Beer Marketer's Insights

Beer Marketer's Insights

While global conglomerate Anheuser-Busch InBev got big Wall St Jnl article for pre-ordering 40 of upcoming Tesla electric trucks, turns out it's not only bev player in game: first, largest beer distrib (and one of larger Coke bottlers) Reyes Beverage Group disclosed that it ordered 30 of the trucks, then PepsiCo weighed in with whopping 100. Also placing a big order - 50 trucks - was foodservice giant Sysco. Including orders from Walmart, fleet operator JB Hunt and others, Reuters tallies total orders at 267 to date. The trucks called Semi go for $150-180K apiece.

This doesn't qualify as bev news, but it may be relevant to internal discussions folks are having on liquid side too: artisanal producer High Road Luxury Ice Cream has gone public with reasons for making a break with Facebook, inveighing against platform that's become "less about sharing and connecting" and instead is fraught with "anger" and is "divisive." "Frankly, it sucks now (save for the cute pictures of the grandkids)," Atlanta-based co posted in "Dear Friends" letter on its Facebook page. "Trying to unravel the logic of an advertising algorithm isn't something we want to do or like to do, and frankly, we find it harder than ever to 'connect' with people on Facebook," letter goes on. "It's the new 'traditional' advertising model - a money pit - where large companies are 'in' and are now spending and spending and spending. It doesn't make sense for us to try to go toe to toe with giant corporations (in that way)." Yowza. So co instead will improve its ice-cream-making abilities, "Show up. Share our products. Listen to people," and "Prioritize face to face human interaction." It also will launch podcast starting next month. "Team High Road," as letter is signed, isn't abandoning social media by any means: it remains committed to Instagram and Twitter, is learning Snap and will soon update website.

Looking to add rigor to HPP segment that's lookin' a bit like wild west in recent years - and that took perception hit when coconut water brand Harmless Harvest dropped process under scrutiny from FDA - recently formed Cold Pressure Council that includes some big corporate players like Starbucks and Coca-Cola-allied Suja as founding members has devised a seal attesting that brand is complying with safe practices.

Anheuser-Busch's point man on Teavana iced tea launch attested to giant brewer's outsize ambitions in NAs these days, saying current stable plus future acquisitions will leave portfolio larger than it was when Monster Energy was still in fold. Speaking to Beverage Digest's Future Smarts conference in NY on Fri, Teavana gm Randy Ornstein made case that "A-B is taking the learning from the slow rollout of Teavana in 2017 and looking to get significantly larger in non-alcoholic beverages," per summary of remarks disseminated by Consumer Edge's Brett Cooper. (BBI didn't attend shindig.) "Their claim is that Teavana + Hi-Ball + what comes next will be bigger than what was lost when Monster switched distribution to Coke," wrote Brett. Indeed, "part of the reason for the push into non-alcs is the need to fill distributor trucks," as Brett cited Randy. A-B is "asking distribs in certain markets to take a long term view and a willingness to lose money in delivering to non-alc outlets where initially that drop will lose money."

Pair of key decision-makers at Kroger offered broad view of multi-banner national grocer that's steadily dialing up the space devoted to bevs and the share given to innovative brands, at last week's BevNet Live conference in Santa Monica, Calif. Jill McIntosh, Kroger's vp merchandising, and Andrea Tyson, grocery merchandising coordinator for CSDs, indicated that new store openings and remodels are serving as opportunity to dramatically expand bev space "because our customer is asking for it," as Jill said. Program dubbed Beverage World not only aims to make bev selection more intriguing to shoppers but to make it easier for emerging brands to get a foothold and build momentum. Cincinnati-based Kroger, of course, operates across 35 US states not just under Kroger name but under Fry's, Smith's, Food 4 Less, Ralphs, King Soopers, Harris Teeter, Fred Meyer, UFC and other banners.

