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DTC POD
#339 - The Zen of Branding and Growth: How Recess Became the Chill Generation’s Go-To Beverage
Speaker
Blaine Bolus
Speaker
Benjamin Witte
Benjamin Witte, founder of Recess, shares how he built a brand around healthy relaxation beverages for the stressed generation. From Silicon Valley to launching in New York, he discusses early market insights, organic growth strategies, and creating a new product category that resonates with modern consumers.
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“This is a space exclusively for D two C founders and operators to connect, share ideas, ask questions and support each other.”
“This is the right idea at the wrong time.”
“How do you build a brand in a social media driven world from the earliest days.”
“'And so I just had this kind of thesis and mental model that in the future that we were entering, people would be prioritizing their mental wellness and looking for healthier ways to reduce stress and relax as compared to things like alcohol, even tobacco, and these kind of pre-existing and unhealthy forms of relaxation.'”
“'And then shortly thereafter, kind of observed the rise of this kind of new class of functional ingredients such as CBD, adaptogenic herbs, magnesium, nootropics, even THC that people are increasingly using to relax.'”
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It's super intuitive, powerful and customizable. Plus the whole thing is powered by AI, so your teams can spend less time on tedious, time consuming stuff and more time on developing relationships. Also, no one likes a clunky platform that takes months to onboard onto, but getting set up on Saleshub is really quick and easy. It's free to get started. The pricing will scale with your business, and with more than 1300 integrations and add ons you can tune it to your exact needs. Visit HubSpot.com sales to start selling with sales hub what is going on? DTC Pod today we are joined by Benjamin Witte, who is the founder and CEO of Recess. So Ben, really excited to kick it off with you. Why don't you just tell us a little bit about yourself and the brand and maybe how you guys got started originally.
Yeah, awesome. Great to be here. So at first my background spent the first six years of my career in Silicon Valley. I was in San Francisco from 2010 to 2016 at two different startups, actually both in the marketing technology space. My first startup out of college was like a three person startup that was building an influencer marketing platform for social media back in 2010, which was just a little too early. This is the right idea at the wrong time. That should have launched on MySpace to give you a sense of where the world was at the time, but learned a lot about startups and what mistakes not to make and also got to think about how do you build a brand in a social media driven world from the earliest days, which ended up being pretty relevant for recess. From there, I joined another ad tech startup called Adderall that I pioneered retargeting ads.
Basically I was there from 15 people to 600 people and had a bunch of different leadership positions at the company and saw what basically a high growth startup was like. But always knew I ultimately wanted to start my own company and also recognize my passions and strengths were better suited for consumer. Ive always been kind of more of a creative at art and so kind of knew I wanted to do something in the consumer space. And so I kind of quit my job and kind of went out on my own in around 2016. And that period in time is kind of when it started to feel to me like we were entering this new period in history, kind of driven by technology, was leaving us kind of increasingly stressed out and anxious. And so I just had this kind of thesis and mental model that in the future that we were entering, people would be prioritizing their mental wellness and looking for healthier ways to reduce stress and relax as compared to things like alcohol, even tobacco, and these kind of pre existing and unhealthy forms of relaxation. And then shortly thereafter, kind of observed the rise of this kind of new class of functional ingredients such as CBD, adaptogenic herbs, magnesium, nootropics, even THC that people are increasingly using to relax. And that kind of insight was the common property amongst all those ingredients was that people were using them to relax.
And I kind of had this light bulb moment of Red Bull for relaxation. Think of the ingredients as the inputs coming into this fundamentally new class of beverage, but also many other product types that would ultimately emerge that had this consumer value proposition of healthy relaxation. And yeah, that was how I thought about the initial market opportunity and I decided to move forward on working on building the brand, the initial formula, and ultimately creating a business to go after the opportunity.
What was the landscape like when you guys were first launching? I think now probably over the last two or three years, we've really seen a lot of the topics that you're just talking about come more into the mainstream. But like, I think when you guys launched, it was a little bit more niche. And like you said, you did have that insight. So when you're getting this off the ground, I think this is an issue that a lot of startup founders go with. It's like, how do you know when you're, you know, you're early, so, like, you're able to get on the trend, but you're not too early, and then you don't like, miss the trend, you're too late. So what, why don't you just characterize the, like the waves of the trend that you started to see? And, um, what it looked like, when you were actually taking the product to market in the early days.
Yeah, look, I mean, I think coming from Silicon Valley was, like, very helpful because I, you know, people talk about Silicon Valley like it's about, you know, just building tech startups, but I think it's more of, like, a philosophy around building businesses. And I think when you think about, like, the biggest businesses and brands that are built, that were built, like, they typically, you know, created a category, and we're like, you know, early to a fundamentally new idea and kind of rode some type of, or multiple, typically, like, kind of secular tailwinds and trends kind of that drove. Drove the market. And there was just, like, no question to me that, like, we, you know, we were like, the world was getting crazier. People was going to be prioritizing their mental wellness more and more. You know, people were going to. I thought I was, like, pretty early on to, like, alcohol moderation and kind of super curious movement becoming a thing. I thought that was going to, again, kind of just create a number of different shifts and kind of consumer preferences and lifestyles and kind of the types of products that they would want to consume.
It was also interesting because when I remember when I was telling my friends I was going to do a beverage company, they thought I was crazy. I literally had not, I didn't even know a single person had ever worked in the CPG industry, and I had the idea. And at the time, now CPG is like the hot space to go into, I think, for a lot of young entrepreneurs or one of the hot spaces. But at the time, I would say it was not. It was much more of, like, we think about many of the startup kind of food and beverage brands that come around, like, the previous ten years. They're more like, you know, more like Kombucha esque, like, more, you know. Anyway, it's just like a different type of crowd, right? And I think resource was really kind of one of the first true kind of digitally native CBG brands that focused on kind of targeting. We launched in New York City out of my apartment, and we did a lot of very unique things to put us on the map, whether, besides just the concept being a fundamentally new concept, whether we launched direct to consumer first before we then immediately went into retail in New York.
We really leaned into Instagram as a channel, and we had a really unique content strategy there. We did a pop up in New York called Recess IRL for six months where we hosted events with different brand and creative partners that was very impactful. We did cool collaborations. And so I think we just did a lot of things in the early days of recess that were very different from how, you know, CPG brands, you know, had launched and broken through before. And so, yeah, those were a couple thoughts on kind of how I thought about the launch.
Sweet. And why don't you talk to us a little bit about, like, getting the brand off the ground as it. As it pertains to, like, a capital perspective. How much did you guys raise, you know, in, like, that first round? Did you guys bootstrap it? Did you raise some capital, like, what did that look like just to get those first production cycles going and validate the concept of recess?
I think we like something like Rea's, like, maybe spent like 200 grand to get to launch between the brand and the formula and then a couple initial hire. And it was one of these things, like, we press go and it just clearly had product market fit. It got a huge amount of buzz from day one. And within a couple of weeks, I knew, you know, we had something right, that there was a concept that was connecting with consumers. I'm a big believer in, like, the power of, like, user generated content. Like, I probably seen every, you know, we probably got like 100 posts a day across Instagram and TikTok now. Just pure organic. But in the early days, I'd always look at our UGC and I'm just like, this idea of a relaxation beverage is very much connecting with people for the, you know, that that kind of validated my thesis.
So I'm like, because it was such a fundamentally new idea and brand positioning label architecture, and it was a hypothesis, and then you're ultimately validating a hypothesis when you launch a new startup. But to me, it felt like I validated it within a couple of weeks. And then after we were selling online in a couple months, we then went into New York City and focused on building the brand of bodegas and the corner stores there. There's a huge market in New York and just focused on New York for the first year. I think there's a lot of value to kind of going deep in a single market before you kind of expand beyond that. Now we're pretty much national, but, yeah, that was kind of the steps I took.
