Llanllyr Source, diverse co built on bottled water sourced in Wales, has brought on cadre of bev vets including 25-year PepsiCo alum Mike Rosenblatt as it seeks to raise £10 mil (about $12 mil) in growth capital for planned 2020 relaunch.  Recruited to support interim ceo John Wallington are coo’s for North America and Europe and a global cmo.  Filling the N Amer sales and strategy role is Rosenblatt, whose more recent roles at PEP included running New England region and nutrition biz.  In comparable role in Europe will be Cott vet Jo Lloyd-Davies, who as a consultant brokered sale of Princes Gate water co to Nestle and assisted German discount chain Lidl in effort to secure option to build UK spring water plant.  In as cmo is Louis de Rohan, who consulted for cos like Fever-Tree, Beam Suntory and Bacardi as well as Llanllyr Source itself via his company LDR Creative.  (His LinkedIn page lists his current affiliation as “consulting cmo.”)  As for Wallington, he had run at Unilever but mainly has been focused on sustainability space via energy co UPC Renewables.

Tho we couldn’t find any Llanllyr execs available to discuss announcement, co founded 20 years ago by environmental activist Patrick Gee was early into canned waters, and by now has extended out to mixers and other categories tho it remains small player.  No response to our query as to what platforms are likely to be focus in 2020 aside from general statement that co aims to “become a category leader for the responsible production and distribution of spring water products around the world.”  That’s certainly burgeoning segment as plastic backlash seems to mount.  Llanllyr Source is aiming to be generating $22 mil in annual sales by 2024.

Nutrabolt’s C4 Energy brand, whose bright-yellow cans have become a key entrant in burgeoning performance energy space, has been quickly building out its DSD footprint, adding retail partners and revving up its marketing engine as it looks to 2020.  Among initiatives in the works is addition of a new subline in greyish cans dubbed Smart Energy that will seek to move the brand beyond its physical-performance roots to mental performance, in process unlocking opportunities at venues like gaming competitions and corporate campuses. 

Like performance energy leader Bang, C4 is marketed by longtime player in fitness space, Austin-based Nutrabolt, launched by Doss Cunningham.  Its performance blend includes alanine, citrulline and 200 mg of caffeine, and like Bang it offers flavors that would never be seen at Michelin-starred restaurants along lines of Cotton Candy, Orange Slice and Frozen Bombsicle.  “The US is being painted with yellow C4 cans right now,” said sales chief John Herman, in discussion Fri that also included founder/ceo Cunningham and cmo John Hardesty.

The yellow can is workhorse for crucial c-store channel, and thus sole focus of NACS extravaganza in coming weeks.  But C4 already includes several flankers that are viewed as rich with potential and portfolio will further expand with Smart Energy in Q4.  Silver-can Natural Zero contains 120 mg of caffeine and 250 mg of citicoline in more of a sparkling-water format that aims at Whole Foods and other natural retailers.  Black-can C4 Ultimate is more extreme rendition, offering 300 mg of caffeine, rauwolfia, beta-alinine, citrulline and arginine, familiar ingredients in pre-workout supplements.  Noncarb entry in PET bottle has been confined to core gym and specialty sector for now but will gradually move out to exploit other opportunities. 

C4 Smart Energy will seek to move trademark beyond “moment of sweat,” as Herman put it, by retaining the 200 mg of caffeine but eschewing ingredients like alinine and citrulline in favor of those boosting mental acuity, such as Cognizen and L-theanine.  By dropping alinine in particular, with the tingling effect it creates, Smart Energy should boost the consumption occasions of users.  Current planning calls for it to debut in late Q4 at partners like GNC nutrition chain, then move out a bit more broadly early in new year.  “We believe C4 stands for performance, and we’ll be thoughtful in how we segment” the line, Cunningham said.  Note that Adrenaline Shoc performance brand launching in KDP channel also claims to offer “smart energy,” tho with alinine and other ingredients associated with performance brands like Bang and core C4 line.  Tho canned C4 line is relatively new entrant in retail space, even with low ACV Nutrabolt’s broader biz has quietly burgeoned, on track to do $55 mil at wholesale, $100 mil at retail this year, company execs say.  So they’ve got the resources and experience to make serious push.

