Beer Marketer's Insights
Jones Soda continues to score steady distribution gains, including a national rollout in Kroger grocery chain of its newly launched glass-bottle Jones Ginger Beer and the entry into Walmart of a new 4-pack format for core line. Speaking recently to investors who’re anxious to see Seattle-based JSDA start growing again, ceo Jennifer Cue reported over 1K new retail doors at chains including regional divs of QuikTrip and Circle K c-stores and Safeway-Albertsons groceries. In coming weeks, co will be adding 4-packs of 3 flavors that Walmart will be placing in newly established craft soda sets at 1,100 locations. Cue credited much of progress to longtime sales vet Steve Gress, who was added to team in late 2017.
Gains on fountain side continue to be elusive, years into effort by co to crack major chains. And 7-Eleven remains key partner despite decline in Q4 sales that was partly result of tough comparison vs year-earlier inventory load-in, with several launches due in coming months, presumably co-branded items under c-store retailer’s 7-Select brand. Overall, “we continue to make progress with transitioning from smaller independent accounts to generating interest from larger regional and national accounts,” Cue said.
One area where JSDA will take it slow is on CBD bevs, opportunity that co brass has said it’s evaluating. On investor call, Cue counseled caution. “We are aware of the potential of this segment, but with the current uncertainty in laws and regulations regarding this area, we believe that there is presently no clear path to material revenues in the short term,” she warned. “We believe that the current environment is one of high risk and low reward. We continue to evaluate product profiles, branding and other attributes while keeping an open mind going forward.” Recall that a coupla years back Jones entered another growth pocket with test of hard soda called Spiked Jones within distribution footprint of Columbia in Pac NW, only to find it was competing in cluttered, declining segment whose focus was tilting toward spiked seltzers. The entry was discontinued.
Coca-Cola aligned Core Power brand has commenced its Final Four hoops activation with 15-second TV spot that upends convention by showing unidentified college player whose jersey front says simply “State” not as he prepares to enter the game but after he leaves it, as way of heralding recovery properties of milk-based protein line. “Because winning the next game starts at the end of this one,” voiceover informs. Dubbed “Tunnel to Victory,” ad from agency Doner will air multiple times on TBS and CBS during playoffs and Final Four itself, MediaPost reported. Brand owned by Fairlife is official protein drink of March Madness. Ad can be viewed here.
Fevertree Drinks Plc reported 34% jump in annual adjusted core earnings last year, thanks to booming biz in core UK market for its Fever-Tree mixers as hot summer and events like World Cup and Royal Wedding coalesced to stimulate lotsa celebratory drinking. All told, 2018 revenue jumped 40% to $313.5 mil in US dollars and adjusted earnings surged 34% to $103.8 mil. And tho shares wavered today over co’s anticipation that revenues in 2019 will be in line with expectations – by now, shareholders expect co to routinely break thru its estimates – it’s laying groundwork for accelerated growth in US by taking direct control of operation here last summer and launching items keyed to special demands of this market.
Last Jun, recall, Fevertree shifted control of its sales from longtime agent Brands of Britain to wholly owned subsidiary in Brooklyn called Fever-Tree USA that’s run by former Belvedere Vodka ceo Charles Gibb, and it added to board several execs with deep experience in US bev market: Jeff Popkin, a former Red Bull and Vita Coco exec who now runs Mast-Jagermeister and had served on Brands of Britain board, as well as Kevin Havelock, a vet of Unilever and Pepsi/Lipton tea alliance, and 20-year SAB Miller vet Domenic De Lorenzo.
That more targeted operation is taking steps to better align with US consumption trends centered around dark spirits rather than the gin that is an obvious accompaniment to Fever-Tree’s wide range of tonics. So far, key effort has been launch of Ginger Ale that seeks to holds its own aside dark spirits via blend of 3 different gingers: earthy variety from Cochin in India, green variety from Ivory Coast with bracing lemongrass taste and Nigerian variety with more intense flavor. Among other innovations brought to mix have been lower-cal Refreshingly Light entries and Cucumber Tonic and Citrus Tonic extensions to core line. A pink-hued Aromatic Tonic Water using South American angostura bark, cardamom and pimento berry aims to be good fit for Pink Gin & Tonic cocktail or just drunk neat as a mocktail.
