The Startup CPG Podcast

Kenny Hausmann
You know, D, two, C, and digitally native brands start to come to market. We want to, you know, we want them to think of fresh time as a partner they can partner with to kind of bring that brand to retail. And I think there's a lot of value there. But I also think of it a step further kind of second, you know, point to that is how do we at fresh time, really authentically partner with our brands to align with some of their missions right, beyond just the products we sell, whether it be regenerative, agriculture, sustainability, how do we bring that mission to life authentically and intentionally in our stores? I don't know.

Kenny Hausmann
00:44
I have answer for you today on how we can do that, but it's something, as we think about the evolution of our business, just feel like that is our responsibility to do that in a thoughtful way. And the more we can support the missions together, the better off we're going to be and as a retail ecosystem as a whole.

Daniel Scharff
01:02
Let's get ready to podcast. Hello, CPG ers. I am your host, Daniel Scharf, founder of startup CPG. And I am so excited about today's episode. It is just another one in my long line of attempts to become best friends with the whole fresh time team since I love them so much. You are going to love the episode. Today with Kenny Houseman, we go through his career as a category manager across so many interesting different retailers and then dig into how he manages the natural living set at fresh time, including vitamins, supplements, health, beauty, a couple other things. And I think, you know, one thing I just really want you to get from the episode is how thoughtful fresh time is about how they partner with brands. It is super refreshing. Enjoy. Hello, everybody. Today we are joined by Kenny Hausmann.

Daniel Scharff
01:49
He is a super dynamic leader in the grocery industry. He's got an incredible track record of over 18 years. That's right. His CPG career is old enough to vote. Kenny started in stores at Tops market. He climbed his way up to category manager, and then he did stints at save a lot fresh time market, the epic hawaiian grocer foodland. And now he's back home in Chicago at fresh time. Kenny is a super innovative guy. He's got a really strong passion for health and wellness. It fuels his mission to make natural foods and living accessible to everybody, which aligns with fresh times commitment to offering fresh, healthy fare at unbeatable values. Please join me, everybody, in welcoming Kenneth P. Houseman. Yeah, Kenny. Good to have you, man. I'm really excited and actually, I got to see you pretty recently.

Daniel Scharff
02:43
A few months now back at Expo. I think my favorite part was getting to hang out with you, actually, at the CPG Shabbat. The first ever 150 person CpG Shabbat. Did you have a good time?

Kenny Hausmann
02:55
I sure did, Daniel. Well, first, you know, thank you for the very generous introduction. I'm super excited to be with you here today. I've been looking forward to this. But yeah, the CPG Shabbat was great. I mean, obviously expo was really great to reconnect with folks, reconnect with the industry. But what was so special about the Shabbat was it really just took us out of like the hustle and bustle of Expo west and really regrounded us all to just be present and talk with each other as humans. And it was just such an amazing event. And I'm. I'm looking forward to many more CPG Shabbats.

Daniel Scharff
03:28
Yes. Oh, my God, it was so fun. I had an awesome team working on it with me. It was me and tal from Fun Sesame's Sarah Nathan, who's launching her brand newish, and Meredith Cochran. It was just such a cool crew. Her brand teethos that she's launched recently, the last year tea based on alk wine. So, man, it was a really cool crew. And I think, yeah, just for me, it was such a crazy week, like startup CBG. We did like 20 activations, whatever. And then I just was like, if I can get to Friday night, it's going to be so good. And I just, yeah, like completely shut down. I remember giving the intro speech there where I was just like, I'm going to be honest, my brain isn't working. This is the first time.

Daniel Scharff
04:09
I'm just going to read what I need to say because I cannot remember it. I'm so happy to be here. It was very beautiful. Everyone just kind of like collapsed into each other in the community. Okay, cool. So, Kenny, I've been really excited to get you on the podcast for a while. I actually met you for the first time because I was pitching you when I was the beverage CEO and you were sitting pretty in Hawaii at Foodland. And because were outdoor lifestyle, like surfing, kind of focused brand, I was like, this is the place we need to be. So it was really cool to get to know you through that.

Daniel Scharff
04:44
And then obviously we've stayed in touch, but for anyone who doesn't know you already, I'd love, can you just take us through this epic career that you've had that also gave you the chance to go and hang out in Hawaii for a couple years before getting your winter jacket back out for Chicago. So let's start at the beginning.

Kenny Hausmann
05:01
Yeah, absolutely. Danielle. I've had the pleasure to be in this industry just under 20 years, and my story within my grocery world is not atypical the most. I started in my neighborhood grocer in Buffalo, New York called Tops Markets was really just a part time job through the latter years of high school and through college pushing carts. You know, I worked my way up through their operations model through college undergrad and discovered the world of sales, marketing, merchandising, category management and procurement through a way of an internship. And I was hooked. I figured out what I wanted to be and what I wanted to do. I wanted to be in this wonderful industry, so had the opportunity to work my way up through their category management model. I was classically trained in the world of category management, if you will.

Kenny Hausmann
05:45
Worked a variety of roles and did the whole center store loop on that. Basically as a category manager. Eventually worked my way up to there and the last role I had then was a little bit unique. I got to manage natural and organic and specialty foods all on nosh, wall to wall. And for those who don't know, most conventional retailers that are looking to get in the notch, that's the way they approach it. Having a team really kind of foster that business, build out the trends, and work cross functionally with the other category teams to bring the business forward. And that really allowed me rather to pursue both my passions, grocery retail and health and wellness.

Kenny Hausmann
06:19
And for those who don't know me, my personal mission is pretty simple, both in business and in life in general, is I feel it's our responsibility as retailers, as brands, manufacturers alike within this business to really make access to healthy, nutritious foods to the communities in which we serve. And that's really just what served me in my career. But regardless, had a pretty long standing career with tops just on that tops point.

