More and more brands are trying to go big on a tight budget, joining forces to cross-promote their products.
Collaborations are nothing new. But according to companies that have partnered with other brands on giveaways and co-branded products this summer, it’s a relatively low-cost way to acquire new customers. As digital advertising becomes increasingly difficult, emerging brands are increasingly collaborating with like-minded startups to leverage the reach of organic marketing. According to brands that are currently experimenting with partnerships, these creative deals can come to fruition much more quickly than other forms of national marketing campaigns. Plus, co-branded products, pop-ups and giveaways make it much easier to create and execute flashy marketing rollouts without eating up your allotted marketing budget.
Kids’ meal delivery company Little Spoon is among DTC companies rolling out a series of co-branded products this summer. The effort kicked off with a partnership with Oatly this month, with another product using Glaza’s olive oil set to launch in July. Similarly, sparkling water brand Aura Bora has been into recipe collaborations for years, co-creating a non-alcoholic olive oil martini with Glaza. And this month, Aura Bora is teaming up with fellow California-based brand PF Candle to develop a sparkling water flavor inspired by PF Candle’s popular Watermelon Chili candle.
Little Spoon, Aura Bora and Graza are just a few of the many startup brands looking to each other’s customers to grow.
For younger brands looking to acquire customers online, product collaborations can be more cost-effective than traditional advertising. “We have no intention, nor do we want to compete with the national media budgets that exist in this industry,” Little Spoon’s chief brand officer Caryn Wasser previously told Modern Retail. That’s why limited-edition product launches and influencer partnerships help brands like Little Spoon reach more people. “We’re very timed in timing these rollouts to make sure we create powerful, high-reach moments that drive a ton of brand attention and website volume,” Wasser said.
Digital advertising is now ‘very expensive and inefficient’
ButcherBox, a meat delivery service, is teaming up with a long-established brand for one of its latest collaborations. On June 13, ButcherBox announced a barbecue kit in collaboration with aluminum foil manufacturer Reynolds Wrap, just in time for summer. [is] “This year is the year of partnerships,” ButcherBox founder Mike Salguero told Modern Retail, “mainly because direct-to-consumer advertising has become so expensive and inefficient.”
So now that Meta advertising costs have increased by double digits, ButcherBox is one of many DTC brands looking to acquire customers more cheaply. Crossover partnerships with other culinary specialties will be a big part of this strategy.
ButcherBox says its “BBQterie” kit taps into online food trends and comes with a charcuterie-inspired recipe guide. The kit was curated by food commission expert Amy Renner and includes ButcherBox favorites like chicken wings, premium steak tips, and beef-only hot dogs, as well as heavy-duty foil from Reynolds Wrap.
Salguero said the Reynolds partnership will be a “test case” for ButcherBox to see how much the limited-edition meal-kit collaboration will help it attract new customers. While attracting new customers through the partnership is a major goal for ButcherBox, it’s not the only measure of success the company is considering. Salguero added that the company hopes that collaborating with a popular national brand like Reynolds will also attract existing members for seasonal purchases and gifting.
Salguero said ButcherBox has had success with digital content collaborations in the past, including increasing engagement on social media. The company has also worked with other culinary-focused DTC brands, including Graza and Caraway. “But this collaboration with Reynolds is the first co-branded product we’ll be selling on the site,” Salguero said.
As for conversion expectations, Salguero said the company will monitor sales performance of its barbecue kits. “We hope that enough people will be interested in trying ButcherBox that we can have more brand collaborations in the future,” Salguero said.
Low-cost, highly effective marketing
Food brands in particular are finding that collaboration is key to attracting customers on the cheap.
Italian-American food company Monte’s is leaning into brand partnerships as an authentic way to position itself as a lifestyle brand rooted in authentic home-cooked recipes, a strategy it’s applied to promoting Monte’s new pasta line, which launched in April. Brand collaborations are also part of Monte’s larger strategy to reduce reliance on paid advertising and grow its digital following.
The company began selling sauces in 2019, but has expanded its retail offerings this year by adding dried pasta.
Founder PJ Monte said the aim is to reach a wider audience outside the food industry with “low-effort, high-impact” campaigns that extend to lifestyle content. Other partnerships include tasting events at pop-up grocers and a collaboration with wine brand Nomadica for a “Drunken Pasta” recipe and launch giveaway.
Monte recently partnered with fashion brand Staud to promote the launch of its dried pasta on social media. Special “Staud” pasta served at a Memorial Day luncheon celebrating Staud’s new Hamptons location. The luncheon took place at Monte’s Montauk restaurant, was attended by many celebrities and influencers, and was highlighted by a Vogue magazine report. Part of the partnership included the debut of Staud’s popular Montez-inspired Tommy bag, which features a tomato print on the front and spaghetti detailing on the back. The bag has sold out and will be restocked on Staud’s website.
“I knew it [Sarah] “We’ve known Staud for almost 15 years and wanted to do something together,” Monte said. He added that while the Tomato handbags aren’t the most high-profile collaboration, the brands have a similar target demographic: “If someone shops at Staud, they’re also likely to shop at Erewhon, where we sell our products.”
Monte said brand collaborations can often seem “awkward,” especially among younger people who are savvy to brand marketing tactics. But if done right, these partnerships can be mutually beneficial for the brands involved. “I don’t like to use the term ‘lifestyle brand,’ but it describes the content and collaborations we do to attract people,” Monte said.
