BevNET Magazine January/February 2020

JANUARY-FEBRUARY 2020

PARTY OF ONE Premium RTDs Raise the Bar

2020 CANNABIS FOOD AND BEVERAGE GUIDE

FLAVORS & TRENDS

COLD BREW GROWS

WINTER SHOW WRAPUP

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Contents / January – February 2020 / Volume 18 / No. 1

CANNABIS FOOD AND BEVERAGE GUIDE • 2020

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COLUMNS

FEATURES

4 First Drop The Highest, Best Use Standard

32 Coffee Cold Brew Gets Functional

6 Publisher’s Toast The Energy to Soar

42 Flavors and Ingredients What 2020 Will Bring

24 Gerry’s Insights Warming to the Cold Chain

48 Spirits and Mixers Spirited RTDs Start to Grow

SHOW COVERAGE

DEPARTMENTS 8 Bevscape/NOSHscape/Brewscape Dairies Go Down While Olipop Raises; Pepsi Buys Popcorners; White Claw Extends its Reach

52 BevNET’s Winter Events Review 58 Natural Products Expo West Preview

16 New Products Gatorade Gets Energized; Zevia Seeks Kidz

SPECIAL SECTION

20 Channel Check Innovation in Green Juice

62 Cannabis Guide with services and suppliers

82 Promo Parade Recovery Via Vita Coco

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THE FIRST DROP

BY JEFFREY KLINEMAN

The Highest, Best Use Standard I’m no homebrewer, but I’ve had the good fortune to have sampled the products of some great amateurs -- some of which I’d suggest compares with great beer that’s on the market right now (like my man Chad’s mead -- so good!). I’m no barista -- hell, I’m not even a constant Latte Instagrammer like BevNET CMO Mike Schneider -- but my own cold brew is mighty tasty. I’d never make kombucha at home, but my friend Joel recently unveiled some kind of monster brew that has many of Atlanta’s home chefs circling his house for free tastes. I’ve got a Sodastream to make seltzer and a not-bad recipe for sun tea as well. I’ve also, on many occasions, made Greyhounds using

always serve the founders who come into that pack late in the game.

The fact is, this ain’t easy, and a lot of dollars and days have been burned by trying to draft off others’ success. And while capitalism should allow everyone equal access to compete, there’s nothing more frustrating than watching a massive game of follow-the-leader.

Maybe it’s just that producing beverages is getting to be too easy. The fact is, the higher the barrier to entry, the more difficult it is to develop a competitive set -- so which even early products can be revelatory. Certainly, the growth of coconut water or HPP juice were both made more cash intensive due to the difficulty of cre-

idea of local or regional companies in those categories trying to cement a foothold in the economy by extending their brands into different formats: brewers, coffee companies, kombucha brands, even juice bars have long been able to serve a local constituency based on freshness, and the lack of national brands allowed them to grow in separate geographic pockets for a long time. The freshness attribute also served to push consumers toward onpremise consumption even as companies started to consider canning or bottling options. Here’s where the idea that there are more than 7,000 craft breweries starts to become too much of a blanket statement; about 5,000 of them are focused

my own fresh squeezed grapefruit juice.

All this, and yet I have zero plans to turn pro.

Still, I’m starting to think this amateur status is an anomaly. So many of the brands we see these days seem to emerge, at least in their founding stories, from kitchen tinkering or from an idea encouraged by friends or some riff on a grandmother’s recipe. It’s strange, though: I could swear that a good subset of those brands also seem to evolve just when a grandmother’s old kitchen formula happens to correlate with an emerging beverage category that’s attracting a little bit of investment.

As more money has flowed into the CPG sector, the emergence of successful, emerging brands in new product categories has, at times, led to a contagion of knockoffs; that’s something we saw in the energy drink category, the enhanced water category, and are now seeing in many of the other products I mentioned.

The leader’s success creates its own chase pack -- and that’s a situation that doesn’t

ating a decent supply chain, but they took the world by storm with their originality.

When you’re dealing with infrastructure challenges, there’s a natural gate around a category that can allow for a series of brands to gradually build share and differentiate. That’s why you see something like a Harmless Harvest or a La Colombe able to get creative even as second-wave brands in categories that have long left the gate -- they bring something creative to the table that broadens the category.

But there’s a different set of competitive dynamics for purely water-based, off-theshelf ingredient products with shiny labels and names made distinctive only by their lack of vwls. When there’s a low barrier to entry, it’s wise to think about the necessity of a particular product (beyond any shipping efficiencies that may come without vwls weighing things down.) Even for artisan products like Cold Brew and Kombucha, the move into CPG needs to serve a strategic purpose, because there are a lot of brands in the pool already.

That doesn’t mean I’m down on the

exclusively on serving on-premise. (Imagine if we started to regard coffee shops as potential CPG production entities -- that would put the Brewers Association to shame, for sure.)

But information travels faster these days, and one brand’s success is another brand’s motivation, even for newer product types. The smell of the next big thing continues to create a million takes on lazy manufacturing: we’ve seen the same set of stock ingredients reskinned dozens of times, on dozens of products. That doesn’t mean that no one appreciates an original take, or a higher end, or a bargain. It just means that people don’t like being sold a bill of goods that a new product is different when it really isn’t. When that bill comes due, brands tend to go out of business, unfortunately. So think carefully, whether you’re starting a new brand or even extending a different one into a new category: does the world really need this?

And if it does, how long are you willing to stick with the premise until consumers figure that out?

4 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020 2018

Photo by Samara Doole on Unsplash

PUBLISHER’S TOAST

BY BARRY NATHANSON

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www.bevnet.com/magazine Barry J. Nathanson PUBLISHER bnathanson@bevnet.com Jeffrey Klineman EDITOR-IN-CHIEF jklineman@bevnet.com Martín Caballero MANAGING EDITOR mcaballero@bevnet.com Ray Latif CONTRIBUTING EDITOR rlatif@bevnet.com Brad Avery REPORTER bavery@bevnet.com Beth Kaiserman REPORTER bkaiserman@bevnet.com Jessica Infante REPORTER jinfante@bevnet.com Justin Kendall EDITOR, BREWBOUND jkendall@bevnet.com Carol Ortenberg EDITOR, NOSH cortenberg@bevnet.com Erin Cabrey EDITORIAL ASSISTANT ecabrey@bevnet.com

SALES

John McKenna DIRECTOR OF SALES jmckenna@bevnet.com Adam Stern SENIOR ACCOUNT SPECIALIST astern@bevnet.com John Fischer ACCOUNT SPECIALIST jfischer@bevnet.com Jon Landis SENIOR BRAND SPECIALIST jlandis@bevnet.com Kwaku Adu-Gyamfi SALES & MARKETING ADMIN kadugyamfi@bevnet.com

The Energy to Soar I want to talk about BevNET Live.

We just completed yet another event, this time with over 850 people in attendance.

It was staggering. What started as an idea a little more than a decade ago has morphed into the most powerful assembly of beverage people each year. When we launched our event series, 250 attendees was our goal. It felt like a lofty one at the time, but we skyrocketed past that after our first year. Apparently, we struck a nerve with our intent, which has always been to bring together the minds of the innovators, entrepreneurs and gatekeepers in our community for a non-hierarchical series of conversations, presentations, and networking.

The reason for the success, while giving kudos to the entire BevNET team for executing the conference, isn’t us, however: it’s the vibrant assemblage of marketers, suppliers, distributors, wholesalers, investors and retailers who work so hard in the beverage space. Over the course of what is now 29 years of chronicling the beverage arena, I have never ceased to be amazed at the creativity and passion that come from so many brand launches.

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ART & PRODUCTION

I probably have seen well over 20,000 brands take their shot at success. More than 80% of the brands we see won’t last more than five years, yet they just keep on coming. I admire everyone involved in the process who takes this leap of faith, giving special considerations to those gatekeepers who help a brand see the light of day.

I’m so proud of the role I play as part of the conduit for introducing these products. We give counsel, support, and a shoulder to cry on, when necessary. I always wish for the best for everyone, sadly knowing that most don’t stand a chance. I have often advised against people launching. I hate to see savings depleted, money from family and friends going into a project that doesn’t stand a chance. Financial investors are a different breed, as with them it’s a numbers game in which the investments that pay off offset the brands they invest in that fail. It’s all part of the process.

I still take joy in meeting all of these visionaries, young and old. They are the life blood of the industry. Their energy is contagious. They keep me young. As with our own events, I hope they all soar.

Aaron Willette DESIGN MANAGER Nathan Brescia PHOTOGRAPHER/DESIGNER

BEVNET.COM, INC.

John F. (Jack) Craven CHAIRMAN John Craven CEO & EDITORIAL DIRECTOR jcraven@bevnet.com

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BEVSCAPE

THE LATEST BEVERAGE BRAND NEWS

For more stories, check out bevnet.com

Califia Lands $225M Series D Round Borden Dairy Co. Files for Led by Qatar Investment Authority Bankruptcy

In January, California-based plant-based food and beverage maker Califia Farms announced the close of a $225 million Series D funding round led by the Qatar Investment Authority (QIA).

An additional group of international investment groups — including Singapore-based Temasek, Canada-based Claridge and Hong Kongbased Green Monday Ventures — also participated in the round, as did an undisclosed “Latin America based family with significant interests in coffee and consumer products,” according to a press release. Representatives from QIA, Temasek and Claridge have received seats on Califia’s board of directors.

Califia founder Greg Steltenpohl told BevNET this round of capital was “clearly facing the future” and aimed at “giving the war chest for tackling what’s to come” in a more competitive, global plant-based category. In contrast, the company’s previous $50 million raise in 2018 was a “catch-up round” aimed

at helping it recover from production and expansion challenges, he said.

Steltenpohl said Califia’s connection with QIA, the sovereign wealth fund for the State of Qatar, came as he and CFO Sandeep Patel were seeking long-term growth partners for the company. The fund, which controls assets valued at over $330 billion, has shifted its strategy in recent years from supporting funds to direct investment in companies.

Steltenpohl added that bringing in foreign investors was part of Califia’s international growth strategy, but also a recognition that plant-based diets are a global trend that will continue to grow as a new generation of consumers comes of age. Each one of the new investors, he said, brings a deep understanding of their respective regional markets, a critical strategic asset as Califia seeks to compete with major multinational conglomerates that have stepped up their interests in plant-based foods, such as Danone.

8 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

It’s “new year, same story” for another major American dairy producer.

On January 5, Dallas-based Borden Dairy Co., at one point the world’s largest dairy producer, filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the District of Delaware. The company, which employs approximately 3,264 full and part-time workers, has estimated liabilities of between $100 million and $500 million, according to the filing.

The news is yet another blow to the struggling U.S. dairy milk segment, coming less than two months after Dean Foods, the nation’s largest milk processor, also filed for Chapter 11. Borden operates 13 milk processing plants that produce approximately 500 million gallons of milk annually.

In a press release, Borden said it plans to “continue operating in the ordinary course of business, under the court’s supervision.”

In an affidavit, Borden CFO Jason Monaco painted a grim picture of decline across

the dairy industry; despite yogurt and cheese enjoying a rise in popularity, Americans simply aren’t drinking as much cow’s milk as they used to. Aggregate consumption of dairy milk has fallen 6% since 2015, with more than 2,000 dairy farms going out of business in the past 16 months alone.

Beyond competition from dairy free milk alternatives, Monaco cited the growth of discount grocery retailers for sharpening competition and squeezing margins. As a major milk supplier, Monaco said, Borden has one of the most extensive DSD operations in the country, with drivers making approximately 54,000 service calls to customers each week. The rising cost of raw milk — up 27% since January 2019 — and the shift towards private label from major retailers also negatively affected the company, Monaco stated.

Borden’s immediate objective, Monaco said, is to “maintain a business-as-usual atmosphere during the early stages” of bankruptcy in order to minimize any loss of value.

BEVSCAPE Oatly Kicks Off 2020 With Starbucks Partnership

Aiming to triple its distribution and open up West Coast production, oat milk maker Oatly announced in January that it has partnered with Starbucks to serve as the coffee retailer’s on-premise oat milk supplier for a test run in 1,300 Midwest cafes.

Starbucks is expanding its plant-based milk offerings with the roll out of oat milk to participating stores in Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri and Wisconsin. Speaking with BevNET, Oatly U.S. general manager Mike Messersmith said that the Swedish import brand will serve as the core supplier of oat milk products for Starbucks with its barista blend variety.

According to Messersmith, the partnership serves as validation of oat milk’s credentials as a long-term subcategory in the plant-based milk space.

He noted that the mainstream reach of Starbucks will help drive trial and draw new consumers into the space, and that the partnership could expand in the future.

The Starbucks partnership comes as Oatly aims to “double or triple” its retail distribution in 2020 in an effort to catch up with competitors that quickly outpaced Oatly during the brand’s out-of-stock crisis in 2018 and early 2019. According to Messersmith, Oatly is currently in about 5,000 retail stores nationwide, including Wegmans, Whole Foods and Shop Rite. In addition to oat milks, the brand is aiming to grow its oat milk-based ice cream alternative Frozen Dessert line, introduced last summer. Messersmith said the company hopes to take advantage of category resets in the spring to open new accounts.

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Dyla Brands Running Concentrate, Powder MIx Business for KDP

Through a long-term licensing agreement, Dyla Brands, the parent company of Stur and FORTO Coffee, has been overseeing marketing, manufacturing and sales for Keurig Dr Pepper’s (KDP) liquid concentrate and powdered mix products since late 2019.

Neel Premkumar, CEO and founder of Dyla Brands, told BevNET the agreement with KDP has been in effect for several months, but he was not authorized to speak publicly about the deal until after January 1. The two parties began discussing a potential partnership for the business during an annual planning session about how to grow the business overall; KDP has been a minority investor in Dyla since 2018 and distributes FORTO and Stur through its allied brands portfolio.

The end result has brought KDP’s 20-year-old, $100 million liquid concentrate and powdered mix business — which includes products from Snapple, Hawaiian Punch, Canada Dry, 7Up, Crush, A&W and RC Cola — under the Dyla banner. KDP will

retain control of the brand names and trademarks.

Premkumar said Dyla had quietly spent much of 2019 preparing to take over operations for KDP’s liquid concentrates and powdered mixes.

The company invested “several million” dollars in manufacturing upgrades to boost capacity at its partner facility, which has been producing KDP products for the last six months, and will be hiring additional sales staff to sell those lines into national accounts. Those brands have been integrated alongside FORTO and Stur; under Dyla’s structure, “the same people are working on everything,” he said.

The products themselves have also been overhauled, with all 60 SKUs across all seven brands receiving upgrades in formulation and packaging.

Snapple and 7Up will be available as liquid enhancers for the first time ever, and RC Cola for the first time as a powder mix. The powders will be available in 6-count and 8-count boxes, while the liquid concentrates will be sold in 14-serving and 24-serving sizes.

For more stories, check out bevnet.com

Olipop Raises $10M in Series A Round California-based prebiotic beverage maker Olipop has raised $10 million in a Series A funding round, the company announced in January.

The round’s participants include current investors Monogram Capital Partners, Rocana Ventures, Finn Capital Partners, Boulder Food Group and Collaborative Fund, as well as first time investors Döhler Ventures and Terpsi Capital. The Series A follows a $2.5 million seed round which closed in January 2019.

“The timing of this Series A coincides with our completion of a foothold on the West Coast,” a company spokesperson told BevNET in an email. “We wanted to test out our ability to scale and know that we can, this year. The new funding will support that. We think that OLIPOP can become a leader in natural soda, as much as a leader in next generation digestive health.”

Founded in 2018 by president David Lester and CEO and head of formulation

Ben Goodwin, Olipop produces a line of low sugar, prebiotic tonics which aims to provide a better-for-you alternative to CSDs in flavors like Strawberry Vanilla, Cinnamon Cola, Ginger Lemon and Classic Root Beer, the latter of which launched last month.

Much of the funding will go towards

expanding Olipop’s sales and marketing team and growing its direct-to-consumer business. The company currently has 15 full time employees and recently announced three new additions, including former Ripple Foods finance lead Adam Beier as senior director of finance, former Health-Ade Kombucha sales director Scott Goldstein as senior director of sales and former Chameleon senior area sales manager Brad Bevens as district sales manager for the Pacific Northwest.

In 2020, the brand is focusing on expanding its retail footprint on the East and West Coasts, projecting to be in over 1,800 doors by the summer, the spokesperson said. The brand has partnered with distributors including UNFI, KeHE and LA Distributing Co. and is available in retailers including Whole Foods, Erewhon, Bristol Farms, Lasens, Jimbo’s, Lazy Acres, QFC and Fred Meyer.

Earlier this month, Olipop launched in Wegmans and the brand will roll out to Sprouts locations in May.

Purity Organic Acquires Dunn’s River Brands Purity Organic in January acquired Dunn’s River Brands, an Austin, Texas-based management company created by investment firm Fireman Capital to run its beverage portfolio, including iced tea brands Sweet Leaf and Tradewinds, for an undisclosed fee.

Sweet Leaf and Tradewinds will be integrated into San Francisco-based Purity Organic’s portfolio of shelf-stable beverages, which includes coconut water, juice and flavored sparkling water. The deal marks the third ownership change for the two companies in less than a decade.

Sweet Leaf, founded in 1998 by Clayton Christopher and David Smith, offers a range of sweetened and unsweetened teas primarily sold in 16 oz. single-serve PET bottles. Meanwhile, Tradewinds is

a non-organic brand available mainly in 64 oz. jugs in the Great Lakes region. Two years after taking a 35% stake in the brand for $15.6 million in 2009, Nestle Waters acquired Sweet Leaf in full in 2011. The company was sold, along with Tradewinds, to Dunn’s River Brands for an undisclosed fee in 2017.

Last July, Dunn’s River sold its controlling interest in its other portfolio company, turmeric-based beverage brand Temple, to Dutch food company Natur International Corp.

The deal is the first for Purity Organic under the leadership of new CEO Mary Page Platerink, a former Coca-Cola director and the former CEO and founder of functional shot brand First Aid Shot Therapy (F.A.S.T.).

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NOSHSCAPE

For more stories, check out nosh.com

THE LATEST FOOD BRAND NEWS

Gathered Foods Reels in over $20M More, Will Expand Services Gathered Foods, the makers of Good Catch vegan seafood, announced in January that the alternative protein play had raised a series B round of $32.3 million, $10 million of which was closed last year as a convertible note. The capital will be used to bring a new production facility online, which, in turn, will allow for international expansion of the Good Catch brand, food service opportunities and the opening of co-packing and R&D facilities for other food brands.

The raise was led by Stray Dog Capital and Rocana Ventures, with strategics 301 Inc (the venture arm of General Mills) and Greenleaf Foods (the plant-focused subsidiary of meat producer Maple Leaf Foods) taking part alongside impact investors, including Almanac Investments,

CPT Capital and New Crop Capital.

Chris Kerr, who is Gathered Foods’ CEO as well as New Crop Capital’s chief investment officer, said that the funding round closed in waves: $10 million last July, another $12 million last fall, and, most recently, investment by Greenleaf and 301. Greenleaf Foods previously acquired vegan brands Lightlife and Field Roast, while 301 has also invested in plant-focused companies including Beyond Meat, Urban Remedy, Kite Hill, No Cow, Farmhouse Culture and Rhythm Superfoods.

Gathered Foods’ soon-to-open 42,000 square foot plant is the key to the company’s projected growth Kerr shared. The Ohio-based facility, which is located in a former corn field, should come online in

the Spring, setting off a domino effect of benefits. Most immediately, all production will shift from the U.K. to the U.S. and Good Catch will be able to drop prices on existing products by at least $1 thanks to efficiencies of scale. Alongside this, the brand will launch new products (including its long awaited frozen line) and expand into other geographic markets, including the U.K., Europe and Asia.

Chocolate Fix: Little Secrets to Expand Offerings Confection brand Little Secrets is ready to give consumers their chocolate fix — while also fixing conventional candy offerings.

The brand launched a line of Cookie Bars (a Twix Bar alternative), a new almond butter flavor of its Crispy Wafers (which are similar to Kit Kats) and multipack bags of mini Crispy Wafers.

The brand started in 2014 with a line of Chocolate Pieces (similar to M&Ms) but really began to gain traction — and double sales — when it launched the Crispy Wafers line last spring. According to founder Chris Mears, the confection shopper craves novelty and variation.

The new products will launch into 1,500 stores including Whole Foods Market, Sprouts, Natural Grocers, Fresh Market, Earth Fare, Fresh Thyme and Central Market. In recent years,

Mears said, the company decided that focusing on the natural channel is most effective. The natural chocolate confection category is worth $550 million, he added, with roughly a third of those sales coming from Whole Foods (at approximately 500 stores), another third from specialty and natural retailers and the final third from conventional retailers — where Little Secrets would have to compete with the likes of Hershey’s and Ferrero.

“Seventy percent of our business is across 2,000 doors of the pie. Otherwise you’re chasing 25,000 doors for the other thirty percent of the pie,” Mears explained “In the natural channel, you can get front register placement and on display. This is a category where 70% of purchases are driven by impulse.”

PepsiCo Acquires PopCorners Maker to Expand Portfolio of Healthy Options In December, PepsiCo announced its intention to acquire better-for-you snack producer and co-packer BFY Brands, the maker of PopCorners snacks, from private equity firm Permira. Upon closing, BFY will be rolled into PepsiCo’s Frito-Lay North America division. Financial terms of the deal were not disclosed.

In a release, the company noted that BFY’s production facilities will remain in Middletown, New York, and Liberty, New York and that current CEO Paul Nardone and President and Chief Commercial Officer Dan Morgan expect to remain on with the brand to help “continue its current expansion plans.” The company 12 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

currently has 750 employees.

The deal, PepsiCo stated in an announcement, will further expand the global brand’s portfolio of better-for-you snacks — which already includes Smartfood popcorn, Sun Chips, Off the Eaten Path vegetable puffs (which are manufac-

tured at BFY’s facilities), Imagine yogurt crisps and bare fruit and vegetable crisps.

Within that group, Bare was the company’s most recent acquisition, in May 2018.

BFY brands was formed in 2015 when Permira acquired both Medora Snacks, LLC, producer of PopCorners, and Ideal Snacks Holding Corporation, a leading contract manufacturer specializing in popped snacks. Permira then brought in Nardone, who previously served as the CEO of Immaculate Baking Company, Stirrings and Annie’s Homegrown. Since the acquisition, the company has doubled its workforce, and is sold in over 40 countries and territories around the world.

BREWSCAPE

THE LATEST CRAFT BEER BRAND NEWS

Molson Coors to Cease Production in Irwindale, California In January, Molson Coors Beverage Company announced plans to cease production at its facility in Irwindale, California, by September 2020.

The second largest U.S. beer manufacturer also announced an agreement with Pabst Brewing Co. that gives the Los Angelesbased beer company the option to purchase the Irwindale facility for $150 million.

“This move will allow us to optimize our brewery footprint while streamlining our operations for greater efficiency across the network,” Molson Coors chief integrated supply chain officer Brian Erhardt said in a release. “While it was a very difficult decision, we have extra capacity in our system and Irwindale’s production can be absorbed by other breweries in our network.”

The 40-year-old Irwindale facility employs about 470 workers and produced 4.8 million barrels of product in 2019 — including Miller Lite, Coors Light, Miller High Life, Miller Genuine Draft, Steel Reserve, and Miller 64, among others — which was

shipped to 261 independently owned wholesalers.

Over the next nine months, Molson Coors will begin moving production from Irwindale to its facilities in Golden, Colorado, and Fort Worth, Texas.

As for Molson Coors’ arrangement with Pabst, the maker of Pabst Blue Ribbon will have 120 days after receiving notice from Molson Coors of Irwindale’s closure to exercise its option to buy the facility.

In a statement, Pabst Brewing chairman and CEO Eugene Kashper said the company will work with “new long-term supply chain partner, City Brewing Company, to evaluate this opportunity and are committed to choosing a path forward that is in the best interest of all our stakeholders.”

In November 2019, Pabst reached a long-term agreement to move the majority of its production volume to City Brewing Company by December 2024 and maintain contract production at City’s facilities until 2040.

White Claw Maker to Build $250 Million Facility in Arizona

Josh Landan, Celebrity Investors Launch Hard Seltzer Brand in California

Mark Anthony Brands has selected Glendale, Arizona, as the location of its $250 million West Coast production facility.

The maker of White Claw and Mike’s Hard Lemonade first revealed plans in the fall to invest $385 million to build two new production facilities, including one in New Jersey.

