Lemon Perfect Hits Target, Costco Shelves
With increased success in both conventional and natural grocery channel stores, Lemon Perfect is launching an “expanded pilot” program in 499 Target stores in six key regions – California, Georgia, New York, Oregon, Texas and Washington – where the brand has strong direct store delivery distributors.
“The plan in Target is to launch singles, get a strong footprint, gain trial with the Target guests and then expand from there into more outlets and more packages from multipack standpoint,” Lemon Perfect president and CRO Jim Brennan told BevNET last week.
Target will initially be offering Lemon Perfect’s top three selling flavors: Original Lemon, Dragon Fruit Mango and Peach Raspberry. The brand has a total of seven flavors of its zero sugar beverage in 12 oz. bottles but is currently piloting a new watermelon flavor that it hopes to add permanently to the lineup. The company hopes to eventually offer 10 to 12 varieties over the next couple of years.
Brennan is confident that the brand is well-situated to expand quickly over the next five years with a capacity plan and financial backing “to make a very serious run.” In total the company has raised over $42.2 million with a $31 million Series A round closing last April featuring investment from pop star and entrepreneur Beyoncé Knowles-Carter.
The expansion with Target, along with nationwide Costco distribution starting in May, is part of a larger growth story that has seen the company announced 12,000 net new points of distribution in 2022 and to project over $50 million in retail sales this year. Partners include chains like Whole Foods, Publix, Kroger and Albertsons, but c-stores will receive targeted innovation in 2024.
Lemon Perfect is currently working on a larger format which, Brennan said, will help it grow in more channels.
“This innovation from a packaging standpoint, coming in [20]24 is really going to expand us into convenience [and] retail in a much bigger way,” he added. “We’ve been waiting for that.”
Cann Expands Into New York
Cannabis-infused beverage brand Cann announced last week that it is now available in New York as the state’s recreational cannabis initiative expands. New York is now the 33rd state where Cann’s hemp-derived products are now available to ship via its website. Its cannabis-derived products are available for sale in six recreational states.
In September, the company acquired Sweet Reason, a Toronto-based CBD beverage brand, expanding Cann’s platform into alcohol alternatives. Earlier in the year the company had closed a $27 million Series A round to fuel its expansion in North America.
“Cann is one of the first major, national cannabis brands to launch in New York, and with our omnichannel retail strategy consisting of local partnerships and direct-to-consumer, we will get more cans in more hands,” said Jake Bullock, Cann CEO and co-founder. “The growing consumer interest in alcohol alternatives and the legalization of cannabis has created the ultimate market fit for Cann, and we are proud to expand our distribution and offer more consumers a better-for-you alcohol alternative.”
Bored Cow Makes National Retail Debut at Sprouts
Animal-free milk brand Bored Cow is launching chain-wide at Sprouts Farmers Market. The retailer will be offering all four varieties of Bored Cow’s flavors: Chocolate, Vanilla and Strawberry in 11 oz. cartons for SRP $2.49-$2.99 and Original in a 32 oz for $5.49-$6.49.
The news marks the brand’s first national retail partnership after soft launching its animal-free dairy product (developed as a collaboration with precision fermentation company Perfect Day) direct-to-consumer in June 2022. Last month, the company released its Bored Cow Original online and was part of Pop Up Grocer’s first permanent flagship location launch at the beginning of March.
“We couldn’t think of a better partner to bring Bored Cow to brick-and-mortar than Sprouts. We feel Sprouts shoppers are strongly aligned with our mission, and share in our passion for sustainable, plant-powered products,” said Tomorrow Farms CEO Ben Berman.
Pricklee Goes Nationwide in Sprouts
Hydration brand Pricklee is launching its three flavors of cactus water (Prickly Pear, Wild Strawberry, Tropical Mango) nationally in Sprouts Farmers Market locations in May. The brand will be featured as one of the retailers’ “Favorite New Brands” of May in all 390+ stores.
Pricklee was launched in 2019 by a group of health care workers who were looking for a natural hydration beverage alternative to coconut water. Last year, the drink company went through a brand refresh changing its branding from “superfruit water” to “cactus juice” as suggested by dealmakers on Shark Tank where the brand landed a $200,000 line of credit with investor Barbara Corcoran.
