This Creator-Backed Startup Went From Social To Walmart In Record Time

Forbes

8 hours ago

FaZe Rug and 1UP 1UP
The rise of creator-led brands is reshaping how consumer goods reach market. From beauty to beverages, creators are stepping into operational roles, and the candy aisle is no exception. 1UP Candy, co-founded with YouTube creator FaZe Rug, scaled from idea to shelves at Walmart in just four months, offering a window into how digital influence can drive fast-paced brand launches. The Gen Z-focused, creator-led candy company has managed what many CPG startups can only dream of: going from idea to Walmart shelves nationwide in just four months.
The story begins with a challenge. "We started with kind of a test and learn approach," said Michael Schenker in an interview, one of the co-founders behind 1UP. "We developed what we termed as our sour gummy challenge... and what came out of that was something we didn't expect, which was just organically driving over a billion impressions on TikTok."
That viral success caught the attention of retail giant Walmart. But behind the scenes, things were less polished. "At that time, we honestly did not have a supply chain. We did not have products," Schenker said in the same interview. "And in a matter of three or four months we figured it out. "
A key part of 1UP's strategy was enlisting FaZe Rug, one of Gen Z's most trusted voices, as a co-founder. Rug, whose real name is Brian Awadis, is a massively popular YouTube creator and founding member of FaZe Clan. With over 30 million followers across platforms and a reputation for family-friendly, high-engagement content, he represents the archetype of an authentic digital influencer.
"We knew based on a relationship we had with FaZe Clan that FaZe Rug had an affinity for the category," explained Chris Koch in an interview, another co-founder. "He had talked about it organically and authentically across his platforms for years... and he was hitting the demo on the head in terms of Gen Z and Gen A."
Rug was deeply invovled, from flavor ideation to buyer meetings. "From day one... he was very involved in some of those flavor profiles," said Schenker. "What you'll see is that he authentically integrates this into his content. It's not forced." What Makes a Creator a Co-Founder
According to a 2025 NIQ report, Gen Z consumers are increasingly drawn to products that resonate with their lifestyle values and are promoted through authentic channels, especially on social platforms. This shift makes creator alignment a strategic imperative for brands aiming to grow in this demographic.
This authenticity is central to how 1UP thinks about creator partnerships. Koch shared their criteria: "There has to be alignment in terms of consumer profile... and then we need to meet that person... to see firsthand what kind of buy-in and appetite really looks like."
Engagement metrics, not just follower counts, matter. "Unless their engagement and ability to convert is extremely high, we care less about the follower size and more about their ability to drive traffic," Koch said. "Follower count is nice, but conversion is everything."
In addition to FaZe Rug, the playbook is being written by others. Logan Paul and KSI co-founded Prime, which became a beverage behemoth. Emma Chamberlain's Chamberlain Coffee is a standout in the coffee space. Mark Rober's CrunchLabs subscription box marries content and product seamlessly, while MrBeast's Feastables proves that large creator followings can translate into snack aisle dominance when backed by strong product and business infrastructure.
These examples highlight how creators are moving beyond endorsement deals into meaningful ownership and operational roles. Forbes How Creators Are Building 7-Figure Products, Without Millions Of Views By Ian Shepherd The Business Model: Equity and Royalties
There are several business models in the creator economy. Some creators take cash deals to endorse a brand. Others receive affiliate revenue or short-term campaign fees. At the more serious end of the spectrum, creators become equity stakeholders, co-founders, or even full operators of new ventures. The approach depends on the level of creator involvement and long-term vision.
The 1UP team leans toward the more committed end of the spectrum. "We incentivize talent through a talent equity pool... as well as a royalty," said Koch. "That way, talent aren't just betting on a future outcome that might never happen."
This dual structure, equity for long-term upside, royalties for short-term participation, ensures creators stay financially aligned while also seeing immediate rewards. It's a model designed to turn influencers into true entrepreneurial partners, rather than transient brand ambassadors. While this approach may not fit every creator-brand collaboration, it's especially potent in categories that require deep creator involvement, product iteration, and long-term storytelling. Scaling at Speed: The Walmart Breakthrough
While many creator-led brands have fizzled after early hype, 1UP is thinking long-term. "Start with the consumer problem and the product," said Schenker. "If you do that well, then the celebrity is just the hack and the accelerator."
Their pitch to Walmart happened before they had a product or supply chain in place. "We were really confident in our ability to do all that," Schenker said. "And so in a matter of three or four months we figured it out."
The result was 1UP landing shelf space in one of the world's biggest retailers in record time. Forbes How Top Creators Outsmart The Algorithm By Ian Shepherd Product Innovation and Expansion
From launching freeze-dried sour strips to expanding into Circle K with sour chews, 1UP continues to innovate. Their product playbook involves analyzing trends and listening to the consumer. "Freeze-dried was on fire," said Schenker. "Sour Strips were on fire for Gen Z, Gen A, and no one had done it."
Their next move? Mexican-inspired gummies and a growing pipeline of protein-based products. "We're really interested in protein right now," said Koch. "We'll be bringing two different concepts to market focused within that category." Retail Meets DTC: The Channel Strategy
While 95% of candy purchases happen at retail, 1UP sees DTC as a key lever for testing and limited drops. "We see a lot of opportunity DTC to launch new products, do limited drops, get consumer feedback," said Schenker. "But ultimately, everything's got to lead back to retail." Lessons from Other Creator-Led Brands
Schenker and Koch admire other successful creator ventures, including Prime by Logan Paul and KSI, and Joyride by Ryan Trahan. "Ryan is the type of person that's clearly putting in the work and invested in the brand," Schenker said. "And Rhode with Hailey Bieber made a lot of sense."
The consistent theme? The creator must go all in. "It has to be a consumer product that solves the problem and it has to be a talent that is actually putting in 100% of their life into the brand," said Schenker. Scaling Without Sacrificing Creative Vision
One of the consistent challenges in creator-led businesses is balancing rapid growth with authenticity and product quality. Saurabh Shah, CEO of Warren James, a company that builds product lines for creators like Hasan Piker and Brittany Broski, emphasizes this tension.
'We're professionals in diversifying a creator's revenue,' Shah said. 'But we go far beyond screen printing and t-shirts, we've done plush toys, food and beverage, comics. Each one is deeply tied to the creator's IP and built to last, not just ride a trend.' Forbes The Secret Strategies Behind the Creator Economy's Best-Selling Products By Ian Shepherd The Future of Creator-Led Brands
What does the future look like for creator-led businesses? Koch believes the trend is far from over. "Consumers are actively looking for connections, personal connections to brands, through people of influence," he said.
He also predicts a shift away from oversaturated categories like spirits and beauty. 'We're always looking for what we would call the less sexy categories that are in need of the right talent backing.' Key Takeaways for Brands Exploring Creator Partnerships Start with a real consumer problem: Don't chase trends. Identify a gap in the market and build your product to solve it. Choose creators with authentic interest: Look for talent who already engage with your product category, not just big follower counts. Engagement over vanity metrics: A smaller audience with high conversion is more valuable than millions of passive followers. Structure for success: Offer creators both equity and short-term incentives like royalties to ensure full commitment. Build the business beyond the creator: The product must stand on its own. Celebrity should accelerate, not substitute, strong fundamentals. Use DTC as a test lab: Run limited drops to gauge demand, refine offerings and create buzz before scaling to retail. Think beyond saturated markets: The biggest wins may come from less obvious categories where innovation is overdue.
By applying these principles, brands can go beyond influencer marketing and build enduring creator-led companies.
This article is based on an interview from my podcast, The Business of Creators .