Mark Anthony Brands expects the 916,000 sq. ft.

Glendale facility to open in June and employ 200 full-time workers. In addition to White Claw, the facility will produce Mark Anthony Brands’ other offerings, including Mike’s

Hard Lemonade and Cayman Jack Cocktails.

Mark Anthony Brands is self-financing the approximately $250 million project. The company is forecasting sales of $4 billion in 2020. Last year, White Claw sales topped $1.5 billion, with total hard seltzer category sales nearing $2.5 billion.

Once both Arizona and New Jersey facilities are online, about half of Mark Anthony’s volume will be produced inhouse. The company also contract produces at Cold Spring Brewing in Minnesota.

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Saint Archer co-founder Josh Landan has launched a new hard seltzer brand in California.

Ashland Hard Seltzer is Landan’s play into the $2.5 billion-plus hard seltzer category. The brand started with more than 250 points of distribution, including national chain commitments from major big box and grocery retailers such as Costco, Target, Whole Foods, Sprouts, Kroger, BevMo, Total Wine and Bristol Farms/Lazy Acres.

Over the last year, Landan admitted he got swept up in the hard seltzer trend, which led him to create his own brand.

“I’m 40 now and I have three kids — 12, 9 and 5 — and the days of me drinking multiple IPAs after work are long gone,” said Landan, who co-founded Saint Archer in 2013 and sold the San Diego craft brewery to MillerCoors in September 2015. “This is what my wife and I and my friends have gravitated toward, drinking the hard seltzers, because you can still have fun

and have a couple of drinks and not really feel it in the morning” Landan, who holds a majority stake in the new business, has tapped 30 celebrities, actors, athletes, models, influencers, designers, and musicians as equity investors in the venture. Among them is action sports star Paul Rodriguez, with whom Landan co-founded the Saint Archer brand, and actors Adam Devine and Blake Anderson.

“I’ve been able to pull together a lot of our friends from all kinds of different walks of life,” Landan said. “Country singers and athletes and actors and everybody in between coming together.”

Ashland is the newest brand in Landan’s growing portfolio, which includes Harland Brewing Co. beer, Claxton Cellars wine, Villager non-alcoholic coconut water and Little Villager organic juice for children.

According to Landan, Ashland plays as a California-based lifestyle brand and is the most gender-neutral beverage product that he has ever launched.

For more stories, check out brewbound.com

IRI: Off-Premise Beer Sales Top $37 Billion in 2019 Total beer dollar sales in 2019 increased to $37.2 billion in U.S. off-premise retailers, according to market research firm IRI. The Chicago-based firm, which tracks category-wide sales at major off-premise retailers, reported a 5.2% increase in beer dollar sales, and a 2.3% increase in volume sales at multi-outlet and convenience (MULC) stores (grocery, drug, club, dollar, mass-merchandiser and military) through December 29.

Meanwhile, market research firm Nielsen reported that total dollar sales of beer, FMB and cider in the U.S. grew 3.4%, to $39.6 billion, while volume sales increased 0.7% for the 52week period ending December 28.

Of course, scan data only offers part of the picture — distributed beer sold in off-premise retailers such as grocery, convenience and big box stores — for a year, not factoring in on-premise dollar sales, at-the-brewery sales and other metrics such as independent liquor stores. However, the data does give insight into sales at large retailers.

According to IRI, seven segments — imports, domestic sub-premiums, craft, flavored malt beverages, domestic super premiums, non-alcoholic beer and assorted — increased dollar sales in 2019.

Dollar sales of FMBs, which include hard seltzers, increased 43.1%, to nearly $4 billion, while volume sales increased about

42% last year.

Nielsen, which breaks out hard seltzer segment data from FMBs, reported that off-premise dollar sales of hard seltzer increased 212.5%, to $1.5 billion, in 2019.

Much of the growth in FMBs is being driven by the tripledigit growth of Mark Anthony Brands’ White Claw offerings (+330% dollar sales) and Boston Beer Company’s Truly Hard Seltzer (+180.2%), according to IRI. Portfolio-wide White Claw dollar sales reached $833.6 million last year, while Truly brand family dollar sales topped $368.8 million.

The popularity of White Claw and Mike’s Hard Lemonade products (+12.5%) has made Mark Anthony Brands the fourth largest beer company in the U.S. In 2019, Mark Anthony Brands’ products increased dollar sales 87%, to almost $1.5 billion.

Dollar sales of beer’s largest segment, domestic premiums (Bud Light, Budweiser, Coors Light, Miller Lite and others) declined 3.1%, to more than $12 billion. Volume sales were also on the decline for domestic premium brands, down 4.1% in 2019.

Although craft beer dollar sales continue to grow, up 2.8%, to $4.3 billion, in 2019, the segment has slowed considerably over the last two years. In fact, just 13 of IRI’s top 30 craft brands posted dollar sales gains in 2019, mirroring 2018’s results.

Reyes to Acquire Claypool Distributing in California

The Reyes Beverage Group is making another wholesaler purchase in California, announcing in January an agreement for its Crest Beverage subsidiary to acquire all of the assets of Imperial, Californiabased Claypool Distributing.

As part of the deal, Reyes, the nation’s largest beer wholesaler, will add about 650,000 cases of product and about 400 new customer accounts to Crest’s business. Claypool services the southeastern part of California, including por-

tions of San Diego, Riverside and San Bernardino counties, as well as throughout Imperial County.

San Diego County-based Crest services the United States’ largest craft beer market, with annual sales of 14 million cases to 4,600 customers.

Reyes has been among the most active buyers in the middle tier, with the Claypool purchase being its eighth acquisition in California since June 2018.

15

NEW PRODUCTS

THE NEWEST BEVERAGE OPTIONS

Energy Gatorade announced its first-ever caffeinated beverage, BOLT24 Energize. The new line -available in Strawberry-Lemon, Orange-Passion Fruit and Cherry-Lime varieties -- contains between 50-75 mg of caffeine per 16.9 oz. bottle, depending on the flavor. BOLT24 Energize will be available for a suggested retail price of $2.19 per unit. For more information, please contact Gatorade at (800) 884-2867.

Health and wellness retailer GNC announced the launch of Mad Pony Energy, a new energy drink containing 200 mg of caffeine and zero sugar. Mad Pony Energy is sold exclusively in GNC stores and on its website in individual 16 oz. cans or 12-packs in three flavors: Cherry Berry, Orange Mango and Watermelon. For more information, please contact GNC at (877) GNC-4700.

Meal replacement brand Soylent has launched Stacked, an energy drink formulated with nootropics including L-theanine and caffeine.

Each 11 oz. bottle contains 180 calories, 3 grams of sugar and 15 grams of plant protein and is available online in Chocolate in 12-packs for $30. For more information, please contact sales@soylent.com.

MEAL REPLACEMENT Keto and Co. has expanded its Sated keto shake mix line with the launch of Sated Readyto-Drink. Vanilla and Chocolate varieties of the drink are now available online in 6-packs for $36 and 18-packs for $90, or at a reduced price for a subscription. For more information, please contact Sated at (617) 758-8674.

MILK Plant-based beverage brand Silk has launched Silk DHA Omega-3, a blend of oat milk, almond milk and pea protein available in Original and Unsweetened Vanilla flavors. The product contains 50% more calcium than traditional dairy milk, 6 grams of pea protein per serving and 32 mg of DHA Omega-3 and is available for a suggested retail price of $3.99 per half-gallon carton at retailers nationwide. For more information, please contact Silk at (888) 820-9283.

16 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

The first non-dairy product from Nesquik is Goodnes Chocolate Oatmilk, made from a blend of oat and pea protein that contains 6 grams of protein per cup and 40% less sugar than regular chocolate almond milk. Goodnes is available in 46 oz. multi-serve bottles for a suggested retail price of $4.59 in select Stop & Shop, Hy-vee, Jewel, Wakefern and Safeway stores. For more information, please contact Nesquik at (800) 637-8536.

JUICE Juice brand Naked has expanded its smoothie line with Tropical Guava, a blend of guava with pineapple, kiwi and orange juices with no added sugar. Tropical Guava will be available in 15.2 oz. bottles for a suggested retail price of $3.39. For more information, please contact Naked Juice Company at (877) 858-4237.

FUNCTIONAL Organic yogurt maker Stonyfield Organic released Daily Probiotics, its first daily organic probiotic yogurt drink, available in Strawberry Acai and Blueberry Pomegranate varieties.

The product comes in a single-serving 3.1 oz. bottles and is crafted to support immune and digestive health. For more information, please contact Stonyfield Farm at (603) 437-4040.

The fourth flavor in Olipop’s line of prebiotic tonics is Classic Root Beer, now available online and in retailers including Fred Meyer in the Pacific Northwest. The suggested retail price is $2.49 per 12 oz. aluminum can. For more information, please contact Olipop at hello@drinkolipop.com.

KID’S BEVERAGES Zevia released Zevia Kidz, a new line of zero calorie naturally sweetened and lightly carbonated beverages featuring Disney characters. The four varieties -- Fruit Punch, Orange Cream, Fizzy Apple and Strawberry Lemonade -- are available online and in select retailers in 6-packs of 7.5 oz. cans for $4.99. For more information, please contact Zevia at (855) 469-3842.

NEW PRODUCTS SipCozy is a new non-alcoholic, hemp-infused rosé wine sourced from vineyards in Central California containing 40 mg of broad-spectrum hemp extract per bottle and 45 calories per 6 oz. serving. SipCozy is available online for $18. For more information, please contact hello@sipcozy.com

COFFEE Starbucks has teamed with Nestlé to launch a two-SKU line of cold brew concentrates, available in single-serve and multi-serve formats in Signature Black and Caramel Dolce flavors at retailers nationwide. For more information, please contact Starbucks at (800) 782-7282.

Ocean Spray introduced Ocean Spray Brew, a combination of real fruit juice and cold brew coffee from 100% Colombian coffee, with each 8 oz. serving containing 40 mg of caffeine. Its two flavors -- Cranberry Lemonade with Cold Brew Coffee and Cranberry Blueberry with Cold Brew Coffee -- are available at Target, Stop & Shop, Shaw’s, Albertsons, Vons, and Safeway. For more information, please contact Ocean Spray Cranberries at (800) 662-3263.

In December, PepsiCo announced the April 2020 launch of Pepsi Café, combining Arabica coffee with Pepsi cola. Pepsi Café will be available in 12 oz. slim cans in Original and Vanilla flavors. For more information, please contact PepsiCo at (800) 433-2652.

WATER Flavored water brand Hint launched its newest flavor, Clementine, containing only purified water with a touch of fruit flavor and no sugar, artificial sweeteners or preservatives. The new SKU is now available at Target, CVS and other retailers nationwide, as well as on the brand’s website for $19.99 per 12-pack of 16 oz. bottles. For more information, please contact Hint at (866) 895-4468.

Joffer Beverage Company partnered with jelly bean maker Jelly Belly to launch a new flavored zero calorie, zero sugar sparkling water line with flavors inspired by the candy.

The complete flavor lineup -- French Vanilla, Lemon Lime, Orange Sherbet, Piña Colada, Pink Grapefruit, Tangerine, Very Cherry and 18 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

Watermelon -- has rolled out at Hy-Vee with a suggested retail price of $4.99 to $5.99 for 8-packs of 12 oz. cans. For more information, please contact Joffer Beverage Company at info@jellybellysparklingwater.com

SPIRITS Tattersall Distilling is set to introduce a USDA Certified organic, non-GMO and gluten-free vodka distilled in its Minneapolis, Minnesota distillery. The 40% ABV spirit will be sold for $25 in a 750ml bottle at select retailers. For more information, please contact Tattersall Distilling at (612) 584-4152.

Rhode Island’s KEEL Vodka has launched KEEL Sparkling, a vodka-based hard seltzer made with potato vodka, soda water and natural lemon, lime and grapefruit flavors. The 4% ABV hard seltzers are available at a suggested retail price of $9.99 per 4-pack of 12 oz. cans in Rhode Island, Massachusetts, Connecticut, Colorado, Florida, Texas and Georgia. For more information, please contact KEEL Vodka at (866) 582-2526.

Tequila Partida announced the limited release of its first nationally available Single Barrel Reserve bottling, showcasing 30 unique barrels of Tequila Reposado. Tequila Partida’s Maestro Tequilero José Valdez created three separate tasting profiles for each barrel: Ligero, Medio and Intenso. The Single Barrel Reserve will have a limited availability nationwide and will carry a suggested retail price of $54.99 per bottle. For more information, please contact Edrington Americas at (212) 352-6000.

Dallas-based whiskey maker Oak & Eden Whiskey announced the expansion of its product line with Wheat & Spire, a unique twist on wheated Bourbon made using the brand’s patented process called “In-Bottle Finishing,” in which a 5” long spiral-cut piece of wood, called the Spire, is placed into a fully-aged bottle of whiskey. Wheat & Spire is available for sale in Texas, Colorado, Kentucky, Tennessee, Oklahoma, Michigan and Louisiana. For more information, please contact Oak & Eden at info@oakandeden.com

CHANNEL CHECK WHAT’S HOT AND WHAT’S NOT

SPOTLIGHT CATEGORY

RFG VEGETABLE JUICE/COCKTAIL This category, albeit a small one, has done a fine job of showing the progress of innovative brands in the juice set over the years -- particularly the rise of products using HPP. Here, the numbers show something of a return-to-form for Suja -- growth against a declining category average -- as well as the growing commercialization of products like KOR shots. Meanwhile, Bolthouse seems to be finding its footing in a time of flux, but changes in distribution and ownership have turned much of the category into a game of 52-card pickup.

RFG VEGETABLE JUICE/COCKTAIL DOLLAR SALES

CHANGE vs. YEAR EARLIER

Bolthouse Farms

BRAND

$33,474,386

-16.4%

Bolthouse Farms Organics

$24,248,955

10.1%

Suja

$13,881,835

42.9%

Suja Essentials

$8,483,111

-3.1%

Naked

$7,493,300

-48.4%

Private Label

$6,308,446

-9.0% 136.9%

Arden’s Garden

$3,354,573

Evolution Fresh

$2,760,024

-9.3%

1915 Bolthouse Farms

$1,598,287

-51.3%

KOR Shots

$1,479,335

381.9%

Suja Organic

$1,079,169

39.5%

Barsotti

$1,035,042

-1.1%

Solti

$1,006,018

267.3%

Farmhouse Culture Gut Shot

$775,167

-19.3%

Beetology

$659,590

51.7%

Expressed Juice

$611,382

211.2%

$611,160

65.3%

Sonatural Love Beets

$608,756

-9.9%

Daily Greens

$570,371

-57.9%

Naked Pressed

$516,296

-70.1%

TOPLINE CATEGORY VOLUME Sports Drinks

$7,010,809,324

6.3%

Energy Drinks

$13,692,592,902

10.5%

Bottled Juices

$6,928,635,484

-1.6%

Tea/Coffee

$6,840,741,879

1.7%

Bottled Water

$17,695,190,762

5.4%

Liquid Drink Enhancers

$351,837,394

7.3%

SOURCE: IRI, a Chicago-based market research firm-@iriworldwide% 52 Weeks through 12/29/19

20 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

CHANNEL CHECK DOMESTIC BEER

COFFEE

BRAND

DOLLAR SALES

CHANGE vs. YEAR EARLIER

Bud

$6,993,168,109

-4.7%

Starbucks Frappuccino

$1,159,681,559

7.0%

Michelob

$2,535,569,116

19.8%

Starbucks Doubleshot

$566,699,304

-10.7%

Coors

$2,480,263,484

-1.2%

Java Monster

$503,510,806

8.6%

Miller Lite

$2,042,950,234

1.6%

Coca Cola Dunkin Donuts

$151,981,691

-4.0%

Busch

$1,478,542,069

1.4%

Starbucks Tripleshot

$97,315,386

N/A

Natural

$1,408,757,354

7.8%

Starbucks

$76,445,174

-12.5%

Private Label

$49,088,914

-6.0% -8.5%

BRAND

DOLLAR SALES

CHANGE vs. YEAR EARLIER

Bud Specialty

$667,184,796

-5.5%

Keystone

$497,550,871

-0.5%

Starbucks Cold Brew

$39,123,014

Miller High Life

$446,814,067

-1.7%

VPX Bang

$33,953,556

N/A

Yuengling

$374,160,723

-3.9%

Monster Caffé

$33,600,024

-29.4%

CRAFT BEER BRAND

TEA

DOLLAR SALES

CHANGE vs. YEAR EARLIER

Blue Moon

$323,115,964

-3.3%

Lipton Pure Leaf

$778,343,224

8.3%

Sierra Nevada

$264,059,153

4.2%

AriZona

$574,224,314

0.5%

BRAND

DOLLAR SALES

CHANGE vs. YEAR EARLIER

Samuel Adams

$231,345,055

-9.6%

Gold Peak

$418,099,884

3.9%

New Belgium

$222,154,295

10.3%

Lipton Brisk

$361,412,837

-2.0%

Lagunitas

$184,852,409

0.7%

Lipton

$263,838,703

-7.5%

Shiner

$126,934,428

-5.1%

Monster Rehab

$252,070,135

-16.2%

Leinenkugel

$126,552,916

-16.2%

Snapple

$205,378,136

-5.5%

Founders

$109,251,989

5.8%

Lipton Diet

$168,257,809

-2.3%

Elysian

$87,286,987

17.6%

Diet Snapple

$155,534,876

0.6%

Firestone

$84,259,833

20.8%

AriZona Arnold Palmer

$134,323,203

4.2%

SOURCE: IRI, a Chicago-based market research firm-@iriworldwide% 52 Weeks through 12/29/19

22 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

SPORTS DRINKS DOLLAR SALES

CHANGE vs. YEAR EARLIER

Gatorade Perform

BRAND

$1,831,537,581

-2.4%

Gatorade

$961,448,812

0.3%

Gatorade Frost

$791,432,551

-12.0%

Powerade ION4

$719,229,672

-5.6%

G Zero

$596,904,729

545.0%

Bodyarmor Superdrink

$501,336,369

103.0%

Powerade Zero ION4

$283,763,923

9.0%

Gatorade Fierce

$207,049,695

-10.5%

Gatorade G2 Perform

$205,196,026

-21.6%

Powerade

$161,694,479

-15.4%

SPARKLING WATER BRAND

DOLLAR SALES

CHANGE vs. YEAR EARLIER

Private Label

$586,864,907

6.9%

Sparkling Ice

$506,186,438

18.5% -9.1%

La Croix

$416,833,430

Perrier

$291,782,535

3.2%

Bubly

$250,133,367

128.9%

Polar

$193,921,042

13.8%

San Pellegrino

$158,989,987

10.0%

Topo Chico

$157,911,269

38.4%

Sparkling Ice Lemonade

$53,846,882

5.8%

Canada Dry

$52,089,566

18.3%

BOTTLED WATER BRAND

DOLLAR SALES

CHANGE vs. YEAR EARLIER

Private Label

$3,143,358,271

11.0%

Aquafina

$1,066,564,957

0.9%

Dasani

$1,057,713,791

-1.1%

Glaceau Smart Water

$866,027,184

3.5%

Nestle Pure Life

$746,810,647

-10.8%

Poland Spring

$699,699,523

-0.6%

Glaceau Vitamin Water

$501,620,439

1.6%

Deer Park

$428,181,639

0.8%

Fiji

$413,225,934

-8.0%

Ozarka

$391,778,476

-1.8%

ENERGY DRINKS BRAND

DOLLAR SALES

CHANGE vs. YEAR EARLIER

Red Bull

$2,860,400,967

-2.4%

Monster Energy

$1,757,553,618

1.0%

VPX Bang

$1,128,637,019

267.0%

Red Bull Sugar Free

$783,195,800

0.7%

Monster Energy Zero Ultra

$683,194,539

0.1%

NOS

$456,715,691

0.3%

Reign

$272,672,811

N/A

Monster Energy Lo Carb

$262,042,729

-8.5%

Monster Mega Energy

$239,019,067

0.8%

Red Bull The Summer Edition

$237,696,204

86.5%

SOURCE: IRI, a Chicago-based market research firm-@iriworldwide% 52 Weeks through 12/29/19

23

GERRY’S INSIGHTS

BY GERRY KHERMOUCH

Are We Warming Up to the Cold Chain – Or is the Promise Overbaked?

It’s been one of the more promising developments in beverages, inaugurated by brands like Evolution Fresh a decade ago and a flock of cold-brew players more recently: a rash of refrigerated entries that offer a shockingly vibrant, fresh taste to those who’d gotten accustomed to the pallid flavor of highly pasteurized products, along with the promise of truly delivering the promised nutritional benefits. But it also has been a development that challenges the fundamental machinery of how the American beverage system operates, with elaborate, finely tuned mechanisms for producing, distributing and retailing shelf-stable products. Campbell Soup’s gruesome experience acquiring, operating and then divesting Bolthouse Farms might be the most explicit example of how different the cold channel is, but others, like Hain Celestial, with the business it built around the acquired BluePrint brand of juices and cleanses, have similarly struggled to keep such businesses on a steady course. I’d guess that even Evolution Fresh’s purchaser, Starbucks, has been disappointed at how arduous it’s proved to build that business outside the coffee shops, at retail.

But lately, like so many others who’ve started from that position, Hufnagel has come around. As I was writing this column, he was undertaking his first production run of the now shelf-stable product, offering as justification the reasons he’d been hearing from the skeptics all along: broader retail display opportunities, access to the biggest DSD distributors, a more approachable price point, improved chances that a strategic would want to purchase the brand at some point down the road.

It’s not like the market is devoid of refrigerated distribution opportunities outside the captive systems harnessed by the big players. UNFI and KeHE draw extensive criticism, but they function at least as a delivery system and have been taking steps to up their service levels to early-stage brands. The city where I live, New York, is fortunate enough to support several cold-DSD options, with Dora’s Naturals and Rainforest probably the most robust, and a flock of more targeted ones in the mix. Still, if you’re a kombucha player, that’s not enough: early on, GT’s entered Dora’s on an exclusive basis, and Health-Ade

The issue was thrown into relief for me a few weeks ago when I caught up for my newsletter with Yanni Hufnagel, a former college basketball scout and coaching assistant who’s devised an appealingly simple sports-drink-alternative and general hydrator called Lemon Perfect Cold Pressed Lemon Water that is a marvel of fresh, rounded taste and carries the exceedingly short, uncomplicated ingredient list that many consumers say they want to see these days. During our earlier encounters, Hufnagel had been a passionate, unwavering advocate of the refrigerated route to market, despite the advice he was receiving from prospective investors, distributors and employees that going shelf-stable would make for an easier lift. While Hufnagel was relatively new to beverages, he was no naïf: he’d undertaken a six-months-long deep dive prior to launch, and could discuss the pros and cons as articulately as beverage execs with years more experience. Shelf-stable? No way, Yanni vowed: he’s sticking to the cold box.

followed into Rainforest. So if you’re a later arrival to the scene where do you go? That’s the situation the encouraged Brew Dr to find a way to keep its product essentially shelf-stable during the delivery cycle so that it could tap the huge generalist Big Geyser in New York along with beer houses around the country.

(They all had to agree to install refrigeration in their warehouses to support the effort even if they didn’t refrigerate their fleets.) Some major houses, like Honickman Group, have undertaken controlled experiments with refrigerated distribution, while others drop compact refrigeration units on their existing fleets. But by and large we haven’t yet seen a meaningful wave of classic DSD operators adding that to their toolboxes. In another encouraging development, newer entrants like Joyride are building national footprints for kegged products, but refrigerated coverage still pales in contrast to the reach of shelf-stable soft drink bottlers, beer houses and independent generalists.

So the reasons to migrate to shelf-stable are compelling, as

24 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

Hufnagel came to realize. Where does that leave the consumer, though? Maybe a little worse off, I’d venture, if you believe the promise of cold-chain products – particularly if shoppers are still being asked to pay prices approaching those of realdeal refrigerated entries. (Not LemonPerfect, which is taking its price down, I should note.) Take a shelf-stable brand like Purity Organic’s Superjuice, which mimicked the attributes of cold-pressed juices with its array of kale, spinach and coconut water, at a price somewhere in between its regular shelf-stable items and Evolution Fresh. Was that brand democratizing better juice, or simply taking its customers for a ride? That line didn’t get very far, so maybe shoppers concluded it was the latter.

