Justin's: How I Built A Peanut Butter Company And Sold It For $281 Million
Вставка
- Опубліковано 10 кві 2024
- Justin Gold put his homemade nut butters in Whole Foods, but still couldn't turn a profit. A 2006 mountain-biking ride inspired a new product that put Justin's on the map. For more on how Denver and Boulder have rebuilt themselves as centers of business and industry, check out CNBC's primetime special, "Cities of Success: Denver & Boulder," premiering Thursday, April 11 at 10pm ET/PT.
Produced by: Zach Green
Senior Managing Producer: Eric M. Clark
Camera: Oscar Molina, Van Applegate
Audio: Drew Levinson
Animator: Elham Ataeiazar
Reporter: Andrea Day, Tom Huddleston
Additional Footage: Getty Images
Subscribe to CNBC Make It.: cnb.cx/2kxl2rf
Want to make extra money outside of your day job? Take CNBC’s new online course How to Earn Passive Income Online to learn about common passive income streams. Register today and save 50% with discount code EARLYBIRD: cnb.cx/3Is19fx
About CNBC Make It.: CNBC Make It. is a new section of CNBC dedicated to making you smarter about managing your business, career, and money.
Connect with CNBC Make It. Online
Get the latest updates: www.cnbc.com/make-it
Find CNBC Make It. on Facebook: cnb.cx/LikeCNBCMakeIt
Find CNBC Make It. on X: cnb.cx/FollowCNBCMakeIt
Find CNBC Make It. on Instagram: bit.ly/InstagramCNBCMakeIt
#CNBC
#CNBCMakeIt
#foundereffect
Justin's: How I Built A Peanut Butter Company And Sold It For $281 Million
CNBC, PLEASE DON'T EVER STOP THESE EPISODES OF FOUNDER EFFECT ETC ALL THE OTHER SHOWS ON YOUR CHANNEL.... WE LOVE IT!!!
yes these are awesome inspirational stories, we have tons of food entrepreneurs succeed as well its an amazing environment.
Agree.
Agreed
I went to school in Boulder in the 2000s and everyone ate Justin’s peanut butter and almond butter. They were also super supportive of the community and donated products to lots of different events and organizations. I remember seeing their chocolate peanut butter and almond butter cups for the first time and was super impressed by their creativity and willingness to try new things. Super happy for their success.
I would have loved to taste his earlier versions. The current version has palm oil, which they probably thought was necessary for scaling up the company. Its sad because it cheapens the integrity of the product. These days, a premium nut butter is made just with nuts, no added oils or filler.
My guess, is that to scale you have to figure out a way to make an emulsifier. I do think that most people do not like the oil separation and palm oil would be an easy way to mitigated this from happening too much.
I make a shake every day with peanut butter. When I have to use the Justin's it is very bland.
@@KOSMOinfinite the main reason is palm oil is super cheap. I'm from a country producing palm oil. Thanks for using palm oil. I get it we all don't want cheap oil in our diet, but your buying habit decides businesses' decisions. As long as people keep buying products with palm oil in it, businesses are gonna keep using it.
This was some of the most disappointing peanut butter I have purchased, and also the most expensive. It tastes like smooth putty. Whole Foods has grinders which are 100x better.
I've eaten early Justins peanut butter before. It was literally just peanuts. It was not very good. It was like eating ground peanuts in oil basically..
Also their branding was really weird like the back said something along the lines of his wife was named Justin, his kids were named Justin, his dogs were named Justin.. The peanut butter was like $8
He was "lucky" to have the right idea at the right time. There was not so much competition at that time and it was easier to place a new product. The other main leg on his success was the initial credit of 75K for a roommate's parents. I guess banks were not interested and he had no funds himself to finance that.
This is where most dreams shatter. Unfortunately.
He seems to be a very nice humble down to earth guy.
I agree, just as the non-meat wave was starting to peak. In regarding to loans: Bank I don't think would touch this stuff. They want slam dunk businesses for loans or business with lots of cap-ex/equipment that they can repo if things go south. What I notice that lots of these business need the "Bank of Family and Friends" to get that initial funding. It appears to be important to have a strong network and base. Not all come from families with lots of resources, so friends and other people in the network can bridge that gap if needed.
