Beer Marketer's Insights

Beer Marketer's Insights

CSD volume decline slowed to -2.9% as pricing eased a bit over last 4 wks thru Jul 15 in Nielsen all-channel data reported by Wells Fargo Securites' Bonnie Herzog. Avg prices on CSDs were up 1.2% last 4 wks, down from +1.9% for 12 wks. Full-calorie CSDs were off 2.3% while diet brands fell 4.4% last 4 wks. Coca-Cola cut its volume decline in half to -1.3% for 4 wks on avg price increase of 1.9% (down from +2.3% for 12 wks). Sprite was a positive for KO, up 3.6% for 4 wks, while brand Coke slipped 0.9% and Diet Coke was off 3.8% for 4 wks. PepsiCo's CSD volume was down 6.3% (vs -7.8% for 12 wks) on avg price increase of just 0.2% last 4 wks. PEP's top brands still struggling: brand Pepsi down 6.3%, Mountain Dew -9.6% and Diet Mtn Dew -3.6% for 4 wks. Dr Pepper Snapple CSD volume was up 1.7% as avg prices eased from +1.4% for 12 wks to slight gain of 0.2% for 4 wks. Several DPS' brands outperformed. Dr Pepper up 2.5%, A&W gained 2.6% while Canada Dry posted 12.8% gain on avg price drop of 1.3% for 4 wks. Private-label CSDs continued to drop further with volume down 9.7% (vs -8.1% for 12 wks) on avg price gain of 1.2% for 4 wks.

We reported yesterday on sobering news that one Midwest-based alternative to Gatorade, Aspire, may have shut its doors. But another brand, Protein2O, that offers protein-infused hydration alternative to athletes and to broader public is motoring forward, pulling in $4 mil round from original investors and recruiting pair of seasoned former Gatorade execs to team. Former Gatorade marketing/pr exec Andy Horrow, most recently working with Wholesome Tea founder Kevin Kotecki on acquired Inko's Tea and Blue Buddha brands, has come aboard as prexy, with mandate to build both sales and marketing plans. And former Gatorade prexy Sue Wellington, who ran isotonic brand during headiest growth spurt, has joined Protein2O in non-exec role of chmn. Protein2O and Wholesome Tea both are based in Chicago area (as is another fledgling sports brand, Coco5); Aspire has been based in Twin Cities.

Private-label power Cott has now completely shed its skin: co agreed to sell its private-label bev operations to European private-label leader Refresco for $1.25 bil in cash, spelling Cott's exit from biz that once defined it in favor of home & office delivery of water, coffee/tea and other activities that it entered via acquisition route. Refresco, based in Rotterdam, Netherlands, only entered N Amer market last Sep with purchase of Whitlock Packaging, recall. Its execs say they'd long coveted Cott PL biz, but timing was never right for transaction to occur. For its part Cott, under ceo Jerry Fowden, in recent years has made at times startling diversification moves even as it sought to soften blow of CSD declines in PL biz by diversifying into iced teas, bottled waters, energy drinks and other growth sectors. By now CSDs are less than 40% of biz by volume. It also sought to better deploy its network of 29 facilities by building contract mfg biz that now accounts for 14% of biz, with Monster Energy, AriZona Iced Tea and Welch's among its customers. All of that, generating $1.7 bil in revenue, now will be shed. Cott operates in N Amer and UK, while Refresco operates in 10 European countries as well as footprint of acquired Whitlock co in US.

After period of self-reflection, team behind Asi brand of yaupon-based teas is back at it, intro'ing new look for its glass-bottle line of RTD items, offered in 5 flavors. New 12-oz straightwall bottles display USDA Organic seal on self-designed front panel and employ designator "American yaupon," to flag heritage of member of holly family that's only caffeinated plant native to American shores. Rediscovery of plant that once was mainstay for Indians, colonists and economically afflicted Americans during panics and busts over the centuries has spawned cottage industry of startups in Texas, Florida and Georgia, tho most focus on loose-leaf offerings. Styled "wild-picked American yaupon tea," Asi RTD line boasts 30 mg of caffeine and theobromine and cane sugar as sweetener, at only 15-45 calories per bottle, thanks in part to inherent sweetness of leaf that's sometimes been called "Indian chocolate." It's out in Traditional Brew, Mint & Honey, Lemon, Sweet 'Nuff and Elderberry & Hibiscus,

Lavender Pond Farm, operating for 2 years now in Killingworth, Conn, has moved its popular Lavender Lemonade into RTD format with launch of small-batch, gourmet lemonade infused with fresh lavender and sweetened with organic raw honey. Denise Salafia, who operates farm with her husband Chris, termed infusion a "much lighter, revitalizing drink than traditional lemonades." It's packed in 16-oz bottles priced at $4, starting on farm and online, with plans to move it out to retail soon throughout New England. Farm boasts 10K+ lavender plants over its 25 acres and offers visitors lavender plants, essential oil, body lotion, soaps, pillows, sachets and wedding favors . . . Eight O'Clock Coffee, owned by Indian conglomerate Tata Global Beverages, has expanded its recently launched "thoughtfully crafted" Infusions line with trio of entries that capture trendy ingredients like turmeric and acai. Super Spice offers medium-roast coffee blended with turmeric and cinnamon, Acai Glow is medium-roast with acai, and B6 Metabolism uses dark-roasted beans fortified with fruit and herbal blend claimed to be rich in vitamin B6. They expand line that launched last fall with 2 entries: Alert, with extra caffeine boost from guarana, and Relax, decaf item blended with cuts of chamomile and lavender. They're all offered in 10-oz bags.

