Episode Transcript
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ynab.com/built. sense,
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like why your mom still listens
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to the radio, or what she
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meant when she sent that emoji.
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But a zero sugar drink that's
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still full of fruit flavor, we
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made that make sense. In strawberry,
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passion fruit, Concord, grape, and more,
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you gotta sip it to get
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it. New Welch's zero sugar. Let's
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fruit stuff up. Len
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Hoffman was a retired baker from Entomons
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Bakery. And the first thing he said,
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he goes, stop calling these recipes. He
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goes, these are formulas. And I was
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like, okay, he goes, this is scientific,
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now boys. So we get Len to
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start helping us with these products that
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we're working on. And we're also starting
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to do some private label for a
3:00
pretty large coffee chain here in Southern
3:03
California. And they're like, well, hey, I
3:05
wonder what else these guys do.
3:07
So they ask us about doing
3:09
some scones. And we totally made
3:11
the best scones in the city.
3:13
Which was not a total lie.
3:15
Which was not true, just completely
3:17
not even make scones.
3:20
The guy wouldn't even know what
3:22
the hell a scone was. Welcome
3:24
to How I Built This,
3:26
a show about innovators,
3:29
entrepreneurs, idealists, and
3:31
the stories behind the
3:33
movements they built. I'm
3:38
Guy Ross and on the
3:40
show today how a
3:42
former American Gladiator found
3:44
his true calling. Lost
3:46
it and then found
3:48
it again by building
3:50
a top-selling protein
3:53
cookie brand, Lenny and
3:55
Larry's. If you follow food
3:58
trends, protein... right now
4:00
is an exploding category. Just to
4:02
put it in perspective, in 2024,
4:05
the global market size for protein-fortified
4:07
foods was around $27 billion. But
4:09
by the end of this decade,
4:11
it's expected to reach close to
4:14
$50 billion. Just take a look
4:16
at the aisles of Whole Foods
4:18
or even Costco. You will start
4:21
to notice more and more products
4:23
that tout their protein content, whether
4:25
it's crackers or nut butter or
4:27
even ice cream. But back in
4:30
the days when protein was kind
4:32
of out of fashion in the
4:34
90s, two former bodybuilders entered the
4:37
space with a pretty revolutionary product.
4:39
It was a protein-packed muffin. This
4:41
was in 1993, when Barry Turner
4:44
and his friend Benny Graham were
4:46
out of work and struggling to
4:49
make in Hollywood. A few months
4:51
earlier, Barry finally caught a lucky
4:53
break when he was cast on
4:56
the TV show American Gladiators. But
4:58
just a few episodes in, he
5:00
got injured, and that was the
5:03
end of his TV career as
5:05
an American Gladiator. So one afternoon,
5:07
Barry and Benny were talking about
5:09
how boring their body-building diets were,
5:11
mainly chicken breasts and egg whites.
5:14
And they wondered, could you take
5:16
protein powder and just mix it
5:18
into things that are more interesting,
5:20
like muffins or brownies? A few
5:22
days later, they started to experiment,
5:25
literally... dumping protein powder into
5:27
muffin mixes. And eventually they
5:29
found a recipe that worked.
5:31
They decided to start a
5:33
small business selling their muffins
5:35
to local coffee shops around
5:38
Los Angeles. The muffins did pretty
5:40
well, but the business never really
5:42
took off. So in 2001, they
5:44
sold Lenny and Larry and Larry's
5:46
for a small amount of money
5:48
and moved on. But Barry Turner
5:50
would come to regret that decision
5:53
almost immediately. And it would take him
5:55
six years to buy most of the
5:57
business back. And that's when he started
5:59
to turn... Larry's into a national brand
6:01
of cookies brownies and other protein-packed treats.
6:03
Today you'll find Lenny and Larry's snacks
6:05
at thousands of locations across the country.
6:07
The brand was really a pioneer in
6:09
protein-fortified food. In Barry's path to building
6:11
that brand was a winding one. He
6:13
grew up in the 1960s and 70s
6:15
in Hickory, North Carolina. He was a
6:17
pretty talented baseball player but an injury
6:19
on the field left him deaf in
6:21
one year so when he started college
6:23
in Georgia he set his sights on
6:25
wrestling. I was living in a little
6:27
town called Cartersville Georgia and my mom
6:29
had seen a guy had a wrestling
6:32
ring in his backyard and she told
6:34
me about it so I kept going
6:36
to his house every day for two
6:38
straight weeks leaving notes knocking on his
6:40
door and I kept saying I want
6:42
you to train me, I want you
6:44
to train me. And he doesn't respond.
6:46
So finally he calls me one time
6:48
and he just said, he goes, look,
6:50
dude, I've been traveling, I've been on
6:52
the road wrestling, you know, all I
6:54
kept saying was just see me, I
6:56
sort of could, just see me, and
6:58
maybe you'd want to train me. So
7:00
I show up and he sees me,
7:02
he goes, you know, I think I
7:04
think I could probably help you. So
7:06
we trained for two weeks, non-stop, seven
7:08
days a week, seven days a week,
7:10
seven days a week, we're just, we're
7:12
just training, we're just training, we're just
7:14
training, we're just training, we're just training,
7:16
we're just training, we're just training, we're
7:18
just training, we're just training, we're just
7:20
training, we're just training, we're just training,
7:22
we're just training, we're just training, we're
7:24
just training, we're just training, we're just
7:26
training, we're how to do a sunset
7:28
flip, how to come off the top
7:30
rope, flight elbows, everything. And it was
7:32
so much fun. And so within two
7:34
weeks, he gets me a match. And
7:36
you became a character? Or were you,
7:38
were you Barry Turner? No, well, when
7:40
I showed up, I was Barry Turner,
7:42
but when the promoter saw me, he
7:44
goes, this guy's too pretty, we got
7:46
to put a mask on him. Because
7:48
I can't look better than the actual
7:50
guy who's going to beat me. And
7:52
the coolest thing about that is, man,
7:54
when they put a mask on you,
7:56
you just become someone else. Yeah. So
7:58
they put a mask on me, they
8:00
called me Mr. Olympia, and they gave
8:02
me a manager, I got a guy's
8:04
name's Diamond Dave, he's wearing a red
8:06
tuxedo with a red. top hat up,
8:08
it was full on like a major
8:10
production. And I was getting picked up
8:12
by a bigger group. They were gonna
8:14
send me on the road like immediately.
8:16
And this was like in W.A. W.C.W.
8:18
type of wrestling at the time. And
8:20
that's where I was heading. And that's
8:22
what I really thought my career was
8:25
gonna be. I was gonna become a
8:27
professional wrestler and be very successful at
8:29
it. So what happened? So I chose
8:31
a girlfriend and didn't work out, so.
8:33
Right, but you did take her advice
8:35
not to be a pro wrestler, right?
8:37
And I guess instead you decided to
8:39
go back to school to Georgia State
8:41
University, where you wound up meeting this
8:43
guy, Benny Graham, who would, of course,
8:45
factor into this story. So who was
8:47
Benny? I actually met him at a
8:49
gym, and he said, hey, I heard
8:51
you. you're doing, you're you see a
8:53
little bit of pro wrestling, would you
8:55
want to consider it again? Because I
8:57
really want to get into it. And
8:59
I said, yeah, I'd love to. So
9:01
he and I started training together and
9:03
we just became instant friends. We were
9:05
just kind of goofballs and having fun.
9:07
And he was a personal trainer too
9:09
at the time. And so he said,
9:11
I'm training this lady and she has
9:13
this movie script written for two guys
9:15
that would be you and I'm you
9:17
and I. And she'll move us to
9:19
California. And I go, sure, let me
9:21
finish my schooling. So I can get
9:23
my degree. He goes, we got to
9:25
go next month. And I was like,
9:27
hmm, let's go for it. And so
9:29
we packed up and we went to
9:31
California. Wait, let's just, I'm back. Somebody
9:33
was working on a movie script. Yeah,
9:35
she had this lady, she was, she
9:37
had a little bit of money. So
9:39
people find people with money at that
9:41
time, everybody, everybody's pitching a movie. Everybody.
9:43
It was similar to the movie Warrior.
9:45
If you remember the movie with Tom
9:47
Hardy and Edderton guy, back then it
9:49
was about, like, that was like UFC
9:51
type fighting for that. that movie. And
9:53
so kind of somewhere to that, it
9:55
was like, you know, two guys. We
9:57
were going to be wrestling. And so
9:59
the idea was that you and Benny
10:01
might. star in it like you might
10:03
be the Warriors? Yeah we might be
10:05
the guys and be the main characters
10:07
and kicking some ass. Kickin some ass
10:09
and we're big we're big guys we're
10:11
growing our hair really long so we
10:13
just we had we had a look
10:15
so yeah it was just it was
10:18
just one of the things where you
10:20
just go you know what it's it's
10:22
a once in a lifetime opportunity to
10:24
move to California I never in my
10:26
heart believed a movie would ever get
10:28
made but I'd ever star in this
10:30
movie I just had an opportunity to
10:32
go to go to go to go
10:34
to go to California to California to
10:36
California go to California to California. a
10:38
semester away from graduating from getting your
10:40
degree. Yeah. Oh, because at that time,
10:42
I was like, it was one of
10:44
those things. I'm still kind of young.
