BevNET Live Winter 2021 Day One Recap: Charting Growth in a Changing Industry

After a two year wait, BevNET Live Winter 2021 returned today in Santa Monica with a full slate of programming, kicking off with a panel bringing together a range of experienced experts and operators to examine the current state of the beverage industry, taking into account the disruptive conditions of the last two years

For investors like Mark Rampolla, founder of ZICO and co-founder and managing partner at PowerPlant Ventures, the ability of beverage startup founders and their teams to be prepared to tackle problems and “ride out” difficult periods has become a critical asset. “More than ever, we are looking for founders and teams” he said, that can handle the “unbelievably complex” business environment. However, those that do manage to emerge from the early growth stage may find themselves with an “open field” to continue scaling, as many will not.

The widely reported issues related to supply chain gridlock, material shortages and labor scarcity have recalibrated the metrics used to evaluate a brand’s progress, according to Nick Giannuzzi, managing partner at The Giannuzzi Group. “These are brand new issues,” he said, but at the same time there is “more money, more creativity, more great ideas” circulating through the industry, and that judging brands strictly on their performance during the pandemic is missing the bigger picture of what they bring to the table.

Along with leadership, the panelists noted that profitability is another key focus within the beverage business, which arguably wasn’t the case several years ago. Nicole Dawes, CEO and founder of Nixie Sparkling Water, implored entrepreneurs to prioritize “building a solid business” that is profitable, while Brian Barr, account executive at DPI Specialty Foods, emphasized the importance of setting long-term and short-term goals. With so many brands competing for space, Barr said trends like immunity and functional drinks have seen particular rise in consumer interest.

Speaking from his experience in guiding the brand for a decade, Eddie Simeon, co-Founder and CMO of Hella Cocktail Co., made the case for growing slowly (and profitably) rather than chasing riskier bets for short-term gain. Reflecting on her own long journey in building snack brand Late July before launching Nixie, Dawes noted how core values and beliefs can help guide companies through fallow periods.

“When you are an organic brand or doing other things that require more capital, you have to be realistic about that and know it’s part of your mission and part of who you are, and build that in,” she said.

That approach extends beyond the bottle to aspects such as diversity, inclusion and sustainability, all of which are important to modern consumers. But at the same time, Rampolla warned against falling into the trap of trying to be too many things to too many people all at once.

“I think great brands are choiceful, I think great entrepreneurs are choiceful,” he said. “They make tough decisions where their priorities are going to be and it cycles through everything they do. And that, by definition, there are some things you won’t do today — maybe not ever, but today.”

Highlights from day one of BevNET Live also included:

– Sarah Frey, CEO of Frey Farms, discussing her personal journey in building an agricultural power brand, and how initial setbacks and challenges influenced her approach to brand building, negotiating with partners and building an effective team.

– A presentation by Nik Sharma, CEO of Sharma Brands, focusing on how beverage brands can grow smart in D2C and arm themselves with the right knowledge and tactics as they scale. While acknowledging that beverage is “the hardest category” to find success in the channel, he also talked about how a strategy of selling “Why?” rather than “What?” can open new possibilities to reach consumers online, and shared some simple ideas for brand building.

– Stepping outside the strictly beverage space, BevNET editor-in-chief Jeff Klineman sat down with founder/investor Shaun Neff (Neff, Orro, Sun Bum, Pattern, Beis, Moon, and Beach House) to break down effective ways to work with celebrities and influencers to create awareness and gain attention organically, and how engaging brands can distinguish themselves within crowded categories.

– Super Coffee (Brand of the Year) and BODYARMOR chairman and co-founder Mike Repole (Person of the Year) took home two of the major prizes from this year’s BevNET Best of 2021 Awards, announced at the conference. For a complete guide to this year’s winners, click here.