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Life with Marianna
Beyond the Cupcake: How Sprinkles is Disrupting the Candy World from Cupcakes to Sweet Innovations – A Conversation with CEO Ashley Rogers
00:27:14
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- [00:00]
A
The following podcast is a Dear Media production. Hi, I'm Mariana and I'm the host of the Life with Mariana podcast. This week's episode I am so excited about because I'm a longtime Sprinkles Cupcakes customer. So it really felt like something so nostalgic and so special. I remember the first time I went to go get one, I couldn't believe that I was in their shop. And if you're someone like me and there's not a Sprinkles Cupcakes near you, or you really love that nostalgic flavor, but you want to have it in your pantry all the time, they actually came out with chocolate. And guys, this is so smart. So it's basically like a chocolate peanut butter cup, but in the middle instead of peanut butter, it's cupcake frosting. Like, how genius is that? They sent me a few of them to try and it's got this like crunchy sprinkle on the top. It's so delicious. I love the texture and I'm so excited to talk to their CEO in this episode. Ashley Rogers. She's so smart. She started so many other companies before, really scaled and grew those, ended up selling them. She's at Sprinkle CPG now running the chocolate part of their business. And it's so interesting to hear how you can take an iconic, well known brand and create a new product and category for them. If you guys want to learn from Ashley, keep listening and head to sprinkleschocolate.com and use code Marian at checkout for 20% off your order. Now let's hear from Ashley. I was doing a bit of research about you and I saw your impressive career prior to coming to Sprinkles. But what did you want to be when you grew up?
- [01:21]
B
I don't really know what I wanted to be when I grew up. I feel like I just got out of high school and started doing a job and I, I don't really know. I feel like I kind of just fell into what it is I'm doing now.
- [01:32]
A
I think that's actually really good for a lot of people to hear because I think we hear from a lot of entrepreneurs and CEOs and they're like, oh, when I grew up, I always knew I wanted to start a business one day, but for so many of us, I think when we're younger or a little bit confused. So how did you end up on this path of going on to found your own businesses?
- [01:49]
B
Yeah, so my dad was an entrepreneur. I was raised by an entrepreneur. So it was always intriguing to me. And having jobs, like, I hated working for somebody else. I knew that wasn't for me either. And I was really bad at school also, so I didn't. I didn't have a lot going for me. I barely graduated high school. Right when I got out of high school, I went on a like, 30 day European vacation with my cousin. We saved money, we went on this trip. And like, when I got home, I was like, I'm going to start my own thing and do my own business. So that's kind of how I got into it. I just, I went on this trip, I saw, like, this life that these other people lived, and I knew that I had to, like, figure it out on my own and build my own thing.
- [02:31]
A
And so with your dad being an entrepreneur, is there any lessons that you learned from him or something he taught you before going out on your own?
- [02:38]
B
My dad always pushed us to figure things out on our own, which I'm really grateful for. Like, he never gave us handouts. We were never like spoiled kids. He's like, if you want it, go figure it out. So I feel like that kind of like instilled this mentality in me that I can really figure out anything.
- [02:56]
A
Yeah, I think that's such a good skill to have, especially when starting a business and working for a company. It's like, you want to be so resourceful. You want to be able to find things out on yourself, and I think that makes us really great entrepreneurs and then going on to where you are today. So before you got to sprinkles, can you tell us a little bit about the businesses that you started and sold?
