The continued growth of e-commerce has changed the way consumer goods companies must operate if they are to succeed in the future. Many brands with traditional brick-and-mortar exposure have not taken advantage of the opportunities in e-commerce. Conversely, many native “Amazon brands” have not taken advantage of the opportunities in other channels, including not only brick-and-mortar retail but also other online marketplaces, international marketplaces, and most importantly, direct-to-consumer through their own websites, where they can more directly engage with the consumers of their products.
We saw an opportunity to acquire brands in both categories that could be grown by a) developing the other channels in which they were not currently strong; b) putting in place a robust and repeatable new product development / introduction process; c) building engagement with the consumer and, as a result, increasing repeat purchase rate; and d) adding sub-brands and associated products targeted to specific customer segments.
We began working on this thesis by focusing on consumer products that are purchased on a regular basis – nutritional supplements, skincare/beauty products, and similar. We formed Brand Holdings, LLC to be the holding company under which we would acquire and operate these consumer brands. We acquired Dr. Emil Nutrition as an initial platform in the nutritional supplements space in June 2020 and plan to acquire other brands in the nutritional supplement space, as well as other consumer brands that meet our criteria, as we build our portfolio.