Today we’d like to introduce you to Carlos Ramirez.
Carlos, please share your story with us. How did you get to where you are today?
I was lucky enough to find myself working in the dairy industry back in 2007. It all started as a marketing consultant and then as the leader of a dairy company that was working to bring new dairy products to the US market. While working on this incredible project, I had the chance to meet up with a group of specialists and also with big companies, experts in the dairy field. I also enjoyed the pleasure of meeting sensational people such as Hamdi Ulukaya, Chobani’s founder, a true pioneer and the first to deliver the battle against “Goliath” causing on his journey hard times to his competitors.
After a while, I found myself consuming lots of yogurts, one of my occupational indulgences, and I always asked myself how come nobody as talking to me…I was working out and using yogurt as an excellent source of protein to refuel, yet all the companies were talking about the digestive health in a pink cup, totally unrelated to me or any active-lifestyle type of consumer. At the same time I spotted 3 major trends happening:
• Americans eating cleaner and more conscious about their health,
• Protein consumption evolving from the gym fanatic that consumes protein in the form of a complex powder bought at GNC to the active lifestyle consumer that buys friendly products at Walmart or Kroger.
• The boom in Greek yogurt going on in 2010
I launched Powerful Yogurt in 2013 to satisfy those consumers that were looking for natural, great tasting, high protein foods to fuel their daily battles and what better way to do it than with a high protein Greek yogurt…clean, all natural and great tasting. Part of our brand DNA is being the underdog that defies the status quo, so we pushed the envelope to create a provocative positioning by launching the first yogurt specially designed for us, for men’s nutritional needs A simple yet powerful product intended for the dietetic demand of an active man, not Rocky Balboa, but an active regular dude like my friends and I who works out now and then, who takes care of himself, who likes looking good but who also drinks beers and eats chicken wings. But make no mistake, Powerful is more than yogurts, our idea was always to create a food company that disrupt categories to serve relentless consumers that are always on the lookout for the best fuel for the bodies, for different occasions. That’s why we launched Powerful Drinks, Powerful Bars, and Powerful Oatmeal, and we will actively pursue products suggested by our fans and consumers because there are so many products that must be clean up, power up, and improve.
Powerful Business
Powerful Foods, LLC, d/b/a Powerful Yogurt. (“Powerful” or “Company”), based in Miami Beach, FL., produces and markets the first all-natural high protein Greek yogurt committed to championing the active lifestyle. The Company was founded in 2013 by Carlos Ramirez in a response to a lack of great tasting high protein dairy products that were also natural and “clean”. Since the launch of its high protein yogurt, targeted toward active men, its product range has been expanded to include the only high-protein all-natural drink made with Greek yogurt, high protein instant oatmeal, and now launching the first high protein Greek Yogurt Smoothie in a pouch. Starting with its high protein yogurt, formulated to have more protein than any leading brand (21-25 grams per serving) with a 50% larger serving size, the Powerful brand is and will continue to be focused in the “on-trend” high protein branded food segment.
Powerful now has a core customer demographic of both men and women focusing on pursuing an active lifestyle and is offering them a full product lineup of high protein, 100% all-natural and gluten free products encompassing Powerful Yogurt + with whole grains, as well as the signature Powerful Yogurt, Powerful Drinks, Powerful Bars and Powerful Oatmeal. The Powerful line of products is being further expanded into numerous other food and beverage categories.
The Unique Powerful Proposition:
Powerful is achieving rapid growth and presence in two of the largest and highest growth food and beverage categories; the U.S. Yogurt market currently $9.5 billion and reached $10.3 billion in 2017; the U.S. energy/nutritional drinks market currently a combined $9.5 billion and expected to exceed $20 billion by 2020. Powerful’s products resonate with the largest and most highly valued consumer demographic – 75.4 million Millennials aged between 18 and 34 years, who have a larger focus on health in their food preferences than any other consumer group. The Company’s product portfolio is centered on the already well accepted Greek yogurt segment where consumers seek out high protein, all natural and “clean” products; since the introduction of its high protein yogurt, Powerful is, through product innovation, a leader in the high protein food segment. The Company was launched to target the as then untapped active lifestyle male consumer; today the brand has successfully reached a crossover market where over 60% of its products are purchased and consumed by active lifestyle women
Mission Statement: “We bring great tasting, all natural, high protein food for active lifestyles. We live for disruption. We have laser focus on possibilities and a “no matter what” mindset. Our consumers are
SKU Range: The Company offers 9 high protein yogurt flavors across an 8oz serving size and plain in a 32oz serving size with 21-25 grams of natural protein per 8oz serving; high protein drinks are available in 4 flavors in 12fl.oz bottles all containing 20 grams of protein; high protein instant oatmeal in 4 flavors contains 20 grams of natural protein; high protein smoothies are available three flavors. The Company also is launching Powerful Bites into the reforgerated snack category. The Company’s product assortment offers the consumer breakfast and lunch meal replacement eating as well as healthy on-the-go snacking both pre and post workout.
