$1.5 Billion For BFY Brands. Why They're Worth It. Plus, 'Mission' In A Bottle.

17 Jan 2025 · 54 min

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Taste Radio Episode Summary: $1.5 Billion For BFY Brands. Why They're Worth It. Plus, 'Mission' In A Bottle

Episode Overview In this episode of Taste Radio, the hosts discuss the significant acquisitions of Simple Mills and Spindrift, valued at nearly $1.5 billion collectively. They analyze the strategies that made these better-for-you (BFY) brands attractive to investors. Additionally, the hosts interview Marcin Malyszko and Amit Singh, the co-founders of Mission Cocktails, a brand that focuses on premium ready-to-serve bottled cocktails while giving back to local food banks.

Key Themes and Discussions

  1. Acquisitions in the Food and Beverage Industry
  2. Simple Mills Acquisition:
  3. Acquired by Flour Foods for $795 million.
  4. Recognized for its quality products in the better-for-you segment, including cookies and baking mixes.
  5. The hosts reflect on the brand's journey since its founding in 2012 by Caitlin Smith.
  6. Emphasizes the potential for expanded distribution following the acquisition.
  • Spindrift Majority Sale:
  • Majority stake acquired by Griffin Investors, valued at over $650 million.
  • Transition of founder Bill Kreilman to a chairman role with a new CEO, Dave Berwick, who has a substantial background in the beverage industry.
  • Spindrift is praised for its authentic use of real fruit juices without added flavors.
  1. Trends in the Beverage Market
  2. The podcast highlights emerging trends in non-alcoholic beverages and better-for-you brands, noting that consumers are increasingly seeking healthier options.
  3. Discussion includes hop-infused waters and the rise of brands like HopLark.
  1. Interview with Mission Cocktails Founders
  2. Brand Mission:
  3. Mission Cocktails donates 5% of gross revenue to local food banks, contributing to a social cause while providing premium cocktails.
  4. The founders share their journey from cocktail enthusiasts to entrepreneurs, highlighting the impact of COVID-19 on their motivations.
  • Product Development:
  • The founders emphasize a rigorous R&D process to create high-quality cocktails.
  • They utilized feedback from consumer taste testing to refine their recipes, ensuring they appeal to a broad audience.
  • Sales Strategy:
  • The importance of direct consumer engagement through tastings.
  • The founders have developed a training program for brand ambassadors to ensure a consistent brand message during tastings.
  • Market Positioning:
  • They discuss their approach to pricing and distribution, emphasizing their competitive edge by being affordable while maintaining quality.

Key Takeaways

  • Value of Acquisitions: The success of brands like Simple Mills and Spindrift illustrates the growing market for better-for-you products and the potential for strategic investments.
  • Social Responsibility: Mission Cocktails exemplifies how a strong mission tied to social impact can resonate with consumers and retailers alike.
  • Consumer Engagement: Direct interaction with consumers through tastings and personalized storytelling is crucial for building brand loyalty and driving sales.
  • Adaptability: The founders' willingness to learn from their experiences in the beverage industry has been instrumental in their growth.

Featured Brands

  • Mission Cocktails
  • Simple Mills
  • Spindrift
  • Partake Brewing
  • Hoplark
  • Liquid Death
  • Other brands mentioned: Nature's Own, Dave's Killer Bread, Lacroix, and various others in the beverage space.

Conclusion This episode of Taste Radio provides valuable insights into the dynamics of acquisitions in the food and beverage industry, highlights the importance of purpose-driven brands, and showcases the innovative approaches being taken by emerging companies like Mission Cocktails.

For more insights or to share your thoughts, reach out to the hosts or explore sponsorship opportunities at ask@tasteradio.com.

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Transcript

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0:10Hello friends and thanks for tuning in to taste radio the number one podcast for anyone building a business in food or beverage. I'm Ray Lateef, the editor and producer of Taste Radio, and with my co-host for this episode, John Craven, Jackie Brugliera, and Mike Schneider. In this episode, we sit down with Marcin Malisco and Amit Singh, the co-founders of Mission Cocktails, a purpose-driven brand of premium, ready-to-serve bottled cocktails. Those things are tremendous. They're tasty. Fantastic. Delicious. I was slinging their espresso martinis over the holidays, and people couldn't get enough of them.

0:45Yeah, really, really good. They come in 375 milliliter bottles. We'll talk about that in the interview. Amit and Marcin, we met both of them at the BevNet Live Winter 2023 event, where they participated in our cocktail showdown and did a pretty darn good job, I want to say. Yeah, they've been back since. Yeah, and their brand is growing quite a bit, something we also talk about in the interview. So stay tuned for that. To all of our dear listeners in the Los Angeles area, we are thinking of you. Obviously, it has been devastating to see the wildfires raging out of control in the city. And we know a lot of folks who have been affected, displaced, and are still fearful of losing their homes.

1:33We are constantly thinking of you, and hopefully this will pass soon. And certainly if there's anything that we can do, please let us know. You know, we'll be out there soon enough for Expo West and we would love to see you. And again, you're in our thoughts and prayers and just hope that we will see a conclusion to this very soon. As I mentioned, we are heading out to Expo West in March. Looking forward to seeing all of you out there. And I mean all of you because probably everyone listening will be heading to Expo West. Probably quite a few of you will also be heading to the Winter Fancy Food Show, which is being held in Las Vegas.

2:13It begins on January 19th and goes until the 21st. John and I will be out there. John will be there on the 19th. I'll be there on the 20th. Actually, John, you'll be there on the 20th as well. So 19th and 20th. I don't know what day is what, but I'll be there. Okay. I'll be there Sunday and Monday? You'll be there on Sunday and Monday. I'll be there on Monday. And we are looking forward to seeing you. If you're going to be there attending, exhibiting, walking the show, just let us know. Send us a DM on the Instagram or the LinkedIn. We'd love to see you and perhaps even interview you. The following day, Tuesday, the 21st of January, John and I, along with the West Coast branch, that's Jackie and Co., will be at the Naturally San Diego pre-party for the UNFI show out there.

2:59That's going to be going on from 6 to 9 p.m. Full details are on the Naturally San Diego website. We know there's going to be a bunch of folks out there. I will be recording a bunch of interviews with folks at the event. So if you're interested, please send me a DM or just email me at rlatif at bevnet.com. Or you can reach out to Jackie and the team. Let them know as well. We will have interview opportunities on site. So don't necessarily worry if you heard this too late and you're like, I want to be interviewed. I want to sit down with Ray. there will be an opportunity to do so at the event as well.

