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DTC POD
#326 - Disruptive Sips: Building Iconic Beverage Brands from Scratch with Christopher Hunter
Speaker
Blaine Bolus
Speaker
Christopher Hunter
00:00 Exciting launch for D2C community on Slack. 03:11 Opportunity led me to a career in alcohol.
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“This is a space exclusively for D two C founders and operators to connect, share ideas, ask questions and support each other.”
“Plus the whole thing is powered by AI so your teams can spend less time on tedious, time consuming stuff and more time on developing relationships.”
“I was starting to invest and better for you food and beverage brands, and there was this startup company called Raw Nature five in Chicago, and these two entrepreneurs that I invested in with some other people, and they were in about 20 stores around the Chicago area. And it was really good proof of concept.”
“Like I mentioned, we were also doing a lot of in store demos, because in food or beverage, like, if you believe your product is good and people are going to like it, then you have to get them to taste it, right? And in the beverage world, they call it liquid to lips. So we were getting liquid to lips no matter what we had to do. And that worked. And our velocities were really high.”
“And so we had this great selling story to the point where other retailers started to reach out to us. So we got reached out to by Wegmans, which is a great retailer, but you would call them a specialty retailer, right? So that wasn't really our plan for year if I grew up there. And so I was a little bit hesitant about launching there, but we had an investor and a board member, a guy named Bill Moses, who started Kavita and later sold that to Pepsi.”
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Full transcript
Plus the whole thing is powered by AI so your teams can spend less time on tedious, time consuming stuff and more time on developing relationships. Also, no one likes a clunky platform that takes months to onboard onto. But getting set up on saleshub is really quick and easy. It's free to get started. The pricing will scale with your business, and with more than 1300 integrations and add ons you can tune it to your exact needs. Visit HubSpot.com sales to start selling with sales hub what is going on? DTC pod today we have the pleasure being joined by Chris Hunter, who is the co founder and CEO of Koya. But before that, you might be familiar with Chris because he was also one of the founders of popular drink for Loco. So, Chris, I'll let you kick us off.
Why don't you tell us a little bit about your background in the consumer products space, how you got involved, how you started for a loco, and then maybe we can move over into Koya and what you guys are building there.
Yeah, sounds great. Thanks for having me. Appreciate you inviting me on. Let's see, I guess. I guess my journey started. I grew up in Ohio and in Youngstown, Ohio, if you know anything about that. It's a blue collar steel mill town. And so I grew up in a lower middle class family.
No one was really entrepreneurs. I had one uncle who owned a company, so it was kind of cool to see him kind of pave his own way. But I always realized I wanted to do my own thing. Whether I was just like a look, I was a good kid, but whether I was rebellious and I didn't like being told what to do. So I was like, I'm just always going to start, start my own thing. Plus, I wanted to have the biggest opportunity to create the most money possible, you know? But I didn't know what that meant. And so I went to Ohio State. After college, I moved to Chicago.
I had no job. I didn't know what I was going to do was racking up debt, and I took whatever job I could find. I started working in a hail damage, like, storm chasing company, and it paid the bills. I realized that wasn't going to be long in that career because I was afraid of heights. So it didn't work out that well. But during that time, I just started contacting everybody I could think of, and, and I was like, what job do I want to do? Like, what would I, what would my skills be good at, right? I'm a pretty social guy. I'm pretty outgoing. I did promotions for nightclubs and bars in college and around the country around that time.
And so I had met somebody in the alcohol industry, and I just bugged the hell out of them until they let me stop, start working for them. And so that's how I cut my teeth in alcohol and in beverage. And it wasn't really by design. It was just like, this is the opportunity. And I realized I was good at it and I liked it, and there were a lot of social benefits to working in that industry. And so after two years, I was just trying to think of what I wanted to do, and I had this inspiration. I was selling this cherry flavored vodka that was often mixed with Red Bull and cherry bombs. I was 24 at the time, you know, very made sense to me.
Right. I was the Courtney. And so I was driving around. Well, like, part of my job was I would drive around to bars and basically pitch them this vodka. And then there was this, like, Red Bull knockoff product that I had as well. And I was kind of showing them how to make a cherry bomb. And it just dawned on me. I was like, why don't we have a premixed alcoholic energy drink? And so that's what sparked the idea.
I caught up my two partners separately and asked them if they were interested, and they said, yeah, why not? And we gave it a shot. And, and that was the birth of what became four Loko. It didn't start. As for loco, through some iterations and failures, we, we innovated and created for Loko. But, um, look, it was a lot of fun. It was a rocket ship ride. We clearly learned a lot about crisis management during that process. And, and looking back I mean it was the best, you know, learning, growth experience I could ever have.
I wasn't uh, I didn't go to grad school. I wasn't like trained as a, as a leader or whatever in that way. We were just winging it, or at least I was. And um, I think it worked for the most part. And then um, after we navigated that whole kind of government regulation issue, we stabilized the company. I really like the focus on innovation and things that are near and dear to me. And so uh, we created this brand called not your father's root beer, which started this hard soda movement. We sold that to Pabst and, and I was a little older at that point.
I was in my mid thirties, married, had children. My second son was born dairy intolerant. My wife is a nutritionalist. Shes very like adamant about what makes it in our house. And so we started, you know, trying to figure out what was going on with our son. You could hear his stomach rumbling and we realized he was dairy intolerant. So we became a dairy free household, which ultimately led to coia, which is, you know, plant based, dairy free, uh, protein drinks. So that's the quick version that, that brought us up to this point.
Awesome. So we're going to have a whole bunch to cover here. Um, but yeah, let's, let's jump into Coia. And then I definitely want to revisit some of the lessons that we learned along the way from for Loko. So, um, you know, just to set the stage for the listeners, uh, why don't you tell us in terms of like, like what's your scale, uh, in terms of Coia right now, in terms of sales, where is your product sold? Like just, just set the table for us, if you will.
Yeah. So Koia is currently available in about 30,000 retail locations across the country. We're primarily retail focused. We've dabbled in d two c a little bit. We could talk about that in a minute. We do over 100 million in retail sales, so it's reached a really nice point. It's still growing. We're unlocking a couple key partners.
We just launched in Starbucks nationwide at the end of last year, but we're available everywhere from Whole Foods to 711 across the country. So that's been really exciting. And again, primarily retail focused.
Yeah. And one thing that I'd love to talk about is obviously you have a pedigree from working in the beverage sort of industry for a while now, but I'd love if you could tell us a little bit about the trajectory of the business in terms of going from the first kind of time you had the idea you've got a problem to solve. Walk me through what the product, product development cycle looked like. And then how quickly did you scale? Because like you're saying right now, you've got tons of the biggest, biggest retailers across the US. But was this a quick thing where you had a couple turns on product and then boom, you were instantly everywhere? Or was it a slower sort of grind?
Yeah. So going back to the original kind of like involvement with this company. So as I was transitioning out of actively managing fusion projects, which is the parent company of, of, for Loko, I was starting to invest and better for you food and beverage brands, and there was this startup company called Raw Nature five in Chicago, and these two entrepreneurs that I invested in with some other people, and they were in about 20 stores around the Chicago area. And it was really good proof of concept. I mean, the name was bad, right? Raw Nature five was not really a good name. I don't think the packaging was like one of the co founders had created himself. But, but listen, it didn't matter. He got the product out and it was working.
And I think why it was working was it just tasted really good. So all these health attributes are great, but if it doesn't taste good, people just aren't going to drink it. So for me, that was why I invested in the company. Now, fast forward a few months, and the company was on the verge of insolvency. There were a bunch of problems with it. It was being manufactured in a commercial kitchen, self distributed, a very unscalable model. But I was looking for something to do. And this was interesting to me.
I mean, it made sense for me and for my lifestyle, for my family. And so I went to those partners and I said, look, I'll invest the money to essentially create a new company, say what we have here, but create a new company. We're going to pivot. I'm going to be the co founder and CEO, I'm going to run it. And they were totally cool with that. And so we launched. So we pulled that original product off the market in, let's call it, I think it was 2015, and it took some months to figure out how to create a formula that was scalable. And by scalable, what I mean is we couldn't produce it in a commercial kitchen where we or our own team are doing it.
It has to go out to a co manufacturer, can be produced at scale, right? That was the first criteria. So that's what we focused on. We were burning cash over those months. It was not fun, but that was the first iteration of the product. The next thing that I felt was required is I was new to the non alk industry. I had worked in the alcohol industry. It's a little bit different in terms of structure. It's called a three tier system where there's distributors, the store, and then the end consumer with non algae.
I could sell directly, directly to the consumer if I wanted to. Now Coia is a perishable beverage, so it has to be cold at all times. That makes it a little bit difficult to do, to see. But anyways, my point was we had to have some support that legitimized us within the industry. So we got this major broker on board with us. He invested in the company, they represented us nationally and then they helped us pitch total foods. And so we were fortunate that I guess by the second iteration of the product, from raw nature five to Coia, we were able to go national and whole Foods. So it was a pretty big launch, which is amazing, but it's also expensive and a bit scary, right, because this is it.
