Once again Matthew Rock from Real Business ably chaired our panel of
food entrepreneurs in front of a full conference centre audience.
First up was Eric Lanlard, otherwise known as Cake Boy, and famous for having baked Madonnaâs wedding cake.
Having given him a lightning tour of the Business & IP Centre a
few minutes earlier, I can safely say that he is a charming man.
As is often the way with successful entrepreneurs (and in fact many
other success stories), his passion for baking had started early. In
his case from the age of six. With encouragement from his mother he
began to sell his produce from outside their house. And was beginning
to do wellâŚ until his mother started charging him for the ingredients.
The next stage was to take up an apprenticeship at the age of 18,
after having identified the best place for him to learn his craft. From
day one he knew that this was what he would want to do for the rest of
his life. Subsequently he was taken on the by famous Roux Brothers who revolutionised British Cuisine in the UK, and eventually became a âRoux Boyâ.
He finally broke away and set up in business on his own, managing to bag Fortnum & Mason as an early client.
Here are some of his business tips:
â˘ You have to work bloody hard to make a success in business.
â˘ Always refuse to take the cheaper option when pressured. Stay with quality.
â˘ Tight finance is important.
â˘ Look after your suppliers too.
â˘ Without your staff you are nothing. Invest in them as much as you can afford.
âFive am tomorrow morning (like every day) you will find me in my kitchen.â
Next came Jennifer Irvine who is the founder of The Pure Package,
the gourmet food service offering carefully tailored, freshly prepared
and healthily balanced meals and snacks delivered daily to customers.
I had also given her a whistle-stop tour of the Centre earlier on in
the evening, and was pleasantly surprised to discover that she had been
using our information at the beginning of her business eight years ago.
She was very complimentary about the library enquiry staff who helped
her at that time.
She said she started her business because she enjoyed food, and was
upset that so many of us now associate eating with weight gain and poor
From the beginning she was averse to taking on loans or even outside
investors, and literally started her business from her kitchen.
Her toilet became research her study, as it was the only quiet place away from her young children.
She contacted journalists who wrote about healthy eating. This
resulted in a story in the Evening Standard which led to a big increase
in demand for her products.
She needed finance to grow to meet this upsurge in customers, but
was still against going to the bank. Instead she offered her customers
the opportunity to get a discount in exchange for paying in advance.
This generated enough cash to buy the new equipment she needed.
In the early days she had to do everything in the business including
the classic of answering her phone as receptionist and then passing it
on to herself as manager. Her response to curious customers was that
âwe all sound the same hereâ.
She also drove the delivery runs for the food between 12 midnight and six in the morning.
Having such a deep understanding of the business means she can still help her staff, even when away from work for a while.
Last, but by no means least came Richard Reed, a co-founder of Innocent,
the No.1 smoothie brand in Europe. The business was started in 1999
with and two college friends and has grown to a turnover of over ÂŁ100m
Richard also started in business at a young age, when he began
washing windows for his neighbours at the age of eight. However, a
summer job picking up dog biscuits in a pet food factory soon reminded
him of the joys of working for himself, and led him to set up a summer
gardening business called Two Men Went to Mow, employing his school
He met the co-founders of Innocent at college. After discussing the
idea of starting their own business on many occasions, they finally
gave themselves one weekend to agree an idea. The objective was to make
life a little bit easier and a little bit better.
They came up with the concept of âThe Amazing Electric Bathâ.
However, there was a slight problem relating to combining water and
electricity in one product. There was a real danger they would end up
making their customers lives quite a bit shorter, instead of little bit
easier and a little bit better!
When looking to develop a new product or service he said you should
make sure you know your target audience well. They looked to themselves
for inspiration. Their need was for healthy fast food and snacks, to
replace their unhealthy pizza and beer habits. The best test is to ask
if you would spend your own money on the product or service. They
brought ÂŁ500 of fruit and hired a stall at a music festival. Next to
the stall was a Yes bin and No bin. They promised themselves that if
the Yes bin was full at the end of the day, they would give up their
day jobs and concentrate on the business. In the end there were only a
few empty bottles in the No bin, which their parents later admitted
they had put there to put them off. Even that wasnât enough, so they
spun a coin which came up tails three times in a row to convince them.
Consequently the last 12 years have been much more difficult than expected. But also the most rewarding time of his life.
Here are few of Richardâs business truisms:
â˘ The product is king, and has to be better than anyone elseâs on the market.
â˘ You have to decide when to move from making yourself to
outsourcing the product. Started themselves, but found a supplier
eventually. Running a factory is a very demanding activity in its own
right, and might not give you enough time for developing your brand.
â˘ Make sure you understand your numbers, in particular your gross margin and where it will be spent.
â˘ You have to get lucky, but you also have to be tenacious.
â˘ If your team share the same values (but have complementary
skills), you will help each other through the tough times that will
inevitably come along.
After the panel sessions Matthew managed a lengthy question and
answer session due to the sheer level of demand from the audience.
How did Innocent get funding?
Richard revealed that after months of trying to get funding for
Innocent they reached a last chance saloon, which resulted in a
desperate email titled âDoes anyone know anyone rich?â
There were working on the theory Six Degrees of Kevin Bacon would apply.
The email generated two responses in total, one didnât go anywhere ,
and one which ended up giving them the money to get the business
How did Innocent get into supermarkets?
Supermarkets are generally interested in new products on their shelves.
Innocent started with a ten store listing in Waitrose. But it took
seven years to reach blanket supermarket coverage by organic growth.
Can you talk about supplier relationships?
Donât rely on one supplier. Have a plan B ready and warmed up. The
Innocent bottle supplier switched to Coke at short notice which caused
Two instrumental business books recommended by Richard Reed:
Eating the Big Fish: How Challenger Brands Can Compete Against Brand Leaders by Adam Morgan.
Good to Great: Why Some Companies Make the LeapâŚ and Others Donât by Jim Collins
How did you communicate your brand?
Eric Lanlard started with Laboratoire 2000, but due to pronunciation problems (including abattoir) it ended up as Lab 2000.
His new joint venture with Patrick Cox will be called Cox, Cookies and
Cakes, partly because it will be based in an old sex shop in Londonâs
The Innocent name was designed to communicate natural, pure and unadulterated.
Simplification and exaggeration are key to branding.
Richard defended the sale of share to Coca Cola. Although they now
own the majority of the shares, the Innocent founders have maintained
control of the business. Selling their products through McDonaldâs
stores caused ten times more bad press.