Hungry for Growth, good2grow Expands into Food Category with Snackers

Hungry for growth, kids beverage maker good2grow has announced its expansion into food with the launch of Snackers baked oat and wheat crackers. Like the rest of the brand’s products, the new snack cup line is built around collectible licensed character tops licensed from major entertainment properties like Disney and Marvel.

“We’re proud to bring the best attributes parents and kids love about our beverages – kid-requested characters, convenient packaging and better-for-them ingredients – to our first product in the food category,” said CEO Gunnar Olson in a press release. “Snackers represent an exciting new chapter and significant opportunity for our brand.”

Launched in 2001, the Atlanta-based company has found success in the highly saturated kids beverage category in large part due to its multitude of licensing partnerships with some of the biggest names in the entertainment industry. Each of its five beverage lines – Fruit & Veggie Blends, 100% Juice, 75% Less Sugar, Fortified Waters and Organic Milks – feature collectible bottle tops with characters from the aforementioned Disney and Marvel, plus Universaland Hasbro.

In 2021, good2grow was acquired by Chicago-based private equity firm Wind Point Partners, which purchased the brand from its owner Kainos Capital. Under Kainos, the brand expanded its DSD distribution network nationwide, added milks and water to the product portfolio and revamped the brand’s marketing strategy.

According to VP of marketing Edzra Gibson, the brand’s success in kids beverages has also been driven by “the value created by [its] products for all stakeholders in the purchase cycle.” Unlike some other companies that utilize licensed products as limited time offerings, good2grow forms long term partnerships, he said, which allows the brand to build consumer awareness and strengthen its presence in the category.

“Our brand concept is disruptive to existing categories due to our innovative approach to packaging combined with the appeal generated by our licensing partnerships,” Gibson told BevNET via email. “We feel our approach is flexible and yields numerous opportunities in the food and beverage space.”

good2grow’s first foray into the food category was driven by consumer demand and validated by independent consumer studies and conversations with the brand’s closest retail partners. According to a new report from Packaged Facts, the retail market for children’s food and beverage products experienced average annual growth of 8% from 2017 to 2022 due to “new value-added product introductions, boosted grocery sales during the pandemic and high levels of inflation that led to price increases.”

Other popular snack brands have also developed well received licensing partnerships, such as Partake’s Sesame Street baking mixes, Chloe’s Avengers and Spiderman popsicles, and Hippeas Minion themed puffs.

good2grow joins a limited cohort of other kid-centric, better-for-you brands whose portfolios feature both food and beverage products, including Mott’s (apple juice and fruit snacks and Tree Top (juice and dried apple crisps) and Brainiac Foods (whole milk yogurt squeeze pouches and drinks).

Available in two flavors at launch – Cinnamon and Chocolate – Snackers are sold in 2 oz. single-serve packages and topped with reusable lids featuring characters from Disney, Nickelodeon, Hasbro and Comcast Universal, among others.

As the snack line continues to grow, the brand will seek out opportunities to merchandise its food and beverage products together. According to Gibson, the brand “feels [its] beverage and snacking product lines create a compelling and versatile all-in-one meal solution for young families.”

Snackers are currently available at select regional retailers including Meijer, GIANT and Stop & Shop, with national distribution slated for spring 2023.

“We are confident that good2grow Snackers’ unique consumption experience and usage occasions will separate us from the current category offerings,” said Gibson. “Similar to our brand’s effect on the beverage category, our differentiation will drive incremental growth for the category instead of cannibalizing existing players.”