The Next Wave of Niche and Emerging Beverages

2018 Edition (Published December 2018. Data through 2017.) More than 400 pages, with extensive text analysis.

This report, formerly named Up-and-Coming Beverage For A Full Categories and Companies in the U.S., scrutinizes the always- changing marketplace by identifying and quantifying emerging Catalog of non-alcoholic beverage categories, discussing companies of Reports and growing significance and describing what could be the next big Databases, thing. Go To bmcreports.com

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REPORT OVERVIEW AVAILABLE FORMAT & A brief discussion of this PRICING report’s key features. 2

Direct Download. TABLE OF CONTENTS Word & PDF format report and 3 quarterly editions of BMC’s U.S. A detailed outline of this Quarterly Category Volume & Wholesale Dollar Reports report’s contents and data (delivered upon publication) tables. 6 $3,995 SAMPLE TEXT AND To learn more, to place an advance order or to inquire about INFOGRAPHICS additional user licenses call: Charlene Harvey +1 212.688.7640 Examples of report text, ext. 1962 [email protected] data content, layout and style. 14

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In an industry where innovation is a constant, this report provides in-depth analysis of ways innovation is changing the beverage landscape through the emergence of new categories and brands. It also provides an overview of defining trends spurring developments in new categories. It also looks at the fast-growing liquid refreshment beverage companies, discusses their performance and indicates what makes them noteworthy. Questions answered include:

 What new categories are enlivening the U.S. beverage market?

 How big are these emerging sectors and why are they worthy of being on your radar?

 What trends characterize the various up-and-coming beverage types entering the marketplace?

 Which companies enjoy the backing of industry veterans and strong financial resources, and which do not?

 Which beverage companies and brands show the most promise for success in the competitive U.S. marketplace?

 Which companies could become takeover targets in the near future? This report features

Get a comprehensive overview of 18 fledgling beverage segments, some of which are poised to become the next big thing. For added market perspective, the entrepreneurial brands that comprise the burgeoning beverage categories are anchored in the context of more-established beverage market.

To provide context to the research findings, the report discusses factors that have led to the development of new beverage segments despite the relative maturity of the packaged beverage market as a whole. Backed by Beverage Marketing's reliable, all-sales-channel-inclusive data, readers get a thorough understanding of key facets of emerging beverage markets including:

 Analysis of industry trends and quantification of emerging non-alcoholic beverage categories and sub-segments.

 Discussion of the types of companies driving innovation – from the traditional large beverage companies to entrepreneurs.

 Insight from our up and coming market research analysts' on the factors driving innovation into new beverage types.

 Analysis of niche and emerging segments including high-end water, cannabis infused beverages, premium sodas, cap-activated beverages, super-premium ready-to-drink teas, coconut water, essence waters, kombucha, cleanses, ready-to-drink protein drinks, functional beverages, probiotics, healthy energy drinks, premium kids' beverages, ready-to-drink coffee and more.

 Discussion of companies with distinctive brands in each nascent and new segment. Companies/brands covered include: Aloe Gloe, Aquahydrate, Argo Tea, Arizona, Balance Water, Bulletproof Coffee, Califia Farms, Calypso Lemonade, Celsius, Cheribundi, Core Water, Essentia, GT's Living Foods, GoodBelly, Guayaki, Harmless Harvest, Health-Ade, High Brew, Hint Water, Humm Kombucha, Inko's, Karma Wellness Water, KonaRed, La Croix, Lifeway, Mamma Chia, MatchaBar, Neuro, Protein2O, Purity Organic, Q Tonic, Reed's, Rockstar, Sambazon, Soylent, Sparkling ICE, Suja, Sweet Leaf/Tradewinds, Vita Coco, Voss, VPX, Zevia, Zola Açaí and more.

 Our up and coming beverage companies market research analysts' take on the brands to watch in the various non-alcohol sectors and what they are doing to differentiate themselves as well as discussion of the strengths of various emerging brands and categories and the challenges they'll face going forward.

The Next Wave of Niche and Emerging Beverages December 2018

RESEARCH DATA CONSULTING

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Copyright  2018 Beverage Marketing Corporation of New York, 850 Third Avenue, New York, New York 10022, (212) 688-7640. All rights reserved. Reproductions in any form prohibited by law.

