The Good Food CFO podcast Sarah Delevan

For a Good Food Business there are many paths to success, and for some that path may include outside investment.
 
But today’s Venture Capital landscape can be difficult to navigate, with high expectations for returns, investors that don’t quite understand your business, and the overall slow down of venture funding in the last year.
 
In this episode, Sarah is joined by Melissa Facchina, Co-Founder & Co-Managing Partner of Siddhi Capital. Growing up in the food industry and working in her father's factory, Melissa went on to support more than 300 food and beverage clients through her first venture, Siddhi Ops. Since March 2020, she has served as Managing Partner at Siddhi Capital, which she co-founded with Steven Finn that manages an early-stage venture capital fund in the food and beverage industry.
 
In 2019, Melissa co-founded, and sits on the board of, a non-profit organization called the Women on Boards Project which was formed to ensure that board seats in the consumer packaged goods industry are filled by diverse women.


Sarah and Melissa discuss the evolution of funding in the food industry. The investment world is tricky, and Melissa didn't shy away from discussing the pressures and expectations that come with it. They dove into the importance of picking the right investors and staying true to your business's core values, especially in today's capital-constrained environment. She emphasized the need for practicality and sound business fundamentals amidst investor pressure for growth. 
 
You’ll hear Sarah and Melissa discuss:
 
Melissa's experience in the dairy factory and her passion for being an efficient operator
The founding of Siddhi Ops and its role in launching, scaling, and de-risking businesses
The challenges of financial forecasting and the need for realistic projections
Investor-created pressure for unrealistic growth targets and its consequences for good food founders
Different life cycles of businesses and the varying paths to success, including the impact of outside investment
 
Bonus Clip from this episode:
 
What you MUST consider before working with an Investor
 
Connect with Melissa
Website: Siddhi Capital
 
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YouTube: @thegoodfoodcfo
Join us in The Good Food CFO Community 
 

Ever encountered challenges with syncing apps to accounting software or using online-only banks?
 
You are not alone! 
 
In this episode, I’m sharing the financial "never do's"  - things that founders should be wary of, and the cautionary tales from my experience as a CFO consultant that I believe are crucial for any business owner to heed. 
 
Chelsea and I discussed:
The problems with syncing apps and e-commerce sites to accounting software
Why you shouldn’t be using new online-only banks without proper research into their reliability, FDIC insurance, and fee structures
The importance of good data management 
My experience with Square's checking account and the challenges of reconciling transactions
The importance of testing financial systems and consulting with financial teams
And More! 
We're compiling a list of "never do's" to save you from extra headaches and work, and we want to hear from you! Your story could be the cautionary tale that saves a fellow founder from financial frustration. Let us know at hello@thegoodfoodcfo.com
 
From our News Segment:
We Need to Talk About Trader Joe’s



Stay Connected!
Instagram: @TheGoodFoodCFO
YouTube: @thegoodfoodcfo
Join us in The Good Food CFO Community 
 

Inclusivity isn't just a buzzword – it's a strategic imperative. Our population is growing more diverse by the day, and businesses must evolve to meet the changing demographics.
 
In this episode, Sarah is joined by brand strategist Kathy Guzmán Galloway. Kathy shows us  that success doesn't necessarily mean creating a product for every niche, but rather making strategic decisions informed by a deep understanding of consumer behavior and preferences.
 
With 20 years of CPG experience, Kathy, known as The Clarity Wizard, has helped hundreds of organizations increase revenue and decrease risk by clarifying their brand positioning. She’s worked with brands like Nature Made, Lay’s, and Chiki Chiki Boom Boom, among others, to turn strategy and data into action. 
 
Sarah and Kathy dive into the intricacies of consumer needs. It's not just about the what – it's about the why behind the choices our customers make. Flavor, serving size, and cultural context can shape product development, pricing, and marketing strategies. Kathy emphasizes the importance of holistic brand strategy and the implementation through your entire business model.
 
You’ll hear:
Why brand positioning is crucial for success in the market, and how brands should align their pricing decisions with their brand promise and target audience.
The importance of understanding the real-life experiences of different demographics
How emotional and cultural nuances can impact messaging and product offerings
The financial impact of understanding and catering to diverse consumer groups
And more! 
 
