How to become the best selling CBD brand at CVS — Todd Davis // Kadenwood

Although the CBD space is still under regulatory scrutiny, one brand is already well positioned as a leader in the space for when CBD receives a nutraceutical status. Through a mix of traditional media marketing and retail sales, Kadenwood is the leading CBD brand on CVS and holds a sizeable market share. What is the story behind their growth and strategy that does not involve direct response marketing and social media? Listen to the conversation as Todd Davis, the former CEO of LifeLock and Executive Chairman of Kadenwood, discusses how they have grown the Kadenwood brand, their marketing strategies, and lessons so far.

About the speaker

Todd Davis

Lifelock & Kadenwood

Todd Davis is Executive Chairman at Kadenwood

Part 1Why LifeLock’s CEO gave out his social security number — Todd Davis // Kadenwood
Part 2 How to become the best selling CBD brand at CVS — Todd Davis // Kadenwood

Show Notes

02:24

Why did Todd Davies decide to start Kadenwood after building and exiting a unicorn?

It is the opportunity and the passion for building a brand.
07:06

Why retail is the best channel for CBD brand growth

Todd says the inventory turns would be eight times greater when you take it as a nutraceutical daily, like a couple of gummies sold in trail stores.
10:42

The media side to building a CBD brand

Kadenwood's media presence, partnerships, and endorsement are differentiators, but they still needed to make a brand promise to retailers and consumers and deliver.
15:23

How Kadenwood is positioning to dominate the CBD market

By investing in traditional, old-school retail media, Kadenwood has gained brand recognition. When the time comes, and the regulators decide they're okay with CBD, Kadenwood will have a massive advantage on everybody else, and then it will be hard to knock them out.
16:47

Common mistakes early stage companies and brand marketers make

One mistake is taking marketing advice from investors even when what you're currently doing is working.
18:29

Brand marketer: trust your instincts

You have to trust your instincts. Even if you fail, it is much better to trust your instincts and fail than be successful because you were scared. You should devise a disruptive campaign to get people's attention; it can't be safe, and safe is, is fail.
21:23

Don't butter the toast too thin

Early-stage startups must avoid spreading their small marketing budget too thin it becomes watered down and ineffective. Instead, pick a feature or hat to get people's attention and run with it aggressively.

Quotes

"We discovered that the inventory turns would be eight times greater when you take it as a nutraceutical daily, like a couple of gummies. So that means we have 20 million worth of revenue from these 26,000 store doors. We're now the biggest retail distributor of CBD in the US, going from worth 20 million to 160 million, almost overnight." - Todd Davis
"CBD is somewhat of a unique category because the big brands can get in. I mean, it is super rare that they're going to be this size of an addressable market that already exists. This isn't a fad; it's a category." - Todd Davis
"Of course, I'd like to sell on Amazon, but now, Amazon does not let you say CBD, and it must say hemp-derived. Well, in an early-stage category, that's so confusing." - Todd Davis
“We've got brand recognition. And then when the time comes, and they decide we're okay with CBD, it's flipped the switch. And I have a massive advantage on everybody else, and then it will be hard to knock us out." - Todd Davis
"Everybody thinks they're a marketer, and that's a problem for an early-stage company. Because when the investor doesn't like something or has an idea, you have to have the courage to say, look, you're investing in us. I hear you. I want to make you happy, but my failure will not make you happy. You have to trust me on this. But many founders don't want to do that because they think they have to take advice from the person they've money." - Todd Davis
"Investors need to remember that they're not marketers, and they're not. Even though they all think they are." - Todd Davis
"The existing marketing person, whoever that man or woman is, you have to trust your instincts. Even if you fail, it is much better to trust your instincts and fail than be successful because you were scared. If it's fear-based, you're doing a disservice to the role. And indeed, to the investors, the executives, and the team." - Todd Davis,
"I wanted people who would take chances, and I wanted people who would push the envelope. I wanted to fail in some of our endeavors every once in a while, because it meant we were pushing the envelope. If everything we did worked every time, we were not close to pushing the envelope." - Todd Davis
"We made so many mistakes. We had so many things that didn't work, but we failed fast to learn from them. I'm still a big fan of testing. But then the marketing person is the one that's supposed to deliver the disruptive mechanism, a way to get people's attention. It can't be safe. Safe is, is fail." - Todd Davis
"I have this concept of decisive points. Yes. Which says, you know, unlike a goal or somewhere testing, if it fails, it's catastrophic to the mission. If it succeeds, you're exponentially faster to what you deem successful. Pick the feature, pick the thing that will get people's attention, and launch it. Get aggressive." - Todd Davis