The First Drop
By Jeffrey KlinemanSomething You Can Feel
There’s a fairly regular pivot we’ve seen many functional beverage brands make when they are having trouble gaining traction: they turn to caffeine.
The addition of that wonderful compound, with its incredible ability to make our minds feel more awake than they have any right to be, is one way that a product whose more holistic, subtle, hard-to-feel functional effects (we used to call them “long-lead functionalities – as in, you’ll know they’ve worked if you pass away sometime after you would have died before you started taking them) can start to feel like it’s working pretty much right away.
In other words, the ginseng or amino acids or CBD-laced water that you drank might not otherwise cause you to feel anything (whether or not they’re actually working to provide you benefit). But when you deal in a lot of holistic additives your results tend to vary with your own, uh, faith in their experiential effects, and caffeine is one of those things whose systemic benefits are near-immediate, palpable and – even better – addictive. Once you start getting into the habit of using it as part of your functional beverage routine, you notice a difference when it’s gone.
And for some products, the addition of caffeine can definitely charge sales as much as it charges the consumer. Certainly we’re seeing that with Odyssey, the functional mushroom product that recently launched a “222” line, which adds a heft y 2-cup-of-coffee kick to its Cordyceps and Lion’s Mane fungi mix.
One set of products that has only recently started to work with caffeine is the hydration space, where Gatorade Fast Twitch has catapulted that long-time brand into the energy drink realm with a product that dumps 200 mg of caffeine into the category leader’s trademark blend of electrolytes. It’s a potent mix – that’s more than two regular Red Bulls in a chuggable 12 oz. bottle – but it’s one that has long been so long in the offing it makes one wonder why it took so long to get there.
That’s not because there’s competition for Gatorade from inside the sports drink category – although we do believe that Body Armor may yet find a second, generational wind, and that Prime remains an unpredictable competitor – but from a constellation of other product types that have moved in on its core market, exercise.
Right now much of the growth in the energy drink category, in fact, is coming from hyper-caffeinated products that fit a gym rat’s mentality. Everything from Celsius to Ghost to C4 to Alani Nu to, yes, strange bedfellows Bang and Reign are designed to feel at home in the cupholder of the health-club bound. If these brands have proven a commercial viability for something that trainers, scientists, and baseball players who chug Red Bulls between innings have long known – that well-timed doses of caffeine can improve athletic performance – Gatorade has slowly come to understand that the workout space has more to it than electrolyte replenishment.
But energy products aren’t the only ones forcing Gatorade and its traditional competitors into a competitive stance. With new brands on board, right now there’s something of an electrolyte arms race, one that includes both powdered and liquid formats. In the past decade, the rapid growth of both powdered and liquid brands like Electrolit, LMNT, Hydrant,
Biolyte, Liquid IV and others have brought a new level of functionality to the rapid rehydration game, creating a premium, almost clinical subcategory that demands the attention of the established brands.
These saltier solutions tend to have a higher concentration of electrolytes, making them popular among athletes and among those who might be depleted from that other great recreational activity, boozing. Once again, though, it’s a move into Gatorade territory, both among elite athletes and elite partiers alike. Morning after recovery has long been one of Gatorade’s great unspoken uses; with the growth of actual IV infusions as an achievable - albeit elite - hangover relief possibility, products in the mold of Liquid IV were sure to follow.
Whether it’s for competitive sports or competitive drinking, the identification of this super-hydration space by these insurgent brands has led Gatorade and Body Armor to lean into the trend via rapid relief products of their own, like Gatorlyte and Flash. Pedialyte itself is aiming for a more commercial approach, watching its popularity among athletes and celebrities create a secondary use market that transcends the clinical.
As this electrolyte arms race cranks up, one has to wonder if there’s a crackdown coming — if not from regulators, who have once again started to look at the energy space over, among other things, the caffeine in PRIME, a brand that has feet in both the energy and sports drink worlds — than from doctors and sports medicine experts themselves. They’ve long been clear that in most cases, hydration is perfectly achievable through basic H2O, and that recovery is as well served by chocolate milk as by Gatorade.
And the brands like Gatorade and Body Armor recognize this as well, extending their brands into water - but for heavy use cases, whether it’s after a long run or a long night out, electrolyte based hydration is one of the few other areas that a consumer can actually “feel” working. Now, chugging water is certainly a fine way to rehydrate in most cases, but throw a sports drink to someone who is hurting from fluid loss – for whatever reason – at the right time, and see them feel better, and you’ve probably won a convert.
The Fall Cycle
I’m about to head out to Expo East, followed by NACS, with sundry other shows to follow for our entire BevNET team. The events cycle never ends. That’s a good thing. It’s always great to attend for a myriad of reasons, foremost is to see old friends and make new ones. I’ve been attending trade shows and conferences for over 40 years, with beverages being my beat for the last 33. I am never disappointed. There you get a first- hand look at the offerings that will fill the truck bays, warehouses and store shelves heading into the fall, and more importantly 2024.
These shows put Innovation on full display and highlight the art of beverage marketing. We get to see the newest launches and line extensions. The latest packaging trends and formats are introduced at the shows, along with the graphics that will help to differentiate the brands. Hot tip: It’s always accepted that you get three seconds or less to make an impression in the aisle, so make sure your look stands out. Suppliers of all sorts are also present at the shows, both to support their customers exhibiting there, but more importantly, to reach potential brands to work with.
Companies spend an inordinate amount of time and money attending
these events. For years, the results merited the expenditure. But over the past few years, Covid fears have adversely impacted the success of these events. We saw fewer launches with less marketing muscle behind them. There was a timidity, mostly justified, in many companies’ plans for the shows. That was reality then, but this is now.
One of the most enjoyable aspects of my job is to be privy to what companies plan to put together for their marketing activities. Over the past few weeks, I’ve been encouraged, actually elated, that companies are back on track in aggressively pursuing agendas. Heading into the new year you’ll see so much activity, it’ll make your head spin. New SKUs will hit the shelves, powered by new formulations and packaging options. Marketing dollars will finally be allocated to support their efforts. I’m hearing enthusiasm all around.
Yes, I’m a cockeyed optimist and a cheerleader for the beverage industry, but I feel that my excitement is justified. I believe that 2024 will be a great year for beverage companies, and we’re getting our first look at the products and plans that will help them get there.
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Gerry’s Insights
By Gerry KhermouchConventional Consolation
Like many of you, I’m sure, over the years I’ve developed various coping mechanisms to keep myself on an even keel through life’s little challenges and indignities. (Just to be clear: I don’t have any mechanisms for the big challenges and massive indignities, besides sitting in my armchair, opening a beer and sobbing.)
So when we get a scorching, humid summer day in New York, I just remind myself of how much I hate February, and suddenly the weather doesn’t seem so oppressive. When I find myself embarrassed to find myself rooting for such perennially hapless teams as the Brooklyn Nets and Tottenham Hotspur, I turn on the TV and see the Giants down 40-0 to the Cowboys on opening day. Glad I’m not a Giants fan! It’s the same as I look ahead to the daunting challenge of covering the essentially unmanageable, back-to-back Natural Products Expo East and NACS expos, with their hundreds of beverage exhibitors whose staffers will take it as a personal affront if I don’t get to their booth while they’re on the premises. My coping mechanism here is simply to remind myself how grateful we all were to have those shows resume after their pandemic cancellations. Remember how glad you were? Well, me too. So bring them on!
What will I be looking for as I explore the innovation on display and engage with company leaders and sales execs? For starters, I expect to see plenty of it, after the rigors of the pandemic, with its supply chain disruptions, retailers who moved into triage mode in overweighting staples and the inflationary burst that came just as consumers were cutting back. So I suspect we’ll see the pent-up release of more innovation that may have been sitting on the shelf since 2019 waiting for the right launch time. We saw some of that in the past year or so but I suspect innovation to really be unleashed this fall.
A lot of what we see, though, will be informed by this new fiscal austerity that’s emerged over the past year or so. It’s not receding, and it’s compelling beverage marketers to target segments of meaningful approachability and scale, and in a judicious way that doesn’t squander precious resources at a time that it’s not so easy to stoke the engine with another capital round. As I write this, some of the new stuff is trickling out. Venerable Waiakea Hawaiian Volcanic Water, for example, which has never been promiscuous with innovation, just unveiled the first details of a move into canned cold-brew coffee. True, coffee can’t be regarded as a close-in adjacency to packaged sourced water, but like the core line this one benefits from the state’s rich volcanic soil, which both filters and enriches the water and supports an admired coffee industry. So
on the surface, at least, it strikes me as judicious in concept.
We’ll also witness key pivots undertaken to accommodate this austere new reality. Take Odyssey Wellness, which initially launched a mushroom-infused coffee line that I personally admired. At this time, at least, that’s a niche segment, and the company’s founder Scott Frohman has heeded the feedback he received from the market and shelved the coffee line in favor of an easier-drinking elixir that nevertheless contains a potent mushroom ingredient bill. Investors seem to have bought in and he’s ready to hit the gas.
Or take energy. There’s no quibbling with the category’s continued growth, premium pricing and great margin, not to mention the voids that Celsius, C4 and Bang have created in the beer networks with their exit to soft drink partners. So expect to see a continued flocking of new entrants, including raw startups, supplement marketers edging into RTDs as did VPX and Nutrabolt before them, and incumbents in other categories hoping to get some rel-
evance, shelf velocity and topline growth from extensions there.
Super Coffee, grappling with a Bulletproof-like product whose taste is polarizing and which occupies what is still a niche, has made a more overt move into the energy space, offering the Anheuser-Busch network a sucralose-sweetened energy play that could sit neatly alongside another A-B partner brand, Ghost Energy. (In fact, the two are sharing a booth at NACS, I presume so as not to get lost in the crowd of beer swilling visitors to A-B’s pavilion.) For that matter, Odyssey has just ventured a line called 222 that’s overtly positioned as an energy drink, too.
Of course, that tactic can’t be a panacea for everyone’s growth dilemmas. There will only be so many winners and losers, even in such a growing category, one in which even struggling entries like A Shoc and Zoa have been able to bring in substantial new resources to try to get on track.
I’m also curious to see whether we start seeing more lower-caffeine entries from major energy players now that criticism has begun to heat up again over the possible health compromises of heavily caffeinated brands, some of them employing licensing partners that could lure younger drinkers into the mix. Of course, just in tilting from 16-oz. cans to 12-oz. cans, some incumbent players are cutting their caffeine by 25% right there. Still, maybe the time is right for more “sessionable” energy drinks, just as some brewers have moved away from high-ABV IPAs all the time.
Other trends to track? With fewer and fewer exceptions – GT’s Kombucha and Olipop come to mind – cold-stage players increasingly are hedging their bets with shelf-stable extensions, in the case of kombucha players those canned gut pops. Rowdy Kombucha was the latest, offering a line of ashwagandha-powered Good Mood Sodas that I’m certainly eager to try for the first time.
Entries from established entrepreneurs, with their deep reservoirs of credibility and goodwill and broad access to capital, always are worth a gander, since they possess the ability to keep tweaking the proposition until it resonates. One thinks of Lance Collins, of course, with brands like Zen WTR, My Muse and A Shoc, but also more newly minted second-timers like the Essentia Water team of Ken Uptain and Scott Miller with their flavored vitamin-infused Yesly line.
One also should keep a fresh mind about who the strategics are. That doesn’t just mean the beer and beverage giants, with their sprawling booths full of often late-to-the-game innovation (Gatorade IV anyone?) but the burgeoning array of newer platforms like Splash Beverage and Clear Cut. Splash, run by Red Bull vet Robert Nistico, just landed a credit line it says can support a series of acquisitions of brands doing $20 million and up in sales, even as it builds its own Tapout and Copa di Vino brands. Clear Cut, operated by Coke and Bang Energy vet Joey Nickell, acquired control of energy brand Phocus while launching a shot line called Levo and a sports drink called Hero.
Finally, there’s the matter of DSD. Several brands that had eased away from that distribution mode seem back in the hunt, such as Hint Water and Guayaki Yerba Mate. Others are making their initial foray into DSD, including Spindrift seltzers (prompted by the brand’s push into hard seltzer, where DSD is mandated) and Zevia stevia sodas. These are all well-established brands with DSD-conversant executives on their senior teams these days. Beer wholesalers and other distributors might find it worthwhile to sniff around those exhibitors’ booths while at the shows. Their heavy lifting already has been accomplished and they have a plethora of retailer authorizations.
Of course, though Expo East and NACS are the biggies on my fall calendar, there are lots of other events on the slate, including the National Beer Wholesalers’ Association conference and expo in Las Vegas and various retailer- and distributor-hosted shows. Whichever you choose to “indulge” in, happy hunting!
Yerbaé Raises $4M, Leans Into Sports & Entertainment
Yerbaé has raised over $4 million in the “fi rst tranche” of a new funding round backed by a variety of athletes and entertainers, the Arizona-based plantbased beverage brand announced in August.
In a LinkedIn post, Yerbaé co-founder and CEO Todd Gibson said the round includes investments from individuals from the NFL, MLB and the U.S. Soccer Federation.
Those individuals will be heavily involved in the brand: In the press release, Yerbaé said its new Sports & Entertainment Board will be “comprised of prominent celebrities and sports stars” who will “play a pivotal role in guiding Yerbaé’s strategic decisions, brand positioning, marketing campaigns and product innovation.”
According to the company, the board committee will include a “soccer phenomena,” a CrossFit champion, “a globally acclaimed country music sensa-
tion” and “four revered football stars.”
Yerbaé previously announced that it had added brand ambassador and CrossFit Games champ Annie Thorisdotter to a board advisory group earlier this year.
“We are excited to embark on this incredible journey with our exceptional Sports & Entertainment Board members,” Gibson said in the release. “Their dedication to wellness and performance perfectly aligns with our brand’s values. By working together, we aim to create products and experiences that resonate with our consumers on a deeper level.”
Yerbaé went public in February on the Toronto Stock Exchange through a reverse triangular merger. At the time, Gibson told BevNET that one top benefit of going public is the ability to raise capital on a consistent basis and provide the business with more flexibility in its fundraising capabilities.
This latest fi nancing is expected to support Yerbaé’s product innovation, distribution expansion and marketing efforts, the company said, as well as increased production, working capital and “general corporate purposes.”
The funding consisted of the issuance of over 2.2 million units made of one common share of the company and one common share purchase warrant at a price of $1.83 per unit. Each purchase warrant entitles the holder to one additional common share at a price of $2.15 for up to 24 months from the date of issuance.
In its Q1 2023 earnings report in May, Yerbaé reported net sales growth of 130% to $3.5 million in the quarter, with volume sales also up 130%.
On May 16, the company announced it had secured a $2.5 million new accounts receivable and inventory line of credit from Michigan-based bank Oxford Commercial Finance.
Paper For Plastic: PepsiCo Drops Plastic Ring Packaging
As part of its pep+ sustainability campaign, food and beverage giant PepsiCo announced in August its intention to progressively roll out paper-based packaging solutions to replace the company’s reliance on plastic rings across its beverage portfolio.
