Beer Marketer's Insights

Beer Marketer's Insights

GMCR has officially changed its name to better reflect that "we are now an integrated company, a technology company in the beverage business," co declared on its Web site. With switch to Keurig Green Mountain, publicly traded co acknowledges "the value that the Keurig system brings to our business" while at same time "honoring our heritage and the Vermont roots of Green Mountain Coffee." Recall that former Hansen Natural undertook similar move to recognize growth engine when it renamed itself Monster Beverage a coupla years back.  

Senomyx Inc was awarded GRAS certification for its Sweetmyx flavor enhancer by FDA, reported Bloomberg. That clears way for PepsiCo, which has exclusive rights to product, to start using in its bevs this yr as it competes with Coca-Cola to develop more naturally sweetened CSDs that might turn around sagging core biz. "PepsiCo is pleased that the flavor modifier Sweetmyx has received this important designation," co said this morning. "We see strong potential with Sweetmyx, and this provides us with yet another option for our innovation teams to develop flavor systems that help meet consumer desire for tasty beverages with less sugar and lower calories." PEP did not elaborate on which of its products it would potentially mix with Sweetmyx. As noted in past in BBI, it appears to have backed away from offering any timeframes for when novel sweeteners will enter mix.  

2013 Monster Energy Ultra was best-selling new product in c-stores in 2013, per IRI data, doing $268.2 mil in sales, enough to rank it in Top 10 overall. Red Bull Total Zero was 2d-best new performer with $139.1 mil in sales, also making Top 10. Other NA bevs that made Top 10 included Neuro, #7 with $52.1 mil in sales; Pepsi Next, #8 with $31.1 mil in sales, and Starbucks Refreshers, at #10 with $24.1 mil. Pepsi Next did $83.2 mil in dollar sales in multi-outlet data, which ranked it #8 out of 9,500 brew brand launches that hit store shelves last yr, per IRI. Eight O'Clock K-Cup was ranked #7 in multi-outlet stores with $89.8 mil in sales.  
Consumers of a certain age will remember the expression "Texas tea" as euphemism for oil in theme song to Beverly Hillbillies sitcom. These days, it's an actual tea brand, launched by Austin Beverage distribution co seeking replacement for local fave Sweet Leaf Tea after that brand's post-acquisition transition out to Nestle Waters system a few years ago. Result is broad line of organically sourced Iyerpadi teas whose entries are themed to specific Tex locales as source of identifying ingredient, packed in Snapple-style 16-oz widemouth glass bottles. As with Whole Foods-targeted RTD entry from Third Street Chai detailed yesterday, creators Deepak Bajaj and Brad Miller have harnessed variety of upscale cues - in this case regional sourcing of fruit ingredients directly from growers and Non-GMO certification - at surprisingly affordable shelf price, $1.49-1.69 per bottle, barely a premium over Snapple.

Label sports red, white and blue map of Texas with small star highlighting flavor's identifying town: say, Fredericksburg Peach Tea (organic black tea with peaches sourced in Fredericksburg), Poteet Strawberry White Tea (organic white tea and Poteet fruit), Austin's Own Goodflow Honey Green Tea (using Texas wildflower raw honey) or Sugar Land Sweet Tea (black tea with cane sugar grown in that part of Tex). RGV Texas Style Half & Half uses grapefruits from Rio Grand Valley, while Dove Creek Unsweet Tea uses mint from banks of Concho River and Pecos Cantaloupe Tea uses fruit sourced from last cantaloupe grower in area. Labels, caps, water are all sourced in Texas for brand that's positioned as "Real Texas, Real Tea." Brad noted that fruits are put in 20 minutes before tea in brewing process to yield rich, rounded taste. With other Tex brands like Big Red and Shiner Bock having established broad US popularity, hope is that positioning will prove a draw well outside state.

