Hey Tiger was a confectionary company known for its ethical, handmade chocolate and commitment to social causes. Founded in 2017, it gained popularity for its high-quality products and philanthropic efforts. However, challenges in scaling production led to its closure in 2021, followed by a revival in 2022 with new partnerships.
What Was Hey Tiger?
Hey Tiger specialized in ethical, handmade chocolate, combining high-quality ingredients with a mission to support The Hunger Project by donating 2% of every block sold. Notable achievements include raising $500K, launching a Christmas Collection, and successfully relaunching the brand through a partnership with Soulfresh.
What Happened to Hey Tiger?
The story of Hey Tiger is a compelling tale of initial triumph followed by significant challenges and a remarkable comeback:
Initial Success and Popularity: Hey Tiger quickly gained a loyal following due to its high-quality, ethically sourced chocolate and vibrant social media presence. Their commitment to donating 2% of every block sold to The Hunger Project further endeared them to socially conscious consumers.
Challenges in Scaling Production: Despite their early success, the company faced significant hurdles in scaling their handmade chocolate production. The labor-intensive process proved unsustainable, leading to operational inefficiencies and increased costs.
Temporary Market Exit: The unsustainable nature of their production methods forced Hey Tiger to exit the market temporarily. This decision was driven by the need to reassess their business model and find a more viable path forward.
Strategic Partnership and Revival: In 2022, Hey Tiger made a comeback through a strategic partnership with Soulfresh. This collaboration allowed them to reintroduce popular products and launch new ones, such as the Soul Tiger, while maintaining their social mission.
Continued Social Impact: Hey Tiger's return has been well-received, with their products now available in independent supermarkets across Australia. Their ongoing support for The Hunger Project continues to make a positive impact, particularly in West Africa.
When Did Hey Tiger Shut Down?
Hey Tiger shut down operations before mid-2022 due to the unsustainability of hand-making chocolate on a large scale. This method proved unviable in the long term, leading to their temporary market exit.
Why Did Hey Tiger Shut Down?
Unsustainable Production Methods: Hand-making chocolate on a large scale proved unviable for Hey Tiger. The labor-intensive process led to operational inefficiencies and increased costs, making it difficult to sustain the business. This challenge was a significant factor in their decision to temporarily exit the market.
Sudden Market Exit: Hey Tiger had to leave the market abruptly, described as "smoke-bombed in a cloud of magic dust." This sudden departure indicates the urgency and severity of the issues they faced, leaving little time for a gradual transition or resolution.
Financial Strain: Although specific financial details are not provided, the non-viability of their production methods implies significant financial difficulties. The inability to scale production efficiently likely strained their resources, contributing to their temporary shutdown.
Operational Inefficiencies: The challenges of maintaining high-quality, handmade chocolate at scale led to operational inefficiencies. These inefficiencies not only increased costs but also hindered their ability to meet market demand, further complicating their business model.
Need for Strategic Partnership: The eventual partnership with Soulfresh highlights the necessity for external support to overcome their challenges. This collaboration was crucial for their revival, indicating that Hey Tiger could not sustain its operations independently.
Lessons Learned from Hey Tiger's Failure
Scalability Matters: Ensure your production methods can scale efficiently to meet growing demand without compromising quality or incurring unsustainable costs.
Operational Efficiency: Streamline operations to avoid inefficiencies that can lead to increased costs and hinder your ability to meet market demand.
Financial Planning: Maintain robust financial strategies to manage costs and resources effectively, especially when scaling production.
Adaptability: Be prepared to pivot your business model or seek strategic partnerships to overcome unforeseen challenges.
Market Readiness: Assess market readiness and ensure your business model is viable before scaling operations.
Strategic Partnerships: Collaborate with partners who can provide the necessary support and resources to sustain and grow your business.
Social Impact: While social missions are important, ensure they are integrated into a sustainable business model.
We Shut Down Startups
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