I agree, but I also know a TON of people with 75K to start something and they would never be as successful as this guy. He's clearly very smart and mastered the business in no time, so props to him
@@nach000x Yes, that's for sure. He had his vision and followed through. I know a lot of people with a lot of money, but they're all afraid to risk something, because they might fail. He was not successful because of the 75k, but he could bring his business to another level. Without it he would probably still selling selfmade peanutbutter on farmers markets.
you make your own "luck"
@@psk305 i know that it was a lot of hard work, but my point was would he be able to go on with his business without the 75k loan? Sometimes you just need money to step up and if you don't have that... it's the end for the most businesses.
Wow that’s nuts
He seems like a down to earth dude, even admitted that he got lucky. Salute.
Similar to Steve Jobs. He was raised in Silicon Valley. What if he had been raised in Akron, Ohio or Tampa, Florida?
In the Bay Area he could easily reach out to heavy hitters in gaming and computers like Atari and HP.
The stars aligned.
I would buy Justin’s peanut butter, but I don’t like the palm oil in it.
1:50 "using his food processor Justin began grinding his own nuts..."
😂
😂😂 You win UA-cam comment of the week 🏆
Somebody had to
My ex-wife did that to me for 10 years
That part made me laugh so hard!!!
Justin’s modesty is great. He might’ve had some luck, but if he wasn’t prepared then the opportunities wouldn’t have been available for him. Excellent story!
"Plant Based Experience" He's not Humble or Modest, just ask him why he doesn't eat Meat, and I'm sure you'll see the problem.
Way to Jerk someone off, you call a "Nutbar" a "Plant Based Experience". That tells me all I need to know about the type of Person you are.
@@StanHowse my comment had absolutely nothing to do with his diet. I was referring to his journey as a business owner. Your written comment tells me that you need an English refresher course on punctuation, reading comprehension and you might as well throw in a listening course too. And it sounds like you definitely need some therapy and a lot of hugs. You have a lot of aggression. But that’s fine because a lot of us do.
As an owner of a similar nut butter brand, distrupting another area of the category, I have to say that I love his passion and how he was able to sum it up in a nutshell (pun intended). We are probably where Justin was in 2012-13 talking to WF, Wegmans, Target, testing out products in farmers markets across SoCal and getting traction nationwide but if I had to stress one thing from this, it’s that you gotta be in the right place at the right time. Hard work is expected but it means nothing without luck. And you increase your luck by being out there and staying relevant and consistent. So if you’re reading this and trying something on the side, keep doing it. It only takes one good person to look into your direction sometimes and it just snowballs after that. Good luck!!
markanin adi nedir reis merak ettim. basarilar dilerim
Thanks for adding the comment. Was good timing for me to read it.
wise words indeed… just out of interest, what’s your PB company called? and where can we buy some?
I suggest you watch the latest video of “Diary of CEO”
Something about $100 million dollar company
They have some good tips and ideas that could probably shift your mindset.
Couldn’t agree more, best of luck and continued success #TakeYourShot 🫚🫚
4:29. This is where most peoples journey ends and the dream dies. Borrow $75,000 requires self belief and willingness to take risk when the time is right. Most people are too afraid to fail and never do anything.
Well, if you think about it you can mitigate the risk pretty much. If you flop, you're not gonna lose the whole 75000. You buy a second-hand machine for 75000 in order to check the viability of the product. If it sucks and you never get any sales, you re-sell the machine for around the same price, or a little less. But it's definitely worth it to attempt, even if it will cost you like 5000 dollars of savings when you resell it a little lower.
Have to take that risk. It's just that most people see a big sum of money and are too scared. Investing 75000 without any backup plan would be stupid.
classic boulder, just need a roommate with a parent to give u 75k llol
from my experience people with money are more than willing to loan someone or even gift if they have a clear and concise plan to make it back with the determination to make it happen.
Right money in wrong hands and you've got either a junkie or tragedy...
Love this series, always inspired by these entrepreneurs! thanks cnbc
A very nice personality and a honest view of his success. To build a company is not easy sometime there is luck.
Humble genuine dude. Good on him.
Love this story! Thank you for sharing 🎉
AMAZING VIDEO, AMAZING QUALITY, AMAZING EDITING, AMAZING IMAGES
What an inspirational idea, venture, person...
Good to see how humble he is.
The honey peanut butter is the only one that I use. I literally cannot get enough of this peanut butter. I'm so glad he made this company!
He is a special and humble individual.
More of these stories and less of tech guys who create an app and are now billionaires.
I’m sick of seeing tech guys as well. No hate on them but I wanna see more of this
Exactly
@Mryetti26 That's because people overlook the 'tech' failures...
From what this video shares, this was Justin's first business and it was a very successful exit... That is extremely rare.
