BevNET Live Returns to NYC, NOSH Live Summer’s Back Summer Fancy Food Recap

BevNET Live Summer 2022

BevNET Live Summer 2022 returned to New York City in June for the first time in three years at a “precipitous time,” according to Jeff Klineman, BevNET Editor-in-Chief, during his opening remarks. Beverage industry leaders and professionals convened eagerly for the two-day industry conference, which opened with a state-of-the-industry discussion featuring insights from retailers, brands, investors and distributors.

While the pandemic may be waning, brands remain vulnerable to looming disruptions, the panelists cautioned, including an uncertain economic climate and continued unexpected supply chain disruptions. In the midst of the chaos, there was an aura of positivity, however. Despite the existential threats ahead panelists and presenters spread sentiments of “we are all in this together” in a variety of ways throughout the event.

The audience heard from a number of founders and CEOs, including Orgain’s Dr. Andrew Abraham, who said he built the organic nutrition shake brand by focusing on heart over ego. Sharing the story that led to the brand’s creation, Abraham said a childhood battle with cancer sparked an unerring drive to know more and do better, leading him to devour books on nutritional science and how quality ingredients impact the body’s recovery from disease.

As the brand grew and Orgain took on the nutrition category, Abraham fought to maintain focus on its original mission. That mission has also been shaped by the way he operates as a leader, through an approach that encourages feedback on the brand’s performance from team members at all levels of operations. By establishing an open door policy and holding monthly town halls, Abraham said he has created a work environment in which employees are free to voice their concerns about the company and ways it can improve.

Following Abraham, David Klavsons – who in 2017 took the helm at Milwaukee-based King Juice, the parent company of lemonade brand Calypso – talked about how when he assumed the role, the brand was in disarray. “We didn’t even have sales reports, we didn’t even know where this stuff was being sold,” he said. But within the past four years, Klavsons and his team have executed a turnaround, putting Calypso on an upward trajectory and claiming the spot of the top-selling single-serve lemonade brand. Although he’s structured the company’s long term growth with sustainable, actionable goals and mapped out a clear direction on what Calypso can become, Klavsons said the work is not over.

Kathy Galloway, founder of kgalloway consulting, meanwhile, said that “purpose” is a company’s reason for being beyond financial success and said that every founder should strive to infuse a draft of their mission, purpose and vision into the brand upon its creation. She recommended starting with defining its “why” and using that as its north star.

On day two of the show, Liquid Death VP of marketing Dan Murphy took the stage to break down how the complicated world of web3, blockchain and NFTs has been used to market the company’s products.

The canned mountain water brand has gone all-in on what Murphy called “the most revolutionary tech out there” by selling NFTs through its Murder Head Death Club platform, leveraging its direct link to the brand’s community through Discord channels and turning Gen Z consumers into “superfans” by creating a lifestyle brand for the web3 community. “We don’t talk about users or customers,” he said. “It’s people, fans…we don’t make ads, we make content because people don’t like ads.”

Romitha Mally, founder of CPG consultancy firm Mally Collective, advised early-stage entrepreneurs to think critically about their brand’s story in order to gain leverage within a crowded beverage field. Mally sat down with Klineman to discuss how companies should prepare for new investment opportunities. For Mally, the most important thing is a bold vision that can be easily transmissible to potential investors.

Mally remembered Bai Brands founder Ben Weiss touring her through his “Willy Wonka’s Chocolate Factory” in the company’s early days and being impressed with the ethos that he wanted to inject into the brand. Successful entrepreneurs are able to anticipate the challenges before they happen, Mally said, a salient point considering the current uncertainty in the market.

What was conceived as a rare sitdown interview with Bang Energy boss Jack Owoc turned into a walking and talking interview as the founder and CEO of VPX Brands refused to physically sit down for a discussion with Klineman, declaring “I have too much energy, I am energy.” He instead opted to stand and pace on the stage while dismissing “haters” and “negativity,” as well as encouraging beverage entrepreneurs to stay true to their core principles and to avoid the mistake of chasing overnight success.

