Counter Culture Coffee's founder, Brett Smith, shares how the company navigated the pandemic's impact on wholesale and DTC, highlighting the ongoing challenge of sustainable growth. The episode reveals strategies for adapting to market shifts, balancing ethical sourcing with business growth, and expanding into new channels like grocery and airports while maintaining brand integrity and customer relationships.
Key takeaways
When ethical practices like direct trade are deeply embedded in your business model, they become a strong, authentic marketing advantage even if not originally intended as such. Authenticity resonates more deeply than manufactured marketing hooks.
Invest in experiential marketing and education through physical touchpoints. Counter Culture's training centers fostered community, educated customers, and built strong relationships that proved invaluable for brand loyalty.
Be prepared for channel shifts. While wholesale cratered during the pandemic, DTC soared. Now, as things stabilize, diversify into new growth areas like grocery and airport foodservice to maintain momentum.
Sustainable growth requires understanding pressure points. Expanding into new channels like grocery and DTC means re-evaluating and optimizing operational infrastructure (e.g., packaging, fulfillment) to avoid straining existing systems.
Don't chase growth at all costs. Prioritize sustainable scaling that preserves long-term relationships with suppliers and customers, even if it means not doubling every year.
The coffee business changed overnight when the pandemic first hit, and Counter Culture Coffee has been rolling with the punches.
This week on the Modern Retail Podcast, Counter Culture founder and president Brett Smith spoke about where the industry is going and how his company has evolved over more than two decades.
Counter Culture, which first launched in 1994, was one of the first roasters to focus on direct trade, meaning it took great pride in working directly with coffee growers and suppliers. "What we felt was important was to go down that supply chain and really understand the source, the farmers," Smith said. "Because we felt like there was an opportunity to, in essence, have a conversation with the suppliers."
At the time, roasters directly sourcing from growers and including them in their consumer-facing marketing was unheard of. But it's now become commonplace, and Counter Culture was one of the early businesses doing such practices.
According to Smith, the fact that coffee companies like Counter Culture have become known for their ethical sourcing is a nice after-effect. he didn't intend for it to be such a big marketing hook. "The litmus test is are we going to do this if no one knows about it, will we still do it?" he said.
Now, the market has changed. It's table stakes for most higher-end coffee roasters to tout their direct supply chain relations. What's more, the way people buy coffee has changed. Counter Culture first grew by partnering with restaurants. Then, it expanded to coffee shops. And it evangelized its business via local training centers it opened around the country. Here, baristas can stop by to learn about the products, and even average customers can stop by to get a sense for what the business is about. Today, Counter Culture has over a dozen training centers in cities like New York, Los Angeles and Chicago.
When the pandemic hit, Counter Culture's wholesale business cratered by 90%, but its direct-to-consumer revenue soared. Now, thin
Frequently asked about this episode
What does this episode say about brand strategy?
When ethical practices like direct trade are deeply embedded in your business model, they become a strong, authentic marketing advantage even if not originally intended as such. Authenticity resonates more deeply than manufactured marketing hooks.
What does this episode say about channel diversification?
Invest in experiential marketing and education through physical touchpoints. Counter Culture's training centers fostered community, educated customers, and built strong relationships that proved invaluable for brand loyalty.
What does this episode say about supply chain ethics?
Be prepared for channel shifts. While wholesale cratered during the pandemic, DTC soared. Now, as things stabilize, diversify into new growth areas like grocery and airport foodservice to maintain momentum.
What does this episode say about sustainable growth?
Sustainable growth requires understanding pressure points. Expanding into new channels like grocery and DTC means re-evaluating and optimizing operational infrastructure (e.g., packaging, fulfillment) to avoid straining existing systems.
What does this episode say about brand strategy?
Don't chase growth at all costs. Prioritize sustainable scaling that preserves long-term relationships with suppliers and customers, even if it means not doubling every year.