Daniel Scharff
06:46
Just out of curiosity, had they had the kind of nosh natural, organic set before you stepped into it? Had it been around for a long time? Was that influenced by Whole Foods, why they launched it? Or what do you think usually gets maybe more conventional retailers to come around and start actually dedicating space for that?

Kenny Hausmann
07:05
Yeah, thats a real compelling question, Daniel. They had a really solid foundation when I stepped in. We shuffled the decks around at the office, which is something typically retailers do. They give folks different experiences and were really looking to take it to the next level. So were going from that store within a store type model, which is what youve probably historically seen in conventional retail, to integrate it and not just integrate the aisle, integrate the whole thought process as it relates to the business, because some folks would like to think Nosh is, you know, a category in and of itself. In some ways it is, but it's really a trend that encompasses every category of the store.

Kenny Hausmann
07:40
And to be really authentic and intentional about the way you merchandise it, you got to make sure the thought process is felt throughout all levels of the organization. And that was really what I was set forward to do and why retailers do it, because trend is there, right? Every customer is trying to meet the customer where they're at and capitalize on trend. What folks don't realize is Buffalo is actually a very competitive market. There's a lot of competition out there, though, as traditional as it is, when you have a retailer like Wegmans in your backyard, it really forces you to think about the business in a different way. So that's really, you know, the impotence of the role. And, you know, every retailer's a little bit different. But again, you know, when you're riding the waves of trend, it's there.

Daniel Scharff
08:18
Yeah, it's pretty interesting just to hear about that because, you know, since I've been in CPG, mainly I've been at West coast focused brands. And so I'm so familiar with the retailers out here, and they are largely pretty focused on that set. But when I was at the UNFI show in, what's it called? The New York one. Oh, Mohegan sun. That's right. The cool name one. Yeah, Mohegan sun. Then I did some store visits there, and I can't remember if it was like big y or Shoprite or something that was at. But, yeah, just kind of like, seeing what their natural and organic sets look like. It's a little weird. It's like one of them was in the fresh, like, in the produce section, and then it was just like a couple shells.

Daniel Scharff
08:56
I'm like, oh, God, I wish for, I wouldn't wish on my worst enemy to get buried in this, like, little random set in the grocery store. Like, it's not going to turn. And then I think the another one, it was like they had kind of the natural and organics beverage set that was just, like, often a weird part of the story, like, who makes it over here? And do they know where they are? So, like, you know, in those days, was it kind of like that, or do you think it was integrated well where, like, people kind of knew where to find that stuff, the right consumers would find the right products.

Kenny Hausmann
09:25
Yeah, I would say that was my job. Right. That was my job to kind of bring that forward and get consistency amongst each and every store. Because, again, it's not just enough to have a couple of sections scattered throughout the store. You need to, again, when I say integrate the thought process, that's merchandising, how we approach it from a category management perspective. Although it's important to have that singular team that's focused on it, because obviously, a category manager that's in the conventional space, they're looking at volume. Right. The success of a natural and organic product within conventional retail, well, has different benchmarks. So you have to balance that velocity with having the relevant product mix to compete within your trade areas and quite honestly, capture a different customer. Right.

Kenny Hausmann
10:06
If you continue to do the same things, you're going to probably get the same result at best. So you have to continuously challenge yourself to think differently. But, yeah, in that time, which was, gosh, almost ten years ago at that point, that's what were dealing with then. It was an interesting approach, too, because you're almost like a vendor selling to other category managers. Because my philosophy is you want to bring people along and you really include them in the thought process and help them. You know, the mainline category manager in this case, be part of the decision making. Right. Because at the end of the day, yeah, the natural team, they would own the p and L, but at the same time, we want it to be successful because that's what our customers need and that's what they want, and that's our responsibility.

Daniel Scharff
10:47
Okay. That makes a lot of sense. So sorry to interrupt the Kenny journey, but then we. So you did basically almost 15 years at Topps market. Right. And then tell me then, what took you to Missouri?

Kenny Hausmann
11:01
Just wanted to experience new things, quite frankly. And it was. It was a jumping off point for me. I will tell you that was not a good fit for me. But I'll tell you this. You learn a lot in those situations, who you want to be, but more importantly, who you don't want to be. And quite honestly, I truly believe that things happen for a reason. And that brought me to Chicago and brought me to fresh time for the first stint. And more importantly, it brought me to my now partner in life, my wife Kathy. And we celebrated our marriage about a year and a half ago. So I'm also grateful for that experience. But yes, I was at fresh time back in about 2018. It was an interesting time for fresh time, too. They just built out all the stores.

Kenny Hausmann
11:37
So they were kind of looking to take that next step and build process and infrastructure. And it was just an environment that I really thrived in. Such great people, such a great organization, and had a great opportunity to just put my head down and help in any way that I could. So I had a variety of different roles with them. I felt like my role probably changed every couple months, and eventually I was actually managing our center store grocery team from a category management perspective, and obviously great relationships that I built there, and I'm back there today. But in between that, I like to think that I'm a student of the world.

Kenny Hausmann
12:08
So when the opportunity to experience Hawaii and work for an amazing company like Foodland came across my desk, it was just something I had, you know, I had to capitalize on and had to experience.

Daniel Scharff
12:19
Yeah. And I'm just curious about how the buyer journey works because these are incredible experiences that you got to have and, yeah, I mean, I never regret a stop along the way. You always learn a lot from it and, you know, one way or the other. How does it work when you're getting these opportunities? Is it like, okay, you're applying to stuff online or, like, you're friends with a bunch of buyers and they are hitting you up when there's a role that comes open because they want to get you on their team? Like, you know, when you went to fresh time, for example, in 2019 to manage bulk foods, like, how did you know, how are you getting those kind of roles? Jeff?

