Taste Radio Insider

This episode features an interview with Sisun Lee, the co-founder and CEO of More Labs, a next-generation maker of functional beverages best known for hangover relief supplement Morning Recovery. Launched in 2017 via an Indiegogo campaign, the brand was an instant hit; Morning Recovery pulled in $3 million in revenue in its first six months on the market.

Early success powered an $8 million Series A round -- based on a $33 million valuation -- in 2018 and new distribution at retailers like 7-Eleven and Urban Outfitters. In an interview with BevNET’s John Craven and Mike Schneider, Lee discussed the factors and strategic decisions that led to Morning Recovery’s rapid development, and how More Labs is attempting to create a platform for functional products.

Show notes:

1:16: Live from Live -- On location in New York City, the hosts discussed highlights from day one of BevNET Live Summer 2019 and the preceding NOSH Live conference, including the New Beverage Showdown along with presentations and stage talks with vitaminwater/BodyArmor co-founder Mike Repole, Presence Marketing founder Bill Weiland, Caluipower founder/CEO Gail Becker and Whole Foods Market co-founder Walter Robb.

13:17: Interview: Sisun Lee, Co-Founder/CEO, More Labs -- In an interview recorded at More Labs headquarters, Lee spoke about how his background in tech and the influence of Korean culture played into the creation of Morning Recovery. He also discussed how a popular funding campaign on Indiegogo and a widely read article about the brand catapulted sales just a few months after its initial launch. Later, Lee spoke about the value of qualitative data and intuition as the company grew, how it sources consumer feedback and incorporates into its innovation strategy and why high-quality, minimalist content attracts more interest than communicating the science behind product.

Brands in this episode: Vitaminwater, BodyArmor, Caulipower, Beckon Ice Cream, More Labs

Before teaRIOT established a multi-channel retail footprint that stretches across the U.S., and before its acceptance into the Chobani Incubator program, and before its recent $3 million Series A funding round, co-founders Laura and Steve Jakobsen were simply focused on building a brand.

“What does [teaRIOT] look like?,” Laura asked in an interview included in this episode. “How does it stand out on shelf? What are our consumers saying? How do we need to change it from the inside of the bottle to the outside of the bottle? We just stayed nimble for two years and made changes in our foundation to really tighten everything up.”

Throughout the process, teaRIOT, a brand of organic tea-based energy drinks, leaned heavily on social media to better understand its consumers and how they interacted with the brand and its products.

“[We] not only use social media to publish outward but also to listen and to interact and engage. We always focus on what consumers are doing with our product. If you look at our [Instagram content], it really portrays the vitality of the brand. But in some pictures we don’t even have the product. It’s really about how people are living, being energized on tea.”

That approach has been particularly effective on Instagram, where teaRIOT has gained over 121,000 followers since its launch in 2015.

As part of our interview, Laura and Steve expounded upon their approach to brand building and shared their perspective on the keys to a successful social marketing strategy. They also discussed their experience in the Chobani Incubator and lessons from the program, and explained why teaRIOT’s investors must also be consumers of the brand.

Show notes:

1:16: Cassava… On The Cusp -- Just a few days away from NOSH and BevNET Live Summer 2019, the hosts reflected on the New Beverage Showdown 17 competition, munched on cassava-based snacks, sipped on a few innovative new beverages and shared a few recommendations for eating and drinking in New York City.

16:35: Interview: Laura and Steve Jakobsen, Co-Founders, teaRIOT -- In an interview at teaRIOT headquarters in Venice, Calif., BevNET’s Mike Schneider spoke with Laura and Steve and engaged in a deep dive into teaRIOT’s branding, marketing and social media strategies. As part of our conversation, Laura explained her perspective that “influencers are kind of dead” and why brands should focus on aligning with “real, authentic people in your community.” They also discussed why it’s important to partner with investors whose lifestyles fit with that of the brand, and how their experience in the Chobani Incubator helped reinvigorate their passion for entrepreneurship and the brand.

In this week’s episode of Taste Radio Insider, we’re joined by Josh Zloof, the co-founder and CEO of Sudden Coffee, an innovative brand of specialty instant coffee. Founded in 2015, Sudden is attempting to revolutionize the $40 billion market for instant coffee by emphasizing its proprietary production process and by focusing on “scalable hospitality.”

