Fast Track
This entrepreneur's hot business idea taps into consumers' cravings for cold treats.
Company name and description: Cold Fusion
Foods, a creator of herbally active, protein enriched frozen juice
bars in Culver City, California, and Seattle
Starting point: March 2000 with $600,000 in
savings and family investment
2000 sales projections: $1
million
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On the starting blocks: Madden got the idea
for the product after a workout, and it led to the creation of the
juice bars. He'd grown up in the family's ice cream
business and worked as an investor. After two years of doing
research and development, he got his company up and
running.
Going national: The frozen juice bar
line-three of them herbal and four of them protein enhanced-are
distributed in natural food stores and health clubs as well as the
health section of large chain stores on the West Coast and in
Arizona. By next summer, Cold Fusion will have penetrated markets
in the Northeast and Southeast, as well as Chicago.
How they made the leap: Cold Fusion created
partnerships with distributors that serve national food stores; it
also developed a broker network that carries its products directly
to stores, where customers are offered free samples and receive
point-of-sale information. A broad-based ad campaign, which
generated articles in national fitness and holistic health
magazines as well as sponsorships of athletic events, has raised
awareness of the products. The company's Web site, in addition to links
on other sites, generate additional exposure.
Greatest challenge: Educating consumers
about a product that's the first of its kind. "People
think this is just a really expensive popsicle," Madden says
of the frozen power bars, which retail for approximately $2.50 to
$3. "We tell them it's a power bar in frozen
form."
Best advice for nationally minded
start-ups: "Realize that everything will take three
times as long and cost three times as much as you anticipated. Have
your funding sources in line early. Give more equity in your
company to outside investors in order to maintain your
sanity."