Kenny Hausmann
12:53
Yeah, and it's a varying degree. Like, in that case, I just applied for an open role because, you know, fresh time, I first walked one when I was living in Missouri. And I'm like, I want to be a part of this. This is exactly where I want to be, you know, and it was just kind of almost like a cold call sort of speak. I applied for actually a natural living role, but they happen to have some grocery rolls open, and the rest is history. It was simple as that. As I've grown in business and grown out my network, you definitely get reach out and outreach and things like that. It's a big business, small business, like I say, and everyone knows each other, which is great about this industry.

Kenny Hausmann
13:27
You never know what you're going to run into, whether it's at a trade show or just in passing. People flip desks, but the relationships remain intact, which is just so amazing.

Daniel Scharff
13:38
It's true. For better or worse, it's a very small industry, usually for better, because your friends, like, they're going to be your friends for a long career here, right? Like, you know, Kenny, I hope we'll be friends when we're both still in this industry in 1020 years and, you know, find great ways to partner together. But it also can work the bad way where I've like, been selling into a buyer who's at one store and they turn you down and then they go to another retailer and work there and then turn you down there also, like, damn it, you keep running into the same person. So good to make nice with everybody. I know that's true. So in that first stint at fresh time, you started as the bulk category manager. What is it like to manage the category for bulk foods?

Daniel Scharff
14:20
I don't think I ever talked to someone who does that.

Kenny Hausmann
14:22
Yeah, I've done it actually quite a bit in my career. So if folks who don't know actually bulk foods really kind of originated at the west coast, but actually was really brought forward in the northeast as well. So when the retailers with previously tops really had a very strong bulk foods business, heavily focused on confections and those sort of things.

Daniel Scharff
14:41
When you say bulk foods, I'm thinking like the dispensers you turn and fill up. Maybe you grab a sample or two when you're a kid in the store and eat it when no one's watching. But is it mainly that stuff or what's the set?

Kenny Hausmann
14:52
It's definitely gotten broader. So scoop bins, what they call gravity feed bins, even pre packed things, especially coming off the heels of the pandemic, that's really changed the landscape of retail in general, but most certainly bulk foods. So it really is all those pieces.

Daniel Scharff
15:07
Yeah.

Kenny Hausmann
15:07
So predominantly the spirit of bulk is you buy a little, you buy a lot. Sustainability, there's savings involved. Obviously, when we talk about sustainability, there's less packaging, less waste, that sort of thing. But it's a unique category to buy for because you get touch a lot of different subcategories. And the way you buy is different. It's very commodity based. It's a cost to serve business. You're really negotiating the best cost possible and really figuring out creative ways to really exude that value to the consumer.

Daniel Scharff
15:34
Yeah, it's an interesting category. And, you know, a lot of the corporate headquarters that I talk to now are very interested in bulk food specifically because they're all trying to get away from single use plastic, which is excellent, and figuring out how to, yeah, go deeper in bulk and just things that can be way more sustainable, especially just given the impact that a lot of them have. With how many people eat snacks provided by the office and all of that stuff. But it also was the first thing to go during COVID Right. I remember being in my company's office, like, the day before we shut down, and I was just looking at the bulk foods, watching people still eating out of it with what we knew was happening at the time. I'm like, this is crazy. Like, everyone stopped touching that stuff. I think.

Daniel Scharff
16:13
Fortunately, it didn't end badly for anyone. But, yeah, if we go back into a germ crazy environment, for sure, that's going to be the first thing that gets shut down. Okay, great. So now, so you're back at fresh time at this point, and then. Yeah. How did you end up going to Foodland in beautiful Hawaii?

Kenny Hausmann
16:31
Yeah, like I mentioned, it was an opportunity that came up through, you know, Colt, call recruiter. You know, they reached out to me on a couple of different occasions, quite honestly. And it was one of those situations, too, where their actually HR director called me directly and said, hey, can we just have a conversation? And we had a conversation and two months later, I was on my way.

Daniel Scharff
16:50
So sorry to interrupt you, but if I am the recruiter for Foodland Hawaii, for sure, my filter on LinkedIn is set for the coldest parts of the us buyers in those locations. Like, hey, wouldn't you like to check out Hawaii? So, sounds like that was a smart recruiter that found you.

Kenny Hausmann
17:06
Yeah. And they're always looking for different perspectives, too. They want to continue. It's a different market in Hawaii. It's an amazing market. There's a lot I learned out there. I mean, of the two years I had the opportunity to spend out there was such a learning experience, professionally and as well as personally. But at the same time, you know, they always are looking to get different perspectives to help continue to grow their business.

Daniel Scharff
17:30
Yeah. So what is it like? Because. So Foodland is, I think, around 30 stores in Hawaii, right? I mean, it's the premier grocer in Hawaii, right? Like, you're still going to have some of the mass chains if you've got target, you've got Walmart and, you know, some more boutique independent stores. But, like, Foodland is the go to. Right. For everybody. So what is it like to then be a category manager for a chain like that? You know, 30 stores, very kind of tightly focused. Probably a lot of questions around supply chain, I guess, that you have to spend your time on, but, yeah, what are some of those learnings professional? And throw in some personal ones if you want.

Kenny Hausmann
18:03
Yeah, absolutely. Learning all around right. I mean, it's a different model. You know, a supply chain is a big deal. You know, we spent a lot of time on that because of logistics and purchasing from the mainland. I'll put it in perspective. So, you know, that primary partner for natural and specialty foods, for example, is unify. If the store ordered on a Monday, they would not receive that order until the following Friday. Not that Friday, the Friday after that. Ten business days. And that's if the store was on Oahu. So essentially west coast on a boat, on a barge to Oahu. Wahoo. To a freight forwarder on another barge to the outer islands.

