Getting into Whole Foods nearly destroyed her business

[00:02] husband would fall asleep and I'd put my head in my pillow and I cry quietly, you know, um because it was I was thinking, "What [music] am I doing to my family? I'm working non-stop. Um I'm eating,

[00:15] >> [music] >> Um and are we going to make it through we going to be on the street? Like how are we going to get through this?" are we going to get through this?" >> [music]

[00:31] Welcome to The Big Idea from Yahoo Finance. As the co-founder of the small business funding platform Hello Alice, it has always been my mission to ensure entrepreneurs have the tools they need to succeed. So, let's cowboy [music] up.

[00:45] Today's Big Idea question is, can I successfully pivot from one profession to a completely different industry? Our industry focus will be health-focused The global better-for-you snacks market is valued at 50 billion and is projected

[01:01] to reach over 70 billion by 2030. Joining me to talk about it today is the founder of DeeBee's Organics, Dr. Dion Laslo Baker. DeeBee's Organics is brand known for its organic frozen popsicles and fruit-based clean snacks. Dr. Dion

[01:15] has grown the company from a small startup into a nationally recognized brands including major retail distribution collaborations such as Disney licensing partnerships with a focus on healthier indulgent treats for

[01:28] all your families. Here's Dr. Dion. >> [music] >> All right, Dr. Dion, welcome to The Big Idea. We're so excited to have you. >> I'm so excited to be here. >> Um I'm obsessed with your coat, so let's

[01:41] >> [laughter] >> It's so cute. We're so excited to be surrounded here in the studio with your absolutely beautiful, tasty, wonderful absolutely beautiful, tasty, wonderful products. Tell me how that started.

[01:53] >> Oh my gosh, if you would have told me years ago I'd be here, I wouldn't you. >> I was finishing my PhD in an area of medical science called maternal fetal toxicology. And I really didn't know anything about

[02:06] business. Minding my own business, doing my thing. Um but our son, we took him off all artificial ingredients, everything with added sugars, and it was day I was in the kitchen with my kids and he was making um

[02:23] pops, popsicles. And his sister was making popsicles. And all of going to do what with mommy and one of them said, "Mommy, let's make teasicles." Popsicles together.

[02:38] And I kind of had like literally a light bulb go off and I realized, "My god, I've never heard of this. I can make something that David could eat and be with a heart and a soul and build a

[02:51] Pretty naively at that time. I really didn't know anything. And that's how we >> You know, the the mind of babes, right? I mean, you just think about if if if kids could start being entrepreneurs at three, we'd all be geniuses, right? I

[03:05] things. And the fact you're such a good mama and you listened, look at look at what you've become. It's amazing. >> Thanks. Yeah, it is out of the mouth of babes, you know, because they're so creative. Sometimes I think that that

[03:18] we're held so tight, you know? Their minds are just open, you know? It's >> um I have to thank you for your former career as a as a mama of a preemie and um I it's it's I mean, look at what you've contributed to the world multiple

[03:33] times now. So, how did you go from your your teasicle kitchen to your first a leap. >> It was a heck of a leap. Um and it was probably pretty good that I didn't know how hard it would be.

[03:48] >> Um you know, so I I I had this light bulb. I went immediately. I'm a researcher by training and by heart. And I looked is anyone making this kind of thing anywhere in the world? And nobody

[04:01] was. And I I'm the type of person my mom always said, "Oh my god, I'm giving up on you because if there's a challenge, I'm like, bring it on." And if you tell me I can't do it, I'm like, "Watch me." And and that's really kind of where we

[04:15] got started and how I pushed through and you know, I had to figure out how to make a frozen novelty in little Victoria, British Columbia be in perfect condition when it arrives in Florida.

[04:28] the way. >> I mean, we're we're just crazy enough to that's the whole thing is you got to be just a little bit crazy to get there and and you are because the way I think of your company and when we chatted before,

[04:43] you weren't just making amazing products and figuring that out. You were figuring out cold chain, which is insane. I mean, I mean, like let's jump to that for a second. I mean, how do you even figure that out? I can't imagine the amount of

[04:55] mistakes and oh my lord, learnings. Tell me. >> Oh my gosh, I remember sending out product to Whole Foods that was frozen and calling a buyer once and the answer

[05:08] was, "What do you want?" It actually wasn't hello. He had no idea who it was. And I I was like, "I just want to hang up now, but is that is my Did you receive my product?" And he said it was melted. Too bad for you.

