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Getting into Whole Foods nearly destroyed her business

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Getting into Whole Foods nearly destroyed her business

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0:00

There were days I went home and and my

0:02

husband would fall asleep and I'd put my

0:03

head in my pillow and I'd cry quietly,

0:06

you know. Um because it was I was

0:08

thinking, "What am I doing to my family?

0:11

I'm working nonstop. Um I'm eating,

0:15

sleeping, breathing, everything debies.

0:17

Um and are we going to make it through

0:20

financially?" And my husband said, "Are

0:21

we going to be on the street? Like how

0:22

are we going to get through this?

0:31

Howdy y'all. I'm Elizabeth Gore. Welcome

0:33

to the big idea from Yahoo Finance. As

0:35

the co-founder of the small business

0:36

funding platform Hello, it has always

0:39

been my mission to ensure entrepreneurs

0:41

have the tools they need to succeed. So,

0:43

let's cowboy up. Today's big idea

0:46

question is, can I successfully pivot

0:48

from one profession to a completely

0:50

different industry? Our industry focus

0:53

will be health focused snacks. The

0:55

global better for you snacks market is

0:58

valued at 50 billion and is projected to

1:01

reach over 70 billion by 2030. Joining

1:04

me to talk about it today is the founder

1:05

of DB's Organics, Dr. Dion Llo Baker.

1:09

DB's Organics is brand known for its

1:11

organic frozen popsicles and fruit-based

1:14

clean snacks. Dr. BN has grown the

1:16

company from a small startup into a

1:18

nationally recognized brands, including

1:21

major retail distribution collaborations

1:23

such as Disney licensing partnerships

1:26

with a focus on healthier indulgent

1:28

treats for all your families. Here's Dr.

1:30

Dion.

1:32

All right, Dr. Dion, welcome to the Big

1:34

Idea. We're so excited to have you. I am

1:37

so excited to be here. Um, I'm obsessed

1:39

with your coat. So, let's just start

1:41

there. It's so cute. We're so excited to

1:45

be surrounded here in the studio with

1:46

your absolutely beautiful, tasty,

1:49

wonderful products. Tell me how that

1:51

started.

1:53

Oh my gosh, if you would have told me

1:55

years ago I'd be here, I wouldn't

1:56

believe you. I was finishing my PhD in

1:59

an area of medical science called

2:01

maternal fetal toxicology

2:04

and uh really didn't know anything about

2:06

business, minding my own business, doing

2:09

my thing. Um, but our son, we took him

2:13

off all artificial ingredients,

2:14

everything with added sugars, and it was

2:17

really tough to find him treats. One day

2:19

I was in the kitchen with my kids and he

2:21

was making um pops popsicles and his

2:26

sorry, he was making tea and his sister

2:27

was making popsicles and all of a sudden

2:30

they were arguing over who was going to

2:32

do what with mommy and one of them said,

2:33

"Mommy, let's make teicles, tea,

2:36

popsicles together." And I kind of had

2:39

like literally a light bulb go off and I

2:42

realized, my god, I've never heard of

2:44

this. I could make something that David

2:46

could eat and be proud of. Um, and I

2:49

could do something with a heart and a

2:50

soul and build a company pretty naively

2:53

at that time. I really didn't know

2:54

anything. And that's how we got started.

2:56

You know, the the mind of babes, right?

2:58

I mean, you just think about if if if

3:01

kids could start being entrepreneurs at

3:02

three, we'd all be geniuses, right? I

3:05

mean, they always come up with the best

3:06

things. And the fact you're such a good

3:08

mama and you listened, look at look at

3:10

what you've become. It's amazing.

3:13

>> Thanks. Yeah, it is out of the mouth of

3:14

babes, you know, because they're so

3:16

creative sometimes. I think that that

3:18

we're held so tight, you know, right?

3:20

Their minds are just open, you know.

3:23

It's amazing.

