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SANZO: BRIDGING CULTURES THROUGH ASIAN-INSPIRED

FLAVOURED SPARKLING WATER

Sheri Lambert wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective
or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to
protect confidentiality.

This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the
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materials of the highest quality; submit any errata to publishcases@ivey.ca.

Copyright © 2023, Ivey Business School Foundation Version: 2023-10-05

On a brisk winter day in February 2023, Alessandro (Sandro) Roco walked out of his Queens, New York,
office, took a sip of the Sanzo lychee sparkling water that had become his go-to daily drink, and thought
about all that his company had achieved in four short years. Four years earlier, Roco had faced a huge
amount of skepticism about bringing an Asian-inspired infused fruit-flavoured seltzer to the marketplace.
As Roco worked to expand his firm’s operational footprint, the overarching question he and his team
grappled with was how best to scale. As he saw it, that question broke down into three challenges: (1)
identifying the highest potential consumer markets; (2) amplifying brand communication to target key
customers; and (3) developing a brand story that would aid with growth, which was predicted to triple
Sanzo Brands Inc. (Sanzo)’s revenue and keep pace with sparkling-water industry growth.

AUTHENTIC ASIAN FLAVOURS: HOW IT STARTED

Roco, a Queens-born Filipino American and the founder of Sanzo, noticed in 2018 that many traditional
sparkling-water brands were filled with sugar and artificial flavours. He also noticed that the world
around him was becoming increasingly diverse. Crazy Rich Asians had just become the number-one film
at the box office, Korean pop music bands such as BTS were selling out football stadiums, and it seemed
to Roco that restaurants were increasingly drawing inspiration from regional Chinese, Korean, and
Southeast Asian cultures. Yet his local grocery store reflected none of these cultural trends.

Roco’s goal from there was simple: “Celebrate high quality Asian flavours that for decades have been
masked by added sugars” by bridging the gap between East and West with authentic flavours made with
real fruit (see Exhibit 1).

Sanzo started with the concept and a hunch about what was trending at the time in the industry. Roco
shared that he had not, at the time, leaned heavily into market research or consumer data from sources
such as Nielsen Holdings Plc or Information Resources, Inc. (IRI). He reflected, “When I started Sanzo, I
did not have data to analyze. I don’t even know if there was anything available. I mean, I had heard of
Nielsen because of the TV ratings and that was about it.” Roco continued, “Yeah, especially now in my
position, I

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am learning a lot about CPG [consumer package goods] fundamentals with regard to analyzing data and
how important it is to fully understand the consumer buying trends and demographics.” Roco shared that
in some ways, he felt like being Asian American might have been “a bit of an advantage in getting
started, because where we ended up was really with the community that I am part of. A lot of Sanzo’s
journey is really a self-actualization journey manifested into this beverage. This is kind of the way that I
think about it.” Roco officially launched the Sanzo brand in July 2019 (see Exhibit 2).

He added, “There was a lot happening in 2018 that got me to really pursue launching an Asian-inspired
sparkling water. First, that was the year Crazy Rich Asians became the number-one film at the box office.
One of my favourites still. Yeah, and it’s now become the sixth highest grossing romantic comedy of all
time.”1 Roco continued:
And then, right around the same time, the Korean pop group BTS was selling out stadiums, not
even just arenas, but stadiums in the United States. And on a more localized level, I had been living
in New York City for a decade and was noticing that, you know, the restaurant scene was kind of
turning over from being Eurocentric, Francophile, you know, like you really came towards those
tastes as business-worthy in premium. So what was frankly a lot more globalized in the past was
becoming a lot more inclusive.
Roco explained, “Asian Americans make up the fastest-growing market, with about 7 to 10 per cent in the
US population right now. We are the fastest-growing and wealthiest ethnic demographic in the United
States. That’s pretty helpful for folks who are marketing products and goods.”

