For Subscribers

Why This Company Decided Not to Hide its Biggest 'Weakness' Sometimes a startup's perceived weakness is really its biggest asset.

By Jason Plautz

This story appears in the July 2016 issue of Entrepreneur. Subscribe »

Exo

Most protein bars have an image on their wrapper. Gatorade, PowerBar and Nature Valley show the food itself, often coated in chocolate. Clif Bar shows a rock climber. But Exo's packaging is minimalist, with no image. That's because its founders feared drawing too much attention to its special ingredient: crickets.

It's not as if Exo hides anything -- "cricket powder" is on the package, though in a smaller font than "protein bar." But when it launched last year as part of a boomlet of cricket-selling startups, nobody knew what Americans would swallow. So Exo was understated. Then paleo diet and CrossFit enthusiasts embraced crickets, Exo netted $4 million in Series A financing and Exo became a leader in this burgeoning industry.

Now Exo thinks it's time for a new strategy: Flaunt those bugs. "It's what makes us stand out," says cofounder Greg Sewitz. "It's what makes retailers knock on our door instead of the other way around."

But how? That's the intriguing branding question it now wrestles with. It's considering putting a cricket image on its retail boxes, rethinking how it markets the benefits of cricket protein and may start experimenting with cricket flour in a variety of foods -- baked goods, shakes and even pizza dough. "We've proven it could be a huge market if done properly," Sewitz says. "We've battled [naysayers] over whether this is a health food fad, but this goes a long way to solidifying our argument."

Jason Plautz

Entrepreneur Contributor

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Starting a Business

The Hardest Parts of Being a Solopreneur (and How I've Learned to Handle Them)

Solopreneurship is on the rise, offering us freedom and independence — but lasting success depends on tackling its unique challenges with strategy.

Business News

Anthropic Is Now One of the Most Valuable Startups of All Time: 'Exponential Growth'

In a new funding round earlier this week, AI startup Anthropic raised $13 billion at a $183 billion valuation.

Science & Technology

How AI Is Turning High School Students Into the Next Generation of Entrepreneurs

As AI reshapes education, students are turning school problems into products and building the future economy.

Leadership

My Business Hit $1 Million — Then a $46,000 Mistake Exposed the Biggest Bottleneck to Explosive Growth

How a costly mistake forced me to confront the real barrier to scaling and the changes that unlocked explosive growth beyond $1 million.