3:32I know how many people are going to be like, oh, I'm freaking out. Oh, yeah. Clearly, clearly. I'm just there working security to keep people. Thank you. Thank you. Keep people back from right. Yes. No, it's going to be a great show. It's going to be a great event. And Jackie and the team as well will be sitting down with or maybe standing up with folks to record some on the spot social content. Literally, it's called on the spot for our gram, the TikTok, LinkedIn, all that good stuff. Yeah. Instagram. What's it called? Links to talk. Links to talk. Yes. Face to, face to tech. I heard it might be X talk soon.

4:08Oh gosh. I don't know. We just have to pray for the best. Like, like a lot of things these days. Yes. Yes. So last Tuesday we recorded our banter and then the following day, Simple Mills, it turns out, was acquired, or at least the acquisition was announced. The acquisition of Simple Mills by Flour Foods for$795 million. It's not a billion dollars. Put your pinky finger away. $795 million is a lot though. No, it was a big deal that happened again the day after we recorded the episode, which is why it was not noted in last week's episode. This is really great to see. Last year, folks recall, I was standing on my soapbox and screaming to the heavens about why, why in God's name, Simple Mills, a fantastic Better For You brand of cookies, crackers, baking mixes, etc.

5:06wasn't on the radar of big food. I mean, to me, it was an obvious, obvious target for acquisition. And here we go. Ten months later, they finally heard me. Not that I would call Flowers Foods a big food or part of the big food universe, but they do own, you know, a number of pretty prominent brands, including Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, and Tasty Cake. So it's a little conglomerate, a little under the radar versus like a General Mills. And that's cool. Yes. And so very excited to see this. And Simple Mills has been on the market since 2012, founded by Caitlin Smith.

5:45And just exciting to see the brand that she's built is finally going to be available, I would hope, to more folks out there. I mean, that's one of the great things about acquisitions is that distribution, hopefully, will be a lot more broad and widespread and the brand itself and its products will be available and perhaps even more affordable to a lot more consumers. Yeah, and she's done a great job running that brand. And it sounds like she's going to still, you know, steer the ship and they're still going to work independently underneath the umbrella. So I'm really curious to see what they're going to do with the extra cash and some additional resources.

6:23Absolutely. Now, Jackie said they heard you before the show said they heard you and they were just stacking up their pennies. Yeah. Billions and billions of pennies. Like Ray told us to do this. It's going to take us a year, but we're going to make it happen. Yes. I mean, someone else got almost$700 million today, I think, too, right? Indeed, John is referring to the fact that Spindrift, the brand of flavored sparkling water is infused with fruit juice and puree, has reached an agreement with a private investment group called Griffin Investors, they're San Francisco-based, to acquire a majority stake in Spindrift.

6:59And according to the Wall Street Journal, that deal is worth north of$650 million. Very exciting. No, put your pinky away, Mike. No, it's for more than millions. It's for lots of millions. Yeah, the deal is expected to close sometime in Q1 of this year. According to the article on BevNet.com, penned by our very own Marty Caballero, it will see Spindriff founder and current CEO Bill Krillman retain a, quote, significant equity stake in the company while shifting into a new role as chairman of the board. So who's becoming the CEO? Well, someone that is well known to our industry. His name is Dave Berwick.

7:38Dave Berwick was most recently and formerly the CEO of Boston Beer Company. That's Sam Adams to folks who don't know the Boston Beer Company, as well as Pete's Coffee. He was also the president of North America at Weight Watchers. So he's had quite a bit of experience as a top executive at some pretty well-known brands. And Dave is local, just as Spindorf is local. Yeah, I was going to say, after this, you should be walking down the block and knocking on the door, since there are literal neighbors. Yes. See if maybe Dave wants to get on a Taste Radio interview. Well, I was thinking Bill. I mean, we've had Bill on the show a number of times.

8:17We've had Dave on the show when he was the CEO of Boston Beer Company. But I feel like folks are going to want to hear from Bill about his process and his mindset of finding the right investment partner and trying to figure out when the timing was right. And probably, you know, the timing was right, according to certain investors in Spindrift. But I'm excited to hopefully have an opportunity to sit down with maybe Dave too. Maybe Dave and Bill. They both sound like great stories. Yeah. Yeah. Exciting stuff. But it's been a long time coming. Spindrift. I mean, quite the brand. Quite the brand, quite the evolution from its humble beginnings as a soda brand, basically.

8:56It was a soda brand. I mean, that was Bill's original vision back in 2010 to create a Better For You soda brand. It was in long neck glass bottles. I remember seeing it for the first time, even before I was at Pepnet. There was some event down at the Boston Seaport. I was like, this is incredible. Why has no one ever thought of this idea to create Better For You sodas actually using real fruit juice and real fruit puree? And they were delicious. and then uh was it two three years later they came out with their sparkling water it's originally called seltzers and uh then they discontinued the soda line and that's all sure i mean they just created the gold standard for flavored you know for a flavored seltzer too it's just it's crazy good with the juice and so many have tried to copy it it's a category captain so many great things about spindrift that you can you can say yeah i mean the big thing about spindrift too for me is that they kind of stand on a soapbox as well.

9:52And, you know, I like when people do that, but they are all about the no added flavors, the no added natural flavors, because I remember talking to Bill about this a few years back and he's like, okay, the more we dug into what quote unquote natural flavors are, the more and more we were confused. We didn't know where this was actually coming from. So we said, okay, no added natural flavors. The only thing we're going to use are fruit purees and fruit juices. And I mean, I think that's why those products taste incredible. They really, really taste amazing. Yeah. It's interesting to see how they've evolved and pivoted.

10:29I feel like they've spotted trends really well while still being like authentic to their brand. And like you said, like speaking up for things that they believe in. So people feel that authenticity with the product and they know that it's going to be like clean and something that they're happy consuming. And even beyond that, like they spotted some opportunities in elk as well with like Spinger Spiked. And I'm just curious to see what's going to happen next, but they've always done a really good job on like formulation and innovation, which has continued to keep them kind of ahead of the trends.