Like, if you don't work at Whole Foods after you got a national launch, nobody's bringing you in, it's over, right? So. So we had to go hardcore at making sure the product worked. And that was expensive and inefficient. But we did demos, we had merchandising teams on board, whatever it may be. And so it quickly proved out that it, that it made sense and we continued to grow through flavor innovation. So we launched with three flavors. We now currently have 14 flavors on the shelf at Whole Foods. So anchoring into that one key partnership was really important because it gave us the story to go pitch other retailers.
So we were in 400 stores the first year. We were in, let's call it 1200 stores the second year. We were in maybe 3000 the next year. So it scaled over time until we started to gain these big distribution wins and partnerships with places like Publix and Kroger. And you know, those are thousands of doors at a time. And then most recently Starbucks with 9000 doors. So it took all of seven years to get to 30,000 points of distribution. But I tell you that those early days are so invigorating because everything is a win, man.
It's like at one store is a win, right? One chain is a huge win. One point in velocity or acv is a huge win. So, uh, but it takes time.
Yeah, absolutely. Um, no that's. That's super interesting. I'd love to, like, kind of double click a little bit, uh, on what you talked about with the Whole Foods partnership. What did it take to launch with them? You said 30 doors or 30 stores to. To get started. But in terms of the, you know, the purchase order that you needed to put in, I know you said you were trying to scale. You were going with three flavors to start with, but from, like, a capital investment, like, what did it take to say, okay, hey, guys, we've got whole Foods ready to go.
What does it now take to, like, deliver on that order? I guess from an inventory perspective and an operational perspective, what needed to happen.
Yeah. So when we funded the company, we put a half million into it, me and two other guys, when I jumped in as a co founder to pivot this thing, and that was the capital we had to kind of launch with. And we ate it up pretty quickly from inventory. And unfortunately for us, our first production run was sitting in our warehouse waiting to ship the distributor services. Whole Foods is called unfi. Their trucks were literally on the way to pick it up. And my. My partner at that time called me, and he said, man, some of the stuff is spoiled.
It was. It was tasting bad, right? I don't. It was never a health concern, so we had to put those trucks on hold. We were standing in a warehouse for 6 hours that day, ripping open boxes to assess how much was spoiled. Was this a one off? Was this all of it? Was it, like, could we figure out how to control it? And it sounds like a long process, but I quickly knew, like, we couldn't put the product out right, so we had to scrap an entire first production run. Luckily, we had loaded up on some of the key ingredients with enough inventory that we could produce quickly, so we. We troubleshooted as best we could. We produced it again, and within the next week, we shipped it out.
Now, the reason that's relevant is because retailers do reset periods, and at whole foods at that time, they were turning over their shelves in, like, a week or two. So if you were not in within two weeks, you would be in all of their stores. Well, we missed that window. So, luckily, whole Foods let us still launch, but it wasn't smooth, and so we had to then spend money on merchandisers to go out and make sure it actually made it to the shelf. So it became very expensive to the point where within six months, I was out raising money again. It's expensive. Now, I will say it's nice to work with big partners the AR is golden in most senses. They're paying it back.
There are a lot of deductions that we had to work through, but it wasn't like they were going to stiff us. They weren't some small retailer down the street that wasn't going to pay sweet.
And then from there, what, what did it look like? Like, tell me about how the initial launch went with Whole Foods and then how long before you were like, okay, we've got proof of concept. We, you know, people are happy with how things are going at the whole foods, and now we can start to scale out to other retailers. What was that like? Was it a year? Was it a couple months? Was it a couple years? Like, how long did it take to go from Whole foods to then saying, okay, we've got this sorted, now we can start even scaling beyond.
So our plan initially was, and it was very common at that time, was to get into the natural segment so the whole foods, the sprouts, whatever it may be of the world, and to really solidify your position there. And then maybe a year to go to the specialty retailers, like the Wegmans of the world or whatever, and then maybe year three, go to the conventional retailers, like Publix or Kroger or whatever. And within the first six months, that plan blew up in the best way possible. We were very hands on at Whole Foods. Like I mentioned, we were also doing a lot of in store demos, because in beverage in particular, I think in food or beverage, like, if you believe your product is good and people are going to like it, then you have to get them to taste it, right? And in the beverage world, they call it liquid to lips. So we were getting liquid to lips no matter what we had to do. And that worked. And our velocities were really high.
And so we had this great selling story to the point where other retailers started to reach out to us. So we got reached out to by Wegmans, which is a great retailer, but you would call them a specialty retailer, right? So that wasn't really our plan for year one. It's pretty hard to say no to these really good retailers, you know? So we launched in Wegmans, I want to say, within six months. And then the third retailer we launched in was a very traditional retailer called Giant Eagle. And like I said, I grew up in Ohio. That was kind of our hometown retailer. There was really no organic or better for you section, at least when I grew up there. And so I was a little bit hesitant about launching there, but we had an investor and a board member, a guy named Bill Moses, who started Kavita and later sold that to Pepsi.
And he was close with them, and he said, I'm setting up a meeting. And so we went and had the meeting, and they said, look, Bill has never steered us wrong. This seems like a good idea. We'll give it a try. And I was holding my breath. I was a little bit worried about it at Giant Eagle, but luckily it worked really well there as well, and still does to this day. And so my point in saying all of that was we had this very pragmatic plan of expansion that would take three, four years. And within the first year, we blew it up.
The good side of that was we had a proof point in every channel of retail, or most channels of retail, that it would work. And so now it gave us a broader, like, hunting base. We could go after all natural retailers, all specialty retailers, all conventional retailers, with a story to show how it worked and. And that it would work in their retailer as well.
Awesome. And I'd love if you can talk to us a little bit about supply chain and the operations. Were you just manufactured? Did you have one single manufacturer who now is distributing across the US? Or how did you think about scaling for scaling out the supply chain and making sure shipping, delivery and orders and everything were syncing up?
Yeah. So we brought in a couple of people very early that could help us with that. We had this amazing woman, her name's Nid, who joined our company with a food science and formulation background. And she ultimately wanted to expand into operations. And so we were lucky because she helped us troubleshoot that early batch that spoiled. And then she handled ops. We had. There was one co manufacturer that we worked with out in Anaheim, and that's who.
That was our sole source for a while. It's not ideal from a location standpoint, to ship to the east coast. About 60% of our sales are coming from there. But there weren't many people who could produce what we make, which is a low acid. It's called ESL, extended Shelf life product. And so we didn't have that many options. So we worked with them. They were good partners.
As we grew, they grew. They acquired and opened a second facility. And then over time, we had moved away from them into a different facility. And then that facilitated us having the opportunity to buy their second facility. About 20 months ago, we vertically integrated, bought our own manufacturing facility, something we said we never wanted to do. But after Covid, it became apparent we needed to do it. And we've been producing all of our own products since then. I'll tell you that we didn't take that lightly.
We were told by all of our investors it's a big project. It takes a lot of time. It's going to take more money than you expected. We thought we were pretty conservative in our projections, and we still weren't conservative enough. You know, it's. It's not to be taken lightly, but at the end of the day, it allowed us to kind of control our margin structure, control our production schedule. We built out our own warehouse, and so we have refrigerated warehouse on site. So that gave us the flexibility to do some things.
Like, had we not done that, we would not have been able to launch in Starbucks because they have different requirements. So, I mean, it's. It's everything from the facility itself to the partners with the, you know, ingredients. I mean, we had raw materials. Some of them were long lead times. And so. So it's really just. It was really just a lot of communication and working closely with them and in some cases, working inefficiently.
I mean, we might have three months worth of a key ingredient because we knew it was an at risk ingredient. Now, as we've grown over time, we try to put redundancies in place, redundant facilities, redundant suppliers for materials, because we, you know, we can't be caught. The worst thing is if you don't have product to sell, right? So. And through that journey, we ventured into different things. Like, you know, early on, we. Everything was d two c. And so we said, we. We better launch d two c, even though we have the double whammy.
We're expensive to ship because we are a heavy beverage and we're refrigerated. So you have to ship overnight or today. We said, but customers want it, so we're going to do it. So we did it. It seemed to be good. Good is subjective, I guess. Like consumers liked it. When I started to dig in and talk to our team, 80% of our marketing team's time was being taken on customer service for d two c orders.
When I looked at the revenue was generating, I said, this doesn't make sense, and we shut it down. Well, then Covid hits, and now everyone's back on d two c. So we're like, okay, fire that back up. And so we did that again. And then we shut that back down. So we really focus on point of purchase at retail. I will say, as we've grown and the product has become more ingrained in the consumers habits, the number one request we get is to buy the product in bulk and the number two request we get is to get it delivered. That kind of changed what we're doing as a company in a couple ways.
I'll talk about our core product, meaning our twelve ounce refrigerated product that you see on the shelves and all the retailers I mentioned, there's an opportunity for us to deliver that through Instacart or Gopaw for seven now or all these delivery things so you can get it delivered. Well, how are we going to address this buy in bulk issue? So we're in the process of selling in multi packs. So four packs for the consumer. Those should be in Whole Foods and then Costco soon. And then we looked at multi serve. So, you know, there's 32 ounce bottles coming out and some retailers. So we were addressing that problem in one way. But it really opened our eyes to like, you know, we're missing this whole marketplace on Amazon.
We found out we have 5000 searches a month for Koya on Amazon and we are selling zero of them because we don't have a product to offer. So actually this month we're launching a shelf stable tetra pack version of Koia on Amazon that'll come in twelve packs. And so we're really excited about that because it's what consumers told us they want.