NY Times front-page takeout on newly appointed dir of Centers of Disease Control, Dr Brenda Fitzgerald, focuses on her tenure as health commissioner of Georgia, where critics said she got too cozy with Atlanta-based soda giant Coca-Cola in designing programs to fend off child obesity. Solution she came up with, Power Up for 30, part of broader program called Georgia Shape, called for schools to give their students 30 minutes a day of exercise and it was almost entirely funded by Coke. As a top national public official now, "she finds herself facing a backlash from public health advocates for having accepted $1 million to fight child obesity from a company experts say is a major cause of it," argues article. "Her new position puts her at the helm of a federal agency that shook off its ties to the soda giant in 2013, after concluding Coke's mission was at odds with its own." Times says Fitzgerald "suggested" in emailed response to its questions that she would consider accepting KO money for CDC programs. Article can be read here:

Aspire, Twin Cities-based sports drink that at one point seemed to be generating momentum in Upper Midwest, apparently has closed down. Brand had been founded 5 years ago by pair of self-ascribed "hockey dads," John Montague and Jesse Parker, who didn't like sports drink choices available to their kids, and began by building base among local pro athletes and regional Target stores, showing enough promise for investors to seek seasoned bev pros to continue effort. Over past year or so, pair of well-known new-age vets, who requested anonymity, were in discussions to jointly take over day-to-day mgmt of Edina-based co as condition of new round of capital, but talks apparently didn't pan out and both have ended up elsewhere now. Call placed to Montague this morning hasn't immediately been returned.

Center for Science in the Public Interest, which has wielded strong, if controversial, influence in food/bev marketing, said Dr Peter Lurie has been named exec dir and prexy, succeeding Michael Jacobson, who cofounded CSPI in 1971 and will now serve as senior scientist and board member. Lurie was most recently associate commissioner for public health strategy and analysis at the FDA; earlier in career he served as deputy dir of Public Citizen's Health Research Group. Lurie would have been ensconced at FDA during congressional hearings on energy drinks, when agency didn't buckle to pressure from legislators to deem caffeinated bevs a medical hazard. Furor eventually died down after energy drink players made handful of concessions such as not to market overtly to kids. In another move at CSPI, Margo Wootan has been promoted to newly created post of vp for nutrition after serving as dir of nutrition policy.

Fast-growing Core Water has broken its first major campaign, enlisting Brit-born singer/songwriter, fitness devotee and fashionista Ellie Goulding to support notion that line enables one to "Be true to your core." Launch comes as brand essentially has full national coverage, much of it via Dr Pepper Snapple DSD network (BBI, Jul 14), with Target, CVS and Walgreens among retailers that have taken brand chainwide.

For years a mainstay on DSD delivery in NY metro of perishable foods and bevs, Dora's Naturals continues to broaden purview, moving to launch full-scale copacking capability while taking incubation role with broad range of early-stage brands. Meanwhile, it continues to pick up intriguing new brands, both shelf-stable and refrigerated, stoking healthy rivalry with Rainforest and handful of other refrigerated players in metro area and ambient houses like Big Geyser. So far this summer, Dora's has added well-funded Ripple pea-based protein line, Vita Coco's coconut milk, Forager line of plant-based bevs, GoLive probiotic powders and bevs, and Sunniva and Limitless RTD coffees. In coverage, it's added fresh cases of region's Target stores as well as expanded biz base at Whole Foods. Here's rundown from visit yesterday with ceo Cyrus Schwartz and his right-hand man, biz development vp Chris Psuik, at Dora's S Hackensack, NJ, hq, in Meadowlands area. Quick tour revealed sophisticated, high-touch distribution operation, with each individual store order - from bevs to sushi and sandwiches - assembled on separate pallet and expansive flat screens offering live tracking of co fleet along with crucial info to retailers such as temperatures being maintained on board. Dora's, recall, is part of cluster of family businesses that have included Steuben Foods, a major aseptic processor in western NY; Mountainside Farms and venerable Elmhurst Dairy, which shut down in past year and has tilted brand toward nutmilks produced out of Steuben. Cyrus' father Henry runs those independently. Among family lore, Henry's grandfather walked a herd of cattle he'd purchased in Manhattan across newly constructed Williamsburg Bridge in first decade of 1900s en route to establishing Elmhurst Dairy in Queens. So this is family with deep roots in city.