CSD volume sagged 3.2% last 4 wks thru Dec 2 in Nielsen all-channel data reported by Wells Fargo Securities' Bonnie Herzog. That's a small improvement from -3.5% decline over 12 wks. So there wasn't much of a Thanksgiving boost for CSDs. Pricing stayed steady, tho: up 1.5% last 4 and 12 wks. Regular CSDs were down 2.8% vs 4.4% drop for diet brands. Coca-Cola CSD volume slid further, off 2.1% (vs 1.5% for 12 wks) as avg price edged up to +2.3% for 4 wks. Brand Coke was down 3.4%, Diet Coke double that at -6.8% while restaged Coke Zero up 11.5% last 4 wks. PepsiCo CSD volume decline eased a bit but co still down 5.2% (vs -6% for 12 wks) as avg prices rose to +0.9% last 4 wks. Brand Pepsi slowed decline a bit to -4.4% while Diet Pepsi down steep 8.7% for 4 wks. Mountain Dew (-5.5%) and Diet Mtn Dew (-3.5%) each lost volume for 4 wks as well but Code Red version shot up 53.7%. Dr Pepper Snapple CSD cut its volume decline in half to -1.2% last 4 wks as avg price increase eased a bit to +1.7%. Dr Pepper down 1.7%, A&W -0.8% while Canada Dry up solid 6.1% last 4 wks. Private-label brands were down 5.4% despite steeper avg price cut of -2.8% last 4 wks.

He isn't a doctor, but he proved adept mgr of so-called "hospital ward" of often bruised and shell-shocked Coca-Cola bottlers undergoing biz turmoil, helping nurse them to recovery and release them to private ownership again. That was job description of 36-year Coke vet Irial Finan in his role as evp/prexy of Bottling Investments Group (BIG), with footprint that spanned multiple continents. Also in mix was KO's concerted and now about-completed initiative to refranchise the US bottling system it operated as Coca-Cola Refreshments. But today Irial announced his retirement, dropping BIG role at year-end, tho he'll remain as executive advisor until his last day next Mar 31. He's being replaced in role by one of his subordinates, the Romanian-born Calin Dragan, who's currently regional dir for BIG's ASEAN (Southeast Asia) and Middle East bottlers. Tho Finan reported directly to ceo James Quincey, Dragan will remain Singapore-based and report into John Murphy, prexy of KO's Asia Pacific Group, reflecting concentration of in-patients in that region. Also a focus will be ongoing work of refranchising BIG's Coca-Cola Beverages Africa holding.

It may be national giant, but 7-Eleven c-store chain is taking big steps to open doors to new, innovative brands, using roadmap that its merchandising chief, Jesus Delgado-Jenkins, presented to BevNet Live audience heavily seeded with entrepreneurs. In presentation at Loews Hotel in Santa Monica, Calif, earlier this week, he assured listeners that co is responding to sweeping changes like digital search, regionalization and growing experimental bent of its shoppers. "We're responding to those changes," he declared. "We're going to get very aggressive in 2018 and 2019." Delgado-Jenkins, who's served as 7-E's evp and chief merchandising officer since 2010, said many of these changes have built up a head of steam since he last held podium at BevNet just 2 years ago.

Husband-and-wife team of Donna and Dan Ratner, who entered bev biz with greens-infused line called Cell-nique and grew that into broader-based natural food/bev rollup under rubric Healthy Brands Collective, have rebranded as Hudson River Foods and relocated to 100K-sq-ft plant in Castleton, NY, in Hudson River Valley around 3 hours north of NYC. And it's made key addition to exec team with recruitment of Presence Marketing vet Nike VanArsdale as natl sales dir. Recall that, on bev side, portfolio by now has expanded to include High Country Kombucha and Tempt Hemp hemp milk, along with what now goes out as Cell-nique Super Green.

In "unusual step," a Marion County, Ind, superior court judge "temporarily banned" Starbucks from closing 77 of its Teavana stores at malls controlled by Simon Property Group, per NY Post. SBUX announced back in Aug that it was shuttering all 379 Teavana stores after mall-based chain continued to underperform co expectations, but this ruling looks to slow cost-saving move. In ruling, Judge Heather Welch "found that the very profitable Starbucks could absorb the financial hit - estimated by Starbucks to be $15 million over five months - better than Simon could," noted Post. Report notes that Simon didn't even submit estimate of what store closing would cost it. In ruling, Judge Welch acknowledges that, to her knowledge, "no court has ever entered preliminary or permanent injunctive relief to specifically enforce a continuous operations covenant against a non-anchor tenant." Demise of brick-&-mortar retail stores "have left landlords scrambling to find new tenants," meaning case will be closely watched by building owners looking to slow lease terminations, noted Post. "We are disappointed in the judge's ruling and will continue to focus on finding a resolution," said SBUX statement. This court ruling could likely spur other mall owners into trying same tactic, so Teavana stores may not fade away as quickly as planned.