The Startup CPG Podcast

Roberta Townes
The key to all of that is knowing what your sales plan is and having constant communication with the merchants, right? So not just seeing the sales, not hit the plan and not doing anything or saying anything about it, but being proactive. And the merchants have just really great knowledge, of course, about all of the different levers. Maybe the retail is too high. Maybe there's opportunity to adjust from a retail standpoint. So I would say if you're coming in and not hitting your sales numbers, it's crucial to just immediately have that conversation. I know it's a tough conversation, but it's better to have that upfront before not doing anything for six months and then getting that call or email that you're exiting.

00:50
Daniel Scharff
Welcome, welcome. We are back with another buyer spotlight, and this time it's the amazing Roberta Townes from GNC. This is actually the first time we've had a buyer from a national or international retailer on the podcast, and certainly the first from the specialty and health and Wellness channel. I actually got to know Roberta recently through a partnership with GNC that we have where we discover new brands for them to compete for a national test. It's called the next big thing, and you've probably seen me posting about it all over LinkedIn. We are so excited for everyone to find out who won on July 25. But in the meantime, please enjoy this episode where Roberta takes us through her whole process, including how she sources brands, even dming them sometimes on Instagram and TikTok. Enjoy. All right, welcome CPG ers to the podcast.

01:41
Daniel Scharff
I am delighted to host another one of my favorite buyers today. It's Roberta Towns from GNC. Roberta is a highly seasoned merchant with over seven years of experience in the supplements industry at GNC and over 15 years of experience as a merchant across industries. She is currently the senior category manager at GNC, managing both the food, drink and wellness divisions. Roberta, welcome to the podcast. I am so interested just to hear a little bit more about how you got your start in this world of retail and CPG.

02:13
Roberta Townes
Yeah, definitely. I started inventory and allocation at Sears for many people that probably still remember that store, but started at Sears in allocation and also worked at Victoria's Secret in Columbus, Ohio for about four years, also within that same space, and then really just wanted to get into merchandising and started my merchant role at Kmart as a footwear buyer. So completely different from this current CPG space, but pretty equivalent in regards to understanding trends, what consumers are looking for, and making sure that we're providing that to the consumer so I did that for about nine years in footwear and then moved to GNC, and I've been in this role as a merchant for coming up on eight years.

02:53
Daniel Scharff
So what was it like moving from Sears to Victoria Secret? What were the environments like? So, yeah, I mean, what was it like as you were kind of moving through those different companies before joining GNC?

03:05
Roberta Townes
I would say, you know, as I was with Sears as well as with Victoria Secret and kind of focused on the inventory and allocation aspect of the business, I actually, at Sears was more into, like, microwaves, toasters, things like that, which were more staple items versus Victoria's Secret that are definitely cutting edge trendy. So there's just a faster movement, faster turn. Definitely a different experience into the customer as well, of course, you know, more female focused, and definitely a faster turn of new prints and fabrics and, you know, always looking for the next investing. Kind of similar, I guess, to CPG.

03:40
Daniel Scharff
Yeah, I talked to a friend of mine once who was at gap, and I was saying, oh, like, you know, food beverage is so hard because of the expiration dates. And, gosh, you know, that comes up really quickly, and then we have to figure out a way what to do with the product if we can't sell it. And she's like, what are your expiration dates usually? What's the shelf life? I was like, oh, you know, it could be like two years. She's like, okay, yeah, mine's like 45 days. Just.

04:03
Roberta Townes
Yeah, definitely.

04:04
Daniel Scharff
I guess probably it was a lot shorter at Victoria's Secret, too. Is that right? I mean, that just seems wild.

04:09
Roberta Townes
That's so true. Our seasons were definitely fast. Think about spring, summer. We even had, like, a summer one and a summer, too. So even within that, just because consumers are surprisingly even focused on different colors and prints during those two kind of peak periods of the summer season. So definitely you need to make sure that what you're buying is not only the right product for the consumers, but definitely from a quantity perspective, because you just definitely have such a short time span to sell through. Okay, that's so funny. I mean, yeah, it's definitely a lot longer a shelf life than opportunity to sell when it comes to food and drinks items.

04:44
Daniel Scharff
Yeah. How did you find your way to GNC?

04:47
Roberta Townes
Really just, you know, like I said, I was at Victoria's Secret, moved to Kmart, and really was a footwear buyer for a number of years, and from there, just looking for another experience within the merchandising world. So, you know, I felt like I had really tackled this space of footwear. What's next? What are some more opportunities? So loved GNC. Loved the mission statement that the brand holds as well as gets closer to home. So I'm actually from Maryland. Me too. You are?

05:13
Daniel Scharff
Yeah. Chevy Chase. Chevy Chase. Like Montgomery county, right next to DC. Where are you from?

05:18
Roberta Townes
Washington? Fort Washington.

05:19
Daniel Scharff
Oh, yeah.

05:22
Roberta Townes
Oh, I love that. I love that. So, you know, it's definitely a 14 hours drive from Chicago versus a four and a half hour drive from Pittsburgh. Makes my family happy. So, yeah.

05:31
Daniel Scharff
Oh, that's amazing. And anyone watching the YouTube version of this can see that I'm wearing a very Maryland themed hat. It's actually a retro GNC hat that's red and yellow, like our Maryland colors up. Crab cakes and football. That's what we do.

