On the latest episode of the Trending: Pet Food podcast, Sean Jones, director of sales, and Fred Klaas, vice president of strategy, at Glacial Freeze Dry joined host Lindsay Beaton, editor of Petfood Industry, to discuss the complexities of scaling a pet food business from startup to acquisition.
Jones and Klaas shared insights from growing Foodynamics from a single tabletop freeze-dryer to processing 30,000 pounds of raw materials monthly before its acquisition by Glacial Freeze Dry in 2025. The executives emphasized that successful scaling requires balancing strategic vision with practical execution while maintaining core values throughout growth phases.
Here are 10 takeaways from Episode 102: How can a company scale up its business?
1. Capacity constraints drive expansion decisions
Jones explained that Foodynamics reached capacity far quicker than anticipated after each expansion over a 10-year period. "We reached capacity way quicker than we anticipated," said Jones. "It's probably a horrible business strategy to have, but we were just trying to meet the demand that our customers put in front of us."
2. Capital partnerships require mission alignment
Finding the right funding partner took Foodynamics 12 to 18 months. "I sometimes don't want to admit how many groups we talked to that it was very clear from the early minutes of the conversations that the mission wasn't going to be aligned," said Jones, emphasizing the importance of finding partners who share core values rather than simply providing capital.
3. Strategic forecasting balances optimism with realism
Klaas highlighted the challenge of avoiding both overly aggressive and overly conservative forecasting. "Trying to strike the balance between where can you foresee going in the near future versus where do you need to go in six months, a year, five years, and trying to be realistic about that," said Klaas. Companies must balance visionary thinking with realistic projections.
4. Human capital matters as much as financial capital
Jones stressed the importance of surrounding yourself with talented people who share the company's passion and mission. "We just found people that had these phenomenal aptitudes and prior successes in their careers that shared our passion," said Jones. Foodynamics successfully recruited individuals from other industries who could adapt to the pet food sector.
5. Values transparency builds acquisition trust
Jones identified a pivotal moment during acquisition discussions when Glacial Freeze Dry asked if Foodynamics would compromise on sourcing and business practices. "They asked, would you be willing to compromise on how you source some of your products, some of the business practices that you've shared with us?" said Jones. "That would have basically killed the deal because they really wouldn't want us to be willing to compromise."
6. Supply chain realities extend beyond funding
Even with capital secured, Jones noted that equipment availability created significant challenges. "We were able to secure some business loans, but the availability of machines, that took nine months to have a custom machine built for us," said Jones, illustrating that financial resources alone don't guarantee rapid scaling.
7. Market segmentation requires realistic expectations
Jones warned against comparing products across different categories or price points. "You can't compare a baked treat with a freeze-dried treat, for example. It's a very, very different consumer," said Jones. Investors and acquiring companies sometimes expect premium products to compete with lower-priced alternatives, creating unrealistic growth projections.
8. Ideas require rigorous execution
Klaas emphasized that while generating ideas feels challenging, the real difficulty lies in tactical execution. "I think in a lot of ways, ideas are easy. Execution is really challenging and I think often oversimplified," said Klaas. Successful scaling requires implementing processes, hiring appropriately and maintaining food safety standards as production volume increases.
9. Mission-driven focus liberates decision-making
After 30 years of quarterly margin pressure in previous roles, Jones described the freedom of prioritizing mission over short-term financial targets. "I could tell you after 30 years, that is the most liberating and almost spiritually liberating feeling that you can have in a career," said Jones. This approach allows for more authentic strategic decision-making.
10. Understanding "why" precedes "how"
When asked what question to pose before scaling, Klaas immediately responded with understanding the "why" behind the decision. "Why are you doing this? Why do you think you're ready to scale? Why do you want to go to the next level?" said Klaas. Knowing what drives the desire to scale helps businesses prepare for the substantial time, money and sacrifice required for successful growth.
