Plus, 7-Eleven doubles down on private label beverages͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
August 07, 2024
Bevnet

In this issue of Daily Briefing

  • 🏪 7-Eleven Goes Deeper Into Private Label
  • 🥚 Good Eggs Acquired By GrubMarket
  • 🍹 Calypso Names New CCO
  • 🏭 PepsiCo Unveils New Tennessee Facility
  • ✈️ JetBlue Offering Plant-Based Dairy Option

📰 Today's Top Story

🎨 Taika’s New Formula for ‘Fueling Creativity’? More Matcha

🎨 Taika’s New Formula for ‘Fueling Creativity’? More Matcha

Beyond a catch-all ‘functional cold brew,’ Taika has further defined itself as “fueling creativity”; it just so happens that ceremonial grade matcha is the preferred octane.

The San Francisco-based brand’s 8 oz. matcha latte – launched on the back of fresh investment in 2021 – has emerged as its clear portfolio heavyweight and bestselling SKU across conventional and natural channels, said co-founder Michael Sharon, as well as becoming the third-best selling RTD matcha nationwide – though there’s still some distance behind the leaders. That’s given Taika confidence to step further into the category with its sixth permanent flavor: Strawberry Matcha, available now.

“It’s definitely redefined a little bit of how we think of ourselves,” said Sharon, regarding the success of Taika’s matcha latte.

In pursuing this particular innovation, the conditions allowed Taika to play to its strengths as a nimble startup. Along with the strong sales data, Strawberry Matcha was partially inspired by its popularity on TikTok and as a limited-run menu item at Starbucks. Taika’s new SKU was brought from concept to market in just four months – record speed for the company, said Sharon – and represents its first time launching a product with a fully mapped route-to-market. The product debuted at Fresh Thyme and Erehwon last month and online last week, with Rally’s stores in Northern California up next.

“Every single product launch we’ve done up until this point was ‘we have this thing, we’re gonna launch it on the website, then we’ll take it to Sprouts and Whole Foods and everybody,’” Sharon said. “This time, we started to have those conversations a month after we did the design.”  

Matcha may be the immediate focus, though Taika is still predominantly about cold brew (it represents four of its six total SKUs). But the combination of matcha, adaptogens and macadamia milk (and now strawberry essence) gives the brand a differentiated proposition from the glut of RTD coffees fighting for shelf-space – an attribute made more valuable by Taika’s exclusivity in single-serve cans.

The launch could also be a shot in the arm for RTD matcha, which has struggled to catch fire even as interest in natural energy and functional drinks keeps climbing. Similar to Taika, brands like Pop & Bottle, Califia Farms, Chamberlain Coffee and Remedy Organics feature matcha as an option within a range of functional ingredients, while import brands like Ito En (Matcha Love) and Toro Matcha have experimented with their own takes on positioning the ingredient to maximize consumer appeal. 

For a company primarily found in California, having a niche in matcha may be a valuable card to play as it expands to more locations in the East Coast and Midwest. If their fans are asking for more matcha, the company is happy to oblige them. 

Go Deeper: Team Taika: Oscar-Winner Waititi Joins Functional Latte Brand

 

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👉🏼 What You Need to Know 👈🏼

🏪 7-Eleven Launches 7-Select Energy and Hydration Products

🏪 7-Eleven Launches 7-Select Energy and Hydration Products

Even your local c-store (read: 7-Eleven) is working to meet the broad range of consumers that have developed a new affinity for private label alternatives. Today, the company announced the launch of two new product lines: 7-Select Fusion Energy and 7-Select Rehydrate.

⚡ The 4-SKU energy line comes in Cosmic Cherry, Rockin' Rainbow, Galactic Citrus and Paradise Pulse flavors, each packing Vitamin C, B6 and B12 vitamins and no sugar. The product is packed in 12 oz. slim cans.

💧 Rehydrate comes in Cherry, Fruit Punch and Grape flavors, packed in a 20 oz. bottle and includes “a specialized blend of five electrolytes and vitamins.”

💬 What they said: "We're providing our customers with innovative, high-quality private brand items crafted to energize and refresh…Whether needing a quick boost to help power through the day or a break for hydration, our new beverages are designed to meet the evolving needs of our customers who stay on the go." - Nikki Boyers, VP of Private Brands at 7-Eleven. 

 

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🥚 Good Eggs Acquired By GrubMarket

After a rough couple years online grocery platform Good Eggs announced this week it has been acquired by wholesale grocery supplier GrubMarket.

🛒 Like many in the grocery delivery space, the company saw demand spike during COVID-19 and then fall hard and fast in the following years. Launched in 2011, Good Eggs raised a total of $201 million, according to Crunchbase. But as demand slowed, it was forced to explore other options.

🚚 San Francisco-based GrubMarket was founded in 2014 and began with a similar goal of delivering fresh produce but eventually pivoted into the B2B supplier space. It has been expanding its network via acquisitions of regional produce wholesalers and AI-powered software companies as it scales into a major player as a grocery supplier to supermarket chains.

Insiders can read the full story to understand how the acquisition of Good Eggs feeds the competitive online grocery landscape as digital platforms jockey for new business.

 

🍹 Calypso Names New CCO

Lemonade player Calypso has a new sales chief. The company announced it has promoted Kim Hickey, previously VP Sales West, to chief customer officer. Hickey will replace Bridget Lasda who is leaving for other opportunities. 

🍋 Over the past four years, Hickey has helped establish the brand as the number one single-serve lemonade and built a “high performing sales team” that got the product significant retail distribution including at Walmart, Costco and Albertsons/Safeway.

🗣️ What they said: “This is an exciting time for Calypso as we continue to experience strong growth, significant distribution gains and category leading velocity.  Our delivery of a ‘Taste of the Islands’ experience has propelled Calypso to the #1 position in single serve lemonade.  Kim has been integral to this success and is an outstanding leader with a proven track record of delivering profitable growth.” - David Klavsons, CEO 

 

🏭 PepsiCo Unveils New Tennessee Facility

Today, the multinational beverage maker announced it has opened its second largest warehouse and distribution center in the country. 

👣 PepsiCo Beverages North America (PBNA) has tripled its footprint in the Nashville, Tenn., region with its new 400,000 sq. ft. location in nearby Smyrna, Tenn. which has replaced PBNA’s downtown Nashville facility. 

🧊 The state-of-the-art location features all-electric warehousing equipment meeting the company's pep+ sustainability initiative and includes a climate-controlled warehouse with a capacity to distribute 20 million cases of PepsiCo beverages annually.

 

✈️ JetBlue Offering Plant-Based Dairy Option

Plant-based milk proponents are flying high. JetBlue Airways announced this week it will now offer oat milk as a complimentary option for in-flight coffee or tea. 

🥛 The airline began offering 10 mL Lakeland Dairies’ Milk in a Stick Oat Milk as an onboard creamer option at the beginning of the month.

🧑‍✈️ The move follows similar initiatives at other airlines including those of Delta Air Lines and Alaska Airlines as well as NotCo’s partnership LATAM Airlines.

😱 Consumer preference for oat milk has been on the rise in recent years with Mordor Intelligence estimating that it will reach $2.8 billion globally in 2024 and $5.3 billion by 2029, but there is concern that production is lagging behind demand.

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