FROM TECHNOLOGY TO CPG

Roco had no interest—let alone experience—in the ready-to-drink (RTD) sparkling-water beverage
industry. He worked at a technology company, where he realized the office refrigerator was filled with
sparkling-water brands flavoured only with traditional citrus flavours like lemon, lime, and grapefruit. It
was then that he felt there was an opportunity to disrupt the sector with more differentiation.
Sanzo’s focus stemmed from the increasing popularity of Asian culture within the US and other global
markets, which was illustrated by the success of box office hits such as Crazy Rich Asians, Shang-Chi
and the Legend of the Ten Rings, and Raya and the Last Dragon and of K-pop music groups like BTS.2
There was a serious gap in the market.
In early 2022, Roco raised US$10 million 3 in Series A funding.4 He shared his thoughts at the time with
Food Navigator:
I noticed that the legacy Asian beverage brands were filled with sugar, preservatives, and artificial
flavors, which stood in stark contrast to the “clean” American sparkling-water brands I was
encountering in other retailers. . . .
My goal with Sanzo from the very beginning has been to celebrate high-quality Asian flavours
without all the bad ingredients and extra sugar.5
1
Crazy Rich Asians was released by Warner Brothers on November 20, 2018. Warner Bros Entertainment Inc., “Crazy Rich
Asians,” Warner Brothers, accessed January 20, 2023, https://www.warnerbros.com/movies/crazy-rich-asians.
2
Raya and the Last Dragon was released March 5, 2021. See Disney Entertainment, “Raya and the Last Dragon,” Disney
Movies, accessed January 20, 2023, https://movies.disney.com/raya-and-the-last-dragon.
3
All dollar amounts are in US dollars.
4
Mary Ellen Shoup, “Sanzo Raises $10m in Series A Financing to Bring Authentic Asian Flavors to Crowded Sparkling Water
Category,” Food Navigator-USA, February 21, 2022,
https://www.foodnavigator-usa.com/Article/2022/02/21/Sanzo-raises-10m-in-Series-A-financing-to-bring-authentic-Asian-
flavors-to-crowded-sparkling-water-category.
5
Shoup, “Sanzo Raises $10m.”

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Roco also felt it was important to lean in to his networks and to collaborate with like-minded brands and
marketers:

I met Jing Gao of FLY BY JING in 2019 at a Union Square NYC café with my first production
run. Two months later, I met Sahra Nguyen on a blistering hot summer day, while she was
operating a pop-up (Café Phin) on the Lower East Side right around the launch of Nguyen Coffee
Supply. One month after that, I met Kevin Lee later that summer in San Francisco and learned
about the ambitious plans to launch an instant ramen company, immi.

He continued, explaining that he met many other influential founders: “I often think of the fortune I had
in meeting such inspirational and visionary founders and how, especially as a solo founder, my
friendships with them have helped drive me. What’s stayed consistent is our desire and belief in building
together as a community. The world we’re seeing is one where we are not yet experiencing , but a
generational movement that is still in its early stages.”

Roco felt that much of his company’s success was due to the community that built Sanzo up; to the
investors who believed in the future Sanzo strived for; and to the retail, distribution, and supply partners
who helped Sanzo bridge cultures and reshape grocery stores to be more inclusive and reflective of the
America they wanted to experience.6 “We’re especially grateful to our grocery and beverage buyers who
have given Sanzo the opportunity to sit on shelves next to some of the largest and most iconic American
brands today,” Roca concluded.

THE BRAND VISION: BEYOND BUBBLY WATER

In 2019, the first Sanzo lychee cans rolled off the production line in Gowanus, Brooklyn. Roco
immediately took this batch back to his apartment and started delivering cases out of his parents’ Subaru,
then using U- Hauls, Ubers, and even the New York City subway. Since its launch, the company had
boasted five-times year-over-year growth and had gained distribution in over 3,500 strategic retailers,
including Whole Foods Market, Safeway, and Panda Express. And in less than three years’ time, Sanzo
had struck partnership deals (i.e., products featured in the films, marketed alongside the films, available in
theatres that screen the films, and/or promoted in some other way) with Marvel Studios for Shang-Chi
and the Legend of the Ten Rings and with Pixar Animation Studios for Turning Red.
The company’s mission was to bridge the gap between mainstream sparkling-water brands and typical
authentic Asian flavours. Flavours such as yuzu, ginger, and lychee (see Exhibit 3) were popular among
Asian consumers, who represented more than half the world’s population and were a huge market
opportunity. Sanzo wanted to celebrate these high-quality Asian flavours without the ingredients and
added sugars that had masked flavours for decades. Sanzo used real fruit and no added sugars. A
company goal was to create a drink that was innovative, included bold flavours, and in essence was also
nutritionally healthier. It in turn hoped to provide authenticity to its drinks, so that they were not like
every other beverage in the market. Roco stated that he “saw a gap in the seemingly crowded sparkling-
water market; no one was making fizzy water flavored naturally with the fruits [he] grew up loving.” 7
Roco hoped to be able to attract not only Asian Americans but also cultures from all around the world. He
shared that the company prided itself “on being the first ever Asian-inspired sparkling water.” Throughout
his journey, Roco had continued his advocacy and education around fresh ingredients.

6
Brad Avery, “Loud, Proud and Flavorful: Next Gen AAPI Founders Seek to Reclaim Asian CPG,” Nosh, February 1, 2023,
https://www.nosh.com/news/2023/loud-proud-and-flavorful-next-gen-aapi-founders-seek-to-reclaim-asian-cpg.
7
Rudy Sanchez, “Sanzo Brings Asian Fruit Flavors to Sparkling Water Market,” Dieline, September 27, 2019,
https://thedieline.com/blog/2019/9/27/sanzo-brings-asian-fruit-flavors-to-sparkling-water-market?

