WEBVTT - Nottingham Spirk Co-Pres. on Business Innovation 0:00:00.160 --> 0:00:04.640 This is Bloomberg Business Week with Carol Masser from Bloomberg Radio. 0:00:05.040 --> 0:00:06.800 We've said it a lot on air. We've talked about 0:00:06.800 --> 0:00:09.880 how disruption, times of stress and strain lead to innovation, 0:00:10.000 --> 0:00:11.960 and our next guest is really all about that. He 0:00:12.000 --> 0:00:15.800 and his Family Office hold over patterns of which have 0:00:15.840 --> 0:00:20.480 been commercialized, including the crust Spin toothbrush and Swiffer sweeper back. 0:00:20.520 --> 0:00:23.079 So let's bring in John Nottingham. He's co president of 0:00:23.079 --> 0:00:27.319 the Family Office. It specializes in innovation. Nottingham Spurk is 0:00:27.360 --> 0:00:29.360 the firm. He also serves on the boards of the 0:00:29.360 --> 0:00:32.840 Cleveland Clinic Board of Trustees, Case Western Reserve University's Tech 0:00:32.840 --> 0:00:35.519 Commercialization Board, and a lot more. He joins us on 0:00:35.560 --> 0:00:38.479 the phone from Cleveland, Ohio. John, first of all, welcome 0:00:38.520 --> 0:00:40.879 to Bloomberg. So nice to have you here. How are 0:00:40.920 --> 0:00:44.640 you and happy New Year? Well, happy to you, Carol, 0:00:44.680 --> 0:00:47.120 Thank you for having me. So tell me before we 0:00:47.159 --> 0:00:50.000 get into some of what you guys are doing, UM, 0:00:50.159 --> 0:00:53.720 is how the last twelve months have been for you? 0:00:54.000 --> 0:00:57.320 Um and the past week because I think as a leader, 0:00:57.400 --> 0:01:00.280 we've just seen you know, and as an investor, one 0:01:00.320 --> 0:01:03.480 tough headline after another in the last twelve months and 0:01:03.520 --> 0:01:06.760 certainly this week. So I'm curious kind of how you 0:01:06.800 --> 0:01:09.039 see and how you process it and how you think about, 0:01:09.400 --> 0:01:12.280 you know, the work that you do. Well, you know, 0:01:12.440 --> 0:01:14.560 you look at the current events and you look at 0:01:15.040 --> 0:01:18.080 you look at the world at face value, and you say, look, 0:01:18.640 --> 0:01:21.280 how does that affect me? How does it affect my 0:01:21.280 --> 0:01:25.360 my partners, clients and and UH co workers, and and 0:01:25.920 --> 0:01:28.600 you look at you look past the noise, and you 0:01:28.680 --> 0:01:33.120 look for for opportunity, and you know there is opportunity 0:01:33.120 --> 0:01:36.160 and disruption. So that's what we're focused on. Well, tell 0:01:36.200 --> 0:01:38.560 me in terms of the disruption you're seeing and where 0:01:38.560 --> 0:01:43.200 that has led you in terms of innovation and opportunities. Well, 0:01:43.240 --> 0:01:46.399 you know, we have the core of our firm here 0:01:46.640 --> 0:01:50.000 is a product innovation firm. So we are vertically integrated 0:01:50.400 --> 0:01:53.800 to have you know, insights and design and engineers and 0:01:53.880 --> 0:01:58.760 prototypers all at one location in Cleveland, Ohio. And when 0:01:58.760 --> 0:02:01.320 we see an opportunity, we grab it. So give me. 0:02:01.520 --> 0:02:03.640 I'll give you an example. As soon as as soon 0:02:03.680 --> 0:02:08.360 as the pandemic hit, we said, okay, uh, where's the 0:02:08.680 --> 0:02:12.320 where's the demand for product? We saw a hand sanitizer, Well, 0:02:12.320 --> 0:02:15.640 great hand sanitizer is great, but but one of the 0:02:15.800 --> 0:02:18.040 one of the problems is you have to touch it 0:02:18.160 --> 0:02:20.960 to dispense the product, so you know who's touched it 0:02:21.040 --> 0:02:24.480 before that. So what we did is we fast tracked 0:02:24.639 --> 0:02:28.640 a product into the marketplace that's hand sanitizer, but you 0:02:28.639 --> 0:02:31.320 don't have to touch it. It just dispenses it right 0:02:31.360 --> 0:02:35.000 in your hand. That's pretty amazing. How are we able 0:02:35.080 --> 0:02:39.560 to quickly do that? Well, we because we're vertically integrated. 