10:46
I'm like 29 or something at that
10:48
time. Yeah. I can finish later. All
10:50
right. So you get to LA 1991.
10:52
And with the hopes and dreams of
10:54
being in this film, what happens? Well,
10:56
obviously the film never gets made. So
10:58
we're literally, Benny and I are just
11:00
being paid by this person. just work
11:03
out. We worked out twice a day,
11:05
we ate, that's all we did was
11:07
just get bigger and bigger and bigger.
11:09
Wow. Yeah, seriously. Like can you give
11:11
me a sense of how big? Sure.
11:13
What's your height and what was your
11:16
weight at the time? Well, six feet,
11:18
the biggest I ever got weight wise
11:20
was 250, 250 pounds. Wow, that's. Yeah.
11:22
insane. I mean, I mean, can I
11:24
ask you, this is not a very
11:26
polite question. No, it's okay. I'm honest.
11:29
Were you using steroids to get that
11:31
big? To get, yes, yes, I did.
11:33
You have to, you can't, you can't
11:35
eat food and protein powders without, cannot,
11:37
my natural body, my natural body, I
11:40
could get to, I got to about
11:42
two, seventeen, I think was the biggest
11:44
I got too naturally. And most people
11:46
will not tell you the truth when
11:48
you ask questions like that, but I
11:50
just believe in being honest about everything.
11:53
And by the way, does it have
11:55
long-term consequences? I think it does for
11:57
people who use it for a long
11:59
time. I didn't like it. Mood swings
12:01
galore. I mean, you could be, you
12:03
could be happy one day and you
12:06
could just be, you know, throwing stuff
12:08
at a wall the next. It's just,
12:10
yeah, it's not, it's like, especially if
12:12
you're a pretty high strung person anyway
12:14
or just very aggressive. Volatile. Volatile. Yeah.
12:17
So you, but that was your job
12:19
is to get really jacked for this
12:21
movie. How long did that last before
12:23
it became clear that this movie was
12:25
never going to pan out? I got
12:27
paid for about a year. Wow. Yeah.
12:30
It's a pretty good deal. Not bad.
12:32
Meantime. Okay, so once you kind of
12:34
find out, this is not going to
12:36
happen. You're already in LA. You're this
12:38
jack dude, and you have long hair.
12:41
Tell me about your hair. Yeah, I
12:43
kept growing my hair to the point
12:45
where it got down to my waist.
12:47
What was that guy? Fabio? Fabio, yeah.
12:49
Were you like Fabio? Yeah, he had
12:51
cool hair. His hair was, hair's hair
12:54
wasn't as wavy as mine. He was
12:56
like massive with long hair. Yeah. So
12:58
you had this really long hair and
13:00
that was your look. Yeah, upset. And
13:02
meantime, Benny was also doing this, right?
13:04
He was correct. And you guys were
13:07
sort of on this parallel path of...
13:09
you're in LA so you might as
13:11
well keep auditioning for parts right? That's
13:13
exactly right I was one thing I'll
13:15
tell you is I'm not an actor
13:18
and I never I didn't want to
13:20
become an actor I just I had
13:22
a look I was big with long
13:24
hair you could you could put me
13:26
in and things so I could audition
13:28
for parts I read that you were
13:31
on Dooky Hauser I was a guy
13:33
in a pool with a girl on
13:35
my shoulders. Benny and I both were.
13:37
And I'm Dooky Hauser. We did the
13:39
bodyguard with Kevin Kostner, Whitney Houston. You
13:41
were in the bodyguard. What'd you play?
13:44
We were kind of nightclub kind of
13:46
bouncers. There's a scene where they're coming
13:48
in from the limousine, come into the
13:50
Mayan theater, downtown LA, and we're kind
13:52
of holding back the crowd because they're
13:55
trying to get to them, whatever. in
13:57
the scene when she's performing, we're right
13:59
there at the stage. Yeah. So how
14:01
many seconds do you get on screen
14:03
during the bodyguard? Honestly, it's maybe three,
14:05
four seconds, five seconds back. Yeah. I
14:08
was in another movie too called Death
14:10
Becomes Her. And I still get residuals
14:12
for that. Is that with Merrill Street?
14:14
Merrill Street, Bruce Willis. Yeah, it's like
14:16
Bruce Willis, Barry Turner, Merrill Street. We
14:19
were all future actors. But if you
14:21
had a look, they could use you.
14:23
So it's funny and death becomes her.
14:25
Our titles were Beefy Guy. I'm not
14:27
kidding you. So I was Beefy, I
14:29
think I was Beefy Guy number eight.
14:32
And we got, it was, it was
14:34
such, we had so much fun because
14:36
the other beefy guys in the movie,
14:38
we were all just big hams on
14:40
the set and we didn't have to
14:42
work that much. It was a lot
14:45
of hurry up and wait. And we
14:47
just, we hung out. We hung out,
14:49
we ate and we just messed around.
14:51
It was a lot of fun. All
14:53
right, so this is also the era
14:56
of, and those of you under the
14:58
age of 40 will have a harder
15:00
time remembering this, but American gladiators. This
15:02
is a show on television where you
15:04
had a bunch of like really strong
15:06
men and women, and then you have
15:09
contestants who'd have to. battle them out
15:11
in different scenarios like trying to get
15:13
a touchdown or trying to win a
15:15
wrestling match or a jousting match. This
15:17
is a huge massive show. You find
15:19
out about an open casting call in
15:22
1992. And when you find out about
15:24
it, what did you think? Well, the
15:26
first thing I thought was, I'm going
15:28
to go become an American Gladiator. Prior
15:30
to that, I audition for a show
15:33
called Knights and Warriors. It was like
15:35
a knockoff show. Yeah, knockoff show, a
15:37
medieval setting. It didn't last one. It
15:39
lasted one year. And Benny and I
15:41
both go and audition for nights for
15:43
Warriors. Yeah. And they wanted both of
15:46
us. And I said, no, thank you.
15:48
I said, I'm going to go become
15:50
an American Gladiator. Huh. So what was
15:52
it was it a one-day audition and
15:54
they were gonna make a decision at
15:57
the end of the day or was
15:59
it a multi-day thing? Well it turned
16:01
out to be a multi-day multi-month process.
16:03
And we do all the events, we're
16:05
doing powerball, we're doing jousting, we ran
16:07
240-yard dashes in front of these executives.
16:10
Okay, but it wasn't, but Gladius wasn't
16:12
like boxing and stuff. No, no, no,
16:14
it wasn't violent. It was like jousting
16:16
with like padded jousts and wrestling wrestling.
16:18
But guy, that is violence. You're hit
16:20
somebody with a giant Q-tip, we'll call
16:23
it. And it doesn't matter if it's
16:25
padded, it's like when you're hitting it's
16:27
padded, it's like when you're hitting at
16:29
that speed, it's like when you're hitting
16:31
at that speed, at that speed, at
16:34
that speed, at that speed, at that
16:36
speed, at that speed, at that speed,
16:38
at that speed, at that speed, at
16:40
that speed, at that speed, at that
16:42
speed, at that speed, at that speed,
16:44
at that speed, at that speed, at
16:47
that speed, at that speed, at that
16:49
speed, at that speed, at that speed,
16:51
at And so that day we went
16:53
through all these different events and I
16:55
could do them all. And so they
16:57
narrowed it down to 10 people that
17:00
day and I was one of the
17:02
10 people. And then we all kind
17:04
of come back and do some things
17:06
and they can narrow it down to
17:08
three people. I expected to be in
17:11
that top 10. But now when you
17:13
get to like you're got a 33%
17:15
chance of being on this show, you're
17:17
like, your heart's racing a little bit.
17:19
You're saying like, like, holy cow, I'm
17:21
a hottest show on TVish show on
17:24
TV. I'm looking at a photo of
17:26
you at the time. You were selected.
17:28
I think people are going to make
17:30
that assumption now. And you became, you
17:32
become cyclone. That's your character. They called
17:35
me cyclone. They thought I was very,
17:37
I was big and I was very
17:39
fast. And that's just a name they
17:41
came up with. You were like 31.
