Beer Marketer's Insights

Beer Marketer's Insights

"In the Shopping Cart of a Food Stamp Household: Lots of Soda," headlined NY Times front-pager on Sun that drew on recent USDA study that found that recipients' #1 purchase was soda, accounting for roughly 10% of their dollar spend. "In this sense, SNAP is a multibillion-dollar taxpayer subsidy of the soda industry," declared NYU prof Marion Nestle, a frequent critic of industrial food biz, referring to program formally titled Supplemental Nutrition Assistance Program. "It's pretty shocking." (We're betting she actually wasn't that shocked.) Article uses study as peg to detail efforts of food/bev players to derail various initiatives at city, state and fed level to restrict purchases of junk food and sugary soft drinks by program's 43 mil participants. "The USDA has denied every request, saying that selectively banning certain foods would be unfair to food stamp users and create too much red tape," Times reports. The USDA study notes that consumption patterns among food stamp users aren't all that different from general population, prompting ag official to shift question to whether all households are consuming too much soda. Study was drawn from data provided by unnamed grocery chain that detailed monthly purchases in 2011 by 26 mil households, including 3 mil food stamp users (tho data didn't always distinguish when a household identified as SNAP participant may have used cash to pay for transactions). Critics of USDA's policy - or non-policy - point to "commonsense restrictions" introduced to other benefit programs like WIC program targeting women and children and school lunch programs. PepsiCo, which makes both salty snacks and sodas, is identified as having lobbied fed gov't on issue in 2011, 2012 and 2013, per Center for Responsive Politics. Times story can be found here:

Monster Beverage's Mutant soft drink/energy hybrid has generated wider diversity of views than just about any new-product launch we can recall. Recall, this is PET-bottle hard-citrus entry that represents attempt by Monster to do what Coke and Dr Pepper have failed repeatedly to do over the past coupla decades: put meaningful dent in PepsiCo's Mountain Dew. It's now dubbed a "super soda" on bottle graphics, which prominently sport distinctive Monster green claw motif but not Monster name itself. Some have viewed it as intriguing initiative from innovation-biased Coke partner that, years back with Java Monster, was first to make meaningful dent in Pepsi/Starbucks hegemony in RTD coffee after many others had failed, including Coke. Others say they're not surprised at sluggish rollout so far, saying it's potentially costly diversion from Coke bottlers getting better handle on core Monster energy portfolio following transition from Anheuser-Busch network in half of US.

When Califia Farms first headed into cold-brewed coffee segment, it was as another means of using almondmilk made from produce grown by core investor Sun Pacific. That pretext was definitively dispelled this past year when, flush with $50 mil investment from PE shop Stripes Group, LA-based co brought aboard coffee luminary Brian Lovejoy, of Verve Coffee Roasters, and intro'd cold-brew line that employs no almondmilk at all (BBI, Jun 27). It's since rolled out other entries without the dairy alternative in recipe. Now co is taking complete plunge into coffee realm by opening big roastery in downtown LA as part of 2-story, 40K-sq-ft Tartine Manufactory whose Terminal St site was identified in recent days, with initial phase due to open in Oct. Roastery, which will have capacity to produce 7 mil lbs of roasted beans annually, per LA Eater, will be joint venture with Tartine Bakery, the high-profile baking operation of partners Chad Robertson and Elisabeth Prueitt. Original Manufactory is in SF's Mission District, not far from original bakery.

Coca-Cola's Simply juice brand has added pair of new flavors, both available later this month: Simply Peach and Simply Lemonade with Strawberry. They'll be offered in brand's familiar 59-oz carafe-style plastic bottle as well as 11.5-oz single-serve bottles, both featuring co's recyclable PlantBottle pack . . . Hint Water has added 1-liter PET bottle for Cherry and Blackberry flavors of its Hint Fizz subline, retaining elegant shape of single-serve half-liter bottles. "Perfect size for sharing," SF-based co says.

