Mainebiz

W W W. M A I N E B I Z . B I Z 19 S E P T E M B E R 5 , 2 0 1 6 S TA R T U P S & E N T R E P R E N E U R S H I P F O C U S produced in Texas, are sold in thousands of restaurants. e company is privately held and does not disclose its revenue or even how many employees it has. " e soft drink world is a very damn competitive market. Everybody wants to know how you're doing what you're doing," Seiler says. "We don't want any investors. It's a private company owned by [my brother] Matt and myself and our goal is to keep it that way, and pass it down to our kiddos." Its largest customer is Whole Foods. As sales of conventional sodas have struggled, sales of Maine Root are up "double digits over the past few years," though Seiler won't be any more specifi c. He is open about the company's philosophy and methodology. "We are very unconventional as to how we operate and market our products. We don't do any advertising," he says. Seiler's operating mantra is fundamentals fi rst, honed during his previous career in software sales. "You have to understand your costs down to the penny, right from the start, or you're not going to make it," he says. " e fi rst deal you strike with a dis- tributor or retailer is probably the deal you're going to have to live with. ey'll say that the numbers will go up over time. It doesn't happen. If you can't do it at a profi table rate from the start, don't do the deal." Right product at the right time Mark's brother Matt Seiler started making the com- pany's initial product, root beer, when he worked at Portland's Flatbread Co. Stonewall Kitchen's cafe in York and Lois' Natural Marketplace were early customers. "Whole Foods and Hannaford jumped on board pretty quickly," Seiler says. "We started this at a real growth time in the industry for organic and 'natural' products. e barriers to entry now are much higher." Fair Trade Certifi ed organic sugar is the drink's primary ingredient, and at the core of the company's mission. It contributes not only to the taste, but to the health and safety of the farmers in Paraguay from whom it's sourced. Maine Root has farmers growing 1,000 acres of sugar cane, sustainably and hand-cut. "It's the fi nest, purest sugar there is, and we pay a 10% premium for it," Mark Seiler explains. e certifi cation also guarantees more humane working conditions. He does wonder sometimes if going it alone, with no investors, makes it harder than it has to be. "If I had this to do over again, it would be a real soul-searching experience for me," Seiler says. "Would I do it this way again, or would I take the money and hire a huge staff and hope for a big buyout at some point? at's the way a lot of people do it, but for a lot of them that big buyout doesn't come, and instead, the investors kick them out on their asses after fi ve years." T F edits the weekly Food Insider for Mainebiz. She can be reached at @ . AUDIT | TAX | VALUATION | CONSULTING Our team of CPAs and consultants can help make the ride a little smoother. Gain speed by assessing risks, strengthening security, and taking control of valuable opportunities. BerryDunn — for confi dence on the move. GAIN COMFORT. GAIN GROUND. GET ROLLING. 800.432.7202. berrydunn.com. You have to understand your You have to understand your You have to understand your You have to understand your You have to understand your You have to understand your You have to understand your You have to understand your You have to understand your You have to understand your You have to understand your You have to understand your You have to understand your You have to understand your costs down to the penny, right costs down to the penny, right costs down to the penny, right costs down to the penny, right costs down to the penny, right costs down to the penny, right costs down to the penny, right costs down to the penny, right costs down to the penny, right costs down to the penny, right costs down to the penny, right costs down to the penny, right costs down to the penny, right from the start, or you're not going to make it. — Mark Seiler, Maine Root

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