Podcast Summary: Scaling Better For You Brands with Nature's Bakery CEO Steve Gardner

Podcast Information:

• Title: The CPG Guys
• Hosts: Peter V.S. Bond & Sri Rajagopalan
• Episode: Scaling Better For You Brands with Nature's Bakery CEO Steve Gardner
• Release Date: February 20, 2025

Introduction

In this insightful episode of The CPG Guys, hosts Peter V.S. Bond and Sri Rajagopalan engage in a comprehensive conversation with Steve Gardner, the CEO of Nature's Bakery. Steve shares his extensive experience in the Consumer Packaged Goods (CPG) industry, delves into the growth strategies of Nature's Bakery, and offers valuable leadership insights applicable to emerging brands.

Guest Introduction

Steve Gardner entered the podcast at [01:40], introducing himself as the CEO of Nature's Bakery. With a rich background spanning over 30 years in the CPG sector, Steve has held pivotal roles at giants like PepsiCo and Henkel before steering Nature's Bakery towards remarkable growth.

Career Journey and Leadership Principles

Steve recounts his entrepreneurial beginnings post-college, where he co-founded a food and beverage distribution company. His tenure at PepsiCo lasted 24 years, where he managed prominent brands such as Quaker, Tropicana, and Gatorade, enabling him to refine his sales and leadership skills through diverse regional assignments.

At [07:01], Steve emphasizes three core leadership principles that have been instrumental in his career:

1. Candor and Transparency: "We can't be as successful as we could be as a team if we're not all really clear on what the mission is, what we're saying we're going to do to get there, and whether we are getting there." [07:12]

2. Empowering the Team: Encouraging ownership and accountability by ensuring every team member feels their voice matters.

3. Hungry, Energetic, and Results-Driven: Maintaining an aggressive yet low-ego approach to drive results, especially within a lean organization.

Peter praises Steve for prioritizing empowerment, a quality rarely showcased by leaders, highlighting its significance in fostering a motivated and engaged workforce.

Nature's Bakery Overview

At [04:47], Steve provides an overview of Nature's Bakery, founded in 2011 with a focus on wholesome, delicious, and affordable snacks. Initially known for their Fig Bars, the company has expanded its portfolio while maintaining a commitment to quality ingredients and convenience. Acquired by Mars in late 2020, Nature's Bakery now boasts two operational bakeries with a third underway, positioning the company for continued scalability under Mars' snacking division.

Product Portfolio and Innovation

Steve details Nature's Bakery’s diverse product lines, including:

• Fig Bars: Available in various flavors and formats, including gluten-free options.
• Brownies: Made with dates, offering a healthier alternative to traditional brownies.
• Oatmeal Cumble: Launched in mid-2020, this is the company's fastest-growing subsegment.
• Hardy Bars: An upcoming protein-enhanced, nut-free, and plant-based line set to launch in late spring 2025.

At [13:02], Steve explains their consumer-centric approach to innovation:

• Consumer Research: Innovation starts with understanding consumer needs and preferences.
• Data-Driven Decisions: Leveraging sales data and trend insights to identify opportunities.
• Staying On-Brand: Ensuring new products align with the brand's mission of being wholesome and delicious.

He shares that their upcoming Hardy Bars will offer 9 grams of protein per serving without compromising taste, achieved by using fava bean and sunflower protein. [19:48]

Marketing and Omnichannel Strategy

Steve elaborates on Nature's Bakery's omnichannel marketing strategy at [20:37]:

• Targeted Campaigns: Collaborations with apps like The Dirt to engage families during camping trips, offering free samples and exclusive discounts.
• Field Sampling: Initiatives like the Summer Sidekick tour, distributing nearly a million samples nationwide to drive trial and conversion.
• Integrated Communication: Utilizing email, social media, and influencer partnerships to maintain ongoing engagement with consumers.

Peter commends the emphasis on experiential sampling, noting its effectiveness in driving both immediate purchases and long-term loyalty.

Talent Development and Team Building

Discussing talent cultivation at [31:00], Steve underscores the importance of building a dedicated and passionate team. Key strategies include:

• Hiring for Fit: Seeking individuals with an entrepreneurial mindset willing to embrace the company's values and culture.
• Empowerment and Trust: Establishing an open-door policy and encouraging fierce internal debate to foster innovation.
• Leadership Alignment: Ensuring leaders are growth-minded, solution-focused, and capable of inspiring their teams without ego.

Steve highlights that being part of Mars allows Nature's Bakery the flexibility to nurture its unique culture while leveraging strategic support when needed.

Challenges and Growth Strategies

At [40:07], Steve candidly addresses the headwinds facing Nature's Bakery:

1. Stagnant Category Growth: Operating in a slowing snack bar market, Nature's Bakery achieved a 26% growth last year by focusing on incremental sales rather than category share.

2. Supply Chain Constraints: Rapid growth has strained production capacity, prompting the establishment of a new factory in Salt Lake City to bolster manufacturing capabilities and meet increasing demand.

Steve emphasizes the necessity of reliable supply chains to maintain retailer trust and avoid stockouts that could hinder brand loyalty.

Advice for Emerging Brands

Concluding the discussion at [44:53], Steve offers macro-level advice for leaders of emerging brands:

• Build and Connect with Your Team: Establish trust, encourage open dialogue, and foster an environment where team members feel valued and empowered to contribute.
• Maintain an Entrepreneurial Culture: Even as the company scales, retain the agility and scrappiness that drive innovation and responsiveness.
• Set Ambitious Goals: Encourage a mindset of stretching for what is possible, setting bold objectives that propel the company beyond comfortable margins.

Steve asserts that team cohesion and visionary leadership are paramount in navigating the complexities of scaling a brand in today's competitive landscape.

Conclusion

This episode of The CPG Guys offers a deep dive into the strategies and philosophies that have propelled Nature's Bakery under Steve Gardner's leadership. From a robust product portfolio and innovative marketing tactics to a steadfast commitment to team empowerment and overcoming market challenges, listeners gain invaluable insights into scaling a better-for-you brand in the dynamic CPG industry.

Notable Quotes:

• Steve Gardner: "We can't be as successful as we could be as a team if we're not all really clear on what the mission is, what we're saying we're going to do to get there, and whether we are getting there." [07:12]
• Steve Gardner: "Our goal isn't to be the highest protein in the market... we are using a fava bean and sunflower protein which allows us to stay within all of our claims and yet deliver that taste." [18:57]
• Steve Gardner: "We're out there for sure. And you know, to your point on the funnel, we're still relatively very low awareness. Let's put the product in people's mouths and they will come back." [25:05]
• Steve Gardner: "70% of our budget is spent on proven tactics, 20% on emergent spaces, and 10% on test and learn initiatives." [31:00]
• Steve Gardner: "Stretch for what is possible and don't limit yourself. That's how we unlock a different mindset in the company." [48:39]

For more insights and episodes, visit cpgguys.com.