The Billion-Dollar Energy Drink No One Saw Coming | Ep. 446 with Scott Frohman Founder and CEO of Odyssey Functional Energy

Founder's Story

Scott Frohman shares his journey from a burnt-out Wall Street professional to the founder and CEO of Odyssey Functional Energy. He details h

Key takeaways

• Odyssey is currently stocked in 17,000 doors and used in offices like SpaceX and Citadel.
• Scott transitioned from the vaping industry to CBD before launching Odyssey.

Main topics

• Entrepreneurial pivots
• Functional mushrooms

Notable quotes

One thing it didn't cost me was money.

Conclusion

A masterclass in entrepreneurial resilience and the importance of pivo

Transcript preview

Speaker 1 (0:00) Justin Bieber became my spokesperson. Guess what? I lost. Speaker 2 (0:06) This is Scott Froman. He started with a drink nobody understood. Today, Odyssey is the number one natural energy brand in America, stocked in 17,000 doors and fueling the offices of SpaceX and Citadel. Speaker 1 (0:22) I built this whole thing with no marketing, no social media, zero. This whole thing happened because I focused on building. Speaker 2 (0:31) What did building Odyssey cost you? Speaker 1 (0:33) One thing it didn't cost me was money. Speaker 2 (0:43) So, Scott, you were a burnt out Wall Street guy. What did that world do to you? Speaker 1 (0:48) Look, you know, I spent a lot of years on Wall Street and I was, you know, coffees, moved to Florida, got into Cuban coffees that I really like. And, you know, I was always kind of like wiring out. And then, you know, energy drinks, you know, came about and I got really into, oh, OK, here's another thing to stimulate myself in the afternoon. Got a bunch of energy drinks and. you know, things like that. But it really, it moved me to kind of like say, okay, this existence that I have going on here, I didn't feel like it was going to get me to where and how I want to live long term. So I said, I think I had to make some changes and change it up a Speaker 2 (1:24) little bit. From what I read, you wanted energy without the crash. You were testing with putting mushrooms in, but it tasted terrible. Speaker 1 (1:33) Yeah, so as the evolution kind of developed in my life, I started getting very entrepreneurial. I got to start to look at doing, you know, other things outside of Wall Street. And I got involved in products. You know, I got really into products. Like my background is I got into health and fitness and Pilates. And I got sciatica and, you know, and all of a sudden the Pilates helped me. And I started getting into doing triathlons. So I got into using these kind of functional mushrooms, you know, kind of utilizing like wines made from... focus and clarity and four steps that were really good for endurance and go to max. And I started adding him for my coffee in the morning. And I said, wow, I really like how I was showing up. I was showing up. I had this clarity. I felt that I was, you know, where I was managing with people, my creativity. I didn't feel like I need that extra cup of coffee for that extra caffeine. As I went, I felt I had this longer. lasting energy and I just felt that there's better existence. So, you know, that was what was going on as to how I got into these, you know, functional mushrooms in the first place. So you went from Speaker 2 (2:37) vaping to CBD to now mushrooms. Would you say that you're chasing trends or do you see things before everyone else? Speaker 1 (2:45) You look, the vaping, I just looked at it like it was a better alternative than smoking cigarettes. And then, you know, I was like, Speaker 2 (2:52) I Speaker 1 (2:52) thought, like, I looked at it like, and I'm not going to go through the debate whether it is or it isn't. Okay. But I really think that, you know, and I saw a trend of getting from, you know, because I was into vape early before there's even vape stores. And I saw the trend of like getting into those little e-liquid bottles because it was originally it was, you know, rechargeables and electronic cigarettes and moved to these little bottles. And then the bottles turned into the premium bottles. I got into that. I ended up owning vape stores. I went public with my deal. I had worldwide distribution selling vape premium liquid bottles and stuff like that. And that was really cool. And I built that and sold that. And what happened was when I sold that, I had a non-compete. So I couldn't do anything with Naked Team. But I liked the whole thing, movement that was happening with Canvas. I really liked the whole thing with CBD. Because I looked at CBD, it was like, wow, this can really help people with anxiety and like... you know, inflammation and, you know, sleep and, you know, just better existence. And I, and I liked CBD without the THC because, you know, I thought that this would be good for a lot of people. So I got the CBD and I built that relatively fast because I had all that distribution from vape, smoke and head shop. So I was able to plug right into, you know, all that obscure place in the back of a shopping center would take CBD in early days. before people really fully understood. And I got involved in that early and I built a big business on the CBD. But yeah, I like getting involved in things that I see helping people and, you know, at cons when I feel like the market is ready for those products. Speaker 2 (4:26) I tried to do some stuff with CBD maybe 10 years ago, but the regulation changes and everything, it freaked me out and I got out of it. And maybe that was a big mistake. What kept you into these? Speaker 1 (4:40) Yeah, CBD was clearly great, you know what I mean? And especially when I got in, because I got into CBD in 2015, and I built that company really fast. But people liked the products. We had the