Beer Marketer's Insights

Beer Marketer's Insights

Lawyers from both sides packed into the courtroom yesterday afternoon as ABI and STZ's 2-wk trial wound down to closing arguments. Both sides claimed to show a "smoking gun" with respect to the others' handling of the disputed sublicense agreement (SLA). ABI's lead lawyer Sean O'Shea took center stage first, promising to prove to the jury "what you already know," that Corona Hard Seltzer is "not a beer" in actuality or in the SLA.

Kevin Keane, who stepped into interim ceo role at American Beverage Assn after Katherine Lugar decided to return to the hospitality sector, has named Amy Brink to fill his prior role as svp for external affairs. Brink joins the lobbying group after playing similar role at Alliance for Automotive Innovation. Before then she'd served at National Retail Federation. It's not clear whether Kevin, a 17-yr ABA vet, is in running to get top job on permanent basis (BBI, Feb 7 and 22) .

Onetime Celsius endorser Flo Rida, who just won $82.6 mil judgment vs brand, is planning his own energy drink now under JettSet1 moniker. It will emerge from new venture called JettSet1 Enterprises that rapper has set up with Florida doctor named George Tabi and Erik Hicks of LA flavor house Dolce Foglia that seems to have broad ambitions, given description in announcement last week that it has "vast interests and partnerships across various industries spanning from biotech, health & wellness, and beverage to real estate development, film and television, just to name a few." Tabi and Flo Rida had previously teamed up on venture called Jetsetter Nutrition that works with JustCBD to offer hemp-derived CBD multivitamin vitamin. JettSet1's first venture seems to be partnership with Sanare Bioscience, which has devised patented drug to relieve patients from cannabis intoxication.

Monster Energy's distinctive green claw isn't an emblem that's likely to have ever been seen at Expo West in past, since the drinks aren't natural and by no means carry the crunchy-granola vibe of typical Expo exhibitor. But there it was turning heads at this year's show via debut of Monster Tour Water, which is seeking to steal a march on Liquid Death by styling itself "the original punk rock water since 2003," referring to entry's inception as a pretend-Monster drink for performers at Monster-sponsored music fests like Warped Tour who could only hoist so much of the actual energy drink. The brand is described on-pack as "deep well water" in still and sparkling versions, packed in 19.2-oz tallboy cans clad with brilliant graphics heralding 2003 edition of Warped Tour, in still and sparkling versions.

Zico Rising, the vehicle for resuscitated Zico Coconut Water that was discontinued by its acquirer Coca-Cola, formally debuted Tetra Pak extension called Hydrate that execs staffing Expo booth said will break in Kroger chain nationally next month. The addition comes as co fortified its coffers earlier this year with equity raise in $14-15 mil range after it spent first year strengthening supply chain and reclaiming shelf space abandoned by Coke. Hydrate extension aims to convert what co likes to call "coco-nots" among consumers who're resistant to category's allure on flavor grounds by offering flavored entry that's just 30% coconut water but contains added electrolytes beyond those from the coconuts themselves. It's in half-liter resealable Tetras in Tropical, Fruit Punch and Coconut Lime flavors priced at $2.99-3.49 but not for long: booth staffers said it will soon transition to half-liter PET bottles. It had popped up on Amazon last fall, tho Zico execs weren't ready to talk about it yet (BBI, Sep 23). Its rival Vita Coco, which holds half the market, has taken other tacks to win over those so-called coconots - via Pressed extension that includes some coconut milk and via bottled protein-infused water called PWR Lift.

Eat the Change showcased its expanded Just Ice Tea line while reporting a couple of new additions to its fledgling DSD distributor network. Just Ice Tea, of course, is successor brand to Honest Tea from its cofounders Seth Goldman and Barry Nalebuff after Honest Tea acquirer Coca-Cola decided to sunset the brand. Based in Bethesda, Md, the brand launched last fall via DSD shops Big Geyser in NY and Morris in Bay Area, both former Honest Tea houses that welcomed the founders back, along with their partner, the restaurateur Spike Mendelsohn, and now the co has added Norman Distributing, a former Honest Tea house in Chicago, and Heidelberg in Kentucky/Ohio, said sales dir Rick Tidrow, a former Honest Tea exec.

