Beer Marketer's Insights
Better Booch is revving up its national expansion with addition of several Whole Foods regions and addition of DSD partners in Austin and Northeast. LA-based canned kombucha has expanded from Whole Foods' Southern Calif region to NorCal and Southwest stores. It's also picked up pair of DSD partners: Dynamo in Austin and Iris Nova's Northeast region. Iris Nova, of course, is parent of Dirty Lemon that's been picking up outside brands for distribution operations it's set up in NY, LA and Chicago (BBI, Jul 9) . . . Prebiotic soda Olipop is heading into 1,000 Kroger stores under grocer's Kroger, Fred Meyer, Ralphs and King Soopers/City Market banners, marking brand's entry into new areas like Cincinnati, Tenn, Ga and Miss.
Stuart Beck, a 15-year PepsiCo vet, has headed to The Wonderful Company as svp for corporate marketing, where he's responsible for devising long-term strategies for its full collection of brands, including POM Wonderful, Fiji Water and Wonderful Pistachios. At PEP, Beck had been based in Plano, Texas, mainly working the Frito-Lay portfolio, after earlier stint in Dallas for IRI. In his new post he'll be working with Wonderful Co's internal ad agency on various campaigns.
There was brief time during early stage of pandemic of fears that bottom might drop out of capital availability. But after pause in March and early Apr, deal flow has continued at surprisingly robust rate, thanks to factors like abundance of funds to be deployed, rich profits big CPG players are enjoying, substantial gov't stimulus spending and sense that health & wellness and sustainability trends aren't going to reverse. Latest $200 mil in funding for plant-based meat player Impossible Foods - at what's now $4 bil enterprise value - epitomized open spigot for well-managed cos riding the right trends.
LA-based Lemon Perfect, the lemon water brand launched by former hoops scout and asst coach Yanni Hufnagel, has closed on $6.6 mil financing round that included participation from enough NBA players to stock the bench at recent bubble games in Orlando: Nick Young, Blake Griffin, Josh Hart, Damian Jones, Meyers Leonard, De'Anthony Melton, Kyle Kuzma and Spencer Dinwiddie. Also involved were sportswriter Jordan Schultz and former Bai Brands coo Barak Bar-Cohen. On institutional side were Beechwood Capital, The Big Squeeze, Goat Rodeo Capital, LivWell Ventures, Melitas Ventures, R3 Venture Partners, RCV Frontline Fund, Stage 1 Fund and Skyview Capital. In what's becoming familiar pandemic trope, over $1 mil of that sum was raised via virtual meetings with investors whom Hufnagel never met in person. The latest influx brings total capital raised to date to $11.6 mil, via several convertible notes, and lays groundwork for Series A down the road, Yanni told us last night just after landing in Florida to work buy-one, get-one promo at Publix chain.
Already a highly visible fixture on sidelines of truncated Major League Soccer season that's currently being played, Coke-aligned Body Armor brand has now inked multiyear deal with USTA to serve as official sideline drink at US Open. As part of deal, isotonic brand will refurbish tennis facilities at Billie Jean King Natl Tennis Center in Jamaica, Queens, not far from where Body Armor ceo Mike Repole grew up. Tourney is scheduled to take place as scheduled from Aug 31 to Sep 13, albeit without spectators and, as Sports Biz Daily noted, with absence due to virus precautions or injury of Rafa Nadal, Roger Federer and Bianca Andreescu, tho Novak Djokovic will participate. Deal calls for Body Armor to be made available to players on court during matches and practices, in locker rooms and in training facilities at tennis center . . . Microsoft may have delayed launch of Halo Infinite game to 2021 but Monster Bev is moving ahead with intro of limited-time cans whose purchase allows gamers to stock up on Double XP points for when they're able to play. Among other features of cans, which are out in 16-oz Original Green, Lo-Carb and Zero Sugar flavors as well as 24-oz Original Green and Lo-Carb entries, is exclusive Snapchat filter encoded with each can that unlocks access to Halo Infinite world via one lens that provides monthly augmented reality experiences set in Halo universe and selfie lens that transforms users into Master Chief, per co announcement. But wait, there's more: Users who scan all 3 Snapchat codes each month unlock exclusive in-game weapon, too.
