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[INTERVIEW & PRODUCT REVIEW] Eric Hoang, Co-Founder Of 'Social Energy' Beverage YATÉ, Shares His Brand's Vision, Crossing Over In Dance Music, + More
At the convergence point of dance music and invigorating flavors, YATÉ emerges as a sparkling yerba mate, setting sail beyond the ordinary.
As we delve into an exclusive interview with Eric Hoang, one of the ingenious minds behind YATÉ, we have not only dove into this brand's vision but also sipped their unique 'Original Golden' and 'Sub-Lime Ginger' flavors.
On this journey, we will explore where taste meets vision, and social energy transcends the dancefloor.
Cracking open the Original Golden can and taking a few sips, it was immediately evident why YATÉ's team prides itself on flavor. The sparkling yerba mate was extremely smooth and had a delicate sweetness to it, not too overpowering but highly refreshing.
Contrastingly, the Sub-Lime Ginger flavor has a more spicy and carbonated flare to it, waking up your taste buds and sending a wave of alertness over its beholder.
Personally, I would love to sip and savor Original Golden throughout the day and rip a can or two of the Sub-Lime when the goes down and it is time to get fired up. However, the level of energy emitted from both of them is a clean boost in your awakeness and productivity.
Based on how good each of the flavors tasted on their own, I cannot even imagine how delicious they would be in a mixed drink. If the next club I go to isn't dishing out YATÉ's, I might just have to replace the contents of my flask with a can of the Sub-Lime Ginger.
Check out iEDM's exclusive interview with YATÉ's co-founder Eric Hoang below.
iEDM: How did you first meet Mike and Galen, and what sparked the inspiration to create a drink and CPG-based start-up together?
Eric: How much time do we have? This is a story in and of itself, but I will try to be succinct. I met Mike Ferrari and Galen Perry in Shanghai while we were living and working there. Mike and I met partying, and funny enough, I met Galen on Reddit. We decided to meet up for a beer and we hit it off.
Mike had been working at Anheuser-Busch, Anheuser-Busch was Galen’s client, and Anheuser-Busch shared the same office building with me at the time. And so when I started my first beverage brand, ZEYA, China’s first hard seltzer, I asked them to join and help.
Co-founders Galen (left) and Eric (right) showcasing YATÉ at USC.
We had a blast working long nights together and going out to techno clubs in China, but we needed something to keep us up, and we didn’t like what was offered at the bar. We thought there had to be a better alternative.
While we had heard about yerba mate before, ironically, it was not until we stumbled across a German bar that was brewing fresh sparkling yerba mate on tap (yes, in Shanghai, of all places) that we immediately became hooked on its taste and clean energy.
We started drinking it before and while going out, realizing we might be onto something. This is when we thought why not go home, get out of alcohol, and build a new yerba mate brand together?
iEDM: Can you share insights into the decision-making process behind the transition from YATÉ Version 1 to Version 2? What were the key considerations that led to changes in can size, pricing, and SKU offerings?
Eric: The main reason we updated our packaging is that retailers wanted the larger pack size. Version 1 was an 8.4oz can, which we thought was optimized for use in bars and nightclubs.
But then, once we started talking to traditional retailers like grocery stores and supermarkets, they wanted the larger pack size so that we would be more in line with our competitive set.
You will notice most yerba mates and energy drinks are in large tallboy cans. While we are focused on bars and nightclubs as a brand, you won’t make it in beverage unless you are in stores like Whole Foods.
Since we were going to update the packaging size anyway, we took the opportunity to refresh our visual brand identity as well. We wanted our refresh to be bolder, simpler, and stand out more on shelves. We also came up with the wristband idea that you see across the packaging that we really love from a creative standpoint.
iEDM: The choice of flavors plays a crucial role in the success of a beverage. What inspired the development of YATÉ's two distinct flavors, Sub-Lime Ginger and Original Golden? How do these flavors complement the brand's vision of providing a unique twist on tea for social occasions?
Eric: For our first flavor, Original Golden, we wanted to create something that was tea-forward and had a lot of the earthy notes you found when drinking brewed, loose-leaf yerba mate. Many of the existing yerba mate options are very sweet and fruity.
Given our positioning and how we like YATÉ to be used as a mixer, it was also important that our flavors were mixologist-crafted. Our flavors needed to be paired well with alcohol, so for our next flavor, we thought about different flavors that pair well with tea and are already common in cocktails.
That is how we landed on Sub-lime Ginger, which was inspired by ginger beers and Moscow mules, except now you can get it with way less sugar (some have up to 40 grams of sugar per serving) and added caffeine.
