Podcast

Jelly Belly Founder Turned Cannaprenuer with David Klein

David Klein invented the kid treat, Jelly Belly ® Jelly Beans in 1976 with only $800 to his name. No credit card, not even a diner’s club card.

He sold the company in 1980 and waited 40 long years to get back into the jelly bean business. Now, like many others, he is making his segue and making his mark into the CBD and hemp revolution.

In this episode, David tells us how he started the Jelly Belly ® Jelly Beans and the painful experience of losing it. How he patiently waited to be back in the business and how he’s creating a new legacy combining his 45 years of candy making experience in creating the best gourmet edibles. Learn from his experience and save yourself from committing the same mistakes.


When I came up with the idea for Jelly Bellies, I knew that it was too good of an idea not to go forthwith. – David Klein


Download The Episode Companion For This Episode

Some Topics We Discussed Include:

[5:45] – Getting back in the jelly bean business after 40 years
[14:12] – His wife’s pain and how he came up with the idea of making edibles
[18:07] – Key things that cannapreneurs and budding entrepreneurs need to understand when conceptualizing the business
[29:01] – Shares the pains of growing the business
[32:24] – David’s wholesale business and the history of Jelly Belly
[44:14] – Problems with contract manufacturers and the importance of having a contract
[53:21] – The importance of creating a name for your product
[1:05] – The people they want to help
[1:07] – The sad moment of selling Jelly Belly
[1:22] – Where to find them
[1:24] – Final words

People Mentioned / Resources

Connect with David Klein

Connect with Sonia Gomez

Transcription

Sonia Gomez: What’s up everybody? This is Sonia Gomez coming to you live from Denver, Colorado and today we are talking to none other than David Klein, the inventor, the founder, of the favorable kid treat inventor of the Jelly Belly Jelly Bean. He, like many, many others are making their segue and making their mark into the CBD and hemp revolution. This is another rock star episode of the hemp revolution Podcast, where we are exploring the adventures of the cannaprenuers and pioneers who are pushing this movement and this mission forward to bring the truth about hemp and cannabis to your doorstep so that you can make empowered decisions about how you want to treat yourself, the people that you love and the conditions you may be suffering from and if you are growing a business in this space, take notes because we are about to dive into some pretty sweet treats when it comes to growing your business. David, thanks so much for being with us today.

David Klein: That was the best introduction I’ve ever had in my life. Thank you.

Sonia Gomez: You’re welcome.

David Klein: I love that word can…

Sonia Gomez: Cannaprenuer

David Klein: I love that can, I never really liked the word entrepreneur I don’t know why but I like that cannaprenuer.

Sonia Gomez: Thank you Well, I mean this is it never fails me to hear incredible stories and people’s transitions and you know the why behind the by like, why did they buy into the CBD space? Why are they coming into this space and there’s usually some sort of incredible reason or story behind it? So, before we dive into all of the cool things that you have done thus far to get to where you are? share with us a little bit about who you are and your background and what you’re doing in this space now?

David Klein: Awesome. Okay. In 1976 I had $800 to my name, no credit card. Not even a Diners Club card back then. With $800 I started the Jelly Belly Jelly Bean. I was the founder of Jelly Belly jelly beans.

Sonia Gomez: They’re my favorite things in the world.

David Klein: Thank you. It was an amazing ride that lasted for years. The story behind it is available on our web page, which is spectrumconfections.com or it’s available also for free on Amazon Prime. Where it’s been on there for a couple of years now. We’re going to flex for a couple of years. Prior to that, it was on a documentary channel it’s appeared our documentary Candyman the David Klein story has appeared in festivals film festivals since the year 2010. All over the world. It was part of the Hot Docs, which is a great documentary festival in Toronto once a year. It was at the film festival in Utah. It was in Israel. It was in France. It was in Italy. I mean, this thing was in Puerto Rico. It was everywhere. And it’s had an audience of millions of people, and we’re very proud of it. My son and his wife were involved with it as well as a gentleman from New Zealand who worked on Lord of the Rings, Costa Botes, as well as Jennifer and Bert Klein. My son and his wife.

Sonia Gomez: Man, this is so incredible. So is Jelly Belly, a family business a family-owned and family-run a business or what?

David Klein: It’s owned by one man. Herm Rowland Now, we have not been involved with them since the year 1980. Actually, let me take that back from 1980 to 2000. Once a month they sent us a check. Would you consider that involvement?

Sonia Gomez: I mean, yes, but not

David Klein: I think the last time I was involved with them was 1980. They forgot the 20 years they were paying us once a month

Sonia Gomez: as long as they remember to send the check

David Klein: 1980 exactly the truth, guys.

Sonia Gomez:  I love it. Okay, so what have you been doing now?

Getting Back in the Jelly Bean Business After 40 Years

David Klein: what I’ve been doing, I’ve been waiting for 40 some odd years to get back into the Jelly Bean business. Can you imagine every morning of your life, waking up, and fans I need to get back into the Jelly Bean business. And you’re unable to for 40 some odd years until just a few years ago when we came up with the idea of introducing CBD into jelly beans. And we worked on the formula for over two years to finally perfect it. And we’ve been actually in the space. I like it when people say this space we’ve been in that space for you know the English call it range. Did you know that? No. You ever hear anybody from English talking about what your range is? Oh, yes. Or also in South Africa, they use the same word. Probably other places to the head English influence. Yeah, we’ve been in the range for about the past six months, and we love this industry. We love this industry asked me why we love this industry.

Sonia Gomez: Why do you love this industry? David?

David Klein: We just do. We really do. Okay, and what we’re getting tremendous gratification from. Obviously we’re not allowed to make any medical claims. Thank you government, but we get calls from people all the time. Lady calls me she could not make a fist. She had a couple of our beans. Manager. lady was in the doctor’s office. They couldn’t read her. Her blood pressure was off the chart. They couldn’t he couldn’t even post. She went into the ladies’ room. She had a couple of our beans in her purse. She took them. She walked right out. We were able to take this CBD has so many possible benefits. I’m sure you’re much more you’ve been in this space How long?

Sonia Gomez: So my husband and I have been in this Space collaboratively, you know, or collectively for about 35 years. His entry. His entry into this space came from being a teenager he grew up in Aspen, Colorado, all throughout Colorado, his family was in the oil and gas industry. And he was sort of the black sheep of the family and was always preaching about organic gardening you know, planetary sustainability, you know, eating healthy, so on and so forth and really enjoyed using cannabis. Well, they, you know, were