17:43
32. Yeah. Giant. You're just a giant.
17:45
Like your bicep is like the size
17:48
of an adult head. I had some
17:50
big arms. I still have big arms
17:52
guy. All right, so you get the
17:54
job. You're on this massive show and
17:56
you've got a serious career ahead of
17:58
you. That's exactly what I thought. I
18:01
was like, this is it. This is
18:03
the pinnacle of my sports career. I
18:05
didn't make it baseball, football, whatever, but
18:07
this was my pro sports. Everything had
18:09
led me to that moment, right? I
18:12
felt like if anyone had earned it,
18:14
it was me. And, uh, but then
18:16
God has a way of saying, let
18:18
me, uh, let me deal you another
18:20
blow. What, what happened? On my, I
18:22
did eight shows, and on the day
18:25
that they called, they said, this is
18:27
your coming out party cyclone. They were
18:29
gonna, they were gonna, they were gonna
18:31
make me a, known. I mean, I
18:33
was gonna be a, I felt like
18:35
I was gonna become a star. And
18:38
so they said, you're in every event
18:40
today. That means they're going to, they're
18:42
putting you out there. But the best
18:44
event was Powerball. People love Powerball. So
18:46
that's basically the guys, the contestants are
18:49
sticking a ball into these little cylinders.
18:51
And there's three of us trying to
18:53
tackle two of them. And so I
18:55
died, there's two guys, they come together,
18:57
I died between them, I extend my
18:59
arms, and I wrapped them up, and
19:02
I wrapped them, I had rolled up.
19:04
and my arm. Complete, complete, complete detachment.
19:06
It started to be gory, but it's
19:08
what happened. And I wanted to hide
19:10
it from the, from the producers. It
19:13
was like hanging meat off your arm?
19:15
Well, it's just, guy, what it does
19:17
is it rolls up like a, like
19:19
a shade. It just goes up into
19:21
your, up into your body towards your,
19:23
towards your shoulder. Yeah, it's just complete,
19:26
it attaches at your forearm. And painful.
19:28
Up to that point, one of the
19:30
most painful things I'd ever gone through.
19:32
It was just like burnt, like somebody's
19:34
taking a match and they're lighting your
19:36
arm on fire for 24 hours a
19:39
day. I could not understand it, but
19:41
I would not, I would not stop.
19:43
I kept taping it and trying to
19:45
be, I kept taping it and trying
19:47
to shut off the pain. I didn't
19:50
take pain pills or anything, but I
19:52
was doing it because I got to
19:54
go to the hospital. Wow, yeah, so
19:56
they ended that ended my career as
19:58
a glad eater. So you were done.
20:00
That was it. Yeah, I was done.
20:03
Which must have been crushing because you
20:05
worked so hard to get that job.
20:07
Yeah, if there's every If there's every
20:09
time in my life being depressed, that
20:11
was it. So here you are 31.
20:13
Yeah, you kind of taste this this
20:16
moment of like start them like just
20:18
the beginning of it and you know
20:20
you're probably thinking okay Here we go
20:22
and then it's over. Yeah, so what
20:24
did you? I mean obviously it's rehabilitate
20:27
your arm. That was priority. Yep. And
20:29
when you say you were feeling like
20:31
down like what does that what did
20:33
that mean? Feeling like a feeling like
20:35
a failure. I worked my my whole
20:37
life I feel like from the time
20:40
you know being a kid being an
20:42
athlete to pick up the weights you
20:44
know going through becoming a bouncer nightclubs
20:46
and wrestling just everything it was just
20:48
like leading towards there was something there
20:51
was a pinnacle somewhere and American Gladiator's
20:53
was my pinnacle yeah you could have
20:55
cast me in a movie with arms
20:57
fortunately I wouldn't have taken that over
20:59
being an American Gladiator and I it
21:01
just yeah I depression is like not
21:04
even funny I'm talking about I've never
21:06
really I've never really shared this with
21:08
anyone but when you're a proud person
21:10
from the South you don't talk about
21:12
your feelings you just you just swallow
21:14
it and you go on with life
21:17
and you pick yourself back up but
21:19
man behind the scenes I just I
21:21
didn't know what I was gonna do
21:23
I was like how do I how
21:25
do I top that yeah how basically
21:28
how do I get that feeling of
21:30
being a success again? You're going through
21:32
this and trying to figure out the
21:34
next step I guess. Yeah. And Benny,
21:36
he was on nights and warriors that
21:38
sort of low budget spinoff of American
21:41
Gladius also had an injury like something
21:43
that kept him from right? Yeah, he
21:45
tore his shoulder labrum or something and
21:47
you can't make this up. We're sitting,
21:49
we're literally two guys on these two
21:51
opposite shows. We both, you'd have like
21:54
a peanut burn jelly sandwich with a
21:56
cup of coffee, a muffin with a
21:58
cup of coffee, something sweet with a
22:00
coffee, just, that was just our thing.
22:02
So we had a muffin sitting on
22:05
the table and we were going to
22:07
split that muffin and have a cup
22:09
of coffee. It's just a rate. muffin
22:11
just just a regular muffin yeah just
22:13
whatever you can just stuff in your
22:15
body that's it and I guess one
22:18
afternoon you're just kind of eating all
22:20
this food and to having a conversation
22:22
yeah just having a conversation we're at
22:24
coffee roaster cafe and marina del Rey
22:26
it's our favorite little spot and eating
22:29
chicken breast and egg whites and our
22:31
thing was we always like to like
22:33
before we'd work out we'd always like
22:35
You'd have like a peanut burn jelly
22:37
sandwich with a cup of coffee, a
22:39
muffin with a cup of coffee, something
22:42
sweet with a coffee, just, that was
22:44
just our thing. So we had a
22:46
muffin sitting on the table and we
22:48
were going to split that muffin and
22:50
have a cup of coffee. It's just
22:52
a regular muffin, just just a regular
22:55
muffin. Just a regular muffin. Yeah. Just
22:57
kind of a natural type muffin, nothing
22:59
in it. And I'm eating chicken breast
23:01
and egg whites. And I looked up
23:03
and it's like Benny had saw a
23:06
ghost. And he just goes, oh my
23:08
God, he goes, we're doing this. And
23:10
I was like, you damn right, we
23:12
are. And that's all we needed. That
23:14
was it. Okay, this is the light
23:16
bulb moment. And you're like, why can't
23:19
we put that into that? And now
23:21
this is 1993. There were some, I
23:23
mean, protein powders existed, weigh powder existed
23:25
at the time. Yeah, those metrics metrics
23:27
metrics was big. Metrics was kind of
23:29
doing their thing. But it's funny though,
23:32
there was protein powder and there was
23:34
protein bars, but there was nothing else.
23:36
Metrics, metrics, right? Met, RX, correct. Yeah,
23:38
yeah, yeah, yeah. GNC existed. You get
23:40
protein powders, yep, but there was no
23:43
one putting protein in anything other than
23:45
a protein bar. You didn't have to,
23:47
you just, if you wanted protein, you
23:49
ate protein, you ate tuna, you ate
23:51
chicken, you ate steak, you ate steak,
23:53
pretty great way to get protein. Let's
23:56
be honest. The best way to get
23:58
protein. It's just not convenient for everybody.
24:00
Correct. You can't take a stake on
24:02
the go with you. Just munch on
24:04
it while you're driving. Exactly. Hang on,
24:07
I got a steak in my pocket.
24:09
I need to eat it. Yeah, I'm
24:11
sorry. But there, then and there, you
24:13
guys are sitting there, and both of
24:15
you are like, this is it. And
24:17
it's funny, you said light bulb moment.
24:20
I always look back on it. I
24:22
go, this was a giant halo. It
24:24
was like, this is not your moment
24:26
where you can maybe go make a
24:28
little bit of money. This, I think
24:30
is something bigger than that. Ara Angelico's
24:33
ascension. Asension. It is. The halo right
24:35
there on the angel. That's it. It
24:37
was it was our moment. Two potent
24:39
guys from the south gonna go change
24:41
the world. When we come back in
24:44
just a moment, Barry and Benny build
24:46
a business but not a brand and
24:48
Barry makes a deal that he regrets.
24:50
Almost as soon as he signs it.
24:52
Stay with us. I'm Guy Ross and
24:54
you're listening to how I built this.
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ad-free by joining Wondery Plus
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in the Wondery app or
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on Apple Podcasts. Hey,
27:50
welcome back to How I Built
27:52
This. I'm Guy Ross. So it's
27:54
1993, and Barry and his friend
27:56
Benny are sitting at a cafe
27:59
in LA, where they've just come.
28:01
up with the idea to start
28:03
a business selling protein muffins. There
28:05
was no turning back guy, it
28:07
was just we're gonna do this,
28:10
we didn't know how we're gonna
28:12
do this, no consumer product good
28:14
experience, there's no marketing experience, there's
28:16
no business experience, nothing, and we just,
28:19
we knew that day, that was it. And
28:21
so we didn't leave that table until
28:23
we drew out what we thought the
28:25
logo was gonna look like. And we
28:28
left there. and went straight to a
28:30
little natural food store Rainbow Acres and
28:32
picked up some protein powder. We bought
28:35
some muffin mix, went back to my
28:37
kitchen and started baking these muffins within
28:39
two hours. We opened up a bank
28:41
account that day with $1,400. I don't
28:44
know why it was $1,400. Maybe that's
28:46
all we had. And we did a
28:48
DBA doing business as. So this all
28:50
happened the very first day. And the
28:53
business was going to be called what?
