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Join for freePosted: Tue 15th Sep 2026
Sanjay Aggarwal took Spice Kitchen from a family kitchen table to over 700 UK stockists, including Selfridges and John Lewis.
In this session, he shares the real, sometimes costly mistakes made along the way – from underpriced deals with big retailers to packaging that bombed off the shelves – and what he'd do differently if starting again.
Practical, honest, and built for founders of product-based businesses looking to get retail-ready without learning everything the hard way.
How to protect your margins before you say yes to a big retail opportunity – and the real cost of getting it wrong
Why packaging is your most important (and most underestimated) salesperson once your product is on a shelf
The mindset shift that changes everything: Why wholesale is a partnership, not a discount
Sanjay is the founder of Spice Kitchen, which grew from a retirement project for his mum into a brand stocked in over 700 UK shops, including Selfridges and John Lewis.
He's since built The Retail Ready Academy, a course that shares everything he's learnt about taking a product-based business from passion project to a professional retail proposition.
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Lightly edited for clarity.
Beth: Hello, everyone, and welcome to today's Lunch and Learn. My name is Beth, and I'll be your host today. For those of you attending a Lunch and Learn for the first time, Enterprise Nation is a vibrant community platform for start-ups and small businesses.
I'm very pleased to introduce Sanjay Aggarwal, founder of Spice Kitchen. In this session, Sanjay will share the real, sometimes costly mistakes he made along the way – from underpriced deals with big retailers to packaging that bombed off the shelves – and what he'd do differently if starting all over again.
If you have any questions throughout the webinar, please post them in the chat or the Q&A, and we'll do our best to answer them at the end of the session. As always, today's webinar is being recorded, so we'll send the recording along with some further follow-up resources in the email later today. Thanks for joining, Sanjay, and I'll hand over to you.
Sanjay: Thanks so much for a wonderful introduction. Really exciting to be speaking to you all. I'm staring at a blank screen here, so I have no idea how many people are on the call, but I'm hoping this is going to be really useful for you all.
As Beth said, and for people who don't know me, I'll give a quick introduction to the brand. I'm Sanjay Aggarwal. I founded Spice Kitchen 14 years ago, and I now also run the Retail Ready Academy, which helps brands looking to open up the retail channel and get onto their first 20 retailer shelves.
I'll start by giving a bit of an introduction to who we are. Essentially, we've taken a kitchen table idea all the way through to a place where we're stocked in over 700 UK shops, and some internationally as well, and we're continuing to grow.
With no prior knowledge of what we were doing, we still don't really have a clue what we're doing, to be honest with you. We've obviously made every mistake in the book, and I'm here to give you the real-life story about the trials and tribulations through the whole thing, and the many mistakes that we made, so hopefully you don't, too.
This is kind of a funny start, but there was a person who said this to my wife. We started the business as a retirement hobby, and I'd recently got engaged, and somebody walked up to my fiancée at the time and said, "You sure you want to marry a market trader?" I was a bit gobsmacked, and I was a bit appalled by this – I was worried, all of those things.
I've put "anonymous" down here, but I'm going to tell you who this mystery person was, who'd be so ridiculous as to say this to someone's new fiancée. It was my mum.
I'm not going to hold it against her, but I'm kind of using her as an intro to this actual wonderful woman – this is the only thing she's ever done wrong in her whole life. My mum's amazing.
For those who don't know, I actually started Spice Kitchen as my mum's retirement hobby, 14 years ago. My mum was born in Kenya.
She was raised in India, and then she had an arranged marriage and was quickly thrust into the UK with my dad, who had done his degree here and decided to settle in the UK. She was the first one of our whole family to come here.
She was pretty homesick when she came, actually – very homesick – and she wanted to go back to India. I think she thought that life in England would be much easier than it was in India, which was pretty tough, but it was much the opposite.
She was freezing; she hadn't bought the right clothes with her. It was snowing, and she was dressed in a sari.
She's got lots of stories about how tough it was when she first arrived. But the one thing that connected her with home was her traditional Indian spice box – one of these things, which I'm going to open here in front of me and come on to talk about. It was a very loved, treasured item that my grandmother had given to my mum, and it kind of supported her with her new life in England.
