Beer Marketer's Insights
Almondmilk player Califia Farms set stage for opening of Natural Products Expo West today by announcing avalanche of new items, including first USDA-certified organic items and invigorated effort to offer protein-rich entries.
Tho chmn/ceo Indra Nooyi has continually emphasized that PepsiCo is only in market for modest, "bolt-on" acquisitions, 2 Brazilian newspapers have reported it to have bid to acquire dairy producer Vigor for price as high as $1.9 bil. Current owner J&F Investimentos hasn't agreed on value of deal and has solicited offers from other potential buyers like Parmalat marketer Lactalis, Reuters reported today. Mexico's Grupo Lala also is rumored to have been in the mix of potential acquirers and J&F may also go IPO route to monetize holding . . . PepsiCo's Tropicana unit is unveiling new national TV spot touting new probiotics-infused juice line, MediaPost reported. Tagline, "Feel Like a Billion," flags 1 bil live and active cultures contained in 8-oz serving of OJ extension, which debuted last fall at NACS c-store show. Spot via agency BBDO opens with iconic theme from 2001: A Space Odyssey as voiceover intones, "Introducing Tropicana Probiotics," as "a robed and somewhat disheveled-looking woman in her kitchen reaches for a bottle from the new juice line," per MediaPost. She then grabs her keys and purse eager to start her day before realizing that she still hasn't washed up and gotten dressed.
Former ecommerce entrepreneur named Adam Stites operating as Mirth Provisions is building cannabis-based biz featuring line of sparkling, fruit-infused bevs called Legal and sublingual spray called Drift. On bev side, drinks employ broad range of active cannabinoids, including THC and CBN, with each flavor offering different kind of lift, via different blend of sativa, indica and hybrid cannabis. Prices start at $5 per 11.5-oz bottle for recipes containing 10 mg. (They range up to 80 mg.) By offering all-natural recipes, Stites aims to set premium tier above that occupied by Venice Cookie Co's Cannabis Quenchers, Calif-based brand which uses citric acid and artificial preservatives. So far, Stites says, plan is working, with Legal outselling Quenchers in Wash and Ore. To date, the bevs can only be sold in licensed marijuana retailers, not at general retail, even in states where weed has been legalized. That means consumers have to shop at stores with names like Ruckus, Uncle Ike's, Hashpipe, Ponder, Pot Stop and Have a Heart, not old-fashioned monikers like Safeway and QFC. To gear up efforts, Stites raised $2 mil in Series A round last Nov, drawing upon range of unidentified private investors rather than institutions. He noted that institutional fervor for the category seems to have waned considerably with incoming administration in Washington, whose direction issue is far from clear and whose chief law enforcement officer, AG Jeff Sessions, may have other priorities currently.
Looking to offer its target consumers a hands-on experience, Juicero is installing its countertop cold-press juicers at self-serve bars in 11 Whole Foods stores in Southern Calif, LA Biz Jnl reported. Each location will offer 4-7 of Juicero's organic blends from among array that includes Sweet Greens, Greens, Spicy Greens, Green Zing, Beta Glow, Root Renewal+ and Sweet Roots, priced at $5 per glass. Stores will carry 1-3 of the units, whose price was recently dropped nearly by half, as LA-based co seeks to stimulate purchases. Campbell Soup and First Beverage Group are among investors in concept.
PEOPLE: Yerbae Brings Aboard New Age Vet Blair to Run Sales; Assembles NorCal DSD Network
Yerbae Enhanced Sparkling Water, sparkling yerba mate line launched last fall by new age vet Todd Gibson and his entrepreneur wife Karrie (BBI, Sep 16), has recruited longtime altbev sales specialist John Blair to team, taking evp sales slot. Move comes as Phoenix-based brand has been signing its first DSD distribution partners, focusing on Calif's Bay Area for now with mix of houses that includes Morris, Saccani, Varni and Humboldt. Todd told BBI brand is on track to exceed 84% ACV in region within 90 days as key grocers like Raley's, Lucky SaveMart, Safeway, Molly Stone's and Andronico's come aboard. Tho Gibson himself has carved out career mainly on sales side - working for Blair twice in his career, at SoBe and Fuze - he said Blair brings range of contacts and insights that should prove invaluable. Zero-calorie Yerbae, made with yerba mate, white tea extract and guarana, and priced at $2.29 per 12-oz slim can, is aiming to find niche between functional brands and sparkling waters, dodging promotional pressures of latter category. Gibson hopes to have announcements soon on DSD partners in other regions like Pac NW. Info at Yerbae.com.