This dilemma may be playing out most acutely these days with cold-brewed coffees. Black cold-brews can be a revelation to coffee drinkers with their rounded taste and absence of bitterness, but key brands that used to avow their commitment to refrigeration increasingly have been tilting toward canned shelf-stable versions layered with sugar and cream – improved versions of Frappuccino, maybe, but quite a distance away from being any kind of revelation. If you’re a Peet’s Coffee looking to ride on Dr Pepper trucks the impulse is understandable. Still, first-time cold-brew consumers encountering such items could be forgiven for wondering what all the buzz has been about. Democratization or dumbing down? You be the judge. (In fairness I should note that, on trips to Austin, I

used to purchase refrigerated Chameleon concentrate if I had a fridge in my hotel room and shelf-stable Kohana if I didn’t, and did not perceive a huge gulf between the two.)

One final point. For some years, the market has seen a range of brands that essentially are shelf-stable but employ the guise of being refrigerated as a gambit to win placement in coveted retail spots like the produce section or dairy cooler. By some accounts, that was how Coca-Cola’s Gold Peak tea line first developed momentum, as an item whose produce-section presence conjured a degree of freshness and quality the product didn’t really deserve. Some argue that Odwalla and Naked juices are so cooked they aren’t really refrigerated any more either. Lately, a Swedish-based shelf-stable dairy-alternative brand called Sproud aims to make exposing this supposed scam a central part of its trade marketing, on the grounds that its faux-refrigerated plantmilk rivals are burning needless carbon to stay chilled and thereby undermining the sustainability claims they’re making through their use of non-dairy ingredients. Whether that’s an argument that resonates remains to be seen, but it highlights another way things are blurring. Like gender, maybe refrigerated and shelf-stable are turning out not to be binary after all.

Longtime beverage-watcher Gerry Khermouch is executive editor of Beverage Business Insights, a twice-weekly e-newsletter covering the nonalcoholic beverage sector.

25

B E S T O F 2 0 1 9 AWA R D S

Each year, BevNET’s annual Best Of awards honors companies, brands, individuals, products, ideas and trends from across the dynamic and ever-changing beverage landscape.

As in years past, 2019 witnessed the emergence of disruptive newcomers developing alongside established players seeking out new frontiers. In ways both big and small, this year confirmed that there isn’t a singular route to success. In bottled water, we saw Essentia reap the benefits of a dedicated long-term growth strategy, fueled by strong execution, and at the same time we saw Liquid Death capture the imagination of consumers with a wholly unconventional (and unmistakable) marketing voice. We saw young companies in categories like energy and coffee help bring a new generation of functional beverages to mainstream audiences, while also watching as legacy brands extended their reach with new innovations. Some well-worn rules were confirmed, and others were torn up in style.

There was truly a bit of everything.

With such a wide breadth of worthy nominees, the process of selecting our Best Of 2019 award winners was hardly simple. These honorees represent a vibrant and dynamic group of brands that we feel best encompass the ideas, personalities and products pushing the beverage industry in exciting new directions at the dawn of a new decade— and we can’t wait to see where they will take us next.

Congratulations to all our winners!

BRAND OF THE YEAR Essentia At a time of bombastic claims and outsized personalities, Essentia has shown that it’s still possible to build a brand slowly and deliberately while nevertheless creating a massive impact on the business, and to realize the fruits of that work even as competitors catch wind of what you’re up to. The team behind Essentia 26 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

-- led by founder and CEO Ken Uptain -- has eschewed flashy alliances and chest-pounding (although you can now count NFL MVP Patrick Mahomes as one of its endorsers), instead focusing on rational sales development in key channels, moving the ball forward on a groundswell of consumer support and belief in the product. Essentia is a water, so flavors, sweeteners, and other “training wheels” aren’t in the cards -- but what’s amazing about the brand’s continued growth is that it has helped redefine a water set that appeared to have been stretched to its limits.

It’s Essentia that brought the term “Premium Hydration” into common industry usage and it’s Essentia that’s likely to be the next sale at an eye-popping price tag. Whether or not that exit ultimately comes, Essentia is the ultimate example of how seemingly small changes, well executed and well-reasoned, can help a 22-year-old functional water company become our Brand of the Year in 2019.

PERSON OF THE YEAR Daina Trout, CEO and Co-founder, Health-Ade Kombucha We shouldn’t have been surprised when Daina Trout took to LinkedIn to defend the honor of smaller kombucha companies earlier this year. After all, she’s been taking on GT Dave and his kombucha brand for years, and isn’t going to stand down just because there’s a bigger company in the fight. That’s not to say we’re taking sides here -- what we’re saying is that Daina embodies the challenger spirit of the true entrepreneur, pushing the point of difference of her brand and her ideals and passionately fighting for their right to exist and grow. And Health-Ade has certainly grown in recent years, cementing its place at the front of the pack of second-generation kombucha brands, using a flavor style and approachable marketing that makes it less of a dare for the consumer to try it, and more of an invitation instead.

Daina has shown more than just an inclination to build a business, however. She’s been a great contributor to the community of entrepreneurs, including backing women entrepreneurs of all backgrounds and product types -- and, again, being willing to battle, as she recently took a stand concerning a sexist training program at Ernst & Young, where the brand had been chosen as a finalist for Entrepreneur of the Year.

RISING STARS Koia

When it launched at Whole Foods in 2016, the success of plant-based protein drink line Koia was anything but assured.

In a category traditionally dominated by legacy fitness-focused brands working with dairy ingredients, the brand stood out, at the time, as a defiant exception to the norm. But how things have changed: Within 18 months of its debut, the Los Angeles-based brand had become “the most productive refrigerated protein brand in the natural channel,” according to New Hope Network. Over the last two years, Koia has kept up its relentless pace, tripling its retail presence from 1,400 to over 5,000 points of distribution and picking up major chains like Target, Walmart, Publix, H-E-B and others along the way.

Yet while adding more placements, this year the company has shown it can grow without losing focus on its core mission

At BevNET, we’ve had the privilege of watching Daina and Health-Ade evolve, from winning New Beverage Showdown 6 to earning investment from First Beverage Group, CAVU, and now The Coca-Cola Company. But we’ve also had the privilege of getting closer to her and her leadership team -- alongside co-founders Justin Trout and Vanessa Dew -- and to see the inclusive and fun approach they’ve taken to their growing business.

We look forward to watching her continue it for years to come.

of bringing better nutrition to the widest audience of consumers possible through product innovation — see January’s launch of a three-SKU Keto line — and reducing price from $4.99 to $3.99 per 12 oz. bottle, in addition to landing at 7-Eleven as part of the c-store retailer’s better-for-you beverage set refresh in May. Though high-tech meat alternatives may have dominated the bigger conversation around plant-based protein in 2019, Koia’s ability to scale in an exploding category with purpose, personality and speed make them worthy of their own headlines this year. With global plant-based protein consumption expected to double by 2025, we expect Koia’s star to keep soaring for some time.

Kitu Life

As one c-store retailer, responding to a survey from Wells Fargo Securities analysts in July, put it, “There is a new brand

called Super Coffee that is capturing market share and in some of our stores outselling Starbucks and Dunkin’.” We can concur: since brothers Jim, Jake and Jordan DeCicco first presented at New Beverage Showdown 12 at BevNET Live Winter 2016, we’ve watched as Super Coffee’s parent company, Kitu Life, has grown from selling its protein-and-MCT oil-infused coffee out of a Philadelphia University dorm room to becoming a nimble, innovative startup that is punching well above its weight against its big-name competitors in the ready-todrink coffee category. Building off last year’s expansion into creamers, this year Kitu Life solidified Super Coffee as a full-fledged function-forward platform brand working across a range of different use occasions, flavors and formats on its way towards passing $30 million in annual revenue, up from $5 million in 2018. Having secured exclusive trademark rights to “Super Coffee,” the company took an aggressive approach to innovations both big and small, with the launch of Super Cold Brew in 11 oz. singleserving and multiserve bottles balanced by the introduction of Super Espresso and Triple Shot Espresso in 6 oz. cans, along with the debut of Super Coffee in Keurig K-Cups in 2020. All the while, the brand 27

kept driving growth through execution, adding heavyweight distributors (Big Geyser, Polar) and generating velocities in the Northeast that rivaled — or outpaced — the likes of Starbucks, La Colombe, Dunkin’ and others. While the DeCiccos may not have invented the concept of an extra-functional coffee, the brothers have helped put Super Coffee in optimal position to bring it further into the consciousness of mainstream consumers.

OWYN

When Halen Brands acquired Only What You Need (OWYN) in March 2017, CEO Jason Cohen said at the time that the CPG portfolio company’s pre-existing relationships with retailers and distributors would mean the brand could be quickly launched into the marketplace. And quick it was. In just two years OWYN’s core protein drink line has become a national player.

Investing in the plant-based movement to provide one of the best tasting and best marketed products in the category, Halen employed a channel strategy to avoid mainstream competitors like Ensure, Orgain and Muscle Milk through a focus on natural and independent accounts that provided the foundation for the brand’s current conventional channel expansion. As OWYN’s newly appointed president Mark Olivieri told BevNET in November, retailers are recognizing the brand’s resonance with consumers as the conversation has shifted from “who are you guys” to “what else can you do for me?” And OWYN appears poised to do a lot. The brand has expanded its product offerings to maximize its demographic reach with meal replacements for older consumers and plant-based milks for kids. Meanwhile, they’ve remained focused on sustained growth for the core line with major retail launches in Albertsons/Safeway, Kroger and Target happening in the first quarter of 2020.

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LifeAID

When functional beverage brand LifeAID first made a name for its workout-based FitAID line through its partnership with Crossfit, it seemed like the company had settled into a strategy of cornering niche target demographics through a focus on hyper-specific use occasions such as partying, travelling and golfing. But after several years of incremental gains, 2019 finally saw LifeAID and its entire product portfolio break into the mainstream. This past year the company’s risky take on functional beverages saw a vast expansion as it tripled its retail footprint, established a robust DSD network in the West and made nationwide expansions in major outlets like Walmart and CVS. Co-founders Orion Melehan and Aaron Hinde said that LifeAID’s mainstream breakout was always the long term plan, even as it spent years with an emphasis on narrow channels -- part of an “incubation” strategy that through close customer relationships and ROI driven marketing is finally seeing validation in the broader market. Earlier this year, LifeAID raised $7.7 million in April to fuel this growth and now, with Fitness, Focus, Immunity, Party, and Golf all covered, the company has introduced sugar free varieties with FitAID Zero and FitAID RxZero. And the innovation isn’t done yet: in 2020 the brand introduced CBD as the latest addition to its beverage portfolio -- making it one of just a handful of established brands to date to jump into the hemp space.

BEST PACKAGING DESIGN Olipop When you have a drink that provides tasty, low-calorie refreshment with added functional benefits, you’re already off to a good start as a brand. But Olipop didn’t stop there, creating a stylish, attractive and inviting can that’s worthy of the liquid

inside. The package has a polished retrovibe that reflects the brand’s modern take on soda, with a simple, eye-catching font matched with graphics and iconography that makes each of the three SKUs easily identifiable. The result is a package that bridges the gap between traditional soft drinks and the new generation of functional beverages with style and flair to spare.

BEST MARKETING CAMPAIGN Liquid Death What would it take for you to sell your soul? Fame? Riches? Power? Maybe that’s thinking too big; as we saw this year, Liquid Death found thousands of people who would readily risk eternal damnation for a free can of water. The California-based startup made waves this year with a campaign to give out free cans of water to anyone who signed a legally binding contract (drafted by what we’re told is a real lawyer) giving the company ownership of their souls.

But that’s barely scratching the surface of Liquid Death’s marketing prowess.

Founded by advertising creative Mike Cessario, the brand has made a facemelting impact this year by speaking directly to a targeted set of dark-humored consumers and hitting the mark every time. The company has released videos showing a hapless captive being waterboarded with their product, encouraged people to send in photos of their urine for a nutritionist to judge their hydration level, and even hired a witch doctor to put a demon-summoning curse on their entire October production run (they then sold the demon-reversal spell online for $1). The collective result has been countercultural street cred; it’s no wonder actor Joe Mangianello, whose streetwear line Death Saves follows a similar aesthetic, signed on as an ambassador and investor in August.

Liquid Death doesn’t want to be for everyone and they’re more than happy to offend conservative sensibilities. But the heavy metal approach has resulted in a loyal consumer base with plenty of room to grow. And if the company holds onto those souls, they could have that consumer in their pocket literally forever.

BEST NEW PRODUCTS Olipop

Olipop’s vibrant imagery may have won our Best Packaging Design award, but it’s the product inside that package that makes it one of our Best New Products of the year. Packed with prebiotics, Olipop’s sparkling tonics are positioned as a wellnessminded alternative to CSDs: The brand’s botanical-flavored Cinnamon Cola, Ginger Lemon and Strawberry Vanilla varieties only contain 3 grams of sugar or less per 12 oz. can.

But thanks to skillful use of juice concentrates, syrups, and stevia, Olipop captures the full-bodied sweetness of a classic fountain soda at a fraction of the calories.

La Colombe Oat Milk Draft Latte

In the highly competitive ready-to-drink coffee space, it takes something special to get our attention. La Colombe managed to do just that with the introduction of its canned dairy-based Draft Latte line in 2016, and they did it again this year with the launch of Draft

Latte with Oat Milk, available in Original, Vanilla and Caramel varieties. More than simply developing a non-dairy counterpart to the original line, La Colombe has used the Draft Latte template as a canvas to showcase their mastery of plant-based ingredients and coffee blending, creating a superbly crafted cold brew that is among the best RTD coffees we’ve ever tasted.

Recess

In 2019, there was a new CBD beverage being released seemingly every other day (that may only be a slight exaggeration).

But among the wave of “green rush” drinks, Recess has stood out as among the best of the batch through its focus on “chill” branding, added function and top notch flavor. The company’s sparkling waters blend hemp extract with adaptogens such as american ginseng, L-theanine and schisandra for relaxation and recharge use occasions while avoiding single-fruit sparkling water flavor cliches through varieties such as Blackberry Chai, Peach Ginger and Pomegranate Hibiscus.

The Bitter Housewife Bitters & Soda With cocktails and premium mixers rising, bitters maker The Bitter Housewife has married the trend of complex flavor profiles with the consumer demand for zero calorie beverages. The result,

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Aromatic Bitters & Soda, is a sparkling beverage featuring a long list of robust ingredients -- including dried cherries, ginger, cinnamon, nutmeg, wild cherry bark, grains of paradise, sarsaparilla, quassia, allspice, gentian and cloves -- that, per the can, is “free of caffeine, sugar, and sh*t you don’t need.” While Bitters & Soda makes for a great mixer, more importantly we’ve found the drink nails the bitterness level just right to work as a crushable midday refresher on its own.

Kitu Life Super Espresso As retailers have reported Kitu Life’s flagship Super Coffee products going toe-to-toe with products like Starbucks’ Frappuccinos, the New York-based startup has found its answer to the Doubleshot. Bolstered by slick packaging, Super Espresso packs a potent combination of 180 mg of caffeine, 5 grams of protein and 40 calories per 6 oz. can, complementing its quick energy boost with added function in the form of MCT oil and L-theanine. With Super Espresso, Kitu Life has built another solid plank in its expanding platform that brings together flavor and function beautifully.

GT’s Aqua Kefir

GT’s Living Foods will be celebrating its 25th anniversary in 2020, but even after two-anda-half decades, the kombucha pioneer continues to prove

itself a forward-thinking innovator with a steady flow of annual product launches.

Chief among this year’s crop was Aqua Kefir, a six-SKU line positioned as sparkling probiotic drinks that features Coconut Lime, Pear Ginger, Pomegranate, Orange Peach Mango and Pink Grapefruit varieties. The line’s packaging falls in line with GT’s established visual aesthetic that speaks to the brand’s existing consumers, while creating new opportunities with shoppers who may not be kombucha drinkers.

EBOOST

Natural energy and recovery drink brand EBOOST has featured in a range of different formats over the course of its decade-long history, but the wait has been worthwhile, thanks to this year’s debut as a 12 oz. ready-to-drink “SuperFuel.” Amongst a growing field of natural clean energy drinks, EBOOST stood out for its crisp fruit flavors (Ginger Lime, Orange Mango and Strawberry Lemonade) and infusion of on-trend ingredients including nootropics, electrolytes, caffeine and botanicals.

Moreover, the brand put all that together in a vibrant package with a modern and unique aesthetic that’s both fun and approachable. It may have taken some time for the brand to find its footing, but SuperFuel has EBOOST moving forward with confidence.

Lemon Perfect

Even really old, really good ideas can use the occasional refresh. Lemonade is pretty much as old and as good as ideas come, but this year Lemon Perfect managed to leave us pleasantly surprised with its polished, vibrant and eye-catching take on an old classic. They’ve smartly refined the basics -- blending organic cold-pressed lemon juice with organic flavors and using natural sweeteners to reduce calories -- and delicately balanced the formulation to replace sugar with erythritol and stevia without sacrificing flavor. Meanwhile, the brand’s slick branding and bright, inviting design gives it the vibe of an established player, rather than a new startup. We didn’t think lemonade could be improved without losing its broad appeal, but Lemon Perfect has succeeded in doing just that.

Revive Sparkling Kombucha California-based kombucha brewer Revive has made incremental product tweaks and improvements part of its growth strategy, introducing new flavors and packaging designs over the years since its launch. But there was nothing incremental about the launch of Revive Sparkling Kombucha this year, a major new innovation that puts the brand in position to scale in exciting new ways. As one of just a small handful of shelf-stable products in the

category, the four-SKU line, sold in 12 oz. cans, serves as a convenient and approachable format for consumers -- not to mention distributors and national retailers -- to get to know the brand. But make no mistake-- this isn’t just a packaging play. The liquid itself is just as well-crafted as Revive’s core lineup, balancing the light effervescence of sparkling water with refreshing fruit flavors like Mango Orange and Citrus Ginger, all while keeping calories (20 per 12 oz. can) and sugar (5 grams) low. Revive took a risk in leaping from refrigerated to shelf-stable kombucha, but they have stuck the landing in style.

Hoplark HopTea The Hoplemousse One

As the winner of New Beverage Showdown 16 at BevNET Live Winter 2018, we’ve been fans of Boulder, Coloradobased Hoplark HopTea for some time. But despite the brand’s hot start, its latest release, The Hoplemousse One, shows HopLark is already thinking several steps ahead.

Blending organic grapefruit juice and white tea lightly hopped with sweet lemondrop and simcoe hops, the simpleyet-complex flavor profile is maybe the best example yet of HopLark’s ability to craft a truly satisfying non-alcoholic experience-- and one with just 30 calories and 6 grams of sugar per 16 oz. can.

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For many consumers, coffee is the original functional beverage.

The drink’s natural caffeine content has made it a top global commodity for centuries and in the modern era the fast-growing market for ready-to-drink coffee -- over $3.2 billion in retail sales for the 52-week period ending Jan. 15, according to market research firm IRI -- shows many consumers still like to get their energy from a cup (or can or bottle) of joe.

The emergence of cold brew in the U.S. market this past decade has driven new consumer interest in the coffee category and inspired a wave of startup brands looking to build on the innovation. Today, the cold brew trend, though far from mature and still emerging, appears to have cemented itself as a category mainstay, according to Euromonitor consultant Matthew Barry, who said that despite its small size is helping drive sustained overall category growth.

While indulgent coffee drinks still dominate sales growth, they’re growing at a much slower rate; with cold brew now established, innovation among entrepreneurial brands has turned toward what Barry calls “emerging functionality,” meaning any added functional ingredient that goes beyond caffeine, such as MCT oil, collagen, protein, nootropics, or CBD. Though Barry is careful to note that functional coffee is still a small sliver of the overall category, just “a few percentage points” compared to the leading indulgent and energy-focused sectors, the trend towards functional innovation presents one of the biggest opportunities to sustain continued category growth over time, he said.

“The development of cold brew has enabled the functional 32 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

segment to exist,” Barry told BevNET. “Before, it was still all indulgent products, you weren’t really going to have a Frappuccino with MCT oil, it didn’t make a lot of sense as a functional beverage. But now cold brew gives you that potential there. Cold brew’s emergence was necessary for this next segment to come out.”

When Bulletproof 360 launched in 2013, the company’s high-fat spin on low-carb diets helped popularize adding butter to coffee to increase satiety and promote weight loss, along with functional ingredients such as collagen, which promotes beauty and skincare, and MCT oil, which can aid in weight loss and provide mental stimulation. The company, which launched its own RTD line in 2017, has since been joined -- and in some cases eclipsed -- in the functional coffee space by a number of brands such as Kitu Life Super Coffee, Picnik, Koia, and Califia Farms, the latter of which released a Keto Coffee SKU in January at Winter Fancy Food Show 2020. Meanwhile, brands like High Brew and STOK have released coffees with added protein and protein drink makers such as Iconic and OWYN have been able to broaden their product portfolios with caffeinated SKUs flavored with cold brew.

For brain boosting function, brands such as Pop & Bottle, Vitacup, Humblemaker, Coffee Boosters and pre-launch startup Taika have tapped into ingredients like L-theanine, antioxidants and vitamins to promote a controlled energy boost and provide added health benefits. And with CBD standing tall as one of the top breakout trends of 2019, small brands such as Good Day, Cuvee Coffee, and Abracadabra Coffee Co. have looked to com-

bine the purported benefits of cannabidiol with caffeine; meanwhile, one of the country’s largest emerging cannabis producers, Caliva, is taking steps into food and beverage with CBD-infused coffee brand Soul Grind.

Mike Burgmaier, managing director and co-founder of Whipstitch Capital, told BevNET that functional brands are already having an impact on the category. Many functional coffee products, he said, are reporting strong direct-to-consumer ecommerce sales in addition to growing retail sales. As well, functionality has given startups a key point of differentiation from strategics, which broadly continue to focus on indulgent (Starbucks Frappuccino or McDonald’s McCafe, for example) or energy-focused products (Java Monster or Starbucks Double and Triple Shot).

“There’s a huge opportunity for all these brands to become an authentic offering,” Burgmaier said. “When you’ve got the elephants in the room with Starbucks and other established brands, but more and more, even though they’re gigantic, they are going to get marginalized by the up-and-coming brands and the alternatives that consumers have to get their coffee with that functionality.”

MCTS LOOK TO PLAY BEYOND KETO While other brands have followed more closely in the footprints of Bulletproof -- Austin, Texas-based Picnik and Los Angelesbased startup Grass Fed Coffee have both sought to gain a foothold in the natural and specialty channel through cold brew butter coffees -- Bulletproof itself has focused on creating a dietbased, cross-category lifestyle brand which also sells supplements and bars. The company reported $1.9 million in annual retail sales for its RTD line (which doesn’t include its robust online sales), according to IRI, but Barry noted that the brand’s success is likely more reflective of the popularity of keto-adjacent diets than it is on a demand for functional coffee.

“Bulletproof didn’t emerge from coffee trends rather than it was keto finding its way into coffee,” Barry said.

But other coffee brands with keto-friendly products are now looking to make broader appeals to mainstream consumers.

Among the current leaders in functional coffee is Kitu Super Coffee, the maker of a line of zero sugar MCT oil-infused coffees containing 80 calories, 10 grams of protein and 200 mg of caffeine per 12 oz. bottle. According to IRI, the brand reported

BIG COFFEE BREWS THE FUTURE OF RTDS For the major U.S. beverage brands, coffee is one of the centerpieces of their respective strategic growth plans.

From cold brew colas to energy-based brews, here’s a rundown on how Coca-Cola, Pepsi/Starbucks and Keurig Dr Pepper are assembling their coffee portfolios.

COCA-COLA Despite Coca-Cola’s wide array of coffee products, the soda giant hasn’t yet found a true home for the category within its portfolio. But there are signs that may be changing.

Much of the speculation around Coke’s coffee strategy is how its $5.1 billion acquisition of Costa Coffee in 2018 fits into the equation. This summer, Coke introduced a threeSKU line of ready-to-drink iced coffees under the Costa trademark in the U.K. But, much as it has with the launch of Coca-Cola Energy in January, the soda giant is also hoping to bring a foreign-exclusive brand into the States with Coca-Cola With Coffee. Available in three flavors in 12 oz. cans, the line is expected to make its U.S. debut this spring.

In the meantime, Coke is going deeper with some of its existing brands. The company’s cold brew portfolio has splintered: in the grab-and-go segment, Far Coast has been sidelined, and instead Dunkin’ Donuts was used for the introduction of shelf-stable cold brew in 9 oz. aluminum bottles in October. Coke is also using Honest to go after premium cold brew — the Honest product is organic and Free Trade certified and packaged in glass bottles — with a new line that debuted in on-premise locations on the West Coast in September. Sales of Dunkin’ iced coffees fell slightly by 4.6% to $151.9 million last year.

