Beer Marketer's Insights

Beer Marketer's Insights

Recent Food & Drink item in New Yorker mag profiles retail space opened by nearly century-old coffee wholesaler Kobrick Coffee Co in NY's happening Meatpacking District, just blocks from where Pepsi is trying to reinvigorate its core CSDs with trendy food/entertainment space and Starbucks will be building out one of its roasteries. At Kobrick, "the baristas are cross-trained as mixologists and the creative synergy between the twin disciplines of craft coffee and craft cocktails rises to the level of art." A third-wave coffee shop by day complete with Japanese cold-brewing apparatus on view, Kobrick rolls back menu board at 8 PM to reveal a liquor cabinet, lights are dimmed and staff goes to work creating concoctions like the cold-brew-based Three Hour Kyoto Negroni or an Old Fashioned that plunges Four Roses Bourbon thru an AeroPress. Other creations there: Mexican Jumping Bean (tequila plus ristretto) and Caffe Corretto (Jamaican rum mated with Loca Mocha, "bottle of house-made chocolate milk spiked with Jameson"). As NY Times reported last year when shop opened, it was brainchild of 4th generation of owning family, Scott Kobrick and his sister Nikole Kobrick, working with staffer at Hella Bitters, which are employed in several cocktails. Website indicates the cocktails run $15 each.

American Beverage Assn's new roster of board members elected to 4-year terms includes exec at longtime beer operator Reyes Group, which just made a big splash into soft drink biz with bundle of Coca-Cola franchise assignments. Joining board is Jeffrey Laschen, ceo of Reyes Group's Great Lakes Coca-Cola franchise, the first it was awarded tho co has since won big chunk of Calif too. A Coke system vet of over 40 years, the Milwaukee-born Laschen joined Great Lakes operation that operates 6 bottling plants and 36 warehouses across the 6 states of Ill, Ind, Iowa, Mich, Minn and Wis. (Reyes has since grabbed lots more Coke territory in Calif.) Also newly elected to board was Jeffrey Minges, prexy, ceo & chmn of Minges Bottling Group. Elected for an additional term were Red Bull North America ceo Stefan Kozak; Big Red prexy/ceo Gary Smith; Brian Charneski, prexy of L&E Bottling Co; Mark Francoeur, prexy of Kirin affiliate Coca-Cola Bottling Co of Northern New England; Sally Hargis, chmn of Ozarks Coca-Cola/Dr Pepper Bottling Co; John Kalil, vp of Kalil Bottling Co.; Jack Pelo, prexy/ceo of Swire Coca-Cola USA; Cliff Ritchie, prexy/ceo of Carolina Beverage, and Kirk Tanner, prexy/ceo of PepsiCo North America Beverages.

Coca-Cola continued its housekeeping efforts behind US distribution map, sparking complex transaction in which Coca-Cola Bottling Co Consolidated essentially swapped some territory in Southeast and Deep South for territory held by Coca-Cola United in Mid-South. Coke Consolidated gave up territory in southern Ala, southwestern Ga, southeastern Miss, northwestern Fla and area around Somerset, Ky, as well as bottling plant in Mobile, Ala. In return it got territory formerly operated by Coke itself, via Coca-Cola Refreshments bottling arm, in parts of Ark and around Memphis, Tenn, as well as plants in Memphis and in West Memphis, Ark. The newly gained territory includes metros of Little Rock, West Memphis and southern Ark, and Memphis. The Coke United transaction swaps Coke Consolidated territory in Florence, Ala, south-central Tenn and Laurel, Miss, for United territory in Spartanburg and parts of Bluffton, SC. Consolidated's Piedmont Coca-Cola Bottling Partnership subsidiary did separate swap of its territory in northeastern Ga for rest of Bluffton territory. It's complicated jigsaw puzzle, but seems to continue move by Coke and its bottling partners to consolidate among more-contiguous, confined territories as part of grand refranchising program that's nearing completion.

For years Mexican sparkling mineral water brand Topo Chico has enjoyed outsize presence in Texas, which accounts for 70% of brand's US sales. Now, Coca-Cola has swooped in to acquire brand for $220 mil from bottling partner Arca Continental with view to blowing it up nationwide and thereby better participating in sparkling-water category that's been exploding lately. With Anheuser-Busch's recent acquisition of energy drink marketer Hiball and its Alta Palla sparkling water line, the strategics continue to embrace soda alternative, even as new entrants pour into category.