David Klein: Say no more

Sonia Gomez: they were not into it. And so she ended up leaving home really early, about 17, 18 years old going off to the Emerald Triangle to go to school and study with Paul Pitchford, who is one of the pioneers in holistic health and holistic medicine and, you know, found himself fully immersed in the cannabis culture of Humboldt County and made his way building his business by acquiring real estate I mean really from the ground up started by Yeah, I started by hauling bags of soil down thousand-foot ravines to grow cannabis in the middle of the, you know, forest up there and worked his way up to when to prop 215 was passed in California ’96 and at that time he started to develop artists and farms five to 25 acres with houses greenhouses, he put all of the SOPs and strains and helped families build sustainable business, cultivate a quality product and help them distribute it for the best price and so he was on the very much on the business side. My journey with cannabis started as a patient I was in a near-fatal sporting accident and that triggered this whole syndrome in my body that was similar to watching somebody get electrocuted by a cattle prod and even though I spent 10s of thousands of dollars and hours with the medicals with it traditional medical system I was getting worse and worse at the peak of my illness I was missing three out of five days of school I was 100 pounds overweight using seven different medications and you know was really losing hope and you know David when hearing these stories when you when conceptually you think oh you poor thing like something’s happening to you but the worst of it was not what was happening to me I could sustain the pain and the depression but the hardest part was watching what it was doing to my family to have that you know, in your environment, all the time

David Klein: I can only imagine

Sonia Gomez: is just awful. So finally we came in, in contact with a holistic neurologist who introduced me to my endocannabinoid system taught me about vital nutrients and micro-dosing with hemp and cannabis derivatives and strain selection and within three months, I was off my medication six months off all anti-inflammatories and within 90 Lost 97 pounds and be found like advocate for, you know cannabis and hemp health. And you know, I’ve had to battle the legal system, the medical system for my rights to safe access. And through that journey got invited to the Department of Revenue here in Colorado where I supported legislative development that would legalize cannabis, we owned and operated one of the first licensed businesses. And in the last two years, we’ve built a following of over 1 million people impacted over 50 million around the world with our education and we are committed to helping bring the truth to the surface so that entrepreneurs and patients alike and get connected can collaborate and we can really start to see the change that is possible with the growth of this industry.

David Klein: That’s so fantastic.

Sonia Gomez: It is and it’s most fantastic because I get to connect with folks like yourself who understand. I mean, I truly believe that you understand how to capture people’s attention and keep them committed to a brand I mean what you did with jelly beans that I mean these little hand I call again their pocket treats, right? Everybody wants a handful in their pocket. And for me, it’s like a microdose of happiness when I have a handful of jelly beans in my pocket, but now you’ve done the same thing with CBD. How exactly and I’ll tell you something. I’ve learned so much about the industry in the last six months. I didn’t know what infused mad or beans obviously are infused not sprayed on.

David Klein: I didn’t know milligrams I didn’t know any of that stuff. Each one of our beans is 10 milligram and we have three varieties we have a third Can you imagine 38 flavors and what it costs to store 38 flavors worth of flavors and colors. Gummy Bears what 6, 7 flavors. Yeah, so we have 38 flavours assorted. We have 38 flavors sour. So you are, we have seven flavours sugar-free trying to hit every market. And we just feel so happy that we’re in the CBD industry. We’ve had so much help from people that we can call a day or night, ask them questions, and they’re only happy to answer them.

Sonia Gomez: Well what made you want to jump in is this is a far cry from and you’re coming from a generation where the stigma associated with you know hemp and cannabis was as not a favorable one. So, what was it?

The Idea of Creating a Hemp-CBD Edible Line

We need to get involved with this and see how we can contribute our candy making knowledge of 45 years to make the best gourmet edibles in the market. -David Klein Click To Tweet

David Klein: That’s a great question. We were actually we were in Colorado almost three years ago. And we were staying at a hotel there. I believe it was Colorado Springs and Rebecca, my wife fell down to one of the nastiest falls, you’d ever want to see in your life. And she was in tremendous pain. And we happened at that time to be going by one of the legal stores there. So I said, You know what, let me go in there and see if I can find something that could help you. And I went in there, and she got almost immediate relief. It was edible. I believe they were cookies. Don’t remember the brand,s but thank you, Cookie company. And, for Matter of fact, I remember falling asleep almost immediately after eating it, and then when we got back to Florida, where we live. I said, there’s something to this, even though I have never tried it before anything in that realm. We need to get involved with this and see how we can contribute our candy making knowledge of 45 years to make the best gourmet edibles in the market. So we started with jelly beans. We were the subject of 1200 and 14 different articles in the press, including High Times, cannabis now. Fortune Magazine, Forbes magazine, Bloomberg. Every everywhere we were on TV, we were on a news CBS NBC Fox overnight. We were nationwide not only are we nationwide now, we’re selling our product worldwide.

Sonia Gomez: That’s incredible. So it would just happen overnight for you guys. I mean, for me was

David Klein: an overnight success that took 40 some odd years. Yeah.

Sonia Gomez: And it was your exit out of the jelly bean. Let me and let me just explain or understand that a little bit better. Did you have a non compete when you sold the company or was

David Klein: we have the contract to sell the company that I found it was in 1980, we had a 20-year non compete clause, which would never have held up in court, by the way, you can’t force somebody to not compete with you for 20 years. And because I signed it, and I knew right from the beginning, that I kind of challenge that in any court of law. I held to the initial contract because I think people should hold if they possibly can do something that they signed. So that contract was up in the year 2000. And then we made other attempts to get back into the Jelly Bean business which I Love and through various things that are going to be. In our next documentary, we’re working on Candyman returns, people will be able to see what happened to me that kept me out of the industry for another 20 years.

Sonia Gomez: So, David, we have a lot of people who are listening to this to this podcast right now who I call budding entrepreneurs, people who are looking at the industry, perhaps they have some success in working, you know, in a more traditional industry, or maybe they’ve already made the transition into the cannabis or hemp movement, and are looking to grow and scale regardless of where they’re at whether they’re considering their move in or already building their business. Everybody is faced with inevitable challenges in growing their business. You have established a certain level of success and building, building a company that a) you are really passionate about. That’s I think is something that a lot of entrepreneurs miss is following a passion and a purpose. And really, they aim for profits. And I’m, I’m really curious to hear from you. What are some key things that a cannapreneur or a new budding entrepreneur should understand or should follow when they’re starting or conceptualizing their business?

Key Things That Cannapreneurs and Budding Entrepreneurs Need to Understand When Conceptualizing the Business

David Klein: That’s a great question. It sounded like a four-part question, but it wasn’t

Sonia Gomez: explanation.

David Klein: There was a great question. Okay. What I would do if I were starting in this industry over I mean, it was only six months ago, but here’s what I would do. I would go to a place like Whole Foods, I’m sure you’ve been in Whole Foods. Have you? Okay, good. And I would spend about two hours there, I would take a shopping cart. So nobody questioned what I was doing. Okay. And I was I would go down I’ll file literally stopping at every product that was there. And I would look at that product truck Whole Foods probably at this moment does not have any items with CBD in it. Would you say that’s correct?

Sonia Gomez: No. they have they definitely have CBD products in it but

David Klein: with food?

Sonia Gomez: not with food. They have it with I was just gonna say they have it in the nutritional section right and select locations.

David Klein: Okay, but I’m talking about food items.

Sonia Gomez: Yeah, no not food items.

David Klein: I would look at all the food items there. Whether it’s ketchup, whatever it is. And I would say what can we add CBD to that would improve this product. That would be the first thing I would do. I would come up with a very catchy name for the public. I would register the domain so that nobody else could claim that domain for that product. Probably could not get a federal trademark right now on any food product with CBD in it. So you’d have to wait for that.

Sonia Gomez:  GW pharmaceutical own CBD.

