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One of the most frequently asked questions is how to scale a business into a national brand. The answer definitely requires more than one podcast episode, but today we have an opportunity to talk to a food company founder who has done it and hear the lessons he’s learned along the way.

Today on the Real Food Brands Podcast, host and Brand Strategist Katie Mleziva sits down with Scott Demers, co-founder of Scott & Jon’s premium frozen seafood meals. We learn how the brothers made the decision to leave their jobs to launch their business and start their journey to becoming a national brand.

Learning by Trial and Error

“We’ve been at this for a while,” Scott says, “it’s not an overnight success story.” Scott and his brother, Jon, were living together and decided to start a business. After thought and research they ended up deciding to go into food, and started with a recipe their grandmother would make at family gatherings. “I consider having zero money upfront a blessing because it forces you to do everything yourself,” Scott says. What followed was a lot of googling, and a lot of learning by trial and error.

Aligning with Your Core Values

With their grandmother’s recipe they first built a successful seasonal, indulgent frozen appetizer brand for the holidays. Being seasonal was challenging for a number of reasons: the income was obviously uneven throughout the year, you have to resell the same customers each season, and the food was pretty unhealthy. “Most importantly, it didn’t align with our core values, and when we realized that that’s when everything changed,” Scott says.

Shifting Gears to Relaunch

There was a lot of soul-searching that went into relaunching the company. “The food business is a really tough market. It’s a business everyone wants to be in because everybody buys food and it’s really hard to identify white space in the market,” Scott says, “can we create something new that doesn’t exist?” For Scott, if you’re a small startup you need to be doing something different from the rest of the market, instead of imitating what’s already out there.

When they looked at what they had, they knew that they had a network of brokers and buyers in the seafood category who had helped them get to where they were at the moment. “We noticed that frozen entrees at that time were really ticking up as a category,” Scott says, “so we just married the world we were in, seafood, with the frozen entree category and nobody was doing it at the time.” They had spent years developing their connections—or as Katie calls it, their “unfair advantage” versus the competition—so things took off when they identified that white space they knew they could serve.

The Story Behind Building a National Brand

Scott and Jon started locally with Hannaford’s, a supermarket chain in Maine. Scott cold-called and was able to set up a meeting with the frozen food buyer, but they didn’t even know how they were going to get their packaging made let alone everything else about their distribution. Still, they got a shot. As they started to grow, they used an outsourced salesforce to supercharge their outreach with low overhead. “At first,” Scott says, “you just try to get it anywhere you can. There’s really no strategy other than, will anyone buy this?”

Scott’s advice about brokers is that it’s really important early on to find the right partners. “As an early-stage company that’s trying to gain distribution, you probably don’t want to go to a huge broker that represents the biggest lines in the country. You want to find small, regional brokers that are more likely to work with you, get excited about your product, and grow with you,” he says.

In the episode we talk more about specific strategies Scott & Jon’s uses on the national level, including rebranding from The Cheating Gourmet to Scott & Jon’s earlier this year, shelf placement in the frozen seafood category rather than frozen meals, why their marketing that focuses on the in-store experience and how getting investors helped expand their capabilities on the backend operations.

Now, let’s go shake up shopping carts!

In This Episode:

• How Scott & Jon evolved their business and brand over time.
• Why having no capital can be a gift when you’re starting out.
• Scott and Jon’s simple litmus test for deciding to rebrand.
• How the brothers identified a white space they could occupy in the frozen food category.
• Why outsourcing their salesforce worked for them.
• The connections that helped them pivot their product.
• How to find the right brokers who will grow with you.
• Why Scott obsesses over the in-store experience.

Quotes:

“I consider having zero money upfront a blessing because it forces you to do everything yourself.” – @ScottandJons

“The food business is a really really tough market. It’s a business everyone wants to be in because everybody buys food and it’s really hard to identify white space in the market.” – @ScottandJons

“We believe in doing better, across the board, in everything we do.” – @ScottandJons

“As an early-stage company that’s trying to gain distribution, you probably don’t want to go to a huge broker that represents the biggest lines in the country. You want to find small, regional brokers that are more likely to work with you, get excited about your product, and grow with you.” – @ScottandJons

We love to try new foods. Some are great. Some don’t measure up and some become staples in our kitchen. See what you think.

