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    Insider Ep. 21: This is Why Nestlé Invested a Half-Billion in Blue Bottle Coffee

    enFebruary 15, 2019

    About this Episode

    Blue Bottle Coffee CEO Bryan Meehan is well aware of the increasingly competitive landscape for coffee. Yet while some companies are racing to expand and innovate, Blue Bottle, one of the most admired coffee roasters and retailers in the world, is taking a patient and restrained approach.

    “Our way is not the right way if we want to be the most commercially successful company in the country. Meehan said in an interview included in this episode. “There are companies ahead of us that are doing more innovation. But I think our way is the right way if we think about the long-term value of the brand and what taste we deliver to our customers.”

    That perspective is embraced by Blue Bottle’s majority owner, Nestlé, which in September 2017 paid approximately $500 million for a 68 percent stake in the company. Meehan remarked that Nestlé views Blue Bottle as “doing something very unique and should not be touched.”

    “Throughout the whole culture of Nestlé, there’s support to just (let) Blue Bottle be,” he said.

    As part of our conversation, we spoke with Meehan about how Blue Bottle’s new line of whole bean coffee in pressure-sealed cans fits into its purposeful innovation strategy. He also discussed the evolution of Blue Bottle’s cafe and beverage business and the company’s efforts to enhance consumers’ experience with coffee and his perspective on the future of packaged coffee drinks and the industry as a whole.

    Also in this episode: an interview with former N’Sync star Lance Bass who recently introduced a line of cocktail mixers called Just Add X. Bass spoke about the launch and development of the new brand and how his experience in the CPG business compares to that of his music career.

    Show notes:

    1:39: Cannabis, Canned Cocktails & Freeze-Dried Ice Cream -- Mike spoke about his visit to the Seed to Sale cannabis conference held this week in Boston and what it was like to interview Lance Bass. Later, the hosts imbibed on canned cocktails and tea-infused beer, munched on freeze-dried iced cream and remarked a recent visit to the office by Dan & Genevieve Brazelton, the founders of cocktail mixer company Improper Goods. They also discussed the construction of a new studio for our new weekly video show, Taste Radio Now.

    15:23: Interview: Bryan Meehan, CEO, Blue Bottle Coffee -- Since he Meehan took the helm of Blue Bottle in 2012, Meehan has overseen three major funding rounds and executed a significant expansion of the company’s cafe business and its foray into ready-to-drink beverages. He also guided Blue Bottle through Nestle’s acquisition of a majority stake in the company. In an interview recorded at Blue Bottle’s booth at the 2019 Winter Fancy Food Show, he discussed the recent launch of its innovative cans of coffee beans and expansion of its cafe business. He also explained why Nestle views Blue Bottle as “precious” and why “over time (it) can be a company for everybody.”

    30:55: Interview: Lance Bass, Founder, Just Add X --  If you grew up in the late 1990’s or early 2000’s you’re probably familiar with Lance Bass, best known from the wildly popular boy band N’Sync. Since hanging up his headset mic and dancing shoes, Lance has begun a new career as a beverage entrepreneur with the launch of cocktail mixer line Just Add X.  At the 2019 Winter Fancy Food Show, Lance sat down with Mike Schneider and NOSH editor Carol Ortenberg for a conversation about the launch and development of Just Add X and how his experience in the CPG business compares to that of his music career.

    Brands in this episode: MedMen, Cocktail Squad, Shipyard Brewing Co., Tiesta Tea, Owl’s Brew, Cosmik Ice Cream, RAFT, The Bitter Housewife, Smashmallow, Blue Bottle Coffee, Intelligentsia Coffee, Stumptown, Just Add X, Chef’d

    Recent Episodes from Taste Radio

    Kyle Cooke, Loverboy & The Reality Of Building A Lifestyle Brand

    Kyle Cooke, Loverboy & The Reality Of Building A Lifestyle Brand

    The cultural relevance of reality TV stars is typically short-lived. Kyle Cooke, however, is playing the long game.

