Less than two months removed from the brand’s entrance to the coffee category, happy products is already making its move into RTD as it attempts to grab market share among younger consumers.
Happy products is today launching its 4-SKU line of shelf-stable, ready-to-drink coffee — available in Caramel Latte, Mocha Latte, Vanilla Latte and dairy-free Cold Brew Coffee — in 11 oz. cans priced at $2.98 each and initially sold in select Walmart stores nationwide and on the company website. All four varieties use Arabica beans, dairy milk (in the three lattes) and sugar with no artificial flavors or sweeteners.
“Knowing how fast-growing this category is for Gen Z and Millennial coffee drinkers, we wanted to make our seriously delicious coffee available in a convenient format,” said co-founder and CEO Craig Dubitsky. “Our RTD product lets people conveniently find their happy place with a much needed pick-me-up no matter where they are in their day.”
Launched in January, the brand is a collaboration between CPG entrepreneur Craig Dubitsky, who founded lip balm brand eos and vegan oral care company hello products, and Academy Award winning actor Robert Downey, Jr. that’s dedicated to raising awareness around mental health. Nonprofit organization National Alliance on Mental Illness is an equity stakeholder and partner.
The initial lineup includes three coffee roast varieties (Astonishing Dark, Miraculous Medium and Extraordinary Light) in ground, whole bean, K-cup pod and instant coffee sticks, the latter of which has been positioned in part toward younger consumers who are driving the convenience-oriented, cold coffee format, Dubitsky told BevNET in January.
Portability was a driving force to reaching younger consumers, Dubitsky said, who are not only drinking more premium cold coffee but are also searching out on-the-go options.
Happy’s RTDs align with this strategy as the company aims to capture a broader cross-section of Gen Z and millennial consumers amidst coffee’s “fourth-wave, ” in which premium at-home consumption and the proliferation of cold coffee options have exerted a strong influence.
More than three in five Gen Z consumers ordered a cold coffee drink in a foodservice outlet in the first half of 2022 compared to a third who ordered a hot variety, according to a 2022 Mintel report, with RTD options driving innovation among specialty roasters.
Happy is not alone in moving into the RTD space. Seeing the success of viral brands like Chamberlain Coffee expanding into RTDs last year and more specialty roasters from Verve to La Colombe putting resources into their grab-and-go portfolios, the format is continuing to play bigger roles in coffee brand strategy.
The portfolio expansion for happy products also aligns with it trying to carve out space between conventional and premium in the category. Both its bagged and canned varieties aim to be an “egalitarian” option for consumers, Dubitsky said.
“We’re not barista-crats or barista-cratic,” he said with a chuckle. “We make products that taste like we’re using specialty beans, but we’re using commercially available beans so that we can scale and consistently scale.”