Transcript

Bobo’s: Beryl Stafford. A Single Mom Turns a Baking Project into a $100M Business

0:10 My family thought That I was cuckoo to do this. I remember having lunch with my sister once in Boulder. And she said well What? You're gonna do this? You're gonna

0:21 delve into this and actually make it work. And I said, Yeah. What do you think? And she said, Well How many of those can a person eat? And I thought to myself, how crazy of a question is that. You know, she doesn't really get it.

0:35 And I said How many people are in the country? Welcome to How I Built This, a show about innovators, entrepreneurs, idealists, and the stories behind the movements. they built. I'm Guy Raz, and on the show today, how a single mom

1:00 She started her life with a four ingredient recipe. built it into a$100 million brand. Belboos. A business idea almost always starts with solving a problem, right? But starting a business for most people

1:22 Is also about necessity. about needing to earn a living to do something with your life. And that can be really hard, especially if life through a curveball early in middle age. That's what happened to Beryl Stafford.

1:36 In her early forties, her marriage collapsed and she had to figure out how to earn a living. For more than a decade, she'd been out of the workforce. Focused mainly on raising her two daughters. So when her marriage ended, Beryl felt like any skills she had as a mom weren't translating to the job market.

1:55 So out of desperation, she started a small business. She did what she was good at. And in Barrel's case That was baking. She baked homemade oat bars made with fruit and coconut and sometimes a bit of chocolate. She'd wrap them and cellophane and try to get local coffee shops to sell them. Mm.

2:13 This was back in two thousand three, and I should mention, Beryl's great good fortune was that she lived and still lives in Boulder, Colorado. And if you know anything about Boulder's economy. you'll know that it's kinda like the Silicon Valley of natural foods. Celestial seasonings, White Wave, which makes silk soy milk. Easy sparkling water and Justin's nut butters.

2:36 all started in Boulder. And Beryl Stafford, who knew nothing about the food business or business at all, Was able to tap into her community to figure out how to grow her little snack bar brand, which she called Bobo's Oat Bars. At one point, to save cash, she shared a kitchen and employees with Justin from Justin's Nut Butters. Bobo's grew slowly for its first decade, but eventually was able to scale. Today, the brand is estimated to do around$100 million in annual sales. And Boulder, by the way, is where Beryl ended up Almost by chance, she actually grew up in a small town in Louisiana.

3:14 A few hours drive from Baton Rouge. Yeah, it was kind of Консиерт і вод, з алотів Лумбер бізнес. And it was a very Kind of beautiful small southern town with big oak trees.

3:28 Not a lot of crime. We never locked our door. And then I graduated from high school and decided I didn't want to follow the path. of my brothers and sisters and my uncles and aunts and parents And go to Tulane or LSU. I wanted to go somewhere else outside of Louisiana.

3:48 And uh my And lived here in Boulder. And I came out here when I was in high school with a girlfriend and thought I had died and gone to heaven I wanna

4:00 Come back here. And I applied and my parents said, Great. You know? One one less person to worry about in Louisiana. So you decided to go to Colorado

4:10 When you got to the University of Colorado in nineteen You know, seventy seven. Seventy seven, yeah. Uh did you have like a Pick. Louisiana accent.

4:21 Yes. And I was in the dorms and my friends would say Come over here, listen to the way this girl talks. You were like a curiosity. I was a hick from Louisiana. And and we had this thing on campus called It was a pizza place called My Pie.

4:38 But I called it my pie, and my friends would say, Say it, say it. This is hysterical. And so when you're eighteen, you quickly Change because you want to fit in. Yeah. I think that's why I changed my accent so fast. I kinda sound like a Yankee now. But when I go back home it kinda comes back Yeah. Uh I know everybody says that to me. You don't sound like a southerner.

5:02 Yeah. All right. So when you graduated, right, I guess you did a a few different jobs like um I think for a few years you were a paralegal and and and also you met a guy in Boulder and I think when you were in your late twenties maybe. Uh and you got married. Right. Um and I think a coup you know, within a couple of years you guys had start a family, you had two girls. Yeah. Mm-hmm. Um, and from what I understand, you decide you really want to

5:27 Be full time. At home with the girls. Yeah. It was a lot of that. Um

5:32 Driving them around. being involved in their activities and then Uh you know, my friends became the parents of their friends. That was that was okay for me.

5:47 And and then when I wasn't married, when I became unmarried Um I still didn't know what I was gonna do. I I don't wanna um I don't wanna r revisit this um this time of your life'cause I'm sure it was

6:00 Really hard, but I know that At some point the marriage breaks down. And and it starts to unravel. Um And I think you were

6:12 What, early forties maybe? I was I was just turning forty. I can't imagine. What? that period in her life was like lawyers and and court and

6:25 Depositions. It's Right. I mean and and that's sort of what began to happen to you. It was probably the worst time in my life. And and like you said, it went on for so long and I I don't remember I probably blocked it out, but

6:40 Maybe two years, but maybe just a year, but it was an awful period in my life. It was the kind of feeling where Your heart physically hurts. Yeah.

6:52 I remember feeling that. And Did you have the girls with you most of the time? Uh we s we split fifty fifty. He insisted on that.

7:03 You know, I I knew that my life was gonna be a lot harder. But When you're all of a sudden a single divorced mom. You have to figure out how you're gonna support yourself.

