Jon Davids’ Post

Turning trash into money! Great story, Jon Davids. Thanks for sharing. It reminds me of the story of Luiz Otavio Possas Goncalves, which happened in Brazil and not a lot of people know about. After successfully building and selling at 60+ years old the third most prestigious beer brand in the country, called Kaiser, he was looking for his next adventure. He met the owner of Sococo S/A Indústrias Alimentícias, biggest producer of coconut products in Brazil. Visiting the factory, he noticed that the workers would open up the coconut, throw the coconut water in a drain, and then proceed to remove the coconut meat that was the raw material for all products of the company. When asking where that drain was leading to, he was surprised to learn that it was simply connected to the sewer. In other words, that coconut water was being thrown away. Here, a technicality: the more ripe the coconut is, the more meat and less water it has. Also, the water gets saltier with time. So, not a great product for consumption. But that didn't stop Luiz Otavio. He made a deal with the owner of Sococo to have free access to that coconut water in exchange for a 50% share in a new company called Kero Coco. The next challenge was to find a way to make that salty coconut water drinkable. He found the biggest specialist in coconut water in Brazil, who was a researcher at the Universidade of Vicosa, in the state of Minas Gerais. Together, they created a pasteurization process that would neutralize the weird taste. They were also the first ones to put coconut water in a Tetrapak box, which was a method later also used by Vita Coco. In 2009, Kero Coco commanded over 70% of the industrial coconut water market in Brazil and was sold to PepsiCo for $240M. I wish more people knew about Luiz Otavio, one of the most amazing entrepreneurs I've ever met. He not only created the third largest beer in Brazil and invented a whole new segment for coconut water, but he also created one of the most prestigious brands of cachaca (Vale Verde), the biggest sanctuary for endangered animal species, the company that became the biggest producer of orchids, among many other ventures. And the most incredible: at 81 years old, he is now trying to repeat the same successful process of transforming trash into money with Caldo de Cana Vale Verde, a company trying to popularize sugarcane juice. Maybe in a few years a new Michael Kirban will appear to make sugarcane juice as ubiquitous as coconut water has become!

Some amazing anecdotes in here.

I just read about a guy who made $386M selling ugly carrots and bruised bananas. And it all started with some rotten apples. I'm talking about Abhi Ramesh, the guy behind Misfit Market. He sells fruits and veggies that aren't pretty enough for prime time. But they sure are tasty. This business is so good it's got me salivating 👇 1/ How it started Let's go back to 2018. Abhi's picking apples and notices something strange at the orchard. There are hundreds of apples just lying on the ground. He asks the farmer what happens to the fallen fruit. Some become juice or cider. But most head straight to the dumpster. Retailers won’t stock their shelves with mangled produce. Abhi asks if he can buy them. The farmer's happy to oblige. And it's the start of a foodie empire. 2/ Go-To-Market Abhi thinks he's onto something big. There's gotta be people who will buy misshapen fruit. But can he get his hands on enough of it? He starts dialing farms around Philadelphia. Turns out supply is abundant - lemons, squash, plums. There's a ton that won't make it to grocery shelves. And it's a headache for farmers. Abhi buys everything he can. Then he throws up a Shopify store and runs Facebook ads. He promotes his “mystery boxes” full of perfectly imperfect produce. People bite. In the next few years, Abhi hits 90,000 customers. And then sh*t hits the fan. 3/ Timing is Everything It's March 2020 and Covid's running hot. Abhi gets ready to shut down his warehouse. His thriving business is about to crash. Then he catches a lifeboat. Food is essential, which means his doors can stay open. His lifeboat suddenly turns into a battleship. In the coming months, growth explodes. People want their fruit and they want it now. A few bad apples won't get in the way. Revenue over the last 24 months was $386M. 4/ Why It Works Abhi does a bunch of stuff right. Here are my favourites: → Selling a waste product Grocery chains are the primary buyers and they don't want it. The farmers are just throwing it away. Abhi exploits this inefficiency. → Turning a weakness into a strength with smart branding Misfit Market is not selling deformed fruit. They're reducing waste by repurposing food. This marketing jujitsu resonates big time. Don Draper would be proud. → Side stepping the incumbents The dumbest thing emerging companies can do is try to compete with giants at their game. You must invent your own game. That’s how you crush the incumbent. 5/ My Take I love business models that turn trash into cash. Seriously, it's my unhealthy obsession. And Misfit Market is giving me the good stuff. Grocers don't want it. Farmers can't sell it. Abhi comes along and packages everything just right. To him, those bruised bananas are worth billions. ____________ #marketing #GTMstrategy #growth P.S. If you like this stuff, join my email list! I send a weekly email with a deep dive into my best content. Just hit the link at the top of my profile.

(AUSTRALIA 30.03.24) While you are sleeping, this major suburban food market quietly powers Melbourne. AG: The Hidden Truth Behind Australia's Fresh Produce Wholesale Markets. The Melbourne Market in Epping is a crucial hub for trading fruits and vegetables, providing an alternative to supermarkets. It operates before dawn, connecting independent greengrocers and wholesalers with fresh produce. Businesses like Patsuris Produce rely on its transparent pricing and diverse range of goods. Buyers like Graham Gee value its quality and real-time information from farmers. Participants highlight the market's early hours and role in serving diverse communities. Tips include assessing weight for juiciness and shopping for seasonal items. Overall, the market plays a vital role in supplying fresh produce to businesses and communities. ----- [AG: Australia's fresh produce wholesale markets are often viewed as vibrant hubs of trade, connecting growers with buyers and supplying fresh fruits and vegetables to consumers nationwide. However, beneath the surface lies a stark reality that many are unaware of. Despite promises of transparency and fairness, wholesale market traders operate on a consignment basis, leaving Australian growers in the dark about the prices their produce fetches and the commissions taken by traders. This lack of transparency extends to the absence of real-time price and volume data, hindering growers' ability to make informed decisions about their crops. The Melbourne Markets, among others, were granted funding in the past to develop price and volume transparency, yet no progress has been made. This failure to deliver on commitments raises questions about accountability and taxpayer funds. Furthermore, wholesale market traders not only neglect to provide transparency to their suppliers but also undercut growers' prices, selling produce to major retailers at unsustainable rates. This creates direct competition for growers who strive to maintain fair and profitable prices for their produce. Furthermore, independent fruit and vegetable retailers continue to sell Australian growers' produce at prices that are below the cost of production, leading to immediate write-offs for the growers and worsening their financial burdens. In conclusion, while fresh produce wholesale markets may seem like a positive aspect of Australia's agricultural industry, the reality is far more complex. It's imperative that steps are taken to ensure transparency, fairness and sustainability throughout the supply chain to support the livelihoods of Australian growers and maintain the integrity of our agricultural sector.] ----- https://lnkd.in/gYk4t3nk