692: I Was Selling Muesli From My Car Boot - Now I Run a $35M/Year Brand
The Foundr Podcast with Nathan ChanShow Notes
Narelle Plapp started Food for Health twenty years ago making recipes for patients who couldn't find allergy-friendly food on any shelf. She loaded her first Woolworths order by hand - 14 pallets that showed up via fax and had to be paid on delivery, funded by $13,000 from her parents. One SKU eventually did over $2 million in a single retailer. Then she did something most brand founders never attempt: she borrowed $8 million, bought a paddock, and built her own factory. Nine years later, Grain and Bake is a $35 million business - targeting $45 million this year - manufacturing for some of Australia's biggest food brands, running 24 hours a day, five days a week.
In this interview, Narelle breaks down what it actually costs to manufacture an allergy-friendly bar, the brutal reality of retailer margins most founders don't see until it's too late, and how she convinced the bank to back a factory before she had a single confirmed customer.
What you'll learn in this interview: • How she got her first Woolworths ranging by making sure friends and family bought out every trial store • Why she borrowed $8M to build a factory on a paddock - and the soft commitments from brands that got the bank across the line • What it actually costs to manufacture an allergy-friendly bar - the hidden 10-hour cleans, swabs, and 8-person cleaning crews most founders never budget for • The $0.40 per bar reality - and how to work backwards from RRP to know if your margins will survive retail • Why retailer category margins have jumped from 35% to 55% minimum over 20 years - and what that means for your P&L before you pitch Coles or Woolies • The 13-week clock: how long you have to prove velocity on shelf before you get cut • How a $4M investment in automated cartoning increased her line output by 30% - and why she passed the savings to her brand clients • Why she trawled Europe to find the right oven - and what it takes to commission a factory when you've never built one before • The Grain and Bake client model: why manufacturing for other brands makes her a partner in their success, not just a supplier • What she'd tell every CPG founder before they pitch a retailer - the whiteboard session that changed one AFL footballer's entire business plan
If you're building a CPG brand, trying to understand the real cost of manufacturing and retail at scale, or just want an unfiltered view of what Australian food manufacturing actually looks like from the inside, this conversation will fundamentally change how you think about supply chain, margins, and what it takes to build something that lasts 20 years.
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CONNECT WITH NARELLE PLAP Instagram → https://www.instagram.com/narelleplapp/ LinkedIn → https://www.linkedin.com/in/narelle-plapp-27b3771a/ Website → https://grainandbakeco.com.au/
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