Amon Anderson, Victoria Beasley, Horacio Diaz, Andy Mai

Week 9 Interview Count: 9, 134 totalReducing produce waste and increasing profit for farmers…

...providing affordable produce for consumers

We were Funky FruitReducing produce waste and increasing profit for farmers providing affordable produce for

consumers

operating in a juicy market

Operating in the $100 Bn fresh produce market in the US targeting major metropolitan

areas

Amon Anderson● Chief Structurer & Jack of all trades

● Stanford MBA and background in

agriculture investing in East Africa

Team

Andy Mai● Chief Scientist and Jack of all

trades

● Stanford CS Master

● Worked on Doordash logistics

platform

Horacio Diaz● Chief Farmer Officer & Jack of all

trades

● Stanford MBA and background in

consulting, agriculture technology

and cattle ranching

Victoria Beasley● Chief Enthusiast & Jack of all

trades

● Stanford MBA and background in

finance and cleantech

manufacturing

Week 0: Our world view

“We are very focused on

the supply. If we can

crack this, we are on our

way...”

“We can solve social

problems with this…

provide cheap access

to produce”

“How do we get this to

consumers… Can retail

be a channel?”

“Everything is

going to be

funky

looking”

“The value prop here

is price….”

“The tactics of the

business are going

to be really easy...”

“We can create so many

cool apps to collaborate

seamlessly with farmers”

Business model canvas after Week 1Key Partners

• Suppliers = local produce

farmers. We’ll source

cosmetically challenged

produce, providing a new

distribution channel and

incremental revenue

• Leverage CropMobster as

an early hack to source non-

retail produce at a discount

• Good Eggs?

• CAFF?

Key Activities

• Source farms/produce

• Optimize pickup/delivery

• Marketing to consumers.

See brilliant “Inglorious

Fruits & Vegetables”

campaign

Value Proposition

• For farmers who need to

increase their farm’s

financial productivity, our

technology and service give

farmers the platform they

need to sell their

cosmetically challenged

fresh produce

• For consumers who need

affordable produce and

want to reduce food waste,

our direct-from-the-farm

service is a convenient way

to get fresh, local produce

for less

Customer Relationships

• Utilize Tilt-like model

within locales to concentrate

sales and minimize delivery

costs

• Consider hiring

neighborhood reps

• Advertise where

customers shop / work /

play

Customer Segments

• Budget-conscious moms

looking to make her family’s

meals healthier by including

more fruits and vegetables,

but without breaking the

bank

• Community- and

environment-advocating

foodies looking to support

their local food system and

reduce food waste

• Busy working

professionals who value

local, sustainably grown

produce but want a faster,

more convenient way to get

it

Key Resources

• App for farmers

• Backend platform to

aggregate produce

• Sorting/packing facility

• Pickup and delivery

• Produce traceability

• Stand at farmers’ mkt

Channels

• TBD, but consider direct to

consumer through home,

school & workplace

delivery

Cost Structure

• Materials cost: cosmetically challenged produce (discounted), packaging

• Distribution costs: labor for pickup and delivery. (Idea is to avoid vehicle

CapEx by employing an UBER-like model.)

• Marketing costs: fliers, AdWords, Ads

• Fixed costs may eventually include warehousing, packaging equipment

Revenue Streams

• Revenue comes from sale of produce; target recurring revenue

• Pricing tactic is simple: our direct-from-farm produce is priced at a 30%

discount to what customers can buy in retail. Produce is fresher and just as

nutritious; however, it’s simply cosmetically challenged and is therefore

priced at a discount.

Week 1: got Out of the Building to start

talking to customers and farmers

“The important part

is how fresh the

produce is, not how

it looks,” Nira, Milk

Pail Customer

...but faced some early challenges on the

supply sideStarted validating the consumer market...

“20% of apples I produce

are disfigured. But I still

sell them at the farmer’s

market, to restaurants, to

make jellies or to juice,”

Nick, farmer

“Whole Foods has really

high standards so we need

to find alternative uses. We

sell them in the market, feed

them to chickens or

compost,” Sean, farmer

Week 2: Where is all this funky produce?

“I manage my off-spec

produce fairly efficiently; not

enough volume to worry

about,” Caleb, Farmer with

a basket of unsold squash

ready to feed pigs

“There is a huge supply

of off-spec produce. I buy

truckloads of oranges

from the largest citrus

grower,” Seconds’ broker

“Fresh fruit sells for 5-20x

the fruit we sell for juicing.

It’s a huge economic

loss,” CFO large citrus

grower

Learning: Maybe we need to focus on large farmers

First sale

● Started selling through our web-page and

advertising on Facebook to direct traffic to

our website

● Found that highlighting price

competitiveness of our product was a key

driver of traffic to our website

Week 3: let’s run an MVP to prove that

people will buy this

We said NO to enterprise sales We focused on consumers

“We focus on produce

yield and have all

these and those

requirements,” --

Enterprise buyer Further confirmation of

consumer demand: funky /

glut produce at a discount

at a local store

Week 4: successful consumer-focused MVP

1.0 but still struggled with suppliers

Did we learn from MVP 1.0? Oh yeah...And back to small farmers because we

learned about a little blue book...

