Beer Marketer's Insights

Beer Marketer's Insights

Enjoying the access its first canned entry, Joe Energy Tea, has given it to channels like c-stores, NJ-based Joe Tea is expanding range, adding Mango, Raspberry, Peach and Lemon flavors this spring to initial unflavored 16-oz entry powered by caffeine and ginseng. Pending move was disclosed at recent Fancy Food Show in SF. Joe Tea, of course, has built seemingly substantial biz on 20-oz glass bottles that often are adorned with image of pickup truck on front label. That core line by now has been expanded to 21 flavors, from Peach and Half & Half to Peach Tea Lemonade, and it will add Blood Orange Lemonade in coming months, too. Also in mix is 8-flavor range of Joe Chips . . . Nocco, the Swedish-based BCAA brand that's been building a base in US over past year (BBI, Oct 10), has brought strawberry-flavored Miami flavor available in its core LA market out east, debuting it as limited-time offering at Wodapalooza CrossFit Fest in Miami, where Nocco-sponsored athletes like Haley Adams, Samantha Briggs, Zach George and Thuri Helgadottir have been competing. Like other flavors in line it contains 3,000 mg of BCAAs, as well as 180 mg of caffeine. Co claims to be in 800 accts by now.

As word ripples out about WeWork's efforts to drop on-tap beer and wine in favor of array of non-alc offerings, some are treating move as further sign of younger workers' more abstemious lifestyle. BBI had first reported the move last month in discussion of expansion of Joyride's draft bev biz, which is filling the gap in some key territories (BBI, Dec 19). "Community update" sent out by WeWork to US and Canada locations indicates that "as part of our mission to satisfy our members' evolving needs and preferences, we've been expanding our on-tap beverage selection . . . to include a larger array of options, such as cold brew, seltzer, kombucha and cold teas," using insight gleaned from member survey last year. "The expanded selection will replace all remaining beer and wine taps in the US & Canada as we phase out on-tap alcohol from locations that offer it." Cutover should be complete by end of next month. Opined Marketing Daily: The replacements "say something about the change in consumer tastes, especially among younger adults." Tho WeWork parent We Co has been in belt-tightening mode, co maintains the switch away from alcohol isn't being driven by cost considerations.

LA-based sparkling-CBD player Day One has made a clutch of key hires, topped by recruitment of Red Bull, P&G and J&J vet Christian Patino as evp/gm. Brought aboard as distribution dir is Joel Jay, who brings 12 years in similar roles at Red Bull North America and Coca-Cola. And it's pried loose Core Nutrition vet Blake Nyman to serve as head of brand, after serving in roles at Alo Yoga, Generosity Water and Red Bull as well . . . Chicago-based Protein2O, claiming to have built presence to 40% ACV by now, is bulking up its sales team with addition of Wrigley and Mars vet Greg Newstrom as sales dir, augmenting sales efforts under prexy Andy Horrow and sales dir Joey Suhey. And it's recruited former Walgreens exec Sandy Colquhoun to manage brand's expanding brand ambassador, sampling and merchandising efforts, reporting to founder/ceo Bob Kral, himself a Walgreens vet, and teaming with sr merchandising dir Matt Braet . . . Love Beets USA, Philadelphia-area firm that offers lineup of edible and drinkable beet-based products, has brought former advisor Rob Doolan back to fold as sales dir after digression to similar role at Gourmet Garden, which was acquired by McCormick in 2016. During Love Beets' creation a decade ago, Doolan had offered advice to husband-&-wife founding team of Guy and Katherine Shropshire, who source their beets and produce their finished goods in Rochester, NY.

Tho legions of Americans who dine out at taquerias and other Mexican eateries by now are familiar with style, packaged agua fresca drinks have been a graveyard of dashed expectations, with numerous entries from Nestle on down to agile indies biting the dust. Saying those brands "have not told the story properly," an LA-based entrepreneur named Villan Garcia and his Brooklyn-based uncle Pedro Garcia are trying again via lucha-libre-themed line called Agua Lucha. Lineup picks up on authentic cues on front label via lucha libre mask and traditional glass urn, while boasting of "real fruit" and agave on short ingredient list that counts only 5 ingredients in case of hibiscus-based Jamaica flavor. But it's no diet drink, coming in at 31 g of sugar (130 calories), in keeping with highly sweetened recipes that define genre. It's out in stalwart flavors Tamarindo, Jamaica and Mandarino, identified as "hecho en California" (made in Calif) and priced at $1.99 per half-liter PET bottle.

Years ago, German fermented soda brand called Bionade caused a bit of a flurry as it sought to build out presence in US, even prompting a reaction from Coca-Cola in form of its own fermented CasCal entry. It launched via Spaten beer network and even had designs on building an Iowa production facility, but in hands of amateurish crew without much experience in peculiarities of US bev biz, it sputtered out after a few years, as did CasCal. Both may have been ahead of their time, given scant recognition then of categories like kombucha and drinking vinegar. Now, in hands of specialty food importer Carl Brandt Inc, it's been trying again over past year and a half, entering broadliner UNFI this past Oct and so far targeting specialty outlets and small grocers with its 11.2-oz glass bottles in Elderberry, Lemon Bergamot and Ginger Orange flavors, said Brandt exec Pat Skopp, speaking at booth where Bionade had modest presence on shelf among mainly food items. Price is $2.49-2.79. Pat said brand maintains good recognition in Germany and has been able to ride rise in kombucha awareness to tap into ready consumer base. Now it's building its ecomm biz too, bringing in shrink-wrapped half-liter PET bottles with embossed necks that are configured for Amazon, in Cloudy Lemon and Elderberry flavors.

