Beer Marketer's Insights
With Vita Coco vet Tim Dwyer now at helm, Flow Water is looking to upgrade sales force and enlist DSD distribution partners in targeted regions as it migrates from natural channel to conventional retailers, including small-format operations. While Flow boasts 70% ACV in natural, its availability is just 3% in conventional, leaving plenty of upside for growth as sustainability issue ripples out thru all classes of trade, Tim believes.
Starbucks Eyes Switch from Dairy to Plant-Based Alternatives as Key Part of Carbon-Reduction Plan
Cut the dairy, Starbucks is encouraging its shoppers as it steps up efforts to cut down its big carbon footprint. On eve of Davos conference in Switzerland, roasting giant released its most sweeping environmental assessment to date, Bloomberg reported, that revealed that its use of dairy comprises 21% of the 15.6 mil metric tons of CO2-equivalent emissions last year, exceeding contribution by coffee (11%), waste (9%) and employee commuting (5%). "Alternative milks will be a big part of the solution," ceo Kevin Johnson told wire service. "The consumer-demand curve is already shifting." Recall we just reported that co is making bigger commitment to altdairy in its US stores with release of Oatly oatmilk in 1,300 Midwestern stores, and such offerings as Almondmilk Honey Flat White and Coconutmilk Latte (BBI, Jan 7 and 8). On co website, in open letter to consumers, he assures that "We will expand plant-based options, migrating toward a more environmentally friendly menu." The announcement
Celsius Heat Gets Redo to Put It More in Synch with Performance-Energy Segment It Anticipated
Celsius Holdings has undertaken a redo of its Celsius Heat brand, bringing 16-oz entry into synch with the fitness-energy segment that it anticipated in many ways. New look moves subline away from dark color palette of past and adds the assurance "Proven Performance" to stress that brand is backed by some clinical support, in contrast to most rivals in space. Recall that brand was launched as endemic pre-workout entry for hard-core fitness enthusiasts, sporting 300 mg of caffeine and 2,000 mg of L-citrulline. By now, with Bang Energy having led way to establishing performance or fitness segment as discrete energy segment often worth its own shelf space, it was time for Celsius Holdings to update Heat to support presence in that shelf set and broader usage occasions, ceo John Fieldly told us in discussion on Fri. Tho recipe hasn't changed, graphic shift will enable CELH "to go dead at the performance-energy category," he said. Pricing also will stay the same, at modest premium to core 12-oz Celsius brand's $2.39 SRP, with co determined not to enter fray of 3-for-$5 promos sometimes seen with Bang and rivals like Monster's Reign. Fieldly said Heat will play key role in 2020 edition of Live Fit tour that broader Celsius brand inaugurated last year, driving targeted marketing programs as tour hits LA this week, then NY and South Florida, where co is based. 
Divested from Kroger in recent weeks, once-again-independent Lucky's Market grocery chain today is commencing 25%-off sale as it prepares to shutter 30-35 of its stores, including all but single store in Florida. Recall that Kroger invested in chain in 2016 with plans to open as many as 50 stores in Florida before concluding in Dec that it wasn't good fit and spinning it off again (BBI, Dec 6). The exiting stores will close on Feb 12, with Lucky's accelerating discounts as target date approaches. By some reports, the remaining Fla store, in Melbourne, will close later this year. Chain was started in 2003 when husband-&-wife couple Bo and Trish Sharon renovated what was then called North Boulder Market in Colo and tilted it toward affordable organic inventory, before embarking a decade later on expansion that took it to Ohio and then Fla in 2016. In Fla, chain had carved out key role in incubating newer health & wellness bev brands.
CSD volume sagged 1.2% on avg price gain of 2.6% for 4 wks thru Jan 11 in Nielsen all-channel data reported by Morgan Stanley's Dara Mohsenian. In this 4-wk period that included Christmas and New Year holidays, Coca-Cola volume was off 1.3% (down a percentage point vs 12 wks) as its avg price increase was up a solid 4.1% for 4 wks. PepsiCo CSD volume decline slowed a bit to -1.9% (vs -2.8% for 12 wks) on modest avg price gain of 0.9% last 4 wks. Keurig Dr Pepper was off slightly (-0.2%) on avg price increase of 2.3% for 4 wks. Private-label brands were off 3% while avg price increase barely changed at +0.7% for last 4 wks.
Small Swedish co called Sproud is looking to offer plant-based alternative to milk with lowest carbon footprint, in part by not pretending that liquid needs to traverse cold chain to get to retail. Entry using yellow pea base has been out in Europe for about 18 months and was on view at Fancy Food at booth shared with pasta maker Ethical Brands Inc, which is serving as importer in preparation for launch in US and Canada in Apr. It will debut in Original, Unsweetened and Chocolate flavors, in striped 1-liter cartons priced at $3.99. The Chocolate sku is claimed to contain one-third less sugar than comparable entries from incumbent brands. Pitches to US retailers are just commencing, but Amazon has committed to carrying brand as have Whole Foods stores in western Canada.
FANCY FOOD SHOW: Laird Superfood Finally Ready to Offer Liquid Extension of Powdered Creamers
How do they ever come up with these ideas? Laird Superfood, which seems to have built sizable DTC and retail biz out of its powdered superfood creamers, is ready now to offer a liquid version packed in a dairy carton. Just like the dozens of other creamers in dairy case, except with power of its superfood blend. "All the same great taste now with the ease of liquid," as promo materials proclaim. Due in Apr from co founded by big-wave surfer Laird Hamilton are trio of entries packed in 16-oz cartons: Original and Vanilla, at 20 calories per teaspoon, and Unsweetened, at 15 calories. SRP is $4.99. They contain same recipe of chaga, cordyceps and lion's mane mushrooms and coconut milk as some of the powders, allowing Laird to boast that it's "first-ever plant-based liquid creamer with the power of organic functional mushrooms." Initial retail customers include Natural Grocers and Sprout's Farmers Market, with Whole Foods due to onboard items this summer, staffers at Fancy Food booth told us. Tho the powders have begun to build availability even in conventional grocers in core markets like Pac NW and Calif, the Laird team in Sisters, Ore, will take it slowly on this, copacking items until they're enough proven to warrant entry into co's integrated mfg systems in Ore.
Cooler Screens, the digital cooler doors being pushed by Argo Tea's Chicago-based founder Arsen Avakian, has won major expansion commitment from launch partner Walgreens, which now plans to bring technology to 2,500 of its stores around US, per Chicago Inno newsletter.
Fevertree Drinks spooked investors by issuing 2d revenue warning in 3 months and saying it's planning to knock US prices down from superpremium to premium tier to stimulate demand. Shares of once high-flying co were off more than 25% in UK trading early today as marketer of Fever-Tree tonics cited sluggish holiday season in UK, which failed to receive the "Boris bounce" some had expected following decisive election win by Prime Minister Boris Johnson, as Bloomberg reported. Meanwhile, even with price cuts in US, ceo Tim Warrillow is anticipating that sales in most promising growth market will advance only in low double-digits this year, off from 33% boost scored in 2019. Players in space tell us Fever-Tree brand has been aggressively promoting in recent months, including $4.99 Walmart deal for glass 4-packs, and has also entered Costco for first time. It's also pushing 8-pack of cans.
Fortified with newly enlisted cmo Julie Galbraith, Riff Cold Brewed is getting ready to drive its shelf-stable canned sparkler Alter Ego nationally in coming year while continuing gradual buildout of its core glass-bottled cold-brewed coffee.

