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How Dutch Bros is answering consumer demand as it grows


For an emerging brand in hyper-growth mode like Dutch Bros, it can be easy to primarily focus on physical expansion into new markets. But as new Dutch Bros CEO Christine Barone said during Thursday’s J.P. Morgan forum, while the Grants Pass, Ore.-based coffee brand is keeping development front of mind — with Florida as its next target market — she wants to emphasize diverse means of growth.

For Dutch Bros, that means focusing on smart development with fanbase growth in mind, building brand awareness, and give the company’s tech stack a makeover.

“What we’ve historically seen as we go into new markets, is that customizable energy drinks are very popular with new guests, because they are new products to market,” Barone said. “When we first went into the Phoenix market, we had low AUVs — people didn't even know who we were. Now when we go into new markets like Florida, we already have fans in the market. National awareness of the brand can be driven by physical locations, and it can be driven by excited people on social media doing free marketing for you.”

As Dutch Bros grows, Barone said, the company is being hyper-aware of expanding into places that know who the brand is, but that there is still more room for growth to introduce potential new fans to Dutch Bros’ coffee and energy drinks.

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