Twrl Milk Tea Co-Founder & CMO Olivia Chen Shares Essential Lessons On Setting Foot In Famed Retailer Costco - AHN Media Group

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September 23, 2022

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Two mom-friends and milk tea lovers Olivia Chen and Pauline Ang have capitalized on the early success of their milk tea company by sending samples to the head office in Costco which lead to launching their product with the retail giant in just three and a half months.

“We are still pinching ourselves that our Twrl’s Taiwan-Style Black Milk Tea is now in Southern California Costco!” Olivia says, “We’re starting with 3 locations: Irvine, Monterey Park, and Tustin (2700 Park Avenue).” 

Pauline (left) and Olivia (right)

They overcame it without calling in a broker to help them. It wasn’t easy at all, however, this exemplifies the importance of hard work and perseverance of the duo to learn every step of the way for their small business to set foot in one of the world’s largest retail stores.

Olivia enthusiastically shares with Asian Hustle Network the timeline of how their plant-based Twrl Milk Tea made it into Costco to help entrepreneurs navigate the highly competitive food and beverage space. 

Roadshow Or Small Rotation

We met our buyer at Expo West (Think Super Bowl for the Food & Beverage industry where retailers and manufacturers meet up. Super worth doing if you are in CPG. We even landed our 1st TV interview).

After Expo West, we sent more samples to the office and began negotiations for placement. We were offered two ways of being at Costco:

Roadshow

  • 4 days of selling on consignment. We could control costs by using our own people and decide the volume of product we wanted to bring in.
  • Typically, this is how small brands enter Costco. If it does well, you are offered a rotation. If you don’t do well, then it’s really hard to get into the regular set.

Small Rotation

  • We started with a number of stores and the item is part of the regular set.
  • This is harder to secure because Costco is paying for the inventory and the buyer has to believe in your product.

In both situations, it is critical that Twrl Milk Tea sells well and ideally sells out. Why is this important?

It proves to the Costco Buyer that there is a market for our better-for-you plant-based milk teas. More importantly, companies owned by Asian American small business owners like ours are proven to be great partners worth investing time in and onboarding.

Reasons For Opting for Small Rotation

After a few weeks of due diligence on our end, we decided to go with a small rotation. Our reasons were simple:

  • Our manufacturer could produce the volumes needed and in the time we needed. Not always the case in this crazy supply chain. We are made in the USA so it makes a huge difference in our speed for delivery.
  • We could handle the financial obligations to fund the inventory. It’s a lot of money upfront so it’s not a light decision for a smaller company like ours. And, there is still a chance you can be sitting on inventory if it does not sell through.
  • We are committed to Costco and wanted to be part of the regular set and did not want to take the chance that with Roadshow which is only 4 days could be a bust due to so many variables that we may not be able to control.
  • We love Costco ourselves and shop there regularly so we saw our consumers there! Did you know the typical Costco shopper is 35-44 years old, an Asian female making $125,000 and the average trip is $114?!

Roadshow which is only 4 days could be a bust due to so many variables that we may not be able to control.

-Olivia Chen

Decisions, Decisions, Decisions

What flavor to sell?

Out of our 3 flavors, we selected Taiwan-Style Black Milk Tea to launch because it’s one of our best sellers and our Taiwan-Style Black Milk Tea flavor is really unique. Our single-origin loose-leaf black tea is a one-of-a-kind varietal, sourced from a small multi-generational family farm on a misty slope, fed by sweet mountain spring water.

Our tea flavor, aroma, and health benefits are un-parallel to anything on the market. We use pea milk and lightly sweetened our teas with organic agave so our tea flavors really come through. Only 45 calories & 6g of sugar per can.

What would the packaging look like?

Packaging design and sourcing begin for Costco. Luckily for us, Pauline Ang is a seasoned graphic design guru (with 15+ years in the food and beverage packaging for Fortune 500 companies) and designs all our packaging in-house so we could save costs and time here!

How to onboard?

Mountains of paperwork for our two-person team begin. We didn’t use a broker and did everything ourselves. Yes, a broker would have been so incredibly helpful to answer all the questions that we didn’t know the answers to and definitely would have saved us some headaches.

Big Takeaways

  • Don’t be afraid to chase the account you want to be in. Don’t be shy about sharing your vision of where you see the company. Special thanks to Ryan Sung of Honolulu Cookie Company and Vincent Kitirattragarn of Dang Foods for talking to us about their journey with Costco and encouraging us to go for it.
  • It can be done without a broker but not without headaches and some huge learning curves and we did make some mistakes along the way.
  • Have an advocate. We have been super lucky that our buyer has been so incredible to work with and it’s important to have such an advocate in the company. Cannot over-emphasize this enough!
  • Your team matters. Grateful to share this journey with Pauline Ang who is such an amazing friend and business partner. We are two moms that love Milk Tea and simply wanted to make milk tea —a quintessential Asian drink that we love—even better.

Don’t be shy about sharing your vision of where you see the company.

