
The Modern Retail Podcast
540 episodes — Page 7 of 11

'It's not just something that we put on our website': Prose's vp of social impact Helen Nwosu on keeping a scaling company ethical
Prose is a hair care company in growth mode, but it's also laser-focused on remaining a responsible brand. One of the people behind this push is Helen Nwosu, the company's vp of social impact. On this week's episode of the Modern Retail Podcast, Nwosu spoke about how she juggles the needs of a scaling brand while maintaining Prose's core values -- which include being transparent about its sustainability efforts, providing a safe and equitable workplace and making its products accessible to more people around the world. "My role is really tied to the fact that my founders... all wanted to have social impact and business as a source for good clearly embedded in the business from the get-go," Nwosu said. That doesn't mean that Prose, which was founded in 2017, isn't riding a rocket ship, business-wise. The company, which sells custom hair products, has seen revenue grow 3x for three years in a row. It brought in $80 million of revenue in 2021. According to Nwosu, who has spent her career working at the intersection of social impact and business at companies like Louis Vuitton, the way to keep a company honest is to work beyond a marketing lens. For example, Prose has been a certified B-corp since 2019 -- which means that company has to prove certain elements of social and environmental performance. What's more, Prose is also a public benefit corporation. "What's interesting is that it makes our public benefit a mandate to our board," said Nwosu. That is, Prose doesn't have to just write nice-sounding marketing copy about why it's acting both sustainably and ethically, but it was to report on all of its initiatives to its board and external organizations. "It's part of our legal charter," she said. "It's not just something that we put on our website." With that, some days she's working on front-facing activation and other days she's poring over technical documents. "It's really technical," Nwosu said, "I do like that aspect of the job because that's where the magic is." Another part, she said, is making sure the entire company is in lockstep with its values -- including how the products are made. For example, all of Prose's manufacturing happens in Brooklyn. "In this day and age, where most manufacturing companies -- specifically for consumer good -- are moving outside of big urban areas, we're allowed to provide really great jobs," Nwosu said. Right now, Nwosu is working on many projects -- including trying to cater to wider swathes of customers as well as keep Prose's many sustainability efforts up to date. For example, the company has sharing resources with other beauty B-corporations, allowing them to "really talk about transportation, logistics and ingredient sourcing." Those, she said, "are probably the three biggest challenges for a company of our size." So far, Prose says, it has reduced its carbon intensity by 67%. "At the end of the day, three times growth means we're making more product [and thus] we're using more of the planet's resources," Nwosu said. "So that has to be something that I mold the company to do mindfully -- let's build each product that we build better. So that's where my focus is really."

Maev founder Katie Spies on going from dog walker to pet food CEO
Maev is a startup that believes dogs should be eating as well as humans. The company first hit the market in 2020 and has been steadily growing ever since. For its first year in business, it was faced with the problem of selling out of products. This led it to bulk up its manufacturing and raise a $9 million round of funding. Now, Maev founder and CEO Katie Spies says the company sees sales growth of about 15% month-over-month. She joined the Modern Retail Podcast and spoke about the company's growth and the overall premium pet food market. Spies doesn't have a background in pet nutrition, but she did work as a dog walker to learn the ins and outs of what pet owners need. "I spent a year as a dog product dog walker," Spies said. "And I was getting to know a lot of consumers and figuring out what their headaches were." This time on the street with dozens of dogs helped Spies coalesce on a business plan for Maev; the company would sell human-grade dog food online. After two years of beta testing and figuring out the proper product line and formulas, Maev hit the market in late 2020. It was a good time to launch a dog food brand. During the first year of the pandemic, one in four Americans got a dog, Spies said. "Pet ownership skyrocketed, and more and more people started purchasing pet products and grocery products online," she said. So Maev didn't so much have a problem finding customers. Instead, the problem was in making sure it could keep its supply chain going and get products to customers. "The trouble was really just keeping inventory on the shelves in our facility and running a facility to continue producing product, despite Covid happening in the world," Spies said. This meant that Maev had to go from working in a test kitchen in New York to expanding to a contract manufacturer who could handle its demand. Now, Spies says the plan is to grow even more. While Maev is still only available online, Spies has her eyes on some new retail channels. "We started with just our own e-commerce site," Spies said, but "moving into [online] marketplaces is next on our list."

'We built our iPhone before we built our Apple': Whisker CEO Jacob Zuppke on growing the brand beyond its Litter Robot roots
Jacob Zuppke’s tagline for his company is “cats keep pooping.” It's a blunt way to help people understand what his company does: Zuppke is the CEO of Whisker, the company behind the Litter Robot, an electronic-self cleaning litter box that retails for as much as $649. And, the tagline has born out; and the parent company is trying to expand beyond just litter boxes, with an automatic pet feeder and its own cat litter. The pandemic didn't slow Whisker's sales, and that's thanks to the Covid pet adoption boom. "We were already growing at a really exciting rate pre-Covid," said Zuppke on the Modern Retail Podcast. "I think that was just a little bit more gas on the fire." Whisker has been around for over two decades, but Zuppke joined the company in 2015 to help focus its digital strategy. Then, the company's sales were about 66% direct-to-consumer and 33% Amazon. Now, the company sells more via DTC -- but is actively expanding other channels, including a new retail partnership at 40 Hollywood Feed pet supply stores. "We are building a physical footprint to tell the story of what the Litter Robot is capable of doing," said Zuppke. But even with this retail expansion, much of Zuppke's focus is on growing digital sales and getting more people to know the Whisker and Litter Robot name. One lever Whisker has leaned especially heavy on is TV. "I think we as people that have learned to consume TV in a certain way, when we see something on TV, we tend to have a sense of trust for whatever reason," he said. With that, TV has become a very useful channel for brand storytelling. That being said, not all TV is the same; "We continue to find that linear performance better than connected," Zuppke said. For now, the focus is on growing the brand. For Zuppke, that's become a more challenging goal since there are now two brands: Litter Robot and its parent Whisker. While the former is the most popular product, Zuppke very much sees growth for other brands to bloom under Whisker. "We built our iPhone before we built our Apple," he said.
Introducing The Return
trailerDigiday Media is proud to present The Return, a podcast about what the return to the office can look like as corporate America adapts to the new, not quite post-pandemic normal. The Return follows the staff at one Atlanta-based advertising agency through Covid outbreaks, as well as the highs and lows of transitioning to hybrid work after two years of pandemic lockdown and working remotely. While the future of work is still under construction, employees across the country are forging their own paths to determine what that future looks like amidst parenthood, corporate mandates, long commutes and an ever-looming pandemic. The Return is hosted by Kimeko McCoy, senior marketing reporter at Digiday, and produced by Digiday audio producer Sara Patterson. Listen to The Return on Apple Podcasts, Spotify, or wherever you get your podcasts.

'Alt milk fatigue has become a thing': Táche founder Roxana Saidi on growing a pistachio milk business in the age of Oatly
Pistachio milk startup Táche has big plans to take on Oatly and its ilk. Founder and CEO Roxana Saidi joined the Modern Retail Podcast and explained how. Táche has been on the market for a little less than two years, but it has already begun making a real dent. The company has sold over 1 million units and has expanded its retail and coffee shop footprint nationally. According to Saidi, things are just getting started. The first hurdle, according to Saidi, was making sure she could build a viable business. She knew that she had a good idea with pistachio milk, as it was made in a more sustainable process than other milk alternatives like almond milk. "In 2015, [California was] experiencing our worst drought on record," she said. "At the same time, 99% of almonds that are consumed in this country are grown in California, where the almond trees require and soak up more water for the state than the inhabitants of California." Conversely, pistachios, she said, "require 75% less water than almond trees." And thanks to her family's connections to pistachio farms in the Middle East, she was able to have a direct source to the main ingredient. But even with all this, pistachio milk was expensive to produce, especially for a startup making a small initial order. Saidi realized she had to make something many people could afford. "I knew that if Táche was going to be priced at $10 or above, it actually wasn't a product I was going to pursue," Saidi said. "That was my threshold." Ultimately, Saidi was able to get it down to $7.99, which meant the idea had legs. The next step was figuring out production. It's easy to have an idea, but you actually need people to buy it. So for four years, Saidi made inroads with food professionals in the hopes that she would gin up enough demand to land an initial purchase. As Saidi described it, she saw the success of cult alt-milk favorites like Oatly and realized she too could create buzz by getting hip coffeeshop pick-up. Pre-2020, Saidi was able to get many cafés interested. But then the pandemic hit and everything changed. This pushed Táche's launch to November 2020. And with many cafés still shut at the time, the Táche team had to reconsider ways to get more people to try the product. "So we had to get really creative through various channels to drive trial -- marketing opportunities, donating a little bit of product to shops, anything and everything," she said." Now that most stores are back open, Táche is seeing much of its growth in the food service space. Saidi said that the plan for this year is to continue to focus on that; currently, the company gets about 50% of its sales online direct-to-consumer and 50% through its retail and café partners. But next year is when Saidi is going to focus more on bigger retail expansion -- Táche has plans to launch with some national players in the fourth quarter of this year. Once that really gets going, Saidi has big plans for scale. "I think food service will be our primary revenue driver this year," she said. "Next year, it probably will actually turn into retail. And then retail will continue to be the primary revenue driver from there." All this being said, the alt milk space is not what it was five years ago. "There's no denying that alt milk fatigue has become a thing because of how many options [there are]," she said. "But I think what has worked really well for us is two primary differentiating factors: one is on the health side, and one is on the sustainability side."

King David Taco's Liz Solomon Dwyer on growing a cult New York food brand
King David Tacos began as a Brooklyn-based taco cart and has expanded to dozens of locations, and has big expansion ambitions beyond New York City. According to founder and CEO Liz Solomon Dwyer, this is thanks to its persistent branding and ability to grow a rapt customer base. She joined this week's Modern Retail Podcast and spoke about the company's growth and ambitions. King David began in 2016 after Solomon Dwyer quit her job in advertising and made the bold move to go into the food business. She grew up in Texas and believed there to be a big hole in the breakfast taco market in New York. As she described, her father told her that she should open a taco stand in Times Square. "I thought that was an absurd idea," she said. Her father's response was that "it's just weird that they're not there. And it seems like so perfect for the New York morning." The idea stuck with her. It first began as a catering company, and then started an outdoor cart. Today, King David Tacos is available in over 60 retail locations, its own brick-and-mortar restaurant and even in the hot bar section of select Whole Foods locations. The most important aspect to get right, according to Solomon Dwyer, was the branding. Tex Mex food, she realized, had never quite made it in New York City -- and that's likely because of the way the restaurants messaged themselves. "I feel like part of the reason that breakfast tacos had struggled to take hold here was because everything was all Texas-theme, Southern-themed," she said "It's theme-y theme-y, gimmick gimmick." And for her, she wanted King David's to be more authentic. It helped, of course, that she had advertising experience in her back pocket. With this playbook, business is quickly picking up -- though Solomon Dwyer is still figuring out ways to evolve the overall model. For example, the tacos are now available in Whole Foods's hot bar, and she is trying to figure out a way to make her products stand out in a usually un-branded section of the store. "It's been a challenge," she said. But she does have one important piece of advice for people trying to learn the ropes; the most important way to build a business like hers is to become a cult. "The way you sell a lot of tacos is you become a destination," she said.

