While it’s often the largest consumer goods companies that garner the bulk of the headlines, most of the industry members we speak with consistently keep their eyes on the smaller businesses, as they’re historically keen to experiment and innovate. In this year’s Standout SMBs report, we’ve highlighted the small- and medium-sized businesses — classified as companies with less than $1 billion in revenue — that are growing through a fierce dedication to consumers and invention. While these SMBs play across a wide range of categories and revenue, they carry many of the same characteristics, including passion, creativity, and ingenuity (and sometimes a bit of scrap).
The CBD company, which includes the cbdMD, Paw CBD, and cbdMD Botanicals brands, aims to change the conversation around everyday wellness and the importance of self-care. “Our goal is to instill confidence and trust in our customers by guaranteeing that what’s on the label is in the bottle,” says Martin Sumichrast, chairman and co-CEO. “We support all these efforts through strategic partnerships, which bring our mission to the masses — and on top of all of this is our focus on product innovation.”
As part of this, it’s leveraging its size and scale to mobilize strategic partnerships, networks and ambassadors across operations and the industry, after spending the last few years solidifying its infrastructure. “We like to think of ourselves as a plane taking off on an epic journey — we’re still reaching our cruising altitude,” he notes.
The company sells a range of CBD products, including gummies, oils, drinks, and bath and topical items, and product innovation remains a core component of its growth strategy. Sumichrast teased a few new items in the pipeline, as well as partnerships to further cannabinoid research.
“We’ve only begun to scratch the surface in terms of the science behind cannabinoids and other properties of the hemp plant,” he says. “We’re looking forward to discovering new and innovative ways in which cannabinoids can complement, interact, and ultimately benefit one another when combined.”
+ Social Discovery
Read on to dig into this year’s Standout SMBs. Learn how they’re investing to get to their next level of growth, and get a glimpse of how they’re engaging consumers through social media.
Standout
By Lisa Johnston
Founded on the principle that race, gender, age, and personal style shouldn’t serve as roadblocks to makeup experimentation, Danessa Myricks develops multifunctional and inclusive beauty products geared toward both consumers and makeup artists. Its namesake founder is a self-described self-taught artist who over the years has used products in unconventional ways to create distinctive looks.
To further its global growth and expand its reach, the company invested in beauty tech and augmented reality provider Perfect Corp., which has unlocked Danessa Myricks’ experiential capabilities — table stakes in today’s beauty landscape. “Being able to try on shades creates confidence for the customer and creates that playground-like environment that people love,” says Myricks.
It also recently invested in NetSuite to improve customer journey tracking capabilities, enabling the company to balance staffing costs with the opportunity for improved tracking and goal evaluation. “It’s important that we monitor and closely evaluate our warehouse management systems and inventory management — that will be the key element to maintaining our incremental growth, over the years,” she notes.
With that said, the beauty company isn’t investing in tech for the sake of tech: “We’re an independent brand and answer only to ourselves,” Myricks says. “If we feel something strongly in our gut, we’re not relying on analytics and reports to shift and change. Our strength has been listening to our customers, being agile and following our instincts.”
+ Social Discovery
Founded: 2015
Annual Revenue: Approx. $45 million
Danessa Myricks Beauty
cbdMD
Founded: 2005
Annual Revenue: $8-$15 million
SMBs
RxSugar
Founded: 2019
Annual Revenue: Over $3 million
YoY Growth: 800%; in 15,000+ stores
RxSugar Non-GMO Project Verified/USDA Organic sugars and syrups are made from a plant-derived sugar, catering not only to the keto and paleo crowds but also anyone mindful of their blood sugar. The company is in growth mode, expanding to more than 15,000 stores — including Walmart, Kroger, Albertsons, and Rite Aid — and 30 channels across brick-and-mortar and e-commerce. It’s also in the midst of expanding its offerings.
Omnichannel has been a significant component of RxSugar's business since its founding, says Steve Hanley, founder and CEO. “As a smaller brand, we have the advantage of being nimble in our product development and forward-thinking in our operations to quickly meet those consumer needs.”
But, as can happen, a few growing pains have cropped up, including the supply chain constrained ecosystem in which RxSugar operates. To manage the increasing demand, the company leverages the Crisp data platform to help assess top-level demand across its distribution network in real time in order to plan production accordingly and keep retailers’ shelves stocked. Thanks to this investment, the company is now able to get ahead of its supply chain. RxSugar went from next-day ordering of materials and packaging to 12-week lead times.
“As demand for zero-sugar products grows across food and beverage, RxSugar can support the industry at large with a healthier alternative,” says Hanley.