3:23

>> And I also um I have to thank you for

3:26

your former career as a as a mama of a

3:28

preeie. And um I it's it's I mean look

3:31

at what you've contributed to the world

3:33

multiple times now. So how did you go

3:36

from your your teicle kitchen to your

3:39

first product? I mean that's that's a

3:41

heck of a leap. It was a heck of a leap.

3:44

Um and it was probably pretty good that

3:46

I didn't know how hard it would be. Um

3:49

you know so I I I had this light bulb. I

3:53

went immediately. I'm a researcher by

3:55

training and by heart. And I looked, is

3:57

anyone making this kind of thing

3:59

anywhere in the world? And nobody was.

4:02

And I I'm the type of person, my mom

4:04

always said, "Oh my god, I'm giving up

4:06

on you." Because if there's a challenge,

4:08

I'm like, "Bring it on." And if you tell

4:10

me I can't do it, I'm like, "Watch me."

4:13

Um, and and that's really kind of where

4:15

we got started and how I pushed through.

4:18

And you know, I had to figure out how to

4:19

make a frozen novelty in Little

4:22

Victoria, British Columbia, where I live

4:24

be in perfect condition when it arrives

4:26

in Florida.

4:28

>> You have to think of every step of the

4:30

way.

4:31

>> I mean, we're we're just crazy enough to

4:33

be entrepreneurs, right? I I mean,

4:35

that's the whole thing is you got to be

4:36

just a little bit crazy to get there.

4:39

And you are because the way I think of

4:41

your company and when we chatted before,

4:43

you weren't just making amazing products

4:45

and figuring that out. you were figuring

4:47

out cold chain which is insane. I mean I

4:50

mean let's jump to that for a second. I

4:52

mean how do you even figure that out? I

4:53

can't imagine the amount of mistakes and

4:56

oh my lord learnings. Tell me. Oh my

5:00

gosh. I remember sending out product to

5:02

Whole Foods that was frozen and calling

5:05

a buyer once and the answer was what do

5:08

you want? It actually wasn't hello. He

5:10

had no idea who it was and I I was like

5:14

I just want to hang up now but is is my

5:17

did you receive my product and he said

5:19

it was melted too bad for you. Um you

5:21

know and so it was it was hard that cold

5:26

chain from when you buy the product or

5:28

you buy the ingredients from the farm

5:30

and it's got to get you know all along

5:33

the way and kept frozen and in

5:35

meticulous condition. It was very hard

5:37

and it's expensive. Um, and you know

5:40

there is a big environmental footprint

5:42

there. And when we had the opportunity

5:44

to get out of Frozen and into the

5:47

ambient shelf stable world, we jumped on

5:50

it. And you know, you must have had

5:54

products that you were in love with.

5:56

First of all, how out of all the things

5:58

you can create, how did you narrow down

6:01

originally? Okay, these are the, you

6:04

know, two to three SKs I'm going to go

6:05

out with. I mean at because small

6:07

business owners they have a lot of

6:08

passions and how did you do it and

6:11

what's your advice to them on how do you

6:12

pick the one

6:15

really really good thought uh I I always

6:18

tell younger or earlier stage

6:20

entrepreneurs

6:22

think about skew rationalization like

6:24

just go out with a few so we went out

6:26

with about four or five um which was

6:29

probably too many but I didn't know at

6:31

the time and we went out with frozen

6:33

novelties which is tough Our velocity

6:36

wasn't great and it was tough, really,

6:40

really tough. We were self-funded. Um,

6:44

and then in 2016 when we came up with

6:47

the idea to make the first organic all

6:50

fruity,

6:53

you know, and we launched it in 2017 and

6:55

it went gang busters. We kind of went,

6:58

"Ah,

6:59

this is how you do it. one skew

7:03

with high velocity

7:06

um creating a category and the business

7:10

really took off. It was just a major

7:12

major change in the company and we got

7:14

out of Frozen completely. What was the

7:16

word? Skew. What did you say?

