Catherine Langman:
Well, hello there. It’s Catherine Langman here back with another episode of the Productpreneur Success Podcast. And today I’m thrilled to be able to welcome a guest onto the show, Monica Meldrum, who is the founder and CEO of the brand Whole Kids and Whole Kids makes quite a large range of organic snack food products, largely for children. So Whole Kids, Monica founded Whole Kids around 16 years ago, so a couple of years before I started my business, and she’s been one of those women entrepreneurs and business leaders that I’ve really always looked up to. And I was really fortunate enough to get to know her a little bit through the Ausmumpreneur Network over the years. And Monica and her husband, James have been able to grow their business from a tiny startup running out of their rented two bedroom home in Melbourne into a business that operates globally. And I love sharing stories like this, and I think you’re going to really enjoy this as well.
So, obviously, in purely commercial terms, they’ve achieved quite a lot, but what I’ve always admired about Monica and Whole Kids as a business is how they’ve been able to do this in a way that is really led by their purpose and by their values around making the world a better place, leaving it in a better, healthier place than they found it. And the impact that they’ve been able to have through their business really is incredible. So both on the lives of children in first world countries like Australia where so many kids are eating highly processed foods with loads of sugar and additives that contribute to probably a variety of health issues, but also on the children in poorer countries internationally where they fund projects and places where food safety is constantly at risk, for instance.
So I really want to invite you to tune into this interview with Monica as she shares her journey, including some of the big wins that catapulted her business growth forwards. It’s always exciting to hear about those. But also she shares how she navigated some pretty significant challenges along the way, and it’s always great to be able to be a little bit of a fly on the wall and hear about how people navigate the difficult times as well. So I’m sure you’re going to really love her story. And without further ado, let’s welcome Monica to the show.
Catherine:
So welcome to the show Monica it’s fantastic to have you here.
Monica Meldrum:
Thanks so much Catherine. I’m so glad to be here.
Catherine:
That’s awesome. And so obviously your business is Whole Kids. And would you like to maybe share with our listeners, what is your business? What do you make and sell? Who do you serve? All of that good stuff.
Monica Meldrum:
Sure. So Whole Kids we produce Australia’s largest range of certified organic additive free plant-based allergen friendly foods for children. I know it’s a bit of a mouthful, we have a range of over 30 products currently that we distribute through major supermarkets, online, into food service and throughout Australia and we export internationally.
Catherine:
Wow. It’s such an amazing thing that you’ve built here and super excited to dive into this journey.
Monica Meldrum:
Thank you.
Catherine:
So when was it that you actually launched the company and maybe let’s talk about that origin story of Whole Kids?
Monica Meldrum:
Sure. So to give you a bit of background, I guess for me the seed for Whole Kids was first planted when I was asked to travel to Indonesia in early 2000s to deliver an aid program to children living in poverty. And I had a team with me and there were 16 of us. So we had a range of from lawyers, doctors, agricultural scientists and we were to go to this place and we were use funds to really work with the community, to come up with a plan to assist the children and the people that were living there. And when we arrived in this village we were all immediately struck by the children. And so we spent a period of weeks looking at irrigation systems, looking at the schools, the hospitals, but as a team we deliberated what was the best way that we could contribute that was in keeping with the community and the culture.
And we all just were so struck by these children and just they were just so happy but they had nothing and it was monsoon while we were there and it was raining very heavily, and the kids would take to the drains and the drains were a meter wide by a meter deep. These children as young as two on the backs of their siblings would have make a game of being washed downstream. And we all felt that it was so incredibly dangerous and that the best thing that we could contribute was to work with the community to create a safe place for the children to play for the community together. So we set about a period of three months and we sourced ties and [inaudible 00:02:39] ties, and we sourced timber from the local plantation and we built this incredible playground and it was just the most amazing experience.
It made me question everything, how I felt about a career, how I valued happiness. And then I contrast that with coming back to Australia where I’m one of six children and my brothers and sisters were having kids at the time. And there was these incidents of obesity, kids here were so unhappy. There was all sorts of media around food related illness. And allergies were one in five and I just… My sister-in-law was a bit of a foodie and my nephew had some pretty severe asthma at the time. And we’re having a conversation about just the foods that were just being either processed and marketed to children and how wrong that was.
