The journey from waiting tables to selling a company for $281 million sounds like a remarkable success story.

In 2006, Justin Gold's life took a significant turn during a mountain biking excursion in Boulder, Colorado. It was during this ride that he conceived a business idea that would eventually propel his nut butter brand, Justin's, into the mainstream.

"I’m on a mountain bike ride right here in Boulder, [Colorado], and I’m eating an energy gel [packet]," Gold shared in a recent interview with CNBC. "And I was curious why you couldn’t put peanut butter or almond butter in that same type of squeeze pack and have an on-the-go, plant-based protein experience like an energy bar."

At that juncture, Gold had already been selling nut butters at a bustling farmer’s market in Boulder for a span of two years. He had even secured a prized spot on the shelves of the local Whole Foods Market.

However, the market landscape still predominantly favored traditional peanut butter brands, with almond butter not yet enjoying widespread popularity. Furthermore, the innovative flavor combinations offered by Justin’s, such as maple almond or chocolate hazelnut, were not yet mainstream.

Despite receiving positive feedback from customers, Justin’s had not yet turned a profit. Gold found himself continuing to wait tables and maintain a retail job to make ends meet.

Yet, within just two years of introducing nut butters in convenient pouch packaging, Justin’s began to see profitability. Gold subsequently bid farewell to his day jobs, as recounted in an interview with Entrepreneur in 2012. The company's success culminated in its acquisition by Hormel Foods in 2016 for $280.9 million, as reported in an SEC filing from that year.

This narrative underscores the transformative power of a simple packaging strategy in reshaping the fortunes of the company.

Attracting fresh clientele through a redesigned look

After completing college in 2000, Gold began crafting nut butters for personal use in a food processor, experimenting with various nut varieties and flavors such as cinnamon and honey.

His concoctions proved so delectable that his roommates couldn't resist sampling them, prompting Gold to label his jars with "Justin's" as a playful reminder. This moniker stuck, and he managed to raise around $50,000 to transition his culinary passion into a bona fide business, as per a spokesperson for Justin's who spoke with CNBC Make It.

However, when attempting to package the nut butters in pouches, he encountered an unexpected obstacle. Manufacturers he approached declined to package nut butters due to concerns about potential allergen cross-contamination with other products, Gold shared with The Kitchn in 2019.

Undeterred, Gold took matters into his own hands and sought out an outdated commercial machine. He secured a loan of $75,000 from his roommate's parents to purchase the machine, as reported by a Justin's spokesperson, and utilized it to produce his own squeeze packs.

These portable offerings proved instrumental in attracting new customers. "For those unfamiliar with almond butter, they could try it for 99 cents," Gold explained to Entrepreneur. "Subsequently, they would return to purchase a $10 jar, ultimately spending more."

Attracting notice from a major player in the food industry

In 2009, Gold reportedly secured nearly $1 million in funding from angel investors to expand nationally and diversify product offerings. Two years later, Justin’s introduced its now-popular chocolate nut butter cups. By 2015, the brand had become a national sensation, generating over $50 million in annual revenue, as reported by The Wall Street Journal.

As Justin’s success grew, it attracted interest from larger corporations seeking to acquire the brand. Initially hesitant to sell his creations, Gold rejected an offer from Hormel Foods, a packaged food conglomerate known for brands like Planters nuts and Skippy peanut butter.

However, in 2016, Gold reconsidered and accepted a new offer from Hormel to acquire Justin’s, but with a condition: the business must remain in Boulder, and no employees would lose their jobs. Gold emphasized the importance of preserving the team behind the brand's success.

Remaining with the company under Hormel until 2021, Gold now serves as the chief innovation and strategy officer for Rudi’s Rocky Mountain Bakery. Reflecting on the acquisition, Gold expressed astonishment at Hormel's commitment to Justin’s vision, which ultimately made the decision to sell more straightforward.

According to Gold, the difference between a company being sold and being acquired is significant for a founder. He noted that Hormel's genuine interest in Justin's made the acquisition process smoother, highlighting the importance of building something desirable rather than with the intention to sell.

Source: CNBC‍