Chew on This - Digestable DTC Content
Episode Title: The Next Billion Dollar Industry No One is Talking About...
Release Date: April 3, 2025
Guest: Justin Tidwell, Co-founder & CEO of Nowadays
1. Introduction
In this episode of Chew on This, hosts engage with Justin Tidwell, the visionary behind Nowadays, the first nationally available THC-infused spirit. Tidwell shares his journey from a viral pet project to scaling a groundbreaking business in a nascent industry. The discussion delves into product development, marketing strategies, overcoming challenges, and the future landscape of the THC beverage market.
2. From Viral Success to Scaling Up
Justin Tidwell recounts how Nowadays transitioned from a “cool idea and pet project” to a real business after achieving viral success on TikTok. Within the first 90 days post-launch in March 2023, the company generated $1 million in revenue purely through organic virality.
Justin Tidwell [00:00]: "The great thing about viral is that for $0, you're driving revenue and awareness to your brand, but it's sparing. One day you have two viral videos, the next month you have zero."
Realizing the unpredictability of viral marketing, Tidwell and his co-founder pivoted to establish a consistent paid media strategy to ensure continuous brand visibility.
3. Product Development and Branding
Tidwell emphasizes the meticulous 18-month product development phase aimed at creating a THC-infused spirit that offers a pleasant buzz without the negative aftereffects associated with alcohol or traditional cannabis products.
Justin Tidwell [01:04]: "We wanted to see what people thought of the product and had the benefit of going viral on TikTok. In our first 90 days, we did a million dollars in revenue."
The packaging was intentionally designed to resemble familiar alcoholic beverages to ease consumer adoption, while incorporating unique elements to stand out on the shelf.
Justin Tidwell [08:00]: "It needs to feel like a mass market product... and then look a little unfamiliar to intrigue your interest."
4. Marketing Strategies: Organic vs. Paid Media
Initially relying on organic virality, Nowadays quickly faced the challenge of meeting high demand with limited production. Transitioning to a pre-order model and transparently communicating with customers helped maintain trust and manage expectations.
Justin Tidwell [05:58]: "We communicated with our customers and they're still around today. You're not going to be perfect as a business, but communicate to your customers they're real people and they'll get it."
To mitigate the volatility of viral marketing, Nowadays implemented a diversified paid media strategy across platforms like Meta and TikTok, focusing on consumer benefits rather than explicit product details to comply with advertising restrictions.
Justin Tidwell [11:11]: "We have to have a strategy where nowadays is always on and where people are always seeing us."
5. Influencer Marketing Approach
Initially, traditional paid influencer endorsements were ineffective. Justin shifted to a sampling strategy, providing influencers with free products to experience and share authentically.
Justin Tidwell [25:02]: "We send them the product, we educate them, tell them how to use it, and we say, speak your mind."
This approach yielded better engagement and genuine consumer trust, fostering consistent brand mentions and leveraging influencer authenticity.
Justin Tidwell [26:50]: "Consumers are smart. They see what influencers genuinely think about the product, which drives more sales."
6. Overcoming Challenges and Competition
As the THC beverage market began attracting knockoff products, Justin emphasized maintaining a premium brand positioning and focusing on quality to differentiate Nowadays from competitors.
Justin Tidwell [34:08]: "We're a premium brand and a premium product. We're not going to fight over being the cheapest; that's someone else's game."
Additionally, regulatory compliance remains a significant hurdle. Nowadays prioritizes proactive compliance to navigate the evolving legal landscape and advocate for sensible regulations.
Justin Tidwell [17:46]: "We want to take a very kind of compliant approach and make sure that people we're working with are all 25+."
7. Future Outlook and Growth
Looking ahead, Justin envisions Nowadays as a leader in the functional beverage category, akin to brands like Red Bull in the energy sector. The company plans to deepen its presence in the THC segment while exploring other functional ingredients that provide real benefits to consumers.
Justin Tidwell [31:06]: "What Red Bull and Monster are to the energy category is what Nowadays wants to be to the functional beverage category."
Moreover, the strategy includes balancing Direct-to-Consumer (D2C) efforts with building a robust wholesale distribution network, aiming for a 50/50 split between online and retail sales in the future.
8. Key Takeaways
- Adaptability: Transitioning from viral marketing to a stable paid media strategy is crucial for sustained growth.
- Product Excellence: Ensuring product quality and a unique user experience fosters customer loyalty and differentiates the brand.
- Authentic Marketing: Leveraging genuine influencer experiences over traditional endorsements builds trust and drives sales.
- Regulatory Foresight: Proactively addressing compliance and advocating for sensible regulations can navigate legal challenges effectively.
- Balanced Growth: Combining D2C efforts with wholesale distribution creates a balanced and resilient business model.
Justin Tidwell [45:50]: "Focus on your business needs today and go step by step. Those little steps lead to huge leaps."
Conclusion
Justin Tidwell's journey with Nowadays underscores the importance of innovation, authenticity, and strategic adaptability in building a successful Direct-to-Consumer brand in a pioneering industry. For DTC founders, his insights offer valuable lessons on scaling a business from viral success to sustainable growth.
For more insights and actionable strategies, follow Chew on This on Twitter, Instagram, TikTok, and visit chewonthis.io.