Any fear that California would shift burden of collecting can/bottle deposits onto suppliers (BBI, Jan 13) has subsided for now as SB 372, pushed by Sen Bob Wieckowski (D-Fremont) came up 4 votes short of clearing State Senate before deadline ended this week, per AP. Bill's failure is "setback for consumers who are looking to us to transform a broken system that is crumbling before our eyes," said Wieckowski. He plans to work now with Gov Gavin Newsom to restructure state's recycling program after his 2d proposal in last 2 years failed. Recall earlier this month, LA Times reported half the state's recycling centers have closed over past 6 years, driven out by high real estate prices, and Calif container recycling rate declined from 85% in 2013 to 75% in 2018. This past Wed, Gov Newsom mentioned during his budget proposal that "he wants to reform the recycling program this year," noted AP. To do that, "he's going to have to buck the beverage and wine industry, and I'm optimistic that his heart is in it," said Jamie Court, prexy of Consumer Watchdog advocacy group.

How much the world can change in just a few short years! That message was brought home after Coca-Cola's strong Q4 results yesterday, which boosted KO stock another 3% to all-time high. KO's market cap is now sitting at $252 billion, compared to Anheuser-Busch InBev's $149 billion. BBI's colleagues at Insights Express can still recall 2016 analyst dinner they attended, where many investors assumed ABI's eventual acquisition of Coke was all but inevitable. That's not even remotely a possibility these days. KO's position strengthened again yesterday, while ABI stock dropped 10% after it announced Q3 results, with more potential headwinds looming in Q4.

Cott Corp can now boast of being a pure play in water, having quickly found a buyer for its S&D Coffee & Tea unit. That buyer is private-label supplier Westrock Coffee, which is paying $405 mil for biz that COT picked up with its acquisition of DSS Waters in late 2014 but hasn't been central to its strategy. S&D roasts coffee and brews tea for foodservice channel and also sells extracts, while Westrock describes itself as a farmer-focused roaster ethically sourcing from 20 growing regions. Importantly for Cott, the sale, coupled with planned acquisition of Primo Water, "positions Cott to be a pure-play water solutions provider with financial metrics more in line with our water peers," said ceo Tom Harrington. Deal, anticipated to close later this qtr, completes Cott's transition from primarily private-label soda producer, for whom water was ancillary activity, into all-water, all-the-time giant mainly focused on home & office delivery (HOD) market. Cott had indicated it was considering sale or spinoff of S&D earlier this month (BBI, Jan 8), so that deal came together quickly, with help of BMO Capital Markets. Brown Bros Harriman's private-equity arm, BBH Capital Partners, will supply acquisition capital alongside Westrock Coffee's existing investors, including Stephens Group, the cos indicated.

Don't expect skateboarders, moto cross riders or daredevils parachuting from outer space in ad for Coca-Cola Energy that's slated to air on Super Bowl this Sun. Instead, it's enlisted actor/director Jonah Hill and producer/director Martin Scorsese to dramatize more pedestrian, less exhilarating energy-drink consumption occasion more familiar to most Americans: rousing oneself from semi-slumber on the couch to get out to a party from which your buddy has been texting you anxiously about your arrival time. In spot via Wieden & Kennedy dubbed "Show Up" (with accompanying #ShowUp hashtag), Hill is yawning on couch at 9:30 on Saturday night when Scorsese texts him from costume party asking where he is. Spot goes on to series of visual riffs on three ellipsis dots that torment waiting phone users, including triple headshot of rapper YBM Cordae and 3-eyed bullfrogs that may be riff on stars of Budweiser Bowl ad of ages past. Spot seems to take care not to tread on motifs worked by partner brand Monster Energy in its marketing, in keeping with Coke's avowal that it's seeking to expand category. Hill finally gets energized by stop at c-store whose coolers are filled with nothing but Coke Energy, sight that likely will never be seen IRL. Ad is believed to be first time Coke has used Bowl platform as launchpad for new brand, as rival PepsiCo has done for decades. Coke has posted ad here.

In using repurposed grain from brewing process, Canvas Protein + Fiber shake anticipated wave of interest in regenerative agriculture and made for good fit with brewing giant Anheuser-Busch InBev's venture arm, Zx. But that apparently wasn't enough to make it viable, and our contacts confirm that brand no longer is in production, after its social media activities went quiet early last year and online retailers began to list it as sold-out or unavailable. Brand was operated by Sarah Pool, entrepreneur behind Pacific Northwest Kale Chips and Pacific Superfood Snacks, and Jason Stamm, who's now heading innovation strategy in Europe for ABI. On his LinkedIn page, Jason describes Canvas as "Zx Ventures' first organic startup; a fiber and protein beverage product resulting in unanimous board support and $2M investment," following successful Kickstarter launch to tune of $50K. Neither Pool, whose LinkedIn page suggests she's still running co, nor Stamm responded to recent inquiries from BBI on status of project. Earlier this week, we reviewed ongoing push by ABI into NAs as well as continued expansion of Zx and other innovation arms (BBI, Jan 28 and 29). There inevitably will be winners and losers, and Canvas is looking to be one that hasn't made it, at least so far. We offered update on another Zx affiliate, GoLive, above, and will return in coming issues with update on another partner, Owl's Brew, via our encounter at Fancy Food Show.