As part of our conversation, Zloof spoke about Sudden’s mission of using an instant product to democratize access to speciality coffee and why it was designed to be “Grandma proof.” He also explained how the company has zeroed in on Gen X as its key consumer demographic, discussed the challenges of managing both manufacturing -- Sudden operates its own production facility -- and marketing as a small company, and why he believes that the product attributes of Sudden are more important that the brand itself.

Show notes:

1:42: A Few Sips of “Mud Water,” Canned Wine and Candy Milk — You know it’s a special episode of Taste Radio Insider when the host gulp Snickers-flavored chocolate milk and wash it down with chai and wine. There’s also discussion about people stealing John Craven’s Instagram photos, the emergence of the canned wine segment, how Abbot Kinney Blvd. in Venice, Calif. is the epicenter of food and beverage innovation, and why it’s a no-brainer for entrepreneurs seeking investment to attend BevNET Live and/or NOSH Live.

13:40: Interview: Josh Zloof, Co-Founder/CEO, Sudden Coffee -- Zloof was visiting from San Francisco to attend the 2019 Specialty Coffee Expo and stopped by BevNET HQ to record an interview with Taste Radio editor/producer Ray Latif.  Zloof spoke about the origins of the company and how prior jobs in supply chain logistics and hospitality fueled his interest in coffee. He also discussed how speciality coffee roasters including Intelligentsia have supported its development and reshaped its business model, how Sudden is attempting to create experiential moments for its customers, and why the long-term vision is about “branding the process.”

Brands in this episode: Snickers, Twix, MUD/WTR, Cha Cha Matcha, Four Sigmatic, Besa Mi Vino, Lila Wines, Oskar Blues, Sudden Coffee, Taster’s Choice, Folgers, Intelligentsia,  Starbucks, Equator Coffee, Ritual Coffee, Spark Coffee, Keurig, Dunkin’

In this episode, we sit down with Darren Marshall and Ravi Kroesen, the CEO and Head Teamaker, respectively, of specialty tea company Smith Teamaker for a discussion exploring how a small company can influence an entire industry.

Portland, Ore.-based Smith Teamaker was founded in 2009 by  Steven Smith, a legendary figure in the tea world best known as the creator of Tazo. The company is renowned for its expertise in blending and commitment to high quality sourcing, as well as its contribution in defining world standards for the tea industry.

In our interview, Marshall and Kroesen discussed how Smith Teamaker has continued to grow based on the principles of “craft, creativity and origin” laid down by its founder, who died in 2015. They also explore how the company has continued to drive innovation  despite its relatively small size.

“As a small business, we have not only an opportunity but an obligation to push the envelope and to create things that others might not have the ability to do,” Marshall said.

As part of our conversation, Marshall and Kroesen spoke about their unique career paths to Smith and their roles as stewards of its founder’s legacy. The pair also explained why the company is taking a patient approach to growth and why becoming a billion-dollar brand is not in their plans.

Show notes:

1:18: The Watertown Cooler -- The hosts chatted about a steady stream of visitors to BevNET HQ over the past week, including those from the founders of Nitro Beverage Co. and Rind Snacks. They also shared their thoughts on a new flask-bottled cocktail mixer brand and recalled a time when BevNET’s “product cave” looked very different than it does today.

14:35: Interview: Darren Marshall, CEO & Ravi Kroesen, Head Teamaker, Smith Teamaker -- In an interview recorded at the 2019 Speciality Coffee Association Expo, Marshall and Kroesen discussed their respective career paths to Smith Teamaker, along with the origins of the company and its mission. They also spoke about the current state of the tea industry, how Smith attempts to differentiate itself and why they look “outside the tea world for a lot of inspiration.” Later, they explained the company’s approach to consumer education and what trends they see as guiding the future of the industry.

Brands in this episode: Smith Teamaker, Nitro Beverage Co., Rind Snacks, Food Should Taste Good, Tazo, Proposition Cocktail

When assessing funding opportunities for early- and mid-stage companies, First Beverage Group, an investment and advisory firm that works with and invests in brands across the beverage spectrum, has a category-first mindset.

First Beverage believes that “the tail winds of a strong category -- no what that dynamic might be -- can always help a business as it’s starting to get off the ground early,” according to vice president Joe Angiuli, who, along with managing partner Jack Belsito and managing director Bob Nakasone, joined us for an interview included in this episode. That approach has guided the firm as it has made investments in fast-growing brands, including Essentia, Health-Ade Kombucha and Q Drinks.