Meanwhile, sales of Coke’s McCafe brand line of coffee frappes fell 34.4% to $20.5 million. But Monster’s Java line, which is distributed through Coke’s nationwide bottling network, is among the category’s highest performers, growing 8.6% to over $503 million in dollar sales, according to IRI. Even the January acquisition of dairy brand Fairlife has implications for the coffee category: Coke used the brand to enter the rapidly expanding creamer segment with a four-SKU line the same month.

PEPSICO/STARBUCKS If you needed further confirmation of the strength of the RTD coffee market, consider this: it’s enough to make Pepsi take another crack at coffee soda. In December, the company announced the launch of Pepsi Cafe, a blend of Arabica coffee and original Pepsi cola that will arrive

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$13.9 million in retail sales in the 52-weeks ending January 15.

While many functional coffee brands still compete primarily online and in the natural and specialty channel, Super Coffee has made headway in conventional retail outlets, with expansions into retailers such as Walmart and Target, co-founder and CEO Jim DeCicco told BevNET. “We’re trying to bridge that gap,” DeCicco said of the brand’s retail strategy. “On one side, you have novel ideas like a Bulletproof or a REBBL that’s really focused [respectively] on biohacking or adaptogenic ingredients. I think there’s a very small target for that in the Erewhons and the Whole Foods of the world.

On the other side of the spectrum you have familiarity -- that might be a Starbucks Frappuccino. We’re trying to be the middle ground. We need to build a brand for Walmart, rather than Whole Foods.”

CAPPUCCINO/ICED COFFEE BRAND

DOLLAR SALES

CHANGE vs. YEAR EARLIER

Starbucks Frappuccino

$1,159,681,559

7.0%

Starbucks Doubleshot

$566,699,304

-10.7%

Java Monster

$503,510,806

8.6% -4.0%

Coca Cola Dunkin’ Donuts

$151,981,691

Starbucks Tripleshot

$97,315,386

N/A

Starbucks

$76,445,174

-12.5%

Private Label

$49,088,914

-6.0%

Starbucks Cold Brew

$39,123,014

-8.5%

VPX Bang

$33,953,556

N/A

Monster Caffé

$33,600,024

-29.4%

Starbucks Doubleshot Light

$30,212,014

-4.9%

La Colombe

$21,898,255

38.3%

Coca Cola McCafé

$20,593,360

-34.4%

Monster

$19,217,410

-29.9%

High Brew

$15,316,305

-24.0%

Forto

$14,751,762

102.6%

Kitu Super Coffee

$13,999,714

N/A

Peet’s

$10,595,470

435.0%

Bullet Proof Brain Octane

$1,949,840

202.4%

S F 1850 CA The Folger Coffee

$1,855,468

99.1%

SOURCE: IRI, a Chicago-based market research firm-@iriworldwide% 52 Weeks through 12/29/19

Though Super Coffee does have strong placements in the natural and specialty channel, DeCicco said that the brand has honed its messaging to fit different consumer needs. Although the popularity of the keto diet has been a boon for Super Coffee, he said, keto followers are “low-hanging fruit” for the brand and marketing in retailers such as Whole Foods requires less consumer education. In mainstream outlets, however, the brand focuses less on explaining MCTs and more on emphasizing that the drink features strong flavor with zero sugar, a move that DeCicco believes allows the company to not rely on the keto trend long term should the diet’s popularity ever fade.

“More than functionality, more than convenience, a product still has to taste good,” DeCicco said. “And that’s the challenge functional brands face -- how can you still promise the flavor of a mainstream product, like a Starbucks Frappuccino that has 36 34 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

at retailers nationwide in April in Original and Vanilla flavors, featuring nearly twice as much caffeine as regular Pepsi.

Yet that product, along with several of the new innovations under Pepsi’s Starbucks partnership, indicates the company is still building mainly on the foundations of indulgence and energy; Starbucks Tripleshot Energy now has an Extra Strength Dark Roast SKU (225 mg caffeine) in 15 oz. cans, while Frappuccino has added a Brown Butter Caramel flavor. The introduction of a nitrogen-infused Starbucks cold brew in 9.6 oz. cans, previewed at NACS, represents more on-trend innovation.

For Starbucks, 2020 was also about filling out a few of the areas in which it had yet to dabble: through its CPG partnership with Nestle, it introduced a two-SKU line of cold brew concentrates (in both multi-serve and single-serving packages) and a three-SKU line of coffee creamers in 28 oz. carafes.

The cafe chain also partnered with Oatly to use the brand as its on-premise oat milk supplier for a test run of 1,300 Midwest stores.

KEURIG DR PEPPER Coffee has always been a foundational piece of Keurig Dr Pepper (KDP), and the company is well positioned to continue growing deep into the segment.

In shelf-stable coffee, High Brew, FORTO and Peet’s continue to grow in different directions. The latter is positioned to battle with Starbucks for a share of the convenience store cooler, offering indulgent lines such as the new Blended Coffee, which debuted at last year’s NACS trade show. KDP underlined its commitment to building Peet’s as a shelf-stable brand in its decision to suspend its regional cold chain distribution network, Coldcraft, in October. Peet’s shelf-stable iced coffees grew 435% last year to over $10.5 million, according to IRI. Meanwhile, FORTO, now sold in over 50,000 retailers, continues to make strides in both its original shot format and its 11 oz. full-sized product. The brand enjoyed another solid year: dollar sales grew 102.6% to over $14.7 million year-over-year through December, and it welcomed former NBA superstar Shaquille O’Neal as a new investor and brand ambassador in June. Perhaps most importantly, the relationship between KDP and FORTO’s parent company, Dyla Brands, appears to be as strong as ever. KDP led a $20 million funding round in Dyla in March, and followed that up by assigning Dyla responsibility for its $100 million-plus powdered mix and liquid concentrate business.

For High Brew, the past year yielded mixed results. The brand added singers Halsey and Shakira to its roster of celebrity investors in July, launched a new ad campaign and introduced a line of plant-based lattes made with coconut and cashew milk at Expo West 2019. However, year-over-year dollar sales fell 24% to $15.3 million, according to IRI.

By Martín Caballero

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HARD COFFEE

grams of sugar and 300 calories? People expect that indulgent flavor, so for us we need to be able to provide that flavor without any of the sugar or unnecessary calories before we can focus on MCT oil or lactose free protein.”

Chris Hunter, CEO of plant-based protein drink maker Koia, which in December launched a coffee line containing 5 grams of MCT oil, said his brand aims for “shock value” during sampling efforts; Consumers trying the product for the first time, he said, see the low sugar and high protein content of the drink and prepare themselves for poor flavor or texture only to be surprised by the taste.

According to Hunter, “people are expecting to have to sacrifice flavor for health,” but consumers still crave indulgence. By mimicking the flavor profiles of Frappuccinos and other high calorie coffees, Koia is focused on being a better-for-you alternative.

CBD CREATES A CHILL OPPORTUNITY Just as keto found its way into coffee, cannabis and CBD have also charted a course for the drink, Barry said.

The purported calming effects of CBD may at first seem like a counterintuitive addition to the caffeine buzz of coffee, however brands looking to marry the two claim the interaction creates a more level, less jittery energy. While some smaller coffee makers such as Abracadabra and Cuvee have introduced CBD (or hemp oil) SKUs to their existing coffee portfolio, others such as Good Day and Caliva’s Soul Grind have come out with coffee lines as part of a broader CBD play.

According to Chris Cuvelier, CEO of Zola and head of beverage at Caliva, Soul Grind is the California-based company’s first CBD-infused beverage for what will eventually be a broad, cross-category portfolio of cannabis drink brands. The company chose coffee as its first category, he said, due to the strong market performance of cold brew but intends to leverage its experience within the cannabis industry to emphasize CBD as the key functional ingredient.

“We’ve got a very unique opportunity to be able to leverage our depth within the cannabis market that no other coffee company can do,” Cuvelier said. “The flip side of that is if you have a company with expertise in coffee coming into the market with a CBD SKU, it becomes another entry point for the consumer. For us it’s about the overall functional experience.”

Good Day, which also sells CBD-infused sparkling water and chamomile tea, has focused on marketing a platform brand with multiple use occasions. For the company, coffee provides an energy play while the additional products focus on refreshment 36 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

Coffee and beer brands are stirring the pot with new products blurring category lines that offer “hard” coffees appealing to a younger demographic of 21-plus consumers. Offering low ABV and a bit of caffeine, hard coffee began to grow last year as major coffee and beer makers expanded their portfolios to meet a set of consumer interests that have grown beyond traditional beer.

Last summer, Pabst Blue Ribbon rolled out Hard Coffee (5% ABV) with 30 mg of caffeine in test markets. It was followed in September by La Colombe and MillerCoors’ Hard Cold Brew Coffee (4.2% ABV), with 50 mg of caffeine, which launched with a limited run across four cities.

Different from low caffeine, coffee-flavored beers, hard coffee is a flavored malt beverage (FMB), a segment which saw dollar sales increase 43% last year, according to market research firm IRI, (much of that growth was driven by the hard seltzer boom). The brewing process for an FMB starts with a neutral malt base brewed similar to most beer, though the malt base’s hops, yeast and malt flavor, aroma, and color are stripped out of it. The resulting alcohol is then mixed with coffee and other flavorings.

With the alcohol category in “major flux,” La Colombe founder and CEO Todd Carmichael said that “decision makers are clearly paying attention to potential opportunities to re-stabilize,” and hard seltzer has added to the emerging category’s tailwinds.

For Pabst Blue Ribbon, this changing alcohol landscape influenced its innovation strategy, said PBR brand manager John Newhouse. Though it once launched a now-discontinued coffee-flavored American pale ale, the beer maker wanted to develop a new product with more “mainstream appeal,” he said.

“We realized we had to start branching out beyond just beer,” Newhouse added. “Beer sales are declining but other subcategories are starting to grow.”

Ultimately, he said, hard coffee is simply an extension of the continuing trend of brands bringing non-alcoholic beverages (seltzer, lemonade) into the alcoholic beverage category.

In October, cold brew maker High Brew Coffee teamed up with New Belgium Brewing on Nitro Cold Brew Cream Ale, a product that toes the line between hard coffee and coffee beer, as the beer is directly infused with the brand’s cold brew coffee to pack a harder caffeine punch (20 mg per 12 oz. can) than many coffee-flavored beers (Harpoon Brewing’s Dunkin’ Coffee Porter has less than 3 mg of caffeine per 12 oz. serving).

High Brew Coffee founder and CEO David Smith said when he connected with the New Belgium team, they were looking to launch an “innovative initiative.” He said he sees synergies between craft beer and cold brew coffee (both often kegged with nitrogen) that make the two a good fit.

“Not only do they make a lot of sense to blend together, but they’re both rooted in the same foundation of complexity of how crafty you can get with both products,” he said. “I think

all of that supports [hard coffee being] a longer term trend versus the shorter term fad.”

With the tagline “Rally Like a Grown-Up,” Carmichael said La Colombe’s Hard Cold Brew offers a healthier adult alternative to spirits mixed with sugary energy drinks, and as such fits into a variety of social occasions.

While it may be too early to determine the demographic most widely purchasing these new hard coffee products, both Newhouse and Smith said they’re a clear fit for younger 21-plus consumers, whether it be as a different vehicle for caffeine or a new form of alcohol.

“That trend of looking for more approachable ways to find your caffeine mends well with the craft beer world, and that will continue to grow over time,” said Smith.

Though these products had limited launches, brands are gaining confidence in hard coffee’s potential for growth.

The New Belgium and High Brew collaboration is available through February, and Smith said it was well enough received -- its initial production was intended to last 90 days, but ran out in 30 -- that a “bigger partnership” could be possible. After launching in test markets, PBR began shipping its product nationally in January, with the goal to be in all 50 states in the

coming months. Newhouse said this year Hard Coffee will be a “major part” of PBR’s portfolio, with a major media push in the works. Carmichael said the power of the localized launch helped the brand to “build strength” for a bigger national push.

“It’s difficult for me to imagine any coffee as a fad, including hard coffee,” said Carmichael. “Simply put, America’s beverage is coffee and has always been coffee. This is an extension of that love for the magic bean, a new time and place to enjoy our favorite beverage.”

One area that still has yet to be ironed out may be the category’s potential for regulatory interference: high-test energy brand Four Loko was forced to remove caffeine from its ingredients by the FDA after concerns rose about consumer injury; if ABV increased in these hard coffees, and concerns grow, could the next step be “Hard Decaf?”

and relaxation.

As CBD coffee brands hit the market, however, they face the challenge of federal regulations. The continued lack of guidance from the U.S. Food and Drug Administration (FDA) has limited growth opportunities for CBD food and beverage brands across the board and although some states have moved to clarify the law on CBD beverage products, in most markets brands are subject to search and seizure by government organizations.

In January 2019, CBD beverage maker Kickback (formerly Kickback Cold Brew) had its stock of its flagship cold brew latte line seized by the California Department of Public Health, which raided the company’s copacking partner, CEO Pierre Real told BevNET. According to Real, the company now views the government crackdown as “a blessing in disguise” as the company took time to reassess its product line and ultimately dropped the coffee line to focus on developing CBD-infused lemonades. While CBD in beverage remains a legal risk for the foreseeable future, coffee proved to be an even more difficult category for Kickback to navigate due to the small company’s inability to develop a shelf-stable product that retained its flavor. Working with CBD, Real said, exacerbated the challenge of scaling within the cold chain and most distributors currently partnering with CBD brands don’t have refrigerated warehousing.

GROWING OUT OF THE NICHE While Euromonitor’s Barry believes functional coffee may provide long term growth for the category, the fact is that it still occupies a niche, he said. Standard cold brew products are expected to continue growing for the foreseeable future, but it’s more likely that any functional offshoots beyond the core caffeine effect won’t be a commanding growth driver until cold brew reaches maturity.

“We talk about cold brew all the time -- it probably takes up over half of all the discussion about coffee -- but in terms of actual sales it’s still pretty small,” Barry said. “All the cold brews together don’t equal the Frappuccino yet.”

But as consumers are faced with more options in the market, coffee drinkers are likely to embrace diversity, whether it’s iced versus cold brew, unique bean blends, or function.

“At the end of the day, coffee is so interesting compared to other categories,” Burgmaier said. “You look at Keurig Dr Pepper, which is committed to having many different coffee brands on their trucks and on the shelf, and that’s because that’s how consumers are. People want diversity with their coffee and they’re absolutely open to functionality, almost like becoming different dayparts of use with your ‘morning coffee.’”

By Erin Cabrey

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BRAND NEWS COFFEE

In September, La Colombe launched readyto-drink Oatmilk Draft Lattes in 9 oz. cans on Amazon and in select retailers nationwide, including Wegmans and Harris Teeter. The Oatmilk Draft Lattes will soon expand to 1,500 Target stores.

Available now via Kehe, Humblemaker Coffee Co.’s functional cold brew shot line extension consists of three new SKUs infused with various vitamins and minerals for targeted functions. The new shots include Boomtowne, a triple-strength cold brew shot with liquid multivitamin; La Fonda, an antioxidant-rich, Mexican coffee shot; and Black Sea, a Turkish coffee cold brew shot with cognitive health benefits.

Nitro cold brew coffee maker RISE Brewing Co. has announced two new partnerships, with national supermarket chain Kroger and with ReadyRefresh, Nestlé’s beverage home delivery service. Customers can purchase RISE Brewing Co.’s full product lineup at 2,000 Kroger locations across the country and at ReadyRefresh.com.

Kitu Life, Inc. makers of Super Coffee, launched Super Coffee K-Cups in January 2020, containing 200 mg of caffeine per pod and formulated with vitamins and antioxidants. Super Coffee K-Cups are available for purchase in four SKUs -- Mocha, Vanilla, Hazelnut and Dark Roast -- on the brand’s website and Amazon, as well as national retailers such as Sprouts, Kroger and Target.

Caveman Coffee Co. has launched a paleo and keto-friendly Cold Brew Latte line that is both sugar and dairy free. Vanilla and Pumpkin Spice, a seasonal flavor, debuted in Q4 2019, and Mocha and Chai will be released in spring. The original Caveman Coffee Co. Nitro is also now available in shelf-stable 11.5 oz. cans.

Organic cold brew maker Wandering Bear Coffee is growing its multi-serve format offerings with the introduction of 32 oz. Tetra boxes, each with a suggested retail price of $9.99. The brand will also be increasing the size of its retail coffee on-tap bag-in-box format from 36 oz. to 72 oz., which will have a suggested retail price of $19.99.

In 2019, Death Wish Coffee Co. released two products: an unsweetened black cold brew 38 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

and “Slightly Sweetened” black cold brew, each containing 300 mg of caffeine per 8 oz. can. A ready-to-drink latte, also in cans, is set to launch this year.

In recognition of the 2020 Women’s March, Uncommon Coffee Roasters will be highlighting the women at both their cafe and offices (where 80% of women at the company hold either a salaried or management position) as well as its work with the Zalmari Estate, a Women Care Certified coffee farm in Costa Rica. The brand will also release single-serve coffee pods that are 100% compostable and compatible with most Keurig brewers.

Nitro Beverage Co. has expanded its distribution into over 700 stores including Whole Foods and Central Market, and plans to begin rolling out in California starting in February. The brand will also introduce a New Orleans-style flavor early this year.

Quivr has launched a nitro decaf cold brew, made using a Select Water Process which removes caffeine from the coffee bean without the use of harmful chemicals or byproducts.

Nitro Decaf is now available on Amazon and the brand’s website.

Late last year, Nobl Beverages announced plans to release one new product per quarter in 2020. For winter, Nobl Beverages launched Snickerdoodle Oat Milk Latte, a vegan and allergen-friendly latte made with natural cinnamon, pure vanilla, organic oat milk, and infused with nitrogen.

Initially a direct-to-consumer brand, Taboo Brews will be hitting the road this summer with its mobile cafe to bring cups and cans of Taboo to consumers.

In fall 2019, Station Cold Brew launched Sparkling Cascara Iced Tea as well as Classic Black Cold Brew, the brand’s first shelfstable cold brew product, in a fully-recyclable Tetra Pak. This spring, the brand will introduce a shelf-stable oat milk latte featuring its New Orleans-style cold brew as the base.

Virginia-based cold brew coffee maker Snowing in Space is rolling out 4-packs in Whole Foods Mid-Atlantic stores for its flagship 12 oz. cold brew cans and for two of its 16 oz. nitro-infused varieties. Through

UNFI, in 2019 the brand expanded to over 500 grocery and natural food stores including Whole Foods Mid-Atlantic, Giant, Giant Martin’s and The Fresh Market, while growing self-distribution of cans and kegs to over 400 office and retail accounts in Virginia, Maryland and Washington, D.C. Following its initial debut in 2019, in January Verve Coffee Roasters introduced additional varieties for its Instant Craft Coffee. In addition to the existing Streelevel and Seabright blends, Verve is now offering on-the-go versions of its Buena Vista Dark Roast blend, Vancouver Decaf blend; and single-origin Reko. The brand will also be launching new flavors for its canned Flash Brew product in early 2020, including decaf and single-origin SKUs. Last year, Press Coffee released Original Cold Brew Coffee, available in 12 oz. cans, made by steeping coffee for 20 hours using a 15-barrel system.

Soffee is set to launch across all 27 Gelson’s Markets locations in two SKUs: The Hedonist (orange mocha) and The Purist (original flavor).

In 2019, Cafe Agave Spiked Cold Brew rolled out across 10 states: Nevada, California, New York, Arizona, Washington, Oregon, Colorado, Texas, Indiana and Iowa. The company launched in an additional five states in January 2020 and plans to be in 32 states by this spring.

Chameleon Cold Brew has launched Cold Brew Oat Milk Lattes in 8 oz. cans in two varieties: Maple and Dark Chocolate. The line is currently sold at Whole Foods Market nationwide, all Meijer supermarkets and select Hy-Vee locations.

Available in Michelin Star restaurants, upscale bakeries, and premium independent retailers across Northern California, Dripdash will be releasing new packaging in April 2020 for its Kyoto Drip Coffee and Maple Oatmilk Lavender Coffee.

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BRAND NEWS COFFEE

In October 2019, YouTube comedy stars Smosh launched its own coffee brand, My Favorite Coffee, made with specialtygrade, ethically and responsibly sourced coffee and packaged in recyclable and reusable PET amber bottles. My Favorite Coffee Cold Brew is currently available on the brand’s website in 6-packs of 12 oz. bottles for $30, or at a discounted rate via subscription.

Grady’s Cold Brew is now selling its New Orleans–style ground coffee blend on Amazon and its website.

Bizzy Coffee launched a new line of multiserve ready-to-drink organic cold brew coffees. Beginning in January 2020, its new 48 oz. ready-to-drink format will be available at Target and Hy-Vee in Light Roast, Medium Roast and Dark Roast, containing 320 mg, 290 mg and 280 mg of caffeine per 12 oz. serving, respectively.

Red Thread Coffee Co. has redesigned its packaging to better reflect product attributes such as “organic, “single origin” and “zero sugar” and to highlight that a portion of sales goes to local charities.

This year, MOJO Cold Brewed Coffee will be launching a new flavor -- Vanilla & Cinnamon Horchata, made with warm spices and offering subtle sweetness -introducing a multi-serve one liter bottle format.

Last year, NBA legend Shaquille O’Neal became co-owner of FORTO Coffee and will be the face of the brand in its 2020 marketing campaign. Caffeine content for both FORTO Coffee Shots and 11 oz. Energy Coffee has been increased to 225 mg, while the latter now features a redesigned CSD pull tab for a no-mess experience similar to a standard to-go coffee cup.

Cuvée Coffee is releasing four new flavors in its family of nitro-infused canned cold brews: Vanilla, Mocha, Banana and Lemon Ginger. Each is all-natural, nondairy and fat free, with 80 calories and 15 grams of sugar per 12 oz. can.

40 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

B Sweet nitro cold brew coffees and teas are now available nationwide through UNFI. Its Nitro Coffee Cold Brew along with its three Nitro Tea SKUs can be found in West Coast Whole Foods and Erewhon Markets and at all Fresh Market locations on the East Coast. Later this year, B Sweet will also be launching a new line of oatmilk-based beverages including Coffee Latte, Matcha Latte and Ube Latte made with Filipino purple yam.

In January, Califia introduced Oatmilk Creamers as well as an unsweetened oat milk-based version of Black & White cold brew in 10.5 oz bottles. Meanwhile, Califia’s Nitro Draft Lattes with Oatmilk are now available at Target nationwide with other retailers, including Sprouts, launching soon. Pure Black Blonde Roast Cold Brew Coffee is also now available in 48 oz. bottles.

Volant Coffee Co. recently launched two cold brew varieties, Original Black and Toasted Coconut, in Whole Foods SoPAC in California, Arizona and Nevada.

Zona Rosa’s bottled cold brew is now offered at Delicious Pizza in Hollywood and Los Angeles, while its coffee and espresso is available at Whole Foods Markets in the Los Angeles/Orange County area and at 365 by Whole Foods Markets in Silverlake and Santa Monica. Outside of California, the product is also sold at 365 by Whole Foods Markets locations in Lake Oswego, Ore., Cedar Park, Tex., and Akron, Ohio.

In November, REBBL released its inaugural Impact Report, highlighting the company’s social and environmental impact work, and announced its conversion to 100% post-consumer recycled bottles in 2020.

Riff Cold Brewed has announced the addition of two new SKUs to its Alter Ego line of cascara drinks: Sparkling Guava Passionfruit and Sparkling Blackberry.

Available in 12 oz. sleek cans for a suggested retail price of $2.99, Alter Ego delivers 100 mg of caffeine (about the same as a regular cup of coffee).

BY MARTÍN CABALLERO Spend enough time with anyone in the beverage industry and they’ll all eventually tell you the same thing: the most important thing a drink can do is taste good.

That old adage may still hold true, but it doesn’t make the entrepreneur’s job any easier. At the dawn of a new decade, consumers are not only demanding great taste, as they always have, but they’re also seeking answers to a litany of suddenly critical questions. Where was this fruit sourced? Is this plant-based?

What is this ingredient and how will it make me feel? And, of course, does this have CBD? Those queries, and others, will serve as the wellspring for beverage innovation in 2020, and BevNET sought out the expertise of suppliers, brands and industry experts to help explore the trends and market forces shaping flavors and ingredients this year.

