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Yahoo
29-05-2025
- Business
- Yahoo
How Two Entrepreneurs Made $200 Million By Selling Mayonnaise For $10 Per Jar
You may be familiar with the adage, "Build a better mousetrap and the world will beat a path to your door," but have you ever heard of someone building a better mousetrap? Mark Sisson and Morgan Zanotti have done exactly that. They co-founded Primal Kitchen in 2015 by selling avocado-oil-based mayonnaise for $10 per jar. Four years later, they sold the company to Kraft Heinz (NASDAQ: KHC) for $200 million. CNBC profiled their journey from startup to multi-millionaires, and there is a lot that everyday investors could learn from their story. Building a better mousetrap begins with the belief that there is a way to improve a product already on the market. In the case of Primal Kitchen, the product was mayonnaise. The popular spread is tasty, but notoriously high in fat and other ingredients that make it unhealthy to eat in large quantities. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Sisson and Zanotti decided to change that. "At the time we launched Primal Kitchen, every condiment in the grocery store had either soybean, canola oil, sunflower seed oil, and or sugar," Zanotti told CNBC. Their decision to go with avocado oil made sense from a health perspective. Many nutritionists regard avocado as a "healthy fat," and a better alternative to saturated fats and oils, but avocados are expensive. That meant Primal Kitchen mayonnaise was going to be expensive. "We launched in a category where the closest price competitor was probably like $3 per jar," Zanotti said. Sisson and Zanotti's avocado-oil-based mayonnaise would have a price point of $9.95 per jar, which is more than triple their most expensive competitor. "So many of our advisors in the food space said, 'you're crazy, no one is going to spend $9.95 for a jar of mayonnaise,'" said Sisson. The conventional wisdom that most consumers won't pay that much for mayonnaise is basically correct. However, Sisson and Zanotti did have a few factors working in their favor. First, there is a large contingent of consumers in the "better for you" segment of the food market. More importantly, they are willing to pay the price premium for healthier alternatives to everyday condiments like mayonnaise and salad dressing. Trending: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – "We thought, look, we want this product. We're going to test the market and see if other people want it, and if they do great, we have a business. If not, we shut it down," Zanotti explained. That's where Primal Kitchen's other built-in advantages came into play. Sisson already had a successful supplements business that was generating enough revenue for him to divert profits into developing Primal Kitchen. That also gave him a customer base with an affinity for health-conscious products. According to CNBC, Sisson invested $2 million in profits from his supplement business to start Primal Kitchen. It was a risky gamble, but CNBC pointed out that the global condiment business was worth $31 billion annually and expected to continue growing in the years to come. The CNBC profile noted Sisson's exploits in the food supplement and health industry included a successful blog with 3.5 million views per month and a book. "I spent ten years building a platform before I had a product," Sisson said, "It made it a lot easier to launch a product into that space." Ironically, Sisson met Zanotti in 2013 at an event for his fitness blog, and the two hit it off had an extensive marketing background and a genuine commitment to Sisson's vision. After an initial attempt to launch Primal Kitchen with a professional chef failed, Sisson offered Zanotti the chance to bring her marketing expertise to the table and become his partner in Primal Kitchen. In addition to investing his own capital, Sisson also personally guaranteed a multi-million-dollar line of credit. It was a risk, but Sisson and Zanotti believed in their vision and pressed ahead. The cost of buying enough avocados to supply Primal Kitchen was intense, and Sisson said the amount of credit he guaranteed often ran into the millions. "It was a combination of naivete and hubris that made me think we could launch this expensive mayonnaise," said Sisson. Primal Kitchen introduced its avocado-based mayonnaise to the market in 2015, and it was a hit with both the health-conscious and paleo-diet community. According to CNBC, the company sold its first 12,000 units within one week. It went from there to high-end grocery store shelves and became a nationally known product within a year. The company broke even in year two with $26 million in sales and was doing $50 million annually by 2018. That's when Sisson and Zanotti began looking for buyers. "I had always planned on growing this business to sell," said Sisson. "I was in my early 60s when I started the company." Kraft Heinz was immediately interested and put in the winning bid of $200 million before sealing the deal in 2019. All parties involved in the transaction were thrilled with the outcome. According to CNBC, Primal Kitchen did nearly $250 million in sales in 2024. Read Next:'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article How Two Entrepreneurs Made $200 Million By Selling Mayonnaise For $10 Per Jar originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
CNBC
01-05-2025
- Business
- CNBC
Primal Kitchen co-founder began with $10 jars of mayo—he sold the company for $200 million just 3 years later
