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Zoe
Foods
Founder,
Tori Stuart
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A
Natural Success
by J.D. Renzi
BEFORE A STARTUP leases Class-A office space and purchases
boardroom chairs that cost as much as a summer weekend on
Nantucket, most CEOs will probably tell you that a company
needs a product, customers and revenues (hopefully in that
order). Incredibly, that common wisdom was forgotten in
the dot com era by many entrepreneurs "drunk"
with dreams of billions. However, a Newton-based manufacturer
of health foods, founded in the midst of the dot com era,
is looking to achieve a more "natural" kind of
success.
Zoe
Foods began shipping product January of 2000, and from
the start "baby boomers" and women (who make
80% of food purchases) have been their prime demographic
focus. Baby boomers make up about 30% of the population
in the United States, and according to U.S. Census 2000
data, are becoming concentrated in New England. Four of
the seven states most populated by baby boomers are in
New England, and these facts bode well for the success
of Zoe's business plan.
The
main advantage Zoe Foods has in this competitive market
is its ability to address real customer needs. "Baby
boomers are living longer and they want to stay healthy,"
states Zoe's founder and President, Tori Stuart.
The
key to Zoe's natural health foods is flaxseed and soy
granola, a high fiber combination containing protein,
omega-3 fatty acids, iron and natural tree estrogens.
These ingredients have been proven to, among other things,
promote a healthy heart. Retailers such as Whole Foods
Markets, Wild Oates, and Trader Joe's have noticed the
potential for this product, as it is carried in over 1,000
natural food stores nationally.
Investors
have also noticed the potential for a company with a viable
product and a well-defined customer base. Zoe Foods closed
on $1.15 million of funding from private investors in
its first round and is in the process of securing an additional
$2 million from Angel investors.
The
Natural Foods market is a $9.5 billion industry with 8%
growth. Couple that with the Functional Foods industry
($18 billion, 8% annual growth), and Zoe's long-term goal
to reach $48 million in sales by 2006 seems to be firmly
on track.
But
for the present Zoe Foods is enjoying continuous growth,
and as Stuart says, "We are running off of our own
steam." 
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Zoe
Foods
Founded:
Zoe Foods began shipping product in January of 2000. The company's
Founder and President, Tori Stuart, previously held a consulting
position, and founded Zoe as an outgrowth of her parents'
health and nutrition needs.
HQ:
49 Winchester Street
Newton, MA 02461
(617) 244-3635
info@zoefoods.com
Web
site:
www.zoefoods.com
Employees:
Zoe Foods currently has six full-time employees.
Funding:
In its first round of financing, Zoe Foods
was able to close on $1.15 million from a small group of investors.
Zoe Foods has now entered into its second round of financing
and is seeking to secure $2 million from Angels Investors.
Customers:
Zoe's products include granola and snack bars
made from flax and soy, and are distributed through 12 natural
food distributors. These products are found in over 1,000
natural food stores nationally, including Whole Foods Markets,
Wild Oats and Trader Joe's chains. Female baby-boomers are
the primary target market.
Revenue:
With a plan to generate $750,000 in sales for
2001, Zoe Foods had reached $620,000 by mid-September. The
company is currently at a run-rate of $1.3 million and has
been cash flow breakeven for the last three months while continuing
to grow. Zoe Food's plan projects profitability in 2002 and
sales of $48 million in 2006.
Competitive
Advantage:
Flaxseed and soy contain ingredients that provide
high fiber, protein, omega-3 fatty acids, iron and natural
plant estrogens. "We have first mover advantage, there
is not another product like this on the market…our product
addresses real customer needs. We provide natural food that
provides benefit." Tori Stuart
Management
Team:
Tori
Stuart
President and Founder
Jacqueline Blatt
Vice President
Dan Jacques
CFO
Janet Passani
Marketing Director
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