Latest / The Faceoff Podcast | Youth Sports Business / Episode 8: Diyana Georgieva & CUGGO — Sweet Smart, Not Anti-Sugar
Transcript
- Paul Variano: Welcome in! This is The Coach's Board, the playbook for modern youth sports. I'm Paul Variano, and every episode we sit down with someone who actually runs this game. My guest today is Diyana Georgieva, founder of CUGGO. CUGGO is rethinking kids' drinks with zero sugar, essential electrolytes, nine vitamins and kid-loved flavor, all sweetened naturally with monk fruit. Diyana is a mom of two and an entrepreneur with a background in hospitality. She's building CUGGO with her husband, her partner in the business, whom she met in high school, and with her two kids, who are deeply involved in the marketing. She'll tell you that may be the most rewarding part of launching the brand. Most kids' drinks are built around taste first and function second. CUGGO flips that. And the mission behind it is simple: help families be sweet smart, and more intentional about how much sugar kids take in. Diyana, welcome to The Coach's Board. Diyana G: Thank you, Paul. I'm so excited to be here and to tell my story. Paul Variano: Thank you, Diyana. We're really excited to have you on and share more about your background, what you're building with CUGGO, as well as the vision you have for the company and the brand. So why is a youth sports show spending an episode on a kids' drink? Because of what happens after the whistle. Practice ends, the cooler comes out, and for a lot of families, the go-to is a sports drink. A 20-ounce bottle can carry 34 grams of sugar, handed to a kid who just ran around for an hour. Diyana is a mom who decided to build something different, and she's building it with her own kids. So today we're talking about what we actually hand our kids after practice, where sugar hides, how to get kids off the screens and back outside, and what it takes to build a family brand in an aisle full of giants. No lectures and no judgment. Just two people who spent a lot of time around kids. Diyana, take me back to the start. What were your kids drinking back then? And what was the moment you decided to make something yourself? Diyana G: It's really a combination of a parenting struggle. My son was not really drinking much. Back in the day, I used to buy orange juice thinking it's a healthier alternative, only to find out that there's so much sugar in it later on. So I was thinking vitamin C is good, let me give him more juice. So he will drink the juice, willingly, but that would definitely bring a little bit of some mood swings later on. But in general, we had a struggle with him. He was just not drinking any water, or he would just want very sugary drinks. And at the same time, when I started looking for something else in the beverage aisle, I noticed there's not much that, when you read the label, you feel good about. So I figured, maybe this is an opportunity. I'm a mom and I really truly believe that while we can, we should choose better for our kids. After they turn 18, we don't have much control, but while they're little, we can control what goes into their bodies. I started researching, and it looked like there was a little bit of a white space in that beverage aisle for kids. And at the same time we're seeing a big shift in the adult beverage space, All those functional drinks, amazing new products showing up every day. And I'm thinking, why are the kids not getting the same attention? They deserve better. So this is how we started. It was a personal struggle with hydration with our son. Our daughter was definitely open to the conversation of trying healthier drinks. She was my hope that we could win this, because she was aware that sugar is probably not our best friend. And again, I'm not anti-sugar. I'm not one of those crazy moms, but I just want to be very mindful about that. Beverages, they take about 20% of their sugar intake per day, so it is a big deal what we give them. Paul Variano: So it sounds like this was built out of a personal, a situation, a challenge, from your son drinking a lot of sugary drinks. And I'll be the first one to say I was very similar to your son. I would refuse to drink water and only drink orange juice. I can see the situation you were going through. But you also then approached this personal challenge with a professional lens. You came out of hospitality. What carried over into building a drink, and what was completely new? Diyana G: Just like in hospitality, you might have the best product, but if the experience is not great, you will lose the customer eventually. This was the approach we took with CUGGO. We wanted to start with function and ingredients first because as a mom I believed we have to have very good ingredients. So I'm comfortable giving them to my kids first, We wanted to be very transparent about that. But I also did not have much control of what happens after. In a way you also have two different customers you have to appeal to here. The parents are shopping for the product. You wanna make sure they like what goes into the label, but then kids could care less about ingredients. They