Seeking to move from coffee into the broader energy space, Minnesota-based Caribou Coffee announced today a new line of caffeinated sparkling beverages set to launch this fall across its 600-plus cafe locations nationwide.
The line, called Bou-Sted, features two low calorie “sparkling caffeinated waters” — in Grapefruit and Wild Berry varieties made with natural flavors — and two sweetened, fruit-infused “sparkling caffeinated beverages” available in Dragon Fruit and Passion Fruit Orange Guava. All products contain 120 mg of caffeine sourced from coffee and will be available in 11.5 oz slim cans. Details on pricing for the line was not disclosed.
According to Matt Reiter, senior director of merchandising for Caribou, the sparkling products come as the business looks to “evolve” its coffeehouse business through new innovations. The launch of Bou-Sted comes only a month after Caribou introduced a line of ready-to-drink cold brews — also exclusive to its cafes — in July. However, Reiter told BevNET that Caribou will launch both lines in wholesale in the near future.
“The ready-to-drink platform as we’ve launched it will allow us to expand our brand statement in commercial channels beyond the K-Cups and bagged coffees we have today,” Reiter said. “In terms of the platform, Bou-Sted allows us to extend beyond coffee without losing the focus of coffee, which remains at our core.”
While the company’s RTD products are still in an early stage — Reiter said the company is constantly monitoring the performance of its three-SKU canned cold brew line — early sales have been strong. Many consumers, he said, will purchase fresh coffee in the morning and grab cans for midday consumption.
Reiter, who also leads Caribou’s innovation, said Bou-Sted is a response to consumer demand for caffeinated products beyond coffee, as well as a growing interest in sparkling beverages.
“Using caffeine from coffee [in Bou-Sted] was a natural play for Caribou,” he said. “It felt like a natural way for us to leverage our coffee expertise, but deliver it to guests in a different way. What we’ve seen in terms of market trends, and what we’re hearing from our guests, is people want alternatives and they want a choice, so this line allows us to offer choice in a very on-brand way.”
The launch of Caribou RTD products further expands the RTD coffee interests of its parent company, Luxembourg-based JAB Holding Company. As the majority stakeholder in Keurig Dr Pepper (KDP), JAB controls distribution for High Brew Coffee and coffee shot maker FORTO. The company also owns national coffee roasters and retailers Peet’s, Stumptown and Intelligentsia.
“Caribou is a premium brand within the coffee house space and has a unique brand position and culture relative to the JAB portfolio,” Reiter said. “Being part of JAB gives Caribou a big advantage. We are a Midwest coffeehouse brand, but it gives us access to global trends.”