-Olivia chen

Connect with Olivia and Pauline

Your support would mean the world to our small business and the small family farms that use sustainable practices for a tea that’s better for you, and better for the planet. Follow our journey: Instagram, Facebook, TikTok, Twitter

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Good Day Sacramento, a local morning show, in July 2019

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13-year-old Ethan runs with their school Cross Country and Track Team, while 16-year-old Dylan is in the Cyber Patriots, a cybersecurity club in school where they compete with other schools nationwide. 

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The Young and Simple Legendaries

Ethan: Hi, my name is Ethan Black. I’m the CEO of Legenade Children’s Fund. I’m 13 years old, going into 8th grade. I like running, like Cross Country and Track. I like to hang out with friends, and also be on the computer playing games. 

Dylan: My name is Dylan Black (16 years old) and I’m a junior at Franklin High School. My interests lie in finance, business, and engineering. 

Dylan (right) and Ethan (right) With Elk Grove City Councilmember, Stephanie Nguyen
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How It All Started

Ethan:  Legenade started with a business called Ethan’s Legenade that I started when I was about 7 years old. It means “Legendary Lemonade”. I met another local nonprofit through my mom, and I decided I wanted to help them so I made Ethan’s Legenade and sold lemonade. I gave 50% of the profit that came from Ethan’s Legenade to the local nonprofit. After doing that for about 3-4 years, my grandma helped us turn it into a nonprofit which is known today as Legenade Children’s Fund. 

Dylan: My brother wanted to help a charity owned by a friend of ours. To help that charity, he decided to open a lemonade stand and donate 50% of the profits. We attended small events and sold lemonade there, and that’s how we made our initial profits and we expanded from there into other sorts of events. 

Ethan’s very first event – Summer Concert in Elk Grove May 2016
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Legenade’s Big Vision, Mission, and Goal

Ethan: Our motto is “Helping Kids Become Legendary”, which basically means helping them so they can be the best they can be. We mainly focus on children’s education through 5 different programs. Our goal is to help kids and communities all around the world. 

5 Legenade’s Programs are: Back to School Program, Future Legends Scholarship, Color the World Project, STEAM Programs, and Community Outreach

Dylan: I would like our nonprofit to have a well-established local and international presence to help kids with the education of all forms. That’s my goal, that’s my vision, that’s my mission. 

Achievements and Learnings

Ethan:  A few years back in 2019, we got Rookie Business of the Year from the Elk Grove Chamber of Commerce for being the best new business. I guess another achievement is actually turning into a nonprofit, coming from Ethan’s Legenade to becoming an official nonprofit. I’ve learned more about how to run a business. I was probably naive about how to run one when I was first starting out when I was 7. I’m more careful about making decisions. I’ve learned how kids live in other countries. 

Receiving the “Rookie Business of the Year 2019” award presented by the Elk Grove Chamber of Commerce. Dylan and Ethan are the youngest entrepreneurs in their city.

Whenever I heard stories about the Philippines, it was always worse than the life that we have here, so we shouldn’t take stuff for granted. You’d think that stories like that are exaggerated, but from the photos I’ve seen, it’s not. Their conditions are not ideal. So for example, we ship out toy cars, the ones you pull back to wind up and let go. Then we realized that they can’t play with them because they don’t even have concrete. Their houses are built on dirt. We learned to pay more attention to their living conditions and what they need so we can send them the proper help. 

Dylan: Our biggest achievement would probably be becoming an official nonprofit because it allows us to coordinate and organize resources to give to our donation recipients. Another one of our biggest achievements is the number of people we have helped. We’ve helped several thousands of people in some way, shape, or form. I’ve learned that I really like business and finance, and most likely do that in the future as a career. I’ve also learned that people can accomplish a lot and all they need is a little push from an outside force, maybe in the form of a donation. 

Legenade’s Current Project 

Ethan: Right now, school is about to start so we’re focused on the Back to School Program. We provide backpacks and school supplies to about 1000 students in multiple locations in the Philippines. We have Future Legends Scholarship where we sponsor gifted students and pay for their tuition fees so they can stay in school. A lot of them leave school so they can work to help their families. We help them finish high school at least. Closer to the holidays, we do community outreach locally here in Elk Grove, and Christmas Programs in the Philippines, and send toys and food to the kids and their families. 

Community Outreach Food Program – Anao and Mexico, Pampanga, Philippines.

Dylan: My current project is expanding our sphere of influence to reach more people with advertising and campaigns. Also to get our Legenade bottled at a bottling facility in high numbers so we can get them in vending machines and stores. Relying on donations from people means that the people we are helping are at the mercy of your kindness. When you sell a product, we can more reliably help people. We are grateful to our donors, but it’s better to be self-sufficient so our programs can be consistently well funded. 

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Dylan: I hope that in 10 years, Legenade will have helped many people go to school and get credentials from high school, and even college. Also, be able to help more areas and not just have focused efforts in a couple of cities, but in many places. Education is important because it helps you make good decisions and helps you help other people and it lifts everybody up. I can’t help people if I don’t have an education. 

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Dylan: Your plans don’t have to be big and grandiose. You can start off small and can go from there. Don’t overwhelm yourself by trying to reach huge goals, just spread it up into several smaller goals. And don’t let anything stress you out. Avoid things that stress you out. 

Raising money during the pandemic. May 2021

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