Chase Harrow

I have worked extensively across the CPG brand life cycle…from dying zombie brands (Triscuit in 2007) to hyperbolic, DTC growth engines like Dr. Squatch. Here’s the weird thing I’ve discerned. Your team is most in control very early on. Every move has enormous impact. One small-ish seeming operational mistake could lose your only national distribution slots and end you. Once you are $500M and above..the obsession with control only grows in intensity but now exists in inverse proportion to your actual control over demand. This is why enormous humility is required at both stages…but for different reasons. Startup humility is about surviving the roller coaster of your own ignorance and ego. Moving fast and learning fast. Midmarket humility is about tweaking what little you really control in a business driven mostly by consumer behavior and retail ecosystem shifts. And disciplined, almost pessimistic, skepticism… Do not hire folks who just lived in the latter fish bowl for your startup. No matter how cheap they come. Do you see why?

39

6 Comments

Quick mid-year check in on the macro situation for health & wellness focused #emergingbrands. Key point IMO: this remains one of the best times (literally) ever to be selling premium better-for-you products in the US. Consumer incomes, Inflation moderation, & wealth-effect are all good (and improving) driving very strong demand. Higher end shoppers are continuing to power right now. Continued bifurcation between high & low HH’s is real and not great, showing value & showing up in the right channels has never been more important. Retailers everywhere looking for great innovation and brands that can deliver real growth. The energy that was evident at #expowest was real and continues. I've seen no real evidence of any significant movement away from healthier options across HH income levels or channels. Consumers do seek value (always), but they want the products to meet their health needs too. Brands delivering both $ and unit growth are in the drivers seat. There could be pockets or categories I cannot see where this is not the case, but I think the big picture holds. The #emergingbrand financing environment remains terrible, especially at friends & family, seed & A rounds before scale. I'd have thought that would be better as the year has gone on but I've seen or heard no evidence of that yet. Seen lots of great brands you'd expect to raise easily just getting squashed. Investors remain cautious, careful, and outside the big deals you hear about everyone chasing, it remains a financing nuclear winter. Hope this changes soon because the macro environment is one of the best ever and there are some potential big brands of the future out there just needing the capital to scale. Please share if you see anything different, love to hear perspectives across the brand and investor landscape.

185

26 Comments

Excited to have been featured in Modern Retail to comment on contingency planning for startups. One of my favorite industry publications There have been lots of reports outlining the turbulence in the DTC/CPG ecosystem around partners going out of business. Distribution partners like foxtrot, lenders like Ampla, even banks back to the collapse of SVB last year. In this post ZIRP era where belts are getting tightened all over the economy, those belts oftentimes are tightened around the necks of the little guy - the every day SMB owner. Contingency planning is 100x more important in a contractionary macro period and when you are struggling to even get your business off the ground, it can easily fall to the back burner. I advocate for always having backup relationships with mission critical service providers in order to easily fall back if required. Tactically, this involves just a few extra meetings a quarter understanding how different service providers are able to meet your needs, and throwing them a bone every once in a while to keep relationships warm. Additionally, you should always have a downside case built out in your financial plan for when things do not go according to plan. Know where you will cut, where you will zig and zag. You don't have to do it in iris but you do have to do it Thanks Anna Hensel for writing https://lnkd.in/gcdtzZgd

21

Curious about how to navigate the ever-changing influencer landscape? Join me tomorrow at Morning Brew's NYC event, "Perfecting Your Influencer IQ" where I'll be speaking with Mae Karwowski, Founder & CEO, Obviously & Kyle Hagge, Chief of Staff, Morning Brew about: 🌟 Consumer Sentiments: Understand the current attitudes and behaviors about influencers. 💡 Maximizing ROI: Strategies to leverage influencer partnerships effectively. 📈 Trends: Discuss the latest trends shaping the influencer landscape and how to stay ahead. It's not too late to register: https://lnkd.in/dwvaDSiZ #InfluencerMarketing #ROI #ConsumerInsights #MarketingTrends #MorningBrew

