Boll & Branch's CEO Scott Tannen reveals how direct sourcing, specifically working with cotton growers, fueled their growth to over $200M in revenue by enabling strong margins and a resilient supply chain. This episode offers key insights into building a long-lasting brand through strategic vertical integration, thoughtful retail expansion, and a long-term business vision, moving beyond typical DTC models.
For high-end bedding brand Boll & Branch, the secret to growth has been on direct sourcing and keeping profitability always in mind. That's according to founder and CEO Scott Tannen. Boll & Branch first launched in 2014, and is currently bringing in more than $200 million in revenue a year. He chalks up this success to the way he built out his supply chain. While most DTC companies claim to cut out the middleman, Boll & Branch doesn't merely go to the manufacturers to make sheets. Instead, it works directly with cotton growers, which Tannen said made for a more robust business. "When you disrupt that supply chain, you have an opportunity to build a margin profile that's really, really strong," he said. "You're not living and dying by only buying your consumers." It also helps that some high-profile people like his products. "Among our fans include pretty much every living president at this point," he said. Jenna Bush, for example, is a brand ambassador for the company. And Tannen added, "I was very lucky that President Clinton invited me to meet him because he loved the product so much." Tannen joined this week's Modern Retail Podcast and spoke about Boll & Branch's growth. Much like other bedding brands in the space, Boll & Branch operated mostly online for many years. Then, shortly before the pandemic, it opened up a few stores. For obvious reasons, the company focused less on retail expansion. It did, however, ink a few wholesale partnerships with the likes of Nordstrom and Bloomingdale's. Now, Tannen is focusing once again on retail growth. The company is opening up three new stores this year, with plans to potentially open more after that. As Tannen described the retail strategy, "I'm thinking about: where are we winning? And where can I win bigger? How can I think about gaining more share where I'm leveraging a strength?" Another major lesson Tannen learned is to make every business decision with a long-term vision in mind. "We're always fo