Meet Mike Fata
Co-founder of Manitoba Harvest and a Three-Time Nine-Figure Exit Entrepreneur.
Hey, it’s Alex!
This week, we’re featuring Mike Fata — co-founder of Manitoba Harvest and a three-time nine-figure exit entrepreneur.
Since then, he’s gone on to invest in and advise for some amazing brands, including Mid-Day Squares, Sol Cuisine, and Dream Pops.
From growing up with humble beginnings to building one of the most recognized hemp food brands in the world, his story is packed with hard-earned lessons and insights:
The mindset shift that helped him overcome imposter syndrome
How to build and grow a CPG brand in today’s market
What it’s really like to grieve a business post-exit
The importance of staying in the game and putting in the reps
This interview is full of valuable lessons from one of Canada’s most inspiring entrepreneurs — check it out below!
Manitoba Harvest Quick Stats:
(prior to exit)
🏭 Manufacturing Space: 80k Square Feet
🌾 Acres of Product: 75,000
🌍 Countries Sold In: 20
🌍 Retail Stores Sold in: 16,000
💵 Annual Revenue: $104 million
🎯 Exit Price: $419 million
Launching Manitoba Harvest and Exceeding Expectations…
To go all the way back…
I grew up poor, with a single mom. That drove me to leave school when I was 14.
I started working full time, but I wasn't educated about health, so I fell prey to junk food and weighed over 300 pounds by 18.
Eventually, I had a rock bottom moment where I decided to change my lifestyle. I started studying and practicing natural health, and over time, led to me losing a lot of weight (over 100 lbs).
I was reading a ton of health books at the time, and by virtue of that, I learned a lot about good fats — the best sources of which are hemp seed and hemp seed oil. At the time, though, neither were available in North America.
Also around that time, I met my co-founders, Martin and Alex, who were lobbying the government in Manitoba to legalize hemp. I always thought hemp was cool, but I fell in love with the nutritional properties of the hemp seed, so we started Manitoba Harvest in 1998 — a company that we grew over 20 years to over $100 million in annual revenue.
By the end, we had over 80k square feet of manufacturing, grew over 75,000 acres of hemp and were selling to 16,000 retailer and 20 countries worldwide.
We were very fortunate to have had an opportunity to sell the business in 2019 for $419 million.
Overall I’ve done three nine figure exits — my first deal was $132 million. Then we sold Manitoba Harvest for $419 million, and then when we sold my first investment portfolio company Sol Cuisine, which was a $125 million exit.
The differences in CPG Then vs. Now…
There are so many different ways to go to market and a launch strategy, especially in the food and beverage industry. Whether it's direct to consumer first, an online approach, brick and mortar, or a combination of them.
There's not really one right way, but one that I really believe in — because it’s how Manitoba Harvest started — was more of the farmer's market approach. Back then, it was a classic way of doing business, not only on the sales side, but on the operations side, too.
With the farmers market model, you’re not just controlling the amount that you're making and the amount that you're selling, you are also working one-on-one with your consumers, getting feedback from them at every stage of the growth process.
In 2024, some people are doing that with direct to consumer, by having email lists and social media outreach directly with their consumers. But it's a lot more impactful to get feedback in person, which is easier the closer you are to home.
If you target stores to sell your products that are close to your house, you can go there regularly and develop relationships more easily which will support retail sales and marketing execution and education.
That type of learning is more challenging to do when you’re in a different city than your customer.
Post-Exit Existentialism…
I like talking about it, because a lot of entrepreneurs don't realize that at the end of the journey, there's a grieving process.
In 2015, we sold the majority of Manitoba Harvest to a private equity partner…
Then in 2019, we sold the whole company to Tilray.
In the four years in between that, I knew my journey with Manitoba Harvest was going to come to an end, so I started dabbling in helping other businesses.
Even still, when we sold the business in 2019, I grieved — in more ways than one. We sold the business, my wife and I decided to separate, and my mom died unexpectedly, all within five weeks of each other.
In the span of just over a month, I went from showing up at the business and leading a team, to not being welcome there. Then, suddenly I didn't have my kids half the time, and I also couldn't go visit my mom anymore.
It took about six months to fully grieve and heal — I went into full monk mode to stay healthy and develop a positive mindset which was critical to build what the world sees of me now.
New Pursuits & the Beginnings of Coaching…
I wish I could say my new business model was super calculated. It’d probably make me sound smarter. But nothing was overly intentional — like creating sales funnels for investments or anything like that.
