The Founders Series - Episode 14: Lemongrass Farms

Summary

In this episode of Nielsen IQ's Founders Series, Jeff Moro, founder of Lemongrass Farms, shares his journey of launching an all-natural insect repellent brand. From overcoming manufacturing challenges to gathering consumer feedback, Jeff emphasizes the importance of passion, the right team, and iterative product development. He envisions Lemongrass Farms becoming a trusted household name, similar to Sun Bum, while expanding its impact on sustainability. With a focus on user experience and data-driven insights, Jeff offers valuable advice for aspiring CPG founders looking to scale their brands.

Takeaways

• 😀 Jeff Moro co-founded Encore Brands with his father in 2010, with Lemongrass Farms being their first CPG lifestyle brand.
• 😀 Lemongrass Farms officially launched in January 2023 after over a year of product development, feedback gathering, and branding efforts.
• 😀 The brand's first product is an all-natural bug spray, developed with the help of an in-house chemist to create a better user experience than existing options.
• 😀 Jeff's inspiration came from brands like Sun Bum, aiming to build a trusted and recognizable brand for insect repellent.
• 😀 The product development process involved gathering feedback from friends and family using small test batches before refining the formula.
• 😀 Lemongrass Farms is vertically integrated, starting as a manufacturer, which helped them control production processes but also created cash flow challenges early on.
• 😀 The brand successfully launched into about 5,000 stores within its first year, with strong support from Crossmark as a broker and data-driven insights from NIQ.
• 😀 Early challenges included securing expensive filling equipment for their continuous spray cans and managing cash flow during the initial production phase.
• 😀 Jeff's biggest challenge was spreading the word and distinguishing the brand in a crowded market of insect repellents.
• 😀 The brand's vision is to become as iconic and trusted as Sun Bum, with strong brand recognition and a loyal consumer base promoting the product.
• 😀 Lemongrass Farms prioritizes environmental sustainability by supporting bee and butterfly habitat initiatives, giving back to nature as part of their corporate mission.

Q & A

What is the main focus of the Nielsen IQ Founders Series?

The Nielsen IQ Founders Series focuses on exploring the many facets of launching a Consumer Packaged Goods (CPG) brand. It covers everything from perfecting product formulations to securing retailer meetings and scaling the business, highlighting the challenges and successes of startup CPG brands.

How did Jeff Moro get started in the CPG industry and what is the origin of Lemongrass Farms?

Jeff Moro co-founded Encore Brands with his father in 2010, and Lemongrass Farms is their first CPG lifestyle brand. The brand officially launched in January 2023, with a focus on creating an all-natural bug spray. They leveraged their manufacturing background, which allowed them to be vertically integrated and control the production process.

What were the key steps taken by Lemongrass Farms after its official launch?

After launching, Lemongrass Farms partnered with Crossmark as a broker, which helped them distribute their product. They also spent a year brainstorming and refining the product based on consumer feedback. By leveraging Nielsen IQ data, they gained valuable market insights, leading to the brand's presence in around 5,000 stores.

How did Jeff Moro gather early consumer feedback for Lemongrass Farms?

Jeff Moro and his team initially distributed clear plastic spray bottles with their bug spray to friends and family for feedback. They focused on whether the product worked, felt good, and smelled pleasant. This informal feedback allowed them to refine the product and adapt it based on real user experiences.

What was the main challenge in the development of the Lemongrass Farms product?

One of the main challenges was creating a sophisticated, continuous spray can for the product. The filling equipment for this was expensive and took about 14 to 15 months to design and build. In the meantime, they had to rely on contract packaging, which strained cash flow and posed logistical challenges.

How did Lemongrass Farms distinguish itself from other natural insect repellents on the market?

Lemongrass Farms set itself apart by focusing on creating a product with a superior user experience. While many other natural repellents existed, Jeff Moro wanted to build a brand that not only repelled insects but also felt good to use, with an emphasis on clean beauty and pleasant experiences.

What inspired the branding and vision for Lemongrass Farms?

Jeff Moro drew inspiration from successful brands like Sun Bum, which disrupted the sunscreen market with its strong branding. He envisioned Lemongrass Farms becoming the 'Sun Bum of insect repellents,' aiming for high brand recognition, a relatable mascot (Chilo), and a loyal customer base.

What are the long-term goals for the Lemongrass Farms brand?

In the next five years, Jeff Moro aims for Lemongrass Farms to achieve strong brand recognition, similar to that of Sun Bum. He hopes customers will trust the brand and feel compelled to share it with others, while also maintaining a commitment to environmental sustainability, such as supporting bee and butterfly habitats.

What advice did Jeff Moro offer to other CPG founders?

Jeff Moro emphasized the importance of passion and having a strong team. He advised that trial and error during R&D and branding are essential, and that obtaining diverse feedback (including through tools like Nielsen IQ data) is crucial. Additionally, it's important to stay open-minded, as the brand will evolve over time.

What role does sustainability play in Lemongrass Farms' mission?

Sustainability is integral to Lemongrass Farms' brand. They support environmental initiatives, particularly through their partnership with the Bee and Butterfly Habitat Fund, which works to create habitats for these important species. Their commitment to sustainability reflects their broader values of conservation and nature.