Totally. And when it comes to the validation, was it just throwing up the branding? You've got a bunch of product, you've got the idea. Was it just like, taking that to, you know, like, were you running, like, some Facebook ads? Were you doing product seating? Like, what was that initial like, you said you were getting really good responses right out of the gates. Where did that come from before you decided, like, okay, let's go deep into New York and, like, throw events and do all that. Where did that, that first cohort of people come from?
We did a lot. We actually got a lot of PR early on. Like, and I think it was a different era back then. Right? Like, I think it was much. It was easier to break through back then than it is now. But we actually hired a PR agency early on, but just kind of organically got a lot of PR because, again, I think it was a very novel idea from, again, the concept to the brand design and positioning and architecture, to our content strategy and our marketing strategy. I remember we got like a. Basically this big New York Times article, like four months in that was, like, very interesting.
That was also kind of very validating and that kind of just kind of compounds on itself. But, yeah, I think it was a combination of factors that kind of snowballed on itself.
Totally. And then what would you say one.
Point, like, we do not run any paid marketing for the first, like, 18 months.
Wow, that's huge. I mean, that's, that's something that's. That's a lot different than, like, a lot of brands who will test and validate that way because they don't know where to go. So I think that's really, uh, that's a really interesting strategy, especially leaning on PR and getting that, like, organic sort of approval before choosing to scale up. My next question was going to be from those early days, like, what were some of the original learnings? Like you said it was your first time building a business in the CPG space. Um, you know, you had the idea, you've now taken the product to market. But, like, looking back, what were some of the early learnings that, like, you either learned that were, like, super valuable in the early days or you wish you knew, uh, like, looking backwards.
Um, let's see. I mean, many, um. I think just let's. I mean, it was. Let's see. Um, I think, like, you know, a widening kind of your, like, brand marketing spend to, like, your, you know, level of growth, you know, is important. And, like, I think, like, the twist in the business I didn't mention is our first product line included CBD in it and we weren't able to sell that line on Amazon and in kind of the national retailers. And there was this question, you know, in 2019, whether kind of the FDA would ultimately release this final set of regulations for CBD, which was the conventional wisdom, that didn't happen.
And I think we were like being a little too aggressive, um, given that the market didn't end up opening up. Now, fortunately, we pick like, we expanded, uh, with the launch of recessed mood and now mocktails. Our Subi line is like 5% of our sales now. But um, yeah, that was, you know, one, you know, aspect that I think I didn't fully appreciate, which is like, want to be really thoughtful around like aligning your investment and like burn basically to your level of grip. And we were like effectively operating in a constrained, addressable market at that time. Another, I think with consumer products businesses that I think it's been more of a lesson over the past couple of years as we've really gotten to scale, is just working. Capital management, cash flow management. You think about it, we're literally producing millions of cans at a time now.
You're not going to get hate on that for months at a time, right. And so you think about that like that cash flow ends up becoming very, very important, right. And I think it's very under, can be underappreciated. So that's like another, I think, lesson learned that you kind of have to go through it to like learn to understand the implications of these things. And then I have some other, I always had a lot of insights. I think those are some like that. I think the challenges, you know, that were lessons learned. And I think I also had a lot of mental models and hypothesis that were certainly right, that paid kind of dividends for years to come.
And I can talk about too.
Yeah. What were some of those?
I was so this philosophy that im liking beverage, like beverages, if you think about it, beverage is like one of those brand awareness driven categories, like on the planet. If you think about like Coca Cola and Red Bull and Monster and like alcohol brands, like there are some of the most kind of well known brands on the planet. You think about like where they allocate their marketing spend. That's to basically top a funnel brand marketing, they're not allocating much to performance marketing. And that's because beverages get more distribution than any other product on the planet. They're literally always around you and they become kind of daily habits for many people, the best beverages, whether it's Coke or Starbucks or Red Bull or whatever. So I always had this view of, I thought the key metric in beverage for an early stage beverage company was how can you generate the most amount of impactful brand impressions for the least amount of money. It's basically a key metric outside of just revenue and profit.
And so I had all these different philosophies to drive that, whether it was architecting the business to be a true omnichannel model. And we're still 50% eCom, 50% retail, 90% of our ecommerce business is Amazon. But we basically always manage our e comm business to be profitable. And the philosophy has been all of the media that we spend to drive that business, which is now hundreds of thousands a month and generates tens of millions of impressions a month in an ROI positive way. Well, those impressions also benefit retail because they're driving brand awareness, which when someone walks into the store, they've been exposed to the ad and therefore they're more likely to pick it up off the shelf. And you're generating that brand awareness in a way that's paying for itself or optimizing all of our brand marketing strategy in a way to generate earn media. We got 100 shows a day on Instagram and TikTok. Each of those people have thousands of followers.
And you think about the cumulative brand impressions that have been generated in a very powerful way because these are testimonials effectively, or a distribution strategy. By going very deep in New York and focusing on the corner stores, everyone goes to the bodega every day in New York. So you were just always seeing the brands. The brand felt bigger than it was. I was always thinking about how can you generate brand impressions very efficiently? And I think that very key metric.
Yeah, I think that's really spot on, especially in CPG. What were some of the ways that you guys did that? I know you said being top of mind in terms of organic social pr being in the bodegas, but were there any, either initiatives that you launched or things that you overseer inflection points that you were like, wow, that's a really efficient way that we were able to get earned media or brand impressions or.
Brand awareness out there content. Our Instagram strategy was very novel and groundbreaking. We basically created this entirely illustrated world within Instagram and kind of personified the cans and had this kind of very unique brand voice that I described as a social commentary on the millennial Gen Z existence. It was very kind of tongue in cheek and sarcastic, and it was just very new and very different back then and still is. And our posts are just shared hundreds of times. So again, under this premise, everything's about generating earned media. That content was again, very novel and unique, so therefore caught attention and therefore was shared. And it kind of fly with, you know, it kind of compounded.
Compounded on itself, you know? So I think that's, like, a great example of something.
And the other thing I was going to say, talk to me a little bit about, like, the team setup you had at the different stages that you're going. Like you're saying right now, you guys have grown a ton. How many team members you guys have, like, total now?
About 40.
Yeah. So, like, why don't you walk me through the trajectory of growth from, like, an operational perspective? What did that look like, you know, from the early days to now? Who were some of those key hires that you brought on that really started to accelerate the business? Why don't you just walk us through that?
Yeah, so, you know, when I had a product and a brand kind of ready to commercialize before launch, I'm going to bring on a COO who was very experienced. It was kind of part time, to be. To be honest, but. And he had, like, started his career at Nestle, was an executive at a couple high growth CPG companies, actually CEO of a couple of CPG startups himself. And so he had a good understanding of, like, the operations, supply chain, and different facets of a CPG business. So that was one of those really smart things I did. And then we launched, and it was validated. And so he's, like, he was down to come on full time once that happened.
Brought on, like, a couple, like, very junior kind of marketing people and just in new York City to do stuff with, and then hired a salesperson in New York City. And then we raised our original. Yeah, actually, before the series, I. So we did, like, our first real round, and, you know, I don't know, four months in, and then we brought on a super studio, had a supply chain. This woman, Wardy, spent 20 years, adopted rubber Snapple, and then this guy Chris, who had come from, like, PNG and Heidi kun. And so I've had, like, a very experienced executive team from the very beginning, and we've worked together for five years. Like us, you'd have four as the executives. And then we then built out, continuing to build out the team.
You know, we have a big kind of field sales team, so about 22 people and kind of just kind of field sales kind of all over the country. We don't, frankly, need more. People are kind of very under resourced right now, given our level of growth. But, yeah, the team was critical. Right. And I think I was a very. I'm a big believer in, like, it was a nice balance. Cause I literally had.
