Beer Marketer's Insights
It's moot point now with postponement of Natural Products Expo West out of coronavirus concerns, but Gratitude Health's Andy Schamisso had been offering, to us, the scariest booth invitation to skittish show-goers. "We're in the Marriott (Booth M804)," he posted. "Come visit us Weds-Fri unless, of course, we're quarantined, then you can visit us from 3/4-3/18." Per his posts, he was also going to be teasing new Keto Fuel Complete Meal that, at this stage of development, is shown as containing 34 g of fat, 22-23 g of protein and 4-6 g of carbs per half-liter Tetra Pak box. Gratitude Tea has been core line so far of co founded by Andy and his late partner Roy Warren. Earlier in career, Schamisso created first bottled white tea, Inko's.
Proud Source Water, one of earlier water players to move into aluminum packs (BBI, Oct 4 2018), has landed $6 mil round led by AF Ventures, formerly the AccelFoods brand accelerator. Proud Source offers naturally alkaline spring water sourced near its Mackay, Idaho, hq. AF mgg ptnr Jordan Gaspar said she hoped to use her co's extensive network of retailers and distributors to accelerate expansion . . . Cascadia Food & Bev, consulting firm based in Ramsey, NJ, is offering Expo West refugees in bev or snack biz "one free month of consulting services to help them through this time and fine tune their approach to put them in a better position to bounce back from the show and sell more of their product," per note from partner Bill Sipper in wake of show postponement . . . Campbell Soup said Q4 was another down qtr for its V8 bevs, with solid performance by its V8+Energy and multipack offerings offset by sagging Splash and Fusion extensions. CPB no longer offers much financial info on bevs, now an insignificant part of mix since co acquired Snyder's-Lance snack co and divested Bolthouse Farms. New team at co has said it's on mission to reposition V8 as plant-based elixir and to emphasize V8 red and single-serve entries. That will leave brand "much better positioned for the future," ceo Mark Clouse assured listeners on investor call this morning . . . Spindrift is claiming to have produced the first sparkling water made from real pineapples, using fruit sourced in Costa Rica for flavor breaking on DrinkSpindrift.com and quickly heading to Amazon and Target. Consumers are being invited to check their 8-pack for hidden gilded cans that signify they're one of 13 winners of sweepstakes offering years' supply of Spindrift, mini-fridge and other swag.
Wonder Drink, which was early into shelf-stable kombucha segment, has won presence at 900 Target stores across US for its restaged 14-oz glass-bottle entries, which recently dropped sugar count to just 10 g per bottle and added prebiotic called Xylo-oligosaccharides. The organic entries go out at $3.29 per bottle . . . Toronto-based non-alc beer purveyor Partake Brewing said it's entered Canada's Loblaws chain with its Pale Ale and Stout entries.
Research/consultancy Zenith Global has completed transaction that will see venerable Beverage Digest newsletter segue to ownership by its exec editor of past 5 years, Duane Stanford. No details were disclosed but Duane, a former Bloomberg wire service reporter who's based in Atlanta, promised subscribers "a fresh visual identity for the newsletter in the coming weeks, as well as new approaches to content and a streamlined delivery method." The deal takes Zenith out of the newsletter biz even as its NY-based rival Beverage Marketing Corp has entered it in recent weeks with publication called Beverage Strategist. Founded 38 years ago by Jesse Meyers (with an early assist from Jerry Steinman, the founder of our parent company, Beer Marketer's Insights, which is now 50 years old), Bev Digest has been mainstay of CSD coverage, tho under Stanford it's moved more aggressively to cover noncarb and energy segments, too, both in letter itself and at conferences hosted in NY. In response to our question, Duane said last night he had no financial partners in doing deal. In note to subscribers yesterday he commended Zenith and its chmn Richard Hall for serving as "devoted owners, collaborators and supporters, and I consider them friends. Today's announcement is the natural evolution of our relationship." All told, Duane has covered bev biz for 14 years now going back to his days at Atlanta Constitution.
Protein shake marketer Orgain is continuing on its accelerated innovation push, setting launches of Collagen Zero Protein Shakes, Organic Sport Protein Powder, Pancake & Waffle Mix and Ultra Simple Ingredient Protein Powder. The new entries, which had been slated to debut at now-postponed Expo West, represent further fruits of capital influx that came last fall when co sold majority stake to Butterfly Equity, same PE shop that acquired Bolthouse Farms from Campbell Soup (BBI, Nov 11). So far, Orgain has continued to operate independently out of its Irvine, Calif, hq under founder Andrew Abraham.
