CBD-infused drinks are on the rise in the drink market. Denver's Backyard Soda Co. is now producing syrups and CBD-infuse...
CBD drinks are lacking three things: simplicity, flavor, and social norms
Backyard Soda is solving three key issues in the CBD beverage world: simplicity, flavor, and social norms.
Beverages have gotten overly complicated with adaptogens, additives and complex descriptions often times compromising taste for function, but at Backyard Soda, we believe you can have it all.
The rise in popularity of CBD means that the market is being flooded with unregulated unknown products. Many consumers want the benefits of CBD but finding artisanal, well-crafted CBD syrups and drinks proves difficult, especially when it comes to all-natural whole ingredients instead of just "natural flavors".
For the sober-curious, there is a lack of options with the flavor, feel, and social normality of a cocktail. CBD syrups and sodas allow consumers to loosen up without losing control.
Craft CBD sodas and mixers that don't make you give up flavor or fun.
Yes, you really can have it all. With Backyard Soda, you can socialize without giving up fun, flavor, or feeling like yourself in the morning. In fact, the benefits derived from cannabinoids and terpenes in hemp mean you might even wake up more refreshed the following day.
The CBD-market is crowded with seltzer brands proclaiming “balance-this” and “adaptogen-that” but we have gone in a different direction. We believe that drinks should be more fun and less drama.
That’s why we create hand-crafted, all-natural CBD-infused beverages. To meet consumers where they are in life. Because they shouldn’t have to skip the party just so they can “adult” the next day. They can have good times and good tomorrows. Real ingredients and real connections. They can have a great time without a great hangover. And they will, when they step into our backyard.
Small-batch real ingredients
Enjoy our all-natural CBD simple syrups, non-CBD simple syrups and CBD sodas straight, shaken, or stirred and with or without booze. All of our products are made in small-batches with real ingredients using local product whenever possible, even if they are more expensive.
Our simple, all-natural CBD simple syrups and non-CBD simple syrups can be used for mocktails or cocktails or added to any beverage such as coffee, tea, or soda water. They are fantastic for use with an at-home carbonated water machine (and good for the environment too!). We offer eight unique and all-natural flavors and a series of recipes inspired by classic cocktails or creations by top mixologists to try — gourmet drinks made simple.
All of our simple syrups and ready to drink cans contain 15mg of full spectrum CBD (sourced from Colorado) per serving. That means you are getting the entire entourage effect of the whole hemp plant.
Our sodas come in three flavors: ginger-lime, lavender-lemon and mango-jalapeño, all of which contain 15mg of full spectrum CBD.
80+ stores in Colorado
We are now retailing at 80+ stores in Colorado and are expanding rapidly thanks to our loyal customers and increased brand recognition.
Our syrups sell at Whole Foods and Backyard Soda has been featured in the local producers series, and will soon be distributing nationwide. Our products are also found in liquor and specialty stores, cannabis/hemp stores, and on-premise restaurant, bar, and brewery accounts. As the non-alcoholic cocktail, and CBD cocktail menus continue to grow, the bar managers and creative bartenders are excited to bring on a product that doesn't compromise the taste they want on their menu.
A loyal customer base
We focus on multiple groups of customers: The consumer, the bar manager, and the retail buyer.
Consumer: Looking for something interesting to drink with or without alcohol because they have sophisticated palette and feels that most non-alcoholic options are boring. Wants to be social and fun, but finds it difficult to drink alcohol every time they are in a social setting, therefore desiring something that is relaxing and flavorful.
Bar Manager: Knows the cocktail industry changes rapidly and it’s important for him to relevant, but needs simplicity because of his time and talent (he’s not the syrup-making type). He appreciates all-natural and local ingredients, and sees trends becoming more common for the sober-curious and CBD markets.
Retail Buyer: is inundated with product pitches and is looking for something interesting to sell, but currently feels there is a lack of diversity in new products. He favors local products, but needs product to move off the shelf. He’s curious about CBD, but needs to satisfy the need for a mixer like product that will move with other products like spirits.
Retailing both off-and-on-line
Our products retail from $12.99 for our regular syrups, $22.99 for CBD simple syrups, up to $28.99 for our 6-packs of CBD soda. Syrups and sodas can be purchased online and at local stores, including select Whole Foods locations. Our products can also be purchased from Amazon and we have just introduced a new partnership with Faire which allows us to wholesale our products via an online portal to 60K+ stores across the country.
