Our Expo East 2023 coverage continues with a look into Elmhurst’s revamped line of plant-based cold brew lattes, as well as ShineWater’s ongoing move into cans under new CEO Clare Verdery. Plus updates from 100 Coconuts and Gorgie, and trend insights from SPINS.
Elmhurst Goes Back to Coffee
Despite a seemingly endless parade of brands ready to take a crack at it, RTD coffee has proved a notoriously tricky category to capture. Ask Elmhurst (2329): despite boasting the brand’s oat milk (zero gums or oils), its two coffee-based (Cacao and Flash Brew) and two tea-based (Matcha and Golden Milk) 11 oz. drinks never quite took off. Its category presence was further diminished when Aussie coffee chain Bluestone Lane, which used Elmhurst oat milk in its RTD lattes released in 2019, pulled back on its own CPG ambitions in favor of its cafe business.
But Elmhurst still believes its plant-based milks can be the keys to unlock coffee, and is set to step back into the arena this January with the launch of a revamped 5-SKU line of lattes, this time in 25.4 oz. cartons.
Why try again? According to marketing VP Heba Mahmoud, energy-heavy c-stores proved a poor fit for the original product, which sought to compete in single-serve set by highlighting clean ingredients and premium quality. So this time around, the line has been reformulated and repackaged to a two-serving 25.4 oz. carton; “Enjoy 2 lattes in Every Carton” is the tagline, with each 12 oz serving clocking in at 95mg caffeine, 5 grams of sugar and 140 calories.
Rather than exclusively using oat milk, as with the original RTDs, the updated versions lean even further into Elmhurst’s robust nut milk platform: the samples we tried at Expo were rich and creamy, highlighted by indulgent Cashew Caramel and Pistachio Creme flavors. Maple Walnut, Hazelnut Mocha and Oat Brown Sugar make up the rest of the range.
Putting convenience to the side, Elmhurst is aiming to start moving its new lattes at the start of 2024 through existing partners familiar with its value proposition: Wegmans, Whole Foods, Fresh Market and the like. At $7.99 for a carton, price per latte should be competitive with single cans of La Colombe draft lattes as well as plant-based lattes from Pop & Bottle.
On a broader level, Elmhurst continues to try and cover all the bases: along with the restaged cold brews, the brand used Expo to showcase a new unsweetened flavor, Coconut & Cashew blend, alongside the rich and indulgent new seasonal release: Apple Pie Spice Oat & Cashew Spiced Blend (fall), which fits alongside Oat Nog (winter) and Vanilla Lavender Oat & Cashew Botanical Blend (spring).
100 Coconuts Targets Bigger Shelf Presence
In a category dominated by a single, clear leading brand, canned coconut water maker 100 Coconuts (#4102) is doing everything it can to stand out, said president Jason Miller at the brand’s Hot Products booth.
Founded in 2019, the company has recently added a tequila cocktail version as well as non-alc Mango and Pineapple flavors made with real fruit juice, and is now available in about 4,500 stores nationwide with a focus on grocery; Miller said Publix is the brand’s top retailer at the moment. Now, the company is trying to make a deeper push into convenience stores.
This year’s innovation push has been vital to that growth strategy, he added. With Vita Coco weighing heavy over the category, 100 Coconuts has focused on its slim 11 oz. can format – a unique package for the category – and what it believes is a superior taste profile that can bring in consumers who normally don’t like coconut water.
“For us to grow at the rate we want to, we need more shelf presence,” Miller said. “You can’t live on one SKU alone.”
For alcohol, the tequila variety is distributed via Manhattan Beer Distributors, which also carries the non-alc offerings as well. Miller said 100 Coconuts has focused on finding DSD partners who can get all of its products into the same stores. That’s being supported by new hires Darrell Bostick and Reuben Rios, who joined as Directors of National Accounts & Distribution for the East and West Coast regions, respectively, in August.
ShineWater Trots Out New Cans, New CEO
ShineWater (#2706) comes to Expo East amidst the start of a new chapter for the company following the appointment of its new chief executive officer Clare Verdery and the ongoing rollout of its new 16 oz aluminum can packaging.
As the cans begin replacing the brand’s bottles as distributors reset and reorder, ShineWater is also preparing for its first brand partnership this fall. The Vitamin D-infused flavored water company has partnered with Dreamworks in anticipation of the release of the third movie in the Trolls franchise this November.