Dallas-based Holy Kombucha is moving beyond Texas and West Coast into East Coast, where it’s entered Shop Rite and Giant chains, with Midwest next regional target next month. At Expo it was showing unusual kombucha/yerba mate blend at $2.99 per 8-oz pkg and $3.49-3.99 per 16-oz . . . Obrigado brand has brought aboard SF-based agency Voicebox to handle repositioning of from Brazilian coconut water to broader positioning as integrated mfr that employs every part of the plant, said Bill Sipper of Cascadia Managing Brands, which is helping with buildout.
At least coupla NA brands were at show looking to build biz on consumers’ seemingly insatiable appetite for hops. Anaheim, Calif-based H2ops Sparkling Hop Water, perhaps the first in the game, was showing proprietary blends of its unsweetened hop teas using Pac NW hops from Yakima Chief co-op, including new Grapefruit flavor that tries to ride in wake of popular grapefruit IPAs like Ballast Point’s Sculpin entry. In past year brand has entered Whole Foods, said founder/brewer Paul Tecker . . . Meanwhile, newcomer HopTea, Boulder, Colo-based co which won BevNet Showdown a few months ago (BBI, Dec 11), was keeping it very deliberate on expansion, with cofounder Dean Eberhardt saying brand has expanded from handful of stores at time of competition to full array of 45 Whole Foods stores in Rocky Mountain region. As with rival Hop Water, he’s focused mainly on offering unsweetened teas such as The Green Tea One (organic green tea, mosaic hops, 60 mg of caffeine), The Calm One (organic chamomile, citra hops, caffeine-free) and The Really Hoppy One (organic black tea, simcoe and citra hops, 70 mg caffeine), tho he’s also offering a slightly sweetened flavor, The Lemony One, that resembles The Really Hoppy One but adds organic lemon juice and organic cane sugar, at 30 calories per 16-oz can.
LA-based Sprig, one of the more aggressively expanding CBD bev players, said it’s added 8 more states to its current footprint of 9 states for its CBD-infused canned sodas, putting it into 4K+ retail accts. The 4-year-old, shelf-stable brand, which has been pursuing a DSD strategy (BBI, Dec 3), said it’s moving mainly into indie Anheuser-Busch and Pepsi distributors in a footprint that now includes the 3 West Coast states, Nev, Ill, Mich, Wis, Tex, Ky, Fla, Conn, NJ, NY, Penn, Vt, Maine and RI. Among those picking up brand lately have been Bud house Fabiano Bros in parts of Mich and Wis. Marketing vp Lisi Willner said brand’s relative longevity has enabled it to finetune supply chain and distribution at time newer rivals are just getting started, rendering brand more appealing to retailers. As reported, the brand is offered in 4 flavors, Citrus Original and 3 zero-sugar items, with 20 mg of hemp-derived CBD, as well as a THC-based line sold in Calif dispensaries . . . Peloton Cascara Tea has been accepted into the 58 stores of Whole Foods’ Mid-Atlantic region. The brand is based in Philadelphia.
Italy’s venerable Lavazza brand has joined the stampede into cold-brewed coffee, launching a foodservice-targeted blend called Tierra Colombia that will be offered in standard and nitrogenated formats. The new blend is claimed to be one of first cold-brews certified by Rainforest Alliance, using coffee from Colombian Meta region where Lavazza has focused efforts to create sustainable working conditions for growing families. The Turin-based co, now 124 years old, is offering tabletop and freestanding equipment to support the launch, while also making the Tierra Colombia blend available in regular whole bean and ground versions for its foodservice customers. The aromatic, citrusy flavor is meant to be enjoyed even without cream or sugar.
Assertively branded LA-based hydration co called Mode LLC has branched out from lines of powdered mixes and nutrition bars to cold-pressed bevs and shots, as it aims to ultimately fill full range of needs for those who want to “kick butt naturally” with unusually clean products, per brand slogan. It was among range of new hydration players seeking to exploit consumers’ growing wariness of high-sugar, artificially formulated major brands. (We just profiled similarly stylishly branded entry called Halo from founder of Bulldog Gin on Fri.)
Among the new cold-pressed items, Mode Endurance Power Booster, targeting pre-workout occasions, is offered in 8-oz bottles containing range of juices along with curcumin, ginseng and astragalus, in Beer + Berry flavored priced at $7.49. During workout there’s 2-oz Re-Energizer Shot in Mango + Ginger flavor with similar ingredient mix plus black pepper, at $4.49. For post-workout there’s Recovery Booster, also in 8-oz bottle, in Cucumber + Lime flavor with curcumin, L-theanine, gineng and Rosa Rosburghi.
