Business Models Explained with Fexingo · 2026-07-03 · 10 min
In Episode 91 of Business Models Explained, Lucas and Luna explore how Patagonia - best known for outdoor apparel - built a food business from scratch with Patagonia Provisions. Launched in 2012 with a single wild salmon product, the venture aimed to prove regenerative agriculture could scale. Lucas breaks down the unit economics: sourcing from small producers, pricing at a premium to conventional organic, and distributing through a mix of direct-to-consumer and Whole Foods. The hosts discuss why Patagonia treats food as a mission-driven loss leader, the challenge of converting hikers into repeat buyers, and what it means for a clothing company to compete with General Mills. Luna questions whether the model can ever be profitable without Yvon Chouinard's patience. A tight look at how a brand extends its ethos into a new category without diluting either.
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