Beer Marketer's Insights

Beer Marketer's Insights

No surprise that with coconut water having taken off in big metros, lotsa other players are looking to get in game, especially ethnic players that have been in space all along. Natural Products Expo East, in last hurrah at Boston location before returning to Baltimore in future years, showed host of new players in range of packages, from glass to aseptics to plastic, even as some show-goers wondered whether there's room for players beyond core trio Vita Coco, Zico and ONE, and latecomers already in market like Pepsi's Naked. Recall, at beer-wholesalers and c-store shows last week there was buzz about further planned entrants, including powerhouse AriZona brand. Meanwhile, Expo East brought new entries like bottled aloe/coconut water blend, aseptically packed wild-harvested entry from sons of Danone chief Franck Riboud (items below) and Coco Water "isotonic beverage" in full-wrap Snapple-style glass widemouth, from Thai co. (It also showed Aloe Water "natural detox drink"; both go for $2.29.) On show floor BBI encountered or overheard any # of annoyed retail buyers who love category but wonder when supply will catch up with demand. It all makes for dynamic and somewhat unpredictable environment.

Alo Rides Core Aloe Ingredient into Coconut Wars Among those with branding suited to general market that threw hat in ring was SPI West Port of South SF, which piggybacked its intriguing Alo line with shelf-stable aloe/coconut water blend branded as Coco Exposed. Line debuts in 11.8-oz plastic bottles vs half-liter bottles for Alo line, in 5 flavors containing chewy aloe vera bits familiar from core line: Passion Fruit + Pineapple, Wheatgrass, Mangosteen + Mango, Peach + Kiwi and Goji Berry + Lychee. SRP is $1.89-1.99. Prexy Henry Chen figures intriguing flavors, strikingly branded packs and rich taste using aloe vera straight from leaf (rather than from powder) should give line a good shot in crowded sector, even as Alo line continue to move into mainstream retailers and DSD houses. With coconut water high on everybody's radar now, "we wanted to come out with something nobody has," Henry explained. Brand info at alodrink.com.

Recall that core 7-flavor Alo line - the "o" has distinctive horizontal bar over it - has been testing DSD via Ito En captive network in NY and Hawaii. It's added Trent Bev in Southern Calif and Faygo house in Mich - and been surprised, Chen said, to see Faygo's #1 retail customer prove to be gasoline chain, suggesting it may hold broad appeal. "We do well in conventional beverage sets or natural sets - or even the produce section," he noted. Taiwan-produced brand has cracked such retailers as Lucky Sav-Mart, Cost Plus World Market and just won national placement in Vitamin Shoppe. Canada is strong for brand and it's also ventured overseas into Europe, Australia, Caribbean and Philippines, with Latin America next in sights.

