Beer Marketer's Insights
DISTRIBUTION: C4 Energy Enters Costco
Nutrabolt's C4 fitness-energy drink has entered Costco chain via 4-flavor, 18-can mixed pack hitting shelves in 200 locations. Included in pack are zero-sugar brand's Original, Frozen Bombsicle, Orange Slice and Twisted Limeade flavors, in its distinctive yellow-colored 16-oz cans.
At MatchaBar, it may not all be about the hustle, but it's about to be much more about the hustle. That's because Brooklyn-based marketer of RTD matcha is on brink of significant rebranding of its 12-oz slim-can line, previously emblazoned with prominent call to action that "Good things come to those who hustle." Now that will be the actual brand name, as MatchaBar gets ready to unveil Hustle Energy and Hustle Tea sublines that take hefty, plant-based caffeine payload in more overtly energy-like direction. Cofounders Graham and Max Fortgang said investors Billie Eilish and Diplo were instrumental in setting new direction, working with agency Jones Knowles Ritchie. The new line is going live this week and entering such retail partners as Sprout's, Wegmans, Whole Foods and 1,500 CVS stores.
Seeking patient capital, Califia Farms has proved willing to scour the globe: it's just pulled in massive $225 mil Series D financing led by sovereign wealth fund of Qatar, with participation from capital sources in Singapore, Hong Kong, Latin America and Canada. Is that enough continents for you? Latest round offers ample runway for LA-based maker of plant-based food/bevs and coffee to fill void left by rapidly declining dairy biz and to democratize cold-brewed coffee while contending with deep resources and global reach of rivals like Nestle, Danone and Starbucks. The raise reflects "my own efforts to build a company that can last as long as possible on an independent footing," said co-founder/ceo Greg Steltenpohl, who earlier launched Odwalla juice brand, which exited to Coca-Cola, and Adina, which foundered after dispiriting run in which founder lost control to mix of other investors. As Califia Farms finds itself increasingly in contention with multinational rivals, "we had to figure out a different way to do it," he said. New raise brings total funds invested in Califia Farms well beyond $300 mil over course of nearly a decade.
Basemakers, the in-store field sales & merchandising co launched by youthful entrepreneur Max Baumann, has expanded now to 13 US metros, launched a sales mgmt arm called Strike Force in NY and is mapping out ways to integrate its in-store strengths with brands' increasing need to play adeptly in DTC/digital space.
Packaging supplier Zuckerman Honickman said it's partnered with Pulp Packaging Int'l to bring into its portfolio its biodegradable bottle produced from environmentally sustainable materials, primarily molded pulp. The product resulting from Pulp Pak's patented process represents up to 90% reduction in plastic now, with 100% reduction in sights for future, Zuckerman Honickman said. It will serve as exclusive supplier of Pulp Pak's biodegradable packaging. "After looking at many opportunities, we felt that Pulp Pak offers us the most viable option as an alternative to PET," said ZH prexy Michael Zuckerman.
Fairlife LLC is joining the rush into reinvigorated creamer category with 4-flavor 16-oz line that employs the co's trademark ultrafiltration to cut the sugar and eliminate lactose. Line priced at $2.99 debuts in Hazelnut, Caramel, Vanilla and Sweet Cream flavors, all formulated with just a hint of flavor, aiming at consumers who're drinking better coffee these days want to enhance rather than cover up their roasts' flavor, per cmo Bill Kelly. They eschew artificial flavors and sweeteners, with just 5 ingredients on label: non-fat ultrafiltered milk, cream, 3 g of sugar per tablespoon, natural flavors and lactase enzyme. Recall that minority investor Coca-Cola just took full ownership of Fairlife, pledging hands-off oversight so as not to inhibit Chicago-based co's agility (BBI, Jan 3) . . . Ocean Spray is continuing its recent frenzy of innovation with release of a pair of superfruit-meets-cold-brew entries that were teased at NACS c-store show last fall. Called simply Ocean Spray Brew, new line melds Colombian coffee with fruit juice, initially in Cranberry Lemonade with Cold Brew Coffee and Cranberry Blueberry with Cold Brew Coffee, with view to offering energy lift with health benefits, per chief global innovation officer Rizal Hamdallah, the self-professed "futurist" who's been shaking up grower's co-op since arrival last May. (He'd spent most of career at SC Johnson but also spent coupla years running Tyson Foods' innovation lab and launched app called GetBetty that brings stylists to consumers' homes.) Brew breaks this month at Target, Stop & Shop, Shaw's, Albertsons, Vons and Safeway. Operating out of WeWork space in Boston, Ocean Spray innovation team has added such entries as Atoka herbal line as it seeks to boost relevance of venerable growers group.