126

4 Comments

Some bets we’re making with Barrel Holdings: 1) We’re excited about Shopify’s focus on enterprise and believe in the growth story. → Both Barrel and Vaulted Oak have continued to expand our Shopify Plus footprint, working on increasingly complex e-commerce projects. 2) We are bullish on the growth of Webflow and excited about its Website Experience Platform (see recent acquisition of Intellimize). → BX Studio will follow Webflow in moving upmarket and continuing to expand our base of Webflow Enterprise clients. → This means expanding our services to include more UX + content strategy, personalization, A/B testing, and analytics, all necessary to serve more sophisticated Webflow customers. 3) We believe clients value speed when it comes to sales and marketing. → Our bet with Bolster is to offer design services for sales and marketing teams that help them speed up their processes and impact results. → This includes being innovative with design processes and AI. 4) Remote work is here to stay. We’re 100% comfortable keeping our teams fully remote. → We’ll invest in team get-togethers and in-person meetings with clients, but no need for offices or return-to-work mandates. 5) Workforce is global, we’re working with people from all over the world in both salaried and contractor capacities, and it not only helps us save costs but also provides access to some incredible talent. → Our agencies play in very competitive markets so we have to stay sharp and continue to deliver for existing clients while landing new ones. → Our investments across our agencies will prioritize talent (delivery) and sales & marketing (new opportunities). Less than 3 years ago, we only had Barrel. It’s been fun to see the holdco come alive.

104

12 Comments

South Asians are the fastest-growing group of Asian Americans, representing 25 - 29% of the Asian American population. So why is it so hard for brands to market to them? This untapped market is often seen as “complex” or “risky” by many brands because there is a lack of understanding of the diverse cultural pockets and nuances. From bindis to hijabs... From Diwali to Eid... From Ganesha to Allah... From turmeric to cardamom... From Hindi to Urdu and Bengali... The flavors and traditions of South Asian Americans are diverse. If you need help on how to go beyond stereotypes and create authentic culturally rich opportunities to connect with South Asian American audiences, #LetsChat! I'm teaming up with Afshan Nasseri and the Aam Creative 🥭 team on their Cultural Consulting work. We're available to explore AAPI Heritage Month campaign support, customized workshops and trainings for your Employee Resource Groups and staff, and help you plan for relevant moments throughout the year. Get the details on how our cultural expertise and insights can help: https://lnkd.in/gfJzViNS. And bonus points: if you scroll to the bottom you'll find a ✨ FREE ✨ data-driven educational resource: The South Asian Gen Z Report! #AAPIHeritageMonth #GenZ #InclusiveMarketing

33

2 Comments

Let’s not forget the abject distain #CPG #emergingbrands who sold primarily through retail channels faced and heard from venture & PE investors, as well as all the DTC “native” brands out there in the 2017-2021 time frame. We at Once Upon a Farm heard a lot of it. “You wanna sell through Whole Foods? Good luck with that“. “You’re focused on retail and will get a 2X multiple, we can get 10x, let’s merge so my multiple helps yours”. “Good luck making money with all those middlemen”. Now the same investors and entrepreneurs are falling all over themselves to take their brands to retail as fast as they can, the ones lucky enough to not already be road-kill. “Omni-channel” is the thing today. LOL. Shocker. The zero interest rate, DTC-only, spend anything you want stupidity period is over, good riddance. Welcome to the retail battlefield, where margin for error is short, and memories are long. May the best brands, doing the best work for consumers and the consumer ecosystem, win.

607

56 Comments

As we discussed last week, Gen Z’s massive spending power is reshaping brand strategies across every consumer industry. Here’s how some brands are responding: * Caribou Coffee is creating a dating show on TikTok. * Bojangles is launching Instagram-famous menu items like Bo-Berry cookies. * Chicken Salad Chick is tapping local influencers for improved imagery and virality. While these are good first steps, the companies that will truly win the Gen Z market will be those that rethink their entire customer experience, with a focus on digital engagement. Gen Z is the first generation to grow up with smartphones. Viral mobile apps like Duolingo, Clash of Clans, and Strava show that gamified experiences and a sense of community are key to retention. Restaurants of the future will need to offer digital experiences that are both fun and community-driven, blending online and in-store interactions into a cohesive, engaging journey. Gamification is crucial, but so is integrating all customer touchpoints. Whether it’s ordering online, dining on-premise, engaging on social media, or participating in branded events, the experience needs to be seamless and consistently engaging. For Gen Z, great food isn’t enough; the overall customer experience must be meaningful and memorable. At Hang, we allow brands to also offer rewards for non-purchase actions, such as engaging on social media, completing branded challenges, playing minigames, or referring friends. Brands can even offer gated specialty products or experiences to the most loyal customers to create a sense of exclusivity and “VIP treatment” for their superfans. We provide the tools for any brand to undergo a true digital transformation and redefine their engagement with customers across every touchpoint. If you’re a restaurant looking to adapt your digital strategy for the modern consumer, I’d love to tell you more– DM me!

