ROAR Organics is closing the year in much the same way that it started it, announcing earlier this month a new $6 million investment tranche to add to the $10 million it has raised thus far this year.
The new capital is not a new funding round but an add-on by existing investors “continuing to pour in support,” CEO Bill Lange told BevNET this week. The brand raised $16 million in total with the initial $6 million in February, a $4 million add-on in April and another $6 million at the beginning of December.
“ROAR is on a tear. We’ve got great momentum and we’ve got investors that are seeing the opportunity and want to continue to fuel that,” Lange said.
Similar to how it has deployed its first two tranches throughout the year, the recent capital infusion is expected to continue expanding its marketing team.
Extending its “Out Loud” campaign from this year will also be a priority, as the brand is gearing up for an exclusive collaboration with its existing partner, Peloton instructor Jess Sims, in the coming year and broader activations with the Professional Pickleball Association (PPA), according to director of marketing Sofia Hexsel.
ROAR participated in over 20 PPA tournament activations this year proving to be a beneficial marketing strategy to gain consumer awareness through sampling. Hexsel estimates the company hands out about 7,000 bottles at each 4-day event.
“[Pickleball] is the fastest growing sport in the U.S. because it is accessible to so many,” Lange added. “That’s why we’re looking for that broad lifestyle appeal. And so it’s a perfect blend from the triathlete T-R-I to the try athlete T-R-Y. It kind of covers the gamut and is a perfect fit for the brand.”
ROAR has had a busy year with innovation as well launching a new flavor — Strawberry Lemonade — and bringing a hydration powder stick product back to the brand in January. Under its new name, ROAR+ Powders, the stick packs are positioned towards immunity and hydration with 100% of daily value of vitamins C, B5 and B12.
The company’s previous 3-SKU line of electrolyte powders launched in 2019 but did not have the immunity play. Eventually, they were discontinued in 2021 as part of the brand refresh following its acquisition by Pennsylvania-based investment firm Factory.
ROAR+ Powders are available in three flavors (Tropical Twist, Strawberry Watermelon and Berry Lemonade) not represented in its RTDs and are currently available on the company website, Amazon, QVC and with foodservice accounts in corporate cafeterias.
Currently, ROAR distributes its RTDs entirely through broadline distributors and has been successful geographically in the “smile of the U.S.” in natural retailers, Lange said. In the new year, the company is planning to start building a DSD network of distributors to further its growth in the conventional and convenience channels.
Predominantly, ROAR sells individually in single-serve 18 oz. bottles but the brand has successfully begun experimenting with variety and multipack cases with some retailers showing that there is opportunity in expanding into more mainstream retailers and club stores.
“We’re trying to be stingy with our capital and it’s a matter of choosing which horse we back at this point?” Lange said. “As we scale and resources become more plentiful that may shift the strategy a little bit on the retail side, but for now, we’ve got so much upside ahead of us and momentum on the ready-to-drink side that we’ve decided to prioritize that.”
ROAR beverage dollar sales have grown 85.7% with unit sales up 73.1% in the 52-week period ending October 8, according to Circana data.
The diversification into hydration-plus products is proving to be a common strategy seen throughout the energy and sports drink categories from Electrolit to BodyArmor. Lifestyle-fitness energy brands like Celsius and Ghost have moved into mixes and PRIME’s stick pack’s sales were up 8,802.1%, according to the same Circana data. Even ZOA has maneuvered into powders this year with a pre-workout mix.