Beer Marketer's Insights
In further sign of uncertain prospect that Natural Products Expo West will proceed as planned in Philadelphia in late Sep, another massive get-together planned for same time has just been called off: craft beer extravaganza Great American Beer Fest. The beerslurpingpallooza and related competition slated for Sep 24-26 at Denver Convention Center instead is moving to "immersive online experience" Oct 16-17, organizer Brewers Assn announced. Development has no direct bearing on Expo East, slated for same week at new home in Philadelphia after outgrowing longtime host city Baltimore, and feeling pressure to dial up scope even further after cancellation of prime show, Expo West, in Anaheim in Mar. Still, GABF move comes as reminder that coast may not be clear even on other side of summer. For now, organizer New Hope is accepting registrations while assuring exhibitors and visitors it will follow best guidelines in deciding whether to proceed. And a bit further out this fall, in late Oct, massive NACS c-store expo also is accepting registrations (BBI, May 12). So for now, at least, it's a go, tho organizers at Natl Assn of Convenience Stores are similarly keeping options open. Expo East and NACS are by far biggest bev bashes in fall.
In video interview with NutraIngredientsUSA site, Ghost Lifestyle cofounder Daniel Lourenco shed bit of light on partnership with Anheuser-Busch, suggesting that resulting RTDs will play in protein and energy spaces. Supplement co, which has made a mark in part by licensing brands like Welch's, Sonic and Sour Patch, will benefit from A-B tie by having its Chips Ahoy Vanilla Banana protein drinks available in airports, he said by way of example, adding that Ghost wouldn't jump into crowded RTD energy space without clear game plan. So that suggests 2 segments partners are eyeing for RTD entry. Lourenco emphasized that Ghost entered A-B alliance with "full support of all licensed partners." Interview can be accessed here.
As a bev letter launched within a longstanding (50 years old this year!) group of beer newsletters, BBI has been fascinated to witness the increasing overlap between the alcoholic and non-alcoholic segments in recent years. So after longtime Pepsi exec Dave Burwick left cool Bay Area gig running Peet's Coffee 2 years ago for ceo job at Boston Beer back in his native New England, we weren't entirely surprised to see him, just weeks in the job, with Boston Beer founder Jim Koch strolling aisles of Natural Products Expo East, where not a beer was to be found outside the concession stands (BBI, Sep 17 2018). Prospecting for trends to jump on, we presumed.
Waterloo Sparkling Water has been quietly building out senior team over past few weeks, adding vp's responsible for marketing, alternate channels and shopper marketing/ecomm. Among additions to the 'Loo Crew, as Austin-based co likes to call its staff, is marketing vp Adam Kost, a vet of Anheuser-Busch's Zx Ventures incubation arm following runs at Heineken and Pernod Ricard. He's just coming off 2 years as marketing vp at Austin-based spirits house Milestone Brands. At Waterloo, he'll run marketing, ecomm and innovation activities. Also aboard is Nate Bernstein as vp for alternate channels, after long run on supplement and brokerage side. And Darin Lee is vp for shopper marketing programs, after 22 years at News America Marketing, per his LinkedIn profile. He'll also be involved in Waterloo's ecomm activities. They report to ceo Jason Shiver.
Carl Goyette would be first to acknowledge that, in US, natural energy hasn't reached potential that's been widely envisioned for coupla decades now. He should know, because Montreal-based brand he runs, Guru Organic Energy, has itself been in game just over 20 years, putting it among first to offer natural alternative to Red Bull and Monster, and a survivor in segment that's seen scores of brands get shaken out over the years. But perusing consumers' social media comments before bedtime every evening, Goyette senses change in the wind, and as hard evidence he can point to brand's explosive recent growth in its Quebec backyard, where sales lately have soared at 70% rate, leapfrogging Rockstar's 10 share to grab 14% of market. By now it's #3 energy brand nationally in Canada, driving 75% of category growth at dominant Couche-Tarde c-store co. Can similar success happen in US? Over past year, since Goyette ascended to prexy/ceo roles, Guru has been laying groundwork for another sustained push here, experimenting with self-distribution in Bay Area and adding matcha green tea extension to lineup that's remained compact at just 4 sku's, the full-calorie and Lite entries in 8.4-oz slim cans at $2.49 and 12-oz slim cans at $2.99. Broad aim is "to show the world organic can work" in energy category, Goyette declared.
