Beer Marketer's Insights
Red Bull Terminates 3 New England Beer Houses, Putting Most of Region in Hands of Its Own RBOCs
Red Bull North America has terminated flock of beer houses in New England, moving to self-distribution model for off-premise biz in territories operated by Farrell in Vermont, Pine State in Maine and Amoskeag in NH, our sibling publication Beverage Business INSIGHTS discovered. But rather than representing any fundamental shift occasioned by changing of the guard occasioned by passing of cofounder Dietrich Mateschitz last fall (BBI, Oct 24), the terminations may reflect relatively familiar differences in operating philosophy that have been a feature over the years of RBNA/distributor relations.
FL Volume Dipped 0.7% to 14.3 Mil Bbls in 2022, State Reports: Up 640K Bbls, 4.5% in 5 Yrs
Third biggest beer market in the country out-performed total US trends again in 2022. Total beer volume in Florida down just 0.7%, state Dept of Revenue reports show, as NBWA chief economist Lester Jones shared with INSIGHTS. Just over 14.3 mil bbls sold in FL last yr, according to state, down about 108K bbls.
Boston-based exemplar of fruit-filled soda, Spindrift, has undertaken apparently successful pivot to becoming unsweetened fruit essence water. How about West Coast equivalent, an even more fruit-heavy bottled soda line called Hotlips from proprietor of Portland, Ore, pizza chain of that name? Turns out that Hotlips has also undertaken sweeping revamp, tho not to extent of exiting soda category: it's dropped self-production of pulp-heavy, glass-bottle line in favor of going to copacker for from-concentrate line that, in Jan, will segue to cans.
Dallas-based Rocky Mountain High Brands has brought on Michelle Krebsbach as marketing dir. Besides running her own agency, Krebsbach's background includes marketing roles at Fossil Inc, Toni&Guy and TGI Friday's, where she developed a national bev program. She's also attuned to marketing issues at grass roots, having worked at Harwood Marketing Group developing in-store retail promos for clients like Corona Extra Beer, Kimberly-Clark, Nokia, Cricket and Nabisco.
As any BBI reader knows, bevs is tuff biz and only handful of brands go on to any degree of sustained success or significant exit. As 2017 moves into waning weeks and we look back at year, we're hearing about some once buzzworthy brands that appear to have fallen by wayside and feel it's only fair to note that news, certainly with no sense of glee. Latest we've heard about is It Tastes Raaw, plastic-bottle line of flash-pasteurized fruit/veggie blends with no added water or sugar in range of 10 flavors like Better Beets, Tropical Bliss and Passion Fruit Wheat Grass. Brand packed in 12-oz bottle offered approachably priced alternative to expensive HPP juices (BBI, Nov 8 2013). We haven't been able to track down Miami-based founder Simon Decker but we hear that, after receiving infusion of capital from France-based group, co operating as Raw Foods Int'l undertook change in strategy that backed off frequent trial-generating bogos at key account in its home Fla market, Publix, and eventually lost that biz when velocities tailed off. That seems to have happened last spring, around time that social media went dark, aside from queries from fans asking where they can find brand. Phone number listed on ItTastesRaaw.com website has been disconnected.
SAS Sales & Marketing is offering a leg up to emerging brands looking to get some initial traction in challenging Florida market, by offering modest distribution arm in Tampa and South Florida areas. Boca Raton-based SAS, an acronym for names of founders Susan and Andy Stallone, to date has offered sales and mgmt services to fledgling brands, devising go-to market strategy for entrepreneurs who may come from background outside bevs. Current roster includes likes of Tickle Water, Phocus and Alpha Wolf recovery drinks. They've had long careers in new-age bevs, going back to launch of AriZona tea brand in Fla via their Boca Beverage. As Andy described it to BBI yesterday, new brands face chicken-and-egg problem in being unable to recruit broadline distributors and chain accounts without track record that comes of having some distribution help and retail availability. So he's aiming to jumpstart process under name SAS Kickstart Florida by leasing warehouse space in Boca and Tampa and establishing team of part-time sales guys and driver sales reps to make initial calls and win authorizations, even if it's just in 30 or 50 targeted accounts where new brand can build favorable velocity story. Staff will run in-store demos and perform merchandising chores and brand owners will get detailed reports via Repsly app.
"Could sugary snack and fast-food movie tie-ins be going out of style?" wonders Hollywood Reporter. The evidence: promo in which Zevia brand of stevia-sweetened sodas is teaming with 20th Century Fox on forthcoming Ferdinand flick by featuring title character and others on limited-edition cans. Zevia has produced 1.25 mil cans in Ginger Root Beer, Grape, Cream and Black Cherry non-caffeinated flavors, that are heading into retail partners like Whole Foods, Target, Albertsons and Sprouts Farmers Market. Consumers who purchase 6-pack priced at $5.99 by Jan 18 can submit their scanned receipts to get $5-off coupon from Fandango to view movie, which opens Dec 15. "It would be insane these days for a kids movie to have Camel cigarettes as a partner, yet we're still seeing partnerships with McDonald's and sugary soda companies; you want to have products that parents can feel good about giving their kids and I think that's why Fox sought us out," Zevia's chmn/ceo Paddy Spence told HR.