28:55
Lenny and Larrys. You decided that right
28:57
then and there you're going to call
28:59
it Lenny and Larry's? Right, right then.
29:02
Even though you were Benny and Barry.
29:04
Yep. We always called each other something
29:06
different. It was again, something goofy.
29:08
We just, our names would change
29:10
every day. It was just something
29:12
stupid we did. And so we
29:14
wanted to create these characters. And
29:17
we said Benny and Barry sound
29:19
like two characters. And that was
29:21
it. I think people overthink things,
29:23
now that I look back on
29:25
this, I think people overthink trying
29:27
to get the perfect name or
29:29
the perfect decide or whatever, rather
29:31
than just doing it. All right, so
29:33
it's gonna be Lenny and Larry's. Yeah.
29:35
And what, when you guys were talking
29:38
about this in that initial, did you
29:40
say a snack food brand or did
29:42
you say, let's just make baked goods
29:44
or what do you remember? Yeah, we
29:46
were, we were, we were gonna put
29:49
protein in. Everything. That's what I was
29:51
saying. Just protein powder, like way powder.
29:53
Way powder is going to go in
29:56
cookies, muffins, brownies. We started crazy ideas
29:58
of popcorns and granola. We're just,
30:00
we're thinking of everything we can
30:02
put this, put protein in. What did
30:04
you guys do? Just got like
30:07
muffin mix and like from the grocery
30:09
store? That's all we did. Apple,
30:11
cinnamon, muffin mix, and some weight protein.
30:13
Seems like a, seems simple and off.
30:16
Seems simple. You just, you take
30:18
out some of the flour and you
30:20
replace it with protein and it's
30:22
got to work, right? And it did
30:24
not. The muffins actually baked, but they
30:26
were hard as a rock. And
30:28
we weren't discouraged. We can find somebody that
30:31
can do this. That's what we kept saying. We
30:33
knew it was it wasn't out there But we
30:35
said we can we can do this. Yeah, so
30:37
we find a bakery in Santa Monica called
30:39
Montana Bakery small little bakery said hey, here's
30:41
what we're gonna do Can you guys help
30:43
us? We said we just need help putting
30:46
these recipes together. Did you know the owners
30:48
the bakery? We did and we just we
30:50
met them and they were it's just two
30:53
brothers So we just struck up a friendship
30:55
a friendship and they started baking muffins for
30:57
us. So they agreed to help you figure
30:59
this out and what you said to them,
31:02
look, what did you say to them? Well,
31:04
we just said we're trying to get
31:06
a certain amount of protein in
31:08
these muffins. We didn't want to
31:10
really use refined sugars. We wanted
31:12
to use something healthier. Now we're
31:14
already thinking about how healthy these
31:17
things can be. Yeah. So we're
31:19
thinking we're thinking, we're thinking, even
31:21
further down the road than just
31:23
making protein muffins. And by the
31:25
way, in those early days, what
31:27
were you using for protein in
31:29
the muffins? We started with Way,
31:31
and that was our protein source
31:33
initially. And what happened, the muffins tasted
31:36
great. They just wouldn't have a crazy
31:38
good shelf life. And they started to
31:40
bind up. They started to get a
31:42
little harder over just too soon. But
31:45
we did it actually, we launched with
31:47
Way protein muffins. Okay, so this bakery
31:49
did make, they came up with a
31:51
formulation. And the plan was, you guys
31:54
baked these muffins for us, and then
31:56
we're going to take them off your
31:58
hands and do what? with us. We're
32:01
going to go sell them. We
32:03
had no idea who we were
32:05
going to sell them to, but
32:07
we knew we knew we could
32:09
sell these. And our first, it's
32:11
funny, our first account was the
32:13
coffee shop we dreamed up the
32:15
idea. That coffee shop in Brendel,
32:17
right? Yeah, yeah. She said, Tony,
32:19
and Tony goes, I'll give you
32:21
a shot. And I can remember
32:23
guy, our first invoice, we were
32:25
selling these muffins for like a
32:28
dollar and 20 cent. And so
32:30
they would just sell them in their
32:32
display case. Yeah, they put them right
32:34
by the register. We were big. I
32:36
don't know why. We were always big
32:39
about, hey, well, if you could put
32:41
these by the register, that'd be great.
32:43
And always would. And then presumably also
32:45
going to some other coffee places, or
32:48
did you try gyms? We did. We
32:50
did Rainbow Acres, Natural Foods Store here
32:52
locally, and we did Gold's Gym in
32:54
Venice. and we did a local health
32:57
food store called Mrs. Gooches before. Oh
32:59
yeah, which was eventually bought by Whole
33:01
Foods. And so how long was the
33:03
shelf life for the muffin? Probably like
33:05
four days or something like that. And
33:07
it wasn't sold, it wasn't packaged,
33:10
was it packaged? Yeah. And how, and
33:12
what was the flavor of the muffin?
33:14
We did apple cinnamon, we did
33:16
blueberry, and we did a lemon
33:18
raspberry. Those are three flavors. And
33:21
how much protein in each muffin?
33:23
I think back then around 15
33:25
grams. Wow. Yeah. So this is
33:27
early 90s. This is like really
33:29
before the protein revolution, which is
33:31
we're going to get to it
33:33
because I would argue just starting
33:35
now. And only now are you
33:38
really seeing an explosion and protein
33:40
protein, protein, protein everywhere. At the
33:42
time, who did you think was going to
33:44
buy these? I'm assuming you thought it
33:46
was going to be like body builder
33:48
types. We did, but to be honest
33:50
with you, we really were developing these.
33:52
We said for the average consumer. We
33:55
thought if we could make a, we coined
33:57
a term later called better bad, but at
33:59
that time. we thought if we could
34:01
get them to stop eating, you know,
34:03
little Debbie's or chips of hoy and
34:05
come to this because we thought bodybuilders
34:08
would enjoy it as like a little
34:10
cheat treat, but we were really targeting
34:12
the average consumer. So the idea that
34:14
you were trying, you were thinking was,
34:16
hey, maybe we could, if we pitch
34:19
this as a healthier for you muffin,
34:21
because there's protein and, but there's still
34:23
with sugar in it, there's still with
34:25
sugar in it, but people, Fiber was
34:27
fiber something it was it was yeah,
34:30
we started we had we had added
34:32
fiber already into that product. Yeah, and
34:34
they tasted as they tasted fantastic people
34:36
talk about to the day they go
34:38
that's still the best product you guys
34:41
ever made was your was your protein
34:43
muffin well, yeah All right, but now
34:45
this is a small business. I mean,
34:47
this is like a tiny business. You're
34:49
going, I mean, we're selling 15, 20,
34:52
30, 50 dollars with the muffins at
34:54
this copy shop and that coffee shop
34:56
and trying to collect the, I mean,
34:58
that's a tough business. Listen, we weren't
35:00
even small. We would have taken small,
35:03
we were smaller than small. Yeah, we
35:05
just, it was just a crazy little
35:07
idea that we were so determined to
35:09
make it successful. So tell me a
35:11
little bit about what a typical day
35:14
was like. Was the... Okay, you were
35:16
not baking the muffins. You had this
35:18
bakery make baking the muffins initially. Yep.
35:20
Yep. So I had to bring in
35:22
some money. So I was doing some
35:25
personal training at Gold's Gym and Venice.
35:27
I had clients. My wife was a
35:29
personal trainer. I met her at Gold's
35:31
Gym at Venice. Okay. You were married.
35:33
This is your... This is my second
35:36
wife I want to have been with
35:38
now for over 30 years. Cheryl Sandy.
35:40
Cheryl Sandy. She was a personal trainer,
35:42
I was a personal trainer and we
35:44
had just had one son at the
35:47
time and we would just trade off
35:49
like she would go to the gym,
35:51
I'd watch my son, she would come
35:53
home and we'd swap off, I'd run
35:55
to the gym, they'd go to the
35:57
bakery and you know package muffins or
36:00
whatever had to be done. And were
36:02
you presumably driving the muffins? every little
36:04
location that was telling them? Absolutely. We
36:06
delivered, we'd get up at three or
36:08
four o'clock in the morning, go deliver
36:11
them around town, just so I could
36:13
be back to the gym by seven,
36:15
maybe to train a client. I mean,
36:17
it was crazy. It was just like,
36:19
it was like, I don't know, I
36:22
never. You're driving around a car at
36:24
four o'clock in the morning in LA,
36:26
or even sometimes down to Anaheim, just
36:28
to deliver a bunch of muffins. And
36:30
it was just you and Benny, you
36:33
and Benny and Benny. Just me and
36:35
Benny. Just me and Benny. Maybe you
36:37
do $10,000, $15,000. Maybe. But it's exciting.