Scott & Jon’s frozen shrimp pasta and rice bowls feature sustainably-sourced shrimp, cook in 5 minutes, and have less than 300 calories per serving. Though the serving sizes are small, each of the varieties was good and our tasters enjoyed them all. The flash-freeze technology used to preserve the raw shrimp and vegetables offers a fresh taste to each bowl.

Ten shrimp bowls are available: 5 rice bowls, 2 pasta bowls and 2 noodles bowls. We tasted eight varieties. Each microwave in 4 minutes plus 1 minute of standing. The bowls were hot and tasty and the shrimp was not overcooked.

Cilantro Lime Shrimp Rice Bowl (8 ounces) has 240 calories, 1 gram of fat, 17 grams of protein, 41 grams of carb (with 1 gram of added sugar and 2 grams of fiber), 680 milligrams of sodium and 242 milligrams of potassium. It has no gluten-containing ingredients.

Garlic Butter Shrimp Rice Bowl (8 ounces) has 220 calories, 1 gram of fat, 16 grams of protein, 38 grams of carb (with 1 gram of added sugar and 1 gram of fiber), 640 milligrams of sodium and 247 milligrams of potassium. It has no gluten-containing ingredients.

Parmesan Shrimp Rice Bowl (8 ounces) has 290 calories, 2 grams of fat, 19 grams of protein, 43 grams of carb (with no added sugar and 2 grams of fiber), 520 milligrams of sodium and 140 milligrams of potassium. It has no gluten-containing ingredients.

Shrimp Risotto Bowl (8 ounces) has 250 calories, 2 grams of fat, 19 grams of protein, 40 grams of carb (with no added sugar and 1 gram of fiber), 400 milligrams of sodium and 170 milligrams of potassium. It has no gluten-containing ingredients.

Shrimp Ramon Noodle Bowl (6 ounces) has 250 calories, 5 grams of fat, 15 grams of protein, 38 grams of carb (with 2 grams of added sugar and 2 grams of fiber), 880 milligrams of sodium and 285 milligrams of potassium. It is also available in a Spicyvariety.

Shrimp Alfredo Pasta Bowl (8 ounces) has 290 calories, 4 grams of fat, 19 grams of protein, 44 grams of carb (with no added sugar and 3 grams of fiber), 490 milligrams of sodium and 180 milligrams of potassium.

Shrimp Scampi Pasta Bowl (8 ounces) has 240 calories, 1.5 grams of fat, 19 grams of protein, 48 grams of carb (with 2 grams of added sugar and 3 grams of fiber), 690 milligrams of sodium and 205 milligrams of potassium.

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The Frozen Chosen: Sales of frozen entrees grew at more than two and a half times the pace of overall packaged food sales through the midway point of 2018.

Bowl meals have been huge news in meals and entrees in the past year and a half. The proliferation of bowls over this time period has touched almost every market sector.

…Scott & Jon’s (formerly Cheating Gourmet) offers sustainably-sourced shrimp in its new pasta and noodle bowls like Shrimp Alfredo and Spicy Ramen…..

Meal and entrée makers are bullish on bowls for a host of reasons, not the least of which is that more of us are living alone these days, fueling a need for single-serving products. According to the U.S. Census Bureau, there were 35.7 million single-person households in the U.S. in 2018, representing 28% of all households and up dramatically from 13% of households in 1960.

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Delish meals loaded with lean protein & key nutrients that you can enjoy in 5 mins! Scott & Jon’s Shrimp Bowls, in a variety of decadent flavors, will fill you up & won’t weigh you down. Find in the frozen seafood section.

Featured in July/August 2019 EatingWell® Magazine Issue.