7:17 And I Didn't want to go back to a law firm and put on a pair of pantyhose. And Go work for someone else, but I didn't know what to do. I did get a job making seven dollars and forty five cents an hour at this kind of gourmet cooking store called peppercorn here in Boulder. And it was just kind of biding my time because my lawyer said you have got to get a job. while you're going through this divorce.

7:44 And so it just took me a while to figure out What I was gonna be. And I was getting advice from people going to tech. you know, learn how to write software and Yuck. I had no interest in that.

7:59 I look at somebody who's forty now as a somebody into my fifties and I think oh they're young. But when you're forty And you hadn't worked for, you know, at that point in an office for How am I gonna do that? How am I gonna

8:13 Start a career again. Yeah. Who who's gonna hire me, you know? Yeah. And the Gourmet store you you worked there b I'm assuming'cause you liked did you get had you gotten into cooking So I had been a cook all my life, and as a matter of fact I did a little catering on the side just for some extra income out of my kitchen. For friends and

8:35 I I always love to cook, so I thought well this will be perfect for me. Self taught, like using cookbooks and Yeah, just self taught. Um Paul Prudholm was big. Yeah. Marcella Hazan is one of my favorites. Oh, she's amazing. Uh the Tomato, the canned tomato and butter and onion. Oh I've made that many times. You just canned tomatoes. Butter and a an onion.

9:05 Yeah. I have some in my freezer right now. And were you known like in your friend circles as like oh we should go to Barrel's house because she's cooking tonight. Yeah, she loves to cook. She's a great cook and and we entertained a lot. And as a matter of fact, I worked for a caterer a little bit to see what that was like. And learn the ropes. Um it was Very hard.

9:28 It didn't really work with raising kids, I thought. And I quickly that wasn't for me. It's too hard. And I know that there's a and I say this not to minimize the the the accuracy of it, but there's a basic story, which is one day, a rainy afternoon, Beryl and her daughter bakes some oat bars and the rest is history. But I think you probably agree it's not exactly how it happened. I mean you probably baking Baking together for

9:57 A long time. Yeah, and she she did open up the cookbook and say, I wanna make these. Just one afternoon. Yeah, just one afternoon and she was twelve. Or fourteen. Yeah. Somewhere around there. Yeah, what by the way, her name is Alex, right?

10:13 Alex, but when she was born, Alexandra Seemed like too big of a name for a baby. Yeah. You know? And so just as a little nickname, we called her Bobo for no reason, just cute name. So the the recipe she found had four ingredients and I happened to have them all in my cupboard and I said great You know, do it. And they were delicious.

10:36 Yes. They were dripping in butter and corn syrup. And it was just it was it was like probably corn syrup oats. Oh corn syrup. Uh brown sugar. Yeah. And and butter.

10:49 Then you cook them on low temperature for like Fiftees. Yeah. And they were really good. And She was taking him to school and sharing them with her friends.

11:01 And then she said, Mom, I gotta make some more. People love these. I said, Okay, let's keep making'em and I had some friends in the natural food industry that were saying you gotta make these healthier And sell them. 'Cause they're made with corn syrup at the time. Corn syrup and butter and

11:19 Although now butter is fine, butter's great. Yeah. And corn syrup is is a weird one because You know, it's just another kind of form of sugar. I guess people I guess um companies tend to use More of it,

11:32 And I think it's a Well it is genetically modified. So that's the problem and it it's got a great shelf life and it gives you a great mouth feel. But it's You know, bad for you. Say the experts. Use

11:47 Like a different kind of sh sugar, a cane sugar. Or what Yeah. Well what I picked was Sukanat. It's a less processed Brown sugar. Then

11:59 Brown sugar. Yeah. And so I I picked that. Now we use coconut oil, but coconut oil was one of the First oils that are used. And instead of corn syrup, I use brown rice syrup. Mm-hmm. And it wasn't so easy that I just aha, this is what we'll do and bought those ingredients. We we tried

12:18 Different. Ingredients for many months. You're making these bars. Your daughter is saying people want them. Can you make more for school? Then you have friends who are like, you should change the ingredients up, but I'm thinking

12:35 The subtext there was like hey. Peril, like maybe there's something here, here. Is that was that there? Yes. Like how fast did that start?

12:45 I would say after a few Weeks because she this was a a thing that she was doing, making these. I mean that didn't last that long. You know how kids are. She just That that phase was gonna Peter out quickly. And so g so that's when Lara Bar had just come around and Cliff Bar was here, but we're all kind of new, you know, and Vegan was new.

13:11 And they said, you know, go to Whole Foods and see h what the bars are like. There's it's growing, it's becoming a bigger category. And also with the backdrop of me not knowing what the hell I was gonna do with my life. Maybe you should make these and sell them. Guess what? I was hearing.

13:29 What was it about the like this recipe that was like You know. Versus I don't know some chocolate blondie re or some some cookie recipe that you'd made, or something else that you made. They were they were unusual because they were a f they were fresh baked And for a bar.

13:48 that you might sell in a retail store, there aren't that many fresh baked But a lot of them were guillotine pressed. like like a yotine, like it just cuts it. Cuts it. Cuts it in four corners. And they were great. And I I didn't have any other options. You know, I didn't have anything else to do really. And so it just kind of became This idea.

