Flooding the market with product just because your brand is growing fast can come back and bite you. Silk was growing double digits, revenue and profit were up, and operating leverage was healthy. Why not expand aggressively?
That is what I thought as I was preparing to launch Silk Nutchello. The marketing team had collected a couple years of consumer research indicating a delicious, blended-nut milk would scream off the shelves.
However, the brand was launching new items within our base business and innovating in completely new categories, stretching resources thin. What could go wrong? We made a large investment bringing Nutchello to market only to see if fail within 90-days.
P.S. – Stretching resources thin is not a path to success, even when your consumer claims your product will kill it in the marketplace. Through Nutchello’s failure, I learned even great companies, that create great products, can’t be successful creating new categories without dedicated focus and effort. Lesson learned.