From DTC to Omni-Channel: The Changing Playbook for Emerging Food Brands

For years, direct-to-consumer (DTC) brands have disrupted traditional food and beverage categories by building strong online communities, controlling their brand narratives, and using data to drive hyper-targeted marketing strategies. However, as these challenger brands scale, many are realizing that a successful future lies not just in DTC, but in expanding into retail. But moving from a digital-first model to an omni-channel approach presents significant challenges. How can emerging food brands navigate this shift effectively? Here’s what it takes to transition from a DTC-first company to a brand that thrives in retail while keeping its digital channels strong.

Keeping DTC Channels Strong While Growing in Retail

Just because a brand enters retail doesn’t mean its DTC strategy should take a backseat. In fact, DTC remains a powerful asset for maintaining customer relationships, testing new products, and creating brand exclusivity. Here’s how to keep DTC channels thriving while expanding into retail:

1. Offer Exclusive Flavors or Bundles on Your Website

One way to maintain DTC relevance is by offering products that can’t be found in retail stores. Limited-edition flavors, seasonal releases, and online-only bundles can keep DTC customers engaged while giving them a reason to continue shopping directly with the brand. This strategy also allows brands to test new SKUs before committing to larger retail distribution.

2. Stay Connected with Customers via Email and SMS

Even if customers begin purchasing in retail stores, brands should maintain a strong relationship with them through email and SMS marketing. Collecting first-party data remains crucial, so brands should incentivize sign-ups with loyalty programs, early access to new products, or exclusive content. For instance, a brand could send a reminder that a customer’s favorite snack is now available at their local grocery store, making it easy for them to find the product wherever they shop.

3. Leverage Retail Partnerships for Cross-Promotions

Retail expansion provides opportunities for collaboration. Brands can work with retailers on in-store promotions, co-branded marketing campaigns, and digital activations. For example, a DTC brand could run geo-targeted social media ads letting customers know they can now find its products at Whole Foods or Target. Some brands also include in-pack promotions that encourage retail customers to visit their DTC site for exclusive content, recipes, or discounts on future purchases.

Common Mistakes DTC Brands Make When Expanding to Retail

Expanding into retail isn’t as simple as placing a product on the shelf and waiting for sales to roll in. Many DTC brands make missteps in their transition, which can lead to slow sell-through, frustrated retail buyers, and operational headaches. Here are some of the most common pitfalls to avoid:

1. Assuming Digital Marketing Alone Will Drive In-Store Sales

Many DTC brands are accustomed to using performance marketing (Facebook, Instagram, Google Ads) to drive online sales. However, these strategies alone won’t necessarily translate to strong retail performance. Brands need to invest in in-store visibility through endcaps, shelf talkers, and retailer promotions. They should also consider working with retail media networks (such as Kroger Precision Marketing or Instacart ads) to boost awareness at the point of purchase.

2. Overlooking Supply Chain and Logistics Complexities

Retail fulfillment is significantly more complex than DTC shipping. Brands must ensure they have the right inventory levels, appropriate packaging (shelf-stable vs. refrigerated, for example), and the ability to meet retailers’ delivery requirements. Additionally, working with distributors requires different financial planning—retail margins are often lower than DTC, so brands need to ensure they’re accounting for slotting fees, chargebacks, and promotional costs.

3. Ignoring the Importance of In-Store Promotions and Demos

Unlike DTC, where brands can rely on compelling digital content to drive conversions, retail requires a different kind of marketing muscle. In-store promotions, such as BOGOs (buy one, get one free), price discounts, and sampling events, play a crucial role in getting customers to try the product. Many successful brands invest in field marketing teams or work with agencies that specialize in in-store demos to boost trial and awareness.

Building an Omni-Channel Growth Strategy

The best-performing brands don’t treat DTC and retail as separate silos. Instead, they build an omni-channel strategy that integrates both channels into a cohesive customer experience. Here’s how to achieve that balance:

1. Align Brand Messaging Across All Channels

Whether a customer encounters a brand on Instagram, in a grocery store, or through an Amazon listing, the experience should feel seamless. This means consistent packaging, messaging, and storytelling across every touchpoint. For example, if a brand emphasizes sustainability in its DTC content, it should ensure that message is reflected in retail signage and packaging as well.

2. Use Retail Data to Inform Digital Marketing

Retail sales data can provide valuable insights that help brands refine their digital strategies. If a brand notices strong sell-through in a particular region, it can increase geo-targeted advertising in that area. Similarly, brands can analyze which SKUs perform best in retail and adjust their DTC product assortment accordingly.

3. Invest in Retailer Relationships

Finally, brands that succeed in retail treat their retailer relationships as true partnerships. This means working closely with buyers, participating in retailer-led marketing opportunities, and being proactive in managing inventory and category trends. The better the relationship, the more likely a retailer is to support the brand with premium shelf placements and promotional opportunities.

Conclusion

The transition from a DTC-first model to an omni-channel strategy is a pivotal moment for emerging food brands. By maintaining a strong DTC presence, avoiding common retail expansion mistakes, and integrating digital and physical strategies, brands can set themselves up for long-term success. In today’s competitive landscape, the most resilient brands aren’t just selling online or in-store—they’re building a presence everywhere their customers shop.