From Banker to Baker: Enjoy Life Foods

Abstract

Having started Enjoy Life Foods with a classmate at the Kellogg School in the business plan writing class, Scott Mandell had grown from a business plan, Mandell was ready for the next step, a move onto the national stage with Whole Foods. He estimated product promotion would cost several thousand dollars more than revenues in the first year. If sales fell short of his plan, his losses would soar. If sales forecasts were met, the company would achieve profitability in the time period Mandell promised to investors. In the meeting with Whole Foods representative, Mandell spoke about the uniqueness of the hypoallergenic snacks and presented the company’s ability to grow sales. When he finished his sales pitch, the Whole Foods representative told him he liked the product, but had no room for it on the shelves. Mandell was put on the spot and needed to think quickly. He might not get another chance to convince the Whole Foods representative to make room for Enjoy Life Foods. He had just seconds to think of a response before the representative walked out the door for another meeting. What could Mandell say to make the representative see the value in taking a chance on Enjoy Life Foods? What creative solutions to the “shelf space” dilemma could he offer?

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

Resources

Exhibit 1: Scott Mandell Bio, 2008

Scott Mandell is the president and co-founder of Enjoy Life Foods, LLC, a company formed in 2001 for the purpose of manufacturing and marketing a line of great tasting, nutritionally rich, and safe foods that are free of gluten and other common allergens. Mandell primarily focuses his time on overall management issues, strategic initiatives, and sales.

Prior to starting Enjoy Life Foods, Mandell worked for eight years (1993–2001) as a commercial lender and relationship manager at American National Bank and Trust Company of Chicago, where he last held the title of vice president. Mandell provided financial service solutions to a broad range of privately held, middle-market companies.

Mandell graduated from Indiana University, Bloomington, in 1993 with an undergraduate bachelor of arts degree majoring in history and minoring in business. Mandell graduated in December 2000 with a master’s degree in business administration from the Kellogg School of Management at Northwestern University concentrating in the areas of entrepreneurship, finance, and management and strategy.

Mandell is married, has two sons, and resides in Deerfield, Illinois.

Exhibit 2: Financial Projections

Figure

Source: Enjoy Life Foods, Confidential Private Placement Memorandum, September 15, 2001, p. 75.

Exhibit 3: Profit and Loss Statements, 2003

Figure Figure Figure Figure

Exhibit 4: Profit and Loss Statements, 2004

Figure Figure Figure Figure

Exhibit 5: Profit and Loss Statements, 2005

Figure Figure Figure Figure

Exhibit 6: Compare and Contrast

Bagels/Breads

Protein

Fiber

Omega-3s

Fortified?

Ingredients

Other

Food for Life Brown Rice Bread (Serving Size = 2 Slices or 86g)

2g

2g

0 mg

No

Brown rice flour; filtered water; white rice flour; fruit juice concentrate (pineapple, peach, pear); almond meal; tapioca flour; safflower oil; fresh yeast; vegetable gum; rice bran; arrowroot; herbs.

Non-dedicated facility

Ener-G Foods Brown Rice Bread (Serving Size = 1 Slice or 30g)

2g

0g

0 mg

Yes

Water; tapioca starch; white rice flour; cold pressed high oleic safflower oil; brown rice flour; pear juice; gluten-free yeast; methylcellulose, sodium carboxymethylcellulose; calcium phosphate. Enriched with thiamine, riboflavin, niacin, iron, and folic acid.

Non-kosher

Enjoy Life Foods Original Bagels (Serving Size = 1 Bagel or 100g)

8g

5g

395 mg

Yes

Water; brown & white rice flour; tapioca flour; safflower oil; honey; grape, apple & pear juice concentrates; natural dextrin; amaranth flour; rice protein; yeast; flax powder; vanilla; xanthan gum; salt.