want good taste. This was the ultimate challenge. How do we make it not only functional but delicious? And they're tough critics, so we had to deliver a very delicious drink, which I believe we did. Unlike being in hospitality, there you have the opportunity to really recover a guest if something goes wrong. With a CPG brand, you need to do the homework in advance to make sure that everything that is in that pouch, from formula to flavor and packaging, will deliver once it's in the hands of the customer, because otherwise you have no control to really make it right. So this was a big challenge. And it's still a challenge. And you do get some feedback from customers, but sometimes it's really difficult to know what exactly is happening once they open it and give it to their kids. And then of course learning quite a lot about starting from scratch, developing the formula, working with the vendors, getting all the approvals, and making it, just having it delivered to your door. So yeah, a lot of new things, a big learning curve. Paul Variano: It sounds like you've done a lot and you've learned a lot as well. But you also had some incredible business partners along the way that I mentioned at the beginning of the podcast, your husband and your kids. Focusing first on your husband, who you met in high school, how do you split the duties amongst the two of you? Diyana G: I have my husband not only as a partner in life, but we discuss everything business-related together every day. And a lot of people are surprised how we do it. We work together and we are together all the time, but it somehow works for us. He runs consumer acquisition for the brand. This is something that he's been doing for years. So instead of being an agency, he's the person who is doing it for our brand. And every major decision I run by him, because being a founder could be a lonely journey sometimes. I have a small team, but they are not the people who... Of course, I always ask for their feedback because they're young and they're creative, but having him on my side for every major decision is huge. But yeah, he mostly does marketing, and we just discuss everything daily, in the morning, in the afternoon. Anytime we get a window of time to talk, we talk about business. Paul Variano: I love that. And then you have your two youngest partners. What has building CUGGO shown your kids about starting a business, and about not giving up? Diyana G: I really wanted this to be a moment where we show them that entrepreneurship is the confidence to build something if you believe in an idea. Times are changing. I'm concerned about what's gonna happen by the time they are ready to enter the job market. So I figured this might be an opportunity to learn a few things. One thing is really to show them not to give up, yes, big deal. It's really one of those things you wanna teach them early on. But we often talk about perseverance in a way that sometimes you might have to also pivot. You might believe in an idea, but it may turn out that you have to adjust, you have to keep learning. That doesn't mean you stop believing in your ideas and you pursue them. This has been a very rewarding opportunity. And also, I think, them watching me not having all the answers. Because some days I'll get rejected. I was trying to bring samples to Chelsea Piers here in the city. I've been calling them every day. So usually I call them in the afternoon after I pick up the kids. So they hear that and I'm like, damn, these people are not responding to me. So they see the grind. And that's the beauty of it, right? Them see me that I don't have the answers, but I don't give up. I think this is very rewarding. And another thing that I started doing with the kids lately is at night we usually sit down and talk about the day, and I usually ask them about their friends. They mention if there's a conflict, they usually come up with the heavier conversations. But I started asking them about not being able to do something today, We don't talk about failure necessarily, but we talk about that to fail or to not be able to finish something or to do something is not that scary. It is okay, and it will happen multiple times in life. Sometimes it's the small things, but also in bigger things. I want them to be conditioned in that scenario in life as well. So entrepreneurship is a very good opportunity for that because you not always win. You sometimes really fail and we talk about failing forward. Paul Variano: The kids are part of the mission and the mission comes down to two words. It's sweet smart. What does sweet smart mean in plain English? Diyana G: Sweet smart, we wanted to really come up with something that is a little bit less abrupt than zero sugar or sugar-free. A lot of people when they hear that, they automatically think this is artificial sweeteners, And we don't have artificial sweeteners, we actually have monk fruit, which is the best out there. So sweet smart was to educate people that we should be able to cut sugar where we can. Not everything could be avoided, but if you could swap a sugary drink with something that is as