Beer Marketer's Insights

Beer Marketer's Insights

Ingredients supplier TruVibe Organics has entered bev biz with 4-flavor Eat Clean line of meal replacement drinks that include range of plant-based ingredients such as pea protein and mushroom extracts to offer complete nutritional package for on-the-go consumers. The HPP-produced items packed in 12-oz plastic bottles sporting 75-day shelf life offer 15-19 g of protein and 4-5 g of dietary fiber, among other essential nutrients. The vegan, non-GMO lines goes out at $5.99. The bevs are intended to offer combined benefits of green juices, protein shakes and kombuchas, said Anand Dani, LA-based cofounder who'd operated ingredients co for some time and is able to draw upon long-established relationships with growers around world. His cofounder, Jason Dekker, comes out of biotech biz and is based in Sparks, Nev. Eat Clean launched in Sep, and by now has entered Sprouts Farmers Market chain, Whole Foods' Southwest region and Texas grocer HEB as co focused for now on Calif and Texas. It started with broadline distributor KeHe to service Sprouts, has since added UNFI and claims some smaller DSD shops as well. The products are mfd in Southern Calif.

Pepsi Bottling Ventures suffered incursion by hackers who made off with modest amount of customer data, per notification letter it sent to consumers that was reported by outlets like Cyber News. It said unknown party accessed its internal IT systems on Dec 23, installed malware and downloaded consumers' names, addresses, drivers licenses and other data, breach that megabottler only discovered on Jan 10 . . . Echoing move by Berkeley, Calif, in 2020, city of Perris, Calif, last night passed ordinance effective Jul 1 that "will require grocery stores in the city such as WinCo Foods, Walmart and Dollar General to swap out soda, chips and cookies at check-out aisles with healthier alternatives such as fruit, nuts, seeds, seltzer, and other low- or no-calorie drinks," as Center for Science in Public Interest rep

Plantmilk player Malk Organics said it's landed all 1,300 Publix stores, with its Unsweetened Almond, Vanilla Almond and Oat Original items in refrigerated section of stores in Southeast hubs like Miami, Atlanta, Tampa and Orlando. To support launch, Austin-based co will unleash its new Farmer's Market 30-second ads in Miami, Tampa and Jacksonville via Amazon Prime, Hulu, YouTube TV and other streaming services. Campaign, recall, unstintingly takes aim at bigger players with more questionable ingredient lists than Malk's clean labels (BBI, Jan 25) . . . After getting started in SoCal a year ago via natural-channel partners like Erewhon, Bristol Farms and Jimbo's, Wild Wonder has made entry into conventional grocery via Vons' Pavilions banner . . . BLK water line has signed with Great Basin Beverage, giving it coverage across Nevada.

Genius Juice owner Alex Bayer's viral post about distributor KeHe's shortcomings that we highlighted yesterday has drawn quick response from broadline giant: Alex reported last night that he got email from sr category mgr there to set up urgent Zoom call with 7 upper-mgmt execs at KeHe. "We spent about 40 minutes discussing the challenges and I didn't hold back on what we have been going through as a brand at Genius Juice. I let them know about the unfair freight charges with no response from their team, the large mysterious chargebacks, the 2% being taken for payments coming in 40 days, the over- and under-ordering with their buyers where we constantly need to remind them on how to order our product every week." He added: "To give credit where credit is due, they sat and listened intently, they confirmed they hear me loud and clear, and are now taking steps with appropriate departments to try and resolve these issues . . . My only hope is they are now aware how many brands/founders are getting crushed by their business model." Bayer said his post drew 150+ LinkedIn direct messages, along with private text messages from brand owners who've been fuming over same issues.

Riding wave of momentum after forging partnerships with Alaska Airlines, SoulCycle and CorePower, Boxed Water Is Better has strengthened its mgmt team with key hires in areas of marketing, ops and production planning, a dozen new staffers all told. Aboard in Dec as marketing vp at Holland, Mich-based co is Kavita Shah, who brings experience from Dyson, Godiva and several early-stage cos. She joins other newcomers like ops dir is Rick Kulas, aboard last summer after bev-related runs at Nestle Waters and Reyes-owned Great Lakes Coca-Cola.