Vitamins & Minerals:

Calcium; magnesium; niacin (Vitamin B3); zinc; iron; Vitamin B6; riboflavin (Vitamin B2); thiamin (Vitamin B1); folate; Vitamin B12; Vitamin B6; riboflavin (Vitamin B2); thiamin (Vitamin B1); folate; Vitamin B12.

Cookies

Calories

Fat

Cholesterol

Ingredients

Other

Pamela’s Chocolate Chip (Serving Size = 1 Cookie or 23g)

130

6g

10mg

Flour base (brown rice flour, tapioca starch, sweet rice flour, xanthan gum); molasses and honey; monounsaturated safflower oil; organic chocolate chunks (natural evaporated cane sugar, chocolate liquor, cocoa butter, soy lecithin-emulsifier, natural vanilla); eggs; rice syrup and grape juice; natural vanilla flavor; soy lecithin; sea salt; baking soda.

Non-dedicated facility Contains eggs and soy

Midel Chocolate Chip (Serving Size = 4 Cookies or 32g)

140

6g

5mg

Gluten-free flour (contains corn flour, soy flour, potato flour, corn starch, rice starch, potato starch, rice flour, white bean flour, xanthan gum); dehydrated cane juice; organic chocolate chips (organic sugar, organic chocolate liquor, organic cocoa butter, organic soy lecithin, organic vanilla, organic corn syrup solids); non-hydrogenated canola oil; butter (may contain color additive annato); egg whites; unsulphured molasses; corn starch; baking soda; natural flavors; sea salt; soybean lecithin (used as an emulsifier).

Artificial ingredients Contains corn, eggs, soy Non-dedicated facility

Enjoy Life Foods Chocolate Chip (Serving Size = 2 Cookies or 28g)

120

5g

0mg

Sorghum flour; grape, apple, & pear juice concentrates; pure brown cane sugar; unsweetened applesauce (water, apples); chocolate chips (sugar, chocolate liquor, non-dairy cocoa butter); safflower oil; natural dextrin; vanilla; baking soda; xanthan gum; rosemary extract.

Bars

Fat

Sat. Fat

Omega-3s

Fortified?

Ingredients

Facility

Govinda Sesame Sensation (Serving Size = 1 Bar or 48g)

15g

2g

Varies by product (not labeled)

No

Sesame seeds; dates; honey; puffed amaranth; Siberian ginseng; sea salt.

Non-dedicated facility

Ener-G Foods Granola Bar (Serving Size = 1 Bar or 48g)

14g

1.5g

0mg

No

Filbert paste (dry roasted blanced filberts, sugar, corn starch, partially hydrogenated cottonseed oil); organic evaporated cane juice; egg white; diced walnuts; diced almonds; diced pecans; crisp rice cereal (brown rice & honey); orange peel (orange peel with sugar & oil of orange added); salt.

Non-kosher Hydrogenated oils Contains corn, nuts, eggs

Enjoy Life Foods Cranberry Bar (Serving Size = 1 Bar or 50g)

2.5g

0g

138mg

Yes

Rice flakes; brown rice syrup; cranberry; honey; grape, apple & pear juice concentrates; natural dextrin; sunflower seeds; quinoa seed; sesame seed; rice protein; flax powder; puffed amaranth; rosemary extract; xanthan gum. Vitamins & Minerals: Calcium; magnesium; niacin (Vitamin B3); zinc; iron; Vitamin B6; riboflavin (Vitamin B2); thiamin (Vitamin B1); folate; Vitamin B12.

Exhibit 7A: Sales Projections through Whole Foods—Total Chain

Figure

Exhibit 7B: Sales Projections through Whole Foods—Box Cookies

Figure

Exhibit 7C: Sales Projections through Whole Foods—Granola

Figure

Exhibit 7D: Sales Projections through Whole Foods—Bars

Figure

Exhibit 7E: Sales Projections through Whole Foods—Big Cookie

Figure

Exhibit 7F: Sales Projections through Whole Foods—Bagels

Figure

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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