The Business of Erewhon Smoothies

The Business of Erewhon Smoothies 1 smoothie, $800k a month in revenue here's how Erewhon built that playbook Erewhon had already been doing smoothie collabs with celebs since 2021. Tinx had one, Marianna Hewitt had one. But it was the Hailey Bieber smoothie that broke the internet. That same month she launched Rhode. Erewhon dropped the strawberry skin glaze smoothie It was a genius marketing activation for her brand. At its peak, that $20 smoothie was selling 40,000 units a month That's $800K a month in recurring revenue from a single SKU Numbers most Series A tech startups would kill for And Hailey's smoothie reportedly outsells every collab smoothie they carry Now, celebs get paid $1 for every smoothie sold They're heavily encouraged to donate to charity, and then Erewhon chips in an additional $2 to the same cause They can afford to do that because every single celebrity smoothie has up to five ingredient brands paying to be included in that drink. We're talking brands like Vital Proteins, collagen peptides and Zuma Valley Coconut cream. The exact numbers are under NDA, but one brand reported being quoted $50,000 to be included in Kourtney Kardashian's smoothie. So Erewhon is collecting placement fees before even a single smoothie gets made And it goes beyond celebrity collabs Erewhon runs 16 branded drinks every year and brands like Salt & Stone and Boka have fully funded their own smoothie Interested brands pitch in October for the following year's slots and If you're accepted, you have to cover the costs of every free drink distributed to Erewhon's 60,000 paying members for the first 2 weeks of the month And this is what it all adds up to Erewhon, with just 10 locations pulled in $171 million of pure profit in 2023. The average grocery store runs on a 1.61% net profit margin So these smoothies are part of the reason why their economics look nothing like a normal grocery store I love breaking down the business of things, so follow for more.