We recently connected with Niccolo Fraschetti and have shared our conversation below.
Hi Niccolo, thanks for joining us today. Often outsiders look at a successful business and think it became a success overnight. Even media and especially movies love to gloss over nitty, gritty details that went into that middle phase of your business – after you started but before you got to where you are today. In our experience, overnight success is usually the result of years of hard work laying the foundation for success, but unfortunately, it’s exactly this part of the story that most of the media ignores. Can you talk to us about your scaling up story – what are some of the nitty, gritty details folks should know about?
SCALING UP ALIVE FERMENTS
Alive Ferments started incubating in 2020. Determined to create viable products at a large scale, we sought guidance from industry experts at the FDA. Their invaluable advice guided us in reviewing our process so we could confidently start fermenting large batches. Their invaluable advice empowered us to refine our process, allowing us to confidently embark on our, and by the dawn of 2021, we were ready to take the plunge.
But it wasn’t a smooth sail from there. It took us until September to secure a location, set up equipment, find suppliers, and secure storage for our creations. Finally, the time had come for our first batch – 240 gallons of four flavors, a vision in our hearts, but no buyers in sight.
Our plan was to get into farmers’ markets by Christmas and make our way into stores shortly after. However, finding market opportunities proved to be an arduous task. Long wait lists, unanswered emails, and discouraging “reach out later” responses tested our patience. It wasn’t until February that we secured a spot at the Scripps Ranch Farmers Market. We were excited, but one market wasn’t going to keep us in business.
Undeterred, we turned our attention to pitching to stores, without much success. Weeks were spent reaching out to every possible store in the area, resulting in a list of potential buyers, that led to driving across the county tirelessly, dropping off samples. Yet, silence greeted our efforts. March arrived, and we still had only one sluggish market to rely on, but we kept trying.
Finally, a serendipitous moment unfolded. I pulled over in front of a small grocery store in Encinitas, it wasn’t on our list of targets, but I felt the urge to seize the opportunity. I went inside, and without many formalities, introduced our product to the owner, and asked if he’d be willing to give it a chance on his shelves. “Yeah, put it on there, no problem, let’s see how it goes” he said. We achieved our first breakthrough! However, un-replied phone calls and emails were still the norm in the following weeks, and we still had just one store.
As fate would have it, a chance encounter at a sampling table during our pitching journey, connected us with two wonderful ladies who became our invaluable brokers. Recognizing the potential of our partnership, we joined forces the following week. And within a few weeks, new accounts poured in. By summer, our sauces graced the shelves of 20 stores in San Diego. And the true adventure began!
Today, we work with a national distributor capturing shelf space in 60 natural grocery stores in 3 states. We launched 18 new products in 2023, moved out of our shared facility at the beginning of the year, and now have our own production facility.
Niccolo, love having you share your insights with us. Before we ask you more questions, maybe you can take a moment to introduce yourself to our readers who might have missed our earlier conversations?
In 2020, my brother and I embarked on a mission to create something new and resilient, even in the face of adversity.
Growing up in rural Tuscany, our family instilled in us a deep appreciation for wholesome food and a dedication to preserving local traditions.
From fermented vegetables lovingly prepared for winter, to the community’s shared bounties, like wine prosciutto and cheese, our roots in nourishing meals run deep.
As life led me down the path of hospitality and entrepreneurship, I couldn’t ignore my burning passion for food, fitness, health, world cultures, and sustainability. But it wasn’t until a revelation while working at Whole Foods, that everything fell into place.
Witnessing the staggering amount of produce discarded due to minor imperfections, I was inspired to follow in my parents’ footsteps. Armed with barrels and a backyard, I began fermenting excess produce, creating unique pickles and hot sauces. The results were extraordinary, and I knew I had stumbled upon something special.
When I moved to San Diego, I couldn’t bear to part with my beloved chili crop, which of course got fermented and packed up with my furniture. Months later, I was pleasantly surprised to see that the contents were still bright and colorful, the flavors that emerged were nothing short of amazing. It was at that very moment that our best-selling chili sauce, the “Spicy OG,” was born.
Then, COVID struck, turning our world upside down. Jobs were lost, and uncertainty hung in the air. I’m a strong believer that everything happens for a reason, and we need to adapt whether we like it or not. On the bright side, we had a chance to fully devote ourselves to our fermented creations.
I called upon my brother, with his organic farming and winemaking expertise, to join me on this venture. In 2020, he made the move to San Diego, and together, we unleashed our collective passion and knowledge onto the world.
“About Alive Ferments”
Alive Ferments now offers an exclusive range of fermented foods and condiments. Our products are not only a delight to the taste buds, but also a testament to the transformative power of fermentation. Each bite is packed with simple, health-conscious ingredients and rich in live probiotic cultures. Our brand’s story is one of resilience, innovation, and a shared passion for culinary excellence and the well-being of others. Our brand is here to offer exceptional products and inspire to live a healthier, more flavorful life.
“Our Products”
We offer fermented foods that are made of simple, quality ingredients, full of flavor, and packed with health benefits. They’re available, online, for local pickup, and possibly in a store near you! We now make fermented vegetables, kimchi, condiments, hot sauces, probiotic gut shots, and fermented seasonings.
“The Pitch”
Tired of unhealthy condiments packed with preservatives and additives? So are we!
We’re all about keeping your taste buds happy and your gut healthy with our naturally fermented goodies.
Alive Ferments believes that fermented foods have the potential to revolutionize the food industry, and we are dedicated to being at the forefront of this positive change.