[05:21] >> [laughter] >> And so it was it was hard that cold chain from when you buy the product or you buy the ingredients from the farm and it's got to get, you know, all along the way and kept frozen and in

[05:34] meticulous condition. It was very hard and it's expensive. Um and you know, there is a big environmental footprint there. And when we had the opportunity to get out of frozen and into the ambient shelf stable world

[05:49] we jumped on it. >> And you know you must have had products that you were in love with. First of all, how how out of all the things you can create, how did you narrow down originally, okay,

[06:02] these are the you know, two to three SKUs I'm going to go out with. I mean, it's cuz small business owners, they have a lot of passions and how did you do it and what's your advice to them on how do you pick the one?

[06:15] >> Really, really good thought. Uh I I always tell younger or earlier stage entrepreneurs think about SKU rationalization. Like just go out with a few. So, we went out with about four or five um which was

[06:29] the time. And we went out with frozen novelties, which is tough. Our velocity wasn't great. And it was tough, really, really tough. We were self-funded

[06:43] We were self-funded um and then in 2016 when we came up with the idea to make the first organic all fruit freezie you know, and we launched it in 2017 and it went gangbusters. We kind of went,

[06:58] "Ah, this is how you do it. One SKU with high velocity um creating a category and the business really took off. It was just a major, major change in the

[07:12] completely. >> What was the word SKU? >> Rationalization. >> SKU rationalization. Okay, I I feel like we need t-shirts that say that because, you know, we we all have products that

[07:27] we're in love with and we want to get them out to market. I mean, have you had a product that you just swore that it was going to work and you had to pull >> Yeah. We we've had a few. I mean, the frozen

[07:39] was the first and then we also came up with something called Dip'ems, um which we loved, but it was actually a fruit stick that you dipped into this powder, and you can lick off the fruit stick. Um and we just could not get the the the

[07:54] pricing right, like in terms of we couldn't manufacture it at the price point where we could scale. And you know, I'm looking at a box of it right now, and and it was painful because I was kind of attached to it.

[08:06] Yeah, it was sad, but you know, you never know in the future what what you know, maybe we can bring that back. >> Absolutely. Now, I want to go back to um that you bootstrapped. Tell me about that. What was the risk you took? And

[08:20] cuz it's you and your family, right? Kids and the whole deal. it was just us. Um I would say my my husband is my to this day my biggest supporter. I have this analogy where you each put each

[08:34] other's feet on your shoulders, and you help them soar to the top. And we're both that way. Um but it was tough. Um we put everything we had into starting DB's. And I can remember a day in the grocery store, local grocery store,

[08:49] where I had bought a bunch of stuff. I was with the kids, bought groceries, and it didn't go through." And I'm trying another one, no. Another one, no. Another one of my kids, and they can see there's tears, you know, my eyes are

[09:03] starting to go red, and there's a line up behind me, and and one of my kids says, "Mommy, I've got my I've got some money." And I took I'm like, "Okay, take away everything. Just just like the the the the milk and the and the bread, and

[09:16] we're good." You know, and uh it was hard bootstrapping. There were days I went home, and and my husband would fall asleep, and I'd put my head in my pillow, and I'd cry quietly, you know, um because it was I was thinking,

[09:29] "What am I doing to my family? I'm working nonstop. Um I'm eating, sleeping, breathing everything DB's. Um and are we going to husband said, are we going to be on the street? Like, how are we going to get

[09:43] >> Hey, let's talk That is tough, and I admire you so much. And And for the those business owners, cuz everyone, no matter what business you're in, you're going to have that moment. What What's your

[09:57] personal advice to the individual in that moment, when they're crying in in that moment, when they're crying in their pillow? surrounded by people you can talk to. You know, it's so, so important. You

[10:11] know, I remember calling I have a a few fellow entrepreneurs that I go to when things are really, really tough. And we talk through it. You know, know can. You're still going to go through that pain point. It will happen. Um, but

[10:26] have somebody, at least one person you can reach out to and cry your head off, and it's okay. If it's a coach, if it's a friend, if it's, you know, probably world who gets it. Um, but I think that's really, really

