Erewhon Invests in Hydration Brand BARCODE
BARCODE, a functional hydration beverage brand founded by former NBA trainer Mubarak Malik, has closed a $2.2 million funding round, the company announced on Monday.
The new financing comes from a number of institutional and individual investors, including Trousdale Ventures, Midnight Venture Partners, Cathexis Ventures, Silas Capital, Gaingels and specialty retailer Erewhon Market. As well, recording artist Kelly Rowland and NBA player Maurice Harkless also participated.
The inclusion of Erewhon in the financing comes as BARCODE expands its presence in retail via the grocery chain and a distribution partnership with Los Angeles Distribution.
“Erewhon firmly supports BARCODE as a top-performing sports drink in our seven stores across Los Angeles,” said Erewhon VP Vito Antoci in a press release. “We believe in better-for-you alternatives in the ready-to-drink category that naturally make a difference in the way you feel.”
Launched online last year, BARCODE’s drinks promise “premium hydration” with electrolytes, mushroom extract, coconut water concentrate, and B vitamins and no added sugar. The brand features a minimalist package design and comes in Watermelon, Lemon Lime, and Pinot Noir flavors in 16.9 oz. PET bottles. Each 12-pack retails for $48.
According to the company, the new funding will help support a “mass retail expansion” in the future, with marketing campaigns supported by its celebrity investors like Rowland and Harkless.
“We all have our own code that represents our best version, and BARCODE’s mission is to unlock your greatest potential through nutrition and lifestyle,” Malik said in the release. “With our branding, the barcode not only acts as a logo, but we’re also able to add digital filters because it’s an active UPC the consumer can interact with.”
In addition to its expansion in Southern California, BARCODE is now preparing to enter 10 additional Central Market stores in Texas and will launch on Amazon next month.
Biosteel CEO Celenza Talks Channels, LTOs
With BodyAmor’s sale to Coke essentially resetting the deck for the category, sports drinks are as top-heavy a category as they come. Yet even as the beverage giants consolidate their control, fast-rising Biosteel has found opportunities to make an impact. The brand — a division of Canadian cannabis conglomerate Canopy Growth Company, itself backed by liquor and spirits giant Constellation Brands — recently announced its intent to enter 15,000 new retailers through the end of the year, including Albertsons Company, Food Lion, Giant Food, Publix, Stop & Shop, Rite Aid and Sheetz, as well as “over 20 additional national, regional and local grocery, convenience and drug chains,” according to a press release.
Earlier this month, we caught up with Biosteel co-CEO and co-founder John Celenza to discuss the brand’s recent distribution growth, how it’s official partnerships with various NBA teams are enhancing its profile, and what he thinks about market analysts favorably comparing Biosteel’s trajectory to BodyArmor’s rise.
On growing channel diversity
“Grocery and convenience have been the main targets and pushing in the territories where we have major assets, Miami being a prime example where we have the Miami Heat deal and now have the relationship with Publix to be able to bring them our full SKU assortment. With COVID delays and resets being shifted and all that stuff, there was a lot of uncertainty around timing with regards to these conversations early on, to be able to get into the doors that we wanted to in the areas that we wanted to. But it’s very much a convenience and grocery push for Biosteel right now and we have the means to be able to support it, but obviously focusing on those key markets like Florida.”
On operational growth
“Being in Tetra Paks has been a blessing for us in the sense that we’re not hit by the PET shortage. Constellation Brands (CBI), via its partnership with Biosteel and Canopy Growth, has been a tremendous support system for us. That’s how we were able to bring on so many of our distributors so quickly. Curtis Smith, who was CBI ‘s, former GM in the West Central is now the head of our distribution network. So we have our six GMs that roll in with Curtis now, we also have John Utter, who was the GM in the central for CBI; he’s still at CBI but he’s a direct consultant to Biosteel and in many of our meetings. We’ve got an experienced team on the Canopy and CBI side, combined with the entrepreneurial forces of Biosteel.”
On pulling in consumers with innovation and marketing
“Coming up with these concepts and ideas is a lot of fun. In LA, within the area that we have in proximity to the Crypto.com Arena, we are able to do Showtime Grape, which is the SKU that we’ll be launching out there with the Lakers logo on it. In Brooklyn and the surrounding areas, [distributor] Manhattan Beer will be running out with Black Cherry with the Brooklyn Nets logo on it. Even where we aren’t doing LTOs, we are still able to leverage those partnerships. In Dallas, we are doing a launch in conjunction with the Dallas Mavericks and [investor/ambassador] Luka Doncic. So really able to have some fun with these partnerships and leverage them into the creation of new SKUs that seem to have a lot of demand.”
On comparisons to early stage BodyArmor and managing fast growth
“We’ve got a great team. CBI and Canopy have provided us with unbelievable resources and great experience, both on the supply chain side and on the sales and marketing side. So we’re able to lean on them as much as possible, and that’s really allowed us to go as fast as possible. So yeah we’ve seen the comparisons and what have you and, you know, as a business person, hats off to Mike Repole and the team at BodyArmor for what they’ve been able to accomplish. We’re aware of that. And from a monetary standpoint, an ACV standpoint, a velocity standpoint and how we’re pulling in comparison to maybe some of our competitors in their younger years, we’re very confident in where we are. We feel as though we’re doing more with less and now that we have more coming that’s pretty much exciting for us.”
Lean Body Partners with Honickman Companies
Labrada Nutrition, maker of RTD protein shake brand Lean Body, announced on Monday it has partnered with The Honickman Companies for a long-term distribution agreement through Pepsi-Cola Bottling Company of New York Inc.
Lean Body Protein Shakes contain 40 grams of protein and zero sugar and are available in eight flavors in Tetra Pak cartons.
“Like The Honickman Companies, Labrada Nutrition is a family-owned-and-operated business with decades of experience and a commitment to furthering the health and wellness of its customers,” said CEO and founder Lee Labrada in a release. “We are excited about partnering with The Honickman Companies to make Lean Body Ready-to-Drink Protein Shakes available to customers in the New York area.”
Odyssey Wellness Partners with New Age
Florida-based Odyssey Wellness LLC, maker of a line of functional mushroom beverages, has partnered with Colorado-based distributor New Age Beverages to service the brand in the Rocky Mountains. The partnership will help grow the elixir brand’s presence in Colorado and Wyoming.
“We are very selective about the brands we represent. Odyssey fits our profile of a company we are proud to work with that is committed to uncompromising quality and healthier alternatives that deliver real results and make people feel good about their choice,” said New Age president Josh Hillegass in a press release. “We believe that Odyssey is going to be hugely successful as market trends indicate that functional mushrooms are becoming increasingly popular as more people experience the health benefits of consuming them.”
“We are thrilled to make our innovative mushroom elixirs available in Colorado, which is a trend-setting state with a strong demand for healthier offerings in the energy and functional beverage space. Expanding west into these two key states is part of our growth strategy and New Age is the perfect partner to help us in those markets,” said Scott Frohman, Founder and CEO of Odyssey Wellness, in the release. “They have a profound knowledge of consumers who are opting for healthier beverages over traditional offerings.”
More Distribution News from Around the Industry:
- Organic cactus water brand ¡CACTUS! is now available on Amazon for $17.94 per 6-pack of 12 oz. cans. The drinks are also available in select grocery stores throughout the Southwest, including H-E-B and Raleys.
- Chlorophyll Water has added all Pura Vida locations in south Florida.
- CBD beverage brand Guardian Athletic has partnered with Los Angeles Distributing Company to service Southern California.