3-MinuteDTC Coffee
BREZ's 22,500% Growth & Hunch's Creative Magic - Your 3-MinuteDTC Coffee is Served!
Good morning,
Welcome to your first serving of 3-Minute DTC Coffee. Grab your favorite mug, and let's dive into some piping-hot e-commerce insights that'll kickstart your week.
TL;DR:
BREZ: Cannabis-infused beverage brand skyrockets from $11K to $2.5M monthly revenue in just 14 months
Hunch Ads: AI-powered creative automation tool driving BREZ's Meta ad success
E-commerce Trends: Google Ads' new 'Feed' labels, shifting social media usage, and AI-tailored ads shaking up the industry
🔍 This Week's DTC Teardown: BREZ's Intoxicating Success
Ever wondered how a cannabis startup could go from pocket change to millions faster than you can say "THC"? Let's break down BREZ's journey from $11K to $2.5M in 14 months.
Company Snapshot: BREZ offers cannabis and mushroom-infused social tonics, targeting health-conscious consumers looking for an alcohol alternative. Founded by Aaron Nosbisch and Nick Shackelford in April 2023, BREZ combines the positive effects of cannabis with a premium beverage experience.
Core Business Model: High-quality, subscription-based product offerings, strategically positioned in the premium market.
The Numbers That'll Wake You Up Faster Than Your Coffee:
April 2023 revenue: $11,110
June 2024 revenue: $2,588,867 (36% MoM increase)
Staggering 22,500% growth in just 14 months
New Customers in June 2024: 22,383
Ad Spend: $1,047,231
Blended CAC: $47
AOV: $82
MER (Marketing Efficiency Ratio): 2.4X
Targeting $2.75MM+ revenue for July 2024 with 15%+ net margin
BREZ's June 2024 performance
BREZ's Secret Sauce that led to success:
Product-Market Fit Magic: BREZ didn't just enter the market; they created their own category. By focusing on the most legal THC concentration across all 50 states, they maximized their reach while staying compliant.
Marketing on Steroids: While others pulled back, BREZ doubled down on platform-specific content. They invested heavily in creative asset production, including:
12 assets (various dimensions/sizes, rotating gifs/images/videos)
2 longer videos (1 minute+) weekly
1 landing page bi-weekly
This strategy includes custom Product Level Videos (PLVs) for Meta, and leveraging TikTok and Instagram for rapid customer decision-making.
Subscription Sorcery: A focus on high AOV subscriptions built a revenue stream that's the envy of the DTC world. Subscriptions now account for 30% of revenue.
Branding and UX Excellence: High-impact branding with elegant, holographic packaging appeals to new-age consumers. Their aesthetic website design is optimized for conversion, creating a seamless user experience.
SEO: They optimized their website for both branded and product keywords. Their performance marketing efforts created curiosity about their products, spiking searches for branded keywords like "where to buy Brez," "Brez drink reviews," and other related terms. Brez captured this traffic effectively by ranking well for these terms and educating consumers about their new products.
Email: Brez did an incredible job with their email campaigns, creating evergreen content that educated subscribers about new-age products and set clear expectations. They also engaged their audience with timely offers, such as Father's Day promotions, excelling in the email game.
Multi-Channel Mastery: Revenue is driven by a mix of Subscription, Meta, Google, Email, TikTok, and a growing wholesale department. They've also launched PR and SEO programs, pushing into Amazon just in time for Prime Day
What Sets BREZ Apart:
Outperforming peers in the $5-15 million revenue cohort
Expert leadership combining CBD/hemp expertise with performance marketing know-how
Regulatory savvy in a complex legal landscape
Platform-specific content strategy maximizing engagement and performance
Product Education
Actionable Insights for DTC Brands:
1. Invest in diverse creative assets (UGC, statics, videos) for paid media
2. Leverage TikTok for rapid customer acquisition
3. Focus on subscription models and minimize discounts for stable revenue
4. Customize content for each marketing platform to maximize performance
5. Prioritize SEO alongside paid strategies for sustainable, long-term growth
6. Optimize email/SMS flows, including adding review flows and founder emails
🛠️ Tool Spotlight: Hunch Ads (The Secret Weapon Behind BREZ's Ad Domination)
Speaking of BREZ's success, let's talk about one of the tools that helped them create fancy Product Level Videos (PLVs) that they used to crush it on Meta?
Hunch is an AI-powered creative automation and optimization platform that allows users to create, manage, and scale personalized ads across multiple platforms.
Why is Hunch your best friend:
Creative Automation: Pump out 300-400 ads weekly without breaking a sweat.
PLV Mastery: Transforms your Dynamic Product Ads (DPAs) into fully custom videos that drive bottom-of-funnel conversions.
Content Maximization: Breathes new life into existing content - from full shoots to UGC and CGC - by turning it into unique pieces optimized for specific placements.
AI-Powered Optimization: Real-time tweaks for maximum ROAS.
Personalization at Scale: Because generic ads are so 2020.
Cross-Platform Domination: Manage all your social ads from one dashboard.
BREZ's Hunch Hack: They used it to optimize DPAs (Dynamic Product Ads) for images and videos, skyrocketing conversion rates on reels and stories.
If you're spending more than $10,000 on DPA ads, Hunch's Creative Labs Program could be a game-changer for your brand, just as it was for BREZ.
📰 E-commerce Pulse: Top 5 Headlines
Stay ahead of the curve with these market-moving stories:
Google Ads Introduces 'Feed' Labels for Shopping Campaigns: A new feature that helps distinguish product types and enhances shopping campaign efficiency on Google.
Consumer Usage of Social Media Platforms is Shifting Again: Insights into how social media habits are evolving, impacting e-commerce strategies.
Generative AI Tailors Ads to Personalities with Persuasive Power: New research shows how AI can create highly personalized and effective advertisements.
Nike Welcomes Tom Peddie as Vice President of Marketplace Partners: A significant leadership change aimed at boosting DTC and wholesale strategies.
Customers Demand More from Loyalty Programs: Survey reveals that exclusive perks and rewards are key to customer retention.
That's it, folks! That's your 3-minute DTC Coffee for the week! I’d love to hear your thoughts—what did you like, and is there a specific area or brand you’d like me to dive deep into? Also, if you have a success story you’d like us to cover in an upcoming newsletter, please share it with me. Looking forward to your feedback and stories!
Here's to your success,
Sid
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