7:19

>> Rationalization. Skewrationalization.

7:22

Okay. I I feel like we need t-shirts

7:24

that say that because you know we we all

7:26

have products that we're in love with

7:28

and we want to get them out to market. I

7:30

mean, have you had a product that you

7:32

just swore that it was going to work and

7:34

you had to pull it?

7:36

>> Yeah, we we've had a few. I mean, the

7:38

frozen was the first and then we also

7:40

came out with something called dipums.

7:42

Um, which we loved, but it was actually

7:46

a fruit stick that you dipped into this

7:48

powder and you can lick off the fruit

7:50

stick. Um, and we just could not get the

7:53

the the pricing right, like in terms of

7:56

we couldn't manufacture it at the price

7:58

point where we could scale. And you

8:00

know, I'm looking at a box of it right

8:02

now and and it was painful because I was

8:04

like one tier to it.

8:06

>> Yeah. Yeah. It was sad, but you know,

8:09

you never know in the future what what

8:11

you know, maybe we can bring that back.

8:13

Absolutely. Now, I want to go back to um

8:16

that you bootstrapped. Tell me about

8:18

that. What was the risk you took?

8:20

Because it was you and your family,

8:21

right? Kids and the whole deal.

8:24

>> The whole deal. For the first few years,

8:26

it was just us. Um, I would say my my

8:29

husband is my to this day my biggest

8:31

supporter. I have this analogy where you

8:33

each put each other's feet on your

8:35

shoulders and you help them soar to the

8:37

top. And we're both that way. Um, but it

8:40

was tough. Um, we put everything we had

8:43

into starting DBs. And I can remember a

8:46

day in the grocery store, local grocery

8:48

store, where I had bought a bunch of

8:51

stuff. I was with the kids groceries.

8:53

And one credit card, they said, "Oh,

8:55

ma'am, it didn't go through." And I'm

8:57

trying another one. No. Another one. No.

8:59

Another one of my kids. And they can see

9:01

there's tears, you know, my eyes are

9:03

starting to go red and there's a line up

9:05

behind me. And and one of my kids says,

9:07

"Mommy, I've got my I've got some

9:09

money." And I took I'm like, "Okay, take

9:12

away everything just just like the the

9:13

the the milk and the and the bread and

9:16

we're good, you know." And uh it was

9:19

hard bootstrapping. There were days I

9:21

went home and and my husband would fall

9:23

asleep and I'd put my head in my pillow

9:25

and I'd cry quietly, you know. Um

9:28

because it was I was thinking, "What am

9:30

I doing to my family? I'm working

9:33

nonstop. Um I'm eating, sleeping,

9:36

breathing, everything. Debbies. Um, and

9:39

are we going to make it through

9:40

financially? And my husband said, "Are

9:42

we going to be on the street?" Like,

9:43

"How are we going to get through this?"

9:45

>> So, it was tough.

9:46

>> That is tough. And I admire you so much.

9:49

And And for the those business owners,

9:51

cuz everyone, no matter what business

9:54

you're in, you're going to have that

9:55

moment. What What's your personal advice

9:58

to the individual

10:00

in that moment when they're crying in

10:01

their pillow?

10:04

I would say make sure you're surrounded

10:06

by people you can talk to. You know,

10:08

it's so so important. You know, I

10:12

remember calling I have a a a few fellow

10:15

entrepreneurs that I go to when things

10:16

are really really tough and we talk

10:18

through it. You know, know what you're

10:21

getting into as much as you can. You're

10:23

still going to go through that painoint.

10:24

It will happen. Um, but have somebody at

10:27

least one person you can reach out to

10:30

and cry your head off and it's okay if

10:33

it's a coach, if it's a friend, if it's,

10:35

you know, probably needs to be someone

10:36

in the business world who gets it. Um,

10:39

but I think that's really, really

10:40

important or a partner that, you know,

10:42

like my husband.

