Copper Cow Coffee's journey from a wholesale-dominant brand to a DTC powerhouse offers a compelling case study for CPG entrepreneurs. Learn how strategic pivots in response to market shifts, particularly during the pandemic, and leveraging opportunities like "Shark Tank," can transform revenue streams and foster brand community. This episode highlights the agility needed to thrive in modern retail, emphasizing DTC for innovation and direct customer engagement while strategically re-evaluating traditional wholesale channels.
Key takeaways
Diversify revenue channels early; do not rely too heavily on one channel as market conditions can swiftly change (e.g., Copper Cow shifted from 90% wholesale to 20% due to pandemic impacts on department stores).
Leverage direct-to-consumer (DTC) channels not just for sales but also for community building and product experimentation, as it allows for direct feedback and agile innovation.
Re-evaluate the role of traditional wholesale channels; while department stores may decline, new opportunities in other wholesale sectors like grocery can emerge and grow significantly.
Be prepared for and adaptable to market disruptions; the pandemic forced a rapid shift in Copper Cow Coffee's strategy, accelerating its move to DTC and grocery wholesale.
Seek out and capitalize on "event-driven" boosts like a "Shark Tank" appearance to significantly increase brand awareness and direct sales.
Actively expand your product line (SKUs) and utilize DTC channels as a testing ground for new offerings to cater to evolving customer preferences and maintain growth momentum.
It’s been a crazy year for brands in the CPG space.
That’s what Debbie Wei Mullin, founder and CEO of Copper Cow Coffee, said on this week’s episode of the Modern Retail Podcast. The home-brewed Vietnamese coffee company has been around since 2017 and has been growing over the years. But the pandemic changed some strategies, as well as many of its revenue channels.
When Copper Cow first started out, it relied heavily on wholesale. It inked deals with both grocers the department stores as a way to get its name out. In those early days, it only had one SKU of pour-over coffee -- and 90% of Copper Cow’s revenue came from wholesale accounts, including Williams Sonoma and other high-end stores. Over the years, as Copper Cow built out its digital marketing and grew its product line, the revenue mix has changed. Today, only 20% of Copper Cow’s revenue comes from wholesale.
The pandemic accelerated that revenue shift -- before the coronavirus first hit, department stores made up 50% of Copper Cow’s wholesale revenue. But when stay-at-home quarantines first began, that channel completely dried up.
“We had purchase orders that were sitting on the dock,” Mullin said. Going forward, she said, “I don’t see [department stores] being a core part of the business.”
But even with department stores closed, Mullin said wholesale revenue still spiked. “Our wholesale sales grew immensely, even even with the department stores falling off -- just because the grocery opportunity suddenly became much larger,” she said.
Direct-to-consumer sales have also been growing -- the brand appeared on the show Shark Tank recently, which gave it a boost.
For now, said Mullin, the focus is on growing -- both sales and Copper Cow’s SKUs. The e-commerce business, she said, was “the number one place for us to be able to really form community -- and to be able to experiment with our products.” With that, she went on, “we’re excited to be launching some new products, to be able to try out a lot of new excitin
Diversify revenue channels early; do not rely too heavily on one channel as market conditions can swiftly change (e.g., Copper Cow shifted from 90% wholesale to 20% due to pandemic impacts on department stores).
What does this episode say about retail & omnichannel?
Leverage direct-to-consumer (DTC) channels not just for sales but also for community building and product experimentation, as it allows for direct feedback and agile innovation.
What does this episode say about brand & content?
Re-evaluate the role of traditional wholesale channels; while department stores may decline, new opportunities in other wholesale sectors like grocery can emerge and grow significantly.
What does this episode say about supply chain & operations?
Be prepared for and adaptable to market disruptions; the pandemic forced a rapid shift in Copper Cow Coffee's strategy, accelerating its move to DTC and grocery wholesale.
What does this episode say about dtc strategy?
Seek out and capitalize on "event-driven" boosts like a "Shark Tank" appearance to significantly increase brand awareness and direct sales.
