Boulder, the home of organic food, is fostering a new generation of health entrepreneurs

This story is part of CNBC’s quarterly Cities of Success series, which examines cities that have become business hubs with an entrepreneurial spirit that has attracted capital, companies and workers.

Nestled against the Rocky Mountains, Boulder, Colorado, has become a thriving center for the natural and health products industry. Here, companies generate billions in revenue, all from a deep appreciation of business, the outdoors and health.

The industry originated with settlers who, in 1969, hand-picked wild herbs in the foothills of the Rockies, which inspired the founding of the tea company Celestial Seasonings, a pioneer of the food movement. nature, according to a local industry group. The tea company was later acquired by Hain Food Group – now Hain Celestial Group – in 2000 for $390 million.

“This [region] it’s the epitome of nature and living things,” Hain Celestial Group President and CEO Wendy Davidson told CNBC in a recent interview for the upcoming “Cities of Success” series that airs April 11 at 10 p.m. EDT “If you want to drive growth. , if you want to be in the industry the right way, Boulder is the place to be.”

Today, Celestial Seasonings, still headquartered in Boulder, makes more than 1.6 billion cups of tea annually, with sales exceeding $150 million. Its success story serves as an inspiration to many entrepreneurs in the region.

“It’s the people. It’s the environment – the business environment and the focus on nature and nature and health has allowed us to scale and grow one of our biggest and most profitable brands. in the company,” Davidson said.

The Boulder area’s emphasis on health has fueled a growing industry, which generates a whopping $2.1 billion annually for the Colorado economy, according to an October 2020 study by the Leeds School of Business at the University of Colorado. Boulder, Colorado. That contribution translates into more than 22,000 jobs and a significant impact on manufacturing, supply chains and consumer spending, according to the study.

The Boulder County Farmers Market, going strong since 1987, exemplifies a thriving local community.

From April to November, the market becomes a testing ground for food entrepreneurs. More than 100 small businesses showcase their products to a hungry crowd of 100,000 shoppers each year. Sales in the market have increased by 400% since 2013, reaching $5.7 million in 2023, according to the non-profit organization Behind the Markets.

And this is where a simple jar of nut butter can turn into pure gold.

In 2004, Justin Gold, armed with his homemade peanut and almond paste, began “throwing buckets” to the local Boulder community at the farmers market.

What started as free samples quickly grew into a hit product. The unique, all-natural flavors struck a chord with health-conscious consumers, and Justin’s jars, as they were called, became a staple in the market.

But this was not enough for Gold – he eventually raised his reputation to convince local retailers to keep his brand on their shelves. Gradually, the business grew, eventually culminating in a landmark deal with Whole Foods. Justin’s products can now be found in health stores and coffee shops across the country.

“What we achieved blew away my wildest dreams,” Gold told CNBC.

The journey from a single farmer’s market to $281 million in sales at Hormel Foods in 2016 is a testament to Golden’s vision and the unique environment that Boulder fosters.

Gold said the city’s vibrant business community, focus on health and wellness, and beautiful natural environment are key elements of his success story.

“Everyone here is looking for something really interesting,” he said. “You don’t have to be in an office to be creative, you can be outside. And I think that the combination of these great things produces extraordinary results.”

Inspired by Gold’s success, Juan Stewart launched his Latin American fruit drink, Frescos Naturales, at the Boulder County Farmers Market in 2021.

Stewart quickly recognized the market’s potential, calling it “the center of the organic food industry” where many brands have achieved national success.

His gamble paid off. In its first year, Frescos earned more than $40,000 in sales and secured a distribution deal with college Kroger.

“I was very fortunate to be in Boulder when I started this brand,” Stewart said.

Naturally Boulder, a group founded in 2005, is proving to be a breeding ground for success in the natural and organic food industry. By supporting entrepreneurs and connecting start-ups with local investors, the group has fostered a strong group of companies that attract businesses from across the country.

“Companies that started here, like Heaven [Seasonings] they had success. So some people started coming here,” said Kristine Carey, executive director of Naturally Boulder. “Companies are moving here… there’s an energy to rebuild.”

This power is evident in the story of Kristy Lewis, founder of Quinn Snacks.

In 2010, Lewis built his business to $2 million in sales outside of Boston, but to reach the next level, he knew he needed to take a big step.

“I felt like if we were going to be really successful, we had to be in Boulder,” Lewis said.

After that move 10 years ago, Lewis saw his name explode. Quinn Snacks’ annual sales, he says, are now north of $30 million.

“I really don’t think we would have been successful without this group of people supporting us,” Lewis said, referring to the Boulder community. “We knew that was exactly where we needed to be.”

Correction: This article has been updated to reflect the final price of Justin’s Nut Butter by Hormel Foods. It was 281 million dollars.