Cdn. beverage manufacturer announces expansion into the U.S.

John and Ryan MacLellan with Cove Soda Fruity Variety 15-pack available at Costco. (CNW Group/Cove Drinks)

HALIFAX — Cove Drinks says they are announcing two business milestones, with their National debut of Cove Soda in 530 Costco warehouses across the U.S. and the launch of five new flavours in Canada.

Cove Soda says they are a zero sugar soda made with 1 billion probiotics and real organic ingredients. Cove Soda made its US debut in February 2024 hitting shelves at 140 Fresh Market locations and will roll out their variety pack at Costco nationally beginning April 1.

Concurrently, the company is launching five new flavours including Dr. Cove, Ginger Ale, Raspberry, Cherry, and Grapefruit in Sobeys locations across Canada this month. This follows the launch of their existing six flavours: Classic Cola, Root Beer, Cream Soda, Grape, Orange, and Lemon Lime in 2023. Cove soda can be found in several key retailers including Sobeys, Loblaw, Costco, Circle K, Whole Foods, Farm Boy, Fortinos, Bulk Barn, Longos, and more across Canada.

Co-founders John and Ryan MacLellan launched Cove Soda in 2022 which is reportedly rising in popularity among customers in the fast-growing category of functional drinks, combining two massive consumer trends — zero sugar and gut health.

Cove Drinks CEO, John MacLellan comments, “This is a pivotal moment for our business. As we see consumer health habits evolve, retailers are seeking out the right brand partners to respond to those demands. We attribute our traction to the fact that we are the only company to craft a zero sugar, all natural and gut-healthy soda recipe that both adults and children enjoy. In the U.S., we now have a prime opportunity to get our product in the hands of 140 million Costco members – quite a ride from humble beginnings at the Farmers market, to the largest CPG stage in America.”

The increased accessibility of functional sodas in mainstream retailers has also contributed to their growing popularity among consumers. As the fastest growing beverage category, the functional soda space grew 250%+ in 2023 vs. prior year and is approaching $1B in annual sales in North America.

Consumers are becoming more aware of the impact of their beverage choices on their health and are on the search for alternatives to traditional sodas. This has led to a growing interest in functional beverages, including functional sodas. Surveys have found that most people say that their health consciousness has increased significantly since the pandemic and that they plan to change their diets. With this greater emphasis on health and wellness, consumers are actively seeking out beverages that offer additional benefits beyond mere refreshment.