Beer Marketer's Insights

Beer Marketer's Insights

With a former Vitaminwater principal stunting Powerade's growth thru his aggressive buildup of Body Armor sports drink, Coca-Cola is throwing another brand into the isotonic breach: Vitaminwater. At NACS, Coke unveiled entry dubbed Vitaminwater Active, due in Jan, that contains 10% coconut water, just like Body Armor does, and is packed in striking 15.2-oz bottle that tapers at middle. New line is set to debut in Move It (strawberry/black cherry), Pump It (lemon lime) and Werk It (orange mango) flavors. It contains 25 g of sugar, or about 100 calories per bottle. It joins isotonic range that includes Powerade, long the distant #2 brand to category leader Gatorade, as well as a newer organic entry from its Honest Tea unit, Honest Sport, which has been rolling out over past year. Body Armor, of course, was cofounded and is currently managed by former #2 at Vitaminwater creator Glaceau, Mike Repole. Tho it's flattened out since Coke's acquisition a decade ago, Vitaminwater remains powerful, familiar brand, tho not all its past extensions have been a slamdunk, with both Vitaminwater Energy and Fruitwater launches not panning out.

New Age Beverages has signed sales/marketing agency Advantage Solutions for its broad portfolio of brands that includes Xing Tea, Aspen Pure Probiotic water, Bucha Live Kombucha, Marley relaxation bevs and Coco Libre coconut water. Advantage sales dir Joel Turner cited NBEV's "one-stop-shop approach" in healthier segments that are outgrowing category. NBEV sales svp Michael Cunningham said Advantage already has played a role in winning the 10K new points of distribution added just in Sep . . . Rocky Mountain High Brands said it closed on equity financing agreement worth up to $12 mil via GHS Investments LLC. RMHB said how much of the $12 mil in shares it sells is at its discretion. Move will allow co to buy back less favorable convertible debt incurred after co discovered that funding commitment cited by prior mgmt team did not exist. "Now that this is behind us, we can concentrate on generating sales and building our company and our shareholder value, said coo and board member Charles Smith . . . SodaStream has teamed with fitness star Jillian Michaels to star in national infomercial due next month that will drive home SodaStream's hydration benefits for consumers while spotlighting its SodaStream Fizzi and newly-released Fruit Drops natural flavor essence drink mixes . . . Meanwhile, another gadget maker, Keurig, has teamed with James Corden to launch campaign dubbed "Brew the Love" in which actor travels across America showing real-life coffee drinkers why they should "ditch their drip."

Tim Hortons US is among latest mass chains to hop aboard the craft coffee bandwagon, launching handcrafted espresso menu including lattes, Americanos and cappuccinos made with freshly steamed milk starting as low as $2.29. New initiative launched earlier this month in western NY in Buffalo and Jamestown, and will have expanded throughout rest of US footprint by year-end. In initial markets, co launched FOAMO promo (playing on acronym for "fear of missing out') that invites visitors to bring coffee receipt from rival chain and swap it for Hortons latte in any size or flavor for $1. "Every step of the process from freshly grinding beans, to delicately steaming milk, creates that perfect, handcrafted espresso beverage experience," said regional prexy Stephen Goldstein.

A committee of Pennyslvania's state senators met yesterday in capital to hear debate from both sides over Philadelphia's 1.5 cent per ounce beverage tax, reported Philadelphia Inquirer. This hearing was originally scheduled in Jun but shut down by pro-tax protesters at time. Sen. Anthony H Williams (Dem), who called for hearing, told media purpose was to hear from both sides to see what if any action should be taken. But a Senate Republican, Mario Scavello, sent a memo Oct 16 to urge State Senate to join him in cosponsoring "preemption legislation" to ban this tax and other bev taxes from popping up in the state. While pre-K programs that Philadelphia Mayor Kenney wants to fund with tax are "laudable," this tax has been "an extreme burden on grocery stores and convenience stores," wrote Scavello. A survey by the city controller's office earlier this year found that 649 of 741 retailers in the city said they were losing revenue, and 60% of those put blame squarely on the bev tax. Those findings were disputed by Marc Stier of Penn Budget and Policy Center. "A survey of businesses at a time when the beverage industry is whipping up hysteria about the beverage tax is not likely to give us accurate results," he said, per local CBS affiliate.

