Beer Marketer's Insights
Ripple Foods, which has captured lotsa buzz for its efforts to harness pea protein in drinkable milk alternative, is hitting array of East Coast retailers as it moves east from its West Coast base. ShopRite chain has authorized all 4 flavors, and Wegmans also has picked it up. Ripple has entered Whole Foods stores in Mid-Atlantic stores as well as Mass and Fresh Market stores from Midwest on east. Meanwhile, out west, brand has entered Natural Grocers stores west of Mississippi River and Safeway, Albertsons and Lucky's stores in Colo. Ripple is based in Calif's Bay Area.
Once-stingy Dr Pepper Snapple Group has closed on extraordinary deal to purchase Bai Brands for $1.7 bil. "The Bai team has fostered a passionate, winning culture while hitting the bull's-eye in meeting consumers' needs for better-for-you beverages," is rationale of prexy/ceo Larry Young. "Now that they're part of the DPS family, we're going to let them continue to fly and build on the entrepreneurial spirit that's driven their success while providing them access to the full complement of Dr Pepper Snapple's resources and capabilities." Plan is for Bai founder Ben Weiss and his leadership team to remain in place - tho there apparently are no financial strictures keeping them tethered to mother ship - while continuing to operate independently from hq in Hamilton, NJ, near Trenton, as part of part of DPS' Packaged Beverages segment overseen by Rodger Collins as prexy. Move comes as co has been seeking to build anticipation for Super Bowl ad this Sun that features its new investor and "chief flavor officer" (and one-time Pepsi endorser) Justin Timberlake along with unidentified "surprise special guest." Bowl buy is upgraded from last year's 3-market regional buy to full national buy. Spot was created by in-house creative team led by chief creative officer Chad Portas, apparently with plenty of input from Timberlake. Co's cmo is Michael Simon. Last year's ad, recall, was somewhat controversial effort featuring stereotypical chain-decked Jersey guy playing a horse whisperer.
Bev Buzz Survey Pegs Bev Sales Gain at 4% in C-Stores in Q4; DPS Outperforms; Monster Up Just 2%
Total bev sales rose an estimated 4% in Q4, based on survey of over 15K c-stores across US by Wells Fargo Securities. Non-alc bev sales were up 3%, led by "top-growing categories" including bottled waters, flavored CSDs and energy drinks, wrote Bonnie Herzog, sr analyst there. Gain in Q4 was "significantly below recent trends and last year's exceptional growth of 8% - driven by lower promos, worse weather" and other factors, including "negative impact" of election dragging down foot traffic, added Bonnie. "Overall we believe the risk/reward for most beverage manufacturers and c-stores is slightly negative given the sequential slow down and macro factors that weighed on sales this quarter" she noted.
Minute Maid is aiming for exotic with latest flavor additions to its refrigerated juice/drink line: Lemonade with Mint, Spicy Watermelon Lemonade, and Peach with Ginger Juice Drink. They're going out in brand's 59-oz straightwall multiserve jugs, using PlantBottle format employing up to 30% plant-based material . . . Red Bull North America is expanding its 4-year-old flavored "Editions" with 2 sugar-free entries, Purple (acai berry) and Lime (limeade), while converting last summer's popular limited-time offer Kiwi Twist to permanent status as Red Bull Green Edition (with kiwi apple flavor). They're going out at SRP of two 12-oz cans for $5.33.
The man himself may have recused himself from the day-to-day in recent months, but Bruce Cost Ginger Ale continues to move forward, finally releasing stevia-sweetened zero-calorie version that retains the fresh ginger that customers have come to expect. New Sugar Free entry clocks in at just 5 calories, joining "66" monk fruit-sweetened mid-calorie entry that will be retained in lineup as way to offer customers greater choice, BCGA prexy Terry Tang said at show booth in SF last week. Like rest of core line, Sugar Free is packed in 12-oz longneck clear bottle. Addition comes as brand continues to land significant new retail accounts, with Sprouts Farmers Market natural chain picking up Original as well as canned Ginger Beer last summer, and Wegmans chain picking up Original, Blood Orange and 66-calorie sku's, per marketing mgr Kevin Li. Brand hits Cracker Barrel chain next week. As for Cost himself, the Asian cooking authority is still involved in innovation activities and serving as face of brand, but he's eased back in recent months, leaving more business-oriented tasks to his partner Tang. Recall that superpremium soft drink line with rich ginger content was outgrowth of popular house-made ginger ale that Cost and his partners at Lettuce Entertain You served for years at Big Bowl eateries in Chicago.