The paperboard packaging, first available on 6-packs, is made from recycled materials and is itself recyclable, reducing the company’s reliance on non-recyclable plastic rings. The new paper-based designs will begin to show up throughout the U.S. in a “phased regional approach” similar to a process already begun in the beverage company’s Canadian operations. The company reported that the innovation would be instituted through its Pepsi, Pepsi Zero, MTN DEW, Starry and Gatorade brands among others.
Launched in September 2021, PespiCo’s pep+ initiative (PepsiCo Positive) aims to make the food and drink maker’s operations more sustainable and achieve net-zero emissions by 2040. Under the pep+ pillars of “Positive Value Chain,” PepsiCo intends to “improve packaging sustainability including reducing virgin plastic per serving by 50%” by 2030.
In the company’s 2022 annual report, PepsiCo set a new goal for “20% of beverage servings would be delivered through reusable models by 2030” as it furthered its goals of reducing unsustainable packaging systems in its value chain.
The company conceded during the release of its 2022 ESG Report in June, that although progress had been made in nu-
trition, agriculture, social (people and communities), water-use efficiency and safe water access, reducing emissions and its packaging supply chain have been slower to transform into more sustainable models.
PepsiCo’s move is following consumer demand for more sustainable packaging solutions in large food and beverage brands. Coors Light announced in March 2022 it was ditching the plastic, six-pack rings in favor of a paper solution with hopes of removing the plastic rings from its supply chain by the end of 2025.
Coca-Cola reports that 90% of its packaging is currently recyclable with a goal to hit 100% by 2025. Coke’s bottlers have been transitioning to a paperboard holder for can multipacks in Europe. In the U.S., Liberty Coca-Cola adopted the KeelClip paper packaging system at its Elmsford, New York facility last summer. The company has also been experimenting with 100% plantbased bottles for nearly two years.
How these new packaging initiatives affect the bottom line of beverage companies is currently unknown. Yet, 82% of respondents in a recent survey said they would be willing to pay more for sustainable packaging, according to Trivium Packacking’s 2023 Buying Green Report.
Icelandic Glacial Plans Facility Expansion, Retail Growth After Fundraise
It’s an international brand, and now, with cash in hand, it’s time for international growth.
That’s the way Icelandic Glacial CEO Reza Mirza categorized the news that the brand had received new equity funding from a group of new and existing investors. Reached by BevNET after his return from Europe in September, Mirza said the new financing and investment partners will position the brand for significant growth in the U.S. and elsewhere over the next year, with plans to expand its sales and marketing teams across channels and increase capacity at its Iceland production facility in order to meet demand and fuel innovation.
“We have been showing strong double-digit growth with very constrained resources,” Mirza said. “So now with this investment which is coming in, our team is very excited to not only have the right product selection for the channel, but for us to really invest in sales and marketing. Our marketing budgets have been so small all these years that now we really want to invest in building the brand and achieve the ambition that we have as an organization.”
The investment saw the nearly 20-year-old brand sell a “substantial stake” in the international brand to Iceland Star Property Ltd., a holding company based in Liechtenstein. The deal also included additional funding from existing investors, including the brand’s founders and Blackrock’s U.S. Private Credit team, which converted and reinvested the bulk of their existing debt in the company into equity.
As part of the deal, a new board of directors was appointed with incoming chairman Johan Dennelind, who has previously served as president and CEO of Swedish telecom multinational Telia.
Icelandic Glacial produces a line of naturally alkaline spring waters sourced from Iceland’s Ölfus Spring. In addition to still water offerings in various formats, including plastic and glass bottles, the brand has recently expanded its portfolio into flavored sparkling waters and, coming this fall, canned still water.
According to Mirza, about 75% of Icelandic Glacial’s business is in the U.S. where the brand has around a 60%-65% ACV in the conventional grocery channel. Because the com-
pany has been working from limited funds for years, Mirza said he has taken a channel-by-channel approach to the market to avoid spreading resources too thin.
With this new round, Icelandic Glacial is now setting its sights on convenience stores, as well as an expanded presence in on-premise and foodservice. Its upcoming 11 oz. canned line, Mirza said, will be a focus for both channels while its glass products – which are once again in production following a supply disruption last year – will be pushed for on-premise.
The company will be expanding its sales and marketing teams, he added, and has already finished hiring new positions in Los Angeles with the next target being a larger headcount on the East Coast and in Chicago, seeking area and regional sales managers. In particular growing the on-premise team is a goal – the company currently only has one person running that channel.
“Our strategy is to put people in markets where we [already] have retailers,” he said. “I’ve seen too many brands put in people and then they wait for the business to come; our strategy has been to get the business and then start the people.”
Internationally, Icelandic Glacial has around a 65% market share for bottled water in its namesake nation of Iceland, while the U.K., Canada and the Middle East are “growing significantly,” Mirza noted. Across all countries, he said the international business is up around 180% year-over-year.
The new investment group is expected to be helpful in opening up new opportunities in the European market, he said, and has already introduced the company to several major retail chains there.
The company is also putting funds into its manufacturing expansion, which it intends to expand by 30,000 square meters (about 323,000 square feet). That growth will also support Icelandic Glacial’s ability to innovate; Mirza said the brand is aiming to become an “all-around hydration” platform with “an Icelandic essence.”
“The heart [of the brand] is all about Icelandic and the purity,” he said. “That is going to be part of the factory expansion – to really supply all the innovation that we are going to be launching.”
Molson Coors Ups Its Stake in ZOA with New Investment
Molson Coors Beverage Company’s faith in Dwayne Johnsonbacked energy drink brand ZOA is rock solid.
The beverage conglomerate announced in September that it “will strengthen its investment” in ZOA as part of its overall Beyond Beer non-alcoholic beverage growth strategy. As part of the investment, Molson Coors will remain ZOA’s exclusive distribution partner and will gain a seat on the brand’s board of directors. Financial terms of the deal were not disclosed.
After its launch in 2021, ZOA quickly established a prominent footprint in the U.S. and Canadian markets thanks to Molson’s distribution network with a strong trial sales period. But the new investment arrives as ZOA has faced sharp declines to its brick-and-mortar sales in the U.S. against a saturated energy category.
Initially introduced with a line of zero sugar 16 oz. canned energy drinks, ZOA unveiled a rebrand across its product line, shift ing to a 12 oz. canned format and reformulating the liquid to increase its caffeine and Vitamin C content, as well as
The challenge for ZOA has come as the energy drink category has become one of the fastest growing beverage segments with rising involvement from strategics. In addition to Monster Energy’s continued dominance of the space (which appears poised to continue with Bang in its portfolio) PepsiCo-backed Celsius surpassed $1 billion in sales this year, while Keurig Dr Pepper has aligned with C4 and AnheuserBusch has fueled Ghost. Independent beverage marketer Congo Brands has also had dual success in the space with Alani Nu and its PRIME Energy line, the latter of which launched in January and reported over $106.1 million in retail dollar sales in the 52-weeks ending August 26, according to NielsenIQ.
Much of ZOA’s retail business has been serviced by brand incubator L.A. Libations, in which Molson Coors also owns a minority stake. Danny Stepper, co-founder and CEO of L.A. Libations, told BevNET that while ZOA had a strong opening when it launched in 2021 – supported by a strong media push featuring The Rock, including a Super Bowl ad – he acknowl-
introducing several new flavors. The brand has been a prime component of Molson’s Beyond Beer strategy and comes on the heels of Molson’s acquisition of whiskey distiller Blue Run, which marked its first spirits portfolio brand.
According to the company, ZOA is available in over 42,000 retail locations with more than 160,000 total points of distribution across the U.S. and Canada, as well as online. The company said it reported more than $100 million in sales in 2022 with 138% year-over-year growth.
However, scanner data has suggested that the brand’s core energy drink line in U.S. brick-and-mortar MULO and convenience stores has struggled against the broader energy drink category: in the 52-weeks ending August 12, NielsenIQ reported the brand was down -26.1% (accelerating to a -41.1% drop in the two-week period), while Circana cited its dollar sales at -18% to $36.6 million in the 52 week period ending August 13, including grocery, drug, mass, convenience, military and select club and dollar retailers in its data set. Neither data set tracks Canadian sales, or ecommerce or foodservice sales.
edged that driving repeat sales over the past year has proved challenging.
“We opened on Broadway, really big and really fast,” Stepper said. “We made some mistakes, like all brands do, in the beginning.”
However, with the recent reformulation and rebranding, he said the company has learned from the initial rollout and now believes ZOA is poised to compete in the current energy drink landscape with repeat rates in the natural channel that are “super compelling.”
“What we have now is built for speed,” Stepper added.
Since March, ZOA has been run by CEO John Galloway, a former president at Godiva Chocolate and a veteran at PepsiCo overseeing marketing for Gatorade and IZZE, who initially joined the brand as president and CMO in December.
With the new investment, ZOA now intends to double its media spend and marketing budget for 2024, continuing to focus on its “Fuel Something Bigger” campaign consisting of digital, out-of-home and paid social media ads.
Get that Cheddar: Goodles Raises $13M to ‘Out Weird’ the Competition
Mac and Cheese and pasta brand Goodles announced in September a $13 million in new capital as it looks to take on its blue box and bunny competitors.
The raise, which closed in May, was led by venture fi rm L Catterton with Gingerbread Capital, Springdale, Third Craft Partners, Willow Growth and more than 100 musicians, actors, athletes and influencers also taking part. The company had previously raised $11 million via several SAFE notes.
“[L Catterton] is the right partner at the exact right time,” Goodles cofounder and CEO Jen Zeszut said, adding that given the brand is trending towards profitability, this may be Goodles’ last raise. “We’re here to build a legendary business.”
According to Zeszut, the capital will be used to scale distribution beyond Goodles’ existing 30,000 doors. First launched in Target in 2021, in 2022 the brand launched in Whole Foods Market and this year, rolled out a club pack in Costco. In further natural channel expansion, Goodles is launching in Sprouts this week. Given the reach its competition has in grocery and mass, Zeszut said she felt it was important to
prove the concept in conventional retailers off the bat. The brand has found that not only is stealing share from larger players but is bringing incremental sales to the category.
Capital has also been used to add to Goodles’ exec team, with former Plum Organics and Cerebelly exec Stacie Hajduk joining as CMO and Nathan Lord, former CFO at Kodiak Cakes, taking on the role of CFO.
Founded in 2021 by a group of longtime CPG execs, Goodles counts Wonder Woman herself -- actress Gal Gadot -- as a co-founder. While the brand has a slate of more traditional flavors in retail, including a vegan option, Cheddar and white Cheddar, it’s also released more adult-forward options such as Elote, Hatch Chile and IPA, in a series of online-only limited flavors, with another to be released next week.
“We’re really margin focused and we’re margin agnostic in the sense that wherever we sell [online or brick and mortar], we’re making a ton of money,” Zeszut said. There’s no scenario where we are losing money.”
Product diversification may also be on the docket. Goodles released a three
SKU line of boxed pasta at Whole Foods this summer. While the company’s formal name is Gooder Foods, which could lend itself to future category expansion, Zeszut said the team has its hands full with mac and cheese and pasta.
“We got our hands full and I think, in general, crossing temperature states and doing anything other than shelf stables just sounds like a headache and a nightmare, she told NOSH. “So we’re going to focus and just hit this out of the park.”
Taking on category incumbents Kraft and Annie’s may be tricky, but the company has some institutional knowledge of the category on hand in Deb Luster, Goodles co-founder and Chief Impact Officer, who previously was the co-founder and former president of Annie’s.
“We’re going up against very big competitors with really deep pockets. We were never intending to raise a ton of money and just throw money at the problem,” Zesut said. “We’re throwing creativity at the problem. We’re out-weirding the competition, we are joyful, we are more joyful than the competition.”
Momofuku Goods Raises $11.5M in Second Round This Year
Asian-inspired pantry staples maker Momofuku Goods raised $11.5 million this September in a funding round led by Alliance Consumer Growth to further its national expansion strategy. This is the “restaurant-grade” brand’s second, eight-figure raise this year.
Founded in 2019 as a subsidiary of chef David Chang’s Momofuku restaurant group, the brand was spun out into its own company in 2020, with a portfolio that includes a Chili Crunch line (its top performer), as well as air-dried noodles, soy sauce, rice vinegar and seasoned salts. While the restaurant group has shrunk its holdings from 15 to six restaurants over the last few years, the CPG line has been expanding. The brand is currently available in over 3,500 doors nationwide including Target, Whole Foods and Wegmans locations.
Momofuku’s new financing follows a $17.5 million round announced in March which was led by Siddhi Capital. Siddhi also participated in this latest round. To-date, Momofuku Goods has raised over $27 million.
“Alliance Consumer Growth has a remarkable track record of supporting consumer brands that have gone on to become iconic, and we’re thrilled that they see similar potential in Momofuku Goods,” said co-founder and CEO Marguerite Zabar Mariscal, in a release. “We’re grateful to have ACG’s expertise, alongside Siddhi, as we continue to navigate the world of consumer packaged goods.”
Alliance Consumer Growth – which has invested in CPG brands like Krave Jerky, Suja, Evol Foods and Athletic Brewing – also has experience with foodservice concepts and has backed Shake Shack, Tender Greens, Blaze Pizza and Snooze Eatery.
“Momofuku Goods is one of the most exciting emerging brands in food. In our view, it’s the most authentic, trusted brand in its category,” added Josh Goldin, co-founder of Alliance Consumer Growth, in a release. “Grocery consumers everywhere have just begun to discover Momofuku’s incredibly delicious and authentic products, which enable home cooks to make restaurant-quality food in minutes.”
The raise also marks another significant institutional investment for Asian pantry items. In 2022 alone, competing chili crisp maker Fly By Jing closed a $12 million round, Japanese barbecue sauce Bachans raised $13 million, and dumpling producer XCJ (now Mila) took in an additional $21 million.
While Chang certainly gives Momofuku a leg up when it comes to marketing, competition in both chili crisp and heat-and-eat noodles is fierce. Sauce maker Omsom added its own premium noodle kits earlier this year and Trader Joes has launched a private label “Squiggly Knife Cut” noodle offering. There’s also overseas entrants, with Taiwanese brand A-Sha Noodle debuting a revamped, “clean label” formula in Sprouts and Whole Foods earlier this summer.
Boxed Bought From Bankruptcy by Distributor
Boxed.com is getting a second chance, with regional distributor MSG buying up the beleaguered online bulk food and household goods provider, the company announced in August.
Terms of the all cash transaction were not disclosed. The deal includes Boxed. com as well as other intellectual property portfolios and affi liates
Boxed declared bankruptcy earlier this year, after finding it was unable to turnaround net losses and deliver results for shareholders. It was a far cry from its heyday in 2018, when the company reportedly turned down a $400 million acquisition offer from Kroger. After fellow ecommerce player Amazon bought Whole Foods, the company raised $110 million later in 2018 at a $600 million valuation.
