Beer Marketer's Insights
Inko’s White Tea booth was displaying matcha powdered sticks offered under 7-year-old Jade Monk brand, in Simply Matcha version and Cranberry Blood Orange, Palau Peach and Lime Blossom flavors. They can be mixed with both hot or cold water and contain 20 mg of caffeine and chicory root fiber for gut health benefit. Given rollup strategy of Inko’s owner Kevin Kotecki, who also has picked up Blue Buddha ayurvedic bev brand, the presence suggested acquisition may be at hand, but sales chief Mike Montee said co only is managing Jade Monk for now, helping with strategic moves including possible move into CBD .
Chicago-based Tiesta Tea has lined up Dora’s Naturals as NY distributor, as it makes plans this month to enter city’s Walgreens/Duane Reade chain with new bottled line. To date, fast-growing purveyor of loose leaf and RTD teas has only counted foodservice specialist Sysco as distribution partner in NY. Meanwhile, co also has lined up Glunz as DSD partner in Chicago for collaborative TeaBrew it’s developed with Shipyard Brewing, as unveiled at Fancy Food Show a few weeks back (BBI, Jan 16). Moves come as co founded by Dan Klein and Patrick Tannous – buddies going back to their toddler days – was subject of absorbing profile in Entrepreneur that detailed trajectory that has sent revenues from $1.9 mil in 2014 to $7.8 mil last year, with investor roster that’s included Jimmy John Liautaud, founder of Jimmy John’s sub chain. The friends got tea bug at Czech teahouse while on vacation in Europe during college years, and worked connection of HS friend whose cousin is founder of World Tea Expo to get started, enlisting Liautaud as investor early on. Premise was to demystify tea by naming various entries by functional names like Slenderizer and Relaxer and flavor names like Fruity Pebbles and Blueberry Wild Child. Partners credited the failed Teavana tea shop line acquired by Starbucks with doing much to build awareness of tea for them to build upon. Story can be read here.
EXPO WEST: Verve Sets Roastery in DTLA; Showcases ‘Flash-Brewed’ RTDs; Teases HPP Latte Line
Verve Coffee Roasters showcased new line of nitro-infused “Flash Brew” canned coffees while teasing functional plant-based HPPed lattes that are still in the works and building anticipation for roastery opening this spring in booming foodie mecca that downtown LA has become.
The new roastery, slated to open in early May, will be located on Mateo St, in bldg where scenes from Anchorman movie were filmed and next door to hot restaurant Bavel DTLA. Striking design from local shop called Design Bitches attempts to make statement, in keeping with co’s view that “we only build flagship cafes,” in words of natl wholesale sales mgr Matt Clevenger, a vet of apparel cos like Quiksilver as well as Rockstar Energy.
Verve, named by its musician founders for legendary jazz label, was founded in Santa Cruz, Calif, in 2007 and currently operates 12 cafes in NorCal, LA and Japan, with 2 more on the way. The new roastery is viewed as a brand-building experience offering mocktails and sophisticated cuisine via recently hired executive chef as well as coffee training lab. In small world of coffee, the roastery is just a few blocks from massive unit recently opened by Califia Farms, whose coffee mgr Brian Lovejoy is a former Verve exec (BBI, Oct 16 and Dec 18).
At Expo West, Verve unveiled suite of “flash brewed” RTDs that are avowedly not cold-brewed: they use proprietary hot-brewing process, then are flash-chilled and nitrogenated, said sales chief Jordan Schulman, former Vita Coco exec who came over 7 months ago from Santa Cruz-based LifeAid Beverages. The idea, he said, is not to dull down the complex array of flavors attained via hot-brewing, opting instead for precise, craft-brewed approach. The line priced at $3.99 initially went out to Verve stores in Nov in The Original flavor employing blend of 75% Ethiopian and 25% Colombian beans (BBI, Nov 2). That entry now is heading out to retail, joined by citrusy Kenya Giakanja, riffing off popular single-origin brewed in stores, and Vancouver Decaf, which uses Swiss water process and would have to be among first decaf nitros out in market. The RTDs have been quickly picked up by Bristol Farms, Gelson’s, Lazy Acres, New Leaf and Molly Stone’s, Jordan reported.
Next up on innovation front will be suite of plant-based lattes using sprouted almonds and likely some amount of hemp, with sea salt and dates as sweetener. Since the lines use high-pressure processing (HPP), they’ll be out in 9-oz straightwall plastic bottles priced at $4.99. Tho development is ongoing, co was pouring core latte entry along with unusual blend of matcha green tea and coffee, golden turmeric entry melded with ginger and black pepper, and cacao mocha entry fortified with chaga mushrooms and maca root.
