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🟣 Issue No. 19: From Kitchen Experiment to $286M Brand: How Justin’s Cracked the Nut Butter Code

🟣 Issue No. 19: From Kitchen Experiment to $286M Brand: How Justin’s Cracked the Nut Butter Code

How a simple squeeze pack disrupted an entire category and led to $286M success.

Kunle Campbell
November 01, 2024

wellness commerce insights

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$100 MILLION BRANDS

How Justin’s Cracked the Nut Butter Code

Today, we’re breaking down how Justin’s turned nut butter from a niche kitchen experiment into a $286 million brand. Founder Justin Gold’s journey is a story of product-led innovation, strategic pivots, and an unrelenting focus on mission-driven growth.

Lead Insight: The Journey to Squeeze Packs

Justin’s started with its founder, Justin Gold experimenting in his Boulder, Colorado kitchen, creating almond and peanut butter in jars with unique flavors like honey and maple. Although these jars gained some traction at local farmers markets and health food stores, they weren’t enough to make the business profitable. As Gold shared, the initial product line just couldn’t scale effectively .

The real breakthrough came when Gold had a revelation while mountain biking. Tired of relying on sugary energy gels, he realized there was a demand for a portable nut butter squeeze pack. This innovation reshaped consumer engagement with the brand. As Gold explained, “I wanted something with protein, not more sugar. That’s where the squeeze pack concept was born” .

However, the initial launch faced hurdles. The squeeze packs were first placed in the energy bar aisle, confusing shoppers who didn’t understand the product. Only when Justin’s repositioned the packs next to the jars in the nut butter section did sales take off, showcasing the importance of strategic merchandising. This change turned the squeeze packs into a key driver of consumer trial, portion control, and on-the-go convenience .

Major Milestones

2004: Justin Gold begins experimenting with nut butter recipes in his home kitchen in Boulder, blending innovative flavors.
2006: The launch of the game-changing squeeze packs, which made nut butter more accessible and portable .
2009: Justin’s secures investment from Boulder-based Greenmont Capital Partners, accelerating growth and expanding distribution .
2011: Introduction of organic peanut butter cups, which quickly become a top seller, proving Justin’s ability to diversify its product line successfully .
2016: Hormel Foods acquires Justin’s for $286 million, helping to scale operations and extend the brand’s reach nationally.
2020-Present: Ongoing focus on sustainability and innovation, including plant-based snacks and eco-friendly packaging.

Acquisition by Hormel and Scaling Up

The acquisition by Hormel Foods in 2016 marked a transformative chapter. Hormel’s resources and operational strength allowed Justin’s to expand its reach into more markets while preserving its Boulder-based culture and mission. As Gold stated, “Being part of Hormel Foods has given us the ability to dream even bigger while staying true to our purpose” . This deal highlighted the natural food market’s importance as major companies sought healthier, sustainable brands.

Retail-First Strategy Over DTC

Unlike many food startups, Justin’s prioritized a retail-first approach. The brand established its foundation with partnerships at Whole Foods, which then led to nationwide expansion into conventional grocery chains like Target and Kroger. While eCommerce provided some support, platforms like Amazon were supplementary rather than core to Justin’s growth.

Key Takeaways for Brand Founders

Solve Real Consumer Problems: The squeeze packs addressed a need for portable protein without excess sugar, proving that personal frustrations can lead to broadly resonant solutions.
Merchandising and Adaptability: Proper product placement can be game-changing. Gold’s decision to reposition the packs next to jars was instrumental.
Community and Mentorship: Leveraging Boulder’s supportive entrepreneurial ecosystem, Gold gained crucial insights and support that fueled early growth.

Gold’s journey from a home kitchen to a major acquisition illustrates that even small innovations, when well-executed and strategically marketed, can disrupt an entire industry.

Presented by Insense

HEALTH IS WEALTH

Try This Weekend: A Gut-Boosting Smoothie with Probiotics & Prebiotics

Gut health is a game-changer, and this weekend is the perfect time to give it a boost! Probiotics are the live “good” bacteria that help balance your digestive system, supporting everything from digestion to immune function. Think of them as your gut’s superheroes, found in foods like yogurt and kimchi. Prebiotics are the fiber-rich foods that keep these superheroes strong, like bananas, garlic, and whole grains.

Combining these two helps your gut flora flourish, improving digestion, reducing bloating, and enhancing your well-being. So, why not start your day with a gut-friendly treat?

Try This Gut-Boosting Smoothie:

Blend together:

1 cup of plain Greek yogurt (probiotic)
1 banana (prebiotic)
1 tablespoon of honey
A handful of spinach
1/2 cup of frozen berries
1/2 cup of unsweetened almond milk

In under five minutes, you’ll have a smoothie that’s packed with gut-nourishing goodness. The Greek yogurt provides live probiotics, while the banana and spinach feed those good bacteria, helping them do their best work.

Give it a try this weekend and feel the difference!

On the Pod 🎧

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