When added-value comes in the form of bite-sized chocolate, we’ll all ears.
We asked Adam Deremo, co-founder and CEO of AWAKE, a pioneering functional food brand, about its sweet spot.
For those who haven’t heard about AWAKE caffeinated chocolate before, can you give us an elevator pitch on the brand and products?
“AWAKE is the pioneering brand in functional chocolate. Each of our delicious bite-sized chocolates is fortified with 50mg of caffeine, but without tasting of coffee. The result is a sweet treat that puts a little extra pep in your step.”
What are you doing differently from other sweet functional food brands in terms of the science of the product and the positioning of the brand?
“Taste is our ‘north star’ and the biggest differentiator for AWAKE. We think of ourselves as a food company that offers value-added functional benefits, and every step in our operations reflects that philosophy. From ingredient selection and partner selection to production processes and even packaging design, we are focused on delivering a superior taste experience.”
Who are your target consumers?
“AWAKE has many benefits and broad appeal, so we serve a wide demographic. For example, healthcare workers, first-responders, commercial pilots and even students make up a large percentage of our consumers. Demographically, our largest buyer group, by far, is Millennial and Gen X women. They tend to have busy lives, so a treat that delivers some extra energy meets a real need.”
How does AWAKE deliver cut-through in the market?
“Since we are differentiated by our delicious taste, we focus on sampling and trial-driving activities to reach consumers. I’m proud to say that in the past year we distributed more than a million samples and our business has grown as a result. We also know from research that over half of consumers discover new brands in-store, so we have focused on building a large food service business with thousands of points of interruption for consumers to discover our products.”
Why do you think functional foods, in general, are so popular right now?
“In my opinion, added functionality is an expectation in most consumer purchases these days. For example, phones do a lot more than just facilitate calls, and you can buy a car that heats and massages your back while you drive. The point being that if a good or service could do more for you, consumers now expect that it should do more. From that perspective, I think the functional food explosion is just part of a larger trend.”
As the co-founder and CEO, can you tell us your story, from the spark of the idea to the launch of the product and brand, and where you currently are on your journey?
“We’re food guys – it’s what we know and love. That’s how my co-founders and I ended up working together at PepsiCo, and that’s where our journey started. We recognised that while most categories had improved consumer experience with the addition of functional benefits, the chocolate category wasn’t evolving. The opportunity to make chocolate functional was too big for us to ignore, and so AWAKE was born.
When we set out to shake up a category where the biggest brands are literally 100 years old, we knew that the odds didn’t favour our success. But passion and optimism are a powerful combination, so we decided to risk it all and walked away from corporate life to chase a shared dream.
Truthfully, the road has been long and difficult. COVID fundamentally challenged our business – 75% of our customers were forced to close. But we persevered, and now we’re a decade in and our brand is thriving.”
Why did you choose BTV as a partner for accelerating your brand?
“There are a few things that made BTV an attractive partner for AWAKE.
First and foremost, we like the team. This was super important to us because we have a ‘no jerks allowed’ policy. Everyone we have dealt with at BTV has been collaborative, cordial and candid, which we appreciate. So, the relationship has been a great fit.
Secondly, BTV brought very impressive resources to the table. Every investor promises to add value beyond the cheque, but in the case of BTV, it was clear that it would be able to deliver on those promises by connecting us with operating partners within BAT. At the same time, the BTV team was deliberate about not promising things that could not be delivered, and we appreciated that honesty.
Lastly, our goals were well-aligned. We met the BTV team at a time when we were focused on diversifying our distribution strategy into retail. At the same time, BTV was looking to invest in, and grow, functional food and beverage businesses that could succeed in the consumer goods channel and might one day be part of the Beyond Nicotine portfolio. That strong goal alignment has enabled us to work together collaboratively and successfully for the past three years.”
What’s next for the AWAKE brand?
“We are focused on continuing to grow the brand in retail channels across North America, especially the Costco Club membership programme – where we launched with Costco this year and have confirmed a second rotation in January 2025 with our Milk Chocolate Variety Pack – and grocery channels, in which we have a number of submissions pending to expand the distribution of our multipacks. We’ve made big progress in the past 18 months, but we still have a huge runway of growth in front of us.
We’re also focused on product innovation and have some very exciting new products that deliver functional benefits beyond caffeine set to launch in 2025. Stay tuned for more news on that front!”
Any words of wisdom to aspiring entrepreneurs out there?
“One, try to get some prior experience in the industry that you want to launch in. It’s not a sexy message, but it really helps to know how an industry works before you get going. In our case, my co-founders and I all had more than 10 years of tier-one experience and it has made a big difference. We avoided many potential pitfalls because of it.
Two, perseverance or grittiness are required. The media loves to celebrate start-up success stories, but when you dig in and do the research, it’s amazing how many ‘overnight’ success stories were over a decade in the making. So, be prepared for adversity and be ready to fight your way through it.”
Find out more about AWAKE, and shop premium chocolate with a caffeine boost, at awakechocolate.com
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