The Best Functional Brands Always Get This Right

October 29, 2021
Hosted by:
  • Ray Latif
     • BevNET
In this episode, Taste Radio’s hosts discussed the significance of great taste for functional products, a highly effective way for entrepreneurs to get their brands in the hands of industry gatekeepers and debated on whether the rise of RTD cocktails will impact the premium mixer segment. We also feature interviews focused on trends and innovation with Bonnie Shah, the VP of marketing and innovation for L.A. Libations and Sunanda Patel, the founder and CEO of TumiBee.
In this episode, Taste Radio’s hosts discussed the significance of great taste for functional products, a highly effective way for entrepreneurs to get their brands in the hands of industry gatekeepers and debated on whether the rise of RTD cocktails will impact the premium mixer segment. We also feature short interviews focused on trends and innovation with Bonnie Shah, the VP of marketing and innovation for Molson Coors-backed incubator and accelerator L.A. Libations, and Sunanda Patel, the founder and CEO of TumiBee, an upstart brand of Ayurvedic beverage mixes. 

In this Episode

0:53: We’re So Psyched About This Banter -- The episode opened with Ray sharing his thoughts about our return to live events and how a recent tweet sparked a conversation about functional products and, along with it, WD-40, riffed on the appropriate texture for dried fruit and encouraged listeners to share their brands with us at BevNET and NOSH Live. The hosts also congratulated Vita Coco co-founder/CEO Mike Kirban on the company’s recent IPO, got revved up about newly launched gin, relaxed about a kava-infused water and rational regarding a new non-alcoholic beer brand.
24:06: Bonnie Shah, VP Marketing and Innovation, L.A. Libations -- Shah sat down with Taste Radio editor Ray Latif at Natural Products Expo East 2021 where she spoke about her role with L.A. Libations (LAL), a beverage creator, incubator and accelerator that is minority owned by the Molson Coors Beverage Co. She also discussed LAL’s recently launched So-Cal Incubation Program, nicknamed SIP, the company’s retail partnerships and efforts to drive awareness and sales for emerging brands, her perspective on beverage innovation, functional ingredient trends and how direct-to-consumer sales fit into the firm’s business model.
39:20: Interview: Sunanda Patel, Founder & CEO, TumiBee -- Patel joined Latif for a conversation, also recorded at Expo East, about the creation of TumiBee, an upstart brand of turmeric-based beverage mixes and her experience launching the brand amid the Covid pandemic. She also spoke about TumiBee’s formidable DTC business, the company’s social marketing and consumer education strategies and how she evaluated and adjusted her pricing strategy.

Also Mentioned

5-hour Energy, TCHO, Alta, Chooza, Teaonic, Vita Coco, Abbot’s Butcher, BetterBrand, AVEC, Q Drinks, Engine Gin, Stillhouse, Psychedelic Water, Leilo, Rationale Brewing, Chika Chika Boom Boom, Agua Bonita, ZOA Energy, ZENWTR, Red Bull, Monster Energy, Arriba, Brightfox, Athletic Brewing Co., Mingle Mocktails, Shaka Tea, NUUN, Halo Sport, Orro, TumiBee

Episode Transcript

Note: Transcripts are automatically generated and may contain inaccuracies and spelling errors.

[00:00:10] Ray Latif: Hey everyone, thanks for tuning in to another episode of Taste Radio, the number one podcast for the food and beverage industry. I'm Ray Latif, the editor and producer of Taste Radio, and I'm with my BevNET and Nosh colleagues, John Craven, Jacqui Brugliera, and Mike Schneider. In this episode, we feature interviews with Bonnie Shah, the VP of Marketing and Innovation for beverage incubator LA Libations and Sunanda Patel, who's the founder and CEO of Tumi Bee, a brand of Ayurvedic beverage mixes. Just a reminder, if you like what you hear on Taste Radio, please share the podcast with friends and colleagues. And of course, we would love it if you could review us on the Apple Podcasts app or your listening platform of choice. Well, you know, I know we talked about BevNetLive and NoshLive and BurbandLive a lot on the podcast, but it's getting, it's getting real real. Like we're like, what, five weeks away as of this publication date? I mean, we're, we're getting pretty close. And I'm, I for one, I'm getting a little nervous. I don't know why.

[00:01:10] Taste Radio: Why are you nervous?

[00:01:11] Ray Latif: I don't know. Probably because we haven't done this in two years. It's like riding a bike, right? You'll get the hang of it. Yeah. It's good to be nervous though for some of these things. I get nervous before getting on stage for any of this stuff. And I feel like if I'm not nervous, then there's something wrong. Then I'm not fully prepared. Although Kobe Bryant, God bless Kobe Bryant, rest in peace. He did say, he did one of these, what do they call those pump up speeches? Or like, what do they call that Jackie?

[00:01:36] Taste Radio: Pre-game speech?

[00:01:38] Ray Latif: He did a pre-game speech for this college basketball team once. And I remember one thing he said was that you shouldn't be nervous. Being nervous only means you're unprepared. If you're prepared, there's no reason to be nervous. So, take that for what it's worth. Jackie, I bet you gave a pre-game speech or two.

[00:01:55] Taste Radio: Yeah, I've given a number of pre-game speeches. Half the time, I just black out off of adrenaline, though. So, I don't really remember what I said, but it got everyone ramped up, so it worked.

[00:02:06] Ray Latif: Jack is very, very good at motivating the team. John Craven, you never seem nervous. Thanks, Frank. You said that kind of nervously, though.

[00:02:16] Taste Radio: Nerves of steel.

[00:02:17] Ray Latif: Putting me on the spot. Yeah. Well, I'm going to put you on the spot again, because you have been very Loquacious is the wrong word. You've been very active on Twitter of late. And I noticed a tweet of yours recently that said, please don't add functionality to your products. That's going to seriously impact its enjoyment factor. I think there's going to be many, many likes on that one, because I think it's one of the truest statements About This food and beverage industry, which is that functionality and bad flavor don't mix anymore. It just doesn't work unless your name is 5-Hour Energy. No offense to 5-Hour Energy, I think they know their product doesn't taste very good, but it is what it is, you know? I don't know if I would take a dig directly at them.

