Beer Marketer's Insights

Beer Marketer's Insights

Hormel Foods continues to struggle with its acquired Muscle Milk brand. In generally strong Q4 qtr, Austin, Minn-based meat marketer said Specialty Foods unit dominated by Muscle Milk saw organic volume sag 1% and organic sales sag 2% due to protein bev line's soft results after getting hammered in c-store channel. Volume dropped 8% overall; organic volume was off 1%; $$ sales were off 9% and organic sales off 2%. Segment profit plummeted 21%. On conference call last week, Hormel brass didn't offer much in way of explanation for continued issues, tho Muscle Milk booth staffer at recent NACS c-store show attributed it in part to aggressive price promos by Core Power, a milk-based protein line that's aligned with Coca-Cola, which holds a stake and moves brand via KO's red trucks.

At BBI in past year or two, we've enjoyed exploring overlaps between coffee and alc bevs: barrel-aged coffee beans, hopped cold-brews, cold-brew-infused stouts, hard coffees like Bad Larry's, coffee shops that turn into cocktail bars after dark. NY Times delves into alignment of once-disparate worlds in feature headlined "Breweries Find That Coffee Is Their Second Favorite Beverage," painting portrait of operations like Vault Brewing in Yardley, Penn, and its Pretty Bird Coffee Roasters unit and Dark Street Roasting Co and Coffee House in Marshall, Mich, operated by Dark Horse Brewing. Oskar Blues Brewery in Longmont, Colo, opened Hotbox Roasters coffee shop in Denver last Jan, and Chicago-area Two Brothers Artisan Brewing has been operating Social Tap restaurant in suburban Oak Park that serves lattes made with beans roasted by Artisan. "The idea of owning both sides of the clock was always attractive to us," said Vault/Pretty Bird owner James Cain. At Heritage Brewing in Manassas, Va, the brewing starts early in the morning and principals needed a caffeine fix, so launching Veritas Coffee didn't seem like too much of a stretch, said Sean Arroyo, who runs both. Last Apr, co opened Heritage Brewing Company Market Common Brewpub & Roastery in nearby Arlington, Va. Many brewers playing coffee card, from Modern Times in San Diego to Purpose Brewing & Cellars in Fort Collins, Colo, employ their beans in the beer, as with Modern Times' Black House Stout. You can read the article here

It's kind of like an old-school supergroup like Cream or Queens of the Stone Age: principals from Crux Fermentation Project, Stumptown Coffee and LinkedIn have joined together to launch wildly experimental cold-brewed coffee brand named - appropriately enough for their ambitions - Riff. "What if it weren't sacrilegious to drink our coffee decaffeinated, spiced, fruited, or even barrel fermented with wild yeast?" ask partners of Bend, Ore, company, which formally kicked off in Portland last week at Urban Farmer, its first draft account. "Now we're talking. Let's Riff!"

Pair of beer houses that are active in NA-oriented Northeast Independent Distributors Assn are gettin' together. Valley Distributors of Oakland, Maine, is purchasing adjoining Federal Distributors of Lewiston, Maine. Both are Anheuser-Busch houses with portfolio of craft beers and NA brands. Plan is to keep both warehouses open and operate as Valley Beverage.

For Caroline Kibler, Spindrift's new svp marketing, brand was always in her face as she managed Smartwater brand for Coca-Cola's Glaceau unit out of its offices on NY's Madison Ave. Staffers would frequently run out to Dig Inn eatery on block and encounter it there. Her reaction? "Delicious taste, simple ingredients, real differentiation."

SlimFast has jazzed up its weight-loss line with caffeine-inflected Advanced Energy line that's out in powder tubs and 4-packs of bottled Protein Shakes. New 30-second TV ad supporting entry features regular folks dancing and displaying the outsize clothes they've been able to discard. Co based in Palm Beach Gardens, Fla, is pitching line as offering "as much caffeine as a cup of coffee" (it doesn't specify price mg value) along with 20 g of protein, 5 g of fiber and 24 vitamins and minerals per 11-oz bottle, but only 1 g of sugar. That sugar count is tiny fraction of 18 g in SlimFast Original Shakes. Tubs are available initially in Caramel Latte and Mocha Cappuccino flavors, while RTD line adds Vanilla and Rich Chocolate flavors, too. "Advanced Energy" moniker plays on "Advanced Nutrition" of core line.

Another strategic, operating via venture arm, has entered what would seem to be uncharted waters for staid CPG giants: Danone has taken minority stake in Kona Deep, mineral-rich bottled-water brand that's sourced from 3,000 feet below ocean's surface in Hawaii. Investment via its year-old Danone Manifesto Ventures is part of overall $5.5 mil financing round that also includes Grand Crossing Capital and local Hawaiian investors, companies said today. Grand Crossing, whose other investments include Outlaw Energy line created by entrepreneur Lance Collins, had originally brought in Popchips founder Pat Turpin as ceo, to lend professional expertise to brand launched 2 years ago that's been steadily advancing from West Coast bastion (BBI, Jul 22 16).

A soft V8 shelf-stable bev brand contributed to Campbell Soup's disappointing fiscal Q1, but its beleaguered Bolthouse Farms refrigerated line showed signs of finally being on the mend after last year's product recall led to executive housecleaning and scramble for new capacity. Meanwhile, CPB's anticipated $700 mil acquisition of Pacific Foods - which will bring hemp milks and bone broths into fold along with its organic soups - has hit temporary hitch as CPB has backed off until it can get better handle on litigation filed vs Ore-based co by estate of former shareholder, which is seeking $250+ mil in damages. Campbell Soup prexy/ceo Denise Morrison said she's hopeful co will be able to proceed with deal in time to close by end of calendar year.

In update on Statewide DSD house in Southern Calif yesterday we typo'ed name of ceo as Jeff Javizdad rather than correct Javidzad. Sorry for the goof.

With new commercialization and marketing execs in place, Rocky Mountain High Brands is planning to scrap its current line of hemp-based energy drinks, teas and lemonades in favor of new brand early next year, with focus on developing direct-to-consumer biz for items whose health benefits are stressed.