11:03Yeah. Interesting that they brought in a CEO who is an elk expert. Yeah. I mean, we'll be exciting to see where this all goes. A cynical person might say, well, to get even broader distribution and to improve your margins, maybe you should consider natural flavors. So I hope they don't go that route. But, well, all right, take it easy. Mike was thoroughly disgusted. I love the product as is, and I think a lot of people do. There would be a lot of disappointed people if they went down that path. But like you said, Ray, sure, cutting costs, that kind of thing, you know, higher margins, more money for R &D, et cetera, et cetera, et cetera.

11:40Yeah. We can get a Spindrift vending machine here in the office. I think that would be cool. I mean, we don't even get free Spindrift just to be totally transparent. No, we don't. We're a little grumpy about it. Like maybe something could just fall off a truck driving down the street. That's what I'm saying. I know. No, we're kidding. Or was it a vending machine that we could get at least at cost? You know, like, let's say it was, you know. Or like an app where a drone flies one over? There are more of those nowadays. I was just reading about that. Google's... The building's right next door. Yeah.

12:04If they left a case out, I'd go pick it up. Yeah, just bring a little trolley, you know, like, be like, I'm here for my pickup. Hi. Well, once again, congratulations to our neighbors, Spindrift. and graduations to Bill Creelman, who really, just an outstanding entrepreneur. I mean, this is his second go around. He created a brand that I don't know how many people know about it, but he sold it to Diageo back in the day. The name of that brand, John, was? Stirrings. Stirrings, indeed. But certainly a bigger financial outcome, financial windfall than the Stirrings deals. I don't know how many folks out there are subscribed to the New York Times, but I got to tell you, I really do like their wire cutter section.

12:52It's a section where they review independently a whole bunch of different things from a lot of different categories, industries, from food and beverage to consumer electronics to fashion, well, clothing, etc. And so this week, they reviewed a bunch of hop waters. And I mentioned this because Partake Brewing, which is a maker of non-alcoholic beer, recently launched a new hop twist product, sparkling hop water with citrus. It's made with fruit juice from concentrate, zero calories. I don't believe there's any sugar in here either. And it's made with citra and mosaic hops. So this was not released in time for the New York Times Wirecutter Review, but as expected, there are a few names that rose to the top of the Wirecutter Review.

13:44So Hoplark obviously was the top pick in two categories for the best hop water for IPA lovers. And then their hop tea was the best hop water, but make it tea. So congrats to Hoplark because I don't know, every time I see one of these brands or products on Wirecutter, their Amazon sales go through the frigging roof. So, yeah. And best for LaCroix lovers, according to Wirecutter, athletic brewing company's Daypack. Oh, well done, athletic company. Interesting. Yes. Best for the health conscious, maybe, in quotations, or excuse me, in parentheses, hop water, H-O-P-W-T-R. Is this a no sugar added hop water with juice here?

14:24Is it kind of, we were just talking about Spinders. I don't think there's any sugar in here. It says less than 1 % juice. And we're referring to the Partake Brewing Hop Twist. So, yeah, we're going to open this up. John's already sipping on one. Yeah, I've already had a can or two. This stuff, it's pretty solid. I mean, I didn't receive a piece of Partake. I could burn the belly down. Yeah, this is pretty straightforward. Like, if you like hop water, it's lemon-flavored hop water. So not to, I don't know, smack you in the face with hops, which is good. Okay. Don't, it's too soon to mention being smacked in the face.

14:59It's juicy for the right reasons. You know what this is? This is a cross between a Spindrift and a LaCroix. I'm not tasting any hops in this. No? No. No? It's very light. Interesting. Very light. Yeah, barely any hops in this. Okay, maybe in a second. I mean, it's hop twist, not like hop nuke, you know? It's fine. Hop nuke. I'll try to report back later. Yeah, it's good that there's different level of hops. I feel like some other hop waters scare people away because they're not, you know, super hoppy people. That's what I'm saying. Yeah, I mean, that's the thing with that Wirecutter article. It's like, it's so subjective in this sense based on like how much do you love hops?

15:37And some people like really, really love it. Some people don't. And I don't know, most people maybe in the middle or something? Well, I don't know. It says here, according to the New York Times, and everything the New York Times writes is perfect. Oh, obviously. It says right here that why you should trust me in this person is I've been a beer lover since my first taste of Chimay Grand Reserve in college. And I've been obsessed with homebrewing since 2016. Cool. So there you go. Sure. So they probably lean more towards hops, you know? I mean, this is like, could you imagine an article? It's like the best red wine or something like that.

16:13I mean, that's, you know, hops are in a nerdery that is not that far off. Well, they do have a couple or they published a couple articles over the past few weeks about the best non-alcoholic wines and the best non-alcoholic drinks. So, yes, very, very small, small, small category. So, yeah. Speaking of non-alcoholic drinks, I got to get this off my chest. Okay. Oh, boy. Oh, boy. So, there was a brand that sent us a bunch of products this week. The brand is called Imposter. Do you think it's non-alcoholic? It's a maker of non-alcoholic spirits. Definitely. They have a rum, they have a gin, they have a tequila, and they have a whiskey.

16:50Same taste? Come on. I don't believe it. Okay. I don't believe it. What do we got here? Forget the same... What do you have to get off your test? I don't know. Wow. Okay. Forget the same taste thing. Pour me a whiskey. No, no. We've got whiskey, we've got tequila, we've got gin. How can we forget the same taste thing? Same taste as the real thing. Yeah. Yeah. Give me some fake whiskey. Let's do it. It notes that it's made with alkaline water. Okay. My hang up... What does that have to do with anything? I don't know. But my hang up on this is, I'm going to go get some cups while you're ranting.

17:19Okay. My hang up on this is, why would you call a brand imposter? I mean, like, you're making it seem like you say, yes, it's got the same taste, but then you're also implying that it's fake. Well, I mean, if we haven't tried this yet, so maybe I'll be eating these words, but if it literally did taste like whiskey, rum, tequila, or gin, then fine. You know, you could own that. Okay. You could lean in hard. And as soon as you said it, we all knew what it was. Right. You know, which I think is a benefit to the name. Because I mentioned, speaking of non-alcoholic beverages. If I saw it was spirits and it was named imposter, then I would assume that it's a non-alcoholic.