Daniel Scharff
18:39
So the outer islands, because the inventory is sitting at unified Marino Valley in California, so they need to order it. So it gets to the once a week shipment that happens probably that Friday, and then has to make its way to everything else. Right. Once it gets to the island.

Kenny Hausmann
18:53
That's exactly correct. And then for the neighboring islands, you know, Maui, Kauai, and as well as the big island, both sides, there could be even further delays. So you had to get very well versed in logistics. And it gives you a high appreciation for product availability, because if you think about it right, if an order doesn't get processed right, or if there's a shortage or a cut, that stores out of product for almost three and a half, almost four weeks, essentially, right. Two weeks to get their load, two weeks after that, at best. So product availability was such a huge focus, and of course, sourcing local when we could was also a big deal. And locals just inherit to what they do on the islands.

Daniel Scharff
19:34
It's pretty interesting to hear you talk about it that way, because I remember when I was pitching you for maybe the first time of any retailer I'd pitched at that point, the immediate feedback from you had nothing to do with the product. It was, you need a DSD. You need a local DSD. And I thought, oh, okay, yeah, let's do it. And so then I went on probably a six month wild goose chase of trying to find a local DSD that would work with us, of just like, okay, like, googling them and asking around and then just like, hitting one after another that were, I don't know, not really so interested to work with an up and comer brand, probably. They're getting so many requests from other brands just like me.

Daniel Scharff
20:12
I was really fortunate then eventually to get connected with pint size, and then they were willing to work with us. They were really excited about the brand. That was awesome. We're also going to have Allison Taylor from Pint size on a future episode because I really want to explore the topic of DSD's so everyone can understand what that's like. But then that. Then it was like, okay, good. So now I understand. It's like really like, the product is not going to be stocked very well unless we do that. So that makes a lot of sense in retrospect. And then any you mentioned, like, personal learnings, anything? I mean, you know, from getting to spend time there with your wife and your now wife. Any other personal experiences?

Kenny Hausmann
20:48
Yeah, I mean, in regards to my wife, it brought us closer together, Daniel. I mean, there was a period of time where I'm living by myself, you know, for about a three and a half, four month period. So my wife is actually an adjunct professor, so she had school to finish out here in Chicago before we moved. So, you know, I'm in this empty apartment, and we really had to think of alternative ways to really interact with each other and continue to build that relationship. And we did. You know, distance can be definitely hard, and it still is, but it brought us closer together. But what I would say about Hawaii, it's just such an amazing place. It's near and dear to my heart, and, you know, the vibe is real. And, you know, that sounds somewhat cliche.

Kenny Hausmann
21:23
And the vibe, it goes beyond just the environment. Right. It's that. But it's the people and the culture, it's just so diverse. And just the interactions you have with locals and that sort of thing, and just the connection between the environment and family and life, there's just nothing like it. And I encourage anyone to go visit the islands, obviously be respectful and be humble and come with a, you know, with some humility, of course, but it's a really amazing place. And it was just such an amazing opportunity to be able to live there for two years.

Daniel Scharff
21:58
That's incredible. I can't believe I haven't been, like, now that I'm living in LA, too, I definitely need to take advantage and get down there. Maybe we'll do a startup CPG retreat down in Hawaii. That would be incredible to experience it. I also just remembered, as you were talking, two funny kind of anecdotes for when were getting started working with you. The first was, I remember were working with a broker, and, like, I actually managed to connect with you for the first time on the Expo west platform, which, like, not a lot of people knew this, but you could go into their virtual platform, which is now defunct, and actually send messages to buyers on there.

Daniel Scharff
22:32
And I figured out early on like, if you do it, they get an individual email with your message, which if you don't know a lot of buyers and you don't know their emails, is a pretty good way to get a first contact. And I think you were like the only person who ever actually responded off that. And so I always remember that just because you were kind enough to take the time and send a message, like, yeah, very happy to talk to you guys. And then the second anecdote was, once we got to, I think, to point where we could send you in samples, our broker was like, you need to send all of it to me.

Daniel Scharff
23:00
And then I will package it up and send to Kenny because I think where he lives, it's like he's getting tons of samples and we need to really carefully manage that for him. And now that I get so many samples for our shelfie submissions, I really appreciate that because you're getting 24 packs of beverages. It's just so much stuff. And I'm lucky to live in a apartment building where they can take all the mail and I can go get later. But that's probably like, you may not have that infrastructure in Hawaii. So was that probably, that was a bit of a feat for you, managing all the samples?

Kenny Hausmann
23:30
Oh, for sure. And I appreciate the comment, Daniel. I pride myself on being responsive to the vendors, quite honestly. And that's just something, I think, that differentiates not just myself in this space, but also fresh time in general. That's how we pride right away. But we want to be that connection to our brands one way or another in terms of samples. Yeah, it's definitely managing logistics. I too, actually lived in a pretty nice building where they did have some package flow, but I had a, you know, a 500 square foot apartment. So, you know, we have to be mindful of the space. My fridge was, it was small, but also I'm thinking about the logistics and the cost. Right. Of samples.

Kenny Hausmann
24:06
I mean, I know everyone wants to send their samples out, but, you know, because I would personally not necessarily accept samples, it wasn't because I didn't like the product. I just want to make sure it's something I'm really interested in or my team's really interested in because of the cost associated of getting the product from west coast in your example, to Hawaii. So that's.

