Elizabeth Stein (Host) 0:00

Hi everyone. I'm Elizabeth Stein, founder and CEO of Purely Elizabeth. And this
is Live Purely with Elizabeth,
featuring candid conversations about how to thrive on your wellness journey.

Elizabeth Stein (Host) 0:15

This week's guest is Tom Spier, founder and managing partner at consumer VC
firm, Boulder Food Group. Prior to BFG, Tom was Chief Operating Officer at Bare
Naked, having been one of the first employees. Today, BFG invests in brands
like Chameleon, Coolbrew, Caulipower, Fourth & Heart, Rasa, Quinn, Midday
Squares, Olipop, and more. In this episode, Tom and I catch up on his journey
from being an early employee at Bare Naked to selling the brand to Kellogg’s,
and eventually starting his own VC firm focused on consumer packaged goods. Tom
and I discuss what makes an attractive brand to invest in, some of the key
characteristics of great founders, entrepreneurial challenges and growth
strategies, and what’s driving growth in the food and beverage categories
today. This is a great episode if you’re interested in learning about building
and investing in CPG brands. Enjoy.

Elizabeth Stein (Host) 1:16

Tom, welcome to the podcast. So fun to catch up with you today and talk about
things that we’ve never talked about. So I’m excited to really hear some of
your background that I don’t know, and then talk all about, I think, the other
side of business that probably many of our listeners don’t get to hear about.

Tom Spier 1:33

Thanks so much for having me. Yeah.

Elizabeth Stein (Host) 1:36

Today, you are managing partner of Boulder Food Group, which is a VC firm. But
you weren’t always on that other side. You really started as more, I believe,
of the operator, and would love to start with that background, and was Bare
Naked one of your first jobs? Or what were you doing before that even?

Tom Spier 1:58

No, I graduated from college in 2000, so it was an interesting time to enter
the workforce, you know, just right at the peak of the dot-com bubble, or it
was really starting to burst, I guess, when I entered the workforce. My first
job was in New York. I worked for JP Morgan. Got really lucky getting the job.
I found a job posting on Yahoo when there was a Yahoo job board, and got an
interview for myself out to New York to interview with the real estate group
out there. I was really fortunate to get the position. I was sort of off-cycle
when I was doing the interviews because I thought I was going to go straight
into becoming an entrepreneur. It was great to get some foundational experience
at JP Morgan. So I was there for a couple of years, then I worked for a
smaller, boutique investment firm, also on the real estate side. And then in
2004, I really had a very fortunate opportunity to become part of the early
team of Bare Naked Granola.

Elizabeth Stein (Host) 3:12

Where did that invitation even come from?

Tom Spier 3:15

One of the co-founders, Brendan Synnott, was my college roommate. We were at
Vanderbilt together, and he and Kelly Flatley had started the business. They
were looking for some kind of business acumen—not that they didn’t have any,
but the business was growing fast. My initial offer was actually to help find
someone to join them, but they said, “Why don’t you do it?” I didn’t know what
I was doing, but they wisely found a mentor for me. So, my official role with
the company was Chief Operating Officer. I helped a lot on the operations and
finance side, helping us achieve bank loans, lease financing transactions,
capital raises, and growing the business until we eventually exited in 2007.

Elizabeth Stein (Host) 4:21

When they first reached out, did you see this as a long-term thing? What were
your first expectations or thoughts about the business?

Elizabeth Stein (Host) 4:35

I had huge expectations, really. I was living in New York at the time, and the
products were being sold in area grocery stores. I could see just by walking in
these stores that the velocities were amazing. You could just tell the
placements were great, and there was a buzz around the brand that made me
think, “Wow, this can really be a pretty interesting business.” So, yeah,
definitely, I was a full believer. Drank the Kool-Aid, helped raise some of the
early money from my own friends and family. It turned out to be a great
investment for those who participated. A lot of it came down to my belief that
we could make this happen by being nimble, aggressive, and taking plays from
the beverage playbook in terms of marketing and strategy, and applying it to
the cereal category.

Elizabeth Stein (Host) 5:30

So, you were there for a number of years, ended up selling, and then what
happened next?

Tom Spier 5:37

I grew up in New Mexico, as did my wife, and we both wanted to be back in this
part of the country. So, we moved to Colorado after the exit in late 2007 and
took a little bit of a breather. My wife and I both love to ski, so we did that
for a year, which was just wonderful. But I knew I had to get back to work to
build my career, make money, and do the things I wanted to accomplish with my
wife and family. In 2009, I met another great entrepreneur named Phil Anson,
who had started a company called Phil’s Fresh Foods. We partnered to transform
it into Evolve Foods, a frozen food brand. I played a similar role to my time
at Bare Naked, helping with capital formation and setting up some early systems
with a talented team. We had a good run, and we eventually exited that company
to Boulder Brands in 2013. Today, Evolve is within the ConAgra system.