[00:03:00] Bonnie Shah: Well, I don't think it's fair.

[00:03:02] Ray Latif: Look, Manoj Bhargava, who was the founder and CEO of 5-Hour or Living Essentials and maker of 5-Hour Energy, I'm sure he would say the exact same thing. In fact... Can I add a disclaimer that that opinion is solely Ray Latif's? to right now. And not that of BevNET. Thank you. True story. True story. I remember we were at a NAC show, I think it was 2012. And John, you interviewed Manoj at the show. And he compared, not flavor-wise, but he compared Fiber Energy to WD-40. True story. And the reason he compared his WD-40 is because he's like, we have no competitors. We are the energy shot. Just like WD-40 is WD-40. You know, there's no category. Has anybody besides me accidentally tasted WD-40? I think I did when I was a kid. Yeah.

[00:03:57] Taste Radio: Not me.

[00:03:58] Ray Latif: Blames a lot, Mike. I knew that was coming. Yeah. What else is there to say? Getting back to my original point, I feel like, you know, there are so many great functional products these days or products with added function that taste great, taste even better, I think, than you would expect out of a functional product or would you come to expect that of a functional product? And again, you know, I was thinking About This and I challenged you guys or I asked you guys to think About This as well. And, you know, looking back at my Instagram accounts and just things that I recall as posting and being, wow, this is really tasty. A few things came to mind and a few products actually have with me. This brand, Alta, which makes these sesame bites, these tahini bites actually, they call them tahini bites, made with full spectrum hemp extract. I've talked to the founder About This. I'm like, if you didn't even have any hemp in this, I would buy this daily, because it's so darn tasty. DNS. What's that? DNS, exactly. By the way, we should explain what DNS means, because I think you guys post that, you and John. I like getting the DMs about, hey, what's DNS? What does that mean? Explain it, Mike, for the audience who doesn't know what DNS stands for. Does not suck.

[00:05:18] Taste Radio: But there's so much more behind that.

[00:05:21] Ray Latif: It doesn't suck, for sure. Because the opposite is S, so. DS, I believe.

[00:05:28] Taste Radio: DS does suck.

[00:05:30] Ray Latif: DS, yeah. So if you ever get a DS on your product posted by Mike or Kramer, that's a bad thing. Never, never give a product the S. There's other ratings too, like the hmm, and the, you know, and the hmm.

[00:05:43] Taste Radio: The fire emoji.

[00:05:45] Ray Latif: There's also the TFS, which I can't explain on here. We'll have to beep some expletives. CFD, so many little acronyms out there, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD, CFD Ah, does that have a functional benefit? No functionality, just great taste. Also, what's really nice is on the back, there is no nutrition panel. So you can just indulge and not worry about anything. It's perfect. What does that have to do with the topic at hand? You were talking about some tasty square and you also were talking about my tweets. So I'm just following up with the tasty chocolate. Okay, okay, well. Have you had these, Ray? What's that? Have you had these, Chooza? I haven't. I saw you post that on Instagram. What are they, spicy pineapple jerky? Is that what it is? I don't think it says the word jerky on here. I think it's just dried fruit with spices on it. But calling it dried fruit with spices on it, it's like calling an apple pie. Yeah, it's a pastry with some apples inside it. That's what I called it. It says spicy pineapple. It does not say dried fruit with spices on it. That stuff is next level. I mean, the spices just overtake you immediately and then you just bite it and there's like this sugary goodness. Those are crazy. They do look really good. I love dried pineapple. There's not enough dried pineapple out there. Trader Joe's used to make a good one, but it's too dry. You ever get dried fruit and it's too dry? I don't like that.

[00:07:38] Taste Radio: Yeah. Yeah, you can't even chew it. Too much chew.

[00:07:42] Ray Latif: Yeah. You're basically choking. You can't chew because you're choking. It scratches your throat. It's not good. It's not good. Some products just kind of show up in the office and I don't know how they got there. It's almost like they teleported into the office or like parachuted in. And Choose is one of those. It just showed up one day and there was like one pack and it was already opened because somebody else got to it before I did. And I was like, whoa, that's how we discover things sometimes around here. We need more Chooza. This whole show has taken a turn that I just didn't expect. I'm going to try to get it back on the road for a second. We're going to talk more about Choo in a sec, but I just want to point out one more brand that I really think has done well with added functionality and flavor, making a great tasting product that you wouldn't even know has a functional benefit unless you're buying it specifically for that, and that's Teyonic. Ionic is a maker of herbal tea tonics. They have a number of varieties that are specific to a particular function. The one I'm holding in my hand is specific to body health. It's called I Love My Body. It's made with cacao, cinnamon, and vanilla on its own. cow cinnamon and vanilla in a single Beverage Co a winner. So to add functional benefits, to add a functional attribute, to add functional ingredients to it. Wow. It's really amazing.

[00:09:01] Taste Radio: I think they're like one of the best at just, you know, communicating the function too. A lot of times, you know, brands are saying, Oh, it is functional or, you know, this is better for you. But as far as like this Beverage Co for this specific use case, I think they communicate that well, it's large and proud on the, on the package.

[00:09:21] Ray Latif: Absolutely. And when you turn it around, I mean, you see all the ingredients and they're all plant-based ingredients that, well, folks in our industry we might know about. And, you know, I think the general consumer or the consumer of this brand would know about as well. Things like hibiscus flower, rooibos, holy basil leaf, nettle root, nettle leaf. Again, well done, Teonic, in terms of the topic that I was trying to get everyone to talk about.

[00:09:48] Taste Radio: I think also with flavor, I think there's like some really like strong go-to flavors that are functional, like ginger or hibiscus. And I think using those as like your champions, and then you can throw in like additional app adaptogens that might not have like a super strong flavor, but leading with this really strong flavors that are known and tasty, I think works well.