CSD volume rose slightly (0.2%) on avg price increase of 2.4% for last 4 wks thru Feb 22 in Nielsen all-channel data reported by Morgan Stanley's Dara Mohsenian. Coca-Cola slowed its volume decline from -1.5% for 12 wks to -0.3% with solid avg price increase of 3.6% last 4 wks. PepsiCo volume trend improved to +0.1% (vs -2.6% decline for 12 wks) avg price gain of 1.1% for 4 wks. PEP diet CSDs were up 8% while full-calorie slipped 3%. Keurig Dr Pepper volume was up 0.8% on avg price increase of 2% last 4 wks. Private-label CSD brands slowed decline from -2.8% for 12 wks to -0.3% last 4 wks with avg price gain of 1.4%. Note: Morgan Stanley report cautions that Feb results for bevs "were likely slightly boosted" given "SNAP timing last year," as benefits came back on line when month-long fed gov't shutdown ended Jan 25, 2019.
Protein2O is opening up a new front in battle to convince consumers that they can get their proteins in a thirst-quenching way: after helping to pioneer new category of protein waters, Chicago-based co is adding plant-based version made from pea protein isolate rather than whey. The launch, which caps intensive 2-year effort by founders Bob Kral, a former Walgreens and GNC exec, and his son Rob Kral, also intros a new canned format to brand that thus far has employed half-liter plastic bottles, thanks to required retort process, and continues co on its migration to all-natural formulations. Broader plan outlined to us yesterday by Bob Kral is to cut back slower-selling flavors of core line and tilt brand more to protein + function stance, starting with caffeine-inflected subline that debuted last year and next including electrolyte-enhanced version created exclusively for Costco club chain. All these moves were to be heralded at Natural Products Expo West in Anaheim, Calif, this week, until its last-minute postponement over coronavirus concerns. Here's rundown on developments at co operated by the Krals and Gatorade vets Andy Horrow, as prexy, and Sue Wellington, as chmn, from virtual booth meeting (that is, phone call) we had yesterday with Bob Kral. Rob Kral, a former J&J sales exec, serves as vp.
Packaging giant Crown Holdings is bringing on more capacity to meet soaring demand for bev cans. The Yardley, Penn-based co said it's building 327K-sq-ft plant in Bowling Green, Ky, to serve customers involved in sparkling water, energy drinks, CSDs, teas, hard seltzers and other categories. Plant is expected to be operational in Q2 of next year. Crown didn't specify anticipated output levels . . . 7-Eleven has brought its Evolution concept store to Washington DC and San Diego after enjoying result of initial store in Dallas (BBI, Jun 25). The stores feature 7-E's latest innovations, "including made-to-order specialty drinks, a dedicated alcove of wine and craft beers, and an attached Laredo Taco Co. restaurant," as SpecialtyFood.com noted, with consumer and product learning adapted to core stores. Recall, concept even includes organic Slurpees, for customers who care deeply about what they put into their bodies . . . Celsius Holdings said its fitness energy entry has entered 1,500 Walm
PROFILE: Pod Foods Offers Platform for Specialty Food/Bev Brands to Reach Brand-Building Retailers
Pair of young food entrepreneurs who struggled to get their Green Pea Cookies to retail are building a head of steam behind "tech-enabled grocery supply chain" concept called Pod Foods that's aimed at helping to resolve that issue for other beleaguered startups. Tho co is only 2 years old, it's entered 4 regions by now and seems to have struck a chord among some bevcos that have long complained to us about what they argue is underperformance and constant billback cycles of broadliners like UNFI and KeHe.
Now the Italians are doing it, too. Italy's Illy Coffee finally is ready to enter cold-brew segment with entry packed in 8.45-oz (250-mil) slim can using sustainably sourced Arabica beans that have been "cold brewed for 12 hours," as front panel assures. SRP of Illy Cold Brew is $3.49. It joins lineup of Café, Café Unsweetened, Café Latte, Cappuccino and Mochaccino flavors. Illy, recall, has been undertaking something of a reboot in US after longstanding RTD alliance with Coca-Cola sputtered out several years ago and brand segued to Brands Within Reach, now part of New Age Beverage. Intro, originally intended for this week's Expo West, will be backed by such events as sponsorship of BottleRock culinary and music fest in Napa Valley in late May.