And so I spent some time, I looked overseas at the organic market what was happening, I reached to a dietician at the Royal Children’s Hospital to understand what some of the issues were. And I met with some organic growers and came up with a range and I guess I always had this feeling that if I could create a business that not only contributed directly to children’s health through the products that we made, but also more broadly to children’s health and environmental projects and to give back, and create some sort of social impact around what we were doing how amazing that would be.
Catherine:
That’s incredible.
Monica Meldrum:
So that’s really that was the origin to me at Whole Kids.
Catherine:
Such an incredible story of how you came up with this idea and the way that you went about getting started with it. And so it sounds like you did a whole lot of research there before you really kicked off with the business.
Monica Meldrum:
That’s right. So we researched the market for about three years and at that point it was a big thing. I was in the height of my corporate career and to throw everything in and start a business there was a lot of risk associated-
Catherine:
Huge.
Monica Meldrum:
… with that. But one day my husband James emailed me and said there’s this inaugural expo, organic expo happening in Sydney. Why don’t we go? And so we used that as an opportunity to really put ourselves out there at the time we went to the expo, we decided that would be our line in the sand. So we’d sample our products, we created a six by three stand that looked as though we were an established business. And we used that opportunity to really test the market and decided that if the response was good we would just go all in. And if it wasn’t then we could confidently know that we’d given it a shot and we’d get on with our lives. When we arrived we just found parents were saying there’s nothing like the product, little kids were interacting with our brands and we had over 60 stores place orders for product and we didn’t have to scramble to produce. We knew we were boots and all we decided that was it we’d launch.
Catherine:
How many stores placed an order with you?
Monica Meldrum:
Over 60 stores.
Catherine:
That’s incredible.
Monica Meldrum:
It was amazing. We weren’t able to fulfill those orders for about three or four months, but we could confidently say, “We’ve got an opportunity here. We should really go for it.”
Catherine:
I’m sure that have been equal parts completely terrifying as well as absolutely thrilling.
Monica Meldrum:
Yes, it was.
Catherine:
Obviously that’s like launching with a big bang and it’s not like it was a five minute exercise. It was a lot of research that led to that. So that must have been with the moment where you really realized you were onto something completely amazing and give you confidence to move forward.
Monica Meldrum:
I think so. There’s been many of those moments, that was obviously the first. And then the next big one was two years in. We were contacted by Quantas and they asked us to pitch alongside Cadbury Schweppes for the business, because their head a special meals was receiving all sorts of complaints from parents about sugar-laden products on meal trays. So that really was the big one that we went for, and didn’t think we had much of a chance against the big food brands who were treating it purely as a marketing exercise and providing product to cost. But we talked to the buyers and the head of catering about what our business represented and to think about their customers and how many of them flying with Quantas would be so delighted to have a healthier option on their meal trays.
And I walked away from the meeting thinking there’s no way whatever, what a fantastic thing to be invited to and didn’t hear from the buyer for about two weeks. But then he contacted us to say they were just so impressed and they wanted to commit to supporting Australian businesses. And not only would we be on all first business, economy, domestic and international flights but they would support us by doing inflight television and business radio. So that really was a moment that was just like, wow. And another one of those moments where you go, “This is so incredible. Now I’ve got to go back and work out how the hell I’m going to fulfill all these orders.”
Catherine:
I bet. As a side note surely all of the air hostess would have preferred children to not be all sugared up for a long haul journey.
Monica Meldrum:
Absolutely. That’s right. And I think it was just a case that there wasn’t really an alternative up until that point.
Catherine:
Yes. Yes. And all of a sudden it was a unique offering that could be considered.
Monica Meldrum:
That’s right.
Catherine:
So with that kickoff at the show and fairly early in getting that big boost with a client like Qantas. You must have really felt confident about scaling and growing bigger, or was that something that still was a little bit hard for you to make those decisions to really go big and grand, global.