- [03:14]
B
Yes. So my first stint in entrepreneurship, I. I don't know if I'm 35. So this was like, gosh, almost 15 years ago. Longer. Yeah, about 15 years ago. When I was 21, I was a cocktail server at the Hard Rock out by the pool. And I made friends with all of these, like, industry workers. So, like the Vegas cocktail servers and nightclub workers who obviously are in a bikini or very little clothing. And my, my. I didn't want to do that anymore. So I was like, I need to create something for them, for these people who I've made friends with. So my first company was a meal prep company. This is like before meal prep was a thing. It was called LV Lean Box. And I started it on in like, October, and by December, I had like 250 clients and I was making healthy meals for basically the whole Las Vegas strip. Like, the industry Worker girls. So that was my first business. I ended up selling that to one of my clients who exited a company. And he just wanted to do something like fun and loved cooking and loved being a part of the industry. So I sold it to him. I used that money and I was like, I have to get out of Vegas. I moved to California, which was always a second home to me, Orange county area. And I started, I want to say, like my first real business, which was a brand called Buff Bake. Buff Bake was a protein cookie, protein nut butters. We were distributed in GNC, vitamin shop, and really like 3 to 5000 retailers nationwide. I was 25 when I started that. And that's really what I like consider my college education because that taught me everything from like sales, marketing, distribution brokers, like just in just how to run a business, how to build a team, how to sell a product and make a product. Started that with five business partners. Too many cooks in the kitchen. Decided I wanted to do my own thing. So I actually sold Buff Bake to my business partners and I exited. And then my next venture was Spudsy. Spudsy was a salty snack brand. So all really in food. Salty snack brand. We've done close to over close to $40 million in revenue in four years. 20,000 doors nationwide. This was like really my true experience where I like raised money from a PE fund. I went into some of these larger retailers like the Whole Foods, the Costcos, the Kroger's. And then just last week, I exited SPSY. So SPSY consolidated with another brand called Pipcorn. So now a new entity owns both of those companies and the PE fund that invested in two. Spudsy owns Sprinkles Cupcakes. And I became very close with them. So that's kind of how I got involved in Sprinkles Cupcakes. They basically were a part of my whole spdsy journey. Saw how I spun up spdsy, what I did there, and then plucked me from spdsy and put me in Sprinkles.
- [06:12]
A
Wow.
- [06:12]
B
So today, yeah, I'm running Sprinkles cpg, which is a sister company to Sprinkles Cupcakes. And we're sold in 4,000 Walmarts and 2,000 targets, and we're basically getting ready to launch into every other retailer you can think of next year.
- [06:29]
A
That's really incredible. And I really believe that each thing that we do leads us to the next job. And you're such a testament to that. And it's like you want to have a Good network of people and work really well, because you never know what next opportunity could come for you. So I want to go back to kind of where you're starting with food. Did you always think, like, okay, food was going to be the path that I'm on, or did you kind of just fall into this. This industry?
- [06:51]
B
I kind of fell into it, and I think it's an easy thing to fall into, because with food, like, you can start small and make it yourself in the beginning. It's not like an electronic where somebody else has to make it for you, like, manufacture it for you. So I feel like it was just an easy thing for me to fall into. And I am big in health and fitness, so food is, like, a big factor in that, which is kind of how I fell into it.
- [07:16]
A
And then you were saying, like, Buff Bake for you was like, college. You didn't have this background of going to business school. There's probably people listening who are like, okay, I didn't go to business school. I've never started a company before. But they really want to be an entrepreneur. So what were some of those lessons or things that worked for you that you think could work for other aspiring brand founders?
- [07:34]
B
I mean, persistence, I feel. I also, like, I'm a big believer is, like, I really do feel like entrepreneurship's kind of in your DN and it's not for everyone. But I mean, persistence, and like you said, one thing leads to another. Like, I feel like one thing that holds entrepreneurs back is they're just afraid to start. And the fear of starting. So just go for it. And starting the process and then staying consistent and persistent is honestly really all it takes.
- [08:06]
A
Yeah, I think it's just like getting yourself out there, not being scared. Everybody's nervous and scared, especially when they're starting anything new and just being persistent. Like, sometimes I think it's just showing up every single day is like, what's going to make, you know, move the needle for you just by being there. Something else that you mentioned, too, that I think is really helpful for people to hear is you started the last one with five partners, which is too many cooks in the kitchen. And I know we're like, oh, we have friends. We want to start a company together. And that can sound really great, working with your friends, but it's actually a lot more challenging than I think people think. So if someone wants to start a business with a partner, do you have any advice for them of what they should do prior to going into business with somebody?
- [08:43]
B
Yeah, I would say the biggest thing and why it didn't work for us is, yeah, it's fun. Like you want to start a business with your friend. It's always funner doing something else with somebody you're close to or, you know, it just makes the process, I feel like, more enjoyable because entrepreneurship is super lonely. But my biggest advice would be to clearly define your roles. Like from day one, like, this is what I'm gonna do, this is what I'm gonna own. So you both know your roles and you both have set expectations. What the other person is supposed to do is incredibly important.
