How I Built This with Guy Raz – Freshpet: Scott Morris

Intro

In this episode of “How I Built This with Guy Raz,” host Guy Raz interviews Scott Morris, the founder of Freshpet. Freshpet is a premium pet food company that offers fresh and refrigerated pet food products. Morris shares the challenges and successes he encountered while building Freshpet into a dominant player in the pet food industry.

Main Takeaways

Building a Successful Pet Food Company

• Scott Morris noticed the growing trend of pet owners buying organic, grain-free, and meat-heavy pet foods.
• Freshpet was launched in 2006 as a premium pet food brand that offered fresh and refrigerated products.
• Freshpet faced challenges in convincing stores to install refrigerators for their products.
• Despite the initial challenges, Freshpet now dominates the fresh pet food market and is valued at around $3 billion.

Entrepreneurial Spirit and Starting from Scratch

• Morris’s entrepreneurial journey started with a successful landscaping business he co-founded and sold.
• Working at Ralston Purina in a sales training role provided valuable experience in the pet food industry.
• Starting a company from scratch can awaken the entrepreneurial spirit and lead to fulfilling work.
• Money is not the only motivator for starting a business; building something great is important.

The Journey of Freshpet

• Freshpet was inspired by the concept of fresh pet food seen in Australia.
• The founders had to figure out how to make the product and source high-quality ingredients.
• Freshpet faced challenges in convincing pet owners to buy refrigerated pet food.
• The company had to invest in refrigerators and create eye-catching displays to attract consumers.
• Freshpet went through rebranding and marketing strategies to position fresh pet food as a normal choice for pet owners.

Growth, Challenges, and Success

• Freshpet faced financial difficulties early on due to overhead costs and slow business development.
• The company relied on in-store demonstrations and sampling to market their products.
• Freshpet struggled with supply chain complexity and shelf life, but continuously improved the product.
• The company expanded into big retailers like Kroger, Walmart, and Safeway through testing and convincing skeptical retailers.
• Freshpet’s growth strategy is to continue expanding, even if it means posting losses, while staying in the 30% growth range.

Overcoming Challenges and Looking Ahead

• Freshpet faced challenges such as a decline in stock price, disputes with retailers, and supply chain issues.
• The company aims to position fresh pet food as a normal choice for pets and expand its presence in more stores.
• The CEO of Freshpet believes in making significant contributions to the organization to lead and create success.

Summary

Building a Successful Pet Food Company

Scott Morris noticed the shift in pet owners’ preferences towards organic, grain-free, and meat-heavy pet foods. This inspired him to launch Freshpet in 2006, offering premium fresh and refrigerated pet food products. However, the company faced challenges in convincing stores to install refrigerators for their products. Despite the initial hurdles, Freshpet now dominates the fresh pet food market and is valued at around $3 billion.

Entrepreneurial Spirit and Starting from Scratch

Morris’s entrepreneurial journey began with a successful landscaping business he co-founded and sold. His experience at Ralston Purina in a sales training role provided valuable insights into the pet food industry. Starting a company from scratch can awaken the entrepreneurial spirit and lead to fulfilling work, driven by the desire to build something great rather than just monetary gain.

The Journey of Freshpet

Freshpet drew inspiration from the concept of fresh pet food seen in Australia. The founders had to overcome challenges in figuring out how to make the product and source high-quality ingredients. Convincing pet owners to buy refrigerated pet food proved to be a major challenge. However, through rebranding and effective marketing strategies, Freshpet successfully positioned fresh pet food as a normal choice for pet owners.

Growth, Challenges, and Success

Freshpet faced financial difficulties early on due to overhead costs and slow business development. The company relied on in-store demonstrations and sampling to market their products. They also faced challenges in their supply chain and shelf life. However, through continuous improvement and expanding into big retailers, Freshpet achieved significant growth and success in the pet food industry.

Overcoming Challenges and Looking Ahead

Freshpet encountered various challenges, including a decline in stock price, disputes with retailers, and supply chain issues. Despite these challenges, the company aims to position fresh pet food as a normal choice for pets and expand its presence in more stores. The CEO of Freshpet believes in making significant contributions to the organization to lead and create ongoing success.

Conclusion

Scott Morris’s journey in building Freshpet into a dominant player in the pet food industry showcases the challenges and rewards of entrepreneurship. By identifying a growing trend and developing a unique product, Freshpet has successfully positioned itself as a leader in the fresh pet food market. With a commitment to continuous improvement and expansion, Freshpet aims to make fresh pet food a normal choice for pet owners everywhere.