My parents actually had a shop, which was their main business, and they ran that shop for 38 years. My dad was very much a pillar of that community, and the customer service he gave people was incredible – I'll talk to you more about why that's important. I certainly learned that as I grew up in the shop and helped run it in my teenage years.
They closed the shop in 2007. My mum was pretty bored, actually, after a few years of retirement, travel and looking after grandkids, and she was longing for something to do.
So I said to Mum, "Why don't you sell your spices and put them in a tin?" On Christmas Day 2012, I listed a tin of her spices on eBay, and we sold our first one on Boxing Day. Little did we know where it would lead.
I then operated on market stalls, as a lot of small brands do, and I was there week in, week out at Altrincham Market in Manchester, which is a wonderful place. That's where my mum started to say to my fiancée: "You sure you want to marry this market trader?" Even though we'd started the business, or hobby, together.
I did have another business at the time, but I was taking Spice Kitchen more seriously, and my mum wanted me to. There's a lot to talk about here, and I've done other talks, but this one is all about the retail side. We've been through every mistake possible to get to 700 shops since 2016 – so exactly 10 years.
We've been to five or six trade shows a year. We've talked to retailers, we've chased retailers, we've pestered the hell out of them, and we've made loads of mistakes, which I'm going to share with you. But we've built a really great little business that has products in lots of random shops all over the country.
If it wasn't for a lot of perseverance – really listening to customers, admitting when there are mistakes, and not getting too defensive when we have made mistakes – we wouldn't have been able to keep iterating and keep improving to get where we've got to. So now I'm going to share with you all the mistakes we've made. I've tried to summarise them in 10, but there are more.
The first one is the most complicated, because my philosophy is to say yes to most things that are big opportunities, and figure out how you're going to work it out afterwards. But you also can't say yes to everything – you have to turn things down. We've taken on so many opportunities, most of them way bigger than we actually should have been for the size of our business.
Some of them went against our own impostor syndrome. Some of them we couldn't operationally even handle, especially when we were a kitchen table idea. But me and mum are the sort of "yes people" who always say yes – "Yeah, yeah, fine, we'll figure it out."
To be honest with you, pretty much every time we've hustled through, working around the clock or doing whatever we needed to do to get there – even getting Mum onto TV a few times, which is very much out of her comfort zone – it's led to more positive things in the past. However, early on in our journey, in the retail landscape, we said yes to opportunities which, looking back, we should have said no to.
One specific example: one of our first retailers was a big garden centre group called Dobbies. They approached us very early on. We were very naive, and we didn't know our numbers and our margins.
A product that we sell wholesale for £20 – the round tins – retails for £35 and is typically £20 wholesale. We decided to sell them for £12.50. Dobbies at the time had 30 or 40 garden centres, and we knew we weren't going to make much money on it.
My mum and dad, who were very profit-driven, savvy business people, said no, we shouldn't do it. But I said to them at the time, "Look, we need to do this deal. It's a very big retailer; it could lead to other stuff, it'll get products on shelves, and it'll be worth it – let's just do it." So we did.
With hindsight, we probably shouldn't have, because we worked around the clock – we had no staff, and we were packing around the clock. It nearly broke us. It was great to see our products on those shelves, and it did help in the ways I thought it would, but we got screwed on the margin, and looking back, we should have negotiated harder.
I kind of feel we might have been taken advantage of, but it was a commercial deal that we agreed to, and we stuck by that. You definitely don't want to approach big retailers too soon, and sometimes there are opportunities that are just too big, so you do have to say no. You need to know your margins, because once you commit, it's very hard to backtrack.
We were kind of busy fools, and it led to a mistake we haven't repeated since – we're much more margin-driven now, and we've also understood the resources that are needed to do these sorts of contracts. So there are lots of lessons there.
The second one is that we didn't understand the retail mindset, and this is something I'm really passionate about. As I mentioned, my parents were shopkeepers, so we had our own shop and came from a retail background – we understood this. But when I stood at those market stalls and sold a product for £35, making a really good profit, and then thought about giving away 50% to a retailer, I was kind of thinking retailers were just there to screw you over.
I had it completely wrong, even as someone from a family of retailers. The power very much lies in a partnership. Initially you think the power lies with the retailer – you're just little old you, making your stuff, and they have all the power, which is kind of how it felt in the Dobbies example.
