SPECIAL SUPPLEMENT: Bacon Trends + Technology - March 2023 - 15

themselves, but they agreed it would have been
more beneficial sooner.
" We should have paid ourselves from day one, "
he said. " Just for that psychological aspect that
'I am building myself into this and being realistic
that my work has a cost and value.' So many people
think, 'Oh, I'll pay myself later.' "
Lewis agreed that getting paid is part of the
psychological well-being of entrepreneurs that is
often overlooked.
BACON BUBBLE
Thanks to those sacrifices and more, the company
did grow and exposure on several national media
platforms fueled the momentum with 2021 being
one of its best years. Next, the stakeholders agreed
a crowdfunding campaign would catapult them to
the next level.
" We had what we thought was a really solid
plan in place and the milestones we were reaching
were really exciting to see, " Lewis said.
" Things were going really well. "
And then an economic downturn combined
with brutal market volatility in 2022 flipped the
script, seemingly overnight.
" Maybe not surprisingly, but the best time then
kind of smacked into a wall of the most challenging
time, " Velasquez said.
The company's product
line was wildly
popular at specialty
retailers where
customers supported
the line of boutique
bacon products.
About halfway into the launch of the crowdfunding
campaign, which was exceedingly successful
at that point, all the momentum The
Baconer had built was quickly thwarted by inflation
that peaked midyear, including rising transportation
and fuel costs, which was devastating
for a small food company shipping perishable
products through the cold chain. Also fueling
the market volatility was the possibility that the
California-based company could face a dire pork
shortage with Proposition 12 legislation looming.
Additionally, many of the larger contributors
that were planning to invest in the crowdfunding
campaign began paring back their investment
plans significantly.
It was that perfect storm of instability and
skyrocketing costs that ultimately caused The
Baconer's stakeholders to fold.
" A bigger company probably could have
weathered through it, " Velasquez said. " It was
going to push the three of us personally into very
uncomfortable financial territory. We looked at
it very clear eyed and very matter of factly and
decided among us that this was the time, " he
said. " It was like, 'OK, this has been a great run;
an incredible thrill but this is a storm we're not
willing to go through. "
The trio had many meetings to discuss strategic
options as business slumped and achieving
goals wasn't occurring any longer. They began
exploring options to deal with the downturn,
including considering venture capital investments.
" We just weren't up for that, " Lewis said of the
VC option. " It just didn't make sense for us. "
A handful of potential buyers expressed interest
in acquiring the brand but given the economic
and market volatility at the time, they were
unable to justify a deal at that time.
Other options, like taking out second mortgages
or borrowing money to stay afloat were
not viable options for the team either. Ultimately,
the option that made the most sense to consider
was broached.
" What if we close? That's an option, " Lewis
recalled discussing.
When the last of the potential suitors reluctantly
declined to make a deal, which was
approximately in September 2022, the team
agreed to close The Baconer.
" We looked at everything and left no stone
unturned, " Velasquez said, " and it was pretty
clear that it was time. "
By the time the decision was made, production
had already been cut considerably and
MEAT+POULTRY 2023 BACON TRENDS + TECHNOLOGY
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SPECIAL SUPPLEMENT: Bacon Trends + Technology - March 2023

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