BBI contact has sent us photo from Walmart store in NY metro depicting endcap display of 23.5-oz cans of AriZona teas and juices at everyday low price of 56 cents. Display includes such mainstays as Arnold Palmer, Green Tea with Ginseng and Sweet Tea, all normally prepriced at already value-oriented 99 cents.

Califia Farms has turned to equipment finance specialist CapX Partners to secure $15 mil to fund procurement of new bottling and pasteurization lines that will triple output at its Bakersfield, Calif, plant. CapX provides senior and mezzanine debt including lease lines, generally in $2 mil to $20 mil range . . . In a sign of burgeoning interest in mushrooms as protein source, MycoTechnology has closed on $35 mil Series B capital round led by S2G with co-leads Bunge Ventures Ltd and Emerson Collective. Co identified additional investors as Health For Life Capital/Seventure Partners, Middleland Capital, Tao Capital Partners, Eighteen94 Capital, Continental Grain, GreatPoint Ventures, Closed Loop Capital and Windy City LLC. Among other needs, funds will be used to build commercial production plant in Aurora, Colo, for co's PureTaste mushroom protein, with anticipated annual capacity of 4 mil metric tons.

Treo Organic Birch Water Infusion, brand created by son of Snapple cofounder, added trio of new flavors to build on momentum that's seen 9-month-old brand already crack 5,500 retail accounts. Entering flavor mix are Raspberry Lemonade, Kiwi Watermelon and Orange Apricot, joining 4 existing flavors, said founder Bobby Golden, son of Snapple cofounder Hymie Golden. Original flavors are Blueberry, Coconut Pineapple, Peach Mango and Strawberry. Between the birch sap, erythritol and stevia, brand comes in at about 20 calories per 16-oz bottle. Shelf-stable line goes out at $2.59-2.79 SRP. Bobby told BBI he's been pleasantly surprised by reception brand has enjoyed in Midwest, with retailers like Jewel-Osco and Sendiks taking it on, joining retail roster that also includes Wegmans, Stop & Shop, Giant, ShopRite and Safeway's Albertsons banner.

Early into game of offering cold-pressed HPP organic shots, along with likes of Suja and BluePrint, 6-year-old KOR Shots has been steadily growing product range and retail footprint of its 1.7-oz items as consumers gravitate to convenience and lower sugar content of format, said founder Jordan Retamar. Among latest round of innovation visible from Malibu, Calif, marketer at Expo East, perhaps most intriguing was shot-size rendering of activated charcoal trend that's been popping up at juice bars all over US. Dubbed Black Magic it's formulated from coconut water, lemon juice, ginger juice and activated charcoal powder to offer "detoxifying charcoal," as label states. It's due in Jan, among quartet of new offerings that are moving initially into Whole Foods. Among the others is Gut Check Apple Cider Vinegar Probiotic, boasting 2 bil cfu's of bacillus coagulant GBI-30 in blend of apple cider vinegar, aloe vera juice, ginger juice, lemon juice, coconut water and apple juice. Also new are Potent-C, made from sea buckthorn, and Green Up, a wheatgrass shot. They round out line comprised of Wellness (ginger, cayenne) and Vitality (turmeric). They go for $3.99 at Whole Foods.

US coffeehouses continue "to experience healthy growth" despite "a potential" threat from fast-growing RTD coffees at retail, reported Mintel. Coffeehouses' sales will reach an estimated $23.4 bil in 2017, growing 41% since 2011, per Mintel analysis. It expects sales to hit $28.7 bil by 2018. Sales numbers are on rise as consumers shift to more "premium, albeit pricier" coffees including "specialty coffees, cold brew coffee and third wave coffee," per Mintel. Cold-brew biz has shot up 460% from 2015-2017 to reach estimated $38.1 mil. A good sign for retailers is that while more and more folks cravin' cold brew, "just 7 percent" told Mintel they make the stuff at home. While sales $$ on rise, number of total shops in US has slowed to growth rate of just 2.17% this year, "slowest growth rate in last 6 years." Happy coffee day!

Lotsa bev people have been exclaiming in recent months over aggressive push that drug chain CVS is making into healthy/functional space. That's on view at 2-story flagship store opened just downtown from NY's Times Square, 13K-sq-ft behemoth open 24 hours that's divided into "discovery zones" that cluster new products in such areas as Healthy Eating On-the-Go, Advanced Skin Care, Sleep & Mood and Connected Health. One bev brand that seems to be getting particular love from CVS, perhaps because it operates as intersection of health and beauty, is Alo line of aloe-based Exposed Waters.