Less than a year after launching its first non-kombucha offering with its functional Adaptonic products, Colorado-based beverage brand Rowdy Mermaid is taking another step beyond its roots in kombucha with Adaptonic Clarity, a line of sparkling drinks made with Lion’s Mane mushrooms.
True to the name, the new products aim to support mental clarity and brain health through the addition of 200 mg of Lion’s Mane derived beta-glucans. The drinks are available in four flavors: Asian Pear Elderflower, Mandarin Turmeric, Raspberry Hibiscus and Pineapple Lemongrass, of which the first three are caffeine-free. Each 12 oz. can contains 20-24 calories and 6 grams of sugar and will retail for $3.29 per unit.
According to Rowdy Mermaid founder and CEO Jamba Dunn, the launch of Clarity comes as the original Adaptonic products are playing an increasingly significant role in the company’s portfolio. Launched last March, the immunity-based Adaptonic line now encompasses about 25% of the brand’s sales and is outpacing its core kombucha line at a clip that Dunn estimates will see it account for roughly 50% of revenue by summer. Although kombucha continues to play a key part in Rowdy Mermaid’s expansion, Dunn said many retailers have become “fatigued” with the category amid plateauing growth among leading brands. In contrast, Adaptonic has been readily received by natural and conventional channel buyers like H-E-B, where it is set to launch in 170 stores in March.
“It’s very interesting to watch not only the growth in terms of volume going out, but the types of retailers that are reaching out to us specifically for that lineup,” Dunn told BevNET. “It’s got a lot of legs to it and so it seems like a perfect place for us to double down on innovation.”
The expansion arrives as consumer interest in functional mushrooms is rising in both the food and beverage spaces; The trend has been bolstered by the pandemic and has permeated everything from ground coffee (Four Sigmatic, MUD/WTR) to RTD lattes and chocolate bars (Earth & Star).
Despite some category-wide stagnation in kombucha, Dunn said the company is still focusing on its flagship line. As of February 18, Dunn said Rowdy Mermaid was the sixth largest kombucha brand in the natural channel according to SPINS, and was just $110,000 behind Humm Kombucha.
In addition to Adaptonic Clarity, Rowdy Mermaid is also launching a new permanent SKU to its kombucha portfolio: Hibiscus Pulse, made with cassia and chipotle and intended to support cardiovascular health. Each 12 oz. can contains 9 grams of sugar and will retail for $3.49. The drink will be featured at Natural Products Expo West 2022 next week and is now available online direct-to-consumer and in 162 Natural Grocers stores and Rocky Mountain region Whole Foods locations.
Hibiscus Pulse is the first new addition to the kombucha line since Rowdy Mermaid discontinued its best-selling Living Ginger flavor due to difficulty in securing Tasmanian pepperberry, a key ingredient that had become scarce amid climate change related crop failures.
The company is also now expanding its distribution via Costco. The company began the first of four Costco Road Shows in the Los Angeles area on February 17 featuring its Savory Peach kombucha flavors in 6-packs for $12.99, its first multi-pack offering.
The company is also using the moment to introduce its first athlete brand ambassador: Minnesota Timberwolves center Naz Reid. According to Dunn, the NBA star discovered the brand in his local Whole Foods and reached out to the company about sponsorship opportunities. Dunn said the partnership is a unique opportunity for the small company, which will center marketing efforts around social media posts and cardboard cutouts of Reid at trade events.
“We’re not one of those brands who goes looking for celebrity partnerships, it’s never been a focus for us whatsoever,” he said. “We’re a small brand, we don’t have money to spend on those types of things. But if they happen organically, you know, that’s really the only way it’s going to work for us.”
Looking ahead, however, Dunn said innovation will be a key pillar for the brand’s expansion plans. Beyond new flavors for kombucha and Adaptonic, the company is looking into additional product categories – including a shelf stable offering.
“Last year, it was Adaptonic Immunity,” he said. “This year, we’re releasing Clarity. Next year, we’ll hopefully get completely out of that beverage set at Whole Foods and get into some of the other beverage sets and continue to explore. I think we’re all just very interested in exploration.”