Getting the carbonation right was essential too because we wanted something that almost drank like a smooth, light beer. When you pour YATÉ into a glass, you will notice it has a foamy head on top. This allows YATÉ to be multi-functional as an energy alternative, alcohol alternative, and a mixer.
iEDM: Regarding the concept of “social energy,” how did the idea originate, and how does YATÉ aim to capture and celebrate the essence of social interactions through its beverage?
Eric: Honestly, we really cannot take credit for it because it originated in South America, where yerba mate was historically consumed. It was not called “social energy,” but for centuries yerba mate has been consumed by tribes deep in the Amazon. The cultural ritual is you drink it out of a gourd, and pass it around a circle, almost like a joint.
It is innately a very social activity. We loved the idea of refreshing this for today’s social occasions, so much that we now own the trademark for the word “social energy.” There are so many cool extensions and possibilities that we could build off of “social energy” beyond beverages.
We also realized that many legacy energy drink brands focused on a specific function or activity. For example, Celsius is all about fitness and Red Bull is action sports. None of these brands explicitly promoted having fun and socializing.
iEDM: YATÉ has collaborated with notable electronic music artists like Alison Wonderland, Life on Planets, Justin Martin, and Lupe Fuentes. How do these collaborations align with YATÉ's brand identity, and what impact do they have on your brand's connection with its target audience?
Eric: YATÉ was created for social occasions, and we believe music plays a key role in social settings and interactions. For us, electronic music felt like such an obvious place to plant our flag in the ground.
Electronic music needs something like YATÉ and support from these artists is evidence of that. We have a strong conviction that our tribe and early adopters are ravers and festival-goers. Working with these artists helps us further entrench ourselves in this community.
iEDM: YATÉ has proved to be a healthier alternative to traditional energy drinks. Could you elaborate on how YATÉ addresses the preferences of young consumers, particularly Gen-Z and Millennials, who seek cleaner and tastier options?
Eric: The global energy drink market is valued at something like $90 billion, yet within that market, young consumers are seeking options that are natural, organic, and deemed “better for you.”
Traditional energy drinks are loaded with sugar and artificial ingredients you can’t even pronounce. If you have not already, I encourage you to look at the nutrition facts of the big energy drink companies.
At YATÉ, we are committed to using organic and natural ingredients and delivering health benefits without compromising on taste. Another trend we are seeing with Gen-Z and Millennials, is they are drinking less alcohol. We have accidentally become a great alternative to booze.
iEDM: In a market saturated with energy drinks, what sets YATÉ apart as a must-try beverage? How do you aim to communicate its one-of-a-kind selling proposition to consumers?
Eric: From a functional standpoint, we are 100% yerba mate, with less sugar, fewer calories, and limited ingredients. Because our caffeine is 100% yerba mate, meaning no added caffeine and no artificial ingredients, the energy you feel from drinking YATÉ feels clean and uplifting.
While flavor is subjective, I believe we have the best-tasting yerba mate on the market, and that seems to be substantiated by a lot of the buyer and bartender feedback we have received.
We are the only brand that is uniquely mixologist-crafted. Lastly, we stand out as a brand. We are promoting a social lifestyle that energy drinks and other yerba mates have yet to do.
iEDM: What is the most significant piece of knowledge or skill that you have learned since entering the CPG space?
Eric: Well, I cannot speak for Mike or Galen, but mine would be that CPG is not really about how much you know. It is more about how much you are willing to put into it. CPG is not rocket science, but it is intensive, back-breaking work. It’s hitting the pavement, visiting stores, delivering orders, and building relationships.
I have also learned about the importance of brand. With such a low barrier to entry and little differentiation from product to product, branding plays such a critical role and sometimes is make or break.
There are no shortcuts, and taking time to understand your customers, the problem you are solving, and slowly building your business will get you further than most.
iEDM: What are your favorite sub-genres within electronic music, top artists right now, and most memorable festival or rave you have gone to?
Eric: I oscillate from sub-genre to sub-genre all the time. One day it could be industrial techno and then experimental electro-pop, it just depends on what mood I am in. But I guess I would say I always go back to house music. Right now, I am playing a lot of Barry Can’t Swim.
Man… the most memorable festival or rave? I have been raving for almost two decades and still raving pretty frequently even today, so it is hard to say.
I remember having vivid memories of HARD Summer in LA in the mid-2000s, and then more recently I enjoyed seeing Crazy P at my friend’s intimate warehouse party.
iEDM: Looking ahead, are there any exciting plans for future product innovations, collaborations, or expansions into new markets that YATÉ enthusiasts can get excited about?
Eric: We try not to look too far ahead, especially given how early we are, but are very excited about continuing to build our presence in California and New York. We are launching soon into GoPuff and BevMo, and starting to think about our next SKU.
We are also excited about growing our community of artists and DJs and working on a few exciting collabs next year.
Photos courtesy of YATÉ and Eric Hoang.
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