- [09:18]
A
Yeah, I think so too. It's really important to know and also being aligned on what is the common goal. Because if two people in the brand want different things, it just makes every decision much more challenging.
- [09:28]
B
Yes.
- [09:29]
A
Okay. So you talked about your dream exit. This happened. This is how you got to Sprinkles. And I think a lot of people that are entrepreneurs are like, oh my one day my dream is to exit the business, is to sell the dream of that. And the reality is much different. So when you're looking for a partner for a business, what are some of those things you might want to look for before exiting or partnering with somebody, especially when you're giving up your baby.
- [09:49]
B
I mean, for me, I just, I want to know that they're going to like, I guess, uphold the mission. Especially because, like, we're a mission driven company and they like branding. Super important to me, the quality of the product. So just finding the right partner who aligns, I guess, with your mission and values so they're able to continue on with the brand and like uphold the integrity of it.
- [10:13]
A
So all of this leads you to Sprinkle cpg. And I think if you're not on the brand side, you might not understand how this might be different than Sprinkles Cupcakes. So how is the business split and what are your responsibilities and what are you doing?
- [10:25]
B
Yeah, Sprinkle CBG is. So it's, it's the same owners, but they're two really kind of different companies. And my responsibility is. So nine months ago, or nine months to a year ago, they came to me with an idea. Like we have this amazing brand, this iconic 20 year old sprinkles brand that everyone knows, 40 bakeries across the country, ATMs and vending machines and airports and college campuses. But we want a product that can fit into the market and be sold in every retailer nationwide. And a one day Shelf life cupcake doesn't have that. So to us, it Made sense to create a chocolate product because that goes really well with our bakery items. So that's basically what I have been solely responsible for, is creating the concepts of these chocolate bars and these cupcake cups. So our cupcake cups, like think of a peanut butter cup, but instead of peanut butter or almond butter inside, they're full of cupcake frosting. Really creating that product, identifying the manufacturer. And then I have built a team that's strictly like sprinkle CPG of sales, marketing and ops. And it's really working with these nationwide retailers now, Target and Walmart being the big ones that we're in today, to get distribution in their retail stores and support them from a marketing perspective. So that's really what I'm owning.
- [11:47]
A
It's so smart because before I lived in Los Angeles, I always kind of saw sprinkles cupcakes. And when I got to la, I was like, I can't wait to try a cupcake. These are. This is like pre social media. So I'm seeing these in magazines, I'm seeing celebrities have them. And for me, it was such an iconic moment to be able to have that first cupcake. And there's so many people who live between the coasts or cities or airports where it's not available to them. And it's so amazing to have a little bit of this sprinkles iconic cupcake at home with you. So I actually have them in front of me. When I got the package, I was so excited because I'm like a peanut butter cup kind of girl. And I think always the frosting is my favorite part of a cupcake. So I have a couple in front of me. I have red velvet double chocolate. I have birthday cake, which is so delicious. And these are also just really good gifts, I think, to give to people. And it's like, okay, a cupcake cup. This is like the best part of the cupcake that I want.
- [12:33]
B
They're amazing. Like our birthday cake, it has a sprinkle on it, so it's kind of like a crunchy, which I love, like just having a different texture. And the red velvet is like super smooth and velvety. And then the double chocolate, they have like cookie crumbles on top. It really should be called triple chocolate because it's chocolate frosting inside a milk chocolate shell. And then like dark chocolate cookie crumbles on top. That one's probably my favorite.
- [12:58]
A
Did you have any challenges? Like, okay, this is such an iconic brand. We're trying to make something different than what they are known for. And we want it to like, live on shelf be in stores. Like, what were some of those things that you wanted to make sure that you included when creating these products?
- [13:11]
B
I mean, our branding's huge for us. Like, we wanted it to look like sprinkles, our modern dots, and then really just that decadent indulgence in every bite. So we're not trying to be like keto or low sugar or anything. We're just trying to be indulgent and be sprinkles. So that was really important to us when we created this line of chocolate.