05:46
Roberta Townes
Yeah.

05:47
Daniel Scharff
All right, cool. Okay, so then for GNC, first of all, so you cover food, drink and wellness, but, like, what's all the stuff under that? You know, let's say somebody just has the perception of, like, GNC. I know they have, like, a lot of supplement stuff or whatever, like, really? But you guys have so much more than that. So what is all the stuff that actually is under your categories?

06:06
Roberta Townes
So when it comes to food and drink, it's pretty easy. It really encompasses energy drinks, which is pretty much a dominant when it comes to beverages and functional beverages that fall in suit. When it comes to food and drink, it's the protein bars that you see on shelf. It's the protein snacks and coupled with better for you products. So that really encompasses kind of the food and drink aspect of it, which is pretty easy. And then wellness is a little bit complicated because you're like, what's wellness? I thought the whole entire store was. Well, for me, for my specific categories, it really dives into more products that are fit a solution. So when you think about products that help with your brain support, help you sleep better, Omega is for everyday health, the joint support.

06:46
Roberta Townes
So all of those are classes that fall under within the wellness category.

06:50
Daniel Scharff
Got it. Okay, so you've been at GNC for a good amount of time now, right? Since 2016. So coming up on eight years. And how has your role evolved over that time?

07:01
Roberta Townes
Definitely, I would say so. I actually just started off in wellness for a couple of years and then added food and drink. I would say how it's evolved over the course of the last years is just quicker turn in regards to what's new, innovative and different that's out there in the market and really moving to help support that for the consumers, especially when it comes to the food and drink category. I'd also say within that space, it's definitely much more competitive than it was in the past as there's so many new and upcoming brands that are relevant to the space. So, you know, identifying what's the next best thing.

07:31
Daniel Scharff
Oh, that's so interesting to hear. I never thought about it that way, but I think, yeah, like, okay, when I came out of business school in 2009, not a lot of people were going and starting food and drink companies. And now actually, a lot of people are. There's way more focus on entrepreneurship, the food system, and CPG in general. And so I think what that reflects is that some people did pretty well, and then a lot of people saw, oh, like, this is a cool area to be innovating in. So now there are just so many new products coming out there, at least maybe not just at this moment, but had been a lot of funding for it also, which was getting a lot of people interested in it.

08:02
Daniel Scharff
So makes sense that, okay, maybe historically you didn't have to spend as much time on really paying attention to what is the next big thing, but now that is what everybody's looking at. And probably just because of social media, you're exposed to so many different kind. Right?

08:17
Roberta Townes
Agree.

08:18
Daniel Scharff
Like, another energy drink. Like, oh, my gosh, like, we could make a phone book of them now, but, like, they're all interesting and compelling for different reasons, and they all have their science and, you know, devoted consumers. And so that makes sense that people are really looking to up their games and all the biohacking that's going on now in communities around that. And just a lot of the education that we have now also around mental.

08:39
Roberta Townes
Health and wellness, I would say that, too. I mean, just outside of food and drink, when you just think about the balance of the store, consumers are more looking at, how do I live better every single day? How do I age better? What are the products that can help supplement my diet? I think people are much more interested and much more believing that these products can help support than when I started. So I would definitely say that as well.

09:00
Daniel Scharff
So just help me understand a little bit more. The GNC consumer, like, how many of them are going into this store? Like, hey, I need exactly these eight products. This is the best place to get them. Versus, like, hey, you know, like, I come here for my protein always, and then I want to see what's new and get the person in the store's recommendation about, like, oh, what are you interested in brain health? Hey, here's some new cool stuff that we have for that? Like, how much do they come in knowing? How much are they looking for recommendations and how much of the basket is predetermined?

09:27
Roberta Townes
I would say that a large percentage of them are coming in already knowing kind of what they want. And that's really the goal of our coaches, which are associates in store, is to initially understand what you're looking for. What are the items in the store that you already know fit your lifestyle? Right. And then the second part of that is then how do we add to that? How do we make it a more holistic assortment of products that really fits your needs from an everyday perspective? But, you know, unlike kind of a grocery store, where a lot of consumers come in and kind of browse aisles right as they're shopping and picking up their bread and finding new and innovative products, GNC is more a destination point.

10:02
Roberta Townes
So you're coming in already knowing that you're coming to get some sort of product that fits your everyday need.

10:07
Daniel Scharff
That's cool. And so the assortment that you have, obviously a lot of it is not available wherever they're grocery shopping. Whether they're shopping at a conventional store or natural or whatever, like, they're just not going to have the same selection that you guys have. So they probably are still doing their grocery shop in some way, but then coming to you, or I don't know if you would call it specialized or just more health oriented products that they know they can find there. They know where to find it there. Your store is not as hard to probably navigate as, like, 100,000 sku grocery store. Right?

10:34
Roberta Townes
Right. Yeah, no, completely agree. I mean, we definitely have an assortment, and we aim to provide products that aren't everywhere in mass. Right. So that you do have ability to come gnt to buy. And then secondly, we have our coaches that are there to talk you through, you know, and give you more education and understanding of the products which you don't have. When you're in a traditional grocery store, no one's gonna sit on the shelf and tell you why a certain ingredient is good for brain health right on the shelf. It's really just up to the consumer to read the packaging.