But what you've got to realise is that the retailer relationship is a partnership, and a really 50-50 one. It's a win-win-win. You make money, and you have to make money on the products you sell to them; they make a margin, but they have a lot of costs in their business, and a lot of retailers aren't doing very well and have really tight margins.
They're giving you distribution, and customers in that specific area are discovering a product they would never find otherwise. They're also buying a lovely product from a small brand, and retailers need that. So it's a win for all parties, but your relationship with the retailer is a partnership, and you have to realise that and strengthen it.
You can't sell your products to a retailer begrudgingly – you've got to sell it and think, "Please take my 50%, because I understand the work you're doing for us." Once you make that mindset shift, it will make more sense. When we go to trade shows now, we genuinely love getting more retailers to buy our products.
Yes, we don't make the same margin as on a Shopify sale or a D2C sale, but it really supports the brand and gives us distribution we wouldn't otherwise have. That shift is really key, and I'd say to people entering this world, if you haven't already, understand this first – because if you put all your resources into the retail channel without having the right mindset, you're going to fail fast.
The next mistake is retail-ready packaging. When we built the business from a kitchen table idea, I did my first trade shows in 2016 – I stupidly booked three of them. I convinced retailers to buy from us, and here's the first mug shot, shall we say – my first trade show, looking very fresh-faced.
The packaging back then was literally nothing. The round tins were there, with spices inside, but as a customer looking at a shelf, you couldn't tell what they were. One of our first stockists was a deli up in Lancashire that bought the product, but the only problem was that it absolutely bombed – for quite a while, until we started to innovate the packaging.
I made some very crude attempts at trying to fix the problem, and then we invested in a design agency, which designed the beautiful packaging we have now and built us a logo that made clear what the product was. As soon as we put this onto our products, they started to sell.
We're at the premium end of the space, and somebody once said to me, "You've got to make your packaging as premium as your product itself," and that's stuck with me ever since. Your products have to sell themselves off the shelf, without you or the retailer selling them, so it has to translate. Shelves are noisier than ever now, and you're potentially competing straight away with a brand that's already established there.
This is absolutely important, and it's one of the biggest, costliest mistakes we made – it cost us tens of thousands of pounds by not investing in retail-ready packaging before we went to the retail market. You do have to make iterations, and whatever you do first, you'll have to keep changing, so don't get too hung up on it.
But we definitely lost relationships early. We rushed through some branding, and I was printing packaging on my home printer, which was a disaster. Looking back, we think about how naive I was – a costly lesson made and learned.
Another lesson is around trade shows. You've got to be really proactive at them, and if you're visiting or exhibiting at trade shows, never stand behind your product. You've got to be a bit bolder – even if you're introverted – because you have to be able to sell your products.
Sell from the front, and here's what that means: go there to take orders, not just to showcase your products. Make sure you've got order forms, make it really simple for retailers to order from you, and follow up on your leads. Record your leads and follow them up – I'll talk more about that as we go through some other lessons.
Your sales don't just come from the show. You should try to close every deal, but you also need to do the follow-up, because 80% of the work is in the follow-up, and 20% is at the trade show itself. This is our stand now, and you can see we've made it really bright and vibrant – it's taken us a lot of time to get here.
The design is as colourful and vibrant as the product and the packaging now, and we sell from the front. We put our products at the back and stand at the front, and we don't let anyone walk past our stand without trying to interact with them. Everyone's got their own style, but this has served us really well.
Understanding your margins is another lesson, and it almost should be right at the start – these aren't in a specific order, but you've got to do your numbers. It's useful to get a finance person if you're not one yourself – a bookkeeper or an accountant can help you understand your true costs.
If you're making things at home and know you'll need to hire people to support with making and admin, factor that in – don't use your labour for free, because it's not scalable. Understand those hidden costs: packaging, logistics, labour, VAT registration, a commercial unit, staff – factor it all in now, so you're not doing a price rise later.
Knowing those numbers is really important, even though it can feel uncomfortable when you're tiny. You may need to increase your pricing, even online, for your existing customer base, which is extremely scary to think about, but you might need to factor in the wholesale margin and make iterations to your product to make it more premium.
It's a really important thing to do early rather than too late, because you have to make a profit per unit sold. There's no specific formula, but you need that revenue and profit to invest, draw a salary, and everything else.
