SkinnyDipped: Breezy and Val Griffith. The Flourishing Snack Company That Almost Failed
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this fascinating episode of How I Built This, Val and Breezy Griffith share the decade-long journey of building Skinny Dipped into a $100+ million snack brand. (07:25) The mother-daughter duo started their entrepreneurial journey after a family tragedy brought them together, leading them to reimagine the traditional chocolate-covered almond. (21:07) Their insight was deceptively simple: create a thin coating of chocolate instead of the thick, sugar-heavy versions found in bulk bins. What followed was years of failed experiments, manufacturing challenges, and near-disasters—including 40,000 pounds of rancid almonds that almost derailed their first major Target order. (55:47) Despite achieving remarkable growth and appearing on the Inc. 5000 list, the company struggled with profitability for years, ultimately hitting rock bottom in 2022 before making the difficult changes needed to become profitable.
- Main Theme: How a family tragedy sparked a food innovation that challenged the American "sweetness profile" assumption, demonstrating that building a successful CPG brand requires equal focus on product excellence and financial discipline.
Speakers
Val Griffith
Val is a longtime freelance television producer from Seattle who worked on shows like "Travels to the Edge with Art Wolfe." She took time away from her career to support her family through a personal tragedy, which ultimately led to co-founding Skinny Dipped with her daughter. Now serving as head of innovation, Val is known for her visionary ability to spot long-term consumer trends and her incredible home cooking skills that her family and friends have always raved about.
Breezy Griffith
Breezy is the CEO and co-founder of Skinny Dipped, who started her entrepreneurial journey in her twenties with various food ventures including organic sorbets in Miami and cupcakes in New York. After moving back to Seattle following a family loss, she teamed up with her mother to create their chocolate almond concept. Known for her "jet fuel" energy and determination, Breezy has led the company through multiple growth phases and ultimately to profitability after a decade of building.
Key Takeaways
Embrace "Micro-Business" Failures as Skill Building
Breezy's early ventures—from selling organic sorbet made at 11 PM in Miami to delivering cupcakes via subway in New York—were financial failures but crucial learning experiences. (09:58) As she reflects, "What I was doing was cultivating a skill set by failing." These micro-businesses taught her about sourcing, production challenges, and customer interaction without the pressure of massive investment. Each failure built entrepreneurial muscle memory that proved invaluable when scaling Skinny Dipped. Rather than viewing early business attempts as waste, embrace them as your entrepreneurial education.
Focus on Moderation, Not Elimination
While competitors were using artificial sweeteners and sugar substitutes, Skinny Dipped took a different approach: using real sugar but much less of it. (28:33) Val explains their philosophy: "Moderation was always a part of our formula—less is more." They combined roasted almonds (which naturally develop sweetness through caramelization), quality chocolate, and minimal added sugar. This strategy positioned them ahead of the "better-for-you" trend without sacrificing taste, proving that consumers will choose quality over quantity when given the option.
Manufacturing is Often the Biggest Obstacle in Food Startups
The founders spent over a year trying everything from Home Depot paint sprayers filled with chocolate to hand-dipping almonds on forks. (32:01) Their breakthrough came from finding a chocolatier through deep internet research and cold-calling. They learned that successful food entrepreneurship requires obsessive attention to production details—from sourcing the right equipment (a "pan" that looks like a cement mixer) to perfecting techniques like "truffling" with cocoa powder to protect the thin chocolate coating. Don't underestimate the complexity of making your product at scale.
Growth Without Profit is a Dangerous Game
Despite appearing on the Inc. 5000 list for 6000% growth, Skinny Dipped nearly collapsed in 2022 due to gross margins "in the teens." (72:15) As Breezy admits, "We had gross margins in the teens. We didn't have a finance background. I had no idea what cogs were." They were so focused on product quality and growth that they ignored basic financial fundamentals. When funding dried up, they had to ruthlessly cut costs while reformulating products to maintain quality. Build growth and profitability in tandem—one without the other is unsustainable.
Seize the Impossible Opportunity
When Target offered them a chain-wide launch (1,800 stores) instead of the expected 100-store test, they said yes despite having no infrastructure. (57:38) This led to the crisis of 40,000 pounds of rancid almonds with three days to produce, but also to their biggest breakthrough. Sometimes the opportunity that seems impossible is exactly the catalyst your business needs. The key is having the courage to say yes and the determination to figure out the "how" afterward.
Statistics & Facts
- Target chain-wide launch included 1,800 stores, compared to the typical 100-200 store test that most brands receive when entering major retailers. (57:47)
- Skinny Dipped achieved 6000% growth and ranked #32 on the Inc. 5000 fastest-growing companies list, yet struggled with gross margins "in the teens" for years. (72:11)
- The company raised funding from 65 individual celebrity investors in 2023, each requiring separate calls and negotiations rather than a traditional syndicated fund. (80:06)