14:11 And her nickname was Bobo, that's so catchy. And uh and so we thought Bovo's oat bar. Well that's kinda cute. And I didn't think anything of it more than it'll be some kind of hobby or this will be farmers markets maybe or something. Yeah, farmers market. You know, I I didn't spend a lot of money on it or a lot of time.

14:34 And also my kids thought I was insane. They were becoming teenagers and they they were like weirded out by it that I would do that. But I didn't care. And so I I uh I wrapped'em in saran wrap. Without a label for a few days and brought'em around to my neighbors and changed flavors and and I kept working on the ingredients.

14:55 And then my girlfriend came over one day in my round kitchen table. And we sat down and she said, You know what? Let's draw you a label and we'll call it Bobo Zoe Bars. I think that's a great idea. Go to your kitchen drawer and get me a Sharpie. And she right there drew on a piece of paper the girl that's on the bar to this day. I mean in five minutes. And she was um trained w in graphic design, but she was also a stay at home mom and she wasn't working. And she said, No, this will be cute. We'll draw a little girl and and make the writing kind of

15:29 fun, homemade looking. And we'll we'll go to the brewing market, which is right down the street, coffee shop. And I'm very shy and I'm like I don't know how to do that and I don't have experience in sales or the food business. And she said, So what? You know, let's just try it. It'll be fun.

15:48 And so I wrap them in saran wrap and I go to the printer, I get labels printed with her artwork. With no nutritionals And I put the word organic on it. Not knowing that I couldn't get certified organic, yeah. Um but I did anyway.

16:06 'Cause all my ingredients were organic. And I soon changed that. But but in that but in that context of just like selling it in a little store, you could you gotta get away with it. And so I wrap up a few I had four flavors. Original chocolate.

16:21 Cranberry. And coconut. Mm-hmm. And she said, Okay, I'm gonna take you to the coffee shop. And I'm gonna make the block, you get out.

16:29 And you go to the breeze and ask if he wants to sell'em. And I said, No, I'm I'm scared. What do I say? And she said, Get out of the car. I'll see you in a little bit. And so I walk in there, and this was, you know, twenty years ago. There was a long line. The barista standing there hardly can keep up with making lattes. And I'm standing there looking at him and and I don't want to stand in that line. And so I just walk over and put it down on his little shelf and he's looking at me like I'm insane and he goes, What is this? And I go, I just want to see if you'll sell these, they're vegan and I had a little cell sheet and I dropped them off and I ran out. And he said Well wait, hold hold hold on. What do I sell these for?

17:09 And of course, I hadn't thought about that. I thought he would know. And I I just uh made something up two fifty or two dollars. And and he was irritated and ran out, and then I had the courage to go back in in two weeks, and he said, I need some more of those. They sold out. And then he reordered in about a month, maybe, and I was shocked. And I I just went back and made more

17:34 And that was 12 bars. And he said we do get a lot of vegans in here now. So great. I don't have any vegan options. And so I brought in more and Gradually I made$14 one month, I'll never forget. And I thought, okay. This might work. Fourteen could be

17:53 Fourteen thousand. When we come back in just a moment. Barrel saves money by sharing a commercial kitchen, but Burns through it. By buying her ingredients.

18:07 The wrong place. Stay with us, I'm Guy Roz, and you're listening to How I Built This. Hey, welcome back to How I Built This. I'm Guy Raz. So it's around 2004, and after getting her homemade oat bars into one coffee shop. Barrel starts baking more of them and shopping them around town. I had gotten into a little

18:42 Co op. In Boulder that opened and wasn't around for very long, but they were the perfect store for me. Very granola ish. And they didn't mind that I was wrapped in saran wrap with a three day shelf life. And and they sold very well there. And then I had a call from Some random

19:02 coffee shop and and I got in there and then there was another little local grocery store. called Lucky's that actually is now owned by Krugger and has grown. But same thing I just went in the back door with a couple and So it was mostly Are all local.

19:21 co ops and s and little s shops and grocer grocers. And coffee stores in Boulder. Yeah, and they had a three day shelf life. They did with the saran wrap in the very beginning. Here's a question for you.

19:37 You the boulders uh I mean it's not tiny town, but it's c compared to Los Angeles or New York, it's a small town. And probably It's not uncommon to run into people you know a few times a week. Right randomly in bolder. And you uh knew people, you'd literally been there since you went to college

19:55 Was any part of you like Nervous or worried that Like somebody would see you and they'd be like, Barrel? Are you w what are you doing? Where are you what are you selling?

20:06 Yes, I can't believe you said that because Yes. And And it was such a stupid fear, but I was afraid of People seeing me because it was a new me.

20:19 Yeah, you know, I was a stay at home mom tennis player. who had a social life, and now this was the new me and I m I was put in such a tough situation that it was sink or swim. I m I was trying to survive. And in the beginning I that's that's not what I was thinking. I didn't think it was gonna make a living for me.

20:39 But I th I thought maybe, what if it did? And what if I just made a little bit of money. and lived on that. I would be okay with that. You know. Because I thought it was so fun and so unusual to be able to bake something

20:54 And people are gonna buy these, you know? Wow, that was just So remarkable to me. It was A miracle that somebody would actually buy take them home and eat them, feed'em to their family. It was like playing store. Do you remember in those early days when you were selling at the coffee shops?

21:14 Ever running into somebody. Who said Something like that Oh, hey Beryl, I so I I hear you're doing this like Gorilla Bar thing? Yeah, t you everyone.