Sale or return is another one, and it's my favourite topic, by the way. I was terrified of retailers not trying our products – it's a noisy market. One thing we started doing informally was saying to certain retailers, especially gifting retailers who don't want to stock food products because of shelf life, "Take the product, pay me for it because I need the money, but if it doesn't sell, you can send it back, and I'll give you your money back."
We formalised that as a relationship, and it's actually helped to double our stockists. We do get some returns, not loads, but we can repurpose the product. It's an amazing tool for taking the risk away from the retailer, getting those initial orders, and building that relationship – it proves to them we're working with them long term.
It allows them to take bigger ranges of products they're not sure about. We have a Middle Eastern spice range, for instance, which sells really well in London, but in the depths of Wales customers might not be as aware of Middle Eastern cooking – a sale or return still allows that Welsh retailer to take it, and more often than not, it does sell through, because it's a more unusual product for the area.
It's not right for every business, but it's something you should consider. It is scary, but it's honestly one of the best things we've introduced, and I love offering it within certain guardrails – retailers have to return the stock to us, and they have to sell it for a certain period; they can't just buy the stock and return it the next day.
Another point is about being realistic with your goals. Some brands I speak to who are thinking about retail say, "I want to get into Selfridges, I want to get into Anthropologie, I want to get into Lakeland, I want to get into John Lewis." It's an amazing goal to have, but you also need to be realistic about your logistical capacity, the margins you'll need to offer, and how much stock you'll need to be able to make as a small brand.
Those retailers are amazing for brand credibility and social media, but the margins don't always make you the most money, and sometimes the sales can be relatively small. They're good for vanity as much as anything else, but they can also lead to very big contracts, and they should always be a goal.
For us, our business is very spread out, and those big retailers can also cause problems. John Lewis, for example, has markdown support – if things don't sell after Christmas, you have to fund the sale. You have to give rebates, and if things are delivered late, you get fined for it.
You need to understand there's some risk with bigger businesses, and factor in long-term costs that may come from stock not selling well. So for us, we're spread from very small retailers to big ones, and I promise you, small retailers can sometimes sell loads more stock than a bigger one. Don't underestimate garden centres, farm shops, delis, gift shops and museums – they're amazing retail partners of ours, just as much as the bigger names we work with, like Whole Foods and Lakeland.
Building a CRM and mailing system is another lesson – a database for recording all your leads from shows in a really efficient way. They're only around £20 a month; we use one called Pipedrive. You need to be structured and efficient about how you record your leads.
If you drive past a really good gift shop, don't forget about it – put it into the CRM and create an action to find out the contact details and speak to them. In a structured, simple way, you can manage your whole sales process and mailing list.
Just Google "sales CRM" and you'll find loads online – I'm a big fan of Pipedrive, but there are lots of others out there. It just means you're not missing any leads.
Another point is around bespoke orders. We do quite a lot of them, and this varies depending on your brand and category, but sometimes taking on small orders can be very resource-heavy.
We had a contract to the US with a very demanding customer – it was about 100 emails back and forth over small design changes, for a very small contract. It was frustrating on both sides and honestly a bit of a nightmare.
We don't have them very often, but it was extremely time-sapping and complex, and we probably should have said, halfway or 25% of the way through, "I'm sorry, we can't do this contract." You'll always want to chase the business, but – like the first lesson – you don't want to take on the big ones where you're not making enough margin, and you also don't want to take on jobs that are too small and too resource-heavy relative to the size of your business. Chase the right commercial deals; not every deal is right for every business.
The final one relates to a contract right at the start – an Etsy order for thousands of mild spices that needed to be delivered in York within a few weeks. I'd just got married to my market-trading-loving wife, and it was actually the first time I met my in-laws, calling them and saying, "Look, I really need help – can you come over?" I'd moved to Liverpool, and my parents, who were in Birmingham, had gone on holiday.
So I worked round the clock – lots of sleepless nights – but I still needed to call in extra help to get it done. Looking back, it was fine; we got it done, and I got paid for it, but we've taken on lots of contracts like that which have sometimes been a bit ridiculous.
My main lesson, I'd say, when working with retailers, is to make it really easy for them to say yes. Have clear pricing, a starter order, and really clear margins that you share with them. Give them an easy order form, and make sure things like sale or return are in there too.