[10:40] important. Or a partner that, you know, like my husband. out to people you trust to pull you through, or push you through, either way. >> Yeah. Or to say, you know what? You need

[10:54] to know when to say, you know, I think I've done everything I can here. Let's move on to the next idea. I'm wiser now. I mean, sometimes you need to do that. >> Absolutely. I mean, we learn from our failures. And uh speaking of, on our

[11:06] unicorns. So, which is your mistakes in business that we can all learn from. Do you have one you can share with us? >> Oh my gosh, yes, I do. I remember when we were in the frozen

[11:19] novelties, when I first started, and we had tea popsicles sweetened with coconut And I thought, okay, people want really healthy. And uh what I discovered when um

[11:33] a big retailer in the US called me and said, "Your product's not moving. This said, "Your product's not moving. This frozen novelty tea popsicle not selling. Bring your trucks, pick it up, and get it out." Oof.

[11:46] it out." Oof. And I remember thinking, "Oh my god. This is it. We're done. Like this is in can't even afford to send you a truck, let alone multiple trucks to all your

[12:00] And uh you know, we got through it, but it almost took us out. And um that was part of what made me decide we're getting out of frozen. This This we're we're And also also, the

[12:16] buyer said one thing to me. Taste is king. Hm. So, you might say you coconut sugar is what everybody wants cuz it's it's low glycemic, it's this and that. Um but taste is king.

[12:30] And that really shifted. And now everything DeeBee's makes is sweetened only with organic fruit puree and fruit juice. And that's it. And it taste amazing. You should never have a

[12:43] than phenomenal. >> Well, you told me the story that I love about um I believe it was your son going to parties and couldn't eat the things around him. And And you know, as moms,

[12:59] kid who's not cool. And now he's the cool kid. Bringing DeeBee's. Tell us that story because I think real world, especially moms, when we create products that real world experience of what people are

[13:13] going through is is is what guides us. Well, I think it it's it impacts our that leaves an imprint, I always say like that's the stuff that's going to stay with you. And you know, our son would go to

[13:26] birthday parties. We took him off all artificial ingredients. You name it, anything that wasn't from the earth, no added sugars, um had to be from fruits, Uh otherwise, he couldn't eat it. And so,

[13:41] they'd have all this colorful cake and this these treats and these all these fruit leather. And it just didn't cut it. And he'd come home and be angry and kick something or hit a sister or act out. And when he

[13:56] could bring DB's, um it was all of a sudden this product that he was proud of. It was colorful, it was delicious, um and his friends thought he was awesome. Um and he didn't have to say I don't eat I can't eat this

[14:10] and I can't eat that. This was something that he could eat, he could feel proud of, um and then and it's something that lives today that, you know, he's still to this day, now he's a lot older, he will chug back our juice boxes, our

[14:24] freezies, you name it. He loves them. >> Well, we also know when when kids don't you immediately. So, they're they are our best focus groups. They're so they they love their mamas, but they're also hard on them, right? Um so,

[14:37] >> Oh, yeah. >> what what's next? What's the future? >> Well, the future is very exciting. Part of the reason I started this was um to have DB's accessible, have it everywhere. And also, at the same time,

[14:50] create a culture where everybody feels like an owner. And so, every single person who joins the DB's team um has that opportunity for ownership. And so, I'd say it's twofold. It is one is

[15:04] accessible at a reasonable reasonable price everywhere. Like, you can get us at every Target, you can get us at every Costco. And at a reasonable price. I Costco. And at a reasonable price. I always wanted organic to be accessible

[15:17] to everybody. And we work with organic farms to make sure that we can get the best product, the highest quality. Every single ingredient is organic. Um but there's still opportunity for us to get everywhere.

[15:31] And also to continue creating this culture. Because those lonely moments when you're crying in your pillow, you just want people around you. And so, every single leader on our team, our leadership team, our investors, so

[15:44] they're my partners. And then every person who's been with the company um for a while has the opportunity for ownership. And I think of it as like a warm, cozy quilt, you know, with all those patches. Um and

[15:58] every person is a patch. And we wrap around each other. You know, I just went through a hard time with something medically with my husband, and my my everybody on the team had my back. Um so, that's what excites me, and

[16:13] that's what I love. >> The uh whenever I see or feel a quilt, it makes me think of my grandma, uh who I miss so much. Um and I hope your least. >> Thank you, he is.