Consumers bought our idea. They loved how

cheap and how convenient it was

They had mixed reaction to our product mix

● Amount: Some wanted more, some

wanted less

● Balance: Some wanted more fruit others

wanted more veggies

● New: Some weird produce variety (not

just funky)

“I don't deal with anyone outside of the Blue Book. I can't technically sell to someone who is not in the book because in this industry many people have gone belly-up, and my bank looks at that,”

-- Large Farmer

After 4 weeks, here we were with lots of

things in our plate

Week 5: set the stage for MVP 2.0

Need to figure out supply

Q: What’s our ideal farm archetype(s)?

A: after much debate...we settled for small

farms that already sell at farmers’

markets.

We got out of the building and started

talking to farmers at farmer’s markets...

Sounds good, but we don’t

know volume and pricing

until 2-3 days prior to

purchase. Call us back.

Okay! We will call you

back on Thursday.

11 farms indicated interest

Hi! Can we buy your

seconds?

Week 6: MVP 2.0, farm supply + Stanford

demand

Supply Demand

40% Gross Margin

● 25% of purchases agreed prior to market;

25% from farmers with relationship; 50% at

the end of the market from farmers with no

“previous relationship”

● 45% of produce was funky

● Secured great deals: ~50% off retail

prices

● Began relationships with farmers

● Miss sales target; 35 orders out of 50

target

● 25% of MVP 1.0 customers purchased

again

● No orders outside of Stanford (are we

building something for our friends only??)

● Customer satisfaction issues: packaging

+ quality of produce

Need to improve the

experience for consumers

MVP 2.0 in Pictures

Source Pack

Deliver

Week 7: distilled learnings and refocus

BIG supply news…

Coke Farm, a medium-sized

organic farm, wants to supply usFocus on packaging and branding...

Sturdier boxes and a trusted

brand (affordable + healthy) for

customers

Small farmers like us...

Marsha, a small farmer we

worked with, asked if we wanted

to buy from her again

Get out of the Stanford bubble...

Target families and offices in

RWC, EPA, and PA

BIG demand news…

Farm Hill wants us to

supply their kale + lemons

BMC after Week 7

Week 7 in Pictures

Marsha’s surprising

text

Brainstorming session on branding and

hypothesizing our non-Stanford customer

segments

Week 8: prepped for MVP 3

Marketing lessons: word-of-mouth has highest efficacy; first company push

(yielded 8 orders at one drop-off location); non-GSB customers

We landed on a farmer archetype: medium-sized diversified organic farms

Packaging research

Went out tour of the

SF Wholesale Market

Saw pro operations @

The Fruit Guys

MVP 3 snapshot

● Sold & delivered 64 boxes, for a total of 120+

boxes sold; new + repeat customers

● Satisfied first enterprise customer, wants to

buy more this week

● New ideas for distribution (one-to-many)

● “AWESOME!!” “Expand it to SF.”

● “I'm a big fan of Bounty Box and have been

telling friends about it - I hope it continues! I

tend to get into a rut of buying the same

produce and this will help me to cook/eat a

variety of fruits and veggies and try new

recipes, too.”...expanding value prop

● “I didn't get a celery root in my bounty box :(“

...QA issues

● “The portions of a lot of the vegetables don't

work for cooking for a family.”...consider less

variety, greater concentration

● “I was really disappointed that after having my

box for two days, I had to throw away 5 items

because they were moldy (mostly oranges.)

This felt like a huge waste and a bummer! : (“

...how do we get people to refrigerate? (and

screen for bad produce?)

● Packaging better, but still needs refining

The good... ...and the constructive feedback

MVP 3 customer survey results

● Survey respondents...n=34; 22 new customers, 12 repeat customers

● How likely is it that you would recommend Bounty Box to a friend or

colleague? (1-10 scale) Average 7.82

● Reasons for purchase were myriad, but preferenced in this order: 1)

supporting local farms, 2) price, 3) waste reduction story, 4) convenience

● Favorite items: broccoli, kale, carrots, apples, beets

● Over half of respondents wanted recipes printed and emailed

● Was Bounty Box a good deal? 53% yes; 16% no; 31% didn’t know...that

last # tells us customers don’t know what they spend on produce

● 97% reported Bounty Box produce was as fresh or fresher than what they

normally buy

● Nearly 70% of our customers buy their produce at chain grocery stores

● 88% usually buy at least some organic produce

And so here we are in Week 9

What did we learn?

RH side of canvas...consumers and the

importance of finding a real need, marketing

LH side of canvas...farmers, the wholesale

ecosystem, partnerships, distribution

Bottom of canvas...scalability, unit-level

economics

The process...get out of the building,

interview fearlessly and tirelessly, test

hypotheses, MVP, iterate, interview some

more

Do we think this is a viable business?

YES. And we like that we were cash-flow

positive from Day 1.

What about scalable? We hope so, but

recognize these key conditions/questions:

• Must nail target customer...how big is

that market size?

• Which geographies?

• Can we scale beyond immediate truck-

delivery zone? What structure?

• Can we keep operating costs low?

Bounty Box will live on with a subset of our (beloved) team

Appendix

MVP 2.0 Payment Flow

Customer

$19.99 for Bounty Box

$6.00 for home delivery

Deliver box direct-to-home or

for centralized pick-up

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