How I Built This with Guy Raz · Podcast summary
Late July Snacks: Nicole Bernard Dawes. Crackers and Cookies were Failing… Tortilla Chips Saved Them
Nicole Bernard Dawes, founder of Late July Snacks, shares how her organic snack company struggled with crackers and cookies before finding massive success with tortilla chips. She also discusses the challenges of being a woman entrepreneur in the food industry and the importance of perseverance.
Listen on the show ↗Key takeaways
- 🍪Nicole launched Late July in 2003, focusing on organic crackers and sandwich cookies, securing national distribution with Whole Foods.2:45
- 😔In 2008, as the financial crisis began to unfold, her father, Steve, was diagnosed with terminal pancreatic cancer and passed away shortly after.3:31
- 🔄In 1995, Steve had the opportunity to buy back Cape Cod Potato Chips from Anheuser-Busch for a significantly lower price than he had sold it for.3:32
- 💸Just weeks after her father's death, the bank called in a $3.5 million loan, putting Late July in technical default.3:59
- 🚀Nicole pivoted Late July to organic tortilla chips, which became a massive success, leading to explosive growth from $8 million to $100 million in sales.5:57
- 🥔Nicole's father, Steve Bernard, founded Cape Cod Potato Chips in 1980, selling kettle-cooked chips from a small storefront in Hyannis, Massachusetts.6:06
Chapters
- 0:00Introduction to Nicole Bernard Dawes and Late July Snacks
- 5:27The Cape Cod Potato Chips Legacy
- 7:02Founding Late July Snacks and Early Challenges
- 8:49Personal and Financial Crises
- 9:59The Tortilla Chip Pivot and Success
- 10:07The Campbell's Acquisition and New Ventures
- 10:18The Entrepreneurial Journey and Lessons Learned
- 14:44The Role of Luck and Hard Work
The digest
Nicole Bernard Dawes, founder of Late July Snacks, grew up immersed in the world of food. Her father, Steve Bernard, founded Cape Cod Potato Chips, and her mother ran a health food store. This upbringing instilled in Nicole a deep understanding of the food industry and a passion for creating delicious, healthy products. However, her journey with Late July Snacks was far from smooth, marked by early struggles, personal tragedies, and a relentless pursuit of the perfect product.
The Early Days and the Cape Cod Legacy
Nicole's father, Steve Bernard, launched Cape Cod Potato Chips in 1980, selling kettle-cooked chips from a small storefront in Hyannis, Massachusetts. The company quickly gained popularity, offering a distinctively crunchy and flavorful alternative to existing potato chip brands. "This is really crunchy and really different. It tastes like something I might get at the county fair," Nicole recalls people saying. The unique cooking process, different from the continuous cook method of brands like Lay's, set Cape Cod Chips apart. In 1985, Steve sold Cape Cod Potato Chips to Anheuser-Busch, a decision that initially devastated a young Nicole, who viewed the company as a sibling. However, this sale provided the family with significant financial stability.
Years later, in 1995, Steve had the opportunity to buy back Cape Cod Potato Chips from Anheuser-Busch for a significantly lower price than he had sold it for. Nicole, fresh out of college, joined her father to help rebuild the company. They reopened the manufacturing facility on Cape Cod, bringing back many of the original employees. Despite the logistical challenges of operating a factory in Hyannis, the company thrived, largely due to its popularity as a tourist attraction, offering factory tours. Nicole, leading the marketing department, even developed a successful reduced-fat potato chip. However, in 1999, Steve sold Cape Cod Potato Chips again, this time to Lance, Inc., for $30 million. While a great return for her father, this second sale left Nicole feeling adrift and determined to build her own food company.
Keep reading in The Digest
The full 4-minute article, 4 more sections, and every new episode from How I Built This with Guy Raz and the creators you follow.
- The Birth of Late July and Early Struggles
- Personal Tragedy and Financial Crisis
- The Tortilla Chip Pivot and Explosive Growth
- The Campbell's Acquisition and a New Chapter
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