FLAVORS: EXOTIC BUT ACCESSIBLE Seemingly year by year, consumers have become more open to and interested in a broadening array of beverage flavors. As the world has become more connected, ethnic and regional tastes that were once exotic curiosities have been introduced and, in some cases, embraced by a new generation of cultured shoppers seeking out new drinking experiences. That desire to explore looks set to continue in 2020.

“As consumers visit international destinations, many opt to live like a local to uncover a region’s cuisine and these foreign experiences have influenced the daily life of Millennials and Gen Z in particular, encouraging them to try new flavors and ingredients,” said Alex Massumoto, marketing associate at Synergy.

42 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

Looking ahead to what’s next, many we spoke with expect this year’s flavor innovations to carry a strong Asian influence.

With Tokyo set to host the 2020 Summer Olympic Games in July, Synergy noted that Japan will be “in the global spotlight in 2020,” which has inspired the company to focus on creating a Red Cherry Blossom flavor that combines “delicate floral notes with a subtle hint of red berries.” Micah Greenhill, beverage marketing manager at ADM, said he is also expecting to see expanding interest for Japanese cherry blossom — specially Sakura, the pink variety — as part of a “wider acceptance of exotic ingredients combined with flavors consumers already know and love.”

Beyond botanicals, Asian fruits and citrus flavors are also projected to grow in beverage. Dylan Thompson, marketing and consumer insights manager at Symrise Flavor Division North America, said that his company will continue to focus on “Accessible Asian” flavors, such as yuzu, calamansi, ume and misugaru.

In its 2020 U.S. Taste Charts, Kerry Flavors listed yuzu as an emerging flavor for dairy-based and hot beverages. Within cold beverages and water, however, Kerry listed “New Age Citrus” — a category which includes yuzu, calamansi, satsuma, dekopon and dalandan, among others — as a “key” flavor for 2020, while also noting lychee as one of the 20 fastest growing flavors in the last three years. Vinegar was also listed as an up-and-coming flavor for water and cold drinks.

Outside of sweet fruit flavors, the influence of traditional fermented foods from Asia is also beginning to be felt in beverages.

According to Christina Witter, director of corporate communications at Symrise, U.S. consumers are getting more comfortable with “funky” ingredients and flavors, as seen with the rise of

kombucha, drinking vinegars and even natural wine. Fermented flavors from Korea specifically, such as gochujang (a spicy red chili paste) and kimchi, will become more prominent this year, according to the Specialty Food Association’s (SFA) 2020 Trendspotter Panel. In its State of the Specialty Food Industry research study, the SFA noted that retail sales of refrigerated ready-to-drink functional beverages have grown 55%. Vinegar was also listed as an up-and-coming flavor for water and cold drinks in Kerry’s 2020 U.S. Taste Charts.

CONSUMERS: NO/LOW ALCOHOL Knowing what consumers don’t want is often just as important as knowing what they do want. And in 2020, they’ll likely be asking for less alcohol.

But even though they might not want some of the effects of drinking alcohol, consumers are still seeking familiar flavors inspired by spirits and cocktails. Health conscious millennials have helped drive the proliferation of high-end mocktails made with zero-proof spirits, exotic juices, and bitters, according to

beverage incubator Imbibe. The group expects beer, wine and spirits options with up to half of the alcohol by volume (ABV) of traditional products to continue growing. According to the 2020 Kerry Taste Charts, “alcohol” — a group which includes margarita, mojito, sangria, hops and other notes — is an “up and coming” flavor in water and cold beverages, meaning it is among the 20 fastest growing categories over the last three years.

“With all the fervor surrounding zero proof and alcohol-free bars, the interplay between soft and hard drinks has never been more tightly woven,” said Jonas Feliciano, manager, strategic marketing, global sugar reduction at Illinois-based Ingredion.

“While some indicators point to the rise of sober culture or the rejection of alcohol in favor of THC products, the result is a consumer base that is seeking the inherent sophistication of barrelaged bourbons in non-alcohol concepts such as flavored energy drinks or whiskey-infused coffee.”

According to Susan Zaripheh, group director, transformational 44 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

innovation at Coca-Cola North America, alcohol-free products that feature “adult beverage profiles” with complex flavors and sour/bitter notes will continue to gain steam in 2020. Coca-Cola has dipped its feet into the category with Bar None, a line of non-alcoholic mocktails that the company has been piloting in the Atlanta area since last year. “The emergence of consumers who want an adult beverage experience without the alcohol will accelerate, and we’ll likely see an increase in the introduction of zero-proof adult beverages,” she said.

Aiming to tie the trend of non-alcoholic drinks with consumer interest in “vintage” flavors, Synergy is making the 1920’s-era cocktail French 75 (gin, champagne, lemon juice, sugar) one of its featured flavors of 2020. That decision underscores the idea that consumers believe that elevated drinking experiences and non-alcoholic products are not mutually exclusive.

“Look for a continuation in 2020 with the trend expanding with more cocktails in cans and bottled mocktails that offer sophisticated alternatives for non-drinkers or curious consumers,” said Andrew Freeman, founder of San Francisco-based restau-

rant and hospitality consultancy group af&co and a member of the SFA Trendspotter Panel.

INGREDIENTS: MASTERING CBD Though still relatively new to the market, CBD (or hemp extract) beverages have quickly matured into a viable new category.

Yet despite the steady increase in consumer demand, brands are still exploring and experimenting with CBD formulations to create products that can deliver the expected functional benefits without sacrificing taste, a process that will continue into 2020.

In terms of the ingredient itself, product formulation is expected to improve as ingredient suppliers become more familiar with CBD’s chemical structure and behavior in liquid.

“We’re going to continue to see other innovations and developments in the industry as we learn more about how CBD products on the market hold up over time,” said Tom Gibson, director and flavor architect at Flavorman. “Specifically, we’ll see innova-

tion surrounding how to integrate hydrophobic compounds (like CBD) into finished beverages.”

With the range of CBD beverages continuing to grow across categories, suppliers are focused on delivering water-soluble CBD sources that are versatile and flavorless. If offered in an efficacious and easy-to-use format, CBD has vast potential, regulations notwithstanding, as a value-added functional ingredient in a wide range of both ready-to-drink and instant beverages.

“CBD will continue to thrive as an ingredient in beverages of all types,” said Gibson. “Maybe you have a flavored water or a natural soda; adding CBD allows you to take that beverage -- or

flavors that “support mental clarity and focus” will rise in demand in the coming year. Even a legacy strategic brand like Coca-Cola’s Powerade is open to embracing new functional offerings; the company’s new Powerade Ultra contains on-trend fitness ingredients like creatine and brain chain amino acids (BCAAs).

The shift in tack from brands reflects how consumers are now looking for food and beverages that will “help them fulfill their holistic health needs,” according to Christina Witter of Symrise.

“That means products and consumption occasions have the opportunity to add functional ingredients targeted at specific wellness properties like brain health, gut health, calming proper-

any beverage -- and essentially make it more functional, which has implications for line extensions as well as brand new products. Its potential in the beverage space parallels that of caffeine.”

ties and soft energy, just to name a few,” she said.

Gut health and digestion also continue to drive interest, with consumers “increasingly viewing digestive health as an important factor in overall wellbeing,” Greenhill added.

“We’re anticipating a large focus on digestive and metabolic health as many consumers link healthy digestion to playing a key role in both short-term and long-term health and well-being,” he said.

That health halo can also extend into flavoring. The desire for alternative natural sweeteners in reduced sugar products has helped drive interest in subtle, sweet flavors, like honey and florals.

“The health and wellness concept has evolved into an overall conscious state of awareness, embracing health of the body, mind and the environment,” said Massumoto. “This state of being is influencing consumers to look for beverage solutions that will complement their evolved state, creating an incredible room for innovation to support these claims.”

INGREDIENTS: FINE-TUNING FUNCTIONALITY After a decade of steady growth, functional beverages have found their place at U.S. retail. According to market research group SPINS, functional beverage categories -- including kombucha, energy, enhanced water and other drink types -- are up 5.9% cross-channel through April 2019. That growth is expected to continue, even as consumers begin demanding different -- and more specific -- types of functional benefits.

Part of that evolution can be already seen in the rise of CBD, which has been hailed by some for its anti-stress and relaxation effects. CBD’s popularity is indicative of consumer interest in holistic natural wellness products aimed at improving mood, sleep, cognition and other specific health areas. According to Micah Greenhill, beverage marketing manager at ADM, ingredients and 46 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

READY-TO-DRINK COCKTAILS SEE SIZEABLE GROWTH AS DRINKING HABITS CHANGE

BY JENNIFER CIRILLO For some time now, the analytic mantra ‘drinking less, but drinking better’ has been the chant du jour for both industry experts and companies. The movement, led by Millenials and Gen Z, suggests that consumers are going out less and opting for low-abv or premium spirits and that they’re also drinking fewer drinks throughout the evening.

There has been ample evidence of this move, as the premium spirits segment has posted growth while other categories, beer for example, are in decline. But others might argue that consumers aren’t drinking less or better, just other stuff.

“Consumers are not necessarily drinking less, but they are drinking differently,” says Troy Gorczyca, brand director of Malibu. “Gen Z is conscious about what they’re drinking, and it is opening up new consumption occasions.”

Ready-to-drink prepared cocktails are benefitting from this movement. According to a recent Mintel report on RTD Alcoholic Beverages U.S. (November 2019), “one in five drinkers is reducing their alcohol consumption, however, RTDs were the only alcohol segment to experience an increase in consumption over a 2018 measure.”

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Nielsen reports the RTD prepared cocktails category grew a considerable 83 percent in the off-premise to $105.37 million for the 52 weeks ending Dec. 28, 2019.

“We’ve been tracking a move toward ‘healthier’ drinking and this trend will continue into 2020,” says Danny Brager, senior vice president, Beverage Alcohol, Nielsen. “Younger generations are leading this shift, and it will affect drinking quantities and preferences.”

Brager is forecasting even more of a favorable environment for these products, in fact. “Throughout 2020, expect to see growth in lower ABV ready-to-drink cocktails,” he says. “Ready-to-drink cocktails—across beer, wine and spirits—will boom.”

That’s a departure. For decades, the RTD category has gotten a bad rap due to perceptions around poor quality and taste issues. In recent years, however, this has begun to shift: big brands have revamped their offerings and newcomers have joined the playing field, raising the stakes with innovative products. The quality stakes have been raised as well, as many of the newer brands are moving on from a malt base and deploying actual

spirits in the mix.

Malibu re-launched its RTD premixed cocktail range in June 2019 with new packaging and has new products in the pipeline. “We have seen a heightened interest in convenience in both the spirit-based RTD cans and in malt-based beverages,” notes Gorczyca. “We have some great offerings in this category and are looking to launch new products in the future. Watch the RTD space in the coming years as Gen Z continues to influence the products the brands develop and launch.”

Andrew Rodbell, co-founder of Post Meridiem (Atlanta, Ga.), and a former Coca-Cola employee, launched his company selling premium RTD cocktails in May 2019. “We make recognizable cocktails with real ingredients at the right proportions and real strength,” he says simply.

The range of cocktails includes a Double Old Fashioned, a Lemongrass Vodka Gimlet, The 1944 Mai Tai, The Hemingway Daiquiri and The Real Lime Juice Margarita. All are made with real ingredients: real spirits, real bitters, real juices. Rodbell stresses that nothing is manufactured or synthetic giving these

full-strength products authentic taste.

“We feel like we are elevating the ready to drink pre-mixed spirits category with authenticity,” Rodbell says. “We list all of the ingredients on the can and those real ingredients are the taste difference.

It’s as close as you can get to a bar made cocktail in a portable format.” The range is available in 100ml cans and retails for about $4.99.

Another newcomer to the market that is looking to elevate the RTD offering is Drnxmyth (Los Angeles, Calif.) This company is turning ready-to-drink into ready-to-mix with its twist and shake method to create on-the-spot fresh cocktails.

Drnxmyth cocktails come in a patented dual-chamber bottle that is designed to keep the spirits, tinctures and liqueurs separate from the cold-pressed juices.

Consumers only have to twist the bottom of the bottle and shake to make their cocktail in 30 seconds.

“A lot is happening right now [with RTDs] and we believe there’s more room for innovation,” says Drnxmyth CEO Lawrence Cisneros. “People are looking for options that have less alcohol, less calories and there is a trend toward easier drinking, and also cocktails that taste as they should—balanced. Innovation seems to be growing the market rather than taking from existing players and we are seeing a demand for better recipes and better ingredients that haven’t been chemically treated or heated or changed... that’s what we’re about.”

Having worked with mixologists, Drnxmyth’s portfolio includes five cocktails: Rum Punch, Bourbon Sour, Eastside (gin, cucumber puree, lime juice, cane sugar and mint-infused water) and Ginger Drop (ginger-infused vodka, lemon juice, fresh finger, cane sugar and grapefruit peel essence). Each bottle makes two100ml cocktails for a retail price of about $9.99.

While innovation is helping drive the

category, research shows that hard seltzers have been a driving force in opening it up as a format that consumers will accept.

According to Mintel, hard seltzers can be credited for increased RTD adoption and sales, “with 59 percent of hard seltzer drinkers increasing their consumption in the past year. Flavor variety and a slightly higher perception of health among these products play roles here,” the report says.

Big players, such as Smirnoff, have certainly recognized this and are continuing to invest in their offerings.

“Leaning into our expertise in flavor and innovation and continuing to build on the success of our Smirnoff Ice Red, White and Berry and Smirnoff Red, White and Berry Spirit, both of which performed extremely well, we’re excited to roll out Smirnoff Seltzer Red White & Berry Hard Seltzer this spring,” reveals Krista Kiisk, brand director, Smirnoff, vodka and flavored malt beverages at Diageo.

Smaller players like Southern Tier Distilling Co. (Lakewood, N.Y.) are expanding their portfolios to get a piece of the pie. The distillery has a range of small batch spirits as well as RTD pre-mixed spirits including four vodka seltzer flavors

and four canned cocktails—Vodka Soda, Bourbon Smash, Gin & Tonic and Vodka Madras.

“Southern Tier Distilling Company’s reason for being in the canned cocktail space is to bring elevated, mixologistinspired flavors and ingredients and real craft-distilled spirits into a space that often lacks authenticity,” says founder Phin DeMink. “So when consumers reach for our products, they’re definitely trading up.”

In a category that is seemingly becoming saturated, players believe there is still room for innovation.

Post Meridiem’s Rodbell agrees that a boom is on the horizon. He says: “I think RTD pre-mixed spirits is on the verge of a boom. Look at the leading indicators: Premium is outpacing other segments across all of alcohol; Millenials are craving authenticity, there is even health consciousness that is seeping its way into the alcohol industry; and RTD consumption in the U.S. lags Europe and Asia. There is always room for innovation. That’s why I built Post Meridiem. Spiked Seltzers are an interesting transition vehicle—they are taking consumers away from beer and getting people closer to spirits. I think there is share to be stolen.”

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BRAND NEWS MIXERS & PREMIUM SODA

White Rock Products Corporation has launched a new line of premium mixers in 8.45 oz. bottles, which includes Indian Tonic Water, Light Tonic Water, Club Soda and Ginger Beer. The new line is available in Ingles Markets, Spec’s Liquor Stores and other select markets with a suggested retail price of $5.99 to $6.99 per 4-pack.

The latest launch from Ficks is its Paloma cocktail mixer, made with pure pink grapefruit juice. The Paloma cocktail mixer is sold at Target stores throughout California and is now distributed through KeHE and UNFI. Packaging on all three flavors of GuS Sparkling Mixers -- Moscow Mule, Mojito and Tonic & Lime -- now feature updated graphics. GuS Mixers are now distributed in New England by Associated Buyers and in California by Real Soda in Real Bottles.

The brand has also expanded distribution to retailers such as Balducci’s and Wine Library, among several others.

Powell & Mahoney Craft Cocktail Mixers has updated the design on its brand packaging, which includes an icon to indicate its Non-GMO Project Certified status. The labels also include new names for several of its products: Blood Orange is now Blood Orange Mimosa and Mango Passion Fruit Margarita is now Mango Margarita.

Ripe Bar Juice is now carried by Southern Glazer’s Wine and Spirits of Nevada and Tennessee Craft Distributors.

Corsa Co. launched its line of botanical tonics in July. Since then, the brand has participated in over 50 events in Los Angeles with brands such as A.P.C., Jenni Kayne, Soho House and Calidad Beer. The brand is currently in 30 accounts in Los Angeles and will launch in the SoPac region of Whole Foods in the second quarter of this year.

Nimble Nectar is now available at Costco locations across the West Coast and Southwest. Last year, Nimble Nectar was seen on television show “The Big Bang Theory” and will be placed in the upcoming film Fast and Furious 9, which will be released in May 2020.

50 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

After its acquisition by Traverse City Whiskey Company in October 2019, Cocktail Crate’s line of whiskey-focused cocktail mixers has continued to gain new distribution including Harris Teeter, Wegmans, Safeway Denver and Cost Plus World Market.

Vision Wine & Spirits LLC, a wholly owned subsidiary of Martignetti Companies, announced a nationwide distribution agreement with Fruitations Craft Soda & Cocktail Mixers beginning in January 2020. Fruitations will be available initially in New England, California and Florida before expanding.

Brewt’s Bloody Caesar, Brewt’s new sister recipe to its Bloody Mary mix, is a new handcrafted cocktail mixer featuring wild caught clam juice, hand squeezed lemons and limes and Brewt’s own pickled jalapeño brine.

American Cocktail Co.’s latest organic mixer flavor is Mango Jalapeño, which contains 35 calories per serving. The brand has also expanded distribution to four KeHE distribution centers located in Illinois, Pennsylvania, Texas and Florida.

Classic Tonic, the newest flavor from Wisconsin-based premium mixer brand Top Note, was recently awarded a Gold Medal and 92 points from Sunset International Spirits Competition. Starting February 1, Top Note will be available via Amazon Prime in 16-packs of 8.5 oz bottles.

In 2019, tea-based cocktail mixer Owl’s Brew expanded distribution nationwide with launches in Publix, Harris Teeter, Walmart and banners of Albertsons and Kroger. Owl’s Brew is also launching a new website and will be releasing a series of non-alcoholic cocktail recipes.

Nickel Dime Cocktail Syrups has expanded beyond its original Caged Heat SKU to include three new flavors: Cherry Bomb, Crimson Smoke and Fairy Dust.

Navy Hill expanded its retail footprint in 2019, rolling out to over 100 Publix stores in the southeast and at Wegmans in select regions. The brand expanded its on-premise footprint through partnerships with Geor-

gia Crown, Athens, Bacchus and Crossroad Vintners. In Q1 2020, the brand secured placement at all 53 Earth Fare locations and 276 World Market stores nationwide.

Premium electrolyte club soda brand BryteLife recently announced a distribution partnership with the NYNJ Beverage Company, Inc. serving the New Jersey and New York area.

In March, The Bitter Housewife will begin rolling out a new look for its cocktail bitters.

The brand has refreshed its logo and made label color consistent across all flavors for easier brand recognition.

Lt. Blender’s Cocktails in a Bag will release a powdered alcoholic cocktail mix this spring.

The Vodkarita, a vodka-based margarita, only requires the addition of water and will be available in the state of Texas, with other states to follow. Later this year, Lt. Blender’s flagship cocktails will be available in a new non-GMO formula and in redesigned bags.

Launching this summer in Chicago area retailers, Hazlo is an all-natural, functional mixer designed to pair with any alcohol. According to the brand, its formula transforms liquor into a minty and lime flavored cocktail, while helping consumers stay hydrated and fight the negative effects of alcohol.

Mixer and shrub maker Crafted Cocktails is launching a new line of citrus-flavored shrubs formulated with no preservatives or artificial flavors, available in Meyer Lemon, Mandarin Orange and Grapefruit flavors.

Draft-ready cocktail mixer brand Bar Draught has announced two new flavors for 2020: Jasmine Grapefruit Tonic and Mojito, both available nationwide.

Rock Grace is featured in Macy’s new STORY concept in 36 stores nationwide as part of the retailer’s “Feel Good” campaign.

Q Mixers has added a number of national on-premise account mandates, including Buffalo Wild Wings, Loews Hotels, PF Chang’s and Four Seasons Hotels and Resorts.

51

SHOW REVIEW

BY BEVNET MAGAZINE STAFF

Risk and Reward: BevNET Live Winter 2019 Recap Taking risks can often be the scariest -- and the most important -- component of success in business. At BevNET Live Winter 2019 in Santa Monica, Calif., beverage industry entrepreneurs discussed when and how to take the biggest leaps of faith, when to stand your ground and how brand leaders can grow on both a professional and a personal level.

La Colombe CEO Todd Carmichael and Chobani president Peter McGuinness began the first day of programming with a discussion about the value and risks of corporate social missions and why taking a controversial stance can benefit a brand.

“The more you stand for something, the more polarizing you are, you rally your base and your base loves you more and consumes you more,” McGuinness said. “So this whole notion of playing it safe is really pathetic in this day and age.”

But risk taking doesn’t just apply to social missions. Carmi-

Next, Brew Dr. Kombucha founder and CEO Matt Thomas chronicled his brand’s journey from a small startup tea house chain to a $50 million, nationally distributed beverage brand.

Thomas discussed raising $45,000 in 2006 to open his first Townshend’s Tea location, scaling the company’s kombucha business through debt-financing, and even putting his own home on the line for a bank loan to keep the business growing.

At the end of day one, BevNET founder and CEO John Craven interviewed BevNET’s 2020 Person of the Year honoree Daina Trout, the co-founder and CEO of Health-Ade Kombucha. Trout discussed working with her husband Justin and the need to set boundaries to separate the personal from the professional, the importance of creating space for new entrepreneurs to thrive and passing her success forward by offering young business leaders advice.

chael and McGuinness also spoke about the need for brands to innovate and how “fear” helps fuels their pipelines. According to Carmichael, fear helps create forward-thinking, cutting edge new products, while its absence results in “me too” offerings.

Next, veteran investor and operator Tyler Ricks delivered his rules for creating value with investors. He advised entrepreneurs on varied pitfalls, noting they should be wary of copying other companies’ business models if they don’t make sense and of entering partnerships with private equity firms with over-aggressive timelines for hitting certain goals. Instead, they should “keep it simple” and try to stick to a limited number of tightly plotted routes to value creation and to qualify the components of that creation.

As Ricks encouraged brands to evolve their value creation models, natural channel distributor KeHE followed by discussing the company’s own evolution into a “next generation distributor.” Katie Paul, VP of category management & growth solutions, and Alex Marx, director of growth solutions, shared how KeHE is embracing blurred categories and reaching out to the industry through annual events and showcases. The pair also recommended brands be able to act fast and adapt to changes in the market.

“I’m a big believer that what you feed grows, no matter what it is,” she said.

On day two, the main stage program kicked off with a conversation between Vanessa Dew, co-founder and chief sales officer at Health-Ade, and Perteet Spencer, VP of CPG & enterprise sales at SPINS. They focused on how brands can leverage data effectively and efficiently while expanding beyond natural retailers. In today’s market, Spencer said, omni-channel shopping, digital marketing, and specialization have helped fuel the rise of micro-brands with unique value propositions. To reach consumers, brands like Health-Ade need to leverage analytics more than ever.

CAVU Ventures co-founder Clayton Christopher then outlined key lessons from his experiences, advising early stage brands to scale cautiously. He also warned against “spending real consumer marketing dollars outside of stores” until reaching strong ACV, and also encouraged brands to patiently win in their backyard first to avoid overextending themselves too quickly.

Following Christopher, founders and leaders from three brands having a major impact on the burgeoning CBD market — Benjamin Witte, founder and CEO of Recess; Jonathan Eppers,

52 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

CEO and founder of VYBES; and Joey Cannata, president and COO of Daytrip — addressed the race for distinction in a highly competitive new category.

The panel discussed how brands are uniting to present a more unified voice within the conversation around CBD and hemp regulations. They revealed that they have had discussions as a group with the California Cannabis Control Commission to try to move the conversation forward regarding CBD in beverage products. The three also underscored what makes them each different: Recess, Witte explained, has steered away from emphasizing hemp extract as an ingredient and instead focused on creating strong emotional messaging. In contrast, Eppers said he has fully embraced CBD as the showcase ingredient for VYBES, claiming that consumers will pay a premium price for “CBD that works.”

Next, Matt Bachmann, CEO and co-founder of Wandering Bear Coffee discussed taking an “omnichannel” approach to

scaling, suggesting that at a time in which consumer attention is at a premium and retailers have acquired more influence over brands, his company’s priorities were carving out distinct routes to consumers’ homes and offices by targeting online, office and retail accounts from an early stage.