As part of our conversation, the trio spoke about the about the First Beverage’s portfolio and investment philosophy and how they evaluate synergies with entrepreneurial brands. They also discussed the current funding environment for the food and beverage industry, which categories might be best suited to weather a potential downturn, and why CBD is not the only cannabis-based ingredient that’s caught the attention of First Beverage.

Show notes:

1:18: The New Way To ‘Gram Your Pepsi Lime — It’s a brave new world out there: PepsiCo is putting lime juice in its flagship cola and perfect Instagram posts are a thing of the past. The hosts break it all down in the opening minutes of the episode.

8:39: Jack Belsito, Bob Nakasone & Joe Angiuli, First Beverage Group — In an interview recorded at Expo West 2019, Taste Radio editor Ray Latif spoke with Belsito, Nakasone and Angiuli about their backgrounds and roles with First Beverage and discussed how the firm’s mission has shaped its portfolio. They also explained why they value entrepreneurs that are “coachable,” and why they believe the energy category will continue to grow and evolve. Later, they spoke about the firm’s perspective on CBD and THC, what growth stage First Beverage usually invests in a brand and what entrepreneurs shouldn’t say in a pitch meeting.

Brands in this episode: Pepsi, KeVita, Health-Ade, Essentia, Q Drinks, Project Juice, Repsly, Gem&Bolt, Laws Whisky House, VitaCup

You might have put time, money, blood, sweat and tears into building your brand, but at the end of the day it doesn’t belong to you.

That’s the perspective of Christian Krogstad and Thomas Mooney, the co-founders of Westward Whiskey, which helped establish the rapidly growing American single-malt whiskey category. As part of a wide-ranging conversation included in this episode, Krogstad and Mooney explained that consumers, via their palates and wallets, are Westward’s true owners.

“We share a belief that it’s Westward, not either of us, that should be famous,” Mooney said. “And that we want our whiskey to do the talking. Ultimately, brands belong to the people who enjoy them, not to the people who make the products.”

Originally founded as House Spirits Distillery in 2004, Westward was one of several brands in a broad portfolio that included Aviation Gin -- since acquired by actor Ryan Reynolds -- and others. Following an investment from Distill Ventures, the venture capital arm of beer and spirits conglomerate Diageo, in 2018, the Portland, Ore.-based company shifted its primary focus to Westward, a single-malt whiskey that draws inspiration from Oregon’s deep-rooted craft beer culture.

As part of our conversation, Krogstad and Mooney spoke about Westward’s origins and explained why it was important for them to develop a personal relationship prior to formalizing their professional one. They also discussed the company’s alignment with Distill Ventures and how they determined it was the right partner, what the notion of a “better whiskey” means to them and why compelling innovation means giving people something they “never realized they wanted.”

Show notes:

1:46: John at Kon, DragNet & a Whole Lotta Protein -- John and Mike returned to the studio after a week away from the office and discussed their trips to L.A. and Vermont, respectively. John also spoke about his experience at KombuchaKon, an annual trade show focused on the business of kombucha, where he presented on a panel and sampled a wide variety of products, including one from Iceland. He also explained the concern among KombuchaKon attendees in how some brands are marketing and promoting their products. Later, the hosts bantered about the development of the market for CBD in L.A. and chatted about a few notable products that came into the office over the past week.

19:25: Christian Krogstad/Thomas Mooney, Co-Founders, Westward Whiskey -- Krogstad and Mooney joined Taste Radio editor Ray Latif for an interview recorded at the Westward Whiskey distillery in Portland, Ore. Krogstad spoke about his background in craft brewing and how it led to him to launch a distillery and Mooney discussed how his experience with CPG conglomerates provided him with both a foundation and thirst for entrepreneurship. Later, they explained why partnership with a strategic investor has long been part of the company’s business strategy and how they developed a relationship with Distill Ventures long before its investment in Westward. They also spoke about Westward’s “beer-philic” approach to distilling and why a limited marketing budget means that they “can never be complacent in product development.”

Brands in this episode: Nutty Steph's, Alchemist Beer, Kombucha Iceland, GT’s Living Foods, Brew Dr. Kombucha, Humm Kombucha, Boochcraft, Dosist, Cha Cha Matcha, Smashpack, Muscle Milk, OWYN, Smarties, Protes, Lemon Perfect, Westward Whiskey, McMenamins, Fiji Water

August Vega is a “go big or go home” kind of entrepreneur.