8

Loved that this week’s No Stupid Questions by Beauty Independent and Rachel Brown was prompted by my wise partner Rich Gersten! Of course, I agreed with him 😉 but so did many of our colleagues to a certain extent. Not all superheroes wear capes 🦸‍♂️, but all founders have superpowers 💪🏻! And I firmly believe in finding those superpowers, augmenting them, and letting them have the most positive impact on the business, while also aligning with the founders passions and interests. Sometimes that means bringing in #1 or #2 in roles ranging from CEO, President, GM, COO and several combinations in between. The most important considerations when making this big decision are whether founder and executive have: ⚡️Defined roles and responsibilities between the founder and executive (know each other’s lane); ⚡️Clear and thoughtful reporting structure for the organization (everyone knows who they report into); ⚡️Mutual respect and trust (let each other do your jobs) And of course, as a founder, pick your partner wisely. Always. Check out the full article for great insights from Tina Henry Bou-Saba Manica Blain Deborah Benton Sarah Woelfel Rohit Banota Rebecca Levin Jeremy Triefenbach and many others beauty industry colleagues! True Beauty Ventures #beautyinvesting #beauty #VC

48

7 Comments

I just had a eye-opening convo with a distributor about how they *really* analyze CPG brands... and it might change your whole approach: Here's what catches their eye:  👉 Unique differentiators in your pitch. Not just "we're better," but truly standout features.  👉 A website that screams your differentiator. It should be impossible to miss.  👉 A prominent store locator. This shows you're already making moves in retail.  👉 A product that aligns with their retailer account base. The bottom line: Getting on shelf is SO MUCH MORE than just "connections" and "outreach." Before you approach a buyer/distributor, ask yourself: • Is my pitch customized for this unique audience? • Is my brand's USP clearly communicated across every potential touchpoint? (website, packaging, sell sheet, etc) • Is my brand's digital presence set up for wholesale? Too many brands are out there cold calling and DM-ing buyers/distributors without this groundwork—it's like trying to build a house without a blueprint. What else does it take to be "distributor-ready?"

142

27 Comments

July's Faire Market is right around the corner... here's my playbook for higher sales: In January, Faire Market featured 26k brands and 57k retailers—facilitating over 105k new relationships between brands and retailers. Here's how you can prepare + make the most of the Market this July: 1️⃣ 1st week of July: Schedule your promo. Tier the promo. Make sure your products are up to date and optimized for the algorithm (aka update imagery, keywords) to increase discovery. 2️⃣ 2nd week of July: Send a campaign teasing days until the market. Post on Instagram Stories and LinkedIn promoting your Faire direct link. 3️⃣ 3rd week of July: Create collections for summer, for your bestsellers. Send another countdown email. 4️⃣ 4th week of July (Market days): Message buyers with your products in cart and buyers who haven’t reordered in a while. Run a day-by-day countdown campaign highlighting products & deals. This is what I'll be doing with my clients! If you have any questions about making the most of Faire Market, comment below 👇

30

2 Comments

I spent my entire weekend following the Kendrick Lamar vs Drake rap beef. Here’s what it taught me about CPG marketing: 1. 🙅‍♀️ Comparisons: As a small brand taking on a huge category (Health & Wellness), we’re always thinking about how to show they're NOT LIKE US. Comparison-focused content does wonders here in breaking down why you’re better than what’s on the market (here’s one of our first viral videos comparing our Immunity Icon mix to Emergen-C: https://lnkd.in/gsufCMGr) 2. 🙌 Purpose: Family matters, your brand matters too. Many of the larger legacy brands are mainly focused on one KPI: profit. Is your brand for the people or just profit? Convey your mission, ethos, and why you exist beyond your product and customers will rally behind your brand (along with their $$ too). 3. 🗣️ Allegations: Competitors and even prospective customers will ALWAYS have negative things to say about your product. Your job is to address these claims head-on and even “diss” back - this builds even more trust with customers while effectively marketing why you’re different at the same time (example: https://lnkd.in/gQAcbvKm). 4. 🎼 When a marketing cord strikes, double down. When Kendrick dropped a hit track (Euphoria) on Drake, he didn’t stop (Meet the Grahams) -- don't give your competitors room to breathe when something resonates with the audience (super effective when paired with #3). 5. 🤷 Just have better product/material - Kdot won a Pulitzer Prize for a reason 😅 To sum it up: lean into why your products and brand is different in every way while not being afraid of standing on business when the opportunity arises. Follow for more tips (and catch up on the rap beef if you haven't yet - it's the best we've seen in decades). #kendrick #drake #rapbeef #marketing #cpg #marketingtips