And could you go into a little bit more detail about the product that you're actually launching on Amazon? What is it? How many skus are you launching to start with? And yeah, what are you expecting from the Amazon launch?
So we based it on our exact product. What we realized is we didn't want something completely different. Customers are asking for what we have but in a shelf stable product or version that they can load their pantry with. Right. So the flavors are the same. They're cacao bean, vanilla bean, chocolate banana. Now what we did do is we bumped up the protein a little bit. So it's going to be 20 grams of protein versus 18.
We fortified it with vitamins and minerals and it's coming in a twelve pack. And so we expect to convert all of those 5000 searches and then we expect to kind of change the protein game on Amazon. What I mean by that is if you look at other products out there that are competitive, that are like typical protein drinks. We don't call ours a protein drink like we're not a protein drink, we're a coia. And there's a difference. When you look at those products, they're simply protein and water and they're usually the cheapest protein and water. So, you know, our product is, uh, is a nut milk base. So almond milk or coconut milk, we use high quality product, uh, proteins.
We use a blend, so pea, rice and, and chickpea. And the reason we do that is because that creates a complete protein profile. So it gives you all nine essential amino acids. That's the only knock ever on plant protein, is that they don't have all nine amino acids. What we do for that reason, um, and it'll still be a premium product, like on the shelf at a whole foods. We will usually retail for 429 to 4.99 a bottle. There will be a multi, multi pack discount available on, on Amazon. So you won't pay $5 a bottle, but you're not going to pay a dollar like some of these, you know, very basic protein drinks that people may think of us.
And so again, it's going to come down to liquid the lips. When people taste it, they'll know the difference, and, and we're happy to. We're excited to give them a new opportunity to consume it.
We are really excited to announce that DTC Pod is officially part of the HubSpot podcast network. The HubSpot podcast network is the audio destination for business professionals, and we're really excited about being part of the network because we're going to be able to keep growing the show, bringing you guys amazing guests, and obviously helping you guys learn from the best founders, marketers, and builders of the most successful consumer brands. So, anyway, keep listening to DTC pod and more shows like us on the HubSpot podcast network@HubSpot.com. podcastnetwork. Awesome. And, and Chris, while we're on the topic of liquid ellipse, I'd love to kind of backtrack into your guys's story. And in terms of four Loko, right? I think when you say liquid ellipse, I immediately remember the taste of four Loko. I think it was a very distinct taste.
It was something that was very different at the time. I'd love if you could just kind of walk us through the trajectory of that brand and that evolution and maybe some of the lessons that you learned and were able to apply to Koya, because, I mean, from a consumer's perspective, I remember I was probably like, you know, maybe 18 or 19 when it came out. It was like my freshman year of college or maybe in like, maybe senior year of high school, and you would start to see this stuff everywhere, but, and it was like, one day it was nowhere, and then the next day it was like everywhere, right? So like, what was that brand journey like for you? And I know you said it was something else before it became four Loko. Like, how did it happen? How did, how'd you guys blow it up like that?
Yeah. So I'll give you the cliff notes here. I recently put a book out called Block Out Punch, an entrepreneur's journey from cast to clarity that I went through not only the Koya and the four logo story, but my own personal story, because, as you can imagine, theres a lot in there, right. But from a high level perspective, when we first launched the product, we called it four. It had four main ingredients, taurine, caffeine, guarana, which are all stimulants you find in energy drinks. And then it had Wormwood oil, which you may not know that was the active ingredient or is the active ingredient in absinthe. We were trying to differentiate ourselves. We werent the first caffeinated alcoholic beverage or alcoholic energy drink.
Unfortunately, that did not work. We had it priced at a premium because we couldn't compete with the big guys on their scale. We needed to make money. We couldn't just, we weren't going to fuel this or fund this thing as a high burn business, and so we priced it at a premium. We had this unique ingredient. We thought, that'll help us. And we had this false sense of confidence because distributors were buying the product. We did a good enough job selling it to them.
We were even getting the stores to buy the product, but the consumer wasn't buying the product off of the shelf. And so we went maybe a year in and realized, like, oh, shit, we're coming up on a crisis here. We're not going to be able to sell more product. Distributors aren't reordering. And so we said, all right, we better innovate, so let's look at what we can do. And so, just paying attention, we were spending our time in the streets, in the convenience stores, in the liquor stores, and we noticed that higher alcohol was selling. I mean, not some big revelation, but it just is kind of a, an insight for us. And so we said, all right, well, let's, let's ramp this up a little bit.
Right? Like, the, the product we're competing with is at 6% alcohol. Ours is at 6% alcohol. There was a new one at 8% alcohol. Let's try 10% alcohol. So we did this, we did this iteration called four maxed, and we did a different can. We thought maybe the design wasn't it, so we did a different can. It was like a black can did some different flavors, and it did okay. It did better than our first one, but it didn't set the world on fire.
But it gave us enough momentum to, one, stay in business, and then two, to feel confident trying new stuff. And that was like year two of the business, I would say. And so we're just, we're struggling along. We're not making a bunch of money. We don't have that many distributors. We're struggling to get by. And my partner came back from a sales blitz in California, and he had seen this product called Juice that was 24 ounce can, and it was 9.9% alcohol. And he goes, look, this stuffs selling.
Like, we got to do something like this. And to be honest, I said, thats never going to work. No one can drink 24oz of this stuff. It just seemed crazy to me, right, but look, the numbers dont lie. And so we worked with a flavor house, and he took the lead on that. And I got the samples one day, and the fruit, the first flavor we were going to do was fruit punch. It was, like, kind of unique. Nothing else was out there.
And so I tasted it, and I remember him calling me, and he goes, what do you think of that stuff? And I was like, man, this stuff tastes like liquid gold. It was crazy because it was 11% alcohol and you could barely taste the alcohol. And so that was, like, baffling to me. So we started down the process of, okay, what do we call this stuff? We were very. It was just three young guys, like, figuring out we were very unscientific. We weren't doing focus groups, we weren't doing whatever we said, all right? Our products called for this shit's kind of crazy. Let's just call it loco. And then let's do this camo pattern.
It's different. I mean, it was literally just that. And we made it, and we got some of our distributors to pick it up. And I remember the moment that I knew that this was something special for me. We had shipped it to a couple distributors, but in my area, we had divided the country in three at that time, in my area, we had shipped to this distributor in North Carolina, and I was getting ready to go in to do a sales blitz in a couple of days, and I called them to see if they had enough inventory, which we always did. They always said, yeah, we're fine. We don't need any more. And they said, no, we're out.
We're completely sold out. And I was like, no one's been there to sell it. They said, yeah, our reps sold at the stores, sold out of it already. We need to reorder. And I was like, oh, shit. And that started this three year sprint, two year sprint of us just going into new markets, opening up new distributors, because unlike non Alk, where I can sell it directly to you or to these broadline distributors, in alcohol, you have to have a distributor that sells to an exclusive territory. So we had to open up 325 distributors to cover the country. And so that was just our mad sprint over the next two years is like, open distributors.
Put the product in, get it on the shelf, it just sells. So when you say it came out of nowhere, it did. I mean, it was a course of. It was a matter of two years that it was, it was the fastest growing product in the alcohol industry. I think we were like a top eight brewery at that time. But many people say it came out of nowhere because they weren't the core consumer. You know, it sounds like you might have been in the demographic that was interested at that time. When we hit the mainstream press, all these people were going, what the hell is this stuff? And there were all these consumers that were never going to be four loco drinkers, but they were curious because of the way it was being positioned.
So it was a wild ride.
And then what would you say? Like, what were some of the biggest lessons and takeaways that you learned during the four Loko kind of phenomenon that you could apply not only to Koya, but like any other businesses that you would launch in the. In the CPG sort of space.
So when we, when we first launched four, we knew that there were some government agencies that weren't really thrilled about the idea of caffeine and alcohol being mixed. Right. There were a couple attorney generals who had sent letters to some competitors and to us saying they wanted us to reconsider, basically. But we had everything legally approved through the federal and state governments. So we felt like, hey, this is. If you change the rules, we'll change. But anyways, the lesson there was, when you're dealing with big government agencies, they don't have budgets and they don't have timelines, right? And so the reality of that is eventually it's going to come back and bite you. And so how that, how that went into practice, I guess, with Coia, is when we were figuring out our scalable product, we were using what was called HPP high pressure pasteurization, so there's no heat applied.
And it was fine at the time, but right around the time that we pulled the product off the market. The FDA had come out and said, look, we don't know if we think this is safe. You have to go prove that it's safe or you have to change it. And so fresh off of the four Loko days, I was like, there's no chance we're going to go fight the government. We're going to change the pasteurization process. We're going to comply with what they want because I don't want to go build something and have it taken away at the whim of a government agency. So that was a huge lesson. I would say, look, I was 25 when we launched fusion projects, so that was much of my late twenties and early thirties.
And my two partners there were college buddies. So we did not spend a lot of time on the soft skills, figuring out our roles, like having deep communication around issues that we may have either collectively or as a company. We were just running and gunning and scaling. The lesson coming out of that is like, boy, you gotta have a solid foundation in a company, in a partnership because if not, it can, it can totally crumble. Unfortunately, there were, there were three of us with unique skill sets that we were able to hold that thing together and, and it's still being held together by those guys today, or, I shouldn't say it that way, it's still being grown significantly by those guests today. But, um, but it was a, it was a big, you know, lesson to, to pay attention to. Sweet.