Distribution, Sales and Marketing: The Company’s products are sold in all the leading retail channels, including Natural/Specialty, Premium Grocery, Alternative/Food Service channels and C- stores. Current distribution is through the leading conventional, natural and specialty distributors and wholesalers, including UNFI, Kehe, Dora’s Natural, Bozzuto’s and C&S, as well as regional and national DSD partners; leading direct retail accounts include Walmart, Target, Ahold and Wakefern.
KEY CONSIDERATIONS
Strong Experienced Management Team: After working directly with Sergio Zyman the former CMO of the Coca-Cola Company, Carlos Ramirez, CEO and Founder of Powerful was the CEO of Alpina Foods and designed and successfully implemented the company’ launch of its yogurt based products into the U.S where it achieved over $100 million in revenue within 5 years. Also worked at P&G and McKinsey and other leading corporations.
Company IP and Brand: Since inception, the Powerful brand has been centered on the rapidly growing Greek yogurt phenomenon with high protein products targeted to the demands of active lifestyle consumers and athletes’ for the beneficial effects on performance, recovery and hydration. All demographics of active lifestyle consumers are looking for more protein and the Company’s formulations and recipes offer this with the added benefit of clean natural, low-calorie, low fat and low natural sugar ingredients. In addition, with its high-end package design and imaging that stands out on shelf the consumer has a high level of trust and connectivity for the integrity of the brand. Included in the IP is a portfolio of unique recipes, formulations and flavors.
The Company’s Growth: Net revenue has almost doubled every year since 2013 and through 2019 is projected to reach over $33 million, to achieve over 75% year-over-year compound growth. The launch of its high protein yogurt, in the U.S. in March 2013, brought the “yogurt for men” trend to life; since then other larger leading consumer product companies have entered the segment and helped rapidly increase the size of the category. By appealing to both the female and male consumer the Company has successful expanded its consumer demographic and is now driving revenue growth in 4 product segments across multiple channels. Drinks and yogurt will continue to power the growth of the brand and by 2018 are projected to account for 35% and 40% of revenue respectively; drinks in particular with gross margins expected to reach 42% in 2018 will position the Company for profitable growth across multiple channels.
Greek Yogurt Growth: Consumers are increasingly interested in healthier eating and, in particular, the protein found in Greek yogurt as part of their larger protein “fixation”. The Greek yogurt category has been growing at 50% per year for the last few years and in the U.S. has now reached $7.3 billion.
Main Stream High Protein Consumers: While hardcore athletes were initially the core consumer searching for high protein foods, protein is going mainstream with over 80% of consumers now following an active health conscious lifestyle. The opportunity for the Powerful brand is to continue to innovate with all-natural high protein “clean” products under its distinct brand imaging. The label that says “protein” has a “health halo effect” that goes beyond just the promise of protein.
Product Innovation: The base of all the Company’s SKUs is high-protein all-natural Greek yogurt and proprietary recipes; gluten free, kosher and non-GMO. The Company continues to expand it SKU range including all-natural high energy Mocha Double Espresso drink and a Coconut drink with 160 calories and 3.5 grams of fat per serving, in 2017 and Powerful Bites in 2018. Product innovation around both flavors and category extensions with ensure the Company has a continually evolving pipeline of new high protein orientated products.
Ingredients, Nutritional Trends and Clean Labels: The Powerful brand is meeting the consumers’ increasing focus on healthy and cleanly labeled food and beverage products with innovative ingredients and flavors. Consumers are looking for all-natural high protein products and when the packaging says “protein” consumers say “I’ll take it”.
Has it been a smooth road?
It has been very challenging with the typical ups and downs that every entrepreneur encounters in the journey to build a company:
– Cash constrains
– distribution hurdles
– fierce competition from big guys
– organization build up issues (resources)
So let’s switch gears a bit and go into the Powerful Foods story. Tell us more about the business.
We are disrupting the marketplace without products, cleaning the supermarket aisles from junk food, and supplying only great tasting, all natural high protein foods. We are being copied by big CPG companies as they acknowledge we are connecting with consumers and creating a revolution.
How do you think the industry will change over the next decade?
Consumers more concern about eating clean products, searching for brands that are transparent, honest, and socially conscious. I see more a more growth of different source of protein, with a rapid growth on plant base products.
Contact Info:
- Address: 1828 Bay Rd, Miami Beach, FL 33139
- Website: www.powerful.co
- Phone: 305-3020778
- Email: carlos@powerful.co
- Instagram: @powerful.foods
- Facebook: Powerful Yogurt
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