Beer Marketer's Insights

Beer Marketer's Insights

Austin-based High Brew coffee continues its enhanced level of brand activation, most recently via limited-edition version of its popular canned Dairy Free Toasted Coconut Latte that's been launched in partnership with singer/songwriter Halsey. The LTO launched last week and sold out entirely on Amazon in less than a day, reported marketing dir Miles Aghajanian. The can sporting vibrant cartoon-y renderings of coconut and cashews is a contrast to relatively austere, earth-toned palette of core line. It's also available on co's own DTC platform, tho Miles anticipates it could be sold out there to by end of this week. (Non-Halsey version and portfolio sibling Bourbon Vanilla Latte already are listed as sold out.) The Halsey tie has been woven into co's ongoing efforts to support first responders and healthcare workers (BBI, Mar 27), with portion of proceeds of Halsey can going to Feeding America charity and co also upping donations of its range of products on Halsey's behalf. The late-Apr addition resulted in astonishing 3,200% spike in ecomm sales for the month, Aghajanian reported.

One-time dairy colossus Dean Foods ended its organizational life quietly on Fri with sales of most of its assets to Dairy Farmers of America and other buyers. Bulk of assets - 44 fluid and frozen dairy plants - went to DFA, which as condition of deal entered into consent decree with Dept of Justice requiring it to operate separately and ultimately divest plants in DePere, Wis, Franklin, Mass and Harvard, Ill. Among other acquirers of DF's distressed assets were Prairie Farms Dairy, which picks up 8 plants and 2 distribution centers, and Producers Dairy Foods, which picks up plant in Reno, Nev, and "Berkeley Farms" trademark. Outside core dairy activities, buyers group led by founders Matt and Susan McLean (BBI, Apr 1) has bought back Uncle Matt's organic juice biz in Florida that Dean had acquired just 3 years earlier. That transaction closed last Thurs. And jv with Organic Valley co-op has been dissolved (BBI, Apr 17).

Financing drought during pandemic? Certainly not for Flow Alkaline Spring Water. Boxed water brand launched 6 years ago by Toronto-based entrepreneur Nicholas Reichenbach just pulled in $45 mil Series D as it motors toward anticipated 100 mil unit sales this year, co announced today. "Flow shares this news with an attitude of gratitude," Nicholas said in statement. "The financial markets have never been more dynamic and our investors' commitment to Flow at this time is a testament to the brand's strength and potential." New round included range of celebs from what Reichenbach refers to as "the 3 elements of the connectivity that builds an iconic brand," technology, sports, and entertainment. They included Shawn Mendes and his mgr Andrew Gertler, who'd both come in last year and led this round. Also in mix were Post Malone and his manager Austin Rosen, Coldplay's longtime manager Dave Holmes, retired baseball star Chase Utley and former Uber engineering dir Curtis Chambers, per the co. (Among other ambassadors, Gwyneth Paltrow entered lineup last year endorsing Flow via retail, out-of-home and digital campaign.) From outside celeb ranks, the Series D included Ruttenberg Gordon Investments from institutional side. Ruttenberg's investments have included likes of Postmates and Blue Apron, which like Flow is seeing upward spike from pandemic.

After Amazon reported surge in sales but plunge in profits, GlobalData retail managing dir Neil Saunders had this to say to Grocery Dive trade letter: "Claims that Amazon is finding the present challenges completely advantageous are very wide of the mark . . . Any advantage Amazon had from the enforced temporary closures of mainstream retail stores will wane rapidly" as those stores reopen with stepped-up omnichannel services. But pandemic, he added, has been more uniformly beneficial for Amazon's Whole Foods bricks & mortar chain. "Here sales are up in the region of 8%, which is an exceptional uplift for the chain, which has traditionally struggled to drive growth. The surge in shoppers stocking up and panic buying has been helpful here. However, the brand's reputation for wellness and health has also been beneficial as it is highly trusted by consumers, something that has become increasingly important in a time of uncertainty." In article, another analyst noted that lower margins of g

