Beer Marketer's Insights

Beer Marketer's Insights

It may be a new sub-segment that's opening up at large-format retailers: multiserve iced teas on superpremium side. That's niche that Chicago-based Tiesta Tea is getting ready to enter via refrigerated 40-oz glass bottle that will be unveiled at upcoming Natural Products Expo West, as founders Dan Klein and Patrick Tannous react to encouragement they're getting from store buyers who want more pizzazz to echo what they see going on in produce section. Tiesta's new glass bottles, at SRP of $6.99, will break in 600 Kroger stores spanning 5 divs, joining such other recent entries as 46-oz oz bottle for cold-brewed tea item from Coca-Cola's Honest Tea brand and multiserve Tazo bottle, too. They offer more upscale alternative to mass brands like Gold Peak (Coke), Pure Leaf (Pepsi) and Milo's that often are heavily sugared and not as tea forward, in Dan's view, per discussion this morning. He said multiserve iced tea often is purchased by stewards of dairy section, who're seeing continued declines in milk and OJ, offset by proliferating plantmilk entries, and have envied the kombuchas and other intriguing new segments that have emerged over in produce section, where Tiesta's refrigerated 16-oz teas typically are placed. Those 16-oz items, meanwhile, continue to gradually broaden footprint, adding Stop & Shop and Hy-Vee chains, with Giant Landover due aboard in Apr. They're in about 2K doors now, likely approaching 2,500 by end of Q2, while multiserves should exceed 1K doors this year judging by retailer reception, Dan told us. Recall that bottled line was instigated by key retailer for Tiesta's original loose-tea line, Target. The loose teas continue to perform well, particularly herbal entries like Lavender Chamomile, and partners are eying future extensions that might be lent added functionality via ginger, turmeric or other ingredients. Klein said they've been enjoying unanticipated explosion in sales on Amazon, possibly stoked by backlash vs wastefulness of teabags, tho Tiesta premise has always been that loose tea tastes better anyway and better conveys ingredient's health benefits.

While anticipated vogue for cap-dispensed bevs of over a decade ago petered out with exit of well-financed Activate brand and others, a handful of brands have continued to quietly ply their trade: Karma Wellness Water, created by Jolt Cola founder CJ Rapp, and GoLive Probiotics, first to use mechanisms to preserve efficacy of probiotics, as Karma went on to also do. Turns out that Karma has had a silent partner for better part of a year now: beer and spirits giant Constellation Brands, which disclosed connection this week in announcing marketing campaign called "Believe in Karma." In making announcement, Constellation disclosed that its Constellation Ventures arm had taken minority stake in Karma last July, at terms it's not disclosing. It described it as first investment in non-alc brand, tho its major investment in cannabis player Canopy Growth is about to yield flotilla of NA bevs in coming weeks. Why Karma? "Constellation Ventures collaborates with people and brands to drive innovation and transform the future of the industry together," per statement from Constellation Ventures vp Jennifer Evans. "As consumers trend toward healthier, more mindful lifestyles, it's been exciting to work with Karma Wellness Water over the past 6 months on products and technologies that are reaching to fulfill those desires. These types of investments, along with innovation and insights, ensure we are at the forefront of an evolving beverage industry." Note that GoLive also has big brother on beer side, via Anheuser-Busch InBev investment.

Aggressively branded packaged water Liquid Death, which aims to "murder your thirst," has raised $9 mil in its Series A round, TechCrunch reported, while separately offering glimpse of sparkling extension at Kehe show in New Orleans. The fundraise was led by Velvet Sea Ventures, a new firm created by Buddy Media cofounder Michael Lazerow. Also participating were Ring founder Jamie Siminoff, Toms founding members Jake Strom and Blake Mycoskie, GirlBoss founder/ceo Sophia Amoruso and Thrive Market ceo Nick Green, TechCrunch said. Existing investors Science Inc and Away cofounder Jen Rubio also contributed to round, which brings total capital intake to $11.25 mil now. As for the sparkling extension, which Liquid Death's team had signaled last fall (BBI, Sep 26), it features gold image of rotting skull against black background. Tho co has mainly operated as DTC play, it has been enlisting wholesalers in quest to become a retail presence, too, as big presence at Natl Beer Wholesalers Assn expo last fall attested.

PepsiCo will roll out its newest Gatorade extension, Gatorade Juiced, "aimed at youth athletes and earmarked for the juice aisle," in March, reported Beverage Digest today. Gatorade Juiced will be available in Mixed Berry, Apple Raspberry and Citrus Beer Punch flavors, per Bev Digest. Bottle label includes text: "Juice Based Sports Drink." It will be sweetened with stevia, with each 12-oz bottle clocking in at 40 calories, 9 g of carbs and 7 g of sugar. That's half the calorie count and 1/3 sugar count in regular Gatorade. All the carbs "come from juice" and "there is no added sugar," Gatorade svp/gm Brett O'Brien told BD. "It's bringing younger athletes into the portfolio with a product that their moms, dads and coaches feel great about," added Brett.