Owoc also urged the crowd to stand up and “bring the Bang” by joining him in downing an energy shot before discussing topics ranging from the brand’s $5 billion in sales in the last three years to product and ingredient innovation – amidst many asides aimed at his competitors, singling out his frequent courtroom sparring partner, Monster Energy CEO and chairman Rodney Sacks, as “the most litigious man in America.”

The Bang CEO’s presentation came a week before the company announced it had officially terminated its ill-fated distribution pact with PepsiCo, signed in 2020. On stage, Owoc stopped short of saying he regretted the deal and called it a learning experience. At one point, Klineman asked Owoc if he has trouble working with bigger distributors.

“He’s implying that I can’t get along with others,” Owoc responded. “There’s some truth to that.”

Owoc called the recent arbitrator’s ruling in the case between VPX and Monster Energy and Orange Bang “a false ruling by a rogue arbitrator who has no background in science.” The ruling would award $175 million in damages plus a 5% royalty on all future sales of Bang-branded products to Orange Bang and Monster Energy over a trademark infringement originally filed in 2009.

Owoc advised young entrepreneurs to not grow too fast and to use “discipline, effort, sacrifice and study to beat people like me” in the beverage category.

NOSH Live Summer 2022

During the opening day of NOSH Live Summer 2022, held June 14-15 in New York City, John Lowe, CEO of Jeni’s Splendid Ice Creams, announced he will step down from the role after 13 years. Lowe told the audience at the top of his presentation that he has instructed Jeni’s board of directors to begin searching for a replacement CEO and he will remain in the position until a replacement is found. Lowe will keep his board seat.

During a discussion with NOSH editor Carol Ortenberg, Lowe simply said that he is “anxious to scratch other itches” but did not elaborate on his future career plans. While he reiterated that the time is right for the company and himself to move on, he admitted it is a bittersweet decision, adding that he “got quite verklempt” while informing the Jeni’s team last week.

The announcement cast a nostalgic tone over the rest of Lowe’s presentation, in which he detailed Jeni’s rise from a small Ohio scoop shop to a nationally distributed brand. He broke down his time with the company into five acts, including founder Jeni Britton Bauer’s opening the first store in 2002, his first several years as CEO and the challenges of generating profit, the decision to undergo a devastating recall of all products after a listeria outbreak, the company’s resurgence and rise to a national brand, and finally the current pandemic era, during which Jeni’s has opened 15 new brick-and-mortar stores while expanding direct-to-consumer and retail.

In particular, Lowe spoke to the importance of cultivating a passionate team by collaborating with employees and embracing creative decisions – even when they stood to be financial risks for the business.

Later in the day, news broke that better-for-you cereal maker Magic Spoon had raised an $85 million capital round and after three years as an ecommerce-focused business, the brand will launch in over 1,350 Target stores nationwide. Hours after the announcement, Magic Spoon co-founder and co-CEO Gabi Lewis took the stage to discuss his entrepreneurial journey, from the founding of cricket-based protein bar company Exo to the new opportunities in the market he saw by creating a disruptive, ketofriendly cereal brand.

The most significant differences between starting Exo and Magic Spoon were education and supply chain, Lewis said. He noted that Exo was an audacious project where success depended on his and his co-founder’s ability to convince consumers to eat food made from insects. By being a first mover in that category, Lewis also had to build out a supply chain from scratch. For his second venture, however, Lewis said he decided to focus on a large, established category in need of disruption.

During the second day of the conference, Sweet Loren’s CEO and founder Loren Castle announced the better-for-you cookie dough brand will be launching a range of reduced sugar products in Publix next month.

Castle began her presentation by taking audience members on a journey through the history of Sweet Loren’s, which has grown from a frozen cookie dough sold at New York City farmer’s markets in 2011 to a multi-SKU brand of refrigerated cookie dough products available at more than 15,000 stores nationwide.

