Expo East 2021 Notebook: Energy, Enhanced Water Expand; Lavazza Enters RTD

Different Approaches to Enhanced Water

As a challenger brand in a segment dominated by alkaline waters, Oxigen has spent the last few years trying to deliver a different kind of message to consumers: rather than pH, they should be paying attention to how its oxygen-enriched water provides a superior solution for fitness recovery and fighting muscle inflammation. And that message appears to be getting through.

Case-in-point: at Expo East, Oxigen showcased a newly launched 1.5 L bottle, which complements the existing 1 L, 20 oz. and 23.7 oz. sport cap formats. Those configurations helped the company make a push into c-stores, drug and gas stations last year, picking up accounts like Circle K, Rite Aid and CVS, but next year’s forthcoming packaging plays — which include a 1 L 6-pack launching in January, to be followed later by an unspecified fridge-friendly dispenser — will be targeting the club channel, according to company reps.

Meanwhile, Oxigen has continued to refine its identity, moving away from some of the more science-heavy messaging and closer to a broader lifestyle brand through celebrity athlete ambassadors and investors Stephen Curry and Michelle Wie; meanwhile, it’s three-year partnership with German soccer powerhouse FC Bayern Munich has ended, reps noted.

As alkaline water becomes more commoditized, particularly through private label, the opportunity to showcase Oxigen as a differentiated product in the enhanced water mix has given it an advantage, the company said. Rather than breaking down the molecular benefits, advertising and marketing materials have found success by distilling the product down to two simple callouts: “Boosted With Oxygen” and “100% Recycled Plastic.”

Elsewhere at the show, ionized alkaline water giant Essentia is also adjusting its format mix with a new 2 gallon bag-in-box pack. The package was not a simple venture: production partner Niagara installed a new line just for the product, which integrates technology from boxed wine to ensure freshness and quality. But rather than club stores, the larger format arrives due to demand from places like CVS and Walmart, while also giving stores like Whole Foods a more environmentally friendly option. Each external box is made with recycled corrugate and is 100% recyclable, while the inside uses 80% less plastic than eight 1 L bottles by volume.

Then there’s Mineragua, the glass bottled sparkling water line from Mexican CPG brand NOVAMEX. Though the brand is best known for their classic Jarritos sodas, at Expo East the focus was on less heralded Mineragua, available in a single unflavored SKU, which has been buffed up with a new label design and slogan (“Life With Sparkle”) to celebrate the 20th anniversary of its launch. Other tweaks — a slightly cleaned up label, lower sodium — are more subtle, but the brand has built out a range of pack sizes (individual glass bottles, 4-packs, 9-packs,12-packs, 30-packs and a 1.5-liter PET bottle) and plans to build awareness through paid media campaigns in paid media in South California, Phoenix, South Florida, Seattle and Portland, Oregon.

Lastly, The Alkaline Water Company introduced its first CBD-infused functional water which utilizes a new technology featuring a nitrogen-loaded cap that stores the CBD and flavoring until the consumer is ready to drink it. By unscrewing the cap, the ingredients are released and dispersed into the water. This technology makes it possible to maintain the alkalinity of the water and add flavor to it while also preserving the quality of the CBD. Alkaline88 CBD water is available in two functional varieties: a Berry Black Tea Reenergize and Lemon Lime Refresh.

Lavazza Enters RTD Coffee

Though there’s been no shortage of RTD coffee innovation arriving from Europe in recent years, Italian brands have been cautious about crossing the divide. But at this year’s Expo East, family owned roaster and retailer Lavazza showcased a forthcoming line of organic RTD coffees, its first ready-to-drink products in the U.S.

Set to hit stores in Q1 2022, Lavazza’s shelf-stable four-SKU line features two medium roasts — Classic Cold Brew (10 calories) and Nitro Cold Brew (5 calories) — and two dark roasts — Cappuccino Cold Brew (60 calories) and Double Shot Cold Brew with Oat Milk (70 calories). All four varieties are made from 100% Arabica coffee and are Rainforest Alliance certified, and will come in 8 oz. cans in single-SKU 4-packs and a variety pack. Each can features a design inspired by a different Italian locale: Tuscany, Venice, Capri and Milan.

Energy Plays Abound

While next week’s NACS show will see heavy hitters like Red Bull and Monster step into the spotlight, there was still a healthy buzz within energy drinks at this year’s Expo East. That included exhibitors like Celsius and Runa, but also a handful of caffeine-infused line extensions from existing brands.

Following in the footsteps of fellow kombucha brands like Health-Ade and Brew Dr., Humm Kombucha is dipping its toes in the space by piloting a new energy line available in a single SKU, Cherry Cola. Offering 115 mg of caffeine per 12 oz. can (plus a healthy dose of Vitamin B12), the drink is certified organic and contains 14% juice and 35 calories. According to company reps, the line is being piloted at Walmart and Albertsons stores in the brand’s home market of the Pacific Northwest.

Elsewhere, Texas-based Rambler was pouring samples of its lightly caffeinated sparkling water, available in Lime Coconut, Blackberry Mint and Peach flavors in 16 oz. tallboy cans. The product highlights the use of Texas-grown yaupon tea, which packs a milder 60 mg caffeine dose compared to coffee or Yerba mate. However, potentially more interesting was discussion about a potential entrance into the exploding RTD cocktail category with — what else? — a canned ranch water.

On the more bleeding edge of things, functional mushrooms have been a hot trend across beverage categories thanks to brands like Earth + Star, Four Sigmatic and REBBL. Startup brand Odyssey has focused on the nascent segment for its line of health and wellness elixirs, with each SKU featuring a different targeted mood or mindstate (Focus, Immunity, Mood Boost, Energy and Endurance). While the color gradient on the labels of those products have been adjusted slightly, the big news at Expo East was the announcement of a new three-SKU line that is designed to compete more directly in the traditional energy drink space. Available in Passion Fruit/Orange/Guava, Mixed Berry and Dragon Fruit Lemonade, each combines Lion’s Mane and Cordyceps mushroom extracts (plus ginseng and adaptogens) with 85 mg of natural caffeine per 12 oz slim can. The line in launching soon in 4-packs and 12-packs, and will be priced at $3.99 per individual can.

Yet perhaps the biggest news was the debut of True North, the long-rumored caffeinated “pure energy seltzer” play from energy drinks giant Monster Beverage Corp. At a modest, by Monster’s standards, appointed booth, the company poured samples of its six flavors — Mandarin Yuzu, Black Cherry, White Peach Pear, Cucumber Lime, Grapefruit Lemonade and Watermelon Mist — and shared a look at the 12 oz. slim cans, which are notable for what they do include (call outs for zero artificial flavors, colors, sugar, sweeteners or calories) and what they don’t (any mention of Monster). Each can packs 120 mg of natural caffeine (a combination of ginseng, coffee, tea, guarana and guayusa), putting it closer in line with Red Bull or cold brew coffee rather than mildly dosed competitors like AHA (Coca-Cola), Limitless (KDP), bubly (Pepsi) and indies like Phocus.

No word on how or when True North will transition from its current home online to a broader retail presence, potentially with Monster’s distribution partner Coca-Cola.