Daniel Scharff
24:25
I really appreciate that comment because it makes me crazy when you're submitting for something and then the buyer is like, okay, great. Hey, send me samples. I need four cases to these four different people in these different places in two days. You're like, I don't know if they know what that means for a brand. You're like, whoa, I have to overnight beverage. Each one of these shipments is going to cost me like $200 to do that. This is crazy. And like, you know, if you're newer or whatever, you may not have a confidence just to really push, like, hey, do you really need it then? And do you really need that fast?

Daniel Scharff
24:57
Because, you know, you may feel uncomfortable asking that, but I find whether, you know, like trade shows and some buyers or distributors just kind of throw those comments out there or ask for more product than they need without the consideration. So I can tell with you it really does come from a place of caring for the brands and not wanting them to like, you know, waste money and time and then, you know, just obviously the energy that goes into getting the product there. So I really appreciate hearing you say that. So then you were able to get back to Chicago and I know you were pretty excited about that, to move back with your wife, back to the mothership. And yes, as everybody probably knows, I love the fresh time stores and the fresh time team.

Daniel Scharff
25:36
This is the third fresh time podcast that we're doing because we got Jonathan Lawrence, the VP for center store and then the food service team Liz and ally on. So it's been really fun to just kind of get most of the circuit and, you know, any other, many other team members from fresh time, let's just go for the cycle. So really excited about that. And then I think, can you just tell me a little bit more about what your role is now than at freshtime? Like, what is the natural living set? We touched on it earlier, like, you know, it is almost like a, it incorporates all the other sets in the stores, but yeah. What is your view of the role that natural living plays in the store?

Kenny Hausmann
26:11
Yeah, it's a little bit different at fresh times. So I lead on what we call our natural living team, as you mentioned. So that's vitamins, supplements, body care, non foods. And we recently picked up general merchandise a couple of years ago and it's a really big piece of, you know, in our space. So when we think about our model, right, we're a natural, organic, forward food store, but we're also sell a multitude of wellness products and we consider what we call natural living a banner department for the organization, which means it's a key point of differentiation. So it's a space that we really hang our hat on when we think about our mission generally of connecting, inspiring towards a healthier future and meeting the customer where theyre at were really at the foundation of that when we think about overall wellness.

Kenny Hausmann
26:57
So thats the space that we play in. Its been really exciting for me, Daniel, because ive had some exposure to it in some capacities. I managed Nash as well at Foodland, but to be really involved in this space is pretty new for me in totality. And I work with such a great team, a dynamic team that are subject matter experts. So really my role is to lead the team and really learn from them, but also set them up the infrastructure to be successful and remove those roadblocks for them.

Daniel Scharff
27:28
And so you mentioned a bunch of different things that you're responsible for. Now, can you just for anybody who's not so familiar with these departments inside of your category, can you maybe give a few examples or like, even if you could list the top kind of seller, you know, items or types of items in each of those ones?

Kenny Hausmann
27:46
Yeah, absolutely, Danielle. So when we talk about vitamins and supplements, right, it's like traditional letter vitamins, and it could go across, you know, hydration and protein powder, things like mushrooms and CPD. From a body care standpoint, that's pretty broad as well. It's personal care, it's shampoos, it's conditioners, it's deodorants, you know, again, all natural Ford. And then on the non food side, it's like baby pet, household goods, paper, and then general merchandise is seasonal goods. It could be household goods, it could be toys, it could be, you know, even the reusable bags we have in our front ends, gift cards. So we have a pretty broad scope.

Daniel Scharff
28:24
Wow. Okay. This is super interesting to me. I did an interview with, I don't know anything about health and beauty. And, like, you know, we get samples. And fortunately, there are people in my team who do understand it. Like, I get five different kinds of moisturizer. I'm like, I don't know. And so I had the thrive market health and beauty lead Christine McNerney on. And so I asked her that. I'm like, how do you make decisions about, like, I know if I try food or beverage, like, does it taste good? Does it not? I kind of know how to evaluate that. Like, how do you make decisions, though, about those kind of products for you?

Daniel Scharff
28:56
I mean, I'm sure you've learned a ton along the way, but, like, yeah, how much of it is based on, she mentioned especially actually, the importance of the smell of the product, which didn't occur to me, but, yeah, like, that seems really important. So how are you making some of those kinds of decisions, how much of it for you is going to be like, looking at the packaging, the ingredients, like, you know, she also mentioned reviews as a really important indicator because, you know, you're like, at least with a beauty product like you, Kenny, are not going to have the time to change your beauty care routine. What keeps your skin so glistening, Kenny? And, you know, incorporate everything and try it out for a month and then make a decision. Right.

Daniel Scharff
29:34
Like a lot of it's going to have to be based off other factors like data or whatever you can perceive about it. So. Yeah. How do you make those decisions about all of these kind of, especially the non food, non tasty kind of products?

Kenny Hausmann
29:45
Yeah, that's an interesting question. Well, first, thank you for the compliment on my complexion. I have my face and self care facial routine for sure, since coming on this desk. It happened for quite some time. But when you think about the lifecycle of the consumer as they're kind of transitioning to, we'll call it more of a natural lifestyle, typically, our space is kind of the last place they go. Right? I mean, it's food first, maybe. Well, more so fresh first. Right. And produce and then maybe they get on the food side and then it goes into kind of the non food space and then, you know, the wellness space and just general trend, you know, folks are always looking for alternative ways to keep themselves healthy through nutrition.