And Chris, as we wrap up here, the last question I have on the coil front is kind of like, what's on? You guys have obviously done a great job. You really scaled, you've brought in vertical manufacturing into the mix. You're in a whole bunch of doors. You're launching products on Amazon. What else is top of mind for you as you grow the business? And what's, maybe a better question, what's the goal here? What's the long term play for Koi? Where do you want to see this in 510 years?
Look, when we ultimately set out with this venture, it was to grow the best product and company that we could, was that we would sell it at some point. And that's probably still the assumption, right? We brought on investors. They expect a return. But what I've learned over the years is you can't really build a business with that goal in mind because you may make decisions that trying to facilitate that don't create the best long term situation for the company. And so what I'm excited about is, look, we've innovated around the Koya brand multiple times to try to figure out exactly what it is. We came out with a functional coffee line that was coia. We came out with a low sugar smoothie line that would compete with like, naked and bolthouse. They were all refrigerated single serve products.
They all did fine, but none of them did as well as Koya, the protein line. Right? And so as we started to talk to our consumers and really pay attention to what was working, what wasnt, we realized that what Koya stands for is delicious. First and foremost, protein, plant protein and low sugar. And then the last attribute, which is fourth on our recent survey, is high fiber, which is an unsexy kind of ingredient. But it matters to people, especially right now. And so under that heading, we are now innovating into different categories that are relevant to protein. So I already talked about the shelf stable tetrapak that will launch on Amazon. But what we learned is that 70% of our consumers are female and a majority of those are new moms or young moms.
And so I have three kids of my own. We all drink Coya here, but I can't tell you how many times I've seen half drank bottles sitting around the house. The point is, we're launching a kids line later in the year, too. And so the expansion into these different protein forward categories is really exciting. And you look at some of these companies like Quest, nutrition, or even organ as an example, they've been very successful innovating as long as they stay to the core of what the product is. And so that's what I think we're in the midst of doing.
That's amazing. And last question for you, where can we connect with you? If the audience is tuning in, we want to connect. Why don't you shout out your brands and your socials? Where do we find you?
Yeah, so Koya is the main brand I'm focused on right now. So drink Coia on Instagram, on TikTok, whatever it may be for me personally. Christopher Hunter on Instagram. I'm more active on LinkedIn. Those probably the best two places to find me. Sweet.
Thanks for coming on the podcast.
Thanks for having me.
If you enjoyed the show, we'd love your support. A rating and review would go a long way as we continue to host the best builders in DTC and beyond. Follow and subscribe to the show and make sure to check out our show notes where you can find our socials and weekly newsletter. Visit us on dtcpod.com to join our founder, community and access resources from every episode. We'll see you on the next pod.
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More from this recording
DTC Pod Linkedin
Christopher Hunter transitioned from the electric energy of managing fusion projects to investing in the wellness space with better-for-you food and beverage brands. On this week’s episode of DTC Pod, Christopher joins @blaine to recount his journey with @Coia and @Four Loko, diving into the highs and challenges of pioneering in uncharted markets.
Taking us through Coia’s critical pivot to scalability and gaining a foothold in national chains like Whole Foods, Christopher outlines how resilience and strategic partnerships propelled the brand to new heights.
Now with his newest venture @Koya, Christopher shares insights into navigating regulatory landscapes and the value of foundational business relationships. With growth on the horizon, including an exciting kids line, Christopher is steering Koya toward innovation in the protein-forward category.
Listen as we explore the brand's rapid distribution expansion, the shift in DTC strategies during Covid, and Koya’s nationwide presence in 30,000 retail locations including a fresh partnership with Starbucks.
Full episode here: [Spotify Link]
#dtcpod #foodandbeverage #businessgrowth #retailstrategy #consumerbrands #startupjourney
1️⃣ One Sentence Summary
Christopher Hunter shares journey from Four Loko to Koya success.
💼 LinkedIN - 6 Reasons Post
Jumping straight into national retail without groundwork is like skating on thin ice. Here are the top 6 reasons why new brands should think twice before aiming for national retail distribution out of the gate:
Building Brand Recognition is Crucial.
Before hitting the big leagues, your brand needs to develop a rapport with consumers at a local or regional level. National retailers are attracted to proven products, so foster a loyal customer base first which can advocate for your product.
Supply Chain Snags Can Ruin You.
Scaling too quickly might mean you can't meet the demand, leading to empty shelves and a damaged reputation. Christopher Hunter's experience with Coia and the initial setbacks at Whole Foods showed how spoilage and supply snafus can hit hard.
Retail Partnerships Depend on Performance.
Retail giants like Publix or Kroger prefer products with a strong sales record. Coia's ascent, with its products strategically placed in Whole Foods, eventually led to partnerships with top retailers - a testament to the power of slow but steady growth and hitting performance metrics first.
Cash Flow Concerns are Real.
National distribution means massive production runs, larger staff, and bigger marketing budgets. Without a solid financial plan, as Coia learned, this can lead to insolvency. Start smaller and establish a positive cash flow before taking a leap.
Adaptation is a Stepwise Process.
Just as Four Loko evolved its product lineup in response to regulations and market feedback, brands must be able to pivot based on early consumer and regulatory feedback before scaling.
Relationships Matter at Every Level.
Hunter stresses the importance of strong industry partnerships. Coia's collaboration with a major broker for a national launch showcases that the right relationships need to be cultivated and can't be rushed.
TL;DR:
Grow your brand locally before shooting for national retail.
Ensure your supply chain is robust and responsive.
Solidify your sales track record to attract big retailers.
Manage your finances and scale with care.
Listen and adapt to your early consumer base and regulations.
Build meaningful industry partnerships meticulously.
In short, steady growth wins the race to national distribution—don’t rush into the deep end without testing the waters.
Interview Breakdown
In this riveting episode, Christopher Hunter shares his extraordinary journey from the high-stakes world of fusion projects to revolutionizing the better-for-you beverage industry. We explore the trials and triumphs of building Coia and reshaping Four Loko, providing invaluable insights for entrepreneurs and business enthusiasts alike.
Today, we'll cover:
Christopher Hunter's segue into the health-conscious beverage segment and the inception of Coia.
Overcoming the initial challenges with Coia's business model to achieve a breakthrough with major retailers like Whole Foods.
The influential role government regulations and strong partnership foundations play in the fate of products like Four Loko and Coia.
Hunter's strategies in responding to the needs of a market in flux, leading to product adaptations such as Koya's multi-pack offerings and high-protein recipes.
Blaine Bolus discusses the perks of joining the DTC Pod community and the features of HubSpot's new sales hub, framed by Hunter's professional narrative.
💬 Keywords
Christopher Hunter, Coia, startup company, Raw Nature five, Chicago, scalable business model, insolvency, industry support, legitimacy, national launch, Whole Foods, retailer partnerships, Publix, Kroger, Starbucks, product distribution, Four Loko, alcohol industry, government regulations, business partnerships, protein-forward categories, children's nutrition line, Instagram, TikTok, LinkedIn, nut milk-based protein, almond milk, coconut milk, pea protein, rice protein, chickpea protein, essential amino acids, Amazon, premium protein drinks, HubSpot podcast network, DTC Pod, consumer brands, market expansion, Wegmans, Giant Eagle, Anahei, manufacturing facility, supply chain, direct-to-consumer, Instacart, tetra pack, Slack community, sales hub, beverage industry, Pabst, dietary supplements.
🔑 7 Key Themes
Start-up Challenges and Solutions
Retail Partnerships and Scaling
Adaptation to Regulations
Four Loko's Market Evolution
Koya's Strategic Growth
Distribution and Manufacturing Strategies
Direct-to-Consumer Shifts and Trends
📚 Timestamped overview
00:00 Announcement of D two C Slack community for founders and operators. Also promoting new sales hub from HubSpot. Apply to join.
03:11 Entered alcohol industry, worked hard, found passion, inspired to create cherry flavored vodka.
07:14 Transitioning from fusion projects, invested in Raw Nature five, a successful startup in Chicago. Good proof of concept, despite branding and packaging issues.
09:28 Company wanted to sell directly, got a broker, launched in Whole Foods.
14:41 Initially planned to enter natural segment, but accelerated to conventional retailers due to success at Whole Foods, high product velocities.
16:17 He gained trust, set up a successful meeting and exceeded expansion goals.
21:08 Exploring expansion into new retail channels and sizes, including online platforms like Amazon.
25:00 Discussing the trajectory and evolution of a brand, its explosion in popularity, and the process of its transformation into a well-known product.
26:46 Stores not selling product, focused on higher alcohol content.
31:16 Government agencies objected to caffeine-alcohol mix; legal issues arose. HPP used for Coia product.
33:56 Build company, innovate products, avoid short-term decisions for long-term success.
📚 Timestamped overview
00:00 Exciting launch for D2C community on Slack.
03:11 Opportunity led me to a career in alcohol.
07:14 Transitioning from managing fusion projects to investing.
09:28 Direct consumer sales, broker support, national launch.
14:41 Start at natural segment, expand rapidly.
