The MoD and FMCG
We were interviewed yesterday by mergermarket.com. I took Paul (our new team member) along to see how I perform in interviews (as a training exercise), but the interviewer decided to interview Paul too. As a writer and journalist he needs no media training, and he coped admirably!
Our negotiations with ASDA last Thursday went brilliantly. They want to take our product but in a different format, which will entail repackaging in packs of ten (currently on sale in
packs of three in Sainsbury’s, but as you need four sachets a day to drink your two litres, it makes sense). They want a reduced price which I need to do the sums for to see if it’s possible. Tesco have asked for final negotiation prices for O2GO so that’s going great guns too.
Speaking of which, we received our actual MoD order (on my desk!) last Friday, which is very exciting, and we also got an order from the Irish MoD for O2GO in addition to O2GOSPORT+ powdered isotonic drink. It will be our first customer for the new SPORT+ drink, and it puts us up against people like Lucozade (scary stuff) – it is now a competitive product. We did a lot of shows and put out lots of information about O2GO, and as we are constantly developing new products, we are aiming to have a real family of products. The quality of our product has made it into the ration packs (we’ve done no advertising or focus testing, and we don’t make bold claims, but MoD testers have verified the Isotonic and energy giving qualities of O2GOSPORT+). So now we have a good opportunity for PR on the back of our supplying the MoD.
Press-wise we had a few pieces in the Harrogate Advertiser last week and now that mergermarket.com have highlighted us as a possible early takeover sale, I feel we’re moving on. I’m trying not to be too arrogant but we have created a national product out of nothing, which is quite a big thing, and it has risen over quite a short time period. It’s an FMCG (fast moving consumer good) so it’s quite refreshing (according to mergermarket.com) to have a new innovative food product, rather than everything being about IT.
It’s the first time that I have publicly said that we would be willing to court an offer if it was in the correct ballpark. Why would people buy the company, you ask? Well because we have already proven the product and the business. Why would I want to sell it? I would quite like to see some return after three years, and it would be great to finally get away on holiday for a break. You don’t ever really switch off though – I have to think of squash or cycling (only sport distracts me!) or I start thinking about work emails and what needs to be done. I have to force myself to switch off so a holiday will be a real test for me!
I had a walking meeting the other day. I met a guy in a park, we chatted about business (as blokes do – that and sport), and he said he supplied personnel for retail and could he come along and learn how, without any retail training, I had managed to get my product into Sainsbury’s and to see if he can help find me someone who can complement my business. I said fine, he wanted to meet up out of the office, so I suggested a coffee somewhere, but he said he really did mean outside of the office! So we went for an hour and half walk last Wednesday – what a refreshing way to understand someone else’s business. Getting away from the phone and computers was a great way to connect with someone.
With our O2GOSPORT+ product, I have indeed sold it to the Irish MoD, but it doesn’t (as yet) actually exist! We do have raw materials, and packing materials, and the distribution is set up, but we need to design the packaging for this Friday! I zipped round on my bike this morning to Dan at Junk who says he can have this done for the deadline (phew). I still maintain that as an entrepreneur, you must say you can do it, and then you can always find out how to do it later! The pressure and stress is something I thrive on, and I am very aware that every income stream is crucial.