David Klein: Yes, they do. We know that. And you know what? I don’t understand that. There’s a man that had hemp he made have burgers. What’s it right, what’s his last name? rose? Do you know him? Yeah. Richard rose. Mm-hmm. He made hamburgers. years ago. They weren’t the first one that put hemp that put hemp into a CBD happened to an edible. How did it How did they get a patent on that? Can you tell me that?

Sonia Gomez: I can’t tell you that but the US has had a patent on it. I think it’s our patents. I don’t know they’ve had a patent on it for a decade or so already on all cannabinoids period, GW Pharmaceuticals, patented CBD when they created up a dial x which is this watered-down version of a pharmaceutical-grade quote-unquote CBD isolate the specific for epilepsy. So there are all sorts of restrictions and biases. You know, there are all sorts of restrictions on what you can do and I anticipate a pretty significant shift in what we are going to be able to say and do around labeling with quote-unquote CBD. A lot of folks were advised that a lot of folks move towards calling it a full spectrum or broad-spectrum or whatever it is that you had. I heard a lot of that. Yeah, we’re, you know, relabeling the products so that it’s not using CBD because let’s be frank, the governing agencies are funded by big business and Big Pharma. That’s where they’re getting 80% of your right.

David Klein: We have to look at reality and what it is not what we want it to be.

Sonia Gomez: Yeah, absolutely. So there, you know, all you can do is stay ahead of the curve. And it’s going to be pretty and I was just talking about this in another interview how that we’re going to have the clash of the titans here pretty soon. And the industry is growing so quickly, where itself right now we’re self-governing, we’re interpreting the, you know, parameters of the law right now. It’s there are no real guidelines that allow us to be, in full compliance. And so we’re having to self govern. In some cases, it’s a mess. And in other cases, it’s a really beautiful thing because we have an opportunity to change the way that things have been done, especially in big business and, but as far as restriction goes, they can pull the plug on us that anytime,

David Klein: I believe Yeah, I think everybody is aware of that. I don’t think they will, but everybody is aware of that. Let me ask you a question. If I could you consider tinctures, edibles?

Sonia Gomez: do you know the word tincture indicates that there is an alcohol base and in which case it turns it into a supplement rather than a or a remedy rather than a nutritional supplement or revenue rather than and quote-unquote edible once you remove it and how you use a liquid or a quote-unquote dropper versus a tincture droppers are not alcohol base, they are tend to be like oil or glycerin base so you can administer them on top of the tongue rather than an alcohol-based tincture, which is generally most beneficial if you use it under the tongue like the holistic remedy. So tincture more on the supplement side whereas a glycerin base dropper would be considered an adjustable or edible. I think, don’t quote me on that. That’s not from any like,

David Klein: you know, no, I’m not going to quote on that. But you know much more about the industry.

Sonia Gomez: I’ve sat in rooms

David Klein: been in it for a long time, but You know, a lot of people are in an industry they have no idea what’s going on.

Sonia Gomez: Yeah, they have no idea. Honestly, I don’t think to the consumer that it really matters we’re putting. And I talked about this with companies all the time who are putting so much emphasis on how smart they are, how much they know. And to me that the humility that or how humble the consumer actually is for me, the average consumer is like Homer and Marge Simpson, which is why I think a brand or product like yours is so incredible because it knows no age knows no boundaries, it’s relevant and reliable to a little person all the way to a grandma and grandpa right. This is something that you can find in every household and it would have a feel and be comfortable and safe and not have this crazy stigma associated with it. Whereas all of this other stuff most of the time when I’m interviewing folks, it’s this battle of like, how smart do I sound? How much do I know? How much can I share? And people don’t. They don’t care if it’s a tincture or a dropper, they don’t care. They just want to all they want to know is is it going to work for me? Is this is gonna work and why should they pick this over aspirin? So we keep it. Nice. Excellent.

David Klein: I totally hear you on that. We’re coming out with a new product within the next couple of days. The hurricane kind of set us back a little bit.

Sonia Gomez: But you’re still in your house.

David Klein: Yeah. We were waiting for the interview.

Sonia Gomez: I’m going to that’s my bragging rights for all of time now. Well, I’m stayed behind the hangout with John Travolta and waiting for my interview

David Klein: event which is true, and we’re fine. We’re fine. Thank you. We’re really good. We’re coming out with something called jelly bean juice and it’s going to be a liquid tincture. And they’re going to be in flavors. Like the original jelly bellies that I created. We’re going to have a black, you know, do you like black licorice?

Sonia Gomez: I’m not a huge fan of black licorice. I actually like red licorice better.

David Klein: I gotta tell you something because out there somebody wrestling loves black licorice. Yes. And if you love black licorice, and you consume too much of it. It’s my belief and you can look us up. It’s my belief that it can not everybody, but it can rob your body of potassium. I know in one case, where a young man consumed seven ounces of black licorice from New Zealand and had to be rushed to the hospital because he had very little potassium in his body. So if you’re going to eat some black licorice have a banana afterward, please. We’re going to have black licorice. We’re going to have buttered popcorn, all the all-time favorite, jelly beans flavors that I created. You know,

Sonia Gomez: I have to be honest about this and I don’t know if like my kids going to kill me later for saying this and that’s okay. She’s two years old and we sat her down with one of those eggs full like on Easter, we sat her down with an Easter egg full of jelly beans and she sat down in the grandma’s couch feet, not even barely hitting the edge of the couch. And she sat there in her big old fluffy dress and just picked every single booger flavored Wow. Jelly Bean out and I was you know, some kids pick out the strawberries and pick kids to pick out all of them. So I’m like the cherry I always go for like the lemonade when I think right yeah, but she sat there and she picked out and if the green one Wasn’t booger flavor and she’d spit it out and so adorable. She picked out every booger flake, is there going to be a booger flavor jelly juice?

David Klein: You know what? Probably not. You never know. I have found out my 45 years in this candy industry to keep an open mind as much as possible because you never really know what’s going to work and what’s not going to work. And we just love the industry we love. We’re trying to come up with new edibles that have never been done before. And we’re not just trying to copy what’s been done before. And we just love this whole that people in this business. We love the customers. It’s a whole different industry than the regular candy industry.

Sonia Gomez: Yeah, yeah, absolutely. Completely agree with that. So David, will you share with me a little bit about about the the journey of growing the this incredible business we know that the CBD space is amazing as it is it also comes with its own unique set of challenges, no matter how big or small or how significant or established or prepared an entrepreneur is, when they come into this space, almost none of them are prepared to troubleshoot through the challenges that are only unique to this industry. For instance, banking, advertising, marketing, and I understand that with your history, maybe some of these were not such a big challenge. But what were some of the hiccups in your, in your years of preparation to make your entry back into this space. What were some of the challenges that you faced?