I sold my first business, then thought it was easy and had two massive Ls...
Wow so inspiring story, he made a known product even extraordinary.
Thank you CNBC you guys are building the Future I am sure.
Love founder effect! This is a great episode.
what a humble guy, self-awarely attributing his success to luck
This guy touched my heart
Wow is he awesome
What a great yet humble guy :)
what a cool guy. very inspiring
The honestly and humility of his "lucky" comment was really gratifying to hear. Success within a system like capitalism requires luck, and yet it's so rarely acknowledged. Focus, consistent effort, a willingness to adapt, and, yes, luck. Thanks, CNBC, for leaving that last point in.
finally someone who got super rich with a great idea/product who admits that's still also a lot of luck to achieve it. Most billionaires or multimillionaires are like "everyone can achieve that" but most of them had the luck to be born in a rich family to get the capital, meet the right person at the right moment or whatever else. In his case without the 75k from his mates parents he may have never achieved it because another company could have learned about it before he had the chance to sell it to the bigger stores. It's still 100% his achievement but there are millions who have awesome ideas but only 1% of them will really have the luck you need not to get stomped before you can realize your idea.
Great content
Humble
He started the business for peanuts and ended up securing the whole nut bag. How ironic a vegetarian sold out to Hormel.
This guys my spirit animal. I swear my third ideal to him.
Using his own food processor, Justin began grinding his own nuts.
How subtle.
😂😂😂
except for this video i have never heard of the product and never will see it again
Central Market by HEB All Natural Nut Butters have 1 ingredient, the nut and no added sugar, oil, or other ingredients.
Justine's definitely a "level 5" ceo
Beautiful 🎉
Nut butter squeeze pack just sounds wrong! LOL
Min 4:05…pretty sure the writer is proud of that line
Fun fact: Korn's song titled "Justin" is named after this guy.
Jonathan Davis a big fan of peanut butter.
Honestly the fact that he was hustling working retail and as a serving may have been a blessing as it likely gave him blocks of time during the day where he could do things such as product demos at the stores during standard working hours.
What they forgot to mention was a huge part of there company was when they did a collaboration with Starbucks to be in every store across the nation. I am surpised they didn't mention that. Food trays, PB Cups at all the registers as well as at one point selling the packets there. I would say the eyes from starbucks made them huge. Millions and millions stood in line daily looking at there products directly in front of them not at a store missing the product on the shelf.
necessity is the mother of re-inventions
Is this where Reeze‘s come from? The cups in the end remind me of it
This is everything good about America
I can't tell if Justin's is actually better than the others but it's awesome and they get me to pay like $15 for a jar at my local store in NYC every time.
I am hungry just by watching this video. Well done!
Love his humility
If the product was cheaper, I'd buy it
Does no one remember the yogurt style squeeze peanut butter packets? 😂
The story of Justin is super inspiring, showing the power of pivoting and innovation. Sometimes, the key to profitability lies in streamlining operations and focusing on the product's unique selling proposition to differentiate it from competitors. Also, never underestimate the value of packaging and branding in creating a premium perception.
I've tried it. I don't plan to buy it again.
Skippy Creamy Peanut Butter actually uses better ingredients. I stopped consuming Justin's shortly after trying it and reading the ingredient list--it uses palm oil. No, thanks.
Palmoil is bad? How ?
@@Yefro72processed oil. bad for your body to process.
Skippy’s uses palm oil too lol
@@andrewgalvan5852 palmoil is just fine. Dont let the soya industry lie to you.
Its not oil, it the hydrogenation of the oil that is hard for your digestive system to breakdown
$281 million? That's nuts.
Peanuts😮
Real life Owen Wilson (Hansel) vibe from this guy
That Justin’s so hot right now.
I prefer Petter Pan. Crunchy. Thanks
And they contain Palm Oil lol hahahahaha
Are all these stories that good? or they gave learnt to spice the stories to sound good which is still selling
Horneo owns skippy. They most likely want as much of the market as possible when it comes to peanut butter. Keep competition low with just JIF.
The almond butter is now $14.99. Sheesh
It's incredible how globally connected we are right now. Me , from Medellin, Colombia, witnessing such business idea(healthy, profitable and just delicious) while being a peanut butter addict since my vegan years experiences. Now this idea is into another whole level, feeling inspired by it to bring it into this country and chance our feeding habits for good.
100%!
helps to have rich friends and family
I miss when Justin's used to be in a glass jar.
