Matt Richard says he was the “exact opposite picture of health” during his early 20s. And as he competed in barbecue contests, he noticed he wasn’t the only one there that fit that description.
“I saw this dichotomy that while I loved cooking barbecue, the people doing it were often very unhealthy. I just saw this need to provide healthier options in the barbecue segment," Richard said.
That realization led Richard to place a focus on his own fitness and health. It also spurred the creation of a startup. Richard is founder and chief product officer of Halo + Cleaver, which manufactures and sells premium, naturally sweetened low-sugar sauces and condiments.
Halo + Cleaver is led by Richard and co-owner and CEO Rob Garwitz. Richard and Garwitz met while earning their MBAs at Washington University. Garwitz at the time had been working on a separate food startup of his own and eventually decided to pair up with Richard on Halo + Cleaver.
“We really aligned on our personal mission of bringing ‘better for you’ food to the world,” Garwitz said.
Halo + Cleaver currently distributes its products in St. Louis and Denver. In St. Louis, it recently began selling its products at Schnuck Markets. The startup says its long-term vision is to become a national brand and the leading sauce and condiment brand for families. Its founders say the company has discovered its most loyal customers have been moms with young kids.
“The feedback we kept getting time and time again was ‘hey, I can feed this to my kids and not feel guilty about that,’” Richard said.
The product: Halo + Cleaver manufactures premium, naturally sweetened low-sugar sauces and condiments. The company’s three sauces are its Perfect Ketchup, Gold Mustard BBQ Sauce and Backyard Red BBQ Sauce.
How it makes money: The startup sells its products through grocery retailers as well as online directly to consumers.
Size of the market: Halo + Cleaver estimates the global market for sauces, condiments and dressings is $30 billion.
Competition: Halo + Cleaver says its competitors fall into two buckets. The first segment is conventional, legacy condiment brands like Heinz, Sweet Baby Ray’s and Stubbs. The startup also goes up against “healthy and premium” competitors such as Primal Kitchen, Sir Kensington’s, The New Primal, TrueMade Foods and Tessemae’s.
Competitive Advantage: Halo + Cleaver says it stands out as one of the few zero-added-sugar sauce brands that uses fruits – apples, bananas and pineapples – to naturally sweeten its products. The company contends it is uniquely positioned as a “brand for the young mom.” It says most of its competitors in the barbecue sauce category appeal to men or dietary fads. Halo + Cleaver has sought to create “a fun, playful, and family-forward brand that appeals to mom and the rest of the family.”
Business it could disrupt: Halo + Cleaver is seeking to disrupt the condiment and sauce sector by introducing products it says are healthier for consumers. It contends its products have zero grams of added sugar while maintaining sweetness and flavor because of its use of fruits. The startup believes it is bringing a needed approach to market, saying that two servings of the leading brand of barbecue sauce has about as much added sugar as a can of soda.
Managers and their background: Matt Richard is Halo + Cleaver’s founder and chief product officer. He previously worked at Hazelwood-based food manufacturer Arcobasso Foods, where he created sauce recipes for clients that included Panera Bread Co. He holds an MBA from Washington University’s Olin Business School and a master’s in nutritional sciences from University of Missouri-Columbia. Rob Garwitz is co-owner and CEO of Halo + Cleaver. He has six years of experience working in sales and marketing for Nike Inc. and an MBA from Washington University.
Advisers: Mark Engel, founder of Fifth Taste Foods, who has previous experience at General Mills and Express Scripts; and Betsy Gillette, co-founder and CEO of Synergy Sales Consulting Group.
Investors: The company has raised funding from family and has bootstrapped its operations.
Capital raised: Halo + Cleaver has raised $350,000.
CLOSER LOOK
Company name: Halo + Cleaver
Headquarters: St. Louis
Year founded: 2020
CEO: Rob Garwitz
Employees: 3
Website: www.haloandcleaver.com
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