The retailer then went public in 2021 after merging with blank check company Seven Oaks. Last January executives told investors the company was considering a sale, subsequently raising $20
million to fund operations. However, it wasn’t enough and in March the company warned of an impending bankruptcy, which ultimately came to fruition in early April. Soon after it announced that Spresso, its proprietary technology platform for retailers, had been sold, but the retail side of the business was still up for grabs until now.
Privately held MSG is a 20 year-old national distributor focused on natural and sports nutrition goods, with its website listing brands such as Long Island Iced Tea, Amazing Grass, Protes, Red Bull, Zing and RxBar. The company has distribution centers in Florida, Texas, California and Farmingdale, New York (the latter also serving its headquarters), and also offers DSD services to New York City’s five boroughs and Long Island. In a press release MSG president Mark Gadayez said the pickup “strengthens [the company’s] inorganic growth strategy and diversifies [its] distribution models nationwide.”
According to the press release, and an FAQ on the Boxed website, MSG plans to relaunch the business later this year. The company cited its existing distribution and warehousing facilities as vital assets in bringing Boxed online again quickly. While promising the return of many of the “established” household brands Boxed once sold, the company said customers should expect to see “new and up and coming brands” as well.
“In synergy with this acquisition, MSG will further enhance its capacity for processing and distribution to Boxed customers nationwide,” Gadayez said. “In conjunction with our growing operations and patented innovations for distribution and warehouse management, the future of Boxed.com is bright.”
TreeHouse Sells Snack Bar Business To Strengthen Balance Sheet
TreeHouse Foods announced in September that it will sell its Lakeville, Minn. manufacturing facility and snack bars business to global nut distributor John B. Sanfilippo & Son, Inc. for approximately $63 million as it shifts focus to becoming a private label leader. The deal is expected to close by early October.
The news comes as John B. Sanfilippo, which owns Fisher, Orchard Valley Harvest, Squirrel Brand, Southern Style Nuts and recently-acquired Just the Cheese brands, continues its push to diversify its snacking portfolio.
TreeHouse said it divested the snack bar assets after determining the business was unlikely to contribute positive adjusted EBITDA in fiscal year 2023. The Lakeville facility produces a range of fruit and grain, chewy, crunchy and protein bars and has been part of the company’s network since its acquisition of the Private Brands business in 2016.
“The sale of our Lakeville facility and snack bars business is another example of our strategy in action,” said Steve Oakland, TreeHouse chairman, president and CEO, in a press release. “We remain focused on deploying our capital in a manner that supports our longterm growth targets and enhances val-
ue creation for our shareholders.”
The private label manufacturer has been working to shift focus and reshape its portfolio to center around higher growth and higher margin categories to “drive improved execution” – a process that began when Oakland took the helm in 2018. In July 2019, the company sold its nuts and trail mix business to private equity firm Atlas Holdings for $90 million. In June 2021, TreeHouse offloaded its cereal division to Post Holdings for $85 million.
Most recently, TreeHouse sold a majority of its meal preparation business to U.K.-based private equity firm Investindustrial for $950 million in August 2022. TreeHouse said the deal would reduce the company’s debt, strengthen its balance sheet and help focus the business on high margin snacks and beverage categories.
The sale dramatically reduced the company’s portfolio and retail footprint. Before selling the meal prep arm, TreeHouse was spread across 29 categories with 40 plants manufacturing approximately 40,000 SKUs. After the deal, the company was in 18 categories with 26 plants producing 9,000 SKUs. Core categories now include single-serve beverages and private-label crackers.
In Q1 2023, price increases and improvements in its supply chain helped TreeHouse beat analysts’ expectations and drove net sales up 15.8% year-overyear. In the quarter alone, net sales rose to $894.8 million.
Meanwhile, Sanfi lippo made its first foray into the snack bar category in Q2 2023 when it began shipping a line of private brand nutrition bars. In a press release, CEO Jeff rey T. Sanfi lippo said the deal with TreeHouse will help the company “offer [its] private label customers a complete portfolio of snack bars, including fruit and grain, crunchy, protein, sweet and salty and chewy bars that complement [its] internally developed nutrition bars.”
The acquisition is also expected to add between approximately $105 to $120 million in incremental net sales during the remainder of Sanfilippo’s 2024 fiscal year.
According to Mintel’s recent U.S. Snack, Nutrition and Performance Market Report, 75% of current snack bar buyers said they anticipated maintaining or increasing their category purchases in 2023. Senior food and drink analyst Sydney Olson in the report said, “[A] challenge stems from category crowding that will further intensify competition.”
Next Level: G Fuel Brings BFY to Gaming Snacks With Protein Puffs Launch
G Fuel has long focused on selling better-for-you alternatives to mainstream energy drinks through its gamer-centric branding. As of August, the company is looking to trade on its authentic reputation in the gaming community by applying that same focus to snacks with its first food product:
G Fuel Protein Puffs.
Available in a single White Cheddar flavor, the puffs contain 17 grams of protein and just 3 grams of carbohydrates per 1 oz. bag. The snacks are available online direct-to-consumer for $10.99 per 3-pack or up to $35.99 for a 12-pack.
A press release in August indicated that the puffs are only available while supplies last, but G Fuel COO Jack LoParco told NOSH the product is one of several food and beverage innovations in the works that will further extend G Fuel’s presence into new categories.
While protein puffs are far from a new product format –options on the market range from standard nacho-flavored Cheetos alternatives to organic chickpea puffs – G Fuel’s credibility with gaming and pop culture aims to convert a new audience to the space.
Around three-quarters of U.S. households have at least one gamer and as of 2020 the Entertainment Soft ware Association reported 64% of American adults and 70% of people under 18 play games. As LoParco pointed out, that is more than the percentage of U.S. adults who drink alcohol.
“I always find that the misconception of marketing is that they treat gamers like different people, like it’s a subclass of people,” LoParco said. “Like myself, I start off every day working out in the morning, I play video games at night when I’m not working… when we look at the gamer we just look at them as ordinary people.”
But if you google “best gamer snacks,” you’ll find no shortage of lists recommending indulgences most often associated with an older stereotype of gamers as slackers: Cheetos, nachos, beef jerky, pizza, etc. And there’s been little to no healthy snacks marketed directly towards gaming culture.
While it may be a stereotype, LoParco said that consumer studies back up the belief that most players aren’t making the healthiest snacking choices during their gaming sessions. G Fuel, he believes, could be uniquely positioned to change that.
Brooklyn Brewery Takes Minority Stake in Hoplark, Forms Strategic Partnership
Brooklyn Brewery has taken a minority stake in Boulder, Colorado-based non-alcoholic (NA) hop tea maker Hoplark as part of a Series A funding round, the two companies announced September 11.
The New York City-headquartered craft brewery has forged “a comprehensive long-term strategic partnership” that will allow Hoplark to leverage Brooklyn’s infrastructure for production, warehousing, logistics, sales and administration.
Hoplark will also work with Brooklyn’s sales team “to broaden its representation with wholesalers and retailers around the country.”
Whipstitch Capital served as Hoplark’s financial advisor on the transaction. Financial details were not disclosed.
“We’re ecstatic with this financing and strategic partnership with Brooklyn Brewery,” Hoplark founder Dean Eberhardt said in the announcement. “As many people know, we’ve been production constrained
for the last 18 months, and we can’t wait to be able to keep up with the consumers who have been emptying our cans off the shelf faster than we can replenish them. Now we can lean back into working with our wholesale and retail partners to expand our sales to their maximum potential.”
Brooklyn Brewery CEO Eric Ottoway added: “The true attraction here goes way beyond just sales and logistics. We are captivated by Hoplark’s novel technological approach to hops. Their willingness to challenge established practices and think outside the box is extremely evident. They have crafted a unique brand narrative around using hops in a ‘triple zero’ concept – no alcohol, calories, or sugar – that is unparalleled in the beverage industry.”
Hoplark CEO Betsy Frost, who joined the company in January, said “this partnership is the next big step in supercharging Hoplark’s potential.”
In January, Hoplark reorganized the company into two subsidiaries: Hoplark, which will oversee the core brand, and Hoplark Labs, a tech-driven division that will launch new beverage brands and products under the leadership of Eberhardt.
Brooklyn Brewery was among the first craft breweries to push into the NA beer space, with its Special Effects line, which launched in Sweden in 2018 and hit the U.S. in 2020.
Brooklyn Brewery has continued to expand its NA investment, launching a NA variety pack in late 2021. Dollar sales for the variety pack are up +95% and volume +73.8% year-over-year in the last 52 weeks (ending August 12) in NIQ-tracked off premise channels, according to data shared by 3 Tier Beverages. The offering is Brooklyn’s third-largest by dollar sales, behind Brooklyn Lager and Black Chocolate Stout, with more than $1.1 million in sales in the period.
Vermont’s Lost Nation Seeks New Equity Partner or Turnkey Sale
Earlier this year, a listing popped up for Lost Nation Brewing in Morrisville, Vermont.
The Beer Advocate forum lit up with questions and concerns about the brewery’s future, while other posters expressed sadness.
After receiving interest from a few parties over the summer, Lost Nation co-founder Allen Van Anda told Brewbound that he pulled the listing. He described the number of “tire kickers” and “interested parties” as “mind boggling.” However a sale of the business has yet to materialize, and time is beginning to run out on Lost Nation.
Lost Nation is in a similar position to Weathered Souls, Van Anda said. He and Lost Nation co-founder Jamie Griffith dissolved their partnership last October after around a decade in business together. They had founded the brewery in 2012 after working together at the Von Trapp Brewery in Stowe.
The partnership was no longer working for either party, Van Anda said. So the founders decided to go their separate ways. As cracks formed in the foundation of the partnership of Lost Nation’s founders, the business was struggling from a “perfect storm” of a COVID-19 hangover and an oversaturated craft beer market.
Lost Nation and Van Anda are now at a crossroads. He’s seeking a new equity partner to buy out Griffith’s stake in the business or a complete turnkey sale of the brewery. Both options remain on the table.
Should someone purchase the business outright, they’ll be
buying a brewery with a capacity of around 8,000 barrels annually, a 50-seat restaurant and taproom and a 200-seat outdoor beer garden. They’ll also be receiving a warehouse that was converted to a live music venue.
Should someone buy into Lost Nation as an equity partner to Van Anda for $250,000, they’ll essentially be giving the business a clean slate. Van Anda said he’s negotiated a deal with the brewery’s bank to refinance its note should the investment come through.
“$250,000 would save this brewery,” he said.
“We live in the fastest growing community in the state of Vermont,” he continued. “It just takes the right person to believe in it, and it’s going to take off. It’s just going to fly.”
Time is running short though. Van Anda initially believed after his partnership with Griffith ended that the brewery wouldn’t survive to see the summer. However, he credited Lost Nation’s “amazingly dedicated small staff ” and restaurant business “floating cash flow” with keeping the Lost Nation alive.
Now, Van Anda expects the end of fall foliage to lead to a slowdown in Lost Nation’s business. Without a clear path forward, Van Anda has been reluctant to brew beer. Lost Nation has subsisted on batches of Pilsner and Mosaic brewed in January but supply is beginning to dry up.
Interested parties can contact Van Anda at allen@ lostnationbrewing.com.
Hard Seltzer Brand Mighty Swell Acquired
Austin, Texas-based hard seltzer brand Mighty Swell has been acquired by Lemonati LLC, according to a press release from buy-side advisory firm Houlihan Lokey.
The transaction closed on July 28. However, the deal announcement was made August 24 by Houlihan Lokey.
Lemonati is described as “the beverage alcohol division of a major international company, recognized globally for its expertise in developing and manufacturing citrus flavors, organic flavors, beverage flavors, essential citrus oils, and other flavors that are applicable across a wide variety of finished food, beverage, and consumer products.”
Houlihan Lokey senior VP Sam Scanlan told Brewbound that family-owned Lemonati was looking to create a beverage-alcohol division but instead opted to acquire Mighty Swell and bring CEO Jeana Harrington onto the Lemonati team.
The issues for Mighty Swell began earlier this year when a round of funding expected to come through by December fell through.
“By February, it was getting a little dire in terms of being able to fund the year’s production going into the spring,” Harrington told Brewbound.
This led Mighty Swell to explore merger-and-acquisition options while it was gearing up to brew the bulk of its production for the summer selling season. Without the funding, Mighty Swell was unable to brew a follow-up batch of product in March, leading the company to allocate product in order to maintain its chain placements, Harrington said. She credited her team and Mighty Swell’s wholesalers with holding onto many of those placements.
Future production won’t be an issue with new ownership backing Mighty Swell and Lemonati, Harrington said.
“It’s gonna give us the opportunity and the resources to not have to fundraise again, which is a big plus for me and the leadership because that can take up a lot of time,” she added.
Lemonati will operate with little intervention from the family that bought Mighty Swell.
Harrington said their desire is to remain private and uninvolved in the business, allowing her and her team to run the new alcoholic beverage division of the company as a siloed business.
Following the sale, Mighty Swell did the first of two “big production runs” at City Brewing’s facility in Memphis, with product beginning to ship now, Harrington said. The company is also exploring West Coast production as expansion west is under consideration.
Mighty Swell brand family sales in off-premise retailers tracked by NIQ have declined -19.1%, to around $5.9 million, while volume declined -24% for the 52-week period ending August 12, according to data shared by 3 Tier Beverage. Declines accelerated in the latest four-week period, with dollars -47.8% and volume -50.5%, according to data shared by the firm.
Weathered Souls Seeks Equity Partner to Take Over Co-Founder’s Majority Share
The craft brewery that led the Black is Beautiful charitable beer initiative is seeking a new equity partner to buy out one of its co-founders and take a majority stake in the business.
Weathered Souls Brewing Company co-founder Mike Holt in September declared he is seeking an exit from the San Antonio craft brewery that he helped found with Marcus Baskerville in 2016.
“Building this alongside Marcus, and alongside all of the incredible people who helped get Weathered Souls to where
it is today, that’s been the adventure of my life,” Holt said in the announcement.
“Now it’s time for someone else to continue that good work, whether it’s raising millions to support charitable organizations in Black communities across
the country, winning awards for making some of the best beer on the market, or just creating an environment where everyone can feel comfortable enjoying craft beer regardless of who they are.
“The community deserves to see Weathered Souls continue in the hands of someone who will truly be the good steward and community leader that we’ve strived to be ourselves these last few years,” he continued.
Holt is asking interested parties to reach out directly to him at investor@ weatheredsouls.beer.
Craft Beer Cellar Founders Offer Belmont and Trinktisch European Food Hall for
Sale
Craft Beer Cellar Belmont and Trinktisch European Food Hall are looking for new ownership.
Co-founders Suzanne Schalow and Kate Baker announced their intent to sell the Belmont, Massachusetts-based businesses in a letter to industry members and fans in August.