- [13:34]
A
And so when you're thinking about retail shelves and the experience that you've had before, you think about somebody walking down the shelf. It's so fast. The way that they look at things. When you are designing everything because of how it looks is so important to you. What things did, you were like, okay, this has to be on the packaging for sure.
- [13:48]
B
No, that is important. Like, you literally have two seconds to attract that consumer and get them to pick up your product. So really, whenever I create anything that's sold in stores, like branding is everything. You need to be able to tell that consumer in two seconds what the product is. And we really feel like by leading with our sprinkles logo, our modern dots, and then like a big image and the word cupcake cups, like kind of nailed. Nailed it on the head.
- [14:17]
A
Yeah, I think so too. Like when I'm looking at the packaging, like, I don't even have to try them to know like exactly what I'm gonna get. And I'm really seeing like the texture, the inside of it, and all of them just look so delicious. So I, like, I am yet to go into like the food space myself, but I think like, in the future it's like these are all the things that I think about as a kid consumer and I think being consumers makes us really like the best brand founders. Because it's like, okay, I just want to make the thing that I want myself.
- [14:40]
B
Yep. And I think future packaging, we're actually experimenting adding a Prinkles cupcake on the front of packaging too, just to make it even more of a no brainer. But packaging truly is everything. And like telling the consumer exactly what the product is like, is make or break.
- [14:58]
A
And you already talked about some of the retailers that you guys are in. So many stores. You have so much more expansion coming. So what is the plan over the next few years?
- [15:06]
B
Yeah, I think the plan over the next few years is to really focus on these core items first and foremost. Like these cupcake cups and our chocolate bars, and then strategically expand in to these accounts, but like, at a healthy rate. Because that's another thing I feel like people mess up is they go too deep too fast, or they go everywhere immediately, and that it allows you to not be able to focus and dive deep in each individual retailer. So our plan, like really is to strategically grow into these national accounts. So in 2025, we'll roll out to both Kroger and Albertsons. So we, we have like really the four largest retailers. So focusing on that through the end of 2025 and then starting to strategically expand again the beginning of 2026.
- [15:57]
A
And it, it really does sound great. When you start a brand like this, you're like, oh, I want to be all these stores, but you really want to be prepared before going into them and ensure a great success. So if you're somebody, you have a brand at home, you're making something, there's some sort of demand there. What should you know before going into such a large retailer like this?
- [16:14]
B
Yeah, I mean, there's so many things. I mean, from an inventory perspective, from a manufacturing perspective, you want to make sure you're partnered with the right partner. Like, if you go from 0 to 100 by partnering with one of these large retailers, you have to be able to supply them, because if you can't supply them, you'll lose the distribution. So I would say that's probably the key thing, making sure your pricing strategy is like fully laid out and you maintain a healthy margin so you make money. I think that's another big miss that a lot of early food and beverage and really any CPG entrepreneur makes, and then just having a strategic sales and marketing plan.
- [16:51]
A
Yeah, I think those are all really good points. And so earlier you said if you're starting something in the food and beverage space, like a lot of times you can start by making these things at home. But at some point, I think you might outgrow your home kitchen or what you're doing. So when is it the right time to find a manufacturing partner? And how does somebody even go about finding somebody that can help partner with them in this way?
- [17:11]
B
Yeah, these are all really good questions. Yeah. So you can, I mean, I'll give you an example, like Buff bake. I was able to start making the muffins and nut butters in my home, but in some cases, like Spudsy, you're unable to make the product in your home. Like, my first product was an extruded puff, and that needs to be done. By a manufacturer out of a $2 million extruder. Yeah. So I knew I needed it. You know when you need a manufacturer, like you'll have that retailer where you're like. Or you'll get that purchase order or the projections from a retailer and you're like, hey, I can't manufacture this on my own. That's really the time where you need to jump to a manufacturer and how you find those manufacturers is honestly, it's easier than you think. I feel like people over complicate it. Like I've found all my manufacturers by googling and specific keywords. So like cookie manufacturer in the United States, cookie co packer in the United States. So using keywords like manufacturer, co packer and then whatever your product is. I always start with Google. I vet out the manufacturers through Google that look legit. But nowadays there's so many additional resources too. I mean there's a ton of websites that can pinpoint what manufacturer would be good for you based off your product. And then there's also consultants that could help you find manufacturers as well. But as far as scaling, like I think like you know when you need to scale based off the business that you're projecting in the future and that's kind of when you just need to decide to take the jump.