0:02:39.639 --> 0:02:42.160 We have all the we have all the engineers and 0:02:42.280 --> 0:02:46.000 designers and people, and we can just fast track it. 0:02:46.080 --> 0:02:49.400 We we grab a factory, we we get we get 0:02:49.560 --> 0:02:52.000 a launch partner, and we just launched it. So if 0:02:52.040 --> 0:02:54.640 you go into Lows right now as an example, we 0:02:54.639 --> 0:02:57.280 we we launched it Lows. They bought everything that we 0:02:57.320 --> 0:03:00.600 could we could uh produce and uh you know the 0:03:00.720 --> 0:03:03.520 stack to the ceiling at Lows and then we're going 0:03:03.560 --> 0:03:05.480 to roll it out the other retailers as soon as 0:03:05.520 --> 0:03:07.920 we can. We can catch up with the band. But 0:03:07.960 --> 0:03:11.840 we've sold million we've made This didn't exist in March 0:03:12.560 --> 0:03:15.280 and we're making millions of product right today. Yeah, it's 0:03:15.280 --> 0:03:18.079 pretty fascinating because you know, we focus so much, you know, 0:03:18.120 --> 0:03:20.120 We've been talking a lot about e VS and a 0:03:20.240 --> 0:03:23.640 ton of his vehicles. Like it's innovation often leads you 0:03:23.680 --> 0:03:26.320 to very very high tech stuff, but sometimes it's just 0:03:27.040 --> 0:03:30.960 some very simple solutions like what you guys are working on. Oh, 0:03:31.040 --> 0:03:33.360 it could be low tech. For instance, we work with 0:03:33.360 --> 0:03:37.240 a number of portfolio companies that have product and you 0:03:37.280 --> 0:03:39.840 know they have they have margin issues. Well, we could 0:03:39.920 --> 0:03:42.280 go in and take a look at that product, hear 0:03:42.320 --> 0:03:46.480 it apart and put it back together and uh delivered 0:03:46.560 --> 0:03:49.760 twice the margin they had before. Keep the price, but 0:03:49.840 --> 0:03:53.200 the margins multiplied. And so those are the kind of 0:03:53.280 --> 0:03:55.600 we have to react. We have to pivot, we have 0:03:55.680 --> 0:03:58.120 to be nimble, and we just have to react to 0:03:58.160 --> 0:04:00.680 the market as we see it to day dot not 0:04:00.960 --> 0:04:03.440 dot as we saw it yesterday. Your customer today is 0:04:03.600 --> 0:04:07.440 different today, They're they're thinking different, they have different pain points, 0:04:08.000 --> 0:04:10.440 and if we can react to that before anybody else. 0:04:10.720 --> 0:04:13.720 We went John, you know, we're gonna take a break 0:04:13.720 --> 0:04:16.040 in a moment, but we've got about forty five seconds here. 0:04:16.360 --> 0:04:19.039 You know what has changed about the consumer in the 0:04:19.120 --> 0:04:22.800 last year that you think really stays with us longer term? 0:04:22.839 --> 0:04:28.240 Oh my goodness, I mean, yeah, we're I mean, first 0:04:28.240 --> 0:04:31.560 of all, that we're everybody's at home, all right. Guess what? 0:04:31.800 --> 0:04:35.080 There is a boom in home products. I can tell 0:04:35.120 --> 0:04:39.239 you specifically after the break, but uh, there's a big 0:04:39.240 --> 0:04:41.600 boom in home products believing. All right, Well, we're going 0:04:41.640 --> 0:04:43.800 to continue