10:44

>> So, have that good cry, but then reach

10:46

out to people you trust to pull you

10:49

through or push you through either way.

10:52

>> Yeah. or to say, you know what, you need

10:54

to know when to say, you know, I think

10:56

I've done everything I can here. Let's

10:58

move on to the next idea. I'm wiser now.

11:01

I mean, sometimes you need to do that.

11:03

>> Absolutely. I mean, we learn from our

11:04

failures. And and speaking of on our

11:06

show, we love to talk about dirty

11:08

unicorns. So, which is your mistakes in

11:11

business that we can all learn from. Do

11:13

you have one you could share with us?

11:15

>> Oh my gosh, yes, I do. I remember when

11:18

we were in the frozen novelties when I

11:20

first started and we had tea popsicles

11:23

sweetened with coconut sugar. And I

11:26

thought, okay, people want really

11:28

healthy. And uh what I discovered when

11:32

um a big retailer in the US called me

11:35

and said, "Your products not moving.

11:38

This frozen novelty tea popsicle not

11:41

selling. Bring your trucks, pick it up,

11:44

and get it out." O

11:47

and I remember thinking, "Oh my god,

11:51

we're this is the end of the business.

11:53

This is it. We're done." Like, this is

11:54

in the hundreds of thousands of dollars.

11:56

I can't even afford to send you a truck,

11:58

let alone multiple trucks to all your

12:00

DCs. And uh you know, we got through it,

12:06

but we it almost took us out. And um

12:08

that was part of what made me decide

12:11

we're getting out of Frozen. this this

12:13

were were and also also the buyer said

12:16

one thing to me taste is king. H so you

12:22

might think you coconut sugar is what

12:24

everybody wants cuz it's it's low

12:25

glycemic. It's this and that. Um but

12:29

taste is king and that really shifted

12:32

and now everything DB's makes is

12:35

sweetened only with organic fruit puree

12:37

and fruit juice and that's it. And it

12:39

has to taste amazing. You should never

12:42

have a DB's product that is anything

12:45

less than phenomenal.

12:47

Well, you told me this story that I love

12:50

about um I believe it was your son going

12:54

to parties and couldn't eat the things

12:56

around him. And you know, as moms, you

12:59

know, you you don't want to have the kid

13:01

who's not cool and now he's the cool kid

13:05

bring in DBs. tell us that story because

13:07

I think real world especially moms when

13:10

we create products that real world

13:12

experience of what people are going

13:13

through is is is what guides us. Well, I

13:16

think it it's it impacts our heart. You

13:19

know, if there's something that leaves

13:20

an imprint, I always say like that's the

13:22

stuff that's going to stay with you. And

13:25

you know, our son would go to birthday

13:27

parties. We took him off all artificial

13:29

ingredients. you name it. Anything that

13:31

wasn't from the earth, no added sugars,

13:34

um had to be from fruits, uh or from

13:37

nature, and otherwise couldn't eat it.

13:40

And so, yeah, he'd go to birthday

13:42

parties, they'd have all this colorful

13:44

cake and this these treats and these all

13:46

these things, and he'd have a brown

13:47

piece of fruit leather, and it just

13:49

didn't cut it. And he'd come home and be

13:52

angry and kick something or hit a sister

13:54

or act out. And when he could bring DB's

13:58

um it was all of a sudden this product

14:01

that he was proud of. It was colorful.

14:03

It was delicious. Um and his friends

14:05

thought he was awesome. Um and he didn't

14:08

have to say I don't eat I can't eat this

14:10

and I can't eat that. This was something

14:12

that he could eat. He could feel proud

14:14

of. Um and and and it's something that

14:17

lives today that you know he's still to

14:19

this day now he's a lot older. He will

14:22

chug back our juice boxes, our freezies,

14:24

you name it. He loves them.

14:26

>> Well, we also know when when kids don't

14:28

like something, they're going to tell

14:29

you immediately. So, they're they are

14:31

our best focus groups. They're so they

14:33

they love their mamas, but they're also

14:35

hard on them, right? Um so,

14:37

>> Oh, yeah.

