Issei Lands in Target, Sets Sights on Achieving Profitability Next Year
Hot on the heels of its second birthday, Issei is bringing its better-for-you mochi gummies to the global aisle of 141 Target locations nationwide. The new retail partnership brings the brand’s total distribution footprint to over 2,500 doors nationwide as it forecasts achieving profitability next year.
Target will initially carry the brand’s two best-selling SKUs – Strawberry and Mango – with a SRP of $3.99 per 1.76 oz. pouch.
Issei gummies are also sold at Whole Foods Market, Sprouts Farmers Market, Walmart, Raley’s, Hy-Vee and World Market, among others. Additionally, the brand distributes to World Bank offices and the Compass Group network.
Nearly all of the brand’s retail partnerships have emerged from conversations founder and CEO Mika Shino had with buyers while exhibiting at Natural Products Expo West for the first time in 2022 – just six months after launch.
According to Shino, the brand’s retail strategy thus far has been centered around landing as much distribution as possible “before the copycats come.” As the first mochi gummy candy to hit the U.S. market, the brand has quickly garnered attention from buyers and brokers alike at trade shows like Expo West, and thus far, Shino has forged each of the retail relationships herself while learning to navigate the industry.
“It wasn’t like we planned not to [use a broker], but it just happened to work out that we were able to get where we are without a broker,” said Shino.
She continued, “[All of the buyers] have embraced the product. And I thought, we can harness these relationships. Every time I speak to a buyer, I learn about their strategy.”
After landing Target, Shino chose to bring on her first broker to help facilitate the logistics of the launch, such as onboarding and distribution. As the company continues to grow, she says she is hopeful about continuing to work with brokers in the future.
According to SPINS, Issei contributed 8% to the overall growth of the gummy candy subcategory in the natural channel in the 24-week period ended June 16.
The non-chocolate candy category – which spans gummies, chewy candy, hard candy, licorice, lollipops and marshmallows – has remained a consumer favorite through prosperous, inflationary, and pandemic times, per a report by the National Confectioners Association. The gummy market itself was valued at $23.9 billion in 2023 and is expected to grow at a CAGR of 11.8% between 2024 and 2030, fueled by a demand for unique flavors and plant-based offerings, as reported by Grand View Research.
Issei’s positive reception from buyers and consumers alike has been driven by its better-for-you attributes as well as its unique texture, achieved by using mochi as its base ingredient. Earlier this year, the brand rolled out two new flavors: Yuzu and Tangerine, which joined the brand’s core lineup of Strawberry, Mango, Sour Watermelon and Vanilla.
“For buyers, [these products] bring incremental growth to the category. People aren’t going to try to figure out whether they should buy mochi gummies or M&Ms. They’re going to buy mochi gummies and M&Ms,” said Shino.
Looking ahead, Issei plans to spend the next six months doubling down on R&D while executing its long pipeline of innovations leveraging the candy’s unique texture as a blank canvas. Shino said the brand is constantly testing out new iterations, and, at any given time, the kitchen is full of approximately 180 different flavors.
“We’re looking into different categories and trying to figure out what is the best way in which we can use this texture as a carrier. There are a lot of ideas, and each idea takes time to figure out,” said Shino.
