Beer Marketer's Insights

Beer Marketer's Insights

Ad/marketing vet named Marisa Zupan who's moved in Coca-Cola and Anheuser-Busch orbits thinks that what the world needs now is a new soda. Enter, United Sodas of America, a 12-oz canned offering packed in brilliant color palette and offering broad suite of a dozen initial flavors from Pear Elderflower and Sour Blueberry to White Coconut and Lemon Verbena. Instead of going with zero-sugar option that's defining trend in category lately, she's venturing into perilous straits of what used to be defined as "mid-calorie" offering, with 30-calorie offering. She's initially going out online, including via variety packs, but looking also to modestly build out presence at retail.

PepsiCo is among roster of major cos that "are seeking to walk back spending commitments they made to broadcast and cable networks, a dynamic that is testing the industry's 5-decade old way of doing business," reported Wall Street Journal. While ad spending certainly declined during current Covid-19 pandemic, networks were protected to a degree because those upfronts were negotiated back in fall 2019, and advertisers like PEP were locked in regardless of market situation. Now, "under those 'upfront' deals, the first real opportunity since the pandemic struck for advertisers to cut back future spending commitments began May 1. Companies now have the option to cancel up to 50% of their third-quarter ad spending," wrote WSJ. Companies such as General Motors, PepsiCo, Cracker Barrel Old Country Stores, General Mills, Domino's Pizza and pharma giant Sanofi are among those seeking to take advantage, per Jnl's sources. Ad buyers estimated those cuts could mean $1-1.5 bil in commitments would be cut in Q3.

Even as he navigates biz thru pandemic, Recess founder Ben Witte has been playing increasingly influential role in trying to take down regulatory roadblocks to broad dissemination of CBD edibles. He joined board of lobbying group Hemp Roundtable at end of last year and just got bump up to evp 2 weeks ago. He's also worked informally on regulatory barriers with leaders of Vybes and Daytrip RTD brands, after fortuitous meeting on BevNet Live panel last Dec (BBI, Dec 11). In his Roundtable role, Witte was part of discussion late last month with Senate majority leader Mitch McConnell that led him to believe that, even given distraction of pandemic and massive economic dislocation, there is chance of progress soon on loosening reins.

Over past year Recess founder Ben Witte has outlined ambitious strategy of building out lifestyle platform that he hopes will one day be for stressed-out creative types what Red Bull has become to those involved in skateboarding, BMX biking and other action sports. A pandemic may have intervened but youthful ex-techie made it clear today that his vision is unimpeded, as NY-based CBD brand prepares to unveil next Tues an augmented website and direct-to-biz infrastructure, Realitywear apparel line and doubling of flavor lineup on bev side. Latest expansion continues with mission of "subverting the norm, speaking to today's culture and championing creatives in their everyday lives," as Witte put it. Revamped website at TakeARecess.com will intensify Recess' positioning as "an antidote to modern times" for those in creative professions whose anxiety levels just ratcheted up another notch with onset of Covid-19 pandemic. Effort has been funded with Series A round that closed without fanfare last year, as Ben confirmed today. He declined to specify amount or identify investors, not unusual for segment of still-marginal legal status.

Brain-freeze within energy-drink-addled skull of BBI editor caused him to conflate acquaintances Kate Weiler and Kate Weiland and we didn't get the fix in in time yesterday. Kate Weiler is cofounder of Drink Simple marketer Drink Maple, along with Jeff Rose. We apologize for error.

We're interrupting our ongoing stream of show cancellation updates with a sharp departure: Oct show in Las Vegas is going on, Natl Assn of Convenience Stores asserted today. NACS and its co-organizers PEI, PMAA and Conexxus opened registration and housing functions at NACSShow.com today in anticipation that agility shown by industry during pandemic will find way to have mega-show happen safely on Oct 11-14 at Las Vegas Convention Center. C-store extravaganza is, of course, one of major bev showcases, along with Expo West on natural-food side. Just in case, tho, they've extended registered attendees' cancellation policy to 30 days pre-event to offer "maximum flexibility." NACS "is still a number of months away, but our preparedness plans are evolving daily in light of new guidance on Covid-19," said NACS prexy/ceo Henry Armour. "Our team is taking precautions and proactively running contingency scenarios to guarantee we deliver the same high-quality networking, access to new products, and thought leadership you've come to expect without jeopardizing anyone's well-being."