Kenny Hausmann
30:22
But natural supplementation and overall wellness, you know, body and mind has become a pretty big deal. And as well as what they're putting on their bodies. Right. And self care and clean beauty is definitely a trend that we're seeing just overarching across the industry. Even conventional players are really being thoughtful on their ingredient decks and how their sustainability model works. But getting straight to sourcing specifically for body care, it's all those things. It's scent, it's making sure it kind of fits with our brand promise and brand message. And that just goes with anything that we source and curate at fresh time. We pride ourselves on how our category managers do curate. We like to take the questioning out of the consumer's thought process when they shop their stores.

Kenny Hausmann
31:02
We want to build that trust within them that we've done our due diligence and what we're selling our products, one we would use ourselves and that are going to be good for their body on both inside and out. So scent, ingredients, packaging, sustainability, all that goes into play. And the category review process is oh so important because that allows all of us as category managers to really take the time to review our business holistically. So there is a method to the madness with reviews, right? Know we want to make sure we do provide the Runway of time for our cm team to review their categories. Because assortment, yeah, it's the foundation of the business, but it's not the only component of the business. You talk about pricing, merchandising, vendor relations, sourcing, you know, what's next for the category?

Kenny Hausmann
31:48
Are we missing anything in terms of trend? How do I want to position this? You know, all that goes into play, of course, depending on the scope of review, you know, when a category review comes to the table. And of course execution's a big deal too. I mean, it does take time. The larger the retailer chain, the more time you need in coordinating resources and all those good things.

Daniel Scharff
32:07
So what is your level of confidence when you're selecting products to launch within natural living versus food and beverage categories? Do you feel like you get it right just as much more or less, you know, based off your experience and some of these things we're talking about?

Kenny Hausmann
32:23
Yeah, I'm confident because my team of category managers is deeply involved in that process because in my role today, you know, my role, am I involved? Absolutely. But at the same time they're the ones that are making the decisions. My job is to empower my merchants to be making those decisions and they have a proven track record to do so. Like I mentioned, they're SME's subject matter experts. They know their categories inside and out. And I feel the utmost confidence when they come and present a line review or they're bringing in new products that it's going to work within our mix. And sometimes you got to feel comfortably uncomfortable, right. Because we can continue to do the same things, but it's really important to kind of balance that art and the science, right.

Kenny Hausmann
33:04
And we have to use our intuition and really take some calculated risks as it relates to new because I did talk about the category review process, but I'm going to speak from the other side of my mouth. Innovation doesn't wait for category reviews. So we need to balance that and be nimble and flexible when, you know, new items or new brands come forward to incorporate it in the mix when it makes sense and also do things like general cleanup and fix the mix and those sort of things.

Daniel Scharff
33:29
So that makes a lot of sense. Obviously I need to educate myself a little bit more on how these categories work, but that makes, of course all the sense in the world. Like you're spending a lot of time managing the team and you've got people who go very deep into those different categories. I would love, actually, to get one of the merchants who does, like, you know, health and beauty, for example, to, like, come on the podcast with me, hold up, like, a bunch of products that have been submitted and just show me how they think about it. I got to do that, actually, with a bunch of beverage buyers the other week. And, you know, I was sitting with, like, sprouts and Gelsons and 711 and Bristol Farms and just got the chance to see them talk through about a dozen products.

Daniel Scharff
34:09
And it was so interesting just to see the kind of things they were all calling out and very consistent, each one of them. When I talked to them separately before we kind of came together, really noticed a lot of the same things, actually. It was. I felt like my brain was growing listening to them. Okay, cool. So. And then I wonder, are there, you know, you mentioned self care, which, you know, I definitely see, like, I see on Instagram girls looking like they're having a great time rolling the upper cheek part. I'm like, yeah, I don't, wait, I want to do that. So what are some other key trends that you're seeing impacting the departments within natural living?

Kenny Hausmann
34:43
Yeah, I mean, it's gone to dogs, too. I see on Instagram the same thing, like a get ready with me dog video and that they're soothing for sure. Like, man, I hope my dog doesn't get any ideas because I'm not doing that. But, yeah. Clean beauty, sustainability across the board. When we think about macro trends and it goes beyond just what we're putting in the products, it's the packaging, it's how we're treating employees. There's a higher level of transparency that the customer wants because they're building connections with the brands that they're purchasing, and they want to connect and identify with it.

Kenny Hausmann
35:16
You know, in the supplement space, it's really just overall wellness, but really getting wellness across all life stages, whether it's, you know, women's health, all adult health, obviously lifestyle kind of focused categories like protein and pre workout, all those trends absolutely is on trend. We're starting to see kind of the efficaciousness of wellness transition over to the grocery side, too, whether it be like new patrol mushrooms or l theanine, things like that to enhance those products. So we're seeing really good growth across the board there. As far as the non food space goes, it really ties into that sustainability. Cleaning products, especially, really eliminating the chemicals and not just that, eliminating the water consumption. So you're starting to see things like laundry sheets or reduction in water within use of cleaning products, reusable products.

Kenny Hausmann
36:05
With brands like growth and Cleanleaf, for example, they have done really great job to lead the efforts in terms of sustainability. And those are really the trends that we're seeing. And it's great to see. It's really great to see all encompassing trends come to the table. And what's interesting is the natural products industry was really built on that mission of really providing access to healthy and nutritious food and wellness products and taking care of our communities and people. But in our space and natural living, that mission still rings true. And it's just been so inspiring for me to reconnect with the industry in this way. You know, coming back from my. I'll call it my sabbatical in Hawaii, but it really wasn't. We worked very hard at Foodland. I say that tongue in cheek. We did work very hard, but it was.

Kenny Hausmann
36:51
I've just been reinspired to, you know, by what's going on in our space. From a mission standpoint, that's amazing.