'People want to talk about sex': Maude founder Éva Goicochea on growing a modern sexual wellness brand
Maude is trying to redefine the sexual wellness space. The brand -- which sells condoms, lubricants and vibrators, in addition to other products -- has been growing its presence and business over the years. It first began as a direct-to-consumer brand, but is now sold in stores like Sephora. According to founder and CEO Éva Goicochea, the company is only getting started. Maude began as a predominately DTC business in 2018. But Goicochea said she focused early on getting the word out -- and making sure people understood the brand properly. This included getting press pieces out before launch, as well as reaching out to hotels to carry the products. "We found like-minded partners when it comes to hotels and made a giant list on Airtable and started reaching out to them," Goicochea said. What does like-minded mean? "We partnered with hotels that had that design-bent," she said. For those hotels, they likely already had say, condoms, but they hadn't yet found companies that branded sexual wellness products like Maude. For those hotels, said Goicochea, "[the products] needs to be high quality because there's this trust barrier." With this strategy, Maude has continued to grow. The brand is now available in 33 countries and is continuing to grow its product line. Much of its success, said Goicochea, is based in brand identity. "We had this thesis," she said, "that [intimacy products] should be approached in this really unified de-stigmatized way." This, said Goicochea, is resonating with customers. And now the focus is on growth -- albeit, profitable growth. With that, Maude is looking to expand its domain. The focus this year, she said, is on product launches and expanding into new markets. She added, "it's retail next year."

'To traditionalists, we are inauthentic': Inkbox CEO Tyler Handley on changing the perception of temporary tattoos
Temporary tattoos are no longer relegated to children's birthday parties -- they're becoming a bigger and more widely accepted part of the body part industry. Much of that is thanks to Inkbox, a Canada-based company that was acquired by Bic last January for $65 million. Inkbox's co-founder and CEO Tyler Handley joined the Modern Retail Podcast this week and spoke about the brand's growth and sales -- as well as the overall temporary tattoo industry. Inbox uses an active ingredient its founders discovered in a fruit in Panama that leaves what looks like a tattoo mark on users' skin for one to two weeks. But the company's products don't work like traditional temporary tattoo offerings that put simple designs on pieces of paper. Instead, Inkbox partners with both celebrities like BTS and famous tattoo artists to sell customers' designs -- as well as grow out its own marketplace of designs where the creators can take a cut of the sales. According to Handley, the majority of Inkbox sales come from its artist marketplace. "We have this artist marketplace with over 10,000 designs from over 700 artists from around the world who make collectively several million dollars a year selling tattoos on our platform, which we're always really proud to say," Handley said. It took some time to get to this point -- the company is now seven years old -- and much of Inkbox's success was thanks to inroads it has made with the tattoo community. For example, early on the company opened its own permanent tattoo shop as a way to get to know more artists in the industry. "We wanted to at least immerse ourselves in the authentic world of permanent tattoos -- to build more genuine connections with artists," Handley said. It seems the strategy worked out given the growing marketplace and the Bic acquisition. And now that Inkbox is part of a much bigger company, Handley has big plans for expansion. This includes retail partnerships and more deals with bigger celebrities. "We're at a stage now where we can't just be direct-to-consumer," he said. Currently, Inkbox is sold in stores like Urban Outfitters, but Handley has plans to expand further. But even with this growth has come some hurdles. For example, Instagram used to be Inkbox's primary acquisition channel. But recent privacy and algorithmic changes have made it much more expensive and less effective. "It was really disheartening to see the greed of Meta affect our ability to get our content in front of consumers," said Handley. "Essentially you have to pay to get in front of anyone there now." With that, now Inkbox is focused more squarely on channels like TikTok. "It's really authentic in terms of its entertainment and engagement. And it's a totally different way you have to approach it," he said. With all of this, even more expansion is on the horizon. "[We're focused on] getting our lifetime value and basket size up by releasing new products -- we launched subscriptions three weeks ago," said Handley. "And soon we're launching some other products that adorn other areas of your body -- let's put it that way."

'For all intents and purposes we are a brand': Italic founder Jeremy Cai on the company's new path forward
Italic is trying to become a luxury brand in its own right. The company has been around since 2018 and has gone through many iterations. At the same time, the underlying model has remained consistent: Italic forges partnerships with the manufacturers of well-known brands like Staub and Samsonite and sells unbranded products directly from the facilities at a fraction of the price. While the company has seen growth over the last few years, it's changed some of its business mechanics. Most recently, for example, it decided to halt its membership-only model. This change, said founder and CEO Jeremy Cai, has positioned Italic for more success. Cai joined the Modern Retail Podcast this week and spoke about the company's latest approach. "Our strength really is in the business side," Cai said. "We've built a pretty strong supply chain orchestration platform... We basically had to build our own version of Shopify, our own version of a returns platform, our own fulfillment network and so on and so forth." But by building such a strong back-end comes the problem of how to define a company like Italic. In some ways, it's a marketplace that directly matches manufacturers with customers. That's, in fact, how Italic first marketed itself. Now, Cai has realized that customers simply don't see it this way. "For all intents and purposes, we are a brand," he said. "Because they don't really see or need to see what goes on underneath the hood." Going away from its membership-only model isn't the only big change Italic has made of late. A few years ago, Cai had big plans to expand to multiple categories -- he saw Italic as partnering with numerous manufacturers that manufactured many diverse products. Now, he's realized that curation is more important. "We can't simply expand rapidly for the sake of expanding supply," Cai said. If the products don't sell through, that leaves the manufacturers Italic is working with in a lurch. "We do have a tremendous amount of responsibility in terms of our agreements with our manufacturing partners," he said. That has made Italic think smaller and with a more curation-focused lens. "We started the year thinking we were going to launch 1,000 products," said Cai. "We'll probably launch 100." Another big change for Italic is its focus on organic growth and less reliance on digital platforms like Facebook. So far, things seem to be working. "We cut our growth spend by 5x from March to April this year, and our revenue grew -- and it's continuing," Cai said. "So it's kind of like, what were we spending money on in the first place?" With that is the larger goal of making Italic a prestige brand that isn't wholly reliant on one-off customer acquisition techniques. It's a focus that nearly every DTC brand faces right now. Over the next year, Cai said, he's dead set on "figuring out a path of growth into the future where we can continue to sizably grow the business without needing to solely rely on paid [advertising]."

'It is a very unique market': July co-founder Athan Didaskalou on expanding an Australian luggage brand to the U.S.
The last few years have been a rollercoaster for travel companies. But Australian luggage brand July says business is now beginning to boom. "Things have changed, lockdowns have come to an end now -- 2021 was a progressive lift on that. And this year, in 2022, things are flying again," said co-founder and chief strategy officer Athan Didaskalou. Didaskalou joined this week's Modern Retail Podcast and talked about the brand's growth and expansion plans. July was first devised in 2018 with the intention of being a luxury luggage company that could take on both Samsonite and Rimowa. "[Rimowa's] acquisition from LVMH reinvigorated design and travel," Didaskalou said. "I'd be lying to say I wasn't a fan." Still, he believed that his company could take on the bigger name players in the industry. "We thought we could do it better," Didaskalou said, by making lighter bags with unique design features like curvier edges and personalized monograms. The first year of business, things went well. But then every luggage brand's worst fear materialized: the world shut down. "2019 was the official retail launch, and 2020 we were almost shutting the business down. It was really that drastic because we didn't have the runway of a few years under the belt in order to be able to survive a zero revenue year." One of the ways July survived the pandemic was by launching new non-travel products like drink bottles and backpacks. The other part was by going into new territories that eased travel restrictions earlier than Australia -- namely, the U.S. For Didaskalou, launching in stateside was an entrepreneurial dream. "I don't think there's any Australian business that doesn't fantasize from day one about launching in the U.S.," he said. "The people are there, the scale is there, the appetite is there for newness." Now, according to Didaskalou, business is humming and more products and markets are in the pipeline. But even though the company has its Australian roots, the United States remains the primary focus. "It's all about the U.S.," Didaskalou said. "We see the demand, we have made an impact. And we can't wait to just start making and delivering more products that get people excited."

'We're getting an absurd amount of people': Neighborhood Goods CEO Matt Alexander on the return of physical retail
Things got scary for Neighborhood Goods in 2020. "We went through layoffs and furloughs -- all sorts of challenging things," said co-founder and CEO Matt Alexander. "And we had just come into the year on a real tear, and it was just really gut-wrenching to suddenly be in that moment." But business has returned, and his updated department store model -- which has retail space in city centers like Manhattan, Austin and Plano and hosts a variety of brands in exchange for a revenue share -- is doing numbers once again. "Sales continue to grow and we continue to add more brands," Alexander said on the Modern Retail Podcast. Alexander joined Modern Retail for a live podcast recording at his New York City store in Chelsea Market during Digiday Media's Commerce Week. There, he spoke about changes to the business and how he's preparing for the future. While sales obviously dropped during the pandemic -- and the company had to close all of its stores for an extended period of time -- Neighborhood Goods was able to see some glimmers of light via its digital services. "Our stores are ostensibly their own warehouses. Local delivery, same-day deliveries, in-store pickup, things of that nature, we were able to offer that for products that were otherwise going to take weeks -- if not months -- to arrive with customers," he said. "And so that actually became a real driver for us." But now, digital is no longer the focus -- it's all about the store. Traffic, Alexander said, has picked back up to pre-pandemic levels and stores are more productive than ever before. In fact, he said the real issue he faces is too much traffic. "We're just getting an absurd amount of people to the point that it creates like a lot of challenges as to how you operate with it," Alexander said. Still, it's a good problem to have. Now, the focus is on growth. That could mean more stores, though Alexander he's still trying to figure out where that may be. It could be California, Atlanta, Nashville or even a smaller suburb, he said. But he's optimistic about the future of his business -- as well as the state of physical retail itself. "At the end of the day, the fundamental picture continues to improve," he said.

