Latest / Influencer Marketing with Fexingo: Creators, Sponsorships, and Modern Endorsement Deals / Why Influencers Are Buying Their Own Factories
Transcript
- Lucas: So last month, Emma Chamberlain posted a behind the scenes look at her new coffee roasting facility in Los Angeles. It's not a rented space with co-packers — it's her own operation, with industrial grinders and a packaging line branded in her signature retro palette. Luna: I saw that. She literally walked through the roasting floor with a hard hat on. It felt more 'factory owner' than 'influencer.' Lucas: Right. And it's part of a broader pattern we've been tracking. A growing number of top-tier influencers are moving beyond licensing their name to products — they're actually buying the means of production. Factories, co-packing facilities, even raw material sourcing. Luna: So instead of just getting a royalty check, they own the whole supply chain? That's a massive leap in capital and risk. Lucas: It is. But the economics are shifting in their favor. Let's use Emma's numbers. Her coffee brand, Chamberlain Coffee, launched in 2020 as a direct to consumer line roasted by a third-party facility in Portland. She was paying about 40 percent markup on green beans and maybe 30 percent on roasting and packaging. By bringing it in-house, she's consolidating those margins into her own P&L. Luna: What's the rough cost of a facility like that? Lucas: For a mid-size roasting operation, you're looking at two to three million dollars for equipment, leasehold improvements, and inventory. Emma's facility reportedly cost around $2.5 million. She recouped that in about 18 months based on her sales volume. Now she's running at roughly 60 percent gross margin versus 40 percent before. Luna: So essentially she doubled her margin per bag of coffee. But that's only viable if you're moving serious volume. Lucas: Exactly. And she is — Chamberlain Coffee did about $30 million in revenue last year. But the interesting thing is, this isn't just a consumer goods play. It's also a content play. The factory itself becomes a set. She's filmed multiple YouTube videos there, and those videos get millions of views, which in turn drive more sales. The factory is a marketing asset as much as a production asset. Luna: That's a smart feedback loop. But Emma's at the top of the creator pyramid. What about someone like a mid-tier beauty influencer with maybe 500,000 followers? Could they ever afford a factory? Lucas: Not a full factory. But there's a newer model — fractional ownership. A group of influencers in the same category pool capital to buy a shared facility. I know of a collective of six skincare creators who jointly purchased a small cosmetic manufacturing plant in New Jersey. Each contributed about $400,000. They share production time and split overhead. Luna: So it's like a co-working space, but for manufacturing. That's clever. But who manages it? You can't have six creators arguing over batch scheduling. Lucas: They hired a full-time plant manager — that's part of the shared expense. And they formed an LLC with clear usage rights. It's early, but the model is spreading. There's even a startup called MakerShare that's trying to facilitate these shared factory deals for creators. Luna: Let's talk about another big name: MrBeast. He's obviously not doing coffee, but Feastables chocolate bars. Has he bought his own factory? Lucas: He did, actually. Feastables originally contracted with a co-packer in Pennsylvania. But by mid-2025, MrBeast's team had acquired a chocolate plant in Chicago that was previously owned by a legacy candy company. They spent about $5 million on the acquisition and retrofit. Luna: Five million is a lot, but for MrBeast, that's probably a rounding error on his revenue. What did they gain? Lucas: Control over formulation and speed. They can now turn a new flavor idea into a finished bar in three weeks instead of three months. And margins again — they went from paying a 25 percent co-packing fee to roughly 8 percent direct cost. Plus, they can sell directly to retailers without a middleman. The plant runs 24/7 and produces about 40 million bars a year. Luna: That's industrial scale. But it also means they're now in the chocolate business, not just the influencer business. If demand drops, they're stuck with a factory. Lucas: That's the risk. And it's why most influencers haven't done this. But the ones who do are essentially transforming themselves into vertically integrated CPG companies. They're not just faces on a package — they're manufacturers. And that changes the valuation story if they ever want to sell. A brand with its own factory is worth more than a brand that licenses its name. Luna: Let's pivot to a different kind of creator — virtual influencers. Lil Miquela, for example. She's CGI, so does she even have a 'factory'? Lucas: She does, in a way. Brud, the studio behind Miquela, recently bought a small 3D printing and apparel production facility in downtown LA. They use it to produce limited-edition Miquela-branded streetwear. It's not a chocolate plant, but it's the same principle: instead of paying a third-party manufacturer, they do it in-house. And because Miquela can 'wear' any design instantly, they can test concepts in virtual posts before committing to physical production. Luna: So the factory becomes a way to monetize the virtual audience with real products. That's a smart bridge between digital and physical. Lucas: Exactly. And it's not just apparel. Some gamers are doing this too. There's a Fortnite streamer who bought a small factory to produce custom gaming peripherals — keyboards, mice — branded with his logo. He used to order from Chinese OEMs with a 6-week lead time. Now he can produce in 10 days and customize on the fly. Luna: That's a huge competitive advantage in a market where trends shift weekly. But I have to ask: are these moves sustainable? Or are influencers overextending? Lucas: It depends on the creator's business maturity. The ones who succeed treat it like a real business — they hire experienced operations people, not just friends. The ones who fail are usually those who think owning a factory is just a status symbol. I've seen a few cases where influencers bought machinery without understanding maintenance costs, and ended up selling at a loss. Luna: So it's not for everyone. But for the top tier, it seems like a logical next step in the creator economy's evolution. You start with content, then merchandise, then your own factory. Lucas: Right. And I think we'll see more of this, especially as the cost of small-scale manufacturing equipment drops. 3D printing and modular production lines are getting cheaper. In five years, an influencer with a million followers might be able to own a micro-factory for under $500,000. Luna: That could change the entire landscape of influencer-brand partnerships. Instead of licensing deals, we might see more joint ventures where the influencer brings production capacity to the table. Lucas: Exactly. And speaking of table — if these conversations have sparked ideas you've actually used in your own work or business, we just wanted to mention that listener support is what keeps this show ad-free and independent. If you're interested, you can find us at buy me a coffee dot com slash fexingo. Luna: Yeah, it's a small way to help us keep digging into these stories. No pressure at all. Lucas: Alright, back to the factory trend. Another angle I want to explore is the environmental and ethical dimension. When influencers own their factories, they can also control sustainability practices — something that's increasingly important to their audiences. Luna: That's a good point. Emma Chamberlain, for instance, has talked about using compostable packaging and sourcing fair-trade beans. But when you're working with a third-party co-packer, you often don't have visibility into their practices. Lucas: Exactly. By owning the facility, she can guarantee those claims. And that builds trust. Similarly, the skincare collective I mentioned uses only clean ingredients and has full traceability. That's a selling point that smaller brands can't easily replicate. Luna: So the factory isn't just about margins — it's also about brand integrity. That's a powerful combination. Lucas: It is. And I think we'll see this trend accelerate as more creators realize that control over production is control over their narrative. The ones who do it well will set the standard for the next wave of creator entrepreneurship. Luna: I'm curious to see if we'll ever see an influencer-owned factory that produces products for other influencers — like a white-label service. Lucas: That's already happening, actually. There's a YouTuber who built a small apparel factory in Vietnam and now manufactures for five other creators. He charges per unit but keeps his own brand as a separate line. It's a hybrid model. Luna: So the influencer becomes a B2B supplier. That's a whole new revenue stream. Lucas: Exactly. And it blurs the line between creator and manufacturer even further. The factory is no longer just a cost center — it's a profit center that also generates content and credibility. Luna: Interesting. Well, I think we've only scratched the surface here. Thanks, Lucas. Lucas: Thanks, Luna. And thanks to our listeners. Until next time.