If you want to go big in retail, you go to the biggest box.
That may be the fortune cookie-version, but that simple sentiment isn’t too far off the approach taken by boutique wellness brand Pressed as it rolls out another grocery-exclusive multi-pack — this time at over 550 Costco locations nationwide — this month.
The Costco exclusive adds to the body of evidence Pressed CEO Justin Nedelman has been amassing to back his theory that the brand’s higher-ring, non-heat pasteurized juices and smoothies can thrive in mainstream outlets. Speaking in February, he described his goal to flip the company’s existing 80-20 split between its in-store and wholesale businesses, aiming for 100% growth in the latter segment over the next 12 months.
That effort started this spring with the introduction of its Express Cleanse box set (4x 15.2 oz. bottles) for $20 at over 200 SuperTarget stores nationwide. Though Pressed sells considerably more expensive bundles in its stores, the sticker shock for Target customers was somewhat intentional: “At the end of the day,” Nedelman told us, “if we’re going to sell our products outside of our stores, we need our wholesale partners to be willing to take the bet with us.”
But for Costco, the wager is somewhat different. Pressed is betting again on multi-packs, this time offering a 8-bottle set of 10 oz. refrigerated Functional Wellness Smoothies (two each of Acai Berry, Strawberry Orange Mango, Tropical Wellness and Avocado Greens) for just $16.89, or around $2 per unit. That’s high value for shoppers buying in bulk, and reflective of the company’s strategy to develop unique bundles at different price points to align with the needs of individual retail partners.
“We believe that guests are willing to pay $20 to $70 in a grocery store if it’s from a brand that has credibility and true science behind it,” Nedelman told us last week. “We want to test higher AOV systems and solutions that are kind of adjacent to the whole cold press juice space. We’re working on some $30, $40, $50, $70 systems, potentially, with some partners, to see if we can do what we’re already doing in our stores in the grocery set.”
Pressed appears to be seizing that space – sales growth is up well over 2,000% to more than $14.7 million through the 52-weeks ended July 3, per Circana MULO w/ C-Store – but gains are coming as the refrigerated juice and smoothie market is contracting. Dollar sales fell around 8.5% overall during the window, with volume sliding 3.9% even as average pricing declined by nearly 5%. (Pressed cited its own numbers as the No. 1 fastest-growing single-serve refrigerated juice brand, up 27% from the prior year.)
Other brands – the revamped Odwalla (Grupo Jumex) and Once Upon a Farm (up 33% in volume, per Circana) – are investing back into juice and smoothies as well, but Pressed’s healthy cafe business has served as an in-house product incubator that can help minimize potential missteps with its major retail partners. It appears to be working; Nedelman said the brand is set to announce another limited release with Target soon, while also working with Costco to test new items (including a 10-pack of 2 oz. shots) over the next 12 months.
“We see Costco as a huge partner,” said Nedelman. “It’s almost like phase two of the plan. You have our stores and our data, and now we have a much broader base to test what is working in our stores. And if it’s working in Costco and it’s working in our stores, clearly America wants it.”
Other Distribution News
- Gut-friendly soda Culture Pop is now available at Aldi in the Finds aisle.
- Perfect Hydration racked up over 3,000 new points of distribution in Q2, the company says, including more than 2,200 Albertsons Companies stores.
- Find Perfy at all 270 Smart & Final locations in 8-packs for $14.99.
- Don’t Quit’s Protein Soda is now officially on shelf at all Albertsons Companies stores (Albertsons, Safeway, Vons, Shaw’s, Jewel-Osco, ACME, Pavilions, United Supermarkets).