[00:10:12] Ray Latif: I would just like to point out that I was holding a yuzu ginger rose chocolate bar. The ginger. Right, it's functional.

[00:10:22] Taste Radio: Functional.

[00:10:23] Ray Latif: There you go. And cacao has antioxidants too, so. Yuzu, vitamin C. I was not derailing your talk, Ray. Thank you for that. Now in the podcast, we're always talking About This that we're munching on and drinking, whether it be in the office or at home. But one place we're all collectively going to be sipping and drinking and munching is BevNET Live and Nosh Live registered attendees. Always bring the goods, the samples with them. At BevNET Live, they're on our coolers. At Nosh Live, they're on our sample tabletops. And I'm really excited to try a lot of these products. If you want to share your products with us and with the food and beverage community that will be attending the events, well, register. It's very easy to do so. Head to BevNET.com slash events. And you will have an easy way to get your tickets. Note, as I mentioned at the top of the show, we're only about five weeks away. You want to get them sooner than later.

[00:11:26] Taste Radio: Yeah. And another reason to get them sooner than later is because the deadline for sampling is November 17th. So to get access to that application to sample at the event, you must register before then. So check it out.

[00:11:40] Ray Latif: Jackie with the save. See, I didn't even know that. Thank you, Jackie. I was just like, oh yeah, you can bring them in, you know, just bring in your own little hand cart full of products. No, you can't do that. You have to register to sample products. I was going to tell my pizza oven over to the lowest. John's Pizza. I think there's already a John's Pizza out there. What would you call your pizza company? I know what it would call. DNS Pizza. There you go. I mean, I hope it's DNS. It's got a DNS though. Yeah. Yeah. Pizza and Negronis.

[00:12:13] Taste Radio: Perfect.

[00:12:14] Ray Latif: Well, you have a lot of people that can help you with your first food company there, John, or maybe even your first Beverage Co. The person I'm thinking of is a very successful entrepreneur. It's Mike Kirban. Mike Kirban, as we know, is one of the co-founders and the CEO Vita Coco, which just IPO'd. They just had their initial public offering, which sounds like it was pretty successful. Congratulations to Mike and the team Vita Coco. although I hope that business reporters didn't pronounce the name of the company as Vita Coco. People still say that to me. People are like, oh yeah, I bought a bottle of coconut water, I bought a container of coconut water the other day. I'm like, oh, what kind did you buy? Like Vita Coco. No, Vita, Vita Coco. Vita. Teva, Teva, as long as you buy the sandals. As long as you buy the, oh, the Teva, I don't, no. I'm like still wearing those right now. It's like on my first pair. Well, I mean, this is a long time coming for Vitacoco. John, you've known Mike for a really long time. And obviously there were rumors about potential acquisition by the PepsiCo company. I think that was about three years ago. The company's grown to such a size About This point that it's a publicly traded company now. You know, pretty remarkable stuff. I think when you are talking about brands from inception to IPO, this is what this is really one of those amazing success stories. Definitely. And I mean, I think it's a company that, as you said, seen from its inception. And I think it's really awesome to see an IPO sort of says, Hey, we're sticking around for a little while. We're not just trying to sell this thing and exit. And, you know, I think they've done a little bit of, uh, their own acquisitions and be fun to see them continue to grow as, you know, a leading independent Beverage Co. So I think that, you know, will be good for the whole industry too. Absolutely. Well, in other funding news, a bunch of entrepreneurial companies picked up capital over the past week, or at least their capital was announced over this past week. BebNet and Nosh reported on fundraisers by plant-based meat maker Abbott's Butcher, which pulled in $7 million. Better Brand, which is a maker of low-carb bagels, closed in a $2.5 million round. And premium drink mixer Avec, That's A-V-E-C, close to a $1.2 million pre-seed round. Congratulations to the founders of all those companies. Read all about how they raised their funds and who from on BevNET and Nosh. Thanks, Ray. You really put the fun in fundraising. Appreciate that, Mike. That joke number one, and hopefully that joke only number one of this episode. You know, speaking of mixers, we had covered the premium mixer space quite a bit, you know, a few years back, I think less so these days. And I wonder, you know, how much this emergence of ready to drink cocktails will affect premium mixer brands, because if you don't necessarily, I mean, one of the reasons you were buying the mixers is because these premium mixers is because you wanted a high quality cocktail, you know, relatively easily, very conveniently. Now you have these, ready to drink cocktails that are premium. They are high quality and you don't need to mix anything. Yeah, but that's kind of a different use occasion, right? I think it's more of the, you know, this sort of idea of, I don't have any clue how to make a cocktail, so I will buy an RTD cocktail or I don't have time to make a cocktail sort of thing. And I think people who make cocktails are always going to be looking for some kind of mixer.

[00:16:03] Taste Radio: And I think there's also like the middle ground of mock tales. So people are still looking to drink less alcohol. So I think that presents another opportunity for the mixer set to be relevant to a whole like better for you audience. I think it also depends on like, you know, mixers as a whole are really broad, right? I mean, you could call something like tonic water, a mixer. And then you've got the other end of the spectrum.

[00:16:27] Ray Latif: That's like, you know, stuff that was like, I remember it was like a cosmopolitan mix that just add the booze, you know? And I think stuff like that probably is more vulnerable as opposed to something like a Q tonic. Like people are still gonna want tonic water. Like, you know, as Mike said, like, If you are making a cocktail from scratch, what are you going to do? No one's making their own tonic water. Well, probably somebody is, but most people don't. But I think what you're talking About This impact is, I would guess that that's not truly a short-term thing either. That really depends on where this whole category and trend goes. I think it's going to be a little while before we'll see that. Agreed. But we will see a lot of these brands that are participating in this category. at the RTD Cocktail Showdown, BevNET's Cocktail Showdown that is coming up as part of BevNET Live in December. If you are listening and you happen to represent or are the founder of a ready-to-drink cocktail, sign up for the competition at our website. That website is BevNET.com. Very easy, very easy stuff. John, you mentioned tonics. Would you ever make a gin and tonic with this stuff? This is Engine Gin.

