Limited Supply Podcast Summary

Episode: S12 E5: Creative Chemistry and Building a Beverage Brand
Host: Nik Sharma
Guest: Aaron Nosbisch, Founder of BRÉZ
Release Date: May 7, 2025

Introduction

In Season 12, Episode 5 of Limited Supply, host Nik Sharma welcomes Aaron Nosbisch, the visionary behind BRÉZ, a rapidly growing beverage brand blending cannabis and mushrooms to create a unique social tonic. The episode delves deep into Aaron’s entrepreneurial journey, the innovation behind BRÉZ, and strategic insights into scaling a direct-to-consumer (DTC) brand in the competitive beverage industry.

Aaron Nosbisch’s Entrepreneurial Journey

Background and Early Ventures

Aaron begins by sharing his extensive experience in e-commerce, starting at the young age of 13 with MySpace and Big Cartel. He highlights his early success with Monk, a portable aromatherapy diffuser that scaled to $15 million annually within two years, marking it as one of America's fastest-growing companies at the time.

[01:32] Aaron Nosbisch: "We're making innovative ways to bring that product to market through the Internet, through direct to consumer building a business that supports that."

Despite early successes, Aaron faced challenges, including being pushed out of his role as CMO at Monk, leading to a period of uncertainty before founding Lucid, the largest cannabis social advertising agency within five years.

Building BRÉZ: Product and Innovation

Concept and Product Development

BRÉZ emerges from Aaron’s desire to create an alternative to alcohol, focusing on a microdose cannabis and mushroom-infused social tonic. This innovative blend offers a euphoric yet active buzz comparable to alcohol but without the same depressant effects.

[01:56] Aaron Nosbisch: "We use low dose THC, CBD, and Lion's Mane Mushroom to create this happy euphoric feeling that you feel within minutes of drinking and lasts for about an hour to an hour and a half."

Product Launch and Market Fit

Launched on April 20, 2023 (420), BRÉZ quickly gained traction, becoming one of the fastest-growing beverages in the country. Aaron attributes this success to precise market timing and the brand’s ability to resonate with consumers seeking a healthier, more conscious alternative to traditional alcoholic beverages.

[07:02] Aaron Nosbisch: "We did about 1.25 million in the first eight months... and then scaled to 28.9 million in 2024, a 19x growth year over year."

Scaling and Revenue Growth

Impressive Growth Metrics

BRÉZ showcased remarkable growth within its first year, moving approximately 9 million cans in 2024 and projecting revenues between $50 million to $70 million for 2025.

[07:45] Aaron Nosbisch: "Moved about, I think, about 9 million cans in 2024... pacing for somewhere between like 50 and 70 for the year of 25."

Expansion into Non-Infused Products

To broaden market reach, BRÉZ expanded into non-infused products containing ingredients like cacao, Lion's Mane, black seed, and L-theanine. This diversification allows BRÉZ to penetrate traditional retail and grocery channels, alongside its infused offerings.

[07:49] Aaron Nosbisch: "By the end of this year, we have a full range of products, both infused and non-infused."

Brand Strategy

Defining Brand Essence

Aaron emphasizes that a brand is a "capsule for meaning," encapsulating every aspect from colors and visuals to customer interactions and company culture.

[11:15] Aaron Nosbisch: "Brand is a capsule for meaning. Whatever you do as the brand defines the brand."

Fundamental Business Drivers

He identifies two critical drivers for business success: innovation and distribution. Innovation ensures the product meets unaddressed consumer needs, while robust distribution guarantees market penetration.

[11:15] Aaron Nosbisch: "You have to have really strong innovation... And you have to have really strong distribution."

E-Commerce Optimization

Leveraging his e-commerce expertise, Aaron built BRÉZ’s online infrastructure to support high average order values (AOV) and subscription models, ensuring sustainable growth amidst rising advertising costs.

[11:15] Aaron Nosbisch: "We had to build an E-commerce system machine that would support a high AOV, that would be subscription first, that would have a product that has stickiness to convert to a high LTV."

