the growth, on the the roller
coaster. Congrats on being a little bit
crazy. Uh, and most of all, you know,
creating a product that is that warm
quilt makes us all feel healthy and good
about ourselves. Most of all, thanks for
coming on the show, Doc.
Well, thank you and thank you for your
incredible personality and your amazing
show. I just admire you so much. So,
thank you for having me.
>> Appreciate it.
>> At the end of each episode, I like to
give a shout out to a small business
that's doing amazing work. Today, I'd
like to shout out one of Dr. Dion's
favorites, Benny. Benny is a wellness
beverage brand founded by two university
students that creates clean functional
energy drinks made with natural
ingredients like yerba mate and
adaptogens. The company focuses on
providing everyday energy without the
jitters or the crash positioning itself
for a better for you alternative in the
energy drink market. You can check them
out at drinkbenny.com.
Thank you Dr. Dion for coming on the
show and thank all of you for joining
us. We've hoped you've learned a lot.
This has been a big idea from Yahoo
Finance. You can come say hi to me on
any of my social channels at Elizabeth
Gore USA. Also, scan the QR code below
to follow Yahoo Finance podcast or check
us out wherever we get your podcast on
The Big Idea. I'm Elizabeth Gore. As my
grandma always said, hold your head up
high and give them a hell. See you next
time.
This content was not intended to be
financial advice and should not be used
as a substitute for professional
financial services.
Hey.
Hey. Hey.
Hey,
hey, hey.
Ask follow-up questions or revisit key timestamps.
This episode of 'The Big Idea' features Dr. Dion, the founder of DB's Organics, who discusses her journey from being a researcher in maternal-fetal toxicology to building a nationally recognized healthy snack brand. She shares the challenges of bootstrapping her business, the importance of 'sku rationalization' for success, and how she balances creating healthy, organic products with the realities of the market. The conversation highlights her resilience through financial difficulties, the value of having a support system, and her commitment to fostering a team culture based on ownership.
Videos recently processed by our community