Tech Difficulties, Warm Winter, Refugee Promise All Considered Reasons for Starbucks' Share Slip
Starbucks share of customers among U.S. restaurants fell from 12 to 11 share in Feb, per xAd Inc. research, reported Bloomberg. xAd Inc measures customer traffic patterns using location signals from mobile phones. SBUX shift to mobile orders had glitches and those "operational issues may be keeping people out of the store," said Bloomberg Intelligence analyst Jennifer Bartashus. Another possible factor was SBUX announcement it would hire up to 10,000 refugees over next 5 yrs. That "could have upset some customers, perhaps negatively impacting sales," said Credit Suisse Group analyst Jason West," who tracked a "sudden drop in brand sentiment" for SBUX following Jan 29 announcement. Also, an "unseasonably warm winter across much of U.S. is providing a challenge to coffee sellers," noted report, with IRI reporting retail/grocery sales off 2.7% in Jan, 1.3% in Feb.
Energy drink volume gain pace slowed a bit, to +2% (down from +2.3% for 12 wks) last 4 wks thru Feb 25 in Nielsen all-channel data reported by Wells Fargo Securities' Bonnie Herzog. Avg prices improved from small decline (-0.3%) for 12 wks to +0.8% last 4 wks. Monster Energy and Red Bull trends improved while Rockstar was flat and private-label brands took steep dive on mid-single-digit price hikes.
Runa Seeks CEO as Co-Founder Gage Emphasizes Sourcing, Foundation Roles; Will Serve as Chmn
Runa cofounder/ceo Tyler Gage - pegged with his cofounder Dan MacCombie as bright light among young entrepreneurs by Richard Branson in his latest book - is cutting back his involvement in NY-based co after opting for lifestyle change that's sent him and new wife out to Seattle area. Now based in Bellingham, "after commuting back and forth to New York for the last few months I've decided to transition my role from ceo to chairman, so that I can continue to focus on the bigger-picture strategy, brand story, sourcing, etc., that I'm best at, and bring in a new ceo who can run the business day to day," Ty explained to BBI. He emphasized that he'll still be spending most of his time on Runa biz, but better balanced between operations and foundation sides, and will continue to serve as face of brand to the trade and to manage operations in growing region in Ecuadorian Amazon basin for core ingredient, guayusa. Members of Runa team and its investors have been reaching out quietly in recent weeks to potential successors as ceo.
Dallas-based Rocky Mountain High Brands has signed deal with L&H Resort Systems to acquire natural spring and plant sited on former Catskill Mountains resort in upstate NY for use as bottling and canning plant for its bottled Eagle Spirit Spring Water, range of 5 canned hemp-infused flavored bevs and branded bottled water . . . Santa Fe, NM, has become latest municipality to move toward levying soda tax, with city's public works committee moving on, by 3-1 vote, a bill proposed by Mayor Javier Gonzales to charge 2-cents-per-oz tax on sodas, sweetened teas and other sugar-sweetened bevs, per Santa Fe New Mexican and other local reports. Using playbook that's worked in other cities, Santa Fe would employ proceeds to fund early childhood education programs, with mayor estimating that 1,200 kids age 3 and 4 would be able to attend free programs as result. "This is a go-big moment in Santa Fe," he had declared upon first proposing tax last fall.
Big kahuna of natural foods, bevs and personal care items, Natural Products Expo West, opens this Thurs in Anaheim, with exhibitors at Anaheim Hilton and Marriott hotels, followed on Fri by main exhibition halls at Anaheim Convention Center. Main halls are open thru Sun. With estimated 300+ bevcos exhibiting at Expo, BBI can't promise complete coverage, but we hope to bring you some coverage. Registration and other info at ExpoWest.com.