Distribution: Building Out Coasts, Attacking Heartland   On DSD side, Nutrabolt in recent months has been establishing presence in key East and West Coast metros and starting to stake out parts of Midwest, abetted in couple of key instances by exit of Monster Energy from longtime distribution partners.  Among partners who’ve come aboard over past 60 days are Kalil in Ariz, which saw Monster Energy transition to Coke bottler Swire, and Polar in New England, both KDP-aligned houses.  On East Coast, co has forged solid relationship with Big Geyser since spring among flock of successors to departed Monster brand, supporting its new partner with 6 area sales mgrs driving branded Jeep Wranglers.  Next up is Honickman’s Canada Dry operation, picking up brand in 2 weeks in its in Philly and DC territories.  That will give C4 coverage in all key metros in Mid-Atlantic and Northeast.

Lots of activity on West Coast, too, as C4 has seen 2 key DSD partners in process of being acquired even as it works to broaden base.  LA partner Haralambos Beverage is being acquired next month by Classic, tho Herman said he’s bullish on enhanced capabilities he sees Classic bringing to territory.  Situation is less certain in Bay Area, where DBI is being acquired by Reyes Holdings, which has skeptical stance toward NAs in its beer houses, but Herman is “cautiously optimistic” C4 will remain in mix there.  In meantime, co has fleshed out Pac NW with addition of A-B houses Olympia Eagle in Seattle and Maletis in Ore.

As it starts to focus now on heartland, C4 has enlisted MillerCoors houses in Illinois, along with Sheehan family’s Beechwood A-B operation in Wis and Heidelberg in Ohio/Kentucky.  In its headquarters market of Austin, Nutrabolt uses Capitol Wright for C4, with Kimball handling c-stores in Dallas area.  “A work in progress” is how Herman describes Texas, which is famously challenging in part because dry counties serve as disincentive for beer houses to get involved in NAs.

Retail: Deepening Assortments, Adding Chains   It’s still early days for brand at retail chains, and C4 is pushing hard to penetrate both c-stores and grocers.  Quik Trip c-store chain carries 5 sku’s now but will up that to include even hardcore Ultimate lines, Herman indicated.  Walmart is anticipated to expand sku range, too.  A 32-club test at Costco will expand to a 200-store rotation in Q1 as club chain kicks into its “new year, new you” promos.  Signs are favorable that Kroger will take 5 sku’s nationally.  Albertsons/Safeway and Shaw’s have both enjoyed success with 9-sku assortment, Herman reported, and among c-stores Sheetz remains strong partner.  DSD partner Kalil has proved to have strongest accounts team, plying C4 in Circle K, Bashas’ and Albertsons/Safeway in its Ariz territory. 

Marketing: With 2 Mil Cans Already Sampled, Field Marketing Will Double   By now, C4 has concluded a full year of field marketing efforts, sampling 2 mil cans to date and working about 150 events per month, cmo John Hardesty said, with team based in Orange County working surfer events at venues like Oceanside and team in NY working influencer events on East End of Long Island, where affluent New Yorkers frolic in warm weather.  In 2020, that program will double in size, including via stepped-up recruitment of student ambassadors, which now number around 100 in Calif and Nevada.  Core Texas market and Kalil’s Arizona territory are among areas where field marketing will be intensified, working activities like baseball spring training and music fests.  To date, over 30 have been trained to work fitness, lifestyle, biz and college events while also helping with basic blocking & tackling, such as remedying out-of-stocks and posting POP.

C4 also is ready to seek bigger sponsorship opportunities now, Hardesty added, working with partners like iHeart Radio and LiveNation.  In Texas, events like Austin City Limits and South by Southwest are in the mix.  Nutrabolt anticipates disclosing more about event slate for 2020 in coming weeks. 

Marketing team also is keeping abreast of new tech tools to reach consumers – say, by using WAZE in major metros as navigation platform on consumers’ work, school and gym routes so that icon pops up on their phone alerting them that they’re close to store where they can pick up some C4.  The maps are updated weekly as retail footprint is refined.

Youthful marketers behind 3D Energy continue to build out distribution in Midwest, are readying big push into Northeast and laying groundwork for launch of self-distribution arm in Southern Calif, even as they prepare to move pair of their other brands, Alani Nutrition and CBD entry Spectrum Water, from DTC to retail.

