One year after the launch of its RTD sports drink line, BioSteel is drawing comparisons to one the category’s major players — and not just because of its name.
Last month, a report from Goldman Sachs Equity Research praised the Toronto-based company, calling it an “emerging disruptor in the sports drink category” that “reminds us of an early stage BodyArmor.” That emergence hasn’t come overnight: Founded in 2009 by Michael Cammalleri, a former NHL player, and business partner John Celenza, BioSteel for its first decade focused on powdered sports nutrition products, which slowly gained a following among pro athletes.
However, the company’s trajectory changed in 2019 when Canadian cannabis conglomerate Canopy Growth Company, itself backed by liquor and spirits giant Constellation Brands, purchased a majority stake, with a path to total ownership. The deal allowed the brand to expand into the RTD space and has since set the company up for rapid growth, giving BioSteel access to Constellation’s DSD network where the products are now serviced by over 200 distributors nationwide.
Having debuted its RTD products last October, the brand is now the seventh largest in terms of market share within the U.S. sports drink market, and co-CEO Michael Cammalleri has now said that BioSteel aims to become the number four player in the category in the future.
Positioned as a better-for-you alternative to leading brands, BioSteel’s liquid line is all natural, zero sugar and packaged in Tetra Pak cartons. The drinks are available in Blue Raspberry, Mixed Raspberry, Rainbow Twist, Peach Mango and White Freeze flavors and retail for $2.29-$2.49 per 16.7 oz. unit.
Speaking to BevNET this week, Celenza said the brand is now focused on “being the best version of BioSteel that we can be” as it targets expansion in the convenience and grocery channels while establishing its name in the mainstream with a string of high profile pro sports partnerships.
Like Body Armor, BioSteel has also been active in developing relationships with both pro athletes and teams to boost the brand’s awareness and credibility amongst consumers. The company is currently an official team partner of the Brooklyn Nets, Dallas Mavericks, Philadelphia 76ers and the Toronto Raptors. Outside of basketball, BioSteel also signed on as the Official Sports Drink of the U.S. Soccer Federation earlier this year and last year expanded its roster of celebrity athlete ambassadors, which includes NFL stars Patrick Mahomes and DeAndre Hopkins (also equity partners), as well as Jalen Ramsey and Ezekiel Elliot and among others. Dallas Mavericks point guard Luka Doncic is also an equity partner in the brand.
According to Celenza and Cammalleri, the team partnerships all include bench presence during games and have played a significant role in expanding brand awareness for BioSteel and allow the company to be more strategic and individualized in various regions. The deals also include trademark use rights for both marketing materials and exclusive flavor launches: early next year, BioSteel will debut a special flavor in collaboration with one of its recently signed partners, the Los Angeles Lakers, called Showtime Grape in early 2022 that is targeted to the L.A. area.
As the 2021-2022 NBA season kicked off this week, BioSteel marked another addition to its roster of league partners with the announcement that it had been named the Official Sports Drink of the Miami Heat. In addition to year-long promotions with the team, BioSteel will also tap its existing athlete partners in South Florida (in this case, soccer star Rodolfo Pizarro and college football quarterback D’Eriq King) to mount a strong, localized marketing campaign.
“We just want to continue to accelerate our brand and be the best version of ourselves,” Celenza said. “And that means providing consumers that are getting smarter every day with a better-for-you solution and really bring premium back to the category.”
BioSteel’s rising visibility in the mainstream comes as longtime sports drink category leader Gatorade has faced its toughest competitive environment in decades, with BodyArmor establishing itself as the number two brand in the category and which The Coca-Cola Company has mulled the option of taking a controlling stake. Cammalleri cited better-for-you trends as a key reason for the disruption in the category, and suggested BioSteel’s clean label credentials were appealing to NBA teams and athletes looking to associate with healthier products.
“Pro sports and pro athletes are a great microcosm for society at large,” Cammalleri told BevNET. “People are making healthier decisions as far as what they put in their body, so I really commend these teams for wanting to do a deal with us, who they think is a great up and coming brand, and it’s a fantastic product offering for their players.”
Now, as the brand aims to turn visibility into sales, the company is also adding new doors, including in retailers like Publix, Sheetz, Quik Trip and Ahold Delhaize banners. Cammalleri said BioSteel believes grocery and convenience stores “will be the drivers to start” and Celenza said they aim to have “a considerable amount of ACV for a young brand” within the next 200 days.
As BioSteel continues to grow, it’s also poised to play a significant role in helping Constellation Brands expand its non-alcoholic beverage business. The alcohol conglomerate owns a 38.6% stake in Canopy, which has extended its reach into the CBD beverage category through brands like Quatreau. Constellation has also made direct investments in non-alc brands like HOP WTR and Karma Wellness Water, the latter of which also partnered with Canopy this month to launch a CBD-infused water line.