This freezer-aisle ramen is so good, Lisa gave it the “I could eat this every day” stamp of approval! The broth is flavorful, the noodles are delicious, and the shrimp is just right. Try the regular ramen or (if you like things hot) the spicy variety! FYI, this line comes from the company formerly known as Cheating Gourmet — we love all their frozen bowls! Click to locate ‘em near you.

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A small frozen seafood meals company has quickly grown in two years to now have its product in major grocery stores across the United States.

The fast growth of Auburn, Maine, U.S.A.-based Scott & Jon’s (formerly Cheating Gourmet), which recently announced it is being sold in Target stores in addition to other major retail chains, can partially be attributed to a USD 1.3 million (EUR 1.2 million) investment from Arbel Growth Partners in May 2018.

The supplier, which utilizes Best Aquaculture Practice’s (BAP)-certified shrimp in its meals, also garnered a lot of buzz at Seafood Expo North America in Boston, Massachusetts, in March, where its Shrimp Ramen Noodle Bowl was a finalist in the “Best New Retail Product” at the expo’s Seafood Excellence Awards.

At SENA 2019, the supplier also rolled out four new pasta and noodle bowls: Shrimp Scampi Pasta, Shrimp Alfredo Pasta, Shrimp Ramen Noodle, and Spicy Shrimp Ramen Noodle. 

“Our Shrimp Scampi Pasta bowl has been enormously successful since its launch. We attribute some of that success to the fact that it’s so delicious, but also a very popular and familiar way to enjoy shrimp,” Scott Demers, co-founder and co-president, told SeafoodSource

“As two brothers growing up in the heart of Maine, we learned that the best way to feed a hunger for all that life has to offer was to make the most of land and sea. Our lives were fueled by seafood dishes,” he said.

The brothers saw a need in the market for “high-quality, heat-and-eat meals.” 

“We’re really proud of our products. They provide the taste you want – without the calories you don’t- all in under four microwave minutes,” Demers noted.

The supplier started with a variety of frozen shrimp and rice bowls in select retailers in 2017. Those products and the new pasta/noodle bowls are geared towards millennials and others seeking healthy, convenient foods, Demers said. 

“While we do hope to appeal to millennials, we aren’t exclusively focused on them. It’s really about any consumer looking for transparency, ease-of-use and great quality,” he said.

While Demers declined to list specific suppliers, he said the sustainable shrimp Scott & Jon’s uses is from “fully-recirculated,” Best Aquaculture Practices (BAP)-certified farms, which purify on-site water completely segregated from local waterways. 

“It yields shrimp with the fresh taste that reflects our goal of providing the healthiest seafood possible, for people and our planet,” he said. “We’re incredibly proud of the quality and integrity of the shrimp we use.”

Now, Scott & Jon’s seafood meals are available at Target, Costco, Safeway, Albertsons, Hannaford, and a number of other grocery chains across the country. The bowls retail for a suggested USD 4.99 (EUR 4.44) each.

The supplier has significantly increased staff and office space to accommodate its growth. It also recently hired a vice president of finance and a vice president of operations. 

Moreover, to meet the increased demand, Scott & Jon’s strategically qualified co-manufactures across the U.S. “that allow us to supply our customers with the highest quality products,” Demers said.

Scott & Jon’s is in the process of developing new products and its founders aim to diversity its seafood offerings. 

“We’re exploring a variety of white fishes and potentially salmon, but haven’t made any final decisions yet,” Demers said.

The founders are also brainstorming new flavors that play on favorite shrimp dishes, such as Shrimp Pad Thai, Demers added.

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Target, WinCo, Safeway, Albertsons…and this small Maine company is just getting started, the founders tell IntraFish.

A microwavable shrimp bowl is an unusual product to come out of the state of Maine, which is famously dominated by lobster. But according the owners of frozen seafood brand Scott & Jon’s, retailers and clubs stores can’t seem to get enough of it.