With revenues from its bottle deposit law on the rise in Michigan in each of last 8 years - up to $43 mil in 2018 - beer and wine wholesalers along with Mich Soft Drinks Assn are asking for a 20% cut from those funds, reported Michigan Live. Assn's prexy and others called for support of multiple Mich House bills that "would alter distribution of the state's unclaimed deposit fund and create funding deposit fraud investigation and enforcement," per MILive. "Since 1990, the state of Michigan has received over $400 million in unclaimed deposit funds, those funds where the consumer didn't reclaim their dime," said Spencer Nevins, prexy of Mich Beer & Wine Wholesalers. "However, the current law doesn't require the Department of Environment, Great Lakes and Energy (EGLE) (to spend anything) with regard to investing in the trucks, the processing lines, the can-crushing equipment, anything that is used to actually handle and process these containers," noted Nevins.
Sipp, which has evolved over the years from glass-bottle organic soda to include things like 10.5-oz slim-can Infusions item, is undertaking another twist, this time into enhanced seltzer fortified with camu camu and modest amount of caffeine. Latest iteration puts brand in La Croix-like 12-oz cans with liquid that offers antioxidant boost via 100 mg of vitamin-C-rich tropical superfruit plus 50 mg of caffeine derived from green coffee beans, per social media posts and just-revamped website at EnjoySipp.com. It appears headed for debut in trio of sophisticated flavors: Berry Mint Condition (blackberry, mint, lime), Sweet Ruby Riot (grapefruit, honey, rosemary) and Vanilla Spice & Everything Nice (ginger, vanilla, lime). "Basic flavors are for basic people," derides website and Amazon page. It's sweetened with agave nectar to tune of 9 g of sugar (40 calories). Back of can proclaims "Come Clean" and carries USDA Organic seal. On Amazon it's listed at $25 per 12-pk. Sipp execs told us they're withholding any comment until they're ready to make orchestrated pr push in coming weeks. Last evolution for brand owned by Emil Capital saw addition of slim-can Sipp Infusions in late 2018 and tweak to core line in glass bottles and cans. That was not long after founder Beth Wilson-Parentice had moved on, nearly 6 years into Emil's ownership. Tho co has stayed below the radar in recent years, execs had hinted of move in caffeinated direction 2 years back (BBI, Jul 5 2018).
Pair of Southern Calif entrepreneurs have thrown their hat into ring of alc-free booze with brand called Monday Gin that offers same complex mix of locally sourced botanicals as finer craft-distilled gins but without the hangover. Brand packed in 750-ml bottle with striking geometric pattern on label employs blend of juniper, botanicals, citrus and spices to mimic classic London dry gin, including its kick, via pepper-derived ingredients. But it contains no alcohol, sugar or calories (it does use small amount of monk fruit). It's produced at unidentified San Diego craft distillery. Online at DrinkMonday.co the brand is listed for $45.99 per bottle on offer at 3 for $89 with free shipping and a rep said price now is $39.99. Founders are Ben Acott, who comes out of DTC world via brands like Xology, CRU Wine eComm and Manscaped, and Chris Boyd, who's held IT roles at cos like Vertex Pharmaceuticals. For now they're focused on DTC rather than retail while prepping further innovation, we're told. Website offers cocktail recipe ideas like one called TGIM, using blueberry basil kombucha and cinnamon.
Just as coronavirus pandemic mightily disrupted beer biz, impacts on cannabis felt as well. In late 2019, "near-universal consensus" was that lotsa Calif cannabizzes would crash in 2020, given high taxes, regulatory glitches, thin margins, still-thriving illegal mkt and more. Some expected a "bloodbath," as Marijuana Biz Daily reports. But that hasn't happened, as our sibling newsletter Insights Express recounted today. Adult use sales hit just-below $350 mil in Jul, according to Headset, exceeding previous record set in Mar of $332 mil and up by about 1/3 over Jul 2019. Then too, number of licenses up across almost all categories. So, rather than bloodbath, legal cannabis "outperforming industry-watchers' dire predictions," MJ Biz stresses.
Alkaline Water Co rode velocity and reliability of its core Alkaline88 brand to further penetration of its single-serve, infused and aluminum-bottle extensions in its fiscal first qtr while continuing to lay groundwork for intended transformation into lifestyle-oriented brand. Sales soared 40.1% to record $14.22 mil. Operating loss narrowed to $2.83 mil from $4.96 mil. Gross margin ticked up half a point to 41.1% thanks to efficiencies garnered from shipping full truckloads of water during pantry-loading phase of pandemic, prexy/ceo Ricky Wright explained. Net loss narrowed to $3 mil from $5.1 mil. New qtr is off to brisk start with Jul purchase orders 2d-highest ever, co said.