11:00
Daniel Scharff
You know, I am not such a supplement user myself, but I imagine people who go into GNC who really are almost view it as, like going to their body shop or the club, like mechanics going to the body shop. Like, they want to talk a little shop with people who work there, right. Or like people who go to the farmers market and really just they like it because they have an affinity toward it. They like, view themselves as farmers market people. Like, I bet you probably have a lot of people who just love going in there. Even if they could order it online or something, they just. There's something about going in there that probably is a bit of a ritual and fun for them to catch up with other people who have similar interests as them.

11:34
Daniel Scharff
Probably the people working in the store share a lot of those values. Do you see a lot of that?

11:38
Roberta Townes
Yeah, definitely. I mean, as I go and talk to our coaches in the stores, they talk about person that knows them by name, that comes in, you know, every month and talks about what products they're currently taking and how it's working for them. So I think that's definitely one of the gems in regards to being able to shop GNC is you have that opportunity for that one one experience and for an associate to really understand your need and also be able to talk shop.

12:01
Daniel Scharff
Yeah, it's funny, you know, there's like the joke that's like, how do you know if somebody is like vegan or keto? Like, they'll tell you about it. But I think that's probably true across, like a lot of health and fitness stuff, right? People who are like really into it or they're biohacking or something, like they're going to tell you about it because they want to talk about it. It's such a physical and apparent thing and impacts so many of your daily behaviors. They probably really appreciate the chance to get to talk to coaches who they know are going to be interested. So I bet that's a pretty special thing for them. So can you give me just a general overview of GNC for somebody who lands from Mars and has never heard about it before?

12:36
Daniel Scharff
So just a very basic overview, like how many stores? And like, typically where are they and what does it feel like to go in one?

12:42
Roberta Townes
Overall, GNC is really a global health and wellness retailer. We provide consumers with products and services that really just fit their everyday lifestyle, and we do that through innovative, cutting edge products and we support that through our close to 2500 stores that cross the US. And that's a mix of corporate as well as franchises. And then we have locations in over 50 countries globally. So some people may think GNC is just in your neighborhood, but we actually span across the entire globe.

13:13
Daniel Scharff
And when you're talking about international locations, how much of the assortment would typically be different in all the other countries? Is it like 100% different because of all the import regulations and stuff? Or are there common skus? Do those stores talk to the global or us stores?

13:29
Roberta Townes
Definitely. We have a strong relationship with our international partners, our international merchants, and creating an assortment that is similar to what we have in the states, to your point. Yes, there's rules and regulations supporting them, so we can't have all products in, but we do work to have more of a holistic assortment across all platforms and countries.

13:48
Daniel Scharff
Got it. So you think, like, would you see a similar overall percentage of, like, protein powders and, like, energy drinks and stuff like that, but sourced more regionally?

13:58
Roberta Townes
Yeah, I mean, I would say when it comes to international, it's more GNC branded focused, because from a third party perspective, sometimes it takes a longer lead time for them to have the right paperwork and logistics to get international distribution in that way. So you'd probably see a little bit of a stronger lean into our own branded products versus third party there.

14:18
Daniel Scharff
Well, that makes sense. And probably GNC's branded products even would have a stronger brand than most of the stuff sold in the US abroad that people wouldn't have heard of abroad.

14:26
Roberta Townes
But I would say a great thing and being a brand in GNC from a us perspective is it does give visibility and opportunity for you to go internationally. Like, that's a great lead in connecting with our international merchants, understanding what it looks like in order for you to become able to sell in those countries. And it could be a great start to being a global brand.

14:45
Daniel Scharff
Well, speaking of being a global brand, and, you know, a lot of brands getting their start with GNC. So this is, I think, pretty well known. Like, a lot of people know that there are some brands who just have absolutely blown up, I think, because of GNC. So Alani New, I think, is a good example. Ghost. I think there are a bunch more. How and why does that happen exactly? I mean, obviously it's a great place to get exposure to some probably pretty influential consumers. And you get the, when you're on shelf and you kind of have the implicit GNC stamp of approval. When have you seen this happen and why?

15:17
Roberta Townes
I think it's a testament to us just getting out there, the merchants, and identifying what trends are out there, what innovation is happening, and what our consumers already looking for. So what brands are they already shopping for when it comes to, for example, with those two a d, two c component? So buying it online, but they want a place that they can shop from a brick and mortar standpoint. And then what that gives the brands, once they are into stores is more of a relevancy, should I say? In the marketplace we are known to provide the most innovative and cutting edge products in our stores that also are high quality and safe. So it gives the brand an opportunity for consumers to say, okay, this is a relevant brand that provides quality ingredients and quality products for my lifestyle.

15:59
Daniel Scharff
I mean, a big stamp of approval or validation for the brand. Exactly. Okay, this is a legit brand. They've made it past GNC standards, and they believe in them enough to put them front and center here in a store where, yeah, it's not 100,000 skus, it's a more selective number. And the opinion of GNC and the coaches who work there are pretty influential as well.

16:17
Roberta Townes
Yeah, definitely. And one thing I would say to the two brands that you mentioned is that there was opportunity for us to have an exclusive partnership. So what that means is were the only brand. We were the only retailer initially that had the products from a brick and mortar standpoint. And what that allows is really an easy opportunity for the brands to talk to their consumers with a one stop location in which they can buy their products, and then the same for us to tout to our customers that we speak to from, you know, social platform email and the consumers that shop our stores. Hey, you can only buy this from GNC. Right. It just gives a more streamlined experience for customers.

