Starting 2 Different Billion Dollar Drink Brands (Four Loko and Koia) | Chris Hunter
May 14, 2024
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Listen to Chris Hunter, who started two different billion-dollar drink brands, discuss the challenges and successes of launching beverage brands, handling FDA rulings, utilizing NetSuite for financial management, managing costs, expanding product offerings, and the decision to write a book for positive impact.
Successful founders expanded offerings with product innovation in alcoholic beverages
Pivoting quickly and adapting to changing market landscape is crucial for success
Investment in plant-based protein drink brand aligns with personal shift to healthier options
Strategic vision in plant-based beverage space driven by personal affinity, market trends, and customer needs
Deep dives
Product Diversification Strategy
The founders of a successful brand used their product innovation skill to expand their offerings by creating a range of new alcoholic beverages that catered to different segments, including alcoholic teas and margarita-flavored drinks. They strategically leveraged their existing distribution network to penetrate new channels and capture market share.
Challenges in Introducing New Products
While the founders successfully launched multiple new products, such as plant-based protein drinks and unique alcoholic beverages like push pops and margarita flavors, some ventures faced challenges due to market saturation and timing. The ability to pivot quickly and adapt to the changing landscape was crucial for success.
Transition to Plant-Based Innovation
After parting ways with his previous company, the individual invested in a plant-based protein drink brand called Raw Nature 5, signaling a personal shift towards healthier food and beverage options. This investment opportunity laid the foundation for his future involvement in the plant-based innovation space.
Discovery of Koya Opportunity
The introduction to Koya, a dairy-free, plant-based protein drink, aligned with the rising trend of plant-based lifestyle choices and nutritional preferences. The founder's personal commitment to dairy-free living, along with market observations of emerging plant-based movements, led to the strategic investment and eventual leadership role within Koya.
Strategic Vision and Market Insight
The founder's decision to join and lead Koya was fueled by a blend of personal affinity for the product, market potential, and a keen eye for emerging trends in plant-based consumption. The ability to recognize customer needs, align with personal values, and leverage existing market dynamics underpinned the strategic vision for success in the plant-based beverage space.
Approach to Investing in Brands and Products
The speaker discusses the importance of investing in products or brands that they understand and resonate with them personally. They use the example of investing in a THC beverage brand, Drippy, due to changing trends like the rise of alternatives to alcohol. The key criteria for launching a brand included understanding the product and having a strong proposition, as well as securing support from distributors and a launch partner.
Challenges Faced During Launch and Market Distribution
During the launch of the brand, challenges such as spoilage of the initial production run necessitated quick troubleshooting and re-creation of the product. Overcoming hurdles like missed launch dates and ensuring product placement required proactive efforts, including hiring merchandisers and demo companies for product sampling. The speaker highlighted the significance of securing strong distributor connections for successful market distribution.
Expansion Strategies and Lessons Learned
The podcast delves into expansion strategies, including targeting different retailers based on category performance and scaling the product through strategic partnerships. The speaker shared insights into launching at national retailers like Whole Foods and transitioning to conventional retailers like Giant Eagle. Emphasizing the importance of product visibility and consumer trial, the discussion highlighted experiences with in-store demos and sales performance across various retail channels.