[00:17:44] Taste Radio: Oh, wow.

[00:17:45] Ray Latif: Yeah, packaging. Why do you think that you didn't get any more of these? Oh, right. You probably stole it off my desk. No, no. Engine Gin is an organic gin. If you're not watching the video here, it is packaged in an oil can, like an old-school oil can. It's a steel can with a steel cap. It actually looks like an oil. It looks like an oil brand. It's painted blue on the bottom, and then there's white at the top, and then there's a line of red in the middle. The logo, Engine Gin also at the top of the can. You know, it's striking. It's a striking package. We've actually seen this before. We've seen this before in the spirits business via a whiskey brand called Stillhouse. Stillhouse spirit company markets whiskey in these oil cans or these old style oil cans. Also acquired by Bacardi. So it's got a track record of success. But yeah, that one, that one's got a little more of a European style that you were holding that array. I mean, don't, don't put that in your, uh, your motorcycle. That is the exact way somebody accidentally tastes WD-40 right there. Blurring the lines of containers and the next thing you know, you're drinking WD-40. I can see it now in the Boston Globe front page story. DevNet CMO Mike Schneider rushed to the hospital. No, it's DevNet CMO Mike Schneider poisons himself again. There's nothing like really unique packaging to disrupt a shelf and disrupt a shelf this will. So well done. Speaking of other interesting products that have come across my desk or sent to me or that I swiped off of John Craven's desk is a brand called Psychedelic Water. Have you guys seen this stuff? Yeah. I don't know what to make of this yet. Is it THC?

[00:19:47] Taste Radio: Jackie, you haven't seen it yet?

[00:19:48] Ray Latif: No, I think it's just adaptogens, right? Yeah, well, it's described as an herbal supplement. Mild, mood-boosting, psychedelic blend crafted to loosen you up. And just to set your senses, there's kava in it, kava kava root extract. Yeah, that makes sense. There's a Damiana leaf extract, there's green tea extract. So with the kava, and I believe the Damiana, you're getting some of that calming effect. And with the green tea, you're getting 75 milligrams of caffeine. Yeah, but guys, the word Psychedelic Water magic, ask Jackie what they mean.

[00:20:21] Taste Radio: Yeah, no, I'm thinking I'm going on a trip when I drink that.

[00:20:24] Ray Latif: Yep. All right, I'm going to give this a whirl. This is the hibiscus lime variety.

[00:20:31] Taste Radio: Oh, he's going on a trip. There he goes. We lost him.

[00:20:35] Ray Latif: Um, it's good. The monk's fruit and the erythritol are really prominent.

[00:20:40] Taste Radio: Do you, uh, have you consumed kava before?

[00:20:43] Ray Latif: Yes. It's going to make me calm. I think. I was going to say, you might want to slow down there if not. Well, I had two small sips, but yeah, kava is a functional ingredient that hasn't really taken hold in packaged food and Beverage Co far as I know, or as far as I've seen. There are a couple of brands. There's another one out there right now called Layla. I feel like the majority of the ones that we saw were back in sort of the time period of relaxation drinks, which she's, I don't know, that was certainly over a decade ago, maybe 2007 or eight, something like that.

[00:21:19] Taste Radio: And, you know, a little after, but Kava, Kava had a little bit of a, it's moment there too. Yeah. In San Diego, I'm seeing it more. Um, there's like tap rooms for Kava. So you can go and drink Kava on tap in a beverage.

[00:21:34] Ray Latif: Really?

[00:21:35] Taste Radio: Mm-hmm. There's one right now on the street for me.

[00:21:37] Ray Latif: Yeah, those have been around for a while. That's not like, not, not a totally a new thing, but yeah. Or anything flies in SoCal, I guess. You know, it's a, it's a SoCal thing, I guess. Cause, uh, yeah, I've never heard or seen anything like that, but then again, you know, it is ground zero for really innovative ingredients and people that consume those innovative ingredients. So speaking of which, stay tuned, folks, because we have an outstanding interview with Kabir Jain, who's the chief growth officer of Erawan, coming to Taste Brad Avery soon. It's a great one, so be sure to tune in.

[00:22:20] Taste Radio: So we had a brand stop by yesterday into the office, and they have a new non-elk beer. It's called Ration Ale. So the whole concept of you're always trying to rationalize whether you should have another beer or not, and they're really catering to the craft beer market. So with the branding, they're putting on the fronts, which you aren't seeing a lot with no elk. or low out 0.5% alcohol, which a lot of non elk actually has 0.5. They just don't disclose that. So they're just being really upfront and intentional. And another fun fact, it's only 85 calories for this one beer and it's a hazy IPA. So usually you'd think, you know, you're going to be super bloated, About This actually was pretty light. It's pretty juicy. Um, and they're coming out with a bunch of different skews. So this is their first, um, hazy IPA and they're just, just launching.

[00:23:15] Ray Latif: What do you think of the idea of rationale? Because the other thing I got out of it is that you got to ration it. You don't want to drink it all at once. So that's probably not what they want.

[00:23:26] Taste Radio: Yeah. And I think just looking at the name on Google, it's not something that they can really own. That's going to be hard to own. Yeah. Yeah. It's so hard to own. You can't own that word. Yeah. I think that's the first thing you see, whereas the actual SKU is really tiny on the label.

[00:23:45] Ray Latif: I still want to try it. Well, if Rationale participates in the Brubant Pitch Slam, I'm sure they're going to get some great advice and feedback from the judging panel About This that they need to do to be successful in that business. I'm looking forward to it. I'm looking forward to hosting that competition as well. So exciting stuff ahead.