‘They're ready for liquidity’: OpenStore’s Michael Rubenstein on building a platform to give Shopify founders an exit
The e-commerce portfolio model has been getting a lot of press of late. And OpenStore thinks it may have cracked the code for finding and acquiring DTC brands. OpenStore launched in 2021, and the idea was the use proprietary technology to suss out which online brands have the most upside. It's raised over $130 million both in venture capital and debt. E-commerce brands can go to OpenStore's website and share their Shopify sales data with the portfolio company. "We've built an engine, powered by data science, that is essentially looking at the historical financials and the order history of the business, and allowing us to come up in relatively real-time with a price for the business, which we then present to the founder," said co-founder Michael Rubenstein. He joined the Modern Retail Podcast this week and spoke about the current state of e-commerce portfolio companies and why he thinks OpenStore is poised for success. According to Rubenstein, OpenStore is focused on aggressively growing its portfolio. Last year, the company said it had ambitions to make an acquisition a day. Rubenstein wouldn't confirm exactly how many purchases this company has made, but said "we have done dozens of acquisitions... We're buying companies very regularly at this point." So what is an ideal candidate for an OpenStore scoop up? According to Rubenstein, it's usually brands whose GMV is between $500,000 and $10 million. He sees OpenStore as a way for serial entrepreneurs who are tired of the current business to make a profitable exit. "They're ready for liquidity -- there's whatever it is that they want to go do next," said Rubenstein. It is, admittedly, a more difficult time for e-commerce businesses than it was a year ago. E-commerce growth is stagnating and inflation is making sales growth difficult for many brands. Still, Rubenstein thinks OpenStore is more than just a business glomming onto a recent bubble. Our plan is to own these businesses, grow these businesses, develop them and help them to realize their full potential," he said.

An awesome product is table stakes': Weezie co-founder Lindsey Johnson on building a luxury bath brand
The key to DTC towel brand Weezie's success is staying in its lane -- or, bathroom. That's according to co-founder Lindsey Johnson who joined this week's Modern Retail Podcast. The company, which makes luxury bath towels along with other bathroom-related products like bathrobes and bathmats, has seen year-over-year growth and said late last year that it was on track to hit eight figures in revenue in 2021. "The bath towel is the hero product of Weezie, and we are going to stay in that world," Johnson said. According to Johnson, what has helped Weezie grow is the company's relatively conservative approach to growth. Other than a seed round, Weezie has remained bootstrapped -- and it's been very intentional about every expansion or new sales channel into which it's dived. Some of that is because of the very nature of the business. Weezie offers custom embroidered towels -- all of which are made and fulfilled in its own U.S.-based facility. Scaling such an operation is difficult, to say the least. "[Wholesale] is something we've always struggled with... because customization is such a big part of the business," she said. "While, of course, our products are wonderful on their own, it doesn't tell the whole story." Now, thanks to growth from the last few years, Johnsons is trying to figure out how to grow these channels while remaining true to Weezie's roots. Meanwhile, she's also trying to figure out where to expand to next geographically. Weezie currently has one store in Atlanta, which she says has been a successful sales driver and brand booster. With that, Johnson is also thinking about opening more stores, but added "it's not in the near-term roadmap." Put together, Johnson has big plans for the next few months -- but is also trying to make sure Weezie stays by its North Star. "I think it's a big year of just investing in the future," she said.

'We're the coach versus the quarterback': General Mills' DTC lead Carter Jensen on how the CPG giant goes about e-commerce
General Mills is known for being the company behind household name brands Wheaties -- but it's also trying to build out a robust DTC strategy. At the Modern Retail DTC Summit, held last week in New Orleans, General Mills' global e-commerce lead of DTC Carter Jensen took to the stage to talk about how he approaches his role. That conversation was recorded for this week's Modern Retail Podcast. Jensen isn't the usual CPG conglomerate leader -- he only joined the company about two years ago. "I come from a weird hodgepodge of startups and consulting and agency land for the last 10-plus years," he said. But this variety of hats worn has helped Jensen better conceptualize how such a big company can go about direct-to-consumer strategies. General Mills brought in about $4.5 billion last quarter -- and direct e-commerce represents likely a tiny fraction of that. This year, General Mills is on track to launch DTC campaigns with about 30 brands -- which he described as "exponentially" more than the launches from the previous two years. Still, Jensen said that DTC is an increasingly important part of the overall program at the company. "The vision of DTC from the top has shifted and changed," said Jensen. And a lot of that was thanks to the pandemic-led e-commerce boom. "We look at DTC now as not necessarily the end all be all, but a really important part of what we call the connected commerce journey." Different brands have different needs. For example, General Mills has upstarts from its incubator program -- and the company uses DTC tactics to gain helpful consumer fit data. The conglomerate also launches standalone websites for product drops, like it has for limited-edition Wheaties boxes. While General Mills does use e-commerce as a revenue driver for some brands, it is still very small compared to the company's vast distribution channels. And, at the end of the day, the company's playbook depends on each brand. "We lean on our brand teams, they are the brand experts. They're the ones who know their products, their partnerships, their consumers the best," said Jensen. "We come in with the DTC capability of knowing the tech stack, knowing what works, knowing how to ship products... we're the coach versus the quarterback, and we let them take control."

'I was laughed out of the room': How Bokksu founder Danny Taing bootstrapped his business to a $100M valuation
Bokksu, which connects U.S. customers with Japanese snacks, is still bullish on subscription boxes, according to its founder and CEO Danny Taing. The company, which first launched in 2016, began by offering a subscription box that featured Japanese snacks that were never before available in the U.S. Growth for the first few years was on the slower side, as the company remained mostly bootstrapped. Two years after launching, the company really started to hit its stride. And is now expanding beyond subscription boxes and launching its own marketplace. "In early 2018, we had about 1,000 subscribers, and in just one month, we grew that to over 3,000," Taing said on the Modern Retail Podcast. "It was because of this viral Facebook kind of campaign." With that growth, however, came some struggles. "The warehouse in Japan was not equipped to deal with triple the amount of orders," Taing said. "And that was way before I had a logistics team or director." But Bokksu was able to roll with the punches and still grow. The company has doubled its revenue and customer base every year since 2018. This came as other subscription box brands like Birchbox faced major headwinds. But, according to Taing, Bokksu never experienced subscription fatigue. "I think what helped was that we have a very strong underlying product that changes every month that a lot of people get a lot of value from," said Taing. "It's not faddy." Earlier this year, Bokksu closed a $22 million Series A round of funding, giving it a $100 million valuation. That happened after years of receiving nos from VCs. For Taing, it was validation that his company had staying power. With this cash infusion, Bokksu is focusing on its marketplace expansion. Still, Bokksu remains focused on its hero product. "Subscriptions are still the majority," said Taing. "That's our core thing."

'We don't want to be everything to everyone': W&P president Kate Lubenesky on evolving a modern kitchen brand
For the kitchen brand W&P, it's been a good time for the home products space. This week on the Modern Retail Podcast, W&P president Kate Lubenesky spoke about how the company has evolved and grown. "We had great growth in 2020 and 2021," she said. W&P first launched 10 years ago with its first product: a mason jar-inspired cocktail shaker. Now, the company has expanded a great deal, with hundreds of different products including cups, cutting boards, cocktail kits and ziplock bag alternatives. "We've really refined our point-of-view to be equal parts function and design," said Lubenesky. With that, W&P has figured out exactly what its brand voice is; "We don't want to be everything to everyone... we're really singularly focused on kitchen products." Lubenesky joined the company in early 2020, right before the pandemic began. She hailed from kitchen product stalwarts like Oxo. "When I walked into the door, we were really at this fantastic inflection point as a business where we had this great portfolio of products that was really starting to click and hum in the marketplaces and with our retailers, like Crate and Barrel, Sur La Table, William Sonoma and just all these wonderful culinary retailers," she said. But then, of course, the coronavirus spread around the world and changed everyone's plans. Even so, W&P was able to switch revenue gears and continue growing. Many wholesale accounts -- including independent gift shops and department stores like Nordstrom -- had to pull back on their partnership with W&P in early 2020. But other sales channels began to grow. The brand's Amazon sales, for example, went through the roof. Additionally, W&P's corporate gifting revenue skyrocketed. "Having that really healthy platform -- and a balance -- allowed us to thrive in 2020," said Lubenesky. Now, the company is focused on growing even more. That includes inking more wholesale partnerships -- if, of course, the retailers are a good fit. And there's also always product expansion. "We're really focused on product development and innovating and inventing new categories that consumers aren't even aware of that they need," Lubenesky said.

'Consumers have evolved': TalkShopLive's Bryan Moore on North America's growing appetite for livestream commerce
It's been a big year for TalkShopLive -- and for livestream commerce in general. The livestream commerce platform has been around since 2018. Until 2021, it was completely bootstrapped -- but it took a $3 million seed round a year ago this past February. Since then, TalkShopLive has been ramping up partnerships with major publishers and retailers, including Walmart and Condé Nast. Co-founder and CEO Bryan Moore joined the Modern Retail Podcast this week and spoke about the platform's growing presence. "2020 was when we started to see a lot of people come on with their books and music and have these blockbuster sales," he said. "It proved the model and proved the value for creators." Unlike other livestream commerce apps, TalkShopLive focuses on offering embedded streams. While customers can go to its website to see what programs are airing -- which, according to Moore, many people do -- brands and publishers can also host the streams on their own websites. In Moore's description, that makes for a better relationship for retailers working with publishers -- along with creators trying to launch their own commerce lines. "One of the things that we've consistently heard across the board from the creator front is that they really appreciate having a destination outside of their traditional social platforms to use as their shopping destination," Moore said. This comes as the livestream commerce space as a whole has seen big gains. Apps like Ntwrk and Whatnot have raised hundreds of millions of dollars over the last few years, and many experts say that North America is finally beginning to adopt the medium. According to Insider Intelligence, livestream commerce is a $300 billion market in China and western countries are increasingly testing it out as well. One of TalkShopLive's biggest recent successes is with Walmart. The big-box retailer tested out a few livestream programs in late 2021. Apparently, the company liked it -- Walmart has upped its programming by about 420%, said Moore, and has booked livestream commerce programs through the summer. "The brand experiences team at Walmart is really phenomenal and completely understands the value of this space and how to really maximize it for their customers and their suppliers," said Moore. For now, Moore is focused on growing TalkShopLive's partners and getting more retailers and creators testing out its offerings. "You're going to see a lot of other retailers launching over the next quarter," he said.