Mode is brainchild of German-born creative dir named Tammo Walter who’d worked on brands like Nike, American Eagle Outfitters and Miller Lite and is avid cyclist whose coach had encouraged him to move away from synthetic supplements, and coo Nikki Halbur, cofounder of Adult Chocolate Milk alc bev brand who handles ops and supply chain responsibilities. Sales are managed by Coca-Cola and Seagram vet Tobin Boschetti, focusing on natural and conventional grocery, and former bike racer JJ Tobin, working endemic channels like sports retailers. Advisory board includes likes of former NFLer Donovan McNabb, former Olympic water polo player Julie Swail Ertel and former Coke and Hasegawa exec Mark Bair. The brand was one and a half years in incubation before recently coming to market.
Encountered at recent Natural Products Expo West in Anaheim, Calif, Walter proved to be ready with zippy slogan to answer any question, along lines of, “We’re an athletics company that happens to do nutrition.” (Indeed, many staffers profiled on MyFitMode.com website are former athletes at collegiate level or higher.) But he made it clear that he views core mandate as offering meaningful and balanced amounts of clean hydration ingredients in flavors targeting adult palates.
Core product range includes Electrolyte Hydration Mixes in stick packs and pouches in 4 clear, adult-focused flavors, Lemonade, Green Apple, Pineapple and Raspberry, using natural betaine from beets and offering mineral blend that mirrors that which athletes sweat out. Also in mix is bar line called Raw Energy Blocks, containing just 8 ingredients, including dates, ginseng and Rosa Roxburghi vs 24 or so ingredients in established brands like Clif Bar, Walter pointed out. They’re available in Blueberry + Coconut, Chocolate + Walnut and Mango + Almond flavors. And plant-based Protein Powders derive their protein not from single ingredient like whey but 5 sources – pea, rice, flax, chia and pumpkin – for better amino acid profile. They’re out in pouches and sticks in Vanilla and Matcha flavors.
Bair and Sugarman Team Up on Sugar Bair Consulting Co Don’t hold the pun against them, but Coke and Hasegawa vet Bair and former Evolution Fresh and Moon Juice ceo Shawn Sugarman have teamed up in consulting group called Sugar Bair that aims to help early-stage bev brands scale up, Mark told us at Mode booth.
DeCrescente Distributing is latest established DSD house to pick up fast-growing Bang Energy, within service area in Albany, NY, area that comprises 11 counties and 1.2 mil consumers. Website of house based in Mechanicville, NY, also lists KDP’s Venom and Xyience brands in energy portfolio. DeCrescente gm Russ Teplitzky cited Bang’s success in having “redefined the energy drink category with this well-researched and effective energy drink.”
It’s not just in energy drinks that arms race is erupting with higher caffeine levels. Same dynamic seems to be emerging in cold-brew space. Case in point: St Louis-based Madrinas Coffee, which brought to Expo West a 2X Cold Brew entry that doubles the caffeine payload of 15-oz canned line to 200 mg. The shelf-stable entry is line-priced with core entries at $2.99, promoted at 2 for $5, initially in Dark Roast, with 200 mg of caffeine, and Vanilla Cappuccino, with 160 mg. Packaging retains colorful, edgy graphics of brand positioned as bringing “positive vibes” to the world. Gauge at bottom of can front indicates where entry stands along spectrum from “sweet” to “bold.” Core line’s lineup of flavors – Cold Brew Black, Cold Brew + Milk, Café Mocha, Café Vanilla and Café Caramel – ranges from 100-125 mg of caffeine. All of these, of course, are a far cry from the emerging class of performance energy drinks bringing 300 mg or more of caffeine. Madrinas is 6-year-old brand that spent first 4 years focused on heartland region, then hit the coasts 2 years ago, using fair trade beans sourced from high altitudes in Colombia and Mexico. By now it’s in 700 Walmart stores and is open to right DSD distribution partners. It seems to enjoy doing one-offs too, like Shroud’s Insane Cappuccino, superhero-themed flavor that website currently lists as being sold out. It also sells 12-oz bags of whole-bean “micro roasts.” Info at MadrinasCoffee.com.