WEBVTT - Baking Interest Rising Amid the Pandemic

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<v Speaker 1>As I wrap up the week, so excited to have

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<v Speaker 1>with me Karen Colburg, co CEO of King Arthur Baking Company.

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<v Speaker 1>She joins me on the phone from Norwich, Vermont. So, Karen,

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<v Speaker 1>I have to say, there are certain interviews where I think,

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<v Speaker 1>you know what, my kids are going to think, this

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<v Speaker 1>is pretty cool. This is an interview where my mother

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<v Speaker 1>in law is going to think I am the coolest

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<v Speaker 1>on the planet because she is one of your biggest customers.

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<v Speaker 1>Alice Game, I'm talking about in Walton, New York. You

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<v Speaker 1>have the must have product of the pandemic flower. We do,

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<v Speaker 1>and we're so we do. We feel very fortunate to

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<v Speaker 1>be making a the best baking flower out there and

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<v Speaker 1>to have been doing it for two thirty years. Yeah,

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<v Speaker 1>this is like two thirty years in the making. I

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<v Speaker 1>know it's been it was popular before this, but tell

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<v Speaker 1>me what it's been like over the past few months

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<v Speaker 1>as you have seen this and it's funny. Max Levchin,

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<v Speaker 1>my previous guest, who runs a big tech company, was

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<v Speaker 1>talking about nesting and and sort of the purchases that

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<v Speaker 1>people were making. I mean, clearly that's part of what

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<v Speaker 1>was going on here, is that people were trying to

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<v Speaker 1>make bread and all sorts of baked goods. But what

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<v Speaker 1>did it look like from where you sit? We saw

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<v Speaker 1>people and almost immediately I think it was it started

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<v Speaker 1>with we thought it was pantry loading, right, so everyone's

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<v Speaker 1>like everyone were sheltering in place. We need to get

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<v Speaker 1>to the grocery store and stock up, and that definitely happened,

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<v Speaker 1>and it was almost immediate. So also that we were

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<v Speaker 1>getting calls on our hotline orders for everything baking related

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<v Speaker 1>beyond Flower. We're seeing the kind of the spikes across

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<v Speaker 1>our businesses, and people were at home and they had

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<v Speaker 1>probably more time they typically had. And baking is such

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<v Speaker 1>a comfort. You know, you're you're getting your hands into something,

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<v Speaker 1>You're able to start a project, you can you know

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<v Speaker 1>you're something. It's whether you're doing it, whether your mother

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<v Speaker 1>in law's doing it for you or for her for

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<v Speaker 1>her where the you know, where people are home with

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<v Speaker 1>their kids and they need something to do. It's such

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<v Speaker 1>a um kind of a source of of comfort and joy.

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<v Speaker 1>And people really took to it and they it became

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<v Speaker 1>at least initially, you know, kind of something to do.

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<v Speaker 1>I referred to it as, you know, a national past time.

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<v Speaker 1>But it's because I think it's become a hobby and

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<v Speaker 1>we've really seen that in the amount of inquiries ongoing

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<v Speaker 1>that we continue to get. Um come through all of

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<v Speaker 1>our channels, however people choose to reach out to us. Yeah. Well,

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<v Speaker 1>and if my co host Carol Master were here, she's

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<v Speaker 1>very bummed and she's missing this interview, she would say,

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<v Speaker 1>we are blue Berg. So let's talk some numbers. If

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<v Speaker 1>I have this right, June increasing the number of pounds

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<v Speaker 1>of flowers sold compared to a year earlier, sold more

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<v Speaker 1>flower than any other month since July. Pounds of flower

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<v Speaker 1>what Yeah, yeah, exactly, Um, we are sales and then

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<v Speaker 1>and it's you know again, you kind of start at

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<v Speaker 1>the beginning and you don't know if this is going

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<v Speaker 1>to sustain who kind of probably saw triple the volume

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<v Speaker 1>in the beginning and we're continuing, um, even into June

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<v Speaker 1>to see this two to three times volume of of business.

