Our latest news roundup from Expo West 2024 dives into La Colombe’s revamp under Chobani’s ownership, how Super Coffee is fine tuning its identity (and portfolio) to match demand, and ITO EN’s eye-catching collaboration with LA Dodgers superstar Shohei Ohtani.
Chobani, La Colombe Integration Yields First Innovation
Chobani founder Hamdi Ulukaya has been a believer in La Colombe since becoming the Philadelphia-based coffee roaster’s sole investor back in 2015. And since spending $900 million to acquire the brand outright at the end of last year, that feeling has only grown stronger.
Speaking with BevNET off the show floor during Expo West last week, Ulukaya shared a look at La Colombe’s first product milestone since the Chobani deal: a reformulated, redesigned and larger format version – now 11 oz., up from 9 oz. – of La Colombe’s flagship Draft Lattes (and labeled again under that name).
The update promises to deliver a richer nitro-infused drinking experience across both dairy and non-dairy versions – new ad messaging touts it as the “frothiest coffee ever” – but also to deliver on Ulukaya’s vision for a high-quality, differentiated RTD coffee for the masses with a sub-$3 price point. With Gen Z consumers driving demand for cold coffee drinks in La Colombe’s cafes, the opportunity to recreate the cafe experience in a beverage remains a massive opportunity, he said.
In upgrading to a bigger package, Draft Lattes are also dropping from 11 grams to 7 grams of sugar per can.
As reflected in the brand’s Expo West apparel – Dickie’s jackets with a “Chobani ❤️ La Colombe” patch – Chobani’s integration with La Colombe is meant to be seamless; Ulukaya noted his sensitivity to the perception of the coffee company being “taken over” or becoming subservient to a billion-dollar parent company.
Instead, Ulukaya framed the relationship as a sharing one, with La Colombe “tapping into Chobani’s resources,” and vice-versa. Some of those synergies are already in place; the coffee brand’s 48 oz. cold brews are merchandised within refrigerated dairy alongside Chobani’s creamers and plant milks.
But the success of Draft Lattes, manufactured at a dedicated facility in Michigan, will hinge partly on the success of its $300 million DSD distribution partnership with Keurig Dr Pepper, announced last summer but set to kick into gear with the new 11 oz. cans this spring. It’s easier said than done: just ask Molson Coors.
Super Coffee: Espresso’s Back, Glass is Gone
Creeping up on almost a decade since its founding, Super Coffee is beginning to find itself.
The RTD coffee brand emerged back in 2015 as a high-calorie, Bulletproof-style RTD that aligned with the keto diet trend (the parent company’s name is still Kitu Life). But as its product portfolio has continued to expand and contract, its founders are looking to streamline Super Coffee’s identity and redirect its offerings to specific need states and channels, all while maintaining a clear overarching vision for the brand.
First up is the return of Super Coffee Espresso, last seen in 6 oz cans that launched back in 2019 before falling victim to COVID supply chain challenges. The new version upgrades to an 11 oz can (SRP $2.49) in three SKUs – Vanilla Espresso & Cream, Espresso & Cream and Espresso Black – that are set to enter Northeast DSDs Big Geyser and Polar this Spring, as well as going nationwide with Sprouts. With last year’s energy-leaning 15 oz XXXTRA giving the brand a “meaningful brand in c-stores,” the Espressos are being worked through foodservice providers like Compass and Canteen and into offices like JP Morgan, the co-founder said.
For multiserve, DeCicco sees Super Coffee’s niche as the “leader in brain-boosting cold brew.” To that end, the company has dropped its 32 oz glass bottles in favor of wrapped PET (SRP $4.99) as the former “didn’t represent the brand” and was often misconstrued as a concentrate; “Super Cold Brew” has also been removed as the product name to simplify the brand architecture. Same goes for the “Super Creamers,” which are being directed towards mass channel accounts like Walmart and Target.
The brand’s 12 oz single-serve drinks, meanwhile, have settled into a role as a “skinny Starbucks Frappuccino,” offering indulgent experiences with only 70 calories, zero sugar and 2 net carbs per serving. Those attributes have now been highlighted to hit eye-level on the front of the package, rather than protein or caffeine; “Starbucks doesn’t talk about protein,” DeCicco noted.
Super Coffee’s moves come against the backdrop of category-wide declines in volume (-7.3% over the 4-week period ended on February 24), a factor DeCicco acknowledged the company was watching closely.
ShineWater Leans Into Kid-Positioned Partnership, Sustainable Packaging
After a successful LTO partnership last year with DreamWork Trolls 3 movie, ShineWater is back with new kid-positioned packaging this time with Nickelodeon’s Paw Patrol franchise. The two-year licensing deal allows more time for the enhanced still water brand to piggyback on the success of the animated kids show but also showcases ShineWater’s move into more sustainable packaging.
Launched in April 2022, ShineWater’s kids drink initially rolled out in pouches but has replaced the Capri-Sun-like format with TetraPak cartons. All the kids drink boxes will carry the Paw Patrol licensing moving forward and the launch features two new flavors of the vitamin D-infused flavored water: Apple Berry and Grape Raspberry.
Although the brand has expanded its distribution recently in the west adding Save Mart, Lucky’s, Bristol Farms and Northwest Grocers to its retailer list, ShineWater is taking a pragmatic approach to building too many new partnerships too quickly.
The brand is “optimistic” about moving into convenience with the tall cans but is also testing its new packaging with existing retailers before targeting additional channels.
“We’ve been approached by both Sam’s Club and Costco,” Allison said. “We needed to move through our inventory and gather feedback before we were ready to transition into club [stores].”
Artful Marketing from Ito En
The Los Angeles Dodgers spent the winter investing in a pair of Japanese stars, Shohei Ohtani and Yoshinobu Yamamoto — so it only made sense that Japanese tea brand Ito En would invest in the Dodgers.
The company deepened existing sponsorship ties to the Dodgers in light of the signing of the pair, who have made the Dodgers favorites to reach the World Series. Now, when Yamamoto pitches, the game will be presented by Ito En brand Oi Ocha, as will Ohtani at-bats, according to VP of Foodservice Christy Samson.
Ito En has also begun to switch its marketing emphasis behind three varieties of tea in 10.6 oz. slim cans, noted James Hoagland, COO of Ito En North America. After years of moving its single-serve products in plastic bottles, the slim cans have been present in food service for the past three months.