'All the packaging would look the same': Couplet Coffee's Gefen Skolnick on trying to reinvent a category
Couplet Coffee, which sells both coffee beans and coffee-related products online, is only a few months old and is trying to enter the market with a bang. Currently, it's available online as well as at select partners like Lotto.com's Players Cafe. Founder and CEO Gefen Skolnick joined the Modern Retail Podcast this week and spoke about the launch. "Couplet was my side project in college," Skolnick said. "I've just been obsessed with coffee for over ten years now." For the last year, however, Skolnick has been testing out to see if the brand could become a viable business. Much of this was done via limited-edition drops, as well as one-off retail partnerships at pop-ups like a recent Bumble-sponsored NYC cafe. In the beginning, Couplet's landing page was a barebones cashdrop site that sold a small amount (for example, 30) limited-edition coffee bean bags or products like french presses. These drops sold out quickly -- much of that driven, according to Skolnick, by social media buzz -- which gave more credence to the brand. Now, Couplet is trying to take things to a new level. While it still has small-scale partnerships with artists and drops limited edition products, the brand is trying to grow its permanent presence as well. It is currently in 17 retail stores nationwide. In addition to its online offerings, which went live earlier this year, Couplet is opening over 20 coffee cart locations at Players Cafe. Skolnick said more expansion announcements are on the horizon. Growing this type of company was new terrain for Skolnick. Despite only being in her mid-20s, over the last few years, Skolnick had worked in a variety of capacities -- from software engineering to DTC marketing to investing. But, she hadn't really honed in specifically on coffee before. So Skolnick grew her network to get a better understanding of the space. "I spent all of last year... figuring out how operations work, figuring out how DTC brands do what they do, figuring out how coffee companies do what they do and creating an advisor and investor ecosystem that could help me figure it out," Skolnick said. All this helped Skolnick raise a seed round of funding in 2021. This education isn't over now the Couplet has officially launched -- but the plan is to continue growing the company. While Skolnick is seeking out more coffeeshop and retailer partnerships, she's also hoping to grow the product line and keep Couplet true to its roots. Even with the growing amount of external partnerships, Skolnick said, "we're primarily a DTC brand."

'Bringing every one of our stores to profitability': Gorillas' Adam Wacenske on the burgeoning quick commerce space
Lightning-fast delivery services are taking cities like New York by storm. And Gorillas is trying to be the leader of the pack. This week on the Modern Retail Podcast, Adam Wacenske, Gorillas' U.S. head of operations, spoke about the online grocery service's growth plans and strategy. Gorillas is a grocery delivery app that began in Europe, but is currently only available in New York. Its main value proposition is that it can give customers their items in the blink of an eye -- usually in less than 15 minutes. Last year, it raised nearly $1 billion in funding, and only a month ago the German-based company announced plans to raise an additional $700 million. That's because competition is stiff. There are a bunch of other delivery apps out there -- from GoPuff to Jokr -- that offer similar services of stocking dark stores with products and having couriers at the ready to deliver them to customers' homes. Though Wacenske said that Gorillas is focused on giving the best possible experience and having the fullest assortment of groceries. "From day one Gorillas has been focused on a full assortment," he said. "We've always had what was akin to a medium-sized grocery store." Wacenske knows a thing or two about being part of a fast-growing startup. His last job was at WeWork, and he spoke about how his past experience lent itself to this current role. "There's a lot of similarities to WeWork," he said. Specifically: both companies focused on growing physical presences and making them more convenient for their customers. Meanwhile, the beginning part of this year was difficult for some players in the fast delivery industry. Two companies, Fridge No More and Buyk both closed down U.S. operations in the course of a week. "It's super unfortunate," said Wacenske, adding that both companies' closures were "out of a lot of people's control." While those companies certainly faced difficulties with growth, Wacenske is optimistic about the future -- both for Gorillas and the fast-delivery space. "This is a really young industry in the U.S.," he said. "I can't fully predict as to what's going to happen, but there's certainly going to be more space for more opportunities and for more than one company in the future."

UrbanStems CEO Seth Goldman on making national flower delivery feasible
It may seem simple to order a bouquet of flowers and have it delivered to your home, but a lot of work goes into such a task. On this week's Modern Retail Podcast, Seth Goldman, the CEO of online flower and plant delivery service UrbanStems, discussed the ins and outs of the e-florist business. Over the last two years, UrbanStems saw year-over-year growth in both 2020 and 2021 -- even after the company shut down its local delivery services in March of 2020, which resulted in a 60% decline in its business at that time. But when things reopened in July, the company was back on track and "revenue growth continued to scale," said Goldman. Indeed, sales grew 130% in 2021. Now, with these two years in the rearview mirror, Goldman says he's figuring out what parts of the business to invest in. "For all brands, it's about starting to make sure that all of those customers that tried us out are sticking," he said. Venture funding is helping with that. Last year, Urban Stems raised $20 million, giving it a valuation north of $100 million. This year, Goldman is trying to continue figuring out how to best use that money. One of his focuses is on building out the infrastructure that allows the company to deliver its flowers. Meanwhile, Goldman is also investing in both the technology and user experience side of things. Lastly, the company is also investing in its team and growing its headcount. Goldman spoke about all of those aspects of the business -- infrastructure, technology and talent -- and how he's thinking about prioritization. "There's a lot of work to continue to do across all three," he said.

Sabai's Phantila Phataraprasit on building a sustainable furniture brand from the ground up
For direct-to-consumer furniture brand Sabai, sustainability reigns. The brand, which launched in the summer of 2019, and saw a growth spike in both 2020 and 2021 -- much of which was spurred by the pandemic-induced home boom. According to co-founder and CEO Phantila Phataraprasit, much of its growth was thanks to increased interest in sustainability. Sabai's products -- which range from sofas to ottomans -- are all produced with sustainability in mind. [Sustainability] can be in so many different things and be applied to so many different aspects of a business model," said Phatarapsit. "We try to apply it to every single aspect." She joined this week's Modern Retail Podcast and spoke about the company's growth. Sabai sources recycled material for all its products, as well as uses plastic-free shipping. The brand also just launched a buy-back program in the hopes of making it possible for its used products to not be thrown out. According to Phataraprasit, this has resonated with customers. "We maybe didn't appreciate how much people throughout the country care about sustainability," she said. She had originally thought Sabai would be popular in places like New York and Los Angeles, but it turns out people in smaller even suburban areas were also interested. Now, the hope is to grow and get the word out even more. Phataraprasit spoke about Sabai's social media plan -- which includes using its Instagram following for product research, while also investing in other smaller, visually-driven advertising channels like Pinterest. The idea with all of Sabai's social content is to build a brand that customers clearly understand its point of view and values. "The community that we had on Instagram was very much part of [our product development] process," she said.

Umamicart's Andrea Xu on building an online Asian grocery startup
Umamicart is trying to bring authentic Asian grocery items to more U.S. consumers. The app launched in early 2021 and, according to co-founder and CEO Andrea Xu, has been seeing double-digit growth month-over-month. It offers Asian products from sauces to meats to vegetables, growing from 400 SKUs at launch to now over 1,000. Xu joined the Modern Retail Podcast this week and spoke about the trials and tribulations of growing a digital grocery startup. According to Xu, Umamicart began because of a gap she saw in the market. Namely, for many people it's hard to find Asian-specific grocery items beyond specialized grocery stores that are usually in specific, often metropolitan areas. "If you're lucky enough that you're near an awesome Chinatown, that's super great," said Xu. "But not everybody has that." So, the idea with Umamicart is to bring those types of products to more people. Currently, it is available in 11 states -- with plans for more expansion following a $6 million fundraise that closed in December. But the concept isn't to just bring a large Asian grocery store online. Instead, Xu and her co-founder have been working to partner with small- to medium-sized Asian brands and suppliers to give them another channel to sell their products. "People ask me a lot: 'why can't I buy this at Whole Foods?'" said Xu. "I'm like, well, Whole Foods is not working with the number of suppliers that we're working [with]." Now, the focus is on expansion -- both geographically and product-wise. "We're probably going to at least double our catalog within the next few months," said Xu."Geographically, we also plan to expand. I'm not sure exactly to which exact locations, but we're definitely going to be expanding this year."

‘It’s all about walking the walk’: Reformation’s Hali Borenstein on the clothing brand’s next moves
It’s been a turbulent few years for Reformation, but the women’s clothing and accessory brand is forging ahead. According to CEO Hali Borenstein, the focus now is on building trust both with customers and employees. “It is all about walking the walk,” she said on the Modern Retail Podcast. Borenstein became Reformation’s chief executive in 2020 when its founder and then-CEO Yael Aflalo stepped down after a former employee’s social media post went viral that alleged unfair treatment of non-white employees and micro-aggressions such as being passed over for promotions in favor of white counterparts. (An external review of the allegations by a law firm published five months later asserted Reformation’s workplace to be “not racist”.) At the time, Borenstein was president and vp of merchandizing. “I think that the summer of 2020 really shined light on the fact that we did not have enough focus on our internal people,” said Borenstein. Now, she said, she’s looking toward the future. “My focus has really been not just on the growth of the business, but making sure that our team everyday feels like they are heard and valued,” she said. Reformation focuses a great deal on transparency and sustainability. According to Borenstein, one of her most important moves as CEO was being open and honest about all parts of the business. “Not every decision is an easy decision,” she said. “But I will share with you why I made a decision and why the leadership team is thinking about something in a certain way.” Growth is another a big focus for the brand. The company currently has about 25 locations globally -- and has plans to open more over the next year. “We really believe in having more stores,” Borenstein said. “And then, within our store experience, we also want to continue to innovate on it so that we’re really building the best experience possible.” While 93% of Reformation’s business is direct-to-consumer, the brand does have a few wholesale partnerships with retailers like Nordstrom. But, according to Borenstein, “we use them for strategic purposes -- mostly [building] brand awareness.”