Didn't come from the industry, obviously. And it kind of approached it with a fresh perspective and was able to kind of think from kind of first principles and like selectively kind of reject the conventional wisdom in a lot of different places, but, you know, in that. But I combine that with people that were best in class, in supply chain, or understood the operations and the financial nuances of a CBG company. And so I think that's a really good model.
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Yeah, we were unique because of the CBD. Right elements. So we just had to focus on just kind of independent accounts to begin and then to some regional accounts. And then once we launched our recessed mood line, which didn't have CBD but had magnesium as kind of the primary functional ingredient. And thats what unlocked the bigger account. So now were in 18,000 accounts were national at Albertsons were about to be in 1200 targets were in Wegmans, Heb fresh market. CV's. Many of the biggest retailers in that business is exploding.
And retail is interesting. I mean its really like in these mainstream retailers and the chains is really about your data. It's like how many units per store per week are you selling? That's really the only thing that matters if you get on the shelf are people buying the product. They're tracking that. You just continue to build up these case studies that you then bring to other retailers. Then there's these, they're all looking at the data too. There's systems that they can look at to see what products are growing kind of and selling. And so yeah, that's kind of how it works totally.
And talk to me from a supply chain perspective, like what needed to change? Like did you, did it evolve as like you started to scale? Because like now you guys are obviously at a different scale than when you were just launching. But what did that evolution look like from like, you know, your ingredient suppliers to your material suppliers to like the whole thing? What did it look like?
Yeah, when we, when we launched, the original way it was formulated and ultimately produced was not in the most scalable fashion. And then when Lori, our chief supply chain officer, came on board, she shifted us to this concentrate model. So we actually leased a facility in upstate New York in the Hudson Valley where we own the production of a syrup and we ship that syrup, a network of co packers that handle the canning. So they're pretty unique model. It's inspired by the CoEPC model actually. So that was an example of a shift that's occurred and yeah, but now we have multiple product lines, we have a lot of skus, but we're able to do that as a result of this unique concentrate model. Um, and you know, now we have a couple different co packers in different parts of the country and um, yeah, pretty uh, you know, robust supply chains without.
And the next thing I want to talk about is about product lines. That's something that you mentioned. You guys have launched, you know, a couple different product lines, but a lot of founders who are like launching brands are thinking about like when is the right time to launch something new? How do you move from your hero product to something that's new? When's too early? When's too late? Did you guys do it at the right time? What was the first thing you introduced? Just talk to us a little bit about that.
Well, I mean we don't really have a choice to begin because we had to expand beyond CBD, so we were kind of forced to do it earlier than you traditionally would. That being said, I always had the vision of Recess as a platform brand. I always use this example of like our URL and Instagram is take a recess, not drink recess. Almost every other beverage brand is like drinkpoppy.com. We were taking Recess and the idea was there's many forms of recess that we would be able to create over time. So I didnt really view it as a pivot. I kind of viewed it as an acceleration of what the vision always was in terms of becoming a platform brand. So thats what kind of drove the mood launch.
And then with the mock tales, it just felt like too big of an opportunity to pass up and it made so much sense for our brand and kind of that. And I'm pretty good at segmenting markets and categories and predicting new trends. And I had the idea, or this bet on mocktails kind of came in 2020, right after we launched mood, actually, when athletic brewing and kind of non alk beer really kind of accelerated. And kind of my thesis was non alk beer sits on the other side of alcoholic beer. But what was really growing fast was hard seltzer and ready to drink cocktails. Brands like high noon and cutwater and white claw and truly and turbo chico and stuff like that. And I was like, just like non alcohol beer says to on the other side of alcoholic beer, there's going to be non alcoholic cocktails that sit on the other side of alcoholic cocktails. And one of the primary use cases for recess was always kind of as an alcohol alternative, primarily in kind of weeknight evening relaxation, more as like a replace me for evening glass of wine.
And so I saw this as an opportunity to extend the brand to kind of more social usage occasions. The times you would drink like Hyde or white claw, either as a replacement entirely or as a drink in between drinks. And then also I have the view of coming back to that mental model I had at the beginning of the, obviously, the benefits of brand awareness, which is like when we, the mock tier line is almost as big as the recessed mood line now, in like one year, like, it took like resell smooth, like three, you know, you know, it basically took the mock tail on like one year to get to as big as, you know, recess mood took three years or something like that. Um, and that's to be thinking about, it's like the benefits of the brand awareness our recessed mood creates. You know, we're able or sell, we sell it into most of the retailers that already have recessed mood were able to leverage our supply chain, our sales force. Youre able to go into a store and sell multiple products lines in. And so theres all these flywheel benefits that that platform strategy creates. Now, in terms of my advice to other entrepreneurs is, I think this is a unique situation where a platform strategy made sense.
I think most of the time it really doesnt make sense. Right. Think about most of the successful brands. A lot of times they're single product line companies, right? Ollie Clop and Poppy, for example, they're a single product line now. Liquid death is in multiple product lines now. But I think you want to be very careful about going too broad too quickly. I think, again, this was a unique situation where we were first forced to, and it was the brand vision. And it's like a unique idea where the proposition of relaxation makes sense in a lot of different formats and product types of most of the time it doesn't make sense.
Right is what I would say. And so, yeah, I would be very like, careful about doing it. But in certain situations, I think if executed the right way with the right sequencing, it can be very beneficial. But I think it's also kind of dangerous too.
Totally. And I think so many companies, sometimes they find themselves in the right place at the right time with the right supply chain, with the right like, alignment and branding. And I think the non alk movement is certainly like one of those really interesting movements that kind of coincides with what you were talking about and what you initially saw coming up, but also is definitely accelerated. You see a bunch of different non Al. So why don't you just talk about that particular category? What are you seeing from retailers, buyers? Are they interested in the space? What are they looking for to put on the shelves? How are consumers responding it? How do you see that space continuing to evolve, specifically in like the non Al mocktail side of things?
Yeah, I mean, I think we're in the early days of it. I think, you know, this. I think this is a movement. Well, you know, look, yeah, I think I'll take a step back. You know, one of my views is like, I think the bigger trend is like moderation, not elimination. Like there's certainly more people that are going fully sober. I think there's a lot more people that are just looking to drink fewer drinks per week and fewer drinks per night. And so I think that creates the opportunity to replace a lot of those occasions with new types of products like recess and others.
Now before that, if it wasnt recess or athletic brewing or whatever, its like lacroix or a soda or a water. And I think people want something more that feels and tastes more like an alcoholic beverage, basically. And they think about what are the categories of an alcohol? It's basically like beer, spirits, wine, and then, you know, RGB cocktails and heart seltzer. Beer is obviously non out. Beer is pretty well established. I think the question is going to be like, is like Gen Z going to drink beer? They didn't grow up drinking beer. So do they really want non alp beer? I think non alk spirits, like I'm pretty skeptical of, like I think I, they work on premise, like on like in bars and restaurants. If someone's like, you know, ordering like a mixed mocktail like at a bar.
But like I'm, I don't really buy that. A lot of people don't, you know, use them at home. I think non alk wine, my understanding is it's like really tough to like make and make taste good. So I think we used you to like ready and drink mocktails is going to be the next big category, right. Um, which is like what we're playing in and kind of driving. And so that's, yeah, that's my kind of view of the space. I think the other thing I think people forget around any type of new category development, especially in the food and beverage space, is I think they take too short term of a view, right. People talk about like energy drinks.
Like it just emerged in the past five years. Red Bull was started in 1987, right. And so these things take a time to develop, but they basically just compound for years and years and years and years. Right. And I think thats whats going to happen here, right. With kind of the zero proof alcohol alternative space or the relaxation beverage space or stress relieving supplements. I just think were in the relatively early stages of the development of the space.
Totally. The next thing I wanted to ask about was the other product line that you guys introduced, which is your like stick packs and you know, like your powdered tubs like that are more in like the supplement space. So at what point in recess did those get introduced as products? And how like are those just direct? Are they direct in Amazon? Do you do retail with those as well? Where did those fit into your omnichannel strategy?