Austin-based Moonshine Sweet Tea, which has begun to hit the gas on national expansion under sales chief Kevin Conrad, has notched coupla solid retail wins: Kroger's Harris Teeter unit, where it's entering 220 stores, and Circle K's Gulf Coast div, including La, Miss, Ala and Fla Panhandle. Marketer of "Texas brewed, Texas sweet" iced teas also has added new distributors in its core Texas market: new house set up by Big Red to distribute its Xyience energy brand in Dallas/Ft Worth area, as well as L&F Distributing in West Texas.

In a way, PepsiCo's recent acquisition of KeVita represented return to the fold for Bob Nakasone, who'd earlier in his career spent quite a few years helping PEP build its stable of emerging brands such as Izze, ONE Coconut Water and Naked Juice. But Bob's decided to exit instead, heading to First Beverage Ventures, private equity arm of First Beverage Group, as managing dir. FirstBev founder/ceo Bill Anderson described the attraction as Nakasone's combo of nose for innovation together with operational skills. "Bob embodies a real passion for our industry and a thoughtful commitment to the growth of emerging brands, together with a deep and professional set of operational skills," Bill said in announcing new hire. Bob reinforces FirstBev team after coupla seasoned entrepreneurs, Tom First and Jason Camillos, moved on in past year or two, Tom to venture firm closer to his Boston base, Castanea Partners, and Jason to Body Armor . . . Rob Paladino, who just exited from Wtrmln Wtr, has landed as ceo of Pure Brazilian 100% Anao Coconut Water, cold-pressed, bottled line that uses smaller, more delicate Anao coconuts sourced from Brazilian rainforest in northeastern part of country.

Starbucks' Evolution Fresh HPP juice brand has returned to National Green Juice Day promo for 2d year, this time urging mild self-renovation efforts via new theme "Take a sip in a brighter direction" in recognition that folks who undertake too radical a new regimen tend to abandon it quickly. "More gentle approach," as marketing & category vp Anne Williams put it in discussion yesterday, using small-sips philosophy being espoused by founder Jimmy Rosenberg in online videos, hints at direction brand could take in future, perhaps on cause-marketing front, too. It's being deployed so far on social media and in shopper marketing programs at grocery chains while co evaluates future directions it could go, Anne indicated.

Monster Beverage brass yesterday afternoon offered detailed rundown of the brand work it's been doing on extensive array of energy items it acquired from Coca-Cola and detailed defense of sponsorship deals recently inked with Tiger Woods and with Nascar, while grappling with retort production capacity squeeze by putting planned Caffe Monster glass-bottle energy/coffee entry on hold in US and instead launching small-can challenger to Starbucks Doubleshot espresso brand. New espresso-and-cream line will be produced in Europe, where capacity is available; thanks to small package size, shipping costs will be manageable to US, chmn/ceo Rodney Sacks explained on annual outlook presentation to investors. It will arrive sometime in 2017 first half. Co wasn't ready to share specifics yet with investors.

Diabolo, RTD sparkling line inspired by French style of mint-inflected soda, has tweaked its flavor profiles while continuing expansion into retailers in all major regions of country except Northeast/East Coast.

Following completion of this deal, there will only be 2 Anheuser-Busch distributors in NH, down from 5 as of last year (tho 4 owners). Clarke family owns Clarke Dist of Keene, New Hampshire Dist and also owns the much smaller White Mountain Dist in Berlin. Together they manage about 2.5 mil cases. Now Clarke has deal to sell Clarke Dist to Bellavance Bev Co and White Mountain to New Hampshire Dist, expecting to close in early Mar. "As you know, NHD, Bellavance and Clarke have a longstanding and close working relationship," Jeff, Rich and Jay Clarke wrote their suppliers in memo that one of our contacts shared with BBI. "As such, we expect . . . this shift to be relatively seamless and that our teams will continue to work hard building your brands across New Hampshire." Recall, New Hampshire Dist bought Great State last yr, in deal that sent shockwave thru NA biz in eliminating key unaligned DSD house serving Boston (via Great State's Blue Coast unit). A couple of yrs ago, Clarke sold its A-B/other distrib in Vermont, G Housen, to Farrell. Lots of smaller A-B distribs selling out in recent yrs, with ranks really thinning in New England.