21:24 Oh yeah, how's the cookie business? Yeah. Kind of in a condescending way. Yeah, it those things hurt. A at the same time you're going through some self doubt. And apparently your own children were

21:38 Doubtful about this. Oh yeah. And and of course my ex husband He was like But I mean

21:45 Oh what are these stupid bars doing in my country club? Yeah, that came back to me and I thought Well Success is a good pushback. So at what point do you remember?'Cause this is

21:59 You know, I can imagine you were baking them yourself. For the coffee shops,'cause you're dropping off what? A few dozen or a dozen at a time. A dozen. Yeah. All right. Dozen at a time, so you can you you can manage that. Um but I guess at a certain point you had to move out of your kitchen, right? You have to do this in a bigger space. Yes. And I knew that from the beginning the

22:20 health department wouldn't like that. So I found a shared kitchen. They were looking for More Cooks or people starting to rent space, right? To rent space. And they were a sandwich delivery company. And they wanted somebody to come in a couple of days a week and use their ovens.

22:38 And pay them pay them a rental fee or whatever. Yeah, and and like hourly or daily. And so I came in one day a week. And use their oven. And I hired some of their people that worked for them.

22:52 Two girls. To help me. And um until I did that for probably a year. And and did you Uh I mean

23:02 kind of professional packaging. So so then I knew I had to extend my shelf life. This was crazy. And I finally ended up with my first packaging machine. the biggest piece of equipment that I bought for twenty five thousand dollars.

23:23 How did you how were you able to do that? Uh I went to the bank. Back then it was easier and they gave me a loan for a hundred thousand dollars. But first up until then I took a second mortgage on my home and And I use credit cards. And I I just was very frugal.

23:41 And I mean this was all just very scrappy. I I didn't know anything about payroll and And I didn't care. I d had no idea if I was making any money. Or what things cost. I just knew at some point I'd figure all that out. Um so so then I I outgrew finally this commercial kitchen.

24:04 But a next door space became available. in another commercial kitchen and so I went over there loved it Left and when I went back the next day to sign Um another food entrepreneur had gone in.

24:21 And I said I I got it first, though. I was there first, and he said let's work a deal, let's share it. And it's Justin's nut butter. Oh and so he and I ended up and he started just like me, knowing nothing, making this peanut butter in his kitchen. And so he and I jointly took this new space bigger, and it was just the two of us.

24:43 And we formed a little LLC. It was crazy. And we shared employees and we shared the space. Wow. So you basically pooled your resources in but you had your separate businesses. But that L C that you formed Covered employees who did work for both of you and

25:03 And the space. Right. And the employees would one day make nut butter and one day make Oat bars. What an interesting idea. So That LLC was it was the employer.

25:14 Yes, and our only expenses were rent and payroll. Otherwise we we've had our own Bank accounts. And and you guys got along great and that worked okay. Like what if he needed

25:29 More help and you know and we argued about it all the time. Yeah. And and I had a bookkeeper that I had just found. And so I turned her on to Justin. And he was like me, he said well

25:43 I don't understand what she would do. We'll never forget he said that. And I said, Trust me, she's gonna help you. So we ended up sharing her, but we'd ha we'd argue about it. So when she was working for me, of course, he couldn't help himself to come in and say, Hey, I've gotta quit question for you. You know, did I screw up in on this Check and it was always like No no, get out. You can't talk to her now. You have to wait till tomorrow. I I imagine that your costs I mean you said you borrowed a hundred thousand dollars from the bank

26:12 Which is a lot, but also, um, I mean Your costs were what? Buying oats. And Sugar and

26:21 uh coconut oil and were you buying it Like I don't know, at Costco? Like where were you buying this stuff? Believe it or not, I was buying it at Whole Foods full retail. Wow in the beginning. Crazy. And then Then I started buying it in bigger bulk. But at Whole Foods until I figured out the food distribution network.

26:43 But crazy expensive. But I did that for almost a year. Just figuring out the ingredients. I mean this with the utmost respect because I I think that it's v not uncommon, but also it takes a lot of courage.

26:59 Sounds like you didn't know really know. Much at all. Like he didn't know the industry. You know about like How to run a business you didn't know. How to buy your

27:08 Products. I'll write a bill on the piece of paper and I just gotta keep moving. Yes, exactly. And Cell Cell Cell. First and foremost on my mind every day, once I started taking it seriously.

27:22 But Then you know, I joined the Naturally Bulder Network, which is a non profit organization to help food entrepreneurs that were just starting and and didn't know anything. And surrounded myself with people that were doing this or had done this, most of them advised me to stop baking.

27:43 Have somebody else bake this, and you focus on sales and marketing. And I said no, I I want to control this and I don't want them to look Like their guillotine cut with four square corners. They're imperfect, each bar, and I wanted them to look like that.

28:01 Right. And you were selling the bars, do you remember at that point how much you were selling the bars for before This isn't like two thousand six ish. I think uh I I think I was selling them for a dollar seventeen. Wow.

28:14 And then they would sell'em for two or two fifty or whatever. Or or or a dollar seventeen to distributors. Right. Okay, then so But you probably weren't profitable yet. I mean you were probably spending more than you were bringing in still. So I I was

28:29 I became profitable probably f six years after I started, six or seven years. Okay. I think it was maybe around two thousand seven. that you manage to get into the whole foods in boulder. Is that right, that sound right to that? Yeah, that sounds right. And um I think back then you could walk into a Whole Foods. It was the the company had a lot more Autonomy.