Daniel Scharff
36:58
And so, Kenny, what of the stuff in your set? What's in your life, what, you know, vitamins or supplements are part of your routine. Any new ones you've discovered that you've been really excited about? You know, it just from your category, any that you'd like to call out, whether it's just kind of like a type or a specific brand. Evan?

Kenny Hausmann
37:15
Yeah, I'm a greens guy. I've gotten into greens and just an all encompassing greens powder that provides, you know, multivitamin probiotics, prebiotics. Just a full alcohol, like a full spectrum green, you know, I'm also into, you know, other supplementation, like, for example, that promotes, like, men's health and as well as just overall vitality. L theanine, those sort of things. I'm a big fan of our fresh time private label soaps and, you know, and as well as body care items, they're just so amazing. And, you know, I'm happy to say, too, we just recently released a private label facial care line and our body care category manager, and she's just so amazing. She actually won a vertex award from brand designs. So that's just recent, which is really exciting.

Kenny Hausmann
38:00
So, yeah, I use the product each and every day, and I've just been experimenting with new things and learning about new things, keeping it high level, of course, because we got to talk about structure and function versus actual usage on here. Just want to be d Shay compliant. If folks don't know what d Shay is it's just the governed body that helps us be able to effectively sell to our customers and not necessarily prescribe.

Daniel Scharff
38:21
All right. Of all the stuff that I got, I didn't know what to do with all of it. When the submissions for our shelfies. Anyone watching the YouTube can see this trophy that I have behind me, which is our beautiful shelfies trophy, but a couple that were just brand new to me. One, there's a brand called Banya that sent in like a glove that you, it's like a very nice kind of rough glove. You rub it on your body in the shower and probably exfoliates and rubs off some dead skin. And then there are like drops that you rub under your skin after, which was just lovely. I really enjoyed that.

Daniel Scharff
38:52
And then there was another product that was sent in that's like a sleepy time mist and you spray it on your sheets and pillows and I don't know if it does anything, but it's just kind of a fun thing to do. Like, oh yes. Transitioning into bedtime and creating my little sleep womb area environment. So I thought that was pretty fun. So, you know, I'm always curious about how brands, especially in these categories that maybe I'm not as familiar with, get to work with you guys. So it sounds like, you know, it's all about submitting through the reset process for you guys, right? So like, yeah, like, if brand has no idea how to get in touch with fresh time, what's the best way for them to do that? To submit for your guys's shelves?

Kenny Hausmann
39:33
Yeah, that's a very good question. We do partner with Rangemy. So our category review schedule is published via Rangeme. And a good way to reach out to us is you can definitely reach out to us direct. We do have some information on our website too, for product submissions. You know, a little tip on the bottom of our signatures, we do have a QR code. Most of us do. That will link you to our review schedule and also provide you links to all of our necessary forms.

Daniel Scharff
39:56
Well, that's cool to know about a pro tip. I wonder what percentage of people actually scan that QR code. That's very cool. Okay. And then, you know, I mean, maybe even more importantly, if they get to work with you, what are your favorite marketing programs? You know, if Kenny launches his own skincare brand, like, what are the things that you're going to do in the store just to make sure that you're getting noticed and getting off shelf?

Kenny Hausmann
40:18
Yeah. I love this question because it's not just about getting on shelf. It's more important to get off shelf. Right? So it's having that conversation with the category manager, you know, what works best. I mean, every category is a little bit different, you know, in terms of promotion, but it goes beyond just price, especially in our space. You know, I'll be honest with you, Daniel, there's a lot of marketing, internal marketing pieces that we have that we can share with our vendors, going from email blasts to social media posts and those sort of things. But we're continuously looking to evolve and continuously looking to really learn how we can best support our brands within this space. But what I've come to see that works really well in the natural living space is how do you interact on social media?

Kenny Hausmann
40:57
And do you have any, like, influencers, for example? Because a lot of our trends are born on TikTok, you know, so it's pretty interesting. So anything you can do there and really integrate that kind of social media online experience, what you can do at retail, because price isn't necessarily as important. You have to be competitive and you have to be reasonable within, you know, the price points you're asking for your products. But it's more of how are you connecting with the customer off premise to drive them into the store. And of course, we always like it at fresh time where they tag us and we tag you back and we have that kind of two way interaction. So it sounds a little bit, you know, I would say relatively simple, but it's definitely more difficult than it sounds.

Kenny Hausmann
41:37
And I also encourage, you know, our vendor community, too, when we think about digital, definitely we want to drive sales and velocity units and all those good things, but we also have to look beyond just the kind of the quantitative aspects and also the qualitative. So, like, how many clicks are we getting? How are folks interacting within the post on social media? Because that's going to drive awareness and that's going to drive folks into our stores when we can connect with them and really showcase. We have a multitude of new brands and trendy brands and different things that we would like you to try. So the more we can kind of interact and branch out in those platforms, the more we're going to be able to really connect with our customers in a robust way.

Daniel Scharff
42:18
I love that. I really, really enjoy hearing that kind of a response from you. And so let's say I'm a brand and I don't have already a big time influencer who can do all that stuff on TikTok, but I'm pitching to you and I'm saying we're going to do that. Like, hey, here's a campaign that we're going to do and it's going to be specifically targeted around fresh time. Like how much? What's your B's meter on that? You're like, yeah, okay, that looks good. That sounds fun. Let's go ahead and do it. Or are you like, have you been burned by brands saying they're going to do that and then nothing actually happens and there's no impact?

Kenny Hausmann
42:46
Well, it definitely. The latter does happen from time to time, but we want the vendors to be honest with us and we're going to be honest with them. I mean, the way that we, again, we see ourselves a fresh time to be that partner that brands want to partner with, not ones that they have, not a retailer, rather, that you have to partner with. And we truly believe that what can make us different versus our competitors is the way we, you know, can partner with our vendors. And if we could do that in a transparent and robust way and have that two way conversation, what's best going to drive your brand off shelf? And we build out a really good plan together. You know, that's just going to make us that much more stronger and build a really good partnership.

