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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Our View: Three elections that matter right now ... The Concord launches ... Mail Tribune 100: Oct. 20, 1915 ... Our View: Three elections that matter right now ... The Concord launches ... Mail Tribune 100: Oct. 20, 1915 ... LOCAL BUSINESS Medford broth maker mulls expansion Following an infusion from investors, it's decision time for Bare Bones Broth Co. Comment By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Aug. 11, 2015 at 5:00 PM Updated Aug 11, 2015 at 5:43 PM By Greg Stiles Mail Tribune Posted Aug. 11, 2015 at 5:00 PM Updated Aug 11, 2015 at 5:43 PM » Social News Recently given a hefty financial infusion, Bare Bones Broth Co. is mulling over its options on how to ramp up production later this year. The health-food startup that relocated to Medford from San Diego earlier this year received seed-round investment from a group of private investors, including NYX Cosmetics founder Toni Ko's Butter Ventures fund. The broth, made from the bones, joints and feet from pastured animals, is presently manufactured on Riverside Avenue, but in order to significantly increase output, production will have to be done elsewhere. The decision faced by Bare Bones founders Ryan Harvey, Katherine Harvey and Mark Patterson is where and how the expanded production will take place. "In the food industry, you're either a million-dollar company or a $10 million company; there are not a lot of companies in between," Katherine Harvey said. "You're either selling to an entire chain or in very small regional markets. If you make the leap to supply Costco, Albertsons or Fred Meyer, that turns you into a $10 million company, but you have to have the means to fulfill the orders." Bare Bones Broth's new minority-stake partners include San Francisco-based Westlake International Group, whose diverse portfolio includes Pressed Juicery and Frontier Snacks; SimplePitch Ventures, which has also backed Pressed Juicery, Crunchies Food Co. and Eastman Egg Co.; Hanson Li, founder of Salt Partners Group, whose current portfolio includes several Bay Area restaurants and Humphry Slocombe Ice Cream; Finn Capital Partners, which has stakes in healthful-snack companies Mamma Chia, Barnana and Wilde Snacks. While not divulging the full investment amount, Katherine Harvey said the funding was "over six figures." "The great thing about this group is that they're standing ready to supply further financing, whether it's in the form of a loan or another round of funding. It gives us the ability to generate more sales and refine our marketing strategy," she said. The Harveys are weighing their options on whether to upgrade their manufacturing facilities here, sign a co-packer — a company that manufactures and packages products for clients — or build their own manufacturing site. They are leaning toward going with a co-packer, but even that route has challenges. USDA regulations require certification to handle raw meat, roast bones and simmer the roasted bones. The couple visited three plants in California this month, finding each could handle part, but not all, of the entire process. "We've had a lot of trouble finding a co-packer," Katherine Harvey said. "There are very specific requirements for what we do, and there are very, very few manufacturers with those qualifications." To this point Bare Bones Broth has been sold via the Internet. The strongest markets remain in trend-conscience Southern California and San Francisco. "The manufacturing location is really not important," she said. "We would love to stay on the West Coast, because that makes distribution easy to our best markets. But we've even talked to people in Ohio. We're considering all of our options and haven't closed any doors yet." Still, time is of the essence. Katherine Harvey, a former San Diego Union-Tribune reporter, has a cookbook scheduled to come out in January, "The Bare Bones Broth Cookbook," published by HarperWave, an imprint of HarperCollins. "We'd really like to tell people here's what you can do and you can find our product at New Seasons or wherever," she said. "We'll take the route that gets us there fastest." Since its November 2013 launch, the company has learned to flex with customer desires. "Customer opinions matter, and we're engaging with them, shaping the business for those people," Katherine Harvey said. One example involves the original packaging, which was modeled after a competitor's container. "It was a flat, solid container that was sealed," she said. "For a liquefied product, it didn't make sense. We quickly realized there had to be better options." Wherever the production takes place, it will likely mean buying equipment. Going with a contract manufacturer, Bare Bones would provide recipes, supply chain details and testing. "It's a matter of running the numbers on purchasing the equipment ourselves and see how it compares with paying someone else," Harvey said. "We would love to be able to transition into our own large facility. It's a matter of being able to justify it." Reach reporter Greg Stiles at 541-776-4463 or [email protected] . Follow him on Twitter at www.twitter.com/GregMTBusiness , on Facebook at https://www.facebook.com/greg.stiles.31 , and read his blog at www.mailtribune.com/EconomicEdge . By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Aug. 11, 2015 at 5:00 PM Updated Aug 11, 2015 at 5:43 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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