Beer Marketer's Insights

Beer Marketer's Insights

Youthful bev vet Blodin Ukella, who most recently played key strategy role at fast-growing plant protein brand OWYN, has reached back to his East European roots to offer a new canned iced tea brand called Ryl ("real") that boasts unusually high amount of polyphenols. Cedar Knolls, NJ-based entrepreneur is mainly targeting Northeast in initial phase with Wegmans and some Whole Foods stores aboard, but will add selective national accts like Wakefern and Sprouts. Blodin said he's raised $6.7 mil from unidentified patient investors whom, he said, span diverse array of fields and are committed to supporting subsequent rounds. He said he's already got team of 8 in place with more hires on way.

Big price hikes in bevs, which was the big story of 2022, continued to accelerate in several categories thru last 4 wks of yr thru Dec 31 in NielsenIQ data reported by Goldman Sachs' Bonnie Herzog. Price hikes accelerated in CSDs, energy drinks, RTD teas and sparkling waters. Prices rose double-digits for full yr 2022 in CSDs, bottled waters, sports drinks and still flavored water. (Note: today we focus on CSDs, energy and sports and will review water segments next issue.)

By now it rates as occasional sub-genre in this newsletter: claims by bevcos of being mistreated by broadline distributors like UNFI and KeHe, whether via unwarranted billbacks or subpar execution with no consequences. (As we've reported, a cottage industry of consultants has sprung up just to monitor those billbacks for discrepancies that often prove to be massive.) Now a small Illinois roaster named Modest Coffee is offering on its website a blood-curdling account of near-death experience at hands of unidentified multi-billion-dollar distributor and broker in filling huge order it thought represented its big break. In social media post linked to blog, Yaupon Bros cofounder Bryon White says they're talking about KeHe and he's suffered similar indignities servicing Walmart chain via that broadline house. "Are you listening KeHe Distributors?" he wrote. "Stop abusing small brands to line your own pockets and, just a thought, BE NICE." We reached out to KeHe last week for comment but haven't heard back. In past others have pointed to KeHe's main rival UNFI for similar issues. ("You can't spell UNFAIR without UNFI!" vented one bevco - BBI, Apr 13 2017.)

Ocean Spray Cranberries growers co-op is rolling out 2 humorous spots "focusing on the attributes of its 'Better For You' beverages that are designed to help meet the needs of an individuals' diet," co announced today as consumers ply their new year's resolutions. In spots developed by Orchard Creative for Diet Cranberry Juice Cocktail and new Immunity Orange Mango and Revitalize Cranberry Pineapple juice drinks, the characters are "overtaken by an overwhelming newfound confidence or 'Cranfidence.'" Tagline "YES YOU CRAN," reminds viewers if Ocean Spray can make a drink with 1 gram of sugar "and still keep all that powerful flavor," then they can do anything - as with overweight runner who injects himself into starting line of road race to declare "if Ocean Spray can make an immune-supporting juice drink with no added sugar and still keep all that powerful flavor, then I can do anything. I cran win this race without any training whatsoever!" (His quest is severely set back when starting gun sends him into panic attack.) "Our new better-for-you creative launches at a time when New Years' resolutions can bring a lot of self-doubt, and we hope to give consumers confidence to believe in themselves," said Trinh Le, vp of Next Gen Beverages. "We want to drive home that they can enjoy delicious taste and flavor while also limiting sugar and calories." Ads started running nationwide today on linear and streaming TV platforms, Facebook, Instagram, programmatic video and YouTube, via buy implemented by KWG Advertising.

