Beer Marketer's Insights

Beer Marketer's Insights

Austin has proved fertile platform for cold-brewed coffee launches, spawning half dozen brands by now that have moved beyond purely regional status. Latest to move out is Heyday brand, canned shelf-stable entry that's heading into NY market via NA distribution giant Big Geyser. Entrepreneur Bart Smith, who's operating as Heyday Beverage Co out of basement space on Austin's famous East 6 St, says he's taken less indulgent approach than some, aiming for less sweet, refreshing effect. Brand is offered in 11-oz slim cans with bold graphic treatment (including all-caps HEYDAY) that are priced at $2.99. So far co has been working Austin area via local Bud house and has entered HEB grocery chain and Whole Foods' 5 local outlets, but NY is next on horizon. That ambition got big boost with acceptance by Big Geyser, whose need for shelf-stable brands rules out most other cold-brew entries, which must be kept refrigerated. One notable shelf-stable entry is fellow Austin player High Brew, but that's allied with Dr Pepper Snapple Group and ensconced in local DPS house in NY. To help with NY push co has brought on local hand Josh Sipper. To date, Big Geyser has played in cold-brew via Stok entry from WhiteWave Foods; it's also been longtime distributor of Coke's Illy conventional coffee RTD line. Heyday's flavor range includes Black ("bold & clean," 15 calories), Espresso ("strong & smooth," 60 calories), Chocolate ("smooth & savory," 70 calories) and Vanilla ("subtle & sweet," 80 calories). The entries contain 120-140 mg of caffeine. "Make today your heyday," is nostalgic brand motto. Info at DrinkHeyday.com.

Purveyors of organic foods/bevs potentially have another powerful claim they can make in their marketing: they're doing their share to lessen impact of carbon-caused climate change. New study undertaken by The Organic Center and Northeastern University's National Soil Project concludes that soils on organic farms store "appreciably larger" amounts of carbon for longer periods than typical agricultural soils, per summary of study that's to be published Oct 1 in the journal Advances in Agronomy. Study pulled 1K soil samples from across US to find that organic farms have 44% higher levels of humic acid than those not managed organically. Study pulled 659 organic soil samples in 39 states in continental US and compared them to Natl Soil Project's existing bank of 728 conventional soil samples from all 48 contiguous states. That resolved issue of past efforts to study issue that were flawed by wide diversity of sites within small overall number, said Organic Center's Dr Tracy Misiewicz, speaking at OTA media breakfast last Thurs. Researchers found that organic farms had 13% higher soil organic matter, 150% more fulvic acid, 44% more humic acid and 26% greater potential for long-term carbon storage. Humic substances, by remaining in soil for hundreds and sometimes thousands of years, are viewed as highly effective way to sequester carbon.

Organic Trade Assn seems to be taking more activist role as gov't watchdog, filing suit on eve of Expo East over delay in enforcing new livestock standards and warning that it will be vigilant in monitoring other aspects of organic standards development. Suit backed by orgs representing organic livestock farmers, organic certification agencies and organic retailers and consumers contends the USDA violated Organic Foods Production Act in delaying effective date of final livestock standards developed by industry itself and drawing support from 99% of 47K respondents in 30-day comment period. On issue with ramifications well beyond livestock realm, OTA also is arguing that regulatory freeze order issued by Trump Administration upon its inauguration in Jan shouldn't apply to organic standards because, far from being example of gov't overreach, those are entirely voluntary. "It's not a regulatory burden, it's a voluntary standard that you opt into," said OTA exec dir and ceo Laura Batcha.

Self-acknowledged innovation drought on bev side has officially come to an end at Mamma Chia: at Expo East, Carlsbad, Calif-based chia pioneer intro'd glass-bottle line of nutritionally rich Chia Protein Smoothies, with promise of lots more to emerge from pipeline in coming year. New line melds finely ground chia seeds with fruit purees and coconut cream, all of them organically sourced, to yield "powerful trifecta" of 1,000 mg of Omega-3s, 12 g of plant-based protein sourced from chia and peas, and 4 g of MCTs. For all nutritional heft, they clock in at just 9 g of sugar and 180 calories via sugar/stevia sweetener blend. They'll ship in Jan in Super Berry, Dark Cherry, Cool Watermelon and Island Mango flavors, priced at $3.99 per 10-oz bottle. Reflecting hectic timetable readying samples in time for Expo, sell sheet was labeled "FPO," meaning some of specs could change on way to final production version. Labels with upsized image of chia goddess reflect new look that will be bleeding into rest of Mamma Chia portfolio in coming months, including core Chia Vitality Beverages as well as Chia Energy Beverages, Chia Squeezes and Chia Granola Clusters. At show, Vitality line added Ginger Lime and Blueberry Pomegranate flavors, too.