The Pains of Growing the Business

David Klein: Right, great question. The marketing was easy part. We had I call it up Our first article was cannabis now. Yeah. Our second was a nice lady, a very nice lady from high times. Sharon, Sharon Letts. And they said, Yeah, said, this sounds very interesting. You’re the guy that founded jelly bellies. And I said, Yes, I am. And they said, well, when can we do an interview? I said immediately, and then it just spread from there. So by me saying, I’m the inventor of jelly bellies. And by the way, we have the legal right. For anybody selling the product to say that that product was made by the man who was the founder of jelly bellies. Wow. Because it’s true. I mean, that’s the truth, but that we had problems along the way we had an Instagram account, with all of a sudden, was suddenly removed without any notice. And that that was kind of traumatic. We had Federal Express tell us they didn’t want our business anymore. And that was kind of traumatic. I mean, you know, what could, we had, we had all kinds of issues like that. But you know what, we’re still here. We’re still smiling. We found ways around it. And we’re very much in business. We really expanded our business three times. In the last couple of months. We were back. ordered. You wouldn’t believe we were at the point where we were afraid to answer the phone. Literally. One day, we had 10,000 hits on the computer. Oh my gosh, and not 5000 but 10,000 hits. We’re lucky that computer didn’t crash the phone was ringing even at three in the morning. And every time I went by them, I picked him up. I said Spectrum Confections, how can I help you? And they said, What are you doing answering the phone at three in the morning? I said because I love talking to people. And I love this business. And that was crazy. They thought I was joking when I said I’m the man who invented Jelly Belly

Sonia Gomez: to invent jelly bellies. Can you take me back into the lab? I mean, how did you come up with those little perfectly textured nuggets? Okay.

David Klein: I always love jelly beans throughout my whole life. As I was going to law school, as I was walking on Sixth Street, there was a store there by the name of Alan Works Confections. Right before you got to Vermont. Are you familiar at all with that area?

Sonia Gomez: Slightly and not as much as I’d like to be but slightly

David Klein: Okay, so I went in there, and they had a $2 package of jelly beans. And I bought them and I started eating them on my way to law school. It was about 11 o’clock in the morning. And I said to myself, you know, this is a product right here that are universally recognized. Everybody knows what a jelly bean is. Just like everybody knows what a gummy bear is. By the way. Gummy Bears are one of the best selling edibles on the market. And our product can ship anywhere in the world without melting down because there’s no gelatin and a jelly bean. Most people think there’s gelatin in a jelly bean. There’s no gelatin on our Jelly Bean and because we have 38 flavors and it can ship anywhere. It’s really a dad who has a lot of advantages. So anyway, here I am eating the jelly beans and taking them myself someday. And not the far too far distant future was about four years later, I said, I’m going to create a jelly bean. And then when I was talking to a buddy of mine on the phone, we were talking about business and how when you have a business, that you’re starting to talk to other people about what you’re going to be doing and run ideas by you off of each other. And I said, I think I’m going to open up, Happy Days were on. It was up Thursday night at eight o’clock. Rebecca my wife was breastfeeding or youngster at La Leche League. And while I was watching happy days while she was God, and I was talking to a buddy of mine. It was about 15 at night. And I said I think I’m going to open up a jelly bean store. And he said, What do you mean a jelly bean store? Nobody’s ever done that before. I said that’s reason enough to do it. He said, Are you going to be Karen job rakers, licorice rope, things like that? I said no, I don’t think so. That would take away the uniqueness of it. I suggested the Jelly Bean store. So I came up with the name Jelly Belly was inspired by Lead Belly. Lead Belly was a singer. And I heard his name once on Sanford and Son. They talked about Lead Belly and that name stuck in my red fox was on the stars Sanford and Son and that name stuck in my brain until I needed to come up the belly part Lead Belly later found out he went to jail It was either for murder or attempted murder. So Jelly Belly was actually named and the name was inspired by a man who went to jail for a long time. Which I find kind of interesting Wait What was I prior to that what did you ask me?

Sonia Gomez: My question was take me back to the lab and how you and how you got How did that tell Jelly Belly even come about?

His Wholesale Business and the History of Jelly Belly

Always when you're pitching somebody have the product with you. Actually, it's best to bring in a whole case. - David Klein Click To Tweet

David Klein: Okay, so I had to find a store to sell them at I was in the wholesale that business back then. I started with Walnuts Halves and Pieces. 25-pound cases amber light, amber light walnuts, have some pieces. And for three months, I only had walnuts to sell And then slowly but surely I added elements or as they’re pronounced in Chico Amens. They pronounced some amens there for some reason. You know anybody in Chico. And then I started adding cashews. Do you know why you’ve never seen a cashew in a shell? Why? The sack has some kind of poison in it. So you cannot sell it on the shelf. Whoa, no, I didn’t know that yeah, most people don’t. So I started selling Famous Amos his pecans or as he pronounces empty cans. And I started selling him for his chocolate chip cookies. I went into his first store, which was at the corner of Sunset and Promosa and I walked in And I said who buys your pecans here. And they sent me into a man by the name of Sid Ross. Whose wife I went to high school with. Just that a random curiosity like that. And anyway, I said to him, I would like to supply you with the best pecan in the whole world out of the shell 30-pound case from that tree and somewhere in Georgia and he said, Let me see a sample. Always when you’re pitching somebody has the product with you. Actually, it’s best to bring in a whole case. When I went to a farmers market to show them the walnuts I went to, to the man there that own the biggest candy store there Carson and rock was my first sale actually. And I said to him, I’ve got fantastic walnuts, they’re a new crop. It’s nice if you have a new crop when you’re showing the walnuts, especially if the price has gone down from the old crop and the old crop walnuts were around $1.45 a pound. I was able to sell him a new crop because there was a huge, huge crop that year. Most people don’t realize there’s only one crop a year on nuts. And if there’s a lot of big crops, the price comes down. I was able to sell him those at 98 cents a pound. He said let me see them. So I brought them in. He was on Third Street right across from farmers market had a blue Jagwire in the back. Never forget that car. And he took a handful out of the box and he took them to his nose and snip then he did a sniff test. He said I’ll take 100 pounds. And that was my first sale in the nut business. $98. And so that’s how I started in that business. But when I came up with the idea for jelly bellies, I knew that it was too good of an idea not to go forthwith. I didn’t have enough money for a store. You know what anybody can make excuses that they didn’t do it because they either didn’t have enough money or enough time to create this business on the side while I still kept my net business open. Because I had people like famous Amos that needed an order of 40 cases, delivered once a week. And you can’t just say to them, goodbye. I’m in the Jelly Bean business. So while I was building up the Jelly Bean business I still maintain my business and I must be selling a lot of candy stores. They’re not because they were making. They were making candy with the nuts, budge. Turtles. By the way, Turtles is a registered trademark. And everywhere you go, they’re using the word turtles. They’re violating the federal trademark law. That’s why you see a lot of companies. They don’t call them turtles, they’ll call them something else. I could not give the jelly bellies away. In the beginning, I brought them to my existing net customers. And I showed them the product. And the very first question even before they tasted it, I think I would taste something first before I asked how much they were was how much are these? And I would say $1 a pound. That was our price for the stores in the beginning. I was paying 59 cents a pound to my contract manufacture. One day I called them up after the Product got very successful. And I said to them, it’s time for you to go up 10 cents a pound. And my contract manufacturer said, say that one more time. I said it’s time for you to go up 10 cents a pound. And he said, In all the years I’ve been in business, nobody has ever asked me to go up in price. What’s your angle here? And I said, there’s no real angle, making money on I want to make sure that you are and he said, we have 40,000 pounds, coming down to Southern California. That’s where we were back in those days. We have 40,000 pounds coming down tomorrow on Crescent truck line. Do you want me to go up on those, or do you want me to wait? I said go up on those. It was an additional $4,000 that I paid on that one order. I said, by all means, go up tomorrow. There’s no point of I’m the one that asked for the price increase. Please do.