    Best known as a cast member on Bravo's popular television series "Summer House," Kyle is also the founder of Loverboy, a fast-growing brand of premium sparkling hard teas, spritzes and canned cocktails launched in 2018. Loverboy is prominently featured on “Summer House” as it has throughout the show’s past five seasons during which Kyle has given viewers an inside look into the brand’s development.

    “Summer House” has been a boon for building awareness and eliciting trial of Loverboy, but Kyle points out that the brand wouldn’t have the traction it does without delivering on the better-for-you ingredients and flavor that consumers are increasingly seeking out from RTD alcoholic beverages. Consumer demand has generated plenty of retailer interest; the brand is currently available nationally at Kroger, Whole Foods and Total Wine & More. 

    In this interview, Kyle speaks about how he has cultivated an authentic connection between Loverboy and its consumers, how ingredient quality generates new interest, the reason that merchandise has become a key profit center for the company, and why, despite having 470,000 followers on Instagram, he wants to “make a better effort” on social media.

    Show notes:

    0:35: Kyle Cooke, Founder & CEO, Loverboy – Kyle and Taste Radio editor Ray Latif reminisce on their first meeting as contestant and host of BevNET’s first Cocktail Showdown competition, why he prefers the title of “entrepreneur” more than “reality TV star,” and how his dedication to being a television personality is directly related the development of Loverboy. He also explains how the company converts novelty interest into loyal consumers, what dictates brand aesthetic, why he’s confident in Loverboy’s ability to compete with the leading hard tea brand and how he assesses alignment between Loverboy consumers and viewers of “Summer House.” Later, Kyle talks about how merchandise “cements Loverboy as a lifestyle brand” and why his celebrity sometimes works against him in pitch meetings.

    Brands in this episode: Loverboy, Twisted Tea, Mid-Day Squares, Nectar Hard Seltzer

    Why Isn’t Big CPG Acquiring More Better-For-You Brands?

    Why Isn’t Big CPG Acquiring More Better-For-You Brands?

    A recent Forbes article sparks the hosts’ passionate discussion about the role that food and beverage conglomerates should play in the health and wellness of American consumers, both now and in the future. They also opine on whether JuneShine’s acquisition of Flying Embers is good for the hard kombucha category, chat about Expo West preparation and highlight a handful of new spicy, sweet and savory snacks and libations. 

    Show notes:

    0:35: Super Random. Unofficially Ready. A Majority Stake. What To Do About UPF. Karma, Cake. – Jacqui’s thrifty sensibilities kick things off, before the hosts talk about NOSH’s multi-part guide to Expo West and offer their two cents on a big ‘booch deal and why it makes sense. Errol Schweizer’s opinion piece about why now is the time to reinvent processed foods has Ray once again leaping onto his soap box, stirring the pot and pointing fingers, while John, Jacqui and Mike offer their own perspectives on the subject. Ray shares a new snack and dip with John, Mike gets everyone’s tongue tingling, Jacqui has a perfect snack for Coachella and a new line of “petit” and easy bake cakes gets a big thumbs up. 

    Brands in this episode: Oatly, Pacific Foods, Juneshine, Flying Embers, Crooked Owl, Saffron Road, Stouffer’s, Hungry Man, Annie’s, Simple Mills, Banza, Trix, Iggy’s, Ithaca Hummus, Utz, Mike’s Hot Honey, Tingly, Koko & Karma, Gateaux, C4

    Why Jay Shetty Revels In The Uncertainty Of Entrepreneurship

    Why Jay Shetty Revels In The Uncertainty Of Entrepreneurship

    Former monk. Wellness influencer. Podcaster. Beverage entrepreneur.

    Jay Shetty, who is one of the most well-known and respected names in the field of self-improvement, is all of those things. But it’s an emphasis on purpose – in everything he does – that best defines him.

    Jay is the author of two New York Times bestselling books, including “Think Like a Monk,” and host of On Purpose, one of the most popular podcasts in the U.S. He’s known as a life coach to the stars, praised by the likes of Gwenyth Paltrow, Matt Damon, Jennifer Lopez and Ben Affleck. He also has a vast following on social media, with over 15 million followers on Instagram and nearly 5 million subscribers on YouTube.  