16:54
Roberta Townes
And what we've seen with things like that is even when both of those brands say, okay, we're ready to go to other retailers, we actually still maintain a pretty strong percentage of the consumer base because both parties have now trained the consumer right to only come to GNC to shop. So it really doesn't hurt us as a company, and it also helps the brand to have that baseline and then be able to expand to more retailers.

17:16
Daniel Scharff
That's pretty special. I don't see everything, but I see a lot. And I wouldn't say I've seen so many examples of companies getting overall exclusives with a retailer. Like, I see, hey, there's a new flavor. That flavor is exclusive to target or Whole Foods for three months or six months. And, like, okay, that's cool. Like, I don't know that would make me drive across town just for a different flavor, but, like, oh, whoa. Like, a total exclusive on the whole product line at GNC with, you know, the meaning that imports on the brand also, like, the significance that means for it. Like, and I can only get it at GNC, and it has the health and wellness kind of stamp on it. That's a big deal. That's a really big deal. Okay, so speaking of launching amazing brands.

17:56
Daniel Scharff
I recently got to see you because were actually at GNC's corporate hq in Pittsburgh, right, where were filming the finals for the next big thing. And for anybody who hasn't seen all of our LinkedIn posts and fun announcements. So we had the opportunity at startup CPG to partner with GNC on just one of the most exciting campaigns. So it's called the next big thing. And were scouring the universe of all of the most promising up and coming brands who fit the health and wellness and live well ethos for GNC to find the next big brand. That would be an absolute home run for GNC consumers. And so we got so many submissions. The GNC team then narrowed down to semifinalists who got the chance to send in products and have meetings with all of the merchants.

18:43
Daniel Scharff
We did a bunch of in person meetings, actually, at Expo west, so there were so many people who wanted to meet with them. We ended up doing 92nd quick pitches. We had a line all the way down the hall at Expo West. I think we ended up doing maybe like, 350 meetings with your whole team there. And then the GNC team picked six finalists who then flew out to Pittsburgh just a couple weeks back for the finals. And the results of that, no spoilers here, will be announced in late July, I believe.

19:12
Daniel Scharff
But it just was such an awesome process for me to get to experience one, I think to get to learn more about GNC and all the people who work there and, yeah, I mean, just learning more about the consumers and just how great of an opportunity it can be for brands and I think for the brands, it was just such a cool experience as well, because, I mean, I think it really opened the doors for them to really learn about this channel because, you know, I think it's not one that people are, like, born into CPG and immediately understand how GNC works. Right. So it was such a cool way for all of us to get educated on GNC together. What was the experience like for you? Because, I mean, you were pretty involved in this.

19:50
Daniel Scharff
I know you were there with us doing the 92nd quick pitches, meeting lots of new brands that you probably hadn't seen before, and I know getting to know some of them pretty well. So what was it like for you?

19:59
Roberta Townes
Yeah, it was great. I mean, honestly, as a merchant, it's just one of my favorite times is to be able to meet new brands, get an understanding of kind of how they got started, which is great to hear about the mission and the. Why, the hurdles that they've encountered and how they've overcome them and then what they're looking for in regards to a partnership, I would say all of them came with really strong understanding of their brand and where they were going and what was happening currently in their business and being able to answer all the questions through the panel. So I know that's a little intimidating, but they all did a pretty phenomenal job coming just well prepared. And then I think it was also just great for them to come and get. We toured the corporate headquarters, right.

20:37
Roberta Townes
So just get an understanding of what that looks like and what are all of the pieces and parts that really make and develop, you know, how we run our business. To your point, just a side that I think a lot of companies and brands just don't get to see.

20:49
Daniel Scharff
Such a special treat to get to go there. And it was such an amazing red carpet experience. Like, all of us were hanging in the green room and we're like, this feels like being on MTV's real world, but with way more camaraderie. Like, everybody really was rooting for each other. And, yeah, you know, it's interesting because, I mean, the brands were all incredibly innovative, but also at very different stages, like, ranging from, like, a more mature brand to one that. That, like, really hadn't even launched yet. And a lot of them even looking at GNC, it's like, hey, I'd like to do this exclusively with you guys. Cause I see that value and some of these examples from before.

21:22
Daniel Scharff
So very excited for people to hear more about this once we start releasing some of the content over the next couple of months from it. So speaking of the opportunity, and do you have any recent examples of a brand that you brought in to GNC and you saw like, hey, they're doing great. I like what they did. This product that I took a chance on seemed to really resonate with our consumers, and they supported it in the right way, and it just, you know, has done great on shelf. Any particular brands or types of products come to mind?

21:51
Roberta Townes
Yeah, I would say when we think about Barebell is a brand within our bar that came in, started really just in kind of a gems, like face to face with consumers. We were one of the first big retailers that the product came into. Started off small, just in a couple of hundred stores to identify if it was something our customer was looking for. But I think one thing that they did really well is driving awareness and traffic to our stores, so they utilize their influencer base, driving awareness, participating in promotions, getting activations out there to really continue to educate and teach consumers where to shop for the products. And then they just worked with us as well on how do we touch our consumers through special opportunities, events and promotions to get trial out there.

