Naturopath Narelle Plapp started off selling muesli for clients; five years later, the company she founded, Food for Health, is turning over $3 million and selling 14 products.
Plapp found a gap – more people are looking for products that are gluten-free and nut-free. She discusses why coeliac disease, nut allergies and fructose malabsorption are more common these days, and her plans to export not just to expats in Asia but North America at well.
Starting off, your background is in naturopathy, and I assume the business came about because you found a niche talking with your clients about their bodies and diet?
I did. My first two products for Food for Health were designed for my patients’ needs, recipes to complement my patients, and it really evolved from there. And then I had a health food store and I got a lady to make the muesli out the back and I would sell my muesli in plastic bag, and I thought, “Something is going on with this muesli”; it really seemed to fulfil a need. We started out with two products and now have 14.
I’m sure you’ve been asked this many times, but why is it that so many people are gluten-intolerant and allergic to nuts these days? I don’t remember that at school.
Gluten was unheard of when I started, but nowadays people are being diagnosed correctly and tests can be done. So it has evolved over the past 15 years.
Anaphylactic reactions have always been around, and it’s a scary allergy to have because it can be life-threatening, but with the processing of foods and fast-moving consumer goods these days, the option for nut-free is limited.
And with schools, once upon a time, children weren’t diagnosed. These days people, including the schools, want to protect themselves.
And fructose-free, that’s been under the radar.
Yes, there’s been a bit of research over the past three or four year, and especially in Victoria, about the alignment between Coeliac disease and fructose malabsorption. It’s really limiting for people, so to have something in your bag you can eat, it’s a grab and go product.
You’re exporting to five countries now – which ones and where will you go next?
We’re in Asia: Hong Kong, Singapore, Brunei, Malaysia and working with China at the moment. And we’re off to America in March next year for a trade show.
And in Asia, is there a market there for Coeliacs?
We’ve actually targeted the expat market, but the local market sees it as a healthy option, which is gluten-free and high in fibre; a healthy snack rather than supporting a dietary problem.
You obviously know a lot about diet and health – why did you choose against organics?
Well, we don’t bind products with glucose – we use rice bran instead – and it’s already expensive. We’re doing things with higher quality products, but it was a business decision: we can’t be everything to everyone because it’s an expensive product to make. And our products are Australian made and sourced locally where possible.
How did you get Woolworths, Coles and Costsco as customers?
It was a stab in the dark, really. I thought, “If I don’t take a risk they won’t know about me”. So I made an appointment, selling my product and my passion, and Woolworths gave it a go and since then it’s been onwards and upwards. When I got the Woolworths deal, I was still making by hand, but I went to a manufacturer and said I could do a minimum run.
And you’ve targeting a few million in revenue this year?
I was happy to get $3 million this year; we’ve had 100% growth over the past year and two new products lines, as well as expansion overseas, and being sold in the new Costco stores. So it’s been a big year.
And how many employers do you have?
Two part-timers.
Obviously you had business experience, but what you learned through Food for Health?
I was too nice upfront at the start when I was talking with the supermarkets; I was just excited to get the deals through. I’m a lot smarter on that side of the business – it’s been a massive learning curve. Wholesale and retail are completely different; I actually love wholesale.
Thanks for your time.
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