Beer Marketer's Insights
Coming on heels of Nestle acquisition of Blue Bottle Coffee, Chameleon Cold-Brew's deal with same strategic player drew lotsa attention as implicit statement of intent that big bevcos intend to be instrumental players in burgeoning segment. At BevNet Live on Tues, Chameleon cofounder, prexy and ceo Chris Campbell offered raft of insights into how process unfolded, newly humble view of strategics into care and feeding of acquired innovators, and virtues of being cold-brew player that operated in capital-efficient way.
Most participants in BevNet Live's Showdown competition are newbies to food/bev, but winners at this week's installment with high-performance meal shake called Bear Squeeze are pair of old hands by now: Max Baumann, now on his 3d biz after launching Just Chill relaxation bevs and Basemakers merchandising co, and BJ McCaslin, who'd created Coco Café espresso-infused coconut water that was sold in early stage to Vita Coco. Devised with help from Boston culinary development co called Chew Innovation, Bear Squeeze contains pumpkin seed protein, coconut oil and healthy dose of probiotics, but under 5 net carbs. Brand might be viewed as combo of Bulletproof Coffee and Soylent meal replacement drinks, using proprietary "fat cancellation technology" to make claim of punching ketogenic, paleo and vegan buttons. Partners will start with e-commerce push and Kickstarter push on Jan 9, with aim of pulling in $400K. The $10K in cash and benefits they won at BevNet will go toward getting word out on that initiative. Right now, partners aren't planning RTD version until year 3.
Former PepsiCo exec Dave Burwick offered blunt exposition of challenges of overseeing array of distinctively positioned coffee brands at Peet's Coffee & Tea, saying large cos like PEP tend to weaken brands they acquire because they can't leave anything alone. A longtime PepsiCo exec who left 8 years ago and ran Weight Watchers for a few years before landing as prexy/ceo at Peet's in early 2013, Dave was participating in BevNet Live agenda that was heavy on coffee, as exemplar of roiling currents in NA bevs these days. Also on agenda were such coffee execs as Chameleon ceo Chris Campbell, La Colombe's Todd Carmichael and Califia Farms founder/ceo Greg Steltenpohl.
Peet's Coffee & Tea has expanded its ColdCraft refrigerated DSD system to the Pacific Northwest and Las Vegas, as it prepares to add new brand to portfolio: RTD entries that are forthcoming from Chicago's Intelligentsia Coffee, which Peet's controls. In conversation at BevNet Live event in Santa Monica, Calif, on Mon, Peet's ceo Dave Burwick and Coldcraft vp/gm Tiffin Groff said co had added new territory at end of Oct, transitioning from broadliners like KeHe and DPI. "It's Coldcraft now, no more third-party," Dave said. Also added to network are coupla routes in Las Vegas as extension of Southern Calif footprint. Moves come as Coldcraft prepares to accept cold-brewed entries due imminently from Intelligentsia, which will join portfolio that includes Peet's own bottled lines as well as Stumptown's and the recently added Revive Kombucha. Peet's owns Stumptown and recently made minority investment in Petaluma, Calif-based Revive (BBI, Aug 24). Is Coldcraft looking to plug in additional outside brands in non-overlapping segments? Not for now, Burwick and Groff said.
Columbia Distributors, one of largest, most diversified DSD houses in country, offered absorbing take on working with suppliers, maintaining stable of NA bevs and the Amazon juggernaut on panel at Beer Marketer's Insights seminar in NY a few weeks back. Along with sprawling Pac NW house, BMI panel also featured key execs from major NY distrib, Manhattan Beer, and multi-site Bud player Hand Family Cos, with operations in Chicago, Kentucky and Tenn. Both Columbia and Hand maintain significant presence in NAs - Hand may be only DSD partner in country for surging La Croix sparkling essence water - while Manhattan Beer these days limits its participation mainly to high-end bottled water brands that enhance its service levels at on-premise accounts. Tho Manhattan coo Ed McBrien offered interesting thoughts on beer side, our account here keeps to Columbia and Hand.
Groundwork Coffee, longtime coffee-roasting icon in Southern Calif, is avidly entering RTD segment. It's offering Classic Cold Brew and single-origin Colombia-AMUCC Cold Brew in 12-oz brown-glass bottles with old-fashioned cap-pulls, as well as Nitro Cold Brew in 12-oz cans. Also in mix is Cold Brew Concentrate in screw-top growler bottle.
Filling in further details of turnaround strategy, Reed's Inc said it's signed multi-year contracts with Owen-Illinois as exclusive glass supplier and RC Moore as primary logistics partner for N America. And as new mgmt team embarks on evaluation as to whether co should drop self-production out of LA location in favor of "asset-light" model, REED has retained Boston-based Gordon Bros "to lead the company's process of evaluating and maximizing the value of its operational and non-core assets." "We believe their combined efforts will support driving significant improvements in the company's profitability, cash flows and net margins in 2018 and beyond," said new ceo Val Stalowir, following thru on recent promises to dramatically improve co's financial performance.
Reinvigoration Initiative at Neuro Brands Starts with Collagen-Based Water Called Neuro Protein
Neuro is revving up innovation engine, starting imminently with collagen protein water dubbed Neuro Protein that offers drinkable, low-calorie delivery system for ingredient with broad-ranging benefits from digestion to skin health.
Gruppo Cimbali, major Italian maker of expresso machines, has acquired "controlling financial stake" in innovative Seattle-based Slayer co. Move aims to provide further growth resources for decade-old Slayer, which still hand-assembles its machines in Seattle, while strengthening Cimbali's foothold in demanding specialty market, particularly in Seattle, among other objectives. Plan is for Slayer to continue to operate independently under founder/ceo Jason Prefontaine. Slayer has fair claim to having revolutionized technology via patented flow rate control and flavor profiling process, under rubric "make coffee better" .
PROFILE: Eviva Collagen Elixir Offers Rare Shelf-Stable Take on Aging-Inhibiting Ingredient
LA-based entrepreneur has launched brand called Eviva that is rare shelf-stable RTD line to harness attributes of collagen in helping to arrest effects of aging process. Working with NJ-based MetaBrand, founder Elaine Morrison has created shelf-stable line packed in half-liter PET bottles that employs 5 g of hydrolyzed fish collagen and 2 g of hydrolyzed avian collagen, along with 2,500 mcg of biotin. It's sweetened with monk fruit, containing just 35 calories per bottle, and is available in Cucumber Mint, Lemongrass Ginger and Lavender Lemon flavors. SRP is $3.99. BBI had offered quick glimpses of line this past fall (BBI, Sep 18) and it's officially launched now. Morrison, a financial services refugee who's been a Pilates teacher for 12 years, said she's self-funding effort so far, starting small in Calif backyard, with brand so far edging into accounts like Vicente Foods and Equinox gyms in LA, with target of hitting natural/specialty channel as well as spas, high-end hotels and Crossfit studios. She's retained a broker in Ariz and is seeking similar partner in Calif. Morrison originally was drawn to concept after suffering autoimmune disorder and accompanying skin condition that led her to start messy process of taking collagen in supplement form. She told BBI she's looking to bring in modest amount of new capital as she builds distribution.