Contents

Table of Contents

The Next Wave of Niche and Emerging Beverages TABLE OF CONTENTS

TABLE OF CONTENTS ------i

INTRODUCTION ------ix

Chapter

1. EMERGING NON-ALCOHOLIC BEVERAGE SEGMENTS The Up-and-Coming Beverages ------1

2. THE NEXT WAVE OF NICHE AND EMERGING BEVERAGES HIGH-END WATER  Overview ------14  Sparkling ICE ------22  Core Water ------24  Voss ------25  Icelandic Glacial ------28  Essentia ------30  Aquahydrate ------32  Evamor ------33  Alkaline88 ------34  Waiakea Hawaiian Volcanic Water ------35  Hawaii Volcanic ------36  Kona Deep ------37  Sportwater ------38  Avitae ------39  BLK ------40  FulHum ------41  HFactor ------43  Unify Water ------43  Ounce Water ------44  OxiGen ------44  iDrink Multi-Vitamin Water ------45  Just Water ------46  Proud Source------47  Path Water ------48  Neo ------49 DAIRY-ALTERNATIVE BEVERAGES  Overview ------50  Califia Farms ------52  Ripple Foods ------55

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The Next Wave of Niche and Emerging Beverages TABLE OF CONTENTS

Chapter

2. THE NEXT WAVE OF NICHE AND EMERGING BEVERAGES (cont’d) DAIRY-ALTERNATIVE BEVERAGES (cont’d)  Oatly ------57  Malk ------58  Three Trees ------59  Milkadamia ------59  Mooala ------60  Elmhurst Milked ------60  Simpli Oat Smoothie ------61 PREMIUM SODAS  Overview ------62  Reed’s ------73  Boylan’s ------75  Jones Soda ------77  Hotlips ------79  Joia ------79  Maine Root ------80  Bruce Cost Ginger Ale ------81  Cheerwine ------83  Proper Soda ------83  Sipp ------84  Green Bee Soda ------85  Grown Up Soda (GuS) ------86  Zevia ------87  Dry Soda ------89  Bundaberg ------90  Original New York Seltzer ------91  Diabolo ------92  Salud Refresco ------93  Tractor Soda ------94  Afri Cola ------95  Crafted Sodas ------96  New Wave Soda ------96 UNIQUE JUICE BEVERAGES  Overview ------97  Purity Organic ------109  Calypso Lemonade ------111  Sambazon ------113  Zola Açaí ------115  KonaRed------116  Mamma Chia ------117 ii

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The Next Wave of Niche and Emerging Beverages TABLE OF CONTENTS

Chapter

2. THE NEXT WAVE OF NICHE AND EMERGING BEVERAGES (cont’d) UNIQUE JUICE BEVERAGES (cont’d)  Ralph & Charlie’s ------119  Cheribundi ------119  Seminole Pride ------120  New Tree Fruit Co. ------122  Cawston Press ------123  Natalie’s Orchid Island ------124  Shade Tree Lemonade ------125  Poppilu Antioxidant Lemonade ------126  Sol-Ti ------127  Smart Pressed Juice ------128  Bali Mangosteen Juice ------128  Makomas Juice ------129 ENHANCED WATER/SPORTS BEVERAGES  Overview ------131  Karma Wellness Water ------135  Coco5 ------136  WaNu ------137  Agua ------138  DripDrop ------139  Dyla Brands (Stur Liquid Water Enhancer) ------140  Greater Than ------141  Nooma ------142  Nuun ------143  SOS Hydration ------144  Liquid IV ------145  Berri Fit ------146 PREMIUM READY-TO-DRINK TEAS  Overview ------147  Arizona Iced Tea ------156  Argo Tea ------160  Sweet Leaf/Tradewinds ------162  Inko’s ------163  MatchaBar ------164  Joe Tea ------165  Milo’s Famous Sweet Tea ------166  Moonshine Sweet Tea ------168  Doc’s Tea ------169  Tao of Tea ------169  Bhakti Chai ------170 iii

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The Next Wave of Niche and Emerging Beverages TABLE OF CONTENTS

Chapter

2. THE NEXT WAVE OF NICHE AND EMERGING BEVERAGES (cont’d) PREMIUM READY-TO-DRINK TEAS (cont’d)  Dona Chai ------172  Motto ------172  Asi Yaupon Tea ------173  Sound Sparkling Tea ------174  Bruce Lee ------175  Seven Teas ------176  Evy ------177  Cham Cold-Brew Tea ------178  Cusa Powdered Tea ------179  Tea Drops ------180  Tiesta Tea ------181  Gratitude Dragon Well Tea ------182  Shaka Tea ------182  ChaiElixir ------183  Golden Brew Teas & Cider Vinegar Tonics ------183  TeaOnic ------184  Numi ------185  Zest Tea ------186  Alexander’s Real Tea ------186  Tea of a Kind ------187 PLANT-BASED WATERS  Overview ------188  Vita Coco ------194  Harmless Harvest ------197  C2O ------198  Obrigado Coconut Water ------199  Pure Brazilian Coconut Water ------200  Blue Monkey ------200  Waikoko ------201  Eliya Coconut Water ------201  CoAqua Coconut Water ------202  Buddha Brands ------203  Aloe Gloe ------204  DetoxWater ------205  TreTap ------206  Treo Birch Water ------207  True Nopal Cactus Water ------208  Pickle Juice ------209  Tsamma Watermelon/Sarah’s Homegrown ------210 iv

