Daydream Drinks, Eat Beyond Global Holdings’ hemp and adaptogen-infused sparkling water, aims for a third of its total revenue to come from foodservice by the end of 2022. As part of this, it is expanding its distribution across locations in Canada, wher it is based. 

“More availability for consumers and more discovery could then translate back into higher grocery sales, because if someone finds the brand at a foodservice establishment, they may want to also want to add the product to their monthly grocery cart,” Alex Simonelli, founder and CEO of Daydream Drinks, tells NutritionInsight.

“based on the metrics and the potential we see, foodservice could become a large percentage of our revenue. We are working toward building it to one-third of our total revenue by the end of 2022,” he adds.

Currently, the quick service restaurant (QSR) model generally carries conventional and high sugar products. Simonelli argues it needs a “push” to catch up on newer beverage options. 

“Foodservice will become more interested in plant-based options with zero sugar such as ours, and especially beverages centered in mood management to replac traditional options.”

The hemp-infused sparkling water is the first of its kind to be available in Canada.Expanded distribution
Eat Beyond’s relationship with Daydream Drinks dates back to May, when the former added the latter as the first beverage company to its food technology portfolio. Daydream Drinks are already available in 170 Loblaws and Superstores across Canada, but the move will see them distributed across further retail and foodservice brands.

It has also secured a partnership with Sysco and Chopped Leaf to distribute its products to 37 Chopped Leaf locations across British Columbia. 

Nonetheless, the company aims for bigger goals, seeking to expand its distribution even more.

"This early traction for Daydream is an encouraging sign that the company is on the right track, resonating with consumers, and well on its way to securing distribution in over 1000 retail stores," Michael Aucoin, Eat Beyond CEO, says. 

A new generation
According to Simonelli, the foodservice industry currently needs a push to meet a “new generation” of health-conscious customers , who seek out alternatives to the high-sugar beverages dominating the shelves. 

Daydream Drinks will be distributed in retailers and food services including Sobeys, Choices Market, Metro Ontario, Chopped Lead and Farm Body. “Customers with more elasticity, and with particular health preferences, are looking for plant-based functional drinks to have alongside their meals,” he adds. 

He continues that social media has been a forum of particular success for the company, with consumers creating a “buzz.”

Shift toward plant-based beverages
Currently, the beverage is garnering attention in independent coffee shops and larger chains such as Ghost Kitchens and Chopped Leaf. Looking ahead, Simonelli believes that the foodservice will become more interested in plant-based options.

“We’re predicting this shift will eventually happen across more foodservice chains in the marketplace. We’ve seen amazing traction thus far at almost four times the sales per location than at our average grocery store because Daydream is standing out against the limited options, and the old school pops and sparkling waters on the shelf.”

Simonelli’s predictions reflect one of the top trends identified by Innova Market Insights for 2022 that plant-based alternatives are growing in demand from consumers who seek healthier alternatives for the planet.