Since the company launched its value-added seafood bowls in 2017, the brand has grown its footprint from 3,200 US grocery and club stores to more than 8,000, Scott Demers, who started the company with his brother, Jon, in 2011, told IntraFish. Those retailers include Target, WinCo, Safeway, QFC, Sprouts and Albertsons, to name a few.

“We just wanted to make SKUs people want to eat,” Demers said of the choice to pursue shrimp. “The data shows an overwhelming majority of people in the United States buy and eat more shrimp than any other seafood.”

Scott & Jon’s sources from a variety of shrimp suppliers, he said, but largely from Indonesia.

“In our bowls we use raw shrimp,” he said, noting any protein that has to go through a reheating process loses taste and texture in the microwave. “We are very picky, the shrimp is all BAP (Best Aquaculture Practices)-certified and phosphate-free.”

Demers and his brother, who are both now in their early 30s, started the company under the moniker Cheating Gourmet, with little experience and few resources, he said. That company largely focused on seafood appetizers, such as its crab crostini as well as seafood stuffed mushrooms and lobster sliders prepared via a conventional oven or toaster oven.

Last year it raised $1.3 million (€1.1 million) from then newly established equity firm Arbel Growth Partners. Other convertible notes within the round brought the Maine-based company’s total raise to just over $2.1 million (€1.9 million).

“That investment has been used for working capital and for developing our team,” Demers said.

Maine salmon inside?

The brothers are currently testing out new frozen, microwavable options beyond shrimp, Demers said.

“We’ve got 10 really good shrimp SKUs, but we want to develop the line and give more variety,” he said.

Microwavable salmon bowls seem to be the next horizon for the company, though Demers said he could not give too much detail because the product is in development.

“The R&D comes directly from me and Jon. We split duties of running our company down the middle. We’ve always done development ourselves,” he said.

With companies such as Nordic Aquafarms and Whole Oceans set to open massive land-based salmon farms in Maine, Demers could potentially source salmon locally.

“It’s still early in the whole process, but we remain open to sourcing the seafood that delivers the best product for our customers,” he said of that idea.

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Cheating Gourmet, makers of premium frozen seafood products, announced a rebrand to Scott & Jon’s®. Now named after co-founders and brothers, Scott and Jon Demers, the rebrand is accompanied by a fresh look and innovative new line of pasta and noodle bowls. Like the brand’s flagship frozen shrimp and rice bowls- the new pasta and noodle bowls feature sustainably-sourced shrimp and are all under 300 calories.

“Our new pasta and noodle bowls are shockingly delicious,” said co-founder Scott Demers, “We use only the best ingredients- fresh vegetables, protein-rich shrimp and the perfect blend of spices- to create a meal that is decadent, comforting and most importantly, healthy.”

Guided by the mantra: Everyday Seafood Made Easy, Cheating Gourmet was founded by the Demers brothers, who recognized a lack of high-quality, on-the-go seafood options. With convenience in mind, they introduced a popular line of microwavable shrimp and rice bowls. Now available in the frozen seafood section of retailers nationwide, the rebrand is intended to reinforce Scott and Jon’s commitment to quality and transparency.

Scott & Jon’s® Shrimp Rice Bowls are available in seven flavors including: Garlic Butter, Creamy Parmesan, Coconut, Jambalaya, Shrimp Risotto, Sweet Chipotle and Cilantro Lime. Shrimp Noodle Bowls are available in Ramen and Spicy Ramen. Shrimp Pasta Bowls are available in Shrimp Alfredo and Shrimp Scampi.

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Cheating Gourmet, the Auburn-based makers of premium frozen seafood products, announced Thursday a rebranding to Scott & Jon’s, the names of its co-founders Scott and Jon Demers.

The brothers, who founded the company in 2011, said the rebranding is accompanied by a fresh look and innovative new line of pasta and noodle bowls. Like the brand’s flagship frozen shrimp and rice bowls, the new pasta and noodle bowls feature sustainably sourced shrimp and are all under 300 calories.

