Agave-Based RTD Cocktails Trail New Territories
Two Mexican-inspired spirit-based cocktail startups announced distribution gains this week, with RTD sparkling mezcal maker Elenita and tequila seltzer brand Volley both adding new DSD partners.
Elenita announced that it has partnered with Hensley Beverage Company to distribute its products in Arizona, adding a sixth state to the California-based brand’s footprint.
Founded in 2019 by CEO Jordan Dil and COO Mikel Noriega while the pair were still in business school at UCLA, Elenita makes a line of sparkling mezcal drinks available in Passionfruit Paloma, Strawberry Mule, Cucumber Lime Basil and Pineapple Jalapeno varieties. In order to be classified as mezcal, the products are manufactured in Mexico and made with 100% Maguey espadin. The drinks are sold in 12 oz. cans with a 5% ABV.
According to Dil, the brand initially launched locally in California in December 2019, but the rollout was swiftly disrupted by the pandemic. However, in December 2020, the company partnered with Texas-based beer distributor Ben E. Keith Company, which helped the brand add Spec’s, Total Wine and More, Twin Liquors and Goody Goody Liquor in the state. Since then, the brand entered Georgia and Tennessee with Empire Distributors in April and the Colorado Mountains with Mountain Beverage Distribution Company in June. Elenita is now in roughly 1,400 stores nationwide, including select accounts in California.
To date, Elenita has raised about $3.2 million in financing from individual investors, Dil said, including a pre-launch $1.2 million seed round and an additional $2 million round last year. The company employs six full time employees, including Dil and Noriega, but aims to add region managers in the coming months to handle the distribution expansion and expects to add about five more employees by the end of the year.
Elenita is also looking to add at least two more states by next year, Dil said, with eyes on the Pacific Northwest and Florida.
“We’re really trying to balance doing it justice and doing it properly, rather than the spray and pray approach,” Dil said. “But we also do want to get on the shelf and establish our footprint, because we know the space is getting pretty competitive.”
The company will also continue to focus on innovation, Dil added. This summer Elenita introduced its Passionfruit Paloma and Strawberry Mule flavors, both of which became fast sellers with “tropical forward” flavor profiles. The company also introduced a variety 8-pack containing two of each flavor. Going forward, Dil said the brand hopes to develop limited edition seasonal flavors and to create collaborations with other beverage producers on specialty SKUs.
Elsewhere, Volley has partnered with Heidelberg Distributing to expand its tequila seltzer line into the Kentucky market, the first of several planned expansions in the coming months.
Founded in 2019 by husband and wife team Christopher Wirth and Camila Soriano, Volley’s spiked seltzers contain agave tequila, sparkling water and organic fruit juice. The line is available in Zesty Lime, Spicy Ginger, Sharp Grapefruit and Tropical Mango varieties and comes with a suggested retail price of $3.75 per 355 mL can or $14.99 per 4-pack. Kentucky marks the brand’s tenth state expansion since it rolled out to stores in June 2020 and it is also sold in New York, New Jersey, Georgia, Florida, Tennessee, Massachusetts, Rhode Island, Arizona and South Carolina. The products are also available direct-to-consumer.
According to Wirth, Kentucky was selected as the next market for Volley’s expansion based on strong online sales to the state. The company is now building out a point of sale marketing strategy emphasizing sampling alongside a digital campaign.
“We’re making sure that the right person is becoming aware of the product so that we’re getting that mindshare, but we’re also making sure they’re tasting the product,” Wirth said. “We’ve spent all this time investing in making sure we got the right ingredients, but it doesn’t really matter unless the person tastes it. So liquor to lips is what we’re all about.”
Volley has staffed its team of more than a dozen full time employees with experienced alcohol industry veterans, including CMO Tom Spaven (previously Bacardi) and chief sales officer Christopher Heslep (previously Stoli group), Wirth noted. To date the company has raised capital from private individual investors, Wirth said, noting that they have played a significant role in driving word of mouth about the brand.
Moving ahead, Volley aims to add several more states by the end of the year with a focus on filling in empty pockets along the East Coast before targeting the West, Wirth said. The company is also rolling out new cans featuring aluminum foil wrappers covering the tops in select markets including Kentucky, a move that Wirth said was prompted by consumers’ sanitary concerns related to the pandemic.