Mark Olivieri, president of protein drink brand OWYN, then shared his outlook on how to best combine brand and channel strategy: “Tell a good story and you create a transaction,” he said.

“Tell a great story and you create a movement.”

Concluding the program was a panel discussion on the future of beverage financing featuring Tom First, founder, TF Ventures; Nick Giannuzzi, managing partner, The Giannuzzi Group, LLP; and Janica Lane, managing director at Piper Jaffray.

Lane noted how over the past decade there has been a shift from M&A activity to capital raises. With major companies now getting more involved, the strategic buyer landscape has expanded — and should continue as multinational beer and spirits corporations in particular pay more attention. However, priorities have changed as well; Lane said strategics will expect brands to be ready to play outside of just natural retailers out of the gate, and are placing a greater emphasis on profitability.

53

SHOW REVIEW

BY BEVNET MAGAZINE STAFF

Decisions and Deals: NOSH Live Winter 2019 Recap For a conference focused on innovation, it was fitting: the first day of NOSH Live’s winter event in Santa Monica started off with a discussion around one of 2019’s disruptive center-aisle brands. Keith Belling, founder and CEO of alternative rice brand RightRice, reflected on his time at PopChips — and why he saw a unique space for healthier rice options. The San Francisco-based brand’s high protein, low-carb rice launched into 5,000 doors within the first 11 months, but placing a new product in the center aisle is both a blessing and a curse, Belling said, as it can be hard to get noticed by consumers, who often avoid that section of the store.

Keeping with the idea of freshness, Mel Gaceta, director of ventures for Mondelez,

Family Office explained that a celebrity can help boost a brand, only if properly aligned with the company’s message.

Meija Jacobs, senior director at design firm IDEO, explored the world of brands as well, but from a design standpoint.

The designer’s job is to translate brand messaging into packaging that will pop at shelf and tell a story. Some of the important elements for modern food packaging include compostability, ease of shipping, and ability for consumers to intuitively understand the product.

Bentley Hall, CEO of online grocery delivery service Good Eggs, went on to discuss how his company seeks standout “cutting edge” brands to make its direct-to-consumer business as exciting

industry members breaking through that noise.Caulipower founder and CEO Gail Becker accepted NOSH’s Person of the Year award onstage. Becker noted she loved entering this “incredibly welcoming industry” after working as a communications executive, bringing her storytelling abilities to build a brand that resonates across retail channels (in over 22,000 stores) and demographics via cauliflowerbased frozen pizza, tortillas and chicken fingers.

Scott Lerner, CEO of Farmhouse Culture, kicked off the second day of NOSH Live Winter 2020 with a discussion on how to make tough business calls and push your team through dynamic business challenges. Lerner utilized his military

and Brigette Wolf, head of innovation at the company’s venture arm SnackFutures, gave advice on innovation and investment. The goal of SnackFutures, Wolf said, is to “double down in the world of snacking” and be as agile as startups with the support of Mondelez’s manufacturing, operations and supply chain. So far, she said, the concept is working. While there are adjacencies to Mondelez’s core business, such as CaPao, which addresses waste in the chocolate supply chain, others simply fill a human need: the company’s most recent launch, kids smoothie brand Ruckus and Co., is aimed at helping busy parents, for example.

When securing any investments — celebrity or otherwise — authenticity is everything. Abe Minkara, who had just left billionaire investor Mark Cuban’s firm to become the Founding Partner/CIO of investment firm Legacy Knight Multi

as an in-store one. The company looks for brands leading or defining a category, and would rather “have fewer brands and go deeper with those brands,” he said. Great taste and sustainability are key criteria, he added, noting RightRice and ready-to-eat fresh food brand Urban Remedy as two that “look great.”

For Junea Rocha, Co-founder and CMO of gluten-free Brazilian cheese bread brand Brazi Bites, sustainability meant survival. The brand was on an “epic grind” for five years before appearing on Shark Tank in 2016 — catapulting it to selling out in stores within three days of the episode airing. That period of growth helped the small team become experts on manufacturing their product — which later helped in negotiating with copackers when it was time to scale, Rocha said.

Looking forward, NOSH Live granted its first annual awards to brands and

background in business analogies, referring to business challenges as “ambushes.”

He claimed that “everyone has a plan until they get punched in the mouth” — noting that even the best laid plans can’t survive the first contact.

The discussion then turned from decision making to dealmaking in a panel discussion with Bill Keith, founder and CEO of Perfect Snacks; Peter Burns, president and CEO of ONE Brands; and Janica Lane, managing director of investment bank Piper Jaffray, who worked with both brands on their respective deals.

The two brand leaders discussed knowing when it’s time to sell your company or seek majority investment and how to know if a potential partner is right for your brand. Keith noted that he sought majority investment when he realized the company couldn’t be taken where it needed to go under its current leader-

54 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

ship, while both he and Burns agreed that a strong culture fit was crucial is seeking out a partner. From the perspective of potential partners, Lane noted that they’re looking for sustainable growth with good margins and innovation across every area of the business.

A lot of brands start with a product, and then build an online presence around it. For Buzzfeed’s Tasty — “the Internet’s favorite kitchen” — it was the other way around. Talia Halperin, head of brand management at BuzzFeed took to the NOSH Live stage to discuss how its popular Tasty cooking video platform moved from content to commerce, expanding to cookbooks, cookware, ice cream and even wine.

Tyler Mayoras, co-manager of the Food & Agribusiness Fund at Advantage Capital Partners, next discussed investing at the intersection of CPG and agriculture.

Though Mayoras’ fund focuses on brands in rural areas, he offered insight into sustainability, clean labels and successful brand traits. Mayoras said it’s essential for

brands to have strong management and to be willing to make changes when things aren’t working.

Speaking on the topic of getting into doors and what happens once you do was Whole Foods VP of grocery Dan Epley.

Epley discussed the hybrid merchandising structure of Whole Foods, made up of a regional team (tasked with finding and incubating relevant brands) and global team (that establishes category strategy and manages resets) along with a purchasing team combining the two.

The word “wellness” has gotten a lot of buzz in the food industry, but what does it really mean? A panel featuring Elizabeth Stein, founder and CEO of Purely Elizabeth; Neda Daneshzadeh, co-founder and partner at Prelude Growth Partners; and Colleen Wachob co-founder and co-CEO of mindbodygreen, worked to answer that question. They discussed who the wellness consumer is and what exactly they’re looking for in CPG products: Authenticity, strong values and a sense of community were among the top drivers noted.

These same values were what many competitors in the NOSH Live Pitch Slam emphasized. Know Brainer Foods, Eat Nice Foods, Sosi’s Healthy Pleasures, ZUBI’S, Vital Leaf, and Pulp Pantry each competed for the title and prize but in the end, ketogenic-focused Know Brainer took home the win.

To close out NOSH Live, Jessica Lukas, SVP of commercial development at BDS Analytics, discussed the current state of cannabis edibles. She noted that the legality of cannabis may be new, but cannabis use (legal or otherwise) for consumers is not. Because of this, the majority of consumers support some form of legalization, driven by belief in cannabis’ medical benefits.

While she said CBD is “exploding” across forms and channels, there is still a lot of confusion surrounding what cannabinoids are. People are unsure of the psychoactive effects of CBD and THC, and she said brands and retailers need to continue to educate consumers about the functionality of these substances.

55

SHOW REVIEW

BY BEVNET MAGAZINE STAFF

Brewbound Live 2019 Looks at Authentic Alternatives, Hard Seltzer and Recruiting Consumers At a time when the beer industry seems to be drowning in a sea of seltzer, Craft brewers need to find their “authentic alternative,” The Lost Abbey co-founder and chief operating officer Tomme Arthur told executives and entrepreneurs from across the beer industry during Brewbound Live 2019, held in December in Santa Monica, California.

During his state of the industry address, Arthur announced plans for his own alternative, a standalone line of canned sour beers called Tiny Bubbles, which is slated to launch this year.

“We’ll take all of the equity and knowledge we have learned making Lost Abbey beers, and we’ll bring to life a living Gosestyle beer finished with Brettanomyces, all the while having fun promoting our new friend Brutus,” Arthur said, referring to the brand’s mascot, Brutus T. Bubbles.

Arthur purchased the Tiny Bubbles brand from Goleta, California-based Hollister Brewing Company, which was brewing the brand as a small-batch series. The goal is to attract drinkers out of the reach of Arthur’s other brands — The Lost Abbey, The Hop Concept and Port Brewing — by offering an in-demand product.

Arthur urged fellow brewers to remain authentic as they weather storms and to be wary of making rash, reactive moves.

“Everybody has to figure it out on their own, and that’s where we’re all headed,” he said. “If you make bad decisions now because you’re doing it out of fear, you’re going to have to deal with that later.”

But some craft breweries have indeed embraced hard seltzer, and there’s no question why: According to Danelle Kosmal and 56 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

Caitlyn Battaglia of market research firm Nielsen’s beverage alcohol practice team, the segment has shown no signs of slowing down despite passing the $1 billion sales mark at the end of the summer.

“There were some questions at the end of the summer — were we going to see this big drop off?” Kosmal said. “We saw a little bit of a dip in September, but really not that much and they [hard seltzers] continue to maintain share.”

At its summer peak, hard seltzer accounted for 5.4% of beer category dollars; it currently accounts for 5% of the market.

Annually, hard seltzer drinkers spend $477 on off-premise alcohol purchases, which increased 10.2% from last year, Kosmal said. Meanwhile, the average household spends $258. That increased spending on seltzer isn’t taking away from other alcohol purchases.

“A lot of the volume, the seltzer volume, is coming from people just purchasing and expanding their alcohol purchases, so not necessarily swapping out one for the other,” Kosmal said.

And those drinkers keep coming back; 40% of hard seltzer drinkers make repeat purchases.

Although 90% of hard seltzer dollar sales come from the top three national brands — Mark Anthony Brands’ White Claw, Boston Beer Company’s Truly Hard Seltzer and Anheuser-Busch InBev’s Bon & Viv Spiked Seltzer — Nielsen found that some local players have made inroads regionally. Data also showed that men and women were buying the product equally in 2019.

“I have never seen another segment in alcohol that is so gender neutral; it’s almost a 50/50 split of male and female buyers,”

Kosmal said. “That’s something that the hard seltzer segment has been able to do and to capture better than the craft beer segment has.”

Nevertheless, hard seltzer drinkers share similar demographics to craft beer drinkers: They’re white, college-educated millennials (ages 21 to 44) living in affluent neighborhoods with disposable income. Hard seltzer drinkers also spend almost twice what drinkers of other categories do.

For the craft brewing industry to sustain itself and grow, Arthur said new drinkers must be recruited into the category.

“We cannot for a moment think there’s enough white space to innovate our way out of this funk,” he said. “If we’re going to turn the proverbial corner, we’re going to need new consumers.

I’m doubtful that this is news to any of you.”

Among those trying to cultivate new craft beer drinkers is Day Bracey, co-founder of Fresh Fest, the first U.S. beer festival to celebrate black-owned craft breweries. Bracey shared how the annual festival comes together each August in Pittsburgh, a predominantly white city.

“It’s important for people to see people doing well who look like them,” Bracey said. “We are able to provide a safe space, build a space where people don’t feel weird about going in and asking about a product.”

Fresh Fest started in August 2018 in Pittsburgh with 10 of the country’s nearly 60 black-owned breweries. To fill out the rest of the festival lineup, Bracey, Ed Bailey and Mike Potter asked Pittsburgh craft breweries to collaborate with black artists, entrepreneurs and politicians to brew exclusive beers to pour at the fest. As word spread, craft breweries nationwide asked to join and each provided another chance for local artists and entrepreneurs to get involved.

“How do you build those bridges?” Bracey asked. “You do that by going to the community and offering them opportunities.”

Bracey encouraged brewery owners to hire employees of color and reach out to the people living in the areas near their breweries if they want to create a more diverse industry.

“Craft beer is a blind spot for the black community, but it’s largely because the black community has been a blind spot for the craft beer community,” he said. “Nobody’s coming into our neighborhoods and saying ‘Hey, we’ve got jobs over here, we’ve got opportunity.”

Crowns & Hops Wins 2019 Brewbound Pitch Slam Inglewood, California-based Crowns & Hops Brewing Company emerged as the winner of Brewbound’s 2019 Pitch Slam competition Crowns & Hops CEO Beny Ashburn and head of beer operations Teo Hunter impressed the judges with a pitch centered around promoting craft beer in the African American community, as well as a strong slate of beers led by an American Stout. The company was founded six years ago and is now in the process of opening its first full-time brewery in Inglewood next year.

“Six years ago we noticed a big void of black and brown cultural representation in the craft beer industry,” Ashburn told the judges. “Since then, we’ve been dedicated to promoting diversity and inclusion in craft beer. Our brand mission is to preserve culture, expand the palate, and build the community.”

Crowns & Hops impressed a panel of judges that included Arlington Capital Advisors principal Ryan Lake, Deschutes Brewery brewmaster of new product development Veronica Vega, Brew Pipeline president of sales Marty Ochs, pH Experiment co-founder Tom Bleigh and Willie’s Superbrew CEO Nico Enriquez, winner of the 2018 Pitch Slam.

On stage, the judges highlighted the importance of social missions in helping early stage breweries to differentiate themselves and create connections with consumers. On that front, Crowns & Hops delivered the clearest vision by highlighting the lack of representation for people of color in the craft beer industry and the need to promote and foster that community.

“There are so many lessons from the craft beer community that we can use if we truly hold true to the concept of being community and what it means to be community,” Hunter said. “We have all the lessons and all the tools and all the recipes — pun intended — to really build some serious bridges.”

With the victory, Crowns & Hops won a paid trip to Craft Brew Alliance’s headquarters in Portland, Oregon, where they will engage in strategy sessions and a $10,000 industry awareness package from Brewbound.

57

SHOW PREVIEW

BY BEVNET STAFF

WHAT

WHERE

WHEN

WHO

Natural Products

Anaheim, Calif.

Education and Events:

More than 400 different

Expo West 2020

Anaheim Convention Center

March 3 – 7, 2020

beverage brands

Anaheim Hilton

Trade Show:

and approximately

March 4 – 7, 2020

80,000 attendees

KEYNOTE SPEAKERS Thursday, March 5: 12:00 p.m. – 1:00 p.m.

Friday, March 6: 9:00 a.m. – 10:00 a.m. Robert Craven, CEO - Findaway Ventures, Richa

Tom Szaky, Founder & CEO - TerraCycle

Gupta - President - Good Food for Good; Angela McElwee, President & CEO - Gaia Herbs; Sara Young, General Manager - MorningStar Farms, Kellogg Company ALPHABETICAL EXHIBITOR LIST

Exhibitor

Booth

Exhibitor

Exhibitor

Booth

3 Water

N542

Blossom Water

1236

Caveman Coffee Co.

N1352

8th Wonder Tea

H835

Blue Bottle Coffee

N629

Cawston Press

N1611

A Cajun Life

N2112

Blue Monkey

5515

CBDfx

M217

a2 Milk

N1029

Blume Beverages, LLC

H1133

CELSIUS

N735

Acme Naturals - Tree Below Zero

5750

Blume Honey Water, LLC

N1549

Ceres Juices

1582

Alkaline88, LLC

8715

Bold Brew Coffee

N1536

Ceves Beverages, LLC

H428

ALO Drinks by SPI West Port, Inc.

459

BOLERO & Co., Ltd.

4293

CForce Bottling Company

N100

Aloe Jaumave

8007

Bolthouse Farms

Cha Cha Matcha

H810

ALOHA

N632

Boneyard Elixir

9506

Chameleon Cold Brew

5022

Amy & Brian Naturals

N1246

BOS Brands, Inc.

N1734

Cheribundi

1589

Après

H209

Bragg Live Food Products, LLC

7501

CLEAN Cause

H409

BrainJuice

N339

Clear Cut Phocus

H1100

Aqua Carpatica

216, 236

Booth

557

AQUAKOLA

N1042

Brands Within Reach, LLC

5407

Clearly Kombucha

1970

Athletic Brewing Company

H1226

Brew Dr. Kombucha

N1817

Clover Sonoma

2205

Atoka

N2114

Brooklyn Food & Beverage

482

Coco5

N612

Avitae Caffeine + Water

5661

BRWD Refreshing Energy® Drinks

M708

CocoJo

8509

Back Bay Roasters

H225

Buddha Brands

5357

Coconut Beach

N743

Crafted Brand Company, LLC

N942

Bai Brands, LLC

329

Buddha Teas, Living Wellness Partners,

2064

Barsotti Family Juice Company, Inc.

N1037

LLC

Bea's Squeeze

8504

Bulletproof

Beauty Gourmet, LLC

H911

Berri Pro

N401

Better Booch

N2137

Bhoomi Cane Water

N1237

Bickford's Group

8508

Cann + Botl Company

8721

Big Watt, Inc.

N1337

Canopy Growth Corporation

H207

BLK Beverages

N322

Castellon Coffee

M306

Crystal Geyser Water Company

H513

5002

Cure Hydration

7204

C2O Pure Coconut Water, LLC

5491

Cusa Tea

N1838

CACTUS The Desert Hydrator

7203

Cuvée Coffee

5479

5480,

DAHlicious Organics

8904

5484

Daily Greens

5477

Califia Farms

Danone North America Dark Dog Organic Energy Drink

BevNET, NOSH and Taste Radio will be interviewing, broadcasting and filming throughout the event. If you’re attending or exhibiting, let’s connect! Reach out at news@bevnet.com, news@nosh.com, or ask@tasteradio.com 58 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

1104, 1117, 5417, 5551 N343

SHOW PREVIEW Exhibitor

Booth

Exhibitor

Booth

Exhibitor

Detox Water

5335

Happy Moose Juice

2699

La Colombe

Down To Earth Organics, LLC

8408

Happy Planet Foods, Inc.

N1947

LaCroix Sparkling Water

Dream Water

3446

Harmless Harvest

5023

Laird Superfood, Inc.

N1639

Drink Recess, Inc.

M514

Harmony Proteins

H902

Lakewood Organic Juice Company

2046

DRINKmaple

N228

Harney & Sons Tea Co.

957

Launched.LA (Taffer's)

M716

DRY Soda Co.

N1632

Hawaii Volcanic Beverages

N121

Leaner Creamer, LLC

N2018

Dunn's River Brands EB Beverages, LLC Elite Naturel USA, LLC Eliya Organic King Coconut Water Elmhurst ELOA - ALOE VERA DRINK EnerBee Enroot Sparkling Cold Brew Tea

2143

Booth 1467 521

Hawaiian Ola

N213

Lemoncocco

174

Hawaiian Springs, LLC

5253

LifeAID Beverage Co.

1807

Health-Ade Kombucha

5470

Lifeway Foods, Inc.

HealthVerve Food Manufacturing USA

1486

LIMITLESS

N446

Hella Cocktail Co.

H421

LIVE SODA

5475

hellowater

5098

LOOP MISSION

7305

Heyday Beverage Company, LLC

N1801

Lorina Inc

HFACTOR

N639

Lumen Hemp Juice

H1009 481 5235 113 N2328

Epicurean Food & Beverages

N132

HiBall Energy

1679

Mad Tasty

Essentia Water, Inc.

5344

High Brew Coffee

5269

Make It Simple, Inc.

Eternal Water

N1706

Hint Water

5144

Ethan's, LLC

N1538

Holy Kombucha, Inc.

Evamor Products, LLC

7920

Honest Tea

Evolution Fresh

1045

Hoplark HopTea

H112 1421

MALK Organics Mamma Chia

173 5752 1751, 5637

5241 M208 8811 N1331 4937, N832 2425

N1318

Manitoba Milling Company

809 7812

Evolve

1662

Hubble

9300

Mansi, Inc.

Farmhouse Culture

N622

Hubert’s Lemonade

1409

Maple Guild, The

Fentimans North America, Inc.

7206

Humm Kombucha

N1437

Marquis Beverages

2132

Huney Jun, LLC

9305

MatchaBar

5693

7824

HyVIDA Brands, Inc.

8712

Metta Beverage, Inc.

N1435

Fire Cider

2133

I.E. Green Tea

2682

Flow Alkaline Spring Water

5275

Ice Age Beverages

Fermenting Fairy Ficks & Co.

N2053

N1402

Milkadamia

N223

189

Milkman Milk

8402 5276

M618

Icelandic Glacial

5533

MindFull, Inc.

Forager Project

5070

ICONIC Protein

N1722

Minna

H1112

Formula Four Beverages (USA), Inc.

N933

IMMORDL

7905

Mooala

N232

Dyla LLC

5189

Infuzed Brands

M115

Moodwater

M723

Four Sigmatic

N329

Ingenuity Beverages

4309

More Labs

M303

Fulfill Food & Beverages

N1446

Inko's Tea

N1104

Mother Beverage

N1108

4565

N.O. Brew Iced Coffee

N943

FORAGE KOMBUCHA

Get Bizzy, Inc.

N1341

Invigor8 Superfood Shakes

342

ITO EN (North America), Inc.

5508

Naked

Ginger Shots, LLC

N846

Jade Leaf Organics, LLC

N1142

Natalie's Orchid Island Juice Co.

Ginseng Up Corp.

N306

Jarrow Formulas, Inc.

4015

Natural Bliss

805

Jnantik, LLC

7307

Nestle Waters North America

815

Just Water

N516

New Age Beverages

312

Ginger People, The

Goat Partners International / Green Goat

H1221

715 N1633

Gojai Beverages, LLC

M700

Karma Wellness Water

721

Nixie Sparkling Water, LLC

105

Goldthread, LLC

N1216

KeVita Drinks®

2421

Numi Organic Tea

2471

Good Earth Beverages

9307

Kill Cliff, Inc.

Good Karma Foods

N813

Groundwork Coffee

N1714

KÖE Organic Kombucha

N1905

nutpods

N2202

5036,

NutriVsta, LLC

N1833

5062

Nuun Active Hydration

5210

GURU Beverage

1935

Koia

N543

O.Vine, Inc.

N413

H2coco, Pty Ltd.

H1134

Kokomio

N1236

OATLY

5389

H2OPS Sparkling Hop Water

N1234

Kor Shots

N528

Ocean Spray Cranberries, Inc.

150

H2rOse, LLC

382

Kuju Coffee

9202

Ocean's Halo

The Hain Celestial Group

610

Kuli Kuli, Inc.

5090

Odwalla, Inc.

1514

N1946

L.A. Libations

5243

OKF Corporation

1884

Pocas International Corp.

488

Happiness Water

60 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

N1028

Exhibitor

Booth

Exhibitor

Booth

Exhibitor

Booth

OliPOP PBC

H1120

Seasons Sparkling

N547

The Chai Company

H313

Omni Bev

9100

ShadeTree Organic Lemonade

2061

THE LEMON PERFECT COMPANY

1929

ORAL I.V. Hydration

N112

Shaka Tea

Orgain, Inc.

2036

Shamrock Farms

Organic Valley

1737

ORGANICS by Red Bull

2561

OWYN PATHWATER

N1743

THE OTHER SIDE OF COFFEE

158

8212

The BU Kombucha

N2349

Shot X

8412

Three Trees

N1229

Shottys, LLC

N242

Tiesta Tea

5687

5647

siggi's dairy

5308

Tio Gazpacho

N400

N312

Simple Foods Co., Ltd.

N2119

Tone It Up, Inc.

M219

Peet’s Beverage Division

5188

Simply Juices & Drinks

1514

Topo Chico

1616

Percolate Tea & Coffee, Inc.

H407

Sir Owlverick's

8802

Treehouse Milk

H631

Perfect Hydration

5066

Slingshot Foods

N1036

Treo Brands

4955

Phenoh Hydration

8122

SMÁRI

5502

Try MY T, LLC

8417

Phivida Organics

224

Smart Juice

2004

Tulip International, Inc.

Physis Products, Inc.

H621

Snoooze

3991

TURVEDA

N647

The Pickle Juice Company

2167

So Cool Brands, Inc.

M606

UbU Beverages, LLC

H839

Picnik

5295

So Good So You

N1738

UGLY DRINKS

Pillars Yogurt

H1021

So Natural Juices

N2314

Ultima Replenisher

Planet Oat

N748

Soda Press Co.

7403

Uncle Matt's Organic, Inc.

N809

PLNT Beverages

H338

Som Sleep

5194

Unique Beverage Company, LLC

N1837

Polar Beverages, Inc.

5197

5028,

Upriver Cacao

H426

Pollen

H1110

5153,

UPTIME Energy, Inc.