14:38

>> What What's next? What's the future?

14:41

>> Well, the future is very exciting. Part

14:43

of the reason I started this was um to

14:46

have DBs accessible, have it everywhere

14:49

and also at the same time create a

14:51

culture where everybody feels like an

14:54

owner and so every single person who

14:56

joins the DB's team um has that

15:00

opportunity for ownership. And so I'd

15:02

say it's twofold. It is one is

15:04

accessible at a reasonable reasonable

15:06

price everywhere like you can get us at

15:09

every Target. You can get us at every

15:11

Costco and at a reasonable price. I

15:14

always wanted organic to be accessible

15:17

to everybody. And we work with organic

15:20

farms to make sure that we can get the

15:22

best product, the highest quality, every

15:24

single ingredient is organic. Um, but

15:27

it's still accessible to everybody. So,

15:28

there's still opportunity for us to get

15:30

everywhere. and also to continue

15:33

creating this culture because those

15:35

lonely moments when you're crying in

15:37

your pillow, you just want people around

15:39

you. And so every single leader on our

15:42

team, our leadership team are investors.

15:44

So they're my partners. And then every

15:47

person who's been with the company um

15:50

for a while has the opportunity for

15:52

ownership. And I think of it as like a

15:54

warm cozy quilt, you know, with all

15:56

those patches. Um and every person is a

15:59

patch. and we wrap around each other.

16:03

You know, I just went through a hard

16:04

time with something medically with my

16:06

husband and my my everybody on the team

16:09

had my back. Um, so that's what excites

16:13

me and that's what I love. The uh

16:15

whenever I see or feel a quilt, it makes

16:17

me think of my grandma uh who I miss so

16:20

much. Um, and I hope your husband is on

16:22

the mend to say the least.

16:26

One of the things that I just adore

16:29

about you is h how much you want this to

16:32

be in every store in America and I in in

16:34

Canada and I've been thinking about um

16:38

how difficult it is to have one customer

16:41

set is the store itself and then the

16:44

other is the actual consumer. How do you

16:46

balance those two?

16:50

>> Yeah, I mean and it is a balance. I

16:52

always say if people knew, the

16:54

consumers, the customers knew what it

16:56

actually takes to get that product on

16:58

the shelf, um I think they'd be amazed.

17:00

I don't think people understand

17:03

that from the farm, making the product,

17:07

meeting with buyers, getting it into

17:09

warehouses, getting it on the store

17:11

shelf, you know, there is a it it's

17:15

hard. It's a lot of work and it's a lot

17:17

of networking. It's a lot of connection.

17:20

It's a lot of, you know, connecting with

17:23

your consumers in interesting ways so

17:25

they also know where you are um in the

17:28

store. You know, there's so many layers

17:30

of it. Have you ever said no to the

17:32

store when you knew it wasn't right for

17:34

your end consumer?

