Keurig Dr Pepper (KDP) and Body by Jake — the brand platform run by fitness guru Jake Steinfeld — have teamed with L.A. Libations to launch Don’t Quit!, a line of better-for-you meal replacement drinks that will compete in the adult nutrition aisle.
KDP CEO Bob Gamgort announced in the company’s Q2 earnings call this morning that it had made a seed investment in the new brand with a pre-negotiated path to ownership. During the call, Gamgort noted that Don’t Quit! will be available in about 2,500 retail outlets at launch. The drink is intended to target baby boomers as a healthier alternative to products such as Ensure and Boost.
Gamgort compared the partnership with L.A. Libations to KDP’s investment in fitness energy drink brand Adrenaline Shoc. He said the brand will not initially be distributed through KDP’s DSD network, but will go through its direct warehouses as “it proves itself out.”
“As we said when we did the A-Shoc deal, we would like to do more of these,” Gamgort told investors during the call’s Q&A portion. “We see this, again, as part of this ecosystem that we’ve created. We can create these win-win structures, help entrepreneurs and startup companies get up and running, and buy an option on them for the future and get rewarded for the help that we’re able to provide to make them successful.”
Speaking with BevNET, L.A. Libations CEO Danny Stepper said Don’t Quit! will be a master brand with plans to eventually expand into multiple categories. The drinks are available in original formula and max protein varieties. The original line includes Chocolate, Vanilla, Chai Tea and Orangesicle flavors and contains 10 grams of protein and 200 calories per serving. The max line includes 33 grams of protein and is available in Chocolate and Vanilla flavors. The drinks contain no artificial flavors or sweeteners. Don’t Quit! will retail for $8.99 per 6-pack of original in 8 oz. tetra pak cartons or $9.99 for max in 11 oz. cartons.
The adult nutrition category reported $2.99 billion in annual dollar sales as of January 2020, according to market research firm IRI. According to Don’t Quit!, the top three brands in the space — Ensure, Premier Protein and Boost — made up 47% of the market share in that time. However, Stepper noted that many of the products use artificial or corn-based ingredients.
“We obviously want to sell a lot of drinks, but we do think this is an incredible opportunity to do good in the world,” Stepper said. “The world needs this product. A lot of people drink this stuff when they’re most vulnerable. And, you know, they shouldn’t be putting in their bodies, what they’re putting in their bodies.”
The line will roll out into nationwide retail on August 10 in accounts including Safeway and Kroger, with chains such as Sprouts and CVS coming online in the fourth quarter, Stepper noted.
According to Stepper, the partnership with KDP is a legacy deal that predates Molson Coors taking a minority ownership stake in L.A. Libations in November 2019. As a result, Molson Coors will have partial ownership of Don’t Quit! The brand will work closely with KDP’s CMO, Andrew Springate, for guidance but the conglomerate will likely take a more strategic hands-on role in the future.
As its founder, famed trainer and television personality Jake Steinfeld will have an active hand in Don’t Quit’s strategy, Stepper said. Steinfeld will use his media platform — which includes frequent appearances on cable news and television commercials — to promote the brand, Stepper said, in addition to making decisions on branding and messaging.
“Jake’s an incredible force of nature,” Stepper said. “He has a huge microphone, a huge audience. People who are 55-plus grew up with Jake and his awareness levels with that demographic are like no one else’s.”
Steinfeld told BevNET that he had owned the Don’t Quit! trademark since 1981, but had rarely used it until working with Stepper to launch the drink line. To launch the line, the brand is working with the Zimmerman Agency and The DTX Company and will run television commercials nationwide, in addition to digital and social media campaigns.
“People are passionate about authenticity,” Steinfeld said. “This is what I built my life on. To be able to partner with D-Step [Stepper] and the L.A. Libations team and to have Keurig Dr Pepper behind us, gives us an amazing opportunity.”