‘You’ve got a little billboard to work with’: How smoothie brand Kencko revamped its products and packaging after launching in Walmart

“The second we launched in retail, we knew we wanted to start optimizing packaging immediately,” said Kencko’s chief commercial officer and CMO, Kelly Deen. “We were getting feedback that this message is not really getting through the way that we want it to get through.”

First, the company removed a clear plastic window on the box that showed the pouches inside. That gave room for additional copy about the equivalent fruits and vegetables packed into each pouch, like half a carrot or half an apple, and the grams of fiber and protein. “You’ve got a little billboard to work with to sell your story, Deen said. “And you have to really refine what you want to say.” It also switched out the package to a glossy paper that could better catch the fluorescent light. 

This month, Kencko is overhauling its Walmart wholesale line after making tweaks to its packaging, product lineup and pricing. Beyond the smoothies and fruit snacks available as part of its initial launch, it’s rolling out brand new products, including oats, protein shakes and iced lattes. Based on Walmart’s feedback, it’s also introducing a $5 two-pack for smoothies in addition to its $10 four-pack to target more price-conscious shoppers.

Many CPG brands have been looking to get into retail in recent years as they expand beyond their direct-to-consumer roots. But the channel comes with expensive distribution and marketing challenges, leading some brands like Kencko to discover that they need to fine-tune their messaging to reach customers on shelves. CPG latte brand Blume also changed its packaging to include more ingredient information before launching in Whole Foods. And frozen dumplings brand Mila also revamped its packaging and label style before hitting Target.

Kencko, a seven-year-old company named for the Japanese word for “health,” last raised a $10 million Series A in 2022 with the goal of getting into retail. It aims to differentiate itself from other health-focused brands on the market by emphasizing the amount of fruits and vegetables in its formulations. Kencko declined to share its sales figures or annual revenue. But Deen shared that more than half of its revenue comes from wholesale, including Walmart, Sam’s Club, Fred Meyer and Target.

Steven Bailey, EY Americas commercial excellence leader, said startup CPG brands are at a difficult moment when it comes to getting shoppers’ eyes. Shoppers are still weary of dealing with higher grocery prices and are increasingly opting for private label brands. In turn, many companies are focusing on price-pack architecture and selling their own storytelling to stand out.

“Unless you’ve got a very clear brand proposition that distinguishes you from other products, the hurdles to switching brands are always going to be low,” he said. “Especially when you’re already in Walmart and you’re probably fighting … Walmart private label brands as well.”

But Bailey said customers are still looking for ways to access “affordable luxury.” They’ll pick a particular product or category where they will spend if there’s something to distinguish it, he said. “Every CPG or individual brand has got to figure out that price pack architecture and how do they get the right occasions,” he said.

At Kencko, trial and error has been a through-line of its Walmart launch. Kencko was initially at an end cap in Walmart for six to nine months before moving to the aisles, where the smoothies sat alongside coffee, targeting shoppers looking for breakfast food. But now, as Kencko has introduced more items, it is now displayed as a destination set with all of its products grouped together.

Deen says many of these changes are just an example of how Kencko has always operated as a fast-moving startup and “being willing to quickly say ‘Wow, maybe we didn’t get that right. Let’s optimize, let’s change and move really fast to make the right changes on an ongoing basis.'”

Kencko launched the $5 two-pack of smoothies, for example, based on Walmart feedback. The nearly $10 four-pack has sold roughly 1.25 million units, or the equivalent of 5 million smoothies, Kencko confirmed to Modern Retail. But the feedback Kencko got was that some people were hesitant about spending $10 on products from a new-to-them brand.

“There are still some people who are going to look at it and say, ‘I’m not sure about $10,'” Deen said. “Walmart knows their shoppers. They know their shoppers do really well with an under $5 price point when it comes to trying new things.”

Regardless of pack size, Kencko’s packets come in around $2.50 per smoothie. Deen said Kencko aims to be an affordable comparison to getting a smoothie a a cafe or buying up the produce to mix it up at home. Roughly 90% of Americans do not get in enough fruits and vegetables in their diets, Deen said, and Kencko sees mass retail as an opportunity to meet that need by growing its Walmart presence.

“We go back to the mission, and more people shop at Walmart and buy their groceries at Walmart across the country than anywhere else,” she said. “How can we not look at that opportunity, to access people who really need those fruits and veggies? They’re going there every week already, and we’re keeping it affordable.”