Sharm Tank Vol. 30

Author

Nik Sharma
June 14, 2024

Happy Friday,

What a wildly busy week in the CPG world! Jake Paul is launching a body care brand, Omsom was recently sold (a proud Sharma Brands portfolio company!), and the Kelce brothers acquired a stake in Garage Beer (shout out Eli Weiss for bringing all of this to my attention).

And they (I don’t know who “they” is) have the nerve to say that CPG is dead. The truth is, CPG is more alive and kicking than ever. With influencers diving into new ventures, beloved brands changing hands, and athletes entering the scene, there’s no shortage of excitement.

From innovative product launches to strategic acquisitions, the landscape is evolving faster than ever. This isn’t just about keeping up; it’s about staying ahead. So, grab your coffee (or your Garage Beer), and let’s dive into the latest trends, insights, and strategies that are shaping the future of consumer goods. Whether you’re a founder, marketer, or just a CPG enthusiast, there’s something here for you.

Welcome to the ride – it’s going to be a wild one.

HexClad: Revolutionizing Cookware through DTC Marketing and Strategic Partnerships

Today, we’re bringing you an inside look at how HexClad went from the brink of bankruptcy to becoming a staple in Gordon Ramsay’s kitchen. This isn’t just another cookware story; it’s a masterclass in resilience, innovation, and killer marketing strategies.

The Early Days and Entrepreneurial Struggles

Back in 2016, founders Danny Winer and Cole Mecray didn’t have it easy. They tried their hand at various products, even a juicer company, before hitting gold with cookware. They introduced a game-changing pan combining nonstick and stainless steel technology, all wrapped up in a sleek hexagon design. Investors? Skeptical. Market? Saturated. But Danny and Cole? Undeterred. They maxed out credit cards and poured their savings into the business, spending over $500,000 in the first year on advertising and manufacturing.

Their breakthrough came in 2017 with a deal at Costco, allowing them to showcase their cookware in-store. This partnership was a game changer, skyrocketing sales and validating their model.

Leadership and Vision

Jason Panzer, President of HexClad, has been pivotal in guiding the brand through its rapid growth phase. Under his leadership, HexClad secured partnerships with top-tier celebrities like Gordon Ramsay, Hailey Bieber, and Oprah. Jason's strategic vision and negotiation skills were instrumental in bringing Ramsay on board as an equity partner. Instead of offering a typical endorsement deal, Jason pitched the value of becoming an investor in HexClad, backed by their solid financial performance and growth potential.

This approach led to a quick agreement and set the stage for HexClad's explosive growth. “We had a real strong sense of our value,” Panzer said, “So we approached the negotiations in a very straightforward manner: ‘Here’s what this is going to be worth to you if this goes well’.” This authenticity and clear vision were key to securing Ramsay’s partnership, which has significantly boosted HexClad’s brand awareness and credibility.

Embracing DTC Marketing

HexClad’s success is deeply rooted in its direct-to-consumer (DTC) strategy. Selling cookware online seemed like a wild idea back then, but it’s paid off big time. The company was a pioneer in selling cookware online, a concept that seemed far-fetched at the time. "Everybody kind of laughed at us," said CEO Daniel Winer.

However, their bet paid off, and today HexClad is on track to exceed $350 million in revenue. The brand's decision to focus on online sales rather than traditional brick-and-mortar retailers allowed them to reach a broader audience and maintain control over their customer experience.

The Power of Partnerships

One of HexClad's most significant strategic moves was partnering with celebrity chef Gordon Ramsay. Unlike typical endorsements, Ramsay's involvement with HexClad goes deeper—he is a part-owner and actively participates in product design and strategy. This collaboration has been instrumental in boosting HexClad's credibility and visibility. Ramsay's endorsement, prominently featured in marketing campaigns and his cooking shows, has helped position HexClad as a premium cookware brand.

Creating a “Brand Universe” through Influencers

HexClad’s influencer marketing strategy has been another major growth lever. By gifting cookware to hundreds of creators, HexClad generated 18 million impressions from user-generated content (UGC) at a $5 CPM. These enthusiastic unboxings and cooking videos shaped the brand's perception among TikTok and Instagram viewers, resulting in a 205% increase in tagged content impressions and a decrease in CPM to $1.60 in the second year.

Optimizing Creative with Innovative Tactics

Creative reporting is a critical component of HexClad’s marketing strategy, and they’ve perfected a workflow that maximizes the impact of their ads.

HexClad's Head of Advertising, Cameron Bush revamped their creative testing process, resulting in a 60% increase in top-of-funnel spend. Here’s a breakdown of their five-step process:

  1. Initial Testing: New creative assets are placed in HexClad's ad rotation for 14 days.

  2. Performance Reporting: After two weeks, a performance report identifies the winning creatives.

  3. Momentum Analysis: Winning creatives are recirculated for another two weeks to analyze momentum, while underperforming assets are reviewed.

