Tho Luckin Coffee has been giving Starbucks a run for its money in China, there’s still considerable skepticism about how sustainable its lower-price and explosive-expansion strategy will prove.  That’s not stopping former Uber employee named Max Crowley from mimicking that plan in NY, starting with a single 11-foot-square retail spot under Bandit name near Grand Central Station.  Like Luckin, takeout-oriented store is fast, app-based and aims to undercut Starbucks prices.  “Coffee at the push of a button” is Bandit slogan. 

Yahoo Finance profile describes how, after leaving Uber and encountering Luckin while traveling world last year, Crowley decided he could do same thing via compact, inexpensively outfitted units that take orders by phone app only and deliver the coffees in under 2 minutes, at prices nestled a bit under Starbucks’.  As Yahoo reminds, Luckin opened just 2 years ago, but in interim has built 3,680 stores in China and IPOed as it races to leapfrog SBUX in store count, a target it plans to hit by year-end.  Crowley seems to have similar ambitions, telling Cheddar interviewers he aims eventually to have a store within 5 minutes’ walk of every New Yorker.  Crowley views running with Asian-based innovation as novel approach, tho of course juice maker Dirty Lemon’s text-based ordering system was similarly inspired by developments on that continent.  As for idea of modest popup-style stores, that’s angle taken by other NY roasters, and even Starbucks recently opened mini-store at other transit hub, Penn Station.

In Yahoo story, reporter downloaded app (which asks for a photo as well as credit card info) and used it at store to order Christmas Spirit Latte (chocolate peppermint, with Oatly oatmilk) for herself and cold-brew with 2% milk for a colleague, for total of $8.17.  The cold-brew arrived in 1 minute, the latte 40 seconds later.  Using beans from Brooklyn’s Pulley Collective, the latte was “much better than I thought,” reporter offered.  Drinks come in either 12-oz or 16-oz cups, generally priced from $2-4, tho Crowley allows he’s feeling cost pressure from inputs like oatmilk.  Given pushback vs non-cash stores as being exclusionary, Crowley said he’ll try to broaden payment options if he can do so without undermining speed of service. 

Among its cold drinks, Bandit currently is offering Stumptown cold-brewed coffee in plain, French Vanilla and Redeye versions, along with Iced Latte, Iced Matcha, Iced Matcha Latte and a pomegranate kombucha.  First store seems to include 5 draft handles.   Seasonal menu of hot drinks includes items like the Grinch (honey lavender matcha latte), Christmas Spirit and Turmeric Latte.  Website at TheBandit.com invites outside partners to open stores, saying “Bandit can manufacture and deploy a modular, pre-fabricated café in less than 30 days with very minimal investment in improving the space.”  He told reporter on Cheddar units are mfd in Grand Rapids, Mich, and can be assembled on-site in 4 hrs.  Yahoo story puts buildout cost at $45-60K.  He’s hoping to have 2 more stores operating by end of Jan.

Crowley, who serves as ceo, spent 7 years at Uber and so far has been financing venture himself with cofounder James Gallagher, an ex-Marine who was involved with Good Uncle college meal-delivery concept that exited to Aramark.

 Cannabis player Canopy Growth was set to crank up its bev lines today in Smiths Falls, Ontario, after receiving license from Health Canada on Fri.  With operational and secure-storage paperwork in hand, the 150K-sq-ft bev plant joins CGC’s expanding empire in hq city that includes regional distribution center, bean-to-bar chocolate factory and even a visitor’s center.  In announcement today, Canopy said first wave of output at plant will include 11 bevs all utilizing co’s Distilled Cannabis process, with finished product heading to provinces within weeks as part of “Cannabis 2.0” commercialization wave.  With a nod at investor Constellation Brands for help setting up plant, ceo Mark Zekulin touted the bevs’ “potential to introduce an entirely different demographic to the cannabis category by presenting them with a familiar product format and an onset time akin to beverage alcohol.”  By now, CGC claims to be operating 10.5 million sq ft of licensed production capacity, along with retail store network.  Co is under pressure from Wall Street and Constellation to starting narrowing massive losses and building topline, issue that forced out prior ceo Bruce Linton earlier this year and sent shares skidding down by more than half from peak last spring. 

