For Melissa Kieling the idea was simple. She was tired of sending her kids to school with fresh fruit and yogurt for lunch, only to have them return with the fruit soggy and the yogurt warm, all uneaten. Frustration for sure, but it sparked the idea for PackIt LLC, her Westlake Village company that creates lunch bags that keep food cold for up to 10 hours. “It was one of those cliché moments that began in the kitchen,” said Kieling, 37. “I was forced to use processed foods from the pantry instead of the healthier foods from the fridge, because there wasn’t anything out there on the market that would keep healthy foods fresh through lunchtime.” Each bag is lined with a freezable gel that, when placed in the freezer overnight for 12 hours makes the walls of the bag freeze and allows it to keep food cold. The portable refrigerator will decrease room temperature food by 25 degrees when left in the bag for an hour. The company was founded just five years ago but already her bags are on the shelves of Wal-Mart, Target, Bed Bath & Beyond and other major retail stores nationwide. The bags, which are manufactured in China, range from $11.99 to $29.99, and include new lines for picnics, grocery shopping and wine. That kind of distribution has made the company one of the fastest growing in the Valley. It was No. 17 on the Business Journal’s list with 79 percent growth in revenue, which hit $11.9 million last year. PackIt faces competition from companies such as Skip Hop Inc., of New York, a large online retailer that makes an assortment of baby and children’s products, including insulated food and drink bags for toddlers, teen and adults. But Neil Stern, senior partner at McMillanDoolittle, a retail consulting firm in Chicago, said Kieling benefits from an ongoing need by retailers for new products. “Companies are hungry for hot and interesting product and are willing to take on smaller suppliers as a result,” he said. “There are still many challenges for a small supplier such as keeping up with demand, streamlining manufacturing and distribution, and of course, keeping up with change as inevitable copycats come along.” Infomercial break Kieling was a stay-at-home mom for 13 years and spent most of her time taking care of her two boys and daughter before she founded PackIt in 2009. She admitted not knowing much about business and having to do basic research to execute her idea. So she reached out to business consultants and networked with other entrepreneurs. “I think that one of the qualities that has helped me succeed is not being scared to ask the silly questions, not pretending that I know everything and being willing to ask for help,” she said. It was a struggle at first. Kieling attended tradeshows but found that distributors only appreciated the concept after she took time to explain it. With just a glance it didn’t seem that unique. Indeed, it was for that very reason that Target passed on the product during the company’s early stages in 2011. From there her challenge was clear: develop a marketing strategy that would attract distributors and drive sales. Kieling got her break that year when ECAP Capital, in New York, agreed to finance an infomercial in exchange for an equity stake. “(Kieling) had designed a product that was habit changing. This is a product that once people buy it they’re going to continue to use it and to recommend it. We looked at it and said this is great place to park our money, a good risk,” said ECAP Chief Executive Charles Broman. The two-minute spot ran on major national children’s networks such as Nickelodeon and Cartoon Network from 2011 to 2013. It brought in $6 million in sales the first year, a large increase from the $150,000 in revenue the company made in 2010. It also led to distribution deals with Target and the other retailers. “Within three months of launching our phones started ringing off the hook,” said Kieling. “We had the inventory and financial supporters and were able to react to the demand.” The boost in sales allowed Kieling to hire a chief operating officer and a product designer who were experts in the industry. Now the company is working to expand its target audience to young teens and adults.