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[00:24:52] Ray Latif: All right, it's time to get to our featured interviews for this episode, beginning with Bonnie Shah, who, as I mentioned at the top of the show, is the VP of Marketing and Innovation for LA Libations. A Beverage Co, incubator, and accelerator specializing in emerging brands, LA Libations is minority-owned by the Molson Coors Beverage Co and is a key advisor to the beer conglomerate as it expands its non-alcoholic portfolio. The firm recently launched its So-Cal Incubation, nicknamed SIP, in which affiliated brands are stocked and sold in special coolers at retailers including Sprouts, Whole Foods, and Bristol Farms. In the following conversation, which was recorded at Natural Products Expo East 2021, Bonnie spoke about LA Libation's retail partnerships and efforts to drive awareness and sales for emerging brands, Her perspective on beverage innovation, functional ingredient trends, and how direct to consumer sales fit into the firm's business model. All right, it's Ray Latif back here in downtown Philadelphia for Natural Products Expo East. And right now I'm sitting down with Bonnie Shah, who's the VP of Marketing and Innovation for LA Libations.

[00:26:07] Sunanda Patel: Good morning, everybody. And good morning, BevNET team. Thanks for having me. Hello, Ray.

[00:26:12] Ray Latif: Hello, Bonnie. So chipper on this crisp Philadelphia Monday.

[00:26:18] Sunanda Patel: At 830 in the morning before the show even starts, Ray. No, I'm kidding.

[00:26:23] Ray Latif: You know, I appreciate you coming out here and doing this because this is a good venue. Like, I think people will probably have seen my Instagram account and seen this little courtyard that we're at with these stone tables and benches. And it's nice because- It's very nice. Yeah. I mean, we don't have to mask inside and stuff and feel very comfortable and other people could feel uncomfortable around us. But I'm most happy because I have an opportunity to sit down with you. It's been a while.

[00:26:47] Sunanda Patel: It has. Thanks for having me. Last time was at the Showdown. And then I think the last time I sat down with you was at BevNET Live in New York.

[00:26:55] Ray Latif: Yes.

[00:26:56] Sunanda Patel: How many years ago?

[00:26:56] Ray Latif: It was 2019.

[00:26:57] Sunanda Patel: Oh my goodness.

[00:26:58] Ray Latif: Yeah. So yeah, you were a judge for our New Beverage Showdown in June of 2021, which was awesome.

[00:27:04] Sunanda Patel: Thank you so much again for doing that. It was so fun.

[00:27:06] Ray Latif: Yeah, you're really good at that.

[00:27:08] Sunanda Patel: Yeah. You're just being nice. No, but I've still kept in touch with most of the brands. Chika Chika Boom Boom was walking around here. Hopefully they'll be coming and working with LA Libation soon. Agua Bonita is working with the winner of the competition. Yeah, they're working with the SIP team as well. So it was just a lot of fun getting to know all these brands.

[00:27:28] Ray Latif: Awesome. You mentioned the SIP team and I want to get into that in a second. You've been with the company LA Libations for four years. Yeah. Just as a refresher, can you explain what you guys do at LA Libations and then what your role is with the company?

[00:27:41] Sunanda Patel: Sure. So LA Libations is a real partner for emerging brands. We have a lot of different business units within our company. So I would say our main one is we work with emerging brands to help get them in retail across the country. Before they're ready for a national distribution and sales and some of those big box retailers, we have So-Cal Incubation program called SIP. And that stands for So-Cal Incubation. And that program partners with real emerging startup beverage brands that are looking to kind of prove their concept in a market. So we partner with these brands and we get them into distribution, usually partnering with Unify and Kahee, and then some local distributors, sometimes even Molson Coors distributors, and we get them into the natural channel retail in LA. So you're looking at the Irwans, Whole Foods, we have that Sprouts program, our Sprouts innovation coolers, or displays, I should say. And then also working with Bristol, Gelson's, Lassen's, Lazy Acres, and some of those real influential accounts up and down the street in LA.

[00:28:45] Ray Latif: Not a lot of partnerships you guys have. I don't know why anyone wants to work with you.

[00:28:48] Sunanda Patel: Yeah. And then outside of the sales front, we have Relentless Trade and Merchandising. So those guys, they're a team of, I think, about 30 now that are up and down the coast merchandising in store. We call them our sharks. They're killer. And then most recently been also spinning off our marketing department to provide outside marketing services.

[00:29:11] Ray Latif: Very cool. There's a cool name for that new marketing company.

[00:29:13] Sunanda Patel: There is a way to pull that out. It is called L.A. Vibrations.

[00:29:16] Ray Latif: L.A. Vibrations.

[00:29:18] Sunanda Patel: I love it. Yeah. So we're scaling that up. We're now a team of eight in-house marketing team helping to build the brands that we're partnering with Molson and our house brands as well as our partner brands.

[00:29:30] Ray Latif: Yeah, Molson Coors is an important partner of LA Libations, obviously. That relationship began last year?

[00:29:37] Sunanda Patel: It officially began at the end of 2019 in December, but we really kicked it off in 2020 of January.

[00:29:43] Ray Latif: Yeah, and it's been really amazing to see some of the brands that have scaled and grown via that partnership, most notably ZOA.

[00:29:54] Sunanda Patel: Yeah, the company partnered with ZOA to bring them to Molson Coors-backed to set them up within their distribution network. Same kind of partnership came with Zenwater.

[00:30:05] Ray Latif: I just had some Zen water the other day. So good. It goes down really easy. I don't know if that's kind of a weird thing to say for water.

[00:30:10] Sunanda Patel: I guess it's just, it goes down with a good conscience. Okay. Coming from a plastic bottle.

[00:30:15] Ray Latif: Yeah, I wasn't thinking about it that way. I was just thinking About This viscosity.

[00:30:18] Sunanda Patel: That's what it is, right? That's what it is. It's the good conscience.

[00:30:20] Ray Latif: Okay. So, co-founded by The Rock.

[00:30:24] Sunanda Patel: The Rock, Dwayne Johnson.

[00:30:25] Ray Latif: Yeah. I mean, it's amazing to see how fast that brand is growing because there's a lot of new energy drinks that come out every year. And a lot of them are like, hey, we're going to take on Red Bull and Monster and all these other, you know, energy drink giants. But ZOA actually seems like it's got a shot.

