Beer Marketer's Insights
Arriba brand, which moved a coupla years ago to disrupt chelada category dominated by Clamato, has settled on another segment that seems ripe for an interloper: Mexican sodas. So brand operated as partnership between LA Libations incubator, Langer Juice copacker and Gonzalez Northgate Market retail chain this Sep will intro glass-bottle extension called Arriba Fresquita in range of traditional flavors, like Mandarino and Tamarind, and less familiar ones like Coconut and Fresa (strawberry). As with Arriba Chelada, premise is simple and straightforward: to offer a nutritionally clean version with authentic Latino cues of mainstay brand among Hispanics with broad potential reach beyond that demo. Among role models in effort, said LA Libations cofounder Danny Stepper, is Siete food company that's building sizable business on food side with clean versions of mainstay packaged items like tortilla chips, tortillas and salsas. "We want to be the Siete of beverages," as Danny put it in phone call today also attended by Langer owner Bruce Langer, Northgate exec Hector Gonzalez operating in this space under G&R Innovations name and bev vet Tim Wright, who's been enlisted to manage Arriba biz on full-time basis.
Count it as another unanticipated consequence of pandemic-related lockdowns: demand for glass-bottled milk delivered to consumers' doors is soaring. So packaging giant Ardagh Group, via its Indianapolis-based glass group, and its longtime partner Stanpac, which provides reusable glass bottles to regional dairy brands, are pulling out all stops to get bottles to dairies like AB Munroe in RI and Top o' the Morn Farms in Calif. "Stanpac has been working 24/7 to keep up with the consumer demand for our customers' dairy products across the country," per Stanpac marketing vp Murray Bain. "It has been a challenge, but so critically important to keep our customers serving consumers across the nation in a challenging time." So pandemic is accelerating return among some consumers to original way of getting their milk, delivered fresh to their doorsteps. Ardagh vp Gina Behrman told us co's glass capacity so far has proved adequate to task, serving Stanpac out of 2 of its Midwestern locations out of network of 13 US glass plants all told. Ardagh, of course, has been in scramble to boost capacity for aluminum cans that are riding boom in hard seltzers, canned wines and energy drinks, at time some consumers are repudiating plastic (BBI, Apr 7).
At time political and economic pressures are building for loosening of CBD regs, a group of nonprofits have weighed in to urge that gov't adopt science-driven policy led by FDA. "For foods, cosmetics and medical uses, Congress should ensure that this critical job remains in the hands of the FDA, which should not be rushed to make a judgment about CBD that may impact the health and safety of millions of consumers," per letter sent to legislators this week from Consumer Federation of America, Consumer Reports, Public Health Institute and Center for Science in Public Interest. "The agency needs additional time, resources, and authorities to adequately assess the science and unknown risks involved with adding CBD to the hundreds of foods and supplements consumed by Americans."
JM Smucker has entered burgeoning nutritional shot category with shelf-stable line under its RW Knudsen juice brand. New 2.5-oz entries are going out to Kroger and other natural and conventional retailers in 4 initial versions: Pineapple Ginger, Apple Cider Vinegar (containing 1 tbspn ACV), Beet Juice and Carrot Black Pepper Turmeric (with cayenne), each with 3-4 g of sugar. SRP is $17.94 per 6-count case. Only Pineapple Ginger contains any added sugar (to tune of 1 g).
Serial entrepreneur Lance Collins is moving aggressively to get his new Zen WTR out to retailers, enlisting western DSD distribution partners and recruiting recently departed Soylent ceo Bryan Crowley to help with social media and ecomm buildout. Brand has moved right into Walmart chain, as direct-ship customer, and soon will be on Target shelves, Lance said in discussion yesterday evening. Other early retail partners include Safeway's Albertsons, Vons and Pavilions banners, some Kroger banners, and HEB in Texas. It's on Whole Foods shelves nationally via broadline distributor UNFI and has cracked am/pm and 7-Eleven c-store chains.