36:39
It's felt exciting. Yes. To know that
36:41
you're spending X amount of dollars, you're
36:44
bringing in a wide amount of dollars,
36:46
at the end of the day, you're
36:48
like, hey, we've got money left over
36:50
every freaking week. This is incredible. We're
36:52
making money. Okay. But the formulation still
36:55
is a challenge. You're not getting a
36:57
lot of shelf life. And I guess
36:59
this starts to change when you meet
37:01
a guy who is a retired baker,
37:03
a guy named Len Hoffman. Who's Len
37:06
Hoffman? Len Hoffman was a retired baker
37:08
from Entomens Bakery. And our business had
37:10
started growing. We started, so we outgrew
37:12
the little baker on Montana and we
37:14
ended up baking at a bakery in
37:17
the valley. Green's Bakery. It was a
37:19
little bit bigger. And Green's going to
37:21
San Fernando Valley. Correct. But Lynn Hoffman
37:23
was friends with the owner of that.
37:25
And we told Lynn what we were
37:28
doing. And the first thing he said,
37:30
he goes, stop calling these recipes. He
37:32
goes, these are formulas. And I was
37:34
like, okay, he goes, this is scientific
37:36
now, boys. Sure. Okay. So we get
37:39
Lynn to start helping us with these
37:41
products that we're working on. And we're
37:43
also starting to do some private label
37:45
for a pretty large coffee chain here
37:47
in Southern California. as their protein muffins.
37:50
Yeah, they, uh, it's called the coffee
37:52
bean and tea leaf. Sure. And how
37:54
many coffee bean and tea leafs were
37:56
there? At that time, there were over
37:58
a hundred. Wow, and you were servicing
38:00
all of them. all of them through
38:03
their distribution center. So you got a
38:05
contract with them. Correct. We were selling
38:07
our products to some of their independent
38:09
stores and they're like, well hey I
38:11
wonder what else these guys do. So
38:14
they asked us about doing some scones
38:16
and we told them we made the
38:18
best scones in the city. Which was
38:20
not a total lie. Which was not
38:22
true. You did not even make scones.
38:25
The guy wouldn't even know what the
38:27
hell of scone was. Or a scone
38:29
if you're in certain parts of the
38:31
world. So somebody said, hey listen for
38:33
you two rednecks, that's a biscuit with
38:36
fruit in it. And we said, okay,
38:38
we can make that. And so that
38:40
was one of the first products that
38:42
Lynn Hoffman actually helped us with. It
38:44
was reduced fat. I don't know why
38:47
at that time they were doing these
38:49
reduced fast scones, but that's what they
38:51
wanted. Not protein scones. Not protein, just
38:53
reduced fat. So we saw an opportunity
38:55
and we made these amazing scones and
38:58
it quickly became their number one selling
39:00
product. Wow. And because they, the scones
39:02
were such a success at coffee bean,
39:04
they, what do you think they said?
39:06
What else do you guys do? Yes.
39:09
And you said. What do you need?
39:11
Because now we saw opportunity there. We're
39:13
like, okay, we can, if we get
39:15
this private label business going, we can
39:17
use that money and help to grow
39:20
our brand. So they wanted some new
39:22
cheesecakes. So we started doing that for
39:24
them. And then they. They asked us
39:26
about if we could do things like
39:28
butt cakes. And the answer was always
39:31
yes, we can do this. We could
39:33
do this. But again, not protein. These
39:35
are not protein products for them. But
39:37
then when we started showing them protein
39:39
products like high protein cinnamon rolls, they
39:42
were like, okay, this is interesting. So
39:44
we started selling them some of our
39:46
newest protein inventions. This is not Lenny
39:48
and Larry's. This is hot and beat.
39:50
This is their product. This was a
39:53
chance to actually, we were actually making
39:55
money now. And it got the point
39:57
where we ended up, we were delivering
39:59
pallets of product to their distribution center.
40:01
So much, the business was booming so
40:03
much on the private label side, we
40:06
had to go buy a big truck
40:08
to deliver it seven days a week.
40:10
We were dropping off. product. Wow, so
40:12
this is you guys are bringing in
40:14
like 400, 500,000 a year. Now it's
40:17
starting to make some good money. But
40:19
you're not building a brand. Not building
40:21
a brand, still working it behind the
40:23
scenes. Don't gonna be wrong, we did
40:25
not give up on it. Our day
40:28
was spent, like, we just kept opening
40:30
up more and more accounts locally. Start
40:32
again, some independent 7-Elevens that could actually
40:34
take product without the approval of the
40:36
corporate office. Just the muffins, though. Just
40:39
the muffins, yeah. And then we started
40:41
developing more products. We started, we came
40:43
up with a brownie, high-protein brownies at
40:45
the time. Then things change one afternoon.
40:47
So which was which was Benny was
40:50
delivering product to coffee bean and I
40:52
got a call He got rushed to
40:54
the hospital. He had a deviated septum.
40:56
So he had a surgery done and
40:58
they had lance and artery didn't know
41:01
it at the time. So he was
41:03
bent over was picking up something and
41:05
blood just starts gushing. Oh, jeez. So
41:07
he gets rushed to hospital almost dies
41:09
He realizes he wants to leave California
41:12
and go back to Georgia and be
41:14
around his family. So we tried to
41:16
manage this, we'll call it as an
41:18
East Coast, West Coast business, but 9%
41:20
of our business was on the West
41:23
Coast. Let me just pause for a
41:25
second, because I know, I know that,
41:27
I guess this is around 2000 when
41:29
he moves. But I think, you know,
41:31
most of your business, probably 95% of
41:34
your business was coffee being in tea
41:36
leaf, right? Yeah. Benny has this kind
41:38
of life-changing experience. He decides he wants
41:40
to go to Georgia and you can
41:43
run the business by coastal, but that's
41:45
hard, especially in the sort of the
41:47
pre-internet, pre- zoom era. Yeah. And that
41:49
meant that you were probably delivering all
41:52
the product and dealing with all the,
41:54
you know, billing. and collection and all
41:56
that stuff. And he probably wasn't able
41:59
to do that much, definitely. No, at
42:01
that time, it wasn't big enough to
42:03
do East Coast, West Coast. So basically
42:06
doing 99% of the work for half
42:08
the money. Yeah. And it does, again,
42:10
went along to figure that out. That's
42:12
not a good model. And so you
42:15
want to change. So what do you
42:17
do? You say either I buy you
42:19
out or we sell the business. So
42:22
we put the business up for sell.
42:24
in 2001. 2001. And who was the
42:26
buyer? Don Crouch and Jim Felder. They
42:28
were two friends. They were two friends.
42:31
They were just two local guys that
42:33
lived in the valley. And they saw
42:35
potential in this business as a white
42:38
label. As a white label. Yeah. Yeah.
42:40
They liked the brand, but they thought
42:42
the white label business. Could they could
42:45
turn it into something? Yeah. And what
42:47
roughly, what did they pay for? $480,000.
42:49
So not, not ideal, but not bad.
42:51
Not, not, yeah, not bad. At least,
42:54
at least we created, we made money
42:56
along the way, we created something that
42:58
had value, and it was kind of
43:01
cool that you could sell a business
43:03
for, you know, almost a half a
43:05
million dollars that you created from just
43:07
an idea. Yeah, and they got those
43:10
accounts, though, they were, they, they got
43:12
everything. How'd you feel about, about that?
43:14
Was it, did feel like a relief,
43:17
you know, you know, you know, you
43:19
know, you know, you know, Ben, Ben,
43:21
Ben, Ben, Ben, Ben, Ben, Ben, Ben,
43:24
Ben, Ben, Ben, and, and, and, and,
43:26
and, and, and, and, and, and, No,
43:28
just say again, regret that I should
43:30
have just bought him out. And then
43:33
Don and I were sending the parking
43:35
lot talking after we had done our
43:37
deal and Don said, you and I
43:40
should have just partnered on this. I
43:42
said, I 100% agree. And so Don
43:44
and I remained friends as he owned
43:47
the business. They actually paid me to
43:49
really kind of manage the coffee bean
43:51
account because they knew how valuable it
43:53
was and I had a great relationship
43:56
with coffee bean. Do you remember feeling
43:58
similarly to how you felt when you
44:00
or out of American Gladiator when you
44:03
injured yourself? Yeah, like that? Yeah, like
44:05
like something ended that you just didn't
44:07
want it to end. I still had
44:09
the passion for my brand and it
44:12
was like it was just kind of
44:14
like giving it away and never watching
44:16
it never giving it a chance to
44:19
grow up. It was six and a
44:21
half years. Six and a half years.
44:23
Yeah. Somebody asked me what time what
44:26
did you, what did that six and
44:28
a half years cost you? I said
44:30
it just cost me time. It came
44:32
down to being very scattered and not
44:35
having what I call a hero product.
44:37
We had all these products that we
44:39
can make, but none of them were
44:42
the one where you just went to.