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Sanzo created beverages that combined a love for classic Asian-inspired flavours and delivered delicious,
refreshing drinks that always tasted great. Roco shared, “I think our brand positioning—and who we are
to the marketplace—is really about the value that we can add to folks in the Asian and Asian American
culture. Yet we are still super approachable in many ways.”

Roco reflected, “Maybe it was all happening in lockstep, but I began to notice all of the Asian influence
in products and lifestyle in the United States. I had grown to appreciate it [Asian-influenced lifestyle]. I
wanted to dive deeper into my own identity as an Asian American.” He continued, “I didn’t even know
that it was a desirable thing. Not that I wasn’t proud to be a Filipino American, but I just didn’t know that
it was something that was of interest to the market” that included non-Asian consumers. He explained
further:

I worked at a technology company, and in our office, our pantry and fridge were stocked with
different types of sparkling water and soft drink brands. We had been a huge Diet Coke office.
But I noticed that the Diet Coke was starting to get swapped out more and more with LaCroix
sparkling water.

Yeah, the other different sparking water brands were interesting, but what I found fascinating was
that our office manager was ordering around five different brands of sparkling water. And each
brand had the same exact lemon-lime or black cherry kinds of flavours. After seeing this, I
remember thinking that there had to be something I could do here.

Sanzo had ambitious goals for its products, which it hoped would not only bridge cultures but ultimately
also bridge continents. It wanted to be well known all around the world as the company that sold the best
high-quality, authentic Asian-flavoured sparkling water. The ultimate goal for just about every company
was to become one of the top brands in its market—one that consumers typically thought of or reached
for. Sanzo knew that in the future, it would strive to produce more new drink flavours and, potentially,
new products. The sparkling-water market was a huge, crowded, and highly competitive space, making it
much harder for newer companies to make inroads. One way that Roco felt Sanzo could make its product
more popular, and ultimately increase brand awareness, was by getting more celebrities to support the
brand. Sanzo therefore teamed up with the well-known former Taiwanese-American National Basketball
Association (NBA) basketball player Jeremy Lin to create a special edition drink (see Exhibit 4). Roco
felt that working with Asian American celebrities fit well with the product Sanzo sold but that including
celebrities from different cultural backgrounds could prove to be beneficial for the future of the company.

LEANING INTO ASIAN AMERICAN HERITAGE: EMBRACE IDENTITY THROUGH SANZO

Roco, who was raised by Filipino parents, shared, “I grew up in a very diverse area in central New Jersey.
But even though it was diverse, we were actually among the first Asian American families in our town.”

In talking about when Sanzo began, he reflected,

I would start describing a little more about my childhood or my upbringing, and it’s like, oh, okay,
people are interested in that. It’s like, okay. So, I lent my voice to my idea, and then it went from
there. Yeah, I have a great marketing person, but when it comes to our products and marketing the
brand, the Asian influence is there front and centre. It is important to tap into my Asian American
roots, but the brand also needs a sense of discovery, inspiration or celebration of folks that are not
in that community.
Through Sanzo’s own survey data, Roco knew that 35 per cent of its customer base was made up of Asian
Americans. He shared, “So two things are interesting there; one of which is yes, we are over-indexing on

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API [Asian Pacific Islander], which is to be expected, right, if the US population is 7 to 10 per cent. But
we are also seeing that a majority of the people who are buying our drink are not Asian American.” He
continued, “Our unique selling proposition is centred around our brand. And right now, our initial data is
showing that we are bridging cultures. We are not just for the Asian American community; our brand has
a crossover appeal. If we are continuing to build the brand authentically, then we need to keep that in
mind and continue to engage this audience.”

ASIAN AMERICAN POP CULTURE

Asian pop culture was one of the fastest-growing trends in the United States, beginning with West Coast.8
Discussing the popularity of Asian pop culture, Christina Ree, from the San Diego Asian Film Festival,
shared, “I think that Asian American films are really successful now partly because American audiences
are getting more global.”9 Ree noted that audiences “want something genuine and are absorbing Asian
culture whether its anime or K-pop.”10
Starting as a meme in 2012, “Gangnam Style” re-emerged in the US market in 2021 as a TikTok challenge.11
In addition, K-pop had topped music charts and awards shows frequently with artists such as BTS and
Blackpink.12 BTS’s single “Dynamite” had been number one on the Billboard Music Top 100 for three
consecutive weeks by the end of 2020.13 Globalization had made the world a much smaller place, and
social media, which made it easier for Western audiences to access popular culture from around the world,
had transformed pop culture.14 Roco added, “We really do see America as being redefined. Asian culture is
increasingly redefining and meshing with key parts of the American mainstream. We call this ‘bridging
cultures.’”
Asian Americans were the fastest-growing and wealthiest ethnic group in the United States. According to
research conducted by the Pew Research Center, the Asian population in the United States had grown 81
per cent between 2000 and 2019, from roughly 10.5 million to 18.9 million.15 By 2060, the number of
Asians in the United States was projected to be 35.8 million.16