Brand started 4 years ago in footprint serviced by Austin Beverage, moving into Central Market, Whole Foods and Kroger stores. By now it's available in contiguous states like La, Ark and Okla, and it's just entering Colo and Utah (via Golden). New-age sales vet David Britton has been enlisted to help them step up presence. Info at TeasofTexas.com.  
Among more striking entries on protein front was Rumble Supershake, packed in full-wrap resealable wide-mouth aluminum bottle emblazoned with slogan, "Feed the good." (That's request BBI editor often makes of wife at dinner hour.) Launched in Canada in 2012, line offers 20 g of milk- and whey-based protein per 12-oz bottle, and also exceeds 3K mg of Omega-3's. Its 22 ingredients include green tea extract, veggies like kale and spinach, fruits like black currants and pomegranate, with organic maple syrup and stevia as sweeteners. SRP is $3.99. Victoria, BC-based co is run by former lawyer named Paul Underhill who was struggling with cystic fibrosis and created recipe in kitchen as alternative to Boost and Ensure. His partners include naturopath Kim McQueen and her ex-banker James McQueen, along with 4th partner with sales/distribution background. After attaining national presence in Canadian Whole Foods stores, they're now aiming to penetrate natural channel on West Coast, as well as Amazon.com, promoting line as balanced, healthy-lifestyle-oriented choice. It's won Non-GMO certification. Brand info at DrinkRumble.com.  
It's one of tougher calls that Greg Steltenpohl has had to make in building diversified bev portfolio under Califia Farms and Cuties brands. Tho Pasadena, Calif-based co's whey-based Protein Pure Almondmilk, with 8 g of protein per 10.5-oz bottle, has garnered quick following as upgrade to Muscle Milk among youthful athletes, online outcry from vegan constituency has made him reconsider effort, and now he's planning to drop line this summer and launch vegan entry instead. "We got spanked online," Greg recollected in discussion at Califia Farms' extensive booth in Hall E, where most innovative brands are usually concentrated. While he ordinarily wouldn't respond to cyberbullying, he said, he detected consistent tone of emotional honesty in comments, along lines of, "We thought you guys believed in vegan." So tough call was made, even tho R&D barriers to vegan entry are daunting, as is non-GMO certification process. Tho co had planned all along to bring out vegan entry down road, once hurdles were surmounted, whey item "has been selling like crazy," he noted ruefully. (More on Califia Farms' other show offerings in upcoming BBI issue.)  
Former Canada-based LVMH exec who got deep into health issues while nursing nagging soccer injury has debuted highly drinkable line called Botan that uses patented process to extract protein from plants and render them fully soluble. New line, in 16-oz straight-walled glass bottles containing 12 g of protein, debuted at show in Pineapple Coconut, Cherry Tomato and Strawberry Cucumber flavors, each containing just 110 calories per bottle. Price on shelves will range from $5.99 to $7.99, said founder/ceo Edward Cannan, who handled luxe alcohol brands at LVMH before founding Botan Ltd in Santa Monica, Calif. Item employs non-GMO-certified pea powder and obtains sweetness from apple juice, stevia and monkfruit, with no added sugars. Edward said technical hurdles required 3 years of development to resolve, with brand launching 5 months ago in Whole Foods' Northern and Southern Calif divs and since adding Midwestern and Southwestern stores, serviced via 4 UNFI warehouses. Also in mix have been Mother's natural food chain and, now, Bristol Farms and Erehwon. It just buttressed UNFI with Nature's Best on distribution front. Info at DrinkBotan.com.  
Among more established brands, doc-devised Orgain debuted what it touted as first-ever USDA Organic-certified vegan nutritional shake, offering 11-oz resealable aseptic box containing 16 g of plant-based protein. Line is launching via 60-day exclusive at Whole Foods, at price of $2.99 per unit, said founder Dr Andrew Abraham, who's based in Irvine, Calif. Item's trademarked protein blend includes ingredients such as brown rice, sprouted chia seeds, flax powder and hemp. It also includes organic veggies such as kale, beets and spinach, and organic fruits such as blueberry, banana and acai. It's out in Smooth Chocolate and Sweet Vanilla Bean flavors.

Orgain also is testing a non-vegan protein entry, Organic Protein, in similar 11-oz aseptic box, and containing 25 g of whey-based protein and no added sugar, and priced at $3.49 or up. Andrew said he's sticking with single flavor, Creamy Chocolate Fudge, for now until he can gauge response. And Orgain is taking leap into powder segment, launching organic line employing plant-based protein in 2.74-lb tubs for Costco, where it will likely go for $30. It launches in same 2 flavors as single-serve vegan items. Smaller packs are in development for nutrition retailers like GNC.

These join 4-flavor core line of nutritional shakes that by now are national presence within Walgreens and Rite Aid drug chains and next month add about 3K CVS units, Abraham said. He expects authorization in Kroger's natural sets soon, too. Info at Orgain.com.  
Most trend reports these days show protein as consumer hot button. This year's edition of Natural Products Expo West reflected that, with rich array of protein exhibitors, many of them looking to sate increasing demand for plant-based protein sources, even as broader-line bevcos beefed up their protein offerings. And reflecting increased influence of vegan community, one brisk-selling recent entry - from Califia Farms - is headed out to pasture (if non-lactose drinks can be viewed as frequenting pastures) after complaints about its whey-based protein. Here are quick takes on some notable entries encountered by BBI.  
Natural Products Expo West proved to be yet another blowout, drawing record 67K attendees visiting 2,600 exhibitors over 3-day period. Show opened on Fri at Anaheim Convention Center and included 635 first-time exhibitors, supporting claim of being innovation hotbed on good-for-you side. Turnout was so massive that some attendees had to run gauntlet just to get in. "The expo is so big now that I had to park at Angels stadium, get my badge there, and then be shuttled in," sighed veteran showgoer. "Thankfully we have a year to recover!"

As always on bev side, show proved rich trove of new cos and new products from existing cos, but there also was unusual grumbling from exhibitors about space allocations and lax enforcement of all-natural mission, with many suggesting that promoter New Hope Natural Media has ridden show's momentum to point where it may be starting to lose control. Some exhibitors complained that massive pavilions occupied in main halls by established exhibitors forced others into compromised locations - this year, notably, athletic arena next door, where traffic often seemed sparse. "What next, the parking decks?" one asked. Also, quite a few exhibitors noted that show's famous vigilance over product ingredients and claims seemed minimal this time around; BBI editor noted quite a few bevs, for example, that employed artificial sweeteners, supposedly a no-no at Expo. In past years, it wasn't uncommon for bev exhibitors to leave their lower-cal lines at home and exhibit just their cane-sugar-sweetened core lines; this year, just like the Disneyland visitors clogging Harbor Blvd's narrow sidewalks, quite a few brought along the whole motley family. A couple of exhibitors' sales staffers, questioned by BBI about artificially sweetened items on display, didn't even seem aware that that's a no-no. In past, veteran exhibitors noted, New Hope staffers didn't hesitate to demand that exhibitors remove offending items or claims, and the usual complaint was of too-strict enforcement. Eastern edition of show returns to Baltimore Convention Center this Sep, while main event returns to Anaheim a year from now.