New Distribution Boosts Xyience Sales

Published in CSP Daily News

Growth expected in Philly, Jersey, Delaware & the Carolinas

LAS VEGAS -- Xyience Xenergy announced three new partnerships that significantly increase the beverage brand’s East Coast presence: Canada Dry Delaware Valley Bottling Co., Canada Dry Potomac and Carolina Beverage Corp.-Cheerwine, encompassing Carolina Bottling, Quality Beverage and Piedmont Cheerwine.

Xyience also reported that its U.S. sales were up 16% in the second quarter vs. 2012. Along with increased distribution, contributing to the brand’s growth and a record-setting month in May is a more aggressive consumer activation program that launched in second quarter.

“These relationships are a very positive for Xyience,” said John Lennon, Xyience president. “From the Philadelphia region through the Carolinas we can go to market via a system that is extremely efficient. Our new partnerships also provide a significant increase in accounts in these areas.”

Xyience recently kicked off its relationship with Canada Dry Delaware Valley Bottling Co. that gives Xenergy greater coverage in Philadelphia, South Jersey and Delaware. Its partnership with Canada Dry Potomac Corp. covers the Baltimore/Washington, D.C., area and extends the brand’s retail presence to Virginia.

“Our relationship with this highly regarded distribution group enables us to increase our reach in the densely populated Mid-Atlantic region,” said Lennon, noting that the two distributor partnerships offer more than 500 retail doors to Xyience.

Xyience’s partnership with Carolina Beverage Group-Cheerwine means that the official energy drink of the UFC now has a retail presence in every state in the Southeast and 60% coverage in North and South Carolina. Previously, the two states were not on the brand’s roster. In the Carolinas, Xyience Xenergy’s eight SKUs have access to more than 2,000 retail doors. Consumers can expect to see product in stores starting in September.

"Carolina Beverage Corp.-Cheerwine is an important partner who understands our unique position in the energy-drink category,” said Reuben Rios, Xyience’s vice president of sales. “The exposure of our brand in North and South Carolina creates a bridge for Xyience to the Northeast, which is another big area of growth.” Rios said Xyience had several major distribution wins in the New York City area earlier this year that were supported by a large-scale UFC consumer promotion.

On the opposite coast, the brand is also making strides. Xyience’s business in Southern California is up 57% in the second quarter over 2012, according to the company.

“The category as a whole faced a challenging first quarter, but Xyience is on track to meet its distribution and sales goals for the year,” said Lennon. “We are well positioned for growth given the improved quality of our distribution, increased number of chains and the investment we’ve made in consumer activation in our core markets. Our new Xenergy + line is starting to show traction and is receiving very favorable feedback. This is evident by Xenergy + Tea’s recent gold medal BevStar Award and Xenergy + Hydration being named a finalist in CSP’s 2013 Retailer’s Choice Awards.”

Consumer activation programs supporting the rollout of Xyience’s three new noncarbonated beverages, Xenergy + Hydration, Xenergy + Tea and Xenergy + Lemonade include a mobile sampling initiative, Power to Win Tour. The tour that’s currently in progress visits six of Xyience’s top tier U.S. markets and three markets in Canada. More than a dozen sampling events are held weekly at convenience stores such as Circle K, Loaf N’ Jug and QuikTrip, summer festivals and fitness events.

Based in Las Vegas, Xyience products are designed to support an active and healthy lifestyle.