How I Built This with Guy Raz: Noosa Yoghurt Featuring Koel Thomae
Release Date: November 25, 2024
Introduction
In this compelling episode of How I Built This, host Guy Raz interviews Koel Thomae, the visionary founder behind Noosa Yoghurt. Koel shares her extraordinary journey from an accidental entrepreneur to building Noosa into a multimillion-dollar brand, ultimately leading to its acquisition by Campbell's. This episode delves deep into the challenges, triumphs, and pivotal moments that shaped Noosa's success.
Early Life and Career Beginnings
Koel Thomae's entrepreneurial spirit was ignited long before she ventured into the dairy industry. Growing up in Australia during the 70s and 80s, Koel developed a passion for food, nurtured by her mother's emphasis on independence and experiences over material possessions.
“I'm a weird nerd. I like going grocery shopping. Like, I like just cruising grocery aisles. It's so fun. Like, just the discovery of things.”
— Koel Thomae [07:16]
In the late 1990s, Koel moved to the United States, navigating various temporary jobs across Oregon, Montana, and Utah. Her career took a significant turn when she landed a junior supply chain role at Izzy Beverage, a sparkling juice startup in Boulder, Colorado. This experience planted the seed for her future entrepreneurial endeavors.
The Eureka Moment: Discovering Queensland Yogurt
In 2005, during a visit to her hometown in Queensland, Koel had a life-changing experience that would steer her career towards yogurt entrepreneurship. While shopping with her then-boyfriend Tate, she discovered a local passion fruit yogurt that captivated her taste buds.
“It was like eating velvet. It was just so creamy... the passion fruit was just this, like, beautiful, sweet, tart sort of flavor opposition.”
— Koel Thomae [12:03]
Despite loving the yogurt, Koel didn't act immediately. However, her obsession persisted back in Colorado, leading her to embark on what she describes as her "yogurt PhD," extensively researching and sampling various yogurt brands to find something akin to her Queensland discovery.
Taking the Leap: Founding Noosa Yoghurt
Determined to bring Queensland yogurt to America, Koel utilized her network and entrepreneurial instincts to connect with the yogurt's family owners, the Mathewsons, in Australia. With the support of her mother and investment from Rob Graves, a fourth-generation dairy farmer from Morning Fresh in Northern Colorado, Koel co-founded Noosa Yoghurt.
“I didn't see them as somebody that I can necessarily partner with until one day... I connect with Rob Graves... inviting me up to the farm.”
— Koel Thomae [22:18]
By early 2010, Noosa launched in Colorado's Whole Foods, featuring four flavors: honey, raspberry, blueberry, and mango. Koel emphasized no Greek yogurt inclusion initially, focusing instead on maintaining the unique texture and flavor profile inspired by her original discovery.
Overcoming Early Challenges
Noosa's initial growth was promising, with successful in-store sampling and a burgeoning presence at Boulder Farmers Market. However, the company faced significant hurdles when expanding beyond Colorado. In 2011, Noosa secured a deal with ShopRite, aiming for national distribution. Unfortunately, operational missteps, including inventory management and distribution logistics, led to severe financial strain.
“We were literally hemorrhaging cash for this customer... And finally I was like, this is not working.”
— Koel Thomae [03:28]
After approximately six months of mounting losses, Koel made the difficult decision to pull out of the ShopRite partnership, incurring substantial financial losses but safeguarding the company's viability.
Strategic Growth and Target Partnership
Undeterred by setbacks, Koel focused on refining Noosa's operations and product offerings. In 2012, presenting Noosa at Expo West caught the attention of Target buyers, leading to a significant partnership with SuperTarget. This collaboration catapulted Noosa into over a thousand stores by 2012, marking a pivotal growth phase.
“We're now probably operating at least four to five batches a week... it's such a constant leapfrog.”
— Koel Thomae [58:45]
Despite scaling rapidly, Noosa maintained lean operations, achieving profitability by late 2012 with revenues nearing $20 million. However, internal disagreements over growth strategies and equity distribution began to surface, highlighting the challenges of managing a fast-growing business with diverse stakeholder visions.
