The Evolving Retail Landscape of Emerging Beverages

Danny Stepper CEO L.A. Libations

@globestepper

NAVIGATING A DIFFICULT LANDSCAPE

▪ 1/3 of growth in the beverage market occurs in brands

& categories that barely existed 5 years prior

▪ By 2020, The global beverage market is predicted to

grow 60 billion unit cases in volume & $600 billion in

value

▪ Entrepreneurs are driving disruption

▪ There are over 3,500 beverage brands in the market &

on average, over 330 new brands launch each year

▪ Only 2% of brands make it to $10 million in revenue

Source: The Coca Cola Company, Venturing and Emerging Brands (VEB) Study

We are creators and innovators with a thirst for disruptive ideas. Together with our eco-system of entrepreneurs, retail partners

and The Coca-Cola Company we create beverages that change the way the world drinks.

L . A . L i b a t i o n s

DEAL FLOW / EMERGING TRENDS IDENTIFICATION

23

4629

836

SALES RANGE (NUMBER OF BRANDS)

Under 50k 50k-150k 150k-300k

300k-500k 500k-1m 1m-3m

3m-5m 5m +0 5 10 15 20 25 30

LAL Initiated

Reference

Website

VEB

Ad-Hoc Samples

CONNECTION CHANNELS

0 2 4 6 8 10 12 14 16 18

Less than 6 months

6 months to 1 year

1-2 years

2-3 years

3-5 years

5-10 years

10+ years

YEARS IN BUSINESSEM ER G IN G T R EN D S T O T A L

S pecial D iet 2

S parkling W aters 4

P rotein 3

P robiotic 1

N ew A ge T eas 8

N ew A ge M ixers + A lcohol 7

N atural Energy 13

K om bucha 5

H ealthy D igestion 13

Functional W aters 18

D airy A lternatives 2

C offee 6

C B D 10

B io-hacking/A daptogen 10

B etter for Y ou H ydration 4

C H A N N ELS T O T A L

LA L Initiated 30

R eference 31

W ebsite 19

V EB 3

A d-H oc S am ples 23

S A LES R A N G E T O T A L

U nknow n 41

P re-R evenue 5

50k-150k 6

150k-250k 6

250k-500k 3

500k-1m 9

1m -3m 8

3m -5m 3

5m + 6

0 5 10 15 20

Special Diet

Protein

New Age Teas

Natural Energy

Healthy Digestion

Dairy Alternatives

CBD

Better for You…

EMERGING TRENDS

AT THE END OF THE DAY ITS ALL ABOUT THE CONSUMER…...ALWAYS

ENGAGEMENT SPECTRUM• HEALTH & WELLNESS

• SPECIALTY & CRAFT

• EXPERIMENTATION

• LEGACY CATEGORIES ARE GETTING DISRUPTED

• RETAILERS ARE ACTING ACCORDINGLY!!!!!!

NEW CATEGORIES EMERGE LEGACY CATEGORIES DISTRUPTED

Kombucha

PLANT BASED

KETO

CBD

SportsDrinks

ENERGY

MILK

CONSUMER DRIVEN RETAIL RESPONSE ENTREPRENEURIAL FIRE

CHANGING LANDSCAPE RETAILER DRIVEN INNOVATION

Serving Size 8 fl oz 8 fl oz

Calories 60 60

Total Fat 0g 0g

Sodium 570mg 820mg

Carbohydrate 15g 13g

Sugar 10g 11g

Organic Tomato Juice

NO High Fructose Corn Syrup

NO Artificial Flavors

NO MSG

NO Preservatives

NO Colors Added

▪ At least $500mm category▪ 42 Influential Stores▪ 30% Market Share

FRAGMENTED EVOLUTION

2009

CHANGING LANDSCAPE

WHAT INNOVATION USED TO LOOK LIKE

WHAT INNOVATION LOOKS LIKE TODAY

FRAGMENTED EVOLUTION

2009

CHANGING LANDSCAPE

FRAGMENTED EVOLUTION

2009 TODAY

CHANGING LANDSCAPE

CPGs ARE POSITIONING THEMSELVES FOR THE CHANGING LANDSCAPE

RETAIL INITIATIVES SUPPORTING INNOVATION WITH STRATEGIC INVESTMENTS

INCREMENTAL PLACEMENTSMARKET EXECUTION

TAKEAWAYS

• FRAGMENTATION

• HEALTH & WELLNESS

• SPECIALTY & KRAFT

• NEW CATEGORIES ARE EMERGING

• LEGACY CATEGORIES ARE GETTING DISRUPTED

• RETAILERS ARE ACTING ACCORDINGLY!!!!!!

THE WORLD IS CHANGING

INNOVATION – A REAL TIME EXAMPLE

INNOVATION – A REAL TIME EXAMPLE