Beer Marketer's Insights
Yesterday we quoted Boston Beer ceo Dave Burwick recalling his Pepsi days with, "Pepsi wouldn't be Pepsi without Coke, and Coke wouldn't be Coke without Pepsi . . . so having a nemesis - in a nice way, if you will - is a good way to improve your game." Or maybe even in a not-so-nice way. Bang Energy's irrepressible creator, Jack Owoc, newly aligned with Pepsi as his national distributor, is wasting no time setting new tone in the cola wars via Instagram post from bangenergy.ceo whose headline demands, "WHO'S YOUR DADDY?" beneath photo of barechested fitness buff Owoc flanked by images of Red Bull founder Dietrich Mateschitz and Monster Bev ceo Rodney Sacks, with whom he's been engaged in legal fracas. "There are many daddies but there is only one MacDaddy," proclaims post from Pepsi's new partner at VPX Sports. "The Bang Revolution has commenced and is now fueled by the immense power of PepsiCo! . . . Your reign is over #RottenRodney Sacks . . . Get ready Coke because Bang Energy is abo
Over years, Karma Wellness Water has taken low-key stance within cap-dispensed bev segment that's borne a bit of a stigma after lofty expectations for brands like Activate didn't pan out a decade ago. That stance changed recently when Rochester, NY-based co launched marketing attack on kombucha commanding consumers to "Believe in Karma" and not so much in overstated probiotic claims of some of national kombucha players (BBI, May 8). Effort builds on core Karma premise that dispensing probiotics at moment of consumption preserves their efficacy, in contrast to kombucha entries that quickly degrade. With principals poking heads up out of trench, we took opportunity last week to catch up with Jeff Platt, former Snapple exec who cofounded Karma with Jolt Cola originator CJ Rapp. Tho keeping some cards close to vest, he offered glimpse of activities that have included so-far-fruitful alliance with minority investor Constellation Brands, slowed DSD expansion until brunt of pandemic is behind us and realignment of corporate priorities, with briskly growing Karma taking priority over other initiatives like licensing of proprietary cap technology or move into CBD.
Even as she navigates what's been perilous pandemic environment for her cold-pressed WTRMLN WTR, cofounder Jody Levy has been incubating no fewer than 3 new ventures that are starting to see the light of day this month. Drawing on her own secret struggles with debilitating health issues over past coupla decades, they're centered around tick-borne illnesses and other virus and parasite infections, tho they're already starting to stretch beyond biotoxicity-related concerns into promising new areas - like pandemic-related stress. Based in Denver area, Levy caught us up on latest activities earlier this week. As for WTRMLN WTR, she said only that it's hunkered down to navigate pandemic with committed investors, with several key innovations ready to go once coast is clear.
It's a Memorial Day weekend unlike any others in generations, given broad lockdown conditions that some expect to stunt big gatherings. Maybe because resulting job losses have suddenly impoverished many consumers, holiday-flyer offerings we've perused seem to be unusually aggressive, with $1 deals on items ranging from Sparkling Ice single-serves and Sunny D jugs to 32-oz Gatorade, and even premium items like GT's Kombucha spotted at 2 for $5 at one major banner. Some briskly growing premium brands, like Essentia Water, Body Armor sports drinks and Waterloo Sparkling Water, seemed immune from the discounting fever, our review of flyer sites suggested, tho.
Reserve a spot for you and your team members for the 2022 Beer Insights Seminar. Our exciting program includes MC's incoming prexy of US sales Brian Feiro, AB's chief commercial officer Kyle Norrington, Constellation Brands evp and Beer Division prexy Jim Sabia, Boston Beer founder/chairman Jim Koch and panel of industry experts from leading assns, NBWA's Lester Jones, BI's Danelle Kosmal and BA's Bart Watson. We will also have a panel of distr
Throwback Thursday
This week in 1970, INSIGHTS reported that talk of legalizing marijuana was all over the news, covered by hundreds of newspapers across the US and top magazines too. A recent book by a Stanford law prof, Arthur Kaplan, a Republican and former asst US atty in Calif stirred dialogue. He was hired by Calif to study drug law revisions and after 3 yrs concluded marijuana should be legalized. He believed "government licensed stores should sell marijuana with high tax on it to 18-year-olds and up," noted INSIGHTS. Time mag wrote that Kaplan's plan "could in fact discourage marijuana use." Such an idea was not popular at time tho as 75-80% of US adults were against legalization. That has now essentially flipped: 68% support legalization, according to a 2021 Gallup poll.
"We were the first brand in beer to make a significant investment in this space," cmo Michelle St Jacques told distribs in Nashville, per MC's Beer & Beyond blog. "We invest more than our biggest competitors combined in podcasting," said Michelle, noting it is "one of the fastest growing media spaces in the past three years," with over 120 mil Americans listening to them currently. Coors Light and Miller Lite sponsor the 3 leading sports podcasts, noted blog, including "The Bill Simmons Podcast," "Pardon My Take," and "The Dan Le Batard Show." Besides MC's major mktg investments in streaming, its investment in podcast space shows co is "not afraid to blow things up to do things differently from our past and our competition to forge a new path that meets our drinkers where they are," added Michelle.
Faubourg Brewing in New Orleans and Made By The Water, a PE-backed group with interests in a group of southeast craft brewers, announced "a 50/50 partnership" this morn with big plans to turn Faubourg's hometown into "the cultural hub of the craft beer industry in the Southeast," NOLA.com reports. Recall, Faubourg is new name of former Dixie Beer brand, acquired in 2017 by the Benson family, also owners of the NFL's Saints and NBA's Pelicans. Made By The Water (MBTW) is backed by Montgomery, AL-based private equity firm Wiregrass Equity Partners, which got into craft beer biz with FL's Oyster City Brewing and acquired NC's Catawba late last yr. Terms of deal not disclosed, but Benson family will make additional investment as cos seek out other craft brewers and brands to bring into the fold.
At Molson Coors natl sales conference in Nashville, ceo Gavin Hattersley began by rattling off in quick succession some unusual stats to show what he called "the upward trajectory of our business." Looking at MC's biggest "workhorse" brands, both Miller Lite and Coors Light are "growing net revenue," Gavin noted, while Coors Banquet "growing volume and total industry share," plus 3 of 4 economy brands growing segment share. Molson Coors now selling "#1 new FAB across several major retailers" (Simply Spiked), "fastest growing hard seltzer" (Topo Chico), and a "larger" % of its biz above premium, including Blue Moon and Peroni "on fire" on-premise. While there are still some "bumps in the road," Molson Coors "grew $$ share of the beer industry for the first time in over a decade" in the 2d qtr and over summer. "Our brands have been on a roll," according to Gavin, and are "positioned for a strong close to 2022." Moreover, Molson Coors will "take our brands even further in 2023."
In discussing latest entries from Harney Tea's CBD spinoff The Hemp Division yesterday, we made a slip in describing unit as founded by brothers John and Paul, rather than Michael and Paul. John is their dad, former Marine and innkeeper who made mid-career switch to tea biz by founding influential Harney Tea; he passed away in 2014 (BBI, Jun 20 2014).