In the competitive and ever-evolving landscape of the food and beverage industry, one company has managed to not only survive but thrive, leveraging innovative financing to fuel its remarkable growth. Crew Supply Co., founded by Marine Corps veterans Marshall Sterling and Kyle McElfresh, has become a testament to the power of strategic funding, adaptability, and innovation in business. This is the story of how Crew Supply Co. utilized Shopify Capital to drive significant growth, secure major contracts, and scale internationally while staying true to their innovative roots.
The Genesis of Crew Supply Co.
Founded in 2019, Crew Supply Co. emerged from a simple yet powerful frustration. Sterling and McElfresh, having spent years working in bars and restaurants, were fed up with the ineffective and single-use equipment that plagued the industry. Their mission was clear: to redefine the standard for professional bar supplies by building a brand focused on craftsmanship, intentional customer relationships, and sustainable practices.
"We set out to create solutions that speak directly to the needs of industry professionals," Marshall explained. "Our experience in bars made us acutely aware of the pain points, and we were determined to address them."
This unique blend of military precision and industry insight quickly established Crew Supply Co. as a trusted partner in the food and beverage sector. Their initial product line included durable, ergonomic bar tools designed to withstand the rigors of high-volume establishments.
Early Successes and Challenges
In their first year of operation, Crew Supply Co. achieved several notable milestones:
- Secured partnerships with over 50 local bars and restaurants
- Developed a proprietary line of eco-friendly bar mats
- Achieved a 95% customer retention rate
However, their journey was about to take an unexpected turn that would test their resilience and adaptability.
Adapting to the Pandemic: A Pivot to Success
Just months after their launch, the COVID-19 pandemic struck, forcing Crew Supply Co. to rapidly adapt their B2B business model. With bars and restaurants shuttering worldwide, the company faced a potential crisis. In a strategic pivot, they extended their product line to include Crew®, a brand designed for home bartenders featuring simple yet elegant cocktail kits.
This unexpected twist proved to be a pivotal growth moment for the company. The home cocktail market exploded during lockdowns, with Nielsen reporting a 54% increase in cocktail kit sales in 2020 compared to the previous year.
Crew Supply Co.'s pivot included:
- Expanding from B2B to include B2C offerings
- Launching the Crew® brand for home bartenders
- Developing simple cocktail kits for at-home consumption
- Creating online tutorials and virtual mixology classes
The company's quick adaptation paid off. Within six months of launching their B2C line, Crew Supply Co. had:
- Sold over 100,000 home cocktail kits
- Increased their social media following by 300%
- Established partnerships with major alcohol brands for co-branded kits
As the world slowly emerged from the pandemic, Crew Supply Co. found itself with two distinct verticals and growing inventory demands. This success, however, brought its own set of challenges.
The Challenge of Rapid Growth
As the hospitality industry bounced back, Crew Supply Co. faced a pressing need to increase their production capabilities quickly. New partnerships with major hospitality groups like Marriott, Hilton, and PF Chang's meant they needed to scale their inventory at an unprecedented rate.
"We probably didn't have six weeks to go through a review for funding approval," Marshall noted. "The opportunity was there, but we needed to act fast."
The company was faced with several critical needs:
- Ramping up production to meet new demand
- Expanding warehouse capacity
- Investing in new product development
- Hiring additional staff to manage growth
Traditional financing options, with their lengthy approval processes and rigid terms, were not viable solutions for Crew Supply Co.'s immediate needs. This is where Shopify Capital entered the picture, offering a lifeline that would prove instrumental in the company's continued growth.
Shopify Capital: The Game-Changer
Shopify Capital emerged as the perfect solution for Crew Supply Co.'s immediate funding needs. The platform offered quick access to funds and a straightforward repayment process, aligning perfectly with the company's fast-paced growth trajectory.
"Shopify Capital was perfect, offering quick access to funds and a straightforward repayment process," Sterling explained. "It allowed us to seize opportunities without getting bogged down in paperwork and lengthy approvals."
Since their initial funding round in 2020, Crew Supply Co. has utilized Shopify Capital multiple times to drive key business initiatives. Each round of funding allowed the company to seize new opportunities and keep up with market demands.
Key Initiatives Fueled by Shopify Capital
Hiring Top Talent:
- Expanded the team from 15 to 50 employees in 18 months
- Recruited industry experts in product design and supply chain management
Product Innovation:
- Invested $500,000 in research and development
- Filed patents for three new bar tool designs
- Launched a line of sustainable, biodegradable bar accessories
Brand Expansion:
- Launched the Garny brand of premium garnishes and bar supplies
- Developed a line of craft bitters and syrups
International Expansion:
- Established distribution centers in the UK and Australia
- Localized product offerings for international markets
Digital Infrastructure:
- Invested in a new ERP system to manage increased complexity
- Developed a custom B2B ordering platform for large clients
"Every time we used Shopify Capital, it allowed us to seize new opportunities and keep up with market demands," Sterling reflected. "The flexibility and speed of the funding were crucial to our growth strategy."
The Impact of Strategic Funding
The strategic use of Shopify Capital has had a profound impact on Crew Supply Co.'s growth trajectory. The company has experienced a remarkable 48% year-over-year growth, a testament to their adaptability, vision, and strategic use of funding.
