Beer Marketer's Insights
New crew that's been running Tetra Pak brand Just Water since May has raised price, cut back DSD to handful of core markets and is ready to reveal revamped label and first flavor extensions in Feb, as it seeks to meld twin messages of sourced water that's packaged in more sustainable way than typical PET bottles. Also on way is 330-ml pack to augment existing 500-ml size.
Word making rounds during NACS c-store expo in Oct had it that Nestle Waters North America, tired of struggle to get its hands around Sweet Leaf Tea organic brand, was shopping it (BBI, Oct 27). We couldn't get comment from NWNA then, but that has proved true, both for Sweet Leaf and for sibling RTD tea line Tradewinds. New owner of both per announcement Fri is Fireman Capital Partners and incubator it's funding called Dunn's River Brands led by longtime NA figure Kevin McClafferty as prexy/ceo. Fireman Capital should be familiar name on PE side to many BBI readers from position it once held in HPP pioneer Evolution Fresh, which exited to Starbucks in 2011. As for Kevin, he's held key roles at Bolthouse Farms, Talking Rain (tho before its Sparkling Ice brand ignited) and Viva Beverages, where he led explosive launch of Marley's Mellow Mood relaxation line that later sputtered and ended up in hands of New Age Beverages. Kevin, who's based in Ariz, is teaming up with key collaborator at Marley, Pittsburgh-based marketing vet Lee Brody (who counts Steaz green tea among prior assignments) as well as Ian Knowles, who comes from PE side. Terms of deal weren't disclosed, but it includes decade-old Tradewinds production plant in Carlisle, Ohio, but no employees from sales or marketing side. DRB execs were heading out to Ohio to meet plant workers later this week.
BEVNET LIVE: Where Incubation Firm Distill Ventures Sees Fertile Zero-Proof Drinks Segment Headed
Over past 4 years, London-based Distill Ventures has sought to develop quirky but fertile niche: sophisticated non-alc bevs that go beyond narrowly defined mocktails in keying in on spirits-drinking occasions. We'd offered brief profile earlier this year (BBI, Jun 22), but at recent BevNet Live conference in Santa Monica, Calif, coo/cofounder Dan Gasper fleshed out co's vision for what it views as one of great untapped opportunities in NA bevs. Niche partakes of many familiar segments like craft soda, kombucha and cold-brewed coffee, but with twist of offering theater in serving and presentation, complex flavors and sippability that won't leave imbiber holding empty glass while social companions are still nursing their fancy cocktails.
Conn-based Trimino Protein Infused Water has added a 3-flavor natural subline sweetened with stevia, with more flavors to come as 2018 advances. New entries in Orchard, Raspberry Limeade and Citrus flavors have been authorized in eastern chains like Big Y, Stop & Shop and Shaw's, as well as at online vendors Amazon and Jet. Like core line, which is sweetened with blend of ace-K and sucralose, the extensions contain 7 g of whey protein isolate, B vitamins, and 9 essential amino acids, in easily drinkable format that offers hydration boost.
Seattle-based Dry Soda has brought in biggest capital raise to date, from unidentified core investor who's been with dozen-year-old Dry Sparkling brand from the beginning. Founder Sharelle Klaus declined to specify amount, except to say it's 50% larger than last year's capital round, but said it frees co to fill 4 key positions plus some entry-level spots as co moves to build out recently launched zero-sugar line and expand so-called Celebrations decorative bottles to summer season as well as fall/winter holidays. Tho co hasn't announced scope of any of its capital rounds, latest would seem to track within broad $6-10 mil range, tho Klaus wouldn't confirm that.
Long Island Iced Tea, which has said it intends to build broader portfolio than eponymous stable of teas and lemonades, has inked 2-year distribution deal with European food/bev player Natur Holdings, picking up role of distributor of Natur's branded items in North and South America. Alliance will start with Natur's nutrient-dense Super Not-From-Concentrate juices, in 250-ml and 750-ml bottles. LTEA ceo Phil Thomas heralded brands that "are supported by 'farm-to-shelf' traceability," from co with access to R&D via its core shareholder, the tech-heavy private-label juice player AMC Innova.