Tea Drops Brings Boba To Target
Capitalizing on the consumer trend of boba tea, bagless tea brand Tea Drops has launched an at-home brew and boba tea kits in Target stores complementing its successful DTC subscription program. The collection includes Tea Drops Chai Latte and Ube Latte at-home brew kits complete with Copper Cow Coffee company sweetened condensed milk packets for $8.99 per 3-pack. The 3-pack kit of DIY Matcha Bubble (boba) sells for $13.99 and comes with quick-time brown sugar boba packets and biodegradable boba straws.
Founded in 2015 by Sashee Chandran, Tea Drops specializes in instant, dissolvable tea tablets that are added directly to hot water but has expanded its portfolio into boba kits and wellness drops added to hot drinks.
“Target is constantly pushing the boundaries of beverage innovation, and the addition of Tea Drops to our assortment positions Target as a true leader in the at-home cafe trend we are seeing,” said Chandran.
Halfday Iced Tea Adds Raspberry flavor lineup With Wegmans Launch
Prebiotic iced tea maker Halfday announced last week its newest flavor: Raspberry which is initially launching in all 110 Wegmans stores in the Northeast.
“We are so excited to be bringing Raspberry to Wegmans”, said Halfday founder Kayvon Jahanbakhsh in a press release statement. “They’ve been such great partners to us, and have believed in our mission since Day 1. Wegmans is always on the forefront of trends, and they’re located in the backyard of where almost all major iced tea brands first launched.”
Halfday’s 12 oz. cans are already available in Lemon, Peach and Green Tea with honey and ginseng as well as a seasonal Cranberry flavor. All of the offerings feature 8g of prebiotic fiber and 3g of sugar and are available in 2,100 stores across the United States as well as on Amazon and through the company’s website.
Koe Kombucha Announces Multiple New Distribution Gains
Los Angeles-based Koe Kombucha is growing its distribution reach to over 3,000 stores in the U.S. and now abroad with news that the fermented beverage is available in Bermuda, Puerto Rico, and Honduras as well as U.S. Virgin Islands.
Koe has chased growth in the convenience channel with new placements in Jacksons convenience stores with its 6-SKU line of 12 oz. canned kombuchas. The company has also recently begun distribution in Giant Food Stores, Walmart.com, ShopRite, Woodman’s, Royal Farms, C-Town Supermarkets, Meijer’s Gas, Star Stop, Menards and Miner’s convenience. The kombucha brand also announced distribution partnerships with Columbia Distributing, HT Hackney and Core-Mark North.
DEFY Partners with San Diego Beverage Distributor John Lenore Co.
NFL Hall of Famer Terrell Davis’ performance wellness company DEFY has signed on with non-alcoholic beverage distributor John Lenore Co. to expand in the San Diego County region. John Lenore Co. will be distributing the brand’s non-CBD products: alkaline water called Hydrate and a three-SKU line of Boost + Immunity sports energy drinks (Grape Burst, Orange Rush and Elderberry Lemonade flavors).
DEFY launched in 2019 with a line of CBD sports drinks, gummies and oils aimed to aid athletes in fitness recovery.
Susosu Launches in Giant Foods
Hydrogen water brand Susosu Water will be available in all Giant Foods locations in the Mid-Atlantic region starting June 1. The brand closed a seed investment round led by food and beverage accelerator Union Kitchen last April for an undisclosed amount cited at the time triple-digit growth during the pandemic.
The Northern Virginia-based beverage company naturally-sources mineral water and infuses it with extra molecular hydrogen for its 10 oz. water pouches. The brand retails 10-packs online for $35.99.
Chlorophyll Water Expands in NYC With City Acres Partnership
Brooklyn-based beverage brand Chlorophyll Water is expanding its reach in its home market with a new distribution partnership at New York City grocery chain City Acres Market. The new partnership comes after the brand announced in February that it had also expanded within New York City Whole Foods locations.
The 20 oz. bottles retail for about $5 each and are filled with chlorophyll-enhanced purified spring water fortified with vitamin A, vitamin B12, vitamin C and vitamin D.
Positive Beverage Inks New SoCal Distribution Partnership
Health-focused canned drink brand Positive Beverage is now available in Pavilions stores in Southern California. Positive’s products are also available in select Von’s stores in the region. The brand named former Fiji Water and Monster Energy executive James Harris Positive’s executive vice president last July. The brand’s zero sugar and zero calorie line of Immunity Boost and Positive Energy drinks – released at the beginning of 2022 – are packed with vitamins B12, C, D, Zinc and electrolytes.