“We have had the time of our lives being your local beer and wine store, and now your beer hall and gathering place,” Schalow and Baker, who are also married, wrote. “But, we feel that the time has come for us to get back to ourselves, each other, and to look towards building on our experiences to further explore excellence in hospitality, in the retail and restaurant segment (Craft Beer Cellar Co.), and beer industry education, in a new light.”
The duo are “actively seeking a local individual, family, or group, to pick up where we will leave off ” and take over the businesses: “someone who has the same fi re and drive for providing an exceptional experience, by selling and supporting the very best in beer, wine, cider, food, and more.”
While the sale marks a new chapter for the individual businesses, Schalow and Baker are not done with the Craft Beer Cellar franchise, which includes 11 other locations.
Brewbound caught up with Baker following the announcement to discuss the decision, the interest they’ve received so far, and what’s next for her and Schalow.
Baker shared that four different groups of people have inquired about the business so far.
“It’s also something that it’s just not gonna happen overnight,” she said. “It’s easy to get overexcited, but you have to talk yourself down a little bit.
“We are encouraged by having such interest so early,” she continued.
Although Baker and Schalow are open to selling the businesses separately, the interest they’ve received thus far has been acquiring the package.
“There’s a lot of complementary aspects to having Craft Beer Cellar and Trinktisch right next door to each other,” Baker said, noting that the restaurant’s customers have often stopped by the bottle shop after, to purchase packages of the beers they’ve tried during dinner.
The timeline for a sale is “open ended,” but Baker said the hope is “by the end of the year” the business will be transitioning to new owners and she and Schalow will be in advisory roles.
Baker admitted that the last year and half has been difficult for her and Schalow, with no work-life balance. Baker added that the ideal buyers will have help to divide duties and avoid the grind that they’ve experienced amid labor shortages and the aftermath of the pandemic.
“We didn’t do this because we don’t want to work,” Baker said of offering the businesses for sale. “We love to
work, but we absolutely must stop the 14-hour work days six to seven days a week. It’s just not tenable any longer. We’re not old, but we are not 30 years old anymore.”
That’s why she’s been encouraged by the groups that have reached out, with multiple people involved, who will be able to “take something that we think is pretty cool and push the needle forward and make it even better and introduce some changes and streamline efficiencies.”
“All the people that have shown interest have some varying degree of prior experience and beer knowledge – which of course is paramount – restaurant work, etc.,” she said. “We’re not just going to pack our bags and drop the keys on the desk and run away. This means way more to us than that. We want to make sure that we’re leaving all that we’ve done and all that we’ve poured our souls into in good hands and that’s the main goal.
“Our challenge is to not have it leave any sort of a gaping, glaring hole, but to encourage people that we’re leaving it in the hands of somebody that can take it to the next level,” Baker continued. “In fact, we encourage whoever comes in here to do it better because it deserves it and so do the people of Belmont and the surrounding communities.”
Nevertheless, Baker said she and Schalow are “100% completely at peace with” the decision to sell the businesses. Still, she called the decision to sell “bittersweet,” as she and Schalow have built a loyal customer base after 13 years.
“We’ve had a good run,” Baker said. “We’ve had some bumps in the road. We’ve had some great successes. We still love what we do. We are just tired.”
CSDs
Functional beverage brand Rowdy Mermaid has announced the release of its newest innovation, good mood soda. Available in four classic flavors – Cola, Grape, Orange and Lemon Lime – each 12 oz. can contains 200mg of KSM66 Ashwagandha and has just 5 grams of sugar. According to the brand, KSM-66 is one of the most potent forms of the herb and has been clinically shown to reduce stress. Rowdy Mermaid caffeine-free good mood soda is available at select retailers nationwide. For more information, visit rowdymermaid.com.
Coca-Cola-owned soft drink brand Fanta has launched a zero-sugar soda that turns consumers’ tongues black. The drink will be accompanied by a What The Fanta “5D drinking experience” campaign that includes activations, an online video game and social media posts. The spooky beverage will be available in 20 oz. bottles and 6-packs of 7.5 oz. mini cans in the U.S. To go along with the multichannel campaign, Fanta has tapped content creator and designer, Nava Rose, to create a special Halloween costume inspired by Fanta’s mystery flavor. For more information, visit fanta.com.
ENERGY
Juvee, the energy drink launched by gaming brand 100 Thieves founder Matt “Nadeshot” Haag and Sam Keene, has released a LTO Peachy Mangopuff flavor co-branded with Gopuff. Each 12 oz. can contains zero sugar and boasts 128mg of caffeine along with functional ingredients like L-Theanine, maca root, Vitamin C, B Vitamins and taurine. The limited time flavor will only be available on the Gopuff grocery delivery platform for $3.49 each. For more information, visit drinkjuvee.com.
Following the announcement of Monster Energy’s sponsorship of Call of Duty League, Activision and Monster have teamed up to launch three limited-edition Call of Duty cans. The cans, available in Monster Energy Original, Monster Zero Ultra and Monster Energy Zero Sugar, feature art showcasing COD’s iconic “Ghost” character. The limited-edition Monster Energy x COD cans are available in 16 and 24 oz. cans at retailers nationwide. For more information, visit monsterenergy.com/en-us.
GHOST will unveil its limited edition can of Orange Cream exclusively available at the Life is Beautiful Festival. The festival is held September 22 through 24 in Las Vegas, Nevada. This weekend, the brand also launches its Rainbow flavor partnership with Maxx Chewney’s candy brand Sour Strips in both its energy drink format and supplement powders. For more information, visit ghostenergy.com.
ALT DAIRY
Plant-based dairy brand Elmhurst 1925 has expanded its seasonal collection with the introduction of Apple Pie Spice Blend. The LTO is made with the same oat-cashew base as the brand’s OatNog but also features tasting notes of baked apple and pie crust. The new addition joins Elmhurst’s returning seasonal products, Pumpkin Spice Oat Creamer ($5.99 per 16 oz. bottle) and OatNog ($6.99 per 32 oz. bottle). For more information, visit elmhurst1925.com.
Chobani has expanded its pumpkin patch with the release of its newest product, Chobani Oatmilk Pumpkin Spice. The dairy-free offering is currently rolling out at retailers nationwide with a SRP of $4.29. In anticipation of sweater weather, the brand is also launching Chobani Coffee Creamer Pumpkin Spice and Chobani Oat Coffee Creamer Pumpkin Spice. For more information, visit chobani.com.
COFFEE
Onyx Coffee has made its first foray into the concentrate space with the launch of Extractions. Available in two varieties – Monarch (tasting notes of chocolate and molasses) and Southern Weather (tasting notes of milk chocolate and plum) – the products are designed to “take the guesswork out of brewing an exceptional cup of coffee,” according to the brand’s website. Each extraction is available for $25 per 12.6 oz. bottle. Additionally, consumers can purchase the Extractions Set featuring both flavors for $45. For more information, visit onyxcoffeelab.com.
Super Coffee has expanded its lineup of protein-packed coffees with the return of Pumpkin Pie Latte. Like the rest of the brand’s offerings, the seasonal flavor packs 200 mg of caffeine and
10 grams of protein per 12 oz. bottle. Super Coffee Pumpkin Pie Latte is available on Amazon for $35.88 per 12-pack. For more information, visit drinksupercoffee.com.
SPARKLING WATER
Summer isn’t over yet, according to sparkling beverage maker LaCroix. The bubbly water company announced a seasonal mystery flavor this week with the essence of Sunshine in it. No other details were released about what exactly sunshine tastes like other than an equally cryptic tagline: “The Curiosity of Wonder.” The new flavor launch comes just as LaCroix announced a Mojito flavor coming this fall as well. Both flavors will soon be available in 24-packs of 12 oz. cans. For more information, visit lacroixwater.com.
To celebrate the onset of the fall season, Spindrift is bringing back two of its seasonal flavors: Spiced Apple Cider and Cranberry Raspberry. Both varieties are available online, nationwide at Target and regionally in select stores of Market Basket, Fred Meyer, King Sooper, Safeway, Jewel and Shaws. For more information, visit drinkspindrift.com.
RTD SPIRITS
In a truly unique collaboration, iconic frozen waffle brand Eggo has teamed up with Sugarlands Distilling Co. to launch its newest boozy innovation, Eggo Brunch in a Jar Sippin’ Cream. Inspired by classic brunch flavors, the new liqueur combines the flavors of toasted Eggo waffles, maple syrup and butter with a hint of smoky bacon. Bottled at 40 Proof, Eggo Brunch in a Jar Sippin’ Cream (20% ABV) is available at select retailers nationwide. For more information, visit sugarlands.com.
Film producer Richard Peete and actor Wyatt Russell have teamed up to launch Lake Hour sparkling cocktails. Available in four flavors at launch – Watermelon Cucumber, (tequila) Rosemary Yuzu (vodka), Peach Jasmine (vodka) and Honeysuckle Ginger (vodka) – the drinks are made with real juice and cane sugar and contain 5% ABV. Lake Hour cocktails are available in Pennsylvania, New Jersey, New York and Oklahoma for $12.99-$13.99 per 4-pack and $22.99$25.99 per 8-pack. For more information, visit lakehour.com.
VMC, the tequila-based canned cocktail brand born from a partnership between world champion boxer Saúl “Canelo” Álvarez, Spirit of Gallo and Casa Lumbre, has made its U.S. debut. The brand’s lineup includes Paloma, Jamaica Hibiscus Cocktail and Margarita varieties made with blanco tequila. VMC cocktails (5% ABV) will be available starting this month for $10.99 per 4-pack of 355mL slim cans. For more information, visit vmcdrinks.com/us/en.
SPIRITS
Media personality Brooklyn Peltz Beckham, son of David and Victoria Beckham, has launched his newest creation, WESAKE “Sakura” Junmai Ginjo. Inspired by the Japanese Cherry Blossom viewing celebration, the new expression is said to feature fruity and floral tasting notes. WESAKE “Sakura” Junmai Ginjo (14.5% ABV) is available via the brand’s website and at select retailers nationwide for $24.99 per 720 mL bottle. For more information, visit wesake.co.
ICONIC Spirits, a division of The Brand House Group, has announced the U.S. debut of its newest innovation, HAIKEN Japanese Handcrafted Vodka. Available in three expressions – Original, Lychee and Yuzu – the spirit (40% ABV) is crafted with water from Mt. Katsuragi and rice from Hyogo. All three varieties are available online and at Total Wine & More locations in select markets for a SRP of $34.99 per 720 mL bottle. For more information, visit iconic-spirits.com.
Colorado-based craft malthouse Root Shoot has released its first completely locally-sourced spirit, American Single Malt Whiskey. Bottled at 50% ABV, the new offering incorporates 100% Colorado-grown and malted grain sourced from family-run Olander Farms and malted by Root Shoot. Root Shoot’s newest innovation is now available at retailers across Colorado. For more information, visit rootshootmalting.com.
To celebrate its 10th anniversary, Kenny Chesney’s Blue Chair Bay has released a limited edition 16-year-old rum from the U.S. Virgin Islands. The brand is holding its first-ever presale event for the LTO with exclusive access offered to Chesney’s No Shoes Nation fanbase. Following the pre-sale event, Blue Chair Bay’s 10th Anniversary Rum will roll out to select retailers next month for a SRP of $59.99 per 750 mL bottle. For more information, visit bluechairbayrum.com.
Channel Check
What’s Hot and What’s Not
SPOTLIGHT CATEGORY
ENERGY DRINK MIXES AND SPORTS DRINK MIXES
There’s something new in the mix — powdered mixes of established categories, and they reflect changing routes to market and the new ways consumers are willing to consume beverages. Look at Celsius, one of the fastest growing energy drinks — and the only one of the leading brands that’s putting energy into the mix space. Then check out the sports drinks, where Liquid IV has built an electrolyte empire. There, a rising tide is lifting some older boats, though, as both Gatorade and Propel are also on the rise. Look out for Prime and Alani, though: these stablemates come from fitness, and also understand D2C.
ENERGY DRINK MIX
SPORTS DRINK MIX
TOPLINE CATEGORY VOLUME
ENERGY DRINKS
SOURCE: Circana OmniMarket™️ Shared BWS - 52 Weeks Ending 08-13-23
RTD CAPPUCCINO
NONFLAVORED BOTTLED STILL WATER
FLAVORED SELTZER
SOURCE: Circana OmniMarket™️ Shared BWS - 52 Weeks Ending 08-13-23
SPORTS DRINKS
BEER TOP BRANDS
NACS Preview By BevNet Staff
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FEELING the SQUEEZE
Amidst Category Fragmentation, Juice Brands Seek New Frontiers
By: Adrianne De LucaFor juice makers today, success is where you squeeze it. Amidst a fractured market, the landscape can understandably appear in flux. Cast off from the CPG titans, the likes of Tropicana, Evolution Fresh and Suja are still settling into their new homes inside larger private equity portfolios. Family friendly brands like Simply and Sunny D are dabbling in alcohol, while shot specialists KOR, Sofresco and So Good So You continue to command top dollar even as shoppers feel the pain of rising retail prices. And that’s not even touching on lemonade, where sales numbers show that ongoing concerns over sugar content that have knocked loose juice’s health halo don’t seem to matter at all. In other words, the juice category feels more open and fragmented than in past years, a set of conditions that heightens both opportunity and risk.
“Juice purchase drivers can seem to come from clashing ends of the motivation spectrum – wellness and enjoyment – demonstrating that juice brands of any type can take both paths to reach the widest audience through messages of simple formulations, taste, flavor and even texture,” said Adriana Chychula, Mintel Consumer Food and Drink Analyst.
Category Overview, By The Numbers
Within the aseptic, shelf-stable juice set in MULO (including c-stores), total dollar sales rose nearly 14% in the 52-week period ending August
13, 2023, according to retail data provider Circana. That sales growth was somewhat offset by significant volume declines among the top three juice drinks performers – Capri Sun, Kool Aid, and Honest Kids – which all ramped up prices nearly 20% in the past year.
Pure aseptic juices fared slightly better with sales increasing 13.6% and pricing growth a bit lower at 13.4% while volumes were flat. Coconut water category leader Vita Coco maintains a strong lead in the set with over $291 million in total dollar sales; in contrast, category runnerups Apple & Eve and Juicy Juice have brought in nearly $89 million and $75 million, respectively.
Over in the shelf-stable bottled juice market, volume growth also took a nosedive, dropping 5.6% as the segment saw positive pricing actions in the low double-digits (+12.7%). Total dollar sales of bottled fruit drinks – which includes brands like Snapple, Hawaiian Punch, Bai, V8 and Sunny D – rose 5.6% but volumes dropped over 7% as the subset took average price increases north of 13.7% .
As for the OG pure juice – orange juice – its pandemic-revived immune-supporting health halo continues to wane. Across shelf-stable, refrigerated and even concentrated formats OJ saw sales and volumes decline while pricing continue to rise. The leading four branded refrigerated orange juice producers – Tropicana, Simply, Florida’s Natural and Minute Maid – all saw sales decline over the past year.
