Beer Marketer's Insights
Coca-Cola filled in a few more blanks of its revamped org chart, saying Robert Long is retiring as chief innovation officer, opening door to combining innovation and technical functions under Nancy Quan, who segues to chief technical & innovation officer. Long, who's listed as 60 years old in 10-K filed earlier this year, devoted 17 years to KO. Quan, with the co since 2007, adds to list of responsibilities that already include overseeing "technical and supply chain community; strategic ingredient procurement; flavor supply and manufacturing; commercial products supply; strategic supply chain; quality, safety and environment; scientific and regulatory affairs; technical data intelligence; and technical knowledge and skills," per KO. Have we left anything out? At geographical level, KO said Brazil biz unit prexy Henrique Braun, a 24-year KO vet, has been named to run Latin America operating unit from which Alfredo Rivera emerged to take new assignment running N Amer following retirement of Jim Dinkins. The 19-year vet Nikos Koumettis, prexy of Europe, Middle East & Africa (EMEA) group, heads over to prexy of Europe operating unit. Atlanta soft drink giant plans to complete its reveal of new operating unit leaders later this week . . . Beverage Marketing Corp chief Michael Bellas is among 3 board members who've departed cannabiz Sproutly amid broader reorg . . . Houston Rockets star Russell Westbrook has signed on as investor/endorser with Flow Alkaline Spring Water.
Hopes of imminent breakthru in CBD in Calif were dashed as Senate moved into recess yesterday without moving bill easing regs beyond committee. Proponents of bill, AB 228, had warned that it could get swamped amid higher priorities given to issues connected to pandemic and other crises, in state that so far has deferred to federal authorities' skepticism in being unwilling to bless use of CBD or hemp extracts in foods, bevs and supplements. "Real bummer," Daytrip ceo Joey Cannata, who's been involved in regulatory issues in Golden State, texted us in response to query. "We are hoping that we can still get it passed and enacted by July 1, 2021. We may also be able to initiate some of the bill beforehand by allowing a 'grandfather clause' that would allow any current retailers, distributors and manufacturers to continue to sell or manufacture CBD products without issue." Office of Gov Gavin Newsom had worked with Dept of Public Health to draft language, but senate committee failed to move amendment to agenda for full vote. (Before embarking on long career at Rockstar Energy, Cannata had run Newsom's first campaign for political office, in SF.)
Laird Superfood Eyes IPO to Raise $40 Mil, Broaden Mix Beyond Heavy Past Reliance on WeWork Fund
Laird Superfood, the marketer of Original Superfood Creamer and other plant-based nutritional powders created by big-wave surfing icon Laird Hamilton, has filed paperwork to raise up to $40 mil in IPO, joining rush of companies that see heady environment for going public. Delving into filings and its own database, TechCrunch is deeming it unusual setup on several grounds in story here. For one, it's pretty early in lifecycle of co to be taking this step, just 5 years in, when co booked just $19 mil in sales for fiscal year ended Jun 30, $8 mil of that coming from core coffee creamers. Gross margin was 31%. Co generated loss of $9 mil and "at the rate it is spending money, including on sales and marketing, it will see a net loss of $10 million this year," filings indicate.
CSD volume surged 7.7% even with avg price increase of +5.5% for 4 wks thru Aug 8 in mid-cycle Nielsen data reported by Morgan Stanley's Dara Mohsenian. Over last 12 wks thru prime summer selling season, CSD volume increased 8.6% on avg price gain of 4.9% as continued Covid-19 concerns and channel shifts keep at-home consumption levels high. So the big bevcos have found themselves in that blessed land of both volume growth and price realization. Coca-Cola CSD volume rose 6.9% (a bit slower from +8.9% for 12 wks) on avg price gain of 5.7% for 4 wks. PepsiCo CSD volume was up identical 6.9% for 4 wks with more modest avg price gain of +3.2% for 4 wks. Keurig Dr Pepper's CSD volume gain was double its larger competitors', soaring 14.3% on solid price gain of 5.4% last 4 wks. Private-label brands slipped 6% with 3.9% avg price increase for 4 wks.
Red Bull is in hiring mode, with list of over 250 open slots in US, interim ceo Marc Rosenmayr noted in LinkedIn post . . . Superior Court judge in Calif has tossed decade-old complaint that coffee sold by Starbucks, Dunkin', Walmart and others is a cancer-causing product. The plaintiffs had argued that chemical called acrylamide that's found in roast brewed coffee, baked goods and other food products should be included in product warnings, based on research showing that it causes cancer in lab animals, as Yahoo Finance recalled . . . Buyers group led by power couple of A-Rod and J.Lo seems to have been passed over by NY Mets in favor of exclusive talks with hedge fund operator Steven Cohen, per local reports. A-Rod/J-Lo bidding team included longtime Mets fan and Vitaminwater tycoon Mike Repole . . . Honest Tea cofounder Seth Goldman, now riding plant-based tidal wave at Beyond Meat, has opened his 6th PLNT Burger restaurant location, all of them located within Whole Foods stores. Newest one at Tysons Corner, Va, joins 4 existing units in DC area and another in Philadelphia exurb. The clean-food chain has been using organic bev offerings from Tractor.