Sonia Gomez: What was your method behind? Like, what was your reasoning behind that most people are trying to find a better deal.

David Klein: I didn’t, I always believed in the opposite of what everybody else did. I believe that if they were happy, I would get price. You got to remember one thing, they made 100 other items in their factory. I knew that someday I would be using all of their capacity. I wanted to make sure that it was profitable for them to make this product versus other products that they were making in their factory. And I figured a time of power was a pretty good increase. So it wasn’t just an altruistic point of view. I figured that if they made money on it, they would keep on producing the product.

Sonia Gomez: So you have the foresight to be able to you had that sort of I it’s like a gut instinct that says I want to make this a win-win situation.

Problems with Contract Manufacturers and the Importance of Having a Contract

There're some things you do in life that you don't like but you doing. - David Klein Click To Tweet

David Klein: Absolutely. When I was in People Magazine, I had a feature article about me. It was the issue that had OJ Simpson on the cover. That’s now worth a lot of money, by the way, because of that. I bought 200 copies off the newsstand. And I have one left. So when I was in People Magazine, I was in a bathtub of jelly beans in the back of my truck that I delivered pecans and walnuts and almonds, and it was in South El Monte, California. It was over 105 degrees that day. I was in a bathing suit that sweat from the jellybeans caused them to stick to the hair on my chest. It was probably one of the most uncomfortable feelings I’ve ever had in my life. But you know what, there are some things you do in life that you don’t like but you doing and when the owner, my contract manufacturer who was called Herman Goelitz back in those days when he went to the newsstand, along with his sales manager, Richard Schaefer, and picked up a copy of that People magazine article. He turned to rich, who, by the way, is a very good friend of mine even today. And he said to Rich, David has just ruined company has just ruined the company by posing like this, okay, you wouldn’t be so far

Sonia Gomez:  I’m with you. I’m 100%

David Klein: I ruined the company. My philosophy was you got a full page written up in People Magazine, followed by another full page of a picture of yourself in a bathtub of jellybeans. That’s not ruining the company. Anyway, he told him, here’s what I need you to do tomorrow. And this was without telling me by the way. By the way, very few people know this. I would say less than a handful. He told him Go ahead. They were making candy corn at the time selling it at 28 cents a pound. He said I want you tomorrow to call all the rebaggers. Rebaggers or people that take somebody else’s product. And they stick it in, in a bag under their own name. Yeah, it’s kind of probably equivalent to white label. Which I know you know. I know you do. I know the down. So they went. His sales manager went out started calling on people. Now here’s the story that candy corn was made on the same mogul that the Jelly Belly was you cannot make candy corn the same time you make the Jelly Belly. So they signed up without telling me any of these. I’m out there promoting the product on the Mike Douglas show. flying all over the country. AM Los Angeles, AM New York. I was at AM la five times with Regis Philbin and Sarah Purcell and Cindy Garvey one time, Steve Harvey’s, the ballplayer’s former wife. So I was not informed that I shouldn’t be out there selling the product. Meanwhile, I make I’m taking orders from everybody, because of all the publicity I generated. And I’m wondering why the orders aren’t being filmed. It was probably one of the worst episodes of my life, promising people products. Not knowing why the factory is not making it. And then having those customers think that I’m favoring somebody else when I’m just literally taking them on the order that they came in. It was a terrible, terrible experience. And then, based upon that experience, I decided in my mind, I would never rely on a contract manufacturer again. If I could help it, I don’t know if you’ve ever seen cookie and cream malt balls, or a mint cookie and cream malt balls? I created that product. I call it up the company and I over the phone. And I said I want you to make for me a new malt ball. In those days, I never did anything with contracts with anybody. I trusted people. You know, I never really did anything with contracts. We’re talking about the late 1970s, early 1980s. Yeah, sorry, call it a company that made the marbles and I said I want you guys to make me a cookie and cream mall pop I want to make with Oreo cookies. And I wanted mid cookie and cream all ball and you guys can market them. I want to market them myself. But every pound I want 17 cents a pound royalty. And the owner said sound, the sales manager said sounds great. We’re going to do it. It was the sales manager. And every month I got a check from them. every single month I got a check. 17 cents a pound. One month I didn’t get anything. So I figured you know they were laid pan. They didn’t have the money. Who knows. the second month, nothing. Nothing in the mail. The third month, I decided to call them and I said to him, I did not get a check this month What’s going on? Well, you’re not going to get it anymore. Okay, how do you figure that? He said, Well, the man you made the deal with is not here anymore. I said, Okay, the man that I made a deal with is not there anymore. You sign the check, it wasn’t him. He said that has nothing to do with it. You’re not going to get a penny anymore. So it was that lesson plus the Jelly Belly lesson. I decided we needed to control our own destiny, if at all possible. So all the people out there that are thinking about having somebody make the product, either have it in writing with them in a form of a contract, spend 1000 bucks if you have to do an attorney, or whatever it’s going to run. Attorney probably won’t do it for 1000 probably 15 And have that thing in a contract. Because if the product gets very, very successful, nothing’s really preventing them from one going up in price to you and saying that their costs have gone up, either you again, the unions had a strike there, and they had to pay higher union wages. There are million excuses to raise prices. So that’s a very valuable lesson that I learned the hard way.

Sonia Gomez: I absolutely love that. You just went into the detail around that because it’s, it’s hard for somebody like me who sits on the peripheral, but advises through the challenges to articulate the importance of managing or stabilizing your supply chain. I mean, owning the process from soil to sale is the ideal situation to be a first a fully vertical integrated company with a lot of options. printers are not in the space where they can invest that heavily in each one of the facets of their business to make it that way. So what are some of so ideal situation is having a contractual agreement with a manufacturer that you can trust to deliver the quality and quantity of product when you need it.

Creating a Name for Your Product

David Klein: So very nicely said that that’s really important. Another thing is they’re trying to establish a product, come up with a name. That’s a catchy name that hopefully doesn’t have. You don’t want it to have 10 names is imagined inside your hair smells delicious or something like that habit. Preferably, two words like Jelly Belly, and it’d be nice if it rhymes. And a name that you can get a domain on is very important. A name. That’s all So available on Instagram. I have you heard of Instagram kicking other people up?

Sonia Gomez: I have heard of Instagram kicking other people off. I have heard

David Klein: it but they don’t kick everybody off. What’re their criteria for kicking somebody off?

Sonia Gomez: I don’t know. I wish I didn’t know that because it’s quite random. Same thing with Facebook. It’s like they’re like, and I don’t mean to be sexist at all. But they’re like women who have PMS saying there, they just have mood swings and all of a sudden you’re exiled. And then you have to go through this whole crazy appeal process. And it’s frustrating.