The founder and CEO of MALK, a super-premium brand of organic nut milks, Vega cut her teeth in the beverage business selling her wares at farmers markets in Houston. From the outset, Vega had lofty ambitions: she wanted to develop MALK into a billion-dollar brand.

“I believe that we are in control of our own destiny, and why shoot for a low bar?” she said in an interview included in this episode. “It is a high bar… but we’re seeing a pretty big evolution in the plant-based space, not just from a dairy perspective, but in meats -- it’s everywhere. And I think there’s potential.”

Since launching the brand in 2014, Vega has maintained that focus and made strides toward her goal. MALK is sold nationally at Whole Foods and carried at a variety of mainstream grocers and mass retailers, including HEB and Target.

In an interview included in this episode, Vega spoke about the origins of MALK and why she envisioned it as a billion-dollar brand from the outset. She also explained why data has been critical to the company’s development and the variety of ways it sources sales information and consumer feedback. Vega also discussed how MALK considers innovation and investment and talked about how she navigated the company through a particularly challenging period.

Show notes:

1:09: Steeped in Specialty Coffee -- The hosts kicked off the episode with a discussion about innovative and interesting coffee brands featured at the recently held Specialty Coffee Association Expo. Among notable brands viewed at the annual trade show, hosted in Boston from April 11-14, were Steeped, a maker of bagged coffee grounds, and Elemental Beverage Co., a manufacturer of commercial appliances that chill fresh-brewed coffee in 60 seconds. The hosts also chatted about the latest issue of BevNET Magazine, which includes feature articles on the premium water category, powder beverages and craft beer as well as a comprehensive listing of functional beverages marketed in the U.S.

14:59: Interview: August Vega, Founder/CEO, MALK -- Recorded at Natural Products Expo West 2019, Vega spoke about the coincidental ties between MALK and a fictional brand featured in “The Simpsons” and how dairy allergies in her family and dissatisfaction with nut milk brands led her to create MALK. She also explained why MALK doesn’t use the word “milk” on packaging or marketing, why data drives much of its business and innovation strategy and why Boulder Food Group is the right investment partner for the company. Later, she discussed the controversy surrounding MALK’s use of high pressure processing as a safety step and how she addressed concerns about the products, and what she views at the near future for the brand.

Brands in this episode: MALK, Steeped Coffee, Sudden Coffee, Blume, Roasterie, Atomic Coffee Roasters, Izzy CBD, Elemental Beverage Co., Essentia, Core, C4

As the saying goes, “a picture is worth a thousand words." When evaluating investment opportunities, Chris Hollod, a venture capitalist focused on early-stage consumer brands, takes the adage to heart.

“I tell every brand: ‘I judge you within the first two seconds of looking at your Instagram page,’” he said in an interview included in this episode. “I think it’s the most important piece of the puzzle aside from the actual packaging itself.”

That perspective has helped shape Hollod’s portfolio, which includes stakes in a number of lifestyle brands, including Matchabar, Dirty Lemon, Know Foods and Recess, among others.

Listen to our full interview with Hollod, who spoke in depth about his investment philosophy, how he identifies bleeding edge trends and categories, and what an examination of “signal to noise ratio” can reveal about a brand’s prospects.

Show notes:

1:28: Receptors, Randy's and Roscoe's -- Early into the episode, Mike pops some CBD mints to (hopefully) address a few ailments, and the hosts discuss the difference between early-stage venture capitalists and angel investors. Later, they imbibe on some non-alcoholic beer from London (it’s pretty tasty stuff) and chat about why it makes sense for successful and sometimes wealthy entrepreneurs to seek outside capital for a new company. Last, but not least, Ray expresses his love/hate relationship with donuts.

14:14: Interview: Chris Hollod, Founder/Managing Partner, Hollod Holdings -- In an interview recorded in Los Angeles, BevNET’s John Craven and Mike Schneider spoke with Hollod about his background and investment philosophy and why digital strategy is at the top of his list when evaluating brands. He also explained why he believes that his job requires him to not only to follow and facilitate innovation but to predict it.

Brands in this episode: Pur 7, Lucent Botanicals, Black Medicine Coffee, Infinite Session, O’ Doul’s, Founder’s Brewing, Spudsy, Buff Bake, Kane’s Donuts, Union Square Donuts, Voodoo Doughnut, Dunkin, Randy’s Donuts, Roscoe’s, Recess, Dirty Lemon, Matchabar, Know Foods, JuneShine, Blue Bottle Coffee, Four Sigmatic, Tenzo Tea, MUD\WTR, Verb Energy

In this episode, we examine brand-building and retail strategies for center store grocery in interviews with the founders of two category-leading brands: Katlin Smith, the founder and CEO of fast-growing baking mix brand Simple Mills, and David Eben, the founder of Carrington Farms, a leading brand of organic seeds, grains and oils.