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The Next Wave of Niche and Emerging Beverages TABLE OF CONTENTS

Chapter

2. THE NEXT WAVE OF NICHE AND EMERGING BEVERAGES (cont’d) ESSENCE WATERS  Overview ------212  Hint Water ------215  La Croix/Cúrate ------217  Spindrift ------218  Balance Water ------219  Hal’s Seltzer------221  Blossom Water ------221 KOMBUCHA  Overview ------223  GT’s Kombucha ------229  Health-Ade ------230  Brew Dr Kombucha ------231  Live Kombucha ------233  Humm Kombucha ------234  Revive Kombucha------235  Buchi ------236  Rise Kombucha ------237  Mobtown ------238  Pok Pok Drinking Vinegar ------239  Fire Cider Tonics ------240  Cide Road Switchel ------240  Up Mountain Switchel ------241 PREMIUM MIXERS  Overview ------243  Q Tonic ------246  Distill Ventures/Seedlip ------248  Mocktails ------249  Ripe Craft Bar Juice ------249  Owl’s Brew ------250  East Imperial ------251  Frose (Kelvin Slush Co.) ------252  18.21 Bitters ------254  O.Vine ------254  Be Mixed ------255  Navy Hill ------256  Nectar Girl ------256  Arriba Chelada ------257

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Chapter

2. THE NEXT WAVE OF NICHE AND EMERGING BEVERAGES (cont’d) RTD PROTEIN DRINKS  Overview ------259  WheyUp/FitWhey ------263  Core Power ------264  Trimino Protein Infused Water ------265  Protein2O ------266  Organic Valley ------268  Slim-Fast ------270  B’More Skyr Smoothies ------271  Iconic ------272  Koia ------273  OWYN (Only What You Need) ------274  Apres ------275  Powerful Yogurt ------276  Click ------276  Fizzique ------277  Bear Squeeze ------278 FUNCTIONAL BEVERAGES  Overview ------279  Neuro ------284  Soylent ------285  Bulletproof Coffee ------287  Picnick ------288  Kitu ------289  Cave Shake ------289  FitAid ------290  Kill Cliff ------291  EBoost ------292  Just Chill ------293  SOS Hydration ------294  Hellowater ------295  Phocus ------296  Stay Cool ------297  GacLife ------297  Good Idea ------298  Qii Oral Care ------299  Eviva Collagen ------300  VitaCup ------300

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Chapter

2. THE NEXT WAVE OF NICHE AND EMERGING BEVERAGES (cont’d) MATE/GUAYUSA  Overview ------301  Guayaki ------303  Runa Guayusa ------305  Yerbae ------307 PROBIOTICS  Overview ------309  Lifeway ------312  GoodBelly ------313  Obi Probiotic Soda ------315  Living Apothecary------316  GoLive ------316  Thirty-Two Degrees ------317 HEALTHY ENERGY DRINKS  Overview ------318  Rockstar ------326  VPX/Redline/Bang ------328  C4 ------329  3D ------330  Outlaw ------331  Celsius ------333  Guru Energy ------335  Uptime ------336  Mossy Oak ------336  Bawls/Crunk!!! ------337  Marquis ------338  Shark Energy ------339  Sunshine Beverages ------339 HPP/CLEANSES  Overview ------340  Suja ------345  Forager ------347  Daily Greens ------348  Rebbl ------349  Dirty Lemon Detox Drinks ------351  Garden of Flavor ------352  Urban Remedy ------352  WTRMLN WTR ------353  Deluxe Honeydrop ------354  Rau Chocolate Cacao Superfood Drink ------356 vii

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Chapter

2. THE NEXT WAVE OF NICHE AND EMERGING BEVERAGES (cont’d) HPP/CLEANSES (cont’d)  Jus by Julie ------356  Lumi ------357  Tio Gazpacho ------357  Temple Turmeric ------358 READY-TO-DRINK COFFEE  Overview ------360  High Brew ------366  Heyday ------367  Kohana ------368  Cuvée Coffee ------369  La Colombe ------370  Secret Squirrel/Harris Tea ------371  Grady’s ------372  Lucky Jack ------373  Wandering Bear ------373  Joyride ------375  Rise Brewing ------376  Blackeye ------376  Black Medicine ------378  Crio Bru ------378  Red Thread ------379  Peloton ------380  Nomad ------381  Convergent ------382  Riff ------383  Jittery John’s ------384 PREMIUM KIDS’ BEVERAGES  Overview ------385  Drazil ------391  Rethink Kids Water ------392  Green Mustache ------393  Sneakz ------394  Good2Grow ------395  Star Wars Space Punch ------396  Juicy Juice ------397  AquaBall Naturally Flavored Water Drink------399  Giggle ------400  Tickle Water ------400  Planet Fuel ------401 viii

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Text Sample 1

Among other key features of the beverage landscape have been legislative initiatives to tax sodas and other sugar-sweetened beverages that, with some major wins in cities like Philadelphia and Berkeley, California, have galvanized soda lobbyist the American Beverage Association and its members to spend unprecedented amounts to beat them back.