David Klein: Have you known anybody to get back in with them?

Sonia Gomez: Yeah, you know, that’s actually one of the areas so we did not start we’re actually still not an agency. We have turned into an advisory group and have developed a program called the Emerald circle mastermind, which is an annual membership that companies can pay to get access to tools. Resources relationships and my husband and I have taken it upon ourselves with our years in the industry to pull together our network. So that when companies are trying to find reputable sources for, you know, whatever biomass or you know, contract manufacturing or whatever it is, we have a network of people who have established experience reputation, you know, are trustworthy in the marketplace and are not just in it for the profits that are actually there to like, help people get into a flow with their companies. So, through this process, I

David Klein: love that I really really love that. You know, we got a call from somebody, I won’t tell you where they were, or their name, but in talking to them. I told this person I said we’re not profit-motivated to the obviously up to make money to stay in business. Yeah, that’s the main reason we started this business. And they said, Well, I’m not that way. I’m in it for the money. And I said You know what, I’m gonna have to hang up on you right now. I don’t really want to do business with you. And I start, I turned down something that would have probably been a huge sale. I don’t want to do business with people that are that way.

Sonia Gomez: I don’t either. And it’s difficult, you know, when especially if, you know, money has to be tiered. Here’s my thing about income. It’s a direct reflection of the impact that you’re able to make and how much how much leverage you have when bringing value into the marketplace determines the amount of impact that you’re able to make and will also be the law of reciprocation or reciprocity that the universe operates by will arrive in the form of income and It will be a bonus to see the ripple effect of your work that will come with positive reinforcement behind the paycheck. And most people that are getting into business think about the money first they have their business plans, they have their profit margins, their p&l sheets, they know we’re all of you know, the list logistics of this, but there’s no soul to the company anymore. And so when I

 

In any business I started, I figured if I gave the best service if I gave the best product if I work seven, eight days a week, which I had to do in the beginning, if I did all that the money would eventually flow. - David Klein Click To Tweet

David Klein: You’re so right, like so, right, I never believed in any of that. Any in any business I started, I figured if I gave the best service if I gave the best product if I work seven, eight days a week, which I had to do in the beginning, if I did all that the money would eventually flow.

Sonia Gomez: You know, I have to 100% agree with you. And so the way that we’ve talked about money and you know the profitability of your company and how to how to achieve these certain milestones. You know, number one is starting with and this is just to give you insight I mean I’ve learned I’m over here like scratching out notes because the important the wisdom that comes with your experience and how you’re telling your stories and you know it’s these little details and there are three things I’m really taking away from what you’re sharing right now David and number one is relationships. I say this all the time how you do one thing is how you do everything earning trust getting trust is a gift to the first time but once you compromise the trust it’s in nearly impossible to get it back it played out

David Klein: you’ll never get it back.

Being in integrity and how you do one thing in a handshake deal whether or not you have a signature on a page is you know going to determine a lot around your success people. - Sonia Gomez Click To Tweet

Sonia Gomez: Yeah, you’ll never come back you never get it back. You may find forgiveness in it but to have that purity of the relationship as it was in the first handshake will never recover once the Trust has been compromised. So how you do one thing is how you do everything and being absolute integrity. Your own behalf on behalf of your kids, your company, whatever it is, being in integrity and how you do one thing in a handshake deal whether or not you have a signature on a page is you know going to determine a lot around your success people, people will know who you are and how you are right away based off of, you know, how you end up doing things. So, and this business, especially the history of cannabis business, is all relationships based. You got to know a guy, you got to know a guy to get your stuff you got to know guidance, to know where to buy it all. You got to know somebody,

David Klein: right? If any events missing, it doesn’t work.

Sonia Gomez: It doesn’t work. And you can you can’t This is not something that you can buy your way into and have longevity, there really has to be a passion behind and a purpose behind the profits that you’re aiming to make. So in anyways and the Emerald circle mastermind, David we created it because we knew that there were far too many businesses out there. That, you know, what we call budding entrepreneurs who are trying to find their foothold in this industry. And we’re losing their shirts to, you know, bullshit artists caught contract manufacturers who weren’t, you know, who were falsifying reports or, you know, do just doing things out of integrity, and it compromised the reputation of the industry as a whole and not everybody’s in a position where they can, you know, doesn’t matter how much money you have no one’s in a position to lose precious resources, not when you’re trying to make the impact,

David Klein: right? Absolutely.

Sonia Gomez: So we created the Emerald circle to give people a safe place to come around and network and get access to those key relationships. And it’s been

David Klein: brilliant. What’s your what’s your website?

Sonia Gomez: So the theemeraldcircle.com

David Klein: simple enough I like that.

Sonia Gomez: Yeah, thank you and

David Klein: great domain, don’t lose that domain. We will not

Sonia Gomez: lose that domain. It’s been really cool.

David Klein: Always renew that domain when it comes up for renewal.

Sonia Gomez: We Well, it’s been a really cool experience, you know, because again, what I was saying was we didn’t start out as an advisory company, we didn’t start out as we’re not, we’re still not an agency. But because we have the captivated audience, this huge consumer audience and marketing and advertising have been such a challenge for the people in this industry, we started to vet out these companies to make sure that they were operating at a level that we could get behind. And we started to discover that even if we did send them, you know, a million clicks or 1000, clicks or whatever they didn’t have, what they needed in place to receive that kind of traffic or exposure. So we started to get them you know, that you need a sales funnel or a website or a domain or whatever it was, that I needed to fully benefit from what we had to share with them. You know, we started to put those things in place and it just naturally evolved and I share with my members all the time, come to the table wondering how to solve a problem instead of how to get the process. If Well, if you follow if you

David Klein: can get Can you put that somewhere on a wall where everybody can look at that once a day? I’m not joking, I’m serious.

Sonia Gomez: Yeah, I am. I’m going to put it on a T-shirt,

David Klein: not a T-shirt and send them a T-shirt.

Sonia Gomez: I’m going to send you one too because I sell by the way. Sounds like we have a lot in common about around the mentality and you know, I say this all you cannot buy your way into success. Eventually, they’ll be too many holes in the fabric for you to fall through if you operate outside of this. And so the things that I share with them is have a passion and have a purpose and the profits will come from those things. be socially and economically responsible to your community. And to your family, because that’s where legacy is created. No matter how much money you make, the legacy that you leave behind will show in the way that your children and grandchildren duplicate the year results.

David Klein: I love that. We started a division of our company called Candy Man Cares. Candy Man I’m the Candy Man Cares, care. And our purpose behind that is to give back to people that really really need our help.

Sonia Gomez: How do we get involved with Candy Man cares?

David Klein: More details will be coming in the next two to three weeks.