creams. It helped people with all kinds of, it was fantastic. A lot of cool tinctures and some vape products. Um, look, I think, uh, I think it was, uh, I got it. I sold the company 2018 to Harrison, which is a big cannabis MSO. They're like the biggest operators like New Jersey and Pennsylvania. I wasn't looking to sell the company. Actually, funny enough, I was making good money with the business. I, I, it was a private company and I said, well, this market was about to change. A lot of people, I'm getting a CBD, I'm getting a CBD. The regulations were about to change. And I said, wow. I said, I really want to be positioned. So I wanted to actually raise money and have a war chest of money to manage throughout this. As it was, they wanted to buy the company. I sold the company. That was great. And then I spent a year worth of the integration. And now it's like January 2020. And I left the company. And I'm now sitting at home and I'm by myself with my wife. I got two kids. And actually, my one kid was born January 4, 2020. So I had this moment that I was able to just take a break. It was a lot. There was a lot of activity going from the vape to the CBD and then the CBD to selling the company and then the integration. There's a lot that goes on with that a little bit. You know what I mean? And I was glad to take a moment to take a breather. So now that you've started Odyssey, Speaker 2 (6:20) what learnings did you have from the other two companies? It's going to enable you not only to have a successful company with Odyssey. Speaker 1 (6:27) It's a great question. One of the things I think I've learned is really being more sensitive to what's working and what's not working and really being real with the consumer. At the end of the day, what does the consumer really want? Look, I had, you know, I come up with these products and then, you know, but like, which is the products that are really resonating with them? What's really the product that they're, I always say, people say, what's the best workout? I say, you know what the best workout is? It's the workout you're willing to do. Well, guess what? You know, with the products, it's what's the best product. You know, it's also if I'd be willing to you want to engage with on a regular basis. So I think that I've been very more sensitive to what's working, what's not doubling down on what's working and things like that. And where I think this is different about exiting than the other companies. You know, like it says, look, my friend started the bait business and they asked me to come in and run it. You know what I mean? And I justified it as a better alternative to smoking cigarettes and stuff like that. But like the CBD, I like CBD a lot. But this was something that I really built that resonated and aligned with me. I built this from scratch. I came up with the name. I came up with the formulation. I came up with how I wanted it to exist. You know, I was using the mushrooms in my coffee and it was muddying up the coffee. So I didn't really love how. I love the coffee. So that's why I was also thinking, like, I think I could do something to make, you know, a product that, you know, would be great. But this is something I'm really excited about going distance with. Because I really think that this is like, there's been no innovation in energy beverages since the inception of the last 30 years from Red Bull, Monster, Rockstar, now Celsius. I mean, by and large, it's the same type of mosh pit of caffeine. with taurine, you know, other, you know, stimulants. Speaker 2 (8:23) Repackaged, essentially. You know, Speaker 1 (8:25) sweetened with superlose, you know what I mean, or sugar. Like, you know, there really hasn't been in like, but like, look at us as consumers and look at us as people today. We're different people today than we were, you know, 5, 10, 15, 20 years ago. Our needs and our desires of how we want to show up. We didn't talk about alignment 20 years ago as much as what it is today. being centered you know what i mean being present you know what i mean and and i really think that it's very exciting when you think about energy what is energy you know what i mean is energy just about being up here or is it about like you know focus and clarity and you know what i mean energy about like how you're how you're existing you know what i mean how you're exercising how you're showing work and how you're thinking and how you're spiritually feeling you know what i mean you know I think it's really interesting to think about what we want. So I love this project, not for just today or to an exit. I'm really about building this thing long term. I think that this is the, you know, the future of what, you know, what people are looking for longer term. And I'm really excited to be part of it. So, yeah, so functional mushrooms Speaker 2 (9:37) are definitely picking up. I'm starting to see them more and more. However. I imagine it required a lot of education in the beginning. How do you sell something that requires you to explain it when people don't understand it? Speaker 1 (9:53) It's a great question. So look, when you really look at this, I really think that the functional mushrooms have really developed in the last, let's say, 10, 20 years ago, in the last five years, especially. And why? Football is finally back and Speaker 2 (10:12) PrizePix is bringing out their best offer yet. New users who sign up get $150 in lineups if you win your first $5 lineup. And now PrizePix is available nationwide. Here's why I love it. The app is simple. You pick two to six players, then choose more or less on their projected stats like pass yards, rush yards, and fantasy score. It's the best way to get locked in on game day. 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