Duchess Meghans investment in Clevr Blends looks amazing as Clevr debuts at Target

This week, the British media has been extremely focused on Archewell’s manager stepping down and taking another job. They’re desperately trying to make “the Duke and Duchess of Sussex’s business is in trouble” into a thing. Meanwhile, nary a peep about a huge expansion for Clevr Blends, the oat-milk latte company. In late 2020, the Duchess of Sussex invested in the small, California-based company and over the course of three years, Clevr Blends has grown and grown. To the point where Clevr Blends is now in 500 Target brick-and-mortar stores across America AND Target is now carrying the latte blends online. Here’s more about how the deal came together:

After months of tweaking the look and cost of their products, two better-for-you coffee brands are ready for their first major U.S. retail launches. Clevr, which makes instant-drink mixes of plant-based lattes, is bringing four of its most popular flavors (Matcha, Chai, Coffee and Sleeptime) to 500 Target locations across the U.S. this week. Blume, a Canadian brand, is entering 90 Targets in the U.S. this week with four plant-based latte powders (Blue Lavender, Salted Caramel, Matcha Coconut and Reishi Hot Cacao). Both will sell their products — which customers make by mixing in water — on Target.com, as well.

Clevr and Blume are part of the emerging better-for-you coffee movement, which emphasizes vegan, organic drinks as an alternative to sugary, over-caffeinated drinks. So-called “superlattes” are a large part of this market and tend to contain probiotics, inflammatories or adaptogens (herbs, roots and other plant products like mushrooms that help the body respond to stress). Not all contain caffeine, although three of Clevr’s new Target blends do.

Several years ago, products such as these were considered highly-niche and needed to be purchased in health food stores. Now, more major big-box retailers are putting coffee alternatives on shelves. In the U.S., Target is seemingly leading the way, giving the category an extra boost with its newly-announced focus on wellness products.

Clevr, which was founded in 2019, began as a direct-to-consumer brand but now also sells through Amazon and 10 Erewhon supermarkets. Today, some 90% of Clevr’s business comes from DTC, although the brand is now focused on expanding to more retail partners, CEO and co-founder Hannah Mendoza told Modern Retail.

To help with this, Clevr spent the past 12 months making its packaging more straightforward. Clevr’s Target products will be the first to include this updated look, which Clevr will then roll out to all of its products. Whereas previous packaging did not list the ingredients on the front, the new packaging does. It also includes a picture of the finished latte, lists the amount of sugar and explains that the drinks can be made hot or iced. Clevr tested this branding with seven rounds of Target customers, making changes in between.

“It was amazing how much wasn’t clear that we thought it was clear,” Mendoza said. “You can’t assume anything in terms of what people are getting from your product.”

The Target products are different from the rest of Clevr’s new lineup in a key way. Clevr’s versions for Target have a smaller pack size (eight lattes instead of 14) and a cheaper price point ($17.99 instead of $28). Clevr made these changes, Mendoza said, to better fit in with coffee competitors sitting in the $16 to $19 price range in Target’s coffee aisle. “It was really important to us to have something that was sub-$20,” she said. As a result, the new packaging is approximately 6.8 ounces by weight, instead of 12 ounces.

Target approached Clevr about the expansion last January when working to build its wellness portfolio, Mendoza said. Clevr will sit in the coffee aisle at Target, alongside others that include more sugars or preservatives. It’s those brands, not other wellness ones, that Clevr sees as competition.

“What we’re asking people to do is disrupt a centuries-old ritual and routine with coffee… look at our rising stress and anxiety levels as a nation and try something new,” Mendoza said. “It’s a really big task. And so, to have one of the biggest retailers in the nation [Target] behind us and that mission is really helpful.”

[From Modern Retail]

It really is huge for the company! It’s amazing that Target reached out to Clevr Blends one year ago and Clevr redesigned their packaging and developed a smaller bag to fit in with the under-$20 range. That’s so smart, not only for the price point, but people will simply be more willing to try a product if they can get a smaller bag, not knowing if they’ll like it. Meghan’s investment in Clevr is looking smarter and smarter. And what’s even more wild is that Meghan boosted the company’s profile and product’s profile without being online – she’s never done an Instagram post about Clevr (she doesn’t have an IG account) and she’s never really given an interview specifically to support the company.

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Photos courtesy of Avalon Red, Instagram.

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