Alan Murray, who left job as ceo of GoodBelly probiotic bev marketer NextFoods last Nov after close to decade-long run, has taken chmn spot at acai player Sambazon, where he's been board member for over 5 years, per LinkedIn update.
EXTENSIONS: Harney's Hemp Division Adds Canned Sparkling Water Called Spark to CBD Lineup
Hemp Division, CBD-oriented spinoff from Millerton, NY-based Harney Tea, has augmented its tea lineup with pair of canned sparkling water entries under Spark moniker with 20 mg of CBD. Spark debuts in Tangy Lime and Orange Mango flavors, both caffeine-free but sporting MCT oils as well as CBD. The flavors come from actual juice or puree. "Spark was a natural extension to our line of teas and juices," said Paul Harney, who cofounded Hemp Division with his brother John in 2018. "The ingredients are simple, just fruit juice, sparkling water and broad spectrum CBD that you can drink throughout the day." They're available online for $45 per 12-pack, lower for subscribers. As reported, since founding they've preferred to operate under the radar, sourcing their CBD from 4-acre farm they operate semi-secretly near their tea co's hq north of NYC (BBI, Jan 28). Earlier entries in 16-oz glass bottles have included Rise (with 25 mg of CBD) and Glide (20 mg). "Handcrafted in New York," label copy assures. Info at TheHempDivision.com.
Coca-Cola ceo James Quincey indicated he's not expecting a quick bounceback for the economy or KO once Covid-19 pandemic clears. "The economic impact of the lockdown is just starting to begin," Quincey said this morning on CNBC's "Squawk Box." Rather than a sharp rise after severe and sudden drop in economy - that V-shaped curve you always hear about - he sees an "extended U" ahead in months to come. Coming out of Covid, Quincey expects consumers to be careful with their cash. "We're going to have to recognize that coming after this virus crisis will be the economic impact and hangover of the lockdown, and there will be a much greater focus from the consumer on affordability or getting the prices lower," he told CNBC. KO global volumes were still negative in May, he indicated, but it's still "very early days of reopening phase." In China, sales have not yet bounced back to pre-Covid levels. KO will need weeks or months "to gauge what the consumer is doing."
Between pandemic and move of Bang into Pepsi system, it's already period of immense turmoil in energy drink sector. Enter much-anticipated new player Rowdy Energy, backed by pair of founders who're highly visible in their chosen realms: Suja Juice cofounder Jeff Church and Nascar star Kyle Busch, younger brother of Kurt Busch and winner of 2009 Xfinity Series and 2015 and 2019 Nascar Cup series.
Yesterday's stories in BBI and Insights Express on Anheuser-Busch tie to supplement co Ghost Lifestyle contained coupla glitches. For one, A-B says minority investment isn't in Chicago-based company as a whole but just the RTD line it's developing. (Still no details on that yet.) Also, while we've heard deal may leave Ghost endorser and fitness icon Christian Guzman in a tricky spot on account of his endorsement and investment in 3D Energy line, Guzman is not involved in Alani Nutrition brand, which is owned and operated by Guzman's partners on 3D, Max Clemons and Trey Steiger, in partnership with fitness model and trainer Katy Hearn. Depending on shape the Ghost RTDs take, they could prove to be direct challenger to 3D, Alani or both . . . In story yesterday about big capital raise by coffee chain Kopi Kenangan, we described investor Jonathan Neman as founder of Sweetleaf when we really meant Sweetgreen.