Industry advisors told Primal Kitchen co-founder and CEO Mark Sisson that he was "crazy" to try selling jars of mayonnaise for nearly $10 each, he says. The food blogger took the risk anyway, launching his paleo condiment and dressing brand in 2015 due to "a combination of naivete and hubris on my part," says Sisson, 71. Though Sisson's inexperience in the condiments business was a drawback, Primal Kitchen had a different significant advantage. Around 3.5 million people each month were reading his blog about fitness and nutrition, Mark's Daily Apple, when he launched Primal Kitchen, Sisson estimates. He's also a The New York Times best-selling author of books like 2009's Primal Blueprint, which promotes the paleo diet and lifestyle. Many followers already came to him to buy vitamins and supplements — the business brought in between $7 million and $9 million a year under the Primal Nutrition brand he founded in 1997, according to Sisson. (CNBC Make It was not able to independently verify the figure.) "I spent [over] 10 years building a platform before I had a product to launch," Sisson says. That made unveiling Primal Kitchen "a lot easier." Primal Kitchen's first product was mayo made from avocados — without any of the processed and artificial ingredients, added sugars, or soybean and canola oils often found in most mass market mayonnaise brands at that time, the company says. Sisson and his co-founder, Morgan Zanotti, were far from certain that the condiment would actually sell. "It was kind of an entrepreneurial experiment," says Zanotti, who served as Primal Kitchen's president until 2024. "We thought, 'Look, we want this product. We're going to test the market and see if other people want it. And, if they do — great, we have a business. If not, we shut it down.'"The cost was less important than making a mayonnaise that worked with the paleo diet, Sisson says. "Rather than start with a price point and back our way into ingredients and figure out the compromises that we would need to make … [I said,] 'Let's build the best possible product, and we'll price it [once] we know that it contains no bad ingredients, that it tastes great," Sisson recalls. When their initial run of 12,000 units sold out in only a week, Sisson and Zanotti knew they had found an untapped market. Three years later, after adding other successful new products like ketchup and salad dressings, Sisson sold the business to Kraft Heinz for roughly $200 million. He and Zanotti continue to serve the brand in advisory roles. Primal Kitchen may have started as an "experiment," but it still required some serious funding to get off the ground. Sisson was "netting between $2 and $3 million a year" from his supplements business, he says, and he put aside $2 million total to launch this new endeavor. That money went toward researching and developing recipes and then producing the initial runs of mayonnaise, he says. Buying enough avocado oil "required tremendous amounts of capital, which we didn't have, because we were running the company [as a] break-even [proposition]," he adds. Rather than seeking investors, Sisson opted to take out a business loan, starting a line of credit that eventually grew to $9 million, he says. Sisson was the guarantor on that loan, making him personally responsible if the company folded. "That was a difficult thing to sleep on every night for a couple of years," Sisson says. "That was always hanging over my head — this huge line of credit." Sisson had recruited Zanotti to help him run the business after meeting her at an event he hosted for his Primal Blueprint program. Zanotti, a former marketing executive for food brands like KeVita, came on board to help Sisson market Primal Kitchen, launching a social media campaign around the hashtag "#HoldtheCanola." The mayonnaise started selling in February 2015, with Sisson and Zanotti "hand-packing" the first orders, she says. Within months, Primal Kitchen was on shelves at Whole Foods Market stores — regionally, at first, but nationwide within a year of launching. They brought in $1.5 million in revenue that first year, which increased to $13 million in 2016, the year Primal Kitchen mayonnaise began selling in Publix grocery stores, according to Zanotti. By 2018, the year Primal Kitchen sold to Kraft Heinz, the brand reached $50 million in annual revenue, according to Zanotti. Making that success even sweeter was the fact that Sisson and Zanotti owned nearly all of the business, having mostly eschewed outside investors to maintain control. By the time they sold to Kraft Heinz, the co-founders owned 95% of the business, with just 5% owned by family and friends who invested in the company before the acquisition. "We didn't raise money from other people, so we weren't beholden to investors to show them some amazing growth [or] profitability," Sisson says. "I think the only directive to my team was: 'Just don't lose a lot of money, but let's grow as quickly as we can into these different areas.'" Primal Kitchen benefitted from being early to the paleo trend. Similar products can be found these days at grocery stores from comparably priced brands like Sir Kensington's and Chosen Foods. Even huge corporate brands like Kraft, also owned by Primal Kitchen's parent company, and Unilever's Hellmann's now make their own avocado oil-based mayonnaises. The global paleo food market was worth $12.6 billion in 2024, according to research from the IMARC Group consulting firm, which projects that market will keep growing to nearly $20 billion within the next decade. The Primal Kitchen brand continues to thrive and brought in $250 million in gross retail sales last year, according to the company. This was his hope from the beginning: Sisson realized early on that Primal Kitchen would need the vast resources and distribution channels of a huge company like Kraft Heinz to reach its current level of success, he says. "I had always planned on growing this business to sell. I was in my early 60s when I started the company," Sisson says. "You hit a point where there's no more that you can bring to this party that somebody else with greater access to money and distribution couldn't do" in a much better way.