Due to the nature of being the actual base syrup maker vs. just contracting out flavor formulation, we have the ability to deliver products in several ways:
1. Retail cans and bottles
2. Bag in box for on premise locations for a fountain gun or machine
3. On-premise for bartenders and mixologists
4. Online and online subscriptions for consumers
We are on track to make an expected gross margin of 62% on sales and to be in 300+ stores in 2020.
An exploding market
CBD beverages are a fast growing market that’s estimated to be worth $20B by 2024. Currently, the market is approaching $100M in total beverage sales, making the CAGR over 100% per year for the next 4 years. That is explosive growth.
In addition, the functional beverage market continues to be a high growth market growing at 8-9% per year. With over 100 exits for beverage companies in the last three years, the beverage space continues to be a very exciting market to be a part of.
Artisanal all-natural products made with whole ingredients
Unlike the majority of our competitors, we don’t use lab created “natural flavors” We use whole ingredients, so we press our ginger to 100% juice, our lavender is grown at a lavender farm in CO, and we use fresh 100% citrus juice for our recipes.
Additionally, the majority of our competition is focused on the sparkling water market where they simply add some “natural flavors” to carbonated water. We make the syrup from whole ingredients and therefore can deliver it in many ways…whether that be a ready to drink can, a three-gallon bag of syrup for a fountain gun or machine, or small bottles for home, bar, or restaurant use. The majority of the beverage world can’t match that.
Bringing our small batch-process nationwide
At Backyard Soda, our vision isn’t small. We want to take care of our backyard…locally and globally. We want to simplify lives and create less drama. An investment into Backyard Soda will allow us to hire more sales team members, to bring our brand to into focus nationally, and drive our business to source more ingredients from single sources that can help build communities and produce locally where the ingredient sources are.
We are building relationships with brokers and distributors, and believe we can help reduce waste by giving consumers the option of making their own CBD sodas and beverages at home with their home carbonation machines like SodaStream, DrinkMate, and Aarke. Even though we use an aluminum can that is infinitely recyclable, we can still reduce the energy we need to complete that process by carbonating your own water at home and adding our syrups.
$237K raised to date
Backyard Soda Co. was 1 of 10 cohort companies at one of the leading cannabis accelerators in the world, CanopyBoulder, in the summer of 2019. We took the idea and by the end of the program had suppliers, co-packers, and distributors in place to start their production and sales. Backyard Soda Co. was one of the first CPG companies that CanopyBoulder has ever invested in, and successfully raised a crowdfund of $107K in 45 days in the fall of 2019. Seeing how the crowdfund was a great opportunity for investors to get into an exciting new market, and also be strong brand ambassadors, we decided to open a new round and are excited to reach the new goal.
The funds will be used for three things: Sales Activities, Marketing to support sales, and mass production to take advantage of economies of scale to increase overall margins.
We have recently hired a new sales rep, brought in a new branding and strategy team, and are talking to new brokers and distribution partners to expand their footprint.
Keeping the fun in functional
Leah and Jonathan Schultz, from Denver, CO, started infusing their Backyard Soda Co simple syrup using CO grown hemp extracted with our extraction partner out of Evergreen, CO. The idea was that they both loved creative cocktails, but didn't always want to include alcohol, so they wanted to make something they called "cocktails with benefits" using a full spectrum CBD that could replace the spirits at times, but knowing if they wanted to add alcohol, the mixture would still be great. They have always felt that function should still include fun, and so they set out to make the best tasting CBD drink on the market that always gives you that backyard feeling of being with friends, family, and the freedom to enjoy that time without feeling the social pressure to drink alcohol, and the compromise a club soda with lime or traditional soda gives. The reaction we are getting is that we have accomplished that part of the mission. Now it is time to take the mission of great taste, social impact, and no compromise to the world.
They both have BA degrees from Colgate University. Jonathan has an MBA from Case Western Reserve University's Weatherhead School of Management with a concentration in Marketing.
Jonathan has been a part of multiple startups in addition to being the Product Manager for Education Finance at PNC Bank. Leah has worked in a small company/startup environment for 20+ years.
They both love the outdoors, skiing, are huge music fans, and love to make their days as fun as possible. By combining these loves and the one thing that goes with all of them very well, great tasting beverages and cocktails, they can combine all of their passions into one business venture and still give back to the "local and global backyard" with social initiatives that keep our backyard clean.