Yeah, they're about 15% of our sales and they're both, you know, Amazon and retail, you know, this allow people to like take a recess on the go, you know, with the stick packs. Like when you're traveling, you want to chill out on a flight. Like just bring, have the stick packs with you after a workout at work places where you're not going to like carry the drink. Now, their drinks now sold at many like a lot of airports. So you can kind of buy recess before a flight. But it's also on the premise that allows us to like play in more parts of the store. So you're watching around a store, you're kind of being exposed to the brand in different places. You can imagine them at checkout.
There is a very well established stress relieving supplement set with brands like calm and Ollie gummies. And so it just is a natural place the recessed brand can play. Right. And so, yeah, that was kind of the thinking behind it. The focus, the core focus is definitely on recessed mood and the mocktails, the resus mood beverage. But we think the powders is a big opportunity, too.
Yeah. And I just think it's cool, like, when you kind of set up a brand, when you launch a brand and you have like an idea and a mission that you're going after. Like, you can introduce products that like, you know, like Red Bull. Introducing like a powder might be like a little bit weird, right? Maybe they could do it, but they probably, I don't know. But when you guys have like a broader mission, it opens the door for like down the line. As you see market movements and you see what's happening, you have opportunities to tap into those. Um, as we kind of wrap up here, Ben, I wanted to talk about what is, like you said before, a lot of these things you need to take a longer term time horizon on. Uh, you got to invest for the future.
So what is the next, you know, let's talk about like the next year for you guys, but then let's talk about beyond that. Like, where do you want, where do you want to take this business? What are some of the immediate steps that you're taking to grow it and then where are you growing it towards?
Yeah, like, I mean, the next year is really about scaling the existing product lines into these national retailers. So like I mentioned, there are about, I think, 18,000 retailers right now. It will be at 30,000 by the end of next year. The Amazon business continues to basically, the business basically doubling year over year. And now that were getting to a scale, were ready to kind of turn on brand marketing again. Like, weve basically been doing only performance market to drive the Amazon business. So we havent even started to do fun brand marketing in the spirit of liquid death and pop. So thats going to be a big part of the next phase of the business in terms of where it can go beyond that.
Like I was just talking about, I think were in the early stages of this broad kind of category and space. And I think there's a lot of room to run from here. And so, yeah, just basically continuing to kind of execute and kind of grow the existing products lines that we have and kind of bigger and bigger retailers. But I also have ideas for kind of new products in the future too.
Well, Ben, want to thank you for coming on. It was super fun chatting about how you guys built the brand. You guys are crushing it. Love the drink. So thanks for hooking it up. Uh, for anyone who's tuning in that wants to connect with you.
Where.
Where do we find you? Why don't you shout out your socials? Um, you know, whether you're on X LinkedIn, like, where do we find you?
Yeah, um, well, the recess. You know, socials are at. Take a recess on Instagram and TikTok. And that's also our, uh, website URL. And then I'm on Twitter a lot. And then at Ben Whitty. Um, w I. Ben.
At b e n w I t t. So. Love to connect. Ruin that.
Sweet. Well, thanks for coming on the pod, Ben.
Awesome, man. Great conversation.
If you enjoyed the show, we'd love your support. A rating and review would go a long way as we continue to host the best builders in DTC and beyond. Follow and subscribe to the show and make sure to check out our show notes where you can find our socials and weekly newsletter. Visit us on dtcpod.com to join our founder community and access resources from every episode. We'll see you on the next pod.
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DTC Pod Linkedin
@Benjamin Witte invested $200K to launch @Recess, a beverage brand that quickly gained traction through organic buzz and user-generated content on Instagram and TikTok.
Benjamin joins @blaine on this week's episode of DTC Pod to discuss how Recess became the go-to drink for the chill generation by focusing on building the brand in New York City before expanding nationally.
We explore the company's 50/50 e-commerce and retail model, the importance of cash flow management, and Benjamin's philosophy of driving impactful brand impressions for the least amount of money.
Benjamin also shares insights on the stress-relieving supplement market, the positioning of Recess, and plans for scaling product lines and future brand marketing initiatives.
Full episode here: [Spotify Link]
#dtcpod #entrepreneurship #marketingstrategy #brandgrowth #socialmediamarketing #retailstrategy #beveragestartups
1️⃣ One Sentence Summary
Recess's strategic brand growth through UGC, retail, and product expansion.
Interview Breakdown
Today, Benjamin Witte, founder and CEO of Recess, joins the show to discuss the zen of branding and growth that turned his beverage company into a go-to for the chill generation. He shares insights from the early days of launching Recess to the company's current success and future plans.
In this episode, you'll learn:
How Witte invested $200K to launch Recess, which quickly gained buzz and user-generated content on social media
The importance of focusing on brand building in a target market before expanding nationally
Witte's philosophy of driving impactful brand impressions efficiently, especially in the beverage category
The company's balanced e-commerce and retail model, and the role of earned media in their marketing strategy
Plans for scaling product lines, reaching more retailers, and future brand initiatives to grow Recess
🔑 7 Key Themes
Recess's launch and initial funding
Generating brand buzz through organic content
Growth strategy: NYC focus, then national
Aligning investments with market conditions
Balancing e-commerce and retail channels
Expansion to platform brand beyond CBD
Non-alcoholic trend and product line extension
💬 Keywords
Benjamin Witte
Recess
CBD beverages
Stress relief supplements
Startup funding
Brand marketing
User-generated content
Instagram marketing
TikTok marketing
New York City launch
National expansion
Cash flow management
E-commerce profitability
Retail partnerships
Earned media
Mocktails
Non-alcoholic drinks
Platform brand strategy
Product line expansion
Stick packs
Powdered tubs
Amazon sales
DTC founders community
HubSpot sales hub
Silicon Valley background
Retargeting ads
Mental wellness trends
Digitally native CPG
Supply chain optimization
Executive team building
📚 Timestamped overview
00:00 Experienced high-growth startup leader starts consumer-focused company in 2016, driven by belief in growing demand for stress-relief products like CBD and adaptogenic herbs.
06:18 Individual started beverage company, faced skepticism, pioneered digitally native CPG brand, used unique strategies for success.
08:26 Rea's launch successful with user-generated content.
12:43 Learned to align investment with market demand and manage cash flow.
14:20 Beverages create strong brand impressions.
20:46 DTC Pod joins HubSpot podcast network, expanding its guest base and learning opportunities for listeners.
23:12 Shifted from original production to concentrate model, multiple product lines and co packers, robust supply chain.
26:28 Extending brand for social use, platform strategy benefits.
29:51 Consumers prefer alcoholic-like beverages over non-alcoholic options. Uncertainty about Gen Z's interest in non-alcoholic beer and spirits.
33:13 Brand mission drives product innovation and long-term investment.
35:56 Seek support through ratings, reviews, and subscriptions for DTC podcast. Access resources and community on dtcpod.com.
📚 Timestamped overview
00:00 Startup experience led to founding mental wellness company.
06:18 Started beverage company against industry expectations, innovatively.
08:26 $200K investment led to successful product launch.
12:43 Aggressive expansion led to market constraint, cash flow.
14:20 Beverages: a powerful force in brand marketing.
20:46 DTC Pod joins HubSpot podcast network.
23:12 Shifted to concentrate model, improved supply chain.
26:28 Extend brand for social occasions, leverage platform strategy.
29:51 Non-alcoholic options need to feel like alcohol.
33:13 Launching a brand with a broader mission.
35:56 Show support, rate, review, follow, subscribe, visit.
