Obese to Obsessed: How Mike Fata Built a $419 Million Health Company

Over 300 pounds at age 18, things weren’t looking good for Mike. But then he took matters into his own hands. Co-founding Manitoba Harvest Hemp Foods in 1998, and serving as Chairman of the Board and CEO until 2016, Mike helped guide the strategic sale of the company to Tilray for $419 million dollars in 2019. Since then, Mike has celebrated and supported other business ventures as an entrepreneur, investor, advisor and mentor. Here’s how it all unfolded…

After catching up with Mike on the David to Goliath podcast, I split our conversation down into 8 key parts.

Here’s what to expect and what you’ll learn:

1. Early Life Challenges and Dropout

2. Health Transformation and Entrepreneurial Beginnings

3. Building Manitoba Harvest and Facing Setbacks

4. Why Ask For Help

5. CEO vs. Founder Dynamics

6. How to Hire A-Players

7. Transition and Personal Growth

8. The Power Of Community

Early Life Challenges and Dropout

Imagine being 13, looking your family's financial struggles dead in the eye, and deciding to turn your back on the conventional by dropping out of high school. 

That's Mike's origin story – a rebellion against circumstance, a middle finger to the system that seemed designed to keep him down.

Navigating the tempest of teenagehood, Mike grappled with frustrations many of us can relate to – the disconnect in school, the feeling of not fitting in, and the turbulent waters of adolescence. 

School, he felt, failed to educate him about health, leaving him frustrated and out of sync with his surroundings.

Dropping out was the start of a journey that would shape the rest of his life.

"I call it my adult journey, and it started around 13 or 14," Mike said to me on our podcast with a twinkle in his eye.

Weight became a physical manifestation of his frustrations, tipping the scales at 300 pounds by the time he hit 18.

McDonalds, Burger King - the fast food lifestyle was catching up with him.

However, rather than succumbing to despair, Mike harnessed a determination that would set the stage for a remarkable transformation. 

"When I was 18, I decided to lose 25/30 pounds – get under 300. This got me super into diet and exercise”.

His relentless pursuit of a healthier lifestyle laid the groundwork for a broader vision - a stable foundation upon which he could focus on the multifaceted aspects of life.

Then came 1995 – a time when ‘weight loss’ was a chaotic circus of fad diets and empty promises, all of which left Mike feeling lethargic and unfulfilled. 

Within this struggle, a beacon of hope emerged - hemp, a super seed that was to become the linchpin of his entrepreneurial endeavours.

Unliked by many because of it’s negative associations, this was the ultimate spark for a rebellious entrepreneur, ready to break the rules.

"A super seed that was outlawed – we were working to get it legal. People were about to get super interested in healthy fats, protein, etc.."

It wasn't just about Mike’s personal transformation; it was about unlocking the potential of a misunderstood and under utilized resource.

Health Transformation and Entrepreneurial Beginnings

These unassuming seeds held the secret to an optimal combination of essential fats, propelling Mike into a realm of strength and vitality previously unexplored.

Thus began his foray into the world of self-improvement, with hemp, exercise and a wholesome diet serving as the canvas for his transformation.

From the depths of lethargy, he rose to radiate the energy of an athlete. 

A rebirth of the mind, body, and spirit.

The year was 1998 and Mike’s first company, Manitoba Harvest Hemp Foods, was born.

As Mike pioneered this new direction, his observations were profound. 

He noticed a crucial void in the entrepreneurial landscape - a lightbulb moment that illuminated the path to a better version of himself: The pursuit of greatness was intricately tied to how well he prepared for life's challenges. 

Mike's newfound mindset didn't limit itself to the realm of personal health. 

Armed with the philosophy of preparation, he stepped into the world of business, armed with a set of fundamental questions: 

• What does success look like? 

• How do I emulate it? 

• What steps must I take, and how can I prepare for the challenges ahead?

Observing a pervasive oversight among his peers, Mike recognized a crucial truth – preparation was not just a business strategy; it was a way of life. 

Whether in the boardroom or the everyday hustle, he observed that the devil truly was in the details.

It wasn't just about attending meetings; it was about showing up five minutes early, understanding objectives, and arriving prepared to solve problems. 

Mike's secret? 

Be the one who anticipates, prepares, and conquers – a formula that elevated him above 90% of the competition.

A readiness that became second nature.

As we say at David to Goliath: Conviction through insatiable preparation.

Now, it was time to see how badly Mike really wanted it.

Building Manitoba Harvest and Facing Setbacks

Success is not bestowed upon the swift but the persistent. 