16:17 Successful meeting leads to unexpected rapid expansion.
21:08 Expanding product distribution through bulk sales channels.
25:00 Rapid rise of brand and lessons learned.
26:46 Sales crisis led to alcohol content shift.
31:16 Government agencies objected to caffeine-alcohol mix.
33:56 Building a successful business requires long-term focus.
❇️ Key topics and bullets
Introduction to Christopher Hunter and Coia
The transition from fusion project management to investing in better-for-you food and beverage brands
Challenges and early struggles with Coia
Strategies for overcoming initial business model flaws and insolvency
Growth and Expansion
Development of a scalable formula and partnership with major broker
Launch and placement in Whole Foods and subsequent growth
Expansion into major retailers: Publix, Kroger, and Starbucks
Learning from setbacks such as spoiled inventory at Whole Foods
Christopher Hunter's Experience with Four Loko
Quick growth of Four Loko in the alcoholic beverage industry
Adapting to government regulations
Maintaining solid business partnerships
Koya's Market Entry and Product Innovation
Long-term vision for product and company development
Emphasis on protein-forward categories and introduction of a kids line
Accessing Koya through various social media platforms
Product Information
Details about Koya, the nut milk-based protein supplement
Pricing and retail strategy with a focus on premium positioning
Promotion of Koya as a quality alternative to basic protein drinks
DTC POD's Role and Vision
Partnership with the HubSpot podcast network
The objective of featuring successful founders and marketers in consumer brands
Christopher Hunter's background and the genesis of Four Loko
Operational Strategies and Distribution
Accelerated retail strategies surpassing initial timeline estimates
Responses to opportunities from retailers Wegmans and Giant Eagle
Co-manufacturing, supply chain management, and vertical integration
Adaptation to supply chain disruptions and the Covid-19 pandemic
Marketing and Sales Channels
Direct-to-Consumer (DTC) channel's trials, temporary shutdown, and revival
Emphasis on retail point of purchase due to consumer behavior trends
Catering to consumer demand with multi-packs and shelf-stable packaging
Expansion into e-commerce with Amazon and innovative packaging solutions
Community and Resources
Launch of the Slack community for DTC founders and operators
The introduction of a new sales hub by HubSpot for enhancing sales team performance
Christopher Hunter's Journey
Personal background and entry into the alcohol and beverage industry
The emergence of Four Loko and its evolution
Transition and sale leading to the birth of Koya
Koya's national reach and impressive retail presence
🎬 Reel script
Welcome to DTC POD, where remarkable entrepreneurial journeys take the stage. Today's episode spotlighted Christopher Hunter's unparalleled route from fusion project management to revolutionizing the beverage industry with Coia and the sensational growth of Four Loko. His strategic partnerships and relentless innovation propelled Coia to national acclaim with key placements in Whole Foods and subsequent expansion into leading retailers like Publix and Kroger. Facing setbacks head-on, Christopher underscored the necessity of a solid business foundation and agility in navigating regulatory landscapes. With Koya, he's pushing the envelope further, eyeing protein-forward categories and kids' line launches. For those striving to build consumer brands, this episode is a treasure trove of insights from a founder who's mastered the art of rapid scaling and distribution. Join us at DTC POD – learn from the business elite and build your empire.
✏️ Custom Newsletter
Subject: 🎧 Dive into the World of Innovative Beverage Brands with Christopher Hunter on DTC POD!
Hey there Beverage Enthusiasts!
I hope this email finds you all bubbly and ready for another thirst-quenching episode of DTC POD! This time, we've got a treat for you that's as refreshing as a cold sip on a hot day!
🚀 Introducing Our Latest Episode with Christopher Hunter
We've just released a brand-new episode featuring none other than the beverage wiz Christopher Hunter, a man who took the leap from fusion projects into the vibrant realm of food and beverage startups. It's a story filled with trials, triumphs, and a sip of ambition that'll leave you inspired!
🔑 Top 5 Sips of Wisdom You'll Gain from the Episode
Learn how Christopher took a struggling Coia and turned it around, securing a national launch and ultimately stocking the shelves of Whole Foods.
Navigate the turbulent waters of product launches and distribution, finding out how Coia overcame spoilage issues and scaled to major retailers.
Discover the evolution of Four Loko under Christopher's guidance – from its humble beginnings to becoming an industry leader.
Get a glimpse into brand innovation and strategy as Christopher discusses Koya's focus, including a fascinating new kids line on the horizon.
Christopher serves up his approach to adapting to changing government regulations and the importance of building robust partnerships in business.
🥤 Fun Fact Time!
Did you know that Christopher Hunter's journey with Coia led them to buy their own manufacturing facility just 20 months in? Talk about rapid growth and taking control of your product quality! Tune in to find out how this bold move played a part in their success story.
🎙️ Outro – Wrapping Things Up!
That's all for now! Remember to grab your headphones and prepare to be fascinated by the tale of a man who poured his knowledge, experience, and passion into beverages that are not only delicious but also creating waves in the industry.
💌 Call to Action - Join the Conversation!
Don't forget to join our DTC POD Slack community! It's the ultimate spot for D2C founders and operators to connect, exchange ideas, and learn from each other. Plus, stay tuned because once we hit 150 members, we're officially launching the community!
Hit 'play' on this latest episode and untap the secrets behind success in the food and beverage industry with Christopher Hunter. Listen, learn, and let's raise a glass to growth and innovation!
To glorious sips and success stories,
Blaine Bolus and the DTC POD Team 🎉
P.S. Feel the fizz? Share this episode with a friend who loves a good business journey or needs some inspiration for their own entrepreneurial adventure!
Cheers! 🍹🚀
🐦 Business Lesson Tweet Thread
Tweet 1:
Starting a business is like launching into rapid white-water rapids, gripping just a paddle and your vision. Christopher Hunter's journey from fusion projects to the surging waves of the beverage industry showcases this thrill ride.
Tweet 2:
Hunter's first venture, Raw Nature five, became the groundwork for his true calling – entering the cutthroat arena of healthy drinks with Coia, facing an uphill battle that tested both resilience and strategy.
Tweet 3:
With an innovative formula and key industry support, Coia secured its position on the shelves of Whole Foods, igniting a slow burn of success that would soon spread like wildfire to major retailers.
Tweet 4:
The path from a single store launch to widespread distribution is a masterclass in proof of concept and patience. For Coia, every error, like spoiled inventory, was a lesson making them stronger, more focused.
Tweet 5:
Adaptation is the entrepreneur's secret weapon. Hunter learned from the Four Loko saga, where regulatory reefs threatened to sink them but led instead to a pivot that propelled them to dizzying growth.
Tweet 6:
In the shifting tides of consumer preference, Koya aligns with the movement towards wholesome, protein-rich supplements. It's a product born from the determination to provide the finest, anchored by high-quality ingredients.
Tweet 7:
Launching on Amazon with an eye for premium, Koya doesn't just enter the market – it seeks to elevate it, making a statement with a price that reflects its value, setting itself apart from the competition.
Tweet 8:
Foresight is crucial when steering a business. Just like preempting supply chain tsunamis or dealing with a raging pandemic, Koya adapted by pressing pause on DTC, only to revive and thrive through retail connections.
Tweet 9:
Understanding consumer currents led to Koya's multi-packs on Instacart and sturdy, trek-ready packaging on Amazon. It's about meeting people where they are, with what they need – more protein, more convenience.
Tweet 10:
Koya's story is far from over. With over 100 million in sales and a recent Starbucks partnership, it is a testament to entrepreneurial spirit and the relentless pursuit of excellence. Watch this space as Koya continues to make waves.
🎓 Lessons Learned
Title: "Product Scalability Struggles"
Description: Addressing Coia's initial model issues, transitioning to a formula ready for national launch and large-scale distribution.Title: "Regulatory Adaptation Key"
Description: Emphasizes the importance of navigating and complying with government regulations while growing a beverage brand.Title: "Retailer Partnership Success"
Description: Chronicles Coia's expansion through strategic alliances with Whole Foods, Publix, and Kroger, leading to significant brand growth.Title: "Overcoming Launch Setbacks"
Description: Discusses the spoilage challenge at Whole Foods and subsequent strategies to recover financially and maintain momentum.Title: "Rapid Market Expansion"
Description: Insights into Four Loko's explosive growth, rebranding efforts, and market dominance through shrewd distribution tactics.Title: "Innovation for Longevity"
Description: Outlines Koya's commitment to continual product enhancement and diversifying into children's nutrition markets.Title: "Premium Pricing Strategy"
Description: Describes Koya’s positioning in the competitive landscape with a pricing plan that stresses quality ingredients and health benefits.Title: "Smart Manufacturing Moves"
Description: Recounts buying a production facility to ensure consistency and mitigate the risk of supply chain disruptions.Title: "DTC Pivots Revealed"
Description: Lessons from Koya's shift away from, and return to DTC during COVID, reprioritizing retail and consumer preferences.Title: "Community and Connectivity"
Description: Launch of an exclusive support and idea-sharing network for DTC professionals within the DTC Pod community.
💎 Maxims
Based on the concepts and experiences shared by Christopher Hunter in the podcast episode, here are some maxims to live by:
Agility in Business Is Key
Be ready to pivot your business model when necessary to ensure scalability and sustainability.