Yahoo
28-04-2025
- Health
- Yahoo
8 Of The Largest Cooking Oil Recalls In History
Whether you're a home cook or a professional chef, cooking oil is a staple in kitchens worldwide. For many, the vast assortment of cooking oil options at supermarkets makes it easy and exciting to try a variety of different options. However, behind many of these popular oil brands lies a startling history of recalls and lawsuits that have happened over the years. From packaging hazards to contagious outbreaks, major cooking oil brands have been faced with recalls that have made headlines for their far-reaching public impact on unassuming customers. Like any recall, these instances highlight the potential risks that come with mass food manufacturing as well as the blind trust that customers put into food processing. In this article, we will discuss eight of the largest and most infamous cooking oil recalls that forever shaped the public's perception. After reading, you may think again before purchasing cooking oil from some of these popular brands. Read more: 11 Foods You Might Want To Avoid Buying At Aldi In 2011, ConAgra Foods found itself at the center of a major recall scandal and a class action lawsuit for falsely advertising several Wesson Oils products as "100% natural." On the contrary, the oils were actually made from genetically modified crops, making them far from natural. The plaintiffs argued that this packaging was misleading customers into buying a product. This lawsuit highlighted the public's demand for more transparency in food labeling. Ultimately, the lawsuit was settled for $8 million, and ConAgra Foods voluntarily recalled all the mislabeled oil products. This case served as a turning point for the cooking oil industry as it became clear that the public would no longer tolerate misleading packaging at large. While this recall directly hurt no one, it remains important due to its long-lasting effects on the industry. This settlement sent a clear message about the potential legal and financial consequences misleading consumers with food labels can have. Just last year, Primal Kitchen faced a major recall after a packaging issue was flagged for their popular avocado oil product. Avocado oil is a kind of cooking oil that is often credited as a healthier alternative to many vegetable oils. Unfortunately, this product was identified by the FDA and recalled after a significant packing issue was discovered. The Primal Kitchen Avocado Oil (750 milliliters) was recalled after it was discovered that the glass containers in which this oil was packaged in was prone to breakage, making the bottles potentially hazardous for customers. This manufacturer discovered this issue after seeing leaked avocado oil in the product's shipping containers. The recall affected 2,060 cases of this avocado oil, making this situation an extreme loss for the Primal Kitchen brand. While no injuries were reported, this instance certainly scarred Primal Kitchen's reputation. With such a large loss of product, this recall will be difficult for Primal Kitchen fans to forget. Vitamin Cottage Natural Food Market underwent a significant product recall in 2020 after testing revealed mold contamination. According to the FDA, the Natural Grocers Organic Extra Virgin Coconut Oil packaged in glass jars tested high for mold, which ignited a class II recall of 14,863 pounds of product. In addition to being a common household ingredient in recipes and beauty routines, coconut oil is commonly used as a cooking oil. While some molds are perfectly healthy to digest, others can be dangerous. If a customer were to accidentally ingest mold from a contaminated jar, they could become ill with symptoms like diarrhea, nausea, and shortness of breath. Thankfully, no illness or injury was reported. This incident served as a reminder to companies and consumers to stay vigilant about food safety. Mold develops only in the right kind of conditions, and this problem can be better avoided with a more strict manufacturing and transporting process. In 2015 and 2016, Deoleo USA faced two major scandals involving their olive oil brands Bertolli and Carapelli. The first recall happened in November of 2015 when Deoleo USA issued a voluntary recall of Bertolli and Carapelli olive oil products after discovering that a refining supplier issue was making the olive oil prematurely spoil. The company stated, "Our investigation to date reveals that the oil has prematurely oxidized, causing potential off odor and taste, which presents a quality but not a health issue... We have identified the source of the problem with one of our refining