Elizabeth Stein (Host) 7:36

I think it’s amazing that you went through it a second time. It’s hard enough
doing it the first time, and so many people aspire to do it again, but it’s not
always successful. What were some of those things you learned from Bare Naked
that you took with you into Evolve?

Tom Spier 8:01

Having products that are fundamentally working is critical. Both Bare Naked and
Evolve had strong sales velocities that justified not only being on the shelf
but being top-performing SKUs. Additionally, building an innovation DNA into
the company is essential to stay relevant, stay ahead of trends, and remain
appealing to retailers. We did that well at both companies, and it’s something
we try to instill in the businesses we work with today.

Elizabeth Stein (Host) 9:01

So, let’s talk about today. You exited Evolve and transitioned from the
operator side to the investment side. How was that transition for you?

Tom Spier 9:15

Even while running Evolve, I had my eye on working across multiple businesses
and making investments. Before Boulder Food Group (BFG), I’d already set up and
invested in a few companies, including Ibotta, a Denver-based company that went
public earlier this year. My hope was to leverage my experiences in CPG,
believing there was so much potential for better-for-you products. With the
exits from Bare Naked and Evolve, I was fortunate to launch our first fund in
2014-2015.

Elizabeth Stein (Host) 10:29

Having had success with Bare Naked and Evolve, you must have a keen eye for
when a brand is ready to scale. As you think about your investments today, with
hundreds of brands coming across your desk, what makes a good investment? How
do you spot great brands?

Tom Spier 11:08

There’s an instinctual aspect to it, but a lot comes from experience—seeing
what works and what doesn’t. We look for both early-stage opportunities (Series
Genesis or Series Seed) and later-stage opportunities that are a bit de-risked.
In later-stage companies, it’s easier to say, “That’s a winning concept”
because you can see the performance data. But the most rewarding investments
are when we take a leap of faith early on, focusing on the people behind the
brand. Amazing people with discipline, good judgment, and a bit of boldness
make a huge difference.

Elizabeth Stein (Host) 12:54

It’s interesting that, despite imperfect branding or packaging, sometimes
someone can see potential. What qualities do you look for in a founder or
leader when evaluating a potential investment?

Tom Spier 13:58

Every founder is unique, and we try to hone in on their strengths and then
surround them with others who can support where needed. Some founders are very
opinionated, which can lead to strong results, while others are more
consensus-building. Success comes in many forms, but personal awareness—knowing
your strengths and weaknesses—is crucial. We value intellectual honesty, where
founders don’t just spin a positive story but are honest with themselves,
looking at data and facts objectively to stay ahead of competition.

Elizabeth Stein (Host) 16:10

So, on that same topic, as you think about different personalities that people
have and just the fluctuations that happen in business—and how different people
handle stress—you’ve had the experience of being on the operator side, so you
know about the headaches, the supply chain challenges, and everything else.
What advice do you give your founders on getting through the highs and lows and
just the constant roller coaster that is business?

Tom Spier 16:50

Yeah, it’s important to take it with a grain of salt. Not to diminish the
importance of the business, but at the end of the day, hopefully, we’re not
talking about life and death—unless, of course, there’s a massive quality issue
that could harm someone. Generally, though, we’re dealing with business issues
that are crucial but not the end of the world. Health and well-being are
paramount, so I try to help founders keep perspective. If they’re feeling
really stressed, I remind them that there’s more to life than business. It’s
hard because our businesses feel like our “babies,” and it’s tough not to be
emotionally connected. I remember as an operator feeling like it was a roller
coaster with intense ups and downs. As investors, it’s more like turbulence in
an airplane; we feel the bumps, but it’s less severe.

Elizabeth Stein (Host) 18:54

I couldn’t agree more. It’s difficult, especially in the early stages, when
every low seems like the end of the world. It’s about taking that 10,000-foot
view and realizing that it’s not life or death, and just figuring out how to
solve each problem as it comes.

Tom Spier 19:26

Exactly. Easier said than done, of course. Sitting here, it’s easy to say,
“Take it in stride,” but I’ve been in the hot seat. I know the sting of issues
like retail partnerships that don’t go well, quality problems, partnership
challenges—all the real stresses that come with running a business. The best
approach is often to communicate through it, over-communicate rather than
under-communicate, and be intellectually honest with yourself and your
partners.