"We're back to our fighting weight," Don Vultaggio told Forbes, just 2 years removed, as mag noted, from "the nearly decade-long, bare-knuckle battle" between him and former partner John Ferolito. A confidential settlement ended "one of the biggest corporate dissolutions in New York history," as Forbes put it, but now the bank loan used in part to pay off Ferolito is nearly paid off, sez Don, and his focus is strictly back on biz. "We're ready to conquer the world," he declared, as he moves AriZona "into new teas, food products, international markets with his sights on doubling the size of the company in 5 years," wrote mag. Those doubling plans include "testing new product lines" that will "complement" not cannibalize his tea brands, launch of Good Brew premium tea, expanding alcoholic brands which make up "less than 5%" of AriZona sales so far. Don is also "steering AriZona into snack foods," with a beef jerky "Crazy Horse, designed to boost business in convenience stores by offering something to pair with an AriZona tea," noted mag. To handle volume of new initiatives, AriZona is building a new plant in NJ, expected to open by end of 2018. Current facility in Maplewood, NJ, "handles much of" co's Northeast biz, with other production requirements met via copackers. He also has Europe in his sights: "We're just scratching the surface in a lot of markets," said Don. "There are opportunities for us to go in and do what we did in America for Germans and Italians."

CSD volume slowed its decline as prices increased a bit more. CSD volume off 3.3% (vs -3.8% for 12 wks) with avg price increase of 1.9% last 4 wks thru Oct 7 in Nielsen all-channel data reported by Wells Fargo Securities' Bonnie Herzog. Coca-Cola CSD volume back to even over last 4 wks vs 1.8% decrease for 12 wks, as its avg price increase came down a bit to +1.7% vs +2.2% avg for 12 wks. KO full-calorie brands were up 1% while PepsiCo and DPS brands fell 7% and 2% respectively for 4 wks. PepsiCo's full CSD roster was down 6.9%, in line with 12-wk decline. PEP prices edged higher to +0.8% last 4 wks. Dr Pepper Snapple CSD volume was down 3.1% last 4 wks, double its 12-wk drop as avg prices rose from +2.2% to +3.3%. Private-label volume decline slowed to 5.3% for 4 wks as avg prices went from even to 1% decrease.

With its energy sales plummeting, PepsiCo sees to be taking assertive steps to get back into growth mode, adding pair of Mountain Dew Kickstart entries in larger can with more caffeine, while also picking up Rockstar Energy-created Yachak yerba mate line. Intros come just after PEP debuted revamped Amp line that also adopts yerba mate as natural energizing ingredient. Those were among highlights at Pepsi booth at NACS, along with raft of Starbucks extensions in segment where Pepsi seems to continue to excel.

Icelandic Water Holdings, which has long moved its Icelandic Glacial bottled water thru Anheuser-Busch distribution network, has established alliance with Stratus Group's Golden West Food Group that may see that co's shelf-stable canned kombucha and cold-brewed coffee lines soon enter A-B houses. Tho announcement apparently won't go out until tomorrow, Golden West execs at bustling booth at NACS c-store show were happily describing to visitors a deal that will see their newly created Koe shelf-stable organic kombucha brand and canned Bowery Coffee Co cold-brew subline entering Bud network, possibly within next coupla months. It augments renewed push into NAs by A-B that's included acquisition of Hiball organic energy and canned water, partnership with Starbucks on Teavana bottled teas and investments in brands like Owl's Brew mixers, Up Mountain Switchel and Go Live probiotics.

NACS mega-show targeting c-store operators opens for 3-day run on Wed at Chicago's McCormick Place, as major showcase both for major bev brands, including Coke, Pepsi, DPS, Nestle, Red Bull and Monster, and earlier-stage brands looking to ply high-velocity channel, including likes of Protein2O, Forto Coffee Shots, Invo Coconut Water, Avitae caffeinated water and Sportwater. Info at NACSonline.com. BBI hopes to bring you extensive coverage.

Exec at New Age Beverages said he misspoke in implying that forthcoming Marley Cold Brew entry might replace existing One Drop iced-coffee entry (BBI, Oct 13). "We are only looking to unify all Marley brands under our new brand hierarchy, so they are consistent across the board," he said. Further, BBI discussion of another NBEV brand, Coco Libre Sparkling, failed to convey that under New Age ownership, the line has been substantially revamped, dropping concentrate, getting packaged directly at source and offering expanded flavor range of Coastal Coconut, Coconut Lime, Peach Pear, Passion Mangosteen, Coconut Watermelon and Melon Grapefruit (the last 2 available exclusively to select retailers that co didn't identify). Tho Marley Cold Brew isn't ready for public viewing yet, Coco Libre Sparkling coconut waters will be sampled at NACS convenience-store show opening Wed in Chicago along with array of other NBEV innovation highlighted in Fri story.