The retail entry playbook for CPG brands has been rewritten
(And why Costco isn’t where brands go to die anymore!)
The playbook for CPG brands entering retail from DTC has been completely flipped on its head.
Remember the old days?
—Start DTC
—Add Amazon
—Get into GNC or VitaminShoppe (they’d battle for exclusivity)
—Sprinkle in NBTY/VitaminWorld
—Make the big leap into drug stores and grocers
—Land the ultimate prize: Walmart
Then—and only then—brands would “go to die” in Costco.
Not anymore.
Here’s the seismic change: brands can actually LAUNCH at Costco and thrive!
I did it the “old way” with our children’s supplement, Voots.
It worked marvelously well… until it didn’t.
Distribution demand came too fast.
We added doors faster than production could supply.
We weren’t matured enough for what was about to happen.
Costco’s volume absolutely blew away our grandest expectations.
We couldn’t keep up with demand and eventually got the boot.
The rest of our retail distribution began to fall apart and crumble.
Shame on us.
Today, brands are smashing through this outdated stigma.
Look at Brad Woodgate‘s Joyburst and NO SUGAR COMPANY brands.
I’ve lost count of how many new products he’s launched directly into Costco clubs.
So if anyone hands you a “definitive playbook” for scaling from DTC to retail,
they’re out of touch with today’s reality.
Every brand is nuanced.
What truly matters is your company’s:
–Product type (advantage to those you can sample)
–Capabilities (with a slant toward brand management)
–Supply chain (with definitive strengths in inventory planning and logistics)
–Cash reserves (or a RLOC to support inventory growth)
With the right fit, you can win in any channel—even Costco.
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🎯 What’s your distribution channel strategy? Is it working? (If you need help putting one together, feel free to reach out)