Ingredient platform brands like this have rarely scaled, though many have tried. Loss of category focus – hydration beverages and yogurt have little in common when it comes to, well, anything.Although it’s common for brands to decelerate as they cross the $100M threshold, Harmless Harvest reveals specific, common reasons for it: It has decelerated far earlier than famous beverage predecessors like Fuji Water, BodyArmour, Bai, and even Essentia. The point here is that Harmless Harvest is no Skate Ramp brand. Not bad, but 19% is far from an exponential growth rate that the highest multiple acquisitions garner. Yet, it is actually about the same growth rate as the global coconut water market (depending on whose projections you believe). Better than General Mills stock, for sure. My point is that Coke doesn’t see Zico as a brand with billion-dollar brand potential, most likely due to its core category AND because of its recent, failed experience using brand extensions to pump up Suja.Īlthough Harmless Harvest is selling less than $100M in trailing annual sales now, it claims to be on track to have doubled the business by the end of 2021 …over a trailing four-year period. This might excite the sales team at Harmless Harvest, but when BigCo kills a brand to free up distribution space, it’s because its internal analysts have determined the long-term scale potential is not worth investing in anymore (if it can recapture the original investment through a fire-sale). Coca-Cola then killed off Zico last year. The pandemic was a gut punch to any brand anchored to hydration/electrolytes, because it subtracted tons of outdoor beverage occasions during lockdowns. Because coconut water is not growing anymore in the U.S. Danone’s recent majority stake in Harmless Harvest is a curious market event.
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