Karuna Expands to Sprouts Farmers Market
Plant-based prebiotic beverage brand Karuna announced this week it will distribute four SKUs of its antioxidant smoothies to over 340 Sprouts Farmers Market stores across 23 states. Since its launch in 2017, Karuna has gone through a variety of product formulations and a rebrand in 2018. However, over the past year, Karuna’s founder, Angela Zeng, said the company’s focus has been on “building well” rather than growing fast.
“We are growing really well on social media but if you don’t have enough stores [on the West Coast] the followers are going to get frustrated,” said Zeng. “They don’t want to drive 20 or 100 miles for a product so this distribution really helps that. It’s not just getting into Sprouts stores number-wise, but also connecting with that type of shopper.”
Zeng said Sprouts has always been a “dream retailer” for the brand because of its focus on natural and local products. Sprouts will begin rolling out Karuna’s Pro-fit, Avo-Keto, Empower and Silky Oat smoothie varieties this month. Zeng also notes that this agreement has elevated the brands relationship with KeHE as they began working with the distributor right before the pandemic hit. She said gaining national distribution with this major retailer is an integral part of growing the brand in the health and wellness-focused market on the west coast.
Karuna beverages are now available in over 1,000 stores at retailers including Whole Foods, HEB, Giant Martin, Giant Foods, and Schnucks in addition to many independent midwest retailers. Karuna also launched on Amazon early this year and although Zeng said the brand is reluctant to distribute its perishable smoothie products on the platform due to quality concerns with shipping, the platform has accelerated sales of Karuna’s shelf-stable juices.
Zeng said Karuna will likely begin fundraising over the next year once they have established a well-rooted proof of concept outside of the brand’s home base in the midwest. She explained how although she believes in her product, the juice category’s reputation for high sugar content poses additional challenges when it comes to winning over consumers.
“I am doing something consumers have never heard of,” she explained. “If my customers are happy, then there is a reason for my product to exist. If the customers don’t like my product, it doesn’t matter if I have funding supporting me.”
Zeng continued by emphasizing that the brand’s mission will always remain the same: “to help the consumer make a better choice to improve their health and wellness.” She notes how over the past year other beverage brands have tried to capitalize on the functional benefits of their product, but said for Karuna that has always been and will always be its approach.
“We are always going to be surrounded by some virus, people just don’t realize it,” explained Zeng. “COVID really elevated people’s understanding of how powerful a virus could be. We never really considered how we work, how we live because of a tiny invisible virus that has always been there. We have to learn to live with it and one way to do that is to improve our own health.”
Zeng also noted that a few more tweaks to the products label and branding may be coming down the line and explained she is in the process of working through the intricacies of labeling according to FDA regulation. Zeng said she wants the bottle to convey the brand’s mission without misleading consumers.
“We don’t call them superfoods, I personally don’t like to use that word,” she said. “Every whole food can be a super food for us if we consume them correctly. I really want to keep the focus on the ancient wisdom to improve health, but also remind consumers it is backed by scientific study.”
Kendall Jenner’s 818 Tequila Now in Nine States
Less than a year since it’s launch, 818 Tequila has expanded its distribution footprint to nine states as of this month, with availability at on-premise and off-premise partners in Arizona, Georgia, Illinois, Florida, New Jersey, New York, Texas and Nevada.
The Los Angeles-based label, founded by model Kendall Jenner, has quickly established itself as player in the rapidly growing premium tequila space, which has seen A-list entertainers and athletes ranging from LeBron James (Los Lobos) to Dwayne “The Rock” Johnson (Teremana) to George Clooney (Casamigos) reaching for a piece of the action. Having launched with a star-packed event in California in May, 818 has already blown past its two-year sales projections, according to President and COO Mike Novy.
Speaking to BevNET ahead of a party for the brand on Shelter Island in the Hamptons, Novy said that 818 will prioritize distribution growth in the U.S. before turning to Europe and Asia, citing double-digit growth for the luxury tequila segment worldwide. From a consumer standpoint, Novy said the brand is driven by Jenner’s passion for the product and her ability to share that with her massive following (183 million followers on Instagram), as well as its emphasis on being enjoyed as a sipping tequila. The brand’s social mission – including its recent association with 1% For the Planet – will also be a bigger part of its marketing and communications strategy moving forward. As for the exploding RTD tequila space, Novy said high consumer demand for the existing product means that isn’t a priority, though the company isn’t ignoring it either.
As for Jenner herself, Novy said the 25-year-old founder is intimately involved with decision making for the brand, having spent four years developing the idea and the business before taking it to market. Unlike other celebrity spirits ventures, 818 didn’t need to “engineer a backstory.”
“[Premium tequila] is a crowded environment, but we are well positioned because of the authenticity of the brand,” he said.