A FOCUSED PRODUCT LINE

Sanzo’s main target segments were Asian American and female consumers (see Exhibit 5). With Asian-
flavoured drinks, it made sense that Asian Americans would be the target segment, but the Asian
American community also represented the fastest-growing and wealthiest ethnic group in the United
States.17 Therefore, targeting this group of people proved to be beneficial.

8
Keegan Balster, “How Asian Culture found its Place in America,” Scot Scoop, February 15, 2022,
https://scotscoop.com/how- asian-culture-found-its-place-in-america/.
9
Balster, “How Asian Culture found its Place in America.”
10
Balster, “How Asian Culture found its Place in America.”
11
E.J. Dickson, “Why ‘Gangnam Style’ Is Making a Comeback on TikTok,” Rolling Stone, March 23, 2022,
https://www.rollingstone.com/culture/culture-news/gagnam-style-trauma-tiktok-dont-let-this-flop-1325282/.
12
Veronica Kuffel, “The Soft Power of Asian Influence on American Culture,” Badger Herald, January 27, 2021,
https://badgerherald.com/artsetc/2021/01/27/the-soft-power-of-asian-influence-on-american-culture/
13
Kuffel, “The Soft Power of Asian Influence on American Culture.”
14
Don’t Die Wondering, “East Asia’s Growing Influence on Western Popular Culture,” Don’t Die Wondering, January 5, 2022,
https://www.dontdiewondering.com/east-asias-growing-influence-on-western-popular-culture/.
15
Abby Budiman and Neil G. Ruiz, “Asian Americans Are the Fastest-Growing Racial or Ethnic Group in the U.S.,” Pew
Research Center, April 9, 2021, https://www.pewresearch.org/fact-tank/2021/04/09/asian-americans-are-the-fastest-
growing- racial-or-ethnic-group-in-the-u-s/.
16
Budiman and Ruiz, “Asian Americans Are the Fastest-Growing Racial or Ethnic Group in the U.S.”
17
Abby Budiman and Neil G. Ruiz, “Key Facts about Asian Americans, a Diverse and Growing Population,” Pew Research
Center, April 29, 2021, https://www.pewresearch.org/fact-tank/2021/04/29/key-facts-about-asian-americans/.

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Although Sanzo did not highlight its products’ nutritional qualities, it offered a healthy drink that directly
met the needs of consumers who sought healthier drink options. Roco added, “It seemed that more and
more consumers were starting to look for healthier alternatives and, so, Sanzo’s offering of a healthy
sparkling water put us in a great spot.”

The product packaging was inspired by Filipino jeepneys—rainbow-coloured public transit vehicles
painted with all types of graphics and art. “Asian Americans and females may be the highest percentage
of customers within Sanzo’s target segment, but Americans in general, along with health conscious
consumers, make a up a good portion. And we see that rising,” added Roco. He continued, “When
researching large competitors like LaCroix, we found that female consumers bought around 70 per cent of
the sparkling water.”

Although Sanzo’s Asian flavours were a strength, they could also be seen as a weakness. Between 2019
and 2020, the company had only a few select flavours: lychee, calamansi, mango, and yuzu. Roco knew
that mass-market consumers beyond the targeted niche segment of Asian or Asian American might not be
open to the company’s core flavour line. A marketing research survey conducted by Sanzo in early 2022
confirmed to Roco that marketing messaging emphasizing the products’ Asian flavours and the
company’s Asian ownership resonated with consumers (see Exhibit 6).

Roco shared, “a Sanzo variety twelve-pack sold for $34.99, which was more expensive than that of its
competitor Polar, which sold for under $20.00, and a single can sold for $2.00.” Roco believed that this
meant higher-income consumers (those making $100,000 or more) would be the best segment to target.

Well-known competing sparkling-water brands, such as Polar and LaCroix, had been on the market
longer, making it harder for Sanzo to stand out as a brand. Sanzo’s research also confirmed that
consumers wanted more flavours to choose from. That said, Sanzo had a lot of opportunities, as the brand
had grown very quickly over the last three years.