Navigating Internal Conflicts and Strategic Investment
By 2014, Noosa faced intensifying competition from major brands entering the creamier yogurt space. Internal conflicts over strategic directions, such as compensation structures and team expansion, strained relationships between Koel, Rob, and the Mathewsons. Recognizing the need for external expertise, Noosa sought a strategic investment to support continued growth.
“We ended up hiring an investment banker and running a process to find more of that private equity type investment.”
— Koel Thomae [67:32]
Advent, a Boston-based private equity firm, invested in Noosa, acquiring a majority stake but allowing Koel and Rob to remain as key employees. This transition ushered in a new professional chapter for Noosa, with enhanced operational structures and strategic guidance.
Acquisition and Legacy
Under the new investment structure, Noosa continued its upward trajectory until Campbell's Soup Company acquired it in early 2024. Koel and Rob retained their roles during the transition, ensuring continuity and leveraging their deep understanding of the brand's ethos.
“It was two bites at the apple.”
— Koel Thomae [71:07]
The acquisition not only validated Noosa's market position but also provided Koel with substantial financial rewards and the opportunity to explore new ventures within the dairy-free space.
Reflections and Insights
Throughout the journey, Koel attributes Noosa's success to a combination of luck, timing, and relentless hard work. She acknowledges the importance of leveraging trends, such as the rise of Greek yogurt, and emphasizes the critical role of operational efficiency and strategic partnerships.
“I think there's a huge element of luck... coupled with that is, you know, as much as I may have disagreed with my business partners over different things, we all worked really bloody hard.”
— Koel Thomae [73:57]
Koel concludes by highlighting the invaluable lessons learned from her entrepreneurial experience, particularly the significance of aligning strategic visions and the necessity of scaling thoughtfully to sustain growth.
Conclusion
Koel Thomae's story is a testament to the power of passion, resilience, and strategic foresight in building a successful brand from the ground up. Through Noosa Yoghurt, she not only introduced a beloved product to the American market but also navigated the complexities of scaling a business, overcoming operational challenges, and forging meaningful partnerships. Her insights offer invaluable lessons for aspiring entrepreneurs aiming to turn passion into purpose.
“I worked a lifetime in that decade.”
— Koel Thomae [71:43]
Notable Quotes
-
“I'm a weird nerd. I like going grocery shopping. Like, I like just cruising grocery aisles. It's so fun. Like, just the discovery of things.”
— Koel Thomae [07:16] -
“It was like eating velvet. It was just so creamy... the passion fruit was just this, like, beautiful, sweet, tart sort of flavor opposition.”
— Koel Thomae [12:03] -
“We were literally hemorrhaging cash for this customer... And finally I was like, this is not working.”
— Koel Thomae [03:28] -
“We ended up hiring an investment banker and running a process to find more of that private equity type investment.”
— Koel Thomae [67:32] -
“It was two bites at the apple.”
— Koel Thomae [71:07] -
“I worked a lifetime in that decade.”
— Koel Thomae [71:43]
Key Takeaways
- Passion-Driven Entrepreneurship: Koel's love for a unique yogurt flavor led her to explore and create an innovative business.
- Strategic Partnerships: Collaborating with Rob Graves and the Mathewsons was crucial in establishing Noosa's foundation.
- Navigating Growth: Rapid scaling requires robust operational strategies and clear internal alignment to sustain success.
- Resilience Through Challenges: Overcoming setbacks, such as the ShopRite partnership failure, demonstrated Noosa's resilience.
- Importance of External Expertise: Bringing in professional investment and management was pivotal in transitioning Noosa to the next growth phase.
- Legacy and Reflection: Koel's journey underscores the balance between personal passion and strategic business acumen.
Koel Thomae's journey with Noosa Yoghurt offers rich insights into the entrepreneurial process, highlighting the interplay between passion, strategy, and adaptability. Her story serves as an inspiration for aspiring entrepreneurs aiming to build impactful and enduring brands.