28:53 and say, hey, I'm making these, I'm local and and often they'd say, Great, this sounds cool. Uh tell me h uh how you got into that Whole Foods. Yeah, so they were very into the local entrepreneur, the local farmers, that was their thing and And it worked like that. You could get into one store, they might then spread you into other stores in that region. But after I kind of got my courage up and I felt a little more confident in this Bobo Bar, I had sold it to Co op for a while, I walked into the bakery, And I asked for the manager and she said Oh.

29:28 Well, we've been buying these and eating them from the co op down the street. Oh wow. We've been wondering when you're gonna walk in. And I said, Duh, you know, it took me so long, but I I said great, you know, and she said, Yeah, let's let's talk about this. Let's bring these in. And we're just having a conversation right there and on top of the bread, you know, just standing there. N no office visit. She said, Yes, I want these, tell me everything. But you're gonna have to get your packaging together. In other words, I need a freezer safe. Packaging.

30:01 And I said, You got it. And she goes, I'm gonna get you in twelve of the Colorado stores. She said that even before you were in just that one? Yes. And she said, I need you to demo in all of these stores. And I said, Okay, you got it. Not even knowing what she meant, not knowing about freezer safe packaging, but I just Said, Oh yeah. And

30:26 Um I walked out of the store. pinching myself. But freaked out because I had no idea what she really wanted me to do. So I called my packaging guy and by that time I had my packaging machine.

30:39 I need to be freezer safe. I need Six months shelf life. Six months shelf life. And uh w did that scare you? I mean

30:52 It scared me that I didn't know what to do. I didn't know how to do it. But no, I knew I'd figure it out. I mean, I'm like, are you kidding me? This is my big break. Yeah. you know, asked around what's the best way to do the demo. I called the stores in Denver. I'm coming in this weekend.

31:09 Can you tell me the best time to come? Most of them hang up on you'cause They don't wanna teach you. Yeah. You should know what you're doing.

31:18 And and and doing a demo is not really that hard. So So that's what I did every weekend for a long time. You know, and the whole time I'm I'm figuring it out. I'm I'm showing up at these Whole Foods and they're telling me You've got to get the word organic off your label.

31:35 Right,'cause you were using organic this and organic that and you're like, it's organic. Yeah, and they're saying no, you gotta go through the certification process. You have to get that organic certification is cost money. Yes. And time. Yeah. And so I

31:50 I stopped using an organic uh an ingredient that I was using organic. I started using conventional Um stayed with conventional oats, which was eighty percent of the product. And so so then I I said made with organic ingredients. And then I came

32:07 You really can't say that. You know, there's there's all these limitations on what you can say. But I I pushed it as long as I could. So all right, so you are um in Whole Foods and you start to demo this,'cause that's how you get people to buy it. And it's and you were the demo person or did you bring anyone else on to help you? I was in the beginning because it was expensive to have somebody stand there for four hours. Yeah. And and I enjoyed it.

32:33 I mean it was it took up my whole weekend. How did you yeah, tell me a little bit about the experience of putting yourself out there because You're not a performer. You're not like I don't think you were you like a drama kid in high school? Did you do the play, the theater or any of that? No. You weren't that drama. You were not that kid, right? You were the one who was like in the back of the choir, like Oh God, well they made you all sing, right? You're like, I don't really don't want to do this.

32:57 So now you are on stage. You as a demo person, you are on stage. You are embodying a character'cause you gotta sell stuff. Right. You're acting. Yeah. You're the busker. Um but these are all strangers coming to me.

33:14 They don't know anything about me. They don't know that I'm just trying to figure this out. So it became a lot easier fast. I I I always tell people when you're standing behind that table You know, you're kind of in charge and they don't know anything about you and they're happy to eat free food.

33:32 And I got good at it. And and I got good at the trade shows for that reason. I felt like once I'm behind that table, I'm safe. And and so you w you're in Whole Foods and you start to go to trade shows, and presumably the big ones, right? The Anaheim one, the Baltimore one. But you're still small. It's it's it's Were you the only full time employee even once you were in Whole Foods? Yes.

33:56 uh for a few years and then i hired a marketing assistant slash sales assistant And she did the trade shows with me. And then I had my bookkeeper who was a contract laborer. Well, they're all part time, though.

34:14 Yeah, I didn't want to manage people. I didn't know how. I didn't have experience in that. And I knew I needed help. And and I did that for many, many years and basically burned myself out. After Ten years.

34:34 Like that becomes required in order to It hit more stores, a lot of stores. Yes, so I had a small distributor here. DPI it's called, and they started taking my bars to whole foods. in Denver and uh

34:52 It was the first palette. I had ever used and I didn't even know what a pallet was when I started the business. And I have a picture of me in this truck, but that was my first um foray into distribution and then I'm at Expo West one year. This is in in Anaheim, the biggest trade show, and a woman walks up to me quickly with the clipboard and says here, I I need

35:17 Please fill out this paperwork. UNFI East and UNFI is our biggest natural food distributed in the country. They have an East Coast distribution network. She said, Please fill this out. I'm running the whole foods and the whole east coast. And I need I wanna get your bars in there. Please fill out this paperwork to get into distribution. Thank you. And she walked away.