However, among the ambient-temp bottled juices there may be a rising star. Cherry juice, known for its sleep support attributes, was the only subcategory in the shelf-stable, bottled category to notch positive gains in all key metrics: category sales increased nearly 29%, volumes grew 17% and prices increased at a rate of 5.6%.
R.W. Kundesen’s cherry juice remains in the lead with nearly double the market share than the second-in-command private label cherry juice players. But Antioxidant Solution’s bottled cherry liquid is quickly rising – sales grew 2057.5% to over $5 million, volume growth was up 3028.2% while prices dropped 31% in the past year. Further supporting the trendtoward-cherry: juice category leader Snapple introduced its Earth Elements flavor this year, featuring cherry and fig juice blended with a black tea base.
Refrigerated juice sales growth is also seemingly on-par with the category trends and it's clear that consumers continue to prioritize price when making purchasing decisions, as the category’s average dollar sales (-0.5%) and volumes (-8.4%) declined and prices went up (+8.7%). Juice drink dollar sales growth was flat and
volume dropped over 8% as prices increased 8.7%. Pure fruit juice saw modest results with sales increasing 6.5% and units declining only 1% as prices rose to an average of $2.61 (+7.6%).
Fruit juice blends also managed to notch positive sales gains (+2.6%) but saw volumes drop off by about 1%. That momentum is taking contributions from the shot space, with probiotic shot maker So Good So You reporting a 48% sales increase and its volume growth is keeping pace at the same rate (+48%) as the brand’s pricing remains flat.
“Some 100% options stretch their lead with simplicity; but blended formats and hybrid innovations like sparkling juices or plant waters subtly chip away at ‘pure’ fruit juice,” said Chychula. “100% juices clearly symbolize a sense of purity to consumers, contributing to securing purchase from the largest share of juice drinkers in the cluttered juice aisle.”
In the emerging juice brand arena, there has been a bit of consolidation. In October 2022, Suja Organic acquired Vive Organics in a deal it said at the time would help secure its position as a juice shot leader. Across Suja’s portfolio – which spans fruit juice, juice drinks and blended juices – this past year price increases of about 8% correspond with fairly substantial volume declines. Volume and sales of its juice drinks and blended formats dropped by 25% and 18%, respectively, while its leading fruit juice segment saw 4.2% volume declines and a low-single digit growth rate.
Vive Organic’s average pricing fell over 12% this year and during that period, sales increased nearly 112% to over $10 million and volume growth kicked up 142%.
Big CPG Innovates With Alcohol, and Without
The average consumer either sees juice with a health halo or with a sugary silhouette, according to a recent report from Mintel. But this year has seen several large juice brands embrace alcohol (or lack thereof) as a means of expanding outside the category’s traditional boundaries via RTD cocktails, mixers and the emerging nonalcoholic segment.
RFG JUICE & DRINK SMOOTHIES
snack, a sweet treat, or mixed with other non-alcoholic beverages
“As younger consumers age, juices of all types can remain on the shopping list with messaging that conveys simplicity, even in blended and adapted juices when coupled with taste and flavor positioning and innovation that inspires use occasions beyond breakfast,” said Chychula. “Younger adults are more likely to drink juice as a snack, a sweet treat, or mixed with other non-alcoholic beverages and as a mixer with alcoholic beverages.”
Coca-Cola’s reinvention of Simply as an alcohol-friendly platform
ty going and introduced Simply Mixology, a new juice line targeted cocktail
Coca-Cola’s reinvention of Simply as an alcohol-friendly platform exemplifies the trend. Following the successful launch of Simply Spiked via its partnership with Molson Coors, Coca Cola kept the party going and introduced Simply Mixology, a new juice line targeted for at-home cocktail prep, in three SKUs – Strawberry Guava Mojito, Lime Margarita and Peach Sour. The line launched in January and at the time, Coke said in a press release that the Simply brand was also approaching another milestone: $2 billion in annual retail sales.
According to James Quincey, Coke’s chairman and CEO, during an earnings call with investors, Simply Mixology brings “both affordability and premiumization” to the mixer space and brand identity. That direction has provided a clearer distinction from Coke’s other juice brands like Minute Maid, which extended its juice-based, Gen Z-targeting Agua Fresca line with a new 52 oz. Pineapple Horchata flavor this year.
Elsewhere, farming cooperative-owned Ocean Spray is teaming up with Absolut and Pernod Ricard USA to launch a sparkling Cape Codder (cranberry juice and vodka) in 12 oz. cans at 4.5% ABV. Will the nearly 100-year-old juice maker’s “real juice credentials” make a difference in the alcohol category, as it seems to think?
Although the product won’t launch until next year, the duo is already working on integrated co-packing and innovations to go deeper into the RTD cocktails.
gistics, Armistead said it is also looking to reduce the risk of Happy Moose spoilage. The brand recently closed some initial deals contributing to a small Series C fundraise, he said, and is working on slight product reformulations with the goal of extending the shelf life of its juices. In turn, Armistead expects having logistics on-hand, and a lower risk product will create a solid margin cost structure as both businesses continue to expand.
Juice maker Uncle Matt’s is also working to assert more control over manufacturing. Earlier this month, the two-decade old company announced it was making the leap from copackers to self-bottling after purchasing a new facility it expects to be operational by the end of the year.
Anything to squeeze out a little more opportunity, even for the most well-established brands.
According to
After watching innovations built around energy or MCTs fail to catch fire, Vita Coco is taking an even bigger swing with its boozy RTD collaboration with Diageo’s Captain Morgan rum, Vita Coco Spiked. During an earnings call in August, Vita Coco co-founder and executive chairman Mike Kirban said the company is looking to drive penetration of its canned coconut juices in the c-store channel. Kirban believes those efforts will help coconut juice become common “at-home mixers” and expand consumption occasions. According to recent data from Numerator, household penetration for coconut water sits around 22% compared to cranberry juice at 55% and over 80% for orange juice.
At least one big name is standing pat, though: Tropicana’s sole innovation this year was the relatively safe three-SKU Tropicana Zero Sugar, its first new launch since its acquisition by private equity firm PAI Partners from PepsiCo in 2021.
At least one big name is standing pat, though: Tropicana’s Tropicana Zero Sugar, its first new launch since its acquisition by private equity firm PAI Partners from PepsiCo in 2021.
A Cure For Cold Chain Challenges? Look To Your Own Checkbook
Though novel opportunities as well as challenges have impacted the juice set, a handful of startups have taken aim at solving chronic category challenges such as the refrigerated variety’s naturally short shelf-life and the associated challenges of cold-chain shipping.
San Francisco-based Happy Moose Juice announced it acquired its distressed, local cold storage partner back in April. While co-founder and CEO Ryan Armistead said the newlyacquired business will remain a separate entity, he believes the realized impact of having an in-house logistics provider will benefit the juice business’ bottom line over the long haul.
According to Armistead, the team also sees a large opportuwith the new business by building out “a suite of different loboth local and cross-country deliveries. He noted that another
According to Armistead, the team also sees a large opportunity in serving startup perishable food and beverage brands with the new business by building out “a suite of different logistical services” ranging from direct-to-consumer mail order fulfi llment, connecting brands to distributors and fulfi lling both local and cross-country deliveries. He noted that another storage facility nearby had recently been purchased by a large conglomerate for their own use, further reducing cold storage access for emerging brands.
“It feels like there's also this really sweet place where we can be the champion for small perishable food businesses in San Francisco and provide these value-added services that they need and don't really exist elsewhere,” said Armistead. “That's the exciting part is providing this critical service for other businesses like ours – that feels important and significant.”
As the team continues to learn the ins-and-outs of cold-chain lo-
Sol-Ti introduces its latest addition to the Sol-ti SuperAde Lineup: Wild Blueberry SuperAde. The refreshing Living Beverage combines the taste of pure, fresh lemonade with the added benefits and flavor of Wild Blueberry. Per the brand, SuperAde is an antioxidant powerhouse, has prebiotics and boosts brain function.
Langers is bringing the heat with the launch of its newest products, Pineapple Chamoy: Piña Chamoyada and Mango Chamoy: Mangoneada. The former, like the rest of the brand’s pineapple juices, offers 80% of the daily value of Vitamin C. The latter features mango nectar made with Alphonso mangos. Both juice varieties are available via the brand’s website for $3.49 per 64 oz. bottle.
Juice giant Tropicana expanded its zero sugar line with the addition of three new fl avors, Summer Splash Punch, Lively Lemonade and Passionfruit Lemonade Escape. Summer Splash Punch features tasting notes of pineapple, cherry, peach and red grapes while Passionfruit Lemonade Escape combines, of course, freshly squeezed lemonade with juicy passionfruit. All three offerings are available at Walmart, Ahold, Kroger, Wakefee and Hy-Vee stores nationwide for a SRP of $3.39 per 5 oz bottle.
Pressed Juicery joined forces with functional wellness brand Hilma to launch its fi rst Summer Debloat Program. The 3-step holistic system features Pressed Trust Your Gut Tonic (a functional tonic with pineapple, lemon juice and herbs), Pressed Gut Instinct Shot (a concentrated wellness shot) and Hilma Gas + Bloat Relief Capsules (capsules formulated with peppermint leaf, fennel and lemon balm). Pressed Juicery x Hilma Summer Debloat Program is available for $20 through September 30 at all Pressed Juicery locations.
Organic juice producer Uncle Matt’s has introduced a new functional juicebased beverage to its portfolio, Super-
fruit Punch. The antioxidant-boosted drink features a blend of dark sweet cherries, blueberries and black elderberry and has 45 calories per serving. Matt’s Organic Superfruit Punch is available online and at Sprouts nationwide for a SRP of $6.99 per 52 oz. bottle.
Seoul Juice, an all-natural Korean Pear beverage that is available in Bristol Farms and Costco nationwide and is the fi rst of its kind in the United States inspired by the Korean Pear juices that are readily available overseas, has brought on board social media stars Hanna and Haley Cavinder aka The Cavinder Twins. The Twins — who became top NIL earners while playing basketball at the University of Miami — have joined the beverage company as “Head of Partnerships” and have joined as equity partners in the business. They will be responsible for running the newly formed Female NIL Fund created by Seoul Juice
Midwest Juicery’s drinks have grown to over 800 stores, with the company most recently adding 75 Giant Eagle stores across the Midwest. The expansion complements a footprint that includes other regional chains such as Dierbergs Market, Meijer and Better Health, along with roughly 200 independent accounts and some limited East Coast and Southern partners like The Fresh Market and Rouses.
Natalie’s Orchid Island Juice Company announced they have introduced two new juice blends: Tomato Reishi, Himalayan Salt, and Black Pepper Juice and Tangerine, Pineapple and Aloe Juice. Both blends are available to order on the Natalie’s Juices website and on grocery shelves nationwide. With Natalie’s Tomato Reishi Juice, Natalie’s is regenerating a generational favorite. This tomato juice is a source of clean hydration that is radical in flavor and low in calories. Mindfully handcrafted with an infusion of coveted holistic ingredients including adaptogens and spices for a robust and delectable sip, this juice is made from only 5 ingredients.
Apple juice maker Martinelli’s has added a convenient 1 Liter size offering to its Organic Apple Juice portfolio. The USDA-certified organic juice is made from US-grown fresh organic apples farmed in California, Oregon and Washington, with no additives. The suggested retail price per bottle is $5.99. Martinelli’s 1L Organic Apple Juice joins a top-selling collection of organic products, including Martinelli’s Organic Honeycrisp Apple Cider and Organic Sparkling Cider varieties, and is investing in new organic orchards to increase its supply.
Origins, a consciously formulated skincare brand rooted in the genius of nature, partnered with Erewhon, the certified organic retailer, on a limited edition, cold-pressed juice inspired by adaptogenic mushrooms and other ingredients from Dr. Andrew Weil for Origins Mega-Mushroom Restorative Skin Concentrate. The drink is the first-ever, beauty, cold-pressed juice collaboration for Erewhon. Dr. Andrew Weil for Origins Mega-Mushroom Juice is available in the refrigerated section in all 9 Erewhon locations for $12.
Absolut and Ocean Spray are teaming up to launch Vodka-Cranberry Range, a ready-to-drink (RTD) line coming early 2024. The new product combines Absolut Vodka with Ocean Spray cranberry juice. sparkling water and other natural flavors. The range will include a variety 8-pack of four combinations, two 4-packs and single cans. The RTD will be manufactured, marketed, and distributed by Pernod Ricard USA.
The Coca-Cola Company is bringing its own twist to the non-alcoholic beverage space with Simply Mixology, a line of cocktail-inspired, zero-proof juice blends available in Lime Margarita, Peach Sour and Strawberry Guava Mojito flavors. The line is rolling out to select grocery stores nationwide and retails for $3.99 per 52 oz. bottle.
iQ Juice is updating all of its flavors by adding apple fi ber to the entire line. Apple fi ber is a dietary fi ber packed with vitamins, such as Vitamin C, minerals such as potassium and antioxidants.
These nutrients are vital for maintaining overall health and well-being.
Mongibello, producers of 100% fresh-squeezed Blood Orange Juice made using blood oranges grown at the base of Mt. Etna in Sicily, is offering 20% off plus free shipping on its Blood Orange and Mandarin Orange Juice with code BEVNET20 at mongibellojuice.com.
Happy Moose is currently working to reformulate their line of cold-pressed juices in an effort to extend their shelflife. Available in 10 flavors – Apple Bottom Greens, Blood Orange Bliss, Cali Orange, Chard Knock Life, Classic Lemonade, Hella Berry, Lemon-Aid Detox, Rainbow Greens, Strawberry Fields and Tropical Roots – the juices are available online for $67.50 per case of 9 bottles.
Kokomio, LLC. is excited to announce the launch of its coconut juices in Sprouts Farmers Markets. Mexican-based Kokomio locally sources its coconuts from Guerrero, Mexico. Kokomio will launch its 11.8 oz coconut original wholepressed juice and coconut with guava whole-pressed juice. They are refreshing and affordable drinks for fast rehydration and electrolyte replacement.
R.W. Knudsen Family, a pioneer in natural and organic fruit and vegetable juices, has launched its fi rst-ever national advertising campaign, “There’s a Juice for That” designed to showcase realworld scenarios in which consumers turn to juice for self-care. From jumpstarting the day with an antioxidant blend to beet juice post-workout, to tart cherry juice before bed, R.W. Knudsen Family’s assortment of more than 50 shelf-stable juice beverages spans many need states.
Kayco Beyond announced the debut of Wonder Juice, a brand-new parent brand that encompasses the healthful and delicious, 100% cold-pressed juice brands Wonder Melon, Wonder Lemon, and Beetology. Each of these three existing fan favorites is made with clean, natural, organic ingredients, giving them full, sweet flavor with no additives.