THE FLAVOURED SPARKLING-WATER MARKET

Bottled sparkling water had been around since the late 1970s, with Perrier being one of the first brands to
enter the market.18 Brands such as LaCroix (pronounced “la-croy”) were in their heyday until 2019. 19 In
2020, just six months after Sanzo came onto the market, the sparkling-water industry topped $29.71
billion globally, and it was expected to expand at a compound annual growth rate (CAGR) of 12.6 per
cent from 2021 to 2028.20 In 2021, the global market was estimated to be $33.4 billion.21 At the time,
North America represented the largest share, with over 35 per cent.22 The market continued to grow, and
IRI reported that flavoured seltzer was the fastest-growing segment of the sparkling-water market.23

18
Robert Moss, “How Bottled Water became America’s most Popular Beverage,” Serious Eats, August 10, 2018,
https://www.seriouseats.com/how-bottled-water-became-americas-most-popular-beverage.
19
Jordan Valinsky, “LaCroix Was the Millennial ‘It’ Brand. Now It Has Lost Its Way,” CNN Business, May 30, 2019,
https://www.cnn.com/2019/05/30/business/lacroix-sales/index.html.
20
Grand View Research, Sparkling Water Market Size, Share & Trends Analysis Report by Product, by Distribution Channel,
by Region, and Segment Forecast, 2021–2028, Market Analysis Report GVR-4-6-68038-845-9, Grand View Research,
accessed January 19, 2023, https://www.grandviewresearch.com/industry-analysis/sparkling-water-market.
21
Grand View Research, Sparkling Water Market Size.
22
Grand View Research, Sparkling Water Market Size.
23
BNP Media, “2022 State of Beverage Industry | Sparkling Water Shines in Bottled Water Category,” Beverage Industry,
July 6, 2022, https://www.bevindustry.com/articles/95137-2022-state-of-the-beverage-industry-sparkling-water-shines-in-
bottled- water-category#:~:text=Additionally%2C%20IRI%20data%20shows%20that,with%20sales%20at
%20%243.6%20billion.

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THE COMPETITIVE SPACE

Sanzo was the first Asian-inspired sparkling water that celebrated high-quality Asian flavours and used
real fruit, no preservatives, and no added sugar. As consumers were becoming more health conscious,
Sanzo fit this niche as a beverage that was low in calories, gluten free, and vegan.24 Rocco shared, “our
competitor LaCroix, for example, had launched as an “all-occasion” sparkling water when it started.”
LaCroix and other competing sparkling-water brands offered a multitude of flavours, but Sanzo—with its
bright, colourful packaging—distinctly marketed itself against the rest of the sector’s brands, whose
flavours focused either on citrus (i.e., lemon, lime, and orange) or expanded (i.e., black cherry,
watermelon, and mango). Private-label brands combined made up roughly 17 per cent of the flavoured
seltzer and sparkling- water market in 2022 (see Exhibits 7 and 8).25 Sanzo faced a threat in the
competitive market for sparkling water as there were many types of carbonated beverages being sold.

DIRECT TO CONSUMER: CHANGING THE CONSUMER PACKAGED GOODS MARKET

Vertical integration—in which larger companies gained control over one or more stages in the production
and distribution of a product and were able to establish independence, control costs, create economies of
scale, and improve marketability—was an obvious threat that could affect any small- to medium-scale
business. Sanzo addressed this by making its product widely accessible; the company first focused on a
strong direct-to-consumer (DTC) approach, which made up 15 per cent of its sales distribution in 2022
(see Exhibit 9). Although this opened opportunities to scale quickly, it came with risks and expenses.
Consumers who ordered directly from Sanzo’s site were able to subscribe and save 15 per cent while
receiving free shipping. In addition, Sanzo worked with delivery companies Gobrands Inc. (Gopuff) and
Amazon.com Inc. to deliver right to the consumer’s door. The brand was sold at national supermarket
chains—including Whole Foods Market Inc. and Target Corporation—as well as through regional US
grocery retailers like Wegmans Food Markets Inc., which represented 75 per cent of its distribution. And
in early 2022, Sanzo’s product was available at Panda Express.

Sanzo was always on the hunt for new grocery distributors who were interested in carrying the brand.
Unlike the typical American citrus flavour profile that dominated the sparkling-water market (e.g.,
grapefruit, lemon, and lime), Sanzo continued to differentiate itself by presenting Asian-inspired flavour
profiles such as lychee, calamansi, and yuzu.

At its inception, Sanzo was not the only brand competing in the DTC space. Competitors included other
ready-to-drink sparkling water brands such as Bubly, Perrier, Spindrift, San Pellegrino, and Waterloo as
well as alternative beverage brands such as Ugly and Dirty Lemon. Most of these competitive products
had lower price points and were sold in mass retail outlets. Sanzo differed significantly from its
competition in terms of physical appearance and branding.