Pair of much-anticipated new items are heading into market. For Coca-Cola system, its partner Monster Beverage is ready to release Monster Energy Zero Sugar, which finally replicates flavor of core green can in manner anticipated to appeal more directly to the male users who comprise that entry's core consumers. Until now, MNST has mainly ridden its popular Ultra line for zero-sugar occasions, with more balanced appeal among genders. To knock off green-can flavor required multi-year effort to devise revamped energy blend (tho still with 160 mg of caffeine) and new sweetener system. "We are very proud of our existing sugar-free Monster Energy Ultra line, and all of its incredible innovative flavors," said cmo Dan McHugh. "But we were long-overdue a zero-sugar version of our flagship flavor. The time of Monster Energy Zero Sugar is now" . . . On PepsiCo side, soft drink giant has been rolling out its latest attempt at a Sprite challenger, dubbed Starry, slipping lemon-lime entry into retailers like Kroger and Walmart while getting cans and bottles into hands of influencers. New line, teased at NACS c-store show last fall (BBI, Oct 4), is "purpose-built for Gen Z" and "not just a fun escape but a little bit of a mental recharge," per Pepsi hype copy. Offered in regular and zero-sugar versions, copy on gift box sent to reviewer who goes by Soda Sommelier said that "with crisp carbonation and a balance of lemon/lime flavors, it's the perfect pairing with food and with friends." ("Weird that you think we're eating our friends, but - they are tasty, aren't they?" Sommelier observed in commentary that runs 9 minutes, if you can imagine that.) We haven't encountered Starry yet but Soda Somm deemed it "very carbonated, sweet but not over-the-top sweet," reminiscent to him of earlier Sprite challenger called Storm.

Have you been paying attention, investors? That essentially was message from Flow Hydration brass today as it sought to nudge marketer of Tetra Pak water from measly 0.3X stock multiple by reiterating the concrete steps it's taken to get on more profitable path. Among broad array of steps Toronto-based co is taking to get there has been a move to narrow DSD distribution network to most efficient markets on East Coast and in Calif while segueing to mix of direct-ship and broadline approaches in rest of US, chmn/ceo Nicholas Reichenbach confirmed to BBI in follow-up call today. Target is among key retailers that have transitioned from DSD to direct-ship, he indicated. Key partners like Honickman Group and Polar on East Coast will very much stay in place, he emphasized.

Leo Kiely, who joined Coors as chief operating officer in 1993 and then led the company through a series of remarkable transformations, passed away at 75. As Coors ceo he grew the company and made Coors an international brewer with the deal to buy Carling in the UK over 20 yrs ago, then the merger with Molson in 2005 and Miller in 2008. Leo became the ceo of MillerCoors before retiring in 2011. He and his team created billions in value along the way, but just as impressive were his enduring friendships and humanity. "Leo was a fantastic leader and the best of men," said Molson Coors board chair Pete Coors. "He was strategic, tactical and good humored all at the same time. He was a special friend and cohort. I have missed him deeply since he retired."

Advocates seeking to expand cross-border retail wine shipping expanded their tactics early in 2023, taking a legislative route while path thru the courts continues to prove challenging. Natl Assn of Wine Retailers announced introduction of a bill in WA to allow out-of-state retailers to ship wine to in-state consumers. Org has been instrumental in supporting fed lawsuits with same aim; cts have mostly disagreed with their arguments, tho these advocates and supporters still hope the Sup Ct will take up an NC case on the issue.

It's tough out there in cannabiz land, especially among publicly traded cos. Tilray total net revs slipped 7% to $144.1 mil for fiscal Q2 (Sep-Nov), now down 8% to $297 mil for running 6 mos thru Nov. Operating loss of $51 mil in fiscal Q2 was an improvement vs year ago, and loss for 6 mos nearly cut in half, but still -$73 mil.

With around 1.1 share of beer/FMB/cider $$ for 52 wks thru Nov 5, hard cider sales didn't keep up with the category's price-driven gains in 2022, NielsenIQ reported this morn. Total cider $$ down 2.1% for 52 wks vs yr ago and now off 6% vs 2 yrs ago. Foodstores still over half of cider sales in scans, down 1.6%. But the segment's comin' on in convenience, posting modest 3.1% growth in the channel for 52 wks to early Nov. Over same period, some new flavors got biggest gains, all multiple times where they were in prior yr, led by cucumber, blueberry, passion fruit, peach tea and strawberry lemonade.