Verve is working influencer circuit to get word out. Facebook founder Mark Zuckerberg, who has a home in Santa Cruz, took enough of a liking to co to open café inside FB hq. Brand has built big biz on corporate campuses operated by likes of Google and Netflix. It stokes influencer interest by hosting parties at cos like Uber and will be working Coachella Music Fest with its flash-brews. By now it has 150K Instagram followers.
New Barn, known for offering handful of organic almondmilk items, unveiled barrage of product and packaging innovation as it pivots to being broader “almond platform brand,” positioned as offering “fewer, cleaner, simpler, organic ingredients,” per its new tagline. It’s changed moniker from The New Barn to New Barn Organics and unleashed bevy of new products at Expo, many of them in entirely new categories for Bay Area-based co. “Here we are, a platform brand overnight,” marveled Honest Tea vet Melanie Knitzer, who came aboard recently as vp sales East, along with her former colleague there, Becca Ray, handling western-region sales (BBI, Jan 29). “Tuesday we were an almondmilk company.”
New Barn ceo Todd Robb – son of former Whole Foods chief Walter Robb - has been on a hiring binge to support broadening of portfolio since bringing in $3.75 mil a year ago via a special purpose vehicle called New Food SPV that includes several New Barn principals, including Robb, who founded co 5 years ago with former KeVita exec Billie Thein. New Barn already can claim to have had significant impact in plant-milk space by prompting larger, more established players to drop gums and stabilizers as ingredients. At time of raise, it promised robust innovation pipeline, and there was no question it delivered at Expo.
Among key hires, New Barn brought in former Honest Tea sales exec Rick Tidrow as vp sales last Oct, and he promptly recruited Knitzer and Ray. Darlene Scherer, a cofounder of Brooklyn’s third-wave coffee pioneer Gorilla Coffee, has come aboard as innovation vp, helping with extensions into hummus and butter spaces. The co also enlisted Presence Marketing on Mar 1, replacing more fragmented broker network.
On packaging front, New Barn has adopted Evergreen’s plant-based PlantCarton comprised of 97% renewable material produced with 60% sustainable energy – a move that immediately pulled 80% of the plastic out of the company, at a time that plastic use seems to be emerging as an issue. What was 28-oz plastic bottle has now become 32-oz PlantCarton, with its fluid milks moving from 3 sku’s to 8 comprised of Creamy Original, Unsweetened Almondmilk and Barista Almondmilk augmented by Toasted Coconut Almondmilk, Unsweetened Coconutmilk, Cold Brew Coffee, Unsweetened Vanilla Almondmilk and Chocolate Almondmilk. SRP has stayed the same, despite larger size and upgraded pack. The 59-oz family size also has cut over to new pkg format in 3 sku’s.
Also being poured were quartet of organic non-dairy creamers made from almondmilk and coconut cream, in Unsweetened, Vanilla, Mocha and Caramel flavors. Outside bevs it was sampling 4-flavor AlmondCreme ice-cream-like desserts, 5-flavor Organic Almond Dips and Organic Buttery Spread. While almondmilk continues to play key role, it’s by no means in every product these days.
And to get its stepped-up ecommerce off on good foot, it launched co’s first ambient item, Single Origin Coffee, black-coffee entry in fully compostable teabag-style format.
As another sign of resolute path New Barn is taking, it seems to be among the few altdairy players not rushing into oatmilk segment, with nothing currently in the works.
Coconut water leader Vita Coco was pushing recently launched canned Vita Coco Sparkling line along with “pressed coconut” extensions that incorporate pieces of fresh-pressed coconut for more luxuriant mouthfeel, while also teasing potential CBD entry.
A few months in, Vita Coco was citing 12-week IRI data showing its bottled version of Pressed Coconut is highest-velocity flavor in c-stores, the channel for which the half-liter straightwall bottles were devised. Overall, the bottled line, also out in Original and Pineapple Coconut flavors, none of them from concentrate, has boosted co’s 7-Eleven sales by 35%, co claims. By now, Vita Coco has extended shelf life to a full year.
The sparkling extension, in 12-oz slim cans in Grapefruit, Lemon Ginger, Pineapple Passionfruit and Raspberry Lime flavors, represent overt assault on CSDs, while also offering format that’s more congenial than Tetra Paks for its distribution allies at Keurig Dr Pepper. They just hit market on Feb 1.