- [18:44]
A
Yeah. And I think when you're googling, a lot of times these places do not have great looking websites. So I would google and I'd find somebody. I'm like, does this, I was like, is this legit? And I'm like, oh they just like don't have a good website. So don't judge people based on what their homepage looks like.
- [18:57]
B
Agree. And I also add to that that most of these manufacturers like our cowboys, I like to call them, like they don't get like brand or product. They strictly get manufacturing and making people's products for them. So I agree with you. Like their websites don't always look the prettiest. But some of the best manufacturers I've found have had like the jankiest websites.
- [19:19]
A
Yeah, I totally agree with that. One of the things that I like that you said was talking about like okay, just go and start, don't like be fe and just be really persistent. And if you're, do you have any philosophy on like taking risks and like when you want to try something new? Because I see like such an amazing career that you've had, like starting businesses and then coming onto this big company. It's like, how do you do that without the fear?
- [19:42]
B
It's weird. I feel like it's a blessing and a curse, but I'm just the kind of person who's like, okay, I'm diving in the deep end of the pool and I'm going to figure it out. And like, I really do thrive in chaos and I just love it. So when I go into stuff, like, I don't have that mentality. But I mean, one of the things that I do now too is like, I'll mentor early stage food and beverage companies and I do see it a lot. But that's why you, you just gotta keep going. And like you said like one relationship. Like let's say you start calling manufacturers on Google, right? And they're not. The first person you call isn't the right fit, they're gonna lead you to someone else. Like, you gotta ask, right? If you're not the right person, who do you recommend? Who do you recommend? And then just go from person to person and eventually you just like keep putting one foot in front of the other and like you're the path will like open up. Because these people will lead you to the right people.
- [20:39]
A
Absolutely. It's like you ask one person and they have a friend that does this thing and you didn't even know you were needed to hire somebody to do this and then suddenly you have this whole network of people. So just ask because you never know what one person. Like everyone's a lot more giving with information than you think.
- [20:53]
B
For sure. I agree with that.
- [20:55]
A
And I love what you said about mentoring early stage companies. So I see a lot of brands like come through like my email or I'll see them online. Is there something that you see where you're like, you just have this knowing of, like, I really think that this is going to be the next thing. Like sometimes it's just like, I can't explain it. I know this is really small, but there's just something special I see about this brand.
- [21:13]
B
Yes, I feel that way by a lot of these new brands that I talk to. I guess I won't say a lot. I would say it's more unique because it is so hard to be innovative in 2024. Like when you start a brand now, like, it's hard to even get a name trademarked because everything's taken and people are so innovative. And I do believe because it's from social media, like, it's just so easy to start something now. But yeah, I feel like I can identify like those brands, like when they come to me, like they really got it here. And normally the People that I feel that way about are the people who do have innovative products. They're not another me too product and they're doing something that hasn't been done or they just have like this impeccable branding that again, is like a no brainer where you could just, you could just see people gravitating towards that product because of their branding.
- [22:06]
A
I want to end with a couple things because I like love all of these flavors. Do you have a favorite flavor that you guys have out right now?
- [22:12]
B
The double chocolate cupcake cup is my favorite. Or the white chocolate sprinkle bar.
- [22:17]
A
Oh, I have the chocolate sprinkle bar too, which I want to try. And I also have. I love salted caramel anything. So I'm really excited for that bar.
- [22:23]
B
Yes. It's like a salted caramel frosting. It's amazing.
- [22:26]
A
Okay, so you are running this business. You started a lot of businesses before. You're a mom of two. How do you actually balance leading a company and having a family life all at the same time?
- [22:36]
B
I don't.
- [22:37]
A
That's good.