SCANNER TRENDS: CSDs Slip Further on Lower Price Increase but Sports Drinks Continue Recovery
CSD volume sagged 4.1% (vs -3.6% ) for 12 wks on avg price increase of 1.3% last 4 wks thru Nov 4 in Nielsen all-channel data reported by Wells Fargo Securities' Bonnie Herzog Full-calorie brands slipped 4% while diet sodas fell 4.5% over last 4 wks. Coca-Cola CSD volume decline accelerated to -2.3% (vs -1.6% for 12 wks) as avg price increases edged higher to +2.5% last 4 wks. Brand Coca-Cola volume was down 3.7% and Diet Coke off 6.4%, while revamped Coke Zero accelerated to 11.9% increase. PepsiCo CSD volume was off 6.1% on avg price drop of 0.8% for those 4 wks, generally in line with 12-wk trend. Pepsi and Diet Pepsi slipped 4.6% and 7.6% respectively while Mountain Dew off 5%. Dr Pepper Snapple volume slipped 3.5% (vs -2.4% for 12 wks) as avg prices rose by 2.7% last 4 wks. There was more discounting among private-label brands with avg price decrease of -1.5% (vs -0.6% for 12 wks), but that didn't move needle on volume, which fell 5.3% last 4 wks.
New team running Reed's Inc showed yesterday afternoon that it's dead serious about streamlining company and getting on profitable footing: it's retired several brands once viewed as core and seems to be closing in on decision to close or sell LA production facility that was long a personal passion project of founder and former ceo Chris Reed, a former engineer who's now in innovation role there. C-team is promising stream of announcements in coming weeks on operational steps, capital raise and other elements of revamped strategy. But gone are pair of brands listed as core as recently as a year ago, execs confirmed on conference call yesterday evening: Reed's Culture Club Kombucha and China Cola, which was long touted as "top-selling cola in natural channel" in boilerplate copy appended to REED press releases. Also on that list, and possibly headed for exit, are Reed's ginger candies and ice creams.
PepsiCo is pulling out the stops this holiday season, offering range of seasonal items intended to generate sales lift and add relevancy halo during festive period. Among its more out-there entries is LifeWTR Holiday Gift Set that plays off new brand's art affiliations by assembling specially designed 1-liter bottle, embossed notebook and felt tip pens from artist partners Craig & Karl, sold online at Amazon and Walmart starting later this month at $20. Meanwhile, Mountain Dew - these days Mtn Dew - has mashed up its core green flavor and popular Code Red extension in limited-time Mtn Dew Holiday Brew, offering "bold taste of holiday spirit" that's line-priced with core brand at $1.89 per 20-oz plastic bottle and $4.99 per 12-pk of 12-oz cans. And core Pepsi-Cola CSD brand is joining the frenzy, filching popular coffee flavor, Salted Caramel, for 20-oz PET bottles priced at $1.79 in cold box. Also in holiday mix are Izze Cranberry Orange Spice, Starbucks Peppermint Mocha Latte and, on food side, entries like Quaker Life Cereal and Chewy Bars in Gingerbread Space flavor, Christmas Crunch flavor for Cap'n Crunch cereal and Cheeto's Snowflakes (white cheddar).
Suggestions Welcome at La Colombe - but Just Pronounceable Ones, Please Philadelphia-based cold-brewed coffee marketer La Colombe has augmented its line of Draft Lattes with seasonal entry Peppermint Mocha, which has been hitting its network of 25K retail partners over past week, and is soliciting its fans' views on what next flavor should be. New entry uses cold-brewed Nizza espresso and fresh milk from dairy located just 10 miles from Mich plant, melded with dark chocolate and peppermint extract. In nod to clean recipe and lower sugar content, La Colombe founder/ceo Todd Carmichael said entry "walks that fine line between being refreshingly light and honestly decadent." It clocks in at 120 calories per 9-oz can (a tad below 130 calories per 8-oz serving of Starbucks' bottled Peppermint Mocha Chilled Espresso) and contains 170 mg of caffeine. It joins line that includes 7 featuring co's trademark "textured milk" and one that's black. Meanwhile, with co planning spring and summer seasonals for coming year, La Colombe is throwing doors open to fan suggestions via Craft the Next Draft link on website, with stipulation that suggestions employ "only ingredients found in nature and we can pronounce."