Monica Meldrum:
We did but that there was a nervousness about it as well. And I think we had this defining moment where we thought we’ve really got to do this. We early on started to get a lot of PR, and I was quoted in an article in the Sydney morning Herald where I was talking about the link between sulfur dioxide that you find in conventional dried fruits and asthmatic reactions in children. And no sooner had this article being published and we received a call from the CEO of one of Australia largest fruit growing companies taking legal action and our first reaction was one of great fear.
But I also stood back and realized that he could see down the end of the phone line into our little two bedroom rented house with boxes all around us, I don’t think he would’ve made the call but he felt that we were set to threat. And I think in that moment we realized that we really could stand for transparency and honesty and do something that was right that was ethical and that we should go for it and push it as hard and as far as we could.
Catherine:
Gosh, I can’t imagine going through that experience, that would be pretty threatening. I suppose all of us have challenges through growing our business and what’s been so amazing and admirable watching the way you’ve worked over the years is how you really have stuck to your guns with the values of your brand and you are a B Corp company as well.
Monica Meldrum:
That’s right.
Catherine:
So maybe, can you talk a little bit about how do you approach those challenges? Because obviously the last years have thrown some curve balls everyone’s way.
Monica Meldrum:
I think it’s just setting a really big vision for the business and values and a core purpose. And our core purpose is to help moms and dads create healthy, happy live for their children. It’s also being prepared to say no. We had early on some really big opportunities come our way for some private label products. It was a challenge scaling and often those opportunities they’re quite tempting, but we just knew the values alignment wasn’t right and so we’d say no. And it meant we’ve been in business for 16 years and we’ve grown a lot more slowly than other businesses that we’re seeing enter the market, but it’s always been really important to us to stay true to our values. And the business has always from its origins been about so much more than just pure product sales. I think in the challenging moments that also gives you something to reflect back on, and it helps you through when you’re faced with situations just to reflect back on all those other things that we have achieved as a brand that we are achieving and to really stay true to what we’re doing.
Catherine:
I love that because it is hard when you’re in the thick of something that’s really challenging or difficult or overwhelming. So as you say just stopping and really looking at what you have achieved, I guess sometimes they’re small things and sometimes they’re big things.
Monica Meldrum:
That’s right.
Catherine:
Keeps you one track to keep moving forward.
Monica Meldrum:
For sure.
Catherine:
I love that. And last year you guys had that big campaign going on where you were looking to find… What is the right term for the process that you went through for because it wasn’t like listing on the stock exchange or anything.
Monica Meldrum:
No it was a crowd fund process. We had decided at the start of the year that we wanted to enter another phase of our business in scaling it further. And so in doing that we would require some investment funds. So at the beginning of the year we’d met with various VC and high net wealth individuals, and we were working through financing options and then COVID hit. And I think the market got a bit nervous, but again, from those meetings that I’ve had we never really felt truly that we’d found the right fit for our business. We were just reflecting on it all and what we needed to do. The airlines grounded to a halt with COVID, so we lost 30% of our revenue as soon as that happened. So we were regrouping going, “We really need to look at some funds for scaling and how we can move into other channels to recoup that income.”
And then my father he wok up one morning, he’d been awake during the night and he called me and he said, “I just had this thought, have you ever thought about crowd source funding for your business?” And we hadn’t really looked into it but the more we looked it really felt true to our brand. We’ve always been a brand that’s about community. And I’ve always felt that people should have the opportunity to invest in brands they love. And so within eight weeks we’d launched a campaign. We were hoping to raise about half a million dollars, we ended up raising 1.2 million and it was just the most incredible time. To me it was a little scary because we had to really put ourselves out there, but what we found was that our communities just came out. We had buyers that we’ve worked in the past who said they just absolutely believed in what we were doing and they wanted to come on the journey with us. Customers, there were just some system incredible stories from all of the shareholders we have right now so it was just an amazing process.
Catherine:
Well, I participated in that and I thought it was a lot of fun, but also just amazing at how it was like this… the momentum with people sharing all over social media, it just went off. That’s great.
