Entering a new international market can be a daunting challenge for any business. But for Milky Mama Canada, a strategic licensing approach turned this challenge into a resounding success story. This article explores how Milky Mama, a renowned lactation support brand from the United States, successfully expanded into Canada through an innovative licensing deal, achieving an impressive $250,000 in sales within just three months of launch.
The Origins of Milky Mama
Founded in 2015 by Crystal Duhaney, a registered nurse and International Board Certified Lactation Consultant (IBCLC), Milky Mama quickly became a trusted name in lactation support products in the United States. The company's mission was to provide effective, natural solutions to help breastfeeding mothers increase their milk supply.
Milky Mama's product line includes lactation cookies, brownies, and emergency brownies, as well as herbal supplements and teas. These products are formulated with galactagogues – ingredients known to promote lactation – such as fenugreek, blessed thistle, and brewer's yeast.
Recognizing the Canadian Opportunity
The journey of Milky Mama to Canada began with Uri Weinberger, a digital marketing expert who had been working with Milky Mama USA since 2017. Through his work, Uri noticed a significant number of inquiries and interest from Canadian customers. However, these potential customers faced several obstacles:
- High international shipping costs from the US to Canada
- Long delivery times, sometimes resulting in product expiration
- Lack of localized customer support
- Unfavorable currency exchange rates
These challenges presented a clear opportunity for a Canada-based operation that could better serve the local market. Uri saw the potential to bring Milky Mama's trusted products to Canadian mothers while overcoming these barriers.
Bringing Milky Mama to Canada was not a simple task. It involved a complex licensing process that took approximately 18 months to finalize. This process included several key steps:
1. Exploring Business Models
The team considered various options for entering the Canadian market:
- Creating a spin-off brand
- Establishing a traditional licensing deal
- Setting up a royalty agreement
After careful consideration and consultation with legal experts, they decided that a licensing agreement would be the most beneficial approach for both parties.
2. Negotiating the Deal
Negotiations between Uri Weinberger and Crystal Duhaney, the founder of Milky Mama, were crucial. Key points of discussion included:
- Territory rights (exclusive rights for Canada)
- Royalty rates
- Use of trademarks and intellectual property
- Quality control measures
- Duration of the agreement
The process required patience, clear communication, and a shared vision for the brand's growth in Canada.
3. Localizing the Product
Adapting Milky Mama's products for the Canadian market involved several steps:
- Finding Canadian manufacturers capable of producing cookies and brownies to the same specifications as the US products
- Adapting packaging to meet Canadian bilingual requirements (English and French)
- Obtaining necessary licenses from Health Canada for supplement products
- Ensuring compliance with Canadian food safety regulations
This process involved close collaboration with Canadian food scientists and regulatory experts to ensure all products met local standards while maintaining the quality Milky Mama customers expect.
4. Pricing and Currency Considerations
The team had to develop a pricing strategy that accounted for:
- The Canadian dollar's value relative to the US dollar
- Local production costs
- Competitive pricing in the Canadian market
- Maintaining healthy profit margins
They implemented a dynamic pricing model that could adjust to currency fluctuations while remaining competitive.
Advantages of Licensing vs. Starting from Scratch
Opting for a licensing deal provided Milky Mama Canada with several significant advantages:
Established Brand Equity: Milky Mama already had a strong reputation in the US, which helped build trust with Canadian consumers from day one.
Proven Product Formulas: Access to Milky Mama's successful product recipes and formulations saved time and resources in product development.
Marketing Assets: The ability to leverage existing marketing materials, product photos, and user-generated content accelerated the launch process.
Operational Support: Ongoing assistance from the US team for product and business queries ensured a smooth operation.
Reduced Risk: By leveraging a proven business model, Milky Mama Canada minimized the risks associated with launching a new brand.