Flow Water Partners with Honickman in New York and Mid-Atlantic
Flow Beverage Corp, the maker of Flow Alkaline Spring Water, announced today that it has partnered with The Honickman Companies – including PepsiCo Bottling Company New York, Canada Dry Potomac Corporation and Canada Dry Delaware Valley Bottling Company – to distribute the brand in the New York and Mid-Atlantic area, including Virginia, Maryland, Pennsylvania, Delaware and Washington, D.C. Honickman services a market of over 25,000 doors, marking an opportunity to add to the company’s existing 30,000 store footprint in the U.S. and Canada.
“Having a major partner like Honickman will help accelerate our growth in key markets and create long-term meaningful relationships with retailers and customers throughout the distribution territory,” Flow CEO Maurizio Patarnello said in a press release. “We’re looking forward to working closely together with Honickman for many years to come.”
The expansion comes one month after Flow began trading on the Toronto Stock Exchange, in which it reported a 40% net revenue increase in fiscal year 2020 to CAD$23 million and 97% net revenue growth in the first six months of fiscal year 2021. In March, the company appointed Patarnello – a 27 year veteran of Nestle Waters – as CEO, with founder Nicholas Reichenbach remaining with the company as executive chairman. At the time, Patarnello said the decision to go public would provide Flow with the capital resources necessary to scale the brand to its ultimate goal of being a national leader in bottled water.
Picnic Brunch Expands Across Texas
Ready-to-drink cocktail brand Picnic Brunch announced this week it will now distribute its Bellini, Bloody Mary and Mimosa canned cocktails to HEB stores across Texas in addition to a number of other wholesalers in the state through Favorite Brands, a division of L&F Distributors.
“Texas has been a target market for Picnic Brunch since Day One, and our launch across the state and immediate availability in over 100 H-E-B stores is a tremendous turning point in an influential market,” said Josh Meyers, co-founder and President of Picnic Brunch in a press release. “We are thrilled to be working with the team at Favorite Brands to give Texas consumers an opportunity to brunch anywhere.”
The New York-based brand launched in 2017 and expanded its portfolio just last month with its Bellini SKU. Picnic Brunch products are available at select retailers in Arkansas, California, Maryland, New Jersey, Pennsylvania and Wisconsin.
SelvaRey Rum Partners with Republic National Distributing Co.
SelvaRey Rum, the spirits brand co-owned by pop singer Bruno Mars, announced this month that it has partnered with Republic National Distributing Company to service the brand in 32 markets across the U.S.
SelvaRey produces a line of single-estate rums featuring packaging designed by Mars. Its portfolio includes a White Rum, Coconut Rum, Chocolate Rum and SlevaRey Owners Reserve, which is blended from a selection of 15 to 25 year old spirits.
“We are excited to begin a lasting, fruitful partnership with SelvaRey Rum,” Republic National Distributing president and CEO Tom Cole said in a press release. “SelvaRey has a unique position in the fast-growing ultra-premium rum segment, and we are proud to help them expand their reach.”
Corina’s Switchy Signs with KeHE
Vermont-based brand Corina’s Drinking Vinegars, Inc. has signed on with wholesaler KeHE Distributors to bring its flagship product, Corina’s Switchy, to stores in the Northeast.
Made with organic ingredients, Corina’s Switchy – a sparkling juice with a splash of apple cider vinegar – is sold in 12 oz. slim cans.
“I’m elated to announce our distribution relationship with KeHE. Despite being a single product brand, our passion for high-quality ingredients and clever formulation paired with our new branding earned us the opportunity to exponentially create new loyal fans throughout the 11 states that make up KeHE’s northeast region,” said founder Corina Belle-Isle.
Corina’s other distribution partners include Craft Beer Guild of Vermont, Pine State Beverage (Maine), Maine’s leading beverage distributor, and Provisions International.
De La Calle Expands To HEB
Since its debut at Southern California and Mid-Atlantic region Whole Foods earlier this year, De La Calle has continued its rapid expansion and announced this week it will now distribute its Mexican tepache fermented drinks to 91 HEB stores throughout Texas, according to a post on LinkedIn from teh brand. The beverage brand announced its partnership with Imperfect foods last month and also secured food service partner Tocaya Organica upon its debut in addition to Foxtrot market and a number of regional grocers.
De La Calle’s beverages are made with whole pineapples by fermenting the filtered water, turbinado sugar, pineapple and tepache culture mixture inside the pineapple’s rind. Speaking with BevNet earlier this year, founder Alex Matthews explained that Tepache has a similar use occasion to kombucha, but differentiates itself with its flavor profile and cultural heritage. De La Calle’s Tepache comes in four flavors and is available in single-flavor 12-packs for $46.99.