delicious but has zero sugar, why not? So this is very simple, but according to the American Association of Pediatrics, the kids are recommended to consume 25 grams of sugar per day. They consume three times more. So if a sports drink is 34 grams of sugar, you can do the math, we parents have a very important task. And again, we're not bashing, we're not judging, we're just educating, we're putting the numbers out there. Where you can cut the sugar in your kid's diet, it's probably a good idea because they're already maxed out. So that's why sweet smart. But I asked the kids the other day, can you guys give me a definition of sweet smart? And my son was like, strawberry with glasses. They were trying to be thinking outside of the box. It could be interpreted in many different ways. Paul Variano: I love your answer about education, and I think that's always what the barrier is to so many, preventing so many people from success, is that lack of education. And in this case it's understanding nutrition, understanding where sugar is hiding that parents don't expect it. I always have the saying, practice what you preach. So what does sweet smart look like in your house on a normal Tuesday? What is in the lunchbox, after school, on the weekend? Diyana G: I try to keep a very balanced approach because my kids love to eat ice cream. They like sugar and this is not a problem. We wanna have a healthy relationship with sugar. But since I'm in control of what goes into the lunchbox, what goes for breakfast, if they have, for example, granola for breakfast, I'll make sure they eat yogurt with it so there's a little bit of protein to offset the sugar spike that will happen from the granola being so sweet. And if they have sweet breakfast, probably we'll skip the dessert for lunch in the lunch box. That 25 grams of sugar is always in the back of my mind. We always exceeded ourselves too, because it's very difficult. Everything has added sugar: bread, yogurt. It's very, very difficult to keep track. But I just like to also educate the kids. I talk about portions. When they do ice cream after dinner, instead of doing two scoops, I'm like, guys, can we try one scoop? Because this is how much this has, and you really don't need, you still enjoy it, so why overdo it? And I think this is the most important thing that I want people to take from this. Kids are very smart and they understand when you explain to them. And when you give them the information without being scary, just as a mom to a kid, as a friend to a friend. Listen, this is how much is in one scoop, this is how much is in two scoops. Can we make that trade? And I'm sure you're gonna feel better and you're gonna thank me later, But it's never like a lecture, it's more like conversational, educational, keeping the humor in it too. I also have a safe zone at home. You have this drawer where I would curate their sweets, So we just try to buy better snacks, read the label and choose smart. So if you give them access to things that you don't want them to consume, probably that's not gonna end your fight about sugar, you have to be very mindful when you buy what you give them access to, and keep it fun at the same time. Paul Variano: Going into the history of sports drinks, Gatorade is sort of the first one that comes to mind. Which is now, I want to say, almost past 75 years old, started in the '50s and '60s down in the University of Florida. And back then, just looking at the first ingredients that were used, it was actually all natural back then. They used water, salt, lemon, and pure cane sugar. They just put it in together and mixed it. And then just to see the evolution, I hate to use the word unfortunately, throughout time in sports drinks, and I think just to see the last couple of years and companies like CUGGO, leaders like yourself identifying the issues that these sugary drinks are presenting and finding an alternative young athletes, to not have that sugar rush, that sugar spike that naturally comes and really overfeeding what their recommended consumption is to your point about those numbers. Practice ends, the cooler opens, and out comes a sports drink with 34 grams of sugar, why do you think that became the default? Why do you think that's been the more successful model as opposed to water or other healthier drinks? Diyana G: Those are huge companies with great marketing. They're usually associated with some of these amazing athletes that kids just love and look up to. Somewhere along the way people decided that it's okay to give a high-performing athlete drink to a kid in a recreational type of sport. So this is where I think it just happened, and probably the marketing, the fact that there's a lot of famous athletes associated with those brands is the one to blame. But I also love to see a shift. But some of the very big names in basketball, sometimes they'll go to a press conference, and if there is any sort of sports drink, I'm not gonna bash Gatorade because I think we all love Gatorade in some way or another. We just don't love the sugar in it, right? But it's a feel-good company. And I'm not here to, bash them