Pure Goat Company: from loss to healthy growth

Dekker started Pure Goat Company in 2018, based on the belief that cow's milk is not the only suitable milk for human consumption. He discovered this while working in the dairy industry during his business studies programme.

‘I was absolutely shocked to see just how much processing is actually involved in dairy. Cow's milk is completely taken apart – skimmed, natural fats removed, animal-derived sugars removed and then palm fat, sugar and supplements put in... Commercially smart, but totally unnatural.'

His conclusion: ‘We are on the wrong track with cow's milk. Milk from sheep, horses and goats is much more suitable for human consumption. It requires little or no processing and, in addition, it is more sustainable.'

'That's why Pure Goat Company works exclusively with milk from organic goat farmers; it isn't skimmed or diluted, but goes straight from the farmer to the factory. There, we enrich it with the specific vitamins, minerals and omegas and dry it into baby and follow-on formula. And that's it.’

When starting up his company, Dekker chose specifically for baby formula, the 'Champions League' in dairy products. ‘Listen, of course breast milk is best for babies. But if, for whatever reason, breastfeeding is not an option, we want to offer an alternative to cow's milk.'

'Baby formula is the most difficult category to succeed in. The investments are high, there is strict legislation and no room for mistakes. If we succeed at this, we can produce something that's really distinctive.’

He partnered with a former colleague, a scientist who knows all the ins and outs of all kinds of ingredients, and he found investors willing to join him in the adventure.

Pure Goat Company processed the goat's milk in Austria during the first years. ‘That was the only facility capable of producing what we envisioned – and the only one that believed in our story.’ It turned out to be an expensive and logistically inefficient solution. ‘We made a considerable loss due to those high costs. In our first year, we sold 10,000 tins but made a loss of €800,000.’

In the ensuing years, the sales figures rose but the numbers remained in the red: €6,000, €4,000, €2,000... Admittedly the losses were going down, but Dekker kept having to go back to his investors to ask for additional funding.

‘Twelve times in total, of which as many as eight times in the period 2021 and 2022. For a while, I spent hours each day preparing for the next funding round before I could even start my actual work.'

'And there was always the risk that my investors could pull the plug. That takes so much energy. At home, I said several times: in two weeks, it might all be over – finished, done. Luckily, our investors kept believing in us too.’

His belief in the idea was what kept him going: ‘The product is right, demand is growing, sales are rising – it just has to turn around soon.’

The redeeming black numbers came after ABN AMRO stepped in. Dekker: ‘I had been talking to my account manager for some time, and their team offered some good ideas.’

That helped: with healthy growth stats and a good liquidity budget, Dekker secured a €1 million financing package, part as a current account credit and part in the form of a loan. ‘Such a relief,' he says. ‘Not because of the amount as such; up until now, I have only used between 20 - 30% – occasionally a bit more than half of it and every time, repaid it.'

'More than anything, the loan gave me peace of mind. I didn't have to keep going back to my investors. And my position with suppliers strengthened: instead of asking for a favour, I could negotiate with real commercial authority.’

The financial leeway was liberating for Dekker in every regard. ‘I went from working almost 100 hours a week to around 50. I was able to focus on operations, quality and growth. No more cash flow stress every month.'

He moved production from Austria to the Netherlands and reviewed all his business agreements. ‘That way, we got the costs down, the lines shorter and the collaboration better.’ The results: solidly back in the black.

He got his private life back too: ‘I slept better. I found time to take part in sports and was able to enjoy things again.’ Dekker is still grateful to the bank. ‘That peace of mind is still here today. I rarely use the current account credit, but knowing it's there makes a big difference.’

Pure Goat Company currently has a turnover of roughly €5 million and sales of around 300,000 tins a year. Dekker looks ahead with ambition.

‘An annual turnover of €10 million a year is realistic within two to three years. Preferably without extra financing. If things go as they have in recent years, we can do that on our own.'

But he is not ruling anything out. ‘If circumstances change, or if we want to grow faster, it's reassuring to have a strong relationship with the bank.’

Dekker's advice to fellow entrepreneurs is simple and unvarnished. ‘If you believe in your idea and your sales are rising – even if your numbers are still red – keep going. Success will come! Don't get distracted.'

'If necessary, put other things on hold: no social pressure, no alcohol, no blow-outs. Live a disciplined life, focus on your business and your family and keep going. A time will come when you don't have to just survive every day, but that you're succeeding. And then you can start building.’