FOLO UP: Admiral Bev Narrows Suit vs PepsiCo over Rockstar, Bang, Ecomm; PEP Moves to Dismiss
Pepsi bottler Admiral Beverage has retreated considerably in its lawsuit vs core supplier contending that PEP sought to "extort" its signing of contract ceding ecomm rights in its territory in order to retain distribution of Rockstar Energy and pick up distribution of Bang Energy. Meanwhile, PEP has moved to have remaining suit dismissed or put on hold pending outcome of arbitration process that Admiral initiated on Jul 17.
Divestment of bulk of its Nestle Waters North America might be looking to be protracted process, but parent Nestle has found quick taker for its significant Chinese biz: Tsingtao Brewery Group, which is picking up co's local brand Dashan Yunnan Shan Quan and its 3 plants while agreeing to produce and market Nestle's global Pure Life brand via licensing component to deal . . . Canada's Dispatch Coffee has raised C$1.26 mil in seed round that will allow Montreal-based co to expand brand outside Canada and increase its subscription base, FoodBev.com reported. Dispatch was founded 8 years ago as city's first cold-brew delivery service and added brick & mortar presence, but last year it fortuitously tilted emphasis to ecomm and personalized subscription services, "providing customers with the beans, tools and know-how to brew 'barista-level' coffee at home," news service recalled. "Retail was already changing pre-pandemic," said founder/ceo Chrissy Durcak. "Now demand for e-commerce and home delivery is exponential." Participating in round was Anges Quebec ("Quebec Angels"), a network of 230 angel investors. Recall that another Montreal-based co, clean-energy marketer Guru, has been proceeding lately with much larger raise en route to going public (BBI, Aug 26).
One silver lining that some bev marketers have seen during pandemic has been chance of a breather as they plan how to navigate broadening plastic backlash, as retailers focused on keeping shelves stocked and restaurants aimed simply to stay in business. But sprawling Univ of Calif system isn't waiting. Last week it responded to student-led campaign by announcing broad plastic plan that includes phasing out all plastic-packed bevs from its 10 campuses and 5 medical centers in less than 2 years. Unlike some bans, this one seems to go beyond bottled water to encompass all classes of bevs, whose purchase, sale and distribution will be barred by Jan 1, 2023. Initiative is commencing with plastic bags in retail and dining locations by Jan, moving on to dining accessories like straws and stirrers by Jul, then single-use plastic food service items by Jul 2022 and plastic bottles 6 months later, driven by evidence that hardly any purportedly recyclable plastics end up reused. Most end up in landfills, overseas nations and/or oceans. "With changes in the recycling industry that make it more difficult to reuse plastic products, the clear solution is to phase out single-use plastics so they never enter our waste stream in the first place," said David Phillips, assoc vp for UC Dept of Energy & Sustainability. UC is beginning to support the bev bottle change by encouraging its locations to install water refill stations.
Joyride Coffee Distributors is hoping to announce financial restructuring deal next month that will hive off distribution operations to unidentified partner while allowing it to continue on branding side with NY and Bakersfield, Calif, plants as base. David Belanich, who founded co with his 2 bros, said he hopes to close deal by mid-Sep that will allow Joyride to segue to branded cold-brew and copacking ops after pandemic demolished its corporate distribution biz in NY, Boston, SF and LA. That was outcome cofounder had told us he was pursuing early this month tho timeframe wasn't clear (BBI, Aug 5).
Seattle-based Jones Soda, which has made a specialty of topical and customized labels over the decades, is seeking to harness election fever to spark its core soda line, enlisting artists and consumers to create 6 designs for limited-edition Vote 2020 labels. Due to hit retail next week, labels take variety of low-pressure and high-pressure tacks to get shoppers to the polls, with one mildly observing, "Voting Beats Not Voting," and another more forcibly superimposing the word "Vote" over image of Statue of Liberty 9 times. QR code on back label enables online voter registration in about two minutes for those holding driver's license or state ID card. Effort follows 6-label "Messages of Hope" effort in Jun that sought to capture resilience of those involved in fight vs Covid-19 virus and last year's Pride Edition collection.

