Axios Denver

March 16, 2025
Small businesses are the heartbeat of communities, and increasingly, shoppers are trusting them with their wellness.
- Here's what you need to know about how shops in your area are growing, according to Axios' Carly Mallenbaum.
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Today's newsletter is 739 words — a 3-minute read.
1 big thing: In small health businesses we trust
Many Americans are prioritizing their wellness, but who they trust with it is another matter entirely.
Why it matters: Small health businesses — which the public generally sees as reliable — are experiencing growth at a time when federal health messages are all over the place.
What they're saying: "Consumers have a high level of trust for small brands" in health because they often have mission-based origin stories and "business-for-good" ethos, says Sherry Frey, VP of total wellness at consumer intelligence firm NielsenIQ.
Meanwhile, many Americans distrust public figures on health-related topics, according to a recent Axios-Ipsos poll.
- And they had more trust in friends and family than in government leaders — and journalists, for that matter — when it came to health issues, a 2024 survey shows.
- But Health and Human Services Secretary Robert F. Kennedy Jr. has positioned himself as a champion of small businesses — particularly in the "crunchy mom" health space.
Zoom in: Small food and drink businesses focused on health and sustainability are specifically seeing increased growth — according to NIQ data from September 2023 to September 2024 shared with Axios.
- The fine print: NIQ defines a small business as having less than $200 million in sales.
What we're watching: AI has the potential to help small businesses grow, but at the moment, the upfront investment is too high for many companies.
2. Micro-influencers can have major impact
Micro-influencers can fill a sweet spot for brands. They're not so big that they're too expensive to work with, but they have followers who take their recommendations seriously.
Why it matters: It makes sense for wellness brands to be on social media because that's already where young people are looking for beauty and health advice.
What's happening: Brands selling on TikTok and Instagram can create digital storefronts where customers can directly buy products.
It's all about making more and more videos about the brand, says Tommy Lynch, the founder of TikTok agency partner Cult Content.
- "If you make a hundred videos, one of them is going to go viral, and it'll totally change the business. But that takes a lot of time and effort, and there's a learning curve," he says.
- "The other method would be to find an affiliate" who's passionate about the brand and willing to put the time in to make many videos, he says.
- On TikTok and YouTube, brands can partner with video creator affiliates who earn a commission for touting a product.
"There's a lot of distrust nowadays with traditional pharmaceuticals, and so there's this information-driven, buyer mentality," he says, with customers looking to social media for solutions to their problems.
3. Patterbar CEO shares advice for small businesses
Meet Patter Gersuk, the CEO and founder of Denver-based Patterbar — an energy bar available at local farmers markets and coffee shops, and in Whole Foods later this year.
- We asked the classically-trained chef and mom of three about how she's grown her small business.
What's the origin story of Patterbar?
- I was one of those crazy moms that made the baby food. When the children got older [my eldest is now 38], trying to find convenient snacks that weren't full of all kinds of junk was challenging. So I made the bars.
- It's really simple stuff: dry fruit with no juice, no sugar, no oil, dry roasted nuts, seed or nut butter, that is rolled together and cut.
How do you build trust with your customers?
- I am all about full-on transparency and authenticity. We do farmers markets, and it's great because it's an opportunity to literally lay out the ingredients, and we say to people, "This is all that's in it."
What's challenging about building a healthy food brand?
- The profit margin for food in general is extremely slim, [and] we're competing against companies like Mondelez and Kellogg's and Hershey's that have so much money for marketing. They'll tell people "these are healthy and natural," but look at what's in the bars.
What advice do you have for aspiring small health business owners?
- No. 1: If you're starting up your own product, you want to have something that's different. We are 100% whole food, and I believe that is a significant differentiator.
- And No. 2, you have to be exceedingly tenacious. It's 24/7 for me, and this is my eighth year. I do a farmers market every Saturday and Sunday for six and a half months. That's a lot.
4. Stunning stat: $1.3 billion
That's the amount that TikTok projects U.S. small businesses and social media creators would lose in revenue and earnings in one month if the app is shut down, according to CNBC reporting.
What's happening: TikTok has less than one month until the executive order suspending its ban officially expires.
- Yes, but: The April 5 deadline isn't exactly set in stone, Axios' Dan Primack reports.
Meanwhile, TikTok is looking to expand its local services business nationally, Axios' Sara Fischer scoops.
Thanks to my editor Ashley May.
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