Beer Marketer's Insights

Beer Marketer's Insights

Grappling with undisclosed issues in assembling its annual 10-K filing, Reed's Inc has once again pushed back its earnings release and conference call, now scheduled for Mon afternoon. Call had been set for this past Mon, then moved back to this afternoon before latest postponement. Under pressure from some dissident shareholders, REED's has renovated its board and promises on call not just to present financial results but also "to discuss the initiatives enacted by the recently elected board of directors to drive shareholder value" . . . Investors bridled as Danone said it would immediately consolidate sales of its newly acquired WhiteWave Foods unit, prompting suspicion that the resulting apples-to-oranges comparisons are intended to obscure anticipated weak performance of core dairy biz. "By immediately incorporating WhiteWave into its like-for-like sales reporting, Danone is deviating from standard practice of doing so after the first 12 months of a takeover," Bloomberg reported. "Some analysts said the decision obscures the performance of Danone's dairy business and shows the company isn't confident in the sales outlook" . . . Jones Soda scored a regional coup for its cane-sugar-sweetened fountain program, winning about 400 7-Eleven stores in Pac NW as customers for its Green Apple flavor, being served as a Big Gulp item. JSDA, of course, already has been collaborating nationally with 7-E on a line of controlled labeled bottled sodas . . . Califia Farms has extended its black cold-brew coffee to multiserve format, offering Pure Black Cold Brew in Unsweetened and Lightly Sweetened versions in 48-oz PET bottles. "With Pure Black, we are better able to better serve the one-third of coffee drinkers who prefer the great flavors of unadulterated craft coffee, something we just don't think any of the big brands are doing very well," said Brian Lovejoy, Califia's coffee gm. The entries are made from direct-trade-sourced Brazilian beans.

New Age Beverages, which has been rolling up indie bev brands, is claiming headway in seeding them among their sibling's DSD partners. By now several partners carry 4 key NBEV brands, including San Diego's Lenore, Pepsi house Mahaska Bottling and Bud houses Bill's Distributing and Lewis Bear, which all distribute co's Xing, Marley, Bucha, Aspen Pure brands . . . Miami-based Arteasan Beverages, which launched its glass-bottle, 5-calorie line last Jun, said it's won distribution thru UNFI Next, broadliner United Natural Foods' new program established to ID and grow emerging brands. To date, Arteasan Tea has entered just 300 mainly indie retail outlets thru its own efforts.

As thousands of Americans prepare to march in Earth Day events, panel of coffee experts in NY warned that climate change reps "real problem" for coffee growers, and not in indefinite future, either. Phrase was used by Tim Schilling, exec dir of World Coffee Research and one of foremost experts on coffee cultivation, at panel Tues evening that was assembled by Peet's Coffee & Tea and Conde Nast Traveler mag. Schilling, a plant breeder and agricultural development specialist by training, warned that climate change problem will hit coffee supply chain across the board: farmers, governments and roasters like Peet's. It's not abstract concern, either. Severe coffee rust blight that occurred in Central America in 2012 stemmed from higher temperatures associated with climate change, even as growers in Uganda have had to learn for first time to cope with drought conditions, currently compact localized conditions but situation that's anticipated to expand and exact "huge impact" in quality degradation and higher prices, he said. Computer modeling suggests that by 2050, fully half the land area that's now suitable for higher-quality Arabica coffee will no longer be adequate, meaning growers and their allies need to start search for new land now. Crisis is compounded by fact that Arabica coffee is relatively young species, which limits range of interventions that geneticists can employ and requires that they borrow genes from Arabica's parent, lower-grade robusto plant.

For years, efforts to link diet CSDs to adverse health effects have been inconclusive. But new study published in journal called Stroke is tying diet soda to increased risk of both stroke and dementia, saying those who drink them daily are nearly 3X as likely to get diseases as those who consume them weekly or less. "This included a higher risk of ischemic stroke, where blood vessels in the brain become obstructed and Alzheimer's disease dementia, the most common form of dementia," said lead author Matthew Pase, Boston Univ School of Medicine neurologist, per account in Washington Post. Crucially, study doesn't establish causation, just a correlation, and it may be marred by use of overwhelmingly white group of participants, per commentary by American Heart Assn. Still, Pase advises caution in consumption of diet CSDs and urges consumers not to retreat to sugary sodas instead.

Growth in non-alc bevs "remains soft" in Q1, up about 4%, based on survey of over 15K c-store retailers across US, per Wells Fargo Securities' Bonnie Herzog. That's "well below" growth of approx 8% for 2016, as it appears "relative softness in Q4 continued, based on weather, weak traffic, and increased promos in other channels," wrote Bonnie. Bottled water (+7.2%) led bev sales growth in Q1 followed by energy drinks (+4.3%), sports drinks (+2.4%), CSDs (+0.9%) and juices (+0.3%), based on survey. Among highlights we gleaned from survey, Monster Energy had another tepid performance, PepsiCo's new LifeWtr may be cutting into Coke's Smartwater and DPS' allied brands continue to gain ground. Here are some highlights from survey that's always absorbing for direct view into opinions in crucial impulse channel.

