In the latest episode of The Marketing Factor, I sat down with Peter Kang, co-founder and chairman of Barrel Holdings, who has built a portfolio of agencies that has redefined what strategic growth looks like.
In our conversation, Peter revealed how intentional positioning and systematic thinking have shaped his approach to building and scaling multiple successful agencies.
As someone who's followed Peter's weekly newsletter and insights for years, I was particularly interested in understanding how his methodical approach to agency specialization could benefit brands looking to partner with agencies. His journey offers valuable lessons for both agency leaders and brands seeking the right partnership.
One of the most striking aspects of our conversation was Barrel's evolution from a generalist agency to a specialized CPG-focused powerhouse. "We started off kind of being anything to anyone," Peter shared. "We would do branding, web design development - if somebody needed us to run a job fair for them, we'd do all the exhibit stuff and put on a suit and stand at the tables for them."
This resonated deeply with me, as Cobble Hill has undergone a similar transformation. Peter's experience validates what we've seen: true specialization isn't just about describing your current client roster - it's about developing deep expertise. This expertise can be both in a specific industry and offering. Peter and I agree that positioning as a specialist helps you attract the right clients and build out better systems to serve them.
Peter's approach to growing Barrel Holdings demonstrates a sophisticated understanding of market opportunities. Rather than trying to serve every client under one brand, he created distinct agencies with clear specializations:
"We noticed aspects of our client roster just got a little bit unwieldy," Peter explained. "We had a bunch of WordPress clients that we were doing support and maintenance for. And then there were even some Shopify clients that were like - we're moving a little bit more up market."
This strategic segmentation allowed each agency to focus on its core strengths while maintaining high service standards. For brands, this means working with teams that truly understand their specific needs rather than generalists trying to be everything to everyone.
What struck me most about our conversation was Peter's ability to turn abstract principles into concrete action through what he calls "pillars of beliefs" - timeless fundamentals that guide decision-making regardless of market shifts.
"You can get really overwhelmed with content and have this recency bias about everything," Peter shared. "The last thing you read is what shapes how you think about things." Instead of chasing every new business theory, he filters information through established principles, asking how new ideas either support or challenge his core understanding.
This maturity extends to how Barrel Holdings evaluates opportunities. When facing challenges, Peter emphasizes perspective: "Whenever there's a situation, it's always about taking a step back and trying to understand it from a higher perspective. What are we actually trying to do? What does the client really want? What's the win-win situation?" It's a refreshing departure from the reactive decision-making I often see in our industry, reminding us that growth isn't about constant motion, but about thoughtful, principles-based progress.
Peter's perspective on AI and agency services cuts through the typical hype to focus on practical value. While many agencies rush to showcase AI capabilities, Barrel Holdings approaches it as another tool in their systematic growth strategy.
"It's been more beneficial probably on the content side of things," Peter explained, particularly for transforming client deliverables. His agencies are integrating AI thoughtfully across their workflow - from using it to enhance design mock-ups to leveraging it for recruitment and project evaluations. But what caught my attention was his candid acknowledgment of the market reality: "Clients know that it's easier to create these things and they're not going to want to pay that much."
This observation points to a broader shift in the agency landscape. As technology makes certain tasks more efficient, the real value proposition is shifting toward strategic thinking and specialized expertise. It's no longer about whether an agency uses AI, but how they apply it to solve specific business challenges. In Barrel's case, they're using it to augment their specialized CPG expertise rather than replace it.
The conversation reinforced my belief that the future belongs to agencies that can maintain deep expertise while embracing technological evolution. It's not about having the latest tools - it's about knowing exactly when and how to deploy them for maximum client impact.