bbiheaderwobuttons1250

Events

Natural Products Expo West
Mar 6-9, 2014 Anaheim, CA

InnoBev Global Soft Drinks Congress
Apr 7-9, 2014 Lisbon

BevNet Live
May 14-15, 2014 New York, NY

National Restaurant Association Show
May 17-20, 2014 Chicago, IL

World Tea Expo/Healthy Beverage Expo
May 29-31, 2014 Long Beach, CA

SupplySide Marketplace
Jun 2-3, 2014 New York, NY

Beer Marketer's Insights Spring Conference
Jun 9-10, 2014 Chicago, IL

InterBev/FMI Interconnect
Jun 10-13, 2014 Chicago, IL

Fancy Food Show
Jun 29-Jul 1, 2014 New York, NY

 

 

 

 

 

 

 

 

 

Public Archives Search

Keyword Search

Beverage Business Insights

Bud Wholesalers Organizing to Win Better Monster Exit Terms Bridling at paltry buyout they can expect from soon-departing Monster Energy brand, group of Anheuser-Busch wholesalers are organizing to try to win improvements, tho so far they’re not showing their hand as to how they’ll accomplish that. In emails to fellow Bud distributors, organizers Jeff Vukelic of Saratoga Eagle in upstate NY and Jeff Gower of Wil Fischer in Springfield, Mo, are claiming “overwhelmingly positive” response to initial email sent out last week, and are now gathering signatures for cooperation agreement that precludes supporters from negotiating individual deals with Monster Beverage. Group will be managed by committee that so far includes just Vukelic and Gower but which will be expanded to include representative from each state where Bud wholesalers have come aboard. Per latest memo, terms of any ultimate deal would have to be approved by vote of all wholesalers, who’re being asked to contribute initial $2,500 to cover legal and other expenses. Agreement includes confidentiality clause to try to prevent leaks as strategy is developed. Effort is reminiscent of efforts by some Glaceau distributors to challenge buyout terms over transition of that brand to Coca-Cola back in 07; none is known to have prevailed in court challenges, but a few may have settled on slightly sweetened terms.

As reported, Monster Energy currently splits US between Bud shops and Coke bottlers but plans to migrate brand almost entirely to Coke network as it implements deal calling for investment by Coke in return for stake of co. Monster contract calls for buyout of just 1X gross profit, which Bud operators feel grossly undervalues their contribution to development of brand. “Simply stated, one times gross profit is not anywhere near the value of the brands,” Vukelic and Gower wrote in initial solicitation to fellow beer distributors last week. As earlier reported, departure of brand could severely weaken many Bud houses, to point of forcing some into sale or merger, some beer consultants have warned. Spectacular growth and margin of energy brands has enabled top brands Red Bull and Monster to negotiate uncommonly stingy agreements with indie distributors; if anything, Red Bull’s is worse than Monster’s, calling for no stipulated buyout even for terminations without cause.

Cutting Edge Info for the Savvy Beverage Executive

 


As an effective beverage executive, you need to explore all potential avenues for revenue growth and margin enhancement. Beverage Business Insights -BBI-gives you the info you need to keep up with the latest trends in the dynamic world of non-alcoholic beverages. It's produced by the same team that brings you Beer Marketer's Insights, and is written with the needs of beer wholesalers specifically in mind: straightforward, to the point, and with a street-savvy orientation. BBI helps you to separate the news from the noise.

BBI offers informed assessments of up-and-coming brands and categories. We were among the first to identify coconut water category as a winner, and we have carefully traced the rollout plans of brands like Activate, Body Armor, Neuro and Marley. We give you up-to-date info on the DSD plans of brands like these, and track developments at brands like Vita Coco and Muscle Milk as they prepare to transition out of the independent distribution system. We offer insights into how beer distributors around the country are developing sustainable non-alc beverage businesses, as well as the contract issues that have kept some brand owners outside the DSD system. BBI gives you frequent updates of scanner data in measured channels, so that you know where the growth is. BBI also has kept a close watch on intriguing moves by major beverage players & investors in this space, including Tata Global Beverages' investments in Vitaminwater and Activate as they seek 'experiential' brands with social & environmental goals. BBI goes behind the scenes at major launch platforms like Natural Products Expo West and the NACS convenience store expo, bringing you key emerging beverages. Your subscription cost is a fraction of what you'd pay to attend any of these meetings yourself, plus you get unique and valuable insights from BBI's editor and longtime beverage trendwatcher, Gerry Khermouch.

BBI focuses on what's innovative, what's new and what's moving off the shelves. You get valuable news and in-depth analysis. Since BBI is brought to you by Beer Marketer's INSIGHTS, the leading trade publisher for the beer business for over 40 years, you can count on our dedication to fairness, accuracy and timeliness.

See for yourself what people are talking about. Stay in the loop with one easy step. Subscribe to Beverage Business INSIGHTS. BBI comes out at least 90x per year and as soon as possible whenever big news breaks, available via e-mail. It costs just $390 per year. That's a small price to pay to stay on top of the trends. Don't miss a single lead on hot new non-alc brands. Order today!

P.S. Your satisfaction is guaranteed. If you are ever dissatisfied, we will gladly refund the unused portion of your subscription. 

Who Should Read Beverage Business Insights?
  • Distributors
  • Beverage executives
  • Beverage Ad execs
  • Entrepreneurs
  • Co-packers
  • Strategic planning execs
  • Product development staff
  • Private equity & venture capital investors



Beverage Business Insights tells you everything you need to know about emerging and established non-alc beverage brands.

Order your satisfaction-guaranteed subscription today!

Here is some of the info BBI readers had access to recently:

 

    • Red Bull Sets Sales Meeting, Preps Total Zero as Part of Trifecta



    • Ex-Fiji, Pabst Chief Cochran Back in NAs, at Helm of AquaHydrate; Rethinking Premise; Has Given Himself 8-10 Weeks to Take Hydration Brand 'from Good to Great'



    • Monster Outerforms Rivals on Volume, Price in Dec



    • Calypso Surpassed 2 Mil Cases in 2011; Boosts Chicago DSD Presence; Plans New Flavor



    • FANCY FOOD: Back in Juice Biz at Califia Farms, Steltenpohl Reflects on Odwalla, Adina Lessons; Warns Against Institutional Funding; Sees Opportunities in Local/Simple Nexus



    • Body Armor Investor Repole: 'Had to Be Something Special' to Re-Enter Bevs; Seeing Repeat Biz Already; Believes All-in-One Concept Makes It iPhone of Bevs



    • Adina Lays Off Sales Force while Continuing Search for New Partners



    • FANCY FOOD: Republic of Tea Changes Packs to Celebrate 20 Years; Enters Sweet Tea Realm; Plans Probiotic, Red-Wine-Extract Additions to Be Well Line for Expo West



    • PEOPLE: Kurtz Hits Ground Running at Bai; Body Armor Confirms 'Significant' Repole Investment



    • SPECIAL REPORT: Vita Coco May Approach $200M Sales in 2012; National Rollout Should Be Complete; Will Reassert Tropical Positioning, Dial Up Paid-Media Budget



    • RESEARCH: Clues Revealed on Why Coffee Cuts Risk of Diabetes



    • Anheuser-Busch Adds to Branch Network with Ore Deal; Keeps Monster, Outside Craft Brands



  • And much, much more!

If you make, market, distribute or follow non-alcoholic beverages, give yourself the competitive edge enjoyed by Beverage Business Insights subscribers today.