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September 5, 2016

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W W W. M A I N E B I Z . B I Z 17 S E P T E M B E R 5 , 2 0 1 6 Perseverance, a favorable review and word-of-mouth recommendations gave the company early momentum. Local bars and restaurants were early adopters. eir fi rst big order, from retailer Williams-Sonoma, was sparked by a review on a popular blog. "But the logistics and fi nancials of running a food company in Brooklyn were just untenable," Forrest says, so in 2012 they headed north. Today, Royal Rose is based in 2,100 square feet in the Fort Andross Mill in Brunswick. "In terms of logistics and overhead costs, it's been really benefi cial to be in Maine. And working with the food lab at [the University of Maine at Orono] has been so much easier and less expensive," Forrest says. "We love this space we found and we love Brunswick." Williams-Sonoma is still a customer, the com- pany's largest, as is Whole Foods Market. Royal Rose products are sold in 30 states, Canada and Australia. Roughly 60% of sales are through distributors, 32% direct to retailers, restaurants and bars. About 7% is from online purchases. Accounts in Maine contrib- ute about 5% of overall sales. "One thing we lost when we left New York is the local support," Forrest says. "We have maybe 10 really great local relationships here with buyers; in Brooklyn we had 60. Maine is such a small market that it can be diffi cult to build relationships in your industry. ere is enthusiasm here, but the population is small." Managing distributors is vital to maintaining margins e Butlers use nine distributors. Forrest stressed that establishing productive relationships with dis- tributors can be rough for start-ups. "You have to account for growth and scale in your pricing; distributors want discounts and incentives. We built in the cost per unit of working with them, right in the beginning," Forrest says. "Distributors aren't necessarily trying to promote your brand. You've got to show them how to make money with your product. A good distributor does two things well: they pay their bills on time and they keep your product stocked. But you've still got to sell it." at means the Butlers are promoting the prod- ucts at events, demos and tastings. "You can only do so much over the phone and with email. You have to do it face-to-face to build relationships and trust," Forrest says. "You can make the best product in the world, but you gotta go out and sell it, or you don't have anything. You've got to support it and help the stores get it off the shelves. Creating consumer awareness and demand is very, very hard. We really need $150,000 to $200,000 for more marketing." e Butlers see the potential to grow distribution in California, Asia and Europe. ey are beginning to look for a strategic equity partner — with, Forrest adds, "funds and connections." Sparkling wine from Maine wild blueberries Another Maine-based startup, Jeff erson-based Bluet, makes sparkling wine from wild blueberries. P H O T O / C O U R T E S Y O F B L U E T C O N T I N U E D O N F O L L OW I N G PA G E » www.ceimaine.org 207.504.5900 FOLLOW US @ceiwomenbiz LIKE US JOIN US "For me this was an ideal match. My entrepreneur consultant identified connections for me to make in the community, and shared what her startup timeline was like as well as helpful steps to take along the way." ~KERRY HANNEY, OWNER, NIGHT MOVES BREAD + PIE The Women's Business Center at CEI recently launched an Entrepreneur in Residence Program (EIR) to connect experienced entrepreneurs with new business owners that have a specific need, challenge or question. If you or someone you know would like to meet with an entrepreneur that has industry or area-specific expertise, visit ceimaine.org/women. Our team of experienced attorneys can help you maneuver through the legal issues of starting a new business which gives you more time to do one thing: launch a successful company. STARTING A NEW BUSINESS IS AND LET US TAKE SOME OF THE OFF YOUR SHOULDERS. exciting worrisome. worry Our team of experienced attorneys can help you maneuver through the legal issues of starting a new business which gives you more time to do one thing: launch a successful company. STARTING A NEW BUSINESS IS AND LET US TAKE SOME OF THE OFF YOUR SHOULDERS. exciting worrisome. AND exciting worrisome. AND worry nhdlaw.com • Portland (207) 774-7000 • Lewiston (207) 777-5200 F O C U S Eric Martin and Michael Terrien, founders of Jefferson-based Bluet, produce sparkling wine from Maine wild blueberries. Terrien is also the namesake of a line of wines produced in California.

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