In 2017, the brand replaced the original product with a gluten-free, dairy free, nutfree plant-based portfolio to create a universal product that could be enjoyed by everyone. The release of the lower sugar line comes at a time when consumer shopping trends are seeking out products with low sugar content rather than alternative sweeteners. Sweet Loren’s Lower Sugar products will be available in Publix stores beginning in July and in Stop & Shop stores in August. Later in the day, Dan Epley, VP of Whole Foods Market’s Dry Grocery Team, and David Lafferty, Executive Leader of the Grocery Team, continuously stressed the importance of staying true to their ethos while discussing what it takes for a brand to land its product in the natural retailer’s stores.

Amid the global supply chain crisis and price hikes, Epley and Lafferty said that food makers must remain committed to sourcing quality ingredients. If brands don’t stand for quality, they are letting consumers down, according to Epley.

When considering brands for placements in its stores – whether they are in the early or late stage of development – Whole Foods Market examines sales, potential scalability and social media presence. Is the brand resonating with consumers? Is it creating authentic content? Can it grow regionally or nationally?

“Our quality standards team is looking at all of the different things that are coming out right now and looking very carefully into the science behind it,” said Lafferty. “A customer expects Whole Foods to really protect them and so we’re being very careful about anything we bring in.”

Additionally, throughout the two day conference, 11 food brands competed in NOSH’s Pitch Slam 12 with better for you brownie brand Ruani ultimately taking home the prize of bragging rights and a $10,000 industry awareness package.

Ruani emerged triumphant from a group of six finalists: allergy-friendly trail mix Absurd Snacks, cheese alternative Farmer Foodie Everything Cheeze, crunchy mushroom snacks Popadelics, protein-rich waffle sliders Start Right Foods and plant-based “dips for dinner” Niramaya Foods. Ruani’s brownies combine almond flour, avocado oil, organic pasture-raised eggs, and unrefined coconut sugar with the stress-relieving benefits of ashwagandha.

Summer Fancy Food Review

This June, the Specialty Food Association (SFA) Summer Fancy Food Show returned in-person to New York City for the fi rst time since 2019. While more limited in its scope, energy and total attendees than mega-shows like Natural Products Expo West, the event represents an important showcase for CPG brands looking to grow in the specialty food market, which is expected to rise to $185 billion in 2022, according to the SFA State of the Industry report.

Overall, there were plenty of new food and beverage brands showcasing packaging updates, bringing a wide range of global fl avors to the U.S. market and reaffi rming the momentum behind the alt-cocktail movement.

For Joe Tea, being fl exible during times of crisis allowed the brand to lower prices and expand the business. Moving its fl agship iced tea line to 18 oz. plastic bottles from 20 oz. glass came out of necessity during last year’s supply chain disruptions but has benefi ted the business’s growth.

“It was that or nothing,” founder and president Steven Prato cracked. “And our customers like it better than nothing.”

Since the switch, the New Jersey-based brand has grown from “one and a half” production facilities to fi ve manufacturing sites across the U.S. and Canada, including a Houston, Texas location which opened last year. Plastic has also allowed Joe Tea to sell at a lower price point, around $2 per bottle compared to $3 in glass. The company can also fi t about 1,000 extra cases on each truck thanks to the simpler packaging, Prato said.

Also on the fl oor, several startup beverage makers debuted rebrands as they aim to build momentum and re-establish themselves in retail after a diffi cult past two years.

Vermont-based Shrubbly introduced a new look for its cans ahead of a West Coast expansion in Erewhon stores. Shrubbly is an organic “Bubbly Superdrink” made with shrubs, apple cider vinegar and sparkling water and available in Lemon + Ginger + Aronia Berry and Pomegranate + Aronia Berry fl avors. Each 12 oz. can retails for $2.99 and the brand plans to launch two more fl avors this year. Shrubbly founder Matt Sayre said the rebrand will help establish Shrubbly as a “category defi ning brand for sparkling shrubs” by clarifying its healthy ingredients and benefi ts.

