Soley is the fastest-growing natural fruit snack brand in the US and their unique approach saves 1.6 million pounds of fruit per year. I sat down with Solely's founder, Simon Sacal, to discuss this extraordinary journey from attempting a fat-free potato chip to pioneering a unique and sustainable vertical supply chain for disruptive fruit-based products. Sacal reflects on the challenges, successes, and future innovations of Solely, emphasizing the brand's commitment to long-term growth and providing wholesome, clean alternatives in the food industry.
Dave Knox: Let's begin with the founding story of Solely and your journey with the business.
Simon Sacal: In the early 2000s, precisely in the year 2000, I ventured into the food industry, initially focusing on creating a fat-free potato chip, a healthier snack option. My aim was to make it a marketable product, resembling popcorn, suitable for sale in malls and other venues. At the time, I was just 17 years old, a budding engineering student in Mexico. With my father's assistance, I delved into this venture, driven by the realization that there was a growing demand for a healthy yet indulgent product, especially among the younger demographic frequenting malls.
Back then, the prevailing definition of "healthy" revolved around low-fat or fat-free options, and the food industry's holy grail was producing a tasty fat-free potato chip. The landscape shifted around 2009-2010 with the rise of the Atkins diet, diverting attention from fat-free products. Consequently, we sold part of that company. In the process, we became involved in lunchbox programs in Latin America, particularly in Mexico, where the government mandated including fruit in children's breakfasts. This seemingly routine decision presented challenges due to the lack of infrastructure in many rural schools—no refrigeration, limited access, and even a shortage of running water.
To address this, we initiated a spinoff from the snack company, establishing IHS and subsequently creating Fruitex. This new venture aimed to develop a solution to distribute fruits efficiently to schools. We patented a technology that produced small fruit bars, initially focused on apples. This patented technology maintained the fruit's properties without losing nutrients through a low-pressure, low-temperature process.
As the demand for our fruit products grew unexpectedly, we encountered sourcing challenges, primarily due to the seasonality of apples. To overcome this, we developed a unique drying machine and process to ensure a year-round supply. During this period, my brother Gabriel, while experimenting with our R&D team, discovered a method to create a pineapple paste without additives—no sugar or anything else. This breakthrough offered a product that retained the authentic taste, smell, and appearance of pineapple, a feat challenging in food processing.
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Around 2014-2015, the industry buzzed with the concept of "clean," and we found ourselves with a manufacturing plant boasting a remarkably clean and natural product base—fresh, organic fruits. This discovery prompted us to explore the potential of developing a product aligned with the clean movement. Leveraging our vertically integrated supply chain, distinct manufacturing facilities, and proprietary technologies, we created a unique product that embodied the essence of natural and indulgent goodness.
Thus, Solely emerged as the culmination of our collective efforts and innovations.
Knox: Given your extensive history and the initial reluctance to enter the consumer packaged goods (CPG) business, how did you and your brothers decide to take the leap into launching Solely, considering the advanced technology and vertical integration you had?
Sacal: It's a great question, as we had prior experience, notably with the fat-free potato chips. Initially, we recognized that, despite Mexico being a potential market, it might not be the ideal one for such cutting-edge products. Understanding the challenges of this journey, especially eight years ago, we aimed for a strategic approach. Simultaneously, we approached Starbucks in Mexico, presenting a mock-up of our product under the name "Solely," emphasizing the exclusive use of one fruit per bar, like "Solely mango" or "Solely pineapple." In our meeting, the Marketing Director was impressed, asking how quickly we could supply the product, and they became our first retail partner.
Concurrently, we conducted a small test in the Bay Area through 2016 with the help of a friend/part-time salesperson. This testing phase reaffirmed the product's appeal, showcasing its unique combination of indulgence and health benefits. Recognizing its potential, we returned to the lab in 2017, securing additional funding and pivoting the concept. Unlike previous launches with co-manufacturers, we collaborated directly with farmers, waiting for the season to ensure the perfect ripeness of mango, pineapple, and banana—the fruits we initially focused on. Amidst this process, I raised more funds and made a significant move. While my brothers continued managing our existing businesses in Mexico, I relocated to San Diego in late 2018 to officially launch Solely and make our mark in the CPG business.
