Fact
There isn't enough cold storage in the US for a new perishable brand
Cai explains cold chain logistics (reefer trucks, dedicated cold stores) is mandatory for any perishable, non-dry-goods brand to reach retailers like Whole Foods, and that grocery's COVID boom plus the shift to D2C fulfillment has left a genuine shortage of cold storage capacity.
“So, so yeah, it's, there's basically not enough like cold storage in the US right now for like a new brand if you want to start.”
Number
Fastest-growing water brand in Whole Foods despite 80% less traffic
Liquid Death launched nationally in Whole Foods on March 15, 2020, the day the pandemic hit. Even with roughly 80% decreased store traffic, it became the fastest-growing water brand in Whole Foods.
$80
Whole Foods store traffic decrease during launch · percent
“even though we've been in a pandemic where they've had like 80% decreased store traffic and everything else going on, we've had insane growth in Whole Foods and we're now the fastest growing water brand in Whole Foods right now.”
Billy
Instacart's founder bought one of everything at Trader Joe's to launch
Sam recounts Max Mullen telling him how Instacart launched: Trader Joe's wouldn't share inventory, so Mullen spent $25,000 buying one of everything in the store, hauled it to an apartment, and photographed each item. He repeated it for Whole Foods and five other stores.
“our first store was Trader Joe's and they wouldn't let us go in there and they wouldn't give us all their inventory. He goes, I took it. He goes, it cost $25 grand. I bought everything in the store. We brought it to apartment, took a photo of it, took pictures of every single thing.”