17:38

>> Yes. When it you know, sometimes we'll

17:40

see a a price, a sticker price, and

17:42

we're in shock because we know what we

17:44

sold to them. We're we're very fair and

17:46

equitable across the market. And when we

17:49

see this high high sticker and we kind

17:51

of, you know, we'll say, "Hey, like

17:53

what's going on here?" Um because people

17:56

will kind of reach out to us and say,

17:58

"Hey, it's so expensive." And we're

17:59

like,

18:01

>> so that that's tough cuz cuz you don't

18:03

really have a say um with the store. But

18:08

we've also uh said no when

18:12

when we know we also can't survive um at

18:15

a price that we have to sell to the

18:16

store and they're going to mark it up

18:18

anyway. Um so but we need to survive and

18:21

I think as entrepreneurs

18:24

um we need to know when to say okay we

18:26

need we need the financial wherewithal

18:31

in order to say no this isn't going to

18:33

work because it's not sustainable

18:35

>> and then

18:37

right I mean that's the whole thing you

18:38

want to be able to serve your core

18:40

customer in a way that's both fiduciary

18:42

appropriate but also the best product in

18:44

the world. I get it. So what do you what

18:47

do your kids think now? Wow. I mean, um,

18:49

you know, this all started with the

18:50

teaicles in the kitchen. Are they proud

18:52

of their mama? I think they're proud of

18:55

their mama. Um, you know, they're it's

18:57

very much a family. Every single thing

18:59

that happens is we talk about it at the

19:01

table. Um, both my kids are in

19:04

entrepreneurship now. Um, they both did

19:06

a science degree or they're doing a

19:08

science degree and they're both young

19:11

starting entrepreneurs. So,

19:13

>> I love that.

19:14

>> It's interesting. And so now they'll

19:17

come to me for advice and we'll t chat

19:20

through things. Um and I always say I

19:22

went to um school to be a PhD and then I

19:25

went to the school of hard knocks to be

19:26

an entrepreneur.

19:29

I think that one that second one's

19:31

really a lot even harder, right?

19:33

>> Oh gosh. Yeah. Much harder. Yeah.

19:37

>> I mean we got to be crazy every single

19:39

day. Um so any new products coming out

19:41

that you're fired up about?

19:43

Yes, we have our juice boxes. They're

19:45

actually right above me there.

19:48

Yeah. So, they're the first all organic

19:51

uh kids prebiotic juice boxes. And so,

19:54

those are just coming out all across the

19:56

natural market. Were also in uh some of

19:59

the Costco regions. Um it's delicious.

20:02

Uh David, my son, was one of the biggest

20:04

taste testers of this. Um and uh it's

20:07

not until David says, "Yep, mom, it's

20:10

really good."

20:12

that I I think, okay, this is going to

20:14

be awesome. So, yeah, we're really

20:16

excited about that.

20:17

>> I'm so excited. I can't wait. Um, well,

20:19

you are a blessing and congratulations

20:22

on the growth, on the the roller

20:24

coaster. Congrats on being a little bit

20:27

crazy. Uh, and most of all, you know,

20:30

creating a product that is that warm

20:32

quilt makes us all feel healthy and good

20:35

about ourselves. Most of all, thanks for

20:37

coming on the show, Doc.

20:39

Well, thank you and thank you for your

20:41

incredible personality and your amazing

20:44

show. I just admire you so much. So,

20:46

thank you for having me.

20:47

>> Appreciate it.

20:49

>> At the end of each episode, I like to

20:51

give a shout out to a small business

20:53

that's doing amazing work. Today, I'd

20:55

like to shout out one of Dr. Dion's

20:57

favorites, Benny. Benny is a wellness

20:59

beverage brand founded by two university

21:02

students that creates clean functional

21:04

energy drinks made with natural

21:06

ingredients like yerba mate and

21:08

adaptogens. The company focuses on

21:11

providing everyday energy without the

21:13

jitters or the crash positioning itself

21:15

for a better for you alternative in the

21:17

energy drink market. You can check them

21:20

out at drinkbenny.com.

21:22

Thank you Dr. Dion for coming on the

21:24

show and thank all of you for joining

21:26

us. We've hoped you've learned a lot.

21:27

This has been a big idea from Yahoo

21:29

Finance. You can come say hi to me on

21:31

any of my social channels at Elizabeth

21:33

Gore USA. Also, scan the QR code below

21:37

to follow Yahoo Finance podcast or check

21:40

us out wherever we get your podcast on

21:41

The Big Idea. I'm Elizabeth Gore. As my

21:44

grandma always said, hold your head up

21:45

high and give them a hell. See you next

21:47

time.

21:55

This content was not intended to be

21:57

financial advice and should not be used

21:59

as a substitute for professional

22:00

financial services.

22:22

Hey.

22:39

Hey. Hey.

22:44

Hey,

22:52

hey, hey.

Interactive Summary

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.

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