Beer Marketer's Insights

Beer Marketer's Insights

VPX formally announced its partnership with Germany's Oettinger brewing group to launch Bang Energy in Germany, starting with 6 flavors: Peach Mango, Black Cherry Vanilla, Lemon Drop, Blue Razz, Candy Apple Crisp and Rainbow Unicorn. It's unclear what role, if any, Bang's new partner PepsiCo will play in effort, which we'd reported this past winter (BBI, Mar 9). No immediate comment from VPX exec we approached.

"Now City Beverage will seek final payment and resolution of this dispute with Monster." So concludes Alcohol Law Review squib on US Sup Ct's decision not to review case involving $3 mil arbitration ruling City (Olympic Eagle) originally lost to Monster Beverage, as our sibling newsletter Insights Express reports. Recall, City pushed back vs Monster Energy termination years ago as violation of Washington State franchise law. Arbitrator used odd methodology and ruled in Monster's favor, to tune of $3 mil. US Dist Ct upheld award. But City kept battlin', with assistance of Natl Beer Wholesalers Assn, and won reversal in US Appeals Ct with argument that arbitration group JAMS failed to disclose key info about arbitrator it picked and JAMS' significant relationship with Monster as a big client. Monster appealed that decision to US Sup Ct, but Supremes said no thanks (tho Olympic likely still humming "The world is empty without you" given Monster brand's continued growth in recent years).

Claiming to be selling 500K cases per year of its Pink Whitney flavored vodka, Barstool Sports now is ready to steer its rabid base of sports fans onto NA side of biz with mixer called Barstool Transfusion Mix by Owen's. As Front Office Sports newsletter recounts it, packaged Transfusion item grew out of golf outing of Sam Bozoian, who for some time has touted a grape juice & ginger ale concoction he calls The Transfusion on his Fore Play podcast on Barstool, and Josh Miller, cofounder of Owen's Craft Mixers. The resulting canned Barstool Transfusion Mix by Owen's broke on partners' websites and is due to hit retail next week. They're targeting the 6K retailers that already carry Owen's brand as well as golf clubhouses, per newsletter, which estimates that 31% of Barstool's $100 mil in revenues derives from "merchandise and commerce," and another 3% from licensing. The Pink Whitney was brainchild of another Barstool podcaster, Ryan Whitney, who co-hosts hockey podcast called Spittin' Chiclets. He teamed with New Amsterdam vodka marketer on concept.

Continuing to wade out deeper into CBD segment, Alkaline Water Co has launched its first edible items under its A88CBD brand, starting with infused capsules and gummies, with powder packs, shots and water out a few weeks later. Among line's launch retailers, Pure CBD, a multi-unit CBD-only dispensary in LA, has committed to carry entire A88CBD line, said prexy/ceo Ricky Wright. The topicals, which carry lower regulatory risk in still-unsettled category, had launched in Feb and had already been embraced by Vitamin Plus chain. "Establishing our strong online presence with our topicals line is one aspect of our go-to-market strategy," ceo Wright said. "Our ingestible product portfolio accelerates our reach into traditional retailers where we already have established relationships." A sales surge during current pandemic has served to accelerate Scottsdale, Ariz-based co's hopes for segment.

Augusta, Ga-based Hart Dairy, major American producer of grassfed milk, has landed new investment from Next Gen Nutrition Investment Fund (NGN), co announced. Amount or terms weren't disclosed, but NGN is interested enough in co's prospects to place 2 of its 3 general partners in hands-on role, with James Cali and Andrew Towle to serve as "chief marketing advisors" who can help Hart navigate "multichannel marketing and innovation for the company during its continued expansion." Cali has served in corporate positions at likes of Warner Lambert, Pfizer, Cadbury and Kellogg, while Towle had roles at P&G, Heinz and Kellogg. "Their 60 years of collective experience will be invaluable to our company and help us further attract world-class talent to our growing team," said Hart ceo Tim Connell. Using pioneering pasteuring precepts of Dr Richard Watson, Hart is described as "largest single-source producer of 100% free-range, grass-fed milk" in N Amer. Among NGN's other investments is bev player Cusa Tea, which makes powdered instant teas (BBI, May 31 2019).

Cold-brewed coffee marketer Rise Brewing is acting deliberately but decisively to broaden its reach, adding its first RTD tea entry, broadening its organic oatmilk line and prepping move into bagged coffee. In meantime, with DSD having come up big for co during pandemic, it's adding LA's Classic to roster while seeking solution in Texas, per discussion today with cofounder/ceo Grant Gyesky.

In recent years, JAB and its affiliates have developed well-earned rep for having itchy trigger finger when it comes to acquisitions, accumulating coffee companies, restaurant chains and other trophies with abandon. That seemed to be in back of mind of credit analysts at S&P as they reviewed recent IPO for JDE Peet's collection of coffee brands, which it views favorably as offering "good geographic, category and distribution channel diversity" even if it's "not transformative" and has borne some impact from Covid-related lockdowns. So S&P is raising ratings on both core investor JDE, which is controlled by JAB, and JDE Peet's itself, on assumption they'll make good on plans to pay down debt to manageable multiple of cash flow (EBITDA). Still, with recent history in mind, it warns that downward revision could come if, "contrary to our current base case, we do not see any de-leveraging and adjusted debt to EBITDA remains above 3.0X. In our view, such a scenario is more likely to occur if the group were to engage in a large acquisition, or a series of smaller bolt-ons, thus demonstrating lack of commitment to its publicly stated financial policy." That seems to be financialese for, please don't stroke that itch, JAB!

A San Diego judge has awarded the heirs of bev innovator Hubert Hansen a whopping $17 mil in combined damages and legal costs after a jury had earlier found that Coca-Cola and its partner Monster Beverage didn't own the rights to use his name and life story to promote brands like Hansen's sodas and Hubert's Lemonade. Report late last week in LA Magazine said San Diego Superior Court judge Timothy Taylor awarded the 15 children and grandchildren of Hansen who'd brought suit $9.6 mil in damages and their legal reps $7.4 mil in legal fees in compensation for the defendants having violated Calif's Celebrities Rights Act. Tho verdict is final, story notes that KO and MNST may appeal.

Move by Unilever to forego advertising on Facebook, Instagram and Twitter platforms out of concerns over unregulated hate speech seems to be rippling out to other major CPG players, with the bevcos Coca-Cola, Starbucks and Diageo announcing suspensions and PepsiCo reported by Fox to be taking pause too. "There is no place for racism in the world, and there is no place for racism on social media," Coke's chmn/ceo James Quincey told Adweek on Fri, in typical statement after Unilever stance. It's going dark on all international paid social media ads for 30 days to "reassess our advertising policies to determine whether revisions are needed," he indicated. (As Adweek noted, it wasn't immediately clear whether KO will stop organic posts on those websites or other, indirect uses.) Riffing on longstanding "third place" positioning as gathering spot, Starbucks statement argued, "We believe in bringing communities together, both in person and online, and we stand against hate speech. We believe more must be done to create welcoming and inclusive online communities, and we believe both business leaders and policy makers need to come together to affect real change."

Capitol Peak Partners, led by former Dean Foods and WhiteWave ceo Gregg Engles, and investment firm KKR were approved by bankruptcy court for approx $340 mil deal to take over all assets of Borden Dairy biz on Fri. Capitol Peak will assume majority ownership and KKR, which originally paid $2 bil for Borden 25 yrs ago, will be minority investor. "Borden's former controlling and majority equity holders, ACON Investments and Mexican dairy co Grupo Lala, respectively, will no longer have ownership interest in the business," co noted. Also, Capitol Peak and KKR will establish new board of directors.