35:40 And I thought Wha w what just happened? So this means now I'm in national distribution. And that just kinda fell in my lap. And I I didn't know how to fill out distribution paperwork. So I I did and I figured it out and And now I'm in

35:57 the whole country of whole foods. Wow. And I was really taking it seriously then, and I was excited about it. And and I was working very, very hard. And travelling a lot to Seattle, Austin, near Southern Cal.

36:14 Where I thought was the best market. Hard. A vegan oat bar. Yeah, how are you ha how are you positioning them? You you describe them as a vegan oat bar, but of course This is really like the Up.

36:27 Sort of. Prime time. era of gluten free is really starting to take off and organic obviously is it but but gluten free's a big one, right? vegan gluten free. So

36:41 Did you jump on that at all?'Cause oats are normally gluten free. Oh yeah, uh that was a big thing for me and as a matter of fact in the beginning I had a gluten free line That was made with certified gluten free oats and then the regular oats. Even though oats are gluten free, they gotta be certified. Cross contamination sometimes, yeah. out in the field and so I had those two lines going. It was too confusing for the consumer because they had the word gluten free written under there.

37:09 So I ended up just making them all gluten free, and yes, that was a big selling point. It's a it was a big feature for us then and is now. And by this point, I mean by I don't know Six years in, I guess both your daughters are probably in college, out of the house, right? So you had time So really.

37:30 Dig in. Dig in. Yeah. Yeah. And I did, and I worked All weekend. At night.

37:37 I was Obsessed with making this work. But I was having fun. Um, I would say I was kind of in a vacuum because I'm still doing everything myself. Yeah. And and that part was hard. Um but I didn't want to partner.

37:53 Because I couldn't figure out who that would be or what they would do. And by the way. When you're in every Whole Foods, you know, it's great, but it's not atypical to do around, I don't know. Anywhere from five to ten million dollars in sales. Like even if you're in every whole foods.

38:09 By and large, many of the the brands at Whole Foods are still very small businesses. Yeah. I mean I I was probably bringing in I don't know, maybe Five million at that time. Which still you probably were

38:23 That was great. Four million given that you had started it, you know At zero. At zero, right. And and I was very profitable. And lean. You did have a h whole whole bunch of people. Right. Um

38:37 w what do you remember, I mean, even six years in. Right, two thousand ten when you're profitable finally. What were things that y you that were just so hard for you to figure out that you probably could have figured out earlier had you done things a little differently.

38:53 I probably could have hired uh more elevated salesperson in the beginning. I was doing it all myself. And I didn't have relationships with the buyers.

39:06 So a more seasoned sales expert, if you will, probably would have been a good hire. You know I I learned everything about the business though. So I do think it's important to try to do everything yourself in the beginning, as long as you can. Yeah.

39:24 I mean, how did you, for example, figure out how to price it? Um You know what I did in the beginning, I just went to Whole Foods and I saw what everybody else was charging for their bars. And my bar was bigger than most. It's a three ounce and most bars are an ounce and a half, two ounces. So I kinda bumped it up a little.

39:42 You know, I feel like I went on my instinct a lot. And I had a lot of naysayers. around me. Who who who why why why would somebody be a naysayer? Don't do this. Don't do this. You're crazy. You're gonna have to sell too many to make a living at this and you need to make a living. And Family, I always say family is the worst person to get advice from in the beginning.

40:07 Because they don't want you to fail. And my family thought But I remember having lunch with my sister once in Boulder.

40:19 And she said, Well, what you're gonna do this, you're gonna delve into this and actually make it work? And I said yeah. What do you think? And she said, Well How many of those can a person eat? I and I thought to myself, how crazy of a question is that. You know, she doesn't really get it.

40:35 And I said How many people are in the country? Well we come back in just a moment. Bobo's raises some outside money, and all of a sudden the pressure.

40:49 Stay with us, I'm Guy Roz, and you're listening to How I Built This. Hey, welcome back to how I built this. I'm Guy Raz. So it's around 2014, and Bobo's is profitable, but Beryl is still doing a lot of the work herself. And there's another thing to worry about. competition as the snack bar market is starting to explode. Yeah, I did get a little nervous when I would see new brands.

41:37 come after me. I've thought maybe they had more money behind them. They knew what they were doing, but I I just was a firm believer in the flavor of my bar and the taste. And it was a little different because they're imperfect, they're a little bigger. And I got positive feedback.

41:56 Constantly. I I just I knew it was gonna work. I had to make it work. And What about marketing? I mean, even you know Bringing in five million dollars in sales is great, but

42:08 doesn't leave you with a lot to spend on advertising, right? So how are you What were you doing to get people to become aware of the product? You know It was mostly in person demos and then I did hire demo teams, a lot of them. And th they were very expensive and they could only be there at at the store

42:30 For two to four hours. And that's your audience. And then after that you you missed a lot of people. Yeah. And you've spent two hundred bucks, which to me was a lot then. And I wasn't doing

42:43 A lot of marketing. There was no social media then, I don't think. Not to the same extent, no. I shipped samples. I gave away a lot of free product. I did a lot of events, you know, races and athletic events.

42:59 Mom groups all over the country. That was it. I came across a budget I did in twenty four Fourteen, twenty thirteen, handwritten in pencil. And I think my marketing budget was ten percent. You know, that's what

43:14 An advisor told me. Yeah, it's ten percent. Yeah. And meantime There's all these different and and food transit, there's paleo and keto and and you know, this and that and and and I wonder whether

43:28 You would get people from time to time saying Look what they're doing. Look what those guys are doing. Oh, this you know, this is this brand is really attracting a lot of interest and look what they're doing. Like were you ever Uh, fe did you ever feel under pressure to try and Do any of those things?