44:44
Yeah, this is this is our calling
44:46
card. This is what we're going to
44:48
be known for. You never focused on
44:51
like. This is the thing that only
44:53
we make, and only we can make
44:55
it great. Yeah, we made too much
44:58
stuff to really focus on one that
45:00
could be a winter. Now, we still
45:02
had our brand, but like I said,
45:05
it was the majority of our business
45:07
was Coffee Bean. And nobody knew your,
45:09
nobody knew the brand, no. Locally you
45:11
did, like we would, you would have,
45:14
yeah. Magic Johnson was a big fan
45:16
of her brand back in the day
45:18
when he was still playing with Lakers
45:21
and he would see our product, you
45:23
know, and he'd always buy the gold's
45:25
gym and somebody'd say, hey, Magic, that's
45:27
linear, he'd always, he'd stop and say,
45:30
oh man, I really love your product.
45:32
So we had those types of things
45:34
where we had, we had people that
45:37
knew us in LA, but nowhere else.
45:39
Yeah. So one kid or two. Yeah,
45:41
two from our previous marriage, two daughters,
45:44
and then my two sons. So I
45:46
had four kids at that time. Right.
45:48
So there's a lot on your plate.
45:50
Yeah. Oh, yeah. Yeah, true. So all
45:53
right. So you are out of Lenny
45:55
and Larry's. And then I guess over
45:57
the next few years, you do a
46:00
bunch of different things. Like you go
46:02
to real estate. I think you even
46:04
made some money, right? You got out
46:06
before the bust. Yeah, did well, did
46:09
well, actually. Yeah. And then I read
46:11
that like you did some work like
46:13
you went to work for a software
46:16
company for a while. Well that's the
46:18
interesting story there. So one of my
46:20
good friends, Michael Venny, he was working
46:23
with these guys in the software business
46:25
and they wanted to meet me. I
46:27
meet these guys and they've got this
46:29
little software company they're doing and it's
46:32
kind of computer monitoring software. And so.
46:34
They asked me one day if I
46:36
would like to join them and I
46:39
was like, well, in what capacity what
46:41
do I know about software, right? And
46:43
they said, we don't know. We said,
46:46
we just think that you could, maybe
46:48
you'll run our company one day. And
46:50
I was like, okay, so I hung
46:52
out with these guys, I call it
46:55
hanging out with them. They were paying
46:57
me to hang out with them. They
46:59
were paying me to hang out with
47:02
them. They were paying me to make
47:04
you present over a company, let you
47:06
run our company. And so I'm running
47:08
the software company called Awareness Technologies. And
47:11
we're selling computer monitoring software. Now this
47:13
is at the height of like the
47:15
NBC show, Catch a Predator. So we're
47:18
working with law enforcement agencies, schools, you
47:20
know, parents, etc. because the software captured
47:22
everything, every keystroke, every email, every website
47:25
visited. And we were doing great. I
47:27
mean, this thing was catching fire. But
47:29
I was looking at this, I'm just
47:31
like, well, if I could do this
47:34
with software, imagine what I could do
47:36
with if I had my company back.
47:38
I could sell direct consumer snacks. And
47:41
it was just, you know, kind of
47:43
putting it out there in the universe.
47:45
And that's when Don Crouch reached out
47:47
to me and said, I need help.
47:50
I'm about to shut this thing down
47:52
that I bought from you. Because he
47:54
said, I don't know what I can
47:57
do. with this. I don't know. I
47:59
don't know where I can go with
48:01
this anymore. Was he still supplying coffee
48:04
beans? Still supplying coffee beans and he
48:06
had a little bit of other like
48:08
private level stuff. He may have, he
48:10
was doing locally and, um... He said,
48:13
I'm about to shut this thing down.
48:15
Would you ever consider coming back? So
48:17
we did quick negotiations and I said,
48:20
yeah, I just throw caution to the
48:22
way in here. I'm in. He said,
48:24
well, you want to come back? You
48:26
want to come back? Be a 50-50
48:29
partner with me. 50-50 partner. Yep. And
48:31
did you have to buy some of
48:33
the back? Yeah, it was very, it
48:36
was very cheap. Low. Was a local
48:38
case. So you were able to buy
48:40
50% of the company back. and basically
48:43
be the partner again. Yep. What was
48:45
exciting? I mean, I'm just, it's kind
48:47
of like a sort of a dumb
48:49
question, but I'm teeing you up for
48:52
it, but I'm curious in your mind,
48:54
what was exciting about that prospect? I
48:56
mean, you would, he left six years
48:59
earlier. Yeah. You've not been involved for
49:01
six years. Yeah. What was exciting about
49:03
coming back to this thing. Building my
49:06
brand excited me. I wasn't scared at
49:08
all. I got my baby back. Why
49:10
don't we come back in just a
49:12
moment? Barry has the second worst day
49:15
of his life. Stay with us. I'm
49:17
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49:19
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Land Rover USA. USA. Hey,
51:28
welcome back to how I built
51:30
this. I'm Guy Ross. So it's
51:32
2007, and Barry's bought back half
51:34
of Lenny and Larry's from its
51:36
current owner, Don Crouch. I wasn't
51:38
scared at all. I love going
51:40
back into the unknown, but I
51:42
was so confident that I could
51:44
turn this into what I originally
51:46
thought Lenny and Larry's could be,
51:48
which was a brand. And funny
51:50
story, I walked into the office
51:52
the first day, we had a
51:54
small little office on an ancino
51:56
on a Ventura Boulevard. And jokingly
51:58
to Don, I just said, okay,
52:00
I said, sit down, shut up
52:02
and watch what I'm about to
52:04
do. And we had a big
52:06
laugh about that, right? But coming
52:08
from my experience working in the
52:10
software company and working with these
52:12
guys who were very brilliant guys,
52:14
by the way, in terms of
52:16
marketing, I felt like I could
52:18
launch the first direct consumer snack
52:20
food company that was, you know,
52:22
kind of a protein, fiber, all
52:24
natural. I thought that's what I
52:26
was going to do. And so
52:28
the first product I wanted to
52:30
launch was a high protein brownie
52:33
because everyone was doing protein bars
52:35
at the time and no one
52:37
had done a brownie. Let's talk
52:39
about building the brand. First of
52:41
all, you didn't have a, you
52:43
needed a logo, you needed packaging,
52:45
you needed to get it into
52:47
shops. I mean, you had the
52:49
muffins and some, a few places.
52:51
So let's talk about first, first
52:53
of all, the logo. Okay. Because
52:55
I don't know if everybody knows
52:57
what this looks like, It looks
52:59
like two crazy dudes with like
53:01
clown hair on this logo. Yeah,
53:03
that's the logo. Lenny and Larry's.
53:05
Yeah, and our original logo was
53:07
mine and Benny's actual faces are
53:09
hair. That was original. It was
53:11
like a real photo. But when
53:13
I came back, the first thing
53:15
I said I'm gonna do is
53:17
I want to create a caricature.
53:19
It can't be a photo anymore.
53:21
So we create a character of
53:23
the logo. It's basically a giant
53:25
afro with two heads. That's what
53:27
it became. Two heads and always
53:29
say one head of hair. One
53:31
head of hair. Yeah. And you're
53:33
gonna come out with your own
53:35
product, Lenny and Larry's, in shops,
53:37
and it's going to be a
53:39
brownie. And so we find, I
53:41
find someone to manufacture the brownie.
53:43
We design the film. everything. We
53:45
ordered 72,000 brownies, 36,000 of two
53:47
flavors, had those shipped to a
53:49
warehouse that we rented, and we're
53:51
sitting there with 72,000 brownies and
53:53
said, now we have to go
53:55
sell these. You did not have
53:57
any commitments? Nope, not a single
53:59
commitment. Nope, not a single commitment.
54:01
And how long would these brownies
54:03
last? Oh, they would last, yeah,
54:05
15 months easily. Okay. Yeah, these
54:07
have a really, really good shelf
54:09
life. Yeah. So how did you
54:11
sell them? First thing we walked
54:13
into the Whole Foods office in
54:15
Sherman Oaks. Did you have a
54:17
connection there? Well, we did, I
54:19
didn't know who was working there.
54:21
We just showed up at the
54:23
office one day and see what
54:25
do you have. and I showed
54:27
her, she goes, I love this,
54:29
let's put it in. That's it.
54:32
That's it. That's it. How much,
54:34
by the way, how much protein
54:36
in each brownie? 20 grams. 20
54:38
grams. And to be clear, you
54:40
did not, sugar was not an
54:42
issue. You weren't worried about sugar
54:44
and carbs, right? No. I felt
54:46
like, again, I was still catering
54:48
to the masses and not the
54:50
bodybuilder fitness I wanted to sell
54:52
to. And not to minimize the
54:54
what this product was and how
54:56
innovative it was. I want to
54:58
jump ahead, but there was a
55:00
little product. It was a cookie.
55:02
It had a label on it
55:04
and it had a little, like
55:06
a sheet in the back that
55:08
you could print our nutritious on.
