If you can’t stand the heat… You know the rest.
Paul Lindley had no such qualms when he quit a 10-year career at Nickelodeon, where he was a member of the board, to start Ella’s Kitchen last year. The combination of organic fruit in crushed form hardly sounds unique, but by solely targeting children and marketing the pouches as snacks, not smoothies, Lindley’s got his niche.
Nevertheless, this is a hotly contested sector, so it’s all the more impressive that within months of starting he secured a highly desirable contract with Sainsbury’s and an advertising campaign worth in excess of £100,000 for nothing.
While it’s early days, the company has a glowing future. Lindley self-financed the operation with £200,000 in order to retain equity. He spent 18 months developing the product, concept and business plan, and recently won Micro Business of the Year at the Startups Awards, sponsored by NatWest.
He’s not the first to latch on to the voguish five-a-day, government-backed promotion of healthy eating for kids. It seems every man and his dog wants a piece of the obesity action. So what makes his take on it so special? Simplicity is a factor. He launched with two products – The Red One and The Yellow One. A sounding board of children came up with the names and helped choose the recipes – such authenticity always being a good way to sell your PR story later, of course.
The pouches themselves are distinctive, colourful and look like an established product. His daughter, Ella, also features. Another great PR angle. “It is real and it is honest,” he says. “With Ella being on the packages, parents and kids can feel the connection with the brand.”
But the real coups were Sainsbury’s and an agreement Lindley struck with Viacom Brand Services, the advertising arm of Nickelodeon, ensuring three million parents and children were exposed to the brand. He agreed a revenue-sharing deal whereby the company helped create the ad and then secured space on Nickelodeon’s channels in exchange for a percentage of product sales. Friends in high places!
“This time I was on the other side of the table,” he explains. “I persuaded them to use their media positively for kids. And instead of the usual rate card, we found another way.” The campaign is set to run again shortly, too.
Sainsbury’s was a bigger challenge. Lindley first made contact in April 2005 and, after many phone calls and emails, was invited in during July 2006. After a passionate pitch and armed with the promise of TV airtime support, he walked away with confirmation that the products would appear in 338 stores across the UK. Tesco, Waitrose and Holland & Barrett soon followed, with Budgens and others on the horizon. With impressive sales to date – including close to a million pouches through Sainsbury’s – Lindley has already moved into baby food. Turnover is expected to hit £800,000 for its first year, with projections of £2.2m for 2007. With other products and deals in the offing, things are looking healthy.