Enhanced Cold Brew Coffee
KOLD brand is an enhanced cold brew coffee that is crafted using high-quality coffee, combined with functional mushrooms.
How, who and why was it started
FunGuys Beverages (“FunGuys”) started in British Columbia with three individuals who care about you crushing the day as much as improving your overall health. Basically, the FunGuys team wanted to provide a sustainable and community-driven coffee ritual for Millennial and Gen Z consumers. FunGuys is the leading distributor of organic Chaga and Lions Mane mushroom-infused cold brew coffee under the KOLD brand.
The KOLD brand is an enhanced cold brew that is crafted using 100% high altitude, Arabica beans from Columbia. The coffee is then infused with organic Chaga and Lion’s Mane mushrooms. Slow roasted chicory is added to promote digestive health, which also results in a smooth flavour profile with notes of chocolate and sweet fruits.
Each serving of KOLD coffee contains 160mg of these fungi, turning a daily beverage addiction into a ritual stimulant and functional supplement. Equally important is how the earthy notes of chicory combine with our proprietary blend of mushrooms to enhance the flavour and overall enjoyment of your everyday coffee routine.
With coffee and caffeine being deeply ingrained into the average adult’s daily routine, FunGuys thought it was time to let coffee be not only fun but functional for your entire day! It is believed that Chaga mushrooms, one of the oldest natural medicines, can promote gut health and decrease inflammation. The immunity-enhancing properties of Lion’s Mane, which is also known to support cognitive health, are also a no-brainer addition to our flagship beverage.
FunGuys’ unique product offering of mushroom-infused cold brew coffee aims to capture a portion of the ~US$23 billion functional mushroom market. Not only is FunGuys providing a healthy alternative in the coffee market, they’re also creating the most sustainable coffee ritual for Millennial and Gen Z customers.
Billy Goat Brands owns a 100% interest in FunGuys Beverages and will be working with the FunGuys team to connect them with capital, marketing and strategic partnerships to elevate not only the KOLD brand of cold brew coffee, but also to position FunGuys Beverages as a leading mushroom-infused cold brew coffee producer and distributor.
FunGuys will be expanding globally, while first focusing on the US. FunGuys is focused on the Millennial and Gen Z consumer base, as they represent a higher-income demographic and have embraced cold brew coffee as a luxury item. For most Millennials and Gen Z consumers, coffee is more than a product – it’s an experience – and they are willing to spend extra money on it as a luxury item. While Millennials and Gen Z consumers continue to embrace luxury brands, they also value ethical spending and brands that offer sustainability and eco-friendly products.
The ritualist behaviour of consumers is typically reserved for high-quality teas, alcoholic beverages and nutritional supplements. There’s a market opportunity for KOLD to reposition coffee as a focused, functional and enjoyable experience for the socially conscious consumer.
KOLD will be packaged using reusable glass bottles through a partnership with Terracycle’s LOOP program. LOOP takes the sustainability of its packaging seriously – reusable design guidelines must be met by any product listed on the LOOP platform. LOOP has support from major American, Canadian and European grocery retailers and consumer packaged goods brands. KOLD’s philosophy is in line with LOOP’s mandate “to create a new way to shop for all your favourite products without the waste”.
LOOP – How It Works:
Future & Growth
FunGuys has engaged Brew N Bottle as a key product formulation partner. Brew N Bottle has developed and produced products for Fortune 500 brands such as Starbucks, Whole Foods Market, Hershey’s, Folgers and Seattle’s Best, to name a few. This partnership will allow FunGuys to leverage Brew N Bottle’s formulation services and position the KOLD brand for the North American luxury coffee beverage industry.
FunGuys has plans to launch the KOLD brand by the early Fall of 2021, by using online distribution channels such as Amazon.
How Billy Goat Brands will help
Billy Goat will offer FunGuys a number of go-to-market strategies and pathways for its innovative brands. Billy Goat will provide both capital and expertise to FunGuys in order to successfully execute on the launch of the KOLD brand.
Key Stakeholder Q&A with Tony Harris
President & CEO of KOLD
Q: When did you get involved with the company?
A: I partnered with the team back in 2019, which consists of Scott Marr and Jason Fortin. Our vision was to develop a world class coffee company that brings the ritual back to people’s coffee experience while shattering the approach to single use packaging that contributes to the degradation of our environment and oceans.
Q: How have you seen the company change and grow since then?
A: As our team continues to grow, we are committed to creating a strong vision of a market leading coffee beverage that is not only function but also fabulous. We partnered with LOOP to reinvent the approach to packaging for our concentrate and ready to drink SKU’s. All of our products are available in glass bottles that can be returned to our company for re-use. However, if they don’t LOOP back to use, we ensure that that glass is the most ubiquitously recyclable material on earth.
Q: What are some opportunities for growth and market penetration that you’ve identified for KOLD?
A: KOLD is going to refresh the coffee industry and bring a leading market contender. Our products continue to prove its mind-blowing smooth and delicious taste, while showcasing it’s sleek packaging. We believe our direct to consumer sales strategy combined with our partnership with LOOP will attract those coffee fans to our inherently progressive company.
Is it a good idea to invest in coffee?
At Billy Goat, we do not provide investment advice and all investors should do their own due diligence prior to making any investment decisions that are appropriate for their own portfolios.
Investments in the coffee industry have been on the rise as recent trends have shown that specialty coffee sales have been increasing by 2% per year, which accounts for 8% of the US coffee market. Overall coffee sales have risen to US$32 billion in the US market. With FunGuys entering the market with its cold brew coffee beverages, Billy Goat Brands will be able to offer investors access to a coffee investment as part of its diversified portfolio.
Since KOLD is a mushroom-infused cold brew, KOLD is both a specialty coffee brand and its products can provide health benefits as part of the wellness-driven economy.
Is cold brew profitable?
The cold brew coffee market is projected to grow from US$511 million in 2020 to US$1.5 billion by 2026, at a CAGR of 19.3%, while the functional mushroom market is projected to reach US$34 billion by 2040 at a CAGR of 8.0%. These numbers show that the global coffee market is projected to grow significantly in the near term, especially for specialty coffee products such as mushroom-infused cold brew products. FunGuys Beverages presents a unique coffee investment opportunity through the introduction of the KOLD brand to the market.
Coffee consumption continues to rise with millennials shifting their consumption habits to more sustainable and luxury products like cold brew coffees.
Is cold press coffee better for you?
As people today care more than ever about what they are putting in their bodies, combining functional health with the accessibility of cold coffee is an opportunity worth exploring.
Unlike regular coffee that uses hot water, cold brew coffee is made using cold water. Due to how cold water infuses with coffee, cold brew generally tastes sweeter than hot coffee as it has lower acidity levels and less bitterness than hot coffee. This may be more easily digestible for individuals who are sensitive to caffeine. Further, coffee has antioxidants that may help prevent cell damage that can lead to chronic illnesses like heart disease, diabetes and cancer.
Many coffee companies are now offering alternative wellness solutions through mushroom-infused cold brews to coffee-infused protein drinks. The coffee industry continues to evolve as consumers’ values shift to include more health conscious and sustainable products in their everyday lives.
- Vancouver, British Columbia, Canada
Learn more about KOLD by downloading our sell sheet below.