Tangible Results
- Increased Production Capacity: Met the demands of new partnerships with major hospitality groups, increasing output by 300%
- Product Line Expansion: Successfully launched 50 new SKUs across both B2B and B2C verticals
- Global Reach: Expanded operations into 12 international markets, with exports now accounting for 30% of revenue
- Innovation Leadership: Developed 5 patented products, solidifying their position as industry innovators
- Revenue Growth: Achieved $20 million in annual revenue, up from $3 million pre-pandemic
The Power of Shopify Capital
Shopify Capital has proven to be more than just a funding source for Crew Supply Co. It has been a strategic partner in their growth journey, offering:
- Quick Access to Funds: Enabling rapid response to market opportunities, with funding typically available within 3-5 business days
- Flexible Repayment: Based on a percentage of daily sales, aligning with business cash flow and seasonality
- Multiple Funding Rounds: Supporting various stages of growth and expansion, with Crew Supply Co. accessing capital 6 times over 3 years
- Streamlined Process: Minimizing the time and effort required to secure funding, with pre-approval based on store performance
Comparing Shopify Capital to Traditional Financing
To illustrate the advantages of Shopify Capital for fast-growing businesses like Crew Supply Co., let's compare it to traditional financing options:
| Feature | Shopify Capital | Traditional Bank Loan |
|---|---|---|
| Application Process | Simple, online | Complex, paperwork-heavy |
| Approval Time | 3-5 days | 2-8 weeks |
| Collateral Required | No | Often yes |
| Repayment Structure | % of daily sales | Fixed monthly payments |
| Credit Score Impact | No hard credit check | Hard credit check |
| Seasonal Flexibility | Adapts to sales fluctuations | Fixed payments regardless of sales |
This comparison highlights why Shopify Capital was the ideal choice for Crew Supply Co.'s rapid growth needs.
Looking to the Future
Armed with the success of their Shopify Capital-fueled growth, Crew Supply Co. is not resting on its laurels. The company has ambitious plans to continue its upward trajectory:
- Digital Marketing Push: Upcoming ad campaigns slated for YouTube and Hulu, with a budget of $1 million for the next fiscal year
- Team Expansion: Growing team focused on driving further product innovation, aiming to double R&D staff in the next 12 months
- Continued Product Development: Ongoing investment in creating innovative solutions for the F&B industry, with a goal of launching 20 new products annually
- Sustainability Initiatives: Commitment to making 80% of product line eco-friendly by 2025
- Market Expansion: Plans to enter 5 new international markets in the next 2 years
Lessons for Entrepreneurs
The success story of Crew Supply Co. offers valuable lessons for entrepreneurs and growing businesses:
Adaptability is Key: Be prepared to pivot your business model in response to market changes. Crew Supply Co.'s shift to B2C during the pandemic was crucial to their survival and subsequent growth.
Leverage Strategic Funding: Utilize flexible funding options like Shopify Capital to fuel growth. Quick access to capital can be the difference between seizing or missing key opportunities.
Focus on Innovation: Continuously invest in product development and innovation. Crew Supply Co.'s patented designs have set them apart in a crowded market.
Expand Thoughtfully: Use funding to explore new markets and product lines strategically. Crew Supply Co.'s international expansion was carefully planned and executed.
Build Strong Partnerships: Cultivate relationships with major players in your industry. Partnerships with hotel chains and restaurant groups provided Crew Supply Co. with stable, high-volume clients.
Embrace Digital Transformation: Invest in digital infrastructure to support growth. Crew Supply Co.'s investment in ERP and B2B platforms streamlined operations as they scaled.
Prioritize Sustainability: Consumers and businesses increasingly value eco-friendly options. Crew Supply Co.'s commitment to sustainability has opened new market opportunities.
Conclusion: A Recipe for Sustained Success
The story of Crew Supply Co. is one of vision, adaptability, and strategic growth. From its inception as a solution to industry frustrations to its current position as a leader in the F&B supply sector, the company has demonstrated the power of innovative thinking and strategic funding.
By leveraging Shopify Capital, Crew Supply Co. has not only weathered the challenges of a global pandemic but has emerged stronger, with expanded product lines, international reach, and a solid foundation for future growth. Their journey serves as an inspiration and a roadmap for other entrepreneurs looking to fuel their own success stories.
As the F&B industry continues to evolve, Crew Supply Co. stands poised to lead the way, armed with innovative products, a strong team, and the financial backing to turn their visions into reality. Their story is a testament to what can be achieved when entrepreneurial spirit meets strategic financial support.
The company's success also highlights the changing landscape of business financing, with platforms like Shopify Capital offering alternatives that are more aligned with the needs of fast-growing, digitally-native businesses. As more companies seek flexible, responsive funding options, we may see a shift in how growth is financed across various industries.
For Crew Supply Co., the future looks bright. With a solid foundation built on innovation, adaptability, and strategic financial partnerships, they are well-positioned to continue their impressive growth trajectory and further solidify their position as industry leaders in the years to come.
Note: Shopify Capital is available in select countries. All financing through Shopify Capital is issued by WebBank in the United States. Offers to apply do not guarantee financing. Shopify Capital loans are repaid based on a percentage of daily sales. The maximum repayment term is 18 months, and 2 minimum payments apply. The actual time period within which the loan is repaid may be less than 18 months. Results may vary for every merchant.
