The art of letting go with Vincent and Andrew Kitirattragarn of Dang Foods | How I Built This with Guy Raz

Intro

In this episode of “How I Built This with Guy Raz,” Vincent and Andrew Kitirattragarn, the founders of Dang Foods, share their journey of building a successful Asian-inspired snack brand and the challenges they faced during the pandemic. They discuss the art of letting go and the valuable lessons they learned from setbacks and failures.

Main Takeaways

Building a Brand and Overcoming Setbacks

• Dang Foods started as a small company but managed to create a significant brand with products in Whole Foods.
• The launch of their keto bar with Whole Foods in 2019 was successful and became their number one product line quickly.
• COVID-19 had an immediate impact on purchasing habits of snacks and bars, causing the energy bar line to take a hit.
• The supply chain crisis caused huge spikes in container prices, making it difficult to raise prices on shelves.
• Talking about setbacks can help us understand the value and lessons of those setbacks.

Navigating Difficult Choices and Financial Challenges

• COVID had a huge impact on the business, forcing them to cut costs to survive.
• Layoffs were a lot harder than cuts to marketing and spend.
• When not profitable and not growing, the only options are to fundraise or look for acquirers.
• The company tried to fundraise but it wasn’t coming, so they looked for people interested in merging or acquiring the business.
• They spoke to dozens of potential investors, but it wasn’t an easy sell.

The Winding Down and Emotional Impact

• Vincent and Andrew decided to wind down the business due to challenges in the supply chain and halted inventory orders with the board’s permission.
• Average time in port spiked from 50 to 100 days, leading to a surplus of inventory.
• Vincent felt a sense of loss and grief when winding down the business after working on it for over 10 years.
• The team had to sell off assets and inventory for nine months and return the remaining cash to creditors.
• Vincent went through a three-month depression after the shutdown and sought therapy and support from other entrepreneurs and Andrew.

Starting Anew and Lessons Learned

• Vincent was reinvigorated to get back into building a business, despite the challenges they faced.
• Vincent invested in a company that sells frozen soup dumplings and joined them in 2022 after they grew 500% and were looking to expand into retail.
• Andrew is now doing consulting work to help other startups wind down their businesses.
• Failure can be immensely valuable and a tool to help prepare for the next journey (Vincent).
• Focusing on the product and understanding product-market fit is crucial for success (Vincent).

Summary

Building a Brand and Overcoming Setbacks

Vincent and Andrew Kitirattragarn built Dang Foods into a significant brand with products in Whole Foods. Their keto bar became a top-seller, but the pandemic and supply chain crisis caused setbacks. COVID-19 changed purchasing habits, affecting the energy bar line. The supply chain crisis led to price spikes, making it challenging to raise prices on shelves. Despite these setbacks, the founders believe that talking about setbacks helps understand their value and lessons.

Navigating Difficult Choices and Financial Challenges

Dang Foods faced financial challenges during the pandemic and had to cut costs to survive. They explored fundraising and potential mergers or acquisitions but faced difficulties in finding interested investors. The founders had to make tough choices and navigate the complexities of aligning incentives during mergers and acquisitions.

The Winding Down and Emotional Impact

Due to supply chain challenges, Vincent and Andrew decided to wind down Dang Foods. This decision led to a surplus of inventory and a sense of loss and grief for Vincent. The team had to sell off assets and inventory, returning cash to creditors. Vincent experienced a three-month depression after the shutdown but sought therapy and support to overcome it.

Starting Anew and Lessons Learned

Vincent found new inspiration in building a business and invested in a company selling frozen soup dumplings. Andrew now helps other startups wind down their businesses through consulting work. Both founders emphasize the value of failure and the importance of focusing on product-market fit for success.

Conclusion

The story of Dang Foods and the Kitirattragarn brothers showcases the challenges and resilience required to build and let go of a business. Despite setbacks, they have found new paths and valuable lessons that will guide them in their future endeavors. Their journey inspires entrepreneurs to embrace failure, focus on product-market fit, and seek support during challenging times.