Count Super Bowl frenzy among Fiji Water's new marketing platforms this year: premium bottled water brand is about to air its first Super Bowl commercial, reprising atmospheric spot that romances lush natural origins of "earth's finest water." Spot from The Wonderful Co's in-house creative team encloses imagery of Viti Levu island within distinctive shape of Fiji bottle, contrasting it with surrounding dreary urban imagery. It's slated to air in 3d qtr, per Adweek. It's not new creative devised for Bowl, as link contained in announcement was uploaded to Youtube back in Feb 2015:
Coca-Cola/Dunkin' Donuts coffee collab seems to be hitting store shelves to receptive crowd, with surprised shoppers who've just encountered new RTD brand offering social media exclamations like, "THIS IS A THING? OH GOD YES." Enthusiastic encomiums were reprised in TheStreet.com story, under not-quite-grammatical head, "Social Media Goes Nuts as They Stumble Over Dunkin' Donuts First Ever Bottled Coffees." On Dunkin's home turf, New England, elle_goody88 posted pics of what seem to be at least 4 side-by-side standalone cardboard racks filled with the stuff at local Stop & Shop with comment, "#dunkindonuts has upped their game." Of course, some in bev biz have been wondering for years when logical counterbalance to Pepsi/Starbucks RTD coffee hegemony would appear; partners announced deal last fall and Coke showed prototypes at its booth at NACS c-store expo in Oct (BBI, Oct 20). It's out in Original, Espresso, Mocha and French Vanilla flavors, in plastic bottles prominently sporting Dunkin's orange and pink logo. Judging by initial reaction, could be smooth ride for long-awaited launch.
Having adopted soda tax in 2012, French gov't has upped ante in its anti-obesity crusade by banning free refills of sodas and other sugar-sweetened bevs. Law was announced Fri and took effect immediately, per NY Times report, which reviewed history of anti-obesity efforts that included banning of vending machines from schools in 2004 and limiting servings of French fries in schools to once a week. Story noted that French consume fewer soft drinks per capita than most countries, tho obesity rate has been rising and gov't is concerned to "limit, especially among the young," the risk of obesity and diabetes. Foreign-based fast food chains seem to be main target of new law.
Alkaline water brand Aquahydrate has undertaken a staff consolidation as it narrows focus to most productive channels and geographies while preparing for first sustained marketing push this spring under a cmo, its first, who's to be intro'd imminently. Hal Kravitz, ceo of LA-based co, yesterday confirmed layoffs, after cutback reports began circulating thru trade last week once displaced employees sent out resumes seeking new gigs. Tho that prompted speculation that money had gotten tight, Hal said that was anything but the case. Rather, it reflected strategic deep dive at time co needs to dial up marketing and stop being all things to all people, Hal indicated. "We're reallocating resources so we can unleash the marketing beast," is how he put it. Kravitz said key investors, including Yucaipa magnate Ron Burkle, hiphop/fashion mogul Sean Combs and actor/producer Mark Wahlberg, remained strongly committed to brand. He stressed that none of layoffs reflected employee's performance issues, just need to rebalance staffing to support most productive avenues for brand. Kravitz confirmed that those who've moved on include 3-year Aquahydrate vet Al Hermsen, a former DPS exec who'd been serving as vp natl sales/channel strategy; his departure allows co to flatten org to be closer to street, Hal indicated.
First proposed state tax hike of 2023 is a doozie, taking toughest stance endorsed by public health advocates to set a "flat 25-cents-a-drink" rate, as Albuquerque Journal described. Bills intro'd last wk aim to raise tax rates to a quarter per 12oz of beer, 5oz of wine and 1.5oz of spirits, regardless of producer. That's a jump of around 525% from around 92 cents per case to $6/case on most beer. Most wine would see rates jump 376%, while spirits rates would jump 352%. The bill would also wipe out current tax benefits provided to small producers, which would see much sharper increases in applicable excise tax rates if the bill passes. For instance, small brewers that currently benefit from rates as low as 18 cents/case would see rates jump by over 33x.

