Koel Thomae, founder of Noosa Yoghurt, shares her journey of bringing a unique Australian yogurt to the U.S. Inspired by a life-changing taste in Australia, she navigated the dairy industry while forging a long-distance partnership. The conversation reveals the hurdles of scaling production and the importance of community engagement. Koel discusses the excitement of moving from small batches to national distribution, highlighting the moments of struggle and triumph that led to Noosa becoming a $200M brand loved by yogurt enthusiasts.
Koel Thomae's discovery of a unique Australian yogurt ignited her entrepreneurial journey, showcasing the power of passion in business.
The partnership with a Colorado dairyman played a pivotal role in overcoming manufacturing challenges and scaling production for Noosa Yoghurt.
Noosa's initial grassroots marketing strategy, emphasizing in-store sampling, was crucial in building a loyal customer base and expanding rapidly.
Deep dives
Discovery of a Unique Yogurt
The journey to create Noosa yogurt began when Coel Tomei discovered a remarkable passion fruit yogurt during a trip back home to Australia in 2005. This yogurt, produced in a small beach town in Queensland, captivated her, prompting a desire to share this unique flavor with the American market. Despite her initial hesitation and lack of experience in the dairy industry, the taste experience lingered in her mind, leading her to contact the yogurt's producers about potential collaboration. Encouraged by her mother to pursue this dream, Coel initiated a dialogue with the yogurt brand, ultimately igniting her entrepreneurial spirit.
Building Initial Partnerships
After securing a license to produce the unique yogurt recipe, Coel faced the daunting challenge of establishing a manufacturing facility and navigating the complex U.S. dairy regulations. She partnered with Rob Graves, a fourth-generation dairy farmer in Colorado, which enabled her to access crucial resources and expertise needed for production. Together, they encountered challenges with the initial manufacturing process, using small 10-gallon buckets that posed difficulties for scaling up while ensuring quality. Their collaboration allowed Noosa yogurt to enter the market efficiently, utilizing Rob's established dairy operation for production.
Gaining Market Traction
Noosa began its market journey by partnering with Whole Foods in Colorado, capitalizing on the growing interest in yogurt as a healthy option. To combat initial skepticism regarding their unique packaging, Coel emphasized in-store sampling, personally promoting the yogurt to consumers and store employees alike. This grassroots marketing approach proved effective, allowing Noosa to create a loyal customer base and expand rapidly within the Rocky Mountain region. As consumers became enthusiastic about the yogurt's taste and quality, grocery orders surged, pushing Coel and her team to scale production efficiently.
Navigating Challenges of Growth
As Noosa's popularity grew, the company faced significant operational challenges, particularly after expanding into the competitive marketplace of larger retailers like ShopRite. Coel and her partners struggled with the financial strain caused by spoilage and high slotting fees, ultimately leading to a decision to withdraw from ShopRite after realizing the relationship was unsustainable. The early years of rapid expansion were characterized by a lack of formal strategy, resulting in internal disagreements on how to manage growth. These challenges highlighted the need for greater organizational structure and strategic planning to position Noosa successfully in a competitive market.
Acquisition and Transition
In 2014, after navigating various growth challenges, Noosa attracted attention from private equity investors, culminating in a majority acquisition by Advent International. This transition introduced a professional management team experienced in scaling food brands, providing the resources needed to further propel Noosa's success. The new leadership helped alleviate tension among the original partners while refining operations and expanding the brand's market presence. Under this new structure, Noosa successfully evolved from a small startup to a multi-million dollar operation, solidifying its place in the yogurt market and paving the way for future growth.
In a small beach town on Australia’s sunshine coast, Koel Thomae tasted a yogurt that would change her life: creamy, infused with honey and piquant with passion fruit, it became an obsession–something she was determined to recreate in her adopted home of Boulder, Colorado. With no knowledge of dairy, Koel forged an 8,000 mile partnership between the Australian yogurt-makers and a Colorado dairyman. Noosa Yoghurt faced a near-death experience as the founders scrambled to meet the pace of demand; but by 2018, the brand was available in 25,000 stores, with over $200M in sales. Today, the company is owned by the food conglomerate Campbell’s.
This episode was produced by Devan Schwartz with music composed by Ramtin Arablouei.
It was edited by Neva Grant with research from Olivia Rockeman.
Our audio engineers were Robert Rodriguez and Gilly Moon.