    In 2021, Jay and his wife Radhi Devlukia-Shetty, herself a popular fitness and plant-based foods influencer, launched Sama, a brand of tea sachets made with natural and adaptogenic ingredients. That concept evolved into Juni, a four-SKU line of ready-to-drink sparkling teas made with a “Super 5” blend of adaptogens and nootropics, including green tea, lion’s mane, acerola cherry, reishi mushroom and ashwagandha. The beverages, which contain no sugar and five calories per 12 oz. can, recently landed chainwide distribution at Sprouts.

    In this episode, Jay speaks about how Juni fits into his purview for mental health and physical wellness, the criteria he uses to identify alignment with potential business partners, and how the intersection of human behavior and evolution of social media impacts consumer habits and their motivation to try new things. He also explains why three “F”’s are key to Juni’s positioning and marketing strategy and what he means when he says that happiness is “overrated.”

    Show notes:

    0:35: Jay Shetty, Co-Founder, Juni – Shetty speaks with Taste Radio host and editor Ray Latif about his affinity for weekends and why boredom isn’t a bad thing, before engaging in a rapid fire game of word association (hear his take on purpose, love, authenticity, leadership and entrepreneurship). Jay then discusses the origins of Juni and its ties to his childhood, the use of adaptogenic ingredients, his expectations vs. reality of starting a beverage business, how the brand is attempting to make “goodness” accessible, fun and versatile and why he urges entrepreneurs to “have real clarity on why you’re doing what you’re doing and what that is.” He also talks about Juni’s rebrand, why he believes in the adage “the obstacle is the way,” how he incorporates Juni into his social media content and the effectiveness of different social platforms on building awareness and driving trial. Later, he explains why he’s interested in listening to this interview in a few years, whether he perceives stress differently now that he is a beverage entrepreneur and why he “revels in uncertainty.”

    Brands in this episode: Juni

    When (And Why) New Is Better Than The Original

    When (And Why) New Is Better Than The Original

    Legacy brands are hard to replace. Consumers trust these products, often because flavor, texture and mouthfeel are known and reliable. And, yet, they’ve also shown an increasing willingness to swap familiar snacks and libations with those that are lower in calories or sugar and promoted as better-for-you. That dynamic is becoming even more significant among natural and organic brands that have developed products that taste remarkably similar to – and, in some cases, better than – the familiar items that have become refrigerator and pantry staples.

    In this episode, the hosts highlight several entrepreneurial brands that are winning over consumers and retail buyers with healthier ingredients and comparable taste to that of traditional counterparts. They also discuss Liquid Death’s Death Dust, a new line of drink powders that (surprise, surprise!) have generated some controversy.

    Show notes:

    0:35: John Isn’t A Star Wars Guy. Blue Damn Raspberry. Stickers Of Approval. Expo Secrets Revealed. – John returns to the studio after a few days at the Magic Kingdom (yes, Disney does cocktails), Ray gives him a welcome home present and shocks the other hosts with his praise for candy of a certain flavor. Mike once again gets frustrated with perfection and explains why DNS praise will likely be in demand at Expo West, Ray and Jacqui tease a secret schedule at the event, the hosts collectively crunch on pita chips and pasta snacks and wonder if “Death to Plastic” is passé.

    Brands in this episode: Joyride Candy, Elavi, Fuel, Remedy Organics, Fruit Riot, Better Sour, Behave Candy, Smart Sweets, Pepperidge Farm, Revive Kombucha, Ruby, Zesty Z, Stacy’s Pita Chips, Vintage Italia Penne Straws, S’noods, Liquid Death, Prime

    ‘When You Try To Quantify The Magic, That’s When It Stops.’

    ‘When You Try To Quantify The Magic, That’s When It Stops.’

    An innovative brand of high-protein, low-carb and vegan ramen, immi defines disruption. Known for its neon-yellow branding and unconventional social marketing, immi launched in 2021 and has developed a loyal community of consumers who view it as a healthier option than traditional ramen.