Build Strong Relationships
Cultivate partnerships with industry brokers and retailers to create opportunities for growth.
Overcome Initial Setbacks
Persevere through challenges such as inventory issues and additional expenses while maintaining focus on your long-term vision.
Prove Your Concept
Before scaling, earn your place in the market by demonstrating the success of your product in a smaller setting.
Stay Ahead of Regulations
Adapt your business practices to comply with government regulations to avoid complications and maintain integrity.
Focus on Quality
Commit to creating the best possible product with high-quality ingredients that stand out in the market.
Strategize Product Placement
Plan smart product placement, positioning it as a premium option to justify a higher price point.
Embrace Innovation
Constantly seek ways to innovate and expand your product lines to meet consumer needs and trends.
Prepare for the Unexpected
Have contingencies in place like additional suppliers to handle supply chain disruptions.
Understand Your Customers
Actively respond to consumer behavior and adapt your business model to cater to their preferences, like offering multi-packs.
Utilize Effective Sales Tools
Integrate systems like a sales hub to streamline processes and improve sales team efficiency.
Embrace Community
Join or create communities of like-minded individuals to share resources, ideas, and support.
Value Experience-Based Learning
Apply lessons learned from previous ventures to succeed in new endeavors and guide business practices.
Commit to Retail Readiness
Ensure your product is well-prepared for retail, both in presentation and in fulfillment capabilities.
Develop Distribution Strategies
Develop a strategic approach to product distribution to build presence in both specialty and conventional retailers quickly.
Remembering these principles can guide entrepreneurs and business professionals through the complex landscape of launching and scaling a business.
🌟 3 Fun Facts
Four Loko, despite initial hurdles, had an impressive turnaround, going from an unknown product to the fastest growing product in the alcohol industry within two years.
After facing challenges with an initial business model, Coia managed to secure placement in Whole Foods and eventually partnered with major retailers like Publix, Kroger, and Starbucks.
Koya, Christopher Hunter's latest venture, is a plant-based protein drink that made a significant retail impact, reaching about 30,000 retail locations nationwide and achieving over $100 million in retail sales.
📓 Blog Post
Title: From Fusion Projects to the Fridge: Christopher Hunter's Journey to Beverage Success
Subheader: The Inspiring Tale of Christopher Hunter – From the Rise of Four Loko to Pioneering Coia and Koya's Expansion
Introduction: A Leap Into Entrepreneurship
Christopher Hunter’s career trajectory is one characterized by audacious moves and strategic shifts. From managing fusion projects to diving into the alcohol industry with Four Loko, and eventually investing in health-conscious food and beverage brands, Hunter's path is a testament to his versatility and foresight.
The Coia Chronicles: Navigating Early Challenges
Launching Coia was anything but a smooth ride. Hunter faced an initial struggle with a business model that proved to be unscalable, pushing the company towards a financial brink. With the vision of creating a healthier beverage alternative, Hunter doggedly worked toward not only perfecting Coia's formula but also forging essential industry connections. The turning point arrived with the brand's partnership with a major broker, propelling it into the national spotlight with a prominent launch at Whole Foods. Despite some initial hiccups, such as product spoilage, Coia began its journey of steady growth.
Strategic Scaling: From Whole Foods to Nationwide Distribution
The strategic expansion from Whole Foods to other giant retailers like Publix and Kroger heralded a new chapter for Coia. Building upon its proven success, the brand slowly but surely captured a significant market share, culminating in a partnership with Starbucks. The road to scalability required both patience and the ability to demonstrate the product's viability to retailers and consumers alike.
Adapting and Innovating: The Four Loko Experience
The story of Four Loko further illustrates Hunter’s adeptness at navigation through the volatile waters of the beverage industry. His recounting of Four Loko’s history, from a little-known product to an industry giant, is a masterclass in adaptability. Hunter emphasizes the importance of responding to government regulations and solidifying business partnerships, which has been crucial in both his ventures.
Forging Ahead: The Rise of Koya
As Coia evolved, so did Hunter's business goals, leading to his latest venture, Koya. Aimed at delivering a premium protein drink, Koya stands out with its commitment to high-quality ingredients and nutritional benefits. Its precise blend of almond, coconut, pea, rice, and chickpea proteins offers a rich and complete amino acid profile, meeting the demanding tastes of health-conscious consumers.
Social Media and Consumer Engagement
Koya isn’t just another product on the shelf; it’s a growing community of health and wellness enthusiasts. With a strategic presence on platforms like Instagram and TikTok, Hunter has made sure that Koya is not just found in physical retail locations but is also part of the digital conversation. Engaging with consumers has been a vital aspect of Koya’s growth, as Hunter himself is actively involved on LinkedIn, fostering professional connections and dialogues.
Direct-to-Consumer Dynamics and Online Strategies
Reflecting on the brand's forays into direct-to-consumer sales, Hunter acknowledged the initial challenges and the choice to shut it down. However, the pandemic-induced shift in consumer behavior led to a revival of the DTC channel. Adjusting to the new market dynamics, Koya focused on retail point of purchase platforms, responding to consumer needs with convenient multi-packs and shelf-stable options on Amazon.
Community Building and Sales Strategies for DTC Brands
The rapid growth of Koya and its DTC strategies have set the tone for the wider community of founders and operators. In that vein, Blaine Bolus announced an exciting new platform: a Slack community aimed at DTC professionals, providing a space for sharing insights and fostering industry support. Concurrently, the new sales hub from HubSpot was highlighted for its ability to streamline and enhance the functions of sales teams.
Reflections and Projections
Closing the episode, Hunter shared personal reflections on his journey and insights into Koya's product development and scale-up process. With products now available in 30,000 retail locations and over 100 million in retail sales, the future looks bright. Koya’s trajectory underscores that with persistence, strategic innovation, and a keen eye for market trends, success is within reach even in the most competitive industries.
Tune into DTC POD for more stories and strategies from leaders like Christopher Hunter, who continuously redefine the intersection of well-being and ambition within the consumer brand space.
🎤 Voiceover Script
Starting a health-focused beverage company seems daunting, right? It's a journey full of twists and turns, and Christopher Hunter shares his own. From the raw beginnings of Coia to the explosive growth of Koya, his story is packed with insights.
In this episode of DTC POD, we unravel:
Strategies for overcoming a rocky start and securing vital industry partnerships.
The pivot from a struggling business model to national recognition and retail success.
How to ride out the storm when dealing with unexpected challenges like spoiled inventory.
Lessons learned from scaling a brand to nationwide distribution giants like Starbucks.
Plus, the incredible rise of Four Loko, and the foresight needed to adapt and thrive amidst regulation changes.
Join us as Christopher outlines the importance of resilience and innovation in the bustling beverage space.
🔘 Best Practices Guide
DTC POD Best-Practices Guide Featuring Christopher Hunter
In this episode with Christopher Hunter, we uncover a roadmap to scaling a new company successfully. Key takeaways include:
Product Focus: Create a scalable formula that caters to consumer demand. For Koya, it was developing a complete protein profile with high-quality ingredients.
Retail Partnerships: Establish relationships with major brokers for national launch; Koya's placement in Whole Foods exemplifies this.
Adaptability: Be ready to pivot and handle setbacks, as seen with Koya's navigation of spoiled inventory and regulatory challenges.
Distribution: Prove your product concept with initial retailers before expanding; Koya's growth strategy involved starting with Whole Foods, then scaling to other big retailers.
Consumer Engagement: Align with consumer habits, offering multi-packs through convenient platforms.
Community: Engage with like-minded professionals. DTC POD's new Slack community initiative is designed to connect DTC founders and operators.
Remember, an unwavering commitment to innovation and smart partnerships can lead to extraordinary growth and market presence.
🎆 Social Carousel: Do's/Don'ts
Cover Slide:
"10 Key Insights for Growth-Focused Entrepreneurs"
Slide 1:
Title: "No Rigidity"
Explanation: Embrace flexibility; market dynamics change, adapt your strategy accordingly.
Slide 2:
Title: "Avoid Solo Suppliers"
Explanation: Diversify suppliers to mitigate risk and ensure continuous operations.
Slide 3:
Title: "Skip DTC Only"
Explanation: Explore various channels; pure DTC may be costly, broaden your retail presence.
Slide 4:
Title: "Not Just Product"
Explanation: Focus on relationships with brokers and retailers for wider brand distribution.
Slide 5:
Title: "Ignore Complexity"
Explanation: Opt for a scalable business model to facilitate growth and avoid insolvency.
Slide 6:
Title: "Don't Disregard Feedback"
Explanation: Listen to customers, adapt products to meet their needs like multi-packs on Instacart.
Slide 7:
Title: "Eschew Partnerships"
Explanation: Forge strong business partnerships to stabilize your foundation and scale effectively.
Slide 8:
Title: "Reject Regulations"
Explanation: Work within government regulations to maintain legitimacy and trust in your market.
Slide 9:
Title: "Bypass Innovation"
Explanation: Always innovate, create the best product by expanding into new, relevant categories.
Slide 10:
Title: "Limit Vision"
Explanation: Aim for long-term goals and brand evolution, like expanding a kids’ line for wider reach.
🎠 Social Carousel
Cover Slide:
"10 Tips Every Entrepreneur Needs to Know"
Slide 1:
"Embrace Adaptation"
Navigate regulation changes to keep your business thriving.