“We’ll be the first seltzer to have a protective foil on the top of the can, which is really important in terms of not just hygiene in general, but also with heightened awareness with COVID,” he said. “You don’t know who’s touching your cans along the supply chain.”
Lucky Jack Coffee Now On The Shelf At Fresh Thyme Market
This week coffee company Lucky Jack partnered with Fresh Thyme Market to offer its Nitro Cold Brew Oatmilk Lattes at 70 locations across the East Coast and Midwest. The oatmilk latte is Lucky Jack’s first canned offering and will be available in two flavors: Mocha and Golden Milk + Turmeric.
“We want to give consumers an organic, ready-to-drink nitro cold brew that they can count on to deliver a jolt of caffeine and healthy ingredients along with great taste,” says Lucky Jack Coffee VP of Sales Bryan Hogsett in a press release. “The lattes are a great drink for Fresh Thyme Market’s customers who want a beverage to support a healthier lifestyle with a dairy-free option.”
Lucky Jack’s 7.5 oz canned latte contains 130 mg of caffeine, 5 grams of sugar and 80 calories per serving. The coffee is shelf-stable and is available for a suggested retail price of $3.49 per can or $29.99 for a 12-pack.
KÖE Kombucha Expands Footprint Nationwide
Shelf-stable kombucha maker KÖE has added a number of new retail doors in the convenience, drug and grocery channels, the company announced via a press release.
The brand is now available in roughly 3,000 7-Eleven stores, United Markets, Safeway Mid-Atlantic, Bristol Farms, Natural Grocers, Foodland, Super 1 Foods, RI Jordan Oil Company, Pioneer Petroleum, Royal Farms Convenience Stores, Henderson Oil Company, Clipper Petroleum, B-Kwik, and Re-Fuel.
KÖE also named several new DSD partners, including Honickman Beverage Group, Admiral beverage, Breakthru Beverage Group in Florida, Northeast Sales, Canteen, Lipman Brothers, A.B. Beverage Company, Southwest Distributing and Grey Eagle, as well as expanding its coverage with UNFI.
The expansion comes as the brand launches two new flavors: Watermelon and Tropical. The products, which are rolling out to stores now, are organic and non-GMO Project Verified.
Cruise Beverages Now Available in Iowa
Nitro-infused CBD drink brand Cruise Beverages announced it signed a distribution agreement with Mahaska Bottling Company this week. The CBD beverages will rollout at regional grocery store chains and independent markets and liquor stores across Iowa this month.
“We believe Mahaska has the right combination of high quality service and products, and we share the same values such as community support and dedication to serving customers,” said Brian Post, CEO of Cruise Beverage in a press release.
Pillars Yogurt Grows Store Count to 2500
Drinkable yogurt maker Pillars announced it is now on the shelf at 2,500 retailers nationwide through a variety of new distribution agreements, including an extension of its existing agreement with Whole Foods. The natural retailer will now carry Pillars’ 32 oz chocolate drinkable Greek yogurt at 500 locations nationwide. Additionally, the brand doubled its SKU count from two to four at Wegmans and Harris Teeter and entered into 35 metro-area Shaw’s locations and ten Central Market stores.
Tractor Beverage Partners with Elior North America
Foodservice drinks provider Tractor Beverage Company announced its latest “pouring partner” this week: culinary management company Elior North America. According to Tractor, Elior will carry eight of its ready-to-drink SKUs at its Cura Hospitality, Aladdin Campus Dining, Lexington Independents and Corporate Chefs locations.
Tractor’s drinks are organic and non-GMO certified. According to a press release, Elior will carry the brand’s Berry Patch, Blackberry, Green Tea, Hibiscus, Lemonade, Limeade, Mandarin Cardamom and Unsweet Black Tea flavors.
“We’re honored to be partnering with such a like-minded brand such as Elior,” Tractor chief growth officer Luke Emery said in the release. “We find such value in aligning with partners who have a core mission of helping to better individuals’ lives in one way or another. Together with Elior, we hope to enhance the consumer dining experience across their established network.”