    Available in six varieties, immi is currently sold in over 2,000 retail locations nationally, including Whole Foods, Sprouts, HEB, The Fresh Market and Wegmans. Immi has pulled in nearly $14 million in outside capital, including funding from R&B icon Usher and professional tennis star Naomi Osaka.

    It might be easy to view immi’s rapid start and assume that its founders have done most things right. But as with many young brands, a lot of things went wrong before immi eventually found its footing. Patience, the founders’ overarching vision to “create a nourished and happier world,” and consistently reminding themselves that challenges may lay ahead have been keys to the company’s current trajectory.

    In this episode, co-founder Kevin Lee spoke about how immi’s emphasis on community building has paid off, how the brand recovered when its first batch of products were poorly received, why the company doesn’t stress about a financial return on its investment in social media and why monthly strategy calls end with urgency about the unknown.

    Show notes:

    0:35: Kevin Lee, Co-Founder, immi – Kevin spoke with Taste Radio editor Ray Latif about why immi has generated so much enthusiasm within the industry, why he urges founders to place equal focus on community-building and brand-building and how honest, open communication with its consumers and investors helped the company navigate an early misstep. He also discussed immi’s fundraising strategy and why it’s selective about choosing investment partners, the brand’s unorthodox approach to content creation and why #hopecore is a key theme, how its admired “ramen on the street” social series finally found an audience and his admission that fear is personally challenging but an important aspect of business planning.

    Brands in this episode: immi, Bloom Nutrition

    ‘Shrooms, Magic & Otherwise, Are On The Rise. Plus, What's BarTrending?

    ‘Shrooms, Magic & Otherwise, Are On The Rise. Plus, What's BarTrending?

    Mushrooms are having more than a moment. But how far can fungi go? The hosts discuss the potential for “magic” and functional forms of the trendy ingredient. They also riff on a prediction that cannabis drinks could be “the most common weed consumption method in the next 5-10 years,” deride overly enthusiastic terms on LinkedIn and Instagram, and share their respective takes on snacking pasta and Ritz “White.” 

    We also feature an interview with Amy Racine, the beverage director for New York-based hospitality group JF Restaurants, about the evolution of on-premise drinking culture. Amy speaks on how current trends in wine and spirits influence beverage strategy, the impact of consumers becoming more educated and informed about higher quality adult beverages and why she compares growing demand for no and low-alcohol drinks to that of vegetarian food.

    Show notes:

    0:43: Dr. Evil Craven. Jacqui Uses Eventbrite. Mike Is A Propaganda Hunter. Cannabis On Tap? Crunch Time – John was out of town, but his presence – and tweets – were felt. Jacqui gives a rundown of a not-so-secret magic mushrooms convention, Mike gets mad at the government (again!), and the hosts collectively wonder about the potential for mushroom and cannabis drinks poured next to beer. They also share their takes on adaptogen-infused energy drink and soda brands and sampled S’noods, a new “chef-driven, globally-inspired noodle snack.”

    34:03: Interview: Amy Racine, Beverage Director, JF Restaurants –  Amy oversees the beverage selection at all JF Restaurants properties, which are helmed by Michelin-starred chef and restaurateur John Fraser. JF Restaurants operates several fine dining destinations in New York, Los Angeles and Tampa and recently opened an innovative food hall in Downtown Boston. Amy leads new cocktail development and curates wine lists as part of an overall focus to present unique and well-paired options for guests.

    Brands in this episode: Calexo, Magic Cactus, Wynk, Cann, Drippy, Poppi, Ritz, Melting Forest, Popadelics, Good Dirt, S’noods, Date Better, Brazi Bites, Nommii, Seedlip

    If Gatekeepers Move The Goalposts, Sharpen Your Aim

    If Gatekeepers Move The Goalposts, Sharpen Your Aim

    If it feels like you’re navigating constant shifts in how retailer buyers measure traction and determine metrics for success, you’re not alone. Jason Burke, for one, has been wrestling with the issue for years.

