Beer Marketer's Insights
DISTRIBUTION: Trent Celebrates First Anniversary with Expanded Portfolio, Aggressive Gleukos Plans
Meanwhile, Bruce reporting progress on Gleukos brand of carbohydrate drinks that he partly owns. It's augmented initial pouches with 20-oz PET bottle, added Pomegranate and Blueberry flavors and secured new funding from single individual investor, whom Bruce declined to identify quite yet. Distribution network includes Straub, Markstein/San Diego, Ace Beverage and GBL in Southland, as well as Columbia Distributing in Pac NW. Current investors include former Johnson & Johnson prexy Jim Lenehan and former Coca-Cola Enterprises prexy Terry Marks. Info at gleukos.com.
Pre Line Adds Powder-Based and Zero-Cal Entries; Will Launch 'Promote, Restore, Enhance' Umbrella
Scot earlier launched healthier-soda co Bahia and then vitamin supplement 24c, which was purchased by Jones Soda as platform for entry into enhanced-water segment, effort that it recently brought to a close in forbidding, price-driven segment. In Pre effort he said he's partner with Coast Brands' Bob Groux, who is part owner and consultant, and exploring other concepts, too.
Bottled Pre Probiotic Enhancer line can withstand hotfill process, yielding shelf-stable product that maintains prebiotic benefits stemming from inclusion of Jarrow Formulas' clinically documented prebiotic blend. It's out in Acai Acerola, Passion Orange Guava and Pomegranate Blueberry flavors, at 50 calories per serving, as well as stevia-sweetened 10-calorie subline in Peach Mango, Pomegranate Yumberry, Pomegranate White Tea and Pomegranate Blueberry flavors. That subline's shortly moving to zero-calorie, Scot said. Powder-based Synbiotic Drink Mix, which is just shipping, offers additional benefit of including probiotics in blend, since it doesn't have to traverse hotfill process, yielding combination that's said to maintain optimal digestive balance.
For now Orange, Calif-based co is focusing on Golden State, with distributors of RTD product that include Haralambos, GBL, Straub, Markstein/San Diego and, up north, Mussetter. Line has cracked Ralph's, Albertsons, Gelson's, Bristol Farms and Whole Foods stores in state. Scot said he's trying to figure out what DSD approach makes sense for the powders.
"Promote, Restore, Enhance" effort ties together Pre's prior involvements in 1% for the Planet and Surfrider Foundation and extends them to encompass environmental, community and lifestyle connotations of phrase, in manner that should tightly support co's retail activities.
Sunsweet Co-Packing Alliance with Purity Organic Includes Equity Earnout, Sales Assistance
Soda Tax Weighs on Wallet, Not Waist-Line, Sez Study; Consumer Poll Sees Opportunity for New Bevs
Meanwhile, recent poll conducted by Concept Catalysts for BeveragePulse.com found 60% of Americans "are concerned about the negative health impact of the beverages they drink." This study of "over 500" Americans also found that currently 74% don't think bevcos care about their health. "Our research shows that consumers' health concerns are having an impact on what they drink," said prexy Bob Faulkenberg. "Some categories will decline, others will grow, and there will be opportunities for new beverages that better meet consumer preferences."
Thomas Kemper Sodas is heading into stevia sweepstakes with 3-flavor canned line that melds stevia, erythritol and other ingredients under brand name Thomas Kemper Naturally Diet. Zero-calorie subline will go into 12-oz cans emblazoned with big zero on front panel, with Kemper logo snugly set inside. Line, in development well over a year, debuts in Cola, Citrus Bliss and Berry Passionate flavors, said Bill Germano, prexy of Portland, Ore-based co. Citrus Bliss melds grapefruit, lemon-lime and spices in light-citrus flavor somewhat akin to Fresca, while Berry Passionate melds 4 dark berries with passion fruit. Even before formulation was complete, line had already been accepted in some Whole Foods regions, said Bill, going out in 6-packs at $4.99-5.99 price range. It will start shipping next week.