❇️ Key topics and bullets
Here is a comprehensive sequence of topics covered in the episode, with sub-topics:
Launch and Initial Funding of Recess
Benjamin Witte's investment of $200,000 to launch the brand
Immediate market fit and organic buzz on social media
Focus on building the brand in New York City for the first year
Early Marketing and Brand Building Strategies
PR efforts and user-generated content (UGC) driving initial success
No paid marketing for the first 18 months
Driving impactful brand impressions efficiently in NYC corner stores and bodegas
Unique illustrated content strategy on Instagram generating earned media
Business Model and Growth Strategy
50% e-commerce and 50% retail model
Managing e-commerce profitability and generating earned media
Expanding to national retail accounts like Albertsons and Target
Transitioning supply chain to a concentrate model for multiple product lines
Positioning in the Stress-Relieving Supplement Market
Recess as a platform brand for relaxation and mental wellness
Predicting trends and segmenting markets with non-alcoholic mocktails
Benefits of brand awareness from Recess Mood line accelerating mocktail line growth
Product Line Expansion and Future Plans
Expansion driven by vision of Recess as a platform brand, not a pivot
Cautious approach to implementing a platform strategy
Stick packs and powdered tubs accounting for 15% of sales
Plans for scaling product lines, reaching more retailers, and future brand marketing
Witte's Background and Recess's Origin
Experience in Silicon Valley and pioneering retargeting ads
Identifying the rise of stress and anxiety as an opportunity
Unconventional choice to start a beverage company as a digitally native CPG brand
Key Hires and Operational Growth
Growing to 40 team members over five years
Hiring an experienced COO and building out the executive and field sales teams
Appointing a chief supply chain officer to oversee supply chain improvements
Podcast and Community Information
DTC Pod launching a Slack community for DTC founders and operators
Invitation to support the show and access resources on dtcpod.com
Benjamin Witte's contact information on social media
✏️ Custom Newsletter
Subject: New Episode Alert! The Zen of Branding and Growth with Recess Founder Benjamin Witte
Hey there, podcast fans!
We've got a fresh episode of the DTC POD hot off the press, and trust us, you don't want to miss this one! In episode #339, host Blaine Bolus sits down with Benjamin Witte, the mastermind behind Recess, the go-to beverage for the chill generation.
In this episode, you'll learn five key takeaways:
How Recess created a buzz-worthy brand with just $200K in initial investment
The power of organic user-generated content (UGC) in driving brand awareness
Balancing e-commerce and retail strategies for optimal growth
Navigating the stress-relieving supplement market with a unique brand positioning
Implementing a platform strategy to introduce new product lines and expand reach
Fun Fact: Did you know that Recess's early success was fueled by a quirky Instagram strategy featuring illustrated content? This creative approach helped the brand gain hundreds of shares and tons of earned media!
As always, Blaine wraps up the episode with an invitation to join the DTC POD community and access exclusive resources at dtcpod.com. And don't forget, we're launching a Slack community just for DTC founders and operators – get on the waitlist now to secure your spot!
So, what are you waiting for? Grab your favorite beverage (maybe a Recess?), kick back, and tune in to episode #339 of the DTC POD. You won't regret it!
Happy listening,
The DTC POD Team
P.S. Don't forget to hit that subscribe button and leave us a review – your support means the world to us!
🐦 Business Lesson Tweet Thread
Turning $200K into a nationally recognized beverage brand in under 2 years?
That's exactly what Benjamin Witte did with Recess. Here's how:
He started local. Built a strong brand presence in NYC before expanding. Heavy focus on organic reach vs paid.
Early wins came from creative Instagram content. Witte prioritized high-impact, low-cost brand impressions. Like targeting corner stores for visibility.
Hiring the right people was key. Experienced leadership in supply chain & ops enabled multi-product scale-up. Retail success followed.
5 years in, Recess maintains a healthy balance of DTC & retail. 50/50 split. Profitability is the north star.
The takeaway? In CPG, smart cash flow mgmt is everything. Driving memorable brand moments doesn't have to be expensive. Start small, nail the model, scale smart.
🎓 Lessons Learned
Here are 10 lessons covered in the podcast episode, with 5-word max titles and 20-word max descriptions for each:
Invest in Brand Launch
Witte invested $200K to launch Recess, including brand, formula, and initial hires.
Leverage User-Generated Content
Recess gained buzz and UGC on Instagram and TikTok, driving brand awareness.
Focus Geographically, Then Expand
Built the brand in NYC for a year before going national.
Earn Media, Delay Paid Ads
Early PR and organic buzz drove success; no paid marketing for 18 months.
Align Investment with Market
Challenge of aligning investment with market conditions and managing cash flow.
Drive Impactful Brand Impressions
Witte's philosophy: drive impactful brand impressions for the least amount of money.
Balance E-commerce and Retail
Recess maintains a 50/50 e-commerce and retail model, focusing on profitability and earned media.
Position in Stress-Relief Market
Recess positioned as a stress-relieving supplement in a growing market.
Develop a Platform Brand
Recess's mission opens doors for product introductions and scaling product lines.
Predict and Segment Markets
Mocktails arose from predicting trends and segmenting markets, mirroring hard seltzer success.
💎 Maxims
Here is a list of maxims for building a successful CPG brand based on the concepts discussed by Benjamin Witte about Recess:
Identify emerging trends and underserved market needs. Look for opportunities to pioneer a new product category.
Craft a unique brand identity and aesthetic that resonates with your target audience. Use content to express your brand's personality.
Focus initial brand building efforts on a core geographic market before expanding nationally. Aim to create high visibility and impact.
Leverage organic social media marketing, user-generated content, and earned media impressions to build brand awareness cost-effectively.
Align your fundraising and growth investments with market demand signals and overall economic conditions. Manage cash flow carefully.
Balance direct-to-consumer e-commerce with strategic retail partnerships to maximize reach and profitability. Adapt your approach as you scale.
Consider opportunities to extend into adjacent product categories that fit your brand's overarching mission and values. But be judicious about brand extensions.
Invest in experienced leaders and specialized talent as the company grows, especially in core operations like supply chain.
Use sales data, case studies, and a strong retail story to open doors with larger retail partners and accelerate growth.
Build a resilient, flexible supply chain and operating model that can support multiple product lines and scale efficiently.
Stay connected to your community and customer base. Nurture those direct relationships even as the brand grows.
Don't chase every trend or opportunity. Stay true to the brand's core identity and value proposition. Focus is key.
🌟 3 Fun Facts
Here are 3 fun facts revealed in this episode:
Recess initially invested only $200K to launch, including developing the brand, formula, and initial hires.
For the first 18 months, Recess relied solely on organic buzz and PR efforts, using no paid marketing.
Recess maintains a unique 50/50 split between e-commerce and retail sales.
📓 Blog Post
Title: The Zen of Building a Breakthrough Beverage Brand: Lessons from Recess
Subheader: How founder Benjamin Witte leveraged digital strategies, brand storytelling, and market trends to create a new category of relaxation drinks
Introduction:
In the competitive world of consumer packaged goods (CPG), launching a new product and building a successful brand can be a daunting challenge. However, Benjamin Witte, founder and CEO of Recess, has defied the odds with his innovative approach to creating a new category of relaxation beverages. By focusing on digital strategies, unique brand storytelling, and tapping into emerging market trends, Witte has positioned Recess as a leader in the rapidly growing space of functional beverages designed to promote mental wellness and relaxation.
Identifying the Opportunity:
Witte's journey with Recess began with a keen observation of the increasing levels of stress and anxiety in modern society. Having experienced the pressures of the Silicon Valley startup world firsthand, he recognized a growing demand for healthier alternatives to traditional stress-relief methods. This insight led him to explore the potential of creating a new class of relaxation beverages incorporating ingredients like CBD, adaptogenic herbs, and nootropics.
Despite the unconventional nature of starting a beverage company, Witte saw an untapped opportunity in the market. He believed that as people increasingly prioritized mental wellness and moderation, they would seek out healthier forms of relaxation. This conviction drove him to develop a unique product and brand that could resonate with this emerging consumer trend.