22:34
Roberta Townes
And now it's one of our top brands still doing super successful, always bringing new innovation and flavors, which is ultra important, especially when it comes to the food and drink category, because again, people are always looking for new. So, yeah, I would say that's one of them, definitely. And an example on that one is really starting off small, understanding the customer attraction and then being able to build off of that based on positive sales that we've seen as well as the avenues in which we utilize touch growth.

23:01
Daniel Scharff
Yeah, that's awesome. For some reason it feels to me like if you're a brand like that and you're telling your consumers, hey, we're available at GNC, they will remember that in a way where, I don't know, it might not be quite as sticky when you're saying like, hey, we're in Safeway, we're in Kroger, we're in like all these other stores where, I don't know, maybe just because one, there are only a select number of national retailers out there. Right. And so I think that's part of it. But maybe because there really is only one GNC, it's so different from what's out there and very evocative and, you know, we all know the branding. I feel like it's very memorable.

23:33
Roberta Townes
Yeah, I mean, I definitely think when you're able to talk to one place to shop, it's just an easier story to tell the consumer. Right. Sometimes that's the opportunity. Right. Where some brands are already in other retailers in some format or way, and then they come into GNC as another alternative opportunity for consumers to shop. And when it comes to things like that, in many cases, I think you kind of touched on it earlier. But we do look for maybe there is an exclusive flavor that we can both boast about. Right. To drive traffic into just GNC to support. So as a brand, you may be in plethora of retailers, but there is some sort of like, individuality and opportunity to just shop GNC.

24:10
Daniel Scharff
Yeah, that's so interesting. So for a brand like that, or just general brands in your category, how are you typically finding them? Are they like, okay, I've been on the sales side of this and I know what all the tools in my toolkit, I would try to hit you up on LinkedIn, try to figure out your email, try to meet you at a trade show or, yeah, typically, how are they managing to get on your radar?

24:30
Roberta Townes
I would say in regards to, like, them reaching out, to me, LinkedIn is a big one. It's a great opportunity for you to connect and just send messages. That way. Events are important. So like you talked about with Expo west, were out there and having a booth there and being able to see merchants as you walk by and get people to trial your product is super important place as well. I would say from my end, I'm scouring everywhere, so I'm looking on TikTok, Instagram. So just making sure that you're relevant and on those spaces is super important for merchants to see what you're doing.

25:01
Daniel Scharff
So and what do you actually do when you're on TikTok and Instagram? Like, are you going into the search bar? Are you just, like, because the algorithm, you're seeing certain kinds of products that are already relevant for the kind of stuff you're looking for, or like, how are you actually scouring it?

25:13
Roberta Townes
I'm doing both. I'm definitely looking at just what the algorithm already is showing me because, of course, it's already kind of tailored to what I'm searching for. I'm looking on TikTok shop and identifying, like, what are those items that seem to be relevant and are selling online and then just utilizing the search bar. So I'm using all sorts of formats in order to understand what consumers are looking for and what's hot at the moment. And then on Instagram, it's the same. It really is just what's currently on my feed that I'm seeing quite often. And then, you know, I utilize even. I've even dmed brands just via, through Instagram to kind of get connections and start conversations in that platform as well.

25:49
Daniel Scharff
What an exciting message to get. You're like, in the middle of dming with your college friends about some stupid stuff, and then all of a sudden an amazing message comes in from a merch.

26:01
Roberta Townes
I know, and it's like my personal Instagram. So then I always try to, like, put my work emails to make sure that they know it's not a joke. Like, this is important.

26:08
Daniel Scharff
I know. I would immediately be like, no, this is a scam. Couldn't possibly be. That's so good. And then you also mentioned trade shows. Which ones do you typically go to?

26:18
Roberta Townes
Yeah, I mean, Expo west is definitely one. I would say the key. The key one that I go to all the time, every year. It just seems to have the most robust opportunities for products across all categories, not just my own. So we go on a pretty large team of merchants, go out there and search for the next big thing.

26:34
Daniel Scharff
Yes, I was excited to hang with the whole posse on the floor and also at our bowling party that we threw there. But, yeah, it's interesting to me. I don't know why I would have. When I asked the question, I was like, oh, I bet they go to some of these, I don't know, fitness expos and stuff that I've never even heard of. But I mean, just the scale of expo and the quality of the products is probably pretty hard for you to find something that useful, right, in other places.

26:56
Roberta Townes
Yeah, I mean, we do have. So our sports merchants, they actually do travel to, like, the arthem. So they do go to those events. It just depends on the products categories. But I would say there's some merchants that definitely go out to some of those events as well.

27:08
Daniel Scharff
Okay, cool. So now let's fast forward to you discover the next big thing or just, you know, a brand at a show that you or on Instagram that you think could be a good fit. And then I'm guessing, you know, you'll talk to them and figure out if it makes sense. And then at some point, are you going to scope out, like, a certain number of stores for them to launch in? If so, how do you figure out what that scope could look like? And then how does the distribution side of it work? Like, I think you guys go direct with a lot of brands, which is amazing.

27:35
Roberta Townes
Yeah.

27:36
Daniel Scharff
Yeah. How does that whole process typically work?

