Entrepreneurs Holly Sutich and Bradley Hagan want to shake up the energy drink sector with their natural alternative Phoric.
The company uses guayusa as a key ingredient. Guayusa is sustainably sourced leaf found in the rainforests of Ecuador which contains natural caffeine, chlorogenic acids and antioxidants.
When a complete lockdown of the country was announced, the entrepreneurs were in the midst of launching into new stores and putting the finishing touches on important campaigns and events.
“It was heartbreaking seeing growth that we had worked towards for years be put on hold indefinitely,” Sutich says.
But Sutich acknowledges Phoric is one of “the lucky ones” that haven’t taken a huge hit due to COVID-19. It was deemed essential and still able to supply to the 23 supermarkets it supplies in the North Island and online.
Sutich says she and Hagan have taken this time to re-centre themselves and the business.
“We have done our absolute best in turning this potentially devastating situation, into an opportunity.
“And we are now preparing for the future – whatever that holds. With a focus around agility and adaptability. We will weather this storm.”
An ethical businesses
The duo is targeting the socially aware and health-conscious younger generation. Phoric’s offering also appeals to coffee-drinkers, who are wary of artificial ingredients, stimulants and sugars, but enjoy a caffeinated energy boost and see the brand as a refreshing alternative to their cup of coffee.
Sutich says as demand grows for Guayusa product worldwide, more trees are replanted in areas where the amazon rainforest has been degraded.
After researching overseas companies, Sutich and Hagan discovered a social enterprise called Runa, which has about 3000 farms in Equador with the plant. The guayusa leaf is ethically farmed by local family farms in the area to ensure fair trade.
Despite widespread competition in the space, Sutich and Hagan believe their unique offering has what it takes to compete with the big players.
“The energy drink space is definitely crowded, but we have found a tribe of early supporters who love the Phoric story, and kiwi-owned and operated ethos to help spread the word.
“The fact that we are in such a competitive space is a challenge for us but being surrounded with such incredible advisors has really helped us navigate the space,” Sutich says.
Steady growth
Phoric has been running for almost a year and is sold in 60 stores from the Bay of Plenty up to Kerikeri, as well as Parliament cafes in Wellington.
The duo hopes to continue this growth throughout 2020 and to begin supplying the drink to South Island stores.
For now, the company’s sights are set solely on New Zealand. Sutich says being a Kiwi company operating locally has its advantages.
“We have found through speaking first-hand to consumers at our instore demonstrations, that they put a lot of importance on products not only being Kiwi made, but also Kiwi-owned, rather than owned by large multinational companies.”
The duo has a sound piece of advice for budding entrepreneurs:
“If you can validate your business proposition and have the passion and drive within your team and from advisors who have the expertise to help guide you on your journey, then give it a go.
“The worst that can happen is that you take away incredible learnings, and the best thing that can happen is that you disrupt a category with change for the better.”
By Catherine Beard, Executive Director of ExportNZ