Crafting a Unique Brand Identity:
One of the key factors in Recess's success has been its distinctive brand identity. From the outset, Witte focused on creating a brand that could stand out in a crowded market and connect with consumers on an emotional level. By leveraging a unique content strategy on Instagram, featuring original illustrations and thought-provoking messages, Recess quickly gained attention and generated significant earned media.
The company's commitment to brand storytelling extended beyond social media. Recess launched a six-month pop-up event in New York City, collaborating with local artists and influencers to create immersive experiences that brought the brand to life. These initiatives not only increased brand visibility but also fostered a sense of community around the Recess lifestyle.
Driving Growth through Digital Strategies:
As a digitally native CPG brand, Recess has relied heavily on digital strategies to drive growth and build brand awareness. Witte's background in pioneering retargeting ads at a Silicon Valley startup proved invaluable in developing effective digital marketing campaigns. By focusing on generating high-impact brand impressions efficiently, particularly in key markets like New York City, Recess was able to maximize its marketing budget and achieve significant growth without relying on traditional paid advertising.
The company's Instagram strategy, which featured original illustrated content, proved to be a viral success. The unique and shareable nature of the content led to hundreds of reposts, further amplifying brand awareness and driving organic growth. This approach demonstrated the power of creating compelling content that resonates with target audiences and encourages user-generated content.
Navigating Challenges and Adapting to Market Trends:
As Recess has grown, the company has faced various challenges and opportunities. Witte has emphasized the importance of aligning investment with market conditions and maintaining a focus on cash flow management. By carefully navigating these challenges and making strategic hires, such as an experienced COO and a chief supply chain officer, Recess has been able to scale its operations and expand into new product lines, such as non-alcoholic cocktails.
The company's ability to adapt to market trends has been a key factor in its ongoing success. By anticipating the rise of the non-alcoholic movement and the demand for healthier alternatives to traditional beverages, Recess has positioned itself at the forefront of the functional beverage space. This agility and willingness to evolve has enabled the company to maintain its relevance and continue to grow in a rapidly changing market.
Conclusion:
The story of Recess and its founder, Benjamin Witte, offers valuable insights into the art of building a breakthrough beverage brand in today's competitive market. By combining innovative product development, unique brand storytelling, and effective digital strategies, Witte has demonstrated the power of identifying emerging market trends and creating a brand that resonates with consumers on a deep level. As Recess continues to grow and expand, its success serves as an inspiration for aspiring entrepreneurs and a testament to the importance of adaptability, creativity, and resilience in the face of challenges.
🎤 Voiceover Script
From a $200k initial investment to becoming the go-to beverage of the chill generation, Recess has mastered the art of brand building on a budget. Founder Benjamin Witte shares his secrets to driving impactful brand impressions through organic buzz, strategic retail partnerships, and a strong focus on e-commerce profitability. Discover how Recess leveraged user-generated content on social media to create a viral sensation and learn about their plans for scaling product lines and expanding their reach in the fast-growing stress-relief supplement market.
🔘 Best Practices Guide
Best Practices for Building a Successful CPG Brand:
Validate your concept and secure initial funding to launch your brand.
Focus on a specific market to build brand awareness and generate buzz.
Leverage organic content strategies, such as unique social media content and collaborations, to create earned media and drive brand impressions.
Prioritize efficient use of marketing dollars by targeting high-visibility locations and utilizing user-generated content.
Establish a strong executive team with experienced leaders in key roles like operations and supply chain.
Balance direct-to-consumer and retail strategies, using sales data and case studies to drive retail expansion.
Develop a robust supply chain that allows for multiple product lines and scalability.
Consider a platform strategy to facilitate the introduction of new products, but exercise caution and ensure it aligns with your brand's unique situation.
Stay attuned to market trends and consumer preferences to identify opportunities for new product development.
🎆 Social Carousel: Do's/Don'ts
Here is a 10-slide LinkedIn carousel based on the key points from the DTC POD episode with Benjamin Witte of Recess:
Cover Slide:
10 Branding and Growth Lessons from Recess's Founder
Slide 1:
Don't Overspend
Instead, focus on efficient brand impressions. Recess targeted NYC bodegas for high visibility at low cost.
Slide 2:
Ditch Paid Ads
Build buzz with PR and organic social content. Recess relied on earned media for the first 18 months.
Slide 3:
Avoid Overextending
Align investment with market conditions. Prioritize cash flow management, especially for consumer product businesses.
Slide 4:
Skip Traditional Marketing
Create shareable content. Recess's illustrated Instagram posts gained attention and hundreds of shares.
Slide 5:
Don't Neglect E-Commerce
Balance online and retail. Maintain a 50/50 model, managing e-commerce profitability while driving retail growth.
Slide 6:
Resist Pivoting
Expand strategically. Recess introduced new products as a platform brand, not reactively pivoting.
Slide 7:
Don't Follow Blindly
Anticipate trends. Recess predicted the rise of mocktails, mirroring the success of hard seltzers.
Slide 8:
Avoid Complexity
Offer convenient options. Stick packs and powdered tubs provide a portable choice for Recess customers.
Slide 9:
Don't Go Too Broad
Target key locations. Recess focused on building the brand in NYC before expanding nationally.
Slide 10:
Never Stop Evolving
Continuously optimize operations. Recess transitioned to a concentrate supply chain model for efficiency and growth.
🎠 Social Carousel
10 Branding Lessons from Recess's Founder
Slide 1:
Invest Wisely
Align your investment with market conditions and prioritize cash flow management.
Slide 2:
Start Local
Focus on building your brand in a specific area before expanding nationally.
Slide 3:
Leverage UGC
Encourage user-generated content on social media to drive brand awareness.
Slide 4:
Efficient Impressions
Drive impactful brand impressions for the least amount of money.
Slide 5:
Balance Channels
Maintain a balanced approach between e-commerce and retail.
Slide 6:
Predict Trends
Anticipate new trends and segment markets to introduce innovative products.
Slide 7:
Platform Strategy
Consider developing a platform brand to facilitate growth across product lines.
Slide 8:
Hire Strategically
Build an experienced executive team and field sales team to support growth.
Slide 9:
Optimize Supply Chain
Transition to a concentrate model to enable multiple product lines and a robust supply chain.
Slide 10:
Connect with Benjamin
Follow @benwitte on Twitter and Instagram to learn more about Recess's success.
One Off Tweets
Recess's founder saw an opportunity in the growing trend of prioritizing mental wellness and moderation, leading to the creation of a new class of relaxation beverages.
Sometimes the unconventional path is the right one. Recess launched as a digitally native CPG brand, defying expectations and carving out a unique niche.
Efficient brand impressions are key. Recess focused on high-visibility corner stores and bodegas in NYC to maximize their impact with minimal resources.
Unique content strategies can be game-changers. Recess's illustrated Instagram content was shared hundreds of times, driving brand awareness and earned media.
As your company grows, building out an experienced executive team is crucial for navigating operational challenges and scaling effectively.
Transitioning from DTC to retail? Success is driven by sales data and case studies. Prove your worth to secure those national accounts.
Adaptability in your supply chain can open doors. Recess's shift to a concentrate model allowed for multiple product lines and a more robust system.
Aligning investment with market conditions and managing cash flow are critical challenges for consumer product businesses. Stay vigilant.
Driving impactful brand impressions for the least amount of money is a winning philosophy, especially in the competitive beverage category.
User-generated content on social media can be a powerful brand marketing tool. Encourage and leverage UGC to authentically connect with your audience.
Twitter Post 1
Here's a fun fact from the episode in the requested style and format:
Recess generated major buzz without paid ads for 18 months.
Quirky IG content + collabs
Earned media from unique brand impressions at bodegas.