Harmless Harvest Sources Coconut Water in Mexico Group that includes coupla sons of Danone chief Franck Riboud debuted brand called Harmless Harvest in pair of intriguing entries in aseptic boxes: Genuine Young Green Coconut Water, sourced from 200 families in Tabasco state in SW Mexico, and Mato, which melds coconut water, cupuacu, camu camu, guarana and wildflower honey wild-harvested from Brazil. Group, which is involved in range of other green-related projects and food projects such as gelatos, includes Justin Guilbert, former Maybelline/Garnier marketer in western Europe, and Douglas Riboud. Overall goal is to "act as a positive catalyst between consumer power and wilderness conservation." Mato line was 2 yrs in development, Justin said. Lines are wild-harvested but still certified as organic. Some info's posted at harmlessharvest.com.  
The soft drink industry is spending big in Washington State to repeal soda tax that kicked in there in Jul. So far, up to $16.7 mil has been spent to sway voters to ditch 2-cent tax on 12-oz bevs, reported KUOW News. "That's $7 for every voter who's expected to turn out this election," noted report. Meanwhile, group looking to keep soda tax on books has raised just $368K so far. Spending in Wash dwarfs the $4 mil ABA spent to fight off soda tax in Me, and $9 mil spent to defeat a tax in NY. Recent polls indicate 54% of voters said they will "definitely" or "probably" support repealing Wash tax. Local TV ads are pushing "an anti-tax message" that opposition calls "highly deceptive." Supporters of tax claim it's not much of a hardship since it expires in 3 yrs and state needs expected $300 mil in revenue to cover education and health services for state residents. Bottlers, like Tim Martin, owner of Harbor-Pacific Bottling, which handles PepsiCo brands, said it will cost jobs. He has reduced 5 jobs at his co over last few mos. "This is a tough economy and if we raise our prices, which we've had to, people may either buy other cheaper products or stop drinking our products overall," he told reporter.  
Indian tea and industrial conglomerate Tata is believed to be eyeing minority stake in much-buzzed-about Activate line of cap-activated enhanced water, per rumor that's been making rounds in bev biz in recent days from sources outside the 2 cos. If true, that wd be interesting not just because it signals growing interest in well-constructed brand controlled by First Beverage but also because it might rep move by Tata back into active role on RTD side in US. Tata, of course, owns Tetley tea co in US and at various times has vowed to step up bev presence in this country, after having taken plunge with Glaceau stake a few years ago. Of course, when rich Coke offer materialized for Vitaminwater marketer, Tata ended up flipping stake for big profit and having to start anew on building RTD presence here. No comment from Activate/First Bev principals and it's unclear how serious contacts have been or what likelihood is that deal may result. As usual, brand drew interested crowd at recently concluded NACS c-store show. 
Redline marketer VPX has chosen concentrate route for its entry into coconut water fray, opting for 30% juice formulation for its Coco Fit+ entry that was sampled at last week's NACS show. Line debuts in Mangosteen Mania, Savory Acai and 1 more flavor under development, in 16-oz full-wrap bottle priced vs Zico from-concentrate entry at $2.99. Like Zico entry bottle is in deep blue. Line is infused with 33 mg of omega 3's and 1,000 IU of vitamin D3. Label proclaims it to be "ultra low sugar," with 6 g of sugar (35 calories) per bottle. VPX chief Jack Owoc said line has been picked up by 17 distribs in Calif along with others like Brown Distributing in co's hq state of Fla. Line had captured some distributor buzz since VPX staff began talking it up as everyone looks to pull offering in hot category into portfolio (BBI, Sep 28). 
Coca-Cola Consolidated's BYB Brands brand-incubation unit is goin' big on relaxation drinks, venturing a 16-oz entry under Simmer name in Grape and Wild Cherry flavors. Black-can line sports color band at top that flags it as relaxation drink (to avoid confusion with all the similarly packaged energy brands) and slogan "Go low. Simmer down." As often with new BYB items, it's breaking within Coke Consolidated's Southeast footprint and seeking DSD shops in rest of country. Ingredients are all GRAS (generally recognized as safe), meaning line can fit onto natural shelves too.  
Xyience continues to tweak its marketing behind resurgent Xenergy brand, even as it looks to ride ties to UFC to greater distribution around US. Brand has recently picked up distribution in La and Tenn, and is focusing on Fla - target of big push - as well as Ala, Miss and Carolinas. Co is planning 2 collector cans for Q1 based on UFC fighters Dan Hardy and Wanderlei Silva, but dialing down its partnership with Harley-Davidson, whose baby boomer demo is something of a mismatch for youth-skewing energy line. Alliance "helped them more than it helped us," concluded sales chief Reuben Rios. New flavor is on way for black-can Xtreme line. At retail, brand is doing well in QuikTrip, expanding space in set, adding new regions such as Dallas and catching a ride on c-store chain's own expansion into Carolinas. Reuben's back to handling most of sales load himself - recent staff addition Jeff Jonke has moved on, result of "bad fit" between him and co, is all Rios would say. (At show, Jeff was seen working ProVita shot brand, with which he's involved, at BYB Brands booth.)  
So is it the brand or the package? Visitors to Flav's booth at NACS confronted truly unique package, clear-plastic can that could prove of as great interest as the bev that currently uses it, FlavH2O fruit-flavored water. Package produced in China, for which Flav holds exclusive rights for now, has plastic feet and body of soft drink bottle but 12-oz size and flat metal top of bev can. Over past 12 mos Santa Monica, Calif-based co has been getting brand out in markets like NY, where it's in DSD shop Exclusive. Flav chief Rob Chang describes liquid as "aerated not carbonated," resulting in "lightly fizzy" drink that's in compliance with school-board regs in areas like Long Island. Cold-fill line (which must be produced in China) is sweetened with levulose and ace-K, clocking in at 80 calories per can. It's out in familiar flavors like Apple, Peach, Mango and Watermelon-Kiwi. Rob said brand is managing national push via warehouse players like Coremark and McLane. It's also working interest of Lady Gaga, whose connection to brand has helped scrape up media coverage around events like House of Hype's pre-Video Music Awards poolside bash last mo.  
First Beverage, investment shop run by veteran beer man Bill Anderson, has made another investment in NA bev space, taking small stake in Thomas Kemper Soda Co of Portland, Ore. As part of deal, First Beverage's managing dir of operations, Joth Ricci, who's based in Ore and vet of that state's distribution scene, will take board seat in co that was bought from struggling Pyramid Brewing by investor group several years ago. Prexy/ceo Bill Germano told BBI investment co was intrigued by recently launched natural offering, Purely Natural Soda, that's gotten off to good start and become main vehicle for expansion outside West. First Bev's other NA play is Activate, much buzzed-about enhanced-water brand that employs twist-cap to dispense nutrients into water at time of consumption.

"For us, we consider Thomas Kemper to be an emerging brand on a national scale, with opportunities with its (current) portfolio and new products and geography," Joth told BBI yesterday. "It's attractive to get in now." He said First Bev admires both co's current management and the ownership group (which includes Columbia Distributing, where Joth served as gm earlier in career). Key investor is Adventure Funds, whose principal, Tal Johnson, earlier ran Tazo Tea, now part of Starbucks, and was part of investment group that bought into Columbia Distributing.

Investment comes as Kemper actually has decided to exit Columbia in favor of 6 smaller houses, mainly Bud shops, that might be offer brand greater focus in non-grocery accounts (BBI, Oct 5). Over past year, Kemper has pulled back some on national geographic footprint on grounds that most regions are well-served with local entries, making its new Purely Natural entry its main vehicle for national presence, via the natural-foods and gourmet channel. It's taken more gourmet approach, with flavors like Blood Orange and Spiced Ginger Ale. 
Coca-Cola Enterprises, now a Europe-only bottler, elected Danone vet Jan Bennink, 54, as director effective immediately and said Fernando Aguirre will depart board on Nov 30. Bennink most recently was ceo of Danone’s Royal Numico unit, which focuses on baby food and clinical nutrition. As earlier announced, Irial Finan, who managed Coke’s bottling investments, did not join board . . . Attitude Drinks has buttressed the original Chocolate sku for its Phase III milk-based protein recovery drink with Vanilla, launching in Nov.  
Snow Beverages has set lighter version of its Snow vitamin-reinforced, all-natural soda under brand Light Snow. Extension employs stevia-based blend to offer zero-calorie version. Subline breaks with Lemon Lime flavor, tapping into popular diet-drink realm, said ceo Stu Strumwasser. It will break in mid-size cities in Northeast on which brand has lately focused and be available to eastern retail chains, too.