This episode is brought to you by The Hidden Gems.

Hiring agencies is risky. Most overpromise and underdeliver. The Hidden Gems connects founders with highly vetted, brand-loved boutique agencies across media, creative, dev/design, events, and more — at preferred rates.

Free for Consumer VC listeners → https://thehiddengems.com/

Most founders won’t do this.

They’ll hold onto their first product… even when it’s clearly not working.

In this episode, Mike sits down with Michelle Razavi, Founder & CEO of Elavi, the fast-growing better-for-you snack brand known for its protein brownies and desserts.

Michelle shares how she went from working 16-hour days at Sephora and Equinox to building a breakout CPG brand, why her first product line failed, and how a bold pivot into a completely different category unlocked massive growth.

From protein bars → dessert spreads → protein brownies, this is a story of constant iteration, brutal decision-making, and understanding what consumers actually want.

The conversation also dives deep into retail strategy, why Costco can completely change a business overnight, and how to build a profitable CPG company in a market where “growth at all costs” no longer works.

You’ll learn:

✅ Why your first product is probably wrong

✅ When to kill a product (and why most founders don’t)

✅ How one retail partnership can change everything

✅ The real economics behind retail, margins, and cash flow

✅ Why profitability matters more than hype growth today

✅ How to use in-store demos to understand your customer

✅ Why simple packaging outperforms “good branding”

✅ The biggest mistakes founders make when fundraising

✅ How AI is becoming a real operator inside CPG companies

✅ Why building in public is now a competitive advantage

👉 If you’re building a consumer brand, this episode is a raw, honest look at what actually works.

Timestamps

00:00 Intro

01:00 Working 16-hour days before starting

03:00 The problem with protein snacks

05:00 Building products at home

07:00 Launching right before COVID

10:00 Losing in-person sampling overnight

14:00 Why the first product didn’t scale

18:00 Finding product-market fit with a new category

22:00 Killing the original product line

27:00 The “permissible indulgence” thesis

31:00 Launching protein brownies

35:00 Getting into Costco

39:00 How Costco changed the business

43:00 Retail strategy: profitability first

47:00 The dangers of bad retail deals

51:00 Channel strategy & cash flow realities

55:00 Cold outreach that actually worked

59:00 Why demos matter more than you think

01:03:00 Packaging that converts instantly

01:07:00 Fundraising mistakes founders make

01:11:00 Why chasing investors doesn’t work

01:15:00 Building a profitable vs hype-driven business

01:19:00 Founder-led brands and social media

01:23:00 Using AI as an operator

01:27:00 Burnout and founder resilience

01:32:00 Final lessons

📬 Subscribe for more founder stories & scaling insights:

👉 https://www.theconsumervc.com/

Follow Mike Gelb:

Twitter / IG / TikTok → @mikegelb / @consumervc

Why Killing Her First Product Saved This CPG Brand with Michelle Razavi

Consumer VC

Why Killing Her First Product Saved This CPG Brand with Michelle Razavi