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<v Speaker 1>And it's both again, like I said, people are we're

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<v Speaker 1>pantry loading. We were thinking in the beginning, and we

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<v Speaker 1>thought we'd see a leveling out and people have kept

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<v Speaker 1>baking and they've kept and they've kept buying. Which of

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<v Speaker 1>you know you were you're seeing in the numbers that

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<v Speaker 1>you're quoting, and we predict that that will continue definitely

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<v Speaker 1>through certainly through you know, kind of the next month

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<v Speaker 1>or so. Maybe there'll be a little lull. Summers typically

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<v Speaker 1>a much slower time of year for baking anyway, and

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<v Speaker 1>you know, we're really gearing up for the fall holiday

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<v Speaker 1>baking season where normally that's our you know, that's our butter,

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<v Speaker 1>so to speak. And we've we're gonna have you know,

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<v Speaker 1>we're producing two times are normal volumes so that we

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<v Speaker 1>can be ready for you know whatever whatever This sort

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<v Speaker 1>of first wave and second wave of the pandemic throwout

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<v Speaker 1>any supply chain issues. You know, there's you know, as

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<v Speaker 1>you can imagine, there's there's certainly there certainly were UM

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<v Speaker 1>and it's ongoing. I think there's probably two critical things

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<v Speaker 1>we had to do. We certainly had to focus on

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<v Speaker 1>our highest volume most of you know, kind of the

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<v Speaker 1>products that starting with all purpose flower that people were

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<v Speaker 1>looking for to bake UM, and that's not you know,

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<v Speaker 1>you never want to disappoint the whole weed baker or

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<v Speaker 1>whatever flower is. We're choosing to you know, let let

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<v Speaker 1>go out of stock before that one, but all of

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<v Speaker 1>them have had a you know, kind of our signature flowers.

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<v Speaker 1>We've been in and out of stock on UM as

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<v Speaker 1>we rebuilt the supply chain and so to that to

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<v Speaker 1>that point, we've added a lot of capacity. So uh,

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<v Speaker 1>we were able to kind of get with our partners

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<v Speaker 1>to get as much flowers we possibly could. And uh,

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<v Speaker 1>we also were able to add some partners who could

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<v Speaker 1>you know, kind of add new sizes of our all

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<v Speaker 1>purpose flowers. So again, so we can continue to get

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<v Speaker 1>that sort of number one product out there. And we're

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<v Speaker 1>you know, we're reaching a I think, uh, we're certainly

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<v Speaker 1>a new normal of production levels for us. But we're

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<v Speaker 1>going to hopefully be back in stock in a sustained

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<v Speaker 1>way towards probably another month. All Right, we're going to

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<v Speaker 1>keep going with this conversation just a few minutes. I

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<v Speaker 1>have a lot of questions to ask you about the

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<v Speaker 1>company and some of your background. You have a fascinating

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<v Speaker 1>resume leading up to this job. And also want to

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<v Speaker 1>understand this is a company that's a hundred percent employee owned,

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<v Speaker 1>as I understand it, so lots more to talk about

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<v Speaker 1>with Karen Coolberg over at King Arthur Baking Company. Let's

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<v Speaker 1>get back to our conversation with Karen Colberg, she's the

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<v Speaker 1>co CEO of King Arthur Baking Company. Still with me

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<v Speaker 1>on the phone from Norwich, Vermont. So, Karen, it feels like,

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<v Speaker 1>and you know, I'm sort of teeing you up for this.

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<v Speaker 1>You have sort of a special company there. I mean,

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<v Speaker 1>it's run a little bit differently than maybe what we're

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<v Speaker 1>used to tell me a little bit about it. So

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<v Speaker 1>we're a hundred percent employee owned and have been for

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<v Speaker 1>over twenty years. Uh. We are a founding b corporation,

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<v Speaker 1>you know, benefit corporation, which means we you know, we

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<v Speaker 1>are bound and committed to taking to you a multi

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<v Speaker 1>stakeholder approach to managing the business in all decision making. UM.

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<v Speaker 1>And as you noted when you introduced me, that we

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<v Speaker 1>have a co CEO structure at the top, which in

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<v Speaker 1>and of it in and of itself, as always is

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<v Speaker 1>always interesting to folks. UM. But you know, it really

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<v Speaker 1>starts with employee ownership and how everyone kind of shows

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<v Speaker 1>up as owners and it's a real special part of

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<v Speaker 1>of our culture and it's a kind of a defining

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<v Speaker 1>part of who of who we are. So how did

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<v Speaker 1>you come to the company, because you are not a

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<v Speaker 1>lifer there at Ting Arthur. You've got a fascinating background.

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<v Speaker 1>You worked at GE, you worked at GAP, I believe.

