Beer Marketer's Insights
Dynamo Distributing, closely watched new DSD player in underserved Austin market, has picked up handful of new brands, including Dirty Lemon and Element Kombucha, but is otherwise putting new supplier acquisitions on hold as it seeks to refine operating model. As reported, the DSD house backed by Nutrabolt's LivWell investment arm, recently exited Houston area in order to tighten focus to core Austin and San Antonio market, until it can get service levels up. Its arrival in area was greeted with enthusiasm with brand owners seeking coverage in influential market that includes Whole Foods hq, HEB's Central Market chain, thriving on-premise scene and plethora of food/bev entrepreneurs, but the enthusiasm has been tempered a bit by concerns over teething pains the unit encountered building out coverage. So it's been engaged in reset.
Can an artisanally crafted kombucha that's packed in cans and priced approachably connect with consumers in a cluttered market? Better Booch aims to find out as it prepares to drop its original glass bottles and segue entirely to cans priced at $2.99, without diverging from an exacting culinary approach that its founders believe separates their brand from many rivals stocking same coolers. Augmented by a pair of new flavors, the cans will be the focus at the upcoming Natural Products Expo West in Anaheim next week.
For Denver-based sales vet Joel Skurnik, there's clearly something irresistible about Austin-based bevcos. He's just segued to vp sales at CoCoJo LLC, an Austin-based marketer of Pura Coco coconut water and cold-brewed coffee that's part of Treat Health Corp, after a 2 and a half year run at Boulder Organic Foods, per LinkedIn update. Co has ties to growers in Costa Rica. Joel had earlier enjoyed long runs at 2 other Austin-based bevcos: Sweet Leaf Tea, thru its sale to Nestle Waters, and Live Soda Kombucha . . . It hasn't taken long for Dave Martin, who left Outlaw Energy recently when it closed its doors, to segue to the next energy drink. Now he's teamed up with Kyle Busch at Rowdy Energy, where he's enlisted as vp sales. Rowdy claims to offer moderated lift of type that would be useful to - well, car driver, for one. It uses green tea base and incorporates L-theanine for focus and hefty dosage of electrolytes. Martin, based in LA area, is well-traveled bev exec who's had stops at Fu
Self-heating can has been graveyard of dashed expectations for bevcos over the years, as technology and cost kept packaging format from igniting, tho a few may have ignited on the shelf. Looks like Philadelphia roaster La Colombe is ready to venture into the gizmos, judging by feature on local station PHL17: in segment shot at co's flagship store in Fishtown nabe, La Colombe founder Todd Carmichael demonstrates self-heating can in which twist of bottom portion sets of solid-state reaction that allows aluminum oxide to mate with silicide, yielding burst of heat and residue of sand, as Todd explains to TV reporter, who reports that drink is delicious and that can gets merely warm to the touch. Tho Carmichael describes contents as Colombian coffee, camera shot of cooler shows 2 sku's: Single Origin Brazilian and Single Origin Brazilian with Milk & Sugar. The can seems to be that of HeatGen, new name for co that went out as HeatGenie and raised $6 mil in growth capital in 2018. In TV segment, Carmichael said that's only location where unit is available so far, but didn't disclose timetable for expansion. Segment can be viewed here.
Red Bull sales soared 9.5% to $6.6 bil in 2019 as unit sales hit a record 7.5 bil cans worldwide - enough to supply just about every human on the globe, Bloomberg reported from data posted by Austrian energy drink pioneer. "Profit levels weren't disclosed but the website said they too rose to a record, meaning Red Bull's billionaire owners could be set for another windfall later this year" after co distributed more than half a billion euros of profit to shareholders in 2019, Bloomberg reported. Growth was stoked by India, +37%, Brazil (+30%) and Africa (+25%). Dietrich Mateschitz, who created brand with "Thai entrepreneur and occasional duck farmer" Chaleo Yoovidhya, is estimated to be worth $12.4 bil, per Bloomberg Billionaires Index.