Mindsets
Here are 3 mindset shifts inspired by the Recess founder's journey that listeners can apply to their own businesses:
🧘♂️ Embrace the zen of branding. Focus on creating impactful brand impressions in the most efficient way possible. Like Recess's early strategy of targeting NYC bodegas and using unique illustrated content on Instagram, find creative ways to maximize brand visibility and earn organic buzz.
📈 Think beyond the current product. Consider how your brand can serve as a platform for future product lines and expansion opportunities. Recess's success with CBD beverages opened doors for their mocktail line. How can you strategically position your brand to support long-term growth?
🌊 Ride the wave of emerging trends. Pay attention to shifting consumer preferences and look for opportunities to develop products that align with those trends. Recess capitalized on the growing interest in mental wellness and moderation by offering healthier relaxation options. What trends could you tap into?
For more insights on the Recess story and other DTC brand journeys, check out the DTC Pod wherever you listen to podcasts. And don't forget to join the waitlist for our exclusive Slack community for DTC founders and operators at dtcpod.com!
Tactics
🎧 5 Tactics to Boost Your Brand Based on Recess's Success 🚀
If you're looking to elevate your brand and drive growth, here are some actionable strategies inspired by Recess's journey:
💡 Concentrate your initial efforts on a single market. Like Recess's focus on New York City, honing in on a specific location allows you to build brand awareness, gather valuable feedback, and create a strong foundation before expanding nationally.
💡 Leverage the power of user-generated content (UGC). Encourage your customers to share their experiences with your product on social media platforms. Recess's organic buzz on Instagram and TikTok played a significant role in their early success, saving them from spending on paid marketing for the first 18 months.
💡 Invest in creating unique, shareable content. Develop a distinct brand voice and visual identity that resonates with your target audience. Recess's illustrated Instagram content captured attention and was shared hundreds of times, contributing to their brand awareness and earned media.
💡 Explore unconventional retail partnerships. Instead of solely relying on traditional retail channels, consider collaborating with smaller, niche outlets where your brand can gain high visibility. Recess's focus on corner stores and bodegas in New York City efficiently generated brand impressions.
💡 Embrace a platform strategy for future growth. As your brand matures, consider how it can serve as a platform for introducing new product lines that align with your mission and values. Recess's expansion into mocktails and stick packs demonstrates how a strong brand foundation can facilitate the launch of new offerings.
Remember, implementing these tactics requires a deep understanding of your target market, a willingness to experiment, and the ability to adapt based on market feedback. Stay true to your brand's core mission, and don't be afraid to think outside the box! 📦
In Depth Thread
Overrated: Elaborate brand marketing strategies.
Brands waste too much time and money on complex campaigns trying to reach everyone.
Underrated: Focused, organic brand building.
Recess used this exact playbook to become a cult favorite:
Target 1 Market
They focused all efforts on making Recess the "it" drink in NYC for the first year. One city, one goal.
Dominate a key market before expanding. Start local, then go wide.
5 Key Tactics
Recess used 5 main tactics to build buzz early on:
Eye-catching Instagram content
Quirky collaborations
Pop-up experiences
Bodegas & corner stores
Earned media & PR
Create Content, Not Ads
Recess's illustrated Instagram content got shared like crazy.
Create unique, engaging content that people want to share. Let your customers do the marketing for you.
Own Your Niche
Position against a trend. Recess rode the wave of mental wellness by creating a new category - relaxation beverages.
Spot a rising trend and carve out your unique space in it.
Expand Intelligently
After nailing NYC, Recess carefully expanded to national retailers, using sales data to prove concept.
Grow in phases. Validate locally, then use that proof to open doors to bigger opportunities.
Team is Everything
Witte credits much of Recess's growth to key hires like an experienced COO and robust sales team.
Invest in the right people at the right time to scale smart. Your team is your most valuable asset.
Talk the Talk
Recess owned terms like "relaxation beverage" to control the narrative.
Develop your own vocabulary to position your brand as a category leader.
Influence > Impressions
Witte wanted to "create the most brand impressions for the least amount of money."
Aim for depth, not breadth. Make every touchpoint count by maximizing visibility and impact.
So if you're building a DTC brand, don't get distracted by flashy campaigns.
Focus on a core market, create buzz-worthy content, ride a rising trend, and scale intelligently with the right team.
Efficiency is everything. Make your brand impressions stick.
New Idea
Idea #1: Unconventional Brand Growth Strategies
Recess utilized several unique growth strategies to build brand awareness and drive sales:
Hyper-Local Focus: Rather than immediately going national, Recess concentrated on dominating the New York City market in their first year. By focusing on high-visibility locations like corner stores and bodegas, they efficiently generated valuable brand impressions.
Innovative Social Media Approach: Recess leveraged an unconventional Instagram strategy, creating distinctive illustrated content that resonated with their audience. This highly shareable content was reposted hundreds of times, fueling organic growth and earned media.
Experiential Marketing: To immerse consumers in the brand experience, Recess launched a six-month pop-up event and collaborated with like-minded partners. These initiatives allowed potential customers to engage with the product in memorable ways, fostering a deeper connection to the brand.
Tweet thread on learnings
Tweet 1:
Just listened to an incredible episode of the DTC Pod with @benwitte, founder of @takearecess:
From investing $200K to launch Recess to becoming the go-to beverage for the chill generation, here are my top takeaways on the zen of branding and growth: 🧘♂️🌱 👇
Tweet 2:
Organic Buzz is Key 🗣️
Recess generated a ton of user-generated content on Instagram and TikTok from the start.
No paid marketing for the first 18 months!
Early PR efforts and organic buzz were crucial to the brand's initial success.
Tweet 3:
Focus on Your Home Turf 🏡
Recess built its brand in NYC for the first year before going national.
Concentrating on a specific market allows you to make a bigger splash and gain traction faster.
Master your own backyard before expanding.
Tweet 4:
Balancing Investment and Cash Flow 💰
Aligning investment with market conditions is a challenge.
In consumer product businesses, cash flow management is critical.
Witte's philosophy: Drive impactful brand impressions for the least amount of money, especially in the beverage space.
Tweet 5:
The Power of a Platform Brand 🚀
Recess wasn't just a CBD brand, but a platform for relaxation products.
This broader vision opened doors for new product lines like mocktails.
But be cautious - a platform strategy isn't right for every brand.
Tweet 6:
Ride the Trend Waves 🌊
The non-alcoholic movement is about moderation, not elimination.
Witte predicted the rise of mocktails, mirroring the success of hard seltzers.
Identifying and capitalizing on emerging trends can accelerate growth.
Tweet 7:
Omnichannel is the Way 🛍️🖥️
Recess maintains a 50/50 split between e-commerce and retail.
Managing profitability online while generating earned media is key.
Stick packs and powdered tubs provide a portable option, making up 15% of sales on Amazon and in stores.
Tweet 8:
Your Vibe Attracts Your Tribe 🧘♀️
Recess's unique Instagram strategy with illustrated content went viral.
It gained attention, shares, and contributed to brand awareness.
Develop a distinct brand voice and aesthetic that resonates with your target audience.
The zen of branding and growth lies in staying true to your vision, riding the waves of trends, and cultivating a community around your brand.
Huge thanks to @benwitte for sharing his insights and the @dtcpod team for another fantastic episode! 🙏
Future State, 6 reasons post
In 12 months, Recess achieved national distribution, gained a loyal fan base, and became a category-defining brand in the relaxation beverage space. As a digitally-native CPG startup, Recess has cracked the code on efficient brand building. But there's an even greater opportunity ahead. Here are 6 strategies Recess can implement to become the undisputed leader in the functional beverage category:
BACKGROUND:
Forget CBD (Cannabidiol), the future belongs to PCB (Platform Consumer Brand).
Recess is where the product and brand seamlessly integrate to create a movement.
If Recess plays its cards right, it can evolve into a platform brand that not only owns the relaxation space but also expands into adjacent categories and need-states.