[00:30:41] Sunanda Patel: Oh, absolutely. I mean, it's watching the team and kind of everybody around try to keep up with the momentum of that brand. It's definitely not So-Cal Incubation model for that one. It's straight to big box and big box wants to go bigger. And Dwayne Johnson talks about it and he's really passionate About This project. So it really comes through. And about a month ago, we took it to the Kroger Wellness Festival. And really, I think that was one of the first consumer facing moments for the brand. And it was just on fire. We had a a big cutout of Dwayne Johnson for a photo op. People loved it. It was great.

[00:31:16] Ray Latif: The rock next to the rock?

[00:31:17] Sunanda Patel: Absolutely.

[00:31:17] Ray Latif: Yeah. Now from big, gigantic beverage plays to ones that you were talking about earlier, emerging beverage plays. When you say the word emerging, do you mean early stage or do you mean disruptive?

[00:31:31] Sunanda Patel: Well, at LA Libations, we do both. So we work on emerging brands, which I kind of call our house brands. These are brands that have probably proven concept already in a market, maybe with one retailer, and then they're starting to scale, they're ready to go national or another region. And then we have disruptive brands. And that's really what we are working with on Molson with our pilots. So we partnered to create a few brands a year with them, and then also finding disruptive brands, finding categories that have been sleepy. Ariba, our michelada brand, has had a lot of success incubating in the California Hispanic markets, was able to pop over into Whole Foods, and now the brand is being distributed on Molson Coors trucks in Texas.

[00:32:16] Ray Latif: Wow.

[00:32:16] Sunanda Patel: Yeah, so it's disruptive and growing.

[00:32:19] Ray Latif: So what are the brands that you've currently partnered with or that you've been partnered with for a while versus the brands that you are working with in terms of your relationship with Molson Coors?

[00:32:28] Sunanda Patel: So hopefully everything overlaps. Hopefully Molson Coors is really passionate About This things that we work on as well. Some of our partner brands we've been able to bring into the Molson Coors distribution network, not just the big Zoas and Zenwater, but also in the incubation program, looking at scaling some of those brands. Bright Fox, we were able to put into Beauchamp distribution. Our national sales team works with Athletic Brewing Co.

[00:32:54] Ray Latif: Very cool. The non-alcoholic beer brand that's killing it.

[00:32:58] Sunanda Patel: Oh my gosh, they're amazing. And also in the non-alcoholic space, LA Vibrations has recently partnered with Mingle Mocktails with the wonderful Laura Taylor, incredible entrepreneur. Shaka Tea has been a wonderful brand. They've been with us working with our merchandising team since 2019, working with Bella and Harrison. And now they're working with LA Vibrations as well. So we've been doing some field marketing programs with them, helping them with their SoCal presence. We did a three-month field South Bay takeover program. We had billboards, sampling. We really were watching as sales were growing on that brand. And then the sales team has just been killing it. They're actually going to be making an entrance into Publix.

[00:33:40] Ray Latif: Wow. Yeah. You were a judge in the New Bedward Showdown, and I've been hosting the New Bedward Showdown for many years, and we're always looking for innovative concepts. And I feel like it's harder and harder to define innovation. It's harder and harder to really identify something as being really different, really innovative, especially nowadays when I think there's a limited, there's like a limited pool of ideas, really. So how do you guys look at certain concepts and say, wow, that's innovative? What really stands out for you?

[00:34:13] Sunanda Patel: I think ingredients, the less ingredients, the better.

[00:34:17] Ray Latif: Okay.

[00:34:17] Sunanda Patel: I mean, you don't want those fillers. You don't want artificial ingredients. So that's, that's a given. I feel like these days you got to take out all of those bad words like high fructose corn syrup and food coloring. I'm always really impressed when people can make a really delicious beverage that's zero calories. So I would say ingredient front, sweetening front, and then functionality is really interesting too. I think it's really easy to overcomplicate functionality. So it's really taking people's favorite beverages and innovating on how to make those better for you, how to keep them delicious and provide some benefits to it.

[00:34:53] Ray Latif: What are the benefits that are really standing out these days? I mean, we've heard everything from keto to brain health to relaxation. What are the functional trends that you're seeing now that have staying power, obviously not just for one year, but five years, 10 years down the road?

[00:35:10] Sunanda Patel: That is a hefty question. Dairy milks are being really innovative lately. It's really interesting to watch different kinds of alternatives coming onto the market. Functionality, I think everybody's trying to get more vitamin D in their system. Interesting way to get more vitamins. I love seeing brands like Nunn, N-U-N-N-U-N. Yeah, exactly. And more of these powder brands, electrolytes. I feel like a lot of that's moving away from isotonic Beverage Co people wanting to just put these packets into their own waters and kind of taking control of that process.

[00:35:50] Ray Latif: So portable functionality in conjunction with benefits and you're able to, I guess. determine what you need and when in a really convenient way.

[00:36:02] Sunanda Patel: Absolutely. I saw that Halo Sport have moved to also creating these powders. And another thing is, I think a lot of this is poised to support D2C. Right. I think a lot of people are going online and purchasing their Beverage Co it's been really important for us to also be able to spice up our e-comm capabilities.

[00:36:23] Ray Latif: Yeah, I mean, it's interesting you mentioned that because so much of what you do is at the retail level. And everyone talks about how important the direct-to-consumer part of a business needs to be these days. But it's heavy to ship beverages.

[00:36:37] Sunanda Patel: It is, it is.

[00:36:37] Ray Latif: You know, and your margins are probably razor thin in some cases, if at all, if you're making money at all on DTC. So it seems like... The powders, the tablets, those kinds of things have a much better chance of being a profitable business down the line.

[00:36:53] Sunanda Patel: Yeah, or you just really need to have that functional need that people are willing to buy it online. Our brand Oro, which is a plant-based mini meal, is a vegan product. It's a vegan meal replacement with essential vitamins and minerals. And that brand has been seeing a lot of success online also because we partnered with Miss Tabitha Brown. She's a wonderful partner and a lot of her presence is online. And a lot of people look to her for food choices because she herself is vegan. And we've really seen, compared to some of our other brands, just that need. But you'd be surprised by how many people are really open to pay for that convenience of the Beverage Co to their house.