There were just a couple of things I started looking for…
I started scratching itches that I've had for some time, even though some are a totally different area of expertise.
The connective tissue is that as an entrepreneur, I like making something out of nothing, and I've been well trained over the last 25 years to know what I don't know.
I learned I knew nothing about writing, publishing, and then marketing a book…
I knew nothing about podcasting…
I wasn't even on social media five years ago.
I'm just passionate about helping entrepreneurs grow personally and professionally, and these are ways for me to do that. As an added bonus — doing it helps me grow personally and professionally, too.
The reality is: I'm not a natural at any of this. It's just trained behavior.
I’ve put in the reps, I’ve gotten stronger at it over the years, and now it just seems like I’m a natural, even though it totally didn’t start that way.
And it all started by asking myself, what can I offer others?
I'm a good strategic planner. I know our industry well. I'm well connected to other founders because I've been operating in the space for over 25 years.
From there, I just began reaching out. I connected with other founders in the CPG space and had conversations with them, trying to understand the problems they were experiencing.
In those conversations, I offered them some support, or told them what I would do if I was in their situation. After a thousand or so conversations, that naturally led to me investing in a handful of those companies. It also led to my coaching practice, where I coach a number of entrepreneurs weekly.
It also developed into my mass mentorship products — my book, my podcast, my newsletter, 60 Second Pitch and my mentorship toolbox — but it all just started with wanting to be helpful, and putting myself out there.
Investing in CPG Brands & Common Issues…
My investment thesis is pretty simple.
Companies need to make products that I like — that I personally have in my house. Then, I like to meet the founders, who I also want to have in my house. Have them over for dinner, hang out, strategize. That sort of thing.
After that, it's really all about growth. As an entrepreneur that's grown a large business and exited, I have a good sense for it.
What are the aspects of growth for those companies?
Are they self manufactured or are they co packed?
Do they have a great margin structure?
What are their velocities that they're selling in store?
How many units are they selling per week?
How do they compare against similar items on the shelf?
How is their message, their product different, or unique?
All those things determine the likelihood of being able to scale and grow 5x, 10x from where they are right now.
And I should say, I am not an angel investor – as I invest at the venture stage of growth, not start ups.
I'm investing in businesses that are already doing $5 to $10 million in sales and then helping them grow to $50 or $100 million, because that's the expertise I have that not many people in our industry do.
Then I ask questions like, is there a real opportunity for growth for this business? And can I help outside of my money — with my experience and expertise?
If it checks all those boxes, then I go for it.
Overcoming Imposter Syndrome…
I was never into social media before, so I didn't naturally want to put myself out there, and I felt awkward even when I was.
So when I started sharing on LinkedIn, even though it was therapeutic for me to share some of my learnings, the imposter syndrome was there even after all my success…
Imposter syndrome and self-doubt are daily battles — we unknowingly do it every day to try to protect ourselves.
My mindset shift was that I am putting myself out there to help others and build community.
LinkedIn specifically, I changed the way I look at it, and now think of it as a 24/7 trade show.
For two decades before that, I went to trade shows multiple times a year, and I loved them. I met new people, I checked out new products, I gave speeches. All of it was very natural, because it took place in person.
Once I made the 24/7 tradeshow mindset shift, things became a lot easier for me on Linkedin.
A lot of people struggle with putting themselves out there, but if you’re used to doing it in person, it’s pretty easy to do it online. The real problem though is — a lot of the younger crowd haven't frequented trade shows, or similar events, which are really beneficial for developing a knack for sharing your story.
But here's what I've learned about imposter syndrome: anytime we do something new, there's a high likelihood that we're going to feel like we shouldn’t be doing it. It’s a protective mechanism. Your mind’s shielding you from embarrassment, failure, and risk.
But without risk, we can’t live a full life.
I've experienced it, and I’ve seen it in so many successful people that I know — staying in the game and getting past imposter syndrome long enough is what creates huge success.
That’s why I remind myself regularly, and encourage others to get out of their comfort zone and put themselves out there over and over.
On Cultivating a Positive Mindset…
It's all training…
Having an optimistic mindset, thinking the ‘best is yet to come’ and staying positive through hard times — it’s been all about focused effort.
It’s what I mentioned about my book and podcasting: none of it was natural to me before I put in the work. Once I put in the hours and the reps, it became intuitive.
But that’s the thing — it takes a lot of hours, and a lot of reps.