Launch Strategy: From Pre-Launch to $250K in 10 Weeks
Milky Mama Canada's launch strategy was meticulously planned and executed, resulting in an impressive $250,000 in sales within the first ten weeks. Here's a detailed breakdown of their approach:
Pre-Launch Phase (10 months)
List Building:
- Utilized Facebook lead ads and website pop-ups
- Collected over 3,500 leads at an average cost of $0.30 per lead
- Implemented a referral program to encourage viral sharing
Community Building:
- Promoted the Milky Mama Facebook support group
- Encouraged sign-ups for the loyalty program
- Hosted virtual events and Q&A sessions with lactation experts
Product Interest Gauging:
- Implemented a "pre-order" sign-up system to assess demand for different products
- Used this data to inform inventory decisions
- Conducted surveys to understand Canadian mothers' specific needs
Influencer Partnerships:
- Identified and partnered with Canadian mommy bloggers and Instagram influencers
- Provided product samples for reviews and giveaways
Content Creation:
- Developed a series of blog posts on breastfeeding tips and challenges
- Created a Canadian-specific FAQ section on the website
- Produced video testimonials from early product testers
Launch Weekend
Special Offers:
- 15% off storewide
- Double reward points
- Free gift for the first 250 purchasers
- Limited edition "Canadian Launch" product bundle
Multi-Channel Communication:
- Email marketing through Klaviyo with a series of countdown emails
- SMS notifications for opted-in customers
- Rewards program emails highlighting exclusive member benefits
- Back-in-stock notifications for high-demand products
Social Media Blitz:
- Live unboxing events on Instagram and Facebook
- User-generated content contest with prizes
- Paid social media advertising across Facebook, Instagram, and Pinterest
PR and Media Outreach:
- Press releases sent to Canadian parenting and lifestyle publications
- Interviews with Crystal Duhaney and Uri Weinberger in podcasts and online magazines
Post-Launch Growth Strategy
Paid Advertising:
- Replicated successful US Facebook ad campaigns, adapting content for Canadian audiences
- Implemented Google Ads for brand awareness and product-specific campaigns
- Explored advertising on Canadian parenting forums and websites
Customer Retention:
- Developed educational email flows about breastfeeding and milk supply
- Promoted the Facebook community and online courses
- Implemented a customer feedback loop to continuously improve products and services
Repeat Purchase Encouragement:
- Implemented follow-up campaigns for customers who hadn't purchased in 21 days
- Created a subscription model for popular products
- Introduced a referral program with rewards for both the referrer and the new customer
Expanding Product Offerings:
- Gradually introduced new products from the US lineup
- Developed Canada-exclusive products based on customer feedback
- Explored partnerships with local Canadian brands for co-branded products
Customer Service Excellence:
- Hired and trained a dedicated Canadian customer service team
- Implemented a live chat feature on the website
- Offered virtual lactation consultant appointments
Key Metrics and Results
The success of Milky Mama Canada's launch can be quantified through several key metrics:
- Sales: $250,000 in the first 10 weeks
- Customer Acquisition: Over 2,000 new customers in the first month
- Repeat Purchase Rate: 35% within the first 90 days
- Average Order Value: $85 CAD
- Customer Satisfaction: 4.8/5 star rating based on 500+ reviews
- Email List Growth: From 3,500 pre-launch to 10,000+ after 3 months
Challenges and How They Were Overcome
Despite the overall success, Milky Mama Canada faced several challenges:
Supply Chain Issues: Initial delays in product manufacturing were mitigated by maintaining higher inventory levels and diversifying suppliers.
Regulatory Compliance: Navigating Health Canada's regulations for supplements required additional time and resources. This was addressed by partnering with local regulatory experts.
Customer Education: Many potential customers were unfamiliar with galactagogues. This was tackled through comprehensive content marketing and educational webinars.
Competition: As the market grew, new competitors emerged. Milky Mama Canada maintained its edge through product innovation and superior customer service.
Key Takeaways for Aspiring Entrepreneurs
Relationship is Key: Maintain a strong, positive relationship with the brand owner throughout the licensing process. Regular communication and alignment on goals were crucial to Milky Mama Canada's success.
Localization is Crucial: Adapt products, packaging, and marketing to meet local regulations and consumer preferences. Understanding the nuances of the Canadian market was vital.
Pre-Launch Preparation Pays Off: Invest time and resources in building a customer base before launch. Milky Mama Canada's extensive pre-launch activities significantly contributed to their strong start.
Leverage Existing Assets: Utilize the original brand's marketing materials and strategies, adapting them for the new market. This allowed for a faster and more efficient launch.
Focus on Customer Acquisition: In the early stages, prioritize reaching new customers while building retention strategies. Milky Mama Canada's multi-channel approach proved effective.
Think Long-Term: Consider customer lifetime value rather than focusing solely on immediate ROI. Milky Mama Canada's investment in community building and education has led to loyal, repeat customers.
Be Adaptable: Be prepared to pivot strategies based on market feedback and performance data. Milky Mama Canada's willingness to adjust their approach contributed to their rapid growth.
Looking to the Future
As Milky Mama Canada continues to grow, the company is focusing on three main goals:
- Expanding their product line, including launching their best-selling emergency brownies in the Canadian market
- Hiring additional staff to support their growing operation, particularly in customer service and marketing
- Continuing to increase sales and market share in Canada, with a target of $1 million in annual revenue by the end of the second year
Long-term plans include:
- Exploring partnerships with Canadian hospitals and birthing centers
- Developing a line of products for postpartum recovery
- Expanding into French-speaking markets within Canada
- Considering further international expansion to other English-speaking countries
Conclusion: A Model for International Expansion
The success of Milky Mama Canada serves as an inspiring case study for entrepreneurs looking to bring established brands into new markets. By carefully navigating the licensing process, adapting to local needs, and implementing a strategic launch plan, businesses can successfully replicate a proven model in a new territory.
As the global marketplace becomes increasingly interconnected, the opportunity for international brand licensing will only grow. The Milky Mama Canada story demonstrates that with the right approach, these opportunities can lead to rapid success and the establishment of a strong market presence in a new country.
For brands considering international expansion, the Milky Mama Canada model offers valuable lessons in market research, localization, community building, and strategic partnerships. By following these principles and adapting them to their unique circumstances, other businesses can hope to achieve similar success in new markets.
In the end, Milky Mama Canada's journey is not just about bringing a product to a new market – it's about supporting mothers, building communities, and making a positive impact on families across Canada. This mission-driven approach, combined with strategic business decisions, has set the foundation for long-term success and growth in the Canadian market and beyond.