17:58Yes, you would assume. But I guess for me, it's concerning that. What does imposter mean? What's the definition of imposter? Maybe there's a negative connotation to it. I just don't like when brands use the word fake to describe themselves. I hate this. It doesn't matter if it tastes good. Get off my lawn. Maybe I'll be eating my words in like five seconds. This is their whiskey. We're starting with the hardest one. Whiskey is the most difficult one to replicate. Can I be part of this? It smells like alcohol. It smells a little root beer-y. It does, yeah. A lot of root beer on the nose. Yeah. It's becoming even more root beer-y on the nose.

18:43It smells like alcohol, though. Does it have the burn? It needs ice. No, it doesn't have the burn. No. I mean, the viscosity's not right. It's a little bit like group beer and whiskey. I'm going for the gin. Well, the gin should be the easiest one. I mean, it just tastes too thin. uh get like a root beer almost like a like cinnamon flavor to it something's happening because mike and i are both there's pepper in it they're hanging over here oh man no yeah i don't know what's going on here what's going on here can i try another one yes oh god maybe they're trying to create a burn with other things like pepper citric acid it seems like here no those green uh pepper cords i'll be i wish that's not what it is we're all the um the whiskey now granted none of this is cold so that would make no difference you don't drink whiskey cold cold whiskey i mean i don't know what what you're up to on the rocks what you don't like with keep your keep your jack daniels in the freezer my rum what's in it like is it de-alkalized or is it just a mixture i should have looked this beforehand so the ingredients for the uh whiskey are oh gosh alkaline water natural and artificial flavors citric acid caramel color glycerin potassium sorbate and sodium benzoate so preservatives and artificial colors that's what might as well kill you i mean same taste i think if used liberally they just they taste heavily diluted yeah this is like super diluted versions okay i mean i don't know i i really don't like to hate on brands but again from the beginning where it says imposter that's not a great thing for me and then you know you're more like mezcal the tequila you're putting a lot of artificial ingredients and preservatives into this thing and it's almost like the complete opposite of where trends are going for every category in every food and beverage every part of the food and beverage industry so there you go uh that's the gin it's uh that's the lid for the gin it tastes like uh it tastes like gum just like gum Like spearmint gum.

20:58Tequila tastes more like mezcal to me because it's a little smoky, but I didn't hate it. Yeah. Well, just for folks out there. I mean, all tequila technically is mezcal. Don't forget. That's true. Who are hopping onto this non-alc train.

21:15Consider what you're doing out there. All right. For the record, I disagree with Ray. I mean, I think I don't love all the ingredients in it. And I didn't like my coughing fit, but I did like the taste. Okay, so one out of three things there, Mike. All right. We're washing it down with some father's deer. Okay, some father's deer. What is that? It's just a can of water. I mean, it's kind of like, feels like the opposite of liquid death. But also the name father's deer sounds like a, I don't know, like a steakhouse you would take me to in some city for like a 10 p.m. reservation. Medicine steaks.

21:53Where they have no lights on in the place, you know? So when I see this, It's open Hagen. It's a two-toned colored can here. You got sort of a light beige and black. Yep. And it kind of looks like our dear colleague and friend, Aaron Ouellette, who is our design manager here at BevNet, came out with a brand from - Of his own water? He's based in Montana. He has his own new water brand called What's your father's deer? It would probably just be a can of blood if he did it. Oh my gosh. He is also known as the Great White Moose. The Great White Moose. No, he's a friend of animals. Yeah, he doesn't want to kill them.

22:28He doesn't want to kill them. But anyway, this is just water. No deer was harmed in the making of this. You know, it's interesting. I think we've seen, you know, we've obviously seen our share of brands that are trying to play off of the kind of dark, playful theme of liquid death. Freebird, for instance. Now we're sort of seeing products that are going in like the opposite direction of like, I guess if death ain't for you, then, you know, have a father's deer. I'm not following that one bit. It does look like the deer head is mounted on the wall. Well, that's another problem. Well, yeah. Okay.

23:06So the deer is dead is what you're saying. Well, I mean, I think the trees behind it say maybe it isn't, but still it does look like a mounted deer head. How about if you have an appreciation for taxidermy and you're thirsty? I mean, like Liquid Death really dove into like a subculture. Like maybe they're trying to like dive into hunters and people that are in nature all the time. Well, the question is, why would a hunter carry a can of water out into the forest? I'm not sure. The fine father's deer. Because he had an appreciation for taxidermy and he was thirsty. Sorry. No, Father's Deer, okay, look, it's a good-looking brand, and I think that's...

23:47It's clean-looking. Yeah, it's very clean. I'm sure it's clean because it's still sparkling water on the taste, that is, on the palate. It's still spring water. I mean, it can be friends with bear and beaver ginger beer, too. Look, we've got a whole forest here. Of animals. What is bear and beaver ginger beer? Bear and beaver ginger beer is another... Bear, an apostrophe, beaver? Bear and beaver. What? Bear and beaver. 192 calories of cane sugar west indies lime and real ginger right that's what it is with the is that a union jack flag in the background there that is a union jack flag in the background there nice so it's a british brand is what you're saying nope i think it's canadian obviously it's gonna taste awesome because it has how many grams of sugar right Oh, and ginger beer?

24:38In this one. Probably 50 in that 16-ounce can? Yep, 48 grams. Yeah. I mean, well, ginger beer typically has a lot of sugar in it. It is awesome. Nice. Drink the whole can. Ooh, no thanks. Jackie, what do you got out there? Because we're losing it. I don't have any beverages, but I have popcorn because popcorn is like my favorite snack of all time. Like I think I eat it every day. Wow. Just for our listeners out there, I think we've talked about this on the podcast before. Jackie's referring to popcorn. But because she's from Massachusetts, people out here call it popcorn. Popcorn, yeah. It's not for dogs.

25:16She's eating popcorn in a room. It's not for tiny baby dogs. Popcorn in the room. It is Purplesful, which is actually a brand that was at Nosh Live. And it's also kind of fun to say, like, Purplesful. That is a big bag. Purplesful, Purplesful. Vegan cheddar sounds tasty. That looks like a sack. It's huge. I'm going to eat it all today. It does look like a sack. That is a sack of popcorn. Why is it called Purple's Full? So it's kind of like a play on words because they are focused on a purpose. So 25 % of profits help kids in low-income communities. So they are, like, donating their profits to help the youth.