Monica Meldrum:
It was fantastic. And now we have this crowd of investors with us. So it’s also really helped us in negotiations with some of our big customers where we’ve been able to go to them and started them, “Not only is it us but we now have this crowd behind us that represents-” We had some really big women’s networks also invest and so I collectively it represents two million moms and dads, that’s pretty powerful to have that behind you. And it just feels now that we need to get on and just realize the return for everyone. And it was just so uplifting for me to know that there was so much support for our brand.
Catherine:
It was incredible. Just as a personal anecdote to add in there, I think my two boys they were eating your products when they were fairly new to the market because they’re teenagers now and now we get to be part of your company.
Monica Meldrum:
That’s right. Thank you.
Catherine:
That’s fantastic. Super exciting. I wanted to ask you a little bit about how you went about becoming a B Corp organization. Because I guess to give you a little bit of context quite a lot of our listeners are creating products and companies around eco-friendly and sustainable products in a whole range of different product categories. But this is certainly something that would be of interest to a lot of them I know.
Monica Meldrum:
Sure. So we always felt that as an organic business our organic certification that’s really a certification for the products that we make and endorsements that we are doing the right thing. And we’re going through a pretty strict audit process and procedures to ensure that the quality and the ethics behind our product. But we felt that as a business we also wanted to look at how we could potentially certify and participate in something that meant we were producing to the highest standards and the highest business ethics. And so we came across B Corp and we were the first food company in Australia to be certified. And so B corporation is not only the product it’s every part of the supply chain. It’s how you run your business, it addresses things like gender balance within the organization, pay scale between the highest and lowest paid employee, all of the social impact programs that we have that we wrap around the business.
And so we were audited and given us a score and you need to reach a score of about 80 to pass that but we passed with flying colors. I think for us too not only having that certification to sort of… Within our industry there’s a lot of claims about their products being natural or green or whatever it is, but this is the stamp of the real thing. And I think in the US in particular it’s very well recognized. In Australia it’s taken a little while, but the movement started. And one of the moments another really amazing moment with every year 10% of B Corps are chosen to be audited and in our second year we were one of those. And so we had auditors come across from New York and Nairobi and sit with us and talk to us about all the incredible businesses that were certified and part of this movement.
And I think to be part of that network and it’s a great network that B Corps really support each other. There’s a lot of knowledge within that to draw on, so I really highly recommend it. And I think personally too, my husband James, when he was at uni he had a time where he studied in Georgetown in Washington, and he’d studied companies like Ben and Jerry’s and Patagonia he’d always wanted to work for one. It’s kind of amazing to think that we’re a B Corp and we’re sitting alongside them right now, that in itself is really cool.
Catherine:
At what point in your business journey were you at when you went through that process to become a B Corp?
Monica Meldrum:
I’m just trying to think when it was, we were still, I think we had just entered one of the major supermarkets, so it was still quite early in our journey but it was something that was really important to us. And I think Whole Kids has always been about so much more than just a product. And it’s been important to us that we just… We’re about creating a healthy world for future generations. Early on we were having a lot of conversations around what more can we be doing?
Catherine:
That’s amazing. That’s so good. And do you think that once you went through that process and became a B Corp company, did things change in the business as well? Obviously there’s a lot of value outside of the bottom line, but how did things change in the business for you after going through that?
Monica Meldrum:
I think the things that changed were really having a network to rely on at every stage that we were going through. So we’ve been operating in isolation to these higher values and didn’t know a lot of similar like-minded businesses. And I think really it’s been a like-minded community and being able to tap into that that’s assisted us along the way. And then with each audit also just really reflecting on what we can be doing better or other things that we can be looking at as we go through it as we’re growing the business.
Catherine:
That’s fantastic.
Monica Meldrum:
I think it really just becomes embedded within the business. and top of mind.
Catherine:
Well, especially when you are going through that review process on such a regular basis as well, that always brings your attention back to those things, doesn’t it?
Monica Meldrum:
It does that’s right.
Catherine:
And I guess how you can bring it into your marketing and connect with the customers who want to be part of that too.
Monica Meldrum:
For sure.
Catherine:
Over the last 12 months obviously COVID has put a big hole in a lot of businesses and it certainly upended many of our working lives as well. Can you talk to us a little bit how you guys… I’m sure you’ve had your own unique approach to getting through that as well. What can you share with our listeners that might be helpful for those who are going through some tough times right now?