CSD volume declined 3.5% on avg price increase of 1.5% last 4 wks thru Sep 9 in Nielsen all-channel data reported by Wells Fargo Securities' Bonnie Herzog. That's in line with CSD trends for 12 wks. Regular CSDs slowed volume decline to -2.9% while diet brands were off 4.7% last 4 wks. Coca-Cola CSD volume was down 2.3% (vs -2.1% for 12 wks) as avg price edged higher to +2.6% last 4 wks, which includes Labor Day holiday weekend. PepsiCo volume decline slowed to -6.3% as avg prices went from slight gain to -0.8% avg for 4 wks in all-channel stores. Dr Pepper Snapple CSDs were off 0.7% on solid 2% avg price increase last 4 wks. Private-label brands slowed dropoff pace to 6% (vs -9.3% for 12 wks) despite modest (+0.3%) price gain for 4 wks.

Chalk it up as a big win for Honest Tea, even if it's a net neutral for parent Coca-Cola: this Nov, McDonald's is dropping Minute Maid Apple Juice Box from its Happy Meal array in favor of less sugary Honest Kids organic juice, Wall St Jnl reported. The swap will take kids from 19 g of sugar (80 calories) to 9 g (40 calories), in synch with requests from parents for healthier choice, as McD's nutritionist Cindy Goody told paper. Of course, some commenters noted that parents who're concerned about their kids' health probably have better food options than a Happy Meal in the first place, given high fat, sugar and sodium levels of the meals' entrée options.

In disclosing $8 mil investment from KarpReilly and flock of food/bev luminaries, Iconic Protein said it will use proceeds in part to recruit senior execs to mastermind broad expansion (BBI, Sep 14). Turns out that effort already is under way, with Santa Monica, Calif-based co recruiting as vp sales the former Muscle Milk exec David Hunter, who spent 14 years at Abbott Nutrition before enjoying good run at CytoSport managing Muscle Milk sales in venues from Walmart to specialty. Bosch also is in hunt for marketing vp, preferably youthful, female exec to balance co's male tilt, he told BBI at Expo East booth.

In highly unusual move, Edison, NJ-based food/bev incubator MetaBrand is about to enter mfg realm with opening of pilot and small-scale production facility in local building formerly occupied by nearby Allen Flavors. Audacious plan is to offer early-stage companies - who don't have to be MetaBrand clients - a production option where they aren't expected to meet most copackers' minimum production runs on order of 5K cases, explained execs Craig Fortin and Debbie Wildrick in discussion at Expo East. Plant at 25 Progress St (Allen's first before embarking on several expansions) contains nearly 12K sq ft of operational space equipped with machinery for coldfill and hotfill processes, retort, low-acid, ESL/UHT, in carbonated and noncarb formats. It can handle plastic and glass packs, as well as kegs and bag-in-box. It also features cold-blending/processing space. Plans are to add another 25K sq ft around next spring. Not in mix so far are Tetra Pak and aseptic production. Nick Andlinger, member of family that holds key ownership stake in MetaBrand, is supervising buildout as operations mgr. MetaBrand just occupied bldg in late Jul but completed first runs - for Zest Tea and Lucid CBD shots - just ahead of Expo East. Certifications for organic, kosher and other qualities are pending.

Pair of former execs at precursor co to Dr Pepper Snapple Group are helping to bankroll and manage trio of Austin-based emerging bevcos and are in hunt for more. Operating in concert with unidentified family fund as Great Point Brands, former Cadbury Schweppes exec Gil Cassagne and his colleague Jerry Williams have quietly made minority investments in cold-pressed juice maker Daily Greens, Live Kombucha Soda and Cuvee Coffee, which operates Austin café/bar and has launched RTD cold-brewed coffee. Intriguing model is to consolidate key logistical functions while allowing companies to pursue their independent visions. On sales side that's meant that as chief commercial officer Williams is running sales for all 3 cos and quickly put all 3 into Acosta's Ignite Sales Mgmt arm. Meanwhile, Live's sales/marketing dir, Ashley Montgomery, has been promoted to vp sales for retail grocery, natural and specialty for those portfolio brands. (Live's longtime sales chief, Joel Skurnik, who's based in Denver, moved on rather than relocate to Austin; he recently landed at locally based Boulder Organic Foods.) Execs are mulling whether it makes sense to consolidate the 3 cos' separate ad agencies next, Williams indicated. The Daily Greens investment occurred last Mar; Live Kombucha Soda and Cuvee Coffee entered fold in past coupla months, said Jerry, who was encountered at Daily Greens booth at Natural Products Expo East last week in Baltimore. (Live Kombucha Soda also was exhibitor, at separate location.)

That was fast: Anheuser-Busch already has set rollout plan for recently acquired Hiball energy and canned water brand, starting in western third of US on Nov 1 and proceeding to eastern third next Mar and heartland states by May. But indie Bud wholesalers may find associated contract tuff one to swallow: unless they opt to pay for brand rights on way in, they won't get anything on way out should termination occur. A-B is asking western-region wholesalers (regions 6 and 7) to return signed contracts on what seems accelerated timeframe, this Fri, per memo from non-alc vp Michael Taylor that was shared with us. From what we're hearing, it's not clear all the indie houses will sign it, potentially marking inauspicious start to brewer's latest foray into lucrative energy drink market.