26:00And then it is using purple kernel, which is an ancient grain, which is supposed to be higher in antioxidants and lighter and fluffier, which is another, you know, take on popcorn because I feel like people already think of like popcorn as like a healthy, you can't unhear it once you hear it. It's so funny. We might have to gram this, Jackie. I'm sorry. It's okay. It's like one of the few things that I took. Is that like an East Coast thing? Or is it just me? I think it's a Jackie thing. No, it's definitely a Massachusetts thing. It's the same thing. Yes, it's the same thing as when people say rum.

26:38It's like, I walked into a room. Yeah, I say rum. I walked into a rum. Maybe it's Central Mass. Maybe it's Central Mass. Us Worcester folk. Yes, exactly. Worcester folk. Yeah. But it's really delicious. You're not from Worcester, are you? Like outskirts of Worcester. The Dirty Burg. Fitchburg. Oh, Fitchburg. Okay. Yeah, the Dirty Burg. But I went to school in Worcester. Worcester. The woo. The woo. Yes. Love the woo. But back to Purposeful. Back to Purposeful. This one's really tasty. It's their vegan cheddar. So it's plant-based. Gets all over your fingers like smart food. So it gives you that like true cheesy moment.

27:19Yeah. But yeah, really tasty stuff. Because we haven't had enough cheesy moments on the show today. Quick break. If this episode has you thinking about what's next in food and beverage, explore BevNet and Nosh Insider, our subscription platform with deeper insights from the BevNet team. Visit TASTERadio.com slash Insider to learn more. All right, let's get to our featured interview for this episode. As I mentioned at the top of the show, Marcin Malisco and Amit Singh are the co-founders of Mission Cocktails, a brand of premium, ready-to-serve cocktails that donates 5 % of gross revenue to local food banks.

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27:58Based in Orange County, California, Mission Cocktails launched in 2023 and markets several products, including a Manhattan, a Margarita, and a Mai Tai, all packaged in 375-milliliter glass bottles. The brand is sold in over 500 retail stores, including Gelson's, BevMo, Pavilions, and Whole Foods. I met up with Marcin and Ahmet at BevNet Live Winter 2024, a year after the co-founder's memorable presentation in the event's Cocktail Showdown competition. The pair discussed the origins of Mission Cocktails and how their focus on liquid to lips and persistent effort to connect with retail executives has helped the brand make significant strides over the past 12 months.

28:49Hey folks, it's Ray with Taste Radio. Right now, I'm honored to be sitting down with Marcin Molisco and Amit Singh, the co-founders of Mission Craft Cocktails. Marcin, how are you? Doing fantastic, Ray, and thank you so much for having us. We're super excited for the second year to be at BevNet Live. Absolutely. Ahmed, how are you doing? Absolutely fantastic. Love being here again. Comes full circle for us and really appreciate the time. As you have both alluded to, you were pretty new last year, joining us as contestants for our Cocktail Showdown competition. You guys really opened some eyes with what you're doing.

29:24Opened up some hearts too, because your brand is all about the mission. Ahmed, if you can talk about the origins of the brand and why you guys do what you do. Yeah, I think there's the origin of the brand and the origin of the product. You know, we really started with a product story first and the desire to create a better cocktail. And it really goes back to the fact that Marcin and myself are best friends and we really enjoyed cocktail culture, fine dining restaurants and really enjoyed great cocktails. COVID hit and like many others, that scene ceased to exist. So we tried to create our own.

29:57So we, like most people, went to YouTube to find out how we make great cocktails. And that was an incredible disaster. We absolutely learned that we love cocktails, but we're terrible at making them. Aside from the fact that our wives hated us for destroying their kitchens, bringing in hundreds of dollars with raw materials to make two lousy cocktails was not for us. So we decided to take the easy way out. We got handmade or canned cocktails from the store, and they weren't really hitting our taste profile. So we kind of leveled up. You know, the more you spend, the better it's supposed to get.

30:32So we ended up getting probably 60, 70, 80 different cocktails, you know, shipped to us. Kept trying them over and over and over again and came to the same conclusion that nothing really tasted the same as it did out of a cocktail shaker. So, you know, we like to say at 1 a.m. after trying a lot of cocktails, you know, the reason we got into the product side of it was, you know, 50 % was just drunkenness. 50 % was bravado. And the other 50%, now we're at 150 % because we're drunk, was just naivety about the business. And then the next morning, we kind of shook off the hangover, looked at each other and said, you know what, I think we still can do better.

31:10And the purpose at that point was, but why? Right? we probably can make a better cocktail, but why do we want to do it? And the world was really hurting. COVID was in full bloom. Food inflation was through the roof. And we said, hey, how do we design something that takes our passion for cocktails and our real desire to give back and our entrepreneurial spirit and expertise and combine them all to make a company? And that's where the mission was truly born. So the mission behind Mission Craft Cocktails is we give 5 % back of all of our revenues, not fictitious profits, to local food banks. And in the year plus that we've been in business, we're now at 84 ,000 meals delivered to California families in need, because that's where we're really focused right now.

31:52Outstanding. Originally, when you said we took the easy way out, I thought you meant the easy way out was to start a beverage company, which it most certainly is not. Definitely the exact opposite of easy. Totally, totally. I was reading an article about you guys, and the last part of the article featured a quote that one of you gave, and then one of you followed up on. And it was, the best cocktail doesn't just taste good. And then, Marce, that was you, Ahmed. And Marce followed up by saying, it does good. But in order to do well for our community, in order to be charitable as a business, the business has to do really, really well.

32:34And this is something I come across a lot where people have really good intentions, want to do something that is from the heart, but can't because their business or their brand isn't really doing what it's supposed to do, which is make money. I mean, let's be real. You know, these businesses are about making money. So how do you align that to you, Marcin? How do you think about we've got to create a great business first and foremost, and then also do exactly what Amit was talking about, which is 5 % of all revenues and not fictitious profits, which I love the way you put that, by the way. Yeah, it's a great question.

33:09And if you look at anyone with a business background or entrepreneur or MBA, the way we started the business is complete opposite to anyone that would give advice to. So we looked at, first and foremost, our passion desire to make a better cocktail. scale and me and Ahmed just committed, we're going to go down this journey and we're going to figure out at a certain point with economies of scale, we're going to get to be able to create a sustainable and profitable business. And we just always had that confidence and just that attitude that we will figure it out. Right. And then of course, looking at the market, us getting into certain stores and like realizing the business, we knew we had to get to a certain number of volume for us to get to a sustainable point.