As reported last fall (BBI, Nov 6), 3D was launched by pair of Louisville, Ky-based entrepreneurs, Trey Steiger and Max Clemons, now 25, backed by fitness guru and Youtube phenom Christian Guzman.  Brand’s 16-oz cans are instantly noticeable on stores shelves for their minimalist design, with almost no text, including any flavor names, against muted matte background and black top.  They employ conventional energy ingredients like taurine and ginseng but offer subtly layered flavors and lower carbonation.  3D is among complex of related businesses that the team has been building since mid-2016, including female-targeted Alani Nutrition supplement co and healthy-meal delivery service Bite Meals, in partnership with Guzman, who operates gym and athleisurewear brand under Alphalete name.  With 3D garnering a spot among top 10 or 15 energy plays even with ACV well below 5%, partners are pushing it out to broader geographic region, enlisting new DSD and chain partners, and now bringing some of those other brands into the retail mix, riding pre-existing base of awareness from DTC base and social media outreach.  Steiger and Clemons have enlisted as their natl sales chief the bev vet Bill Juarez, who offered us rundown on these various pushes.

3D Emerged from Fitness Space, but Prefers Placement in Conventional Energy Set    Initial retail momentum for 3D Energy came from 600 7-Eleven stores in heartland region, supported by DSD partners Lakeshore in Chicago and New Age in Denver, and it’s been fleshing out capabilities in region.  In that core region co has relied mainly on Bud distributors like Lakeshore, adding likes of KCA in Kan and Quality in Omaha, Neb, about 25 all told.  In Las Vegas, MillerCoors house Bonanza is partner, working Terrible Herbst chain as key retail partner, and MillerCoors house United carries 3D throughout Georgia.  Until it fleshes out DSD footprint it’s relying on other options, like McLane to service c-store chain Kum & Go and KeHe to service Tom Thumb.  Among other chains, it’s been in Fry’s in Ariz since Apr and in next 90 days will enter about 600 Walmart stores in Midwest, Ariz and Tex.  It’s in 3 Kroger divs, including Dallas.

In coming months execs heading to East Coast in hopes of landing DSD partners for NY and other Northeast metros, visiting with majority of members of Northeast Independent Distributors Assn who aren’t handcuffed by exclusive contract on Bang Energy brand.  And with Juarez viewing options as limited in Southern Calif, 3D is laying groundwork to establish its own distribution there, task that’s right in Juarez’ wheelhouse as former operator of Red Bull house called Energized that played crucial role in brand’s early days in core market.

3D occupies peculiar space on positioning front, coming out of performance realm via tie to Guzman eschewing ingredients like BCAA, creatine and Co-Q10 that are associated with emerging performance energy space and keeping caffeine levels moderate.  So 3D team views emergence of specific performance energy shelf sets at retailers like Kroger with enthusiasm not because it’s seeking placement within those new sets but because the sets are seen as creating space in main set for 3D as retailers shift brands like Bang, Reign and Hydro to the new sets.  Conventional energy drinks for fitness-minded people, is how they view 3D premise.  Compared to other zero-calorie energy drinks like Monster Ultra, 3D is distinguished mainly by carrying 50 mg more caffeine and less carbonation.  But its simple, clean packaging cuts it apart from “loud, obnoxious” branding of major brands, Suarez asserts.  In Bill’s view that makes 3D “the only ‘new’ entrant in mainstream energy.”

Among directions co is considering is adding smaller-size slim-can package, 8-oz or 12-oz, as way to protect pricing of core 16-oz and to offer multipacks to grocers as those come aboard.  That said, 3D will continue to expand deliberately, he said.

Alani Nu Energy Heads to Broader Retail When GNC Exclusive Expires at Year-End; Spectrum CBD to Produce in Late Sep   Alani Nutrition’s nutritional supplements tilt directly at females, with products that Fat Burner and Super Greens powders classed as “Essentials” and others classed as “Workout & Recovery” that include ingredients like BCAAs and whey-based protein.  Also in mix is 12-oz slim-can energy line, Alani Nu, that’s sugar-free and carries dose of biotin “to support your natural glow.”  Energy blend includes taurine, caffeine, L-theanine and ginseng.  Line is offered in flavors like Arctic White, Carnival Candy Grape, Mimosa and Hawaiian Shaved Ice.  Suarez said broader Alani platform has surged beyond $75 mil in sales in less than 2 years as DTC play whose only retail presence has been at GNC nutrition stores, where Bill said it’s #2 energy brand, #1 female-targeted brand and was named breakout brand of year.  But retail exclusive at GNC concludes at year-end and co will be expanding base, including via Target authorization in Jan.  It’s viewed as primarily a chain play.  Thanks to social media and other activities, Alani already boasts 305K Instagram followers.

CBD play, Spectrum, is due for production in late Sep, employing bottled water format.  DrinkSpectrum.com website shows brand packed in widemouth 12-oz bottle that contains 10 mg of broad-spectrum hemp immersed in water that’s same 7.4 pH as body’s natural state.  Co will offer more details on plan closer to launch.