suppliers and have taken immediate corrective action." Unfortunately for Deoleo USA, in February 2016 both products were recalled again after trace amounts of pesticides were discovered in the olive oil. Having two major recalls happen so close to each other was an incredibly bad look for Deoleo USA, and this situation has certainly affected the reputation of the brand overall. Mediterranean Food Inc. found themselves in a recall nightmare of their own after Salmonella was discovered in select jars of their Alqosh Sesame Oil. This brand, which specializes in bringing unique Mediterranean flavors to grocery shelves, was left to comply with a Class I recall from the FDA, which is only used if they think the products could cause severe health consequences or be potentially fatal. The product tested positive for Salmonella by the Michigan Dept. of Agriculture and Rural Development, leading to 1,680 pounds of product being recalled. The CDC warns that Salmonella can cause diarrhea, fever, stomach cramps, and infection from days to weeks after exposure. Unfortunately, Salmonella can be deadly, especially for vulnerable groups. Due to how potentially dangerous this recall could have been, this instance altered the brand's image for Mediterranean Food Inc. customers. In 2016, a recall for frying oil affected one of America's largest fast food chains, Burger King. Silver Source, made by Stratas Foods, LLC, is a massive food supplier that offers reasonably priced products to large restaurants or companies. At the time of this recall, Silver Source supplied liquid frying oil to Burger King. Unfortunately, a major error in the packaging of this product led to a complete recall. According to the FDA, Stratas Foods was informed by their plastic manufacturer that a piece of plastic from the neck finish of their five-gallon containers could have fallen into a portion of shipped-out jugs. Plastic pieces in a jug would be considered foreign materials, which meant that 6,137 cases of these jugs needed to be recalled. This recall showed that mistakes can easily be made at wide-scale food production operations like Stratas Foods, LLC, which supplies food giants like Burger King. While no injuries came from this, the large amount of product that had to be wasted makes this case somewhat infamous. McEvoy Ranch is known for providing luxury and award-winning olive oil products, but that hasn't stopped the company from getting themselves into a few scandals either. A gallon of McEvoy's Organic Extra Virgin Olive Oil costs $325, which is expensive, but some say is indicative of the product's quality. One happy reviewer stated: "We have been buying this olive oil for many years and it's the best olive oil we have ever had-we trust the makers and we know it's worth every amount we pay." Unfortunately, this olive oil found itself in quite a controversy in 2018 after they had to issue a recall for 6,000 bottles of the product. The reason for the recall was because of a quality issue in the packaging, which was leaking and cracking due to inconsistent filling. To lose so much of this savory and luxury product was surely a tragedy for the company, but an issue like this packaging error was too large to be potentially overlooked. In the end, McEvoy Ranch likely had to work hard to improve its reputation after this manufacturing disaster. In 1993, a massive recall and scandal hit Rubino U.S.A. Inc., a prominent name in olive oil manufacturing. The FDA initiated the recall after it was discovered that the company was mislabeling a variety of olive oil products. This massive recall affected approximately 200,000 units of olive oil. The FDA discovered that several products were being diluted with canola oil or low-grade olive oil despite being advertised as having a high-grade olive oil. In addition to being a huge loss of product, this recall was a massive violation of consumer trust. To mislabel a product as something it is not is intentionally misleading a customer, which is what prompted the FDA to intervene and issue this recall. This instance also helped ignite a larger conversation over the quality of different grades of olive oil and the responsibility of companies to correctly advertise that grade. Overall, this situation stands amongst the others on this list as some of the largest cooking oil recalls in history. Only time will tell if another major slip-up joins this list of company scandals. Hungry for more? Sign up for the free Daily Meal newsletter for delicious recipes, cooking tips, kitchen hacks, and more, delivered straight to your inbox. Read the original article on The Daily Meal.