The rebranding follows an influx of $800,000 in capital from the private equity firm Arbel Growth Partners, according to a March 13 report by SeafoodSource Executive Editor Cliff White.

Arbel Growth Partners, based in Milwaukee, was established in February 2018 by a group of investors that includes Carl E. Lee, the former president and CEO of Snyder’s-Lance Inc., maker of snack foods Snyder’s of Hanover, Cape Cod Potato Chips, Late July and Pop Secret. The new private equity firm focuses on food startups.

Arbel was a key investor in Cheating Gourmet’s second-quarter 2018 investment capital solicitation that raised $2.17 million, Bangor Daily News reported last July, citing a newly released MoneyTree Report by PricewaterhouseCoopers LLP and CB Insights.

Nosh reported that Lee, who serves as Arbel Growth Partner’s CEO, told the online trade publication that he was interested in investing in the Auburn seafood company “because of the strong leadership of the Demers brothers, as well as the value of their products for consumers and retailers alike.”

“There’s an opportunity here to build a national brand,” Lee told Nosh. “The seafood category needed some high quality options and this is exactly what this is… I think we are bringing value to the consumers, value to the retailers, and will help grow an already established category.”

Scott Demers said at that time the influx of capital would be used to scale up the company’s growth. That included four new shrimp bowl flavors — jambalaya, coconut, parmesan, and risotto — and a tripling of distribution.

Fast-growing company

“Rebranding with our own names was our way of connecting with our customers, family-to-family,” Jon Demers said in a news release. “We are deeply committed to producing quality products that support the needs of today’s busy family. There’s no better way to demonstrate that commitment than by having our names on every package.”

In 2016, Mainebiz honored the Demers brothers’ company as a “fastest-growing company” in the small business category, reporting that the company’s revenue grew 198.19% over two years to $1.96 million in 2015, up from $1.03 million in 2014 and $655,862 in 2013.

Over that span the company went from two to nine employees and planned to add another four people in 2017, Mainebiz reported in December 2016.

The two brothers started the company in 2011 with their own money and made gourmet appetizers like lobster crostini and bacon-wrapped scallops in Scott’s kitchen, taste-testing them among friends and family.

Heading into 2017, the brothers told Mainebiz their products were in 3,200 supermarkets and club stores, up from 900 stores in 2015 in 500 in 2013. They expected to be in 5,000 to 6,000 U.S. stores in 2017.

Scott & Jon’s shrimp rice bowls are now available in seven flavors, including garlic butter, creamy parmesan, coconut, jambalaya, shrimp risotto, sweet chipotle and cilantro lime. Shrimp noodle bowls are available in ramen and spicy ramen. Shrimp pasta bowls are available in shrimp alfredo and shrimp scampi.

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Cheating Gourmet, makers of premium frozen seafood products, announced a rebrand to Scott & Jon’s, Auburn, Maine.

Now named after co-founders and brothers, Scott and Jon Demers, the rebrand is accompanied by a fresh look and new line of pasta and noodle bowls, featuring sustainably-sourced shrimp and under 300 calories.

“Our new pasta and noodle bowls are shockingly delicious,” says Scott Demers. “We use only the best ingredients—fresh vegetables, protein-rich shrimp and the perfect blend of spices—to create a meal that is decadent, comforting and most importantly, healthy.”

Now available in the frozen seafood section of retailers nationwide, the rebrand is intended to reinforce Scott and Jon’s commitment to quality and transparency.

“Rebranding with our own names was our way of connecting with our customers, family-to-family,” says Jon Demers. “We are deeply committed to producing quality products that support the needs of today’s busy family. There’s no better way to demonstrate that commitment than by having our names on every package.”

Scott & Jon’s Shrimp Rice Bowls come in Garlic Butter, Creamy Parmesan, Coconut, Jambalaya, Shrimp Risotto, Sweet Chipotle and Cilantro Lime, while the Shrimp Noodle Bowls are available in Ramen and Spicy Ramen and Shrimp Pasta Bowls come in Shrimp Alfredo and Shrimp Scampi.

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