As athletic consumers look to cut sugars and artificial ingredients from their sports drink intake, BioSteel Sports Nutrition is aiming to compete head-on with category leaders via a new all natural, zero-sugar, RTD Tetra Pak line launching this month.
Co-founded in 2009 by John Celenza, a former sports marketer, and then-active NHL left wing Mike Cammalleri, BioSteel began as a powdered beverage maker producing zero sugar and preservative-free alternatives to products such as Gatorade and Powerade. Speaking to BevNET this week, Celenza said he and Cammalleri initially built the brand by selling (rather than giving away) the product to pro athletes and has built a reputation through word of mouth among players and fans.
“It’s been the best kept secret in sports for years,” Celenza said. “Now we’re ready to come out and tell our story.”
The new RTD products are available in five flavors: Blue Raspberry, Mixed Raspberry, Rainbow Twist, Peach Mango and White Freeze. Each SKU is sweetened with stevia and retails for $2.29-$2.49 per 16.7 oz. TetraPak. The products are also available online direct-to-consumer for $29.99 per 12-pack with a discount for subscriptions.
Alongside products such as Noomi, BioSteel is also one of the few brands in the sports drink category to embrace Tetra Pak packaging rather than the category standard of PET. Celenza said the format fits with the company’s broader message to consumers that a cleaner formulation also comes with a perception of sustainable packaging.
Last year, cannabis products producer Canopy Growth Company took a 72% majority stake in BioSteel with an agreed upon path to total ownership, an arrangement which also lends BioSteel the backing of Constellation Brands, which owns a 38.6% stake in Canopy. Access to the Constellation Brands’ distribution network, including DSD houses and marketing spend, will position the brand to rapidly scale nationwide and — by working closely with CMO Jim Sabia — initiate a mainstream advertising campaign featuring numerous pro athletes.
“It gives us an immediate route to market and immediate access to the buyers,” Celenza said. “We’re very grateful for the opportunities and, at the end of the day, it gives us a nice bank account as well. Canopy and [Constellation Brands] firmly believe in what we’re doing, their support has been unbelievable.”
To service the RTD launch, BioSteel is developing a nationwide DSD network in 48 states, with the goal of getting the brand into “every nook and cranny,” Celenza said. The company announced today a distribution partnership with Manhattan Beer in New York and Reyes Beer Division, the largest beer wholesaler in the U.S. Reyes covers both California and Florida, giving the brand two key pillars, which will exclusively carry the RTD line, in its goal to “blanket the country in DSD” within the next 30 to 45 days, he added.
Celenza said the brand will also focus on expanding into several nationwide chains and is in talks with several major retailers. He noted that BioSteel currently has distribution for its powdered line in Walmart, Meijer and CVS stores and he hopes RTD products will allow the brand to expand its shelf space within those stores.
As BioSteel targets the mainstream, the brand is relying heavily on athlete endorsements to grow consumer awareness and drive trial. NFL stars, DeAndre Hopkins, Ezekiel Elliott and Jalen Ramsey have all partnered with the company, as well as reigning league MVP Patrick Mahomes leading the pack as a top ambassador. Celenza said the goal will be to saturate the marketing over the next several weeks, but once the product is sufficiently distributed, Constellation Brands and BioSteel will “turn on” the ad spend to cover multiple marketing channels, including cable television and online.
“Mom and dad really are looking for a healthier product for the kids and the kids think BioSteel is a cool brand,” Celenza said. “So right now we’re [marketing at] the grassroots level. But then on the national side, once we get to that critical ACV number, we’re going to be able to turn on the national ad spend and you’ll see us run ads featuring Patrick Mahomes and the rest of the NFL all-star team on ESPN.”
In 2021, BioSteel will begin a partnership with three NBA teams — the Philadelphia 76ers, Brooklyn Nets and the Dallas Mavericks (with four more teams in negotiations) — to have the RTD available for players during timeouts and on the bench.
“When you have athletes like Patrick Mahomes, and [teams like] the Brooklyn Nets that want this on their sidelines, in comparison to those brands who’ve been around for 20 or 30 years, I think that’s going to speak differently and resonate like nothing before with the consumers,” Celenza said.
Looking toward the future, Celenza sees the Tetra Pak line as a leading growth driver for BioSteel. Furthermore, once U.S. federal regulations regarding CBD are clarified, Canopy Growth is prepared to use the brand to enter the nascent CBD-infused sports drink category. Although Celenza could not give a specific timeframe for when the brand may enter the cannabis space, he noted it was only a matter of when.
This story first appeared on Brewbound’s sister site, BevNet.