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<v Speaker 1>So what's what's the brief story of Karen Colberg getting

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<v Speaker 1>to this job. The brief story is I've always loved baking.

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<v Speaker 1>My connection to this area where we are is a

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<v Speaker 1>is graduate school. And uh, you know the short story,

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<v Speaker 1>once I finally kind of make talk, went to talk,

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<v Speaker 1>I went to talk, and um, moved to San Francisco,

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<v Speaker 1>work to the Gap, loved it, Um, you know, finally

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<v Speaker 1>decided to get married and have a family and decided

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<v Speaker 1>to make a life change and loaded up the four

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<v Speaker 1>f one fifty and drove across the country and King

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<v Speaker 1>Arthur King Arthur Baking Company now King Arthur Flower. Then

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<v Speaker 1>it really was the only place I wanted to work.

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<v Speaker 1>And it took a few years to end up here. Um,

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<v Speaker 1>but I, you know, kind of I made my way

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<v Speaker 1>here and it's you know, kind of as I say,

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<v Speaker 1>when I talked to the company about it, it just

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<v Speaker 1>felt like coming home because you know, baking has always

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<v Speaker 1>been something I've been passionate about. UM. And it's like

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<v Speaker 1>I sit here chatting with you today, but you know,

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<v Speaker 1>there's three seventy employee owners that really make this place

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<v Speaker 1>as special as it is. So I'm I'm just proud

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<v Speaker 1>to be part of that of that group. And so

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<v Speaker 1>tell me about the people who who work there, because

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<v Speaker 1>you know, as as you sort of allude to, you know, Norwich, Vermont,

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<v Speaker 1>it is not This is no insult anyway. It's not

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<v Speaker 1>a bustling metropolis. It's not New York City, it's not

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<v Speaker 1>San Francisco where you live before. So it does take

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<v Speaker 1>a certain sort of commitment to the mission, and the

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<v Speaker 1>mission clearly is a big part of what you're doing.

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<v Speaker 1>So so tell me about those other employee owners. So

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<v Speaker 1>you know, our mission is basically building community through baking

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<v Speaker 1>and hopefully you know, leaving the world a better place

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<v Speaker 1>because through that and people that come to work here.

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<v Speaker 1>And traditionally pre COVID it was kind of sometimes hard

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<v Speaker 1>to recruit folks, right, and we're we're in nestled up

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<v Speaker 1>in northern New England and it's not where you know,

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<v Speaker 1>they're just not It isn't not bustling metropolis. Um, but

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<v Speaker 1>people certainly like the community and where we live and

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<v Speaker 1>the outdoors and all those pieces. But now in you know,

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<v Speaker 1>the world where we were all remote, and it's it's

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<v Speaker 1>much easier to imagine, you know, being remote. I think

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<v Speaker 1>we I think a lot of us, you know, King

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<v Speaker 1>Arthur and outside of King Arthur, you always thought you

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<v Speaker 1>needed to be on site and the job needed to

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<v Speaker 1>be there. That Um, I think that recruiting piece will

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<v Speaker 1>look real, will look really different as we as we

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<v Speaker 1>look forward, which is exciting, But it still takes the

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<v Speaker 1>special person and the values alignment that people kind of

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<v Speaker 1>show up here because I think of who we are

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<v Speaker 1>as a company and what we're trying to do out

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<v Speaker 1>there in the world, and how we treat our employees. Um,

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<v Speaker 1>and we kind of collectively all believe in that and

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<v Speaker 1>trying to you know, like I said, live our values everything,

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<v Speaker 1>and it's you know, that's in it's you know, and

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<v Speaker 1>I think any you probably talked to lots of business

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<v Speaker 1>leaders all day long, and I think many companies out

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<v Speaker 1>there probably have similar values and strive and strive to

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<v Speaker 1>live them as well. UM. But for us, just you know,

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<v Speaker 1>like we always say, let's just just do the right

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<v Speaker 1>thing and most things are going to work out well.

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<v Speaker 1>I dare say pun intended obviously, it's it feels like

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<v Speaker 1>it's did here UM. And also this notion that in

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<v Speaker 1>many ways, not just the the product, but you know,

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<v Speaker 1>the whole notion of a b corporation. I feel like

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<v Speaker 1>people are looking at that more seriously. I mean, what

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<v Speaker 1>does it feel like, amot, We're on both the product

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<v Speaker 1>side and the cultural side that the world has sort

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<v Speaker 1>of come to you it. It feels, it feels great,

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<v Speaker 1>it feels natural. UM. I think that people are both

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<v Speaker 1>you kind of looking to us for what we do

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<v Speaker 1>from a you know, kind of from a baking standpoint,

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<v Speaker 1>and it certainly shined a light on on the company.