One Stripe Chai founder Farah Jesani on pivoting from cafés to DTC
In 2019, startup chai brand One Stripe Chai saw coffeeshops as the ticket to its success. Then the pandemic came and everything changed. After a bumpy few months, the brand focused predominately on its direct-to-consumer website and finding online customers. And while its foodservice business has resumed, founder and “chief chai officer” Farah Jesani says she’s still focused primarily on growing the DTC sales. Jesani joined the Modern Retail Podcast and described the quick change. Right before 2020, Jesani said, One Stripe had over 70 coffeeshop wholesale accounts. “That’s where I was like, okay, this feels like this is a viable business. This feels like something we can really grow,” she said. Then the pandemic hit and “everything tanked.” At that time Jesani was faced with a decision: does she close up shop or does she pivot? She opted for the latter, and began testing out consumer-focused products and packaging -- something she had never done before. After a few months of trial and error, it worked. The brand got written up in publications like Bon Appetit, and this helped launched the DTC business -- which Jesani says has remained pretty profitable since launch. “To date, we’ve barely put in any ad dollars,” she said. Now that things are opening back up, Jesani is focusing on growing both DTC and wholesale channels -- although supply chain hiccups have made things slow going. As Jesani described it, 60% of her focus is on DTC and 40% on other retail partnerships. With that, she’s enthusiastic about the prospect of more growth. The hope now, she said, is to find a national retailer. I would love for our concentrates to be in Whole Foods,” she said. “More than that, I would love our concentrates to be the concentrates that are used at the coffee shops at Whole Foods.”

‘Bringing the market to its full potential’: Dia&Co’s Nadia Boujarwah on growing the $21B plus-size market
Online apparel marketplace Dia&Co is trying to tap into the $21 billion inclusive sizing market. Within the last few years, more brands have begun introducing a wider range of sizes. But according to co-founder and CEO Nadia Boujarwah, most businesses are only scratching the surface. Boujarwah joined the Modern Retail Podcast this week and spoke about Dia&Co, as well as the current state of plus-size apparel. Dia&Co has been around for six years, and has witnessed big shifts in brands’ plus-size strategies. “If you look at what the supply side of the [plus-size] equation is doing, it is remarkably anemic,” Boujarwah said. “About less than 20% of apparel dollars that are spent in the U.S. each year are spent in those sizes.” Her company has been trying to change that. Inclusive apparel has had its ups and downs over the last few years. Between 2018 and 2019, more brands were entering into the space than ever before, Boujarwah explained. But the coronavirus changed a lot of product roadmaps. Throughout that time, Dia&Co was focused on bringing a platform that women could trust to provide clothing choices in many sizes. Now, said Boujarwah, more brands are once again doubling down on plus-size options, which is giving Dia&Co a helpful boost. What’s more, there’s a large and growing group of plus-size influencers that Dia&Co has been tapping. Currently, the company partners with upwards of 500 influencers every month. Though Dia&Co has dabbled in building its own brands, Boujarwah said the company is primarily focused on connecting customers with other apparel giants like Madewell and Wacoal -- as well as helping those brands better market their plus-sized offerings. With that, Dia&Co has a huge opportunity at its fingertips, said Boujarwah. “We have always been a multi-branded retailer and a multi-category retailer. So our audience is broad,” she said. “Within that, we can serve different price-points.”

‘It starts with the product’: Firebelly Tea’s David Segal on building a modern tea empire
DTC startup Firebelly Tea is hoping to help the hot steeped beverage reach the celebrity status of coffee. That’s according to co-founder and CEO David Segal, who joined the Modern Retail Podcast this week. Segal isn’t new to the tea world -- he founded one of the biggest tea retailers in North America, DavidsTea. After selling his shares in the company in 2016, he is now embarking on a new tea journey. Tea, said Segal, “is the second biggest drink in the world, next to water,” even though, he said, “North America is a little bit late to the party.” “There’s a reason it’s been around for so long,” Segal said. “It’s really that good -- especially high-quality loose leaf tea, which is what we’re trying to show people with Firebelly.” The idea, for now, is to make a direct-to-consumer destination with Firebelly. But rather than just selling tea leaves, Segal wants to provide the entire experience. So, Segal has spent the last few years sourcing good tea blends along with the best types of tea products -- such as kettles and thermoses. “The key is the product, it starts with the product,” Segal said. “You can have a great marketing message, you can drive trial, but when it’s all said and done, people have to love the product and want to come back.” Firebelly’s other co-founder is Shopify president Harley Finkelstein. In some ways, the two experiences complement each other. Segal brings the tea industry know-how, and Finkelstein navigates the e-commerce world. “I think that the world has changed a lot since I launched DavidsTea, selling online has improved a lot,” said Segal. “One thing Shopify has done is create this whole ecosystem that really levels the playing field for merchants to be able to sell.” And, for now, that’s the plan. Sell tea and tea products online, and hope to grow the business from there. Of course, given his past retail experience, Segal is still open to the idea of brick and mortar. “I’m not ruling out the possibility of opening some retail stores,” he said. “I think there might be an opportunity down the road, certainly ones that are highly experiential.”

‘Not a flash in the pan’: Win Brands Group’s Kyle Widrick on growing a DTC roll-up company
Win Brands Group has been around since 2017, but this is the year the DTC roll-up strategy is really beginning to gain steam. The company owns a slew of online businesses, including the candle company Homesick and the weighted blanket brand Gravity. According to founder Kyle Widrick, things have been building nicely since inception, but thanks to big pandemic-related changes Win is now set up for more growth. “We’ve built up our holding company and our structure and our process in such a way that we plan to do a third vertical and a fourth and a fifth,” he said on the Modern Retail Podcast. “And this will continue for a decade-plus to come.” Most recently, this week, Win announced that it raised $40 million and acquired a new company to its portfolio: a hat brand called Love Your Melon. On the program, Widrick spoke about his ambitions for LYM, as well as the crossroads many founders of growing online brands face. “It was clear they were going to have to hire a tremendous amount of more people to get to success on Amazon and at retail,” said Widrick. “So the question becomes: Do you want to build that yourself and hire those folks yourself? Or do you want to partner with someone like Win?” Another big topic in the e-commerce space is the rise of roll-up companies. Though Win has been around for a while, other firms -- many of which like Thrasio and Perch are focusing on marketplaces like Amazon -- are continuing to grow and amass large amounts of venture capital funding. According to Widrick, his company and the others are different for a variety of reasons. One of the big ones being branding: Win Brands Group looks to acquire companies with a notable brand, while many other roll-ups are looking for fast-selling SKUs. Ultimately, said Widrick, that leads to the ultimate ambition he has for his company. “We’re partnering with great founders and making bets on great brands that we plan to be around for the next 20 years-plus,” he said. “These are not flash in the pan -- in and out -- these are long-state businesses that we’re betting on for the long term.”

‘Unapologetically loud and fun’: Ghia’s Mélanie Masarin on the sober curious movement
The non-alcoholic drink, which launched in 2020, tastes similar to a European apéritif. And, according to founder and CEO Mélanie Masarin, there’s growing demand. She joined the Modern Retail Podcast this week and spoke about Ghia’s journey thus far. One of Ghia’s big markers is its branding. Ghia is available in the U.S. in both cans and bottles, and has a very retro eye-catching look. This was all by design. “I really wanted Ghia to not be another pastel-colored millennial brand,” Masarin said. Instead, she focused on the looks and feels of more analog iconography, like old restaurants. “We had to be unapologetically loud and fun.” This look has helped the company grow. It launched at the beginning of the pandemic, and was initially sold only online. But even so, Ghia was able to grow. Sales, Masarin said, have nearly tripled year-over-year. Now the focus is on getting more people aware of the drink. Some of that may include a foray into more physical retail stores and restaurants, she said, but that also comes with its own costs. “Everything is more expensive,” she said. “We are just being really thoughtful and trying to basically build redundancies with every single vendor that we can.” What’s more, she’s confident that there will be continued interest in non-alcoholic spirits. “This is not just wishful thinking,” Masarin said. “I do believe there’s a shift.”

‘A fundamental shift’: Consumer investor Mags Kala on the growing crypto space
The leap from Richard Branson to crypto isn’t that big, as it turns out. For venture capitalist Mags Kala, all it required was quitting her day job. Kala used to work at Bain Capital, helping out big brand names like Shea Moisture and Virgin Voyages. But one day she decided to leave it all behind and strike it out on her own. After about a year of going solo, she’s become especially keen on the Web3 space. On this week’s episode of the Modern Retail Podcast, Kala explained how and why she made the jump. For her, as a consumer investor, she wanted to be on the ground floor of the biggest changes in regards to how regular people spend their time and money. That’s what initially turned Kala on to the world for crypto. What was it that made it click? According to Kala, an expensive digital avatar of an ape. “Joining the Bored Ape NFT craze was very eye-opening for me,” Kala said. Here, she was describing the company Bored Ape Yacht Club, which auctions off pixelated pictures of apes using blockchain-based contracts and cryptocurrency. While it’s a phenomenon mostly for people online (with a lot of money to spare), Kala said the rise of these NFT artists made clear many other things as well. At its core, these types of new programs hit at a base-line question she’s always trying to answer as a consumer investor, Kala said: “What’s truly next for the consumer economy?”

PepsiCo’s Fabiola Torres on making Rockstar Energy relevant with gamers young and old
Energy drinks are in the midst of a renaissance. According to Fabiola Torres, CMO and svp of PepsiCo’s energy drinks category -- which includes big brands like Rockstar -- the renaissance is about finding who the core customer is. Her focus, she said on the Modern Retail Podcast is to “really go deep into storytelling, making sure that our products continue to get better and better.” Torres joined the PepsiCo team in April 2020, right when the pandemic hit. Before, she worked at high-end brands like Beats By Dre and Nike. In her eyes, she was excited about leading the marketing for a ubiquitous product that still resonated with unique subcultures. That’s no easy task, however. Energy drinks have a bunch of connotations, and their popularity has risen and fallen like changing tides. But as gaming platforms continue to reach new users, and with Gen Z being such a driving force of culture, energy drinks are making a comeback. According to July data from IRI, the energy drink category grew 11.6% year-over-year. PepsiCo’s strategy with Rockstar, which it acquired in 2020, is to team up with people and events that are popular in the communities it wants to target. This includes teaming up with Microsoft on its latest Halo release, as well as a bunch of influencer campaigns. That’s especially true for social campaigns; “When we talk about TikTok, it works with influencers that have the reach,” she said. The hope is to find the gaming, youthful zeitgeist while also figuring out areas for growth. What’s more, according to Torres, Rockstar is just the beginning of energy drinks under Pepsi. “The future is bright for us,” she said.

