Beer Marketer's Insights

Beer Marketer's Insights

Bev marketers who're strapped for aluminum cans and were hoping for words of reassurance from can maker Crown Holdings this morning were doomed to disappointment. Despite workarounds like steering some Latin American capacity to US needs while things slowed there, Crown ceo Tim Donahue could offer no realistic prospect of easing crunch in 2020. "From now until the end of the year, and in almost every market where we produce, cans will be in short supply," was his sobering verdict on Yardley, Penn-based co's Q2 earnings call this morning. He offered prospect of relief next year, disclosing that co is accelerating capacity additions to plants in Toronto and Nichols, NY, and has decided to add a 2d line to greenfield plant planned for Bowling Green, Ky, as boom in hard seltzers and other canned alc and NA items shows no signs of abating.

Yogurt giant Chobani, which has been on unprecedented new-product blitz (BBI, Nov 19), has debuted an oat-based line of kombucha-like Chobani Probiotic drinks as well as high-protein dairy-based shakes under name Chobani Complete. Both are made at co's Twin Falls, Ida, yogurt plant.

CSDs continued to benefit from shift to at-home consumption as on-premise restaurant and fountain biz slowly opens up across US. CSD volume rose a strong 7.4% (down a bit from 10% gain for 12 wks) while avg prices were up a solid 5.3% for 4 wks thru Jul 11 in Nielsen all-channel data reported by Morgan Stanley's Dara Mohsenian. Coca-Cola CSD volume rose 7.7% (vs +10.3% for 12 wks) with avg price gain of 4.2% for 4 wks. KO full-calorie (+7.4%) and diet brands (+8.4%) had similar gain pace past 4 wks. PepsiCo CSD volume increased 5.6%, a deceleration from near 9% gain for 12 wks, but PEP avg prices were considerably higher at +4.1% last 4 wks. PEP low/no-cal brands were up 10.4% vs 5.6% for regular CSDs last 4 wks. Keurig Dr Pepper continued to post double-digit gains in all-channel. Volume surged 13% (+15.5% for 12 wks) with highest avg price increase (+6%) among top suppliers last 4 wks. Private-label CSDs fell 5% with avg price gain of 6.6% for 4 wks.

One of Coca-Cola's greatest strengths proved its key weakness during Covid-19 pandemic, as global lockdowns sapped its out-of-home biz and caused 28% plunge in net revenues in 2d quarter reported this morning. For all that, results still came around where The Street expected and ceo James Quincey said he anticipates Q2 will prove to be most severely affected qtr of year, prompting upward move in shares today. This morning KO disclosed new campaign, "The Great Meal," that celebrates home-cooked meals many families have been forced to rediscover during lockdowns, as opening salvo in broader campaign called "Together Tastes Better." And Quincey described carefully plotted tack the co is taking to weed out slow-moving "zombie" brands like Odwalla and invest in narrower range of early-stage brands while not stunting co's future growth. Pandemic-induced need for greater agility also is encouraging co to migrate from what Quincey describes as complicated 3-dimensional org structure to more of a network model, presaging potential staff reductions.

In story about buyout by Big Geyser of its remaining owner-operated routes, we mistakenly listed Liberty Coca-Cola as continuing to operate on that model. By now its routes are all corporate-owned, co-owner Fran McGorry pointed out to us.

Entrepreneur based in Washington DC is among latest to enter burgeoning mocktail space with brand platform called FauxMo whose first expression is canned mock-mimosa line called FauxMosa. As with many such entries, brand attempts to offer sophistication, palate complexity and craftsmanship story to allow it to stand on its own vs conventional mixed drinks. FauxMosa is packed in 8.45-oz slim cans with elegant graphics and uses base of unfermented varietal grapes sourced directly from California vineyards layered over with other juices, adaptogens and botanical flavors. It aims for sessionability by eschewing added sugar and derives a bit of bite from citric acid and hint of apple cider vinegar.

World's 3d-largest spirits co is officially launching its non-alc beer, All-Free, across US starting late July, marking co's "first full-scale [beer] entry into the US market," per reported in Nikkei Asian Review reports cited Fri by our sibling newsletter Insights Express. All-Free will "mainly be sold through e-commerce channels such as Amazon at first," before moving into brick & mortar stores, with target of 15K cases per mo by end of 2020 and 1.5 mil cases annually within next 3-5 yrs. Add 'em to the list of major brewers and alc bev cos lookin' to get in on small but burgeoning non-alc beer segment in US. All-Free has been available in Japan since 2010, and is Japan's "leading non-alcoholic beer brand," according to co.

Best known for its inner-city staple Tropical Fantasy, Brooklyn Bottling continues to aggressively diversify, with latest move being the addition of line of shelf-stable organic drinking vinegars under Nature's Own brand. Line produced from organic apples is launching in 14-oz glass bottles in Watermelon, Mango, Pink Grapefruit, Blackberry and Lemonade flavors that avoid vinegar bite of some entries, incorporating 12-21% juice and coming in at 35-50 calories per bottle. Sales chief Steve Parano said they'll be going out at likely $2.49-2.99 price via co's own distribution arm, outside DSD partners who elect to pick it up and possibly via broadliners like UNFI and KeHe. The launch, via brand that Brooklyn Bottling has owned for well over a decade now, joins co's acquisition of Sportwater brand as signal that it intends to play in broader range of segments (BBI, Apr 30). Just this spring, it added water line under Tropical Fantasy brand (BBI, Apr 16). The drinking vinegar had its inaugural production run last week, Steve said. It enters category that has drawn wide range of players, from PokPok to Turkey Hill, with none so far noticeably breaking out and some of ACV emphasis having shifted to shot side.

Essentia Water cmo Karyn Abrahamson has moved on after nearly 5 years in job, in what seems to be first major exec change under new ceo Scott Miller. Karyn, who brought big-brand experience from T-Mobile, Starbucks and Microsoft, was key mover behind aspirational "Overachieving H2O" campaign that moved alkaline brand beyond its product attributes to more of a lifestyle positioning. Miller confirmed departure, without offering reason, and said marketing vp Zola Kane is overseeing Seattle-area co's current development of 2021 marketing plan. Earlier in career the Stamford-educated Kane spent 6 years at HTC, marketer of smart mobile devices . . . Ocean Spray has brought aboard former Tyson Foods prexy/ceo Tom Hayes as its new ceo. New England native won over cooperative's board in part thru his efforts at Tyson to introduce "a new corporate brand, purpose, global growth strategy and approach to sustainability" while helming brands like Tyson, Jimmy Dean, Hillshire Farm and Ball Park, per the co. "Ocean Spray is a unique company: one that asks its leaders to speak the language of consumers, farmers, grocers, bankers, manufacturers and employees all at once," said Ocean Spray chmn Peter Dhillon. "In Tom Hayes, we believe we have found a leader who can speak to all of these audiences and continue the transformation of this cooperative." Tho its last ceo, Bobby Chacko, was viewed as doing effective job "righting the ship," as Dhillon has readily acknowledged, he was fired in Feb for violating co's harassment policy. Former Jamba Juice ceo and Ocean Spray board member James White took ceo position on interim basis.

With its capital needs met for now, Oatly is building out its product portfolio, inaugurating a development center in Philadelphia and moving its eye-catching outdoor ads into markets beyond NY and LA, US gm Mike Messersmith said today, offering progress report to BBI after global parent brought in $200 mil in new capital. But timelines have stretched a bit on effort to inaugurate more sustainability-oriented campaign, as co treads gingerly at time consumers are focused on priorities like pandemic and Black Lives Matter.