Brands Briefing: How Coterie built a diaper brand of Mammoth proportions

“When they announced their vision to build this modern CPG company and really flex that M&A muscle, that’s when things got more serious,” Jacobs said. “It was like, ‘Oh my gosh, this could be the most unbelievable fit.”

Mammoth Brands announced last week it acquired Coterie for an undisclosed amount, a deal that helps cement its reputation as a burgeoning CPG conglomerate looking to shake up stale categories. The $12 billion U.S. diaper market has traditionally been dominated by P&G’s Pampers and Kimberly-Clark’s Huggies. But the category is undergoing something of a transformation thanks to a number of new start-ups, like Honest, Hello Bello and Kudos, plus more private label entrants. 

Coterie, which hit $200 million in net revenue in the past 12 months, is arguably the pinnacle of this new generation, with its overall popularity and higher-quality product. Some reviews have called Coterie “the Rolls-Royce of diapers,” a moniker it has embraced in its own marketing. It has sold over 700 million diapers since launching in 2019, with about 40% of business driven by word-of-mouth referrals. And while the vast majority of sales are online, its bespoke wholesale presence in places like Wegmans, Erewhon and Whole Foods offers a glimpse into how Coterie could perform on shelves: At Whole Foods, for example, Coterie has made up 86% of diaper sales since August.

But looking ahead, achieving great scale and omnichannel success is where Mammoth comes in. Mammoth’s Katz-Mayfield said that turning Coterie into a $400 million or $500 million brand requires a different set of capabilities around retailer partnerships, media mix and underlying infrastructure.

“I actually have no doubt they would have ultimately figured this all out on their own,” he said. “But you can get there faster, and avoid some pitfalls and mistakes, if you’re working with somebody like us who has some of that pattern recognition.”

One of Coterie’s biggest challenges as it seeks to grow will be achieving growth without diluting the brand that fueled its rise. But Jacobs said working under the Mammoth umbrella means Coterie can be strategic about where and how it shows up.

“We share this intense dedication to offering our customers more in industries that have been stagnant for so long,” she said. “They’re up for that challenge, and not everybody has the stomach for it.”

A rapid growth story built on better diapers

Other than the relative speed, what’s almost more surprising about Coterie’s growth is that it’s playing at the top of the price point. A subscription plan for 186 size 2 diapers is $80.75 a month, while a similar-sized package of Pampers Baby Dry at Target is $47.99.

But the value proposition comes down to a better-quality product that minimizes leaks, leading to more comfortable sleep for babies — and parents. Coterie has also emphasized the “clean” nature of its diaper, which is 25% plant-based and chlorine-free. Once subscribed, parents tend to stick — about 70% of subscribers stay with the company for 12 months.

Lily Walla, a mom of two and founder of the app-based parenting community Auggie, said what’s different about Coterie is its high-touch experience and strong brand identity — which she thinks may resonate with a more mass audience that’s constantly cycling in and out of needing to buy diapers. “The brand’s premium DNA doesn’t need to change, as long as they keep doing what they’re doing,” she said.

Much of Coterie’s ads and marketing leads with performance, as the product is a thicker and softer diaper than mass counterparts. It also offers a more aesthetic experience that resonates with the Insta-worthy culture of millennial and Gen-Z parents; Coterie’s diapers are pure white, unlike many leading brands with their colorful designs or cartoon characters.

It helps that Coterie also counts celebrities like Karlie Kloss and Ashley Graham as investors — they also show up in its marketing campaigns from time to time. Some ads lean into the heartfelt journey of parenting, while others point out the more humorous moments.

“What they do really well is understand that trust is the new currency for parents,” Walla said. “It’s not just about what the diapers are made of. It’s about what parents feel confident putting on their baby.”

Align Ventures — one of Coterie’s earlier investors and the first investor in Touchland hand sanitizer, which was acquired by Church & Dwight in May — currently owns almost half of Coterie. Ben Bryce, managing partner at Align Ventures, said the biggest draw was how Coterie filled a market gap for a more premium product — plus the potential for an improved product that can help babies sleep through the night and not be woken by a leaking diaper. 

Beyond the product itself, Bryce said Coterie has been successful because it operates a strong subscription model. Parents can control orders via text, whether that’s delaying a shipment or changing sizes with the help of a Size Assist modeling tool.

“When I talk to parents today about why they love the brand so much and why it has permeated the culture, it’s those things: It’s the gap, it’s the product, and it’s the marketing and personalization,” he said.  “They’re always thinking, ‘How do we make things better?’ Whereas, I think, in legacy conglomerates, they’re just cutting through red tape all the time.”

Heading to Mammoth for future disruption 

Once under the umbrella, Katz-Mayfield said Coterie will be keeping its teams intact and getting support on new and emerging areas of its business. Some of those components will be “the unsexy stuff,” like finance and enterprise resources planning (ERP) systems. But Coterie will also benefit from the marketing engine Mammoth has built, Katz-Mayfield said — in particular, figuring out a media mix that helps grow audiences.

