Business profile for Food & Industry magazine
FOOD & DRINK QUARTERLY MAGINE
Sambazon
Ryan and Ed’s Excellent Adventure: Treasure of the Amazon
When surfing enthusiasts Ryan Black and Ed Nichols traveled to South
America, they were only looking to ride some waves. However, they
stumbled upon a discovery that significantly impacted their lives, as well as
the lives of thousands of Brazilian natives. The agent of change was a very
small berry with powerful properties, reveals Dan Harvey
The Sambazon story resonates with plot elements from early 20 th century
imaginative tales – particularly those found in novels penned by Jules Verne,
Edgar Rice Burroughs or Arthur Conan Doyle (like “The Lost World”), or
even in classic Hollywood movies such as “King Kong.”
Such works thrilled reading and viewing audiences with chronicled exploits
of intrepid travelers who venture into remote regions unknown, where exotic
flora and anachronistic fauna (i.e., evolutionary throwbacks or an unlikely
10-story-tall gorilla) flourish in unbridled abundance. Almost invariably,
these expedition leaders uncover one of nature’s most closely guarded
secrets and transport it back to their home country.
Sambazon’s story unfolds in similar, but certainly less fanciful, fashion: In
1999, two adventurous surfers from California—Ryan Black and Ed
Nichols—traveled to South America to celebrate the new millennium by
catching some waves off the coast of Brazil. During the trip, local surfers
introduced the duo to something called acai (pronounced ah-sigh-ee), a
highly nutritious fruit virtually unknown beyond its region despite its
remarkable properties. “They took us to an acai juice bar,” recalls Black,
Sambazon’s chief executive officer, “where it was served to me with
bananas and granola, sort of like a smoothie in a bowl. It not only tasted
good but it soon made my body feel fantastic.”
One can well imagine how “golden age” Hollywood directors might portray
the incident onscreen: They’d probably soundtrack the scene with pounding
bongo drums and ritualistic chanting as Black slowly raises that bowl to his
lips.
“I ate it every day and quickly became addicted. I knew I had to bring it to
America,” Black continues.
His newfound mission then took him into the Amazon region where acai is
harvested. “Acai is a palm berry that grows atop 50-foot-tall palm trees
located in the Amazon River basin in the lush rain forests of Brazil. For
centuries, only the local population ate it. But in the 1990s, consumption
expanded to the rest of the country,” he relates.
During that decade, Brazilians began mixing acai with guarana, a natural
stimulant. Subsequently, this potent blend became a daily ritual for local
surfers. Black’s intent when he embarked into the fertile harvesting region
was to find an acai supplier. He and Nichols came back with an exclusive
distribution contract with the main acai processing factories in Brazil. They
were now prepared to share their “discovery.”
A Nutrient-rich “Super Food”
At this point, the Sambazon scenario radically departs from the more
fanciful and famous fictions. Typically, in such argosies of adventure, the
explorer who brings his discovery back to “civilization” unintentionally
unleashes unbridled death and destruction (think of the brontosaurus’s
rampage through the streets of London in Conan Doyle’s “The Lost World”
or, more famously, King Kong’s titanic tantrum that leveled parts of New
York City). But in the Sambazon scenario, Black introduced America to a
force of nature that was completely benign and considerably beneficial. As
he explains, acai is a fruit that is 95-percent solid seed with a thin layer
comprised of healthy omega fats, proteins, phytosterols and fiber. Further,
its skin (similar in texture to a grape’s covering) is one of the world’s richest
sources of life-enhancing antioxidants.
As such, acai is one of the most potent examples of the so-called “super
foods.” Obviously, long-term acai consumption exerts a powerful impact.
However, according to Black (a true initiate of organic esoterica) acai also
has some interesting short-term effects that make it highly attractive to
athletes as well as people who integrate intense exercise regimens into their
daily lifestyle. “Acai provides a sustained energy boost unlike anything
you’d receive from popular energy drinks, or from sugar and caffeine,” he
reveals. “Such substances typically provide a fleeting energy boost soon
followed by an energy crash. But acai’s boost extends for several hours,
which is ideal for prolonged physical activities such as sports competition or
workouts. That’s why it is becoming so popular with athletes. In addition,
people can eat it for lunch at work, and they won’t experience a midafternoon energy crash while sitting at their desks.”
Black explains that acai’s effects are enhanced when combined with
guarana, a plant that’s also found in the Amazon floodplain. Guarana, he
informs, is comprised of four natural stimulants: theobromine and
theophylene, which are euphoriants typically found in chocolate; and
saponins, a revitalizing substance found in ginseng, and pure caffeine. “Most
of the products we sell are actually a fusion of acai and guarana, which is the
mix I was exposed to in Brazil,” he says.
Black adds that the fusion results in a natural “magic” that is both physically
and mentally invigorating. “The stimulants found in guarana are fat soluble,
meaning that their activation requires a fatty substance. Acai, which is high
in omega fats, combines with guarana to create a synergy of physical and
mental energies.”
