BevNET Live Summer 2022 Recap

BevNET Live Summer 2022 returned to New York City in June for the first time in three years at a “precipitous time,” according to Jeff Klineman, BevNET Editor-in-Chief, during his opening remarks. Beverage industry leaders and professionals convened eagerly for the two-day industry conference, which opened with a state-of-the-industry discussion featuring insights from retailers, brands, investors and distributors.

While the pandemic may be waning, brands remain vulnerable to looming disruptions, the panelists cautioned, including an uncertain economic climate and continued unexpected supply chain disruptions. In the midst of the chaos, there was an aura of positivity, however. Despite the existential threats ahead panelists and presenters spread sentiments of “we are all in this together” in a variety of ways throughout the event.

The audience heard from a number of founders and CEOs, including Orgain’s Dr. Andrew Abraham, who said he built the organic nutrition shake brand by focusing on heart over ego. Sharing the story that led to the brand’s creation, Abraham said a childhood battle with cancer sparked an unerring drive to know more and do better, leading him to devour books on nutritional science and how quality ingredients impact the body’s recovery from disease.

As the brand grew and Orgain took on the nutrition category, Abraham fought to maintain focus on its original mission. That mission has also been shaped by the way he operates as a leader, through an approach that encourages feedback on the brand’s performance from team members at all levels of operations. By establishing an open door policy and holding monthly town halls, Abraham said he has created a work environment in which employees are free to voice their concerns about the company and ways it can improve.

Following Abraham, David Klavsons – who in 2017 took the helm at Milwaukee-based King Juice, the parent company of lemonade brand Calypso – talked about how when he assumed the role, the brand was in disarray. “We didn’t even have sales reports, we didn’t even know where this stuff was being sold,” he said. But within the past four years, Klavsons and his team have executed a turnaround, putting Calypso on an upward trajectory and claiming the spot of the top-selling single-serve lemonade brand. Although he’s structured the company’s long term growth with sustainable, actionable goals and mapped out a clear direction on what Calypso can become, Klavsons said the work is not over.

Kathy Galloway, founder of kgalloway consulting, meanwhile, said that “purpose” is a company’s reason for being beyond financial success and said that every founder should strive to infuse a draft of their mission, purpose and vision into the brand upon its creation. She recommended starting with defining its “why” and using that as its north star.

On day two of the show, Liquid Death VP of marketing Dan Murphy took the stage to break down how the complicated world of web3, blockchain and NFTs has been used to market the company’s products.

The canned mountain water brand has gone all-in on what Murphy called “the most revolutionary tech out there” by selling NFTs through its Murder Head Death Club platform, leveraging its direct link to the brand’s community through Discord channels and turning Gen Z consumers into “superfans” by creating a lifestyle brand for the web3 community. “We don’t talk about users or customers,” he said. “It’s people, fans…we don’t make ads, we make content because people don’t like ads.”

Romitha Mally, founder of CPG consultancy firm Mally Collective, advised early-stage entrepreneurs to think critically about their brand’s story in order to gain leverage within a crowded beverage field. Mally sat down with Klineman to discuss how companies should prepare for new investment opportunities. For Mally, the most important thing is a bold vision that can be easily transmissible to potential investors.

Mally remembered Bai Brands founder Ben Weiss touring her through his “Willy Wonka’s Chocolate Factory” in the company’s early days and being impressed with the ethos that he wanted to inject into the brand. Successful entrepreneurs are able to anticipate the challenges before they happen, Mally said, a salient point considering the current uncertainty in the market.

What was conceived as a rare sitdown interview with Bang Energy boss Jack Owoc turned into a walking and talking interview as the founder and CEO of VPX Brands refused to physically sit down for a discussion with Klineman, declaring “I have too much energy, I am energy.” He instead opted to stand and pace on the stage while dismissing “haters” and “negativity,” as well as encouraging beverage entrepreneurs to stay true to their core principles and to avoid the mistake of chasing overnight success.

Owoc also urged the crowd to stand up and “bring the Bang” by joining him in downing an energy shot before discussing topics ranging from the brand’s $5 billion in sales in the last three years to product and ingredient innovation – amidst many asides aimed at his competitors, singling out his frequent courtroom sparring partner, Monster Energy CEO and chairman Rodney Sacks, as “the most litigious man in America.”

The Bang CEO’s presentation came a week before the company announced it had officially terminated its ill-fated distribution pact with PepsiCo, signed in 2020. On stage, Owoc stopped short of saying he regretted the deal and called it a learning experience. At one point, Klineman asked Owoc if he has trouble working with bigger distributors.

“He’s implying that I can’t get along with others,” Owoc responded. “There’s some truth to that.”

Owoc called the recent arbitrator’s ruling in the case between VPX and Monster Energy and Orange Bang “a false ruling by a rogue arbitrator who has no background in science.” The ruling would award $175 million in damages plus a 5% royalty on all future sales of Bang-branded products to Orange Bang and Monster Energy over a trademark infringement originally filed in 2009.

Owoc advised young entrepreneurs to not grow too fast and to use “discipline, effort, sacrifice and study to beat people like me” in the beverage category.