Setbacks are inevitable. But it's not the challenges we face that define us; it's how we respond to them.

Mike's entrepreneurial journey took a significant leap when Manitoba Harvest set its sights on the expansive US market. 

"We saved up the money that we had from a capital raise and put it all into the US launch."

Little did he know that the launch would coincide with one of the most tumultuous periods in modern history — September 11, 2001. 

The aftermath of that tragic day cast a formidable shadow over their efforts, but Mike and his team stood undeterred, ready to face whatever challenges head on.

As if launching during a time of unprecedented global turmoil wasn't enough…

"A couple of weeks after that, the DEA declared war on hemp foods, saying they were illegal and the same as marijuana. That took a couple of years to overcome."

This unexpected blow could have been the end for many ventures, but not for Mike.

Instead of succumbing to the pressure, they met the challenge head-on, armed with fortitude and an unshakeable belief in their mission, and a determination to debunk the myths surrounding hemp foods. 

Legal battles loomed, misinformation spread like wildfire, and doubts crept in. But Mike and his team fought against the odds to establish the legitimacy of hemp foods. 

"We took the DEA to court and ultimately defeated them, which is a nice part of our company history and the industry journey."

"There were so many times that our products got held up at the border, or that we had retailers that would return the product."

"Legal battles, misinformation campaigns, product returns—there were so many obstacles in our path,"

It serves as a powerful reminder that success is not handed to us on a silver platter; it's earned through resilience, determination, and an unyielding vision. 

When the world doubts you and obstacles seem insurmountable, remember no self made person ever didn’t counter these moments, especially Mike.

But these are the moments that define you.

This is where champions are born.

Although success is not a single player game and Mike knew he needed help if he was to make it big.

Why Ask For Help

Mike didn't have degrees hanging on his wall, but he had something far more powerful – a relentless thirst for knowledge and a hunger for mentorship.

He became a sponge, soaking up wisdom from every source. He made a conscious decision to be a perpetual student.

A drive to learn from those who had walked the path before him.

"I didn’t know it then, but I was seeking out good mentors — because I’d dropped out of high school, I had no formal education. I added up traditional mentors, peer-to-peer mentors — I became a sponge and soaked it all up. This was how I continued to grow and developed this mindset."

Mike's philosophy on mentorship extends beyond the traditional model, advocating for a reciprocal relationship with the community. 

Making friends first and doing business second is the key in any industry.

"If you’re looking to always be helpful, giving back, doing lots of volunteer work — your community wants you to win. If you’re a value to your community, that’s a way to become unstoppable."

I feel this. Whenever I have conversations with business owners – never do they ask about the 2 degrees that I’ve got. They want to know my principals as a person.

What I’ve done, who I’ve helped. What I stand for as a human.

Although just like me, I know many people seek mentors but don’t know where to find them. So with his wealth of wisdom in this field, I asked Mike to break it down: 

Mike spoke about three main forms of mentorship:

1. Traditional Mentorship: The age-old, tried-and-true method that everyone is accustomed to. 

2. Peer-to-Peer Mentorship: Imagine a tribe of entrepreneurs, not your competitors but fellow warriors in the same battlefield. 

3. Mass Mentorship: The digital era offers unprecedented access to wisdom. By reading books, newsletters, or listening to podcasts, he advocates for staying hungry for knowledge.

“Choose five mentors, dive deep into their teachings, and cultivate a focus that ignites clarity.”

Whether you've been on social media for years or just joined, understand that the strength of your community is a reflection of the relationships built over decades.

This reminds me of a conversation I had with Drew Green – he built friendships with Chinese investors over a decade, and when it came to turn Indochino around, he picked up a phone and secured investment overnight. 

That transformed how I do business.

So embrace a mindset of continuous learning and adaptation. 

Be a sponge, be a friend, and most importantly, be a giver.

You need to put the work in first.

Noone cares about what you know, until they know how much you care.

CEO vs. Founder Dynamics

As entrepreneurs, we are wired to create.

The path is an exhilarating endeavour, marked by the grit and resilience required to build something from scratch. 

But the transition from launching a business to becoming a CEO can be a formidable challenge, particularly when navigating the uncharted waters of start-up mode.

Mike offers an interesting perspective on the critical distinction between CEOs and founders. 

Scaling from $10 million to $100 million demands a shift in focus towards operational excellence – running processes, building a robust culture, and implementing efficient systems. 

It's at this juncture that many founders find themselves grappling with the demands of being an executive. 