Old CPG playbook:
Niche target audience
Single product focus
Retail-first distribution
Heavy trade spend
New CPG playbook:
Mainstream cultural relevance
Multi-product platform
Omni-channel distribution
Earned media amplification
At Recess, we are building a brand that resonates across generations, occasions, and need-states - all while maintaining profitability. It's hard to achieve this impact with a conventional CPG approach.
HOWEVER...
We are just scratching the surface of what's possible. The leadership team at Recess should consider broadening the vision and transforming Recess into an iconic platform brand to deliver on PCB.
Here are my 6 recommendations:
Extend into new functional benefit spaces beyond relaxation. Consider energy, focus, recovery, and sleep as potential areas. The Recess brand has permission to play across the wellness spectrum.
Expand product formats beyond ready-to-drink cans. Explore powders, shots, gummies to increase usage occasions and drive incremental revenue.
Invest in a world-class digital experience. Reimagine the Recess website as a immersive brand portal and commerce engine. Use exclusive content and early access to drive DTC engagement.
Double down on field marketing. Build a grassroots network of brand ambassadors in key markets. Activate at cultural tentpole moments to drive earned media.
Explore international expansion opportunities. Identify like-minded distribution partners to scale the brand globally. Adapt the product and messaging to resonate locally.
Establish a Recess Ventures arm. Acquire or invest in emerging brands that align with the Recess mission. Leverage the Recess platform to accelerate their growth.
I envision a future where Recess is the go-to wellness brand for the next generation; synonymous with living a life of balance, purpose, and joy.
Recess has so much untapped potential that it keeps me up at night.
As soda sales decline and consumers gravitate towards functional options, Recess has the opportunity to eclipse established players like Coca-Cola or Pepsi as the most culturally relevant beverage brand.
P.S.
What bold moves do you think Recess should make?
Do you believe Recess can transcend its category and become an iconic lifestyle brand for years to come?
About the Episode
Benjamin Witte is the founder and CEO of Recess, a beverage brand that has pioneered a new category of relaxation drinks. With a background in Silicon Valley and experience in digital advertising, Witte saw an opportunity to create a product that addresses the growing problem of stress and anxiety in modern society.
In this episode of DTC Pod, Witte shares the story of how he launched Recess with a focus on building a strong brand presence in New York City. He discusses the company's unique marketing strategies, such as creating engaging illustrated content on Instagram and collaborating with local retailers and influencers to generate buzz and earn media.
Witte also delves into the operational aspects of growing the business, including raising capital, building out the team, and optimizing the supply chain. He emphasizes the importance of managing cash flow and making strategic investments to scale the company sustainably.
Throughout the conversation, Witte highlights his philosophy of driving impactful brand impressions efficiently and the value of a platform strategy that allows for the introduction of new product lines, such as the company's successful launch of mocktails. He also shares his insights on the broader trends in the beverage industry and the opportunities for brands that prioritize mental wellness and moderation.
Episode Summary
#339 - The Zen of Branding and Growth: How Recess Became the Chill Generation's Go-To Beverage
Benjamin Witte is the founder and CEO of Recess, a brand of sparkling waters and mocktails infused with hemp extract and adaptogens for relaxation and focus.
In this episode of DTC Pod, Benjamin shares the story of building Recess from an idea to a nationally-recognized lifestyle brand. He discusses the power of organic social media buzz and user-generated content in driving brand awareness, the benefits of a platform brand strategy, and the importance of careful cash flow management for consumer product startups.
Success Strategies
Here are 3 strategies for DTC success based on Benjamin Witte's insights:
Invest in brand awareness through organic content
In the early days of Recess, Benjamin Witte leveraged unique illustrated content on Instagram to generate buzz and earn media impressions. By creating shareable, engaging posts that stood out in the feed, Recess was able to build brand awareness and drive word-of-mouth growth without relying on paid ads.
For DTC brands, developing a distinct visual identity and voice on social media can be a powerful way to capture attention and foster brand affinity. Focus on crafting content that resonates with your target audience and compels them to share with their networks. This organic approach can yield significant returns in terms of earned media value and customer acquisition.
Concentrate initial growth efforts in a key market
Rather than attempting to scale nationwide from the start, Recess focused its early growth strategy on dominating the New York City market. By zeroing in on a specific geographic area, the brand was able to build a strong presence and generate buzz that eventually fueled expansion.
DTC brands can apply this same principle by identifying a key market that aligns with their target demographic and concentrating resources on owning that space. Tactics like geo-targeted ads, event activations, and strategic retail partnerships can help establish the brand as a local staple and create a foundation for future growth.
Embrace a nimble, data-driven approach to product development
Recess has successfully expanded its product line beyond its original CBD-infused beverage to include mocktails and powdered stick packs. These new offerings were developed based on a combination of trend forecasting, customer insights, and market analysis.
To stay ahead of the curve, DTC brands should adopt a similar approach to product innovation. By closely monitoring shifting consumer preferences and proactively developing products that meet emerging needs, brands can stay relevant and diversify their revenue streams. A willingness to experiment, fail fast, and iterate based on data is essential for long-term success in the ever-evolving DTC landscape.
Castmagic LinkedIn Post
Relaxation meets refreshment in the new wave of better-for-you beverages.
Benjamin Witte, founder and CEO of Recess, joins Blaine Bolus to share the story behind the chill generation's go-to drink.
From initial launch to becoming a platform brand, we explore Recess's unconventional path to success. Discover their innovative approach to product development, brand marketing, and growth.
Uncover key insights on managing cash flow, driving impactful brand impressions, leveraging user-generated content, and navigating the evolving beverage landscape.
Listen to the full episode here: [link]
#dtcpod #ecommerce #cpg #beverages #branding
Castmagic LinkedIn Post
Stress-relief beverages are on the rise, and one brand is leading the way in the "chill" revolution.
Benjamin Witte, the founder and CEO of Recess, joins Blaine Bolus to discuss the Zen of branding and growth that has made Recess the go-to beverage for the stress-relief seeking generation.
We unpack the early days of Recess, from the initial investment and launch to the immediate market fit and organic buzz. Benjamin shares insights on aligning investment with market conditions, driving impactful brand impressions efficiently, and leveraging user-generated content as a key marketing strategy.
The discussion also covers Recess's platform brand strategy, expanding product lines, and the growing trend of moderation and the non-alcoholic movement.
Listen to the full episode here: [link]
#dtc #ecommerce #beverages #branding #growth
Castmagic LinkedIn Post
Need to unwind? Recess might be just the thing.
Benjamin Witte, founder and CEO of Recess, joins Blaine Bolus to discuss building the go-to relaxation beverage brand for millennials and Gen Z.
With a background in Silicon Valley startups and digital advertising, Witte shares insights on product-market fit, organic marketing strategies, and managing growth.
We explore Recess's unique brand positioning, efficient impression generation, and the advantages of a platform strategy for introducing new product lines.
Listen to the full episode here: [link]
#dtcpod #dtc #ecommerce #cpg #beverage
Castmagic LinkedIn Post
Cracking the code on the new beverage category of chill and relaxation.
Benjamin Witte, founder & CEO of Recess, joins Blaine Bolus on the DTC Pod this week.
Prior to launching Recess, Benjamin worked in Silicon Valley, innovating in ad tech at multiple startups.
In this episode, you'll learn how Recess became an iconic brand with a cult following. Benjamin shares his philosophy on driving impactful brand impressions efficiently, the power of user-generated content in their marketing, and the advantages of a platform branding strategy.
We also discuss the positioning of Recess in the stress-relief and wellness space, their omnichannel distribution model, and scaling the brand through new product lines and retail expansion.
Listen to the full episode here: [link]
hashtag#dtcbrands hashtag#beveragebrands hashtag#consumerbrands hashtag#wellnessbrands hashtag#dtcpod
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