Make it really easy to order – they'll always ask you, if you've got 100 products, what are your five best sellers? Don't have minimum orders, and don't put barriers in the way for no reason. The simpler you make it, the better – it's one of retailers' biggest bugbears, and I've interviewed a lot of them on this.
As you can see, we rebranded and made our product really stand out on the shelf. We've got trade brochures that we take to shows, and on the right is actually a hidden web page where our trade brochure is linked, along with our Faire store and an online order form. Any retailer, even if they want to place an order at midnight because they're pushed for time, has all the options to order however suits them – call me, email me, or use our online order form.
Very quickly, as I mentioned at the start – and this is not a sales pitch leading into it – I built a course around this called the Retail Ready Academy. I've wanted to do it for ages. It's a course you can do in your own time; it's only £200, and it's yours for life.
I've shared 40 lessons on how to manage retail, and there's a community where you can share ideas, wins and losses, plus I'll give you one-to-one support. For anyone entering retail, it's a really great resource, and I'm here to answer any questions – it's called the Retail Ready Academy.
I hope that was helpful – it's extremely hard to get through all of that in 25 minutes, but I think I've done quite well. I'm really keen to hear your questions, and I'm sure Beth will come on and tell me what you'd like to hear.
Sanjay: Oh, you're on mute, Beth.
Beth: Apologies – we've had a few technical issues today. We've had some really nice comments in the chat, and I think that session was really valuable. So let's start with some questions.
Leo would like to know how you discovered those mistakes, looked for solutions, and turned them into opportunities – and what would you do differently if starting over again?
Sanjay: In terms of mistakes, it's fairly obvious – you've got to listen to people. You've got to listen to retailers telling you something isn't selling, and you've got to listen to your customers. We're very much a listening business, and we take all that feedback on board and record it, rather than treating it as hearsay and not acting on it.
We try to correct mistakes with retailers and customers. For example, we've got a hot chocolate product at the moment where the design isn't Christmassy enough, and a few retailers have told us that. We try not to just listen to one bit of feedback, but to listen for a trend – otherwise you end up chasing a tail, trying to fix problems that aren't really problems.
If I were doing it again, when we did the packaging, I knew there was a problem, but it took me a while to act, probably because I knew it was going to cost a couple of thousand pounds at the time – which now would be more like £10,000 to fix a design problem like that. You've got to nip those mistakes in the bud early; I wish I'd invested in packaging much earlier. It's about fixing the problem early rather than late – that's the key thing.
Beth: That's great. So, related to that – a question about having a limited budget for packaging before approaching retailers. Where should people spend their budget when it's quite limited?
Sanjay: We did everything on a shoestring. There are amazing freelancers out there – I'm a big fan of freelancing. My whole marketing team is run by freelancers, from content to PR to design, and we still use freelancers now.
Find amazing independent graphic designers who are great for artwork, and use them. As you grow, you might want to invest in an agency because they can offer other things, but we still use freelancers, and I've got some honestly incredible ones who work on brands I absolutely love – I can't say which ones. That's definitely the way to do it on a shoestring.
You will have to budget for it – you'll have to spend around £20 to £40 an hour [transcription unclear] on someone good. It will take some time, but if you invest whatever budget you have in the best person you can, you'll be fine. You're going to have to spend money – there's no two ways about it.
Beth: That's great. Amanda would like to know: how many products did you launch with, and how many did you have after year one?
Sanjay: It's a very good question. We had a hero product, which is this one, and we operated for five years with just this product. Until we started doing retail, we didn't really diversify, and even when we did start retail, we didn't diversify straight away – we only started doing new products in 2017, so after five, six, seven years.
You don't need a big range to start. That product is now £35, and we also have five-pound products, two-pound products and 20-pound products. Don't get me wrong – having a range is really important to where we are now, but you don't need to have loads of products at the start.
It's also quite a difficult question, because it depends a lot on your category and how strong your original product range is. I do think you need to keep innovating and stay relevant, and we've made this product for a long time, so it's important to have that range. But there's also something to be said for being very defined and refined, and not feeling you need to constantly innovate.
There's creating new packaging, and there's also range extension. We have an Indian tin here, but also a Middle Eastern one, a chilli one, a world one, and even a gin botanicals range – these have all been range extensions, much easier to do over the years, and together they've formed a range. There's a difference between creating a whole new product and extending the range with new £20 products, which aren't always as popular.
