With few barriers to entry and younger consumers seeking alternatives to sugary drinks, start-ups in everything from juices and coffee to flavored water are flourishing, says the New York Times. The onetime founder of Odwalla, for example, has rebounded with a nut-drink company called Califia Farms that has hit $100 million in sales within four years.
“Today it’s possible for a company to develop a drink and cut a deal with an assembly line for hire to produce it, and negotiate another deal for someone to distribute it. Just a decade ago, it required far more capital and, eventually, a sprawling operation,” the Times said.
Another flavored water named Bai that was outselling Vitaminwater was sold to Dr. Pepper for $1.7 billion recently. Another company named Hint Inc. is on track for $90 million in sales. “And new juice businesses like OnJuice, Misfit Juicery and Roots Juices, many of which start out selling their products online, come to life every month, or so it seems,” the Times said.
Although Califia farms started with nut milks, it has quickly expanded into “almond milk drinks flavored with things like ginger, mocha and matcha. More recently, Califia is putting the almond milk into cold-brewed and nitrogen-infused coffees, a technique borrowed from the beer business,” the Times said. “The nitrogen imparts a sweetness to coffee, helping to reduce the amount of sugar needed.” Bottled coffee is one of the fastest growing beverage categories in the U.S. and Califia’s cold-brewed version outsells the packaged Starbucks version, according to the Times.