- [22:38]
B
Yeah. No, I feel like this is another thing that people are like kind of full of shit when they say that they can do it all because it is really hard to do. With that being said, I do feel like nowadays again because of social media, like mental health is like a really big thing for me. So I try to like give myself alone time in the morning. Like a non negotiable for me is like working out from 9 to 10 every day. Whether it's lifting weights or Pilates. I have a walking treadmill under my desk to get my steps in and just eating healthy, like that's like really my non negotiables. But it is really hard to balance like being a mom and working in. I mean, for a period of time I was running two companies, so I do the best I can. And then I have my husband who is like my children. He needs a lot of attention too. So it's hard. But like, I've learned to give myself grace and I do the best I can and that's all I can do. Like some days my work gets more of me, someday my kids get more of me. And that's okay.
- [23:38]
A
Yeah. And I think that's totally okay. And I'm sure your daughters probably have a lot of insight. I'm not sure if they're like of the age yet to be eating chocolate, but I'm sure they probably have a favorite flavor. Like they let you know which ones are the good ones.
- [23:48]
B
Oh, they're obsessed with chocolate. I bribe my children to eat their food, to get ready in the morning to put their shoes on, and most of the time it's with chocolate.
- [23:58]
A
So we talked about your daily routines a little bit. You talked about your workout as a non negotiable every day. And I really love setting up the tone in your morning routine. Is there anything else that you do or your evening routine at night to wind down before bed?
- [24:08]
B
My morning routine, I really try not to get on my phone in the mornings. Like, I pack my kids, I get them ready for school, and then I really don't get on my phone till after my workouts, which is like 10am and then the same with nighttime. Like, I try to put away all my electronics by like 8:00 and then I go to sleep around 10:00.
- [24:27]
A
Oh, that's a really good routine. I feel like you're really good with like your schedule.
- [24:30]
B
I'm getting better at it.
- [24:31]
A
I think it's always like a work in progress too, especially as you're like scaling a brand. So for sprinkles now, like you started, you guys have the products out, you're getting into more retailers. What are the some of the things that you want to build with the company and team internally? I think we see a lot of times like what's happening externally with the brand, but you're also building the business and the company at the same time.
- [24:51]
B
Yeah, I feel like building a strong team and a strong culture is everything. Like making sure everyone's on the same page, they're happy, like within the business. I also feel like it's important to ask like, your employees their goals. So, like, what are your goals over the next three to five years to make sure that you have the right people within the business and they're all aligned. So culture to me is huge. I try to have like my whole team in our office because we're all remote. There's two of us in a Newport beach office, but for the most part, the rest of the six to seven team members are remote. So once every six weeks, we have everyone in town and we'll spend two days together because culture is really everything. Like, you have to. We talk to each other all day, every day, and we're working to build this business. So we just. We got to have a strong culture and be close.
- [25:39]
A
Yeah. So what are some of the things that you guys do, having a remote office to have that culture? Because it's hard sometimes when you only talk to each other on a computer screen?
- [25:47]
B
Yeah. I mean, getting together in person and spending time together in person and then really just talking every day. So staying in constant communication. So, like, really, no one never feels like they're, like, on their own little island is important to me. So just communication.
- [26:02]
A
Yeah, I think that's really good advice. Okay, so I'm so excited for everyone to try these cupcake cups because they look so delicious. So if people want to get them now, where can they find them in store or online?
- [26:11]
B
Yep. So our cupcake cups are in Target. The three flavors are in Target. They will be in Walmart come February, March. Our chocolate bars are in Walmart nationwide. And then you can also get them on sprinkleschocolate.com and on Amazon.
- [26:30]
A
Amazing. I love Amazon. If it's on Amazon, it's, like, very easy for me to shop. I'm always adding stuff to my cart every day. All right, thank you so much, Ashley.
- [26:37]
B
Awesome. Appreciate it.
- [26:40]
A
Thanks so much for listening. And be sure to subscribe to my podcast and rate and review because it would mean so much to me. And follow me on Instagram at marianahewitt to see what episodes are coming up next. Please note that this episode may contain paid endorsements and advertisements for products and services. Individuals on the show may have a direct or indirect financial interest in products or services referred to in this episode.