After years of operating as a small, under the radar brand sold online, powdered functional beverage maker Bobelo is making a serious push for retail.
Based in Utah, Bobelo produces a line of better-for-you, functional drink mixes which add flavor and carbonation when poured into still water. The brand’s line features six flavors, including two energy SKUs containing 100 mg of caffeine per serving (Peach Mango and Black Cherry Cream), two “stress support” varieties containing theanine and GABA (Lavender Lemonade and Pineapple Coconut) and two immunity boosting flavors (Mountain Berry and Orchard Breeze). The line retails for $9.99 per 8-pack and online for $35.99 per 32-pack.
Bobelo was founded in 2017 by entrepreneur Stephen Colvin. According to his LinkedIn, Colvin is a former senior manager at Sparkling Ice parent company Talking Rain, and also served as a contract CMO at restaurant services as a software provider BigZpoon.
According to Taylor Johnson, brand and product manager at Utah consumer product development firm Spark Innovation, Bobelo initially gained traction selling in the workplace, with the bulk of its revenue coming from office sales. However, that business collapsed in 2020 with the pandemic lockdowns, and sales transitioned primarily to online D2C.
Spark Innovation partnered with Bobelo roughly 12 months ago after discovering the brand during an investment presentation, Johnson said, although he did not disclose the financial details of the relationship. Since then, Spark has taken the lead on much of the brand’s operations, helping to secure distribution via KeHE, UNFI and DPI, and has now introduced the products into around 300 retail accounts.
“We saw the product and thought ‘man, that is fantastic,’” Johnson said. “I thought it was really unique, and we love the category that it’s in as well. It hits a lot of the talking points in the hydration category and that space right now.”
The flavored powdered drink mix space has seen a number of new functional and better-for-you innovations in recent years via brands like Liquid I.V., PRIME, Celsius and others. According to market data firm Circana, energy drink mixes grew retail dollar sales 42.4% to $217.9 million in the 52-week period ending October 8, 2023, while sports drink mixes were up 49.5% to $715.4 million.
While Bobelo’s key differentiating factor is the powder’s carbonating capabilities, it’s not the only brand on the market offering to bring fizziness to still water: dissolving tablet brand Plink! also touts the ability to add both flavor and bubbles in a convenient, sustainable package.
Bobelo is currently available in local Utah area King Soopers, Associated Foods and Harmons accounts, he said. The company is also hoping to roll out into Kroger and Walmart stores later this year. The brand is preparing to double its footprint within the next 60 days and is anticipating it will continue to expand to around 1,200 doors by the summer.
That rapid expansion has been a year in the making, and it’s taken some adjustment for both parties.
Spark Innovation initially began solely as the parent company of home hardware products brand FiberFix, created by entrepreneurs Spencer Quinn and Eric Child. But after a 2013 appearance on Shark Tank, the company not only experienced a sharp spike in consumer sales, but also an influx of requests from other startups seeking advice on establishing their own brands in the market. That prompted a transition from manufacturing and selling a single product, to also providing a la carte services for multiple companies.
“When you go on Shark Tank, you kind of become this lightning rod for people who have consumer products,” Johnson said. “So we had products coming through the door left and right [asking] ‘Hey, how did you get into retail? Can you help us out?’ And with so many different categories and products, we, for a time, became somewhat of a services company.”
Today, with a six person team, Spark Innovation operates a portfolio of eight brands in the houseware, toys and beverage categories. According to Johnson, Spark takes several approaches to working with companies; some of them Spark owns outright, but others, like Bobelo and another recent beverage addition – a Utah-based chocolate milk startup called Shōgi – are independent businesses that have partnered with Spark to take over distribution, sales and marketing.
“As a team and as a philosophy we like to be the ones that are having those conversations [with retail buyers] and representing the brand,” he said. “We hire very slowly, as far as adding new faces to the brand, and that’s just kind of been our M.O. We feel like we can present the product the best and we can have the most passion around the product.”
Beyond the core Spark team, Bobelo also has several more employees solely dedicated to the brand, he added.
Spark is also working with Bobelo on new product development and Johnson said the brand will be launching four new flavors within the next three months. At least some of the new innovation, which is being led by Colvin, will feature postbiotics, bringing the brand in line with the gut health trend.
With Bobelo now getting in front of consumers in retail, Johnson said Spark is slowly helping to build up the RTD Shōgi brand. That company offers a single SKU, a Dark Swiss Cocoa milk containing 21 grams of protein per 12 oz. can. It is currently available in local grocery retailers around Utah and Nevada. Johnson said Spark is working wit