In August 2007, Laura Ryan and her son Michael were flying home to Wyoming following a specialty food trade show in Houston, Texas. The event had generated a lot of interest for their growing enterprise, Lakota Hills. Their flagship product, a retail bag of traditional Native American fry bread, was currently on the shelves in over 350 Midwestern supermarkets. 

While they had made encouraging progress, they were nowhere near the critical mass they would need to spark buyer momentum. Buyers and brokers were not eager to commit time and shelf space to new brands. So until more stores said, “Yes,” most would continue to smile, nod, and say, “Maybe.” 

Getting to profitability in the hypercompetitive retail channel was going to require many more expense-laden trips, and hundreds of more in-store demonstrations. Entering other sales channels was possible, but gaining a foothold in this marketplace was their first priority. Their investors agreed, but with the need for a follow on round of funding in the near term, everyone wanted to be sure that Lakota Hills was on the best path to profits.

Preparation Questions

1. Discuss the challenges and advantages of developing a specialty food business. 

2. Is their current strategy the best way to build Lakota Hills? 

3. How might they integrate other channels into their overall selling model? 

4. How will Lakota Hills make money? 

5. As an angel investor, would you participate in the round this venture is seeking?