Clutching to their rule breaking entrepreneurial spirit that helped them break free in the face of standardisation, processes and systems.

Recognizing this common struggle, Mike made a conscious decision to bridge the gap. 

He aspires to guide fellow entrepreneurs in scaling their businesses to the coveted $100 million mark. 

In the realm of natural products, where only a handful of brands have achieved such a feat, the venture stage of growth becomes critical.

So, what defines a good CEO in this transformative journey? I asked him. 

At its core, success hinges on the strength of the team. While the early stages of entrepreneurship may require a strappy and bootstrap mentality, the leap to sustained growth demands a well-defined governance structure. 

Learning these nuances first-hand as a founder is essential, given the inherent wildcard nature of entrepreneurs who possess the unique ability to make something out of nothing.

In the natural product space, where innovation and authenticity are paramount, being a good CEO goes beyond the bottom line. 

It encompasses a holistic approach, blending the entrepreneurial spirit with the discipline and vision required to lead a company through the intricacies of exponential growth.

How to Hire A-Players

Mike's mantra is clear – experience is non-negotiable. 

When scaling from 10 to 100 million, the stakes are too high to gamble on untested talent. 

He emphasizes meticulous hiring, focusing on competency and hands-on experience. 

"If they've done it before, they can do it again."

For me personally, I used to believe I would be able to figure everything out – now I’ve realised it’s all about building up resources, focusing only on your strengths and finding others who complement you in areas you do not.

For example, in my last agency we started paying for people in the US – salary went up 5x, but we doubled our revenue and profit - everything got operationalised.

For Mike, any time it went wrong was when he levelled someone up – a manger and making them a director – that haven’t done it before, and expecting them to operate at the required efficiency without the prior experience. 

He stresses the importance of a comprehensive hiring process, anchored in assessing competency, experience, and cultural fit. 

“I’ve hired about 500 people over the lifespan of my business – we had core values, our way of doing business was very clear – at our peak we had a gauntlet of 4 interviews – you interviewed with HR, hiring manager, me, and a round table of 3 or 4 people. All of those were based on fit.”

Mike's hiring philosophy revolves around three key pillars:

1. Competency by role

2. Experience by role

3. Cultural fit

He insists on a comprehensive hiring process, rooted in a clear understanding of organizational core values. 

"You have to be really clear as an organization what your core values are and put together a list of interview questions based off that fit."

"Competency, experience, and fit based interview questions – you form a scorecard based on these. This is the secret to hiring the best talent."

For Mike, this is not just a job – it's a passion to see businesses flourish. His unwavering commitment to tightening governance cycles, from financial reviews to weekly team assessments, sets the stage for continuous improvement. 

As he puts it, "I can't turn this off – I just want to help these businesses grow."

Transition and Personal Growth

In the vast landscape of life, we often find ourselves at unexpected crossroads, facing challenges that seem insurmountable. 

Despite Mike’s huge success with Manitoba Harvest, life was about to throw it’s toughest test yet.

A storm of life events that all hit at once – a shattered marriage, the loss of his mother, and the sale of a business that defined his identity.

All within the span of 3 weeks.

Mike weathered this tempest, and his story is not just about survival; it's about transformation.

He discovered the first step towards personal growth – mindfulness. 

"Whenever you’re in transition – the most important thing we can do is be mindful we’re in transition – focus on being your best self". 

Mike's journey wasn't a sprint; it was a marathon of self-discovery. 

This is when he shuts out the world and just focuses on himself. He calls it: “Monk mode.”

"It took me about 6 months of focused intention to grieve and emotionally process all the loss."

Six months may seem like an eternity, but in the grand tapestry of life, it's a blink of an eye. 

The key lesson here is to honour the process, to let yourself feel, heal, and grow.

"Let yesterday die and be the change today" Mike advises, echoing the timeless wisdom of embracing the present moment. 

Life is a perpetual cycle of change, and when you reach the end of one chapter, it's crucial to transition gracefully to the next. 

"Be mindful you’re in a transitionary time and run a good process. That’s what growing up really is,. 

In a moment of profound revelation, Mike experienced a psychedelic journey with psilocybin mushrooms. 

Far from a mere party, it was a reflective, cathartic journey that gave birth to what he calls “Mike 2.0”. 

This unconventional approach underscores the limitless avenues for personal growth – a reminder that embracing change might require stepping into uncharted territories.

A testament to his free entrepreneurial spirit.

"It was the ultimate chord cutting – one day I was Mike, the next day I was Mike 2.0." 

