Dive Brief:

• Adding to its portfolio of direct-to-consumer companies, Solo Brands on Thursday announced it acquired TerraFlame for an undisclosed amount.
• TerraFlame’s team will become a part of Solo Brands, including CEO Lenny Vainberg, who will transition to the role of TerraFlame general manager, according to a company press release emailed to Retail Dive.
• TerraFlame sells a range of products, including fire pits, fire bowls and an indoor portable s’mores roaster.

Dive Insight:

The acquisition of TerraFlame helps Solo Brands to continue to build out its family of brands.

“This strategic acquisition complements our brands, and alongside Solo Stove, allows us to seamlessly offer our customers the fire burning experience outdoors, and with the addition of TerraFlame, we’re thrilled to bring the fire inside,” Solo Brands CEO John Merris said in a statement. “We hope to leverage our direct to consumer and wholesale expertise to support TerraFlame’s growth while also leaning into TerraFlame’s shared passion for product innovation and incredible products to elevate the Solo Brands customer experience.” 

TerraFlame not only sells on its own website, but also through retailers like Target, Pottery Barn, Williams Sonoma and Crate & Barrel. This builds on Solo Brands’ existing wholesale partners, which include Costco, Dick’s Sporting Goods, Ace Hardware, Academy Sports + Outdoors, Scheel’s and more.

The acquisition also follows a year of growth for Solo Brands.

The company — which also owns Solo Stove, Chubbies, Oru Kayak and Isle — launched 15 new products in 2022, including the Solo Stove table top fire pit and the Mesa and Pi pizza oven.

Solo Brands joined a wave of other DTC companies that filed for IPOs in 2021, which also included Allbirds, Olaplex and The Honest Co. That same year, Solo Brands acquired Chubbies, Oru Kayak and Isle.

While the companies within Solo Brands’ portfolio started out selling direct-to-consumer, the company has been leaning on wholesale more recently. In the first quarter, the company reported net sales increased 7.3% year over year to $88.2 million, with wholesale revenue increasing 52.3% to $33.5 million and DTC revenue declining 9.1% to $54.8 million.

“Our DTC heritage allows for us to have strong engagement with our customers. We are finding that there are great ways to build direct connections with our customers in the wholesale channel as well,” Merris said on a call with analysts last week discussing Q1 results. “The strongest brands are those that are able to maintain and build upon their connection with their customers by providing a fluid experience and presentation with both the direct and wholesale channels.”