33:50So again, it all comes down to sales, You can have the best heart and want to create the best impact in the world. But unless you have sales in a community that loves your product and rebuys the repurchases and has that high velocity, you're not going to be able to make any impact. So, again, for us, it started as an amazing cocktail and then looking at how do we get the highest volume in all of our stores. And that really just comes down to where we currently are at. Totally. I think if I were a retail buyer, I myself would be most interested in the liquid itself because I know my customers are coming in there looking for a great cocktail, just like you guys were in 2021.

34:29But then there are some other retail buyers that would say, you know what? I really love your founder story. I really love the hustle that you guys have shown. Some others would say, you know what? This mission is really gonna resonate with our consumers. The packaging might be something that really gets to some folks. What really rises to the top, Marcin? I mean, obviously, I'm sure you can say it's all of those four things. But is there one thing that retail buyers have really took to when they're bringing your product on? Yeah, I think it's a great question. And first and foremost, if you don't have an amazing quality product, no matter how amazing of a story or give back or angle that you have as part of your product, it's not going to be the reason they're going to bring you in.

35:07there has to be a consumer demand for in our category consumers that want to have a better option than what's on the current shelves right so for one it starts with the quality as we took two and a half years in r &d to create something that we will be proud to serve to our family and friends and we didn't cut corners or time and that's why it took us so long because we wanted to create a cocktail that tastes like a cocktail that came out of a shaker with fresh real juices real ingredients. The second piece is, I think me and Ahmed not coming from the space and just having so much passion in the business is when we do meet the buyers and we do share what we've done in the past with other stores and retailers is the commitment for a long-term partnership that we don't just want to get on the shelves.

35:50We're going to help them bring in a community of people that are going to fall in love with Mission Craft Cocktails due to the quality of the drinks, but also our gift back. So we've been huge proponent, our entire strategy and the business side has been liquid to lip. So we've done hundreds of tastings a month consistently where we're introducing the brand, sharing the story. And then when you have an amazing quality cocktail, you know, it's an indulgence to be able to feel good a little bit after the quality cocktail that you have is being able to have that proportion of every bottle that it sells, we fund one meal.

36:22So for anything, when you look at the four rankings, it's the product, I think it's us and the passion and commitment that we just do not want to get on the shelves. We will support whether it's social, influencers, Hastings, you know, being able to drive that consumer traffic. And then the third is, you know, the give back. I think all three of those are the trifecta to what really gave us the success that we're having now. And, you know, looking back at full circle, when we first came into BevNet of last year, we were in 20 doors, self-distributed, bought a Sprinter van, didn't think we were going to need distributors.

36:55again, being naive and not knowing anything in the business to them be here is such a privilege to, again, reconnect with so many people, give them some updates to where we're at. But we've had, you know, amazing knowledge. And we believe that BevNet has been instrumental to our journey. We're now in about 500 doors. We sign up with Reyes Distribution for all of California. We're in Whole Foods, Gelson's, Pavilions, Total Wine, BevMo, and, you know, have a lot of amazing news coming in 2025 and expansion to, you know, Hawaii and some other states in the new year. That's so exciting. And congratulations on all the wins that you've experienced this year.

37:34I think about great taste and I think about how, for the most part, it's subjective, right? Especially in cocktails, because for some people, you know, they'll go to their favorite bar and their bartender makes them a very specific type of cocktail. They go to another bar, they might get a different kind a cocktail, depending on the ingredients or the formulation or just how certain things are measured and mixed. When it comes to your cocktails, I think consistency is extremely important, number one, but also the fact that you can appeal to a pretty broad set of consumers. How did you think about the formulation, Ahmed?

38:07Who did you work with? And how do you get to that point where the flavors are something that could be universally loved or at least liked by a number of cocktail consumers? I love that question because that implies that me and Marston ourselves have great taste because the drinks were really designed for us. Well, tangent on that, because Marston and I yesterday, last night, had sort of a secret cocktail date, actually, where we were in the bowels of the hotel here sharing cocktails that we probably weren't. It's a long story. But anyway, and I thought I didn't tell Ahmed about that. So you kind of just put me under the bus here.

38:45Basically, we were surrounded by hotel, cafeteria trays and old food. It was a very weird experience, but still very cool. And I had a cocktail I wanted to share with Morrison, one that I particularly liked, but he was like, I'm not so sure about this. I don't particularly, you know, think this is as good as it was presented. Then I went and cried in a corner. No, but again, I think this just goes to show you don't necessarily always agree with what people will say about a particular cocktail. So again, I interrupted you, but you know, it's an important point, I think. Yeah, this late night meetup, clearly an important point that I was not included on.

39:23So I'm a little hurt. But seeing past that into your question, like I said, we really did design them all for ourselves. We did work with a couple of mixologists to help us kind of hone the recipes. So we did spend a lot of time in R &D, which was probably the best part of starting this company, was the R &D process. So, you know, every drink we made, and we've obviously, we've got seven. So truthfully, if people don't like one, there's probably one that does fit their palate. But it was really working through that R &D process. And then, you know, surprisingly for the first five that we developed, we didn't use a lot of consumer taste groups, right?

40:00Or really, you know, we loved them. Some of our friends, if you call that a taste group, loved them. And only on the second batch where we designed the espresso martini and the pineapple jalapeno margarita, we really did bring in some people because heat specifically on the pineapple jalapeno is a very relative thing. So, you know, heat hits me differently than someone else. So we probably had about 30 different iterations of heat levels and sweet levels on the pineapple to really figure out where the majority of people would lie. and surprisingly they lied within you know plus or minus 10 percent of where me and marston ended up so you know or maybe we just got a really middle of the road palette but we were pretty pretty spot on there and we've really started to use taste groups a bit more in our development how much does the influence of say a retail buyer impacts new product development maybe flavor iteration i would think that it is really important let's say you go to whole foods and they're like hey you know, and we're talking about Taylor from Whole Foods, just a tremendous, tremendous guy in this business and one of the most respected and influential folks in this business.