Elizabeth Stein (Host) 19:58

And I think it’s important for founders to know that their investors feel the
same way—that the pressure is there, but you’re on the same page. It’s
essential to establish shared values early on in the relationship.

Tom Spier 20:26

Most of the time, entrepreneurs don’t need more pressure from us; they’re
already putting plenty of pressure on themselves. We take a founder-friendly
approach. As growth equity investors, we try to be strong supporters of these
businesses. Having been operators, we empathize and focus on problem-solving
together rather than pointing fingers.

Elizabeth Stein (Host) 20:59

Yes, I’ve appreciated that supportive approach from our partners over the
years. I remember early on, one of our investors said, “This is a roller
coaster, and the best thing you can do is stay even-keeled.” That advice has
stuck with me. As you look at the food landscape today, what trends are you
seeing that interest you?

Tom Spier 21:42

I’m in the optimism business, so I’ll start with the positives. The U.S. and
North American economies are massive, with most categories growing each year.
Some categories are growing really fast. Of course, it’s challenging, and
competition is tough. But the size of the prize is so significant that if you
get it right, it’s incredibly rewarding. There’s a narrative that it’s hard for
small and mid-sized brands right now, and while that’s true, there are also
success stories everywhere. We continue to be amazed when we come across brands
that have grown to $50 million in revenue and are profitable. The opportunities
are there, especially with direct-to-consumer models in certain categories. And
we’re seeing impressive outcomes, like Siete’s sale to Pepsi and Orgain’s sale
to Nestlé.

Elizabeth Stein (Host) 24:36

It’s incredible to see the shift. When I started Purely, I thought we’d be a
small brand in co-ops. Back then, it seemed so niche. But now, consumers are
voting with their forks, and brands like Siete are able to scale to major exits
with big players like Pepsi. It’s amazing.

Tom Spier 25:26

Exactly. We’re optimistic because there are still huge growth opportunities. We
focus on categories that have room for innovation and growth or are stagnant
but ripe for disruption. Some trends we’re seeing include high protein, high
fiber, gut health, and brain health. There’s a push for more nutrient-dense
products on the food and beverage side, but this also translates to personal
care and beauty, where there’s still a lot of room for cleaner, more
personalized products.

Elizabeth Stein (Host) 26:56

What categories are you seeing as high-growth right now?

Tom Spier 27:03

Better-for-you soda is one. We’re fortunate to be part of Olipop, which has
been remarkable to watch. Kombucha helped lead the way in this category, and
now Olipop has pushed it even more mainstream. There are also some legacy
brands choosing to enter this better-for-you soda space through kombucha.

Elizabeth Stein (Host) 28:13

Are there other interesting, high-growth categories?

Tom Spier 28:17

Yes, protein is finding its way into a lot of products, as are nutraceuticals
and brain health. Better-for-you snacks are also significant—Siete is a case
study of what can happen when it’s done well. We try not to focus exclusively
on one category; there’s evolution happening in all of them. We’re also
exploring areas like pet supplements and raw pet food with partners like Maeve.
In beauty, we’re invested in a brand called Vacation, which is cleaning up the
category and building a unique lifestyle brand. It reminds me of Bare Naked,
where we focused on creating a lifestyle brand, not just a product.

Elizabeth Stein (Host) 30:37

I completely agree. With Purely, it was never just about a food brand; it was
about a lifestyle platform.

Tom Spier 30:48

Yes, and the name Purely is perfectly
positioned. You didn’t just call it “Elizabeth’s Granola”; you chose something
more inspirational, which delivers more value to people.

Elizabeth Stein (Host) 31:18

Thank you! Let’s go back a bit to a brand just starting out. What advice would
you give to someone raising money for the first time? What do you look for in a
brand, and what should they focus on when pitching?

Tom Spier 31:51

It depends on their goals. If they want to create a $5 million business, that’s
different than someone aiming for $100 million. Ambitious founders should look
at their competition and decide whether they need to move fast or if they can
go a bit slower. Competition can innovate quickly, so if you have a great idea,
it’s essential to capture the market fast or risk losing to others. I’m not
saying over-capitalize, but if you have momentum and the resources to scale,
don’t hesitate. Supply chain planning is also key; ideally, your supply chain
is ahead of your needs, so you can scale quickly without scrambling to rebuild
it.

Elizabeth Stein (Host) 34:46

Yes, timing is everything. As brands grow, what are some pitfalls you see that
prevent them from reaching the next level?

