Uncategorized

September 23, 2022

SHARE:

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

Twrl Warehouse

Related Articles

Image Source: Mark Ezzer Ligan Facebook

Stories

Filipino Entrepreneur Cultivates Family’s Land With A Goal Of Providing Food For Every Family’s Table

The Philippines, like many countries around the world, is dealing with skyrocketing food inflation due to supply issues and high fuel costs. 

26-year-old Mark Ezzer Ligan, from Bacolod, Philippines, has learned how to start and sustain his farm by producing vegetables such as okra, eggplant, soursop, and coconut in his family’s 3-hectare plot of land called MBL Integrated Farm. He also raises imported goats from Australia, cows, carabaos, and chickens.

Mark continues to cultivate the land and raise livestock to increase community production. He ensures sufficient supplies from eggs to vegetables and corn to fresh milk for the general public. As a farmer, he believes it is his responsibility to ensure that everyone has enough to eat.

More than 80% of Filipinos eat goat meat, but there are only two major commercial goat farms in the Philippines. The opportunity for growth for goat farmers is also substantial in light of this booming market.

Even more importantly, he benefits financially from their crop yields. Mark worked so hard that the provincial government of Negros Occidental recognized him as the 2019 Oustanding Young Animal Raiser. His success hasn’t hindered him from his commitment to his main goal of providing food, especially during the pandemic.

Image Source: ©Studio Ghibli

News

World’s First Studio Ghibli Park In Japan Features Iconic Settings And Characters Animation

It’s the perfect time to visit Kyoto, Japan, as Ghibli Park opened less than an hour away from the city last November 1st. The new Park features some of your favorite animated scenes and characters from Studio Ghibli films.

During an event a few days before the park’s official opening, Studio Ghibli Co. chairman and president Koji Hoshino said that the start of the park has a significant meaning for them that surpasses almost three years of the pandemic.

Overall, the final design for Ghibli Park encompassed some 17.5 acres and was split into five distinct areas. Ghibli’s Grand Warehouse, the park’s centerpiece, is a huge indoor “town” with streets, displays, and reproductions of Studio Ghibli’s “Totoro” and “The Catbus from Outer Space” sets. The Ghibli Museum’s theater shows special short films to visitors of the new park and Tokyo’s Ghibli Museum.

There are also two restaurants, a souvenir shop, a vintage shopping district with lanes, and a play area for children. The “Hill of Youth” antique shop from “Whisper of the Heart” and “The Cat Returns” is the second tourist attraction. The park can be seen in its entirety from this vantage point.

The third and newest section of the park is the Dondoko Forest, which is themed after the anime film “My Neighbor Totoro.” Both the bouncy house and a Totoro-themed playground can be found there.

Valley of Witches will feature elements from “Howl’s Moving Castle,” about a young milliner who accidentally gets caught up in a war, and “Kiki’s Delivery Service,” about an earnest and hardworking young witch. 

According to the director and son of Studio Ghibli co-founder Hayao Goro Miyazaki, the park was conceived with the local community in mind. Miyazaki’s original intention for the site was to be a park, not a typical theme park with rides and attractions. He desires that the people of Aichi share his passion for their gardens, as he believes parks are primarily for the local community.

Check out their official website for ticket and booking information.

Image Source: Dominic Lorrimer/ Australian Financial Review

News

Australian Logistics Tech Firm Shippit Procures Singapore Startup Luwjistik for $11M

Shippit has announced that it will pay $18 million to buy the logistics SaaS platform Luwjistik, based in Singapore. 

Founded by longtime friends William On and Rob Hango-Zada in 2014, with a mission to improve shipping for small businesses, as they have personally experienced the drawbacks of online shopping.

After two years of operations in the region for the Sydney-based company, the Australian logistics tech company co-founder and co-CEO William On has relocated to Singapore to lead the new expansion and manage the existing 50-person Luwjistik team.

This comes after the company raised $65 million in Series B2 funding, which helped operations in Southeast Asia, and almost seven months after it bought the last mile logistics tech platform Premonition.

Shippit’s inclusion of Luwjistik’s co-founders, who bring extensive industry experience and connections to the table, is expected to revolutionize the company’s approach. The acquisition of Luwjistik will also enable the company to provide tailored solutions for the Southeast Asian market. Therefore, Shippit can be the best option for many who manage their warehouse or search for a logistics partner.

The startup works with carriers such as Ninja Van, J&T Express, and JNE Express, as well as logistics companies such as Maersk, POS Malaysia, Lion Parcel, and Summer International.

Within a month of launching Luwjistik, the duo raised US$1.1 million (AUD$1.7 million) in a seed round led by East Ventures, including MDI-Arise Finches and Global Founders Capital.

William anticipated a significant increase in e-commerce in Southeastern Asia, which will continue if Shippit and Luwjistik join forces. Currently, they can provide a one-stop platform for enterprises and the expanding SME segment, particularly in Indonesia, Malaysia, the Philippines, and Thailand.

More than 40 million deliveries were booked via the Shippit platform in the fiscal year 2022. Since its inception in 2014, Sydney-based Shippit has fulfilled e-commerce orders worth $5.5 billion for more than 3,500 retailers.

“I strongly believe that by combining our strengths, we can continuously innovate and offer the most impactful, reliable, and relevant solutions to a fast-changing, dynamic market.” – William shared with Business News Australia.

Image Source: Social Bella

News

A Millennial’s Gamble Pays Off As Her New Beauty Product Line Has Just Raised Over $225M

When the pandemic struck, all Chrisanti Indiana wanted to do was help her family and create jobs in her community.

Nonetheless, as the pandemic worsened, each day appeared to be a gamble. She gambled on her dreams, created her employment opportunity, and risked everything for her family because she had no safety or security options.

The Indonesian co-founder, and chief marketing officer of Social Bella, surprised everyone by taking her successful online store offline. In 2019, her online beauty and personal care store, Sociolla, already had two physical locations in Indonesia. It currently operates 47 outlets in Indonesia and 16 in Vietnam, making its earnings multiplied by ten by the end of 2021.

It started after Indiana had finished her studies in Australia in 2015 when she moved back to Jakarta, where she conceived the idea for Sociolla.

Chrisanti found that Australia was a great place to stock up on her favorite cosmetics because of the abundance of international brands. There couldn’t have been a bigger contrast with Indonesia.

With a combined $13,000, Indiana, her brother, and a close friend founded Social Bella to provide customers with access to legitimate goods and services.

“Since we started, we ensure that we only work with authorized distributors or brand owners,” Indiana said. 

The three founders of Sociolla had bigger plans than just building an online store. They have expanded beyond offline stores to become a global beauty and personal care product distributor. In Indonesia, they also became an associate partner for numerous international brands.

‘We want to ensure that we are scaling up and reaching more and more consumers. If Social Bella becomes a unicorn, it’s a bonus.” – Chrisanti Indiana shared with CNBC.