Knox: The evolution from fruit jerky to fruit gummies, dried fruit, and now pasta is fascinating. Could you elaborate on how you navigated this journey?
Sacal: Absolutely, it's an incredible journey. The fruit jerky, as you know, is a unique and well-received product, evident from our high repeat rate in the category. We officially launched it in September 2019, and it gained traction quickly. Leveraging our expertise in research and development, and given our existing business in dried fruits, transitioning to dried fruit was a natural progression. Our company stands as one of the largest producers of natural, tropical, dried fruit globally. This allows us to offer Solely the best quality at the best price, a significant advantage in a market where quality often gets overlooked. Our dried fruit line includes unique products such as organic mango with a cacao drizzle and pineapple with chili and salt, showcasing the versatility of our offerings.
While expanding into dried fruit, we encountered the challenge of excess mango remnants around the pit and peel. Our innovative approach led us to develop a technology using these mango parts, working with pectins to create a gummy texture. This resulted in our fruit gummies, a product that perhaps hasn't received enough recognition for its uniqueness. It provides the gummy experience with the only ingredient being organic fruit, making it an ideal choice for both children and adults seeking a clean, wholesome snack.
The journey didn't stop there. We listened to market needs and retailer collaboration led us to explore the pasta category. Initially, we developed a shelf-stable spaghetti squash, dried in a special way for easy rehydration at home—a healthy alternative to traditional pasta. Building on this success, we introduced the Fusilli Green Banana Pasta this year, made exclusively from organic green bananas. This pasta offers a taste and texture remarkably close to regular pasta while staying true to Solely's core concept—being good for you, made from organic fruit without added sugar or chemicals.
Knox: You've emphasized the unique patented process and the investment in a vertical supply chain. What led you and your brothers to believe that this approach, despite its challenges and expenses, was the right and perhaps the only way forward for Solely?
Sacal: I always joke and say that I am not sure it was the right one, because it's so difficult and expensive. But I'm sure that it was the only way to go forward. In the food industry, most processes are designed to start from shelf-stable ingredients like flour, sugar, and flavors. Undertaking the challenge of starting from fresh, organic fruit represents a significant leap. The decision to build a vertical infrastructure wasn't driven by a desire to do so; rather, it was a recognition that it was the only way to introduce something truly disruptive.
In the realm of food production, relying solely on co-manufacturers limits innovation to formulations. While formulations are essential and many great companies excel in that, creating a disruptive product with a unique process requires a different approach. It demands more time, investment, meticulous care, and the coordination of numerous individuals. Yet, it's the only way to achieve a truly groundbreaking product. Developing such a product necessitates inventing the process, sourcing the fruit, and establishing multiple manufacturing facilities, as we've done with our four facilities in Latin America, because relying on others won't suffice.
Knox: The journey from the fat-free potato chip to the present has been remarkable, especially the rapid growth in the last five years since introducing the fruit jerky in the US. Where do you envision Solely heading in the next five years as a business?
Sacal: We're just getting started, and I say this with confidence because our household penetration is still relatively low. A significant portion of the American population has yet to discover or try Solely, providing ample room for growth. Our product has consistently demonstrated strong velocities wherever we've launched. The key now is getting more people to try us. The impact is evident when you look at the graphs—every time people try Solely, our baseline grows, and this trend has persisted over the past four years due to the product's uniqueness. We have tremendous growth potential ahead.
We initially adopted a strategy of offering singles, an unconventional approach for the center of the store. The goal was to lower the barrier for people to try our product easily, and it has proven to be incredibly successful. However, we are now transitioning to multi-packs, a move that will alter consumption patterns, not just for immediate consumption but also for home use. Our success in high-volume rotations at clubs reinforces our optimistic outlook.
Our vision is long-term, and every decision aligns with that perspective. Despite rapid growth, we have maintained profitability as a company, contributing to our excitement about the future. Additionally, we have some exciting innovations in the pipeline, featuring new technologies and concepts that align with our DNA of continuous exploration and improvement. We're genuinely looking forward to what the future holds.