As reported, Canopy submitted license application on Jun 28 and began installing 20K-gal tanks and piping in Jul, with bottling lines commencing factory acceptance testing in Jul (BBI, Aug 16).  It had been aiming to be up and running by its fiscal Q3 ending in Dec, meaning it’s met deadline.  Among other steps it’s taken to lay foundation for robust bev biz have been investment in BioSteel to boost its expertise in sports nutrition segment (BBI, Oct 2).

Mass merchandiser Target surpassed Wall Street estimates with 4.7% revenue gain to $18.7 bil in revenues in Q3, citing strong start to its Good & Gather private-label food brand as contributing factor. Line launched with 600 items but will grow to 2K items by end of 2020, making it retailer’s largest owned brand, ceo Brian Cornell told investors. Marketing initiative behind line is on the way . . . PepsiCo is latest corporation to go with open-layout offices in hopes of honing innovation and camaraderie.

That was fast. A day after Honest Tea cofounder Seth Goldman announced he’s exiting Honest Tea at year-end, Coca-Cola informed employees it’s relocating co from Bethesda, Md, where Goldman launched co 22 years ago, to its Atlanta hq. Washington Biz Jnl cited KO statement indicating that most of 9 full-time jobs based there will relocate. “This move allows us to fully integrate the Honest business into the company’s portfolio, as well as strengthen collaboration among the team and increase opportunities for career development for these associates,” statement said. Brand’s gm, Clare Verdery, had relocated there from Atlanta just coupla years ago after attempt to operate co by Atlanta-based gm hadn’t fared well. As reported, Seth’s off to new venture, with details to be specified early in new year (BBI, Nov 15). In recent interview he acknowledged that innovation had slowed lately at organic pioneer but cited robust pipeline of new stuff, including forthcoming kombucha entry.

“Made for you” is come-on of personalized nutrition co Vejo, which has begun marketing farm-to-pod blender called Vejo in recent months via DTC effort and network of associated Vejo+ clinics. Billed as “world’s first pod-based blender,” elegantly designed rechargeable cylinders quietly hum as they render contents of biodegradable pods into 8-oz servings of freeze-dried fruit and veggie smoothies and protein entries like whey coffee and Earthbar-branded plant protein shake. They’re going out in starter kits priced at $129 that include blender and sampler pack of 8 pods, with replenishment pods priced at $28-32 per 8-pack. As ancillary biz, co is operating trio of clinics in Cologne, Germany; London and Santa Monica, Calif, that offer members custom-designed nutritional blends. Encountered last week at Well Now mini-expo at NY’s Metropolitan Pavilion conference space, medical dir Lanae Mullane said clinics’ 250 members include professional soccer teams Bayern Munich and Manchester City. (Website at vejo.com also lists likes of NBA star Kevin Love, cyclist Anneke Beerten and motorcycle racer Jared Mees.) In late Oct, Vejo signed on as personalized nutrition partner of Spartan Races, whose events Vejo will work in US, Germany and Austria via Spartan Starter Kit and branded Airstream vehicles where participants and fans can sample product. Mullane said concept soft-launched this year after 4 years of development, with co planning such future steps as move toward food-based pods that dissolve in water. Co was founded by its Santa Monica-based ceo Christoph Bertsch, who also seems to operate software co called Bertsch Innovation in nearby Venice. Pitchbook lists Germany-based Dohler Ventures as minority investor in Vejo.

Austin-based canned kombucha line called Greenbelt that raced out the gate last spring to chain-wide presence in HEB groceries has been finetuning proposition, devising additional flavors and preparing for first foray beyond state’s borders.