Got it. Now I just need a roommate who’s parents are rich enough to give me 75k.
What a genuine person. Love it
Then sold out to dirty Palm Oil, that’s all I needed to know about the corporation that runs it now. Hats off sir
It's a good tasting nut butter and I've always enjoyed their butter cups as well. But I do wish it was a cleaner product, that didn't include palm oil.
It's not like it's not possible either. Because there's plenty of almond butters like from Whole Foods 365 brand and Costco's Kirkland brand. That's made with nothing but nuts and salt.
HEB has their own nut butters here in Texas that I swear by, under the ‘Central Market’ name. Also just peanuts and sea salt-or I usually get the unsalted variety, which is just dry roasted peanuts blended in their own natural oil.
However, consumers buy into the flavor, taste, branding and marketing-and in that way Justin’s has always stood out on the shelves. It’s sort of like the “luxury” peanut butter for the Tesla driving crowd.
Women also love that name because of Timberlake and Bieber.
My favorite chocolate brand!!
It is not organic peanut butter, per what was stated at the start of the video.
1:52 grinding what??
this series can be dog water sometimes but this was a great story. Humble guy
wow
What a nutty story.
Love this series 😁
Love this it’s a very inspirational story
but they use crap ingredients.
I used to eat this while a student in college
"it is a trick andre, dont you see?!"
"We do it so people feel like it is an open economy and make something. Come up with new ideas."
Do you hire them?
"Sometimes. Sometimes they don't really match and we take their idea, make it better.""Sometimes we want them to be here so they can come up with more ideas later on.""Sometimes we just come up with all the good ideas inside and I really don't know what the outside is for."
"No! We need them. For money, transfers, who r es.
1:52
Never been a fan of this brand, especially with palm oil as a main ingredient....
"nut butter"😂
Insane! Very inspiring ❤
Most of these Rags to Riches stories are fake. Don't fall for the okie doke.
Step number 1: Be rich enough to have friends with parents who have $75K disposable income to fund an idea you got during your leisurely mountain biking. Great video though. Love organic PB.
Borrowed 75,000 from a friends parents ? The privilege lol
Was looking for this comment 😂
It should be noted that Boulder is very affluent.
Stories like this that are meant to motivate the average person fall flat when you get to that part. Most people don't have someone's parents with $75k laying around.
There are many people that are successful and don’t receive funding. If you have the drive and determination you can make the business work regardless. Justin would have found another way. There is always a few that will comment and bring privilege into it and those people will never be successful.
@@hetalia74 that wouldn’t have stopped him nor anyone else that has the drive and determination, it would have just been another hill to climb over.
Plenty of hard work. The real luck was having someone that could give him 75 grand. Without that, who knows how long it would take to save that much. Or if the company lasts without that loan.
Hate the sound played every time a dollar figure is shown on a card, but very interesting video otherwise!
love that he dresssed up like a peanut
The Dude is Nuts 😏
Everything thanks to justin bieber and timberlake haha
That’s not a small detail. It’s a very relatable, favorable, trustworthy name-especially for female consumers.
That’s not a small detail. It’s a very relatable, favorable name.
People saying and moaning about Palm Oil - I don’t think Justin gives a fiddle - don’t like it just don’t buy it - simples 😂
Peanut is not a nut.
I love their almond butter but I stopped buying it bc of the palm oil
In South Africa we have two major brands in nut butter (jar and squeeze packs) and I could not live without them. Cocoa Macadamia, y'all.
In my country some rich people would use iphone and most poor people or barely survive use an iPhone (new or used) LOL 😂
There's sugar in this peanut butter and other questionable ingredients.
This story is just a little too neat and tidy. Pretty sure he needed more money than the $75K he got from his friend's parents (which itself is not a small detail) so where'd the rest come from?
75k is a ton of money why are you “pretty sure” he needed more?
People literally start multi million food brands with like 3-4 thousand
Not to mention it was 75k in 2006 ... thats like 120k in today's dollars believe it or not. It wasn't a small amount of money then or now.
@@MrGetItDone7 $75K is peanuts in regards to a Business Investment. Marketing Alone will eat that up in a day.
That don't include all the Business expenses
And no successful company especially in food is starting with ONLY $3k-$4K start up capital. Might as well believe in Santa Claus and the Tooth Fairy if you think that is real
Different year from today
So what do you do with the rest of your life. LOL!
Sheesh that shelf shot of the jars... $11 for a jar of peanut butter? No wonder y'all are broke.