Beth: It's beautiful – I just love the packaging. Thank you. Julie has a question around trade shows: does he have sales agents as well as trade shows, because they're getting so expensive and attendance is much lower now?
Sanjay: It's a good question, and I think there are two things in there. Sales agents are a whole different thing – we don't have sales agents, we have sales staff, and we do everything direct. Some brands do have sales agents, depending on your category.
That's essentially where you divide the country into territories and give them to a sales agent, who drives around their retailers, takes the orders, and earns commission. You need to decide, as a business, whether you're going down the sales agent route or the do-it-yourself route. Sales agents are really good for certain categories, like toys, gifts or baby products, but for food, it's not as well aligned as a category – it's also something we didn't set up early enough, because if you do it too late, you have to give away those accounts in those areas.
It's a commercial strategy, and it's just not aligned to our category, but there are pros and cons to using sales agents – that's a topic for another day. Trade shows, though, are so important for us; it's where we've driven most of our business. You're right that they're getting more challenging – they're as challenging as they've ever been, and attendance is lower, but we've also had some of our best trade shows in the last two years, so there's no doubt they're an investment.
As you grow within retail, you use trade shows not just for securing new retailers, but to showcase new products and build relationships – and that relationship-building is so important. We feed every single retailer a samosa at the show, and it's become synonymous with our brand – I'm not joking, we've secured orders just based on feeding and looking after our retailers well. It's all about those relationships, and I can't stress that enough.
Beth: That's brilliant – I hope that answered your question, Julie. Amanda says thank you so much. I know we're technically out of time, but I wondered if I could ask you one more question, if that's okay?
Sanjay: No problem.
Beth: So, at what point should a founder be willing to walk away from a big-name retailer?
Sanjay: It's a really good question. The first thing is you need to know your margins – if you're not going to make any money on it, personally, looking back on it, I wouldn't do it. I wouldn't touch it with a bargepole, even if you're small – don't get too bogged down.
There's a benefit to doing something even if you're not making money, when you at least need to break even. But at the same time, retailers will take advantage of you, and they probably could pay more – so be quite hard-nosed in your negotiating initially. If you do decide to say no to a contract, just walk away, and don't ever have that regret.
It's a really tricky one, because we've made that mistake too. I'd say, as long as you're making money on the deal and it's not going to kill you, there's still an opportunity cost to consider. If you're doing a big contract as we did, you have to turn other business away, because you literally can't fulfil everyone's orders – so there is an element of opportunity cost.
Don't let a big retailer with a big order, where you're not going to make much money, disrupt the rest of your business – that's another really key thing. But it's a personal one, and a really tough one; you're going to have to make those decisions as you enter this world. I'd just say be quite strong on your numbers, and make sure retailers are sticking to your wholesale price – knock off 10% for a big order, maybe 15 at a push.
We did around 40% off at one point, which, looking back on it, was fairly ridiculous. But that's all I can say.
Beth: Amazing, thank you – we've had some lovely comments in, Sanjay.
Sanjay: Great.
Beth: Lisa says you're a legend.
Sanjay: Oh, Lisa – lovely.
Beth: Brilliant insights and a great presentation, so thank you so much. That's all we have time for today, unfortunately, but I know there are still some more questions, so please do feel free to reach out to Sanjay afterwards – I'm sure he'd be happy to answer the ones we haven't got around to today. I did see a comment in the chat asking whether this is being recorded – yes, it is, and we'll send the recording along with some further resources today. Thank you again for joining, Sanjay.
Sanjay: Thank you, everyone. I'll just say, if anyone has any questions, feel free to add me on LinkedIn – I'm fairly active there. We're on Instagram too, as Spice Kitchen and Retail Ready Academy, if you want to follow.
You can also email through our website, Spice Kitchen or Retail Ready Academy, and it comes directly to me, so if you've got genuine questions, do let me know. I've also got the Retail Ready Academy if you wanted to join – there's a way of getting in touch through that as well.
Beth: Perfect, amazing – thank you.
Sanjay: Thanks so much, everyone – I'll see you soon. Bye now.
Beth: Thanks, everyone. All the best. Bye.
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