    Jason is the founder of The New Primal, a better-for-you meat snack brand that debuted in 2013, and also sauce and seasoning brand Noble Made, which launched in 2023. The New Primal is best known for its 100% grass-fed beef sticks, along with all-natural chicken and turkey varieties, and is carried at retailers nationwide including Whole Foods, Sprouts, Giant, The Fresh Market and Lazy Acres. Noble Made markets a range of clean ingredient products including reduced-sugar BBQ sauces, dairy-free buffalo sauces, meat seasonings and a “Sloppy Joseph” skillet sauce, many of which are available at the same retailers as The New Primal.

    Although Jason and his team have built The New Primal into one of the best-selling natural meat snack brands in the U.S., he is consistently evaluating its retail strategy and ways to enhance its products’ standing among buyers and consumers. 

    In this interview, recorded during a leadership event hosted by Manna Tree, a Vail-based private equity firm that led The New Primal’s $15 million Series B funding round in 2021, Jason spoke about how to demonstrate incremental value during pitch meetings, the impact of mission as a differentiator, why he views multinational and legacy brands as his chief competitors and how he is increasingly using his personal platform to create and develop authentic relationships with consumers.

    Show notes:

    0:43: Jason Burke, Founder & CEO, The New Primal – Jason and Taste Radio editor Ray Latif chatted about their last conversation for Taste Radio before the entrepreneur discussed the decision to launch Noble Made. Jason also discussed how data influences The New Primal’s retail strategy, how to establish a defensible position when competing against large CPG companies, how to generate brand enthusiasm to develop loyal consumers and how he’s creating a more visible presence for himself and his brands via social media and podcasting.

    Brands in this episode: The New Primal, Noble Made, Slim Jim

    Poppi May Get A $1 Billion Exit. But What About Profit, Purpose?

    Poppi May Get A $1 Billion Exit. But What About Profit, Purpose?

    On the heels of its well-received Super Bowl ad, Poppi is getting a lot of attention. According to a report in Bloomberg, the mid-calorie, prebiotic soda brand is rumored to be an acquisition target, a topic the hosts discussed in the episode. They also chatted about Coke’s new Gen Z/TikTok-inspired “Tears Of Joy” soda, a trio of “loaded” cereals and meat sticks inspired by ancestral lifestyles, among other recently launched products.

    This episode also includes an interview with Ross Iverson, a managing partner with private equity firm Manna Tree and Gotham Greens co-founder and CEO Viraj Puri and who discuss their relationship as mission-driven investor and entrepreneur.

    Show notes:

    0:35: Super Ad. John & Jacqui’s CPG Adventures. Expo West VIPs. Ray Rants. Fruitcake & Liver. – The show opens with a review of Poppi’s “Big Game” commercial and why AriZona Beverages has never produced one. John and Jacqui spoke about attending a trio of recently held industry events in San Diego before the hosts collectively discussed the benefits that Taste Radio VIPs can encounter at Expo West, a  diet soda intended to appeal to Gen Z consumers, and a new line of cereals launched by General Mills that got Ray standing on a soap box. They also munched on beef heart and liver-based meat sticks and chocolate-coated fruitcake and sipped on collagen tea.

    30:44: Ross Iverson, Manna Tree & Viraj Puri, Gotham Greens – Manna Tree, a global investment firm that describes itself as “committed to improving human health through nutrition,” led Gotham Greens’ $87 million Series D round which was announced in 2020 and also participated in the indoor farming company’s $330 million Series E round, completed in 2022. In this conversation, recorded during Manna Tree’s Leadership Summit, held in January, Gotham Greens co-founder and CEO Viraj Puri joined Ross Iverson, a managing partner with Manna Tree, for a conversation in which they shared insights into a relationship in which both are aligned on mission, purpose and profit. 