27:38
Roberta Townes
I mean, it definitely depends on the brand. So once we kind of understand where they are today, kind of how they're talking to the consumers, what their social platform or visibility looks like, that really determines the store count. So if you're a small brand, kind of just starting out, really trying to understand driving traffic, it may be a smaller group of stores. And maybe we start off in 200 stores or less in order to really, not only for us to understand the customer and traffic and drive, but also for the brand kind of harness, what are the best levers to pull to really get the traction and drive customer sales?

28:13
Daniel Scharff
By the way, 200 stores for us is a lot of stores for you guys. It's like a smaller amount. We're like, what, 200? That's amazing.

28:21
Roberta Townes
Yeah. Yeah. So although we have 2400 stores across the country, it doesn't mean that they launch in all of those, right? It really is. If it's a stronger brand that has a healthy amount of followers already, we know that consumers are being asked for the product to be carried in GNC, they can support the inventory that's needed in a bigger way and they know how to drive. That could be a different story. Right. And they could launch in a bigger group of stores to start. So it just really all depends. I will say even if GNC said, hey, we want to launch you in all stores just for a quick information for brands. Like, you don't have to do that if you're not ready. So I think what's great about us is we have the conversations.

29:00
Roberta Townes
If you say, you know what, right now, from a manufacturing standpoint or from how we feel we're going to drive to store, we really only want to start in a couple hundred stores. Like, we can have that conversation. It's a very healthy conversation to have so that it's not that you're going out to all stores and maybe not being able to meet the sales plans and goals that we have, and it end up being a conversation on exit.

29:24
Daniel Scharff
So I imagine you might have some kind of pre built clusters. When you're talking about 200 stores, what are you taking into account there? Is it just product preferences and consumer demographics of different stores or where the brand is based? Like, how are you typically figuring out which 200 to launch them in?

29:40
Roberta Townes
So we have actually segments by volume group within the categories. So say, for example, in food and drink, we have an A segment, b, c and D, and those are all categorized by volume. So our a stores are our most highest volume stores that support that food and drink category.

29:57
Daniel Scharff
And that would be segmented just within food and drink, not as the overall store. Right. Because you may have some that because of their particular location, they're near a bunch offices or something. So there's a lot of kind of grab and go that's happening there, stuff like that.

30:09
Roberta Townes
Yep, you're exactly right.

30:11
Daniel Scharff
Okay. And so if it's a new brand, they're more likely to go with the higher volume ones or the lower volume ones.

30:16
Roberta Townes
So we always start with the higher and then it can expand out from there.

30:20
Daniel Scharff
Well, what a good opportunity that is. That's because when you're on the brand side, if I'm talking to like Walmart or something, and they're like, okay, so tell us which stores you want to go into. I'm trying to do all the research I can to be like, because of this factor and where our consumers are. I'm really just trying to pick the highest velocity stores. It's very nice that you guys actually just do that for them. What a cool opportunity for them.

30:43
Roberta Townes
And what that really allows, too, is that it's our most traffic stores, our highest turned stores. So it really allows for us to say, okay, we need to see if you can win. And these are the stores that we know if anything can be won, right? Because we're having the most consistent traffic consumers shop and spend.

31:02
Daniel Scharff
So, like, one kind of random question is just in terms of, like, basket size and frequency of trips, like, how do your consumers compare to grocery, for example? Because I imagine, like, okay, some of your items are going to be higher priced, right? So that probably pushes baskets up in some instances. But yeah, these may be some, like, grab and grow consumers might be coming in just for a drink because it's pretty easy to get in and out of a GNC compared to a grocery store. And I'm also just kind of wondering, like, yeah, what are the habits of GNC consumers? What is their routine? How often are they coming in? Is it a once a week thing?

31:33
Daniel Scharff
And they come in on Sunday after the gym and load up and then they do their meal prep, or, you know, is it just kind of more, they're coming in when they run out of stuff or go in through the week? Probably. You have a lot of data.

31:43
Roberta Townes
Yeah, definitely. There's the consumers that come at the top of the week and kind of get their needs for the week, including like, the grab and go items, you know, their protein bars, their energy drinks to support them through whatever routine they have for the week. And then we have the consumers that are coming in and buying their monthly supplements. So a lot of our supplements are 30 day supply, so they're coming in and kind of loading up on their needs for the month. And in addition, a couple of grab and go items on the side as well, they'll come back once they're out and they're replenishing their products.

32:11
Daniel Scharff
That's cool. It's very aspirational to me. I think a lot of people who are really into health and wellness and they're like, great. I do all my meal prep on Sunday. I'm like, I don't have any schedule or routine at all. I don't know how they manage. But I bet those consumers who do have that routine are pretty consistent shoppers with you. And then once brands do find you, then I wanted to ask what makes a good pitch to you guys? Because I've seen a few of them now where I felt like no brainer. To me, the brands who had actually gone and spent time in the GNC stores and really understood the set had a big advantage.

32:41
Daniel Scharff
And the ones listening to this podcast right now probably have a big advantage because they're getting the chance to hear some very important information from you. But what do you see in the brands that are pitching you? Who really managed to stand out?

32:52
Roberta Townes
I would say that definitely talking about kind of the mission, the why, giving a great understanding for us on the brand where you are today, and kind of what the future plan looks like is important so we can kind of know and understand how GNC fits into that. And then I would also say just understanding customer sales today, your demographic, and then how those connect to the GNC consumer. So to your point, really getting out there into our stores and understanding, is it the same consumer as your product? Right. Where would it fit? On shelf and kind of bringing that to the light so that we can even have a visual and understanding of where the product goes, how it fits, that you understand that this is the right customer placement for your product is important.