the conversation. Sit tight for a second because 0:04:43.800 --> 0:04:45.200 I do have to do a little bit of news, 0:04:45.200 --> 0:04:47.520 but we're gonna come back with John Nottingham, he's co 0:04:47.600 --> 0:04:50.960 president at Nottinghamsburg on the phone from Cleveland. I also 0:04:51.000 --> 0:04:53.880 want to find out because they recently opened up a 0:04:53.920 --> 0:04:57.640 big innovation hub in Cleveland specifically, which is where he is. Uh, 0:04:57.640 --> 0:05:00.400 and they're doing an alliance with Ernstein young E Y 0:05:00.800 --> 0:05:02.480 and that is opening the spring. So we'll get into 0:05:02.520 --> 0:05:04.000 that in just a moment. I want to get right 0:05:04.040 --> 0:05:08.760 back to John Nottingham, co president of Nottingham Spurk. It 0:05:08.880 --> 0:05:12.120 is a family office. It specializes in innovation. John still 0:05:12.160 --> 0:05:14.600 with us on the phone from Cleveland, Ohio. It is 0:05:14.640 --> 0:05:16.880 really fascinating to read about kind of what you're doing, John, 0:05:16.920 --> 0:05:19.800 and I think, you know, we think about investing in 0:05:19.880 --> 0:05:22.720 so many different ways. You know, obviously directly through the market. 0:05:23.279 --> 0:05:25.440 You can go into a venture fund and angel fund, 0:05:25.440 --> 0:05:29.400 but you guys really are there, you know, in the 0:05:29.440 --> 0:05:33.200 thick of it, creating the innovation. How does it all work? 0:05:33.240 --> 0:05:35.160 How long does it take for you to create something 0:05:35.200 --> 0:05:39.359 that ultimately a P and G or you know another 0:05:39.400 --> 0:05:41.760 big company you know sees it and says, okay, we 0:05:41.800 --> 0:05:43.760 want to run with it. There's a product here for us. 0:05:44.000 --> 0:05:47.120 Um how does it work? Well, you know, it all 0:05:47.160 --> 0:05:49.360 starts with a customer. You know, you look at you 0:05:49.400 --> 0:05:52.040 look at the customer, and like we said, today's customers 0:05:52.360 --> 0:05:55.919 is thinking totally different than than than that customer was 0:05:55.960 --> 0:05:58.560 a year ago or six months ago, and you've got 0:05:58.560 --> 0:06:01.159 to sort of tap in. So we've and customers into 0:06:01.160 --> 0:06:04.520 our innovation hub, into our center. We have a focus group. 0:06:04.560 --> 0:06:07.240 We watched them through a two way mirror today and 0:06:07.320 --> 0:06:09.680 we say, what what is their pain points? What are 0:06:09.680 --> 0:06:12.599 they thinking about? What? What do they want? And then 0:06:12.720 --> 0:06:15.400 and then we have our engineers and designers watching them, 0:06:15.440 --> 0:06:18.240 what seeing the twiggle in their eyes, seeing their their 0:06:18.240 --> 0:06:21.360 body language. And then we run downstairs and we build it. 0:06:21.440 --> 0:06:23.640 We we you know, we design it, we build it, 0:06:23.680 --> 0:06:27.200 we put it together, we fast track it through a factory, 0:06:27.240 --> 0:06:29.800 and we get it in that customer's hands as quickly 0:06:29.839 --> 0:06:32.280 as possible. You've got to strike while that iron is 0:06:32.320 --> 0:06:34.440 hot and be the first one out there. I have 0:06:34.560 --> 0:06:38.200 to say. There's a listener who's hearing our conversation, said, 0:06:38.200 --> 0:06:40.880 you kind to ask him about polar Delight. Um, I 0:06:40.880 --> 0:06:44.720 mean this is another thing that you guys were involved in. Correct. Oh, yeah, 0:06:44.839 --> 0:06:48.760 so we've invented We've invented a new way to consume 0:06:48.920 --> 0:06:53.160 premium ice cream. Okay, it's not out there yet. We're 0:06:53.200 --> 0:06:56.000 working on it. We're fast tracking it, and it is 0:06:56.000 --> 0:06:58.440 going to change the way people think about ice cream, 0:06:58.800 --> 0:07:02.520 the same way that your egg and espresso change changed 0:07:02.560 --> 0:07:05.240 the way people think about coffee. Just think about it. 0:07:05.320 --> 0:07:08.600 Is this something we'll have in our homes potentially? Uh, 0:07:08.640 --> 0:07:12.640 you know, probably it's gonna it's gonna it's gonna go 0:07:12.680 --> 0:07:16.920 out for two convenience stores first. But it's a technology. 0:07:16.920 --> 0:07:20.880 It's a platform technology, and platform technologies you can just 0:07:20.960 --> 0:07:25.400 grow and grow and grow. It's fascinating. Another listeners saying, Okay, 0:07:25.480 --> 0:07:27.880 so are you guys manufacturing in the United States, Like, 0:07:27.880 --> 0:07:31.680 how do you kind of get your hands around some 0:07:31.840 --> 0:07:35.080 of the discussions we've had this year, whether it's supply chains, 0:07:35.480 --> 0:07:38.960 whether it's a thinking about kind of developing industries here 0:07:38.960 --> 0:07:41.240 and you guys are obviously working on a global scale, 0:07:41.280 --> 0:07:44.360 but uh the need for sustainability, the impact on climate, 0:07:44.400 --> 0:07:46.680 like how does that affect some of your innovation that 0:07:46.720 --> 0:07:48.480 you're doing. And obviously it sounds like, you know, you're 0:07:48.480 --> 0:07:51.640 looking at the consumer who now wants things like directly, 0:07:51.880 --> 0:07:54.840 maybe we want to cut out you know, e commerce 0:07:54.960 --> 0:07:57.920 just got kind of a kick in the pants over 0:07:57.920 --> 0:08:00.880 the last twelve months specifically, so how do you kind 0:08:00.880 --> 0:08:03.560 of work all of that in as well? Oh see 0:08:03.680 --> 0:08:06.560 that See that's what excites us. I mean, it's all 0:08:06.600 --> 0:08:10.920 about opportunity, right and so, uh so what we do is, 0:08:11.040 --> 0:08:13.560 you know, we have this partnership with Ernston Young and 0:08:13.600 --> 0:08:16.920 we we've we've we've labeled our hub the e Y 0:08:17.000 --> 0:08:20.520 and uh not Engams for innovation Hub. We bring a 0:08:20.640 --> 0:08:23.840 company in the top managers of the company in for 0:08:23.960 --> 0:08:28.720 an intense day or two session and they just lay 0:08:28.760 --> 0:08:31.120 out their issues, they lay out the products, and then 0:08:31.160 --> 0:08:32.880 we at the end of the day we have a 0:08:32.960 --> 0:08:37.480 game plan to address these issues. And part of it 0:08:37.520 --> 0:08:40.480 is factory for part no, it's automation. It's the next 0:08:40.520 --> 0:08:45.319 generation of manufacturing. We don't have to go offshore. We 0:08:45.360 --> 0:08:47.960 can do it here in the United States. It doesn't 0:08:48.040 --> 0:08:51.440 you know. And then sustainability. I look at it as 0:08:51.520 --> 0:08:55.520 an opportunity, not as a problem. It's a big opportunity. 0:08:55.600 --> 0:08:59.360 We have some technologies we're working right now that's going 0:08:59.440 --> 0:09:03.520 to to change landfills. You know, I think of these 0:09:03.559 --> 0:09:06.160 mountains of landfills for these products. You don't have to 0:09:06.160 --> 0:09:09.400 design products like that. You can design a circular product 0:09:09.440 --> 0:09:13.280 that that you can control from cradle to great circular. 