Our products are all 100% plant based, no preservatives, added sugars, or gluten here. Just pure, delicious flavors packed with probiotics, enzymes, and essential nutrients. Say goodbye to boring condiments and hello to a world of flavor and health benefits.
Drawing on our experience in the food industry and wine production, we set out to create probiotic-rich condiments that not only taste amazing but also nourish your body from within.
And it’s not just hot sauces! We’ve recently launched traditional fermented products like kimchi, sauerkraut, and probiotic guts shots. We’ve got something for everyone, satisfying all your flavorful and healthy cravings. These fermented creations not only enhance culinary experiences but also boost the immune system, improve digestion, and enhance nutrient absorption.
But it doesn’t stop there. Did you know that fermented foods are a natural solution to food waste? We preserve food using fermentation, keeping all the nutrients intact without compromising on taste or healthiness. It’s a win-win!
“What sets us apart”
Alive Ferments is a small, family-owned business that sources its high-quality ingredients locally and is determined to prove that healthy food doesn’t have to be boring. We seek to create products that fit seamlessly into the diets of those who are seeking to spice up their meals and gut health.
Alive Ferments fills a gap in the condiment market. Our target audience is consumers who are looking for products with added health benefits that they also enjoy. Our products meet this need with delicious flavors and fresh ingredients that we’ve enhanced the nutritional value of.
In addition to our fermented hot sauces, we’ve recently launched traditional fermented products like kimchi, sauerkraut, and probiotic guts shots, among other unique, tasty ferments that satisfy the diverse preferences of consumers seeking flavorful and healthy options.
We want consumers to understand that fermentation is a great way to reduce environmental impact, not only by reducing food waste but also by keeping food preserved in a natural and harmless way while preserving and enhancing the nutrient content.
Any fun sales or marketing stories?
It’s May 2022, and we’re at a buzzing pop-up event in Encinitas. We were riding high on the excitement of recently securing placements in a few stores, marking a significant milestone for us. Our brand-new canopy shines bright, drawing in curious customers to our stand. This farmers’ market is a success, and we’re feeling pretty darn accomplished.
Then, our broker Marka drops by and gives us a reality check. Managing refrigerated deliveries to multiple stores on our own is going to become a nightmare real soon. We need to find distribution channels, and fast.
Little did we know, the journey ahead would be anything but easy. We found ourselves caught in a classic catch-22. Distributors would only consider partnering with us if we had a stronger store presence. Yet, many stores were hesitant to stock our products without a distributor. Talk about frustration!
After a few weeks, an incredible opportunity knocks on our door. KeHE, a leading national food distributor, agrees to partner with us. This is a game-changer, full of potential. As someone who thrives on excitement and making quick decisions, the choice should be a no-brainer, right? Well, not so fast. After some thoughtful reflection, we decide to pass on the offer. The timing just isn’t right. It’s a tough call, but sometimes you have to trust your gut. No pun intended.
September rolls around, bringing a second chance to join forces with KeHE. Partnering with a distributor can be a risky move, especially in the early stages when profits are hard to come by. But it can also be the key to unlocking incredible opportunities and propelling a business forward. This time, we take the leap.
Doubt starts to creep in as we wonder how our relatively new product with minimal sales history will fare on grocery store shelves. Our revenue pales in comparison to other companies in this space, and the odds seem stacked against us.
But then, our answer arrives in the form of a placement in a Sprouts store in San Diego.
Instead of being shoved to the bottom shelf in a forgotten corner, they’re giving us prime real estate – more space than we’ve ever been given before. Our products stand tall at eye level, with three rows for each flavor.
It’s a moment of validation, proving that our new product fills a vital gap in a food category they’re eager to offer.
In October, discussions begin, and on Christmas Day, we officially enter KeHE’s distribution network. As the new year dawns, stores from various states, from Utah o Hawaii, start ordering our products. It’s a staggering turn of events. We think back to the beginning of the year when we struggled just to secure a spot at the most remote farmers’ markets. This progress is nothing short of remarkable.
We embraced the uncertainty, made tough decisions, and ultimately reaped the rewards of our unshakeable belief in our brand!
If you have multiple revenue streams in your business, would you mind opening up about what those streams are and how they fit together?
Yes! We recently embarked on yet another “side gig”. We recently launched UGCSHOT @ugcshot. This new venture stemmed from our challenges in finding the right content creators to create material that aligns with our vision. As a growing small business, we still can’t afford the services of expensive agencies, so we decided to bring content creation in-house. And why not extend this service to other brands while we’re at it!? We noticed a growing trend of brands seeking user-generated style, and not only professionally polished content that requires large productions. We wanted to tap into this trend and provide an affordable solution for brands, including smaller ones. UGCSHOT was born from the belief that outsourcing content creation should not be limited to brands with large budgets. We want to offer smaller brands the opportunity to access engaging content without investing excessive time and money.
We now produce our own content, and UGCSHOT aims to bridge the gap between the need for content to drive brand growth and the financial limitations faced by emerging businesses. We understand the struggle firsthand, and our goal is to provide affordable content solutions that help brands thrive, diversifying our revenue streams while simultaneously addressing a pressing industry need.
Contact Info:
- Website: www.aliveferments.com
- Instagram: https://www.instagram.com/aliveferments/
- Facebook: https://www.facebook.com/aliveferments/
- Linkedin: https://www.linkedin.com/in/niccolofraschetti/
- Youtube: https://www.youtube.com/@AliveFerments
- Yelp: https://www.yelp.com/biz/alive-ferments-san-diego