Hydration brand Roar Organic closed a $6 million capital round last month to help expand sales and marketing efforts as it launches into more than 1,300 Publix stores and prepares to introduce new innovation at the end of Q1.
The Bethlehem, Pennsylvania-based brand has been a long time independent player in the premium sports water set, having undergone a series of product makeovers and management reshuffles since it was founded in 2014 by CEO Roly Nesi. Under the guidance of president Bill Lange, who joined the company last summer, Roar is seeking to build on recent distribution growth following a year in which it secured national distribution in Whole Foods and Kroger for its lineup of coconut water-based, vitamin- and electrolyte-enhanced hydration beverages.
The capital infusion, which includes reinvestment from existing shareholders, will allow Roar to scale its marketing and sales teams to support last year’s retail expansion and the expectation of building on that growth in 2023. Lange told BevNET the brand grew gross revenue 116% growth in 2022 and is expecting to grow around 80% this year. The weighted average between 2023 and 2022 is a 74% increase in the number of stores.
“Obviously with that comes major demands on the team that supports them from a sales standpoint, as well as major urgency around the marketing investment that’s going to help us be successful,” he said.
In July, when Lange took over as president after serving as Swedish plant milk brand Sproud’s North America general manager for over a year, he hinted at plans to expand Roar staff by as much as 50%.
Having started as an electrolyte-infused sports drink, Roar has since tried various strategies to gain traction, including launching a powder stick product in 2019 and even leaning into kids beverages with superhero themed packaging called Roar Kids. In the Spring of 2020, brand investment firm Factory took a majority stake and eventually installed Alex Galindez as CEO. Under her management, Roar did a brand and formulation refresh that targeted women.
Roar is currently sold online in 12-packs of 18-ounce bottles. It has focused its product mix to four flavors: Mango Clementine, Cucumber Watermelon, Georgia Peach and Blueberry Açaí. The first three of which will be available in the new Publix partnership.
“I don’t know if this is our fourth life or third life – fifth life – depending on how you look at it,” Lange said. “This version seems to be the one that’s really resonating.”
At the moment, the company is not releasing details about the innovation coming soon but Lange did say that there were a number of other new partnerships and sponsorships that would be announced shortly.
When asked about expanding the brand’s channel strategy from its base in natural and conventional grocery, Lange said that it’s always “important to test and learn” while maintaining the “centered” approach that was implemented before he started.
The company has been exploring how it can get into foodservice and club channels while expanding its footprint in ecommerce and home delivery, Lange said. The new capital will go towards pragmatically building on its success last year where the company focused on building on brand development and “really knocking it out of the park” with its current distribution partners.
“We were in c-stores in a prior life and we decided to hit pause on that for a little bit,” Lange said. “We want to make sure that when we do come back to these channels, we’ve got the brand development that ensures we’re going to be successful.”