Sonia Gomez: Okay, awesome. I want it I want to just share this with you. Because we created a similar thing we do we have two facets of our business. Now. For the longest time, we didn’t even monetize our education. We just were giving it to the communities because we knew there was such a gap. And then lot just last fall, we launched The leaf Academy which created a certification program for people to understand how to select and use CBD and cannabis-based products to improve their health and functionality, created a natural health coach certification around it. And we’ve had just the most incredible success from our certified folks and a couple of nonprofits popped up in my scope that is rehabilitating nonviolent offenders who have been put into jail for cannabis or hemp related offenses. And they’re not they have felony charges and are trying to rehabilitate themselves into their communities. And so we started to donate these licenses and education and business training to these nonviolent offenders who are coming out of the prison system and trying to integrate back into society and set to date we’ve made $100,000 donation to a few different of these organizations and it, I’ll tell you that the thank you letters that I’m getting from these folks who just need a chance who need an offer, just like you said, people who need our help. They sometimes somebody just needs to know that somebody is willing to help them. Right? You just need a chance in life. Oh, absolutely.

The People They Want to Help

David Klein: Well, I’ll give you an example of who we are going to help. There. where we live. About a half a mile away. is a man who lives in the woods. And I’ve talked to him so many times. I wanted to get him an apartment. Get a motel for him. I wanted to he’s in the woods. He lives in the woods in a tent.

Sonia Gomez: Is it by choice? How long has he been there?

David Klein: over 10 years. Is it by choice that he stays there? Is there something happening for him? Hard to say? Very Hard to say. But you know what? During a hurricane, a man like this should not have to be in the elements like that. Yeah.

Sonia Gomez: And so you’re gonna start to work with the… let’s call it?

David Klein: Well, he was he’s been thrown off of property after property. Because whoever owns the property doesn’t want him there anymore. So we are looking at another piece of property, where once he’s on that, nobody will ever kick him off.

Sonia Gomez: No, so you’re giving a place for these folks to belong? Yeah.

David Klein: We are. People have to do things like that. It just has to be done. Or otherwise, nobody will do it. Yeah.

Sonia Gomez: I always encourage folks and I’m like, my heart is just totally full and in my conversation with you like I’m completely lost track of time. I’m hoping that I’m being respectful of yours. Because I’m just enjoying the company and being in being in your good company. It’s not too often that I get to speak to established entrepreneurs who will a, you know, take the time be to share the wisdom and learning lessons of their growth so freely and at the same time have, you know, you just you have this very comforting. I feel like I’m sitting in my grandpa’s living room right now. Ah,

David Klein: that’s, that’s so nice. So, you have a little bit more time to tell you a little bit more about a guy with Jelly Belly.

Sonia Gomez: Yes.

Selling the Federal Trademark of Jelly Belly

David Klein: Okay, one day I got a phone call. And on the other end was the owner of Herman Goelitz , my contract manufacturer and he said to me, Dave, I’m flying down there tomorrow we were in Southern California. He was in Oakland at the time. And I said, Fine, I’ll meet you at the airport. Which airport are you? Are you flying in Burbank or LAX? He said David’s not that kind of a meeting. And I said, Okay. I said, What kind of a meeting is it? He said we’re coming down there to buy the federal trademark. And we’re not gonna leave until we do

Sonia Gomez: for Jelly Belly.

David Klein: Yeah. Cuz that’s what the only thing we owned was the trademark. He made the product for us. And I said to him, okay, so they came down. He probably had 12 people would have

president vice president account Lawyer airy anybody that he could find? And it was just me and my partner kind of like a David versus Goliath type thing. And they had made it known. Prior to the meeting one of the people that was I was close to at the, at his place. I said, What happens if we don’t sell to you guys when you come down and he told me that if we didn’t sell that they were going to go back to Oakland, change the name. From Jelly Belly to another name, cut me off, cut me out of the picture completely. Never make another been for me. And they knew that by the time that got the court, they knew I would have sued them. Obviously. Because even though we didn’t have a contract, we had a contract by action. And they knew I would have sued them. They said I would have been broke by the time that got to court, which is so sad how long it takes to get to court. I hope you never have the experience of having to get the federal court.

Sonia Gomez: I hope I never have that experience either. But I’ll tell you what, I have this awful this taught me my learning lesson well enough. I was renting. It was the first time I was moving in with my boyfriend because I was much more conservative than many of my friends. I didn’t want to move in until I was engaged. And we’re moving into this place. We live there for a year the landlord was just awful. And when we decided to move out like he raised our when we went to renew our lease to stay there he raised the rent $1,000 So we were like,

David Klein: about a month. Yeah, that’s crazy. Who in their right mind does that?

Sonia Gomez: I know so we were like okay, we’re just going to move out and so we moved out and on we had 24 hours still to get out I had left like some items in the kitchen and I had left some, you know, just random stuff in the house to go and clean out the next day before the cleaning ladies were coming in. And he had come in and that 24 hour period changed the locks locked everything down, demolished the kitchen, taken pictures and submit in 24 hours and submitted it to court and sued us sued as saying that we left the house and l repair and destroyed profit pro I don’t create such a crease. So he sued us for $15,000 and still on my credit. It’s like the most incredible thing ever. And I so I told my husband I’m like I never I’d like mortified, right. I want to do it again. He was like a badge of pride. He’s like, you know, every on every successful entrepreneur gets sued three times in their career. This was

David Klein: great. We had a situation similar to that. When I created the Jelly Belly founded the Jelly Belly. We were living in a rented home $300 a month in temple city on Sparkling Avenue. And after Jelly Belly came along, we had a little fun Bert, who went on to be the producer or director always get mixed up that Producer Director I don’t know that Kenny mad. And so my wife said, you know we really and I knew the man that owned the home would spring for it. So I said let’s just put it in. So we put in the carpet and then you know how you put confident and you need drapes because of the carpet. Yeah. So we put in at our own expense, we put in drapes. And then she said you know that kitchen linoleum needs an update. So we did that. And then we did an update in the bathroom. In those days. We probably spent between eight and $10,000. The landlord came into our house one day and he looked around, he said, You’ve done miraculous things here. This is fantastic. He had the nerve to call me the next day and said, you know, the place looks too nice for $300 he went up to $350

Sonia Gomez: Oh my God.

David Klein: And then when we moved, he called me up. He said You know you did some damage to my raspberry, raspberry bushes or whatever. They are plants. I don’t know what they are. He said I think you’re going to have to send me some money. And I said, how much are you looking for? He said $50. And then I said to him, I don’t know if you realize it or not, but we put a whole new carpet and all new drapes, all new linoleum, all kind of at our expense. I said I think we’re about equal. He didn’t know what to say. And I said, Have a good day. So we’ve had similar experiences with landlords.

Sonia Gomez: You know, it just never fails. And I think this is a semi. So I want to before we close, I want to hear how that meeting went. When everybody came down from the manufacturer and you decided you knew you needed to control the supply chain? Was that the point where you got pushed out and had to sell your company?