Beneficent Business Model
Sambazon’s story also departs from fictional narratives in another important
respect. Imaginary adventurers like Carl Denham, who steered his own
expedition toward Skull Island (homeland of the great ape Kong), carried
out their personal ventures with a hubristic and imperialistic mindset. In
other words, they were rapacious exploiters of environments and indigenous
populations. Indeed, Denham seemed disturbingly unconcerned about how
his provocations led Kong to destroy a long-standing native community.
Moreover, he appeared blithely unaware about how the uprooting of a
massive life form such as Kong might impact the glorious biodiversity—
those beautiful dinosaurs!—of Skull Island.
That wasn’t the case with Black, who immediately perceived how his
venture could positively impact the local population and environment. He
developed his business along those lines. “While in the Amazon region, the
more we learned about acai, the more we realized its social significance,” he
recalls. “This potent little berry could provide employment for thousands of
people in a sustainable business venture, and it could sustain the biodiversity
of the rainforest environment.”
Specifically, as acai is 95-percent seed, it has a very small yield. As such,
harvesting of the berry is a prodigious effort. Also, as the berries grow atop
50-foot-tall trees (as tall as Kong himself), their picking requires skilled
local labor. “For acai to become mainstream, you’d need to employ an
enormous number of people in what is essentially a sustainable activity that
would provide them with a livelihood,” says Black. And he set out to
establish a business model that would achieve that aim.
Remember the scene where Carl Denham stood next to the unconscious
Kong, who was felled by gas bombs? “We’re millionaires, boys!” he
exclaimed. “I’ll share it with you all!” Did you ever truly believe his
exuberant proclamation? Conversely, Black was quite sincere about
fostering the mutually beneficial opportunities that acai presented. “This
little fruit is not only a healthy food item, but it represents a positive force
for job creation. Also, its harvesting has a built-in protection for the rain
forest biodiversity. That is what we set out to achieve with our business
model, and that is what our brand now represents,” he says.
That business model is based on what Black calls the “Triple Bottom Line”
concept, which encompasses economic, social and environmental success.
Adhering to this concept, Sambazon advanced a novel Fair Trade and
Certified Organic supply chain that now financially enriches thousands of
regional families, driving economic growth while protecting the Amazonian
biodiversity through a sustainable agricultural activity. In developing the
Fair Trade arrangement, Sambazon worked with the world’s leading
conservation organizations including the World Wildlife Fund and The
Nature Conservancy. Moreover, the business model has garnered the
company significant accolades: Sambazon has been awarded the 2006
Secretary of State Award for Corporate Excellence by the United States
Department of State and the 2006 Socially Responsible Business Award and
the Changemaker Innovation award for sustainable agro-forestry from the
Ashoka Organization, which recognizes market-based strategies that benefit
low-income communities.
“We’ve not only set out to produce successful health products, but we also
focused on social justice, environmental protection and positive change,”
says Black, without a trace of the irony that you might perceive in Carl
Denham’s superior smirk.
Indeed, Black and Nichols set up Sambazon as a business that would not
only realize a profit but would contribute to the common good.
Hitting the Streets In America
Following their discovery, it didn’t take long for Black and Nichols to
establish their business. By early 2000, the partners had established
Sambazon as the first company to import certified organic acai into the
United States.
From there, they targeted natural juice bars and health food stores as their
initial retail outlets. “Essentially we began our sales efforts by hitting the
streets and going door-to-door to get the company started,” recalls Black.
“We focused on independent juice bars, as the major juice-bar chains didn’t
jump on this right away.”
The first chain to embrace the product was the Juice it Up!, which now
offers an acai smoothie and acai bowl (which includes granola and bananas
– a flashback to Black’s consciousness-expanding experience in Brazil).
“As we continued evolving, we went into natural food stores, which can sell
our products to people who want to consume acai everyday without having
to go to a juice bar,” relates Black. “Now, we’ve entered the mainstream
grocery market, providing product to major chains.”
Depending on what part of the country you live in, you can find Sambazon
products stocked at health-food outlets such as Whole Foods, Wild Oats,
Vitamin Shoppe and GNC. Sambazon also sells acai in bulk to international
manufacturers located in Japan, Germany, Brazil, the United Kingdom,
Norway, the Netherlands, Canada and Mexico. But its branded products are
only sold in North America and Brazil. In only a short time, the company
became the global leader in acai food products, wholesale pulp, and acaibased supplements.
The product portfolio includes organic smoothies, frozen smoothie packs,
ready-to-blend concentrates, bottled beverages, tablets and powders. Black
reports that all products are made in the company’s proprietary
manufacturing plant located in the Amazon region.
As the company moves forward, it seeks to gain even greater distribution for
its products. Sambazon is well positioned to accomplish that ambition, as the
market is as intrinsically fertile as the Amazon basin where it obtains its
products’ core element. More people are becoming aware about the benefits
of organic food, and Sambazon offers the goods with a small berry that
offers Kong-sized health benefits.