[00:37:37] Ray Latif: I wouldn't be too, too surprised, but I think the scalable opportunity is still at retail, right?

[00:37:44] Sunanda Patel: Absolutely. Yeah. Yeah. Meeting the consumers where they are, for sure.

[00:37:47] Ray Latif: Yeah.

[00:37:47] Sunanda Patel: Especially for innovation.

[00:37:49] Ray Latif: There's people that are going to be listening to this and say, hey, I have an innovative brand and I would love for L.A. Libations to look it over and see if it's a fit within their portfolio or fit with whatever they're doing. How do they approach you guys?

[00:38:03] Sunanda Patel: You can email me at Bonnie Shah L.A. Libations dot com. That is B-O-N-N-I-E.

[00:38:10] Ray Latif: Easy enough.

[00:38:11] Sunanda Patel: Yeah, absolutely. We love to talk to entrepreneurs. We really pride ourselves in speaking to everybody on the market. I think that is what makes us really great retail partners and always here to help bounce off some ideas. We also have our own innovation pipeline. So we're really upfront about, oh, we're working on one of those. high five and maybe chat after you come onto the market. Good luck. But still, I mean, there's so much opportunity. Always happy to chat. But we love working with entrepreneurs. And sometimes maybe we can point them in the direction of a co-packer or, hey, what if you were to add this ingredient? Or what if you were to take that off? Or, you know, from a marketing perspective, is that too many ingredients? Is that too many functions? How are you going to communicate your hierarchy and messaging? And what are you really about? Always happy to help massage out some ideas with entrepreneurs.

[00:39:02] Ray Latif: That's so awesome to hear. I hear from entrepreneurs that sometimes they're just lost or lonely or both and it's tough and you need partners and you need people to lean on. And I'm so great to hear that you guys are offering some help because it's a tough business. I've never been a beverage entrepreneur, but I keep hearing from folks that it's a tough game. But just like you guys, we're here to help too at BevNET. And I guess the combined power of LLA Bations and BevNET, we're going to help you in any way we can.

[00:39:29] Sunanda Patel: Absolutely. There's so many resources out there. You guys have the BevNET School.

[00:39:33] Ray Latif: Yes.

[00:39:33] Sunanda Patel: I mean, I feel like you guys are all incredibly available and open and make wonderful contacts and connections for people.

[00:39:40] Ray Latif: We try.

[00:39:40] Sunanda Patel: Yeah, you do. And you succeed very well. Thank you very much.

[00:39:43] Ray Latif: Bonnie, early in the morning, sometimes I need a good boost of energy and you brought it to me today. So thank you so much.

[00:39:48] Sunanda Patel: Winning.

[00:39:49] Ray Latif: I really appreciate it. Winning indeed. Really appreciate it. I'm so glad that we get to meet in person. Like I said, it's been a while. Hopefully, we'll get to meet again in December at BebNet Live in Santa Monica.

[00:39:59] Sunanda Patel: We'll be there. You know it.

[00:40:00] Ray Latif: Fantastic. All right. Until then, thank you so much once again.

[00:40:03] Sunanda Patel: Awesome. Thank you so much for having me.

[00:40:04] Ray Latif: Right on.

[00:40:05] Bonnie Shah: Do you want more repeat buyers on Amazon? Well, this free resource in collaboration with Straight Up Growth will help your brand turn first-time buyers into long-term subscribers. Download Winning the Repeat Purchase Game on Amazon now at Taste Radio slash SUG. That's Taste Radio slash S-U-G to start building retention-driven growth for your brand on Amazon. Scaling a beverage brand into major retail comes down to operational readiness. From packaging lead times to co-manufacturing strategy, the details can make or break a launch. In a new ebook in collaboration with Octopi and Asahi Beer USA, industry leaders share what they've learned in helping brands scale. Download it now at Taste Radio slash octopi.

[00:40:55] Ray Latif: Our next interview is with Sunanda Patel, the founder and CEO of 2MeBe, an upstart brand of turmeric-based beverage mixes. In our conversation, also recorded at Expo East, Sananda spoke about her experience launching the brand amid the COVID pandemic, 2MeBe's formidable DTC business, the company's social marketing and consumer education strategies, and how she has evaluated and adjusted her pricing strategy. Hey folks, it's Ray with Taste Radio. I'm back here in downtown Philadelphia for Natural Products Expo East 2021. And standing with me is Sunanda Patel, who is the founder and CEO of Tumi Bee. Sananda, how are you?

[00:41:37] So Psyched: Good. Doing well.

[00:41:39] Ray Latif: Great. Great to see you. Tumi Bee is spelled T-U-M-I-B-E-E, which I think the two things I think about when I hear that name is turmeric and honey.

[00:41:50] So Psyched: You got it. That's exactly what it is.

[00:41:53] Ray Latif: Okay. Yeah. I mean, tell us about what you sell. I mean, what is the Natural Products that you sell?

[00:41:58] So Psyched: So Tumib is a turmeric and honey. I would think of it as a milk base for a golden milk. It's ayurvedic. It's got adaptogens in it, such as tulsi, which helps with stress and anxiety over time. And obviously turmeric, which helps with everything.

[00:42:17] Ray Latif: Indeed it does. I wish I had some turmeric right now. Maybe I'll have some to me after this interview. You know, when I'm thinking about a brand like yours, the first thing that comes to mind is, okay, how do you sell it? Where does it sit on a store shelf? Is most of your business e-comm? So, you know, what has been your go-to-market strategy? What has been your retail strategy to date?

[00:42:37] So Psyched: Cumiebee actually launched during COVID last year. So I went completely online. So we are in several online stores, but we have more of a direct to customer following. And that's where we're selling right now. Soon to be on Amazon.

