All phases
Phase 3

Growing After Your First Wins

By the end of Phase 2, you should have one sales channel that works, a message that makes people buy, and real customers who love your product. Now you start building a bigger business. You are not growing fast yet — you are building the base that allows you to grow.

The goal of this phase

Build proof. Proof that customers love your product, that you know how to reach them, and that the math works.

What to do

Get into more stores

  • Take your best sales numbers and show them to other stores. Real sales data is the best way to get a "yes" from a buyer.

  • Try to get into small chains of natural food stores or specialty stores in your area. Easier than big national chains.

  • Think about working with a distributor (UNFI or KeHE) — a company that delivers your products to many stores at once. A big step forward, but they want to see your sales numbers first.

  • If a holiday is coming (Lunar New Year, Thanksgiving, Christmas), make special gift sets. Gift sets can bring in 30–40% of a brand's yearly sales.

What to do

How Whole Foods decides whether to keep you

  • First 3 months: get logistics right. Make sure products reach every store. No one is grading you on sales yet.

  • At 6 months: real performance review starts. Are you hitting the category's velocity target (snacks: 6–10 units per store per week)? If yes, they may expand you. If no, you get a coaching call.

  • At 1 year: formal warning if you are underperforming. You get an action plan or a SKU reduction.

  • At 18 months: discontinuation is on the table.

  • At 2 years: failed products are removed from the shelf.

  • Reality check: a senior Whole Foods buyer told us 85% of brands that launch at Expo West are out of business within 5 years. Your job is not to be in that 85%.

What to do

Track your numbers

  • Amazon: watch your Best Seller Rank, conversion rate, and number of reviews.

  • Stores: watch units per store per week. If you sell well, ask to get into more stores.

  • Repeat buyers: how many customers come back? Rothea's repeat rate is 15%, normal for a new brand. Most customers (85%) are first-time buyers. Over time, the repeat number should go up.

What to do

In-store demos (giving samples in stores)

  • If you sell in Whole Foods, they have a demo program. You set up a table and give free samples. This can triple your sales.

  • Your product does not need to be on sale during the demo. You just give samples and talk to shoppers.

  • New brands that do demos regularly sell much better than brands that do not. One of the best ways to spend your marketing money.

What to do

Make customers come back

  • Start a subscription (monthly delivery) or loyalty program on your website. Subscribers buy more over time.

  • Ask current customers to tell their friends. Your first 100 customers are your best salespeople if you give them a reason to share.

  • Set up automatic emails after someone buys: a thank you, a tip on how to use your product (3–5 days after delivery), and a request for a review (10–14 days after delivery).

What to do

Plan your sales promotions

  • Whole Foods wants you to run at least 4 sales per year. Each sale lasts about 2 weeks. Your product gets a yellow price tag.

  • You pay for the discount through scan-back: you pay the store back for each item sold at the lower price.

  • The buyer watches if more people buy during the sale, and if those customers come back later at full price.

  • New and small brands often get reduced fees or no fees for these promotions. Take advantage of this.

  • Big shelf changes ("resets") happen once a year. If you want a better shelf position, plan around the yearly reset.

Mistakes to avoid

Thinking "we made it" after getting on the shelf

Getting on a store shelf is the beginning, not the end. Many brands stop trying hard after they get into stores. Those brands fail.

Changing your recipe too early

Do not change your product formula in the first 3 months. You need stable sales data to understand if your product is working. Changing the recipe confuses everyone.

Expecting the store to manage your brand for you

The Whole Foods buyer manages hundreds of products. They will not check your inventory, call your shipping company, or remind you to run a sale. You have to do all of this yourself.

Running out of product

If your product is out of stock for 3 months or more, the store may remove it from the shelf permanently. Running out also cancels any promotions you had planned.

Pitching "we taste better"

Taste claims do not win. Incrementality wins — meaning your product fills a gap on the shelf that no one else fills. Lead your pitch with what is different, not what tastes best.

“Your goal at the end of Phase 3 is not to make a profit yet. It is proof. Proof that American customers love your product. Proof that you know how to reach them. Proof that the math works. That proof is what opens every door after this.”

From the Playbook
One-page checklist

Phase 3 Checklist:

0 / 10

Progress is saved to this browser. Nothing is sent to a server.