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Pair of UK entrepreneurs looking to offer clean, plant-based shake line called Grounded that prioritizes flavor over protein payload have been dialing up their presence in US. After getting seeded with 16.6-oz carton that's been selling in trio of Whole Foods regions, the partners have established US production base in upstate NY and are diversifying the mix with 8.5-oz packs that will go out thru Sprouts. With bold block letters a bit reminiscent of Oatly graphic vibe, the packages herald "NOTHING FAKE IN OUR SHAKE" and "PURE PLANT POWER," signaling recipe that eschews gums and stabilizers. The 20 g of protein is sourced from sunflower seeds and peas. The founders, Bryn Ferris and Gabriel Bean, had been thru the bev wars together once before with UK brand called Cold-Pressed Quenchers, a low-sugar, cold-pressed line that entered Sainsbury's, WH Smiths and Fortnum & Mason chains but proved too pricey and not defensible enough, as Bryn reflected last wk. That learning has been put to use in Grounded venture whose roots he traced to cold night in 2019 when he and Bean brainstormed about next category they might enter. Plant-based was starting to boom, even as protein segment "was glaring with bad ingredients and subpar taste. It's not just about the macros." The pair sought to offer a protein alternative without gums, emulsifiers and flavorings. The effort ended up taking 18 mos and roughly 1,000 iterations, without help from consultants or flavor houses.Dubbed Grounded Plant-Based Protein M*lkshakes, the initial line launched in the 16.6-oz cartons from SIG, whose accelerator supported effort. The partners started with Chocolate and Vanilla before concluding that latter ingredient was too expensive, prompting switch to Mint Chocolate. That has closely tracked the Chocolate in sales, vindicating switch, Ferris told us, tho the Vanilla may return as ingredient's prices moderate.In UK, Whole Foods proved receptive retail partner for brand and was rewarded by seeing Grounded become top-selling protein entry. So the partners figured they'd send the US functional buyer an email to gauge his receptiveness. That led to a 2023 meeting in Denver. Less than a year later, brand was on-shelf at Whole Foods stores in Northeast and SoCal and brand's business doubled. Pac NW region also is in mix now. Grounded remained exclusive there for 7 mos, then moved more broadly to 1,000 sites, with Sprouts due aboard in next coupla mos. By now, Ferris has relocated to LA area to support US expansion. Q1 sales quintupled vs year-earlier just on the basis of those first 2 sku's. So partners aim to boost sales from $1.4 mil last year to $4 mil this year. Distribution is via broadliners UNFI and KeHe with targeted DSD via HiTouch Libations in SoCal and Dairy Delivery in Bay Area.As noted, Grounded is about to diversify mix with 8.5-oz carton, this one from Tetra Pak. It's half the size of core pack and carries half the protein at 10 g. It's heading into Sprouts and indie grocers. Meanwhile, partners aren't standing still with core line. That was due to run first items that swap olive oil for seed oil as they continue to take out unappealing ingredients. Ferris acknowledged that US is not totally devoid of clean protein-rich bevs, citing Forager as an example, but he believes indulgence angle separates Grounded from those positioned more on their nutritional macros.Target Indulgence Seekers, Not Protein Purists On this their second brand, Bean and Ferris are being careful to constantly mine their shoppers for insights. As Ferris recounted, one thing has come thru clearly from doing 150 8-hr demos: shoppers are coming to Grounded from indulgence space, viewing brand as more of a milk shake with protein than a protein drink. To partners, that might spell big oppty since the only major US brands associated with milkshakes are chains like Baskin-Robbins. So it's a chance to stake out territory as "the modern milkshake." Given plant base, of course, on pack the drink is styled as a "m*lkshake." As a pure commercial proposition that makes sense too. After all, indulgent snacking comprises a $172 bil market in US vs protein bevs at $2 bil. "People care more about flavor than protein," Bryn said. Users view Grounded as a "permissible indulgence."Given the broad usage base this suggests, partners are undertaking a capital round that started by raising $250K from existing investors, none of them institutional, but will aim for $1.5-2.5 mil all told to support the continued expansion and what Ferris said will be 4 new launches.

STRATEGY: Grounded Protein-Rich M*lkshakes Aim to Pry Users from Indulgent-Snack Realm; UK Brand Expanding in US Thru Whole Foods & Sprouts Chains

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