[00:42:54] Ray Latif: Okay. How do you get customers to know who you are and go to your website to buy your products? I think that's a question that a lot of people will answer with hey, we'll just be on social media and we'll do it that way. But how effective is that? And actually, I mean, I'm answering for you. What is your way to build awareness and sales for your brand?

[00:43:17] So Psyched: It's ongoing, like it keeps changing. But I started off trying on Facebook, Twitter, we found the most benefit from Instagram. And now we're on TikTok. But we had to, I had to do more of a niche following. So it's great for a post-workout drink, right? So we would do campaigns on just post-workout. And then we would do immunity during the fall season. So build up your immunity before the flu season starts, COVID season starts. We're still learning, but it's all about just concentrating on a group of people and then following up with them.

[00:43:59] Ray Latif: How much of what you do has to be about education and use occasion? Because when people consume turmeric, typically all consume turmeric via a juice drink or a juice shot, sometimes via tea. How do you talk to consumers about how they should use your product and when they should use it? I know you mentioned golden milk as a base of golden milk, but golden milk isn't necessarily something that you'll drink all the time or, you know, is it, and you mentioned post-workout, but is it also for breakfast, for lunch?

[00:44:28] So Psyched: It's funny, I try not to always Shauna Golden milk because you can actually put it in your coffee, you can put it in your oatmeal, you can put it in your smoothies. And the education piece... I like to inform people so that they know the difference on how turmeric is actually absorbed. Most people know that you need black pepper with turmeric, but they don't know that you need fat for it to actually get absorbed into the cellular wall. And most people think black pepper is what helps with the absorption, but that's what actually activates the turmeric. The compounds in black pepper activate turmeric, and you need the fat to be absorbed. teaching my customers that helps to set us apart from a turmeric capsule or, you know, a chalky... Turmeric powder, there's many of those, you know, golden milk type powders. We're big on clean eating. So one thing is we won't use anything like a milk powder that you'll see in other golden milks, because I don't know if you know, but milk powder is a sprayed on milk that's scraped, and there's no nutritional value left. There may be a little bit, but barely, and it's highly processed. So really talking about health in its most natural form, healthiest form, is kind of where we get our customers really their interest and attention.

[00:45:56] Ray Latif: How much does your product cost and what have you learned about pricing to date?

[00:46:01] So Psyched: The big one is $49.99.

[00:46:02] Ray Latif: And how many ounces is that?

[00:46:04] So Psyched: It's about eight ounces.

[00:46:06] Ray Latif: Okay.

[00:46:07] So Psyched: And the mini is five ounces and it's $24.99. But if you follow our Instagram, we're always giving out promos for like 10%, 20% off.

[00:46:18] Ray Latif: And was that always the price point or, you know, are you learning from customers what the appropriate pricing model is for your products?

[00:46:26] So Psyched: So I started off lower because I wanted it to be more of a mass product. But the cost of our ingredients are high because we use everything premium. I'm super picky About This details. If it's single origin, if they're lab tested, if it's raw, honey, etc. So we actually had to increase the cost. buy a few. And we find that the folks that are really interested in health love our product. So it's helping us get to more of a niche group.

[00:47:00] Ray Latif: A lot of folks in your position who are selling direct-to-consumer, who are relatively new to the business, dream about getting into natural retailers like Whole Foods or Sprouts or the Fresh Market or Erewhon. Have you had those conversations with retail buyers yet? And if not, what are you hoping to convey if folks from those retailers are listening to this interview?

[00:47:22] So Psyched: So we are not in talks with them yet. What I would say is if you're looking for a very authentic product with very clean ingredients, and that's actually bioavailable because our product has the fat and the black pepper already in it. So even if you were just to eat it, you're getting this.

[00:47:44] Ray Latif: Spoonfuls of it.

[00:47:45] So Psyched: Spoonfuls of it. but it's more bioavailable. So if you're, I would tell those companies, if you're looking for something that actually works and is actually going to help your customer, this is the kind of product you want to be looking at. Because if you're taking a capsule, if you're just drinking some kind of powder, your customer is not getting the full benefit of turmeric.

[00:48:08] Ray Latif: Again, relatively new to the business, I'm sure there are some things that have been more challenging than others. What's been the biggest hurdle that you've had to overcome to get your business off the ground and grow from launch?

[00:48:19] So Psyched: Just one? Well, funny enough, I didn't come from this industry at all. I've wanted to be an entrepreneur, but I come from the IT world. So I didn't know anything about food or how to label it, what are all the licenses and requirements. So that was pretty challenging the first year to figure it all out and make sure it's done right.

[00:48:45] Ray Latif: What's next for the brand? I mean, what are you trying to get to next? Is it retail? Is it investment capital? What are you trying to do and, you know, who do you need to help you get there?

[00:48:56] So Psyched: So now because we focus on online so much, we want to get now onto the shelf. So we need help with getting in with distributors and buyers so that they can actually, once they taste it, they love it. I don't even ask when I get reviews. I don't ask for them or say, say this, like people write things and I'm shocked. It makes me super happy when I get those reviews. But what's next is definitely retail on the shelf. We have more flavors coming. that are linked with like a new function. So this one's vitality. The next one's going to be relaxation, etc.

[00:49:35] Ray Latif: Xananda, it's been so great speaking with you. I see you're wearing a 2MeBe t-shirt. Perhaps the swag you should have brought were umbrellas because it is now just about to rain. It's just about to start really pouring here in Philadelphia. But I appreciate you standing with me here outside. It's been great speaking with you and I'm excited for the future of your brand. Stay in touch and let us know how things are going. We'd love to know the future of 2MeBe.

[00:49:59] So Psyched: Thank you and thanks for letting us showcase our product.

[00:50:03] Ray Latif: Appreciate it. That brings us to the end of this episode of Taste Radio. Thank you so much for listening, and thanks to our guests, Bonnie Shah and Sunanda Patel. As always, for questions, comments, ideas for future podcasts, please send us an email to ask at Taste Radio. On behalf of the entire Taste Radio team, thank you for listening, and we'll talk to you next time.

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