VYBES, Day One Bring CBD to San Diego
Having built its core business in Southern California, functional beverage brand VYBES is now aiming to capture one of the region’s biggest markets.
This week the company announced a partnership to enter San Diego County via DSD house John Lenore Co. in January 2022, making it the “first CBD beverage to be sold in San Diego,” according to a press release.
That last part may be a bit iffy; VYBES does already service some San Diego accounts through its Los Angeles-based distributors, and Day One CBD Sparkling Water is now working with Coast Beverage in San Diego and Imperial Valley, California (see below). John Lenore also did previously work with GT’s Kombucha on its CBD line extension several years ago, as noted by VP of sales Sean Nichols in a press release.
However, following the lifting of restrictions on the use of CBD in food and beverages in California in October, the distributor is moving forward with VYBES.
“Now that the red tape to sell CBD consumables has been lifted, we feel VYBES is the right brand for us to enter the space,” said Nichols. “Premium Priced with Premium margins and a great team to support makes this a no brainer for us!”
Speaking with BevNET earlier today, VYBES founder and CEO Jonathan Eppers said he had been building a relationship with the distributor for the past three years in anticipation of moving into the city.
“There’s been a lot of demand (from San Diego) but we haven’t been able to work with a distributor to get the drink down there,” Eppers said. “We think it could double our California business, just because John Lenore has such a strong hold on that market and so many great natural, premium independent accounts. That’s where VYBES has found success.”
While the wait goes on for major grocery chains to fully commit to hemp-infused products, VYBES has seen its identity evolve from one of the early pioneers of the CBD beverage category to a functional drink platform centered around supporting mental health through plant-based ingredients and products. While CBD has helped seed the brand’s following amongst consumers and gain placement in independent stores across 32 states, its zero-CBD, adaptogen-fueled Mood Enhancer drinks has given it a foothold with broad-line giants KeHE and UNFI that has the potential to establish VYBES as a mainstream brand. Assuming there’s no change in federal regulations regarding CBD, Eppers said he expects up to 65% of company revenue will come from the mood enhancer line next year.
However, VYBES’ partnership with John Lenore is just for the CBD drinks, at least initially. That line will see the launch of a fourth flavor in March, while two new SKUs of the mood enhancers should be arriving at the same time.
But rather than product innovation, Eppers said the company’s next priority will be to step up its marketing voice, noting that some of VYBES competitors have “done a much better job at building a brand around their product.” Now with multiple products under the general umbrella of plant-based mental wellness, the company will seek to develop a community around the concept.
“Where we have really focused on product and executing at retail, really where I see the biggest opportunity for VYBES next year is really developing and focusing on community,” he said. “It’s feeding this loyal customer base that we have and building upon that to building a strong community around not VYBES per se but mental health. We see ourselves as the mental health brand, and as using plant derivatives to solve people’s everyday mental health needs.”
In other SoCal CBD news, Los Angeles-based Day One CBD Sparkling Water, having recently extracted itself from its bankrupt parent company, is partnering with Coast Beverage for distribution in Southern California, including San Diego and Imperial Valley.
Amidst the sea of CBD infused soft drinks, Day One is positioned as a less-expensive option ($2.99 MSRP per 12 oz .can) and uses 100% fruit juice. The three-SKU line is zero-calorie and sugar free.
“We’re thrilled to increase Day One’s availability across Southern California via this partnership with Coast Beverage. The team at Coast has a proven track record of building beverage brands across Southern California and we are excited to join forces as we continue to expand on the West Coast,” said Chris Clifford, Founder and CEO of Day One Beverages, in a press release. “Southern California has a massive concentration of consumers seeking healthier-for-you beverage alternatives and we couldn’t be more excited to be launching Day One in this key market at a price point that meets consumers where they are.”
“We’re very excited to launch a brand that for the first time, not only offers a solution to our customers, but affordability within the CBD Beverage market,” said Alex Michail, General Manager, Coast Beverage, which also carries hemp-infused sparkling water MAD TASTY, according to its website.
Angry Angel Enters Publix
North Carolina-based energy drink brand Angry Angel is now rolling out to Publix stores across the Southeast, the company announced this month. The zero calorie beverage will be available in 143 stores as a trial run for a potential chainwide expansion in the future.
Founded in 2015 by professional race car driver Justin Lloyd, Angry Angel produces Non-GMO Project certified energy drinks made with caffeine from yerba mate and sweetened with monk fruit, with distribution in two regions of Whole Foods and independent accounts,
The Publix expansion contributes to a 250% increase in retail footprint for the brand in 2021 and it is on track to surpass its forecasted annual revenue by 50%, according to the company.
Angry Angel is available in Blackberry Lemon and Tropical flavors. Each 12 oz. can contains CoQ10 antioxidants and 120 mg of caffeine. In addition to retail, the products are available online for $34.95 per 12-pack.
Lloyd noted that the brand has been bootstrapped to date and works with third party contractors for merchandising, PR and other services. Angry Angel now has a goal of being in 1,500 stores by the end of Q2 2022 and, looking ahead, trade shows and forging new partnerships will play a significant role in Angry Angel’s strategy. Lloyd said that the company has primarily kept its head down since launching but is now hoping to pick up the pace.
However, he said the company will also continue to focus on nurturing and growing the accounts it currently has. While growth is the prerogative, Lloyd said he doesn’t want to risk spreading resources too thin by expanding too fast.
“We’ve done a lot of things organically in terms of growth, which has been great because we have really been able to make our own connections and our own relationships and do it in a way that is sustainable,” Lloyd said.
Rowdy Energy Goes Nationwide in 7-Eleven
Rowdy Energy, a better-for-you energy drink brand founded by beverage industry veteran Jeff Church and NASCAR Cup champion Kyle Busch, announced this week it has expanded nationwide in 7-Eleven stores.
The convenience retailer will carry four flavors of the brand; Strawberry Lemonade, Blue Raspberry, Peach Mango and Cherry Limeade. Each 16 oz. can contains L-Theanine and 160 mg of caffeine sourced from green tea.
“We are very excited to be on the shelves at 7-Eleven nationwide and join the movement to providing America with great tasting, better-for-you beverage options with clean and functional ingredients in convenience stores,” Church said in a press release. “We’re looking forward to introducing Rowdy Energy drinks to new consumers and having them try four of our different flavors.”
Wilfred’s Launches in U.S.
British non-alcoholic aperitif brand Wilfred’s is now rolling out in the U.S. through on-premise locations across the country.
According to the company, Wilfred’s is now available in accounts such as Death & Co. in Los Angeles, Manolo Blahnik’s flagship store in New York City, and in about 30 restaurants across Georgia, North Carolina, Tennessee and Texas. The product is also available to U.S. consumers online via ecommerce stores Food52, Better Rhodes and The Zero Proof.
Wilford’s Non-Alcoholic Aperitif is made with British botanicals, including rosemary, bitter orange, rhubarb and clove. The distilled drink contains no artificial colors or sweeteners and contains 20 calories per serving. Each 750ml bottle retails for $32-$35.
“With Dry January approaching and Wilfred’s firmly planted in the U.S. both online and at on- and off-premise locations, we thought this is the perfect opportunity to spread the word about Wilfred’s,” said founder Chris Hughes in a press release. “If you have impeccable taste and want to enjoy your aperitivo hour without the alcohol like we do, give Wilfred’s a try and we promise you won’t be disappointed.”