Marketing and Channel Strategy

Omnichannel Approach

Aaron discusses BRÉZ's strategic use of various marketing channels, emphasizing early adoption of platforms like TikTok Shop and Applovin to gain a competitive edge.

[20:45] Aaron Nosbisch: "We became the number one TikTok shop beverage... that was a major aspect to our growth cycle."

Leveraging TikTok and Influencer Marketing

BRÉZ skillfully utilized TikTok's algorithm and influencer partnerships to drive viral growth. By distributing products to a large number of micro-influencers and amplifying their content, BRÉZ achieved significant brand visibility and sales.

[24:44] Aaron Nosbisch: "We developed new entry intro offers and new funnels to really support that... early influencer marketing days."

Balancing Channel Dependencies

Initially focusing on Meta (Facebook and Instagram), Aaron ensures BRÉZ doesn't become overly dependent on a single platform by diversifying their marketing efforts across emerging channels.

[20:45] Aaron Nosbisch: "You don't want to be overly dependent on meta too long... diversify to have a balanced and fortified structure."

Unit Economics and Business Insights

Optimizing Unit Economics

Aaron shares insights from his agency experience, highlighting the importance of high unit economics through strategies like bundling offers to improve cost of goods sold (COGS) and shipping efficiency.

[36:11] Aaron Nosbisch: "We switched the offer to be three cases for 36 bucks... everything's optimized for threes."

Strategic Resource Allocation

Drawing from his time running an agency, Aaron underscores the necessity of generating capital through profitable ventures to fund long-term business goals, advocating for creative resource acquisition strategies.

[36:11] Aaron Nosbisch: "Think creatively of like, can I acquire resources that allow me to fulfill my long-term vision."

Rapid-Fire Questions and Key Takeaways

Common Red Flags in Startups

When evaluating new products, Aaron identifies a lack of big-picture thinking and insufficient innovation as primary red flags. He stresses the importance of solving significant problems with innovative solutions and implementing strong go-to-market fundamentals.

[30:39] Aaron Nosbisch: "Most people don't think about a big enough problem to solve... don't apply enough innovation."

Creating Desirable, Accessible Products

Aaron emphasizes balancing desirability and accessibility, ensuring products are premium yet attainable. This strategy drives word-of-mouth marketing and fosters brand loyalty without engaging in destructive price wars.

[34:19] Aaron Nosbisch: "I don't want to do that. I don't want to play a price game... I want to create premier desirable experiences."

Leveraging Community and Technology

Maintaining strong community ties and staying ahead with technological integrations have been pivotal in BRÉZ's sustained growth and market relevance.

[20:45] Aaron Nosbisch: "We have really smart people on the team... Applovin was another example... competitive advantage."

Conclusion and Next Steps

Nik Sharma wraps up the episode by expressing interest in a follow-up conversation, acknowledging the depth of insights shared by Aaron. Listeners are encouraged to subscribe and share the podcast to stay tuned for future episodes that continue to explore the intricacies of CPG, retail, and e-commerce.

[39:09] Nik Sharma: "We'll do a part two at some point soon."

Notable Quotes

• Aaron Nosbisch on Brand Essence:
  "Brand is a capsule for meaning. Whatever you do as the brand defines the brand."
  [11:15]

• On Innovation and Distribution:
  "You have to have really strong innovation... And you have to have really strong distribution."
  [11:15]

• On Scaling BRÉZ:
  "Moved about, I think, about 9 million cans in 2024... pacing for somewhere between like 50 and 70 for the year of 25."
  [07:45]

• On TikTok Marketing:
  "We became the number one TikTok shop beverage... that was a major aspect to our growth cycle."
  [20:45]

• On Unit Economics:
  "We switched the offer to be three cases for 36 bucks... everything's optimized for threes."
  [36:11]

Connect with Aaron Nosbisch

• Email: breeze@drinkbreeze.com
• Social Media: Aaron Nosbisch on Twitter
  (Handle: Aaron J Nosbisch)

This episode offers a comprehensive look into building a successful DTC beverage brand through innovation, strategic marketing, and robust business fundamentals. Aaron Nosbisch’s insights provide valuable lessons for entrepreneurs aiming to disrupt traditional markets with groundbreaking products.