Beer Marketer's Insights

Beer Marketer's Insights

Monster Beverage confirmed to trade partners that innovative noncarb enhanced water dubbed Monster Hydro won't launch until May 22. Letter dated Fri from chief commercial officer Emelie Tirre to Coke bottlers and retailers cited retailer acceptance that's exceeded expectations and complexity of offering new product in new package utilizing new production system for delaying launch until May 22, when co hopes to have produced adequate inventory to support launch. Recall that Hydro is among flock of bevs launching in North America that employ can with clear-plastic body. Wells Fargo analyst Bonnie Herzog, who's close to c-store channel, had first reported delay late last week (BBI, Mar 31).

Maybe you can't guide your company just by what consumers spout off to you in focus groups, but what High Brew mgmt team heard during recent sessions "opened our eyes," recalled founder David Smith, in recent conversation as co came off sampling drastically revamped entries at Expo West. About one-third of members of taste panel assembled behind 1-way mirror were scathing in their assessment of trio of High Brew items that, in truth, contained just a hint of natural sweetener, in effort to nudge calorie count down to 60 calories or less per 8-oz can. That prompted rethinking of calorie/sweetener matrix, and High Brew ended up ditching stevia, at tradeoff of having calorie count rise to 90 calories per can in affected flavors, Mexican Vanilla, Salted Caramel and Dark Chocolate Mocha. Note that's still well below caloric load of brands like Starbucks Frappuccino and within "portion control" limit of 100 calories that's proved a winner for marketers of conventional CSDs. To overcome any lingering skepticism of flavor among consumers, Austin-based co will embark on "High Road" summer campaign that will get samples out to consumers at retail partners, events, college campuses and corporate venues where workers may be seeking new option for afternoon pick-me-up.

Stuck at impasse over financing, organic soda marketer Veri Soda Group apparently shut down this past weekend. Its operating subsidiary Veri Soda Co was building mid-calorie, organic soda brand (BBI, Oct 2 2013) that had maintained presence at select grocery chains like Kroger and Harris Teeter, under sales/operations effort of new age vet Michael J O'Donnell, who'd stepped into ceo role a little over a year ago (BBI, Jan 4 2016). But word on street was that brand's founders and its Dutch investors couldn't agree on strategy moving forward, despite effort by Richmond, Va, ad agency Martin Agency to step in with additional financing and more robust marketing plan, and decision was made to discontinue effort. Email sent out by board on Sat notified trade partners that, "Notwithstanding the board's endless efforts, we very much regret to inform you that The Veri Soda Group has proven to be no longer financeable. As of today the group and its subsidiary The Veri Soda Company will cease to do business." Michael confirmed authenticity of email, saying it was unfortunate that co "went quietly into the night" despite encouraging signals from retail partners. O'Donnell, a vet of Anheuser-Busch, Nestle Waters and Mountain Valley Spring Water, said he wasn't ready yet to discuss his own future plans. It's of course possible that trademark and recipe may resurface in future, but right now promising take on CSDs will be exiting store shelves. They were available in 12-oz cans with eye-catching graphic treatment in flavors that are most appealing to conventional CSD drinkers, Cola, Ginger Ale, Lemon Lime and Orange.

Flush with $17.5 mil in new financing, New Age Beverages is continuing aggressively with its rollup strategy, now notching acquisition of struggling CocoLibre coconut water brand, even as it took expected step of formalizing acquisition of Marley stable of brands, including Marley Mellow Mood relaxation line and Marley One Drop RTD coffee brand.

Danone said it plans to sell its $370 mil (sales) Stonyfield Farm unit to facilitate regulatory approval of its $10 bil acquisition of WhiteWave Foods. After reaching agreement in principle with US Justice Dept, Danone hopes to close on deal promptly, French co said . . . Stumptown Coffee has taken its popular Holler Mountain organic coffee blend and offered it as a RTD cold-brew in its familiar brown stubby glass bottles. Refrigerated line made from blend of Central and South American, East African and Indonesian beans is available at Stumptown's own cafes as well as some outside retailers. It follows a vegan-friendly cold-brew using coconut cream instead of dairy, packed in co's 16-oz gabletop cartons . . . Cuvee Coffee's crowler saga seems to be nearing an end: under pressure from gov't allies of Austin roaster, Texas Alcoholic Beverage Commission released $3K crowler machine back to Cuvee, after confiscating it for being used for beer as well as co's cold-brewed coffees. Issue had b

Nestle Waters North America has teamed with Crayola crayon brand on Share-a-Smile campaign this spring that brings to market another set of 8-oz bottles featuring labels designed by kids in contest last year. Parents had been asked last summer to have their kids draw what makes them smile, with winning entries from nearly 2K submitted getting $25K scholarship and other prizes. Kid-Designed Edition 24-pack featuring winners hit store shelves on Feb 15. Support for campaign includes national FSIs, digital and influencer campaigns and national tour of the Share-a-Smile studios, stopping at 15 community fests and retail stores with full suite of Crayola items and green screen that allows kids to be inserted into the art they create there.

