Beer Marketer's Insights

Beer Marketer's Insights

Pair of former elite runners and doctor wife of one of them have migrated their science-backed hydration drink mix, SOS Hydration, to organic ingredients and tweaked formula for greater water absorption while continuing to build out brand at retail and seeking new round of growth capital.

Jones Soda's growth challenges continued in Q3, with co reporting 10.7% revenue decline to $3.65 mil, dogged in part by "increased competition in the craft soda segment at grocery" and discontinuation in May of canned version at key retailer. Operating loss of $163K reversed small profit of $87K a year earlier. Gross margin contracted to 24.6% from 27% a year earlier, in part because controlled brand devised for 7-Eleven chain segued from cheaper PET format to glass bottle. For 9 mos, sales are down 12.2% to $11.12 mil and operating loss is $372K vs $147K profit for prior-year period. In trading today, shares were off more than 5% from yesterday's 47-cent closing price as of mid-afternoon.

Continuing push to make its still and sparkling essence waters a healthy, sophisticated accompaniment to urbanites' lifestyles, Hint Inc has struck multiyear partnership with entertainment giant AEG that will make brand available in marquee venues like The Warfield in SF, Shrine Auditorium in LA and Brooklyn Steel in Brooklyn. All told, deal set with AEG Global Partnerships puts brand into 12 music venues in 4 cities including Boston with opportunities for local sampling nights, promos and custom drinks using Hint and Hint Fizz. Further, Hint items "will be strategically integrated throughout the live event experience at select AEG venues and brought to life across various consumer touch points with engaging experiential activations and events that immerse fans in the hint lifestyle," partners said. Hint also will do ticket giveaways to consumer base that's very robust thanks to heavy digital marketing and direct-to-consumer sales activities. Deal was described as first multi-venue water partnership for either party.

Bristol Farms has opened new-concept store in LA's Woodland Hills area that takes décor in more spartan direction so as to let the food offerings better speak for themselves. New store, chain's 13th, is 25K-sq-ft in size and aims to lure millennial shoppers with minimalist look, albeit one with more refined finishes than millennial icon Trader Joe's. Entering shoppers are greeted with view of produce dept and food hall with 20-ft-high ceilings . . . The 26-unit Gelson's Markets chain has opened new store in Rancho Mission Viejo in SoCal's Orange County that's first in area to feature cold-pressed juice bar, in partnership with NY's Liquiteria chain. Other features of new store include Wolfgang Puck Build-Your-Own Pizza and tapas bar offering wine and craft beer . . . It's end of an era in Marietta, Ga: Whole Foods has closed the last of 3 Harry's Farmers Markets stores it purchased in 2001, aiming to migrate Harry's shoppers to new Whole Foods unit in nearby Kennesaw. Harry's stores in Roswell and Gwinnett had been closed years earlier tho old Roswell store still serves as south regional office and warehouse for Whole Foods, Shelby Report noted.

After soldiering on for 6 years to establish Gotham Brands in NY market, founder Trent Moffat finally is ready to expand his footprint, offering merchandising services in Boston, Philadelphia and Baltimore/Washington metros. Core operation in NY has grown into full-service operation that offers early-stage brands merchandising, DSD delivery, in-store sampling and summer event trucks, and Moffat noted that new initiative reverses sequence by starting with merchandising piece. "Leading with our merchandising teams into new markets has been a reverse model of how we started, but with great brands like LaCroix and Brads Raw Foods helping us lead the way along with new brands like Hippeas and Greyston we can support and focus on a limited number of products and be very effective at retail," he argues. As venture develops in new territories, Gotham will work to add sales and infrastructure similar to that available in tri-state area around NY . . . Brand management firm Cascadia Managing Brands, based in Ramsey, NJ, has recruited Amazon consultant Johanna Cooper to oversee new venture that will offer clients support in activities ranging from selling strategies to optimizing Amazon's marketing services.

