Among the recordings from this period was "Sausalito", a No. 86 US hit credited to Ohio Express and released in July 1969. In fact the song featured Gouldman on lead vocal, and vocal and instrumental backing by the other three future 10cc members.
In December 1969, Kasenetz and Katz agreed to a proposal by Gouldman that he work solely at Strawberry, rather than move constantly between Stockport, London and New York. Gouldman convinced the pair that these throwaway two-minute songs could all be written, performed and produced by him and his three colleagues, Stewart, Godley and Creme, at a fraction of the cost of hiring outside session musicians. Kasenetz and Katz booked the studio for three months.
Kevin Godley recalled:
The three-month project resulted in a number of tracks that appeared under various band names owned by Kasenetz-Katz, including "There Ain't No Umbopo" by Crazy Elephant, "When He Comes" by Fighter Squadron and "Come on Plane" by Silver Fleet (all three with lead vocals by Godley), and "Susan's Tuba" by Freddie and the Dreamers (which was a monster hit in France and featured lead vocals by Freddie Garrity, despite claims by some that it was Gouldman).
Lol Creme remembered: "Singles kept coming out under strange names that had really been recorded by us. I've no idea how many there were, or what happened to them all."
But Stewart described the Kasenetz-Katz deal as a breakthrough: "That allowed us to get the extra equipment to turn it into a real studio. To begin with they were interested in Graham's songwriting and when they heard that he was involved in a studio I think they thought the most economical thing for them to do would be to book his studio and then put him to work there – but they ended up recording Graham's songs and then some of Kevin and Lol's songs, and we were all working together."