Beverage Business INSIGHTS
January 25, 2011
Activate Heads into Coast Brands Network to Boost C-Store Coverage; Possible 'Anchor' Brand?
Activate and its early investors at First Beverage Group present
themselves as savvy operators long familiar with nuts and bolts of
building distribution. That makes brand's move into Coast Brands
Group network significant endorsement of intriguing idea, which
weaves together established distributors into net that promises
in-depth retail coverage throughout West Coast states and beyond.
Both Activate and First Beverage confirmed move, initially for
convenience-and-gas and indie stores on West Coast, with
discussions proceeding about subsequent move into Southwest and
Southeast regions being assembled by Coast. "Great brand with a
great future," Coast founder Bob Groux said of newest client. "It
proves we're even a value for them, even though they've got their
own people" and count Southern Calif as core territory. To date
Coast's clients either have been publicly traded brands Celsius and
New Leaf, with pressure to boost topline quickly in order to bring
in new resources, or smaller plays like Oh Yeah and Her. By
contrast, Activate isn't lacking for resources on heels of big
investment by India's Tata and has been adhering to deliberate
growth strategy. Recall that First Beverage was launched by
beer-distribution vet Bill Anderson, abetted operationally by
former Columbia Distributing gm Joth Ricci, and its Activate unit
is run by distribution vet Dan Holland as prexy. "I believe Bob has
a good foundation of people and a real good go-to-market model,"
Dan told BBI. "I believe Activate can be a huge 'anchor' brand for
Coast and a possible further relationship with Coast is a strong
possibility."