Firehose #173: 🥛 Wild Oats. 🥛

The direct-to-consumer wave began in the twenty-tens as a new generation of startups promising to “disrupt” traditional industries for consumer goods. Instead of leaving the market to century-old stalwarts like Gillette, for example, a company like Dollar Shave Club, founded in 2011, would set up its own supply chains to manufacture razors; add cle... See more

Highly venture-backed DTCs largely have two pathways to longevity and success. They can sell to an incumbent, much in the same way that Bonobos and Jet.com have sold to Walmart, or they can try their luck and go public. The incumbents are willing to overlook the less than ideal DTC economics because what they’re buying isn’t a business model, it’s ... See more

Warby Parker might have started the DTC trend, but the true awakening came with Dollar Shave Club and Harry’s interrupting the somewhat ridiculous Gillette domination of razor blades at mass/retail. Would-be entrepreneurs and VC investors mistook this unique category situation (single dominant incumbent player, ridiculously high margins, small/ligh... See more

Building a beverage brand used to be a function of buying advertising, courting the right distributors and merchants, designing attention-grabbing packaging, and paying the right bribes to get good placement at retail.