Tim DraperFounder and Managing Partne, Draper Associate · I back the ideas that look crazy first

The Growth of It's Skinny Pasta

23 Jun 2023 · 1 min

Watch on YouTube

1:16

In this interview, a company representative (Kenny) outlines the firm’s ambitious growth plans for the next 12 months, targeting a $10‑12 million run‑rate. The growth is expected to be driven largely by digital channels, with a shift from paid Amazon ads to user‑generated content (UGC) on TikTok and Instagram, alongside continued retail expansion. The company reports blended gross margins of roughly 50% across all distribution channels. A significant change in the sales mix is highlighted: direct‑to‑consumer (Amazon and e‑commerce) sales are projected to rise from about 30% in 2021 to 60‑65% this year. Key retail partners include BJ’s Wholesale, ShopRite, Food Lion, Price Chopper, Acme, Rouses, H‑E‑B, Central Markets, and Fresh Thyme. The discussion also touches on the company’s age, indicating it was founded in early 2020.

What are you expecting to do for this year?
For the next 12 months, we believe we can hit a $10 to $12 million run rate.
And why? Are more stores jumping in?
Yeah, a lot of it's going to be fueled by digital growth. Right now on Amazon, all we're doing is paid ads. So we're going to be able to start layering in some more UGC content, user-generated content, through TikTok and through Instagram, and also obviously continued retail expansion.
What's your margin?
Our margins across the whole set and all distribution channels are blended around 50%.
How much of that is direct-to-consumer and how much is retail?
So last year in 2021, we did about 30% direct. This year it's going to be closer to about 60%, 65% direct. When we say direct, that's Amazon and e-commerce. We lump them together. What stores are you in? Our largest account is BJ's Wholesale on the East Coast. It's kind of like Costco on the East Coast. We have ShopRite, Food Lion, Price Chopper, Acme, Rouses. We just got H-E-B and Central Markets. We have Fresh Thyme.
How old is this, Kenny?
So yeah, we started it in early 2020.