Research showed that 55 per cent of consumers preferred to shop directly with brand manufacturers.26
Legacy, or traditional, brands such as San Pellegrino and Perrier were competing with new DTC players
and were forced to rethink direct channels in order to compete.

24
DSM Food Specialties B.V., “Health-Conscious Consumers Are Looking to Enjoy It All,” DSM, August 16, 2022,
https://www.dsm.com/food-beverage/en_US/insights/insights/consumer-insights/health-conscious-consumers-are-looking-
to-enjoy-it-all.html.
25
BNP Media, “2022 State of Beverage Industry.”
26
Eunice Shin, “How Direct-to-Consumer Beverages are Changing the Market for CPG,” Prophet, accessed January 16,
2023, https://prophet.com/2016/08/the-rise-of-dtc-beverages-changes-the-market-for-cpg/.

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CREATIVE MARKETING CAMPAIGNS

In order to expand brand awareness, Sanzo used a brand collaboration strategy. One the first ten accounts
that Roco sold was to David Chang, a popular Asian American chef and founder of Momofuku
Restaurant Group. Roco felt that the collaboration would help consumers associate the brand with Asian
American food and culture. From there, Sanzo continued to acquire “buzz” and a brand “halo,” which
enabled Roco to work with larger brands and influencers.

Overall, a majority of Sanzo’s success came from its strong marketing approach. Roco had been able to
cultivate creative marketing campaigns through partnerships with many Asian American influencers and
had collaborated within cultural moments to promote awareness. For instance, Sanzo released a new
flavour in a collaboration with NBA star Jeremy Lin to promote the ten-year anniversary of Lin’s winning
streak, which became known as Linsanity (see Exhibit 4 for the brand labelling of the product). All profits
from Linsanity product sales went toward the Jeremy Lin foundation and other anti-racism causes. The
brand also promoted the release of the new Marvel movie Shang-Chi and the Legend of the Ten Rings
with a limited-edition lychee collection featuring characters from that film. Sanzo also partnered with
major media company Disney Entertainment in the rollout of its new movie Raya and the Last Dragon.

Roco shared, “Since the release of Shang-Chi, we have seen our e-commerce revenue for Sanzo grow six-
fold.” Roco felt that Sanzo had a strong sense of corporate responsibility, especially toward its
community. During the pandemic, Sanzo contributed funds to help first responders. Not only did Sanzo
have strong brand equity, but Roco also told a humbling story of how he was able to build his company
from the ground up:

I founded Sanzo in 2019 in my 500-square-foot studio apartment in Queens, New York. I basically
had the idea that there was a massive wave of Asian and Asian American influence across a variety
of creative industries: TV, film, and music. But when I went to the grocery stores, I didn’t see that
manifest in the same way. In the apartment, it was me with a bunch of measuring cups and fruit
purée blends.

The product’s overall look and packaging, inspired by Filipino jeepneys, was a hit with consumers.27
Even with its creative, colourful look, Roco knew that he needed to do more, so he turned to more
marketing initiatives.

Turning Red Premiere

Sanzo brought its product for consumers to trial at the world premiere of the popular Disney film Turning
Red. Many consumers who went to the movie premiere ended up learning about and trying Sanzo’s
product for the first time, as Sanzo gave out special limited-edition cans of the drink with a design that
featured characters from the movie.

Hosted Community Screening

Sanzo hosted a community screening to promote both the release of Jeremy Lin’s film 38 at the Garden
and the new limited-edition flavoured drink Linsanity. This event allowed consumers to try and purchase
the new Sanzo flavour, which was a collaboration between Sanzo and Jeremy Lin.

27
Katrina Escalona, “How the Jeepney Became a Filipino National Symbol,” Culture Trip, September 11, 2017,
https://theculturetrip.com/philippines/articles/how-the-jeepney-became-a-filipino-national-symbol/.

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Expo East Booth

Sanzo announced on its social media channels that it would have its own booth at the Natural Products
Expo East trade show in 2022, where consumers could visit and try the products. Expo East was where
the natural products industry met to discover, learn, and push the industry forward. There were over 1,000
booths for people to discover and learn about topics that heavily influenced healthy products within the
food industry. Again, this was a brand activation strategy to get new consumers to try the product and
meet people from the company.

Social Media Marketing

Sanzo had been able to build a community through email (where it had over 30,000 subscribers), TikTok
(greater than 800,000 likes), Instagram (over 26,000 followers), and in-person events such as in-person
tastings at the Coachella Valley Music and Arts Festival (see Exhibit 10). Sanzo’s brand affiliate and
influencer strategy emphasized the importance of the brand’s value and meaning. It used community
marketing and aimed to have content that focused on the brand’s position in the marketplace.

