Erika Nardini explained at the recent Barstool Sports conference that the “Barstool Everywhere” mantra is about taking “as much market share as possible, whether it’s on the internet or in your grocery aisle.” But the company’s chief executive wasn’t exaggerating for emphasis. One Bite frozen pizza goes on sale today at more than 3,500 Walmart stores nationwide (and the Barstool store). “Four years ago, we turned the One Bite Instagram pizza review series into an app. [Now]we turn it into something you can find in [stores] across the country,” she said. Barstool’s frozen pizza venture is the latest example of a digital media company trying to break into IRL – “in real life”, a term used in video game circles to refer to social interactions in the physical world.
Our opinion : The trend for digital media companies to appear in real life (see: Overtime’s formation of Overtime Elite) has taken hold as more and more of them strive to “fit into life of their audience as traditional consumer brands,” Michael Neuman (Founder, Scout Sports & Entertainment) said. He explained that the change in philosophy is the result of changing market conditions. ” Everything is a question of choice. As media becomes even more fragmented, yet niche, there are many options for consumers to curate a wide range of sports programming. Like CPGs (consumer packaged goods), product and service brands, the same marketing logic applies [here]– relevance, conversation and mystery prevail.
The need to diversify revenue streams also appears to be a catalyst for mobile media companies. Remember that with social platforms placing less emphasis on branded content, many advertising-focused businesses are less lucrative than they used to be.
Barstool isn’t the first media company to try to become more of a mainstream consumer brand. Many have tried; most failed (remember the ESPN area). But they are a bit different in that few have attempted to break into the CPG category.
Barstool Sports’ relatively lean payroll and varied revenue streams have allowed the company to use the pandemic as a time to “launch new formats, explore new distributions and take more risks,” Nardini said. Among the risks cited was the company’s latest attempt to extend the “Barstool Everywhere” concept beyond the digital realm and into real life.
While a spot in the frozen aisle fits the “everywhere” narrative, the company sees One Bite as a revenue opportunity. As Nardini said, pizza (frozen and fresh) is a “massive category”. In 2020, it was a $20 billion industry. The CEO is convinced that there is an opportunity for Barstool to take a slice of this pie, based on the loyalty of Barstool fans to the brand and to founder Dave Portnoy.
But switching to frozen pizza is by no means a sure thing. The category is difficult. It is highly competitive (both among market players and for shelf space) and margins are slim.
The frozen pizza category is very concentrated and DiGiorno is currently the big fish. But with a loyal following and a slew of distribution platforms, Neuman said he could imagine the digital media company taking a slice of the market. “The calculations add up,” he said. “Barstool has a whole media empire behind them, with ancillary programming and influencers with massive social media followers.”
As ridiculous as it may sound, the One Bite franchise has become synonymous with quality pizza. My two local hangouts tout Portnoy’s ratings outside of their respective establishments (one is an 8.9, the other is an 8.8). So the company should be able to convince people to buy One Bite frozen pizza once. The question is whether the quality of the product will be good enough for them to buy it again.
Happi Foodi, a New Jersey-based company, will be responsible for manufacturing the product to Barstool’s specifications, and Nardini said the Barstool team “worked on the recipe.” The company lined up One Bite samples alongside slices from some of New York’s top pizzerias at their recent launch. For the record, Portnoy reportedly gave the pizza a 10 (we remain skeptical that the frozen pizza could get a perfect rating).
One Bite isn’t Barstool’s first foray into the consumables business. The company launched Pink Whitney Vodka (in conjunction with New Amsterdam Vodka) two years ago after an ad read on the Spittin Chiclets podcast turned a mix of vodka and pink lemonade into a viral sensation.
The company has also proven successful in marketing High Noon Fortified Seltzer Water to its audience. “We saw what we could do with High Noon,” Nardini said. “When we were driven by royalties and not just advertising engagement, we took this product to the stratosphere.”
(This story has been updated to clarify that pizza, not just frozen pizza, was a $20 billion industry in 2020, and to correct the name of Happi Foodi.)