Fast fashion, livestream shopping & DTC holding companies: The Modern Retail Podcast’s year in review
Another year has come and gone, and big changes came to the retail industry. Giants like Shopify and Amazon grew even bigger, while older retail models like department stores suffered. Meanwhile, online brands saw big growth but faced their own unique set of headwinds. And newcomers, like fast fashion mobile app Shein, became more of an everyday staple. This week on the Modern Retail Podcast, we decided to take a look back and dive into some of the most important issues we wrote about over the last twelve months. Reporters Maile McCann and Saqib Shah as well as managing editor Anna Hensel all dove into the topics they thought drove 2021's retail narratives. These storylines give some insight into what’s ahead. Online strategies remain top of mind for companies both big and small. Meanwhile, people are discovering products in new ways.

Chain Reactions: Oats Overnight's Brian Tate on building a CPG plant
Oats Overnight, a spoon-free, protein-based drinkable oatmeal, has been made in-house since the company began. Founder and CEO Brian Tate started Oats Overnight in 2016 out of his kitchen, and after about a year of formula development, began selling the bottled oats via the brand’s website. Part of the decision to vertically integrate production was due to difficulties Tate found in securing manufacturers for the product’s unique formula. “At a very, very early stage, we opted to do it [production] ourselves for the flexibility,” Tate said on the Modern Retail podcast. Fast forward five years, Oats Overnight has a growing customer base and new partnerships with Wegmans, Whole Foods and The Fresh Market. The brand tripled its active direct-to-consumer subscribers – from 10,000 to 42,000 – during 2021. This year, the company is up 150% in revenue year-over-year, hitting $25 million in sales in November. As a result, the company’s existing 20,000 square foot Arizona plant wasn’t cutting it. With that came the need to upgrade to a bigger oats-blending plant, said Tate. This year the company has grown to over 100 employees – including 40 on the production line – and is in the process of moving to a 50,000 square foot facility. But running a food plant isn’t as simple as it seems, and requires a lot of financial capital and labor to run smoothly, Tate explained. This conversation is part of Modern Retail’s Chain Reactions series, in which we explore the quick and long-term investments retail brands are making amid the supply chain woes.

Chain Reactions: Paravel’s Andy Krantz on getting creative to make the most of container ships
As securing space on container ships gets more expensive, brands are coming up with creative ways to make sure their products take up less space. One such company is DTC luggage brand Paravel. Since launching in late 2016, the company has been working on ways to reduce its carbon footprint and optimize its freight routes. One reason for this is because the majority of Paravel’s products are made across Asia and in Italy -- two hubs that experienced delays during the pandemic. These delays prompted co-founders Indré Rockefeller and Andy Krantz to get creative with Paravel’s container packing methods. Instead of shipping empty suitcases, in the past year the company created a packing consolidation program for its manufacturing and loading crew. This process entails nesting Paravel suitcases and carry-on bags inside each other before being shipped to the U.S. While this requires a lot of coordination between manufacturers and offshore logistics, the results are worth the planning, co-founder and CEO Krantz said on the Modern Retail Podcast. This program is also influencing Paravel’s future product design and configurations. “There’s an element of innovation and spatial consideration that this process has introduced and made tangible for everyone on the team,” Krantz said. “From our production and product development folks, to our marketers, to our finance and operation teams.” This conversation is part of a series, called Chain Reactions, in which Modern Retail explores the quick and long-term investments brands are making to minimize their supply chain woes.

Chain Reactions: Exploding Kittens’ Carly McGinnis on diversifying manufacturing
International manufacturing continues to create headaches for American brands. For card and board game maker Exploding Kittens, producing the majority of its products in China has had a domino effect on its overall distribution process. “We’ve had challenges for two years now,” Carly McGinnis, head of production, sales and logistics at Exploding Kittens, said on the Modern Retail Podcast. That’s mainly because “about 90 to 95% of all of our goods are produced in China,” she said. In 2020, Exploding Kittens’ initial challenges were not so much with production or freight coming out of China -- but more so with shuttered warehouses domestically. This year, like many others, Exploding Kittens’ logistics team is dealing with double the manufacturing timetables, as well as bottlenecks at California’s ports. The company has experimented with manufacturing in other places over the years. “We’ve produced things in Poland in the past, but China just offers efficiency, quality materials and speed to market like no other location worldwide for us,” said McGinnis. “So we’ve been tremendously reliant on China since the beginning of the company.” Still, the accumulating issues have led the company, which launched in 2009, to look for production facilities outside of China -- starting with Mexico and Poland. Furthermore, it’s exploring more trucking routes from alternative import ports, like Seattle, Washington. While these alternatives have their own downsides, McGinnis said it’s important to continue diversifying away from a rigid supply chain. This conversation is part of a series, called Chain Reactions, in which Modern Retail explores the quick and long-term fixes brands are making to minimize their supply chain woes.

Chain Reactions: Scout’s Deb Waterman Johns on implementing a pre-book wholesale model
If a boutique wants to carry products from handbag maker Scout, they are going to have to plan ahead. In mid-2020, Scout transitioned to a pre-book wholesale model, which entails giving retailers an opportunity to secure their orders “almost a year in advance,” founder Deb Waterman Johns said on the Modern Retail Podcast’s new series: Chain Reactions. Previously, Scout took retail orders on an as-needed basis and by estimating demand for their upcoming seasonal designs. “It’s a commitment on our part, as well as on their part,” she said of the upfront booking and payment transactions, Waterman Johns said. Wholesale retailers are a major part of the company’s business. Scout, which launched in 2004, and sells its handbags across roughly 50 stores, including local boutiques, gift shops and drugstores. This episode is the first in a series where Modern Retail explores the quick fixes brands are making as a result of the supply chain craziness experienced over the last year-plus. Chain Reactions will dig deep into short-term decisions that had longer-term effects. For Scout, its big change was to the way it handles orders. Waterman Johns said that because of the pandemic’s impact on these smaller accounts, Scout wanted to create a better system for wholesale orders. The shuttering and restructuring of many boutiques and gift shops -- where Scout sells its tote designs -- prompted Scout to want to better understand how it produces and distributes its inventory to wholesale partners, Waterman Johns said. For a business, selling out of products is usually a great thing. However, Waterman Johns said the company wanted to transition into a more efficient “newer normal,” in which Scout ensures its retail partners have access to the merchandise they want while the brand has better insight into its in-demand styles and patterns. So far, the results have been positive, Waterman Johns said. With advanced pre-booking, Scout can also better communicate inventory volume to its overseas manufacturers. Whereas previously, the company was “guesstimating” its wholesale demand (and selling off excess to off-price retailers in later seasons), the new pre-book model has helped avoid over or underestimating demand.

‘Our storytelling is our marketing’: Healthy Roots Dolls founder Yelitsa Jean-Charles on growing a modern toy company
Yelitsa Jean-Charles says she was able to grow her business by being authentic. Jean-Charles is the founder and CEO of Healthy Roots Dolls, which makes toys that represent more diverse backgrounds. “I never really had dolls that look like me growing up,” she said. So, she designed Healthy Roots’ first product, Zoe, which Jean-Charles described as “a little brown girl with kinky curly hair.” Zoe was first devised in 2014 as part of a school project. In 2018, Jean-Charles launched a Kickstarter that raised $50,000. Earlier this year, the company raised a $1 million seed round. And, this past October, Healthy Roots landed in over 1,200 Target locations. Jean-Charles joined the Modern Retail Podcast this week and talked about the company’s journey. Jean-Charles was able to grow the company by posting about her life and experiences. “I talk about loving yourself, I talk about hair, I post selfies, I post about my traction with my company,” she said, “I think it’s really authentic and it clicks with people.” In her eyes, that authenticity part is key. “I don’t think there’s any formula to going viral other than consistency and great content that speaks to a broad audience,” she said. Even so, virality presents a double-edge sword. “Going viral is terrible,” she said. “You run out of inventory, you don’t know when it’s going to be back.” Indeed, when a post of hers went viral earlier this year, Healthy Roots was already sold out of stock. She decided to use the moment as a way to gather preorders. While people waited for their dolls to get in stock, Healthy Roots provided updates. “We started doing Facebook Lives, Instagram lives, sending weekly updates,” Jean-Charles said. “We wrapped it around a narrative of Zoe coming back from a trip.” True, Zoe was at sea, but she wasn’t exactly sailing on a cruise boat -- more of a container ship. These touches are what have helped Healthy Roots grow. For now, it’s focused on one doll and its accessories. But Jean-Charles sees a bright future. “I think it would be a disservice to not explore every opportunity that presents itself to tell a story and connect with children,” she said.

‘It’s not a blank canvas’: Teva’s Anders Bergstrom on how the sandals brand capitalized on recent fashion trends
It’s a good time to be an outdoor apparel brand. According to NPD Group, outdoorwear sales are up 45% this year, and some brands have been able to dominate this growing fervor. Teva, the shoe brand known for its velcro strapped sandal, has seen sales grow. In the ’80s, when the sandals first hit the market, Teva was the leader in the space. Then, after a couple decades of dominance, fervor died down, as other competitors like Chacos and Keens began to encroach on its territory. But over the last three years the company has been focused on reemerging as a footwear leader. “In short order,” said Anders Bergstrom, Teva’s global general manager, “we’ve retaken the number one position in sport sandals.” Bergstrom joined the Modern Retail Podcast and spoke about how he’s been handling all the curveballs thrown over the last few years. Teva -- which is pronounced ‘teh-vah,’ not ‘tee-vah’ -- has been around since 1985. “The idea -- the notion -- of a sport sandal did not exist until 1985,” said Bergstrom. Teva, he explained, was the first of its kind. “What Teva did was introduce an active component to the sandal category in a way that had not been done before,” he said. That has been the North Star for the brand -- and it’s long been associated with its well-known classic style. But the brand has been staying relevant with new styles and even brand collaborations. Some partnerships include the singer Jhené Like, Outdoor Voices and Cotpaxi. “The sport sandal itself is so iconic -- it’s so unusual -- that, for lack of a better term, collab partners just have a field day tweaking it,” said Bergstrom. “It’s not a blank canvas -- it is just a number of straps that are attached to a midsole.” What also has kept Teva relevant of late is the fact that a certain type of outdoor apparel has become quite fashionable. What some describe gorpcore -- which includes outdoor classics like Patagonia vests and hiking boots -- has become all the rage in New York fashion circles. Said Bergstrom, the way to know a fashion trend is on the horizon is to look at what’s going on in Japan. “What we call gorpcore is really just the way people in Tokyo dress, said Bergstrom. “It’s really fascinating.” He went on to explain how this has led to a new apparel adage. “If we ever have a question about whether a product is going to work or not, [ask] can you see it on the streets of Tokyo?”

