How to Expand from DTC to Retail Profitably

This episode of the 'Free to Grow CFO' podcast, hosted by Jon Blair, features an in-depth conversation with Adam Siskin, co-founder and partner of The Platform CPG, on the intricacies of expanding a direct-to-consumer (DTC) brand into the retail space. The discussion covers important considerations for DTC brands looking to venture into retail, highlighting the differences in finance, operations, sales, and marketing challenges between DTC and retail. Adam Siskin shares his extensive background in the CPG world, emphasizing the importance of understanding margin profiles, the impact of trade spend and chargebacks, and strategies for contract negotiations with distributors like Kehe and UNFI. Moreover, the episode touches on the crucial elements of debt financing for covering the cash conversion cycle gap in wholesale and offers personal insights into balancing an entrepreneurial career with family life.

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00:00 Welcome and Introductions
00:39 Adam's Entrepreneurial Journey and Transition into CPG
08:27 Expanding DTC into Retail: Strategies and Considerations
21:28 Understanding Trade Spend in Retail Expansion
24:55 Diving Deeper into Chargebacks and Cash Planning
25:50 Challenges and Strategies for DTC Brands Entering Wholesale
34:27 Navigating Contract Negotiations and Distribution Challenges
40:53 Financing Strategies for Wholesale vs. DTC Channels
48:50 Balancing Entrepreneurship with Family Life
52:51 Final Thoughts