Success Story of Paul Lindley: Founder of Ella’s Kitchen (Children’s Organic Food Company)

Paul Lindley: Founder of Ella’s Kitchen (Children’s Organic Food Company)

One of the key participants in the upcoming seminar, 'The Barclays Ready for Growth', is Paul Lindley, owner of Ella's Kitchen. This seminar aims to convey the experiences of successful entrepreneurs for the growth of small businesses.

According to Amanda Shepherd, Barclays Business regional director for Yorkshire, "There's still a lot of uncertainty out there for business. Many don't know if they should be expanding, contracting, sitting tight or selling up. This is an opportunity for businesses to be inspired to grow with confidence and hear from successful entrepreneurs who have taken the bull by the horns and significantly grown their company recently."

Today, I’ll try to go through the secrets of success of Paul Lindley, who proved himself quite a prominent entrepreneur during the last five years.

Ella’s Kitchen, founded by Paul Lindley, is now one of the 10 fastest growing private companies in the UK. In 2007 and 2008, Paul was shortlisted for Entrepreneur of the Year for the SE of England at the National Business Awards. In May 2010, Paul was shortlisted for the Food Manufacturing Excellence Award: Personality of the Year award (final results to be announced November 2010).

Paul Lindley: Early Life, Academics and Practical Life

Paul Lindley was born as on 17 October 1966 in Sheffield, England and grew up in Lusaka, Zambia. He attended Mount St Mary’s College in Derbyshire, England; before graduating from the University of Bristol with an honours degree in Economics and Politics.

Paul trained and qualified as a Chartered Accountant at KPMG in London and Los Angeles. He then spent 9 years at Nickelodeon UK where he rose from Financial Controller to Deputy Managing Director via the roles of Finance Director, Commercial Director, Communications Director and General Manager.

He married to Alison Lindley, and presently lives in Berkshire with two children, Ella and Paddy.

Paul Lindley: Stepping Towards Success

In 2004, he gave up his job to follow his dream. He explored the worlds of retail, of food manufacturing and of the FMCG industry and discovered a place in the market for Ella’s Kitchen to fill. Almost 2 years to the day after leaving Nickelodeon he – together with his daughter, Ella, after whom he named his company – saw their Ella’s Kitchen products on supermarket shelves for the first time. In only 4 years, by June 2010, families were spending over £30M on Ella’s Kitchen foods across the world.

Paul Lindley: On the Fast Track of Success

Paul Lindley is a strong supporter of the need to innovate to survive as a growing food brand. At Ella’s Kitchen, this has been evident through the products themselves (baby recipes include sweet potatoes, pumpkin and blueberries, and orange and pear breadsticks), to the use of squeezy pouches that many competitors have since imitated, right down to the marketing strategy. The company’s launch was supported by a six-week campaign on Nickelodeon. Lindley negotiated a risk-free revenue share arrangement, which required no upfront expenditure.

“I went to a number of TV channels,” explains Lindley. “And I said: ‘I used to sit on the other side of the desk; I know we’ve got a childhood health problem, and television is often blamed for that. I also know that at certain times of the year you don’t sell all your advertising. You could be seen to be actively helping with better health for kids by showing products with real health benefits in a way that children will really connect with. I haven’t got any money, but I hope to make some, and if I make some I’ll share some of that with you.”

This agreement helped Lindley to secure national distribution with Sainsbury’s, on the promise that the products would be supported by a major above-the-line campaign. However, while he admits his inside knowledge helped to make it happen, he would recommend this approach to any entrepreneur, and believes the recession has made it all the more possible to negotiate better deals.

Television is still used by Ella’s Kitchen, although activity has evolved to sponsorship of Nic Junior’s lunchtime programmes, with the goal of increasing awareness of the brand. However, much of the company’s marketing efforts focus on in-store promotions and activity. “The retailers respond well to the fact that we’ve really created a premium category within baby food that is hugely growing and no longer niche,” says Lindley. “Before, it was mass-market – it came in jars, it all looked, tasted and was priced the same. We’re attracting mums that have never shopped down the baby aisle before, who see our brand as a substitute to their own cooked food.”

Product development has been frantic, and there are now 46 products, across 11 ranges, which focus on six-month-olds to six-year-olds. Meanwhile, Ella’s Kitchen is stocked by all the major supermarkets and many independent retailers. The company’s expansion into baby foods has been a particular triumph, and Ella’s Kitchen now owns around 10% of commercial baby food sales in the UK. “If we rested on our laurels then we wouldn’t be unique in two or three years’ time, so we’re always looking at other ways to bring innovation to that category. As long as we remain innovative and put the consumer at the heart of what we are, we’ll fuel more growth,” says Lindley.

Paul Lindley: Secrets Behind Success

He might have used marketing effectively, but he insists the company’s values are no gimmick. A certificate displayed proudly on the firm’s website confirms it as one of a handful of companies that has never used certain e-numbers linked to hyperactivity in children. Meanwhile, accolades have come in swathes, including being crowned food and drink brand of the year at the Grocer Gold Awards 2010, (beating Cadbury, Walkers, Hovis and Doritos to the punch) and being voted the most trusted baby food brand by an independent survey of 10,000 mums conducted by Mums’ Views.

Children – hardly renowned for their tact – are still very much involved in the product development, Lindley says. In fact, he insists that their propensity to tell it like it is makes them ideal focus group material. After all, ingenious marketing might lure a first time buyer, but if the product’s not up to scratch they won’t be coming back for more.
“As consumers, when they try new products, they’re so honest. There’s no social graces, if they like it, they’ll love it, and if they don’t they’ll tell you in no uncertain terms. Even very small babies will pull a face, or they will reach out for it for a second time if they like it.”

Likewise, job titles such as Ella’s Dad (managing director), head of making friends (marketing director), head of making deals (sales director) and head of running like clockwork (operations director), might sound contrived, but Lindley says it’s all part of a genuinely un-corporate culture that has been a big part of the business’ success.

While demand has never been an issue, scaling up to meet it has proved more problematic. “The problem of running out of stock against the problem of holding too much stock is where your cash gets tied up. You don’t want to lose sales, but you don’t want to tie your cash up in stock, and that balance is a real challenge,” he says. “You’ve got to be on top of your cashflow all the time, and structure your commercial deals so that cashflow works and can help with that growth. A serious challenge came when we had a much wider range of products, many more factories and many more suppliers, and we needed a consolidated distribution centre, and therefore we had to hold stock. It’s a person’s job now, and introducing KPI incentives and goals in that area is just as important as building sales or keeping gross profits to the right level.”

“Our un-corporate image is appealing and our non-execs have bought into that,” he says. “We’re talking from a really personal level. I’m a dad talking to someone else’s dad. It’s a point of difference, it’s real, and they very much believe the long-term sustainability and value of our business will come naturally out of keeping those values and not looking for short-term returns – although we have been profitable from year one.”

Paul Lindley: Discussing His Success