Female-targeted hydration brand Roar Organic has filled out another key slot, enlisting former Chef's Cut, Popchips and Vitaminwater exec Mark Nino as vp of sales at NY-based co. He joins team that includes founder/ceo Roly Nesi and another former Vitaminwater exec, Eric Berniker, who came aboard a year ago as cmo. "As we have worked to build and structure the perfect team from top to bottom over the last 12 months, we felt the one key missing component was a great sales leader," Nesi said. Roar has gone aggressively after female millennials via digital campaign dubbed Roar Models that enlists overachieving role models to convey brand message . . . Big cannaplayer Tilray fortified its c-suite with addition of ex-Revlon exec Jon Levin as coo and ex-Molson Coors exec Michael Kruteck as cfo. They report to ceo Brendan Kennedy. Current cfo Mark Castaneda, who came on in Mar 2018 and managed IPO process, slides over to biz development role. Tilray is aligned with Anheuser-Busch InBev on bev side . . . Ron Allen, former Delta Airlines ceo who's sat on Coca-Cola board since 1991, has decided not to stand for reelection this Apr, KO announced. He's currently 78 . . . Miami-based Lakewood Organic, whose glass-bottle organic juices are a familiar fixture of natural and specialty grocers, has elevated supply chain vp Leticia Baca to prexy, reporting to chmn/ceo Scott Fuhrman. She also takes a board seat.
CBD brand Recess, which has turned heads with lifestyle-saturated brand-building approach for its hemp-based entry, has brought aboard as chief sales officer a 25-year bev vet who's played key roles in igniting Vitaminwater and Essentia Water brands: Mike Sharman. Mike exits a 5-year run at fast-growing Essentia to enter segment, via Recess brand and its founder Ben Witte, that "reminds me of Vitaminwater in the Mike Repole days," he told BBI in brief conversation this morning, referring to hands-on exec who worked alongside Vitaminwater creator Darius Bikoff to build Vitaminwater juggernaut en route to eventual $4.1 bil exit to Coca-Cola. Tho Essentia continues to rack up big sales gains among loyal cadre of users as it puts out feelers toward exit, Sharman joked that he was the kind of kid who "loved building treehouses, not playing in them" and relishes the earlier stages of getting a new brand to ignite.
Seeking a piece of flourishing spirits-based RTD cocktail space, former Gallo engineer named Eric Knight has been building out his non-alc version under name Spirity, using tea-based spirit crafted via process he created on backyard pot still. Brand is available so far in Mindful Negroni, Mindful Apricot Sour, Mindful Margarita and Mindful Mule renditions packed in 8.45-oz cans priced at $17.99 per 4-pk. They're identified as being less than 0.5% ABV. "We are NOT a mocktail!' screams website. "Our cocktails are made with REAL, non-alcoholic spirits that are distilled from TEA!" Tho only sold online to date, concept has proved out well enough to support move to retail next year, with crowdfund platform indicating that co has sold $630K so far to 16K consumers in all 50 states, with 53% deriving from repeat customers. Line is positioned as a non-alc take on the classic cocktail.
The 15-year PepsiCo vet Stuart Beck has signed on as cmo of meal replacement brand Soylent. Since leaving PEP in Aug 2020, Dallas-based exec has served as cmo for Freeland Foods' Go Raw sprouted superfoods brand . . . OMAC Beverage Advisors has hired former Anheuser-Busch exec Adam Bush as managing director. Adam left A-B after a decade, including roles as sr director of wholesale development (working on A-B distrib deals, succession planning and more). He more recently served as head of Beyond Beer development. OMAC has closed over 80 transactions totaling over $2.7 bil, per its website, including representing RNDC in purchase of White Mountain Bev (Alaska A-B); representing Brown Dist in its sale to Southern Eagle and Specialty Division to Reyes; and B&B in its sale to Atlanta Bev . . . Tyler Ricks, who's serving as prexy of Super Coffee and has boasted numerous investments and board seats over the years, has taken board seat at functional shot marketer KOS Naturals . . . In wake of abrupt departure of Bill Juarez, who'd long run day-to-day there, Congo Brands has elevated Sam Wilson to evp from svp for sales & distribution. The ex-Red Bull and Bang exec had just been recruited by Juarez from Sway Energy this past Jun. Congo has aligned with range of influencers to market brands like Alani Nu Energy, Prime Hydration and 3D Energy.