Slow Growth for Next Generation of Kids Drinks
By: Brad AveryAny parent will tell you that kids grow up fast. The kids beverage category, however, can move a lot slower. While there’s been a push over the past decade to bring more better-for-you options to the kids beverage set, from sugar free juices to flavored water boxes to functional beverages, there still remains an extensive amount of white space in the category for better-for-you brands that can operate at scale while capturing the taste buds of childhood consumers. For now, legacy players remain at the top of the category.
According to Circana, in the 52-weeks ending August 13, 2023, “aseptic juice drinks” grew all channel retail dollar sales by 6.2% to over $1.3 billion, while products simply called “aseptic juices” –a category which includes brands like Apple & Eve and Juicy Juice – were up 13.6% to $640.8 million. At the top of the larger aseptic juice drinks list are several classic lunchbox brands: Capri Sun leads the category, up 0.9% to $585.7 million, followed by KoolAid (+6.1% to $387 million) and the better-for-you option, Honest Kids, up 21.1% to $124.7 million. Hi-C ranked a respectable but somewhat distant fourth, with 18.4% growth to $56.5 million.
While that data only provides a slice of the overall picture for kids drinks, it’s also a reflection of how the legacy brands have maintained their grip on the set. While some emerging brands have made a splash in the category, they’re primarily still a fragment of the space. Even one of the fastest moving brands in recent years, the IP-driven Good2Grow – which bucks the category trend of bulky multiserve packs by selling single-serve on-the-go bottles designed to look like licensed cartoon characters – was down -10.2% to $25.3 million.
So why, save for the Coke-acquired Honest, has it been so rare for entrepreneurial brands to stake a serious claim in this set, especially as demand for better-for-you products has remained consistent?
Veteran retail buyer Dwight Richmond, director of center store at Pacific Northwest retailer Town & Country Markets, suggested the problem might be a bit cyclical. Richmond said he doesn’t believe that the turnover or longevity of individual brands in the kids set is much different than any other beverage category, but instead innovation is much slower than it is in adult beverages. As a result, most retailers limit their shelf space as there’s little incentive to expand, leaving those entrepreneurial brands that are trying to innovate in a much tougher position trying to break in.
“In a lot of stores [the shelf is] four feet, it’s not big because there’s not enough innovation to spread it out and make it bigger, especially outside of the Krogers and Walmarts,” Richmond said.
“As opposed to when you think about other beverage categories we talk about, oftentimes the problem is that there’s too many brands for too little space.”
At Town & Country, which Richmond described as a hybrid retailer toeing the line between natural and conventional products, two of the top selling kids beverage brands are currently Capri Sun and Hint, the latter having launched its kids line of flavored water boxes in 2018. Like most kids brands, both are sold exclusively in multipacks.
Kids, Richmond said, typically want something simple and sweet to drink, and most of the aseptic juices on the market fit that niche. In the case of Hint, its flavored waters are unsweetened but still carry the sensation of sweetness, and parents are drawn in by the health benefits of a zero sweetener natural drink.
Trust Issues
Oftentimes, entrepreneurial kids brands can struggle from over-engineering, sometimes going for a product format that is too functional or trendy, essentially making an adult beverage in a smaller package. That can hurt a brand by driving up the price, of course, but it’s also an unfamiliar product that might be challenging for an adult, let alone a child. Think about kombucha, notes Will Ahearn, co-founder and president of CPG merchandiser Dirty Hands – it’s been hard enough for brands to sell adults on that product, let alone kids.
But, Ahearn suggests, brands that have established themselves with adults first often have an easier job making the leap to kids’ formats. Not only do those brands already have built-in affinity with consumers, but built-in trust – an important trait when a parent is deciding they feel comfortable giving a product to their child. Ahearn cited Honest as a prime ex-
ample of this strategy, noting that Honest Tea had developed a loyal consumer base among adults, making the leap into its Honest Kids line significantly less difficult than had the brand been introduced as a childrens’ product.
“Am I going to spend the money on a $3 kombucha to give it to my picky eater?” Ahearn posed. “Am I going to make this dollar investment with uncertainty around whether or not they actually like how it tastes?”
In the case of Honest, not only did adult consumers already have a relationship with the brand, but they frequently shared it with their kids as well, meaning they felt comfortable making that initial purchase of Honest Kids because they knew their child already liked the brand’s teas.
For Richmond, the decision by The Coca-Cola Company to discontinue the Honest Tea brand last year, while keeping Honest Kids, appeared counterintuitive and removed a key piece of synergy that had positioned Honest for future success: when Honest Kids consumers grow up, what will happen when they can’t find an adult version of the drink they remember fondly from childhood?
“When [Honest founder Seth Goldman] was developing that line, I think he was doing it the right way, which was he was trying to create generational consumption,” Richmond said. “‘I’ve got parents who already trust this brand, I’ve got kids that will now try this brand, and then kids will grow into my tea brand.’ I think he accomplished it.”
Hint, Richmond noted, has tried to find a similar path via its kids line launch: parents were already sharing full-sized bottles of the product with their children, so the smaller water box format already had a built-in consumer base among kids at launch.
With that trend in mind, Richmond
BOTTLED FRUIT JUICE BLEND
ASEPTIC JUICE DRINKS
pointed to another brand that has started trying to make the jump: frozen treat brand GoodPop, which debuted a canned kids juice line this year. In particular, he saw the minican format as being more favorable for the category, both as environmentally friendlier than unrecyclable pouches and as a format that could be more aspirational for kids, who might see their parents drinking flavored seltzers like LaCroix daily.
“Pouches are not as favored as they used to be,” he said. “They solved a problem, I think, in a different generation, when the problems of that generation were differ-
When Honest Kids consumers grow up, what wi happen when they can’t fi nd an adult version of the drink they remember fondly from childh d?
ent. Now, people are much more on-the-go, that functionality of that packaging isn’t as fully practical as it used to be.”
Introductions Curtailed
For brands that were founded as kid-focused, Ahearn highlighted a number of in-store marketing challenges that make launching in retail a less-than-favorable approach. For one, there are fewer sampling opportunities.
“There’s no Expo West for kids. There’s no sampling for babies,” Ahearn said. “I think it’s a really hard category to build a story around at retail, I feel like you’re far better off going the DTC model with a kid’s brand and then launching in the store when you have a following because I think you can just reach far more kids and far more parents online.”
When it comes to merchandising, brands may also be better positioned in lower volume aisles, Ahearn suggested, so long as they’re more likely to meet potential customers. While he suggested having better child-friendly aisles in stores could be beneficial to retailers looking to move more kids food and beverages, brands have to make due with what’s available.
“If I’m a kids’ beverage, I should not be in the functional set, right? That’s not where I’m going to get the attention. I should be in the baby food and kids set,” he said. “That may not be high volume, but it’s where I know my core consumer is shopping.”
A Launch Example
So what does it mean to try to launch nationally, in a big way? It takes money, connections, and a trusted marketing focus. For brand incubator L.A. Libations, the stagnant nature of innovation in the kids set meant it felt ripe for disruption. Co-founder
and COO Pat Bolden told BevNET that in launching PLEZi, a line of flavored juice drinks made with no added sugars and 2 grams of fiber in 8 oz. bottles, the company hopes to marry the better-for-you trend with the flavor-forward focus of the larger category players, while deploying a trusted national figure to build buzz.
Supported by L.A. Libations’ brand building team, PLEZi touts a powerful public ally who has helped to quickly raise awareness: former first lady Michelle Obama, who formally joined the brand as a co-founder and strategic partner this spring.
PLEZi is now looking to tap into online influencers to raise more awareness, a common strategy for CPG brands today but one with more intricacies when it comes to reaching kids and parents simultaneously. Bolden suggested that messaging can be a tightrope walk between speaking the language of both groups – fun and flavorful for kids, and emphasizing no added sugar for parents.
PLEZi will also be using single-serve offerings to drive trial and is employing a nationwide sampling program that will target youth sports programs, concerts and sporting events. However, Bolden said it is multipacks that ultimately fuel velocity and the goal will be to convert consumers from premium single-serve buyers to regular multipack shoppers.
“We have a lot of influencer contacts that will be available through all the social media platforms – Instagram, TikTok, all the ones where we think that we’ll be able to communicate directly with our consumers, with the kids,” Bolden said. “We’re going heavier on the communication to kids, but we definitely have to make sure that moms are connected as well through another side of our influencer contests to be able to drive trial.”
As gnubees is enjoying expansion in the United States, available this year at HEB and launching with grocery delivery service HUNGRYROOT in September, the brand has refreshed its functional fruit shake branding with aligned logos, popping colors and clear callouts. This functional juice is bringing functionality to kids drinks, serving the sensory-sensitive community and delivering on-thego options that everyone can feel good about & enjoy.
Kids snack and beverage brand good2grow has announced the launch of BIGGER, a larger, 10 oz. size of its juice compatible with the brand’s iconic, collectible licensed character tops. Available in two flavors at launch – Raspberry Lemonade and Orange Mango – good2grow BIGGER contains 65% more juice than the brand’s classic 6 oz. products. BIGGER is slated to hit the shelves of major retailers including Walmart, Target, Meijer, Publix and Casey’s.
By combining both offl ine and online worlds, Capri-Sun has transformed its 10-packs into its very own social media feeds, that not only resonate with the target audience but create “carefree moments by providing an element of surprise and playfulness.” The fi lter edition, which is available in 25 countries worldwide, introduces a collection of ten brand-new creative characters, all inspired by iconic social media fi lters.
With Vitamins B, D and zinc, Shine Water released its zero sugar, better-for-you enhanced waters in kids pouches available via 8-packs. Flavors include Watermelon Blackberry, Mixed Berry Acai, Strawberry Lemon and Fruit Punch.
Tim Tam Tummy has introduced the first and only kids kombucha. Committed to transforming the billion-dollar children’s beverage category, Tim Tam Tummy aims to outshine juice boxes and other old school options by providing families with an alternative that leads with probiotics to address the functional health benefits parents care about most.
The brand offers four fruit-forward flavors with gentle carbonation – Apple Happy Dance, Grape Day to Shine, Mango For It!, and Pineapple Party.
YouTube stars Aphmau, Unspeakable, & NinjaKidz have launched JuiceBlox, a line of fruit juices made with 100% juice. The drinks are available in three flavors – Unspeakable (apple & strawberry), Aphmau (mixed fruit) and Yummo (berry blast) – and contain no added sugars, artificial flavors or preservatives. JuiceBlox is available nationwide exclusively at Walmart.
PLEZi Nutrition, a kids’ nutrition company co-founded by former First Lady Michelle Obama, launched its inaugural product, PLEZi, at Walmart stores nationwide earlier this year. PLEZi has 75% less sugar than average leading 100% fruit juices, no added sugar, plus fiber and nutrients like potassium, magnesium, and zinc. There are 6 grams of sugar per 8 oz serving of PLEZi, while leading fruit juices average over 25 grams of sugar per 8 oz serving.
Hint Kids has launched a new online exclusive grape flavor. Each 6.75 oz. box of fruit-infused water contains zero calories, zero sweeteners and zero sugar. Hint Kids Grape is available for $22.99 per case of 32 boxes.
Ripple Foods, a leader in plant-based dairy, announced the newest addition to its portfolio of plant-based products: Ripple Kids Unsweetened Original Milk. The new offering is an unsweetened version of its wildly popular Kids Original Milk and features 8 grams of plant-based protein and 50 mg of DHA Omega-3s and Choline, while having zero added sugars.
Tally Kids launched its first product, Tally Kids Whole Milk Substitute. The drink comes in 32-ounce Tetra Pak cartons and is available in two flavors: Original and Chocolate. The drinks, made with chickpea protein isolate, have 8g of protein and 21 vitamins and minerals like choline, iron and zinc among others.
Upcycled Instant ABO Miso Soup is Alive! Not Freeze-Dried!
Abokichi
ABO Miso Soup is a plant-based, nonGMO and upcycled certified instant miso soup made with organic miso paste and Sakekasu, a byproduct of sake brewing. Just mix with hot water to enjoy a rich and nourishing umami-filled cup of soup anywhere.
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Amy's Kitchen
Amy's Kitchen is an organic prepared food company and Certified B Corporation® whose purpose is to make it easy and enjoyable for everyone to eat well.
Amy's is committed to cooking authentic, great tasting food with the highest quality ingredients.
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The healing power of pure, unadulterated Fosters manuka honey
Fosters Honey Company
Pure New Zealand manuka honey, there’s nothing else like it in the world. Scientifically analyzed, tested and proven antibacterial and anti-inflammatory properties give this superfood its power. Also available for private label ranging.
Unleash the Boldest Sichuan Flavor on Earth
Hotpot Queen Chunky, spicy, tingly, and packed with umami – our Wild Mushroom Chili Sauce is not just any chili crisp; it's a flavor revolution. Every spoonful says 'oh, so good!' Made with 100% natural ingredients.
GoodSAM Foods
GoodSAM's Organic Roasted & Salted Macadamia Nuts are regeneratively farmed and directly traded with farmers in Kenya. Available roasted & salted or raw & unsalted in several sizes: 1, 4, 8 & 24 oz bags.
JOYÀ
We’ve enhanced our Functional Chocolates with powerful adaptogens and functional mushrooms to boost your body + mind in just 4 decadent bites. 100% pure, certified organic and wildcrafted ingredients, no soy or fillers. Vegan + paleo friendly.
Joydays
Joydays are deliciously balanced snacks which come in three flavors: Chocolate Chip, Double Chocolate and Peanut Butter. Each serving with ONLY 120 calories, 3g sugar, 10 net carbs, 5g fiber, 3g protein, & and absolutely NO sugar alcohols!
Functional pancake & waffle mix that tastes great and feels amazing!
Living Prana, LLC
Redesigning the pancake & waffle experience, our organic-certified, gluten-free, grainfree, plant-based, just-add-water mixes are loaded with superfoods, mushrooms and adaptogens. At long last, you can have your cake and eat it too!
Look who upgraded your nut butter
Laura's Gourmet Granola
Crunch, Elevated™ Laura's Gourmet - the only CHEF driven, artisan crafted granola with premium, natural ingredients in 9 better-for-you recipes. Since 2004, even the pickiest palates have chosen Laura's.
Certified Gluten Free; Certified Delicious!
Michele's Granola
Michele’s Granola upgraded nut butter by adding the goodness of whole grain granola! Available now in Original and Maple Pecan, Michele's Granola Oat & Nut Butter is a spreadable, dippable, craveable blend of toasted oats, coconut, nuts and maple.
Award-Winning Vietnamese Cold Brew: Natural Energy, No Sugar Crash!
Nguyen Coffee Supply, Inc.
Nutty Gourmet - Seasoned Walnuts and Nut Butters!
