Newsletter 156

Top 5 Mistakes New Food Brands Make

1. Underpricing the Product

Problem:

  • Only considering ingredient cost
  • Ignoring labor, packaging, waste

Fix:

  • Include:
    • Ingredients
    • Packaging
    • Labor
    • Overhead

Target:

  • COGS ≤ 30–40% of retail price

2. Inconsistent Product

Problem:

  • “Looks different every batch”
  • Flavor changes slightly each time

Why it kills growth:

  • Retailers lose confidence quickly

Fix:

  • Standardize:
    • Measurements (no guessing)
    • Process steps
    • Batch sizes

3. Poor Labeling

Problem:

  • Missing allergens
  • Incorrect weight
  • Unprofessional look

Impact:

  • Can block retail placement
  • Can fail inspection

Fix:

  • Use a consistent label template
  • Double-check compliance before printing

4. No Production System

Problem:

  • Tracking orders in texts or notebooks
  • Losing track of inventory
  • Over/under producing

Fix:

  • Track:
    • Orders
    • Inventory
    • Production batches

Even a simple system is better than none.


5. Trying to Scale Too Early

Problem:

  • Chasing multiple stores too fast
  • Can’t keep up with demand

Result:

  • Missed deliveries
  • Inconsistent quality
  • Lost accounts

Fix:

  • Grow in stages:
    1. One store
    2. Prove consistency
    3. Add next store

Bottom Line

Retail success is not about getting in — it’s about staying in.

The producers who succeed:

  • Deliver consistently
  • Price correctly
  • Operate with simple systems
  • Grow at a controlled pace