As it builds out massive coffee hub in Arkansas, Westrock Coffee has expanded credit available to it via $350 mil credit deal that establishes a new class of incremental term loan commitments in form of senior secured delayed draw term loan credit facility in aggregate principal amount of $50 mil. Interest rate is unchanged from that of existing term loan. Expanded credit facility provides WEST "with increased financial flexibility as we pull forward production capabilities at our extract and ready-to-drink facility in Conway, Ark, and gives us more dry powder as we continue to execute our growth strategy over the coming years," said cfo Chris Pledger. Deal was completed via existing bank syndicate led by Wells Fargo . . . Unable to hang on to its Nasdaq listing, Reed's Inc has transitioned to OTCQX US Market operated by OTC Markets Inc, the Conn-based marketer of craft sodas announced. It had been scrambling to meet a Feb 13 deadline to get back into compliance with Nasdaq listing requirements. "After evaluating options to achieve compliance with the minimum stockholders' equity rule, Reed's board of directors determined that moving to the OTCQX was in the best interests of Reed's and its stockholders, in lieu of launching a dilutive capital raise," issue that's rankled investors in past given co's frequent issuance of new equity. Meanwhile, to fund its operations, co has closed on bridge loan with Whitebox Advisors LLC for net proceeds of about $2.5 mil at 10% coupon rate and Jun 30 maturity, with no prepayment penalty. Co is aiming to get cash-flow-positive later this year, eliminating need to go to well for financing. It will continue to report publicly.

Uncle Waithley's Vincy Brew - whose not-so-secret weapon in ginger beer category's intensity arms race is notorious Scotch Bonnet pepper - has launched crowdfunding effort on StartEngine to build on rapid expansion thru Whole Foods' Northeast region. Operating as Uncle Waithley's Beverage Co, Black-owned co is seeking a bit over $1 mil at valuation of $8 mil.

Betty Buzz, bottled alc-alternative line that's been off to a brisk start since 2021 launch by actress Blake Lively, seems to be building impressive head of steam. After selling 5 mil bottles in first full year, it's cracked its first major on-premise partner, Yard House chain operated by Darden restaurant group, even as its homespun video ads seem to be gettin' a free ride on big platforms like Today Show.

Athletic Brewing's $50 mil minority stake from Keurig Dr Pepper came at valuation of "just under $500 million," with sales up nearly 70% in 2022 to over $60 mil in revs. Those are among intriguing nuggets in lengthy Forbes cover story (subscription) profiling the NA beer darling. Implies KDP got slightly above 10% equity in previously unidentified stake. Plus "heady valuation" of ~8x revenue, according to "sources close to the deal." But recall, no pre-ordained path to ownership, even as KDP gets seat on Athletic's board and "right of first offer" in any liquidity event. Tho it's still in investment mode, Athletic is aiming to be cash-flow-positive by year-end.

CSD volume was off just 0.1% for last 4 wks thru Jan 14 in Nielsen all-channel data reported by Morgan Stanley's Dara Mohsenian. For most part, bev trends improved over 4-wk period, getting away from timing issues around holidays, noted Dara. With Coca-Cola and Dr Pepper Snapple discounts going deeper, CSD pricing was down to avg gain of 0.2% last 4 wks, tho, vs +0.4% for 12 wks, +1.5% for 52 wks in all-channel. Coca-Cola's CSD volume gain accelerated to +2.7% last 4 wks (up from +1.3% for 12 wks) as avg prices dipped lower to -0.9%. PepsiCo volume slipped 4% last 4 wks (in line with its 12-wk avg) as avg prices climbed higher to +1.5% in all-channel stores. DPS volume improved to 3.1% gain (up from +2% for 12 wks) with boost from avg 1.7% price decline last 4 wks. No improvement in private-label brands as volume slipped 6.9% for 4 wks even as avg prices eased to +1.1%, down from +1.6% for 12 wks and +2.5% for 52 wks.