[16:26] >> One of the things that I just adore about you is how much you want this to be in every store in America. And I and in Canada. And I've been thinking about um how difficult it is to have one customer

[16:41] set as the store itself, and then the other is the actual and then the other is the actual consumer. How do you balance those two? >> Yeah, I mean, it is a balance. I always say if people knew, the consumers, the

[16:54] customers knew what it actually takes to get that product on the shelf, um I think they'd be amazed. I don't think people understand think people understand that from the farm, making the product,

[17:07] meeting with buyers, getting it into warehouses, getting it on the store shelf, you know, there is uh it it it it's hard. It's a lot of work, and it's a lot of networking. It's a lot of connection. It's a lot of you know,

[17:22] connecting with your consumers in interesting ways so that they also know where you are um in the store. You know, there's so many layers of it. >> Have you ever said no to the store when you knew it wasn't right for your end

[17:35] you knew it wasn't right for your end consumer? see a price, a sticker price and we're in shock. Because we know what we sold to them. We're we're very fair and equitable

[17:47] across the market. And when we see this high high sticker and we kind of you know, we'll say, "Hey, like what's going on here?" Um because people will kind of expensive." And we're like, So that that's tough cuz cuz you don't

[18:03] have a say um with the store. um with the store. But we've also uh said no when when we know we also can't survive um at a price that we have to sell to the

[18:16] anyway. Um so but we need to survive. And I think as entrepreneurs um we need to know when to say, "Okay, we need the financial wherewithal in order to

[18:31] say, "No, this isn't going to work because it's not sustainable." And then >> Right. I mean, that's the whole thing. You want to be able to serve your core customer in a way that's both fiduciary appropriate but also the best product in

[18:44] the world. I get it. So what do you what do your kids think now? I mean, um you sickles in the kitchen. Are they proud of their mama? >> I think they're proud of their mama. Um you know, they're it's very much a

[18:58] family. Every single thing that happens is we talk about it at the table. Um both my kids are in entrepreneurship now. Um they both did a science degree or they're doing a science degree and they're both young starting

[19:11] >> It's >> interesting and so now they'll come to me for advice and we'll talk chat through things. Um and I always say I went to school to be a PhD and then I went to the school

[19:25] of hard knocks to be an entrepreneur. >> [laughter] >> I think that one that second one's really a lot even harder, right? really a lot even harder, right? >> Oh gosh, yeah. Much harder. Yeah.

[19:37] day. Um so any new products coming out that you're fired up about? >> Yes, we have our juice boxes actually >> Oh, yeah. >> Yeah. So they're the first all organic

[19:51] kids prebiotic juice boxes and so those are just coming out all across the natural market. We're also in some of the Costco regions. Uh David, my son was one of the biggest taste testers of this.

[20:06] Um and uh it's not until David says, "Yep, Mom, it's really good." >> that I I think, "Okay, this is going to be awesome." So yeah, we're really excited about that. >> Can't wait. Um well, you are a blessing

[20:20] and congratulations on the growth, on the the roller coaster. Congrats on being a little bit crazy and most of all, you know, creating a product that is that warm quilt, makes us all feel healthy and good about

[20:35] ourselves. Most of all, thanks for coming on the show, Doc. >> Well, thank you and thank you for your incredible personality and your amazing thank you for having me. >> Appreciate it.

[20:48] >> At the end of each episode, I like to give a shout out to a small business that's doing amazing work. Today, I'd like to shout out one of Dr. Dion's favorites, Binnie. Binnie is a wellness beverage brand founded by two university

[21:02] energy drinks made with natural ingredients like yerba mate and adaptogens. The company focuses on providing everyday energy without the jitters or the crash, positioning itself for a better for you alternative in the

[21:17] energy drink market. You can check them out at drinkbinny.com. Thank you Dr. Dion for coming on the show and thank all of you for joining This has been a big idea from Yahoo Finance. You can come say howdy to me on

[21:31] ElizabethGoreUSA. Also, scan the QR code below to follow Yahoo Finance podcast or check us out where we get your podcast on the big idea. I'm Elizabeth Gore. As my grandma always said, hold your head up high and

[21:45] give them hell. See you next time. >> [music] financial advice and should not be used

[21:59] as a substitute for professional financial services.