Nikolaihof: Pioneering Grape-Based Biodynamic Cosmetics

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By pioneering the world's first grape-based biodynamic cosmetics, Nikolaihof, Austria's oldest winery, proved that old doesn't equal old-fashioned. CEO Martin Saahs tells the whole story:

Describe Nikolaihof in 50 words or less.

The Nikolaihof Wachau is the oldest winery in Austria and one of the first biodynamic ones in the world. It is also the first Austrian estate to receive 100 points by Robert Parker. The newest addition is dieNikolai. This is the first grape-based biodynamic cosmetics line in the world.

How did you discover the need for biodynamic cosmetics? What problem are you solving?

As more and more companies were asking us for our biodynamic resources, we learned that people are not only thinking about healthy food options, but also about healthy cosmetics. Consumers are more critical and want to live healthy. Furthermore, many people strive to reduce their carbon footprint without giving up any standards of living. For food, the market is already huge, and organic markets are expanding rapidly. Natural cosmetics turnover doubled from 2009 to 2014, and fashion will be next.

So what we see in blogs and magazines actually is reflected in numbers. More and more consumers are looking critically at their everyday needs and value sustainable, organic and regional resources. With our Demeter certification, all of our products fulfill the strictest organic standards worldwide. Additionally, we are providing our consumers with the opportunity of going to our vinyards to participate in a sort of “6 senses experience”, to see how and where the resources of their cosmetics grow.

Nikolaihof: Pioneering Grape-Based Biodynamic CosmeticsIn what ways do you measure your success and how do you make sure you don’t lose track?

As we are quite new on the market, a great way to measure success is by the number of our returning customers. Being one of thousands of companies out there, with some of them having seemingly unlimited financial resources to run awesome campaigns, it means a lot to us to have people travel from far away to get to know our products. Our customers come from around the world and appreciate the highest quality of our cosmetics so much, they are willing to pay a fortune for shipment and taxes to get more of it. In terms of sales, we are planning to at least double them in the second year and expand to at least one new country.

 

CEO Martin Saahs

Bootstrapped or financed: What fuels your startup now and what will in the future?

Definitely bootstrapped. 100% of our operations are financed with private capital, although we have had quite a lot of offers. After all, we are talking about a billion dollar market. We are planning for sustainable growth with super motivated, exclusive importers around the world.

What were the biggest challenges you faced building your startup?

Probably the complex pathway from having no more than the idea to develop the purest cosmetics in the world, to producing it, to having an actual product that you can now take out off a shelf. As an example: It took almost a full year to just get the permission for one certain type of packaging from the biodynamic control organisation, Demeter.

With ferocious competition and a booming trend to build new companies: How do you make sure you don’t get lost in the shuffle?

In a FMCG market it’s important never to stand still. We are aware that we continuously have to develop new products and find ways to be able to compete with the big brands. I guess one of the most important things for us is building a strong, trustworthy brand. We are working hard to satisfy the dieNikolai community and are, after such a short time on the market, very thankful for their brand loyalty. This is definitely something we are not taking for granted.

What do you look for in team members?

We are always looking for interesting people that want to be part of dieNikolai. I’d say we are definitely looking for people with a hands-on mentality, that are always open to new things, even though sometimes it may only be sorting the samples by batch number. I once read you should never hire someone you wouldn’t go for a beer with. I have found this to be true for myself as well.

Why would a talent join your team?

Many of the people that we know, who are living in the city, tell us we’re having the best work place. I guess besides all the great possibilities a startup offers, working on the countryside, sometimes even in the vineyard, is one great adventure.

What was your most memorable moment so far?

Probably the day we met some Italian criminal, who pretended to be interested in our products. In the end it turned out to be an attempt to make dubious transactions.

The most positive moment was definitely the day when I was holding the first product ready to sell in my hand.

7 years from now: How did your startup change the world?

Contributing towards a better world is one of the best things about our startup. We know, that more and more companies will (have to) work in a more sustainable way, treating nature and human beings with respect. Being one of the very first biodynamic cosmetic lines in the world, while also having managed to build a sustainable base for further growth, will motivate many others to start or convert to working in an organic or biodynamic way.

What happens, if it doesn’t work out?

Well, as far as we see now, we are already growing and our operations are on solid footing. But the question “What happens, if…” should definitely be discussed within the team. Especially when putting the contracts in place. It’s probably also good to think about a certain indicator, when you would say the project has “failed”.

We had projects before, that we had to call off, to not waste any financial and temporal resources. However, in my case, the previous “failed” project was one of the biggest factors in the success of the biodynamic cosmetics company dieNikolai. So never let the fear to fail prevent you from doing what you are meant to do – founding a startup or running it.

What advice would you give fellow founders for their startup?

I think one of the biggest lessons was that almost everything that’s needed to build up your own company has to be done by one person. Yourself. Of course, it can be good to go to startup events, meet lots of people, and go from one funding advisory service to the other, but in the end, you have to sit down and start doing something instead of waiting for anything to happen by itself.

 

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