 Meanwhile, corporate campuses have been opening up their beverage sets to new ideas, sometimes voted on by their employees, as the companies adopt health- and-wellness policies that definitely do not emphasize soda, highly sweetened teas and other traditional refreshers. And quick-serve and fast-food restaurant chains increasingly were looking to ease ingredients like high-fructose corn syrup (HFCS) out of their offerings, with chains like Panera and Chipotle Grill among the leaders in such efforts.

 Also on the regulatory side, the Food and Drug Administration may, or may not, be ready to start enforcing a new nutritional label that requires a breakout of the amount of added sugar, a prospect that already has prompted a stampede of reformulations. Some major companies have already proceeded to implement the new labels, without waiting for them to become mandatory.

 On the retail side, a growing number of mainstream retailers, seeing chains like Whole Foods and Sprouts Farmers Market developing an image as homes for innovative new brands, have decided to stop ceding that ground, and stepped up their efforts to make themselves more hospitable incubators for interesting new items.

 Thus, Walmart, Target, Safeway, Kroger and drug chains like CVS have been fostering programs that ease the entry of newer brands by bringing down the slotting, distribution and other barriers to such brands getting on their shelves, at least in limited, experimental sets. (Of course, if the brands don’t turn, these retailers sometimes prove to have short fuses on keeping them on their shelves.)

As accepting as the climate has become to healthier, more premium entries, this is not to say that beverages do not remain a brutally competitive business, even at the premium end that is emphasized in this report.

 There is a debate about how steep the cost of entry is. Successful serial entrepreneurs like Mike Repole (the Vitaminwater veteran now running BodyArmor) and Lance Collins (the Fuze veteran now running Core) like to say that if you don’t have tens of millions of dollars to bring to the table you may as well stay home, and their easy access to capital has enabled them to pursue expensive “landgrab” strategies that call for quick national rollouts, backed by expensive direct store distribution (DSD) and field marketing efforts.

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Text Sample 2

As for the categories of beverages, talk about a complete revolution in consumers’ purchasing habits is likely premature at this point. After all, some of the fastest-growing brands on the landscape over the past decade are far from offering any kind of claim to being a healthier option: Talking Rain’s Sparkling ICE (viewed by many in the business as diet soda cunningly disguised as bottled water); the sugar bomb that is Calypso Lemonade, and of course the leading energy drinks, really a new breed of more highly caffeinated sodas. And scores of healthier kids’ beverages have suffered the consequences of believing mothers’ protestations that they only want the best for their children, as consumers continue to default to brands like Capri Sun rather than pay the premium that the newer alternatives demand. These stories all seem to fight what consumers tell pollsters they are seeking these days in terms of healthy ingredients and the like.

 It seems, at least in a few cases, it is enough to offer a good-tasting, approachably priced and zero-calorie drink to capture the consumers who are in play now that they are moving away from more conventional choices like diet soft drinks. (That seems to account for much of the appeal of Bai, with its claim of being only five calories per serving.)

 In fact, if there is a secret sauce behind the explosive growth of Talking Rain, it may be simply that, in terms of formulation, it is really nothing more than a traditional diet soft drink — thoroughly disguised by its straight-walled plastic bottle and its positioning as a flavored spring water.

 To go back to the giant CSD category, it is no secret that consumers are turning away from them in droves (although it must be emphasized that the fast-growing energy drink segment really comprises CSDs in another guise.) In the past couple of years, however, a full-fledged sugar panic seems to have taken hold among many consumers, who are suddenly scrutinizing ingredient labels for sugar content and sometimes turning away even from healthier-positioned brands like craft sodas and cold-pressed juices after discovering the high levels of sugar they often contain. That has prompted a rethinking by many of those brands of their recipes — in extreme cases, it has led to a brand like fruit-based Spindrift fleeing the category entirely and reinventing itself as an unsweetened sparkling water.

 In fact, the biggest breakout category of the past year would have to be sparkling water, riding the success not just of National Beverage’s La Croix but inspiring marketers in a range of other categories, from coconut water to tea, to offer sparkling versions of their brands, in the view that the palate rewards of fizz may coax consumers into accepting brands that are lower in sugar than what consumers have been used to consuming.

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