Popular spring conference hosted in Chicago in May by BBI sibling publication Beer Marketer's Insights will include non-alc session this year, with superpremium Essentia Water joining roster of beer brands like Corona, Mike's Hard, Mich Ultra, Lagunitas, Goose Island, Fat Tire and Brooklyn in program focused on high-end segments. Conference is being held May 15-16 at appropriately high-end Four Seasons Hotel in Chicago. Essentia's chief strategy officer, Neil Kimberley, will draw on his years of battling in trenches on behalf of brands like Snapple and Essentia to offer advice to NA brand owners on how to crack the coveted beer distribution network, and to beer wholesalers on how to parlay the exciting new NA brands into another profit center. The dialogues, panels and presentations will offer lots of info, insight and analysis on where the action is in beer and bevs these days. Plus we feature plenty of networking time. Click here for more info. Click here to register. Note: reserve your room before Apr 24th to take advantage of our discounted room rate at the Four Seasons.

LA Libations, the LA-based incubator in which Coca-Cola is minority investor, continues to accelerate efforts behind its own Aloe Gloe line even as it works client stable that includes intriguing canned sparkling turmeric bev called Arya (profile below), said cofounders Danny Stepper and Pat Bolden at recent Expo West in Anaheim, Calif.

Is Pepsi's faux-artisanal Stubborn Soda brand wrestling with a quality control or other issue? BBI has begun to hear sporadic reports that fountain brand's being withdrawn, tho retail accounts we've checked in with don't report any problems. "@pepsi thanks for pulling #stubbornsoda after I printed hundreds of dollars worth of menus," groused Jason Talcott, exec chef at Marriott Salt Lake University Park in Utah, via Twitter under his jtfoodguy handle. "You guys are really killing it lately." But employee at Aviator Pizza & Drafthouse in Austin, announced as new Stubborn Soda account in Dec, told us today that brand is still "going strong." No immediate response to inquiry placed with PEP this morning. For that matter, Marriott's Talcott hasn't gotten back to us with specifics either. BBI readers, if you see something, say something.

Long Island Iced Tea, which markets approachably positioned but all-natural iced teas and lemonades from its Long Island base, has recruited NY's Big Geyser as its DSD partner for NY and surrounding counties, effective next week. Move represents something of a coup for publicly traded co, given distributor's reach and track record on brands like Vitaminwater, Sparkling Ice and Monster Energy, not to mention fact that Big Geyser already is well-stocked with tea brands, having been partner of organic Honest Tea nearly from inception and picking up Argo Tea in recent years. LTEA ceo Philip Thomas called partnership "transformational in having the potential to increase our metro New York footprint by over ten times to 25,000 doors." Big Geyser coo Jerry Reda emphasized that Long Island brand fills coupla voids in tea mix and signals no diminution of effort on behalf of organic Honest Tea and artisanally crafted Argo. "Long Island Iced Tea's overall brand strategy allows us to play in a price point arena that we are not currently playing in," Jerry told BBI. "Their diet teas fill a void in our portfolio and we feel their other flavor profiles complement our existing product lines. Long Island is an integral part of our New York-based geography and the product feels right for our company" . . . Baltimore-based B'More Organic, which markets protein smoothies made from Icelandic-style skyr yogurt, continues to break out of natural/specialty channel into ranks of conventional grocers. Latest aboard, said mktg & biz development dir Amanda Sains, are Ingles Markets chain and select Weis Market and Top's Friendly Market stores, all along East Coast base. Brand had previously entered Kroger, Publix and Wegmans stores, as well as Whole Foods' Mid-Atlantic div. "Five years ago, we couldn't have imagined skipping past the natural channel and going heavy into conventional grocery," said cofounder Andrew Buerger. Co said its expansion, beyond 3K doors now, is being supported by UNFI and Southern Cross Trade Co.

Fortified with new investment from pair of strategic partners outside the mix of usual suspects, Waiakea Hawaiian Volcanic Water continues to broaden product mix, retail base and production capabilities. After 2-year effort, naturally alkaline water brand has just switched on its own 15K-sq-ft production facility near Hawaiian source, offering capacity to support 23K pallets per month, augmenting the 27K pallets that outside copacker can manage, said founder Ryan Emmons. That should see Waiakea thru needs for a while. After riding single half-liter and 1-liter rPET bottles until now, brand this spring will add shrink-wrapped sixpacks of both as well as 1.5-liter and 330-ml bottles, also rPET-based. And to offer bit of flair amid sea of shrink-wrapped water brands at retail, Emmons is putting finishing touches on printed, corrugated 6-packs with handles as novelty item, with discussions proceeding on who launch retail partner will be. That should arrive in early Q3, in time for most of summer selling season, he said.