Beer Marketer's Insights
Monster Beverage execs on Thurs boasted how they didn't have to deal back year-old price increase for their robust core Monster Energy brand, but they seem to be getting aggressive on separately managed Reign extension, co's response to Bang Energy. BBI contact has sent us photo from Texas' HEB chain depicting big floorstanding display offering brand at 3 for $5, deal our contact believes is monthlong program of multiple checkout displays per store.
Internet influencer Emma Chamberlain, teenager who's built outsized following of 17 mil on social media in barely a year thanks to being "the most interesting girl on YouTube," per W magazine, has enlisted Steeped bagged instant-coffee brand as platform for foray into coffee biz. Using beans from her favorite roaster, LA's Bixby Roasting, Chamberlain has allied with proprietary compostable tech from Santa Cruz-based Steeped Coffee to offer single-serve Chamberlain Steeped Coffee Bags, available in Medium Roast at $10 per 5-pack. As reported, Steeped founder Josh Wilbur began by building sizable DTC biz behind simple, no-waste Steeped bags and moved on to serving as partners to regional roasters looking for more sustainable single-serve takehome offering than conventional K-Cups and the like (BBI, May 16). Chamberlain now represents an early celeb to make Steeped the focus of her launch, with 9-minute video that's already been viewed 2.9 mil times on YouTube since Dec 22 launch. Wilbur also has been offering his license to potential strategic partners.
New Age Beverages, whose revenues derive mainly from its Morinda multilevel marketing platform these days, has brought in the 20-year direct-sales vet David Vanderveen as coo. David may be familiar figure to some BBI readers by dint of his founding role at XS Energy, which exited to Amway in 2015 and by now is approaching half-bil in annual sales, by his account. He stayed at XS helm after Amway deal, masterminding expansion of its energy and sports nutrition items to 60+ countries. Working with recently enlisted cmo Julie Garlikov, Vanderveen will turn his social media expertise toward building New Age's collection of owned and managed brands, which include likes of Evian, Illy, Nestea, Marley and CocoLibre. "I have a shared vision with (ceo) Brent Willis and his team on how digital and social commerce platforms will transform brand building, and I intend to support the building of New Age into one of the preeminent omni-channel businesses worldwide," he said in statement. Announcement noted that he'll maintain separate role as investor and board member of RX3 Ventures, formed by Roth Capital's Byron Roth and Nathan Raabe along with Green Bay Packers QB Aaron Rodgers, partly with view to getting some of its investment targets into New Age's extensive distribution system where that makes sense. RX3 portfolio currently includes Kitu Life Super Coffee, Hydrant electrolyte powders, CorePower Yoga, Tocaya Organica natural restaurant chain, eyeware firm Privé Revaux and Zero1 football helmet maker Vicis (which drew investments from Rodgers, Roger Staubach, Jerry Rice and other NFL figures but is currently in receivership). RX3 debuted its $50 mil fund last Jun.
California State Legislature is slated this Wed to hold hearings on Senate Bill 372 "that could make beverage manufactures more responsible for helping consumers recycle, and also extend the Bottle Bill provisions to wine and liquor makers," per Los Angeles Times. The state's current bill drafted 30 yrs ago has benefited bev mfrs because "they have never been required to find a permanent repository or reuse for the billions of bottles and cans they produce," per report. While there is a large movement to recycle more waste in Calif, "half of California's recycling centers have closed in the last 6 years," noted LA Times. For example, 45 of LA County's 88 cities have no recycling centers at all, while San Francisco has just 4 for nearly 900K residents. Locals cite "high rent areas" for pushing them out. So this new bill proposed by Sen Bob Wieckowski (D-Fremont) "seeks to mimic Oregon recycling laws" and "would require drink makers to build a recycling program, one that ultimately would be more convenient for consumers." "The state can no longer put off solving this ever growing-crisis," said Assemblyman Phil Ting (D-SF). From 2013 to 2018, California's container recycling rate declined from 85% to 75%, per LA Times.
Another shoe - we'd guess at least a size 14 - has dropped in Cott's efforts to reinvent itself. Co today said it's reached agreement to acquire Primo Water for $775 mil, with plan to change its own name to Primo once transaction is concluded around Mar. Move occurs just a week after Toronto- and Tampa, Fla-based co said it was shopping its S&D Coffee & Tea biz, now viewed as distraction from becoming a pure play in water, an identity that Cott brass believes would elevate shares. Not long ago, recall, Cott was known mainly as a producer of private-label bevs, punishing biz that was unloaded to Refresco in favor of a push into home & office delivery segment. Primo likely is best known for its self-service water refilling stations that can be found in 23K locations, tho it also maintains dispensers in 8,700 locations and water exchange program in 13,800 locations. "As we turn to our new business model, we are taking the opportunity to rebrand our company as Primo Water Corporation to reflect the leading position we have in the growing and attractive water market with the opportunity to be revalued in line with our water peers," said Cott ceo Tom Harrington, who came aboard via co's acquisition of DS Services in its first decisive move toward new direction. "As Primo and Cott have been strategic partners for 6 years, we expect a smooth transition and integration." Combined cos will do about $2 bil in annual sales, assuming S&D finds a new home, and operate in 21 countries.