41:06If he said, you know, I like your Manhattan, but maybe you should dial up the rye. How much do you take that into account when you are saying making the next batch of Manhattans? A great question. And I would say because we're small batch and we can change things as we go, it's way more influential than people really think, right? So a lot of people will send in their comments to larger brands and corporations saying, I want you to change this and probably have no hope at all of that happening because we are small batch. We really do listen and we can alter things, you know, minutely. And shout out to Taylor, who is absolutely a champion for us.

41:41And I think the industry, there's someone in the world that truly loves his job and loves helping people. And we're such benefactors of his love. So we really appreciate that. Yeah. And if Taylor told us to create something, remove something, we would do it within 30 seconds. So So that much respect for Taylor. Yeah, well, he's really helpful and he's a great voice and advocate for this industry. Sometimes it's not as easy. Actually, it's almost never as easy to get ahold of a retail buyer and to be able to bend their ear in this business. It's just tough because there's just so many brands and people only have so much time.

42:14So if you're not a Taylor, if you're say a total wine buyer or a buyer from Ralph's or Gelson's, what's been your best approach? What's been the most effective approach getting to talk to them and hopefully getting your product in store. I'm only laughing at that because we have the most untraditional approach to getting buyers. I think of anything, not being from the space, you know, we didn't know what was acceptable on how to approach buyers and what's not acceptable. So I'm going to pass it over to Mars and answer this question because he really does lead the charge here. But I thought I'd at least preface it by saying that, yeah, we didn't know we weren't supposed to do the things we did.

42:52Okay. Well, that's true entrepreneurship right there, right? Yeah. Yeah. It's funny because month one, when we had our first little tiny order of some of our bottles and very, very, very minimal cases, we thought it's a great idea. And like what's acceptable. Hey, we're a new brand. we want to introduce ourselves that you can cold call and email executives at these large grocery chains the buyers the buyers bosses and you know very early on i think they were very nice to us and kind of let it slide a couple of times but at least for us when we look back a year and a half ago when we first started the outreach to all of the grocery chains and the total wine bevmo is they got to hear about missions.

43:38So now it was always that follow-up six months later, hey, this is what we've done here. This is the consumer asking here. We've done X amount of events that they keep on asking to go, for example, Whole Foods, like we're getting a lot of tractions for your consumers. And then six months later, when you have maybe one chain that took a chance on you and you have data and you can show the velocity and you're beating out the competition, then you're starting to now have a chance of, wait a minute, maybe I'm recognizing that brand or I've seen it again and there's another email. So yeah, not knowing the business and then, you know, becoming, I would say a friend of Taylor now as, you know, Whole Foods has been a fantastic partner for us in our journey and Taylor has been instrumental for that as well.

44:23We're starting to understand like the guidelines and the rules and what's the respectful way of getting in front of a buyer, but not being from the space, I think we're naive. I just wanted to add one, just because obviously people in the industry are listening to this and add some relative numbers. Our first production run was 600 cases. And we are now - I didn't want to embarrass myself. I know, I know you didn't want to say it. I just wanted to say a very low number. But it was 600 cases. And here we are literally sending emails to these SVPs of AVP group and to Whole Foods. And if anyone even actually took us seriously or took us up on our offer, you know, we didn't even know how screwed we would have been, right?

45:03Someone like, wow, that's a fantastic margarita. We want you in all stores. We didn't even know what to do with that. Didn't even know you had to be UPC compliant and anything else. So we had 600 cases and we're knocking on the doors and sending emails, cold called emails to the CEOs and SVPs of the large multinational groceries. How'd you get your email addresses? I call Marston CIA because sometimes you give him a bit of a, you know, give him the sense of something. And it's, I think it's his old gamer skill set, but I've never seen a guy keystroke faster than him in my entire life. And two hours later, he's broken through the code and he's got email addresses and, and mobile phone numbers for people.

45:43I don't know how he does that. I don't think he's ever going to give it up. I hopefully it's legal, but if not, well, it sounds like you got a positive response from some, if not all of the people that you emailed. Were you leading with mission? it sounds like you were in those emails, that is. Yeah, absolutely. And I think it was more of an introductory, we're a new brand. We believe that this is something that would be great and a great fit for your consumers. But again, we knew nothing about the space. So thankfully no one responded back to the emails. But I think as we got more confident and we started understanding the business and being in the business and from the small independent chains to, you know, Total Wine was one of the first retailers that gave us a shot.

46:20And then it was BevMo and then Pavilion, in Whole Foods, Gelson's, you know, you have this data that even though they gave you maybe no attention or they just saw you email come by, now you can actually say, hey, here's what we're doing in the areas that you're in. We believe we could do the same at your store and then have that confidence. Yeah. One of the things that the emails did do for us is we really did lead with the mission, right? So it was all about the mission for us and it was all about our give back. And the one thing we found out really quickly, and it almost answers back your earlier question of people didn't really care.

46:53You know what? In this business, product is king. So until people tried our product and we really got into that buying cycle, did the mission become at least more important as a secondary ancillary point of, okay, product's great, but now we understand how these guys will actually build their community, right? They'll build a community with mission-minded people who appreciate the give back and appreciate what we're doing. And God bless, they've got amazing liquid as well. Someone once told me, getting on shelf is the easy part. Staying on shelf is the tough part. You guys have got a good foundation now, 500 stores, multiple retailers, you're looking to expand, but how are you convincing?

47:32Well, I mean, you would think it's sales, right? Like the proof is in the pudding. If your product selling, it's great. If it's not, you're going to be pulled off shelf. So how do you stay on shelf? Going back to the basic strategy that we've always had is liquid to lips. So when we got into the business every shiny event every shiny opportunity we would jump and say yes to until we realize when we have a consumer that's in the store where they want to shop and they are experiencing a new brand and in a three-hour tastings we're going through 25 30 40 50 60 bottles that's incredible for us because now we have an opportunity to share our story allow them to try the product have them take the product to share with their loved ones or for themselves multiple times and And I think a really key factor for us is no one could share the story like us.

48:21And then having an agency do that would disconnect our story and being able to kind of give the training and expertise that we would like to have portrayed to the consumers. So we built an in-house tasting organization for Mission Craft Cocktails that knows our story, passionate about our product, loves our product. And we've had, you know, tremendous success. So for us, it's liquid to lips with tastings, looking at pricing strategy promo for that first trial for those individuals. And I also think it's just creating a price where the consumer is at. Because when we first started, to give an idea, Ray, we were$19.99.