Yerbae yerba mate bev brand has been taking a novel distribution tack, quietly receiving minority investment from Vistar last fall and now riding foodservice distribution giant into corporate kitchens, office supply stores and campus stores. The distribution push, in effect at start of year, comes as brand is switching to zero-sugar formulations across the entire line via switch to proprietary sweetener blend using 3 types of stevia. It's also revamping package graphics to drop the black backgrounds that were too cluttered and recessive on shelf in favor of stripped-down look in vibrant colors with distinctive "Y" font for first letter of brand name. Altho we'd been hearing of some flux at Ariz-based co, in conversation yesterday cofounder Todd Gibson emphasized the pending growth in retail footprint, DSD network and staff. Vistar joins prior investors like LivWell, the investment vehicle of Nutrabolt founder Doss Cunningham, and Sprouts Farmers Market cofounder Kevin Easler. At NACS c-store show last fall, Gibson had hinted that strategic investor was in wings (BBI, Sep 23), but said he's only been given OK now to publicly identify it as Vistar.

B. Fernandez & Hnos (BFH) and Anheuser Busch continue to battle in court over military base territory dist rights (see Jun 9, Jun 22, and Jul 8 issues). Hearing held Sep 7 for motion to compel arbitration and preliminary injunction, court documents show. BFH prexy Mario Somoza and finance director Alberto Daubón testified on Sep 7 while defendant's (AB's) request for "non-suit was noted and held under advisement," tho "no witnesses were heard on behalf of the defense," latest court documents show. AB's atty Brian Wallach appeared on behalf of AB Sep 13. "A report and recommendation will be issued" based on hearings.

Ohio Eagle (Saputo family) will buy AB's Lima, OH branch, adding approx. 3 mil cases. Deal announced to AB employees this morn. This will be Ohio Eagle's 3d buy in OH, following Dickerson in 2015 and Clermont in 2018. When this deal closes, Ohio Eagle will sell close to 8 mil cases in state. That's about 15% of 52 mil cases in 2021 sold by AB in state, where it still has 49 share (higher in some areas). Ohio Eagle biz is run by prexy Devyn Duggar, who is John Saputo's son-in-law, and serves on AB wholesaler panel. Ohio Eagle "will keep every single person" of AB One's 52 employees, Devyn told INSIGHTS, as well as the warehouse.

BellRing Brands' Premier Protein brand has formally unveiled line of breakfast-oriented, oat-based protein shakes that BRBR brass teased recently on earnings call, offering entries with lesser protein payload of 20 g vs 30 g of core Protein Shakes, along with 7 g of fiber, 8 g of whole grain oats and 24 vitamins and minerals. As noted, subline still includes dairy protein in its base, so it doesn't play on vegan side, but it does represent first significant extension of core brand, as now-independent co steps up innovation (BBI, Feb 7). The oat line debuts in the breakfast-oriented flavors Apple Cinnamon, Blueberries & Cream and Oats & Maple and can be served hot or cold, Emeryville, Calif-based co indicated. As noted earlier, co is known to be developing entirely plant-based extension but isn't willing yet to discuss it.

Red Thread Coffee, the Sag Harbor, NY, co that's pushed its no-sugar RTD cold-brews into retailers like Whole Foods, Stop & Shop and Fresh Market, has brought aboard coffee vet Jim Kaloyanides as vp sales & operations. Jim, whose great-grandfather founded New England Coffee Co a century ago, has been immersed in coffee biz his entire career, tho he brings limited experience on RTD side. He's held senior roles at Copper Moon Coffee and Club Coffee, and had role in every conceivable discipline at family co, New England Coffee, from sales & marketing to purchasing and logistics. He'll report to ceo Kelly Reilly, a longtime Ocean Spray exec who's been masterminding restage and rollout of brand (BBI, Oct 8) . . . Coca-Cola has named 30-year vet Kathy Lawless, whose many stints have included finance role at VEB, as vp/controller effective Mar 1. She succeeds Larry Mark, who segues to vp for global finance operations, supporting prexy/coo Brian Smith. Lawless had joined co in 1988 as treasury accountant, rising thru variety of roles in US, Europe and Asia before spot running global planning in 2004. She ran finance activities in Canada for 6 years before returning to US for key role in refranchising of N Amer bottlers and serving as finance lead at Venturing & Emerging Brands incubation unit . . . Sarah Pool, who was behind now-withdrawn Canvas protein shakes that used repurposed brewing ingredients and was backed by Anheuser-Bush InBev (BBI, Jan 30), seems to be taking another crack at idea. She has surfaced at new venture in Portland, Ore, appropriately called Take Two Foods that's promising to unveil its first plant-based entries next month. Depicted on LinkedIn post disclosing move is multiserve bottle Take Two Barley Milk that's claimed to sport 5 g of protein per serving. She's cofounder/ceo.

PepsiCo has recruited comedian Amy Poehler as frontwoman of campaign that urges consumers that "No Is Beautiful," Ad Age reported. The campaign carries dual message, both flagging the brand's lack of artificial flavors or sweeteners while also urging brand's primarily female consumer demo to dial back its frenetic slate of activities in order to alleviate stress. Brand cited research that indicates half of women "don't feel empowered to say no to things in their professional lives, while only a third (34%) of men share the same sentiment."