Zen Hemp Infusions Expands Via PFG
Maryland-based beverage maker Zen Hemp Infusions is set to widen availability of its CBD-infused teas next year through a partnership with Performance Food Group (PFG).
Speaking with BevNET earlier today, Macklin Anderson, co-founder and CEO of Zen Hemp Infusions, noted that the deal evolved out of its previous partnership with c-store distributor Eby-Brown, which was acquired by Performance Food Group in 2019 and which, combined with PFG’s Vistar division, services over 75,000 locations, according to a press release. PFG is taking Zen’s drinks to approximately 85 locations of local chain High’s across Maryland.
Launched in 2019, Zen produces five varieties of infused teas — Original Lemonade, Prickly Pear Lemonade, Black Tea with Lavender and Green Tea with Honey — that contain 10 mg of broad spectrum hemp per 16 oz. PET bottle and retail for $2.99 each.
When Zen enters stores this winter, however, there will be a few notable differences. The brand is swapping out its 16 oz. PET bottles in favor of cans, as well as reformulating its lemonade flavors and introducing a new product: a 2 oz. CBD-free energy shot featuring 50 mg of caffeine and 900 mg of nootropic ingredients (Lion’s mane, Rhodiola). The company has also teamed with a new copacking partner, Wildpack, and switched from tunnel to flash pasteurization.
In positioning the brand to play in convenience stores, Anderson said Zen was looking for its “sweet spot” relative to its competitors.
“As a company, we’re trying to roll out and get into areas, especially where high caffeine products are common,” he said. “A lot of our competitors are going into different local regional distributors to get into specialty grocers — we want to be in those locations too. But as a product, it’s got a $2.99 MSRP, as opposed to the rest of the market where we see upwards of $4.99 and $5.99 in some places for 12 oz. products, and we’re a 16 oz. ready to drink tea. We feel at that price point convenience might actually be our sweet spot.”
Anderson noted that the company is actively fundraising and is aiming to close a $2.5 million round, primarily from friends, family and local investors, by February 2022.
“Our goal by 2023 is something like a Wawa or Sheetz [or] a very large regional player, but we’re not ready for that yet,” Anderson said. “We don’t want to go inch deep and mile wide and sign a crazy national agreement where you have no boots on the ground where our products are being sold. We’re cool with growing slowly.”
KeHE Signs New Contract with Erewhon
National wholesale distributor KeHE announced this week it has signed a new distribution contract to service natural grocery chain Erewhon in a move that is expected to support the retailer’s expansion plans.
Based in Los Angeles, Erewhon currently operates six grocery stores in Southern California and, according to a press release, plans to open three new L.A. locations in Beverly Hills, Culver City and Studio City in the near future. The retailer has established itself as a leader in the organic food sector and also operates in-store cafes.
Founded in 1966, Erewhon was acquired by its current owners, husband and wife team Tony and Josephine Antoci, in 2011. According to a February report by the New York Times, the chain has consciously cultivated a premium, influencer-driven image in recent years by positioning itself as both a launching pad for new natural brands and as a “hang out spot” for style-conscious consumers with a strong social media presence.
“As a fellow B Corporation, we are proud to partner with a retailer that aligns on the same culture and values as KeHE,” said Michelle DuFresne, VP of sales at KeHE, in a press release. “Erewhon is an exceptional merchant with extremely high standards and we are thrilled to help support their growth plans as their Primary supply chain partner.”
KeHE services over 30,000 retail doors and operates 16 distribution centers across North America.
“Erewhon is excited to be partnering with a distribution company that can support our growth plans with the most experienced people in the industry,” Tony Antoci, CEO of Erewhon, said in the release. “We look forward to expanding with the help of KeHE’s supply chain expertise. This partnership will bolster our expansion plans and is an excellent cultural fit for Erewhon.”
Alkaline88 Partners with Ohi and GNC
The Alkaline Water Company recently announced two new distribution partnerships, bringing its 1 and 2 liter Alkaline88 bottles to 350 GNC stores nationwide and marking its debut in the “quick commerce” space via e-commerce platform Ohi. The partnership with Ohi will bring the brand’s one gallon 4-packs, 3 liter 4-packs, 1 liter 12-packs and 500 mL 24-packs of Alkaline88 to consumers across New York and Los Angeles in as little as two hours.
“Brands that use Ohi for their e-commerce platforms have seen a 120% increase in repeat purchases, a 35% increase in lifetime value (LTV), and a 28% increase in cart conversion,” said Ricky Wright, President and CEO of The Alkaline Water Company in a press release. “This makes Ohi an ideal platform for Alkaline88, which already has some of the highest consumer loyalty of any functional water in the country.”
As for the launch at GNC, this marks Alkaline88’s entry into the specialty retail channel where it will be on shelf at the refrigerated coolers. The launch follows a successful quarter of sales growth for the brand’s single-serve, 1 and 2 liter bottles which reached a ‘record’ level, Wright said in a press release.
“Being in GNC’s coolers will be a great way to add momentum to our single serve sizes,” he continued. “In brick and mortar retailers, more single-serve beverages are sold in grab-and-go coolers than any other location. Alkaline88 has proven itself to its clients as a brand with tremendous pull through and repeat customers. GNC has thousands of locations across the country, and we believe this is an opportunity for significant expansion with GNC.”
Woke Up! Energy Partners With Mr. Checkout Distribution
Plant-based energy shot maker Woke Up! announced this week it has partnered with Mr. Checkout Distribution to bring its herb, mushroom and vitamin enhanced shots to the distributor’s network of 61,000 stores nationwide which consists primarily of grab-and-go food and beverage retailers.
“With the future of food and beverage clearly being plant-based, we are excited to access thousands of stores where consumers are seeking healthier options for their energy needs,” said Dilan Jay, CEO and product creator of Woke Up! in a press release.
The Florida-based company made its retail, vending and e-commerce debut earlier this year with an Organic Berry flavored shot that contains the caffeine equivalent of 1.5 cups of coffee in each 1.93 oz. bottle. In addition to the distribution expansion, Woke Up! also recently unveiled new green-colored packaging to reflect its plant-based attribute.