Costa Brava Marks First Entrance to Alcohol for LA Distribution
Ready-to-drink spirits startup Costa Brava Cocktails has partnered with LA Distribution to service accounts in Southern California, making the brand the first hard spirits product in its portfolio.
Launched in late 2019, Costa Brava offers two vodka-based SKUs: Lemon Drop and Vodka Cranberry, each of which comes in at 6.7% ABV and zero sugar per 12 oz. can. Similar to another RTD cocktail brand recently profiled by BevNET, the company was co-founded by college roommates Matthew Kaplan and Ethan Lazar seeking an alternative to both sugar-heavy cocktails and hard seltzers.
“Our goal is to expand our independent offsale accounts throughout Southern California as well as get into the higher end grocery chains,” he said.
The line is currently sold in around 150 locations in the state. With a suggested retail price of $3.99 for single 12 oz. cans and $11.99 for a 6-pack, Kaplan said he sees Costa Brava fitting in between established beverage alcohol segments.
“We think we are kind of a hybrid category of the traditional canned cocktails, some with higher ABV but also heavy sugar and carbs, and hard seltzers, which lack flavor and people are just buying them because of the price,” he said.
Richard Medina, founder and CEO of LA Distributing, said that the brand appeal fits with its customer base, who are “conscious of ingredients” and “always seeking the premium alternatives.”
“This brand has found a way to disrupt a crowded category by coupling a premium spirit with the healthy attributes of zero sugar & zero carbs,” he said. “[It’s] ideal for retailers that strive to be different, therefore, we will be launching in gourmet grocery and your neighborhood markets.”
Costa Brava is set to release its next flavor, a margarita, in Q2.
High Brew Teams with Farmer Bros.
High Brew Coffee is continuing its distribution overhaul by partnering with Texas-based coffee roaster and distributor Farmer Bros. Co., the company announced last month.
Farmer Brothers, founded in 1912, specializes in production and distribution of coffee and tea, mainly to foodservice accounts. The company is set to distribute three SKUs for Austin-based High Brew, starting with a pilot test in Chicago, Houston and Dallas.
In a press release, Maurice Morange, Chief Sales Officer of Farmer Brothers, said the company was looking forward to widening distribution “following a successful initial pilot phase.”
“We are excited to work with Farmer Brothers and look forward to exploring new ways of tackling the many segments of foodservice with this partnership,” added David Smith, CEO and founder of High Brew Coffee. “The leadership team at Farmer Bros has been great to work with and we are excited to see the results in 2021.”
The news comes as High Brew has been rapidly scaling its nationwide network of DSD partners following its departure from Keurig Dr Pepper’s distribution system late last year. Over recent months, the brand has added partners such as Classic (California), New Age (Colorado) and Silver Eagle (Texas).
Farmer Bros recently announced the opening of a new 156,600 sq. ft. distribution center in Rialto, California, which is described in a press release as the “last major supply chain optimization initiative as part of its broader turnaround strategy.” That plan also involved closing its Houston, Texas manufacturing facility and capacity enhancements to its state-of-the-art Dallas-Fort Worth plant.
Reed’s to Expand Canadian Footprint via Unique Foods
Ginger beer brand Reed’s has signed a new master agreement with Canadian distributor Unique Foods, the company announced on Wednesday.
The partnership is set to widen the retail presence for Reed’s family of ginger beers, as well as the Virgil’s line of craft sodas, across all channels.
“We are thrilled to launch this new partnership with Unique Foods, and we look forward to further developing our Reed’s and Virgil’s brand presence and availability in Canada,” said Norman E. Snyder, CEO of Reed’s, Inc., in a press release. “Consumers are looking for all-natural and healthier beverages, and this enhanced distribution infrastructure now brings our portfolio to a wider audience in the Canadian marketplace.”
Around the Industry
- Functional latte brand Earth & Star has secured placement at all six locations of influential Los Angeles natural grocery store Erewhon as of February 1, the company shared with BevNET last month. The line will next be rolling out on the East Coast in a “handful of locations,” as well as on Amazon.
- For a limited time in February (also Macadamia Nut Month, apparently), Milkadamia is offering a 6-pack case of 32 oz. unsweetened macadamia milk at Costco for just $6.49. The offer is good at all Costco locations in North America through the end of the month.
- United Sodas of America, which offers modern better-for-you versions of classic sodas, will be entering Central Market stores in March as part of a national retail expansion for the brand. The chain has locations across Texas, including Austin, San Antonio, Dallas and Fort Worth.
- Organic sparkling water line Sovány has entered JP Market, the online store run by Juice Press. All four Sovány flavors — Ingenious Apple, Remarkable Raspberry, Brilliant Orange, and Simply Sparkling — are now available in individual four-packs for $7.99 on JP Market under the Juices & Smoothies category. Sovány will also be available in all of the JP Mini Markets in Chestnut Hill and Southampton, and soon to expand across Manhattan. JP Market offers over 500 products including pantry essentials, baking goods, DIY smoothie & bowl kit and more.