Part of Sanzo’s strategy for cultivating loyalty and a sense of community was through social media and
partnerships, as 19 per cent of Sanzo’s surveyed respondents said that a “company’s values/equity plays
an important role when deciding which brands to choose over competitors.” Leaning in to the community
to distinguish its values set Sanzo apart from other beverage companies (see Exhibit 11). Through this,
Sanzo needed to set itself apart from other beverage companies and motivated consumers to purchase it
instead of or in addition to other sparkling water brands. Roco shared, “Sanzo’s brand affiliates and
influencer strategy emphasized the importance of the brand value and meaning. Using a community
marketing technique provides us with invaluable content to help the brand stay focused on its position in
the marketplace.” Other factors that influenced consumers’ choices with regard to sparkling flavoured
water included price (69 per cent), variety (52 per cent), design (48 per cent), environmental impact (16
per cent), and involvement with the community (4 per cent). Company mission, with just 2.7 per cent,
represented the smallest percentage. Sanzo’s Instagram boasted celebrities such as Chrissy Teigen, John
Legend, and Tiegen’s mother, Vilailuck “Pepper Thai” Teigen. Sanzo also posted a live Instagram story
showing a summer cocktail with the lychee-flavoured seltzer. This was a prime example of how Sanzo
promoted brand awareness through celebrity engagement while aligning the brand with the promotion of
Asian culture.

Often, Sanzo would promote sales in small, local Asian shops in New York or other cities. Sanzo also
encouraged user-generated content in its social media posts, encouraging members of the community to
stay engaged via social media by posting their own photos with the hashtag #Sanzo. The company also
partnered with a poke bowl food business, which aligned with its Asian culture brand strategy.

HOW TO KEEP THE MOMENTUM GOING

“To give you a sense of our growth,” Roco said, “it was just myself in 2019, and for most of 2020. I
ended up hiring my first two employees in October 2020, and then in 2021, we were up to nine
employees. And today we are at twenty-five. In terms of team growth, it has been crazy as well.”
Locking in additional venture capital funding was essential to allowing Sanzo to scale its operation.28 “If
you’re running a company like mine, where a convergence of trends across multiple stakeholder groups
28
Monica Watrous, “Sanzo Raises $10 Million in Series A Funding,” Food Business News, February 22, 2022,
https://www.foodbusinessnews.net/articles/20727-sanzo-raises-10-million-in-series-a-funding.

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suggests a market inflection is about to hit, you have to scale your business and do it fast,” explained
Roco. “You have to go after capital when you are looking at double-digit growth and want to have an
impact in your market.” Roco added, “We are looking to continue growing our community and digital
presence in the states, where demand is heating up.” He summarized:
We believe that if we can create really valuable content, really great education for the market and, I
am sure, do subtle nods to the brand, we will be able to build a real, sustainable relationship with
folks. And again, I don’t want to say that it does not matter what they are like—whether they are
Asian, Asian American or not. What matters is, Is this product interesting to them? . . . Remember,
65 per cent of our audience is actually not Asian American, and that has been interesting for us. It’s
like, oh, wow! For me, it has been like, “Oh, more people are interested in my culture than even I
thought.” And so, how do we help continue to be a bridge for folks?
Roco wondered which growth path was optimal for Sanzo. He mused about several alternatives: (1)
Should he strengthen brand awareness by getting more celebrity endorsements? This was not a simple
matter, and it would take considerable effort and time. (2) Should he expand his current target market and
positioning to attract more broad-based, health-conscious consumers? (3) Should he expand globally to
leverage the brand’s strength in the United States and possibly become a brand for more cultures around
the world? (4) Should he consider expanding the product line? Mass-market consumers beyond the
targeted niche Asian or Asian American segment might not be open to the brand’s core flavour line. (5)
Should he change his channel-to-market focus? There was a possibility to grow the DTC channel or
expand the retail focus to add more local Asian shops or possibly big, mainstream retail chains. (6)
Should he focus all efforts on creating more engaging, relevant, enticing, exciting, promotional
communications—digitally or otherwise—that would appeal to more consumers? (7) Finally, and Roco
was hesitant to go down this one- way path, he could lower prices to grow market share throughout
Sanzo’s existing market. Regardless, all of the alternatives would rely heavily on Sanzo’s future branding
and its story.
Founder Roco was now faced with his most difficult decision to date. With twenty-four employees and
roughly $5 million in revenues under his belt, the chief executive officer and founder of Sanzo was finally
seeing signs of the long-anticipated market inflection in the US sparkling/seltzer water industry. He had
just received Series A funding to finance a major marketing rollout of his flavourful Asian-inspired line.
Roco and his team were gearing up to compete for the leadership position in the sparkling-water market
category in the United States, which was predicted to grow to beyond its current value of over $5 billion.
Although the ready-to-drink beverage industry in the United States was highly fragmented, Sanzo had
become a dominant sparkling-water player in 2022 and had gradually increased its brand recognition. As
the industry approached its inflection point, Roco could imagine using the additional funding to expand
his sales and marketing presence across North America. Roco described his investment in marketing up to
this point this way: “We have built Sanzo on word-of-mouth referrals, creating what has become a very
strong relationship business. Seventy-five per cent of our existing customers repurchased annually. We
have a very loyal following.” That said, Roco needed to better understand how Sanzo’s target customers
learned about new brands. What content were they consuming? What drew them in?
Ultimately, Roco needed to know how Sanzo could continue to appeal with content that was engaging,
relevant, enticing, exciting, and appealing to the general consumer.

