Flynn's Harp: Mushrooms as part of emerging health consciousness lure Seattle entrepreneurs
Convinced that "medicinal mushrooms" will attract an ever-growing audience of health-conscious consumers, a fledgling Seattle company that launched a mushroom-based animal-products company a year ago is planning to expand the business to products for people.
Ryan Lentz, who was baseball star at University of Washington and professional ball player for four years before an injury ended his career, a year ago co-founded Noah's Nutritionals, first focused on horses then adding a mushroom product for dogs, as literally a "friends and family" company.
The friends and family who have now joined in co-founding a mushroom-product direct marketing company called myCELIA, are Pennie Pickering and Richard Roberts, husband and wife co-founders of marketing-and-communications firm Palazzo Creative, and Mark Wolf. Pickering is Lentz' aunt and Wolf, who will head international business development for the new company, was his former real-estate development partner.
As they head for a launch of myCELIA in the first quarter of next year, Pickering, who is the vice president of marketing, explained that the two animal products that are conventionally marketed will be rolled into a parent C-Corp., MPower, along with the people-focused subsidiary.
They have tapped as "chief scientist and medical spokesperson" Dr. Marvin Hausman, a Sherwood, OR-physician who is billed as a world expert in medicinal mushroom research and who holds a number of mushroom-related patents" in partnership with Penn State University.
The direct marketing of mushroom-supplements isn't yet a crowded field, but there are two heavyweight competitors, both Asia based, that have carved out substantial reputations as multi-level marketing companies focused on mushroom-based products.
One is the Malaysian-based Gano Excel, a $500 million business that sells one of their mushroom extracts in coffee and Pickering says she and Lentz believe that having a unique mushroom-based coffee will be an important product for myCELIA.
The founders view the tie to Hausman, who created mushroom supplements to help keep the horses owned by his equestrian-champion wife healthy, as a marketing leg up. His supplement apparently gained widespread visibility in the equine community when it was used by a group of veterinarians struggling to control an equine herpes outbreak in Florida.
His mushroom supplements gained additional attention when horse-trainer Carl Nafzger put his prize horse "Street Sense" and 35 other horses on the mushroom supplement and "Street Sense" wound up winning the 2007 Kentucky Derby.
Lentz, introduced to Hausman through a friend, says he soon began using the mushroom formula himself for his own injuries after seeing the effect in had on the diseased mouth of his dog, and that led him to form MPower.
All of those details, as well as the initial success of the animal-mushroom products that already have an agreement with a German distributor for $100,000 a year of product, will be part of the company's message to potential investors as they seek to launch their direct-rmarketing company, which Pickering refers to as "social sales." .
Mike Flynn is retired publisher of Puget Sound Business Journal who now has a consulting firm, Mike Flynn & Associates LLC, and writes a weekly column called Flynn’s Harp. Contact him at Mike@emikeflynn.com if you would like to be added to the list of those receiving it via email, or to see previous Flynn’s Harp columns, go to emikeflynn.com and click on blogs