for a lot of things that goes into the bottle. So what I was trying to say is, they will remove the bottle away. They don't wanna be associated, those athletes with those drinks anymore. So in a way they are making a big shift in that direction as well, because they know they're the role models for our kids. Paul Variano: So it's both, not just a flavor profile, but from even just a marketing sense, the athletes themselves want to be associated with higher performance, more alternative, healthier lifestyle something for founders, other brands to consider, entrepreneurs as whether it's food or beverage products that they're thinking about starting. If you were the team manager running the snack and drink schedule, what would you change this week? Diyana G: I think sticking to the basics is always a good idea. The cooler should always have, first of all, water. Nothing beats water. All these drinks, including CUGGO, they're great. They offer electrolytes and additional benefits. But water is essential, I would always put water first. Some protein snacks, I'd say some cheese, pretzels, bananas, but of course, electrolyte drinks are good for tournament days, but water is probably enough if it's just a practice day. Paul Variano: I think water is always the source of all life in the world, and I'm sure, I don't know if you've seen The Waterboy with Adam Sandler, the main character in that movie. I think he'd agree with that statement as well. Moving to CUGGO, and you mentioned having for tournaments that extra electrolytes, and that's really the essence of what CUGGO is. Can you talk about if teams, clubs, tournaments, camps have come to you, and what's those asks usually been like? Diyana G: A lot of baseball teams from the West, they have very scorching summers. A lot of teams from Arizona too have come to us. Usually they want to be sent samples, which I gladly do. And then they send me footage of the kids drinking it and trying it. We've done a few sponsorships with clubs in California. And we get a lot of different individual athletes also reach out to us through social media that they want to try, they wanna be ambassadors. So we have people in Hawaii representing CUGGO when they go on their competitions, to skateboarders, hockey teams, a lot of baseball teams. It's great to see that sort of conversation going. Also, parents saying a few nice words to you as a founder, that's very gratifying to hear that they actually have been looking for something healthier and they're happy that exists now. It's interesting. People are definitely reaching out and looking for better alternatives. Paul Variano: Kudos to your success. I think that it speaks to how great of a product that CUGGO is, the demand for it in the marketplace, you've said that there's a connection between sugar, screens and how active kids are. Diyana G: Well, it's not necessarily something that I'll tie together or there's a research on it, but it makes sense, right? Kids nowadays, they don't have a free minute to themselves. If they're bored, they go for a device. They're just that accessible. I'm a mom, I see it. They reach for it no matter how much I hide them. We have devices, they find them, even my phone. That's the first thing. But then also, if you have easy access to sugary snacks and drinks and you consume them, chances are you're not gonna feel very energized to go outside and hit the ball. The easiest low-hanging fruit will be screen time, And that's kind of like the viciousness of it. And then while on the screen, you'll probably be seeing advertising material about the same products, and that goes back to my thought. We fight the screen time fight, we fight the sugar fight separately, but in a way, we should see the bigger picture. Building a healthier lifestyle probably will address all those. Our mission is to really have the childhood as we know it back in the day, to fuel the kids with clean energy so they're out playing, getting dirty and making memories. Because nobody's gonna remember sitting in front of a device when they're 20 years old. They're gonna remember being outside with their friends, running wild and probably doing some mischievous things too. Paul Variano: That's the fun part of being a kid, there's a stakeholder you keep coming back to, and it's the one who is the purchaser 99% of the time of the product, and that's the parent. What's a piece of advice you'd give to a parent as they think about the hydration, the fueling of their young athlete? What's something that you see a lot that could be done better by parents? Diyana G: The statistics are staggering, and I can speak as a parent myself. 