Corkcicle CEO Chris McDonough on how the brand partners with Disney
For Corkcicle, the company’s mantra is to focus on innovation through partnerships. The company, which makes a variety of consumption-focused products like cups, travel mugs and wine coolers, has spent the last decade expanding the types of items it makes. And over the last few years, its business has really begun to ramp up. Sales have been growing year-over-year and, according to CEO Chris McDonough, the company is nearing $100 million in annual revenue. Much of that is thanks to some big-time partnerships Corkcicle has inked over the last few years. For example, the company has worked with Disney on a variety of capsule collections for both Star Wars and Marvel franchises. It’s also worked with bigger names in the art world like Basquiat. “It’s moved on a lot from its original days, as I think about the size and scale of the company and some of those partnerships,” said McDonough on the Modern Retail Podcast. “But that DNA of innovation and pushing those boundaries really lives through every day within the business.” On this week’s program, McDonough spoke about how the company thinks about product expansion, as well as the ways it works with partners. One of his big focuses is on constant newness. “We’ve got a very defined brand positioning,” he said. “We have eight areas of innovation -- category expansion that we’ve identified... and within those eight verticals, what we’ve done is mapped out an innovation pipeline for the next three years.” In short, McDonough is focused on making sure Corkcicle is expanding and scaling for years to come. The past two years have been difficult to deliver on such ambitions. Much of that is due to supply constraints and other pandemic-related hiccups. Still, McDonough said Corkcicle was still able to grow and deliver on its promises. One of the most important ways the brand has stayed successful amid these challenges was by being upfront and candid with its business partners. “What we’ve had to do is just keep really open lines of communication,” he said. Rather than put our head in the sand, we’re just really open with retail partners.”

‘A tide that lifts all boats’: Hims co-founder Joe Spector on entering the pet telehealth space with Dutch
Telemedicine has taken the human world by storm, and Joe Spector thinks the next frontier is pets. Spector is the founder and CEO of Dutch, which offers telehealth services for pet owners -- connecting them with veterinarians virtually. He has some experience in this space as Spector is a co-founder of Hims -- another DTC telemedicine startup best known for its balding and erectile disfunction over-the-counter services. According to Spector, there’s a huge white space for pet care. “I just realized all this innovation that I was a part of on the human side [with Hims] just has not translated at all on the pet side,” he said on the Modern Retail Podcast. So, he decided to bring some of his expertise to the pet care space. Dutch launched this year and is still relatively limited in its coverage. It is available in eight states and offers support for behavioral issues like anxiety and skin issues like rashes for both dogs and cats. “We’ll be growing to having national coverage pretty soon,” One of the big hurdles he’s overcoming is red tape and protectionism. One may think that pet health regulations are more lax than those for humans, but Spector says that’s just not true. His mission, he said, is going state by stating and “changing that red tape.” It’s a playbook he’s familiar with, but that doesn’t make it easier. Right now, his focus is on making both customers and pet health professionals trust Dutch and understand the brand. “The ethos of the company is health care and actually solving the problem,” he said.

‘DTC is still our main focus’: Bearaby’s Kathrin Hamm on navigating online with retail partnerships
During the pandemic, most people sought comfort -- and many of them turned to weighted blankets. Bearby, which makes knitted weighted blankets, saw sales grow more around 5x in 2020. This year, things aren’t slowing down. According to founder and CEO Kathrin Hamm, revenue is on track to double in 2021. “It has been quite a ride,” she said on the Modern Retail Podcast. Though Bearaby considers itself primarily a direct-to-consumer brand -- most of its sales come from its owned online channel -- it has had an interesting distribution trajectory. Only a few months after first launching in 2018, the company inked a deal with West Elm. Since then, the partnership has grown to more Williams-Sonoma brands, and Bearaby has continued to increase its retail footprint with other retailers like Nordstrom. Even with these partnerships, the majority of Bearaby’s sales come from online. And Hamm said she wants to keep it this way, because of product education. “When I had my first weighted blanket, there was no education around it -- it was like, here’s the thing, figure it out,” Hamm said. But, on Bearaby’s website, the company is able to properly explain what a weighted blanket is, what the benefits are, and how to use it. Retail, in this regard, also boosts online sales. In new geographies where Bearaby doesn’t see many online sales, being featured in a store can help teach people about the product. “In most cases, they didn’t know about weighted blankets,” Hamm said. She pointed to the recent Nordstrom partnership, where Bearaby’s products were placed in markets the company has traditionally not targeted. “We’re, for the first time, in markets where we as a brand don’t have a strong presence,” Hamm said. “And already, in the early weeks, we see a lift on our DTC side.” For now, Hamm’s primary focus is to get more people to know about both weighted blankets and Bearaby.

‘Chefs are the new athlete’: Made In’s Chip Malt on how the cookware brand taps culinary influencers
One of the ways direct-to-consumer cookware brand Made In has grown was through its connection with chefs. “Chefs are the new athlete,” said co-founder and CEO Chip Malt. That idea has been core to Made In’s growth. Malt was the most recent guest on the Modern Retail Podcast -- his interview was recorded live at the Modern Retail Summit, held in Palm Springs last week. Indeed, Made In -- which first launched in 2017 -- has inked multiple deals with celebrity chefs, including “Top Chef” judge Tom Colicchio and Mozza co-owner Nancy Silverton. Made In sells to restaurants, which make up only 5% of its total sales. But its partnerships with these chefs have helped Made In become a more prominent cookware player. Malt said sales grew 5x in 2020. The idea behind Made In, he said, was to make a cookware brand that had real brand loyalty. “Food is a very emotional category,” he said, but most people think of recipes or the food itself, rather than the tools they use to make the dishes. “We couldn’t think of anything where people care less about the brand affinity in a space of a product they use so much.” To try and create that brand affinity, Made In has tapped a deep network of culinary professionals. And, as a happy side effect, the company’s business-to-business sales have grown. For now, they remain a drop in the bucket -- but Malt said that the chef community “makes up way larger than 5% of our mindshare.” By focusing on those tastemakers, he said, “it’s an organic growth through that community.”

‘We don’t want to be everywhere’: Glasshouse Fragrances founder Nicole Eckels on its U.S. launch
After hitting it big in Australia, Glasshouse Fragrances is testing out the U.S. market. The company makes luxury candles among other high-end products, and since launching in 2005, has become one of the biggest candle companies in Australia. Now, it is focused on international expansion after launching in the U.S. last year. It is currently available in over 1,200 retail locations in the country, and has expanded to body washes, soaps and diffusers. Founder Nicole Eckels joined the Modern Retail Podcast and spoke about how she built the brand and her strategy surrounding the U.S. expansion. “Scaling to the U.S. was very difficult because we have grown a very big business for our category in Australia,” she said. “And it took all of our resource just to supply that [Australian] market and to serve as that market.” Indeed, over the last 15 years Eckels has been trying to perfect her Australian business. In the early days, she was doing everything from scratch. She had a background in sales, but not so much in manufacturing. “It really was a matter of trial and error,” she said -- figuring out how to make the right products and get them in the right hands. “It was really really tough in the beginning,” she said. But now, she said that the timing is right and it’s time for Glasshouse to bring its products to the U.S. Eckels is doing this by establishing an online presence -- both direct-to-consumer as well as on Amazon. She is also seeking out distribution from independent retailers. “We’re not trying to just be everywhere and get mass distribution right away,” she said. Still, there’s a lot of work to be done. For one, she is still building out Glasshouse’s brand presence in the States. With that, she’s trying to find the right retail partners. For a luxury brand, she said, it’s a difficult balance -- and that’s what she’s figuring out now. “We are a luxury brand,” she said. “We don’t want to be everywhere but we don’t want to be too difficult to find either.”

‘Billion dollar brand’: Kids Foot Locker’s Jill Feldman on the retailer’s ambitions
Kids Foot Locker has big plans to be the number one shoe retailer for kids. According to Jill Feldman, the vp and general manager of Kids Foot Locker, she aims to make it a billion-dollar brand. “That’s not quite doubling [where it is now],” she said on the Modern Retail Podcast, “but we have had really big momentum recently.” There are a few major things Feldman is focusing on: for one, expansion. That includes expanding the product selection, but also Kids Foot Locker’s retail footprint. “We actually are planning on expanding our store base, which I know is a little bit unusual in retail right now,' she said. Part of that mandate is finding the best new locations, she explained, while also diversifying away from older spaces like malls. “We’re finding ways to really become embedded in the neighborhoods where our customers live,” she said. But physical expansion is only a small part of her focus. Feldman is working on revamping the entire in-store experience, as well as continue forging unique brand partnerships. Her team is “coming up with amazing collaborations between [companies like] a food brand or sometimes toy brands,” she said. All of these endeavors are aimed at targeting Kids Foot Locker’s core customers: sneakerheads. For the most part, that title is often thought of as a certain type of (often male) hype beast. But, according to Feldman, “we have a young generation of sneakerheads as well.” With this, the hope is to continue growing the Kids Foot Locker brand -- both in customers, revenue and stores. “It’s one of the fastest-growing banners in all of Foot Locker,” she said.

‘Our goal was not just to bring oat milk to Brooklyn’: Oatly’s North America president on the brand’s growth plans
It’s 2021, and oat milk has become a mainstream phenomenon. One brand leading that charge is Oatly. It’s a nearly-30-year-old Swedish company, but only expanded to the U.S. in the last five years. But its expansion helped spur a nationwide acceptance of dairy alternatives. Mike Messersmith, Oatly’s president of North America, joined the Modern Retail Podcast this week and talked about the brand’s growth, as well as the category as a whole. Oatly started its U.S. expansion in coffeeshops, and that helped it expand into retail; “people discover it, they talk about it and they want to buy a larger carton at the grocery store to bring home,” he said. With that, Oatly is now available nationally and in major retailers including Target and Whole Foods. In tandem with this increased distribution, the last two years have been huge for the milk alternative brand. According to Messersmith, over half of Oatly’s customers in 2020 were new to the brand that year. According to its most recent earnings report last June, the company brought in $146.15 million in revenue, a 53% jump from the year before. And while oat milk is often considered a more bourgeois product, Messersmith said he is intent on getting everyone in the country to drink it. “Our goal in this was not just to bring oat milk to Brooklyn and the arts district in LA,” he said. “I want people ordering oat milk lattes where I grew up in northeast Pennsylvania.” So far, those plans seem to be working out. The milk alternative category as a whole is exploding. Plant-based milk saw 20% year-over-year growth in 2020, hitting $2.5 billion in revenue, according to data from Spins. Oat milk sales specifically tripled in 2020. For now, his focus is on getting people to try oat milk, as well as very conscientiously expand Oatly’s product line. Last summer, for example, the company launched a series of soft-serve flavors. Even with this growth, Messersmith was clear that his strategy isn’t to take things for granted. “We’re still at the very early stages.”