Background: Nutritionally Aware Demo Makes Allowances for Taste Tradeoff of Stevia - So Far Recall that Kemper was relatively late to move beyond HFCS in core line, but has seen its naturally sweetened Purely Natural do well. Stevia was conundrum: SPINS data shows that any taste issues of current stevia-sweetened entries have not been enough to derail repeat sales among consumer cohort that is intently attuned to calorie issues, tho that won't last forever, Bill noted. Kemper was able to do better on flavor by tapping undisclosed new source of stevia, carefully designing sweetener blend and selecting flavors that minimize licorice burn. Premium propensity of segment gave co enough margin to use best ingredients, and choice of cans, besides opening up new consumption occasions, put enough separation vs core glass-bottle line so that difference from rich taste of full-calorie line won't come as disconnect. Tho Kemper until now had been strictly glass-bottle brand, Bill said co took comfort from fact that cans have done so well at premium, craft end of beer biz in recent years.
Search for holy grail of natural sweetener that works acceptably even in CSDs seems to be entering new phase, as PepsiCo claims it's near breakthrough, Coke lines up crucial ally and stevia makers Wisdom and GLG continue to scale up. In recent weeks, Pepsi has been suggesting that sweetener breakthrough tying sweeteners to flavor enhancers is imminent, most recently at Beverage Digest conference in NY yesterday. "We have a lineup of products - I can't tell you what they are or what they're going to do in the marketplace, but we are very, very close," PEP chmn/ceo Indra Nooyi told conference attendees, per Reuters. "We want to be out there with a product that is outstanding, not one that is just good," she added, indicating that breakthrough would meld sweeteners with ingredients that balance impact of those sweeteners, say by cutting short aftertaste. That's been particular issue for CSDs, tho PEP has done well enough with stevia in noncarbs like SoBe Life Water and Trop 50.
To advance effort, PEP has previously teamed with researcher Senomyx, move that Coca-Cola countered late last week with its own alliance with Chromocell Corp of N Brunswick, NJ. Co focuses on "extracts and ingredients from fruits, herbs and vegetables for unique ingredients with desired taste qualities," said Chromocell ceo Christian Kopfli. Meanwhile, stevia cos are getting ready for boom in demand. Vancouver-based GLG Life Tech Corp this week signed joint venture deal with China Agriculture & Healthy Foods Co Ltd for sale and distribution of zero-calorie food/bev products in China that are sweetened with GLG's stevia extract products. New venture dubbed Dr Zhang's All Natural & Zero Calorie Beverage & Foods Company (named for GLG founder) is owned 80% by GLG and 20% by CAHFC. Also, Wisdom Natural Brands, marketer of SweetLeaf stevia, just opened new plant in Chile and claims "several large brands are rolling out with our branded ingredients from early 2011," per letter from svp Angus Flood.
Plan seems to have been pulled together in helter-skelter fashion since Red Bull termination, with not all brand suppliers to Prestige in the loop as Zail proceeded, and some details remain sketchy. In essence, tho, seasoned operator Zail will serve as consultant to Classic, Miller/Coors house serving LA and San Bernardino Counties, and Straub, Bud house serving Orange and Riverside Counties. "Two first-class organizations, with seamless boundaries," Greg told BBI. Recall that Straub earlier dissolved distribution partnership with Coast Brands founder Bob Groux, maybe making this little bit of grudge match. Apparently also in mix are GBL, serving San Fernando Valley, and Trent Beverage, serving eastern area including high desert, and Markstein in San Diego. Among Prestige brands that seem to be seguing to Classic and/or Straub are Nesquik milk brand, Popchips snack brand and Xyience energy brand, but several choice brands have opted to go to Haralambos, including fast-growing Calypso lemonade line, Thomas Kemper boutique sodas and hot Stone craft beer brand. Others, like Voss water, are still working out new arrangements. (Related stories on Trent Beverage, Thomas Kemper Sodas below.) More on this one as it develops.