As for the CBD, BBI spotted a trio of mockups on rear shelf at one corner of large display area, in conventional 12-oz cans in Cardamom Lemon, Ginger Apple and Cloved Orange flavors, labeled as containing 20 mg of full-spectrum CBD. (The front label didn’t shy away from describing contents as CBD-infused, rather than just saying hemp.) However, booth staffer wasn’t able to offer much on how certain it is to launch, at what price, in what time frame and whether it was an item that the KDP network would have an interest in distributing.
Coca-Cola offered extensive suite of innovation at Expo, unleashing its individual operating units to create new items that sometimes spill over into terrain already worked by corporate siblings. Among noteworthy highlights were kombucha/smoothie hybrid called Odwalla Smoobucha, Simply-branded Smoothies and Zico Coco-Refresh refreshment line.
Odwalla Smoobucha incorporates fruit/veggie blends, pasteurized kombucha and addition of 500 mil cfu’s of probiotics in Citrus & Guava, Berry & Ginger and Apple & Greens flavors, packed in 15.2-oz bottles priced at $2.99. The entries clock in at fewer calories than core Odwalla juices and offer added functionality without exacting price premium. Line somewhat impinges on turf worked by Coke-aligned Suja co, but Suja exec encountered at sampling truck outside halls said co had no role in devising Smoobucha, in contrast to its partnership with Coke’s Zico unit on last year’s CocoLixir cold-pressed juice/coconut water hybrid line. Also entering mix at Odwalla are pair of seasonal items due this month for 6-month run: jalapeno-infused Hot Tropics and Mint to Be Berry.
At Simply, the news was Simply 100% Real Fruit Smoothies, out in brand’s distinctive carafe shape in 11.5-oz single-serve bottles containing less than 200 calories as well as 32-oz multiserves. The not-from-concentrate line, which overlaps with some Odwalla consumption occasions, debuts in Orchard Berry, Strawberry Banana and Mango Pineapple flavors. Smoothies joins expanding group of families under Simply banner including Simply Orange, Simply Ades, Simply Juice Drinks and Simply Light.
Zico coconut water brand is combining hydration with refreshment with new line of bottled Zico Coco-Refresh entries, flagged on top of front panel as “alkaline pH 7.5+.” So it represents another foray into alkaline water space after intro of higher-pH addition to Smartwater lineup last fall (BBI, Oct 9). Coco-Refresh, packed in half-liter plastic bottles, contains just 10% not-from-concentrate coconut water and comes in at only 2 g of sugar (10 calories) per bottle thanks to erythritol/stevia sweetener combo, in Crisp Coconut, Sweet Mango, Cool Watermelon, Sunny Pineapple and Ripe Strawberry flavors. It’s produced in Thailand and goes out at $1.99. It’s initially being regionally targeted to Northeast, where Shoprite chain has picked it up via Liberty Coca-Cola bottler, and Northern Calif, where Albertsons/Safeway is running with it, but also is viewed as holding high potential in foodservice and on-premise space.
Zico also is venturing into burgeoning plant protein space with chocolate-flavored Coconut Water with Plant Protein containing 12 g of coconut and pea-based protein at only 220 calories per half-liter plastic bottle, thanks to sweetener combo of cane sugar and stevia. That will be aggressively priced at $2.49-2.69. Meanwhile, Zico’s CocoLixir refrigerated entry has expanded to 6 flavors; by now, it’s gone national within Kroger chain.
VPX Sports has been rejected in its effort to reclaim key patent behind Bang Energy that was nullified by US Patent & Trade Office after rival group ThermoLife showed that it holds similar IP for water-soluble creatine. Reexamination before Patent Trial & Appeal Board resulted in rejection of most claims by VPX, with decision apparently mailed out last Tues. VPX has chance now to appeal to next level, federal circuit. As reported, VPX has been sued by Thermolife, which holds patents owned by Russian group and has in turn licensed them for use by Bang rival C4. It’s among several legal actions VPX has been contesting, including suit over claims by Monster Beverage and several class action lawsuits.