0:09:13.400 --> 0:09:15.320 You know. That's something that I feel like. I've talked 0:09:15.360 --> 0:09:18.520 with the CEO of Unilever, I've talked with the folks 0:09:18.559 --> 0:09:22.760 at Patagonia, I've talked with to Put, lots of different companies. 0:09:23.120 --> 0:09:26.760 They are thinking about this in a big way. Well, 0:09:26.760 --> 0:09:29.800 we're not thinking about we're doing it. Are actually in 0:09:31.000 --> 0:09:34.400 we are, We're hands on. We have a prototyping facility 0:09:34.640 --> 0:09:37.000 better than anything I've seen in the world. So I 0:09:37.080 --> 0:09:40.400 am fast track it. So okay, So I'm thinking about 0:09:40.400 --> 0:09:43.719 our audience, smart investors. They're listening to this, So what 0:09:43.760 --> 0:09:45.600 are the things, what are the trends that they should 0:09:45.640 --> 0:09:47.959 be watching out for, specifically based on some of the 0:09:48.000 --> 0:09:49.199 work that you guys are doing. And I know, you 0:09:49.240 --> 0:09:51.960 can't tell us everything you've told us, which is really wonderful. 0:09:52.280 --> 0:09:54.840 But what are the what are the trends that maybe 0:09:54.880 --> 0:09:56.640 aren't getting a lot of attention that you think they 0:09:56.679 --> 0:09:58.400 have to be paying attention to. And they might be 0:09:58.480 --> 0:10:01.000 high tech, they might might be low tech, but will 0:10:01.000 --> 0:10:04.920 nonetheless be disruptive exactly. I mean you know low tech 0:10:05.000 --> 0:10:08.720 is fine. I mean it's whatever whatever can can factor 0:10:08.720 --> 0:10:11.880 in that pain point. For instance, I talked about home before. 0:10:12.440 --> 0:10:16.240 One of our companies is Jacuzzi. So you can imagine 0:10:16.360 --> 0:10:19.480 which can be better? Can I just say it can 0:10:19.559 --> 0:10:23.640 be better? Oh yeah, Well about to see if there's 0:10:23.640 --> 0:10:26.439 a pain a pain point, so all of a sudden, 0:10:26.640 --> 0:10:30.280 all right, So here's the opportunity. So people aren't going 0:10:30.280 --> 0:10:33.679 on vacation, but you can vacation in your backyard. So 0:10:33.760 --> 0:10:36.880 you look at hot tubs, which haven't been innovative since 0:10:36.920 --> 0:10:41.040 the Reagan administration? Am I right? Right exactly? And lots 0:10:41.080 --> 0:10:44.439 of pain points. I look at that as an opportunity 0:10:44.559 --> 0:10:47.400 to improve it, to make it better and make it 0:10:47.720 --> 0:10:50.920 what you what you believe you want to have. And 0:10:50.960 --> 0:10:52.880 that's what's going to happen. All right, don't judge me. 0:10:53.000 --> 0:10:55.240 This is going to maybe sound like kind of silly 0:10:55.280 --> 0:10:58.280 and quirky. But I have to say, um, working from home, 0:10:58.360 --> 0:11:01.080 being at home in our bubble, um, we don't have 0:11:01.200 --> 0:11:04.040 I live in a city environment, have a small backyard 0:11:04.120 --> 0:11:06.960 and actually got an inflatable hot time that actually was 0:11:07.000 --> 0:11:10.520 a really sweet thing for us to have. Um. So 0:11:10.600 --> 0:11:12.839 it's just it's certainly kind of some of the things 0:11:12.840 --> 0:11:15.160 that you're talking about. John, we have to run, please 0:11:15.200 --> 0:11:17.760 please come back. I love this kind of stuff. Have 0:11:17.880 --> 0:11:19.719 a safe weekend, a good weekend, and I hope we 0:11:19.760 --> 0:11:23.120 can talk real soon. Be well. John Nottingham he's co 0:11:23.240 --> 0:11:25.880 president of Nottinghamsburg on the phone from Cleveland. What a 0:11:25.880 --> 0:11:28.080 fun interview, Um, what a fun conversation.