21

6 Comments

💡 How can DTC Brands Beat the Performance Plateau? 💡 DTC Founders and Investors: If your business is approaching its third birthday or hasn't been able to sustain growth, it's time to think beyond performance marketing and start building your brand NOW. Data from DTC brands, including Glossier, Warby Parker and Bombas, shows that organic growth tends to slow dramatically around the 4-year mark. According to analysis by former Kantar marketing effectiveness guru Nigel Hollis https://lnkd.in/eaeR7dUP a balance of brand and performance marketing focused on acquisition and retention is key.   Key Takeaways:   🔔 Brand & Performance Spend Balance: Invest in both brand marketing and performance advertising to sustain growth. This is critical as once brands reach a certain size, continued growth means reaching outside the existing pool of available customers. This means converting competitors' loyal customers or bringing different people into the market - tasks that typically can't be done with performance marketing.   🔔 Diversify Channels: Use multimedia approaches like TV, outdoor, and digital to build brand awareness and experiment.   🔔 Retail Presence: Don’t just rely on online sales—consider physical channels to reach more customers.   🔔 Retention & Acquisition: Focus on acquiring new customers while retaining existing ones. For retention, ensure your products are high-quality and perceived as a good value.   💬 What has worked for your business to continue to grow beyond the 4-year mark? Please comment below or message me to discuss further.   #BrandGrowth #DTC #MarketingStrategy #Brand Growth #Advertising #marketingperformance #DTC #eCommerce  

7

Many have asked why I'm prioritizing China 🇨🇳 for CC Spicy 🌶‘s growth. Here's why: 👍🏼The health-conscious middle class is transitioning from purchasing luxury brands to demonstrate status. They’re focusing on their health and fitness. 🌐With nearly 1 BILLION online shoppers, China is a massive market, even for food items (https://lnkd.in/gDyFy6nC). 👩🏻‍💻Live stream selling is huge, surpassing traditional e-commerce platforms like Taobao (https://lnkd.in/g7a4Qc5m). 🇨🇦 Canada's top food safety ranking makes it appealing to Chinese consumers. 💰You don’t need the distributors and brokers! I’ve started talking to a few Canadian CPG brands that are interested in tapping into the Chinese market. DM me if interested! 🇨🇳 If you still think China is poor, dirty and dangerous, you’re absolutely wrong. Watch this video. https://lnkd.in/gWs5phav #china #globalexpansion #internationaltrade #dtc #cpg

16

7 Comments

THC beverages are going mainstream... The most recent example: Cann x Barstool Sports The two brands announced a strategic partnership earlier today that'll integrate Cann beverages into Barstool media properties including podcasts, videos, and other social content. Just in time for 4/20. Though marketing of cannabis beverages remains murky this deal makes perfect sense given Barstool's ability to organically work products into content + the similarities in audience makeup between the two entities. This is also likely an attempt by Barstool to recreate some of the success it had in helping launch High Noon back in 2020. That engagement helped propel High Noon to the top of the RTD bev-alc world, resulting in a multi-billion $ business for Gallo E & J Winery. So Can(n) this be the 2nd coming of High Noon? The potential is intriguing but it'll be a long road ahead. As it turns out, beverage as a product format remains outside of the top 5 ways consumer prefer to ingest THC today. Here's the breakdown (Numerator data) Edibles - 67% Flower - 48% Vape Cartridge - 37% Pre-rolls - 32% Topicals - 21% Beverages - 14% Certainly surprising to see beverage so low on this list, but to Barstool's benefit Gen-Z'ers are much more likely to opt for bevs. --- We just finished a full analysis of the modern cannabis consumer. If you'd like to see the report drop a comment on this post / shoot me a DM and I'll send it your way. It's eye-opening. Fascinating times in the world of cann-bev... #cpg #cannabis #partnerships #research #beverages