48:57We said real juices, real ingredients, locally sourced. We give back 5 % and quickly we learned that's not where the market is at. So we continue just going down. And as we hit economies of scale, now we're, you know, a few bucks more than some of the lowest ones. And then we're still not the highest one. And you're a 375 milliliter bottle, glass bottle. So just for context, now your price point is probably like 17 or something? No, anywhere from$12.99 to$13.99. Oh, wow. Okay. Yeah. Very affordable. I'm going back to you created a plan for tasting. I'm understanding this is sort of a playbook or a blueprint for how you want anyone to talk to people when they're sampling mission.

49:35And I think that's so important and so brilliant because you do want to speak with the same voice. And I think sometimes I'll go to a store and I'll see someone tasting something and you can definitely tell they're just pulled off the street. They do not care. But, you know, that's kind of inherent to the business, though, isn't it? I mean, sometimes to be able to find someone, you know, 20 bucks for three hours and they sit there and they're just not going to be very motivated. $60 is not a lot of money. So how do you get people motivated beyond the playbook itself? Yeah, I think as Marcin mentioned, right, we can't be at every one of these tastings.

50:07And just relatively speaking, we've got over 100 retail tastings this month, right? And for us, it is a representation of our brand, right? That person holding the bottle is important as the bottle itself and the liquid in the bottle because it's the only voice our brand is going to have. So, you know, we do have our in-house brand ambassadors, we train them all personally, we make sure they've got our salient points, right? So if you've got a tasting, you've got literally three seconds to pull that person walking by you. So most brand ambassadors in the agency will let that person walk by them until someone goes, oh, what do you got?

50:39So we're already teaching them, okay, you've literally got to hook and fish people in the aisle. And then how to speak to our brand and what are the three most important parts. It's definitely the quality of contents of the bottle. It's the give back. It's the local. It's made in California. And those are kind of the hierarchy of points we give them. So we train them all to have literally how to hook. Here's your 12-second pitch while you're pouring. This is how you have to pour it. It's got to be over ice. This is what you got to wear. So we are really, really hands-on with all of our brand ambassadors for as long as we can.

51:10Obviously, as we continue to scale and we're outside of California and other states, we want to take that same mentality, even though we know it's going to be harder to do. But for us, they are our lifeline. And that is where we get, you know, all of our marketing dollars are spent there, is really liquid to lips and focused in store. It's the greatest ROI. As Marcin mentioned, you know, we didn't even know, not being from the industry, what success was, right? So we'd go in and we'd sell 24 bottles. We're like, oh, okay, wow. You know, last time we sold 36. And then we start talking to a lot of retailers and they're like, okay, 12 bottles is absolutely fantastic.

51:45And so we figured out, however we're doing it clearly is working. and we're just passing that knowledge on to our brand ambassadors. Well, I think the through line and everything that you guys do has been lead with passion and lead with the vision that we set out for this brand. And I love, I love that's kind of where we're at right now because a year ago we heard this up on stage at BevNet Live. And sometimes it's difficult. Sometimes, you know, we hear people and talk about what they want to do with their brand and it doesn't necessarily work. but you guys are doing such a great job. And, you know, between really, really fighting for what you believe in, making sure you're always speaking in the same voice and a great premium product.

52:27I mean, I think listeners can understand that, you know what, that's a great blueprint for winning. So thank you both so much for taking the time. Amit, Marcin, I'm so excited for you guys and for the brand and can't wait to do this again pretty soon. Thank you so much for having us, Ray. Truly, we're so grateful. We're so happy to be here. And it's been another amazing, above that life. Yeah, really, truly appreciate the support. And for all your listeners, at Mission Cocktails, our Instagram handle, and buy it online, deliver it to your door and find out how great our cocktails are. We talk about how great your cocktails are on the podcast often.

53:02So I think people hopefully know, but if they don't, now they do. Thank you. Thank you. Thank you. That brings us to the end of this episode of Taste Radio. Thank you so much for listening. Taste Radio is a production of BevNet.com Incorporated. Our audio engineer for Taste Radio is Joe Cratchy. Our technical director is Joshua Pratt. And our video editor is Ryan Galang. Our social marketing manager is Amanda Smirlinski. And our designer is Amanda Huang. 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.

53:43Check us out on Instagram. Our handle is BevNetTasteRadio. As always, for questions, comments, ideas for future podcasts, please send us an email to ask at tasteradio.com. On behalf of the entire Taste Radio team, thank you for listening, and we'll talk to you next time.

From the publisher

What lessons can we extract from the acquisition of Simple Mills and majority sale of Spindrift, valued at nearly $1.5 billion combined? The hosts talk about what these better-for-you brands did right and what made them attractive to strategic companies and investors.

We also sit down with Marcin Malyszko and Amit Singh, the co-founders of Mission Cocktails, a purpose-driven brand of premium ready-to-serve bottled cocktails.

Show notes:

0:25: Las Diego. Big(ish) Food Was Listening. Neighbor's Big Pay Day. Hopped Up. Imposters, Deer & Bears. – John and Ray are heading west. Are you as well? Let them know. Nearly a year after Ray's rant, Simple Mills got its flowers. So did Spindrift, but we still don't have a vending machine. We're happy that hop-infused water is finally getting its due (at least from the New York Times), but less pleased with an oddly-named brand of non-alcoholic spirits. John highlights an animal-themed water, and Mike does the same, but for a ginger beer, before Jacqui praises purple snacks.

27:27: Interview: Marcin Malyszko & Amit Singh, Co-Founders, Mission Cocktails – A brand of premium ready-to-serve cocktails that donates 5% of gross revenue to local food banks, Mission Cocktails launched in 2023 and markets several products, including a Manhattan, a Margarita and a Mai Tai, all packaged in 375 mL glass bottles. The brand is sold in over 500 retail stores, including Gelson's, BevMo, Pavilions and Whole Foods. Marcin and Amit discuss the origins of Mission Cocktails and how their focus on "liquid to lips" and persistent effort to connect with retail executives has helped the brand make significant strides over the past 12 months. 

Brands in this episode: Mission Cocktails, Simple Mills, Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, Tastykake, Samuel Adams, Peet's Coffee, Stirrings, Partake Brewing, Athletic Brewing Co., Lacroix, HopLark, Hop Wtr, Imposter Beverages, Father's Deer, Liquid Death, Bear & Beaver, Purplesful Snacks

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