8115

Pop and Bottle, Inc.

5512

Poppilu, Inc.

H529

Positive Beverage

N2035

Powell & Mahoney, Ltd.

N1548

Pressed Juicery

7304

Promise Cold Brew Tea

N2013

Protein2o, Inc.

N1906

Proud Source Water Pure Steeps Beverage Purity Organic, LLC Q Drinks qii

N1831 5116 2483 5161 N1249

Quest Nutrition

583

Qure Energy

5297

Rainforest Water RFW REBBL RECOVER LIFE BRANDS

138 5148 8519

Red Ace

4476

Red Thread Good Cold Brew Coffee

9603

Reed's, Inc.

411

Regatta Craft Mixers

H813

Remedy Organics

N205

Reneva, LLC

8911

Revive Kombucha

5188, F19

Riff Cold Brewed

692

RISE Brewing Co.

N442

Roar Beverages

1989

Rowdy Mermaid Kombucha

H403

Sambazon

2005

Sated

N1747

Sonoma Brands

N2216, N711

SOUND Brands, LLC

N718

Spindrift Beverage Co., Inc.

5448

Sprig

9402

Squish N Squeeze

8105

485

121 1553

Vara Food & Drink Co., Ltd.

233

Vega

1104

Verve Coffee Roasters

8219

Vink & Beri, LLC

N1613

Vita Coco

549

VitaCup, Inc.

N2132

Vital Proteins

N1725,

Steaz

1956

Stirrings Craft Cocktail Mixers

N1813

SuckerPunch Gourmet, Inc.

N1403

Suja Juice

5684

VitaNourish

5638

Sunsweet Growers

2335

Vive Organic

N1137

Suntory Beverage & Food North America, LLC

H1109

2605, N704

VIVIC

7405

VOSS USA, Inc.

5200 4911

Sunup Green Coffee

N1209

Waiakea Hawaiian Volcanic Water

Sunwink

N2246

Wandering Bear Coffee

Super Coffee

N1434

wanu water

4969

N2345

SZENT BEV CO.

8421

Waterloo Sparkling

N126

Tabletree Cherry Juice

9609

Wave Soda

N1431

Talking Rain Beverage Co.

5354

Weller Snacks

N820

Taste Nirvana Int'l, Inc.

5561

WHOA WATER, LLC

7600

Tazo Tea

1505

Whole e Nature

5387

Tea Crush

N2233

Wild Tonic

N1726

Tea Drops

N2347

WTRMLN WTR

5765

Teaonic

N333

WYLD CBD

M117

teapigs US

N1525

Yerbae, LLC

8116

TeaRIOT

N2152

Yum Matcha

H1230

Teatulia Organic Teas

N1123

Zest Tea

N1909

Teeccino

2536

Zevia

577

Temple

2111

ZICO

1415

Thaiwala

182

Zola

N1105

61

CANNABIS FOOD AND BEVERAGE GUIDE • 2020 63

SHOW REVIEW

BY BEVNET MAGAZINE STAFF

Cannabis Forum Recap: A Growing Industry, Slow Regulations

Chris Cuvelier • Head of Beverage - Caliva

The cannabis industry is complex to navigate, even if the plant is often viewed as a gateway to a simpler state of mind. To help food and drink entrepreneurs grow within it, experts presented data and insights last month at BevNET’s third Cannabis Forum, held December 6 at the Loews Santa Monica Beach Hotel.

Ricardo Baca, founder and CEO of regulation-focused communications agency Grasslands, kicked off the event by reviewing the current state of the industry. He noted that cannabis contains 120 different kinds of terpenes, which provide scent and flavor and enhance medical efficacy -- especially when combined with cannabinoids to achieve the “entourage effect.” And although the market is dominated by just two cannabis strains, indica (physically sedating) and sativa (uplifting), along with hybrids, there are hundreds more to explore.

However, growth depends on policy. Currently, there are three types of cannabis licenses: cultivation, manufacturing and retail. Adult-use (ages 21+) marijuana is legal in 11 states, while 33 states have approved for medical use, with Michigan and Illinois coming online in 2019. Initiatives to legalize marijuana will also be on the ballots in Florida and Arizona this year.

“You can’t put the toothpaste back in the tube,” Baca said. “[Marijuana is] only going to become increasingly more legal 64 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

here and abroad over the next few decades.”

Approving legislation that protects banks working with cannabis businesses, like the Secure And Fair Enforcement (SAFE) Banking Act, which recently passed through the House of Representatives, is also critical, according to Baca.

“The fact that those votes happened on cannabis-specific bills alone is historic and monumental,” he said. “It shows there is movement.”

But even though 67% of Americans support legalization, less than 20% are regular cannabis consumers, providing an opportunity for entrepreneurs to reach canna-curious consumers. But broader challenges still exist, and cannabis beverages remain a “very complex market.”

Chris Cuvelier, head of beverage at cannabis cultivator and manufacturer Caliva, is determined to take on those challenges.

In May 2019, Caliva acquired Zola, the açai juice and coconut water brand of which Cuvelier is the former CEO, to use the company as a platform to develop cannabis drinks, including both THC and CBD-infused beverages. Caliva currently operates 250 of the top 600 licensed California dispensaries, having opened its own beverage facility to maintain quality control for its beverages and allow for future co-packing opportunities. For now, the focus is capturing consumers through education.

Cy Scott, CEO of cannabis intelligence firm Headset, further examined the evolution of the modern cannabis consumer. He noted that Gen Z will likely comprise about 6% of cannabis market sales, as they’ve seen usage “relatively normalized in a regular market.” Scott added that edibles comprised 11% of the market last year, while cannabis beverages have maintained market share in the last two years, but had higher sales in Washington and Colorado than in California. Products’ effects also vary: although some are marketed for a calming or relieving mood, others, like low-dose cannabis tonic brand CANN, focus on taste and positioning as an uplifting social stimulant. In a market that’s getting noisier, cott encouraged entrepreneurs to find white space.

Luckily, once a brand has been established and gained consumer trust, those customers tend to remain loyal, said Dr. John Oram, CEO and founder of cannabis brand NUG. The company -- which produces oils, flower and packaged food

Jill Ellsworth • CEO - Willow Industries, Inc.

with legal, high-quality products, said Michael Blue, managing partner at Privateer Holdings, the world’s largest private equity (PE) firm in the cannabis industry. When the venture capital firm launched in 2010, there was little competition, but the climate has changed markedly.

“Raising money today is certainly not as difficult as it was 10 years ago,” he said. “Investors are being incredibly diligent about digging into the numbers, values and models.”

Privateer has plans to grow its cannabis portfolio, which includes companies like Tilray and Docklight Brands. Christian Groh, a partner at Privateer Holdings, emphasized the opportunity for CBD products to expand across drug, grocery, and convenience channels, where there has been little penetration so far.

However, Allison Margolin, partner at firm Margolin & Lawrence, cautioned those new to the space about other “sticky issues,” including foreign investors potentially being flagged by

Ricardo Baca • CEO - Grasslands

products -- opened two California-based retail outposts to extend the brand’s identity and engage with consumers. About 60% of NUG “enthusiasts” are males who purchase flowers and pre-rolls, Oram said, noting that the “curious and discerning” cannabis consumer needs streamlined products, experiences and systems.

“They want a normalized experience,” Oram said.

As such, entrepreneurs and brands should prioritize safety, said Jill Ellsworth, founder and CEO of Willow Industries, Inc. According to Ellsworth, industry safety standards are too siloed by state, and murky guidelines have led to mislabeled CBD products and contaminated hemp plants.

“Moving toward the adoption of safe standards is where we need a lot of help,” Ellsworth said. “The adoption is coming; change is happening. We move slow.”

Indeed, as the industry grows, brands will guide consumers

Allison Margolin • Partner - Margolin & Lawrence

immigration authorities. Entrepreneurs need to check investors’ backgrounds thoroughly and avoid illegal activity themselves, she advised.

“Federal legalization is the only way to resolve tension,” Margolin said. “Customs has its own philosophy, and it’s gotten even worse.”

As U.S.-based companies navigate regulatory gray areas, they’re staying private longer, said Hershel Gerson, managing director at ELLO Capital. But consumers are fueled by a healthy labor market — and thirsty for better-for-you beverages, he added: the CBD beverage market, currently valued at $227 million, is expected to have a compound annual growth rate (CAGR) of nearly 75% by 2023. Additionally, Jacqueline Bennett, director at Sands Lane Capital, listed “fresh,” “natural,” “value” and “convenience” as four key attributes consumers are seeking in cannabis products.

65

BRAND LISTINGS New, Oganic Full-Spectrum CBD Granola Bites!

420Pure Full Spectrum CBD Shots

Alta Goods

BevWeRx, LLC

Alta Tahini Bites are made with full-spectrum extract from organic and sustainably grown Vermont hemp. Our three delicious flavors are each infused with 20mg CBD and made with whole, organic ingredients. No artificial ingredients, no refined sugar.

420Pure shots are water soluble, full-spectrum, and sweetened with a hint of maple syrup.

Quality matters and we verify potency at three different stages of product development. We invite you to taste and feel the 420Pure difference!

Taste The Real! CBD Full Spectrum Soda/ Mixer Made w/ Whole Ingredients

Hemp Infused Craft Coffee Coldfire Roasters

Simple, Natural Social Tonics

Backyard Soda Co

Cann

Backyard Soda Co is taking the CBD beverage world to a new level with a full spectrum, whole food ingredient soda that is as tasty at lunch with a burger or taco, as it is in a high end cocktail after work.

Enjoy your drink, AND the benefits after.

Cann is making cannabis social and approachable for all, with the first cannabis-infused social tonic that is both low-dose and delicious. With only 30-35 calories per can and only five, allnatural ingredients, enjoy Cann at any social occasion.

Over 100+ CBD Products CBD Living

66 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

Sparkling CBD is the #1 Broad Spectrum Hemp Extract Soda in the USA! Colorado’s Best Drinks

BRAND LISTINGS California Blazed & California Infused CBD Products Crazy Eye Brands

DOPE Sparkling CBD Drinks DOPE Drinks Co.

Cloud Water Natural Sparkling Hemp Beverage

Performance Counts DouleuRx

Cloud Water Brands The only beverage that blends premium botanicals with 25mg of water-soluble and bioavailable CBD. Sweetened with organic, raw honey. No artificial preservatives, flavors or colors. EcoFriendly, Gluten-Free, Non-GMO, Kosher and naturally delicious!

Mindy's Chef Led Artisanal Edibles

Chillax with Sonoran Desert Prickly Pear Hemp Infused Kombucha Fermented Tea Company Kombucha Drink Hemp Infused Kombucha. Its Alive!

Our best 4 kombucha tea blends infused with the creaminess of 40 mg of our proprietary Full Spectrum Organic European Hemp.

Kombucha promotes gut health and may enhance the absorption of CBD. Patent pending.

A simple Hemp CBD iced tea.

Cresco Labs

Joy Tea Inc.

James Beard award winning Chef Mindy Segal created precisely dosed, decadently delicious artisanal edibles. Her pectin gummies are inspired by Mindy's culinary journey & infused with distillate. Available in 6 distinct flavors & 2 potency levels.

As producers of For Joy tea, we have created teas that are simple and natural with no harmful additives. Infused with 25 mg of craft Hemp CBD, we offer 3 delicious flavors: Original with a Hint of Sweet, Lemon Meyer Ginger & Strawberry Mint.

67

BRAND LISTINGS Plant-Based Cold Brew Coffees and Teas Enhanced with Hemp HAMAKA

Skip the stress, find your bliss!

Discover your BLISS with MOMO's Peruvian Cacao infused with Hemp CBD

LIFEAID CBD

MOMO's CBD

LIFEAID CBD helps balance your mind & body with 20mg of THC-free broad spectrum hemp + adaptogens (rosemary & lemon balm) and cannabinoids. Only 40 calories per can with a refreshing Herbal Lemon taste, LIFEAID CBD is made with only the good stuff.

MOMO's Bean to BLISS Bars bring to you ethically sourced organic Peruvian cacao infused with vertically integrated US Grown Hempderived CBD (zero thc). A mini cacao ceremony with each enjoyable bite -Vegan/ Non GMO- Lab tested for purity and potency.

O2 Living introduces new Hemp Extract line

Nitro Joe’s Cruising Altitude Nitro Cold Brew Coffee with CBD

Living Health and Wellness O2 Living, makers of Living Juice, introduce Living Health and Wellness - a new line of organic hemp extract products.

Living Hemp Extract Oils, in 250 and 1000mg, taken after drinking Living Juice, allow for maximum benefits and health effects.

Infuzed Thirst: CBD Sparkling Water Infuzed Brands

68 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

Medterra’s NEW Broad Spectrum Cannabinoid Tinctures Medterra

Nitro Joe's Elevate your chill.

This coffee with 200mg of caffeine, 0 calories and 25mg of micro-encapsulated OLEO™ CBD. This coffee will be sure to help you cruise right on through your day.

Get some Shelf Stable Light Roast Cold Brew Power.

BRAND LISTINGS mood33 Hemp Infused Herbal Teas mood33

Cold Brew Drink

Oh Hi Beverages CBD Sparkling Seltzers NuRange CBD Cold Brew This is the first hybrid between boring black cold brew coffee and unhealthy dairy lattes.

We’ve added 25 mg of water-soluble, microencapsulated, nanoemulsified, organic, Colorado-grown CBD isolate to create the smoothest CBD coffee on the market.

Oh Hi Beverages INC Our new CBD Seltzer line targets wellness and rejuvenation with 15mg of CBD. These seltzers contain only 5g of sugar, 25 calories, and produced with a high-quality, water-soluble CBD for best absorption and effectiveness. Try all four fresh flavors!

NEW YORK ORGANIC PREMIUM KOMBUCHA

O2+ Hemp CBD O2

Seek North

O2+ Hemp CBD is a revolutionary new line of CBD-enhanced post-workout recovery beverages from O2 that contain the ingested oxygen, electrolytes, and non-carbonated taste O2 is known for, plus 10mg of broadspectrum, THC-free hemp extract.

New York premium kombucha. Seek North kombucha is alcohol extracted, Certified Organic and Certified Kosher and always 100% raw, all-natural, and undiluted. Seek Harmony- tangy boldness of tropical hibiscus with rooty, lemon-spice flavors of ginger.

69

BRAND LISTINGS Recess Sparkling Water with Hemp and Adaptogens Recess

ọṅụ Hemp Infused Tea SEEDBEV

Sure Nano – Water Soluble Solutions SureNano by Activated Nano

HEMP+ GINGER SuperShot™ Sol-ti Beverages

WECAN BEVERAGES

Sol-ti HEMP+ SuperShot™ uses organic hempseed oil (0.0% THC & CBD).

FDA GRAS, 50 State Legal. These shots increase your sales by $860/month. Avg. Velocity = 18 cs per store, per month.

Email us for an intro to an authorized distributor near to you.

WECAN is a patented alkaline CBD line of beverages which are great tasting with no strong after taste, stable pH after CBD enhancement, light alkaline crisp taste, flavoured/non with no sugar, no sweeteners.

Available in 10, 20, 40, 50mg of CBD.

Drink Deeply. Live Fully.

70 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

Winner Best Functional Water 2019 WECAN Alkaline CBD Beverages

Weller CBD Stick Packs - Wellness on Demand, Just Sprinkle and Stir

Sträva Craft Coffee

Weller

Enjoy the delicious taste of Sträva in the convenience of a K-Cup. Sträva uses specialty grade Colombian coffee, hand roasted and infused in Denver, CO. Sträva’s K-Cups are offered in three infusion strengths ranging from 4mg to 20mg of CBD per cup.

CBD ON-THE-GO. 10mg of broadspectrum CBD per stick. Water-soluble blends into any drink, hot or cold. No aroma and no taste.

BRAND LISTINGS A Doozy of a Dessert

Hydrate Your Health VITAMIN 1

Wonderlab's Doozy Pots Delicious, organic dairy-free gelato, made with the mighty hemp seed.

No CBD or THC, just mind-altering flavors and feelings that will spin your head right round. We’re all about creating delightful treats for personal and planetary wellbeing.

VITAMIN 1 is a delicious No Sugar Hydration drink packed with Vitamins and Electrolytes Vitamin Vitamin Vitamin Vitamin Vitamin Vitamin

B1 B3 B5 B6 B7 B12

100% 140% 140% 120% 120% 140%

RDA RDA RDA RDA (Biotin) RDA RDA

visit www.drinkvitamin1.com to find out more

71

SUPPLIER & SERVICES LISTINGS Create Your Craft ABS Commercial

Organic Functional Ingredients Applied Food Sciences

ABS Commercial was begun by brewers, but brew is not all we do: Our carbonation stones, mixing tanks, carbonating vessels, glycol chillers and small parts are used to mix CBD infusions, sodas and more unique craft products across the country.

We consistently stock 3 to 90 barrel (BBL) vessels in our East Coast warehouse, and our standard designed tanks are in constant production. This means quick turnaround & short lead times, no matter your need. Tanks can also be customized, in some cases.

Chillers, cleaning kegs, touchscreen control panels and monitoring systems, transfer hoses, pumps, fittings and small parts, filtration and carbonation equipment are also available. Everything for the production side of your business, all in one place.

ABS Commercial gets constant feedback on design and performance, and can offer firsthand knowledge, industry insight and guidance to our customers through our home base in Raleigh, NC, or our Denver, CO, field office.

All large-scale purchases include free technical advice. We also offer installation and expanded consultation services, including expert welding, pipefitting and system adjustment by sister company, Atlantic Processing Solutions. Got packaging and chilling needs? We have plenty of industry contacts to help you match your new ABS Commercial system to their equipment. Most equipment can be ASME, CE, or UL certified, as needed.

CBD Regulatory Consulting AIBMR Life Sciences, Inc.

Tea, Coffee & Specialty items A. Holliday & Company Inc.

For over 45 years, we've traveled the world to connect people with the finest products. At A. Holliday & Company, we source, test, and ship every product we carry. We supply bulk tea variety’s (extracts & leaf), coffees (extracts), antioxidants, herbal & superfruit extracts, natural caffeine, polyphenols, EGCG, Rooibos, coconut water powder, and our newest product, oil soluble tea polyphenols.

AIBMR is a scientific & regulatory consulting firm – an industry leader in CBD, hemp, and cannabinoid research. AIBMR offers key services, including toxicology studies, GRAS Independent Conclusions, FDA GRAS Notifications, NDI Notifications, label reviews, claims substantiation, FDA & FTC compliance, and manuscript preparation & publication.

In 2018, AIBMR and laboratory partner, Toxi-Coop Zrt., performed a landmark set of comprehensive toxicological safety assessments on hemp CBD oil, marking the first time in 38 years that this had been done. The results of this research were published in the Journal of Toxicology, in a paper entitled “An Assessment of the Genotoxicity and Subchronic Toxicity of a Supercritical Fluid Extract of the Aerial Parts of Hemp.” AIBMR then completed the first GRAS Independent Conclusion for the subject of the studies, providing proper regulatory compliance in this fast-growing industry. AIBMR continues to monitor hemp regulations and the US marketplace, in general.

72 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

Neutral Hemp Seed Protein+More Axiom Foods

Axiom Foods has helped innovate the ultimate hemp protein – neutral in color and taste, with an extended 18-month shelf life. Ideal for food, beverage and nutraceutical products, Cannatein® Hemp Hearts Protein is lightcolored, great tasting, Non-GMO Project Verified, and certified organic at the factory level. Axiom Foods is the functional plant protein and milkalternatives expert since 2005.

Flavor Manufacturer abelei flavors

CBD Contract Manufacturer Beneficial Blends

As a flavor manufacturer abelei creates delicious, application-specific flavors assisting our clients in getting to market faster with flavorings that fit their product requirements. abelei specializes in creating great-tasting sweet brown, citrus fruit, soft fruit and other top-note flavors perfect for beverages, dairy, confectionery, bakery, pharmaceuticals, and nutraceutical applications.

Beneficial Blends has been a leader in edible oils and fats, always improving, perfecting, and even reinventing to achieve superior results.

The rapidly expanding market of CBD offers tremendous opportunity, and we have positioned ourselves at the top. With our co-packing capabilities and customizable products, like our NanoLyte water-soluble CBD, Beneficial Blends has the competitive advantage.

SUPPLIER & SERVICES LISTINGS Branding / Packaging / Marketing BLK DOG – black dog DESIGNS

Beverage Industry Navigators BevSource

CBD Solutions for CPG Experts Caliper Foods

We Make Your Packaging Work Closure Systems International

Real People. True Flavor.

Callisons

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 true flavors with a passion for the Beverage, Confection & Oral Care industries. As tastes change and the market expands, we evolve and innovate to always remain on the forefront of the next flavor revolution.

Having trouble developing your CBD beverage?

Partner with BevSource, a leading provider of beverage development, sourcing, & production solutions. We’re not just advisors that point you in the right direction & hope for the best. We are beverage industry navigators who collaborate with you to build a custom strategy for your beverage. Visit our website to find out more and connect with our team.

CBD Emulsion Citromax Group

Culinary + Cannabis Innovation Bootleg Avocado LLC

Closure Systems International, Inc. (CSI) is a global leader in plastic closure design, manufacturing and high speed capping equipment/application systems. Approximately 75+ billion closures are produced annually in CSI’s 15+ manufacturing sites, strategically located in 10+ countries throughout the globe.

Bootleg Avocado is here to join the worlds of F&B and cannabis to mold collaborations and events around the right approach of launching these concepts in a socially responsible, sustainable, and healthier way. We are seeking like minded food industry experts, entrepreneurs, and innovators with a focus on wellness, high culinary, and hospitality. Let's build this network together!

CSI integrates innovative closure technology, high-performance capping equipment and expert technical services and training support to help customers all over the world maximize their profits. These integrated closure and capping solutions deliver a total system of unsurpassed customer value and reliability.

Citromax Group, a globally recognized lemon juice grower and processor, and a leading flavor supplier has developed a CBD emulsion with complete solubility and no lingering after taste using its expertise in creating flavor emulsions.

With a team of Flavor Chemists and Food Scientist, Citromax Group is helping beverage brands develop a variety of CBD beverages with unique flavor profiles.

73

SUPPLIER & SERVICES LISTINGS Co-Packing & Co-Manufacturing CraftPack Beverage, LLC

Water Soluble Hemp Extract Farmington Research

Color Harvested from Nature DDW, The Color House

"Trusted Labels Since 1908" Epsen Hillmer Graphics

Custom Flavor Development Flavor Dynamics, Inc.

FONA Flavor & Taste Solutions FONA International

Develop products that look as good as they make you feel! Complement your flavor, match an existing color, or replace synthetics. No matter the goal, our natural colors keep your label clean and your product vibrant. Not sure where to start? Pick a color from our library of standard blends your quick projects or partner with one of our certified food scientists to develop something truly unique.

High quality custom labels for Hemp and CBD retail products. We specialize in CBD beverage, and food-based support products. Let us help your product stand out on the shelves. Consult with our highly qualified support and sales team.

Manufacturers and Co-Packers, call today!

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.

Consumers today want it all. You’re balancing the demands of great taste, regulatory hurdles and consumer acceptance. The experts at FONA can help. From ideation to launch, we can create a seamless, winning path for you. Design, develop and scale up using our Beverage Innovation Studios in Geneva, IL and Irvine, CA. We are FONA. Let us bring the best taste solutions to the table for you.

Labels & Sleeved Cans DWS Printing Associates, Inc.

Clean Label Ingredients Farbest Brands

CBD Beverage Development Flavorman

FLAVOR Foodarom

Established in 1865 and run by the Staib family, DWS is a 5th-generation label printing and can-sleeving operation. Capabilities include pressure-sensitive labels, shrink sleeves and in-house can-sleeving. We have a 1-pallet minimum for our sleeved-can orders. Complete label and packaging design services available as well.

Farbest Brands 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 USDA-certified organic, and NON-GMO Project Verified ingredients. Our extensive market knowledge and personalized customer service, help our customers make better purchasing decisions at competitive prices.

CBD drinks should be delicious. Luckily, the Beverage Architects at Flavorman can formulate your custom CBD beverage to be as flavorful as it is functional. With 28 years of expertise in beverage development, Flavorman is the best partner to help you change what the world is drinking. Ask us about SoluCan BD, our innovative and completely customizable, watersoluble CBD technology.

We personalize flavors to meet your needs & create flavor profiles that help your products to stand out above the rest. Our experienced team knows the science behind CBD & understands the impact your active ingredients have on taste. We understand the complex issues manufacturers are facing & we offer support & coaching in formulation development.

