What’s Really Going On With Sydney Sweeney’s Viral Soap (And More)

How Sydney Sweeney, Alix Earle, and Trace’s Oats are rewriting the playbook — proving that niche, viral, and operator-led brands are winning big in 2025.

THE DROP

Insights, launches, and strategy from inside the creator economy.

NOTES FROM THE EDITOR

This week’s Drop is all about range — from A-list celebrity collabs to hyper-niche creator launches.

  • At the top of the funnel, Sydney Sweeney just partnered with Dr. Squatch to release a bar of soap “infused” with her bathwater — and no, it’s not a joke. It’s an absurd perfectly executed blend of internet absurdity and real CPG strategy.

  • Then there’s Alix Earle, who’s moved beyond just being an influencer and is now helping steer the direction of a fast-growing canned cocktail brand, SipMARGS.

  • And finally: Trace’s Oats. A creator who made oatmeal content on TikTok for years and just turned that into a real business — with strong product-market fit and a brand his audience actually wants.

Let’s break it down.

Feature: Sydney Sweeney x Dr. Squatch

Bathwater Soap That’s Actually Real — and Selling Fast

Sydney Sweeney has officially entered her CPG era — with bar soap.

If you’ve been anywhere on the internet, you’ve probably seen it: last week, she partnered with Dr. Squatch to launch Sydney’s Suds: Bathwater Bliss — a forest-scented soap bar that (literally) contains trace amounts of water from one of her actual baths. It was her idea — a tongue-in-cheek response to the original viral ad she starred in for Dr. Squatch that featured her in a bubble bath. Fans joked about buying her bathwater. Now, they actually can.

Only 5,000 bars were made. Each costs $8 and comes with a certificate of authenticity. The scent is heavy on pine, moss, and fir — and the campaign is heavy on internet self-awareness.

This product was absurd — but it worked. In just seconds, Sydney sold all 5,000 bars. And is set to change the way CPG brands are marketed… Forever.

Why this works:

  • It flips the “celebrity brand collab” formula with something playful, weird, and viral by design.

  • It appeals directly to Dr. Squatch’s core (male) audience, but brings cultural buzz along with it.

  • It blends novelty with real product integrity — it’s still a natural, exfoliating soap at the end of the day.

📌 Major Takeaway:
Celebrity x CPG still works — but in 2025, it needs a creative twist. Sydney’s Suds is a masterclass in meme-powered marketing that aligns with audience behavior and sells product. It’s a reminder that bold storytelling + good product = sellout.

Growth Story: Alix Earle x SipMARGS

From GRWMs to CPG Operator — Here's Alix Earle’s Margarita Playbook

Alix Earle isn’t just riding the algorithm. She’s riding her way into the beverage aisle.

In March, she officially joined SipMARGS, a canned sparkling margarita company, as both investor and strategic partner. Together, they relaunched the brand with five clean-label flavors: Classic, Spicy, Mango, Coconut, and Mezcal. Each can packs 5% ABV, 130 calories, 6g sugar, and no artificial nonsense — just real tequila from Jalisco, cane sugar, and juice.

You can now find SipMARGS in stores across New York, Florida, Michigan, New Jersey, Connecticut, Massachusetts, and Virginia — or buy direct online and via Gopuff.

Alix isn’t just promoting — she’s influencing brand strategy, product selection, and positioning.

Why this works:

  • It’s a natural fit for her content, lifestyle, and fan base.

  • The product is shelf-ready and competes on quality, not just clout.

  • She brings both audience trust and business instincts to the table.

📌 Major Takeaway:
When mega-creators adopt a CEO mindset, they don’t just monetize — they multiply. Alix Earle is showing that creators can evolve into multi-venture operators, especially when the brand truly aligns with their voice and audience habits.

Builder Highlight: Trace’s Oats

How Oatmeal Became a Brand — and a Business

Trace Alexander turned oatmeal into a content category. Now it’s a company.

After growing a TikTok following of over 2.4 million by sharing creative oatmeal recipes and wellness tips, Trace launched Trace’s Oats: a direct-to-consumer overnight oat brand with real traction. His core products offer 15g of protein per serving, 0g added sugar, and gluten-free ingredients — available in flavors like Brownie Batter, Strawberry Milk, and Maple Vanilla Walnut.

The oats are sustainably sourced from Northern Alberta and available online through subscriptions and one-time purchases.

What started as niche meal-prep content has become a scalable brand with real audience buy-in.

Why this works:

  • His audience already saw him as the oatmeal guy — this product just made it official.

  • The brand fills a real functional need with a clean, daily-use product.

  • It’s not built on hype — it’s built on routine.

📌 Major Takeaway:
You don’t need 10 million followers to build a real brand. You need product–audience fit. Trace’s Oats is proof that niche creators, when focused and intentional, can turn content into commerce — and own the result.

FROM DONAVELLI

Whether you’re selling soap, seltzers, or oats — the formula is the same: build a brand your audience actually wants.

The Drop is here to spotlight who’s doing it best.

See you next week,
The Donavelli Team