What chords in your life need cutting? 

What version of yourself is waiting to emerge on the other side of change?

As you navigate the transitions in your life, remember that each ending is a prelude to a magnificent new beginning. You are not just evolving; you are becoming your own masterpiece.

Mike's definition of success extends way beyond business achievements. 

"If you are your best self, get yourself into your best space in life, working on things you enjoy is an easy way of saying something you're passionate about – that’s the foundation for not working a day in your life."

Today, he revels in the richness of life – happily dating, cherishing full-time parenthood, basking in a loving relationship, and steering a thriving portfolio company. 

"After 25 years of building my best day ever, I’m living my best day most days – what the world sees now, being a full-time dad, a great partner, an entrepreneur, an investor, author, mentor, my giveback to the world – I’m loving my days every day."

"When there’s 50 obstacles in your way, you go and knock them all down, one at a time."

Mike's infectious optimism about the future resonates with boundless possibilities.

Age becomes a mere number, and each day becomes an opportunity to craft a new chapter in the book of life.

"At 48 years old, I feel like I have another 50 years of this – that’s the real exciting part for me."

Settling into your best day, getting your best sleep, meditation, working out, things that calm you and help you become your best self. 

Hard times come, but they also go.

That’s what growing up really is.

The Power Of Community

Through his experience, Mike has learnt that just because we grow up poor, doesn’t mean we can’t build extraordinary wealth.

Just because we are not formally schooled, doesn’t mean we can’t become fully educated. 

Just because we are unhealthy, doesn’t mean we can’t build a great health foundation.

“If I can do it, anyone can do it”, He reaffirmed to me.

Mike’s journey doesn’t end here.

"Now after multiple 9-figure business exits, I coach, mentor, and advise entrepreneurs, helping them discover their authentic business passions, build world-class companies, and live their best life every day."

He’s doing more mass mentorship. He’s writing a book, a newsletter, and hosting a podcast. 

His commitment to sharing knowledge takes centre stage as he reflects on the therapeutic nature of writing. 

"I learnt that sharing on LinkedIn, social media, my newsletter and my book is very therapeutic for me – talking about my life, my challenges, it’s me first."

Community support though plays a pivotal role. 

"If you’re looking to always be helpful, giving back, doing lots of volunteer work – your community wants you to win. If you’re a value to your community, that’s a way to become unstoppable."

I’ve only been on social media for 3 years – people say you’ve got such a strong community – this is from being in business for decades and making friends at trade shows etc. 

Bound by one final snippet of wisdom:

"When your community wants you to win – you’re unstoppable!"

My Top 5 Takeaways:

1) Breaking Free: It doesn’t matter the cards you were dealt in life or what situation you find yourself in right now. If you’re not content then do something about it. Block out time and start taking action today because otherwise that dream of tomorrow will never come and you will die thinking “What if?”.

2) Asking for Help: Humans are tribal by nature and life is not a single player game. Asking for help from people who have walked the path you tread is not a sign of weakness, it’s a testament to your strength. People love helping others who help themselves. Ask more and don’t be afraid.

3) Founder to CEO: There’s a reason most entrepreneurs don’t make it to $100M. What got you here will not get you there. If you don’t enjoy managing people, just be honest with yourself and find someone who is. To make it big, the key isn’t systems and tactics - it’s leading a team of exceptional people to an aligned destination they all believe in.

4) Hiring A-Players: Great people know their worth so yes, they cost more. But, the cost of failure of hiring inexperienced talent far outweighs the benefits of bringing someone in who has already won the Olympic gold in their field. Follow Mike’s 3 stage hiring philosophy and focus on: Competency by role, Experience by role and Cultural fit.

5) Giving Back: Everyone wants that’s external validation right now but not many are willing to put in the work first. Focus on the 3 types of mentorship Mike stated: Traditional - give back one-to-one. Peer-to-Peer - create a small group of like-minded individuals around a common goal. Mass - start posting your knowledge on social media and help people who are 1 or 2 steps behind you. Over time this will compound and suddenly you’ll have your own community. Just remember: People don’t care how much you know until they know how much you care. So put in the work.

This is your call to dream like a giant.

But fight and believe in those dreams like a god damn underdog baby!

Yours truly,

-Nigel Thomas

P.S. Ready to escape the life of mediocrity?

Here are 4 resources to get you ahead:

1. The David to Goliath Podcast

2. Daily entrepreneur insights on LinkedIn

3. The incredible backstory of Dude Wipes

4. The $100M Paid Advertising Playbook