With its third line launch of the year — a set of low-sugar fruit smoothies which are rolling out at retail now — plant-based beverage maker Koia is seeking to grow its presence in the cold case.
The Koia Smoothie line is available in four flavors: Magic Mango (mango, orange and lemon), Rise & Shine (pineapple, orange, carrot, mango and lemon), Straw-nana Dream (strawberry, banana, pear and apple) and Tropical Passion (passionfruit, mango, pear, orange and lemon). The drinks contain 9 grams of sugar from real fruit juice and 5 grams of plant protein per 12 oz. bottle, plus monkfruit, stevia and prebiotic fibers. Koia Smoothies are currently available in Whole Foods stores at $2.99 per unit, making it the lowest priced line in the brand’s portfolio.
According to Koia co-founder and CEO Chris Hunter, the smoothies are aimed at disrupting a category that has experienced lagging sales in recent years as consumers move away from high-sugar beverages. Hunter noted that internal retail data showed that while total store sales in grocery have grown 11% in the past year, cold beverage sets are only growing at 1.8%, a mix that he believes is due to sugar-laden brands taking up on average more than 60% of shelf space.
“We started looking into these legacy fruit smoothie brands out there and when we dug into the data more we saw this $350 million space that is declining rapidly,” Hunter said. “From a buyer’s perspective, that’s an issue, like ‘I have a big chunk of my space in the retail set dedicated to these declining items.’ So then when we looked at our overall mission and thought this is a big opportunity.”
In particular, the discontinuation of Odwalla this summer has opened up room for Koia to launch a fruit smoothie as buyers still seek to find permanent replacements, Hunter said. The move also prompted Koia to expedite the smoothie launch, which was initially slated for mid-2021, he added, as the company did not want to miss its window of opportunity. Additionally, the brand also is targeting taking share from kombuchas and legacy smoothies with multiple facings.
Launched in 2016 with a flagship line of vegan protein drinks containing only 4 grams of sugar per bottle, Hunter said the smoothie launch will place Koia as a similarly structured but better-for-you alternative to leading brands which offer high-sugar fruit drinks and whey-based protein shakes. The Smoothies accompany other line extensions; Keto, Coffee and functional blend Thrive, which Hunter said combined position the company as a “total beverage solution for the cold box.”
Going forward, the core protein line and the fruit smoothies will serve as Koia’s two “core drivers” in multichannel outlets, Hunter said, with a focus on expanding in natural, grocery, mass and convenience. Though the fruit smoothies are currently only in Whole Foods stores, a broader rollout is expected in Q1 of next year.
“We have this clear picture of Koia as the next half-billion dollar brand,” he said. “And how we get there is by playing off of the success of our plant-based protein drink by introducing our low-sugar fruit smoothie. And then we have these exciting, unique lines that are supporting players in our portfolio, which are playing primarily in natural, that really position offers this just kind of like one stop-shopping solution for consumers.”
While Keto and Thrive are expected to play “very specific roles” within the portfolio, Koia Coffee is intended to appeal to a more mainstream audience. However, Hunter said, the Coffee line has gotten off to a slow start having launched in Q1 at the height of the COVID-19 pandemic and is “only now gaining momentum.”
To support the launch, Hunter said Koia will focus on promotional sales and whole-bottle “guerilla sampling,” as well as partnerships with health and wellness influencers. A big push is currently underway with diabetic health coach Lauren Bongiorno to support National Diabetes Awareness Month. While Koia was not initially intended to focus on diabetic consumers, he noted that the brand has gained traction within that community and will work to expand brand awareness within it.
“2020 became the year of innovation,” he said. “2021 will become the year of support.”