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<v Speaker 1>And as we've as we were chatting or you've you've referenced,

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<v Speaker 1>I appreciate it. You know, King we became King Arthur

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<v Speaker 1>Baking Company this week, UM, which was a you know,

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<v Speaker 1>long transition in the in the making, UM. And it's

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<v Speaker 1>given us just a nice opportunity to really to both

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<v Speaker 1>talk about what it is we're doing in showcase what

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<v Speaker 1>it is we're doing, because it's always about UM our

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<v Speaker 1>actions behind you know, the words that are out there,

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<v Speaker 1>and so the heightened attention over the past three months

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<v Speaker 1>has really given us an opportunity to really to talk

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<v Speaker 1>about who we are talking about why we're in business

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<v Speaker 1>and how we do business to your point, um, and

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<v Speaker 1>it's all you know, baking is this platform for us

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<v Speaker 1>to to do all the things that we're that we're

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<v Speaker 1>trying to do. So tell me briefly, why make the change?

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<v Speaker 1>I mean that is especially for a brand that's been

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<v Speaker 1>around for as long as that, it feels subtle but

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<v Speaker 1>meaningful in many ways. Is that just a sign of

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<v Speaker 1>greater ambition or is it sort of the branding catching

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<v Speaker 1>up with what you had already become. I'm gonna say both,

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<v Speaker 1>and I you know, somebody think about it like it's

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<v Speaker 1>a word, right, we want King Arthur Flower Company, King

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<v Speaker 1>Arthur Baking Company. But it's so powerful because we have

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<v Speaker 1>always been a company of bakers. The company kind of

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<v Speaker 1>relocated from Boston to Norwich, Vermont about thirty years ago,

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<v Speaker 1>and it was at that time where we said we

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<v Speaker 1>have flower as our foundation. It's what that's what we do,

0:11:55.559 --> 0:11:58.360
<v Speaker 1>that's what enables baking. But we're here to teach people

0:11:58.400 --> 0:12:00.320
<v Speaker 1>to bake, We're here to inspire people to ache, and

0:12:00.320 --> 0:12:02.720
<v Speaker 1>we're just kind of there to be your friend in

0:12:02.760 --> 0:12:09.560
<v Speaker 1>the kitchen and help you and doing getting baking into

0:12:09.600 --> 0:12:13.160
<v Speaker 1>our name. Um, it just really it does exactly say

0:12:13.160 --> 0:12:16.160
<v Speaker 1>who we are and who we've been. And absolutely there's

0:12:16.200 --> 0:12:19.240
<v Speaker 1>you know, we've all along, we've got already got hundreds

0:12:19.280 --> 0:12:22.440
<v Speaker 1>of products and thousands of recipes and inspiration online, but

0:12:22.520 --> 0:12:25.319
<v Speaker 1>lots of new products coming out as well that again

0:12:25.440 --> 0:12:28.760
<v Speaker 1>speak to all kinds of baking, not just conventional wheat

0:12:28.760 --> 0:12:32.120
<v Speaker 1>flower baking. Um so even though we've always done it,

0:12:32.120 --> 0:12:35.440
<v Speaker 1>it's it's very freeing, and it's it says we're here

0:12:35.720 --> 0:12:38.840
<v Speaker 1>and we are going to be doing exactly what we've

0:12:38.880 --> 0:12:42.960
<v Speaker 1>been doing it and much more impactful, intentional, and it's

0:12:43.000 --> 0:12:46.559
<v Speaker 1>and there's never that ambiguity of weight. Flower wait your flower,

0:12:47.000 --> 0:12:49.280
<v Speaker 1>we're you know, we're baking company and flower is you know?

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<v Speaker 1>Is that at the heart of it all? All right, well,

0:12:51.960 --> 0:12:54.080
<v Speaker 1>I really enjoyed catching up with you. Thank you so much.

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<v Speaker 1>Karen Coldburg, co chief executive Officer of King Arthur Baking Company,

0:12:58.960 --> 0:13:01.640
<v Speaker 1>joining me on the phone from Norwich, Vermont