43:44 Yeah, and um the protein push. Was brought to us many years ago. And We are sticking with what the bar was in the beginning, which is just an old fashioned cookie that your grandmother could bake.

44:00 in her oven and we'll be a hundred year old brand. Or we're not trendy. And we're not adding any superfoods to it. So okay, so you've you have You've got this business. I think

44:14 You know, as you expand. Um this is now eleven years after you launch this and I wanna I wanna Get into this period because you had sp been spending

44:29 Day and night, weekend after weekend on this thing, and you get to twenty fifteen and you are doing eight million dollars in sales that year. Did you start to around that time think I'm getting tired. I need I need to yeah. I need to figure something out here. Yeah. I was burning out in probably in twenty fourteen. I was traveling, I was doing trade shows myself.

44:52 And I felt like I had gotten it to a certain level. And I was tired and I thought, What if I sell this? Yeah. And Make a little money and be done with this. And I started asking around the community in this industry

45:07 And then I meet this guy TJ McIntyre, and I had known him for many years in the natural food business. Видер компанії, не ви сіо бифор. I had never Thought of hiring a CEO.

45:23 And he came in and we talked for a while and he said, You know, I wanna run this company, don't sell it. Um, you're too little, you're too young, you're too small. You need to grow. And you know, what's wrong with you? Are you tired? And I said as a matter of fact yes

45:41 And he said no. Do this. Let's run it together. And I thought about it for a while and I think it was around holiday and it was in New Orleans with my daughter and he called me and he said You know.

45:54 I need an answer. And and and just Pressured me, which was good. 'Cause I I couldn't decide what to do and I said, Okay, let's do it. I'll hire you and let's see how it goes. And and why why was T J

46:10 Why do you remember? He was so enthusiastic about wanting to do this. He I I liked him, um, but I didn't know him well. But we hit it off Very smart. Um, I thought he'd be a great leader.

46:25 And I thought, Okay, big step, but I'm gonna do this. So We became a real company then. I had to hire lawyers and we had to, you know Get all the legal documents together and we created shares. You know, we that's how we became

46:43 a company and he got some shares and You know, I've got the rest and It was a risk. And I was scared. Um but I believed in him and

46:55 And it and He he's still here. And so now you guys are creating a a new partnership.

47:13 President. Uh face of the company. We we hadn't yet formed a plan. I I was still unclear about raising capital. I had never done that before, but he he convinced me that we couldn't do it without growth and

47:29 And he's right. Yeah. He had a playbook and I think it w he wanted to double the sales within a year or so. how did it work in terms of like decision making? I mean Did you essentially say I'm gonna

47:45 trust your playbook and and I'm not gonna second guess you and uh you're you've got the reins here. Pretty much. There were times that were A little challenging and we butted heads. But all in all

47:59 Yeah, I just kinda worked alongside. of him and then gradually stepped back and Um let him take over. Okay, part of this plan was to raise outside money. And the first round was about eight million dollars.

48:13 Again, not we're not I mean, by tech terms is nothing, right? They're raising hundred million or per round or whatever. But still it's now there's Money from outsiders coming into the business. How did you feel about that whole process about going out and

48:31 raising money and have to having to justify you know, or answer questions that that might have felt I don't know, insulting or invasive. Like why do you think you're gonna be able to do X, Y, and Z kind of questions? Yeah. Um, all of a sudden there were some big boys at the table. And

48:48 It was intimidating for me. They're now in my business making decisions. Um I took some money off the table when the investor came in. Probably Real money.

49:03 Yeah. Not enough really to retire on, but still I mean. Coffee shops, right? I mean e To have a you know. A few hundred thousand or maybe g of a million or so or more. I mean, that's pretty great.

49:21 Yeah. I think by the end of twenty seventeen, or m maybe even earlier you guys had doubled, you'd hit sixteen million revenue. So now really you're starting to see momentum, right? And did you find that your investors were coming in and saying, You guys really should do this or I notice that this brand is

49:39 ha has this product line and you guys should really explore that, or I see this product at Costco and Maybe you guys should try that. Were you getting that from them or were they Mainly hands off. In the beginning, the first investor was because you know, it was just the three or four of us at the table. And I trusted and believed in their advice.

50:04 You know, it's been a long time now. It's been ten years since I've had investors, so there have definitely been times where I didn't agree. Was it over products, like hey you guys should do more chocolate, or was it more about strategy, or was it marketing? Was it what were some of the c conflicts over? Well, I would say mostly the economic terms of their investment. Right. That that has been A struggle.

50:31 each time we ran out of money. Right. Because as as a an investor who's listening knows, when the company asks you for more money, the playbook is to ask for more ownership. They're trying to de risk. I'm trying to de risk. So everybody's trying to protect their investment.

50:53 So he here's what's interesting is that Every year you grew. You continue to grow, right? But yes, every year the bar market became more and more competitive. And you had

51:07 You know But We talked about this a little bit earlier, but trends, protein, keto, I mean R X Bar, we've done that on the show and and and Cliff Bar and Lar Bar and and others. Uh even though you guys were growing in sales Did it become hard or did it did you start to see that it was really hard?