50% of kids are considered dehydrated, which is problematic. I would advise parents to stay on top of their kids' hydration for a day, and see how their kids are less grumpy. I make that statement very responsibly because I see it firsthand with my son. Even if he's not severely dehydrated, but mildly, he is just difficult. Then we have a whole conversation about hydration. I keep reminding him, please drink water, drink your CUGGO, whatever, just make sure you have liquid in your body. This is something where we need to also be worried about, not just screen time, we need to be worried about how much kids are being hydrated, are they drinking enough throughout the day, because this affects their performance in school, their willingness to do homework, everything. It's so important and we that there's a major issue with it. Paul Variano: I couldn't agree more. It's tough, and when you think about what so many parents are going through, they have a lot of different things going on in their lives, and you know what they say, parenting is probably one of the hardest things you'll do in your life, and there's no guide to it. There's people who try to write books, but every kid is different. You've been incredibly successful in being able to scale and grow the company. So what's that experience been like? What do you think were the most important things that you had to do? Diyana G: want to put your product in front of more eyes. That's the bottom line. When you're a new brand, the goal is to really make more people try, give you feedback, and potentially subscribe, because we want subscribers, want people to really love it and buy it repeatedly. The goal is to really grow a lot online, but also go into retail. And we've been approached about the retail opportunities and we're looking into this as well. So we're not there yet, but I'm hoping to be on shelves soon. Paul Variano: So the business has been primarily direct to consumer for the most part. And where have you seen the most success in direct to consumer? Has it been to clubs, to parents, to schools? Where has been the best customer segment, and do you see that changing in the future? Diyana G: Yes, it's the sports parents, that's definitely one of the biggest segments that we have. But also parents who are just seeking to switch from sugary drinks. Because our product is also enhanced with vitamins, some people just choose it for those benefits as well. So we have a good mixture of both, but in general parents seeking better alternatives, sugar-free alternatives and the sports moms, They're a big segment. Paul Variano: Awesome. Well, before we let you go, we'd love to know beyond just trying to make it into retail, into grocery, what's next for CUGGO? Diyana G: The kids ask me all the time, are we making more flavors? What's next? The most natural thing will be to really do more flavors. But I feel like everybody's doing that. I'm always thinking about some new formats of delivery. What would be the next exciting thing? We see it happening in the adult space where... I'm not talking about gummies. I don't think we're gonna go into that space, but there's different formats that people get excited about. I just want to make one important detail clear here. I would not go after something that is just trendy now for the sake of making profit. I want something that will be a good fit for busy families. That's why the convenience of having a stick. I know a lot of people ask me why stick versus ready to drink. It makes sense, you can throw it in every bag, in every backpack. But yeah, I think we either add more flavors or we go for something a little bit different in format, in the way they consume it, basically. Paul Variano: Well, stay aligned to the mission, what started for and what you continue to do, Diyana. Last question, it's the same one we asked all guests. A parent, a coach just watched this episode. What's one thing each of them should do this week? Diyana G: For a parent, I would say, try to change one default in your life and in your kids' life. For example, it might be the drink they're drinking, how much screen time they have, are they active enough? And I'm not saying go for a major change. I mean, life is crazy and busy. This is not the idea here, but just challenge in what area you could do better. And I'm sure, more often than not, we're so used to doing and making the same default choices that it's difficult to make a change, but it doesn't have to be drastic. It could be just a small change this week and then build onto that next week and probably give it a month. Things could look better. For the coaches, I think they have a very incredible opportunity to educate the kids in terms of the same conversation we just had, to choose better and to shape better habits, because kids look up to their coaches, they're everything, right? The coach is their friend, it's their mentor. It's great to have that opportunity to educate them and to teach them also by example. I remember mentioning to you that my son's jiu-jitsu coach ends every workout with repeating the same hygiene, good habits mantras and the kids repeat them all the time. And one of those mantras is what you're not going to do when you leave practice? And the kids answer: drink it and eat sugar, right? This is not saying no to sugar or to anything. We're just educating them that you cannot just grab a bottle of 34 grams of sugar after you just did a workout. It's almost like undoing the benefit of the sport, It's making smarter choices and shaping good habits early on. Paul Variano: Diyana, I love that answer. And as a