Beer Marketer's Insights
Nestlé Health Science said it's investing $43 mil to expand plant in Eau Claire, Wis, with addition of two production lines for RTDs, including nutritional bevs like Boost and Carnation Breakfast Essentials. Plant also makes medical nutrition items like tube-feeding formulas. Plant has been operating there since 1987 . . . The Niagara Bottling juggernaut rolls on, this time into Louisiana. Diamond Bar, Calif-based copacking giant said it's investing up to $160 mil to establish a plant near Hammond. It anticipates breaking ground on 500K-sq-ft plant in Q2 with view to hiring 70 to operate it. It will be latest addition to network that now spans 40 plants employing over 7,000 worldwide.
After period in recent years when it proliferated new entries in range of packaging sizes and formats, Brooklyn Food & Beverage has moved to streamline its branding around Moshi trademark packed in 12-oz longneck glass bottles. The Bruce Cost Ginger Ale brand that brought co to bev party still remains very much in the mix as nationally available brand, but its Brooklyn Crafted spinoff - occasioned when the distinguished chef and food writer wouldn't countenance any stevia-sweetened bevs under his own name - has retreated to Northeast regional base, said Alton But, who helped create Moshi line. Both entries could be spotted at side of booth but the focus was very much on the Moshi lines, which are being produced at a new copacker, Ginseng Up in Mass. (Brooklyn F&B continues to use its own production line for incubation efforts, and processes the ginger it requires itself in extensive operation at its hq facility in Bushwick part of Bklyn.)
Entrepreneur behind Creminelli Fine Meats brand lately has gravitated to plantmilk frontier with launch of Lattini Sunflower Seed Milk brand out of his base in upstate NY. Jared Lynch said he was drawn to hero ingredient by its status as sustainable, drought-resistant and supporting pollinators like bees.
British mixer co Franklin & Sons, bearing history going back to 1886, is stepping up its US push after 2019 launch ran into pandemic crisis that forced shift from on-premise awareness-building to immediate push into retail. Acquired by Global Brands Ltd in 2015, the brand is positioned as premium to Fevertree, which took more aggressive stance on price a few years back and is so broadly available now that biz dir Tom Singleton believes there's space for more elevated alternative priced at $6.99-7.99 per 4-pk. Besides, he noted, Fevertree has moved much of its production for US market to this side of Atlantic while Franklin & Sons continues to employ traditional process in UK using UK-grown sugar beet.
Path aluminum-bottle water brand, which has gotten far with sustainability message and minimal portfolio, is steadily building out its portfolio of offerings, with flavored sparkling entries and LTOs tied to licensing deal with Nickelodeon. After focusing on white-bottle still water and black-bottle 9.5 pH alkaline water, co was sampling flavored sparklers in Grapefruit Mango, Raspberry Orange and Lemon Lime flavors at Fancy Food Show. The Nickelodeon deal has yielded bottles branded with popular icons like SpongeBob SquarePants and his Patrick and Squidward cast colleagues as well as Paw Patrol. Those had duly gone into same 20.3-oz straightwall bottles of core lines but market feedback has coaxed co into downsizing bottle to somewhat more kid-friendly 16.9-oz bottle due next month. And liking response it got to summer entry with beach-y graphic vibe in limited distribution in Calif last summer, for this summer it will go broad with entry, shipping in May in time for Memorial Day onset of peak summer season.
Another hydration brand is finding it hard to resist the allure of energy sector. Treading in path forged by Body Armor and Prime Hydration, Splash Beverage said it will extend its Tapout sports drink into energy segment in late Mar. So far, details are scarce but key figures behind the effort bring some relevant knowledge: Splash ceo Robert Nistico, a former Red Bull exec, in partnership with retired NFL great Drew Brees, a Tapout endorser, and performance nutritionist Sanjeev Javia. It's clear it will play in emerging segment of "smart energy" brands, with "unique ingredient matrix that aims to deliver enhanced cognitive performance, mental focus and antioxidant health in additional physical benefits." For now, co only is saying it's zero-sugar line with all natural ingredients including the caffeine that will debut in sparkling, Cherry Lemonade, Orange and Peach Mango flavors. Based in Ft Lauderdale, Splash is among new wave of multibrand players, with portfolio that also includes alcoholic entries Copa di Vino wine, Salt flavored tequilas and Pulpoloco sangria.
For a while, the deals on Zoa Energy seemed relentless late last year as Molson Coors-aligned energy brand sought to blow out its remaining inventory ahead of total revamp. After hints at MC sales meeting and NACS c-store show last fall (BBI, Sep 26 and Oct 11), that's been formally unveiled now as Dwayne "The Rock" Johnson-fronted brand drops ominous jet-black look for bright, minimalist palette and downsizes pack from 16-oz to 12-oz, Celsius- and Alani-like. Yup, Zoa has gone lifestyle now. "We're getting Zoa out of the gym and making it an approachable lifestyle brand," per Matt Stallman, sr portfolio mgr for MC's non-alc brands. "Whether it's fueling your Monday morning commute or afternoon pick-me-up, there are a lot of different occasions that Zoa can play in." The now sugar-free line also is adding new flavors Cherry Limeade and Strawberry Watermelon. At sales meeting, recall, upside was described as "immense" for 2 key NA plays, Zoa and La Colombe Coffee. A few months later, La Colombe exited the portfolio, but co still is betting big on Zoa in appealing energy segment.
Enlisted under earlier mgmt team, Flo Rida in some ways seemed an odd partner for heavily female skewing energy brand, tho his anthems often were played at high decibels in the gyms where core demo worked out. In recent years, his role was confined to endemic 300 mg Celsius Heat entry that hasn't drawn much focus as core line has ignited. But he seems to be getting the last laugh now that jury in Florida today ruled in favor of singer (whose legal name is Tramar Dillard) in his lawsuit against Celsius Holdings for that endorsement deal, reported Law&Crime Network. Dillard contended he was still owed money from a 2014 deal that was renewed in 2016. His legal team told L&C that partnership "was highly effective in opening doors for Celsius and its products." This past Fri, current ceo John Fieldly testified that his co's growth was due to his team's work, not from seconds in a music video, per report. Celsius had argued that statute of limitations to seek payment had run out, but jury determined CELH "failed to show the plaintiffs waived their right to seek more compensation," wrote L&C.
With supply chain issues and pandemic receding, Monster Beverage reviewed robust slate of innovation on annual investor update yesterday afternoon, confirming launch of Reign Storm that was rumored at NACS c-store show last fall and offering a few more details on Liquid Death challenger called Monster Tour Water. Thru extensive discussion of good-for-you and other energy sub-segments, tho, a cone of silence remained over True North Energy Seltzer line, naturally formulated 12-oz line whose fate seemed up in the air last fall. On call, MNST co-ceo's Rodney Sacks and Hilton Schlosberg also offered further light on new operating structure we'd teased last fall, in which acquired CANarchy alcohol arm has spawned offshoot called Monarchy Beverage Co that will serve as steward for emerging non-alc brands that might not be ready yet for Coke bottling system, MNST's main partner on NA side (BBI, Oct 5). Hilton emphasized that this doesn't represent a jailbreak: "This strategy and plan has the blessing of The Coca-Cola Company, it's not being done against their wishes, it's being done together with them, with the objective that if these brands grow to a particular dimension or size they would then move over to the Coca-Cola system." For starters, they'll move thru indie distributors, mainly beer houses, some but not all of them in network employed by CANarchy craft brands like Cigar City and Oskar Blues. As we'd reported last fall, longtime MNST exec Renold Aparicio seems to be heading up unit.
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