55:10
And we sold that locally to
55:12
7-Elevens and a lot of office
55:14
buildings and stuff like that. This
55:16
is a protein cookie. But it
55:18
didn't have a great shelf life.
55:20
And a clear package, you can
55:22
see the package and light oxygen
55:24
can destroy it, but it. Had
55:26
a couple weeks shelf life. And
55:28
we remember a call we had
55:30
with vitamin shop, and vitamin shop
55:32
said, if you could get a
55:34
shelf life on your cookie, we
55:36
would take that also. And I
55:38
went, okay. Because how long did
55:40
the cookie last? A couple of
55:42
weeks. And that was because of
55:44
the packaging? Yeah, because of the
55:46
packaging. Yeah, because of the packaging.
55:48
And so I had the light
55:50
bulb moment again. It's like, I
55:52
got to design a film for
55:54
that cookie. And we did. Then,
55:56
I would say the rest is
55:58
history, but the cookie just became
56:00
an absolute. monster. I wanted like
56:02
again I was trading I wasn't
56:04
creating a low sugar you know
56:06
low carb product I was trading
56:08
out a freaking cookie. It had
56:10
flour and had sugar it had
56:12
everything 400 calories became popular with
56:14
college kids construction workers teachers people
56:16
they could say for a buck
56:18
99 I get this giant cookie
56:20
it's very filling I can grab
56:22
I'll grab my red bowl and
56:24
I'll grab a linear hilarious cookie.
56:27
I mean one cookie I'm looking at
56:29
today I think it's probably similar 10
56:32
grams of fiber yeah 16 grams of
56:34
protein but you know 26 grams of
56:36
sugar yeah but but I guess you
56:39
just were like maybe people can choose
56:41
this it's marginally better than a an
56:43
oriole or a twinky that was that
56:46
was that was everything I want to
56:48
create a better bad I want people
56:50
to make a better choice and nobody's
56:53
gonna go from eating a you know,
56:55
a little Debbie to eating some sort
56:57
of protein bar. It just, there's, there's,
57:00
there's, there has to be something, there
57:02
has to be a stop in the
57:04
middle. Yeah. What are the cookie retail
57:07
for? Retail from, anywhere from like a
57:09
dollar ninety nine to two forty nine,
57:11
that range. And how much should it
57:14
cost to make? Less than 50 cents?
57:16
Yeah. We weren't, we weren't shy about
57:18
making, making a profit. What we liked
57:21
about us, like we were, we never
57:23
had to, we never had to raise
57:25
money, we never had investors, never had
57:28
debt. So, okay, so by 2014, are
57:30
you still primarily in California only? No,
57:32
we're, we're everywhere at that time. We're
57:35
really, we're really starting to take off.
57:37
2014, we're about doing about 11 million
57:39
in revenue. So you hit $11 million
57:42
in sales by 2014. Yeah. or mainly
57:44
on the strength of the cookies not
57:46
the muscle brownies. No, the muscle brownies.
57:49
No, the muscle brownies was still there.
57:51
It just literally caught fire. Why do
57:53
you think that is? I mean, I
57:56
think the answer is just because cookies
57:58
are much bigger, more popular snack than
58:00
brownies. Well, that's it. And a brownie
58:03
is considered a decadent treat. It's not
58:05
something you would eat every day. You'd
58:07
eat a cookie every day. Even though,
58:10
like, nutritionally, they're pretty similar. Yes, exactly.
58:12
But it's funny guy, when we talk
58:14
about like, we talk about sugar and
58:17
carbs and, you know, all this nutrition
58:19
stuff, you and I are still in
58:21
the minority of the minority of that.
58:24
world. The rest of the country is
58:26
still trying to make a better choice,
58:28
but they're not going to make an
58:31
extreme choice. So people still want to
58:33
have their, you know, cake and eat
58:35
it too. They'll sacrifice something in order
58:38
to eat a something that's just a
58:40
little bit less bad that had some
58:42
nutritional benefits to them. I completely agree
58:45
with that. I think that's exactly right.
58:47
I think that this has a tiny
58:49
number of people care about sugar and
58:52
carbs. I think most people, you're right,
58:54
if they see protein, fiber, they're good.
58:56
They're not worried about the carbs or
58:59
the other sugar. Okay, so you're just
59:01
growing, like hockey stick. Hockey sticking. So,
59:03
all right. I guess around 2015, you
59:06
are at a trade show. Yep. And
59:08
you guys are... a hot ticket there,
59:10
right? Hot, yep. We just finished, I
59:13
think it's 2014, at 11 million, and
59:15
we're gonna have, we're gonna grow probably
59:17
to, you know, 18 million or something
59:20
the next year, whatever, in 2015, but
59:22
I got introduced to a gentleman named
59:24
Nick Gianuzzi, and Nick is an incredible
59:27
attorney, it represents, pretty much every CPG
59:29
brand that's been sold, he's always represented
59:31
them. Nick, pull me aside, and just
59:34
said, I love your brand, he goes,
59:36
he goes. jokingly he just said stop
59:38
effing around and start doubling your revenue
59:41
and you're gonna get notice and I
59:43
was like okay it inspired me to
59:45
want to really turbocharge myself So we
59:48
went from 11 to 27 million in
59:50
one year by opening up accounts and
59:52
actually managing, servicing the accounts we already
59:55
had. How many employees did you have?
59:57
2014, 2015 we may have had seven.
59:59
God, with 27 million coming in, that's
1:00:02
an efficient business. And that's the only
1:00:04
way we knew how to do it.
1:00:06
I never believed in hiring when you
1:00:09
have to hire. I believe in paying
1:00:11
your people more money that are there.
1:00:13
And we had a great, we had
1:00:16
a great small little ragtag team. And
1:00:18
from there, 27 million turned into 94
1:00:20
million in revenue the next year. By
1:00:23
2016. By 2016. And what percentage of
1:00:25
that do you think was the cookies?
1:00:27
Probably, probably 90%. Were you worried at
1:00:29
all that this was not going to
1:00:32
last, that you would have competitors coming
1:00:34
in? I mean, that in other words,
1:00:36
did you think like, we better really
1:00:39
make a bunch of snacks because otherwise
1:00:41
we're just going to get General Mills
1:00:43
or whoever Nabisco is going to come
1:00:46
in and do this? I'll be 100%
1:00:48
honest with you. I have never in
1:00:50
my life worried about a so-called competitor.
1:00:53
And that's not being cocky. It's just
1:00:55
like, if I'm worried about what someone
1:00:57
else is doing. Then I'm not worried
1:01:00
about what I'm doing, so I didn't
1:01:02
care what you were doing. I was
1:01:04
building a brand, but I fought a
1:01:07
bunch of other things along that journey
1:01:09
that could have destroyed my business. Like
1:01:11
what? Well, one was an issue with
1:01:14
one of our manufacturers. I got a
1:01:16
call from one of our retailers in
1:01:18
Florida that said, hey, we're starting to
1:01:21
see these little, we'll call them little
1:01:23
bugs. They're in a cookie, no kidding.
1:01:25
Like a little smoth. And they're called
1:01:28
meal moths. So they get in flower
1:01:30
like flowers than sitting for a long
1:01:32
time whatever. Yes, I've seen that I've
1:01:35
had that. Okay. So so have that
1:01:37
happened with a like a retailer for
1:01:39
now social media is out there and
1:01:42
the first thing people do is they
1:01:44
want to start posting you're just oh
1:01:46
yeah. Yeah. And I had to take
1:01:49
that along. myself I literally post I
1:01:51
was doing our own social media at
1:01:53
the time and I actually posted my
1:01:56
own phone number and just said anyone
1:01:58
who gets I said I'll trust me
1:02:00
out I said I'm gonna handle this
1:02:03
I'm gonna you know I apologize to
1:02:05
everyone or whatever and it was real
1:02:07
quick we were able to isolate it
1:02:10
real quick because it was one flavor
1:02:12
and we knew the actual group that
1:02:14
actually made it so we're able to
1:02:17
isolate and pull all that product but
1:02:19
anything to damage your reputation it just
1:02:21
makes you you you don't sleep at
1:02:24
night yeah for sure I mean, but
1:02:26
still, I mean, even with all that,
1:02:28
like, as you mentioned, I think by
1:02:31
2016, I mean, you guys are doing,
1:02:33
like, almost $100 million in revenue. And
1:02:35
then I think that same year, you
1:02:38
decide you're going to find, you're going
1:02:40
to sell it. You're going to sell
1:02:42
the brand again. Yeah, well, it's only
1:02:45
because people start, that's what people start
1:02:47
coming for you. And you're just, you're
1:02:49
fielding call after call after call after
1:02:52
call, a lot of... the general not
1:02:54
general mills but general mills type companies
1:02:56
will say big companies are coming for
1:02:59
you they're asking about you they're they
1:03:01
want to buy your company and we
1:03:03
had 28 interested parties right out of
1:03:06
the gate and then I'm like shit
1:03:08
pardon my French but the we had
1:03:10
just moved in this beautiful warehouse office
1:03:13
I was just just just starting to
1:03:15
enjoy this I didn't really want to
1:03:17
sell and then you're starting to feel
1:03:20
like some big offers for your business
1:03:22
And you accept an offer from a
1:03:24
group called Lion Capital. Correct. First of
1:03:27
all, I'm curious, was there an option
1:03:29
to go to get acquired by a
1:03:31
big food brand? There were a couple
1:03:34
at the table and had made offers.