New to bevs when he launched Kombrewcha, Ariel Glazer readily recalls his frustration when it took a year and a half for the hard kombucha to actually get onto distributors' delivery trucks. Since brand's acquisition by Anheuser-Busch InBev, of course, that's no longer a problem for Kombrewcha. But youthful entrepreneur has moved on and for his newest venture, LaDiDa CBD-infused oatmilk latte, he's taking a different approach, doing it strictly DTC, inspired by the attention and awareness brands like Dirty Lemon have been able to attain via that strategy. "Standing at Whole Foods (trying to get your brand in) is a shot in the dark," he professes. And with distributors capturing a 25-30% margin, retailers another 25-30%, at least on alcohol side, "that's nuts in 2020, when there are last-mile solutions from here to Katmandu."

Adam Hertel, the San Diego-based sales exec who recently concluded 8-year run at Japanese tea marketer Ito En, has hung out his shingle as a sales advisor under name Summit Sales Consulting and quickly landed familiar name as first client: Riff Cold Brewed. The co formed by a who's who of brewing and coffee-roasting vets in Oregon has brought aboard Hertel as chief revenue officer with mandate to build out its broadly appealing Alter Ego line of cascara-based canned sparkling energizers while undertaking more phased expansion of core refrigerated coffee line, including dialing up presence in Calif and developing plan for move further eastward, he told us today. Hertel came off long run at Ito En North America, where he rose to svp sales, building up both its RTD Teas' Tea and Oi Ocha brands and its packaged dry-tea brands, following runs at Metro Mint marketer Soma Beverage, MillerCoors and Brown Forman. Tho exploiting potential of Bend-based Riff will occupy fair amount of his time, Adam told us he's selectively picking up other clients for whom he doesn't need to be out on front sales lines, including project at prelaunch stage that he's not at liberty to discuss yet. Info here.

Northeast region of US has long served as key incubator of cutting-edge new bevs, from Mistic and Snapple to Vitaminwater to Vita Coco to Essentia Water. That's been factor not just of still-sizable base of indie retailers but also of cadre of DSD distributors - many with current or past Snapple ties, operating via loose alliance called Northeast Independent Distributors Assn - who've been in place to service them. Those houses still are often the go-to option to ignite a new shelf-stable brand, but 122-year-old co called Wades Dairy Service based in Bridgeport, Conn, lately has been making effort to offer an alternative for those who can't crack NIDA-affiliated houses, either because of portfolio conflicts, contractual differences or simply different world view.

Having pulled in its $10 mil Series A just before the roof fell in on US economic activity, prebiotic soft drink Olipop has moved quickly to build out its director-level team, undertake a coupla key retail expansions and sign its first DSD partner on East Coast, Rainforest in NY.

Alkaline Water Co said its flagship bottled water brand Alkaline88 has been picked up by all 2,467 Rite Aid stores in US. Prexy/ceo Ricky Wright said he's hopeful drug retailer will pick up A88 Infused flavored entries and A88CBD CBD-infused entries down the line . . . Celsius Holdings said its Celsius fitness-energy line has signed up as "energy drink aisle" sponsor on Instacart, as it shifts marketing resources to digital activation. Avg online sales have been running 167% higher than a year ago, co said.

Coronavirus notwithstanding, next-gen sports drink brand Hoist continues to expand its retail presence for its RTDs, even as its MGH Hydration Powder Blend is finding such a strong reception within the military that the budding affiliation may begin to guide future marketing and positioning initiatives even at retail. Hoist, recall, is among flock of new sports drink brands seeking to do Body Armor one better in offering natural, scientifically formulated alternatives to Gatorade, via growing DSD network. It's been selective so far in building out from Cincinnati base, but is in hunt for first outside capital to fund push to Calif and other western states next year.