Slide 2:
"Partner Wisely"
Strong business relationships form the foundation of success.
Slide 3:
"Product Innovation"
Continuously improve your offerings to stay ahead.
Slide 4:
"Retail Strategy"
Proof of concept can accelerate your jump to big retailers.
Slide 5:
"Handle Setbacks"
Develop resilience by managing inventory and capital challenges.
Slide 6:
"Scale Smartly"
Start with a single reliable manufacturer before expanding.
Slide 7:
"Consumer Feedback"
Introduce multi-packs and new formats based on customer demand.
Slide 8:
"Community Growth"
Leverage networks of founders and operators for shared insights.
Slide 9:
"Sales Enablement"
Utilize tools like HubSpot’s sales hub to boost your team's performance.
Last Slide - CTA:
"Join the Movement"
Connect with us for exclusive insights and community support. Join the DTC POD community today! #DTCPOD
One Off Tweets
Tweet 1
At the intersection where grit meets innovation, you'll find the most inspiring success stories. Christopher Hunter's journey from fusion projects to shaking up the beverage industry is a masterclass in perseverance.
Tweet 2
Lessons in growth: Christopher Hunter of Coia shares how starting with a single co-manufacturer and scaling to owning a facility in just 20 months showcases strategic evolution in business.
Tweet 3
Adapting to consumer demand is key. When Koya answered the call for multi-packs, it wasn't just about sales—it was about staying in sync with their customers' lifestyles.
Tweet 4
Never underestimate the power of a major retailer's nod. Coia's partnership with Whole Foods marked a turning point, reinforcing that the right support can catapult a niche product to the national stage.
Tweet 5
Success is a cocktail of the right elements plus timing. Just ask Christopher Hunter, who turned Four Loko into an industry titan by finding the perfect market moment to launch 'loco'.
Tweet 6
In business, sometimes your first idea isn't the home run—pivoting to 'Four Maxed' was Christopher Hunter's curveball that ultimately led to a grand slam with Four Loko.
Tweet 7
The road from an unsustainable business model to a thriving national brand wasn't smooth for Coia, but Christopher Hunter's story is a testament to determination and strategic partnerships.
Tweet 8
DTC POD brings insights from founders like Christopher Hunter who prove that sometimes to reach unparalleled heights, you need to be willing to forge new paths and reinvent the rules.
Tweet 9
Navigating government regulations is not for the faint-hearted. But as Christopher Hunter illustrates, overcoming these hurdles can fortify your business's foundation for future success.
Tweet 10
Building a company is about the long game, and Koya's focus on high-quality, protein-forward products shows a dedication to crafting a brand that stands the test of time and trends.
Twitter Post 1
Koya's journey to nationwide retail presence was swift and impressive.
Initially targeting a 3-4 year timeline to reach major stores, they smashed expectations by landing spaces on shelves like Whole Foods and Wegmans within the first year.
That's what you call sprinting ahead of schedule!
Mindsets
⚡️ Embrace fluidity over rigidity in business trajectories. As Christopher Hunter's experiences with both Four Loko and Koya illustrate, successful entrepreneurs understand that business plans must evolve. Emphasizing flexibility allows for rapid adjustments in response to market feedback and opportunities.
⚡️ Consider scaling as a continuous experiment. The transition of Koya from Whole Foods to expansive national distribution shows that scaling is not a linear process but involves constant testing and learning. Approach growth with the mindset that each step is a hypothesis test, guiding you to refine your strategy.
⚡️ Prioritize resilience in the face of setbacks. Hunter's story of overcoming challenges like spoiled inventory is a potent reminder that in business, obstacles are guaranteed. Adopting a resilient mindset positions you to view hurdles not as defeat but as a chance to strengthen your company's framework and strategy.
Tune in to the latest episode of DTC POD with guest Christopher Hunter for more insights on the entrepreneurial mindset that powers breakthrough in the competitive consumer brands landscape. 🎧 #DTCPOD #EntrepreneurMindset #BusinessGrowth
Tactics
If you're keen on propelling your business ahead, drawing inspiration from Christopher Hunter's journey, here are a few strategic maneuvers that could make a significant difference:
🚀 Emphasize adaptability in the face of regulation changes. For instance, when Hunter faced a regulatory challenge with Four Loko, he adjusted the product formulation to comply while still satisfying consumer desires. Your business can apply this by regularly reviewing compliance and staying nimble, ready to pivot strategies when necessary to adhere to industry standards without compromising value.
🚀 Forge strong, foundational partnerships early on. Hunter's experiences show that solid relationships with brokers and retailers can be pivotal. To implement this, prioritize building relationships with key industry players who can advocate for your product, ensuring that when it's time to scale, you have a network that can support and accelerate growth.
🚀 When facing supply issues, like those Hunter encountered with spoiled inventory, develop contingencies. Diversify your suppliers and invest in quality control measures. This proactive approach can save your business from costly setbacks and maintain your reputation for delivering high-quality products consistently.
🚀 Listen to your consumer base and evolve with their habits, as Hunter did by shifting from a direct-to-consumer model to focusing on the point of purchase sales during Covid. Apply this by continually analyzing customer data and feedback to understand purchasing behaviors and preferences, then adjust your sales and marketing strategies to match where and how your customers prefer to shop.
🚀 Leverage the power of multi-channel distribution, echoing Coia's approach of entering retail locations like Whole Foods, then expanding to other major chains. Start by identifying strategic retail partners aligned with your brand values and customer demographics. Understand and tailor your pitches to each retailer's unique audience and needs to increase your chances of a successful roll-out across multiple channels.
These specific strategies, if applied thoughtfully, could steer your venture towards a trajectory similar to the one Hunter crafted for his brands, paving the way for growth, innovation, and success.
In Depth Thread
Overrated: Traditional Advertising.
Hoping a billboard will snag your next thousand customers? Save your cash.
Underrated: Creative Content Partnerships.
This is the playbook I used to skyrocket our brand awareness with zero paid ads:
Two-Platform Rule
Leverage only two social platforms where your audience actually hangs out.
No splatter-gun approach. Stay focused.
5 Key Engagement Metrics
People will latch onto clear success indicators. Here’s my go-to list...
Organic Reach
Follower Growth Rate
Engagement Ratio
Viral Content Hits
Influencer ROI
Market with a Story
Forget dry stats. Narrate the pulse of your market now versus the next decade.
5 bullet points to tell a story that sticks.
Brand Promise
Craft your image in one powerful line:
Our drink brand: “Infusing vitality into every sip you take.”
Patagonia: “We’re in business to save our home planet.”
Own your narrative in one breath.
Content Creation Cadence
You create, they follow.
Sketch out the What, How, and When of content production succinctly.
Brand Essence
Lay out your vibe, your mission, your raison d'être upfront.
Does your brand vibe with progressive values, sustainability, or urban chic? Claim it openly.
Show, Don’t Just Tell
Visuals rule. Pie charts on social engagement and growth trends are gold.
Make sure these graphics are polished and precise.
Team Slide
The players behind the scenes often seal the deal.
Showcase your creatives, strategists, and growth hackers.
It matters deeply.
No track record? No problem.
Pivot to an in-depth look at your creative strategy and execution process. Show you’re set up for virality even if you’re new to the game.
Remember the 3 I’s:
• Insight, Innovation, and Impact
• Imagery, Influence, and Interaction
Lay out your I's as clearly as you lay out your morning coffee.
New Idea
Idea #1: Leveraging Partnerships for Brand Growth
Build your brand through strategic partnerships to expedite market access and credibility, as demonstrated by:
Broker Support: Gain the support of major brokers as Coia did, which paved the way for a national launch and introduction into influential stores like Whole Foods.
Collaborative Scaling: Embrace the power of partnerships for scaling purposes, much like Coia's affiliations with well-known retailers such as Publix, Kroger, and Starbucks that facilitated broader distribution and visibility.
Synergistic Product Expansion: Strategically leveraging partnerships can lead to creative product initiatives and expansion into new market segments, much like Koya is expecting with its upcoming kids line, made possible through collaborative insights and shared retail expertise.
