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Zeke Zeke is online now
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Join Date: Jan 2002
Location: Long Beach CA, the sewer by the sea.
Posts: 38,248
I built a deli in the 80's for a guy that was successfully packaging and wholesaling dried Italian spices to markets. The key for him was getting in with one of the major food wholesalers. he still had to do a ton of work, they just took a nice markup. He provided POP displays and did some of the product stocking. They did take him a lot farther and wider that he could have done on his own.

The deli failed within months and wiped out all of his spice business. Part of it was under capitalization and part of that was unexpected start up expenses related to the deli and the health dept. Where he was once getting off easily with nothing buy dry foods, he introduced wet condiments and the HD saw things quite differently. Think NASA clean room.

My grandfather (and father) was in the advertising business in the post WWI ear up to the 70's. They did quite a bit with foods. The statistics are bad for a complete success. If you get too big, someone like Nabisco will come calling, Either to suck you up or see you down the drain. You don't mess with the big boys.

Something like Famous Amos cookies is a real anomaly. It's like hitting it big with the Pet Rock. Right time, right place and right identity. Also really good PR and advertising. Not a path I would choose.

The smartest businessman I ever worked with told me to find something that is successful and beat them at their own game. Kinda like Pelican's model against Performance.
Old 01-17-2009, 02:37 PM
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