Though the pandemic has created a tricky retail environment for early-stage beverage brands, with fewer grab-and-go cold case purchases and less consumer trial for innovative products, carbonated cold brew coffee brand Sofee is seeking to remain nimble by rolling out new ecommerce and marketing efforts.
Launched last year, Sofee offers four canned carbonated cold brew products: The Purist (original coffee), The Masochist (strongly caffeinated), The Hedonist (orange-mocha) and its new Mexican-chocolate flavored launch, The Escapist. The products retail for $4 per 12 oz. can.
After connecting with a category manager after participating at a finalist in New Beverage Showdown 18 last December, Sofee launched with distributor KeHE earlier this year through its new Elevate program, aimed at propelling sales and distribution for early-stage brands. Sofee is currently in three of KeHE’s distribution centers on the West Coast and is sold at all 27 Gelson’s as well as all Erewhon locations. The brand has been working with L.A. Libations’ Relentless Trade Solution for merchandising at Gelson’s.
Since the start of the pandemic, Hazen said that Sofee’s retail sales have taken a hit, particularly as purchases from the grab-and-go cold case have decreased. Field marketing is also a “key piece” that’s been missing since March, Hazen said.
“COVID has definitely presented a challenge because of the lack of people browsing the aisles right now and my inability to actually do in-store demos,” he said. “All new products, I think you need to have that trial and I think for Sofee’s that is especially true given that that carbonation really is something that is pretty unique.”
Despite these retail challenges, The Escapist has become the brand’s best-selling SKU since its launch earlier this summer. Sofee also offers two additional flavors in foodservice — The Nihilist, a sugar-free offering and The Alchemist, an oat milk latte — though Hazen said he is working to finalize a recipe for canned versions of these flavors, especially in light of the decrease in foodservice business due to the pandemic.
To compensate for the lack of in-store grab-and-go purchases, Sofee is rolling out an ecommerce site within the next few weeks, which Hazen said was originally “not in the plan at all,” due to the challenging logistics of shipping refrigerated products. While the product must be refrigerated upon delivery to consumers, Hazen said lab testing has determined that the product remains stable long enough to allow for ambient shipping. Each can will cost $4.50 to $5 a can on the ecommerce site, and the products will ship nationally.
Sofee is also working on a new ad campaign highlighting the reformulation of the product. While it was previously formulated with agave nectar, the product now instead uses agave insulin, which unlike agave nectar retains natural fiber when extracted from the agave plant. The reformulation has added three grams of fiber per can and also dropped the calorie count from 45 to 50 per can to 25 to 30. Hazen said the campaign will focus on the “California lifestyle,” targeting health-conscious, active consumers.
Despite mixed reactions from the judges during the New Beverage Showdown, Hazen has gone “all in” on its unique product names, though he did heed their advice on Sofee’s label. Its flavor descriptors are now more prominently displayed and features additional “naturally caffeinated,” “greatly carbonated” and “lightly sweetened” callouts.
Besides distribution, marketing and production partners, Sofee remains a one man operation and has not taken any outside funding since its initial friends and family round, Hazen said. Looking ahead, the brand is currently in talks with a natural retailer about a possible expansion to the East Coast and regardless of that deal, Hazen said seeking out angel investors will be the logical next step for the brand as it gains more traction.