coach, and from The Coach's Board itself, we agree the coach is the biggest influence in an athlete's journey and a pathway, and giving them that advice about nutrition and what that hydration is after practice, having the right amount of water, the right amount of electrolytes with not as much sugar. I think those are things that I do now with my teams that I coach. It's something you have to, to your point, it's constantly doing. It's never just once. In coaching young kids, it's consistency, it's sticking to those values and that culture. So really excited. I'm gonna be ordering a pack of CUGGO packets soon, and we'll definitely give it out to my kids and hopefully they'll be interested in ordering more. Before we let you go though, rapid fire: five quick ones. The first thing that comes to mind: Your favorite sports drink growing up? Diyana G: Oof, I'm boring. I never really had any of those because I grew up in a country where we did not have a lot of options. So I'll say water. This is boring, I know. Paul Variano: Waterboy would be proud. Diyana G: Okay, yes. There we go. Paul Variano: The one sweet treat you'll never give up? Diyana G: Dark chocolate. Paul Variano: Okay. I'm more of a milk chocolate person, but... Diyana G: Well, as long as it's chocolate, it's good. Paul Variano: It's good, it's chocolate, it's good. Coming from hospitality: the best meal you've ever had? Diyana G: I've had a lot of great meals, but I would say a good steakhouse with all the fine dining experience is what always feels so rewarding to me. I remember once my husband took me to, it was a steakhouse in Vegas by Jean-Georges and we had, I mean, incredible meal, but more importantly the service was so good, it's basically not reactive, but they anticipate what you might need next and they're on top of it. I love that. Fine dining restaurants are a dying breed. They do exist here and there, but when you go to a place where you really treat it well and it's so orchestrated in a manner that you don't see a lot lately. Yeah, I remember that. That was quite a good meal. Paul Variano: It's tough business, fine dining, a lot of expenses, but to your point, I think it's an incredible experience, and I probably wouldn't necessarily want to bring kids, but if you have maybe yours who are well-behaved, not probably the ones that I coach. Diyana G: They should also see the fine things in life as well and aspire and all that, it's a good thing. Sometimes we take them, not probably the super fine restaurants, but we do try to show them how it's done as well. Paul Variano: We have to teach, we have to coach manners. You're absolutely right. Last question: if your kids pick CUGGO's next flavor, what would it be? Diyana G: I think peach. They love peach flavor. Also mango, but peach is probably the number one flavor for them. Paul Variano: Well, either one, count me in. I'm a fan of both. I like their flavor profile. Diyana G: I'll be sending you some product here after the show. I forgot that you have a whole team. Paul Variano: I appreciate that, Diyana, founder of CUGGO. Where should people find you? Diyana G: We're available on our website, cuggo.com, C-U-G-G-O.com, and also on Amazon. Here's the packaging. It's very fun. I just opened one for myself. I had it today. I know I'm not a kid, but I sometimes do it. Sometimes parents of our kids drink it on a Sunday morning. So we get those reports too, after a long night with alcohol. So yeah, this is how we look. It's fun packaging. Kids usually get very intrigued when they see it. So Amazon and direct to consumer on our website. Paul Variano: Diyana, thank you. This was a great one. Diyana G: Thank you, Paul, likewise. Paul Variano: Thank you for listening and watching. If you enjoyed today's Faceoff with Diyana Georgieva of CUGGO, here's the best way to support the show: check out thecoachsboard.com, where the newsletter is free, and wherever you follow along on YouTube, Spotify, Apple Podcasts, hit subscribe or follow. Give this one a like and leave us a comment. Takes 10 seconds, it's the best way to support what we're building. Every week we sit down with a founder or leader in youth sports and hear their story: the journey, the wins and the misses. Honest conversations with honest people. One more thing: we're looking for a first brand sponsor. If your brand sells into youth sports, this is the room to be in. The people listening run clubs, coach teams, operate facilities, and organize leagues. And one club director buys for hundreds of athletes. Our founding partner gets an ad read in every episode, a feature on thecoachsboard.com, a spot on our Official Partners page, and short clips promoting the brand across our socials. And you'd be on the ground floor building it with us. If that's you, reach out to us at thecoachsboard.com. Be sure to tune in Monday, when Nathan Holm joins us. He coached college basketball, spent nine years inside a national youth sports nonprofit, and now he's the founder and CEO of LnUP, which helps independent youth sports leaders build stronger organizations behind their program. Thanks, and have a great week.