Tweet thread on learnings
Tweet 1:
🚀 On the latest DTC POD, Christopher Hunter shares his journey from pioneering Four Loko to shaping the plant-based, better-for-you beverage market with Koya. Here's what sets this entrepreneur apart and drives success in a competitive industry: 👇 #DTCPOD #Entrepreneurship
Tweet 2:
Resilience Through Regulatory Maze 🌐
Hunter's navigation of government regulations with Four Loko showcases the importance of agility in businesses. Facing regulatory hurdles, Christopher adapted, preserving the core vision while ensuring compliance. #BusinessAgility
Tweet 3:
Building Rock-Solid Partnerships 🤝
Behind Coia's rise were strategic partnerships. From initial setbacks to national distribution, creating relationships with retailers proved vital. Hunter's approach stresses the necessity of solid alliances. #StrategicPartnerships
Tweet 4:
Embrace the Evolution 🔄
Four Loko's rebranding and evolution into 'loco' with increased alcohol content wasn't just repositioning; it was a pivot based on insight and consumer trends. Hunter underscores the power of staying attuned to the market. #BrandEvolution
Tweet 5:
Beyond Quick Wins - Vision for the Long Haul 🎯
With Koya, it's not just about immediate gains. Hunter's playing the long game, aiming for product innovation and expansion into new categories, including offerings for children. #SustainableGrowth
Tweet 6:
Listening to Customers - The Direct Line to Success 📢
Hunter recognized the trend for multi-packs and delivered through platforms like Instacart, adjusting Koya's offerings to consumer demands and boosting sales. #CustomerFeedback
Tweet 7:
Diversifying Production 🏭
From one co-manufacturer to owning a facility, Hunter understood the dangers of depending on a singular supply source. Diversification mitigates risk, a lesson underlined by the pandemic. #SupplyChainManagement
Tweet 8:
Adaptation to Consumer Behavior 🔄
Hunter moved away from a DTC model when it proved costly and veered towards a retail point of purchase approach, capitalizing on consumer habits. This flexibility maximized market penetration for Koya. #MarketAdaptation
Tweet 9:
The Power of Community Engagement
Join the DTC POD's Slack community, crafted for DTC founders and operators to exchange ideas. This network exemplifies the value Hunter places on learning from the collective experience. #CommunityBuilding
Tweet 10:
Wrap-up: From regulatory adeptness to unflinching focus, Christopher Hunter's tale with Four Loko and Koya exemplifies the tenacity, strategic thinking, and customer-centric mindset required to win in today's market. #BusinessLessons #DTCPOD
Future State, 6 reasons post
In just two years, Koya has skyrocketed to a massive 100 million in retail sales and established a nationwide presence in over 30,000 retail locations, including a strategic partnership with Starbucks. From the shaky beginnings of an unsustainable business model to a brand that's shaping the food and beverage industry, Koya is carving out its space in the marketplace. Looking ahead, imagine a future where Koya not only continues to solidify its dominance in the market but also becomes synonymous with healthy, convenient, and sustainable nutrition.
BACKGROUND:
Transitioning from an alcohol brand phenomenon to capturing the health-conscious consumer's heart, Koya set forth on a journey of incredible growth with a scrappy, innovative spirit at its core. The brand's progression has been inspiring, navigating from a period where initial launches faced spoilage setbacks at Whole Foods to scaling to national retailers, proving the viability and demand for Koya's products to consumers and investors alike.
Old State:
Dependence on traditional retail launches
Overcoming industry and scale challenges
Reactive to market conditions and consumer demands
Limited product range and market positioning
Future State:
Leader in innovation within the nutrient-rich beverage sector
Proactive market expansion and consumer engagement
Full range of family-friendly products, catering to all lifestyles
Premium brand identity with accessible options for a broader market
As Koya continues to surge forward, prioritizing innovation while firmly rooted in its founding principles will be critical. Here are six tactics that, if executed, could soar Koya to even greater heights:
Develop a wider array of flavors and formulations to cater to an expanded consumer base and dietary needs.
Strengthen the DTC channel with tech enhancements, making online ordering seamless for the consumer.
Leverage data analytics to gain a deeper understanding of consumer preferences and trends for strategic product development.
Implement a robust brand ambassador strategy to foster organic growth through influencer and community engagement.
Expand environmental sustainability initiatives, packaging, and sourcing to align with global shifts in eco-conscious consumerism.
Engineer strategic partnerships with fitness and wellness platforms to synergize brand visibility with lifestyle promotion.
With a firm foundation in the rapidly evolving consumer space, Koya has the potential to redefine the standard for healthy beverages, making nutritional enrichment accessible to everyone, anywhere.
P.S.
What strategies do you think will secure Koya's future as a leader in healthy beverages?
Do you believe innovation in product offerings and sustainability will be key in driving Koya's growth and consumer adoption?
About the Episode
In this episode of DTC POD, our esteemed guest Christopher Hunter shared the remarkable journey of Coia, focusing on the initial hurdles and the critical pivot that propelled the company forward. Struggling with an unscalable model and on the verge of insolvency, the company doubled down on creating a replicable formula for success. The turning point came with a major broker's backing, catapulting Coia into a national spotlight with an influential launch at Whole Foods. This level of recognition not only enhanced Coia's legitimacy in the industry but also set the stage for expansion into major retail players like Publix, Kroger, and Starbucks, charting a path of gradual but tangible growth.
Digging deeper into the episode, Christopher Hunter opened up about the challenges that Coia faced with its initial rollout at Whole Foods. The company encountered significant setbacks when much of their inventory spoiled, leading to unanticipated expenses and a crucial capital-raising phase. It was a lesson in perseverance and adaptation; despite the stumbling blocks, the team didn't lose sight of their goal. By sticking to their vision and diligently proving their concept, Coia smoothly transitioned from a single-retailer focus to achieve widespread distribution growth over the next few years.
Moreover, Hunter emphasized the importance of agility in business, especially regarding governmental regulations and building solid partnerships, drawing parallels with his experience at Four Loko. He revealed that Coia had to revise its expansion strategy impressively, outpacing its own three-to-four-year projection by breaking into both specialty and conventional retail within the first year, thanks to their products' high velocity and clear success. By securing a self-owned manufacturing facility and diversifying their supplier chain, Coia positioned itself to weather supply chain disruptions adeptly, further evidence of Hunter's forward-thinking strategy for sustained success in the volatile consumer brand landscape.
About the Episode
In the latest episode of DTC POD, Christopher Hunter shared his invaluable insights gained from his journey with Four Loko to the successful scaling of his current venture, Coia. A major turning point for Coia was securing support from a major broker, which catapulted the product onto the shelves of national retailers like Whole Foods. Despite encountering a major setback with inventory spoilage, Christopher emphasized the importance of building a resilient and scalable business model. Through perseverance, the brand overcame the initial hurdles, demonstrating the product's viability and securing partnerships with larger retailers such as Publix and Kroger, leading to their significant distribution growth.
Christopher provided a candid look into the regulatory challenges and foundational business partnerships that shaped both Four Loko's rapid industry ascent and catapulted Coia's growth. Where Four Loko had to adjust to the changing landscape of government regulations and market demands, Coia too evolved to solidify its place in the better-for-you food and beverage space. By fostering strong relationships and adapting to new rules, his companies were able to maintain momentum and flourish. Christopher's account highlighted that while product innovation is crucial, navigating the external business environment with agility is equally critical for sustained success.
The nuances of brand-building in the competitive beverage industry were laid bare as Christopher discussed the journey of Coia. From the early days of grappling with a struggling business model and solvency issues, the company refocused on establishing a scalable product formula and gradually built credibility. This strategic pivot not only resulted in a successful national launch but also paved the way for a major leap into massive retail partnerships, reflecting the company's steady rise from its precarious beginnings to becoming a household name. Christopher's narrative illustrated the importance of evolving product strategies and the relentless pursuit of growth through diversification and building a strong retail presence.
About the Episode
In this episode of DTC POD, Christopher Hunter shares his candid experience with scaling Coia, navigating the complexities of the food and beverage industry. Facing challenges with initial unscalability and finding himself at the brink of insolvency, Hunter reveals how crucial it is to secure robust industry support to gain legitimacy. The pivotal moment for Coia came with the creation of a scalable formula and the subsequent partnership with a major broker. This was a breakthrough that allowed the company to launch nationally and secure a coveted spot on the shelves of Whole Foods.
As Coia began building its presence in major retailers, Hunter outlines the strategic importance of proving your product’s concept before attempting to expand. While dealing with setbacks like spoiled inventory at Whole Foods, which necessitated additional funding, they displayed perseverance and proof of success, which ultimately led to partnerships with powerhouse retailers such as Publix, Kroger, and eventually, Starbucks. It's a tale of slow beginnings turned significant growth through persistent effort and strategic positioning in the market.
Christopher brings to light the lessons from Coia’s journey, emphasizing the value of adapting swiftly to regulatory landscapes and solidifying a business’s foundational partnerships. He draws parallels with his experience with Four Loko, offering listeners an understanding of how to remain resilient and innovative in the face of industry pushbacks. As he reflects on the growth of Koya, Hunter underscores their forward-focused vision for building the best product, exemplified by their deliberate expansion into protein-forward categories, and their initiative on the new kids' line, all while keeping a keen eye on innovation within the sector.
DTC Pod Linkedin
🚀 New Episode Alert! Christopher Hunter, co-founder of @Koya, uncorks his journey with us on DTC POD. From navigating the wild ride of co-founding @FourLoko to steering the evolution of Koya into a household name in the better-for-you beverage space. 🌿✨
Christopher spills the tea on overcoming early setbacks, skyrocketing from Whole Foods to major retailers like @Publix, @Kroger, and @Starbucks, all while blending innovation with a robust protein-packed formula. 🥤💪
Dive into Christopher's lessons on scaling up, staying resilient against industry tides, and the quest for creating the ultimate beverage line-up.
Tune in with host @BlaineBolus for a sip of success stories and strategies that fizz with inspiration!
Full episode here: [Insert Link]
#DTCPOD #beverageindustry #brandscaling #retailstrategy #businessgrowth #consumerbrands
Remember to join our exclusive DTC POD community on Slack - connect, exchange, and elevate your game with fellow founders and operators. 🚀
Sponsored by @HubSpot's new Sales Hub – the ultimate tool for sales teams to close deals like a pro.🔥
Let's raise a glass to innovation and growth with Koya’s Christopher Hunter! 🥂
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