Monica Meldrum:
I think our approach is just really to supporting the people that were working with us. We’ve always run our business a little bit differently. And I think I’d come from the corporate world where it was so much about you put on this face and you go into your business life and it’s so disconnected from everything else that you’re doing or the person that you are. And I think COVID gave us a really good insight into people’s lives and we just really wanted to support them through what was a really tough time. So we were sending care packages out. Prior to COVID a couple of years beforehand we had a terrible virus take over our server, which at the time was devastating. We’d lost a couple of weeks worth of work that we had to regroup and all the rest-
Catherine:
That’s not fun.
Monica Meldrum:
… and lost our server. No it wasn’t fun but as a result of that we moved everything to the cloud. Since COVID hit we were one of the first businesses to say, “Okay. We’re going to be okay. Let’s just work from home we’ll regroup.” We started regular meetings so we’d check in with everyone. It started off daily and then moved to twice a week. And we had employees in other states and I think they really valued that connection. I think the work gave everyone focus outside of the craziness of what was going on in the world, but also an opportunity to check in with people and make sure they’re all okay.
So in a sense it humanized what we’re doing. And I think out of that too people are really starting to rethink what they want from their work or what they value. It’s a great time to change I think for people it’s a really tough time, but I think the support. And I just got so much out of our staff also who were equally checking in with us and our community who just came out in this space as part of the crowd funding process, it just gave me a lot of strength to get through it.
Catherine:
I think I remember noticing that you would put a lot of posts up or maybe not a lot, but you were putting posts on social media just sharing some other encouragement to your network as well. Yourself outside working out, lifting weights and stuff like that, so I guess encouraging other ways to keep healthy physically and mentally through those difficult times.
Monica Meldrum:
And I think as a business owner one of the things that I’ve been reluctant to do… It can seem quite selfish but it’s just so important. As a business leader your health is just… It’s really critical that you are physically and mentally fit as you can be to take on challenges. And so I ended up getting a trainer who I was training with three… I had been for the last two years. And it’s just a good way when you don’t have a lot of time for someone else to be thinking about it all. And you’re still getting out there and getting the exercise you need and having a break from the business. I sort of really ramped that up over COVID, we did take to the beach and we’re outdoors and it really got me through what was a very tricky time.
Catherine:
I have to say I was doing the same here in Adelaide. Of course, we didn’t have the long lockdown that you guys had, but the gym moved to the garage and it was a bit chilly in the winter. But definitely love those times and being able to turn up and just do what I’m told for an hour-
Monica Meldrum:
That’s right.
Catherine:
… and get that workout in. That’s awesome. So I’d love to know there’s so much that you’ve packed into your business journey over the last 16 years, so what’s next on the cards for Whole Kids and as a second part of that for yourself as well as the leader of your business?
Monica Meldrum:
I think for us actually just prior to COVID, I had this incredible opportunity to visit a project that we’re supporting through Plan International in Cambodia. And I took my daughter and five other nine year old girls to visit the program. And that to was just one of the most incredible things where as a mom to see your daughter and to… I just really wanted to give these girls and opportunity to broaden their perspective and open their worldview. It was the most incredible thing being able to support an organization like Plan and contribute in so many different ways.
I think for me that’s what will continue for me wanting to scale the business and we’re taking it international at the moment, we’re looking at opportunities in India, China, the US there’s lots of opportunities coming our way. But the bigger we get really being committed to creating more change around the world so that’s really… As a result our crowd fund we’ve recruited some incredibly experienced people now, which means I have more time to reflect on the strategy of the business, but also a distinctive vision in where we want to get it to so it’s a great time.
Catherine:
Gosh, that sounds so exciting. The things that you’ll be able to work on and achieve in the business, but also the idea that you might be able to travel again as well.
Monica Meldrum:
That’d be great. Actually that’s one of the benefits I think of doing business in Asia. Often you do need to get on a plane, but because we were all grounded we’ve been able to do so much business now. It’s changed the way things happen fundamentally so that’s been one of the positives, but it would be nice to be able to get on a plane and travel. Hopefully that’s not too far away.