The partnership includes branded ShineWater cans featuring Trolls characters, a private screening sweepstakes, digital activations and coincides with the company’s newest flavor, Tropical Lemonade, dropping in October.
The kid-friendly marketing strategy fits in with the brand’s launch of 6 oz Capri Sun-style pouches last year. ShineWater senior director of national accounts Ben Milewski credited the product for helping open up new retail partnerships and bringing additional touchpoints for the brand throughout the store. That format will remain in place.
The distribution strategy thus far has centered on conventional chains, and there are signs of progress. The product is now in 900 Walmart stores and is testing in about 250 Target locations next year in select markets spanning Colorado, Texas, New York, Illinois, Minnesota and California, Verdery said. It has enjoyed some success distributing through Pepsi-affiliated bottlers, where the unique offering (100% DV of Vitamin D) is “exciting.”.
But the shift from plastic to aluminum is meant to deliver a clear sustainability message to ShineWater’s consumers while not adding more cost of production to the brand, Verdery told BevNET, and will “help the brand achieve profitability.”
Verdery comes to ShineWater with a breadth of experience from managing a variety of brands at The Coca-Cola Company including Honest Tea, vitaminwater and Powerade. Most recently, Verdery was COO of aluminum bottled water brand Proud Source Water.
Gorgie Goes Big, And To NYC Fashion Week
Gorgie (#2652) has gone viral.
After a relentlessly active year thus far – making its brand debut at Whole Foods in January, then expanding to retailers like Albertsons and Sprouts, then announcing a $6.5 million pre-seed raise – Gorgie isn’t done yet as it continues building a woman’s lifestyle brand atop its beverage business.
On the show floor, founder and CEO Michelle Cordeiro Grant shared videos and images of the brand’s placement at New York Fashion week this month with BevNET – which included Gorgie served on platters to guests at the Rainbow Room at Rockefeller Center. The green tea-based energy drinks were also served at clothing brand Alice and Olivia’s show at fashion week.
Fashion week marked a milestone in Gorgie’s brand building strategy, Cordeiro Grant said, and validated how its identity shows up in the physical world. That work started before the launch of the products themeslves, as she began building a social media community around Gorgie and walked last year’s Expo East show with a bag of samples to test the concept. The brand initially launched with three SKUs and doubled that assortment during its first six months on the market.
Gorgie is also activating its audience on the West Coast. Cordiero Grant said that the company is hosting an event in LA later this fall and noted she has received significant organic interest from influencers with “millions and millions” of followers – a tier of online creators she previously believed was out of reach for the brand. Digital marketing strategies are paying off, she added, and the brand’s online presence has driven significant traffic to its Amazon business where the multipacks are now an Amazon Choice top seller.
The brand has also been supported by an deeply experienced team of investors and advisors, highlighted by names like former Halen Brands CEO Jason Cohen and Samuel Kestenbaum, the CEO behind Thinsters Cookies and ParmCrisps. Two new hires have also joined from C4 Energy (Nutrabolt) and Essentia to support sales and marketing efforts.
SPINS: Supplements Sparking Bev Trends
If you’re looking for a peek into what could be the next big thing in packaged drinks, look to the supplement section.
That’s according to SPINS market insights director Scott Dicker, who shared insights on where the CPG beverage space is headed yesterday during an educational session titled A Thirst for Change: Beverage Innovations in Natural & Organic.
The line separating health supplements and mass-market beverages has become more porous as ever – see the rise of pre-workout energy drinks and brain-boosting focus elixirs – and that pipeline isn’t expected to decelerate anytime soon, Dicker said. With the sober-curious movement at an all-time high, consumers are on the lookout for non-alcoholic drink options that still “provide a special feeling.” One of the trending ingredients at the moment is magnesium, specifically magnesium glycinate, which has served as the hero ingredient for relaxation platform Recess (#1012) in its Mood line (RTDs and stick packs), recently landed in 5,000 new doors nationwide. There’s also Emotional Utility Beverage (#1111), which has magnesium in its Mood SKU.
Meanwhile, there’s good news for energy drink brands: Despite being “matured,” the category is “just at the beginning of innovation,” Dicker said. With a majority of brands still using either sugar or artificial sweeteners, that means there’s still room for zero sugar to make a bigger impact.