How Food and Beverage Brands Can Build DTC Without Undermining In-Store Growth

For food and beverage brands that started in retail, launching or scaling a direct-to-consumer (DTC) channel can feel like walking a tightrope. The fear? That building out your .com experience will cannibalize retail velocity or strain relationships with key partners like Target or Whole Foods.

But here’s the truth: DTC isn’t a threat to retail. Done right, it’s a growth engine for the entire business.

Let’s break down how retail-first brands can strategically grow their DTC channels while supporting—not competing with—brick-and-mortar sales.

DTC isn’t just about selling more units. It’s your chance to build a customer data pipeline and drive deeper brand storytelling. Yet many food brands miss this opportunity by measuring DTC in isolation. Instead, consider the role DTC plays in the bigger ecosystem.

To help brands evaluate the health of their DTC channel, we’ve developed the Power Circuit Benchmark—a proprietary dataset built from performance data across dozens of food and beverage brands.

Power Circuit Benchmark Data: For example, brands with DTC revenue below a certain percentage of total sales might be under-indexing online growth and missing an opportunity to build retention and first-party data pipelines. Why does this matter? Because DTC isn’t just another revenue stream—it’s a strategic asset. 

When built with intention, DTC gives brands the ability to:

But the benefits don’t stop at the DTC channel. Strong DTC performance creates a waterfall effect across retail—greater negotiation power with buyers, increased sell-through on shelves, and a stronger case for expanding distribution. In other words, DTC strength amplifies retail success, not competes with it.

At the same time, category dynamics matter. The decision to build or scale DTC should be based on product type and consumer behavior. For example, less than 5% of alcohol sales happen online, making retail the higher-impact channel for growth. Other categories—like olive oil, snacks, or energy drinks—may also see slower online adoption compared to sectors where consumers naturally buy direct.

That’s why the benchmark isn’t a red flag—it’s a roadmap. Falling below the average means there’s an opportunity to unlock incremental growth, boost margins, and strengthen long-term enterprise value. The key is balancing DTC’s role within your broader channel mix, ensuring every move ladders up to the right growth strategy for your category.

To prevent DTC from undercutting retail:

These strategies signal to retail partners that your marketing efforts lift all boats.

The most successful food and beverage brands see digital and retail not as rivals but as collaborators. At Power Digital, we help brands:

“We want to avoid shifting consumer behavior, and instead meet consumers where they are most likely to purchase to capture revenue through their preferred channel,” Jenna Wookey, Sr. Account Director, CPG at Power Digital says.

The brands that succeed are the ones that take a step back and look at the full landscape. They invest in the right measurement tools, embrace a longer timeline for results, and understand that omnichannel success is about balance, not just one metric.

Building a high-performing DTC strategy doesn’t mean sacrificing your retail momentum. With the right tools, mindset, and measurement strategy, food and beverage brands can drive digital growth that lifts their total business.

Explore how our Digital Marketing Services support omnichannel success, or connect with a Digital Marketing Agency that builds channel synergy and long-term growth.