 Red Bull North America seems to have converted another major US metro to self-distribution model, this time Boston.  Effective Jun, Santa Monica, Calif-based co is terminating Burke Distributing in Boston, along with MillerCoors house Atlas in Worcester and Bud house Williams in Chicopee in order to pursue self-distribution model in the off-premise, while teaming with Martignetti for the on-premise, we hear.  The departing houses would be among earliest Red Bull partners in US, dating back to late 90s, from what we can recall, and therefore playing pivotal role in flourishing of what then was viewed as weird Austrian brand with cough-syrupy taste and oddball cartoon ads.  Moves come at time that RBNA has been relatively quiet on distribution front, with metros in areas like LA and Miami already converted to self-distribution model, but co seeming to back off from similar moves in secondary markets, that have proved more of a slog.  Burke, based in Randolph, is MillerCoors, Corona, Sam Adams and Guinness house that briefly launched NA distribution arm apart from Red Bull operation but ultimately cut it back to handful of bottled waters.  Asked about moves, RBNA declined to go into specifics but offered statement that noted that it “continues to focus on providing the most effective and efficient route to market in every geography.  We are committed to the three-tier distribution model, optimizing all elements of the value chain and continuing to elevate the entire network’s capability.  Route-to-market changes in recent years have included awarding territory to independently owned third-party distributors in some markets and launching RBDC in others,” referring to company-owned Red Bull distribution cos.   

It’s modest deal in co’s own backyard, but it’s what Jones Soda envisions the future to hold: Seattle-based altsoda brand has ousted Coca-Cola for pouring rights at 16-unit Zeeks Pizza chain in western Wash State. Deal for unspecified duration includes several natural entries from JSDA: Jones Cane Sugar on fountain and in 12-oz cans, as well as co’s Lemoncocco Italian-style canned refresher. Deal represents measured progress toward goal many of boutique soda brands have been pursuing: finding home for their indie brands in eatery accounts that put a premium on natural ingredients and artisanal recipes on food side but have yet to make big commitment to echoing that stance on bev side. In case of 26-year-old Zeeks, founders Tom Vial and Doug McClure have carved out rep for using high-quality local ingredients in atmosphere redolent out of outdoorsy regional culture, as Jones noted. Chain tilted entirely toward craft beers some years back and now it’s echoing move on soda side. “About 7 years ago, our team began the replacement of mainstream beers with craft beers, ultimately transforming our entire beer offering to one of only high-quality local beers which has been extremely successful and well received by our guests,” Black said. “Replacing our current portfolio of Coke beverages with Jones’ craft products that contain high-quality ingredients is a significant upgrade for our dedicated consumers and a continuation of this path to better quality, authentic, independent and local brands.” So it joins ranks of other modest-size regional chains like Great State Burgers, Sizzle Pie Pizza and Katsu Burger that have adopted Jones as go-to brand, tho so far the major chains continue to elude it and rivals like Reed’s beyond modest tests.

Youthful entrepreneur in Chicago named Ryan Crane is at center of pair of early-stage brands offering lightly caffeinated unsweetened sparkling tea under Tempo brand name and CBD-infused wellness shots under Tukan brand name. Crane is among 4 partners operating Tempo, he told us, and is among separate group operating Tukan – “I’m the connecting thread,” he said. Tempo, launched in 2017 with Chicago-based Crane, who comes out of securities biz, and DC-based biologist Austin Gallagher in hands-on roles, is intended as platform for “better functional beverages to help people perform better during the day” without synthetic additives and artificial ingredients, Crane explained last week. “Health and wellness without the pills,” he said. Idea is to address what he views as common pain point: to optimize energy during after-lunch slump, when not seeking a high-octane energy drink or coffee. Idea is “light, focused energy” at 45 mg via what he likes to call “microdosing” approach. Tempo, packed in 12-oz slim cans, is unsweetened, so as not weigh one down, and goes out in Matcha Raspberry + Lime, Black Blood Orange + Ginseng, Rooibos Hibiscus + Strawberry flavors. It’s in limited distribution so far, in local Whole Foods stores at $2.39, as well as Eataly and upscale coffee shops, Ryan told us. Tho building Midwest base, brand ships nationally, including to East Coast, with one-offs mainly via direct relationship. “We’re getting great feedback. I think we’ve hit a vein with something missing in the market,” he said. Owners so far have been self-funding effort so far, but “we’re always actively looking for the right partners to grow.” Effort bears resemblances to other brands we’ve been following such as NY-based Sound Tea and Minna Tea and San Diego-based New Wave caffeinated soda. Info at TempoBev.com. As for Tukan (named for the colorful bird), that’s at earlier stage, with partners proceeding gingerly as complicated CBD dynamics get worked out on legal and regulatory front and wary retailers can be enticed into space. Tukan CBD-infused wellness shots contain 25 mg of nano-amplified CBD and other terpenes per 2.5-oz bottle, in pair of functions: Focus (Green Tea Ginger Ashwaganda) and Recover (caffeine-free Rooibos Blueberry Turmeric). “Real ingredients. No junk. Ever,” brand assures. To date Tukan has landed some local natural grocers but major chains still “are feeling it out” and partners are refining their expansion strategy, Crane allowed. He emphasized that, with several members of team having come from food background, “our goal is to be a responsible player” that stands apart from the many entries that don’t stand up to quality standards. The plan is “not just to sprinkle CBD on cookies” but to offer more rigorously developed items that can exploit therapeutic benefits of core ingredient. Info at GoTukan.com.