33:35
Roberta Townes
And then I would say talking about how you currently touch your consumer. So is it through social, is it through influencers? And not only giving us an understanding of how you touch your consumers today, but how you're going to utilize those platforms in order to drive consumers to GNC. So say, for example, you have 50,000 followers on instagram. You may say today, this is how I typically target and talk to my consumers. If we came into GNC, we would utilize that platform and weekly talk about GNC, go into a store, have photos, images and content that support consumers awareness that the product is at GNC. We would utilize our top five influencers, have them go out to GNC stores and talk about the products and why they shop GNC there.

34:18
Roberta Townes
So understanding where you are today, but also integrating that into how it works when your products are actually in a GNC store.

34:26
Daniel Scharff
And so I'm guessing those are really then the same kind of things you would say for a brand who won the chance to be next. Big thing like, yes, now go and do those things and you will crush it with us. Is that about right? Or any other things that you tell them?

34:39
Roberta Townes
No. I mean, that's definitely, I mean, I know you talked about ghosts and Alani kind of earlier in the conversation, and things that really help win those brands and being successful in GNC is that 360 approach. So, you know, not only GNC talking to our consumers, driving awareness and traffic, you participating in the promotions in store and place, but also the brands driving consumers into store, utilizing all of those platforms that they already know in regards to how they touch their consumers and then creating a plan to drive those consumers into store, utilizing those same avenues. So it's ultra important to have your product sit on shelf and think that's the win. The win is really having the product on shelf and then having it actually sell and perform. And you need both platforms in order to really do that.

35:24
Daniel Scharff
That makes sense. And let's say, like, doesn't always go well, right? We hope it always will. I hope it does for every brand out there. But yeah, sometimes it doesn't. And it's just not a hit. It's just not resonating with the consumers for one reason or another. And maybe your performance is kind of low. So I guess are those still the same kind of interventions that you would recommend for a brand that needs to turn it around? Or is there anything sometimes even drastic that you would tell them, like, hey, it's time for this lever?

35:50
Roberta Townes
It depends honestly on what's happening. I mean, I would say the key to all of that is knowing what your sales plan is and having constant communication. Communication with the merchants, right. So not just seeing the sales not hit the plan and not doing anything or saying anything about it, but being proactive. I just had a vendor read just last week say, hey, can I jump on a call? I know sales aren't where they need to be. What can we do, right? And the merchants have just really great knowledge, of course, about all of the different levers. Maybe the retail is too high. Maybe there's opportunity to adjust from a retail standpoint. Maybe, you know, you haven't been on the last three promotions in store that really helped with trial. So how can we get you on more of those?

36:28
Roberta Townes
Do you have an influencer base? Maybe there's opportunities, especially when it comes to products that have a taste component to it. Maybe, you know, you need to get with our events team and get out to some stores and get some trials going and some awareness in that factor. So I would say if you're coming in and not hitting your sales numbers, it's crucial to just immediately have that conversation. I know it's a tough conversation, but it's better to have that upfront before not doing anything for six months and then getting that call or email that you're exiting.

36:58
Daniel Scharff
Yes, it's uncomfortable. Probably a lot of us would love to just kind of hide in the back of the class and hope we don't get called on or called out. But I mean, at the end of the day, I mean, the merchants are running a business and they're going to see the number and then if you don't have that conversation, then you're just going to be on the chopping block. I think. I don't know. I think on that brand side, I think a lot of people also just worry about being a burden to the category merchant. You've got a lot of stuff going on. You don't want an email from me all the time being like, hey, like, sounding so thirsty, I'll call it just like, how are we doing? Are we okay today? Are we okay tomorrow?

37:28
Daniel Scharff
It sounds like at least with some appropriate cadence, you're open to that. And I would say the transparency, right, of just, okay, here's where we are, here's what we're doing. Let's work on this together.

37:38
Roberta Townes
Definitely. And I would say we want all brands to win too, from the merchant side of it. So it's not that it's a burden at all, but sometimes, because we do have so many brands out there, it really is the onus upon the brand to reach out in some instances, right. And have that conversation and communication.

37:53
Daniel Scharff
So when, so when it does kind of go that way for brands where it's not going so well and they do some of those things, like how often do you see them actually able to redeem themselves and become the most improved player on the shelf? Verse like, okay, they did it and then they kind of turned it around a little bit, but it still wasn't a top performer. Like, do you see some of them just totally turn it around?

38:12
Roberta Townes
I would say the earlier to identify, the better we see in regards to a chance for a turnaround when it's been months and then, you know, we reach out and say, hey, 30 days. We have 30 days to kind of turn it around because we're kind of at the end of a life cycle of something and at that point they do some things. It's too late. In all honesty, there's not much you.

38:31
Daniel Scharff
Can do in 30 days, right, to even like try to deploy content or get coupons or get into that promo cycle, right?

38:38
Roberta Townes
And then when you have that early conversation, the goal from there is really we're not expecting to see you go from wherever you are today to that actual sales goal and weak. But we do are looking for consistent growth, right? So as you're turning on those levers, like, what does it look like for buildup? But to your point, some people, it's just not a fit, right? We think it is on both platforms, but the consumer is telling us that.