Coca-Cola is opening the kimono a bit on new tack it's taking via Transformational Innovation Team to ease path of internally developed innovation while capitalizing on co's strengths in areas like research and regulatory compliance. Operated as part of Coca-Cola North America and led by nutrition PhD Susan Zaripheh, the team makes available to operating units "a rotating group of specialists" from R&D, quality, safety & environmental sustainability, technical commercialization and scientific and regulatory affairs (SRA), per a description posted a few days ago on KO's website. Latest fruit of such collabs is Cidewinder, devised with Minute Maid juice unit to offer "similar digestive health benefits as kombucha but with less sugar," using "novel ingredient and process from a third-party company." Cidewinder Cultured Sparkling Cider is packed in 12-oz slim can in flavors like Honeycrisp Apple and Blackberry Acai and is undergoing test in groceries and c-stores in Texas and Calif. Earlier efforts have included keto-friendly smoothie launched under Odwalla (BBI, Oct 2) and kombuchas and cold-brewed coffees that have been launched under Honest Tea brand (BBI, Feb 12 and Aug 16). The kombuchas entered modest 20-store test late last year. In intro'ing functional line called Gomega Omega-3 Superfusion at NACS show last fall, KO staffers disclosed existence of Transformational Innovation Team (BBI, Oct 2), but co hadn't previously offered much detail about unit's role and operating style to our knowledge. In posting, Zaripheh is quoted as saying that even entries that don't prove scalable will contribute to knowledge base as co continues to refine its innovation capabilities.
PepsiCo has been exulting lately about how its Gatorade Zero extension has reinvigorated powerhouse isotonic brand that's been in doldrums for past coupla years. But Body Armor sees vulnerability, and it's going after it with new campaign dubbed "Dare to Compare" that attacks core Gatorade brand and fast-growing Zero sibling over their use of artificial sweeteners and red dye #40. Several billboards have already popped up around NY as part of campaign that will extend to a dozen or more metros, augmented by heavy spend on digital/social and influencer kits that will contain bottles of both Body Armor and rival so recipients can try them both and render their verdicts at #DareToCompare. The billboards don't beat around the bush, in one instance showing bottle of Body Armor at left with megatype declaring NO ARTIFICIAL DYES, while depicting Gatorade Zero bottle at right and slogan RED DYE 40.
Having brought Reed's Inc back from the brink production-wise in 6 short months, coo Norm Snyder has won the bump up to ceo there, picking up role held on interim basis by chmn John Bello after departure of prior ceo Val Stalowir. Promotion announced this morning is effective Mar 1 and Norm said co won't immediately move to replace coo function in interest of continuity at co whose Reed's and Virgil's natural brands' popularity with retailers and consumers has been squandered by recurring production snafus. "For the time being, I'll do both, because I don't think my mission is done," Norm told us. So he's not taking victory lap yet. No surprise: those issues cost founder Chris Reed his ceo job 3 years ago and reoccurrence cost Stalowir the role last year, prompting Bello and board to reach out to Snyder, trusted ally who'd previously worked with Bello at NFL Properties, SoBe and Adina. REED shares have eroded from over $5 back in 2015 to about $1 these days as disheartened investors have fled co that's been unable to capitalize on position as top-selling craft soda in natural channel and allowed other ginger brands to ride Moscow Mule cocktail vogue. Under Bello and Stalowir, Reeds did make great strides in shedding LA production base, now in hands of Reed's founder Chris Reed, dropping extraneous products like Culture Club Kombucha and relocating hq to Norwalk, Conn, while unleashing burst of innovation including naturally sweetened zero-sugar versions of Reed's and Virgil's brands, long-overdue Ginger Ale, ginger shots, CBD bevs and canned Moscow Mule alc bev. Tho those were received enthusiastically by the trade, their momentum was dissipated when production snafus resurfaced, putting co back in triage situation where some of innovation had to be backburnered. Snyder's main job was to make sure that never happens again.
Cann Cannabis-Infused Social Tonic made a splash within trade just before hitting Calif dispensaries last year, winning BevNet Live Showdown that spring for canned line that includes blend of THC and CBD, in contrast to legions of CBD-only players (BBI, Jun 13). Last month, Cann reeled in $5 mil seed round led by DTC specialist Imaginary, which is new to cannabiz, and JM10 Partners, which boasts range of such investments. Also in round were Navy Capital, Global Founders Capital (also a canna-newbie) and Cresco Capital, along with individual investors like Brian Spaly, the entrepreneur behind Bonobos and Trunk Club. Imaginary took plunge into new segment because it's "the future of social drinking," as its cofounder Nick Brown said in announcing investment. Cann cofounders Jake Bullock and Luke Anderson "really are trying to change the way people socialize" while offering "better options for the body," as Jake explained to BBI in recent conversation.