Smith is the founder and CEO of Simple Mills, a brand of natural baking mixes, crackers and cookies, that she launched in 2013. Over the past six years, Simple Mills has become one of the leading natural brands in the spaces in which it plays. Its products are distributed in over 13,000 conventional and natural grocery stores including Whole Foods, Sprouts, Target, Kroger and Safeway. Smith was named to the Forbes 30 Under 30 Class of 2017 and based on what you’ll hear in our interview, it’s easy to understand why. Smith spoke about the origins of Simple Mills, how she assessed the opportunity for a better-for-you baking mix brand, what her first year was like and her definition of entrepreneurial commitment.

Carrington Farms,  a leading brand of organic seeds and cooking ingredients, actually started out as a tea company. Founder and CEO David Eben discussed the brand’s evolution and how its portfolio has grown over the years. Entrepreneurs would be advised to take note of David’s advice on working with retail buyers and why it has been and continues to be a key part of the company’s business and innovation strategies.

Show notes:

1:34: New Kids on the Block -- The hosts chatted about new team members at BevNET HQ including those in marketing, sales and with our NOSH vertical. They also riffed on a bunch of new products sent to the office this week and how some are advancing the categories that they participate in.

16:51: Interview: Katlin Smith, Founder/CEO, Simple Mills -- In an interview recorded at Natural Products Expo West 2019, Smith spoke with BevNET CMO Mike Schneider about her background in management consulting and how it played into the development of Simple Mills. She also discussed the day-to-day grind of her first year in business and how she stayed motivated, how she learned to most effectively present and communicate to investors, retailers and consumers and explained why leadership is about being "willing to change.”

34:09: Interview: David Eben, Founder/CEO, Carrington Farms -- Also recorded at Expo West 2019, Eben spoke with Taste Radio Editor/Producer Ray Latif about Carrington Farms’ evolution from a tea manufacturer to a stable brand for natural and organic ingredients. Eben also discussed the importance of retail buyer relationship, why product development is an “up and down” process that involves both suppliers and retailers, how a crispy quinoa puff was reborn as a crouton, and how to stay relevant with consumers. Finally, he spoke about the company’s charitable arm, Carrington Cares.

Brands in this episode: Nick’s Sticks, Vital Proteins, Spudsy, Recipe 33, Pizootz, Ugly Drinks, Banzo Bites, Rachel’s Overnight Oats, Simple Mills, Carrington Farms

Bend, the small, yet fast-growing city in Central Oregon, has become a haven for entrepreneurship.

Although the local economy had been driven by the lumber industry for over a century, Bend has in recent years seen an influx of innovative companies -- from tech to food and beverage -- launched within its borders. According the office of Oregon’s Secretary of State, Bend registers more new businesses each year than any other city in the state.

Entrepreneurs often point to the Bend lifestyle, which is steeped in outdoor sports, snow activities and craft beer, as part of the city’s appeal and why a variety of business and consumer publications have ranked Bend as one of the best small cities to live and work in the U.S.

In a recent visit to Bend, we met with a few of its food and beverage entrepreneurs and community leaders to learn more about the reasons behind its emergence as a business capital on the West Coast.

Note: a few of our interviews were re-recorded via phone due to an unfortunate loss of the original audio, hence a slight variation in sound quality.

Show notes:

1:24: Sweetening You Up With... Shots? -- The hosts tested out a product called Nature’s Wild Berry, which claims to make “anything sour, tart or acidic taste extremely sweet” after chewing on it 30 seconds. They also discussed the deluge of new functional shots coming to market and what brands are doing to stand out.

10:34: The Business of Bend -- We explored the city’s evolution as a hub for entrepreneurship in a series of interviews with founders of several Bend-based food and beverage companies, including Picky Bars, Humm Kombucha, Riff Cold Brewed, Deschutes Brewery and Jem Organics.

Brands in this episode: Vital Proteins, Fermenting Fairy, Bibi Beverages, BrainGear, Sol-ti,  Vybes, Picky Bars, Humm Kombucha, Riff Cold Brewed, Deschutes Brewery, Jem Organics