  4. Aggregate Reporting: After 30 days, an aggregate performance report evaluates the impact of all creatives.

  5. Scaled Ad Spend: Winning creatives that maintained momentum receive increased ad spend, and underperforming assets are iterated upon for improvement.

Next-Level Creative with Sharma Brands

At Sharma Brands, we’ve created highly effective ads for HexClad, featuring the culinary legend Gordon Ramsay. Here’s an example of one of our top performing creatives and why it stands out:

  • Instant Credibility: Ramsay's face alone elevates HexClad’s brand.

  • Addressing Skepticism: The ad tackles doubts about celebrity endorsements head-on.

  • Authentic Discovery: Ramsay’s narrative makes his use of HexClad feel genuine.

  • Dual Use: Emphasizing Ramsay uses HexClad both professionally and personally underscores its quality.

  • Performance & Durability: Highlights like being oven safe, dishwasher safe, and metal utensil safe appeal to practical users.

  • Quick and Easy: Ramsay praises HexClad's quick heating and ease of use, making it attractive to all cooks.

  • Ease of Cleaning: The ad’s focus on easy clean-up addresses a common pain point.

  • For Everyone: Positioning HexClad as suitable for all cooking enthusiasts broadens its appeal.

A Cutting-Edge Tech Stack

  1. Leveraging Creative Analytics with Motion

Cameron Bush, Head of Advertising, realized that manual reporting was unsustainable for their lean team. By adopting the creative analytics platform Motion, HexClad automated their reporting processes, saving over 10 hours per week. Motion’s tools helped HexClad identify winning creatives, analyze viewer behavior, and compare performance across different formats, allowing them to focus on strategy and iteration rather than busy work.

  1. Enhancing PPC Advertising with Prescient AI

To further optimize their paid media strategy, HexClad partnered with Prescient AI. This platform provides daily updates and full-funnel reporting, allowing HexClad to make more informed and timely decisions. By shifting budget based on Prescient’s insights, HexClad saw an 85% increase in revenue and a 30% increase in ROAS.

Closing Thoughts

HexClad's rise in the competitive cookware market is a testament to the power of out-of-the box growth marketing and strategic partnerships. By leveraging online sales, innovative advertising, and influential endorsements, HexClad has established itself as a leading cookware brand. As they continue to expand globally, their commitment to quality and innovation ensures that HexClad remains a favorite among both professional chefs and home cooks alike.

Now let’s get into our bite-sized stories…

Tubi's Playful Popularity: The Streaming Service Outranks Babies and Divorce!

Tubi, the Fox-owned free ad-supported streaming service, has launched a new brand campaign showcasing its impressive popularity with 75 to 80 million monthly active users in the U.S. The "Tubi is More Popular Than" campaign, created with Mischief @ No Fixed Address, humorously highlights Tubi's dominance over everyday popular entities like babies, pickleball, and even France, through billboards, commercials, and social media collaborations.

Tubi's Chief Marketing Officer, Nicole Parlapiano, notes that this irreverent and creative approach validates loyal fans and invites new users, ensuring the brand remains memorable and engaging without targeting competitors.

Jake Paul's "W" Brand Set to Shake Up Men’s Grooming Market

Jake Paul, the 27-year-old YouTuber, boxer, and influencer, is launching his own line of skin and hair care products called "W" (which stands for winning), targeting the booming men’s grooming market. The brand will debut with body wash, body spray, and antiperspirant deodorant, all priced under $10 and initially available at Walmart before expanding to Amazon.

Inspired by a trip to CVS where he noticed limited options for men's deodorant, Paul aims to eventually offer a full range of grooming products, including soaps, hair gels, and face wash. As the male grooming market is expected to grow 10% over the next four years to exceed $100 billion, Paul’s branding emphasizes natural, paraben- and phthalate-free formulas to appeal to a younger, health-conscious audience.

Liquid Death and The Deep: A Hilarious 'Apology' for a Failed Campaign

Liquid Death has issued a humorous "apology" on LinkedIn following a tongue-in-cheek campaign featuring The Deep, the superhero from Amazon Prime’s The Boys. In the campaign for Liquid Death’s flavored sparkling water with agave, The Deep tries to highlight the health risks of sugary drinks by forcing children to drink cups of sugar and breathe in second-hand cigarette smoke.

Liquid Death’s VP of Creative, Andy Pearson, called this the "second failed attempt" to work with The Deep, referencing a previous campaign where The Deep was fired for burning plastic on a beach. Pearson assured the public that Liquid Death does not condone exposing children to tobacco, humorously terminating their relationship with The Deep while promoting the upcoming Season 4 of The Boys on Prime Video.

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