'Basically profitable since day 1': Saatva co-founder Ricky Joshi on tackling the luxury mattress market
Over the last year and a half, people have increasingly invested in their homes. And mattress brand Saatva was able to capitalize that demand. The ten-year-old company saw revenues almost double over the last two years. In 2017, the company disclosed that it made $207 million in revenue. According to co-founder and chief strategy officer Ricky Joshi, Saatva has been "basically profitable since day one." He joined the Modern Retail Podcast and spoke about how Saatva has been growing and expanding its product line. Saatva has tried to establish itself as the producer of a higher-end mattress made with more sustainable materials. According to Joshi, the intention since day one wasn't to raise a lot of money and, as a result, be forced to scale in a short amount of time. "We really went out there and just tried to organically build the best business possible, being really disciplined in terms of how we managed our spending," he said. The company hasn't raised any VC money, but did receive a private equity investment in 2018 for an undisclosed amount. In the early days, the focus was on making a few products -- namely mattresses -- well, as well as capitalizing on the then-nascent digital marketing landscape. Now, the company is beefing up its advertising efforts and has expanded to other products, including bed frames, sheets and comforters. Joshi said more products are on the horizon too. With that, Saatva has also been increasingly expanding its retail footprint. It has a New York showroom that currently brings in $8 million of revenue a year. Now, the brand is opening new locations in cities like San Francisco, Washington, DC, Portland and Boston. Joshi said that the New York location "significantly exceeded our expectations." With the new stores, Joshi said he's trying to figure out the right goals. For smaller cities, for example, direct sales in stores will be more important than those with larger populations where a store can have greater impact on the overall market. "Every story has its own KPIs and goals," he said. The next year is critical for Saatva's growth, in Joshi's eyes. The company is ready to open more stores, launch new products and gin up more brand awareness. "We're going to take advantage of the growth in the home furnishing sector," he said. "Particularly the luxury part of the home furnishing sector."

St-Germain’s Emma Fox on the growing apéritif market
It’s been an unpredictable year-plus for the spirits industry, as alcohol consumption shifted away from bars to the home and, now, slowly back to bars. But that presented a unique opportunity for the apéritif brand St-Germain. The Bacardi-owned elderflower-based liqueur has benefitted from growing demand for apéritifs. But according to Emma Fox, the VP of the brand, St-Germain has also been taking great pains to get more people to know it exists. Fox started working at St-Germain about a year and a half ago. Her mandate, she said on the Modern Retail Podcast, was about “making sure that we have the right ambassadors and people that work with us.” Before, a drink like St-Germain would focus predominately on distribution in upscale bars. But Fox has updated her marketing strategy to get the bottle in the hands of both consumers and influencers. Of course, that doesn’t mean bartenders are no longer important. Hospitality professions, she said, “are a part of the fabric of St-Germain.” But, with the coronavirus causing many bars to rethink their businesses, so too did St-Germain have to update its marketing playbook. Much of the focus over the last year, she said. was on making “very very simple content.” The idea was to get more people to understand exactly what the aperitif is. Now, things are accelerating even more -- and Fox is planning bigger promotions and events. At the same time, she said, St-Germain is trying to stay focused on what it is and to whom it caters. “You’ve got a North Star to guide you,” she said. “[Otherwise], I think you can get very easily distracted in a number of ways.”

‘Sometimes marketers get blinded’: Cuisinart’s Mary Rodgers on how the appliance brand stays current
Cuisinart is generally known for one thing -- its food processor -- but the company has been expanding its reach in the kitchen for decades. In fact, the brand is moving beyond the kitchen into new parts of the home. Most recently, Cuisinart launched an air purifier. That makes for a tall order as a brand marketer. This week on the Modern Retail Podcast, Mary Rodgers, Cuisinart’s director of marketing communications, spoke about how her overall approach has evolved as Cuisinart’s product line has evolved. Rodgers has been at the company for 25 years. That’s a long time -- but her role has only expanded over the years. “The real reason I’m still here is because I work on all these exciting aspects of the business,” she said. “Sometimes when you get in certain companies, you’re very narrow in your field of vision. I like that I have a lot of influence over all of the brand marketing for the company.” Her scope is quite large. She runs the brand’s DTC business, which in 2018 moved from outsourcing fulfillment to bringing it all in-house. The company purchased a fulfillment center in Arizona and used it as a hub for all of its distribution. It held all the inventory for online orders, as well as handled customer fulfillment for online orders from other retailers. In essence, Cuisinart now controls all of its own distribution. “It tightens up the whole system,” she said, “because we’re not shipping an item to a retailer who is then shipping an item to a consumer -- you’re compressing the entire system, basically.” Beyond that, she controls all the other aspects of brand marketing -- which includes well-known channels like search and TV, as well as more experimental channels like TikTok. While Cuisinart is testing out the new app, Rodgers was clear that marketing campaigns must “always tie everything back to strategy.” Since the early days, Cuisinart has tried to compile as much first-party data as it can about its customers. Today, Rodgers is trying to systematize that even more. One of the big things she’s paying attention to is lifestyle changes. Before, items like Cuisinart were often gifted during big life events like weddings. Now, wedding culture has changed and Cuisinart is trying to find ways to remain relevant. With that is the main goal and conundrum of her job. “We have to understand the big picture,” she said. “Where are our consumers?”

‘The perfect storm’: How Brunt is building a DTC apparel brand for trade worker
Eric Girouard hadn’t planned on launching his company during a pandemic, but that’s what ended up happening. Girouard is the founder and CEO of Brunt Workwear, an online apparel company that began selling its first products -- work boots -- a year ago. While Brunt had been in the works well before the coronavirus first hit, Girouard was faced with a decision in March 2020 of whether or not to delay the launch. Ultimately, he decided against it -- and, in fact, did the opposite and ended up launching earlier than planned. He joined the Modern Retail Podcast this week and discussed how the last year has gone. Sales thus far have been good. “We’ve consistently grown 63% month-over-month since we’ve launched, said Girouard. Brunt was able to grow because people in the trades have had to continue working, pandemic or not. “There was about a two week [work] hiatus,” he said. “And then a lot of our core customers -- the real construction worker, the trades worker that was really building the economy in the country during one of the most challenging times -- were deemed essential.” What’s more, most of these people bought their work gear in person at stores -- but they were forced to find new products online. Those two issues meant that Brunt had a possible way to enter the market. Another big facet of Brunt’s strategy is its brand ambassador program. Before Brunt launched, Girouard spent hundreds of hours seeking out influencers in the trades. These weren’t your usual Instagram-famous accounts -- they were people who recorded themselves doing grueling work and amassed an audience of fellow workers. These are the accounts Girouard wanted repping the Brunt brand -- and this growth strategy, he said, has worked. While Girouard is happy with the current trajectory, he’s excited to get Brunt’s name in front of more people. “At the end of the, day being less than a year old, less than 99% of the country knows Brunt Workwear exists yet,” he said. “We’re just so early in our life cycle.”

‘We are fortunate to have a subscription model’: Bark CEO Manish Joneja on capitalizing on the pandemic pet adoption boom
According to the dog toy and accessories brand Bark, that’s led to an increase in demand. During its latest quarterly earnings report, the company reported that subscription shipments shot up 52.4% year-over-year, hitting 3.6 million. And revenue grew 57% year-over-year, coming to $117.6 million. According to CEO Manish Joneja, the plan is to grow and expand. Joneja joined the Modern Retail Podcast and spoke about the last year and his big plans for the brand -- which went public via a SPAC in June. Joneja is relatively new to Bark, which first launched in 2011. He was brought on as CEO in September of 2020, coming from Amazon. “What brought me to Bark is what I shared: my love for dogs,” Joneja said. “The market right now serves you as a transactional commerce.” Bark, conversely, is built more on building a relationship. “The foundation of Bark is built on high-level personalization with high-touch service,” he said. The focus is on expanding into new areas -- such as food and dental care -- as well as acquiring more customers. For now, Bark will remain focused on dogs. “We want to make sure we serve the 63 million households [that currently own dogs],” he said. “That’s a tremendous opportunity -- you want to get that right first.”

‘We’re not entering 20 new categories’: Magic Spoon’s Gabi Lewis on building a modern cereal brand
Gabi Lewis thinks the cereal world is ready for an upgrade. That’s why a few years after he sold his first company, a cricket protein startup, he co-founded Magic Spoon. The brand, which first launched in 2019, is sold entirely online and offers a variety of different protein-filled cereals for around $10 a box. The idea with Magic Spoon, said Lewis, was to “take cereal through the innovation that we’ve seen in categories like ice cream or candy -- where brands have come in and they have just flipped the protein and sugar on their heads.” Lewis joined the Modern Retail Podcast and spoke about how he built the Magic Spoon brand, as well as where he sees it going from here. The one thing Lewis is intent about is Magic Spoon’s focus on cereal. “We’re not entering 20 new categories,” he said, “we’re not going into 30,000 retail stores.” Instead, the company has just focused on just offering its cereal, which currently comes in eight flavors -- including ‘cookies and cream,’ ‘maple waffle’ and ‘fruity’ -- as well as limited edition products that get released every few months. The idea was to create a standalone brand for health nuts who want a healthy breakfast that’s reminiscent of their childhood. According to Lewis, growth has been steady for the last two years. And demand grew even more during 2020. Like many other online grocery-adjacent brands, Magic Spoon saw an explosion of demand during the early days of the pandemic. “We did see a massive increase in demand across the board,” he said, “I think just because there was an increased desire to purchase food online period.” He added that “obviously some of that is continued [and] some of it hasn’t.” Despite industry fluctuations, Magic Spoon has tried to find new ways to discover customers. Rather than focus predominately on Facebook and Google, the company has built out a robust network of influencers who have evangelized the brand since the beginning. Similarly, Lewis has been testing out other new advertising channels like podcasts and television. All of this, according to Lewis, has helped prepare Magic Spoon to continue its steady growth. He is insistent that, despite the look and feel of the product, Magic Spoon is not out there to totally eat General Mills’ lunch. And that, he maintains, is its ultimate competitive difference. “We’re not cereal,” he said. “We are protein powder in the shape of cereal.”