DTC POD: How Recess Became the Chill Generation’s Go-To Beverage

This week, we’re joined by Benjamin Witte, founder and CEO of Recess — a beverage brand focused on creating products that promote relaxation and mental wellness.

Inspired by the rise of functional ingredients like CBD, nootropics, and adaptogenic herbs, Benjamin saw an opportunity to pioneer a category of beverages that could help people unwind in a healthy way.

In this episode of DTC POD, Benjamin shares his journey of launching Recess and the key strategies that have contributed to its success, including a focus on efficient brand impressions and an omnichannel approach to distribution.

We discuss the significance of riding secular tailwinds, the advantages of having a broader mission when launching a brand, and the potential benefits and risks of a platform strategy. 

The conversation also touches the future of the functional beverage space and the role that Recess aims to play in shaping it.

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Fav Quotes from Episode #339

“[Global beverage brands are] 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, whether it's Coke or Starbucks or Red Bull. 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 typically a key metric outside of just revenue and profit."

— Benjamin Witte, 00:14:41 - 00:14:55

“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 dot com. We were taking Recess and the idea was there's many forms of recess that we would be able to create over time.”

— Benjamin Witte, 00:24:49 - 00:25:08

“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.”

— Benjamin Witte, 00:31:04 - 00:31:45

3 Best DTC Practices from Benjamin Witte

1. Capitalize on emerging trends and anticipate consumer needs

The most successful DTC brands are those that don't simply follow trends, but anticipate shifts in consumer behavior and proactively develop products to meet those emerging needs.

For Benjamin Witte, this meant recognizing the increasing societal focus on mental wellness and the growing desire for healthier alternatives to traditional relaxation methods like alcohol. He saw an opportunity to create an entirely new category of functional beverages: one that incorporated ingredients like CBD to promote relaxation and stress relief.

An important thing to note here is that you need to stay ahead of the curve, but not so far ahead that the market isn't ready for your product. In other words, timing is crucial.

Benjamin launched Recess at the perfect moment, when interest in CBD and relaxation was on the rise, but before the market became overly saturated. This allowed him to establish Recess as a pioneer in the space and capture a significant market share.

As you develop your own DTC brand, look for similar opportunities to anticipate shifts in consumer behavior and create products that solve problems or fill gaps in the market.

2. Generate efficient brand impressions through earned media

In the early stages of building a DTC brand, it's crucial to generate awareness and buzz in a cost-effective way. Paid advertising can be expensive and inefficient, particularly when you're still refining your target audience and messaging.

Instead, focus on creating a distinctive brand identity and aesthetic that resonates with your target customers and encourages organic sharing and conversation on social media.

Recess did this exceptionally well, particularly on Instagram, where they created an illustrated world that millennials and Gen Z loved and wanted to share with their peers. This led to high levels of user-generated content and earned media coverage.

By leveraging the power of earned media, you not only stretch your budget but also cultivate an authentic connection with your audience that paid advertising simply can't buy.

3. Adopt a platform mindset and expand strategically

While not suitable for every brand, Benjamin Witte saw the potential for Recess to become a platform brand with multiple product lines. He carefully expanded into new categories like mocktails and stick packs, always ensuring that each extension aligned with the brand's core proposition of relaxation and mental wellness.

The key to successful expansion is to approach it sequentially and with caution. Launching new products at the right time and managing the complexities of scaling supply chains is crucial.

Benjamin advises that a platform strategy can be beneficial when executed correctly, but can also be dangerous if not done properly.

When considering expansion, ensure that any new product lines or categories align with your core brand values and mission. Carefully assess market demand and your ability to scale production and distribution before making any significant investments.

Brands like Recess, which anchor each strategic move in authenticity and market readiness, illustrate that thoughtful progression is as vital as bold innovation.

In navigating the complexities of brand expansion, syncing new ventures with your core values while meticulously pacing growth can transform potential risks into sustainable successes.