OUR JOB IS TO MAKE YOUR PRODUCT TASTE LIKE HEAVEN!

74 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

SUPPLIER & SERVICES LISTINGS Innovative Packaging Solutions Graham Packaging Company

Ingredient Solutions Partner Florida Worldwide Citrus

Decorative Labels & Packaging Fort Dearborn Company

Natural Color Solutions GNT USA Inc.

We’ve got you covered. Fort Dearborn Company offers shrink sleeve, stretch sleeve, pressure sensitive, roll-fed, and cut & stack labels, flexible packaging and promotional printing in a variety of substrates, inks and finishing options to support your beverage brand building objectives.

We service brands large and small. Contact us today to discuss your application.

EXBERRY® by GNT is the leading brand of natural food coloring for the food and beverage industry. EXBERRY® colors are derived solely from fruits, vegetables, and edible plants through a process of chopping, pressing, filtering and blending. EXBERRY® products can be applied to a range of beverage categories including enhanced waters, carbonated soft drinks, dairy, and plant-based milks.

Coconut Products Franklin Baker, Inc.

All-Natural Sweetening Systems Icon Foods

Franklin Baker, Inc. is the largest processor of coconut ingredients in the Philippines and 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.

Icon Foods is a global ingredient supplier with a focus on all-natural, high-intensity sweetening blends for manufacturers. Allulose, erythritol, monk fruit, stevia and more are available in conventional and organic, in bulk or pre-blended for added cost savings. Icon Foods is your Clean Label Sugar Reduction partner, offering product formulation, reformulation and R&D.

Beverage Technical Training ISBT

75

SUPPLIER & SERVICES LISTINGS Experience the ISI Difference Ingredients Solutions, Inc.

Non-detect THC - CBD Extracts Klersun Hemp Extracts

Teas, Botanicals and Extracts Martin Bauer Group

Trust the monk.™ MONK FRUIT CORP.

Experience the ISI difference. Our product line includes Agar, Carrageenan, Gellan, Konjac, Hydroxypropyl Methylcellulose, Locust Bean, Methylcellulose, Microcrystalline Cellulose, Pea Protein, Pectin, Propylene Glycol Alginate, Sodium Alginate, Tara and Xanthan. Our technical support team and R&D lab in Waldo, ME are equipped to assist customers in their product development projects.

Klersun is a producer of high quality hemp extracts. We specialize in broad spectrum Non Detectable THC Extracts. Our NDT™ extracts are self affirmed GRAS. We sell our products by active ingredient and are capable of consistently providing large-scale quantities of extracts derived from industrial hemp that is grown and cultivated in accordance with the Agricultural Improvement Act of 2018.

The Martin Bauer Group is one of the largest suppliers of plant-based ingredients for the food, beverage, and dietary supplement industries.

With a portfolio of over 400 botanicals and more than 80 years of experience, we provide off-the-shelf and tailor-made natural solutions to meet your cannabis application needs including SQF certified, FSMA and cGMP compliant hemp products.

Monk fruit allows you to create great tasting, innovative products with significantly less sugar and calories - all from the goodness of fruit! Monk Fruit Corp is the recognized industry leader, with the best quality and widest variety of monk fruit products and the majority share of the global monk fruit market (more than 3X our nearest competitor). Looking for monk fruit? Trust the monk.™

Cold-Brew Master Extractors Javo Beverage Company

CBD Product Flavors Lebermuth

CBD & Hemp Drink Production MBA Beverage Group, Inc.

Flavor Manufacturer Mother Murphy's Flavors

Founded in 2001, Javo is an extraction company that uses a proprietary cold-brew method to produce fresh, clean-labeled coffee, tea and botanical extracts for the food and beverage industry. Our cold-brew process delivers a clean non-acidic authentic concentrate for your targeted application, whether a cold brew, nitro coffee, dairy, sauce or bakery item.

Family owned since 1908, we formulate natural & organic flavors. We offer CBD isolate, broad & full spectrum, terpenes, liquid & powdered flavors with profiles such as mint, sweet, spicy & fruity. Our in-house distillation capabilities allow us to refine flavor characteristics that result in a unique profile for your products and in-house regulatory provides required documentation. SQF certified.

MBA Beverage has been developing and manufacturing beverages for 16 years along with CBD & Hemp products for the last 4 years.

We provide full service solutions, including label design, custom & stock formulas, supply chain & co-packer management. Capabilities: Cold-fill, Hot-Fill, Tunnel Pasteurized. Containers: Cans, PET Bottles, Glass Bottles, Powders. Contact us today for more details.

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 and snack industries and have over 60,000 flavors in our portfolio. We make the world taste better!

Branding & Packaging Design McLean Design

Performance Driven by Science NexGen-Sciences

We Build Powerful Brands — Brands are built on consumer engagement, meaning that a successful brand has captivated the consumer and enriched their life in some unexpected and enduring way. At McLean we use every tool at our disposal to reveal the core meaning of a brand and enhance the consumer's experience beyond the utility of a product or service. Realize the full value of your brand at McLean.

NexGen-Science's proprietary nano-technology approach improves bioavailability of CBD into the body to produce industry leading results. Our science is driving some of the most powerful CBD brands on the market. Find out what we can do for you.

Fruit & Vegetable Solutions Milne

Juice Solution Specialists Northwest Naturals

Since 1956, Milne has been producing industryleading fruit and vegetable juices, concentrates, purees, and custom solutions. With a team of dedicated product developers, Milne has the experience, expertise and creativity to craft new product ideas and solutions to help your business stand out in the fast-paced food and beverage market.

Your go-to team for formulation and processing of turnkey fruit bases for the cannabis and alcohol industries. We've long been recognized as a leader in the production of specialty blended, all natural, fruit juice concentrates, WONF concentrates and frozen dairy-style bases, essences, and other value-added fruit products.

Let us help you turn your next product from ordinary into extraordinary.

Experience Solutions Legacy Marketing

76 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

SUPPLIER & SERVICES LISTINGS Co-packing Norwich Beverage Company

Naturally Crafted Flavors Sapphire Flavors and Fragrance

Norwich Beverage Company, formerly CT Currant has moved into a larger plant with additional blending, pasteurization, bottling lines and cold storage. We bottle Flash Pasteurized refrigerated juices, smoothies, enhanced waters and other functional beverages . We are located in Connecticut centrally located for easy access to the whole North East. Please call us to discuss your beverage projects.

Sapphire Flavors & Fragrances is a vertically integrated natural flavor and extract company based in Fairfield, New Jersey with operations located in Cuernavaca, Mexico. Sapphire aims to create delicious natural custom crafted flavors at an exceptional value for all our customers.

Our vertical integration process allows for short lead times and low MOQs. Ready to learn more?

Contact us today!

Sustainable Packaging Handles PakTech

Owen Jones Branding Agency Owen Jones

Pyure Ingredients Pyure Brands LLC

Filling and Closing Solutions Pneumatic Scale Angelus

CBD Infused Beverages Skip Shapiro Enterprises, LLC

Since 1895, Pneumatic Scale Angelus has designed and manufactured packaging equipment for filling, seaming, capping, and labeling applications. Our solutions set thSe standard for bottling and canning machines, scaled for the specific needs of a wide range of Beverage, Craft Beverage, Dairy, Food, and Pharmaceutical applications, and are fully supported by a global Service and Aftermarket network.

Let us bring our team to you! Seed to sale - 0.0% THC. Scalability for both bulk and finished goods fully vertically integrated. Free formulation, highest consistent quality, preferred by the largest beverage producers. Save time and money, America’s leading distributor of CBD ingredients. Skip Shapiro Enterprises World-Wide distributors of Folium Biosciences.

77

SUPPLIER & SERVICES LISTINGS Water-Soluble CBD Emulsion SoRSE Technology

Beverage Solutions and Premix The Wight Group

Connect with the team of experts at The Wright Group to learn more about turnkey beverage solutions to add to your product portfolio.

Beverages create ideal systems for functional ingredients since flavoring / sweetening systems can often mask unpleasant tastes from functional ingredients. Microemulsion value-added ingredients often perform better in beverage delivery systems since they are not subject to the same cooking or mechanical stresses as in food production. Value-added premix solutions deliver performance and stability to your products...often at a cost savings!

Custom nutrient premixes have been shown to work well in a variety of products such as extruded bars, breakfast cereals and viscous, opaque beverages. SuperBlend© custom nutrient premixes are designed to include our SuperCoat© Micro-encapsulation SMART™ process. These premixes are also engineered to perform at high temperatures and shear processes.

The Wright Group delivers custom nutritional blends, vitamins/mineral premixes and microencapsulated ingredients for the functional food and nutritional supplement markets. Our 100+ years of innovative expertise, accomplished R&D team, and comprehensive production capabilities allow us to provide faster lead times to successfully bring your products to market.

Fruit & Vegetable Ingredients Stiebs

Inspiring Taste & Innovation Synergy Flavors, Inc

Turnkey Beverage Services US Beverage Manufacturing

Stiebs, formed in 2005, is devoted to sourcing, processing & delivering the world's finest plantbased products. We offer a full line of fruit & vegetable based ingredients as single strength juice, juice concentrate, purees, extracts & powders. From the beginning stages of product development to delivering an on-going supply of premium natural products, our team is here to help you succeed.

Synergy Flavors is a leading manufacturer and supplier of flavorings, extracts and essences for the global food, beverage, and nutrition industries. With over 130 years of expertise, we combine a long heritage of flavor development with modern extraction technology, blending art, science, and market insights to create an exceptional array of profiles that inspire taste and drive innovation.

We can turnkey develop and copack/manufacture all types of beverages, alcoholic and nonalcoholic, in aluminum cans, PET bottles, glass bottles, and flexible packaging. If you are looking for a one stop shop to take develop your beverage concept, manufacture it, and manage the sales and marketing, then look no further! We can supply all ingredients, materials, manufacturing, and delivery!

Bestevia Taste Solutions SweeGen

Shrink Label Solutions Tripack

SweeGen brings you Bestevia Taste Solutions, a full taste experience for sugar reduced foods and beverages delivering the sweetness profile and mouthfeel of full sugar. Our sugar-reduction portfolio combines next generation stevia sweeteners with modulation and mouthfeel building blocks. All components are non-GMO, label friendly and nature-based.

Tripack offers a total solution for shrink sleeve packaging. Call on us to build you a shrink labeling or tamper seal system, or if you're not ready to buy your own machine, send us your product and we'll sleeve label it and pack it out for you. Empty or Filled containers. We've got 20 years experience in this, so call or email us today and we'll get you Rolling!

78 BEVNET MAGAZINE – JANUARY/FEBRUARY 2020

COMPANY CONTACT INFORMATION COMPANY

CONTACT NAME

CITY

STATE

PHONE NUMBER

WEB SITE

A. Holliday & Company Inc.

Christine Renken

Toronto

–

(416) 225-2217

teacoff.com

abelei flavors

Shelley Henderson

North Aurora

IL

(630) 859-1410

abelei.com

Michael McAdoo

Raleigh

NC

(919) 400-9087

abs-commercial.com

Jared Brodin

Seattle

WA

(253) 286-2888

aibmr.com

Nyree Bekarian Mack

Arlington

MA

(510) 684-0046

altagoods.com

Brian Zapp

Austin,

TX

(720) 309-0437

appliedfoods.com

ABS Commercial AIBMR Life Sciences, Inc. Alta Goods Applied Food Sciences (AFS)

David Janow

Los Angeles

CA

(310) 264-2606

axiomfoods.com

Backyard Soda Co

Axiom Foods

Jonathan Schultz

Denver

CO

(970) 363-4935

backyardsodas.com

Beneficial Blends

Troy Hall

Tampa

FL

(813) 887-3030

beneficialblends.com

–

SAINT PAUL

MN

(866) 956-4608

bevsource.com

Will Boyle

Cumberland

ME

(207) 831-1030

drink420pure.com

Jesse Tyree

Glens Falls

NY

(518) 792-0500

blackdogllc.com

Mario A. Rodriguez

New York

NY

(917) 301-3129

bootlegavocado.com caliperingredients.life

BevSource BevWeRx, LLC BLK DOG - black dog DESIGNS Bootleg Avocado LLC

Ben Addington

–

CO

–

Callisons

Caliper Foods

Kim Carson

Cincinnati

OH

(360) 412-3340

Cann

Jake Bullock

Oakland

CA

(303) 929-2286

drinkcann.com

–

Corona

CA

(800) 940-3660

cbdliving.com

Zeynep Taskin

CARLSTADT

NJ

(201) 933-8405

citromaxflavors.com

Clint Rush

Indianapolis

IN

(800) 311-2740

csiclosures.com

Alexandra Galindez

New York

NY

(305) 606-3362

cloudwaterbrands.com

CBD Living Citromax Group Closure Systems International Cloud Water Brands

callisons.com

Coldfire Roasters

Eduardo Juica

Tampa

FL

(877) 970-8769

coldfireroasters.com

Colorado's Best Drinks

Moose Koons

Denver

CO

(970) 279-1784

SparklingCBD.com

Ashley Sebastionelli

Baltimore

MD

(404) 520-3854

craftpackbev.com

Tom Weiss

Tampa

FL

(949) 633-0084

crazyeyebrands.com

Lisa Kamerad

Chicago

IL

–

mindysedibles.com

CraftPack Beverage, LLC Crazy Eye Brands, LLC Cresco Labs DDW, The Color House DOPE Drinks Co. DouleuRx DWS Printing Associates, Inc. Epsen Hillmer Graphics

Nick Hudgins

Louisville

KY

(502) 568-5045

ddwcolor.com

DOPE Drinks Co.

New York City

NY

(347) 301-3725

dopedrinks.co

Chuck Miller

New Lennox

IL

(770) 262-5709

douleuRx.com

Andy Staib

Deer Park

NY

(516)769-1907

dwsprinting.com

Zach Ressler

Overland Park

KS

(913) 291-9822

ehg.net

Farbest Brands

Michele Perrotta

Park Ridge

–

(201) 573-4900

farbest.com

Farmington Research

Cameron Meshell

Shreveport

LA

(318) 464-0487

farmingtonresearch.com

Todd Sallee

Tucson

AZ

(520) 286-6889

fermentedteacompany.com/

Colleen Roberts

South Plainfield

NJ

(908) 822-8855

FlavorDynamics.com

Phil Icsman

Louisville

KY

(502) 301-8132

flavorman.com

Matthew Soudijn

Bradenton

FL

(941) 746-9183

fwwcitrus.com

Fermented Tea Company Kombucha Flavor Dynamics, Inc. Flavorman Florida Worldwide Citrus FONA International

Cara Newkirk

Geneva

IL

(630) 578-8642

fona.com

Foodarom

John Murphy

Salt Lake City

UT

(801) 975-2604

foodarom.com

Gwen Chapdelaine

–

–

(847) 427-5405

fortdearborn.com

Fort Dearborn Company Franklin Baker, Inc. GNT USA Inc.

John Slade

Memphis

TN

(901) 881-6681

franklinbaker.com

Stephanie Ferretti

Tarrytown

NY

(914) 524-0600

exberry.com

Graham Packaging Company

Michele Loeper

Lancaster

PA

(717) 849-1826

grahampackaging.com

HAMAKA

Tomas Garibaldi

Studio City

CA

(281) 797-5769

hamaka.com

HempFusion

Ryan Griffith

Denver

CO

(877) 669-4367 x101

Icon Foods

Thom King

Portland

OR

(310) 455-9876

iconfoods.com

Infuzed Brands

Jigme Love

Marina Del Rey

CA

(833) 383-6500

infuzedbrands.com

SCOTT RANGUS

Waldo

ME

(207) 722-4172

isi.us.com

Candice Peck

Vista

CA

(760) 518-8374

javobeverage.com

Ingredients Solutions, Inc. Javo Beverage Company

80 BEVNET MAGAZINE – JANUARY/FEBRUARY 2019

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COMPANY CONTACT INFORMATION COMPANY Joy Tea Inc. Klersun Hemp Extracts Lebermuth Legacy Marketing LIFEAID CBD Living Health and Wellness Martin Bauer USA

CONTACT NAME

CITY

STATE

PHONE NUMBER

WEB SITE

Jeff Chu

San Francisco

CA

(415) 890-3211

drinkforjoy.com

Carl Jonsson

Portland

OR

(877) 767-4367

klersun.com

Sales Support

South Bend

IN

(800) 648-1123

Lebermuth.com

CAROLINE DAVIDSON

Chicago

IL

(615) 545-6869

–

LIFEAID Beverage Company

Santa Cruz

CA

–

LifeaidBevCo.com

Rosemary Devlin

–

NY

(914) 763-6320

o2livinghemp.com

Rikka Cornelia

Secacucus

NJ

(310) 669-2162

–

MBA Beverage Group, Inc.

Randall Roddy

Phoenix

AZ

(877) 544-9244

mbabeverage.com

McLean Design

Caryn Javinsky

Walnut Creek

CA

(925) 944-9500

McLean-Design.com

Medterra

Kylie Maraj

Irvine

CA

–

Mojo Lab LLC

Clint Janson

Spokane

WA

(509) 710-4276

–

medterracbd.com

MOMO's CBD

Mo George-Payette

Huntington Beach

CA

(714) 401-7435

momoscbd.com

MONK FRUIT CORP.

Paul Paslaski

Libertyville

IL

(847) 367-6665

monkfruitcorp.com

mood33

Steve Kessler

New York

NY

(833) 366-6333

mood33.com

Mother Murphy's Flavors

Michael Oden

Greensboro

NC

(336) 273-1737

mothermurphys.com

NexGen-Sciences

Chuck Miller

New Lennox

IL

(770) 262-5709

nexgen-sciences.com

Customer Service

Wichita

KS

(316) 339-0360

nitro-joes.com

Mike Marquand

Bothell

WA

(425) 285-2612

nwnaturals.com

Nitro Joe's Northwest Naturals Norwich Beverage Company

Allyn Brown

Norwich

CT

(860) 886-8080

norwichbeverage.com

Zachary Macaffer

Denver

CO

(518) 469-2576

nurangecoffee.com

O2

Kim Burck

Cincinnati

OH

(248) 892-6833

drinkO2.com

Oh Hi Beverages INC

John Lynch

Durango

CO

(970) 426-4660

cbdohhi.com

Lissa Forsterer

Portland

OR

(503) 407-7071

whoisowenjones.com

–

–

OR

(541) 461-5000

PakTech-opi.com

Jay Dadrass

Lexington

KY

(647) 972-7552

–

NuRange CBD Cold Brew

Owen Jones PakTech PMD Plant Medicine Distribution (USA) Inc. Pneumatic Scale Angelus Pyure Brands LLC Recess

Gigi Lorence

Stow

OR

(330) 923-0491

psangelus.com

Philip Coggins

Naples

FL

(305) 509-5096

pyureingredients.com

Cassandra Gates

New York

NY

(732) 977-7186

takearecess.com

Sapphire Flavors and Fragrance

Julia Rivera

Fairfield

NJ

(973) 200-8849

sapphireflavors.com

SEEDBEV

Loic Jasmin

Miami

FL

(786) 209-5445

theonu.com

Seek North

Julian Lesser

new york

NY

(917) 709-2579

seeknorth.com

Judy L Gardner

–

–

(714) 585-7445

–

Sol-ti Beverages

Sol-ti Sales

San Diego

CA

(888) 765-8411

Solti.com

SoRSE Technology

John Kueber

Seattle

WA

(206) 510-2941

sorsetech.com

Skip Shapiro Enterprises, LLC

Brian Nova

Madera

CA

(559) 455-8606

stiebs.com

Sträva Craft Coffee

Stiebs

Stephanie Laws

Denver

CO

(800) 204-6803

drinkstrava.com

SweeGen

Katharina Pueller

Rancho Santa Margarita

CA

(949) 709-0587

sweegen.com

Patrick Lawson

Wauconda

IL

(847) 487-1011

synergytaste.com

Justin Liberty

Lafayette

LA

(337) 783-3096

–

Sales

Milford

OH

(513) 248-1255

tripack.net

Zach Mosesian

Las Vegas

NV

(702) 476-1021

usbeveragemanufacturing.com

Mike Taylor

Harvard

MA

(617) 590-1001

drinkvitamin1.com

Synergy Flavors, Inc The Wright Group Tripack US Beverage Manufacturing VITAMIN 1

Luke Galliana

Kenilworth

–

–

Weller

WECAN BEVERAGES

Ryan Mack

Boulder

CO

(760) 505-8020

welleryou.com

WWW.WECANBEVERAGE.COM

Wonderlab's Doozy Pots

Karl Sutaria

Cleveland

OH

(802) 272-5026

wonderlabdoozy.com

81

PROMO PARADE

INDUSTRY PROMOTIONS & EVENTS

Pepsi Kicks Off The New Year With New “That’s What I Like” Campaign In January, Pepsi debuted “That’s What I Like,” its first U.S.-based tagline in over two decades, and after previous iconic taglines such as “The Choice of the New Generation” and “The Joy of Cola.”

“That’s What I Like” will appear across new Pepsi, Pepsi Zero Sugar and Diet Pepsi advertisements and promotions indefinitely, beginning with the roll out of five new national television commercials.

The campaign is derived from and inspired by Pepsi’s most loyal drinkers, who proudly like what they like and live their lives out loud without worrying about what others will think – whether its clapping at the end of a movie, wearing an over-thetop costume for the fun of it, or simply enjoying a Pepsi.

“Pepsi has always been a brand associated with enjoyment – from barbeques, to baseball games, to meals with family and friends,” said Todd Kaplan, vice president of marketing at Pepsi. “We created this campaign to pay homage to this unapologetic mindset embraced by our most loyal fans, with a music-forward expression to pinpoint the feeling our consumers have when they genuinely enjoy themselves in an uninhibited way.”

“We’ve worked extensively to evolve and

deepen our understanding of the Pepsi consumer,” said Joe McHugh, Senior Director, Insights & Analytics, Pepsi. “By leveraging both broad qualitative and quantitative research, we’ve unlocked rich consumer learnings that have enabled us to fine tune our brand communications in a meaningful way that resonates with our unapologetically passionate and loyal Pepsi drinkers.”

The new TV ads, “Glow Up,” “Fade Away,” “DJ BBQ,” “Subway,” and “La

Lavandería,” spotlight various everyday people getting lost in a moment and finding themselves dancing in unexpected places or situations, despite the amused gaze of onlookers. Each spot is underpinned by a variety of upbeat music spanning hip-hop, dance hall, Latin pop tracks and more. The spots will air across English and Spanish-speaking properties to reach Pepsi’s ever-growing fusionista fans, Latinos celebrating and blending their Hispanic and U.S. cultures.

Vita Coco Teams Up with Postmates, TV Stars Hannah Godwin and Dylan Barbour to Deliver Free National Hangover Day Recovery Kits Coconut water beverage brand Vita Coco teamed up with Postmates, the leader in delivering nearly anything on-demand, to celebrate National Hangover Day. On January 1, Vita Coco helped remedy the first hangover of the new decade by offering free, limited-edition hangover recovery kits to New York City customers exclusively on Postmates.

In honor of National Hangover Day, Vita Coco also partnered with newlyengaged television reality stars, Hannah Godwin and Dylan Barbour, to help cure New Yorkers’ first hangover of 2020. The long-time Vita Coco supporters personally delivered a handful of the limited edition

hangover recovery kits to select recipients that ordered them through the Postmates mobile app.

The National Hangover Day recovery kit from Vita Coco was delivered by Postmates and included everything needed to help overcome a hangover, featuring electrolyte and nutrient-rich Vita Coco coconut water. It also included an egg and cheese sandwich from Lenwich, Ibuprofen, a face mask from Korean skincare brand Banila and Vita Coco-branded merchandise. Vita Coco also had a fully branded hangover recovery food truck on January 1 at Cleveland Place, between Kenmare St. and Spring St. in Soho,

82 BEVNET MAGAZINE – NOVEMBER/DECEMBER 2020

“We’re excited to deliver this exclusive and unique offering alongside Postmates to help take on the first hangover of a new decade,” said Allison Finazzo, brand director for Vita Coco. “Not only does Vita Coco have the essential electrolytes you need to stay hydrated, but it’s also packed with potassium and magnesium to replenish your body after a night out celebrating the New Year.”

“We bring the ultimate convenience to your doorstep, so delivering relief with Vita Coco on New Year’s Day is a great way to kick the new decade off right,” said Brandon Teitel, SVP of brand strategy for Postmates.