Tom Spier 35:07

Supply chain issues are huge. If you’re using a co-packer without enough
capacity, that can create major problems. Sometimes, brands are too niche, and
the market isn’t as big as anticipated. That’s why it’s essential to have an
innovation-led DNA and pivot as needed. Overspending is another common pitfall.
Some companies waste money on things that aren’t essential or efficient. For
example, signing a huge office lease or paying high salaries too early can
drain resources. Founders should focus on preserving capital to avoid excessive
dilution and ultimately benefit more when the business succeeds.

Elizabeth Stein (Host) 37:27

Alright, let’s jump into some rapid-fire Q&A.

Elizabeth Stein (Host) 37:37

Three products you’re currently loving?

Tom Spier 37:41

Olipop Strawberry Vanilla—such a great product; I actually have one over there.
Olipop’s products are amazing, period. I’ll stay in our portfolio with
Vacation’s mineral sunscreen—it’s super clean and a great product for me and my
family. And then, Bobo’s stuffed bars, especially the peanut butter flavor.
Purely Elizabeth could definitely be on the list, but I’ll stay in portfolio
with these!

Elizabeth Stein (Host) 38:25

Are those the new peanut butter and jelly ones?

Tom Spier 38:28

Oh, yes, that’s a different product. Those are awesome, too. But Bobo’s also
has one that’s just peanut butter, and I’m a bit of a peanut butter fanatic.

Elizabeth Stein (Host) 38:39

Favorite words to live by?

Tom Spier 38:43

“Do the best you can for as long as you can.” Life can be tough, but if you put
your best foot forward and just do the best you can, I think that’s a great
mentality for sports, business, and even relationships.

Elizabeth Stein (Host) 39:22

What’s one food or beverage trend you wish would go away?

Tom Spier 39:28

All the fake sugars and sugar alcohols. I think there’s a big spotlight on
them, and sometimes it just feels like if it seems too good to be true, maybe
it is. I’m also hoping for less greenwashing—brands positioning themselves as
clean or natural when they aren’t. I’d love to see more transparency.

Elizabeth Stein (Host) 40:29

And what’s one trend you want to see more of?

Tom Spier 40:34

Transparency. I’m a big advocate for it in packaged goods and commerce in
general. Consumers deserve to know what’s in their products and make informed
decisions.

Elizabeth Stein (Host) 40:52

Best career advice you’ve received?

Tom Spier 40:56

Put yourself in a position to make decisions—whether it’s a yes, no, or maybe.
Give yourself those opportunities by being open and curious. Take extra
meetings, be intellectually curious, and give people the benefit of the doubt.
It can open doors you didn’t even know were there.

Elizabeth Stein (Host) 41:29

Lastly, what is your number one non-negotiable to thrive on your wellness
journey?

Tom Spier 41:37

Balance. Balance in my life, my partners’ lives, and hopefully the lives of our
founders and teams. You have to find ways to get energy out—whether it’s
running, sports, or something else. Make time for yourself and your family, so
when you’re on the field, you’re fully engaged. That’s why I work from Boulder,
Colorado, where people really embrace a work-hard, play-hard mentality.

Elizabeth Stein (Host) 42:38

Any personal tips for keeping that balance or, really, juggling it all and
feeling your best?

Tom Spier 42:51

Yes, make time for things you love, even if it’s as simple as putting them on
your calendar. For example, I didn’t use to schedule lunch on my calendar, and
sometimes it just wouldn’t happen. Now, I block out that time. When I look at
my calendar, I know I’ve carved out time to recharge. It’s a small but helpful
habit to make sure the things that fill your cup don’t slip through the cracks.

Elizabeth Stein (Host) 43:35

That’s a great, tangible tip for sure. Well, Tom, thank you so much for being
here. In closing, where can people connect with you and Boulder Food Group?
Anything else you’d like to share?

Tom Spier 43:47

Thank you so much, Elizabeth. I really appreciate the time and the platform
you’ve created for entrepreneurs in our industry. If anyone wants to reach out
to Boulder Food Group, they can email us at dealteam@bfgpartners.com. We try to
be responsive and point people in the right direction however we can.

Elizabeth Stein (Host) 44:27

Thanks so much for joining me on Live
Purely with Elizabeth. I hope you feel inspired to thrive on your wellness
journey. If you enjoyed today’s episode, don’t forget to rate, subscribe, and
review. You can follow us on Instagram at purely_elizabeth to catch up on all
the latest. See you next Wednesday on the podcast!