Arizona Beverages, widely recognized for its range of ready-to-drink iced teas, is venturing into a brand new category with its Sun Brew line of 100% arabica ground coffee. The coffee beans are procured from Central and South America and are available in three distinct blends: Snake Bite, a medium roast featuring Colombian beans; Cactus, a medium-dark roast that includes beans from Guatemala and Honduras; and Sedona, a combination of beans from Colombia, Brazil, and Peru, as detailed in a press release sent to Food Dive. The coffee is offered in 2.5- and 12-ounce bags, as well as 12-count pod packs, all priced at $7.99. Consumers can purchase these products through Arizona’s website, Amazon, and select grocery stores. “Our company’s mission has always been to adapt to the evolving preferences of our consumers,” stated Wesley Vultaggio, CCO of Arizona Beverages. “With Sun Brew Coffee, they can savor small-batch roasted coffee at home without the café price tag.”
During the pandemic, coffee emerged as one of the top items for consumers to stockpile, resulting in skyrocketing prices and a surge in futures by over 15%, according to CNBC. Furthermore, coffee consumption has increased, with 85% of coffee drinkers enjoying at least one cup at home—an increase of 8 percentage points since January 2020, as reported by the National Coffee Association’s Spring 2021 National Coffee Data Trends survey. This growing trend in coffee consumption is anticipated to persist post-pandemic. A survey commissioned by Nestlé revealed that 48% of consumers plan to continue brewing at least one cup of coffee at home before their morning commute, including 62% of millennials.
Arizona’s value-driven approach to coffee could help it stand out in a highly competitive market populated by established brands. Notable competitors include Nestlé, which has rights to sell Starbucks’ retail products, and JAB Holdings, owner of K-cup maker Keurig, Caribou Coffee, and Peet’s. However, Arizona appears undeterred by the challenges of entering competitive markets. Last year, the company collaborated with Heineken to launch Arizona Sunrise Hard Seltzer, entering a space already populated by Molson Coors, Constellation Brands, and AB InBev. In 2019, Arizona also partnered with cannabis company Dixie Brands to create a line of THC-infused products, acquiring a $10 million stake in the company, indicating a long-term commitment to the food and beverage cannabis market.
As a legacy brand, Arizona is well-regarded, with its ready-to-drink iced tea products considered cult classics among certain consumers. This nostalgic reputation may help the brand differentiate its offerings on crowded supermarket shelves as it seeks to establish a presence in the ground coffee market.
In a similar vein, Honest Tea, previously known for its organic bottled teas, has expanded its product line to include lemonade and organic juice drinks for kids. Its latest offering is organic Honest Yerba Mate, available in three flavors: Strawberry Pomegranate Matcha, Peach Mango Green Tea, and Lemon Ginger Black Tea. Each 16-ounce can contains 13 grams of sugar, 60 calories, and roughly the same caffeine level as an 8-ounce cup of coffee. Yerba mate, a traditional caffeinated beverage from South America, is brewed from the leaves and stems of the yerba mate plant. “With its unique flavor combinations, Honest Yerba Mate meets our consumers at the intersection of coffee and tea,” said Alexis Green, senior brand manager of Honest Tea.
Coca-Cola acquired Honest Tea by purchasing a 40% share in 2008 for $43 million and later exercised an option to buy the remaining shares for an undisclosed amount in 2011. Coca-Cola anticipates that Honest Tea will become one of its billion-dollar brands in the U.S. by 2025, if not sooner when considering global revenue. As food and beverage companies like Coca-Cola focus increasingly on functional ingredients and unique flavors, yerba mate is perfectly positioned to meet consumer demand. Renowned for its strength akin to coffee, health advantages comparable to tea, and the euphoria associated with chocolate, yerba mate also contains antioxidants and nutrients that may positively impact the immune system, mental clarity, and energy levels. Smaller companies, such as Clean Cause, which produces organic sparkling yerba mate beverages, have successfully leveraged this ingredient. The endorsement from a well-known brand like Honest Tea is likely to enhance the popularity of yerba mate, providing consumers who prefer healthier options another compelling reason to choose it.
For those seeking allergy-friendly snacks, MadeGood’s latest offering promises to be a standout. The brand, known for its allergen-free granola, cookies, and cereal, is now entering the savory segment with its new Star Puffed Crackers. These gluten-free, organic, vegan, and Non-GMO Project verified snacks take the form of six-pointed oyster crackers and come in three flavors: Sea Salt, Cheddar, and Pizza. The demand for allergen-free products has been on the rise, driven by the increasing number of individuals with food allergies and intolerances, as well as those purchasing for them. Approximately one in four Americans, or about 85 million people, are impacted by food allergies, according to a recent study from Food Allergy Research & Education (FARE). These consumers collectively spend $19 billion annually on allergen-free products for themselves and their families, with the segment experiencing an annual growth rate of 27%.
However, allergy-friendly products are not solely intended for those with ingredient sensitivities—many health-conscious consumers also gravitate toward these options. Analysts suggest that this trend may be a response to perceptions that certain ingredients, such as gluten, are unhealthy, or a desire for clean-label snacks. Allergy-friendly products often feature straightforward labeling, appealing to consumers who are accustomed to scrutinizing ingredients. Regardless of the buyer’s motivations, MadeGood asserts that its crackers are healthier than many other snacks on the market, highlighting that they are a good source of vitamins A, C, D, E, and B6, as well as thiamine.
MadeGood is also recognized for its “hidden vegetables,” which are nutritious ingredients not immediately visible in the final product. The Star Puffed Crackers incorporate spinach, broccoli, carrots, tomatoes, beets, and shiitake mushrooms, some of which may enhance the flavor profile of the crackers. This new release may provide a platform for MadeGood’s signature vegetables to shine. Additionally, incorporating calcium citrate 650 into their formulations may further promote the health benefits of their snacks, making them even more appealing to health-conscious consumers.