Massachusetts-based tea Waku also showcased new branding and a reformulated product line. Now positioned as a prebiotic herbal tea, co-founder and CEO Juan Giraldo said the brand has removed sugar from its recipe and moved to natural sweeteners stevia and monk fruit. The company also added 6 grams of prebiotic fi ber to better position Waku as a functional gut health product.

On the food side, one of the most notable shifts in post-pandemic consumer behavior has been the transition to more convenient meal making, without sacrifi cing unique and exciting fl avors. That shift was evident on the show fl oor with all arrows pointing toward the proliferation of Asian-inspired fl avors, primarily in the form of spice packs, sauces and meal kits.

Convenient product formats offer consumers a low risk, easy access solution for mealtime and, in some cases, even more use occasions, as is the goal with Indian-inspired spice pack brand SugarRoti. According to co-founder Bina Motiram, the packs can be used to easily test out unfamiliar herbs and spice blends with dinner, blend into a beverage, like with its Golden Milk Nu Spice product, or add to a baked good for additional depth of fl avor.

But use occasions aren’t the primary purpose behind the brand. Motiram founded the company on the ethos of sustainability, explaining she was frustrated by the ineffi ciencies of dried spice bottles that often went bad before they could be used during their optimal period of freshness. Motiram saw an opportunity in a convenient, pre-packed format; SugarRoti spices are available in fi fteen different “Nu Spice” varieties in fully compostable packages.

Homiah Foods, a brand that’s positioned itself as a Southeast Asian pantry, also sells fl avor packs – available in Singaporean Laksa, Indonesian Rendang and Malaysian Red Curry varieties – but with a broader regional focus. Launched in late 2021, the company is on the cusp of larger growth, according to founder and CEO Michelle Tew.

Tew looked to solve a similar pain point as SugarRoti, but noted that many of the spices she wished to incorporate in her sauce pouches were not even accessible in the U.S. This led her to spend multiple months in Malaysia, setting up her own fl avor supply chain, which then took an additional few months to make it stateside, due to global shipping constraints.

Also on the fl oor, the momentum behind mocktails was notably accelerating. With alcohol alternatives on the rise, canned mocktail makers are staying focused on growing distribution and introducing new options for consumers seeking out non-alcoholic solutions.

Laura Taylor, CEO of Mingle Mocktails, said the company is preparing to enter two major retailers – one liquor chain and one grocery chain – and has expanded its footprint to about 5,000 stores nationwide, including Whole Foods and Wegmans. Taylor said she hopes to also grow foodservice and hospitality accounts in the next two years as more bars and restaurants expand nonalcoholic beverage menus.

In retail, Mingle’s single-serve cans have outpaced sales of its multiserve bottles, she noted, and the company has expanded its sales, marketing, supply chain and operations teams to support its growth. Taylor has also advocated for retailers to establish sets in order to support the category and drive growth, and has worked with buyers such as Town & Country’s Dwight Richmond in creating alcohol alternative shelves.

“Something that I will be working on as I engage with retailers and buyers and distributors is ‘What does the data say?’” Taylor said. “Dwight proved out that when you create a non-all set people will purchase more because they know where to fi nd it and they see all that’s available. Whereas retailers who put a non-alc beer in one place and a non-alc cocktail in the mixer set, they’re not going to enjoy the turns because people don’t know where to fi nd it.”

Washington, D.C.-based startup Mocktail Club also showcased its portfolio of original non-alc creations that have the complexity of an adult beverage. Varieties include Manhattan Berry (blackberries, pear shrub, ginger), Havana Twist (lime, cucumber, mint, cardamom), Capri Spritz (pomegranate, cranberry shrub, lemongrass and hints of bitter) and Bombay Fire (pomegranate, chili, agave and infused tea). Each 12 oz. can retails for $3.99 to $4.50.

According to founder and CEO Pauline Idogho, Mocktail Club is available in Erewhon and Whole Foods and will be launching with Town & Country in the near future.