1:03:36
And I'm just being honest with you,
1:03:38
if I was going to sell it,
1:03:41
I was going to sell it to
1:03:43
the highest bidders. High-bitters? Yes, I hear.
1:03:45
All right, so they were the highest
1:03:48
bidder. And they acquired you for, I
1:03:50
think it was a mixturester of cash
1:03:52
and equity and equity, right. Yeah, they
1:03:55
so they bought end up buying 75%
1:03:57
of the business and we're at the
1:03:59
time now you understand this is seven
1:04:02
years ago. So if you're equating it
1:04:04
to the value of today, so at
1:04:06
the time we were valued at $250
1:04:09
million. Not bad. And so we sold
1:04:11
75% of the business. And it was
1:04:13
just because how our business was structured,
1:04:16
we were in S-corp, it had some
1:04:18
value to them. And so Nick Guianuzzi,
1:04:20
who I mentioned earlier, he represented us,
1:04:23
he was our attorney, and he told
1:04:25
us, point blank, he said, don't expect
1:04:27
to get the second bite of the
1:04:30
apple. All right, so this begins a
1:04:32
period of what you're still in today
1:04:34
And and they're not on this in
1:04:37
the in this interview So I want
1:04:39
to be careful and mindful and respectful
1:04:41
of them So I'm gonna play the
1:04:44
part of defending them a little bit
1:04:46
here, but sure but you are still
1:04:48
in this situation where you own Still
1:04:51
a chunk of the business Correct and
1:04:53
technically you're on the board, right? I'm
1:04:55
on the board. Yeah, okay, but when
1:04:58
you left or when when they bought
1:05:00
you out Yeah, they replaced you with
1:05:02
a new CEO right correct I, you
1:05:05
said that the first time you sold
1:05:07
it, 2001, was the worst day of
1:05:09
your life. Terrible. When you sold it
1:05:12
for the second time, you say it
1:05:14
was the second worst day of my
1:05:16
life. Yep, I still live by that.
1:05:19
I miss my people more than, more
1:05:21
than anything. These are my team members.
1:05:23
These are people that helped me grow
1:05:26
this business. So, yeah, I, to this
1:05:28
day, I wish I'd never would have
1:05:30
sold my company. Okay, so while you're
1:05:33
the company, okay, they take it over,
1:05:35
you're out as the CEO, but you're
1:05:37
still an advisor ostensibly. Yeah. But, and
1:05:40
look, I see Lenny and Larry's everywhere.
1:05:42
Every time I go to Whole Foods,
1:05:44
I see it everywhere. It's a, it's
1:05:47
a, that logo just pops, I see
1:05:49
those, that, that Afro. So I'm under
1:05:51
the impression that things are swimming, are
1:05:54
great, going great. You have a different
1:05:56
view here. You are not happy with
1:05:58
how it how it shook out. You're
1:06:01
not happy with the current owners of
1:06:03
the brand. Not at all. I have
1:06:05
no problem saying that. We're just we're
1:06:08
not each other's cup of tea and
1:06:10
It's just bad decision after bad decision,
1:06:12
bad hire after bad hire. They hired,
1:06:15
this is no lie. Within six months
1:06:17
of selling the company to them, we
1:06:19
went from 17 employees to 59 employees.
1:06:22
The business isn't triple. They only grow
1:06:24
the business about six to eight percent
1:06:26
a year if that. They destroyed profitability.
1:06:29
I felt like I handed them a
1:06:31
Ferrari and they turned it into a
1:06:33
Ford Taurus. But what would the, I
1:06:36
mean, look, I'm looking at their portfolio.
1:06:38
This is clearly a sophisticated group. I
1:06:40
mean, they own kettle chips, that's just
1:06:43
in food, but they own beverage and
1:06:45
hospitality and jewelry and licensing, personal care.
1:06:47
I mean, they've made a bunch of
1:06:50
cash in different, in different, in different
1:06:52
places. Like, there's no question on my
1:06:54
mind. I think you're being nice by
1:06:57
saying sophisticated. After they bought the company,
1:06:59
they said, we need to professionalize the
1:07:01
management in this company. And that means
1:07:04
we weren't professional enough in their advice.
1:07:06
Then you fast forward about, you know,
1:07:08
four or five years later, they go,
1:07:11
we gotta go back to being an
1:07:13
entrepreneurial brand. Well, that's what we were.
1:07:15
That's what we always were, was an
1:07:18
entrepreneurial brand. And they never really embraced
1:07:20
it because they had to come in,
1:07:22
they had to show, we know what
1:07:25
we're doing. And they just don't. And
1:07:27
they just don't. Okay. Because again, you
1:07:29
know what, we don't do this in
1:07:32
our documentary show. Yeah, only have you
1:07:34
on here. So I've got to be
1:07:36
respectful of lying to everyone. And there's,
1:07:39
you know, there's emotional. It's like a
1:07:41
house, it's like a business. It's like
1:07:43
anything that somebody creates where I'm emotionally
1:07:46
attached to how I built this, right?
1:07:48
The reality is that you can just
1:07:50
let it go if you want to.
1:07:53
And just say, you know what, I'm
1:07:55
just going to let it go. And
1:07:57
I. Whatever it is what it is.
1:08:00
Oh I and I and I have
1:08:02
I don't okay. Okay. Good fact we're
1:08:04
talking about it. It's fine like said
1:08:07
I don't it is healthy. That's healthy.
1:08:09
Oh. Yeah. Yeah. Yeah. Yeah. Yeah. I
1:08:11
don't think about them ever do a
1:08:13
board call even now and then, whatever,
1:08:16
but I don't even, I don't comment
1:08:18
on the call. I don't even go
1:08:20
on the screen. I'm just on mute
1:08:23
and I'm listening. But yeah, then there's
1:08:25
always two sides to every story and
1:08:27
I 100% agree with that. Here's the
1:08:30
thing, right? And this is like a
1:08:32
fear that I think a lot of
1:08:34
people have, especially as they get into
1:08:37
their 50s, which is you've had some
1:08:39
success in your professional life. whether it's
1:08:41
a business or you're working for a
1:08:44
company or whatever, and for a variety
1:08:46
of reasons, that ends. And you can
1:08:48
live for the rest of your life.
1:08:51
Yeah. Like, right? You can be, you
1:08:53
can live off what you made and
1:08:55
live a good life, but you lose
1:08:58
that purpose, that sense of purpose, which
1:09:00
is really scary. I did, I did
1:09:02
care about my brand a lot. When
1:09:05
you look back on this whole journey
1:09:07
and you think about where you got
1:09:09
to, because you did really, did really
1:09:12
well. Yeah, you didn't, you know. Here
1:09:14
I am. How much of where you
1:09:16
got to do, do tribute to the
1:09:19
work you put in the grind and
1:09:21
how much you think has to do
1:09:23
with getting lucky? Yeah. I just don't
1:09:26
like the word luck. I might. My
1:09:28
thing was always said, luck wins you
1:09:30
the lottery. I created my own lottery.
1:09:33
That's Barry Turner, co-founder of Lenian Larry's.
1:09:35
By the way, I think there's something
1:09:37
you're not telling me that you, I
1:09:40
think you're concealing from me here, which
1:09:42
is I'm looking at the cast of
1:09:44
that movie you were in, Death Becomes,
1:09:47
and Fabio was in that movie. You
1:09:49
know what? You're right. You are right.
1:09:51
You did not tell me that. I
1:09:54
forgot about that. Fabio was your co-star.
1:09:56
Well, you were in a movie together.
1:09:58
Yeah, there's Fabio. I wonder what he's
1:10:01
doing these days. He seems like a
1:10:03
nice guy. I think he's done some
1:10:05
like self-parity stuff. Yeah, that's my buddy.
1:10:08
Hey, thanks so much for listening to
1:10:10
the show this week. Please make sure
1:10:12
to click the follow button on your
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sign up for my newsletter at guyraz.com
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or on Substack. This episode was produced
1:10:24
by J.C. Howard with music composed by
1:10:26
Rumtine Arab Louie. It was edited by
1:10:29
Niva Grant with research help with Catherine
1:10:31
Sifer. Our audio engineers were Patrick Murray
1:10:33
and James Keeley. Our production staff also
1:10:36
includes Alex Chung, Carla Estez, Casey Herman,
1:10:38
Sam Paulson, Carrie Thompson, John Isabella, and
1:10:40
Elaine Coates. I'm Guy Ross and you've
1:10:43
been listening to How I Built This.
1:10:52
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