KeHE Uncovered: Real Case Study of a Food Brand's First Payout
Release Date: 05/19/2025
The Good Food CFO podcast
Ever wondered why finding a co-manufacturer feels impossibly difficult? Sarah sits down with Julia Megson, CEO of ReScale, who reveals the shocking reality that co-manufacturers receive about 100 inquiries monthly but only work with one to two brands from that entire pool. Julia's unique background – from auditing over 100 contract manufacturers at Trader Joe's to founding a tech platform specifically for emerging food brands – gives her unparalleled insight into what actually works in co-manufacturing partnerships. She breaks down why this process is more like sales than shopping, and how...
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In this eye-opening episode, Sarah breaks down the harsh food distributor chargeback reality that many founders don't discover until it's too late. Using a real-world example of a brand that invoiced KeHE for $68,267 but received only $13,345 (just 19.5%), she dissects exactly where that money went. From the surprising "initial PO" payment policy that can delay your first check for 3-6 months, to the specific chargebacks that consumed 80% of a brand's revenue, Sarah provides the financial transparency food entrepreneurs desperately need before signing distribution agreements. The episode...
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Ever wonder how a food business thrives for four decades without compromising on quality? Sarah sits down with culinary visionary Ariane Daguin, who transformed America's specialty meat landscape with just $15,000 and an unwavering commitment to sustainability. Ariane shares the unvarnished truth about building D'Artagnan from the ground up. She walks us through those challenging first ten years managing tight cash flow, explains why turning down certain growth opportunities actually strengthened her business foundation, and describes the strategic "shotgun clause" she used when buying out her...
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In this episode of The Good Food CFO Podcast, Sarah reveals the counterintuitive financial tracking system that successful food brands actually use to drive profitability. Responding to a listener's question about which financial reports matter most, Sarah challenges conventional wisdom by presenting a strategic hierarchy that puts cash flow management at the top of the priority list—not the P&L statement many founders obsess over. Sarah unpacks why most food entrepreneurs look at their financials in the wrong order and introduces a practical framework that helps spot problems before...
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In this Building a Business on Your Own Terms episode, Sarah sits down with Matt Cross, co-founder of Harvest Chocolate, a bean-to-bar chocolate company in Tecumseh, Michigan. Matt shares how he and his wife Elizabeth transformed their culinary expertise into a thriving chocolate business that started in their kitchen during the pandemic and now operates a successful retail location with multiple sales channels. Matt reveals how Office Hours helped confirm his business was financially healthy and ready for strategic growth. Listeners will discover practical insights about: Using profit...
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Despite rising costs and economic uncertainty, Sarah brings her characteristic straight talk to food business finances in this timely episode: "All is not lost." Drawing from both historical patterns and current market insights, she explains why specialty food brands can still thrive during economic downturns as consumers continue treating themselves to small luxuries like artisan chocolate and premium coffee. "This is not a shelter-in-place moment," Sarah emphasizes, but rather a time to be strategic about where you invest your resources. The episode unpacks three critical focus areas...
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In this episode Sarah sits down with Christopher Hudson, the Arizona native behind Benny Blanco Tortillas. After years in food service, Christopher purchased the company in what he calls "a match made in heaven." Christopher's approach to building a business on his own terms combines premium quality ingredients with transparent sourcing, a premium pricing strategy and a willingness to say "no" to opportunities that don't make financial sense or support his vision for a thriving local food industry. In this episode you’ll hear: Why Christopher turned down a $1.2M deal and the principles...
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Did you hear the episode where Sarah told her client they needed 70% product margins? Were you curious why it was so much higher than the usually recommended 51%? In this episode, Sarah pulls back the curtain on how she determines the right product margins for different food businesses, and guides you to finding yours. She reveals where your P&L is hiding crucial information and walks through her "orange slice" method for visualizing what's really happening with the revenue you earn. You'll learn the importance of separating “core COGS” from “other COGS”, why so many...
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In a world where food startups chase rapid growth and quick exits, People's Choice Beef Jerky stands as a refreshing counterexample. This Los Angeles-based company has been crafting premium meat products since 1929, and is now thriving under fourth-generation leadership. Their story offers valuable lessons for food founders looking to build sustainable, profitable businesses that can withstand the test of time. In this episode of the Good Food CFO podcast, Sarah Delevan sits down with owners and siblings Brian and Sara Bianchetti as they share all that they have learned while continuing to...
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After more than 10 years away, Sarah decided to return to natural foods' biggest industry event - but why now? In this candid Season 14 opener, Sarah takes you behind the scenes of her Expo West experience, revealing what's changed, what hasn't, and whether the industry hype actually lives up to reality. The conversation also explores the striking contrast between the big business of Expo West and the Intense Conference for farmers market founders, managers and vendors Sarah attended just days later. This juxtaposition frames an honest discussion about what really matters in our food systems -...
info_outlineIn this eye-opening episode, Sarah breaks down the harsh food distributor chargeback reality that many founders don't discover until it's too late. Using a real-world example of a brand that invoiced KeHE for $68,267 but received only $13,345 (just 19.5%), she dissects exactly where that money went.
From the surprising "initial PO" payment policy that can delay your first check for 3-6 months, to the specific chargebacks that consumed 80% of a brand's revenue, Sarah provides the financial transparency food entrepreneurs desperately need before signing distribution agreements.
The episode explores several chargeback categories including intro allowances, free fills, spoilage allowances, and promotional fees – revealing how these can quickly transform an exciting distribution opportunity into a significant cash flow challenge.
Sarah shares practical strategies for surviving the distribution onboarding process, emphasizing the importance of “velocity over doors” and suggesting regional distributors as potentially more transparent alternatives to national giants.
Tune in for an essential financial reality check that could save your food business from a costly distribution mistake or help you prepare properly for sustainable growth through distribution channels.
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