NY PRODUCE SHOW: Suja, Bing Showcase New Kombucha Lines; KonaRed Preps Cans for Cold-Brew
NY Produce Show today served as platform to showcase pair of new kombucha brands, from San Diego juice maker Suja and from cherry juice marketer Bing, along with a raft of flavor and packaging extensions from other juice cos. With its entry into kombucha, Suja is aiming to take superpremium approach, using long fermentation period of 3 months as way to maintain compliance on alcohol content and minimize sugar content; overall drink contains 22% kombucha, adds a different adaptogen to each flavor, Suja's HPPed juice and water. Each 15.2-oz glass bottle is claimed to contain 5 bil probiotic cultures. It's breaking in 3 flavors: Peach Reishi, Ginger Ashwaganda and Berry Schizandra. They're priced at $3.49, in line with leader GT's. At booth, Suja also offered extension of probiotic line into watermelon, claiming to be rare organic drink that's organic and augmented with probiotics . . . Bing Beverage, marketer of cherry-based canned energy drinks based in Lakewood, Colo, launched Bing Z Kombucha, the "z" apparently intended to stand for "zoetic," meaning "of, and relating to, life." New line is packed in 16-oz glass bottles and, like Suja's entry, priced vs leader GT's at $3.49. It comes in with just 60 calories (10 g of sugar) per bottle and debuts in 3 flavors, Cherry (playing on co's 11 years plying cherry bevs), Blackberry and Harvest Apple. It represents co's move into organic bevs. Die-cut label shows image of twisting tree trunk at left that flowers in arch across top of label . . . At KeVita booth, Pepsi-owned brand was sampling its newest kombucha flavors, Root Beer and Blueberry Basil, which both debuted 90 days ago as Whole Foods exclusive and are just now available to other retailers. Non-kombucha-related news from show, which has established itself as largest such expo at dedicated site, Javits Center:
Jack Belsito, who assembled team of primarily former Snapple colleagues that turned around foundering Norwegian premium import Voss Water, has decided to move on at end of this month. Jack this morning confirmed rumors of move, saying after 8-year slog it was time to move on, on heels of sweeping alliance with PepsiCo that should offer big lift in retail presence and entry of brand in China, both undertakings that he said were long in the making. The Mass-born Belsito, 57, who's long been based in NY, said orderly transition has been underway past coupla months that's seen more and more of his responsibilities shifting to Voss of Norway coo Joe Bayern, an ex-Snappler who'll serve as interim ceo. Belsito is leaving just as Pepsi joint venture is set to go live next week, as Voss segues from wine & spirits houses that represented key part of DSD footprint to Pepsi. Jack told us his departure didn't signal any clash of strategic visions, and Bayern's ongoing presence should maintain continuity. Belsito is retaining his equity stake in co and will serve in advisory role after leaving, tho he's in hunt for new challenge, in bevs or beyond. Just a week earlier, marketing chief Ken Gilbert, another former Snapple colleague, elected to exit upon conclusion of 5-year contract, move that seems unrelated to Belsito's departure. On Belsito's watch, brand that once seemed at risk of vanishing regained its footing, at time that US retailers have been increasingly receptive to high-end bottled water brands, bringing in $18 mil in new capital in 2011, then pulling in big investment from Red Bull tycoon operating as Reignwood Group in China 2 years ago. Along way he strengthened ties with wholesalers and retailers, revamped packaging and launched first flavored entries. "If ever there was a good time to think of something else, it's now," Belsito told us. As for Voss, "the foundation is there. I think it's going to be very, very prosperous."
After nearly a century, PepsiCo is abandoning the NY Stock Exchange for a switch to Nasdaq, citing "greater cost-effectiveness and access to Nasdaq's unique portfolio of tools and services to connect with our investors more efficiently," in words of svp investor relations Jamie Caulfield. It will retain trading symbol PEP when it begins trading on Nasdaq on Dec 20. Reuters noted PEP has listed on the Big Board since Dec 18, 1919, when it was called Loft Inc . . . Acquisitive coffee giant JAB is making move on another quarry, OldTown Berhad, major Asian coffee roaster active in 17 markets including Malaysia, Hong Kong, China, the US, Canada, UK, Australia and New Zealand.
Austin-based High Brew Coffee has taken sustainability tilt in adding its first multiserve packs, employing Tetra Pak's plastic bottle-like Evero pack that's made mainly from wood fiber. The new 32-oz bottles will debut with High Brew's Double Espresso and Mexican Vanilla flavors, due in Mar at SRP of $4.49-4.99. Tho High Brew is shelf-stable item, co is aiming to get new packs placed in dairy cases, aside the refrigerated cold-brew brands that dominate segment so far. The new pack has advantages of traditional Tetra Pak carton but upper body and closure mimic that of PET bottles familiar to dairy brands, albeit made from wood fiber sourced from FSC-certified forests. Pushing sustainability theme, label copy heralds direct-trade partnership High Brew recently struck with Delos Andes non-profit co-op in Colombia, numbering 3,500 growers.