Then there are the existing retail relationships Mammoth can leverage. Katz-Mayfield said Mammoth takes  a special interest in helping retailers figure out how to “translate what has worked online into a traditional brick-and-mortar environment,” whether through display, price pack architecture or merchandising.  

While the acquisition marked a pivotal point in Coterie’s trajectory, it was also a big leap forward for Mammoth Brands as its second portfolio acquisition since bringing on Lume deodorant in 2021. Katz-Mayfield confirmed to Modern Retail that it is the biggest acquisition the company has made to date.

But more broadly, it’s also the first time the company is going beyond adult personal care as it looks to build a portfolio of disruptive non-food CPG brands.

“We’re less dogmatic about: ‘It must be in this category or have this margin profile,’ he said. “We’re basically, like, ‘Is this brand disrupting because it is making consumers’ lives better?’ And that’s the North Star we think about and what got us so excited about Coterie, because they’ve really done an amazing job at that.” –Melissa Daniels

Behind the scenes of Ugg’s latest ‘Feel House’ pop-up

Ugg has been having a banner couple of years, thanks to larger cultural nostalgia for the early aughts. Just last week, its parent company, Deckers, reported that Ugg sales for the second quarter were up 10.1% to total $759.6 million. Now, Ugg is nodding to its past, present and future in the latest iteration of its experiential retail concept, “Feel House.”

“Feel House,” which first launched in 2022, is now open in lower Manhattan, in Chelsea. Ugg has hosted previous “Feel Houses” in Brooklyn, New York; Los Angeles, California; Chengdu, China; and Seoul, South Korea. The latest “Feel House” is an ode to all things Ugg, featuring shoes through the ages, the first-ever Ugg boot from the 1970s, a “bling bar” to personalize Uggs and Ugg’s new collaboration with Sacai. 

Notably, “Feel House” is bigger this year, spanning three floors instead of one, Carole Diarra, global vp of marketing at Ugg, told Modern Retail in an on-site interview.

Ugg has done experiential retail before, including customization workshops and concerts. An experiential concept like “Feel House” is “one of the key things that allows us to continue to be relevant, because it showcases the fashion, the history and the feel of the brand — the vibe that you get, the emotional connection,” Diarra said. “Everyone has their first story of when they experienced the brand. … ‘Feel House’ is a key part of improving that brand affinity.”

This fall’s “Feel House” is also curated by rapper A$AP Ferg, whom Diarra called a fan of the brand. Ferg made paintings to hang above the staircase, and he weighed in on the look and feel of the space. Working with Ferg is “really a celebration of being in New York and him and our community as multi-hyphenate artists,” Diarra said. Last fall’s “Feel House” collaborator was Post Malone. Splashy pop-ups like “Feel House” will be an important way for Ugg to introduce itself to new customers and keep it top of mind for existing ones as the brand’s growth is projected to slow in the rest of the year.  –Julia Waldow

How De Soi’s Scout Brisson approaches hiring

Bringing on new talent is one of the most critical aspects of scaling a food or beverage brand. Scout Brisson came to De Soi in 2021 to help grow the Katy Perry-founded non-alcoholic aperitif brand. Since then, the brand has grown its retail footprint, including a nationwide Target rollout in 2024. Brisson is currently looking to hire a West Coast sales director. Here, she gives a few tips on what she looks for in applicants in a tough job market.

• Hiring at a startup is always chaotic and can look different depending on the company, Brisson said. By the time a role goes live, she said, most hiring managers are already interviewing early candidates and have inboxes brim full of messages that all sound the same. Brisson said DMs on social media alerting an executive you “Just applied!” don’t cut through the noise anymore. 
• To stand out, Brisson recommends that applicants “play the long game” to land a dream job at a brand they have been eyeing. “Reach out before there is even a job posted and tell managers why you care about their product or company,” she said. 
• During the interview process, Brisson said she looks for people who express genuine curiosity about the future of the brand. “People typically remember candidates who have tried the product and ask sharp questions based on their own take,” Brisson said. “You can’t fake that kind of interest.” With that, she said, sending a follow-up note pitching unique ideas can keep candidates top of mind after meeting with them.  –Gabriela Barkho

What we’re reading

• It’s a big day for retail layoffs, with Amazon and Target both poised to cut thousands of jobs today.
• Lululemon is partnering with the NFL and Fanatics to release apparel for all 32 teams to make a bigger push into sports.
• Ariela & Associates is shutting down Parade, the direct-to-consumer underwear brand it acquired in 2023.

What we’ve covered

• Brands like Voluspa and Bombas are hoping a second round of ‘Wicked’ products will drive some retail sales magic.
• Crocs is livestreaming on TikTok Shop all month long in honor of “Croctober.”
• Set Active is using TSA bins for its first big OOH push.