Brand named after popular local respite called Barton Creek Greenbelt was launched by key figures in city’s booming fermentation scene, which includes canned-craft brewer Strange Land, pickle/kimchi maker Barrel Creek Provisions and Texas Sake Co (BBI, Apr 15).  Those principals – Adam Blumenshein, Tim Klatt, Nathan Klatt and Rick Boucard – teamed with popular blogger Gavin Booth, who operates “Couple in the Kitchen” food/travel property with his girlfriend Karen Reinsberg, to offer tea-forward entry in 4 flavors.  They entered Austin market with no dominant kombucha players, and few canned plays beyond cleverly named Oye “canbucha” from Wunder-Pilz.  It offers tea-forward recipes with very low lactic bite in ambition of competing for consumption occasions with sparkling waters while also serving as tonic alternative for growing non-alc cocktail movement, said Booth, who credits his own interest in style to Calif childhood with hippie mom.

In recent conversation, Gavin recalled landing HEB at “crazy, crazy early” point when partners had just devised pair of test flavors a week or 2 earlier.  But buyer said it was best booch he’d tasted and demanded a quartet of flavors, by Booth’s account.  So Greenbelt scrambled to finalize lineup and went statewide to HEB’s 130 stores, with grocer’s natural banner, Central Market, now slated to follow in early 2020.  HEB is direct customer tho Greenbelt also uses local distributor Farmhouse Delivery to reach some retailers and corporate offices.  Brand has got green light at broadliner KeHe, tho it hasn’t yet activated relationship, but anticipates landing first out-of-state grocery chain shortly.  Whole Foods, for whom kitchen couple Booth and Reinsberg serve as brand ambassadors, may pick up brand in regions outside Texas, too.

Tho out at aggressive price, Greenbelt seeks to offer artisanally crafted booches, using expensive “hyper-premium teas,” in Gavin’s phrase, as well as freeze-dried fruits that are steeped like tea, process that has added advantage of helping to control alc content.  Thanks to investors who’re involved in essence biz and tea distribution, Greenbelt is able to go out aggressively in HEB at $1.99 per 12-oz can.  The line is self-produced in facility in Georgetown, just north of Austin, that’s powered by wind, in keeping with Texas’ emergence as major hub of that renewable resource. 

Initial flavor range has been plotted to serve variety of functions and dayparts.  It’s comprised of non-caffeinated Strawberry Fields Rooibos Tea, Blood Orange Yerba Mate entry with smoky presence that’s made from real tea, not extract; delicate Peach Blossom White Tea, and rare Chinese pu’erh for Hibiscus Berry Black Tea that soon will have name tweaked to more clearly call out pu’erh presence.  Coming up next are an oolong sku and one using yaupon, the Texas-grown domestic tea that’s been at heart of such Austin-area startups as Cat Spring and YaYaYa.  Recall that pu’erh was at heart of short-lived bottled line launched by Numi Tea some years back, but otherwise hasn’t been much seen in RTDs.  Front panel of Greenbelt cans carries descriptor “sparkling probiotics” and heralds Austin provenance of brand. 

Bev vet Dan Holland seems to have quietly segued from one highly visible CBD entrant to another. We hear that LA-based Holland, who did long spell at Haralambos DSD house before moving mainly to brand side of biz, has left post building West Coast sales effort for NY-based Recess in favor of move to coo spot at Mad Tasty, LA-based entry launched by One Republic frontman Ryan Tedder in partnership with Interscope Records. That’s word on street tho we haven’t gotten direct confirmation from Dan or anyone else. As reported, LA-based PE house First Beverage Group has been helping in early commercialization stages and just put in minority investment, with First Bev managing dir Jack Belsito telling us earlier this week he was in hunt for coo (BBI, Oct 21 and Nov 20). Holland’s move there would reunite him with PE house that was key investor in Activate, now-discontinued cap-dispensed functional line that Holland ran as he embarked on career on brand side after long run as distribution exec at Haralambos Bev.

Coca-Cola announced changing of guard at its Costa Coffee co acquired early this year. Dominic Paul, who led growth phase that culminated in KO deal and exit from Whitbread orbit, is exiting as ceo at end of month, succeeded on Dec 2 by British-born Jill McDonald, whose resume includes runs at Marks & Spencer, Halfords Group, McDonald’s (no relation, we presume!) and British Airways. Paul will continue as advisor thru Feb. Costa, of course, is London-based coffee chain that’s to serve as platform for RTD and other extensions as KO tries to strengthen its presence in growing coffee sector .