Our latest news roundup from Expo West 2024 highlights a fresh approach from Weird Beverages, how Recess and Parch are growing the retail footprint of adult non-alcoholic drinks, and plant-based innovations from Forager Project and MALK.
Parch Satisfies Mainstream Consumer Thirst For Non-Alc
It’s been less than 2 years for blue agave-based NA canned cocktail Parch and the brand is on the cusp of breaking ground in retail with two big distribution gains and the opening of a seed investment round.
The zero proof RTD brand came to Expo West’s Mindful Beverages Pavilion armed with not only two new varieties to sample — Desert Margarita and Sunrise Supertonic — but news that it will be part of Vitamin Shoppe’s foray into the NA category and will be on-shelf in about 400 Walmart stores.
Its Walmart test takes the brand’s 8.4 oz original flavors, Spiced Piñarata and Prickly Paloma, into around 100 stores in Texas. This May, Vitamin Shoppe will be carrying Parch’s new Desert Margarita along with the original two flavors in about 700 stores. In total, last year’s New Beverage Showdown champion will be in over 2,000 doors by the end of summer. Additionally, the NA RTD maker signed on with L.A. Libations late last year to help build more distribution in Southern California.
Parch has also opened up a seed investment round that has already garnered support from Ken Sadowsky as a new investor in the brand.
Founded by bev-alc industry veterans Rodolfo Aldana and Ila Byrne, Parch’s RTDs are inspired by the Sonoran desert and infused with the region’s botanicals and adaptogens.
The two new varieties mark the brand’s first portfolio expansion and also bring a new day period to the portfolio. Sunrise Supertonic, an exclusive partnership with dance community Daybreaker, is a yaupon-infused tea elixir featuring ginger, turmeric and reishi mushrooms that will be only available online. Desert Margarita — which will enter Vitamin Shoppe in May — joins the portfolio featuring orange bitters, tamarind and a salty punch from Baja Gold Salt Co.
Weird Beverages Gets Wired
Weird Beverages has been truckin’ along for nearly three years, but co-founder and CEO Jason May believes the brand is now finding its groove with better-for-you energy.
At its booth in Hall E last week, Weird showcased two new yerba mate flavors – Mystical Mint and Grateful Grapefruit – fleshing out a line that launched last year with an Acai Pomegranate variety. Yerba mate had originally been a way for the brand to add more higher caffeine SKUs to its portfolio, but after some tinkering May said the company is now going all in on energy by upping the caffeine content across both the yerbas and its flagship canned tea line to 160 mg per 16 oz. can.
The re-positioning of Weird as a better-for-you energy brand has May and his co-founders Ronnie Bruland and Mike Kelso coming full circle; the trio all spent years building Rockstar Energy prior to its 2020 acquisition by PepsiCo.
According to May, consumers had gravitated more to Weird’s higher caffeine SKUs and the decision to amplify the caffeine comes as it makes a harder push into the channel it’s wanted to play in from the start: convenience.
Weird has also simplified its core tea line down from five flavors to three, leaving Hibiscus Black Tea, Passion Fruit Black Tea, and White Peach Oolong Tea, nixing the mint and chamomile varieties that it originally launched with in 2021.
“This puts us with three teas and three yerbas, which is a little easier to understand from a visual perspective, from a billboard effect,” May said. “Retailers understand it better.”
The two new yerba mate flavors also feature a new character on the front of the can – a three-eyed Weird-ified version of the iconic Grateful Dead dancing bear. May said the use of the mascot was officially licensed from the band, and other Deadhead imagery – such as the “Lightning Skull” logo – have also been added to the packaging and marketing materials.
May said the band both fit with Weird’s ethos around creativity and counterculture, while also reaching a wide audience from the band’s older fans to Gen Z consumers who are still discovering the group.
The Texas-based company has also seen a strong performance with Hispanic consumers and has continued to lean into aspects of Latino culture to further build those connections, drawing influence from Día De los Muertos (Day of the Dead) imagery for some of its new character designs and other marketing materials.
Overall, Weird’s drinks are now sold in around 6,000 doors nationwide, of which around 4,000 of those are c-stores, and May estimated the brand would be in 10,000 accounts by the end of the year. For convenience, the company is now distributed through Coremark.
Building Weird has been a “humbling” experience, May said, noting that although his team’s experience with Rockstar helped to get the brand meetings with buyers, winning placements has not been so easy.
However, May believes the future for Weird is now brighter and he said there’s a path to profitability in 2025. As well, the company is currently raising a second round of capital to support its expansion.
“We’re off to the races,” he said.
Recess Playing Hard With Non-Alcoholic Category
After launching its four-SKU line of Zero Proof Craft Mocktail collection last March, relaxation drink brand Recess continues to solidify its positioning as a zero-proof alternative.
Over the last year, its 12 oz. slim cans (Lime Margarita, Grapefruit Paloma, Watermelon Mojito and Ginger Lime Mule) have begun to make their way into accounts including Sprouts, Northern California Safeways, Wegmans, Shaw’s and a soon-to-come launch in Whole Foods.
The quick move into conventional and natural grocery chains comes as consumers have become more familiar with non-alcoholic alternative options and the name value that Recess has developed in its core Mood line, said CFO and Head of Sales Chris Crowe.
The Zero Proof drinks have found traction selling 4-packs ($13.99) merchandised “between White Claw and Athletic Brewing” or in NA-specific sets, as at Wegman’s.
“We’re behind the category 100%,” he added.
Recess is also teaming up with zero proof bottle shop The New Bar, the official non-alcoholic partner of music festivals Coachella and Stagecoach, to be part of its activations at both shows.
That’s not to say that Recess has forgotten about Mood: that line unveiled its latest flavor at Expo West last week: Tropical Bliss. Crowe said the brand wanted to round out Mood’s options to an even eight varieties and had a desire to make a “medley” flavor that was a “different style” to the rest of the options.
More From MALK, Forager Project
After previously announcing its new shelf stable line and the relaunch of its cashew milk ahead of Expo West, it turns out that plant-based dairy alternative brand MALK had more up its sleeve. The brand showcased an updated plant-based creamer line at its North Hall booth, featuring Lightly Sweetened Oat MALK, Vanilla Almond MALK and Caramel Almond MALK flavors.
The three-SKU line will retail for $7.99 per 16 oz. bottle and is slated for a June launch, according to CEO Jason Bronstad.
The brand dabbled in creamers once before, launching a different version of the line featuring blended oat and almond and oat and pecan flavors in 2019, however those products were later discontinued.
MALK also previewed a new seasonal plant-based milk flavor scheduled for a fall release: Pumpkin Spice.
MALK wasn’t the only plant-based milk maker to introduce creamers yesterday. Forager Project announced its own creamer line made with no gums or oils and only lightly sweetened with coconut sugar. Forager’s creamers come in Half & Half, Lightly Sweetened and Cinnamon Vanilla flavors at $5.99 per 20 oz. bottle.
The company said it expects the creamers to roll out this month into Sprouts stores and is also adding Market Basket and Fresh Thyme accounts, with Whole Foods expected to come online in June.