Re-introducing Ice-Cream
After five years of working in a top consulting firm, Pilk co-founder Alex Pagonis wanted to try his hand at something new. With a deep cultural and family connection to ice-cream he ventured into a mission of creating an indulgent plant-based alternative. In this week’s episode we chat to Alex not only about Pilk Foods and the founding story, but also about his previous gelato startup and the valuable lessons learnt. We also talk about the ups and downs of being a founder, having difficult conversations with stockists, their approach to funding and how Pilk are choosing to do plant-based ice cream differently.
Having worked with startups in his consulting job, Alex saw how passionate founders were about what they did, which planted a seed to follow through on his own venture: a gelato company targeted at the fitness community.
Following in his grandfather’s footsteps who founded his own ice-cream business through the 70s, 80s and 90s, gelato became generational.
Alex: “Ice cream wasn’t this weird thing… it was something I had kind of grown up with my whole life.”
An ice-cream machine later and recipes were being formulated in the kitchen, with an emphasis on high protein and no sugar. However, the functional product didn’t last.
Alex: “I learnt a lot from Fiftein … I think the key was that people don’t like healthy ice cream.”
Alex: “That coupled with COVID just hitting [made] it really challenging to speak to grocery managers, stockists, it was just a very challenging environment.”
Alex: “At the end of the day it kind of got a bit crap trying to convince people that your product was good … you shouldn’t have to convince people … people are either going to love it or they won’t.”
But the lessons learnt have had positive repercussions when it comes to the founding of Alex’s second venture: Sydney-based vegan gelato company Pilk Foods.
Alex: “Not only did I make every mistake under the sun I possibly could have made, but I did the complete opposite the second time around and hacked the growth journey, hacked the R&D cycle, and actually just developed a product that first and foremost people loved.”
Instead of thinking about what to say, advertising the amount of protein and macro-profiles, the key is to think simply about what the product needs to taste good, and worry about the rest afterwards.
Parallel to Alex’s journey at Fiftein, his Pilk co-founder Dyl was running his own ice-cream venture, and incubated Alex for a bit working in the same facility together
After having some conversations with them, Alex realised what he was doing just didn’t make sense and triggered ideas about what to do next.
Alex: “I think the hardest thing in the world is knowing where to draw a line in the sand and call it quits.”
Alex: “Ice cream has been created to be indulgent … to put a smile on people’s faces.”
A key to the story is that despite Pilk ice cream being plant-based, Alex and Dyl aren’t. The inspiration struck when Alex experienced dairy intolerance and decided to investigate what options were out there on the market.
Alex: “I was super disappointed in it all. It just didn’t hit the way I needed it to hit as a consumer.”
So he brought some back to the facility and began talking to his business partners with the final thought being that surely they could do something better.
Alex: “We decided if not us then someone else will.”
The chasm, says Alex, between plant and dairy-based ice-cream, is that the vegan premium product landscape is currently dominated by ingredients. When people talk about what makes good ice-cream they talk about rich flavours, creaminess and good texture, whereas non-dairy products are valued based on whether they’re refine sugar free or organic.
Alex: “What people see and experience as premium ice cream is not the same in the plant-based space.”
Alex suggests that perhaps this is because the same recipes are being used with milk substitutes, an approach he claims isn’t going to do the trick.
Alex: “Whereas we looked at it and thought we’re not vegan, we’re not plant-based … but surely you can do better than this. Surely if someone put time and energy into it you could crack a product that people love.”
Alex: “The goal for us is that you shouldn’t be able to tell it’s plant-based.”
This approach is also mirrored in the way Pilk approach product development; they think about what gelato they already love and replicate it based on the macro-content (ie. the number of required protein, carbs and fats).
Alex: “So we kind of worked backwards … we know we need this macro blend, so what are the ingredients we can use that will fundamentally allow us to achieve this but almost taste as neutral as possible … that will allow us to build upon that base to create the flavours we want to create.”
But it’s one thing to have a good product, and another to have a large following of consumers who are willing to buy what you produce.
Alex: “Sampling our products and putting our product in someone’s mouth to try is going to yield the best results, and every time we’ve done that … we get really pull-through.”
This has been more challenging due to COVID-19, leading the startup to go digital, with collaboration events planned for the future. Mostly though, Alex says, the sales are driven by word of mouth.
Alex: “I think when you have a great product that people like and enjoy … you want to tell people about it.”
But will the product be enough on its own in the longer-term?
Alex: “I think we’re going to need to build a bigger and stronger brand … I think branding is everything, and whilst it’s product-led now, we’re super cognisant of that.”
One of Pilk’s suppliers that has contributed significantly with ingredients has helped map out the startup’s future of manufacturing, with the first manufacturer being focused on small batches, making growth manageable and occur at a pace which Alex and Dyl are comfortable with.
Alex’s experience as a founder so far?
Alex: “It changes you … when you go out on your own you risk it, and when it doesn’t work out you call yourself into question a lot.”
Alex: “I’ve had a lot of down times, some very average times wondering how I’m going to make it all work … it’s tough, it’s tougher than I thought it would be, especially when you’re bootstrapping and have thrown everything you’ve worked for into it.”
Alex: “For better or worse I still think it’s the best decision I’ve ever made because it’s had a profound impact on me.”
To learn more you can follow Pilk Foods on Instagram, or visit their website.