CPG isn’t for the weak of heart, but Matthias Laudico and Charlotte Mizrahi, partners in full-service product development house Ley Line Labs, have been well served by following a simple goal: “We’re really doing this because we want to make cool products for passionate people.”
In today’s efficiency-over-everything climate, the Brooklyn-based company’s “collective model” leans into being lean. Under the guidance of co-founders Laudico (head of research) and Mizrahi (formulator and herbalist), Ley Line offers a holistic suite of product development services for early-stage CPG brands, enhanced by a network of collaborators across specialties like sales, marketing and legal. The idea is “to make it possible for a brand to spend only what is necessary to get what they need,” said Laudico.
And, as of late, what they need appears to be more non-alcoholic beverages. Along with fielding inbound requests, Ley Line has formalized relationships within the community with partners like the Adult Non-Alcoholic Beverage Association (ANBA), Zero Proof Nation and Dry Atlas, relationships that promise valuable, granular insights into the trend. We spoke with Laudico and Mizrahi about their deepening ties to the zero-proof movement, why they are bullish on non-alcoholic bottle shops, and emerging trends within the space. This interview has been lightly edited for space and clarity.
You mentioned doing a lot of networking over the past year. How has that manifested into business for Ley Line? What does something like your partnership with ANBA do?
MIZRAHI: Specifically with regard to the ANBA partnership, something that we hear within the NA space a lot is that rising tide lifts all boats — that’s practically the tagline of the community. And it sounds super cheesy, but it’s really true. In the grand scheme of things, the non-alcoholic world is still on the smaller side, but it’s been a very wholesome community in the sense that everybody wants to see everyone succeed.
It works the same way with us with brands and retailers and other service providers. Everybody nets out with a positive benefit. The brands get everything they need with less stress, and, you know, resources, the service providers and all, gain more clientele. We’ve been described as a collective because we’re really trying to make everyone benefit to the best of our ability without anyone being lost to the wayside, including the brands and the service providers. We’re working with a similar system with some retail partners.
LAUDICO: We’re working on launching a collaborative partnership with a series of independent bottle shops across the country. So we’re working to get the most up to date, and industry specific information available, so that our clients can know more about what the market looks like, and what the trends are looking like, even better than big box stores or national brands. Because an element in NA is that while it’s growing very fast, it’s very new and very small. A lot of the trend analysis, once something is readable at a national scale is no longer up and coming. And by the time you make a product and bring it to market, your wave is gone.
So with this tool set working with these independent shops, you have a direct line to the people who are seeking new things, what they’re seeking, why they’re seeking it, what kind of flavors they’re looking for, what kind of bottles, and we can start getting ahead of the curve finally.
The sudden closure of Boisson was a rare piece of bad news for the adult non-alc space. Was that a blip or cause for concern about category specific retailers in general?
Laudico: If anything, it solidified our understanding of how the industry works. Some [bottle shops] may have flared out, but the tiniest, most communal local spots are doing better than ever right now.
Mizrahi: [Non-alc shops] are community centers. They are absolutely places that people go for purchasing products, but for education, for camaraderie, [and] for feeling part of an industry, and that is also why we want to work with them. Not only for fostering their business and the market data that we want for our brands. But also because as the face of the sales side of NA, as the people speaking directly with the consumers on a regular basis, they have not only phenomenal insight, but they could be a part of shaping what they want on their shelves.
Working with them to accumulate this information also helps the end consumer be part of the decision making process for the products that they want, which we’ve seen work really well with some brands. Just to use an example, I think the brand is called Gorgie, they literally used social media feedback to create their product. Consumers, now more than ever, want to feel connected to their brands. So it’s not just about having a good product, it’s about connecting with your loyal consumer, because repeat purchase is always going to blow one big sale to a major retailer out of the way. And big cash flow is not going to do nearly as much as a loyal fan base of consumers.
How do you see your role in external communications? Why have you been active in talking with the media and partnering with outlets like Zero Proof Nation and Dry Atlas?
Mizrahi: That’s two-faceted. On my side of things, it’s primarily education, especially with functionals. It is making sure that consumers are aware of what they will be receiving. So I do a lot of infographics or podcasts or articles on the use case for a lot of these products.
Laudico: Dry Atlas is an excellent example of this where Victoria and Douglas, [whom] I’ve known for a very long time and they’re excellent professionals in identifying consumers and brand trends and just keeping a pulse on the industry. So we try to work as closely as possible with people like that so we can bring that expertise into the formulation process. There’s there’s certain things too many cooks in the kitchen. But having as many perspectives and as many specific levels of expertise allows us to tackle any number of client problems with kind of focus and certainty. Rather than just relying on the limited expertise of people asked to, we kind of have this broader network of media people or the bottle shops or salespeople on the ground that we can pull in to lend perspective on certain businesses, launch strategy, raising money, etc.
Non-alcoholic casts a wide net. Are there sub-categories or trends within N/A that are particularly captivating?
Laudico: What we’ve started to see, and I think it’s been coming down the pipe for a while, is this split between pure deliciousness and pure function. So there are products that are trying to be as delicious as possible: things like Prima Pavé, the Pathfinder, Phony Negroni, Wilfred’s Aperitif, that kind of drink [whose] function is to be delicious. But on the flip side of that, not to say that these products are not delicious, mind you, there are things that are designed around producing a sensation.
To me, it feels more like there’s ‘non-alcoholics’ – so delicious, not intoxicating beverages – and then alternative inebriants, things that are designed to alter the mind and the mood outside of liquor. And this can be anything from THC to kava to adaptogenic mushrooms. But if my feeling is correct, these two areas are going to start to kind of coalesce and grow alongside each other, as opposed to kind of moving in one cohesive unit.