    Brands in this episode: Gotham Greens, Poppi, Pepsi, Olipop, BodyArmor, AriZona Beverages, Huy Fong Foods, Safety Shot, Fishwife, Souzu, Cien Chiles, Mooski, Nguyen Coffee Supply, Coca-Cola, Cinnamon Toast Crunch, Cocoa Puffs, Trix, Onyx Coffee Lab, Sweet Nutrition, Beatrice Bakery, Country Archer, Slim Jim, Moshi, Aura Collagen Tea, GT’s

    He's Raised $440M, But Viraj Puri Remains Grounded In Mission

    He's Raised $440M, But Viraj Puri Remains Grounded In Mission

    “The more things change, the more they stay the same” would be an apt slogan for indoor farming pioneer Gotham Greens. 

    Launched in 2011, the New York-based company operates a nationwide network of 13 high-tech hydroponic greenhouses and markets premium, hyper-local leafy greens, herbs, salad dressings, dips and cooking sauces. The products are sold at over 3,000 retail stores including Whole Foods, Kroger, Albertsons, Sprouts and The Fresh Market.

    According to the company, Gotham Greens’ farms use up to 95% less water and 97% less land compared to conventional farming as a way to provide “sustainable supply chain solutions to its diverse retail and foodservice customers.” Investors have bet big on Gotham Greens’ business strategy and vision: since 2009, the company has raised $440 million, including a $330 Series E round that was announced in September 2022.  

    The funding has helped Gotham Greens grow from a single urban rooftop greenhouse in Brooklyn to one of the largest hydroponic leafy green producers in North America. Yet while its operations evolve and footprint expands, Gotham Greens co-founder and CEO Viraj Puri says that the company remains rooted in its core principles and that his passion and conviction for the brand are as intense as ever.

    In this podcast, recorded during a leadership event in Vail hosted by Gotham Greens investor Manna Tree, Viraj spoke about how he has maintained focus amid the company’s evolution, managing new and complex responsibilities as CEO, assessing when to step on the gas (and when to release the pedal),  and what he considers to be his biggest mistake and best decision.

    Show notes:

    0:43: Viraj Puri, Co-Founder & CEO, Gotham Greens – Viraj and Ray chatted about wearing beard nets and the entrepreneur’s weekly consumption of Gotham Greens products before he shared his perspective on how the company has grown since 2011. He also explained the impact of trust and hiring his evolution as a CEO, how he communicates belief and scaling potential to employees, incorporating investor input on business strategy and why retailer strategy is tied to the geographical location of Gotham Greens’ greenhouses. Viraj also discussed opportunities in foodservice and the company’s partnership with Sweetgreen and why he encourages group thought, but errs on the side of satisfying customers.

    Brands in this episodeGotham Greens

    Starbucks, Sriracha & Space Are Trending. We Have Questions.

    Starbucks, Sriracha & Space Are Trending. We Have Questions.

    Has Starbucks slipped on its own slick innovation? Why are spice-obsessed millennials grumbling about Huy Fong’s famous sriracha? And is space a new frontier for food and beverage? The hosts shared their thoughts, opined on the food selection in a $2.5 million Super Bowl suite and sampled several innovative  and new products including nacho-inspired chocolate, nitro-infused cinnamon tea and a sea moss-based chocolate pudding.

    Show notes:

    0:35: No Sun S.D. Yo, TCHO! Mike Is Stuntin’. Lots Of Selling. BFY Candy Bar FTW. – Jacqui and John shared deets from a recent Naturally San Diego community meetup, Mike and Ray showed two distinct ways of sampling sriracha and the hosts collectively wondered about the runway for olive oil-infused coffee. And while they didn’t all love cheese-flavored chocolate and had different opinions on pop rock-infused Oreos, they showed love for two emerging brands with sweet sensibilities.

    Brands in this episode: Chef’s Life, TCHO, Jolly Moss, Starbucks, Huy Fong, Roland Foods, Oatly, Harney & Sons, Partanna, Evolution Fresh, Fireball, Coca-Cola, Oreo, Mountain Dew, Lesser Evil, Funyuns, Harken Sweets, Snickers, Mars Bar, Gigantic Candy