NERD Focus Targets Key Markets Ahead of Nationwide Rollout
Following its June acquisition by Beverage USA Holdings Inc. (BevUSA), Texas-based energy drink NERD Focus is expanding into New Jersey, Nevada and Tennessee ahead of a planned nationwide rollout next year.
Founded in 2006, NERD Focus produces a line of energy drinks containing nootropics for enhanced mental clarity, including ingredients such as Huperzine-A, DMAE, Gingko Biloba, GABA and Alpha-GPC. Though the company was previously distributed only in Texas — where it boasts a footprint of about 2,000 retail doors — BevUSA CEO Howard Davner said he acquired NERD with the intent of growing it into a national brand.
This month, NERD announced a rebrand which included a new logo and can design. The drinks are available in two flavors: Green Original, which contains 42 grams of sugar per 12 oz. can, and Zero Calorie.
“Our market right now is all these folks who are working from home remotely, or have distractions and need some focus,” Davner said. “So, it’s exciting times for us.”
NERD is currently working with DSD distributors in Texas, New Jersey, Las Vegas and Nashville as well as direct distribution to retailers. According to Davner, the brand is planning to build in the convenience and gas channels, focusing on independent accounts before eventually “graduating” to big box retailers. The product will also be available online direct-to-consumer and in Amazon and Walmart.com.
To promote the expansion, the brand is launching a digital and social media advertising campaign and will also run radio ads on Spotify and commercial spots on Hulu. Davner said the company is also exploring the idea of using billboards in its target cities.
NERD follows a growing trend for nootropic beverages that are believed to provide better mental clarity alongside energy. In recent years, products such as LifeAID’s FocusAID line have helped increase consumer awareness of nootropics in the beverage set, while newer products such as Bang Energy’s Noo-fuzion and C4 Smart Energy are expanding the set.
Davner said he believes NERD will appeal to a wide range of consumers, including typical targets for energy drink marketing: young men, gamers, truck drivers and college students. He also hopes to build the brand up around hospitals in order to reach healthcare workers who require additional focus to perform their duties.
“When we roll out geographically, we really want to pinpoint the actual customers we want to reach and build that brand in that city, then take that same strategy to the next city rollout,” he said.
DEFY Enters Yesway in South, Midwest
CBD-infused sports drink DEFY has signed on to enter convenience chain Yesway nationwide across over 400 stores, the company announced last week.
Founded in 2016, Texas-based Yesway has been expanding its presence in the South and Midwest in recent years and is now among the top 20 U.S. c-store chains ranked by a number of outlets. The company has made CBD a focal point of that growth and claims to be “the nation’s leading retailer when it comes to the scope of its CBD offerings,” according to a PR representative.
In landing four SKUs of DEFY’s recovery-focused sports drink, each containing 25 mg of CBD per 16 oz. bottle, on Yesway shelves, co-founder and CEO Megan Bushell said the brand has an opportunity to introduce the purported benefits of CBD to a new demographic in states like Oklahoma, New Mexico, Texas and Kansas.
“Because the [Yesway] stores tend to be in rural areas, we are getting involved with the working American,” she said. “These are the people who are out and about and working on a daily basis, the people who can really benefit from CBD from its potential anti-inflammatory and pain management benefits.”
DEFY’s partnership with Bridger Anderson, 22, a world-ranked competitive steer wrestler from North Dakota, further underscores that connection.
“[Anderson] is a great representation of the audience that we are serving — the working American who is very active and looking for alternatives to improving their overall health and wellness,” Bushell said.
While CBD remains its core proposition, DEFY’s next innovation — a non-infused alkaline sport water — is set to extend the company’s portfolio into new product formats and types. A portion of the proceeds from its sales will go towards organizations that support black, women and veteran communities, Bushell said.
Caliper Now Available at Texas Circle-K
Sticking with CBD and convenience stores, Caliper, maker of beverage-friendly dissolvable CBD powders, announced this week that the product is now available at point-of-sale in over 600 Circle-K locations across Texas.
“We are thrilled to be on shelves in Circle K,” said Nicole Maione, General Manager of Caliper CBD, in a press release. “The marriage of Caliper CBD with one of the world’s largest convenience chains makes perfect sense: Caliper is designed for on-the-go relief at an on-the-go price point.”
The Denver-based company is one of a handful of brands, such as Rip N Sip and Oleo, to focus its CBD beverage interests on non-RTD products that can be mixed with liquid drinks, in its case being single-serving powder packets that contain 20 mg of CBD each.
“According to NACS, more than 80% of products purchased in convenience stores are consumed within the first hour of purchase, and 15% of those purchases include beverages, said Maione. “Caliper CBD dissolves instantly into any beverage, and we’re excited to offer customers a product that’s as high-quality and convenient as Circle K itself.”
Caliper CBD will be sold in 2-count packs for $5.99. For a limited time, customers will get a free Circle K water with purchase of Caliper CBD.
High-Dose THC Drink Major Launching in California, Oregon
After establishing a leading position within the category in Washington, THC-infused beverage brand Major is preparing for expansion into Oregon, Arizona and other markets starting next month.
As one of the early core employees at cannabis emulsion company SORSE Technology, Tyler Peterson worked closely to develop the Major product line in Washington prior to shifting his focus to brand management as COO. He noted that, after introducing a low-dose infused cider called Happy Apple, Major — which contains 100 mg of THC per 6.7 oz. bottle and is priced at $15-18 each — was launched due to retailer demand for a more potent drink. According to the company, it has sold nearly one million bottles across 304 locations since April.
“For us, we wanted a very economical drink, we wanted to still use SORSE Technology so you that incredible liftoff and potency, and we wanted the flavor to be good,” he said. “It’s more efficient in manufacturing and economical in terms of packaging. It’s the best bang for your buck at a 100 mg beverage, and it’s very easy to dose out the product accordingly.”
According to Peterson, the brand is well-positioned to quickly enter new markets as states continue to pass laws regulating recreational cannabis use. Beyond the mature markets in California, where Major entered last month, and Oregon, where it is set to launch next month, it is also targeting states that have just recently approved cannabis use, including Arizona (by April) and Illinois, as well as Maine and Nevada. As all THC-infused products must be produced in-state, Peterson said Major has a low-overhead mobile system that can produce up to 10,000 bottles using a standard kitchen space, licensing and approval permitting.
“The idea is really to take over the U.S. and have this be one of the premiere beverages that people recognize in the THC market, and at the same time to be prepared for when it goes federally legal,” he said. “At that point, it’s about making sure that we don’t have full duplication of all our processing facilities in every state and we can collapse that into more centralized processors and distributor centers to be able to more effectively hit all the markets.”