Yahoo
24-03-2025
- Health
- Yahoo
The Biggest Cooking Oil Recalls In US History
Recalls can be initiated by the Food and Drug Administration (FDA), the United States Department of Agriculture (USDA), or voluntarily, by the manufacturer. Even with an established system in place, there have been some very strange recalls over the years (involving everything from a dead bat in bagged salad to lead in apple sauce). In 2024 alone, there were several big recalls that included salmonella-contaminated chocolate and a potential ice cream listeria outbreak. However, when it comes to cooking oils, recalls often occur when a characteristic of the product is deemed unsafe or misleading, with varying levels of severity. For example, the label could misrepresent the ingredients, triggering allergies, or bacteria could have contaminated the oil. This may sound scary, but recalls ultimately encourage companies to be more careful, prioritizing customers and ensuring the oils are safer for consumption in the long run. On top of that, quality control plays a significant role in the oil industry. This is particularly true of olive oil, a product routinely scrutinized for its authenticity, since its high cost results in manufacturers occasionally cutting corners. Read more: Popular Soy Sauce Brands, Ranked From Worst To Best In April 2024, Primal Kitchen voluntarily recalled over 2,000 cases of avocado oil. This was deemed necessary after warehouse workers reported oil seeping out into shipping containers, likely as a result of broken bottles. After a prompt investigation, the manufacturer determined that the glass bottles were vulnerable to breakage. A recall was announced shortly after. However, faulty bottles had already been shipped from online purchases and sold in California and Eastern U.S. stores. Consumers were advised to discard the product and contact Primal Kitchen for a refund. Luckily, there were no reported injuries. Packaging-related recalls are not unheard of in the food industry. Just a few months after the Primal Kitchen incident, Walmart recalled more than 12,000 cartons of Great Value chicken broth due to packaging problems that risked spoilage. As of February 2025, Primal Kitchen has not reported further incidents. Its products continue to be highly rated by various online retailers, indicating that Primal Kitchen took limited losses from the recall, likely in part due to the company's immediate response and transparency. Deoleo USA, the largest global olive oil manufacturer and parent company of Bertolli and Carapelli, experienced two recent notable recalls. These voluntary recalls occurred less than a year apart in November 2015 and March 2016. The first affected Extra Light Tasting and Classico Pure Olive Oil bottles sold in the U.S. between January and May 2015. The recall was initiated after the company discovered premature oxidation in the oils, which could negatively affect its odor and taste. Although the company affirmed that the recall was precautionary, the bottles ran the risk of spoiling before their expiration date. Deoleo began another non-compulsory recall of its olive oil in March 2016 as a result of safety concerns. Similar to the 2015 incident, the recall affected Deoleo's Extra Light Tasting and Classico Pure Olive Oil. The olive oils were shown to contain the pesticides Tebuconazole and Trifloxystrobin. Although limited amounts were detected, the United States prohibits their presence in food, as they are considered not safe for human consumption. Deoleo announced the issue stemmed from one of its refining suppliers and took swift action. In both cases, customers could request refunds. Recalls are not the only controversies Deoleo has faced in recent years. In 2018, Deoleo agreed to a $7 million settlement in a class action lawsuit after it was alleged that Deoleo inaccurately labeled its bottles as "extra virgin" and "Imported from Italy" (via Top Class Actions). Though Deoleo denied wrongdoing, the company chose to settle to avoid ongoing litigation. In 1993, the FDA ordered a recall of olive oil products from Rubino U.S.A. (located in Cincinnati, Ohio) after determining that the labeling of some of its products was falsified. Ten types of olive oil were misrepresented, including Rubino extra virgin olive oil and multiple varieties of Rubino olive and canola oil blends. While some of the higher grade olive oil was believed to be diluted with lower grade blends, Rubino was also accused of taking this a step further and replacing a portion of the olive oil with canola oil. In some cases, gallon cans labeled as 100% pure olive oil had undisclosed canola oil, and blends purported to be a 50/50 mix of olive and canola oil were found to contain more canola oil than their containers indicated. As a result, over 200,000 Rubino products were recalled nationwide. It wasn't the last time Rubino got caught up in an olive oil scandal either. In the early 2000s, along with Bertolli and Carapelli, Rubino was accused of labeling its virgin olive oil as "extra virgin olive oil." This was discovered after multiple panels tested the oils' acidity. Olive oil scandals continued to run rampant worldwide, with olive oil fraud hitting an all-time high in the European Union at the start of 2024. Read the original article on Mashed.
