1800Hotline 036 // Mid-Day Squares just borrowed $8M
As the CEO of 1800DTC, I'm focused on building one of the strongest communities in commerce. Through content, events, and shared knowledge, the goal is to connect the best operators, brands, and technology shaping the future of DTC. My background is rooted in the Shopify ecosystem. I've worked across leading platforms and agencies including Route, Stay AI, and Toki, and most recently led growth and partnerships at Lunar Solar Group. Along the way, I've spent years working closely with brands, operators, SaaS partners, and agencies across the commerce landscape. Across every role, the throughline has remained the same: commerce, content, and community. I'm based in Utah. When I'm not working, you'll likely find me skiing, biking around town, or training for my next competition.
Hey DTC fam,
Deep into August and things are getting spicy (literally, check out Loisa). Here’s what we got going today:
- Mid-Day Squares taking on debt to chase Walmart and Costco
- Brands expanding into new products and categories
- Unique “microdramas” social media play
Shall we?
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[ IN THE NEWS ]
Mid-Day Squares Borrows $8M to Chase Walmart and Costco
Mid-Day Squares closed $8 million in debt financing to expand production capacity toward $250 million of output, ahead of launching in Walmart USA and Costco USA. The package was led by Investissement Québec and Canada Economic Development for Quebec Regions.
The detail worth sitting with: this is debt, not equity. They’re funding a capacity build without giving up more of the company. That only works when the retail commitment on the other side is real enough to underwrite against.
Sequencing matters here too. Audience first, doors second, plant third. Plenty of brands build the plant first and end up with capacity they can’t fill.
If you’re staring down a national retail launch and your co-man is the ceiling, this is the playbook most founders skip. Equity is easier to raise and much harder to say no to.
Fabletics
Fabletics is expanding (and fast). After passing the $1B mark, they’re planning on opening 45 new stores over the next year with, “a commitment to delivering a consistent brand experience for customers around the world,” - Meera Bhatia, Fabletics President.
Why DTC operators should care:
- Classic membership-driven DTC brand treating physical retail as a primary growth and brand-building engine (aka lean into it)
- Goldenberg (the company’s Co-founder and CEO) is implementing the same high-conversion retail model that worked in the U.S., using local partners for complex markets.
- Shows the playbook for post-$1B digitally native brands: double down on owned retail + membership rather than pure wholesale volume.
Ferrero Acquires Purely Elizabeth
The terms of the deal aren’t final, but we do know that Founder and CEO Elizabeth Stein is staying on. This is important because we see a lot of founders cash out when strategic partners step in.
This is a good case study on keeping strong brand integrity. Things would feel much different if a brand refresh happened with Purely Elizabeth.
Hold on to that branding.
[ BUILT WELL ]
Shoutout to Jaz and Jamil at Otherhalf. They just shipped Heist’s new site and it’s worth clicking through.
Their thesis is simple: brands overinvest in paid and underinvest in the page that paid traffic lands on. Jaz spent a decade designing in ecommerce starting at Shopify, then grew Yellow Beauty into Anthropologie and Urban Outfitters. Jamil founded and exited BFF. The team has built for Everlane, The Skinny Confidential, Halfdays, DUDE Wipes, and Lemme.
Senior-led, and the team that designs your site is the team that builds and supports it. No handoff, no ticket queue.
If your CVR has been stuck at 2% and you’ve already wrung out creative, the site is probably the constraint.
[ QUICK HITS ]
- Gimme Seaweed - the #1 organic seaweed snack brand in the U.S, strategically launched their campaign during the back-to-school season—a time when families reset routines, restock pantries, and rethink lunchbox choices—further expanding brand awareness among key demographics, including Gen Z and Gen Alpha. Check out their launch video here
- Baggallini - going after millennials and Gen Z’s. To help with this push, they’re throwing “an event with a soon-to-be-announced celebrity trainer and fitness influencer. And in January, Baggallini started collecting VIP signups for certain styles exclusive to its DTC website.” The smart brands start early.
- Laird Superfood Sales shoot up 244% as they build their platform and retail spaces.
- We all know hydration brands are popping up like crazy, but Chaser is diving deep to go after “deep sea hydration” category. Excited to see where they take this.
- Alo brings on Kylie Jenner as their latest influencer for their campaigns. The wellness category is nearing the $7B mark. Wild times to be in this game.
[ BRANDS WE’RE WATCHING ]
UNDO - You know that horrible hangover feeling? Not anymore. Ben and Jen created a pre-alcohol gummy to fight hangovers. Now after their $1M Seed Round, they’re launching in 889 Target locations.
Check out UNDO Gummies here → undogummies.com
Aviron - Building the steepest treadmill yet. With three new products on their way, The Summit hits a 42% incline and drops to a -6% decline. They’re “using game phsycology to get you hooked on exercise”, and now with a steeper climb. Product innovation is only becoming more important
Depop - “the online fashion resale marketplace” is partnering with Spotify for a new marketing campaign. They have artists compiling collections of clothes and playlists with in-person activations coming up. Really cool to see fashion + music mash up like this.
Nuuly - becoming a top clothing rental platform in the space, they’re leaning into “rom-com microdramas” on social to try to cut through noise. They know their customers are on social and this is a differentiated way to reach them. Extremely smart play.
The DTC space is moving faster than ever. If you know a founder, operator or brand wanting stay at the forefront, send this directly to them → The 1800HOTLINE
See you Thursday,
Zach and 1800DTC Team 1800DTC.com
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