Companies across the CPG spectrum – from large conglomerates to one-woman-shows (as we are about to hear) – have been pushed to take a more critical look at their assortments in recent years and shift focus to what is performing best. But as you rationalize SKUs and look for your new path forward, how do you know it's time to throw in the towel on one idea and start innovating again from scratch on another? For Xeba Zareie, founder and CEO of gut health pudding brand Preme, it became evident once she felt her “energy [was] no longer being used to the best of its abilities.” “There comes a time when as a founder, you’re going down a route and you can kind of see that that route is actually not going to meet your vision that you want to achieve,” Zareie said. That’s what led Zareie to begin looking into drink mixes nearly a year ago. In September she put Preme fully on “pause,” halting pudding production and distribution as she geared up to pivot into a new, higher-margin aisle. The brand relaunched direct-to-consumer on Friday with three drink mix SKUs that will be available for a three-month limited test run online before moving into retail, Zareie told Nosh. Her big idea is to build a platform around gut-friendly products for all, but in order to do that she first needed to be able to reach as many people as possible (read: DTC). By putting its original, premium-positioned, cold-chain pudding line on hold and shifting to a shelf-stable product, Zareie believes Preme can prime a more realistic path to profitability while effectively scaling its mission and impact. “I’m such an idealist,” said Zareie. “As a founder, I’m [trying to] bring my idealism into reality. But I think [I’ve learned] we have to meet reality where it’s at sometimes.” Nosh Insiders can access the full story to learn how Zareie has repositioned for long-run gains. |