As Petal was gearing up to begin shipping out pre-sale orders of its product, COVID-related supply chain issues have put the startup’s plans for launch on pause.
Last month, the Fort Worth-based maker of germ-freezing waste bins announced putting its operations on hold because increased cold storage demand led to skyrocketing manufacturing costs. However, the company sees this as a temporary setback and has been making a pivot in the meantime.
“It’s like all of the manufacturers around the world, every factory and manufacturer… is going through the same thing. We were just put in a place where we could no longer profitably manufacture our product and we thought, ‘You know what, the best thing to do is hit the pause,’” Christie Zwahlen, Petal co-founder and executive VP of social impact, told NTX Inno. “We feel privileged that we can hit the pause because normally this kind of event would be the death knell for an organization.”
Petal was founded this year by Zwahlen and David Taffet, who serves as CEO, after the couple acquired the IP for the technology behind the product from a team of rocket scientists in Toronto. Its waste bin technology freezes organic waste, stopping rot and odor.
The announcement to put the company’s plans for launch on pause comes as cold storage supply chain cost have been growing. It’s partly due to demand created by more people eating from home but also because the COVID-19 vaccines being developed by makers like Pfizer and BioNTech require ultra-low storage temperatures during storage and transportation. In all, Petal said it has seen its anticipated manufacturing costs rise by more than 275 percent.
“It’s been basically nonstop since March or April, going a thousand miles per hours, and suddenly everything stops,” said Anthony Naglieri, chief of staff and head of communications at Petal.
The announcement also comes as the company was about to begin shipping out its first orders of its product, which it began in pre-selling in late September. The company has since sent refund to its customers. It had also recently landed manufacturing and distribution giant Danby Appliances as a strategic partner.
This isn’t the first delay Petal has encountered. The company’s launch was originally set for around May, when it was delayed due to having its prototype and promotional material pushed back. Since then, Zwahlen and Taffet relocated from Ohio to Fort Worth.
“Without a doubt, when I found out Petal was going to have to hit pause, my immediate concern was not money, it was, ‘Oh my God, what’s going to happen to our team?’ That for me was a huge motivator. It was like, ‘Okay, I can’t lose this team we have built, this beautiful culture… I don’t want to work with anyone else,” Zwahlen said.
While Petal’s launch has again been put on hold, the 12-person team behind it still has plans. They are currently in the process of setting up JukeStrat, a boutique consulting firm focused on startup needs like venture building, leadership, marketing and strategic partner development, among other things. Zwahlen said Taffet’s past experience building companies from the ground up, as well as the team’s experience building Petal will allow them to help other companies navigate the uncertainties of the crisis.
“I think the experience of launching and building a brand and company during the pandemic has uniquely positioned us to jump in and help companies figure out how to navigate all sorts of challenges, whether it’s crisis management or developing new business operations… I think all of those things, we’ve been doing it the whole time, so it feels really natural,” Naglieri said.
Zwahlen said she is also working on developing more partner relationships in the community during the pause, something that has been difficult moving to a new region during the pandemic. She is also focusing on growing out the social impact side of the company
Naglieri said there is no set timeframe for when Petal will come back online. However, he is hoping it is within the next 12 to 14 months. During that time, he said the company will continue to keep the brand current and post updates for clients.
“It’s been really wild to learn you’re on pause, have sort of a one week period where we’re figuring this out and transitioning out of Petal, then literally the next week we’re starting up a new company,” Naglieri said. “It’s been kind of fun and surreal but everything about 2020 has been kind of odd, so we’re going with the flow.”