Sustainable farming? We've been there all along. That's message of new marketing campaign from Ocean Spray Cranberries growers co-op, on heels of Apr announcement that it's become first fruit co-op to clear Farm Sustainability Assessment hurdle. Campaign breaking on TV this week from Chicago-based Energy BBDO agency is dubbed "Ocean Spray X Nature" and posits Ocean Spray's relationship to bees, soil, sun and water as akin to a fashion collaboration. "Ocean Spray X Soil . . . Ocean Spray X Bees . . ." titles herald against footage of working bogs. "Ocean Spray works with nature, every day, to farm the sustainable way," voiceover says. Concept leaves plenty of room for future ad iterations, argued Energy BBDO's co-chief creative officers Josh Gross and Pedro Perez. "The beauty of this collab is that it will continue to evolve because Ocean Spray works with nature in so many different ways," they said in statement. A rep told us ad is airing on news and entertainment programming like The B
DWS Printing Opens Austin Labeling Plant, First Location Outside NY in Its 155 Years in Biz
Label printer and branding strategist DWS Printing Associates is opening its first plant outside NY with inauguration this summer of Austin branch that's outfitted with hybrid digital & flexo press and automated can-sleeving line. DWS, a 5th-generation, family-owned outfit currently based in Deer Park, on Long Island, has operated in NY for 155 years, starting as lithographic co in NYC in Civil War era and now run by brothers Andy and Tom Staib. It's heavily involved in bevs and craft beer, and numbers among its past clients Chameleon Cold-Brew, for whom it did striking mosaic-style iridescent label, and MatchaBar, for whom it did glass-bottle label able to support broad variety of slogans. Austin location, which it anticipates will be up & running by late summer, includes finishing options like spot matte + gloss coating, cold foil and variable-SKU technology, per announcement, as well as sleeving line able to produce full pallet loads. No word back yet from Andy on what prompted initiative.
PE firm KKR & Co, which has long history with Borden Dairy, and an investment group led by former Dean Foods ceo Gregg Engles have prevailed in purchase of co's assets, per Dallas Morning News. KKR and Engles' investment group, Capitol Peak, have formed entity called New Dairy Opco LLC to buy nearly all of Borden's assets, with Capitol Peak Partners leading the bid, people familiar with deal told paper. Borden, recall, had filed for bankruptcy protection back in Jan, 25 years after originally being purchased by KKR for $2 bil back in 1995. Over years, various divisions of biz were sold off but KKR "remained a lender for Borden's $175 million term loan," noted DMN. KKR had argued that bankruptcy filing was not necessary and "thought it had reached an agreement" with Borden to avoid that, as KKR argued a Chapter 11 filing "mostly benefited another private equity backer, ACON Investment, LLC, which took a major stake in Borden in 2017."
AriZona Beverages, grappling with consumers' ongoing migration away from the kind of highly sweetened bevs it specializes in, has entered sparkling water segment under new brand, Santa Fe, not freighted with AriZona's association with highly sweetened drinks. We'd picked up word that entry was in works last fall (BBI, Oct 22) but not yet confirmed green light for launch, or pricing or other details. Now it's a go. It's 16-oz canned "sparkling water with a splash of real fruit" that ranges from 1 to 17 calories per can, in initial flavor range that includes AriZona mainstay Arnold Palmer along with Lemon, Pink Grapefruit, Raspberry Lime and Orange Mango. Single-cans will go out at $1.99-2.49. Co also will push 12-packs, including rainbow assortment, both at retail and online (at $23 including shipping).
Reyes Beer Division struck deal to buy 2.5-mil-case Elyxir in Watsonville, Calif, operated by the tech vets Skip and Glenn Ely, with closing anticipated Aug 21, our sibling letter Insights Express reported. Elyxir sells about 2.2 mil cases of beer, 350K cases of NAs (including Talking Rain and Novamex). This is already 4th Reyes deal in Calif in first half of 2020, bringing total of 12 mil cases within Golden State, where Reyes also is Coca-Cola franchisee via separate operation . . . Pandemic may have stretched timelines for retail entries, but brands with momentum seem to be motoring ahead. Austin-based Waterloo Sparkling Water is among those continuing to notch major retail wins, now cracking Publix chain in Florida, including its Greenwise Market banners. All told, move adds 1,244 retail locations for flavors like Watermelon, Black Cherry, Lemon-Lime, Grape, Strawberry and Blueberry. As recently reported, as brand approaches $100 mil in retail sales this year, its execs have been surprised at strong reception in Southeast region, where other sparkling waters have struggled (BBI, May 28). Move into Publix adds another key piece there . . . Wonder CBD line (which sometimes goes by W*nder) has added Pittsburgh's Full Circle as DSD partner, as it carefully builds out from Ohio base after launching right in heart of pandemic period. As reported, brand was created by former BrewDog exec Tanisha Robinson (BBI, May 4) . . . WellWell functional bev line has entered about 100 HEB grocery locations in Texas, initially with 5 sku's: Recover (Watermelon + Tart Cherry), Wake (Pear + Ginger), Dream (Vanilla Cardamom) and Plant Protein in both Coconut Chai and Dark Cacao versions. Earlier this spring it entered Walmart chain (BBI, Mar 16).