"Farewell to foam," read Dunkin' Brands headline. No, it's not discontinuing its lattes and cappuccinos; rather, headline was flagging cutover from foam to paper cups worldwide, as Dunkin' migrates to more sustainable packaging. Tho the packs may still show up at retail for a while, Dunkin's distribution centers no longer are offering foam cups, making only double-walled paper cups to US franchisees for all hot bevs. Transition to paper cups is anticipated to remove 1 bil foam cups from waste stream annually. Dunkin' said it's also on track to complete transition to recyclable hot coffee cup lids in US eateries by end of summer. By year-end, all Dunkin' Keurig K-Cup pods sold in its cafes and in groceries will be recyclable, co said.

Count Reed's Inc as a Covid-19 thriver so far. Riding reinvigorated core brand, Norwalk, Conn-based co scored 13% net sales increase to $9.5 mil while narrowing operating loss to $2.3 mil from $2.9 mil a year earlier. Its 12% sales surge in core brands was driven mainly by 21% spike in Reed's-brand volume, while other core entry, Virgil's was up more modest 2% as it cycled heavy promos surrounding year-earlier launch of zero-sugar extension, ceo Norm Snyder told us today. And sales seem to be accelerating, with Reed's up 32% for 4 weeks ended Apr 19, per IRI data cited by co, while Virgil's soared 25%. In convo today, Norm said preliminary indications are that May is further accelerating gains. Seasoned vet said he couldn't recall many mature brands that are simultaneously scoring clear gains in ACV distribution, sales velocity and pricing, as REED's core brands are doing lately. So far into pandemic and related recession, then, biz is moving in promising direction. So Snyder pronounced himself "very pleased" with results. Or, as chmn John Bello promised shareholders yesterday ahead of release, "Outlook positive - not Covid-positive, Reed's-positive." For now at least, co is sticking to its full-year outlook of 10% sales growth and gross margin of 32% or more.

CSD volume rose 8.9% on avg price increase of 2.1% for 4 wks thru May 2, in Nielsen all-channel data reported by Morgan Stanley's Dara Mohsenian. That's up from 6.5% volume gain for prior 4-wk period when prices were up just slightly at +0.3%. Coca-Cola CSD volume gained 5.7% (up from +2.7% prior 4-wk period) with solid 3.7% avg price gain last 4 wks. PepsiCo CSD volume gain accelerated to +10.3% (vs +7.5% prior 4-wk period) with avg price decrease of 0.9%. last 4 wks. Keurig Dr Pepper continued to post best gains among top-3 suppliers with volume gain of 13.7% on avg price increase of 2.2% last 4 wks. Private-label brands were up 5.4% on 2.5% avg price increase last 4 wks, nearly matching their trends for prior 4-wk period.

Geoff Cottrill, who's served as Coca-Cola's svp of strategic marketing since 2018, is retiring by Jun 1, per Ad Age report. He'll be replaced on interim basis by Alpa Sutaria, co's US vp of strategy & planning for bottler-delivered brands, per internal memo cited by ad trade. "Cottrill is leaving after a 2d tour of duty at Coke. He first worked at the company from 1996 to 2005 when his duties included overseeing Coke's Nascar sponsorship. He joined MullenLowe in 2016 after a stint as chief marketing officer at Converse," added Ad Age. KO memo today "credits Cottrill for a 'reset' of the company's marketing asset strategy, including bringing aboard new partners such as esports brand Overwatch, as well as renewing deals with the NCAA, US Soccer, ESPN College GameDay and Essence."