Forecasting the Future: Growing Caraway from Online to In-store
In this month's special forward forecasting issue, we are asking some of our partners how Liquidity Group will help them achieve their financial goals in 2023. Jordan Nathan, CEO of Caraway gave us insight into the company's 2023 growth.
2023 has just started. How do you forecast 2023 from your company's perspective?
Caraway forecasts inventory movement around major brand moments, product launches, and launching new distribution channels. As we expand into the kitchen space even more in 2023, we're excited to continue furthering our mission of creating non-toxic kitchenware designed for the modern home cook. We expect to launch Caraway into additional retail store locations and distribution channels before the year's end.
What is the "secret sauce" of your company's success, and how do you define your competitive advantage vs other market participants?
We can attribute our growth to our efforts in building a strong community on social media and producing best-in-class content throughout all of our platforms that entertains, educates, and inspires. Our omnichannel approach, coupled with diversifying our marketing mix, including doubling down our efforts on Instagram and TikTok, has allowed us to tactically reach our customers wherever they are.
And beyond reaching and exposing new people to our products for the first time, listening to our ever-growing community of Caraway customers is another invaluable resource when it comes to product development & innovation. Our community is our greatest product incubation tool in illuminating areas of improvement and making the user experience easier and refined, all the way from browsing and shopping our site, shipping & handling orders, to integrating our products into your kitchen on an everyday basis. Optimizing all brand touch points to create a world-class customer experience has been critical to building an obsessed and loyal following.
After partnering with LIQUiDITY group, what is the main goal and usage of the acquired facility?
Caraway has focused its capital infusion on growing our team, securing strong inventory positions, funding new products, and deepening our retail partner relationships. Our recently launched Food Storage Set, Tea Kettle, and Minis Duo led to a significant uptick in returning customers excited to add to their existing Caraway collections. With LIQUiDITY’s acquired facility, Caraway’s in-store presence has grown from 100 to 518 locations across the U.S. & Canada, including Target, Crate & Barrel, and The Container Store.
What was the process that led you to choose a debt facility over other funding alternatives? In what situations will you consult companies to follow that path?
For a consumer company like Caraway, debt is a great non-dilutive option to help fund inventory and marketing expenses for growth. It is an ideal option for companies who have strong unit economics and positive cash flow, and we appreciate the partnership with LIQUiDITY on a flexible line that can fund all business activities.
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Caraway is a direct-to-consumer cookware company that was founded in 2018. The company's mission is to provide high-quality, non-toxic cookware at an affordable price. They use ceramic non-stick coating made without PFOA, PTFE, lead, or cadmium, making it safe for cooking. The brand gained popularity through its direct-to-consumer model and its focus on sustainability and healthier cooking options. Caraway has since expanded its product line to include a range of kitchen essentials and accessories.
