EP 63: COGS: The Secret Fuel Behind Explosive DTC Growth
In this episode of the ASOM Pod, hosts Jimmy Kim (CEO of eCom Email Marketer, formally Founder of Sendlane) and Bryan MacDonald (Direct of eCommerce at Oma’s Pride) sit down with Will Nitze, Founder/CEO of IQ Bar, to unpack how he scaled from a scrappy eCommerce start-up to landing on shelves at major retailers. Will gets real about the limits of staying DTC-only, the strategic bets that helped IQ Bar break into brick-and-mortar, and why obsessing over COGS and operations is just as important as marketing. From Harvard neuroscience to entrepreneurship, his journey is packed with insights on product development, retail partnerships, and the messy reality of scaling in food and beverage.
What you’ll learn in this episode:
- Why DTC is powerful but not always enough to scale.
- How Amazon can be a stepping stone to retail deals.
- The critical role of COGS and operational efficiency in growth.
- Lessons from landing CVS and navigating retail complexities.
- The future of IQ Bar with new product lines in hydration and coffee.
Whether you’re building your first CPG brand or plotting your move from online to in store, this episode gives you the inside scoop on growth, grit, and the real costs of scaling.
Big shoutout to our sponsors who make this podcast possible!
Omnisend — With 125,000+ eCommerce merchants, Omnisend is the all-in-one email & SMS marketing platform built to deliver seamless, personalized experiences via email and sms with ease. Learn more at https://www.omnisend.com/
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00:00 Teaser Trailer
02:30 Meet Will Nitze: From Neuroscience to DTC
06:53 The Birth of IQ Bar
10:50 Challenges in Food and Beverage Industry
19:28 Navigating Product Trends and Market Fit
22:13 Funding and Growth Strategies
26:19 Outsourcing and Company Structure
30:53 Early Distribution and Product Strategy
35:14 Securing a Major Retail Deal
36:15 Challenges of Scaling Production
37:03 Lessons from Retail Experience
38:41 eCommerce vs. Retail
41:21 Importance of Cost Optimization
45:21 Innovations in Packaging and Fulfillment
48:01 The Role of Operations in Marketing
51:26 Navigating the Convenience Store Market
54:19 Future Growth and Expansion Plans
01:02:55 Challenges of the Convenience Store Market
01:07:53 Conclusion and Final Thoughts