David Klein: Yeah, that’s what happened. We were sitting around a table. Huge table. And her mom, who still owns 100% of the business, brought a big chart out. And he was hiding that, the front part of it. And he said, Dave, how much money do you think I have invested business-wise in Jelly Belly as of this moment. So I gave him a figure. And then he turned the poster board around. I was with $5,000 of the figure that was on there. And he said pretty good. I said I know what you’ve invested in this, Herm. But I’ve invested day and night, traveling all around the country, not being able to spend time with my kids. My family Staying at strange hotels around the country flying, which I hate doing. All this has been to promote the Jelly Belly name. And anyway, what they came up with was the craziest plan. I mean, in their right mind could ever come up with. They kept paying set the status quo of paying us what we were making at that point. In terms of future royalties, with no growth, I had there was a cap at 120,000 pounds per month at 17 cents a pound. And once that point was reached, which would be appropriate for a three-fifth day of production, the rest of the month was all theirs. And my hands were tied at that moment. A lot of people said, Why didn’t you go somewhere else and have that makes it bean for you. At that point, there were only two or three other manufacturers that were capable of supplying me with quality. If you have one product, you can’t suddenly substitute a lower quality product. And there was nobody at that time that had the technology or the capabilities of supplying, see when I requested my parameters for making the product. I wanted one to be flavored on the inside, as well as the shelf because I wanted to do something differently. And that’s a good point to anybody out there. Don’t just copy a problem. If you want a product, change the product for the better don’t product and be a Me too. So I wanted this shell on the outside. Like we had the watermelon baby, it was two colors, green and red. I wanted two flavors of possible two different colors as possible. I wanted all that to make to be different to be differentiated from all the other ones. So we could not turn to anybody else to make their product. We could have walked out of there and see if they were bluffing about cutting us off. They certainly didn’t look like they were bluffing. So we sold out to them with a 20-year non compete clause which is totally Ridiculous. As a matter of fact, I’ve been advised by attorneys that the 20 years non compete clause was illegal. And it went to the heart of the whole contract. All I can tell you is it was not a good experience. One minute I was Mr. Jelly Belly and the next I went from somebody to nobody in 10 seconds. And then after we sold out to them, my signature was on the back of the beans. They changed my signature to a computer-generated signature. They didn’t even want my real signature on there.

Sonia Gomez: So that that little signature on each one of the beans is not yours anymore.

David Klein: No on the back on the bag of beans, the bag Yeah, they took my signature off and put a computer-generated signature on that. The whole thing wasn’t was not good. And then for 40 some odd years, I wanted to get back in the business and anything they could do to prevent me from getting back in the business they did.

Sonia Gomez: So now you’re back in. Right now you’re back in each. I mean, I’ve been looking around for because there’s a lot of people interested in my networking, creating and infused Jelly Bean, whether it’s for cannabis or hemp. And we haven’t been able to find one that isn’t totally gouging on the prices. And I’m, I’m just so So tell me a little bit about the Jelly Bean. You said each bean is 10 milligrams or you use one of us

David Klein: that we are so proud of, that we make by the way in very small batches to ensure consistency Third Party testing. We don’t make like 100,000 pounds like gummy bears do. And of each one is 10 milligrams made with Kentucky. And we’re very loyal to our supplier. Not a day goes by that somebody tries to give us a better price than a and they’re charging us and we’re trying to be loyal because they took a shot with us in the beginning

Sonia Gomez: That’s amazing. I love it. So where now Can they can and I will are going to post all of your links and everything around here for the documentaries as well as websites and all of the things but I want to just hear you say where can people find you.

David Klein: Okay, they can go to their local CBD store. We sell a lot of CBD stores that are generally putting 10 of our beans in a package in a container and the average price is $20 which is $2 a base which is a very fair price. So they can go to their local CBD stores and request that and we also have a web website spectrum confections.com confection with an S at the end. They can watch our documentary there and if they sole desire, they can buy a bucket of our beans. There are 800 beans Per bucket, which is quite a bit but we decided we’ve had so much business, we’re really catering to the market where people buy them to either white-label or to sell. So you are doing a white label yes yeah we’re going to talk with David we have got work to do in this life together. I’m telling you what wonderful work to do in this.

Sonia Gomez: Okay, so I’m excited

David Klein: We’re right now we love the industry. And it so sounds like you do also I do and where we know that growth is going to happen. We know there’s going to be bumps along the road. But you know what we’re prepared to do whatever we need to do to get over the bump.

Sonia Gomez: Absolutely love it. Well, in closing here, any final words? Half of the audience before I go into, into our closing statements,

David Klein: I usually tell people, that people thank me for taking the time to talk to them. I say it’s been totally My pleasure. Everything that I do every moment I wake up, it’s been my pleasure to talk to people and to try to help them. Never making any medical claims along the way. But to try to give them the benefit of what I think our product. You know, when I say to them, I say the worst that can happen to you. Taking our product is you’ll have some very good tasting jelly beans. We make no guarantees. Everybody’s body is different. But that’s the worst that can happen to you. And we’re just trying to be good people. good citizens. We’re just trying to always, you can never rest on your product or your product line. We’re trying to come up with other innovative products. We’re trying to always improve our products. And we can’t stand still in this industry. You’ve got to keep on moving. Otherwise, you’re going to be run over.

Sonia Gomez: Spoken like a true king. Thank you so much. I really appreciate it. And it’s also my pleasure to be able to share this incredible time with you and, and to hear your journey and story of everything that you’ve gone through to build just a mainstream business and how you’re entering into this space is is absolutely incredible. I can’t wait to do some more work with you. Now that I know that you are white labeling and you’re doing bulk orders. You and I are going to become very close friends. I’m so excited about it.

David Klein: Sounds good. Make every day a good one.

Sonia Gomez: Yes, absolutely. So just in closing here, for those of you who have tuned into the hemp revolution podcast, this is an incredible opportunity for you guys to do some of that deep dive and self-exploration on why you do what you do for whom you do it. It when you’re considering how you are growing your business, I want you to focus on who you are serving, what problems do they have? What are you serving them with? And how will that help give them and provide the solution that they are looking for? When do you want to bring your product to market? Or when do you want to run that next promotion? And how do you want to do that? How do you want to bring it into the eye of the consumer? Are you going to do that digitally? Are you going to do that on the ground? How are you going to be building your company and most important the governing rule of all things is Why? What is your passion? What is your purpose? And why do you want to continue to serve people at the highest level with your products and services? Understanding these formulas and understanding each one of these facets of your company will help you to streamline the way that you grow and remember how you do one thing is how you do everything. Check us out at the Emerald circle. com if you want more information on how you can enter into or grow and scale your business sustainably and quickly in the cannabis and hemp movement. If you are a patient looking for products, check us out. Check us out at the Medical secrets. com website. I’m your host Sonia Gomez and this is the hemp revolution. We’ll see you on our next show.

Thanks for listening to another rock star episode of the hemp revolution podcast. I’m your host Sonia Gomez. And just for you, we took notes on this episode along with the links and other resources mentioned inside of today’s show. Get them for free right now by going to the Emerald circle.com. Now, if you want more on this, please subscribe to the show on Apple podcast or wherever you like to listen and you will be automatically entered into our

David Klein: monthly

Sonia Gomez: giveaway where you can get swag bags, all kinds of cool gifts and discounts from our guests and exclusive offers that are only mentioned right here in the hemp revolution podcast. I can’t wait for you to share this with your friends. With your help. We’ve been able to impact millions of people’s lives around the world with the truth about hemp and cannabis. And we know that you love us so much that you’re going to leave a review and rate us right now on your favorite platform to absorb content just like this now, we challenge you to dream big and love the life that you live. Thanks so much and we hope to see you on our next episode of the hemp revolution podcast Ciao for now.

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