Tho it's moved to eliminate ingredients like HFCS and artificial flavors from its bottled drink offerings, Panera Bread hasn't yet made much headway on making comparable changes to its fountain offerings, as co acknowledged to BBI a few weeks ago (BBI, Feb 6). But fast-casual chain seems to be turning more attention to that format now, by posting calorie counts on its fountain units that highlight difference vs Panera's own moderately sweetened teas, lemonades and frescas that it's introducing. "By prominently posting added sugar content and calorie information on the self-serve spouts of all beverages for comparison purposes, and publicizing that move, Panera aims to underscore its clean brand promise, transparency and championing of consumer 'options,' while also promoting its new beverages' healthier profiles versus high-sugar-content sodas," noted MediaPost in report on initiative. Panera heralded development in part with full-page ad in Washington Post headlined, "You deserve to know what's in your cup."

Vita Coco may be going bigger on media spend this year but it seems to be sticking with effort to remind consumers of how simple its coconut waters really are. New TV spot features supermodel Chrissy Teigen snoozing in beach chair under coconut tree while serving as "plant manager" for brand. "When one of the coconuts falls from the tree, Teigen pats the trunk approvingly and praises it as 'employee of the month,'" Adweek reported. Nice work if you can get it! Word of ad comes a few weeks after Bloomberg had reported that co had mustered $25 mil for ad campaign for this year, its biggest spend ever. Teigen ad shot on beach south of Miami by creative shop Madwell is set to debut on Apr 4 on major broadcast networks and cable channels like AMC and Bravo. It concludes with title and voiceover assuring viewers that with Vita Coco, "Hydration comes naturally." As Adweek notes, Teigen had worked with brand last summer in more improvised Snapchat campaign.

NY's Elmhurst Dairy, which cited longstanding declines in announcing shutdown last fall after 80+ years of operation in Jamaica neighborhood, has reinvented itself as purveyor of nutmilks cold-milled from almonds, hazelnuts, cashews and walnuts, under shorter brand name Elmhurst. "All of the nuts, none of the nonsense!" herald marketing materials for brands that make much of high nut content in products (8 walnuts in every glass, 11 cashews, 18 almonds, 11 hazelnuts). Thus, almond entry is able to boast of offering 5 g of protein per 8-oz serving. New line that debuted at Expo West is packed in 32-oz gabletop cartons that eschew use of the descriptor "milk" in favor of "milked almonds," "milked cashews," etc, given dairy lobby's recent assault on word's use in plant-based bevs. Like others among latest crop of nutmilk players, Elmhurst assures consumers it avoids use of thickeners, emulsifiers or stabilizers, another perceived vulnerability in some of leading brands, along with their low nut content. It's operating as Elmhurst Milked LLC with website at Elmhurst1925.com that flags founding date of dairy. Elmhurst, operated by Schwartz family, is affiliated with Dora's Naturals DSD house in NY as well as Steuben Foods copacker in upstate NY.

Argo Tea used Expo West to launch cold-brewed version of the Garden Direct single-estate line it had debuted last summer. Bottled line, packed in same 13.5-oz glass bottle as core RTD line but sporting medallion image of Garden Direct loose teas, will debut in limited pilot launch in early fall in trio of "subtly sweetened" entries: Darjeeling Black Tea (from Indian grower Ambootia), Gyokuro Green Tea (from Japan's Yamaguchi Tea Estate) and Armenian Mint Herbal Tea (using mint grown in Armenia's Ararat Valley). All 3 come in at 30 calories per bottle. They're line-priced with Argo's core Signature RTD line, said marketing vp Mike Ginal. Recall that superpremium Garden Direct line had debuted late last summer in sachet format, priced at $10.99 per 15-unit pack vs $7.99 for Argo's premium line (BBI, Aug 16), and added loose teas by end of 2016. Those loose teas are listed on Argo's website at prices from $10.95 per canister to as high as $40 (for likes of Gyokuro and Jasmine Pearls). With takeup of Garden Direct brisk both online and in Argo's cafes, it's time to think about RTD entries, Mike indicated. While we're seeing quite a few cold-brewed teas entering market, Ginal noted that caliber of Argo's single-estate ingredients justifies elaborate process.