Nestle Waters North America is quietly becoming new channel for innovative bevs via its massive ReadyRefresh home and office delivery service. After word trickled out that bottled-water platform was in the hunt for outside brands to keep the trucks filled (BBI, Nov 19 and 20), the Stamford, Conn-based unit on Fri formally announced expansion that adds Rise canned cold-brewed coffee and Uptime Energy to range of RTDs that had previously added Vita Coco in Nov and readied plans to pick up Hellowater fiber-infused water. Talks are under way with NA brands in other categories too, we hear. "We take pride in understanding the types of products our customers want and taking action to meet their needs," per statement from ReadyRefresh evp Henrik Jelert. "That is why we're introducing new and innovative beverages that excite our customers and complement our healthy hydration options. With just a click, our customers can quench their thirst with products delivered directly to their door or office." For NWNA, the incremental sales should help to carry costs of system in which some of its traditional brands, like the regional spring waters, have struggled to grow.
FOLO UP: OWYN New Investment Was $7.5 Mil
Investors surrounding fast-growing OWYN plant-based protein shakes can't seem to decide whether or not they want to talk about magnitude of Series B capital round, which came entirely from new investor PowerPlant Ventures, the fund launched by Zico Coconut Water founder Mark Rampolla after his exit to Coca-Cola. Neither they nor accompanying release would specify magnitude to BBI on Mon, but BevNet story later that day carried unattributed indication it was $7.5 mil. Now comes confirmation, of a sort: email from PowerPlant announcing deal whose subject line uses $7.5 mil figure but whose actual content offers no financial details. OWYN execs have termed it minority stake in company controlled for past 2 years by partnership of Halen Brands and Clearlake Capital.
History of licensed bevs has been fraught one, as BBI has chronicled over years. Tho taking licensing approach eases brand-building burden by tapping into recognized icons, only a handful have ever gotten very far, including Marley RTDs and energy entrants like NOS and Full Throttle. Now comes Oregon-based Joffer Beverage, created by family owners of Jelly Belly candy brand who're hoping brand name can serve as shorthand for vibrant flavor of their unsweetened Jelly Belly Sparkling Water brand. New line is breaking next week at 265-unit Hy-Vee grocery chain in Midwest, in 8-packs of 12-ounce cans. They've tapped 8 of Jelly Belly's 100 flavors for initial lineup: French Vanilla, Lemon Lime, Orange Sherbet, Piña Colada, Pink Grapefruit, Tangerine, Very Cherry and Watermelon. Joffer Bev, based in Jacksonville, Ore, is comprised of 5th-generation family members Andy and Becky Joffer and 6th-generation members Justin, Ben and Stephen. Search online indicates existence of glass-bottle, cane-sugar Jelly Belly Soda brand offered by likes of Vat19 gift site, but sparkling essence water clearly puts brand in brisker-growth segment in bevs.
Monster Beverage brass made case yesterday afternoon that shock waves anticipated by some observers from rival brands Coca-Cola Energy and Bang Energy so far are proving to be manageable challenges, even as MNST systematically builds out portfolio to attack niches like value energy, fitness energy, oatmilk and advanced hydration. Tho core Monster brand continues to be modestly down domestically, overall portfolio is generally holding its own thanks to launch of Bang fighter Reign, now at 3.4 share in convenience. As testimony to brand strength, last year's price increase on Monster seems to have stuck, even if similar moves on NOS and Full Throttle proved too aggressive and had to be dialed back. Tho execs are keeping some 2020 innovation close to vest, among new stuff unveiled to analysts in NY were thermogenic extension to Reign called Inferno, fitness-energy-style extension to Hydro called Super Sport employing branch-chain amino acids (BCAAs) and caffeine bomb called Java Monster 300 Triple Shot.
Pair of events specialists named Claire Bertin-Lang and Layla McGinnis have hung out a shingle together as Hero Events Group, "logistical production agency" that offers food, bevs and lifestyle brands expertise in setting up buzz-generating affairs. Claire, operating as CBLLC, in past has put together high-profile events like Bar Convent Brooklyn mixology parlay, Star Chefs Int'l Congress and Eat Drink SF, while Layla has worked with clients like Golden State Restaurant Assn and managed VIP tier at BottleRock Napa Valley. "Events are what we do best, and we know firsthand that premium experiences can happen in a field or a hangar," McGinnis offered. Website at HeroEventsGroup.com lists such past clients as the alc-bev brands Fernet-Branca, Cooper Spirits and Westward Whiskey.

