To talk more about Awake's retail growth strategy, we chatted with Adam Deremo, co-founder of the brand.

Liz Parker Kuhn: Can you please talk a bit about Awake Chocolate and how it got started? How did you get the idea for the brand?

Adam Deremo: The inspiration to start Awake was purely based on consumer insights. We knew from working in the food industry (at PepsiCo) that functionality had already become a major trend in several categories (beverage, snack bars, yogurt, etc.) and we didn’t see any reason why the chocolate category should not follow that trend. At the same time, we were aware that many consumers (upwards of 20% of the general population) were looking for options to get more energy in their daily routines but were unwilling to purchase products like coffee or energy drinks because those things taste bad. We thought that we could solve two issues at once by developing a chocolate fortified with tasteless caffeine—the consumer would get the energy they were looking for in the format of a delicious chocolate treat.

LPK: What made you want to start a functional chocolate brand?

AD: As a college student, I was sure of only two things about my career: one, I wanted to work in CPG with products that people use every day, and two, at some point, I wanted to build a business of my own. I never imagined a career path that didn’t involve founding a company. After 10 years in industry working for KraftHeinz and then for PepsiCo, I came across the insights that led my co-founders and I to create Awake. We knew that the odds didn’t favor our success when we set out to shake up a mature category, but the opportunity to bring functionality to chocolate was too big to ignore, so we left corporate life to chase a shared dream building Awake.

LPK: What is Awake’s retail growth strategy—how was it able to hit +55% YoY?

AD: Awake is high affinity (those who have tried it really like it), but low awareness (not enough people know about the brand). So, we are executing a penetration growth strategy aimed at increasing points of distribution across North America and complementing that distribution growth with investments in sampling and other trial-driving marketing tactics. We have a track record of strong sales velocity in food service (colleges, offices, hospitals, etc.) and we’re trying to mirror that success with other impulse channels like convenience and gas.

We’re excited to be launching this year with customers like 7 Eleven, EG America, and RaceTrac this year. We also know that Awake is consumed more frequently than regular chocolates, so we’re growing distribution of take-home packs in the natural, grocery, and club channels. We’ve seen real success with customers like The Fresh Market, Meijer, and Costco, and we’re launching this year at Sprouts, Albertsons, HEB, and Stater Bros. Most of our growth last year came from same-store sales increases, and we think the rate of growth will speed up this year as we enter new retailers.

LPK: Awake is a Canadian brand—does it approach the U.S. market differently vs. Canada’s?

AD: We’ve found that Canadian and American consumers are closely aligned when it comes to their snacking interests. They are both looking for options that taste amazing and deliver added value, like functionality. From that perspective, it’s been seamless to grow in both countries. We focus on making chocolates that are truly delicious, finding opportunities to spread the word online and in-person, and getting samples to as many people as possible.

The retail trade is similar in both countries as well. The most important customers are well organized, driven by data, and want brands to explain how they will help grow the category. We’ve shown that Awake drives category growth through incremental occasions (our consumption frequency is 50% higher than legacy brands), and both U.S. and Canadian customers have responded to that message.

Overall, there are a lot of similarities across markets. It also helps that about half of our team is American, so we constantly have a shared U.S.-Canada perspective internally.

LPK: How did the brand get into retailers such as Albertsons, Sprouts, Costco, TJ Maxx, and more?

AD: We worked with broker partners to secure introductions with customers like Albertsons, Sprouts, and Costco. Having partners with long-standing, good customer relationships really help a brand to get its foot in the door. Those customers were ultimately persuaded to give us a chance based on our sales data and our vision for how we drive category growth.  

LPK: How would you say Awake is different from other similar products on the market?

AD: I would say the most important difference for Awake is that we are laser focused on making great tasting chocolate. If you ask anyone on our team, they will tell you that taste is our North Star. That’s critically important because food is visceral; you physically experience it when you eat. If consumers don’t genuinely enjoy eating our chocolate, they will never buy it again. In my opinion, too many functional snacks prioritize efficacy over taste and release products that aren’t enjoyable to eat.

LPK: What is your favorite Awake flavor to enjoy?

AD: That is a tough one because I like every flavor we’ve ever launched. If I could only have one though, it would be Caramel.

Related: Awake Chocolate nabs $5.8 million investment