692: I Was Selling Muesli From My Car Boot - Now I Run a $35M/Year Brand

Description

Narelle Plapp started Food for Health twenty years ago making recipes for patients who couldn't find allergy-friendly food on any shelf. She loaded her first Woolworths order by hand - 14 pallets that showed up via fax and had to be paid on delivery, funded by $13,000 from her parents. One SKU eventually did over $2 million in a single retailer. Then she did something most brand founders never attempt: she borrowed $8 million, bought a paddock, and built her own factory. Nine years later, Grain and Bake is a $35 million business - targeting $45 million this year - manufacturing for some of Australia's biggest food brands, running 24 hours a day, five days a week. In this interview, Narelle breaks down what it actually costs to manufacture an allergy-friendly bar, the brutal reality of retailer margins most founders don't see until it's too late, and how she convinced the bank to back a factory before she had a single confirmed customer. What you'll learn in this interview: • How she got her first Woolworths ranging by making sure friends and family bought out every trial store • Why she borrowed $8M to build a factory on a paddock - and the soft commitments from brands that got the bank across the line • What it actually costs to manufacture an allergy-friendly bar - the hidden 10-hour cleans, swabs, and 8-person cleaning crews most founders never budget for • The $0.40 per bar reality - and how to work backwards from RRP to know if your margins will survive retail • Why retailer category margins have jumped from 35% to 55% minimum over 20 years - and what that means for your P&L before you pitch Coles or Woolies • The 13-week clock: how long you have to prove velocity on shelf before you get cut • How a $4M investment in automated cartoning increased her line output by 30% - and why she passed the savings to her brand clients • Why she trawled Europe to find the right oven - and what it takes to commission a factory when you've never built one before • The Grain and Bake client model: why manufacturing for other