The majority of staff at Guayakí’s self-distribution division, The Yerba Mate Co. (YMCO), have been laid off following the company’s announcement of a national distribution partnership with Anhesuer-Busch (AB) earlier this month.
Over 100 YMCO employees were let go as Guayakí prepared to pivot back to a DSD-focused model; staff were informed of the forthcoming cuts by CEO Ben Mand during an all-company meeting on Friday, January 10, prior to individual conversations with impacted employees. Fewer than a dozen roles outside of the division, including controller, were also affected. An unspecified number of dismissed personnel signed non-disclosure agreements upon departure.
In a statement to BevNET, Guayakí head of distribution Jared Riddle confirmed that the company is still using a mix of “some self-distribution in California” and third-party distributors nationwide.
“While our self-distribution model was crucial for early growth, demand reached a point where a predominantly third-party approach was the best way to keep expanding responsibly. Over the past few years, we’ve teamed up with top-tier distributors nationwide, including AB InBev in California, to improve in-store execution and reach channels like convenience, grocery, and independents.
“Meanwhile, we’re retaining a dedicated YMCO team for hands-on relationships with key mission-aligned accounts (like natural chains, universities, and healthcare) so we can stay true to our roots while continuing to grow.”
As its sales and market presence have increased, the mission-driven yerba mate company has matured as a business over recent years, taking on outside capital for the first time in 2018. On the back of securing a $75 million investment in January 2023, Guayakí last March hired former Harmelss Harvest leader Ben Mand as its CEO, shifting interim CEO Robyn Rutledge into her current role as chairman of the board, replacing co-founder Chris Mann. Under Mand, the brand has expanded its presence in convenience retailers and executed a packaging redesign, while also teaming with MLS club LA FC for sponsorship in September.
Guayakí’s partnership with AB culminates a multi-year shift away from its ambitious “Hacedor” model unveiled in 2018 under YMCO and back towards DSD, a process that has been ongoing for the last three years. Having enlisted regional houses like Polar (New England), the company says it has achieved full U.S. coverage and added 40,000 outlets to its network in the past 36 months, holding 86% market share in the ready-to-drink yerba mate category.
Guayakí has outpaced a mostly flat RTD tea category with strong growth over the past year. According to U.S. multi-outlet (with convenience) data provided by Circana for the 52-week period ended January 21, 2025, Guayakí grew dollar sales 23.3% (over $206 million) and volume 18.5%, with average pricing rising around 4%.