Kenny Hausmann
43:22
You know, we do expect to come in with a framework of the plan, right. And we can tell you whether or not, hey, is that relevant? Is that not. We also want to be mindful of spend too, you know, that. And we want to just kind of factor in all those components when we're partner with new brands because again, we're in this together. Right. We do want to partner with emerging brands, but we do want their support too, as it relates to our business. Could be that we have a business to run.

Daniel Scharff
43:45
Okay, that makes sense. What do you hope that brands will ask you when they're talking to you or one of your merchants about how to do well with you guys? Like, what is it? I mean, obviously questions around distribution, like making sure they ask about what are the right ways to support the business they do well, but what else is there that you like? I really hope that all brands get a chance to ask this so that it's going to be a good partnership.

Kenny Hausmann
44:08
Yeah. I mean, outside of just the typical questions, like you mentioned, it's, you know, the simple question of how can we best support fresh time? You know, what are you looking to see from us? Here's what we've seen that's successful. You know, does that fit within your mix? And I also like it when brands, you know, believe it or not, challenge us a little bit to try something different because quite frankly, we need to do that. We need to all innovate together and sometimes we get kind of stuck within the four walls or the scope of what the possible used to be or currently is. And sometimes we need to branch out and figure out what the possible could be.

Kenny Hausmann
44:42
So we do rely on our vendors to help us with that, but they come to table with a plan that's going to work best for their brand. Is a broad response to your question, but I think the more engaged they are and enthusiastic they are, it's just infectious. It's going to really drive the buy in from the buyer sitting across from the table.

Daniel Scharff
45:01
That's awesome. I think that's really incredible advice, Kenny. I really love how thoughtful you are about that. So I guess maybe just kind of last question for you. Any big holes that you see in your set right now where you're like, gosh, this is just something we're having trouble filling. There's a big opportunity for a brand, whether it's a certification that you're in demand of, you're not seeing people really nailing it or some kind of branding that you think somebody like, oh, I wish somebody would come and pitch this kind of a product to us or a particular kind of support that you want to see from somebody. Any big opportunities for brands in your department out there?

Kenny Hausmann
45:37
Yeah, there's always opportunities for brands and items within all spaces across the grocery store. There's a couple answers I can have to more. So down in the details. Yes. D, two C and digitally native brands start to come to market. We want them to think of fresh time as a partner they can partner with to kind of bring that brand to retail. And I think theres a lot of value there. But I also think of it a step further. Kind of the second point to that question is how do we at fresh time really authentically partner with our brands to align with some of their missions right beyond just the products we sell, whether it be regenerative, agriculture, sustainability, how do we bring that mission to life authentically and intentionally in our stores? I dont know.

Kenny Hausmann
46:21
I have answer for you today on how we can do that, but it's something as we think about the evolution of our business, just feel like that is our responsibility to do that in a thoughtful way because again, the customer is really looking to connect with these brands based on that. And the more we can support the missions together, the better off we're going to be as a retail ecosystem as a whole.

Daniel Scharff
46:42
All right, amazing. So, Kenny, just. Yeah, maybe last thing here. Do you have any general reset timelines people should be aware of? Obviously they can check that out on Rangeme, but just for them to have in mind, like any key dates or just general times of year they should be thinking about.

Kenny Hausmann
46:57
Yeah, we review categories all throughout the course of the year. So I would encourage you to go to our category review schedule. Obviously, we're in 2024. It sounds like we're only halfway, but actually we're pretty much through the category review schedule because in Q and a Q three, Q four, we go dark because it's the holiday time. So we want our store teams to be heavily focused on customer service and not necessarily disrupting the flow of the shop with resets. So our 2025 calendar, we're building out that framework as we speak. Some more to come on that. But I encourage you to visit Rangeme and, you know, visit our website. And if you have any other questions or information too, you know, I'll put it out there that I'm on LinkedIn.

Kenny Hausmann
47:35
I'm pretty active on LinkedIn, which, you know, Daniel, so feel free to message me. I'll try to point you in the right direction.

Daniel Scharff
47:41
You are the best. Kenny. I really love talking to you. Thank you so much. I'm sure everybody else enjoyed this just as much as I did. So definitely feel free to give Kenny a follow or connect on LinkedIn, and you'll get some really cool content from him as well. Kenny, thank you so much from the whole community for being such a champion for emerging brands. And I look forward to hopefully seeing you again soon, maybe at our Chicago meetup coming up in a couple weeks here that I'll be at or at an upcoming trade show.

Kenny Hausmann
48:09
I appreciate it, Danielle, and I highly respect what you and your team has done for this industry. And I'm just looking forward to continuing our, both our personal and professional relationship.

Daniel Scharff
48:18
Yes, sir. Thank you so much. All right, bye, everyone. All right, everybody, thank you so much for listening. If you enjoyed the podcast today, it would really help us out if you can leave a five star review on Apple Podcasts or Spotify. I am Daniel Scharff. I'm the host and founder of startup CPG. Please feel free to reach out or add me on LinkedIn. If you're a potential sponsor that would like to appear on the podcast, please email partnershipstartupcpg.com. And reminder to all of you out there, we would love to have you join the community. You can sign up at our website startupcpg.com to learn about our webinars, events and slack channel. If you enjoyed today's music, you can check out my band it's the super fantastics on Spotify Music.

Daniel Scharff
49:02

On behalf of the entire startup CPG team, thank you so much for listening and your support. See you next time.