Distribution Roundup: Celsius Adopts DSD for Target Stores

Celsius Adopts DSD for Target Stores

Fitness energy drink maker Celsius announced last week that it will convert its distribution for 1,100 Target stores nationwide from a direct shipping model to DSD, tapping into the company’s growing network of 135 regional distribution partners.

Speaking with BevNET, Celsius CEO John Fieldly said the transition is the “first national retailer of many” that the company intends to transition to DSD. He noted that the brand has “over exceeded” expectations at Target and is in discussions to expand shelf space in some stores.

In addition to Target, Fieldly said Celsius is in talks with other major accounts such as CVS. Half of the brand’s Walmart accounts are currently serviced by DSD, but the company aims to convert its remaining stores in the near future.

“We’re excited to really ignite the power of DSD,” Fieldly said. “We’ve been out of stock across the country not because we don’t have supplies, but because the velocity at retail is too high and the replenishment systems at Target and Walmart and many other retailers around the country can’t keep up with the demands — so the products sit in the back room.”

Founded in 2004, Celsius began focusing on growing its national DSD network last year, beginning by partnering with New York-based Big Geyser. Since then, the brand has added numerous Anheuser-Busch InBev (AB) DSD houses across the country, including Great Bay Distributors and Double Eagle Distributing in Florida, where Celsius is based.

According to market research firm SPINS, Celsius reported 46.5% sales growth in the convenience channel with an ACV of 13.8% for the 52-week period ending July 12. The brand also recently added 2,700 Speedway locations nationwide, with rollout slated for Q4.

In recent months, Fieldly said the brand is seeing “great rotation” having filled the void left behind at AB distributors following the exit of fitness energy brand Bang, which announced in April it had signed an exclusive distribution agreement with PepsiCo. Celsius will continue to pursue additional regional partners in the coming months, Fieldly promised.

“There’s sometimes a lack of commitment by many brands to really, truly partner with distributors, but that’s something we’re not doing,” he said. “We’re partnering all the way. We’re very much committed.”

Rowdy Mermaid Launches Ecommerce Platform

Colorado-based kombucha maker Rowdy Mermaid announced last week that it has launched a direct-to-consumer ecommerce platform, selling its full lineup in 12- and 24-pack cases.

In a press release, the company noted that entering e-commerce was a longtime goal that was expedited in the wake of COVID-19.

“It has always been our mission to get plant-based medicine to as many people as possible through our products,” said founder and CEO Jamba Dunn in the release. “This new platform is meant to co-exist with the fantastic retail partners we’ve had over the years – Whole Foods, Natural Grocers, The Fresh Market, Sprouts and others – to truly provide nationwide access to Rowdy Mermaid products wherever our consumers are getting rowdy.”

The platform was largely financed by a $3.5 million fundraise which closed in May. At the time, Dunn told BevNET that the company had needed to “overcome hurdles” of product safety and marketing strategies before launching ecommerce.

Hubble Adds HiTouch Distribution, Expands Whole Foods

Sparkling cold-pressed juice brand Hubble announced last week it has partnered with California-based HiTouch Distribution to service select Whole Foods Market stores in Los Angeles and Orange County. According to a press release, the brand initially launched into eight Whole Foods locations in July, but has now added an additional 10 locations.

“We are grateful to Whole Foods Local Program for allowing us to launch a new brand in this challenged retail environment and I can’t say enough about the attitude and support of their team members,” Hubble founder and CEO Dave Burchianti said in the release. “And we couldn’t be more excited to work with HiTouch, Southern California’s premiere cold-chain distributor. They are the ultimate pros and are crushing it out of the gate.”

Hubble is available in three flavors with varying functional properties: Watermelon Mint (clean hydration), Ginger Lemon (digestive wellness) and Golden Citrus with turmeric (immunity boost). The products retail for $4.99 per 12 oz. bottle.

Tea of a Kind Launches New Flavors in Southeast and Midwest

Vessl, Inc. announced last week that it has expanded distribution in several states for its ready-to-drink Tea of a Kind brand. The drink — which recently added Mango, Prickly Pear and Blackberry Basil yerba mate flavors — will be available in select QuikTrip, Mapco, FiveStar, Oasis Chevrons and Stinkers convenience stores. The expansion covers several states in the Southeast and Midwest, including Arkansas, Georgia, Indiana, Kansas, Kentucky, Mississippi, Missouri, Tennessee and Virginia.

The brand has also expanded into Canada, adding London Drugs, Farm Boy and Hudson News locations in the country.

The Bitter Housewife Adds PacNW

The Bitter Housewife announced that its Bitters & Soda line has expanded into Pacific Northwest accounts through partnerships with Point Blank Distributing in Oregon and Crown Pacific Fine Foods in Washington. Each company will be the sole distributor of the product in their respective territories.

KÖE Kombucha Adds SoCal 7-Eleven

Shelf-stable kombucha brand KÖE is rolling out into all Southern California 7-Eleven accounts this month, the company announced in a press release. The brand’s Lemon Lime, Strawberry Lemonade and Mango flavors will be available at over 1,300 locations.