Cynthia Tice, the founder of Lily's Sweets, ventured into the chocolate arena at nearly 60, driven by her quest for a healthier sweet fix. She shares her rollercoaster journey of innovating sugar-free chocolate using stevia, revealing the trials of product development and co-founder conflicts. Cynthia discusses the pivotal moment when her brand caught Hershey’s eye, leading to a $425 million acquisition. Her story highlights resilience, the impact of personal experiences, and the growing demand for healthier indulgences in a changing market.
Cynthia Tice launched Lily's Sweets at nearly 60, inspired by the growing health awareness around sugar and its alternatives.
The brand initially struggled with product development and co-founder conflict but thrived after successfully blending Stevia into chocolate.
Lily's Sweets attracted Hershey's acquisition for $425 million, highlighting the importance of founder involvement during post-acquisition brand management.
Deep dives
Cynthia Teich's Journey into Entrepreneurship
Cynthia Teich ventured into entrepreneurship later in life, launching her brand, Lily's Sweets, at nearly 60. Initially uncertain about building a brand herself, she found inspiration in the growing awareness of the health risks associated with sugar. Her background as a food consultant allowed her to identify a gap in the market for satisfying, sugar-free chocolate bars made with alternatives like Stevia. The instant popularity of her products upon hitting shelves only reinforced her decision to embrace this new chapter in her career.
The Rise of Sugar Alternatives
There has been a surge in the popularity of sugar alternatives over the past decade due to increasing consumer awareness of the negative health impacts of sugar and refined carbohydrates. Alternatives such as Stevia, erythritol, and allulose have gained traction, leading to the emergence of a variety of snacks, particularly low-sugar chocolates. Since 2017, this category has seen significant growth, with sales expected to surpass $350 million by 2024. Lily's was at the forefront of this trend, launching in 2011 when the concept was still emerging.
Overcoming Early Challenges
After initial development struggles with creating a palatable sugar-free chocolate, Cynthia faced a significant setback following a fallout with her co-founder, Elizabeth. The duo had started off developing a sugar-free soda but pivoted to chocolate after realizing they could not compete with large beverage companies. Despite the challenges, Cynthia persisted, leaning on her industry experience, and eventually discovered a way to effectively blend Stevia with other ingredients to create a marketable product. By 2012, Lily's chocolate bars were introduced to Whole Foods, which marked a pivotal moment in the brand's journey.
Navigating Legal Battles and Growth
Cynthia's path was further complicated in 2015 when her former co-founder filed a lawsuit claiming ownership of the brand. The two-year legal battle was emotionally taxing, but Cynthia remained focused on the growing success of Lily's, which achieved remarkable sales growth after its initial launch. With a relatively small team, Cynthia managed to position Lily's as a leader in the sugar-free chocolate market, fostering strong sales momentum over the next few years. Despite the stress of the lawsuit, the brand thrived, eventually catching the attention of larger companies interested in acquisition.
Acquisition and Evolution of Leadership
In 2021, Hershey's acquired Lily's for $425 million, confirming the brand's success and reinforcing Cynthia's belief in her vision. As the company entered a new phase, Cynthia stepped back from day-to-day operations, allowing a new CEO and team to guide Lily’s growth while she continued to support the brand in a more ambassadorial role. This transition illuminated the importance of founder involvement post-acquisition and the potential for balance between maintaining the brand’s mission and efficient operational management. Cynthia's experience proved invaluable in navigating this change, ultimately leading to the brand's expansion into major retailers nationwide.
When it comes to launching a multi-million dollar brand, Cynthia Tice was a late bloomer. Nearly 60 and looking for a healthy way to satisfy her love of chocolate, she set out to make an indulgent, sugar-free version, sweetened with stevia. After some disastrous early recipes, Lily’s Sweets launched nationally in Whole Foods, with just four employees. Cynthia correctly predicted that a growing number of shoppers would willingly pay for healthier treats, and just ten years after launch, Lily’s Sweets caught the eye of Hershey’s, which acquired it for $425 million.
This episode was produced by Sam Paulson with music composed by Ramtin Arablouei. It was edited by Neva Grant, with research by Katherine Sypher. Our engineers were Robert Rodriguez and Kwesi Lee.