+ Social Discovery
The family-founded Soupergirl prides itself on its vegan and all-natural soups with responsibly sourced ingredients. “Soupergirl is empowering consumers to make extraordinary purchases for themselves — delicious, nutritious, convenient, amazing food that is also a great choice for the planet, the growers, the air, the water, the animals — everything,” says founder Sara Polon. The company touts
on its website that unpronounceable ingredients have no place
in soup.
It’s launching a new website this year, which Polon cites as by far the company’s largest investment, and will focus on such things as bounce rates, conversions, and awareness. It’s also invested in virtual retailer platforms such as RangeMe to connect with buyers and other decision-makers, and the company aims to expand nationwide. As part of this, Soupergirl is currently working to build out a facility to accommodate this anticipated growth.
SMBs are often able to meet the needs of today’s new consumer in ways that big brands can’t thanks to their nimbleness, and Soupergirl is a prime example of that. It’s been able to pivot and respond quickly when it comes to new flavor demands, SKUs, and offerings, says Polon. “Our company is able to roll out new innovation in a matter of weeks, not months or years.”
Soupergirl
Founded: 2008; launched wholesale business in 2016
Annual Revenue: <$10 million
+ Social Discovery
The consumer electronics company taps into the education community to develop its playful STEAM and computer science devices for users of all ages. It also takes things a step beyond coding basics to provide inclusive learning tools through a relationship-first process.
“We have a content-led development approach,” says Kelly Gray, Sphero VP of marketing and product. “We think about what we want someone to learn, how easily a teacher or parent can help get a student started, and how we can make that learning fun, engaging, and progressive. We want to deliver overall experiences and solutions, not just products.”
In looking at its recent game-changing tech investments, Gray points to its investment into color-sensing technology — which was a key tech feature behind its entry-level indi robot. As Sphero moves forward, the company plans to continue to develop and build solutions catering to all PK-12 students, including new products launching later this year that lean more heavily into STEM and computer science, as well as integrate with existing products.
“We really do want to inspire,” says Gray. “We meet the needs of meaningful play and interaction with our products. Meaningful play means actually learning something — but disguised in fun.”
Sphero
Founded: 2010
Annual Revenue: N/A
YoY Growth: 30%
+ SOCIAL DISCOVERY
The sauce market is a crowded one, but Triple D’s cites both passion for creating superior products and consumer engagement as the cornerstones of its success. Getting its start with founder Yancy Seals’ secret recipes, the company’s sauces are made with gluten-free and vegan ingredients and prioritize community engagement to inform its decisions.
“We have learned a long time ago that our customers are our greatest asset and that we are not in the product sales business, but the people business,” says Seals. “It is important that we stay connected with that customer.”
As part of this, Triple D’s has developed focus groups and surveys to ensure it’s meeting the needs of new consumers, and it regularly monitors consumer sentiment on social media platforms. It also relies heavily on business partnerships: Sold through nearly 700 CVS stores with a growing online presence with Walmart, Amazon, Giant Eagle, and other independent locations, Seals says its partnership with the RangeMe retailer and supplier discovery platform has enabled the company to level the playing the field with larger consumer goods companies.
Looking ahead, Triple D’s has new products on the horizon and plans to shake up the beans category. “Scaling a business is easy to say,” notes Seals. “One would have to really evaluate, plan, and take a hard look at your business to see if you are even ready for the growth, because one thing you do not want to do is start growing and unable to meet your customer demands.”
Triple D’s BBQ
Founded: 2010
Annual Revenue: <$10 million
YoY Growth: 22%
+ Social Discovery
With a wait list exceeding 100,000 consumers, it’s safe to say that Last Crumb knows a thing or two about consumer engagement. The direct-to-consumer cookie company aims to provide “Michelin-worthy” experiences for its luxury cookies, which carry such names as Better Than S*x, The Madonna, Netflix and Crunch, and What the F*ck Velvet.
The Los Angeles-based company employs the “drop” model often found with footwear companies, stoking consumer excitement through limited availability and shifting varieties — with a hefty dose of social engagement thrown in. In order to even make a purchase, consumers must first enter their name on a waiting list.
“People want experiences, and Last Crumb provides that for them,” says Last Crumb CEO Matt Jung.
On the technology front, the company maintains a pretty light tech stack, Jung notes, which enables them to streamline operations and stay focused on product development. Indeed, the company not only prioritizes the quality of the products but also the packaging, with collections delivered in branded cookie bags.
Looking ahead, the company remains head-down on its underlying mission: “Our main priority is getting Last Crumb into the hands of the people who’ve been dying to try them, with a focus on our core collection,” says Jung.
Last Crumb
Founded: 2020
Annual Revenue: >$1 million
+ Social Discovery
PRESENTED BY
Startup Star to Watch