Are shrubs becoming a thing? "Elixirs" category of Good Food Awards competition put on by Good Food Foundation shows surprising representation by makers of colonial-style drinking vinegars called shrubs from diverse regions of US, from Virginia and Vermont to Wash State. It seems to attest to wide-ranging grass-roots activity of sort that has similarly defined emerging segments like kombucha and cold-brewed coffee. Of 23 entries represented in broadly defined "elixirs" category, 11 seem to be shrubs and switchels, with the other dozen divided among more established syrups and bitters sub-categories. The finalists in this category (in alphabetical order) are Backyard Citrus & Juniper Shrub from Calif; Element Chai Pear Shrub & Blueberry Rosemary Shrub (Va); Gardenaire Rhubarb + Basil Shrub & Tomato + Basil Shrub (Minn); Girl Meets Dirt Ruby Spiced Apple Shrub (Wash State); Golden Bear Bitters Summer Botanical Tonic Syrup (Calif); Happy Girl Kitchen Pomegranate Jalapeno Shrub (Calif); Reverend Al's Bona Fide Potents English Cucumber, Lime & Mint Shrub (Wash State); SHED Plum Shiso Shrub (Calif); Ship to Shore Merchants Poached Pear Shrub (Ill); Southport Grocery Spiced Orchard Shrub (Ill) and Vermont Switchel Co Haystackers Switchel (Vt). Awards are put on by Good Food Foundation, and presenting sponsor is Good Food Merchants Collaborative, 22 independently owned retailers from Austin to Oakland that are "committed to supporting America's great food crafters." They encompass range of categories from beer and spirits to cheese and coffee. Collab members include likes of Bi-Rite, Zingerman's, Cowgirl Creamery and Antonelli's.

On heels of buying Panera Bread in Jul, JAB is adding to footprint with addition of Au Bon Pain, chain founded by Panera Bread ceo Ron Shaich over 30 years ago. Acquisition by Panera reunites once-sibling units and comes as Shaich made surprise announcement that he'll step down as Panera ceo, seguing to role as chmn; he'll focus on his own investments as well as unspecified JAB initiatives. He's being succeeded in ceo role by prexy Blaine Hurst, a nearly 7-yr Panera vet . . . Cold-brewed coffee player KonaRed, based in San Clemente, Calif, said it tapped Venice Brands for "strategic multiyear equity deal" of undisclosed magnitude. Venice Brands founder/ceo Greg Willsey had been colleague of KonaRed ceo Kyle Redfield at POM Wonderful. Venice Brands, founded earlier this year, made earlier investment in bone broth marketer Osso Good Co.

Steve Gress, whose small distribution company Exclusive played big role in igniting Vita Coco Coconut Water in its NY home market, has signed on with Jones Soda as vp of US sales with focus on its natural entries under Jones and Lemoncocco banners. After Vita Coco migrated to NY DSD operation of its national strategic partner Dr Pepper Snapple, Gress had closed Exclusive and in 2015 segued to role aiding New England Beverages/Good-O house, where he helped seed Italian-inspired refresher Lemoncocco in key chains like Whole Foods and Fairway Market. So he's logical person to help build brand, said ceo Jennifer Cue. Before launching Exclusive, Gress had served at Big Geyser, meaning he brings lotta experience from that side of biz in his new role calling on distributors . . . Tyler Gage, cofounder of Runa guayusa brand who moved away from day-to-day role over past year, has joined board of Osso Good Co, San Rafael, Calif-based marketer of "sippable" bone broths. Gage, who relocated from NY to Seattle area, also serves on board of publicly traded David's Tea and is co-founding partner of NAKU indigenous healing center in Ecuadorian Amazon, where Runa has sourced its guayusa. . . Greg Stroh, member of Stroh Brewing family who diverged into NAs with launch of Izze and Mix1 bevs, has joined advisory board of Milwaukee-based mixer brand Top Note Tonics, which was founded by craft beer vets Mary Pellettieri and Noah Swanson.

Austin butter coffee brand Picnik, which rolled into all Whole Foods stores this past year, is building out its presence both as café operator and in product range. Currently operating bricks-and-mortar restaurant and 2 trailers under Picnik name in Austin, co founded by Naomi Seifter will open another bricks-and-mortar operation in Denver next year and has won nod to operate in-store café at one of Whole Foods' 365-bannered stores in Inland Empire east of LA, in city of Upland. It's also ready to launch creamer that allows consumers to transform their home-brewed hot coffee into butter coffee, following up on earlier plan that got sidetracked when Whole Foods buyer urged Seifter to pursue RTD line instead. And it's embarked on capital raise, believed to be of a few million dollars. Butter coffee, of course, is blend of coffee, butter and coconut oil or other MCT oil that was pioneered by Bulletproof, which itself has recently entered RTD game along with flock of other wannabes.

Celsius Holdings continued to build momentum behind its range of Celsius calorie-burning energy drinks, scoring 62% net sales gain to $10.8 mil revenue in 3d qtr, as retail, internet and overseas sales all rose briskly. Gross margins remained above 40% and "Live fit" lifestyle campaign seems to resonate with consumers. New natural line and fitness-oriented Heat line both are steadily building distribution. It made for "highly productive and eventful quarter," in words of cfo and interim ceo John Fieldly, speaking on investor call late yesterday afternoon.