Nutty Gourmet Nutty Gourmet vibrant snacks w/bold flavors that will satisfy your Omega-3 nut cravings. Seasoned Walnuts: Sea Salt, Honey, Maple Cinnamon, Rosemary, Hatch Chile Limon, & Habanero. Nut Butter: Pistachio Walnut, & Parent award-winning Chocolate Walnut
100% Organic Breakfast Biscuits made from Ancient Greek Grains
Olyra Foods
Olyra makes 100% organic breakfast biscuits from a unique blend of Ancient Greek grains. Using only the highest quality, natural ingredients, our biscuits are low in sugar (only 6g per serving!), a great source of fiber, and taste truly delicious.
Pastabilities makes pasta a "functional food"!
Pastabilities
Our pasta reunites health with taste! Our Protein, Lower Cal, and Fiber Pasta deliver better nutrition facts AND real pasta taste. Consumers focused on active lifestyles, weight issues, or gut health can dive back into a delicious bowl of pasta!
Gluten Free Turkey Jerky- A Cut Above The Rest. Delicious Protein Bite
PREVAIL Jerky
Our Original Free Range Turkey Jerky has a mouth watering flavor combo that'll have you reaching for another bag. Top 9 Allergen Free, Organic spices, Paleo, Gluten Free & Woman Owned Certified, Get snackin' before someone else gobbles it all up!
Gourmet Seasoned Sourdough Pretzel Nuggets with Crave-worthy Crunch OMG! Pretzels
Marinated Veggies On-The-Go: When Time Is Short, but Flavor Is a Must!
Poshi
Soft, chewy snacks made from simple ingredients for anytime snacking! Soom Foods
First of its Kind Freshly Sliced Plant-based Deli Meat
Prime Roots
Vegan Cheese & Sour Cream Made from Real, Simple Ingredients
Treeline Cheesemakers
Mr. West Donut Mix (Sweet Potato & Glaze Recipe)
West Food Brands
West Food Brands is a new emerging food brand from Baltimore, MD. They are the first company to ever create a sweet potato donut mix. They also donate 2% of gross profits to the Kids In Need Foundation each year. You can purchase their wonderful products on Amazon and Walmart.
Taste The Difference With Gourmet Sprouted Nuts
Rich Nuts
While Rich battled wildfires, he crafted these gourmet nuts to alleviate bloating and gas. These nutrientpacked nuts are sprouted to promote easier digestion, expertly seasoned, and dehydrated to provide a delightfully satisfying crunch.
NEW
Bites!
SATTVA VIDA INC.
Creator of plantbased Sattva Vida Energy Bites brings a new grab and go offering to market. The 2packs are the same delicious bites, in all of the brand's signature 5 flavors, Cocoa Craze, Peanut Envy, Off the Walnut, Key Lime Love, & Chia Crunch.
SmartSweets: The Brand Revolutionizing The Candy Industry
SmartSweets
SmartSweets innovates the candy you know and love with up to 92% less sugar than traditional candy. Enjoy delicious candy without the use of artificial sweeteners, sugar alcohols or added sugar. Feel good about candy!
Placing Adaptogens at the Core: Meet SYNRJE Nutrition Bars
SYNRJE
Founded on adaptogen science, SYNRJE nutrition bars offer a convenient, tasty and healthy snack, featuring all-natural, doctorbacked ingredients that enhance overall well-being and help people lead more balanced lives with adaptogens at the core.
Cut the Sugar, Pack the Protein with Snack Mates by The New Primal
The New Primal From class time to camp time, antibioticfree protein fuels more fun. Low-sugar, delicious, and easy for young fingers to pry open. Our Snack Mates Mini Meat Sticks fend off hunger and boredom with perforated 5-packs in 4 uniquely crave-able flavors.
Innovators of plant-based, nutrient-dense sustainable ingredients since 2005. The ONLY FDA GRAS rice protein, Oryzatein is smooth & also has 4 clinical studies vs whey with patented claims. And the ONLY rice & oat dairy alternatives certified whole grain & allergen-friendly. Looking for pumpkin protein or extruded pea + fava protein from Europe? Sacha Inchi protein from Peru? We have those too.
Laboratory You Can Count On
AZ Laboratories
Re-Imagine the Possibilities
Bioenergy Life Science (BLS)
Clean label, functional foods have strong consumer appeal. We’re re-imagining those possibilities! Great things can happen when you sharpen your competitive edge with our all-natural, science-based ingredients because they do more, and do it better.
We use our proprietary core technology and 30-plus years of experience to develop specialty ingredients and product solutions for healthier living. Your market advantage will be helping people of all ages feel, perform and look better from the inside out.
Get to know our patented branded ingredients: Bioenergy
Ribose; RiaGev, RiboActiv, MannoHealth and Bioenergy Ribose + B vitamins. Drive sales in such high-demand categories as energy, sport performance, metabolism, healthy aging, digestive health, immune health, urinary tract health, and women’s & men’s health.
Make the switch to our great-tasting, Functional Sweetener Solution for a natural sweetener with functional benefits including energy rejuvenation and better metabolism.
Plus, we have value-added services such as product concepts; formulation; market-ready and custom premix services (with flexible batch sizes); small-pack options for start-ups; quality and regulatory; and marketing.
BLS is your partner in innovation, helping you to develop or refine your formulations and line extensions with our branded ingredients. Let’s take your business to the next level.
We have served our clients over the past decade testing a variety products! Ranging from energy drinks to supplement powders, we have the grounds covered with our science. Our team is confident in operating and testing through our approved methods to provide you the honest, and reliable results you can count on. We hope you think of us here at AZ Laboratories to be your trusted lab partner!
Connecting Nutrition & Health
BENEO Inc.
Whether you have been in business for awhile or just starting out, we've got you covered! We assist with: Bookkeeping-Invoicing, Accounts Payable and Receivable, Sales Tax, Clean Up, Marketing, Website set up, Social Media and more! Our services are virtual making them more affordable than hiring an employee. We are accepting new clients and look forward to helping your business grow!
Global event staffing and tech
Elevate
From energy drinks to protein and meal replacement beverages, low glycemic Palatinose™ (isomaltulose) opens the door to nutritionally optimised beverages. Its slow release of glucose…the main fuel for body and brain…supports blood sugar management while keeping you supplied with sustained energy, whether for exercising, training/competitions, or simply for those long, demanding days.
Real People. True Flavor.
Callisons
Outstanding food and beverage sampling takes customer interactions from bland to extraordinary. Elevate provides staff for oneday or week-long campaigns at tradeshows, in-store, mobile tours, festivals and annual sampling campaigns. With our carefully vetted staff network, proprietary data capture tools and national and global reach, we're taking experiences with your brand to next level heights.
Clean Label Ingredients
Farbest Brands
Since 1903, Callisons has created authentic flavors using the highest quality, natural extracts directly from nature. Known as the leader in mint, Callisons develops a diverse portfolio of flavors with a passion for the Beverage, Confection, Oral Care, and Bakery industries. As tastes change and the market expands, we evolve and innovate to remain on the forefront of the next flavor revolution.
Brand Identity and Packaging
Cornerstone Strategic Branding
Our Ingredients. Your Sourcing Simplified. We can help you meet the demand for clean-label ingredients with a full range of high-quality dairy and plant proteins, gum acacia, vitamins, sweeteners, natural colors, as well as USDAcertified organic, and NON-GMO Project Verified ingredients. No matter your budget, application, or label claim, we can guide you to the ingredients that are right for you.
The Firebelly Social Show
Firebelly Marketing
Our focus is connecting your brands package and message with your consumer. We develop the visual communication, strategy and look and feel for your retail package. We are a full service agency, and can take the project from an idea to final print. With 30+ years of experience, we know a thing or two on how to win at retail. Make your brand a winner!
We feature leaders of mission-driven food and beverage brands. Listen to origin stories and insights about current industry trends, connect with your audience, build a community, make the world a better place, and of course, #founderlife.
Flavor Dynamics, Inc.
We are the perfect choice for your food and beverage flavors. Our experienced team is guided by a commitment to creating innovative, superior quality products. Our "AA" BRC audit grade represents our commitment to food safety and quality assurance. Ask us for your clean label requirements, including Organic, Non GMO, Natural, Gluten free and Vegan. Our team is up to the challenge.
Beverage Development Services
Flavorman
EXBERRY® by GNT is the leading brand of natural colors for the food and beverage industry. Our colors are non-GMO and derived solely from fruits, vegetables, and edible plants through a process of chopping, pressing, filtering and blending. Our team of technical specialists are available to guide customers through each stage of the formulation and upscaling process.
Nut Butter-Seasoned Roast Nuts
Goodness Ingredients - GDNIS
Over the last two generations, our family-owned company has grown from a sugar supplier to a one-stop ingredient shop. We’ve built strong relationships with the top ingredient manufacturers around the world, making us the #1 distributor to work within the US. From the ingredients we distribute out of our 14 warehouses across the country, to the custom ingredient systems we manufacture in our world-class Aviator facility, we always ensure the highest quality with every order. From grains, proteins, and fibers to sweeteners and more, we supply snack manufacturers with the ingredient solutions needed to create the best products.
Creating beverages in every drink category is what we do—but it’s not all we do. With over 30 years in the business, Flavorman offers a wide range of professional services—from R&D, product re-formulation, and value-engineering, to shelf life testing, regulatory assistance, production support and planning, consulting, and much more. Partner with Flavorman and change what the world is drinking.
Superior Coconut Ingredients
Franklin Baker, Inc.
Goodness Ingredients is part of Grower Direct Nut Ingredient Supply - California grower, processor, packer of walnuts and value-added walnut, almond, pecan, pistachio (and more) ingredients including beverage-grade Nut Butter for plantbased milks. Roasted and Seasoned walnuts, almonds, pistachios, and more. State of the art BRC Certified facility. Organic Certified. OU Kosher Nutty Gourmet brand
Gusmer Brewing Solutions
Gusmer Enterprises
Over 100 Years of Beverage Processing Industry Excellence! Mojonnier
Franklin Baker, Inc. is the largest processor of coconut ingredients in the Philippines as the premier supplier to the global beverage & food market. Franklin Baker offers an extensive portfolio of coconut products including Coconut Water, Coconut Milk/Cream, Coconut Concentrate, Creamed Coconut. Our extensive third-party certifications are unrivaled to the highest product standards.
Next Level Know-How
G3 Logistics
Since 1924, Gusmer has taken a revolutionary approach to serving the brewer’s vision. It’s why Gusmer offers a full line of solutions for the brewing industry including fermentation and processing aids, filtration media and equipment, analytical products and instrumentation, processing equipment, and analytical laboratory services. Contact your local Gusmer Technical Sales Representative today!
McCormick Flavor Solutions
McCormick Flavor Solutions
Mojonnier has a complete line of customized equipment for the production of soft drinks, fruit juices, hard seltzers, waters, and other beverages.
From individual filtration, clarification, pasteurization, thermal exchange, deaeration, mix blending, carbonation systems to completely automated syrups rooms our technical customer focused organization is dedicated to providing the best possible processing solutions to meet the requirements of both small and large producers.
G3 Enterprises provides totally integrated packaging and logistics solutions including comprehensive transportation and 3PL warehousing to help our food and beverage customers succeed. Whether it’s getting raw materials to production, bulk liquid to a bottler, or finished goods to a distribution center, we excel at tackling the unique logistics challenges of food and beverage.
For more than 130 years, we have consistently delivered safe, clean products while progressing our commitment to sustainability. As an industry leader in flavor, seasonings, marinades, herbs, and spices, McCormick is committed to offering the best tasting, culinary-inspired, solution to our customers. Our team will be with you every step of the way to design your custom taste experience.
Mojonnier has a full line up of Mix Processors to handle your RTD mixing needs. Our systems’ main operation mix ratio is 1/4 - 1/5 and can achieve outputs ranging from 6 gpm (70 cans per minute) to 265 gpm (2,800 cans per minute). Our processors can be developed for small and large production operation by introducing semi-automated vs fully automated machines. All our machines have the capability of holding quality expectation by means of electronic measurement. Some of the quality points we can monitor are Mix Ratio, CO2 dosing, Brix, Dissolved Oxygen, Product Flowrate Output, and Temperature just to name a few.
As an American-owned, family operated organization we remain dedicated to providing your company with new equipment, processes, service and parts allowing for a more consistent production environment.
Monk fruit is an ingredient that allows you to create great tasting, innovative products with significantly less sugar and calories - all from the goodness of fruit. Monk Fruit Corp., the recognized global industry leader, offers the best quality and widest range of monk fruit products on the market. Looking for monk fruit - Trust the monk.™
Natural Source Sales is an independent and leading natural foods broker for the foodservice and away-from-home channel in the Western US. A proven track record of success in growing the sales and presence of our top-tier brand portfolio. With a Corporate Chef, Registered Dietitian and National and Chain Account Manager as part of our team, we are well-equipped to help you succeed in this channel
PTM Food
Healthy Snacks with Flaxseed Pizzey Ingredients
Mother Murphy's is a full-service flavor manufacturer dedicated to supporting customer needs through quality and flavor innovation. At Mother Murphy's we specialize in flavor and prototype development for the beverage industry and have over 60,000 flavors in our portfolio. We have made the world taste better since 1946.
100% Recycled Packaging Handles
PakTech
PTM Food is your premier product development & manufacturing support firm. Our wide range of expertise, development, and creativity achieves an exciting point of difference between your product and competitors. We work hard to uncover key industry insights, developing products that have a competitive edge. Whether your project is simple or a complex one, we’re your team!
Pizzey Ingredients’ PurFlax™ line includes a range of whole and milled flaxseed ingredients, adding the nutritional and functional benefits of flaxseed to your snack food items. Our PurFlax™ products are ideal for gluten-free, keto, vegan and other specialty applications. PurFlax™ is nonGMO and pesticide-free, and is guaranteed shelf stable for 2 years.
VicinityFood connects your distribution, sales, production, food safety, inventory and finance teams with a unified recipe-based manufacturing software system. From lot traceability to recipe management to production scheduling and financial operations, VicinityFood gives food & bev manufacturers the real-time solution they need to manage their food processing supply chain with MRP software.
COMPANY
CONTACT NAME CITY STATE PHONE NUMBER WEB SITE
Abokichi Jess Mantell Hamilton - (416) 649-6595 abokichi.com
Amy's Kitchen - Petaluma CA - amys.com
Axiom Foods Rick Ray Los Angeles CA (916) 813-1878 axiomfoods.com
AZ Laboratories Susan Vu Tempe AZ (480) 955-9870 azlaboratories.com
BENEO Inc.
Kyle Krause Parsippany NJ (003) 216-8013 beneo.com
Better Sour Bella Hughes Austin TX (808) 375-9381 bettersour.com
Bioenergy Life Science (BLS) Penny Portner Ham Lake MN (763) 746-3926 bioenergylifescience.com
Bored Cow Jennifer Mezzapelle New York NY (203) 253-7969 tryboredcow.com
Callisons Kim Carson Cincinnati OH - callisons.com
Chomps - Naples FL - chomps.com
Cornerstone Strategic Branding Jill Tapia New York NY (212) 686-6023 cornerstonebranding.com
Crabtree & Associates, LLC - - NC (980) 987-9886 crabtreenassociates.com
Daily Crunch Snacks Laurel Orley Nashville TN (212) 671-2534 dailycrunchsnacks.com
Elevate Meggan Ballard Gomez Atlanta GA (747) 273-7773 weareelevate.global/usa
Farbest Brands
Firebelly Marketing
Flavor Dynamics, Inc.