Which is why I teach people to start focusing on three things:
1. Being your best self,
2. Doing your best work
3. Building your best community
Being your best self means taking care of your physical and mental state. Prioritize sleep, hydration, and nutrition. Eat well, lift heavy stuff, get your heart rate up, do some kind of breath work and meditation.
If you show up as your best self, it's a lot easier to go out and do your best work. And I say that as someone who was once 300 pounds — depressed and unclear on my values, purpose, or passions.
I had to put in the work over and over again to better myself.
My personal transformation with weight loss started a whole transformation in life. That's why I say it happens in that order: being your best self, doing your best work and then building your best community.
The sequence is really important.
All the great outcomes happened after I started focusing on being my best. I personally felt great, and started noticing other problems I could solve.
When I transitioned that thinking to the business I just thought hey, just chop wood and carry water … meaning do the work each day, and have faith. I tried not to determine the timelines of the outcomes. Instead, I focused on doing great work, knowing a great outcome would happen.
If we do the work and we stay in the game long enough, we're going to have a positive outcome. The only unknown is truly the timeline.
Most entrepreneurs would say that if you don't have a million-dollar business in five years, you’ve failed. Well, it took me five years to get there and it took 10 years to reach profitability.
Ten years is a long time to have faith and just keep doing the right thing over and over, and know that because of your working it, you know, working diligently and doing good work, that there's going to be a positive outcome.
And I’ve had those type of hesitations and doubtful moments every step through my career…
The first two years that we started Manitoba Harvest, I didn't get paid. I had to use every ounce of my savings that I built up over four years working construction to pay my rent and buy food and stuff.
Then we launched in the US and were attacked by the DEA — they were basically trying to ban hemp foods, which took over three years to resolve.
That entire time, It felt like everything could come crashing down at any moment.
That was more than humbling.
Actionable Things to Build a Better Business…
If you’re looking to grow, personally or professionally, you need a plan, and you need a governance cycle.
So many things really come down to having an annual strategic plan that aligns to your budget, and gives you really clear operational strategies for sales, marketing, ops and finance.
That's what we call “working on a business” instead of “working in the business”.
In my opinion, it's the most effective way to grow, both personally and professionally.
Large businesses have a board of directors, but when you're a smaller business, that may look like having an advisory board or a coach that can challenge you on what your assumptions are, and how to make them better.
A lot of people start out with a plan but deviate away from it over time. And instead of checking in and readjusting, they completely stop planning, letting time go by until they feel like they’re out in the middle of the ocean without a paddle.
The reality is: you put yourself there, because that governance cycle of working on the business annually, quarterly, monthly, and weekly, is hugely critical. If you don’t, bad things can and will happen.
Thoughts on Legacy…
Listen, if I retired, I'd go crazy.
I have to do something, and I believe that's true for everyone.
Your purpose can change, but you have to live that out.
I'm a single, full-time dad to two teenagers, so family time is super important for me. That's one of the reasons why I've chosen to be a solopreneur.
I had a team of 200 people, and now everything I do is through a third party contractor, because I want the freedom to be able to spend a lot of time on my personal life while building my businesses. So those are the guide rails that I've set up for myself.
I had one income stream for 20 years, growing a business as a founder. Now I have seven income streams, and I want to do great in each one of those businesses.
Entrepreneurship in Canada…
It's easier to do business in Canada because Canada is a friendlier place with less competition.
Yeah, there are fewer VC firms, and the sentiment lately is a bit negative, but you can capitalize on that if you have a positive viewpoint.
Less than 10% of the population nowadays is an entrepreneur, so we’ve been working to get entrepreneurs together and understand the business opportunity that Canada presents. To really create opportunity as an entrepreneur, you have to be proud of what you're doing, and you have to be vocal sharing your story.
Sharing your story will attract more customers, more peers, more friends, more investment, more positive political support, even.
It’s why we launched the Canadian Entrepreneur Revival Tour event series.
The Entrepreneur Revival Tour aims to unite and inspire Canadian entrepreneurs across Canada.
Jake Karls and I did our first one in Toronto, and over 300 people showed up, and it was a fabulous time. What we saw after was a number of entrepreneurs being inspired and feeling like they had more tools in their toolbox to successfully grow their business.
I'm bullish on entrepreneurship in Canada — it’s been tough lately, but Canada is a great place to be an entrepreneur.
That’s it for issue this issue!
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If you, or someone you know would like to be featured, or just want to connect, feel free to message me on LinkedIn, or, if you’re building a business of your own and need some support, we should chat!
Interview by: Alex Tribe
Edited by: Angus Merry