282

46 Comments

Who is the guy who helped MrBeast launch "Feastables"? Ben Acott, is the CEO of Magnetic Labs (billion-dollar brands at breakneck speed) and the CMO of Feastables the SVP @ Manscaped, and the CPG at Facebook or so his profile says. So what is Magnetic Labs, a venture studio & fund that builds iconic brands alongside the world's most influential creators, celebrities, and athletes. He worked directly with MrBeast launching and scaling Feastables as the brand's CMO. And if that is not Big Boss enough for you, he also scaled Manscaped, a men's grooming brand, to $300M in annual sales via e-commerce. He's a board member, advisor, and investor to 40+ brands including JuneShine, the most popular hard kombucha brand. Feastables, Manscaped, JuneShine, ... what do these brands have in common? Other than Ben and Magnetic Labs? Well they all: - Got extremely creative with their marketing strategy - Leaned in on creator marketing - Created a strong community of loyal fans Let's dive into each... as when I did this with Ryan Reynolds you all loved it. Let's start with the Wonka one first.... Feastables MrBeast built a large community of loyal fans before launching "Feastables". He singlehandedly created a new playbook for creator-led brands. Jimmy is a pioneer in creator-led brands & original marketing but did you know that the @Feastables marketing team named one of the candy bars "Deez Nuts", but had to change the name after being sued by a Florida-based company Dee's Nuts. The team turned a "loss" into a huge marketing opportunity, as Jimmy regularly brings the lawsuit up in his videos. His loyal fans still refer to the candy bar as "Deez Nuts" even though he legally can't, proving how strong his fans and community are Jimmy Donaldson (aka @MrBeast) understands the power of distribution- now lets go below the belt Manscaped is the first brand to focus on men’s below-the-waist grooming, with an electric razor for "down there" Let's be real, promoting this type of product can be awks however the team did an incredible job at embracing this AND taking risks. For example, by naming their electric shaver "The Lawn Mower". This startup is backed by Channing Tatum, so they heavily leaned into leveraging celebrities. JuneShine : The marketing team regularly hosts special events at their tasting rooms including new flavor launch parties with celebrity collaborators. The Marketing team did an excellent job leveraging these physical tasting rooms to increase online sales. So going IRL to increase online clicks. The brand also strategically selected investors that would act as brand ambassadors, like Diplo, Whitney Cummings, Cody Ko, and U.S. Women’s National Team soccer players Ashlyn Harris and Ali Krieger. What Can we Takeaway from these: 1) Get extremely creative with your marketing 2) Build a strong community of loyal fans 3) Focus on partnerships with creators and influencers as they already have distribution.

10

1 Comment

This is such a great article by Errol Schweizer, a former Head Merchandiser at Whole Foods Market. If you ever wanted to know how grocery prices are set, this is a great read. One note, consumers often look at a price and assume the brand is getting 50% or 60% of that price. The reality is the price on shelf it typically 3, and sometimes 4x what the brand sold it for, because of the multiple levels it goes through before getting on shelf. Keep that in mind next time you think brands are gouging you with pricing. And be sure to subscribe to The Checkout, Errol's highly insightful newsletter on the grocery industry. https://lnkd.in/ghspEwgK #grocery #inflation #cpg #foodprices https://lnkd.in/getCKZaW

29

4 Comments

“It’s really hard… to develop a disruptive shoe on Zoom.” Said Nike’s CEO, who blames remote work for lackluster business growth. The thing is, Zoom is not where the actual work gets done. Much of the work involved in designing footwear (CAD, graphics, simulation, research, etc.) is done on computers. Nike spends billions of dollars a year on marketing. Meanwhile, their shoes are overpriced and fall apart after minimal wear. They need to revisit where they are falling short of delivering customer value. Innovation does not come from a specific location. It comes from engaged employees who feel appreciated enough to push their creativity to another level. Adidas & Under Armor seem to be fine remotely, according to the stock market 🤷‍♀️ #futureofwork #nike #remotework

23

10 Comments