Tracey Jordan Park Ridge NJ (201) 573-4900 farbest.com
Duncan Alney Indianapolis IN (317) 557-4460 firebellymarketing.com
Colleen Roberts South Plainfield NJ (908) 822-8855 FlavorDynamics.com
Flavorman Spencer McGuire Louisville KY (502) 301-8136 flavorman.com
Fosters Honey Company
Franklin Baker, Inc.
Katie Foster Kaitaia - +64272209436____ fostershoney.co.nz
John Slade Memphis TN (901) 881-6681 franklinbaker.com
G3 Logistics Nicole Ostertag Modesto CA - g3enterprises.com
GNT USA, LLC
Jeannette O'Brien Dallas NC (704) 469-5555 exberry.com
Good Measure - - - - allingoodmeasure.com
Goodness Ingredients Tony Varni Hughson CA (209) 448-6105 gdnis.com
GoodSAM Foods Kari Janapareddi Darien CT (781) 430-8434 goodsamfoods.com
Gusmer Enterprises - Mountainside NJ (866) 213-1131 GusmerBeer.com
Hotpot Queen Jia Liao Bellevue WA (206) 502-9141 hotpotqueen.com
IFPC Mathew Brady Fenton MO (314) 422-2324 ifpc.com
It’s Skinny Matt Mahan Austin TX (512) 775-9178 itsskinny.com
JOYÀ Ruth Elnekave - - (833) 477-7387 thejoyalife.com
Joydays Amy Cohn Los Angeles CA (323) 244-7754 getjoydays.com
Laura's Gourmet Granola Chef Laura Briscoe Tempe AZ (480) 460-2102 laurasgourmet.com
Living Prana, LLC
McCormick Flavor Solutions
Michele's Granola
Ryan Seaman Venice CA (310) 346-6699 livingprana.co
Meredith Wells Hunt Valley MD (410) 527-6448 mccormickflavor.com
Lauren Shafer Timonium MD (410) 350-0021 michelesgranola.com
Mojonnier Bob Green Streetsboro OH (844) 665-6664 mojonnier.com
Monk Fruit Corp.
Mother Murphy's Flavors
Natural Source Sales
Nguyen Coffee Supply, Inc.
Nutty Gourmet
Olyra Foods
OMG! Pretzels
Paul Paslaski Libertyville IL (847) 367-6665 monkfruitcorp.com
Michael Oden Greensboro NC (336) 273-1737 mothermurphys.com
Greg Arz Davis CA (925) 818-7279 naturalsourcesales.com
Sahra Nguyen Brooklyn NY (617) 981-3970 nguyencoffeesupply.com
Tony Varni Hughson CA (209) 448-6105 nutty-gourmet.com
Amanda Varellas New York NY (914) 420-4607 olyrafoods.com
Beth Wilson-Parentice Plymouth Meeting PA - omgpretzels.com
PakTech - Eugene OR (541) 461-5000 PakTech-opi.com
Pastabilities Carey Aron Nashville TN (615) 397-1353 pastashoppe.com
Pizzey Ingredients Mary Ekman Russell - (651) 797-3168 pizzeyingredients.com
Pocas International Allen Chuang South Hackensack NJ (954) 646-7817 pocas.com
POSHI Doruk Karakasoglu New York NY (718) 612-9230 poshi.com
PREVAIL Jerky
Prime Roots
Ashley Kohn Chicago IL (630) 258-4453 prevailjerky.com
Sue Hearn Berkeley CA (415) 290-5554 primeroots.com
PTM Food Don Rodgers Wall Township NJ (888) 736-6339 ptmfood.com
Rich Nuts
SATTVA VIDA INC.
SILVER
SmartSweets
Sofrito Foods LLC
Soom Foods
Sovereign Flavors Inc.
SYNRJE
Sara Shoup Fitzpatrick AL (512) 644-3494 richnuts.com
Karen Lauterstein New York NY (917) 596-4935 sattvavida.com
Seth Silver Los Angeles CA (818) 309-7455 sethsilver.com
Alex Thorne Vancouver CA - smartsweets.com
Fred Schlatter South Elgin IL (312) 371-4770 fillos.com
Julie Ozlek Philadelphia PA (609) 892-7158 soomfoods.com
David Ames Santa Ana CA (714) 437-1996 sovereignflavors.com
Ivy Yahnke San Diego CA (619) 681-4115 synrje.com
The GRO Agency - New York NY (212) 725-6710 thegroagency.com
The New Primal
Treeline Cheesemakers
Tucson Foods
Krista Arnold Excelsior MN (612) 202-6140 thenewprimal.com
Molly Carrera Kingston NY (845) 594-9598 treelinecheese.com
Todd Martin Tucson AZ - tucsontamale.com
TWG Health & Nutrition - Lafayette LA (337) 783-3096 twghealthandnutrition.com
UpClear
Vicinity Software
West Food Brands
Kurt Kaiser New York NY (212) 989-5000 upclear.com
Jamey Kirsch Marietta GA (770) 421-2467 vicinityfood.com
Mario West Ellicott City MD (443) 739-6242 westfoodbrands.net
Shaun White Partners With High West to Protect The West
Three-time Olympic gold medalist and professional snowboarder Shaun White has experienced some of the most exceptional trails, slopes, waves and views the West has to offer. Over the years he’s also witnessed firsthand the impact climate change has had on these places, with rising temperatures and melting snowpacks increasingly posing a threat. High West, the Park Citybased whiskey distillery, is thrilled to announce they’re teaming up with Shaun White to protect and preserve the land they both call home – The West. Together they’ll work to drive awareness of High West’s Protect the West platform, striving to conserve the natural beauty of the West and all that inhabit it so it can be enjoyed by generations to come.
Shaun’s experience growing up on the West Coast shaped his passions, and today his dedication to giving back to the land mirrors that of High West’s. Throughout the partnership, Shaun will lend his voice
to High West’s Protect the West initiative, a commitment of $1 million over three years to organizations dedicated to keeping the West wild and preserving its beauty. The Protect the West platform distributes funding to organizations whose efforts fall into three focus areas: the fight against wildfires, protecting winters and wildland conservation.
“High West is all about seeking out adventure, and there’s no better place to do that than the West,” said Shaun White, five-time Olympian and professional snowboarder. “I was lucky enough to grow up exploring this incredible place, learning to snowboard, skateboard and even mountain bike here, and it’s so important to me that people have the same opportunity I once had. It’s pretty cool to be able to team up with not just my favorite whiskey, but one that shares my same passion for preserving the West.”
“You don’t have to look too far outside the doors of our Saloon or Distillery to
see the West is in danger,” said Daniel Schear, General Manager of High West. “Like Shaun, High West is a team made up of adventurers who appreciate all the West has to offer, which is why the Protect the West initiative hits home for all of us. Our passion for this cause is only growing, and we’re honored to have Shaun’s support in driving more urgency and action.”
A trailblazer in his own craft, Shaun is known for taking risks and facing challenges head on. The High West team approaches whiskey with this same mentality, meticulously sourcing, distilling and blending the best whiskeys to create exceptional bottles. Whether it’s a seasonal release such as Campfire, a new innovation, or the core expressions and Shaun’s go-to whiskeys, High West Double Rye and High West Bourbon, the High West team challenges themselves to over deliver on quality and exceptional taste.
Vita Coco Announces Partnership with Global Superstar Becky G
Ahead of her Landmark U.S. ‘Mi Casa, Tu Casa’ Tour
Leading coconut water company The Vita Coco Company announced in September its partnership with award-winning singer, songwriter, actress and activist Becky G. As the new face of the brand, Becky G, a proudly fierce “advocate for authenticity,” perfectly aligns with Vita Coco’s brand values. Vita Coco has consistently led the way in transparent business practices and authentic brand engagement, all while fueling a diverse range of hydration occasions – from post-workout to hangovers – and being a catalyst for transformative community impact. Vita Coco raises the bar even higher with the announcement of this partnership.
The announcement comes as Becky G embarks on her first headlining ‘Mi Casa, Tu Casa’ tour in the U.S. during Hispanic Heritage Month, Sept. 15 - Oct. 15. To kick off their partnership, Vita Coco will proudly serve as an official sponsor of the tour.
“From our first conversations, it was clear that Becky G was going to be an amazing ambassador and partner for Vita Coco,” said Mike Kirban, co-founder and executive chairman of The Vita Coco Company. “Not only is she someone who is unapologetically herself, she does so while embracing her roots and championing her community – a community that increasingly mirrors the diverse and growing family of Vita Coco drinkers.”
Coconut water, long a staple throughout Latin America and the tropics, was introduced to the mainstream U.S. market nearly 20 years ago by Vita Coco after a chance encounter in a Manhattan
bar. Today, Vita Coco’s portfolio ranges from coconut water to coconut juice and coconut milk, and resonates with a younger, more multicultural consumer base.
“I couldn’t be more excited to welcome Vita Coco as a partner for my first U.S. tour,” said Becky G. “I’m looking forward to working with a brand that encourages being true to yourself, paying it forward and creating fun, memorable experiences for fans. I know their partnership will only add to the intimate ‘Mi Casa, Tu Casa’ experience.”
Both Becky G and Vita Coco share a deep commitment to giving back to the communities that have been instrumental in their respective successes. As an extension of the brand’s social impact program, the Vita Coco Project, they will collaborate on programs aimed specifically at helping to uplift the Latin community in the U.S.
The partnership will also feature a variety of high-impact activations and events around the release of Becky G’s upcoming album Esquinas, as well as engaging cross-platform content and a slew of exclusive coconutty surprises.
Kevin Hart Stars in Gran Coramino Tequila’s “Club Coramino” Brand Campaign
Gran Coramino Tequila launched a new brand campaign with the debut of their anthemic film “Club Coramino,” to celebrate their brand mantra, “Hard Work Tastes Different”. The ultra-premium tequila brand launched in 2022, founded by comedian, entertainer, and businessman Kevin Hart and 11th generation tequila producer Juan Domingo Beckmann, and created with Global Brand Equities and Proximo Spirits.
“Hard Work Tastes Different” celebrates the ethos that Kevin Hart follows and mirrors his widely known position as the “Hardest Working Man in Hollywood.” Gran Coramino was born from two creators at the top of their craft, joining together to create a Cristalino and Añejo tequila where their hard work is evident in every delicious sip.
“I live by the Gran Coramino value that ‘Hard Work Tastes Different’ and challenged my team to show that in the most epic way possible in our first brand campaign,” said Kevin Hart. “The ‘Club Coramino’ film not only pays tribute to all the hard work that has gone into crafting and supporting Gran Coramino Tequila, but it is a reminder to everyone to celebrate our shared hard work and our resulting achievements.”
The campaign pays tribute to the cinematic style of Goodfellas with an homage to one of the most complex scenes ever shot in cinematic history – the iconic one-shot date scene. The film stars Kevin and his wife Eniko Hart on their own date night, also features a surprise cameo from Michael Imperioli.
To bring this vision to life, Gran Coramino teamed up with director Sam Washington and Hartbeat, Hart’s global, multi-platform entertainment company. The creative and production for the Club Coramino anthemic film was led by PULSE, Hartbeat’s branded entertainment studio and marketing consultancy. Their shared vision for the campaign was to be aspirational, authentic, and inclusive – just like Gran Coramino. To shoot this difficult scene, they paid tribute to legendary clubs, by creating a sleek and exclusive nightclub named “Club Coramino.” While working alongside distinguished cinematographer Federico Cantini, the team were able to successfully pay homage to the past in a creative modern way.
“I was honored to take on the challenge when Gran Coramino and Hartbeat contacted me about this iconic project,” said Sam Washington. “Working with a comedy genius such as Kevin and a seasoned actor like Michael was incredibly exciting, but most importantly, I wanted to create a space and give them a working environment to do what they do best. While we wanted to fold comedy into this campaign, the challenge was to ensure that it aligned with the brand and the script in hand. It was an intricate scene to capture but we accomplished it through hard work.”
The “Club Coramino” anthemic film debuted a few days prior to Labor Day Weekend, a holiday that historically has celebrated the country’s dedication to hard work. People can watch the campaign film on Gran Coramino’s YouTube and GranCoramino.com.
HOP WTR and Pacifico Announce Joint Retail and Online Marketing Campaign
The Fall season is set to get more refreshing as HOP WTR, the non-alcoholic sparkling hop water brand, announces a partnership with Pacifico, a Mexican pilsner-style lager. The two brands will launch a cobranded marketing campaign including a joint instore rebate, exclusive merch, and a social media collaboration in an effort to embrace drinkers who are looking for beverages fit for all of their adventures.
How consumers drink alcoholic beverages is changing: 58% of consumers report switching between no/ low and full-strength alcoholic beverages during the same occasion to space out and enjoy drinking and embrace healthier lifestyles.¹ HOP WTR and Pacifico are leveraging these insights to create a national cobranded marketing campaign that appeals to the consumer who lives an active, healthy lifestyle but still wants to cheers to adventure with an ice cold beer.
“We’re thrilled to announce our partnership with HOP WTR and to come together to offer consumers a delicious pairing, perfect for their fall adventures,” said Ryan Anderson, Senior Director, Brand Marketing for Pacifico. “Through this collab, we’re excited to be involved with the on-trend brand of HOP WTR to give consumers more options when they’re packing their coolers.”
HOP WTR’s non-alcoholic formula, which contains zero calories, carbs, or sugar, is crafted with a blend of brewer-approved hops to evoke the flavor from your favorite beer and functional ingredients like ashwagandha and L-Theanine. When enjoyed alongside the crisp pilsner-style lager of Pacifico, it’s easier than ever to moderate your intake, stay active and celebrate all of life’s adventures.
“HOP WTR’s collaboration with Pacifico was a nobrainer; both of our brands are focused on that active, outdoorsy lifestyle and with so many consumers looking to moderate their alcohol intake, we’re giving them the chance to enjoy the bold flavor of a Pacifico along with a hydrating HOP WTR so they feel their best, no matter where their adventure may take them,” said Jordan Bass, HOP WTR Co-Founder and CEO.
The co-branded campaign will span across retail and social with in-store sampling and displays, a full social media campaign and national joint rebate offer where fans can save $5.00 on a combined purchase of any HOP WTR product and Pacifico 12-pack or larger. In addition, Pacifico and HOP WTR will be dropping limited edition merch, which will be on sale at hopwtr.com for a limited time only with proceeds donated to the Hawai’i Community Foundation’s Maui Strong Fund to provide rapid response resources to the local community affected by the wildfires.