The author would like to acknowledge Sanzo and Sandro Roco’s steadfast support, which enabled this case. Sanzo’s
founder and CEO, Sandro Roco, truly embraced the author’s objective to educate college students on the importance of
branding and brand storytelling in industry.

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EXHIBIT 1: SANZO MISSION AND FOUNDER

Company Mission
"Our mission is to bridge cultures by
connecting people to authentic flavors"
Sandro Roco
Founder and CEO of Sanzo

• Celebrating high-quality Asian flavors without

the sugars
• Offering healthy innovative, bold flavors
• Bridging cultures by connecting people
from the East to West

Source: Company documents.

EXHIBIT 2: SANZO STRATEGIC INNOVATION AND TIMELINE

Source: Company documents.

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EXHIBIT 3: SANZO PRODUCT LINE

Source: Company documents.

EXHIBIT 4: LINSANITY COLLABORATION

Source: Company documents.

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EXHIBIT 5: SANZO’S 2022 MARKETING SURVEY—CONSUMER PROFILE AND KEY LEARNINGS

Source: Company documents, based on internal market research survey conducted by Sanzo in 2022.

EXHIBIT 6: CONSUMER STATED PURCHASE PREFERENCE FOR SANZO

Source: Company documents, based on internal market research survey conducted by Sanzo in 2022 (n = 344 responses).

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EXHIBIT 7: FLAVOURED SELTZER / SPARKLING-WATER MARKET SHARE IN 2022

BRAND US DOLLAR SALES MARKET SHARE

Sparkling Ice $836,459,993 23.0%

Private Label $636,403,988 17.5%

LaCroix $549,444,493 15.1%

Bubly $376,697,108 10.4%

Polar $259,592,372 7.1%

Category Total* $3,635,605,548 100.0%

Note: *Includes brands not listed.

Source: Excerpted from BNP Media, “2022 State of Beverage Industry | Sparkling Water Shines in Bottled Water Category,”
Beverage Industry, July 6, 2022, https://www.bevindustry.com/articles/95137-2022-state-of-the-beverage-industry-sparkling-
water-shines-in-bottled-water-category#:~:text=Additionally%2C%20IRI%20data%20shows%20that,with%20sales%20at%
20%243.6%20billion.

EXHIBIT 8: SANZO COMPETITIVE COMPARISON

Sparkling Water Sparkling Water Full Calorie

(US Premium) (INT’L Premium) Diet Soda
Soda

Note: Sparkling Water (US Premium) = Spindrift; Sparkling Water (Int’l Premium) = San Pellegrino, Perrier, etc.; Diet Soda =
Diet Coke, etc.; Full Calorie Soda = Coca-Cola, etc.; Brands are provided as examples and are not all inclusive.
Source: Company documents.

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EXHIBIT 9: SANZO SALES CHANNELS AS OF 2022 (PERCENTAGES APPROXIMATE)

Percentage of Description
Total Sales
Retail/Key Accounts 75% wholesale sales to small, independent domestic specialty and large
retailers
E-commerce 15% direct-to-consumer (DTC) sales from Sanzo’s website and Amazon

Food Service 10% restaurants

International 0% sales to international distributors

Source: Company documents.

EXHIBIT 10: SANZO DIGITAL MARKETING CHANNELS

Source: Company documents, accessed from Sanzo’s investor pitch deck.

EXHIBIT 11: CONSUMERS’ STATED PURCHASE BEHAVIOUR

Which best describes how you buy Sanzo sparkling water? Percentage of Responses

In addition to other sparkling-water brands I buy 68.8

In place of the other sparkling-water brands I buy 25.5

I have not purchased Sanzo sparkling water. 5.7

Source: Company documents, based on internal market research survey conducted by Sanzo in 2022 (n = 365 responses).

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