Riding growth in fountain biz among indie accounts, Jones Soda nudged its topline up 5% to $2.3 mil in Q4, as it continues to wrestle with conundrum of eking out growth while reducing losses. For qtr, net loss came in at $822K, about even with year-earlier loss of $808K. For full year, tho, revenues for Seattle-based co were down 5% to $12.6 mil and net loss widened to $2.1 mil from $1.3 mil. In Q4, revenues got a boost from 179% increase in fountain sales, tho JSDA hasn’t yet cracked any major restaurant chains, a major strategic goal in recent years. Its glass-bottle line enjoyed 5% lift, but another key priority, partnership with 7-Eleven on 7-Select controlled line, suffered 18% decline. Jennifer Cue, ceo, said new year has started off on good foot with Jones Ginger Beer intro and addition of 2 sugar-free options to glass-bottle line. “As customer preferences continue to evolve towards craft and premium sodas, we believe we have powerful brands and the necessary distribution to capitalize on this growth in 2019 and beyond.”
Be Well Nutrition is segmenting its Iconic line of protein shakes into core grass-fed line and new “Plus” line of more broadly nutritious shakes, even as it builds out mgmt team with addition of Emily Stubler as marketing dir, fresh from 2-year run as associate marketing mgr at PepsiCo on mother brand there.
Tho they’re still a work in progress, Iconic debuted Plus line of Cacao + Greens, Turmeric + Ginger and Coconut + Matcha items for consumers who prefer “a little more from their protein,” in words of founder Billy Bosch. Idea, he added, is to innovate not just in flavors but in functionality. Thus, Cacao + Greens offers same 20 g of grass-fed protein as core line but also 150 mg of antioxidant polyphenols from unroasted cacao, full serving of veggies from kale, broccoli and spinach, and just 1 g of sugar thanks to sweetener blend of stevia and monk fruit. The new line, in 11.5-oz bottles, will go out at $1 premium to core line, at $3.99.
Also on view at Expo West booth was resuscitated 4-packs of 11-oz resealable Tetra Packs, which were heading into 900 doors of Target chain this week after winning presence at HEB and Wegmans chains. Those go out at $11.99 in Chocolate Truffle, Café Latte and Vanilla Bean flavors. And demand is building for zero-sugar 1-lb powder packs that can be deployed in pancakes, baked items and smoothies. HEB and its Central Market natural foods banner and Amazon are among those that have taken the line, sweetened with bit of monk fruit and available in Purely Unflavored, Vanilla Bean and Chocolate Truffle flavors. “Grass fed goodness” is brand’s slogan.
Stubler joins staff that’s grown to 18 – modest figure for co servicing 7K retail doors well enough to claim to be top-selling protein at chains like Sprouts, Wegmans and HEB. Tho Be Well Nutrition counts KarpReilly among its backers, Billy said he aims to operate efficiently enough not to have to bring in any more outside money than absolutely needed. So while adding DSD distribution partners is tempting, he’s willing to take his time, better exploiting existing channels before making move. Co has brought on Coremark to service c-store and foodservice channel.
High Brew Coffee did a bit of tinkering with its core line and added bunch of new sku’s, including an indulgent but vegan line of shelf-stable Lattes in 3 flavors and refrigerated cold-brew concentrate version of its black coffee.
Due in Apr from Austin-based cold-brew player is shelf-stable line of indulgent dairy-free Lattes that use combo of cashew and coconut milk to offer lush vegan consumption experience without breaking the calorie bank. The line packed in 8-oz cans is debuting in Toasted Coconut, Bourbon Vanilla and Smoked Butterscotch flavors, at 100 calories (9 g of sugar). It’s line priced with core 8-oz line, which saw the Black & Bold flavor take out the single gram of sugar it contained to go totally unsweetened. “No sugar,” front panel declares. So a few years into brand’s life, it’s finally offering an uncut cold-brew experience. As shelf-stable items, the new line is able to clamber aboard the trucks of Keurig Dr Pepper, which is investor in co.
And now High Brew will be entering the concentrate segment, reversing order of rivals like Chameleon and Kohana that started with concentrates before entering RTD segment. The 32-oz glass-bottle entry is being offered in Black & Bold rendition, with view to not losing consumption occasions among users who like to customize their drinks, said cmo Mari Johnson. As a refrigerated item not suited to KDP system, it joins existing line of 32-oz RTD recipes that need to take alternate route to retail. Also in portfolio is shelf-stable 12-oz sparkling line that’s still in test, at time other cold-brew players have pulled back on sparkling entries.
All the Expo West activity comes as High Brew is gearing up for South by Southwest fest in Austin, where it will deploy a Roadie Lounge to offer succor to the legions who allow the show to go on, teaming with Brooklyn Bowl/Capitol Theater on some events and offering cold-brewed floats from old-fashioned coffee truck at Yeti showcase. Idea this year is to focus on fewer activations but go deeper with them, in brand’s continuing quest to support energetic legions of “those who do.”