51:25 To yes compete against all these different brands as category up so big. Yes. It's very competitive and You might have a great promotional period. It might not last. Um you're constantly trying to innovate.

51:42 And figure out what the consumer Wants people get sick of product. People get sick of eating the same thing. A lot of companies aren't around anymore because consumers get You just get tired of something, I guess. And that's

51:57 That is um our worry. There's so many bars out there. And retailers will trade you out. Very quickly. Yeah.

52:08 Well I see you at Costco, for example. And Costco's tricky because It's great, it's visible, your Costco, but also Costco is ruthless, they need you to give them the lowest, lowest, lowest price so they can sell it for slightly, slightly higher price, but that's still really low.

52:25 Yes. Costco likes to find the newest best thing. And be the first To market with it. The they will bring you in and then

52:36 Um want the customer to miss you. And then be excited when you're back. Right. It's always this kind of If one day they're like, Hey, we're We're gonna take a break.

52:47 And they do that. But that Wrecks havoc on our manufacturing. Products for Costco. And and and the orders come in big.

52:58 And so we've we have bought equipment just for Costco. and and spent a lot of money on them so and we forecast That Cusco will remain. Our partner.

53:10 And they don't always do what We won't. They do what they want. Right. And it's hard running a manufacturing plant as we do. We've got five hundred employees and

53:23 Hundred and twenty five thousand square feet, which sounds enormous to me. Yeah. Still a s still a small business. And you are vertically integrated. You make your own you own your own production lines. Yes. We have a little bit of co packing. But mostly we do all of our own baking. And when things get very busy when when we're heavy with Costco, we use our Copacker.

53:46 And I mean With You know, with the money that you guys have raised. Over time I think it's may maybe total is fifteen million, is that about right?

53:57 Seventeen. Seventeen million, yeah. Probably. Um At some point, right, investors want a return. And so usually it's like you know, in a case like this, you sell to a bigger Beast, you know, a general mills or one of these, you know.

54:12 Food. Brands, uh Pepsi or something. There was a time where they were just snapping these um Lara Bar and R X bar and they were Snapping them up, right? And kine bars and Uh Cliff Bar sold to Monolise and

54:26 Um Some of that has slowed down in the last two or three years, some of those acquisitions. But um I mean there has to be On the radar for a a brand like yours at some point.

54:39 Yeah, and I'm sure we are. Um, it has gotten a lot harder to sell And sell for a figure that you're happy with. Um like you said it used to be Profitable, who cares? As long as you're showing fast growth. Right. And now it's different. It's a lot harder to sell your company now.

54:58 But Yeah, so so yes, we will be selling at some point. Um it's it's a matter of becoming kind of perfect with your numbers. To be as desirable as we wanna be. So I mean here here we are now, right? It's it's estimated that again, you're a private company, but

55:19 It's estimated that sales are anywhere between, you know, uh over a hundred million dollars now at Bobo's. And Uh there's a lot in line. There's a crowded energy bar or or snack bar market, but This

55:33 Brand is a established known Brand. And You know, it is kind of amazing that You were a divorced mom.

55:43 kind of struggling to figure out what you're gonna do with your life. Didn't have a lot of options. And you'd no idea what the pat where the path was gonna go. No. And I feel like um obviously L I luck came in play a lot. I was at the right place at the right time.

56:00 But I attribute This successful brand. Two Migrets. And love what you do, you know, it it was it wasn't really work for me. It was fun.

56:13 You know, I was just shocked any time I would see somebody that I didn't know eating a Bobo Bar. Billy Bob Thornton, my favorite actor, just said in an interview that that's what he eats for breakfast every day is a Bobo Zopar. Anyway, that just That just touches my heart. Yeah.

56:31 Well, you answer my my luck and skill question already, so I don't need to answer uh ask it, but so thank you for doing that. On my behalf. Mean It it's almost like you just kinda followed what you were interested in it it it

56:45 Yeah. was interesting to you and that's why it happened. Yeah, and I think uh my toughness came out, you know, I I had to be tough. And figure it out, you know, and and There are a lot of situations where I would not have done that.

57:02 If I had stayed married, I would never have done it. And one thing I learned with Doing this business a light bulb went off once. Midway through my career here. That

57:13 You And I and everybody can figure anything out. Anything. You can learn how to fly an airplane, you can learn how to build an air conditioner. You can figure anything out, it's not about being the smartest person in the room.

57:29 It's about Desire, focus, and time. And and that's what I learned. That's Beryl Stafford. Founder of Bobos.

57:44 By the way, over the years, the packaging has gone through some changes, but it still has that same drawing of a smiling, blonde haired girl. The one that Beryl's friends sketched out in five minutes in her kitchen. Using a Sharpie. Hey, thanks so much for listening to the show this week. Please make sure to click the follow button on your podcast app so you never miss a new episode of the show. And if you're interested in insights, ideas, and lessons from some of the world's greatest entrepreneurs, please sign up for my newsletter at guyaz.com or on Substack.

58:15 This episode was produced by Nor Gill with music composed by Ramtina Rablui. It was edited by Neva Grant with research help from Alex Chung. Our engineers were Patrick Murray and Quasey Lee. Our production staff also includes Casey Herman, Katherine Seifer, Chris Massini, John Isabella, Sam Paulson, Ramel Wood, Carrie Thompson, and Elaine Coates. I'm Guy Raz, and you've been listening to how I built this.