Koia Expands Nationwide in 7-Eleven
After spending nearly two years in the convenience chain’s ‘Sips and Snacks’ set in about 200 Southern California stores, plant-based protein drink maker Koia announced today it has received nationwide authorization in all 7-Eleven locations.
According to co-founder and CEO Chris Hunter, Koia first entered 7-Eleven in 2019 and spent two years in the better-for-you Sips and Snacks program, where it was among the top selling beverages out of about 30 competing brands.
With nationwide authorization, individual 7-Eleven franchisees now have the option to stock Koia, and Hunter said the company anticipates it will be in half of the retailer’s over 10,000 doors by the end of the month. The retailer will carry three SKUs of the brand’s core protein line: Vanilla, Cacao and Chocolate Banana. Each 12 oz. bottle will retail for $3.99.
Though Koia has a wide presence in the national and specialty channels, as well as conventional retailers such as Publix, Kroger, Safeway/Albertsons, Walmart and Target, the brand has only more recently begun to make headway in the convenience space. Koia is currently available in select divisions of retailers such as Circle K, but Hunter said that 7-Eleven gives the brand a large presence in the convenience space and with it the opportunity to turn more mainstream consumers onto plant-based, better-for-you products.
“I think just Walmart or mainstream conventional grocers’ acceptance of products like Beyond Meat, 7-Eleven’s expansion of Koia really validates and solidifies that the plant-based protein movement is for the masses,” Hunter said. “It is for the many, not the few.”
The expansion will be accompanied by a digital and social media marketing campaign called “Crush it with Koia” that will emphasize the brand’s “for the many” message. As well, the company has hired additional sales representatives to specifically support 7-Eleven in key markets.
“I think 7-Eleven, from a distribution standpoint, is a physical representation of that message,” he said. “There’s a 7-Eleven in all different types of neighborhoods. There might be one right next to a Whole Foods that plays a true convenience role. And there might be a 7-Eleven in a lower income area that plays a grocery role where there’s been limited access to better-for-you options. And so we really applaud 7-Eleven’s effort to shift their product offering and mix towards healthier options and we’re happy to be a part of that.”
Sanzo Adds DSD, Drops Iris Nova
Asian fruit-inspired sparkling water brand Sanzo is changing its distribution structure, expanding its presence at retail through new partnerships with DSD houses in New York and Los Angeles, while also announcing the end of its relationship with text-to-order platform Iris Nova.
Since launching in 2019, the New York-based brand’s growth — over 1000% in 2020, according to the company — has been built primarily through foodservice accounts. But over the past year, Sanzo’s line of real fruit-infused sparkling waters, available in Calamansi, Lychee and Mango, have begun penetrating into retail: the company entered its first Whole Foods location in New York in July 2020 before expanding region-wide in September and then jumping to the West Coast with Erehwon in November. Sanzo is currently available in about 300 retail stores across New York, Los Angeles and Chicago.
Those locations yielded “really strong early velocities,” said Sanzo founder and CEO Sandro Roco, and helped the company offset losses from foodservice. Now the company is going deeper into its top two markets by partnering with Rainforest Distribution and LA Distributing for DSD service in New York and Los Angeles, respectively. The product will have a suggested retail price of $2.19 – $2.69 per 12 oz. can.
“We know from our own experience how heroic the efforts of DSDs have been throughout the pandemic,” Roco said. “We’re excited to get out there and support our distributors.”
While e-commerce growth has “significantly more than offset” the drop-off in foodservice, Roco said Sanzo which raised $1.3 million to fund its retail expansion in August 2020, was widening its channel mix in anticipation of an uneven recovery in the on-premise sector.
“This is why we are plugging a little bit more into retail, because we do know there will be more externalities that influence how foodservice and corporate will come back, but we know that retail has been a little bit more resilient,” he said.
Roco also confirmed that Sanzo is no longer working with “c-commerce” platform Iris Nova, but declined to comment on specific details regarding the end of the relationship. In September 2019, Sanzo was amongst the first third-party brands to partner with the company, which allows customers to order via text message and receive products within 48 hours. Last August, Roco praised Iris Nova CEO Zak Normandin for helping the brand achieve “marquee placements” in retail accounts and for maintaining consistent service during the height of the pandemic.
Roco did state that, contrary to published reports on BevNET and other outlets, Iris Nova is not and has never been an investor or stakeholder in the company.
Normandin did not respond to a request for comment.
Shaka Tea Adds 7-Eleven
Hawaiian iced tea maker Shaka Tea will enter 7-Eleven stores across the U.S. next month, the company announced this week. The convenience retailer will carry all four of the brand’s tropical-botanical SKUs including Mango Hibiscus, Pineapple Mint, Guava Gingerblossom and Lemon Lokelani Rose flavors.
“We are thrilled to be available in 7-Eleven stores across the country with this new partnership,” said Shaka co-founder and president Bella Hughes in a press release. “Growing with 7-Eleven enables us to reach new customers across the country offering health and wellness through the convenience of being available in 7-Eleven.”
To support the expansion, Shaka will launch its new “Shaka Staycation” digital marketing campaign that will educate consumers on “best wellness practices” with a series of videos with tips and tricks on how to make the most of a staycation. Focused on Hawaii, Los Angeles, Denver, Phoenix, Austin and New York the campaign will emphasize the brand’s availability in local 7-Eleven stores.
Around the Industry
- Electrolyte beverage maker Electrolit has partnered with Hensley Beverage Company, Arizona’s largest DSD distributor, to service the brand in the Grand Canyon State.
- Portfolio company Brands Within Reach, now under the ownership of Zachert Private Equity, has received rights from Danone Waters of America to continue selling bottled water brand Evian in the natural channel and Volvic across all retail channels.
- Lemonade brand Me & the Bees is now available at all eight Central Market stores in Texas, including in Austin, Dallas, Houston and San Antonio.