The Power of Brands That Generate Their Own Momentum
The consumer market has transformed. Gone are the days when brick-and-mortar brands with massive, one-way ad spends dominated. Today’s omnichannel world enables ecommerce brands to sell 24/7, delivering directly to consumers with a click.
This shift has lowered barriers to entry, flooding the market with options. Consumers now have endless choices but are also bombarded with messages from every direction. While this creates opportunities, it makes it harder for brands to stand out and build lasting relationships.
At Newcastle, we invest in growth-stage consumer businesses. But how do we identify brands with true staying power? Put simply: consumer passion and loyalty.
A single transaction doesn’t build a great company—repeat purchases and brand advocacy do. Customers expect more—authenticity, quality, and an emotional connection that keeps them coming back.
The key question: Do customers genuinely love the brand?
Understanding loyalty goes beyond financial performance. Through proprietary tools and hands-on evaluation, we assess brand engagement, purchase behavior, and long-term market potential. In a crowded, fast-moving market, finding brands with lasting impact requires a structured, data-driven approach.
That’s where our Consumer Investment Engine kicks in.
Our Data Science Battery: Growth Analysis
Our process begins with a deep dive into a brand’s existing customer base—because data is the foundation of our evaluation. Early on, we directly access the performance data of qualified prospects, analyzing their business from the inside out.
Our proprietary tools integrate directly with e-commerce, social media, and marketing platforms, providing a granular view of key metrics—spending behavior, repeat purchases, social sentiment, brand perception, market penetration, and direct customer feedback.
By benchmarking these insights against industry standards, we uncover growth opportunities and potential risks early in the diligence process. We share these findings with prospective management teams, both to deliver immediate value and to establish our trustworthiness as a strategic partner–we want to be in this together.
Product & Innovation Lab: Commercial Potential
A brand is only as strong as the experience it delivers. That’s why we go beyond the numbers to deeply assess a company’s products and services.
Understanding competitive advantage requires firsthand testing and expert evaluation.
Buying and testing the product ourselves to experience the full consumer journey.
Tapping into our extended Collaborator Network for diverse expert insights.
Assessing the brand’s intellectual property (IP) and its defensibility.
Evaluating product development pipelines for future growth potential.
By combining technical analysis with real-world testing, we invest in brands that not only resonate with consumers but also offer defensible innovation.
Market Insights & Creator Council: Market Opportunity
Success depends on reaching the right audience. Our proprietary consumer research delivers fast feedback loops, tracking evolving preferences in real time.
We also collaborate with social media experts and influencers to test marketing strategies and assess brand positioning within niche communities. By working with content creators and trendsetters, we gain direct insights into brand perception—and how to strengthen audience engagement.
Consumer Investment Engine in Action: Kizik Case Study
Kizik, a Newcastle portfolio company, exemplifies how our methodology drives real-world success. As pioneers of hands-free slip-on shoes, they showcase the power of innovation and consumer appeal. Our evaluation process included:
Collaborators’ Counsel: Engaged subject-matter experts to examine Kizik’s design, development, operations, go-to-market strategy, and partnership with Nike.
IP Deep Dive: Worked with innovation, design, and legal teams to assess the breadth, depth, and defensibility of Kizik’s patented technology.
Buying & Trying: The Newcastle team purchased and wore 12 pairs of Kiziks daily throughout the diligence process, experiencing the full consumer journey—shopping, buying, wearing, testing, and returns.
Innovation Process Audit: Conducted a deep analysis of Kizik’s product development pipeline, benchmarking against best-in-class innovation and test-and-learn methodologies.
Through this rigorous process, we validated Kizik’s category-defining potential, reinforcing our commitment to investing in companies with strong foundational growth.
Built to Last: Backing Brands That Endure
Loyalty is the foundation of enduring brands. In a market flooded with choices, the brands that thrive aren’t just the ones with strong sales today—but the ones that create lasting connections with consumers. Passionate customers, repeat purchases, and advocacy separate short-term trends from long-term category leaders—and smart investments.
That’s why our Consumer Investment Engine is built to uncover brands with both emotional connection and lasting potential. By combining deep data analysis, firsthand product testing, and real-time consumer insights, we go beyond traditional investment metrics to identify companies with staying power. We don’t just invest in financial performance—we invest in brands that excite customers, cultivate loyalty, and set new industry standards.
At Newcastle, we back brands that set trends, not follow them, by investing in brands customers truly love.
Kevin McCafferty,
Partner
Kevin has over 20 years of experience as an investor, operator, and entrepreneur. View profile.