39:00
Daniel Scharff
It'S not makes sense. So just as you're thinking ahead now and just thinking about a lot of the innovation that you've seen, are there any particular kinds of products or attributes that you're really interested in right now? Like maybe you haven't seen the perfect product in these categories, and if you know, hey, there's somebody out there in radio land that maybe has this kind of an offer. Yeah. Whether it's a certification or a specific kind of consumer, you're trying to find more products for any big opportunities in GNC. And the market overall that you are.

39:29
Roberta Townes
Seeing, definitely when it comes to functional foods and beverages is ultra important right now. We're seeing that trending. We're looking for more products to support that. So how can I, within my beverage, get more focused? How can I, within my food, support my gut better? So those are components that we're looking for in good quality tasting product as well, because that's number one, it has to taste good. And then I would say better for you. Snacks. So traditionally, in the past, were really focused on kind of protein bars was kind of legacy, but now we know consumers are looking for just better for you in the avenues of their daily snacks. So more growth and opportunity in there. I'm always looking for newness to support that.

40:10
Roberta Townes
And then when it comes to wellness, this whole category of, like, longevity and anti aging is ultra important. So what are those build outs, just, again, for people to kind of live and age better?

40:21
Daniel Scharff
Are demos. A big part of brand strategies for GNC is do you like people doing demos? Do you prefer more kind of the out of store, like digital influencer type stuff? How do you view the role of demos?

40:31
Roberta Townes
I would say demos are significantly important, especially when it comes again to items that you need to taste and feel in order to understand if it fits your regimen and your routine. So if you have, whether it's in a specific market that you have a team, or even when it comes to a national opportunity, like connecting and getting out there right in front of the face of the consumers and giving out some samples, talking about the brand, is the best way to really garner some excitement and really grow the brand.

41:00
Daniel Scharff
And I just bet once you can attract some of the GNC consumers who do have such strong routines, if they like it, okay, you're in their routine now. You're good to go. There's also something really interesting to me about when you see a product, like at a gym, for example. So I'm out here in LA, and I'll go to the equinox and Celsius is the only thing that you see on the floor there. And that's been true. And it's so reinforcing for the brand because it's okay. People start taking Celsius to the gym, then you see it at the gym, then the gym carries Celsius, and then that's the only thing you're going to see there, right. It's like a very reinforcing cycle.

41:33
Daniel Scharff
And so, you know, it just seems like stuff that is for health and gym goers, health and wellness oriented people, like, their products are going to be pretty visible out there. They're going to be consuming them in public a lot of the time. And people look to them as idealistic, probably, or aspirational if they have those good routines and like, okay, I'm interested in what products they're using and I can see it because they have it with them at the gym. So it just seems like such a high value consumer to get in front of. And if you can get your way to them through demos, it seems like that would be a pretty effective.

42:03
Roberta Townes
And I think too, they are the ones as well to tell their friends about it too, right? They're trying the product and then they're like, oh, I found this great new, you know, energy drink or protein bar that tastes amazing and makes me feel X, Y and Z, and then their friends are then buying and it just becomes that cycle. So definitely any opportunity to demo and showcase your brand is super important in any avenue.

42:24
Daniel Scharff
Yeah, I remember I used to work for a company that made plant based eggs. So it's like a breakfast food, basically. And I was like, I think one of the big problems for us is breakfast is not viral. There's no virality to it because during the day, a lot of times you'll talk about something that occurs to you, that comes up. You're mainly at home when you're having breakfast, right. And there aren't a lot of triggers to remember, like, oh, there's a cool breakfast food that I should tell you about when you're out and about for the rest of the day, right? The same way where if you're at, like the gym, you'd be like, oh, I have a cool, you know, something that you would like to have at the gym that you would talk about.

42:56
Daniel Scharff
So it was just kind of a memory that I had of like, man, yeah, okay, like, products that are mainly consumed at home when no one else is around. Those are kind of tough ones. Ones at the gym, like social places, people who like to talk about their products. Like, whoa. Yeah, now you got a chance.

43:10
Roberta Townes
Yeah, that's true.

43:12
Daniel Scharff
All right, so, Roberta, really, those are all the main questions that I wanted to ask you. It has been so cool to get to chat with you during this podcast episode and then also just to get to know you through this awesome partnership that we've had around the next big thing. And I am so excited for everybody to discover these very cool people who are getting the chance to be the next big thing. So really look forward to telling everyone about that. And Roberta, I think you mentioned LinkedIn. Then, I guess is a pretty good way for people to follow you or try to reach out to you, right?

43:42
Roberta Townes
Yeah, definitely. Definitely. Message me on LinkedIn with any of those hot, trending, and innovative products.

43:47
Daniel Scharff
Amazing. All right. Or maybe if you're really lucky, you'll get a cold dm from her on Instagram. And just know that it's not a bot. It's actually legit.

43:55
Roberta Townes
It's legit.

43:58
Daniel Scharff
All right. Thank you so much, Roberta.

44:00
Roberta Townes
Thank you. Thank you so much for having me.

44:04
Daniel Scharff
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 fantastic on Spotify music. On behalf of the entire startup CPG team, thank you so much for listening and your support. See you next time.