BABOYOT Member Bonus Clips from this episode:
How to Approach Diversity within Your Organization
More News with a Branding Expert
 
Connect with Kathy
Instagram: @yes_kg_is_me
Facebook: Kathy Guzmán Galloway
LinkedIn: Kathy (Guzmán) Galloway
​​Schedule a discovery call here: www.calendly.com/kathygalloway



Stay Connected!
Instagram: @TheGoodFoodCFO
YouTube: @thegoodfoodcfo
Join us in The Good Food CFO Community 
 

You’ve probably heard The Good Food CFO say “50% is not good for your food business!”
Well today, we’re diving into what that really means.

In this episode, Sarah walks Chelsea through the nuances of profit margin, specifically challenging the commonly accepted 50% target in the food industry. She shows that this one-size-fits-all approach doesn't suit every business and can lead to cash flow struggles and increased reliance on debt. 
 
We look at some examples, and demonstrate how 3 different margins affect financial stability, and emphasize the importance of founders setting their own financial comfort levels and understanding the implications of their margin choices. We also share our tools and resources that will help business owners make informed decisions about pricing and growth strategies.
 
You’ll hear:
The importance of  being in control of your finances and making informed decisions about your business
Why Sarah picks on 50% product margins
How a 40%, 50% and 60% margin can dramatically impact your need to take on more debt in order to grow your business
The things you should consider about running your business at each of these margins 
And more!



Stay Connected!
Instagram: @TheGoodFoodCFO
YouTube: @thegoodfoodcfo
Join us in The Good Food CFO Community 
 

Errol Schweizer has over 25 years of experience in the food industry and was V.P. of Grocery for Whole Foods from 2009-2016. His team grew sales to over US$5 Billion by supporting the launch and commercialization of thousands of new products, many of which are now household names. He has developed plant-based, Organic, Non-GMO and regenerative supply chains and product standards for decades. He was awarded a NOSH Top 50 grocery industry award in 2023 and was recognized with a Retail Game-changer award from Supermarket News and a Lifetime Achievement Award from Hemp Industries Association. 
 
Errol is now a Partner in the leading investor-grade sustainability benchmarking firm, Impakt IQ and has been a board member, advisor and partner for over 30 emerging brands and independent grocers. He is active in regional food policy, is Host of The Checkout Podcast and frequently writes for Forbes.
 
In this episode, Errol joins Sarah for a lively discussion covering everything from how grocery stores make money to the lack of policy enforcement that continues to hurt small food brands looking to find space on the shelf.
 
You’ll hear:
 
How grocery stores make money through promotions, trade spend, and product differentiation.
The business models of grocery stores vary, with mass market chains focusing on everyday low cost and smaller supermarkets emphasizing higher gross margins.
Why product differentiation and innovation are crucial for grocery stores to stand out in a competitive market.
How consolidation, centralization, and the lack of enforcement of antitrust laws continue to create challenges for independent brands
And so much more! 
 
Learn more about Errol:
The Checkout
Grocery supply chains: Understanding why eggs cost what they cost
Forbes Articles
 
Stay Connected!
Instagram: @TheGoodFoodCFO
YouTube: @thegoodfoodcfo
Join us in The Good Food CFO Community

In this episode, The Good Food CFO, Sarah Delevan breaks down the concept of cost of goods sold (COGS) and its importance in understanding the financial health of your business. 
 
We explore the differences between accrual-based accounting and cash-based accounting, and how each method affects the calculation of COGS. We also clarify the distinction between unit COGS and business COGS, and the significance of knowing both. 
 
Then Sarah shares the industry “rules” that she breaks, like including overhead in COGS and emphasizes the importance of keeping COGS elements separate. 
 
You’ll hear:
Why the concept of cost of goods sold (COGS) is crucial for assessing the financial health of a business.
How accrual-based accounting and cash-based accounting have different implications for calculating COGS and understanding cash flow.
The importance of differentiating between unit COGS and business COGS, as they provide different insights into the profitability of a product and the overall business.
Why excluding overhead from COGS allows for a clearer understanding of the true cost of producing a product.
How keeping COGS elements separate and analyzing them individually helps identify areas for cost optimization and pricing strategies.



From Our News Segment
Federal Trade Commission Sues to Stop Kroger-Albertsons Merger
 
Stay Connected!
Instagram: @TheGoodFoodCFO
YouTube: @thegoodfoodcfo
Join us in The Good Food CFO Community