Beer Marketer's Insights
Vita Coco reported modest topline growth of 6% for its final quarter of 2022, but that belied continued strong performance on core branded coconut water, up 18% for full year, and encouraging early signs on raft of innovations from canned juice line to Vita Coco Spiked with Capt Morgan.
Proud Source Water, one of earlier players in aluminum-bottled waters, has been acquired by Source Global, Scottsdale, Ariz-based marketer of Hydropanel that generates drinkable water from atmosphere. Source plans to use Proud Source as anchor for newly created bottled water div, "initially" offering brand in versions containing either its spring water or water captured using the Hydropanel tech. But the intent is clearly to move away from water pulled from ground, in Proud Source's case, springs located in Rocky Mountains in Idaho and Apalachicola Forest in Florida. "Our Hydropanels allow us to establish a source of clean, sustainable water almost anywhere on the planet, without the need to extract from existing freshwater resources," per Source Global founder/ceo Dr Cody Friesen. "The technology is powered entirely by the sun and the water is produced from vapor in the air, making it a truly renewable approach. Coupling that capability with the acquisition of Proud Source results in a bottled water offering that is good for people and the planet." New owner plans to install Hydropanels at Proud Source's bottling facilities located by the springs in Idaho and Fla for availability at retail and foodservice nationally by early 2024. So this is more tech-oriented play on concept that Richard's Rainwater has been exploiting via captured rainwater that's canned at local craft brewer partners.
Owen's Craft Mixers has landed role as preferred mixer partner for massive Live Nation entertainment operator, which participated in new $10 mil Series C capital round. The Live Nation tie will bring NY-based brand into 100+ Live Nation amphitheaters, clubs and theaters, along with handful of festivals, that are estimated to reach 25 mil fans across the US, per announcement today. That's not full range of Live Nation venues, of course, but we presume some are locked in by contracts with other brands. Also participating in new round was NBA star Jimmy Butler.
STRATEGY: A Decade Old Now, LA's Alfred Coffee Accelerates Store Openings, Experiments in CPG
As it celebrates tenth anniversary, LA-based Alfred Coffee has been stepping up pace of store openings - adding 5 stores last year and planning another this year, even as it dips its toe into CPG world, not with RTDs but rather ancillary items like vanilla syrup and powdered matcha/mushroom blend.
The relentless promo machine at Liquid Death has declared that iced tea is a sleepy segment ripe for disruption. With launch of their canned teas, it seems they may have been right, at least on Amazon: just 24 hrs in, ceo Mike Cesario posted, brand's Armless Palmer black-tea entry already is #1 tea (whether RTD or dry) on platform and #2 bev overall, behind Celsius energy drink. And brand's Convicted Melon sparkling water flavor remains #2 water brand behind Sparkling Ice Black Raspberry. "Our global thirst massacre is just getting started," Cesario declared. The teas, recall, rep brand's first move beyond canned water, and bring chance of improved margin over core spring water that's shipped in from Austrian Alps.
NEW PRODUCTS: Snoop Dogg in Coffee Space Now via INDOxyz in Cold-Brew, Whole-Bean Formats
Snoop Dogg's many tentacles as an entrepreneur now reach into coffee segment. After chance meeting, he's teamed with Indonesian entrepreneur Michael Riady to offer whole-bean and cold-brew entry called INDOxyz that's headed in coming months into Calif and Nev retailers like Erewhon, Vons/Pavilions, Safeway/Albertsons and Sprouts as well as BevMo/GoPuff and Amazon. National rollout will follow. The brand employs green beans grown in Sumatra, Java, Bali and Sulawesi for roasting in LA for canned cold-brew that will go out at $5.99 and whole-bean coffee at $17.99 per 12-oz bag. Graphic treatment using black Gothic-like font on bright yellow background seems sure to jump out at shoppers from sea of earth-toned rivals.
Blackout Coffee, which is mimicking path of Black Rifle Coffee with DTC focus on military vets and first responders rather than coastal coffee snobs, has embarked on crowdfunding campaign on StartEngine platform that so far has yielded $850K of $1.2 mil target at $17.9 mil valuation. The Labelle, Fla-based co discloses that it sold $2.4 mil worth of product last year, 98% of that online. In its 4 years in business, co says it's created 40+ roasts and flavors that have gone out to 45,000 customers and surpassing 100,000 fulfilled orders. Among other deets disclosed in raise, it roasts all its coffee in-house, boasts 40% customer retention rate and 4,000 active subscribers. In its offering statement, Blackout cites as models Black Rifle, whose naming style it seems to echo with roasts like Brewtal Awakening, Morning Reaper and Covert Op Cold Brew, as well as high-caffeine player Death Wish and Bones Coffee, "which appeals to the artsy/tattoo-minded crowd." "Coffee for America's warriors," is how Blackout positions itself. Blackout was founded by John Dos Santos, who serves as ceo, and Rachel Alyce Santos, serving as prexy.
Those with long memories in bevs will recall that Clearly Canadian enjoyed its first burst of popularity in late 1980s and early 90s by dint of a clear liquid that many users, research showed, assumed to be calorie-free. The highly sugared bev was anything but, and growing awareness of that attribute may have contributed to eventual subsidence of brand. At Expo West this week, new team at helm of revived brand will be addressing this shortcoming with first major innovations since they reintro'd brand into mass availability back in 2017: unsweetened Clearly Canadian Essence line that's debuting immediately and sweetened but zero-calorie Clearly Canadian Zero Sugar line that's due by summer. The extensions are calculated to bring into Clearly franchise new users who may have balked at sugar content of core line, as ceo Paul Tepperman noted. "By offering these two new product lines, we are excited to be welcoming new fans into our community," per statement from Paul, former Cadbury and Mondelez exec who's orchestrated brand's revival from base in Toronto.
As the big bevcos grope toward effective ways to participate in booming premium-mixer segment, Coca-Cola seems ready to turn to a trademark that's already got a strong track record in serving mixer occasions: its acquired Topo Chico sparkling mineral water brand from Mexico. The co is readying a trio of overtly mixer-oriented entries for Apr 24 that are packed in glass bottles in single-drink size of 6.9-oz in trio of styles to start, booth staffers at Coffee Fest confirmed. They will debut in tonic water, ginger beer and seltzer entries, we believe. It could be potent play, given core mineral water's heavy use in mixing occasions in key markets like Texas, offering an authentic-seeming alternative to mainstays like Fever-Tree. Smaller can and bottle sizes in 6-7-oz range, of course, have become increasingly popular as way for bartenders to avoid the waste that comes with larger bottle sizes when used for single drinks. Big bevcos have been groping toward a path into booming mixer/mocktail segment, with internally developed entries like PepsiCo's Neon Zebra seemingly going by the boards.
Stay up to date on the latest trends and forces shaping the fast-changing US beer biz at the 2023 Beer Insights Spring Conference, coming to Chicago this May. Recently added to our stellar program: a deep dive into key drivers of distrib M&A with OMAC Bev Advisors and a panel of industry attys exploring the consequences of convergence and increasing govt activity. Connect with key industry leaders at this exclusive event. Register today!