Catherine:
One day. Quickly, hinting potentially at the changes in the way that you’ve been doing business. Does that mean that you’ve had to shift more business towards e-commerce or how has the business model changed through COVID?
Monica Meldrum:
Yes, for sure. So one of the things we did during COVID was we really wanted to support families who were experiencing lockdown down. And so we really hadn’t given e-commerce a lot of focus, we have a range of prebiotics snacks and things that we started to send in packages out to families. And our e-commerce sales really grew quite dramatically, three fold in a very short amount of time. And so we’ve always grappled with the fact that the bigger customers we have as in the supermarkets or whoever it is we’re losing that relationship with our direct customer.
And that’s a foundation that we built the business on and it’s really important to us when a lot of those bigger businesses, they’ll only take so much of your product but we have such a huge breadth of range that we want to be able to continue to offer that to customers, and want to still continue to engage with them. And so definitely e-commerce is a channel that we’re looking at the moment, how we can continue to support families in that way and deliver direct into the home. And then also obviously food service that might come back for a little while, so looking at export opportunities as well.
Catherine:
That’s interesting that journey over the last year, your business model is definitely sounding familiar. I’ve had a few conversations with other business owners lately and it’s all sounding quite similar. But fortunately some of these export markets are opening up now, which is good for us here in business.
Monica Meldrum:
That’s right.
Catherine:
And yourself as a female leader in a very fast growing business, where to next for yourself in that role. I’m keen to get some insight… Most of our listeners are women and they are early stage in their business and looking for those mentor is the wrong word there, but the role models is the better word for people they can learn from.
Monica Meldrum:
I think for myself and certainly we have lots of requests often to assist female businesses and I’m very passionate about it. So it’s looking at how I can step a bit further out of the business, so I’m not so hands-on and day to day to be able to support others on their way through because I’ve had an incredible amount of support from people along the way. I think there’s not enough female role models and not enough who are willing to share and support and help other women through. So definitely that’s something that personally I’m looking at. And I have this great mentor actually who when I started working with him a few years ago, he said to me, “What’s your career plan?” And when you run your own business I don’t think you really think about your career path.
And it was the first time anyone had said, “What do you want?” At the time I was juggling family and I was very hands-on and I was struggling to say a way outside, but he opened my eyes to the prospect that it doesn’t have to be mutually exclusive. You can be in a position where you’re still part of a fantastic company, but you are more of on the chair and you are supporting others and you are doing other things. So for me it’s about really we’ve got a great team now, there’s probably a few gaps within that but really making sure I put the right structure in place and systems and processes so that I can step back a little and start to do some more of that work with others.
Catherine:
I’m glad that you mentioned that there because I think a lot of people… And I don’t know whether this really is a typically female thing. I think a lot of us women do seem to feel the need to do all the things all the time, but there’s this common trap that I think a lot of us probably all of us fall into at some point, feeling like it’s only going to get done properly if we do it ourself-
Monica Meldrum:
That’s right.
Catherine:
… which definitely makes it very difficult to hire and to grow a team and to expand and to start working ourselves out of doing all of the things. So systems and procedures can be your friend there, can’t they?
Monica Meldrum:
And also say just being prepared to give others a go and to delegate and to do it in a way to trust but verify so that you’re not giving up full control, but you are able to let go because sometimes that can be a hindrance to growth as well. I think when you’re wanting to do it all and you are so hands-on, I think you lose that oversight of the business. And that’s really the fun part, extracting yourself, having other paperwork in with you to realize the vision that you have.
Catherine:
That’s so good. That’s awesome. So I can’t thank you enough for sharing some of your story with our audience.
Monica Meldrum:
You’re welcome.
Catherine:
So we’re going to share your links to the podcast show note page, but where would people go to if they want to find out more about whole kids or to follow what you’re doing in business?
Monica Meldrum:
Yes. So our website is wholekids.com.au and our social handles are whole_kids and my own personal one is monica_ meldrum.
Catherine:
Wonderful. Thank you for that. We will absolutely share that out with the audience and thank you again for joining us on the podcast.
Monica Meldrum:
Thank you so much Catherine.