Beer Marketer's Insights

Beer Marketer's Insights

Sourced here. Increasingly, that seems to be potent consumer lure in segments like craft beer, kombucha and HPP juice. Can it work for tea? Perhaps only US co in position to make that claim is about to give it a try. SC tea grower Charleston Tea Plantation, affiliate of Bigelow Tea, is about to launch first RTD line exclusively using tea grown at 127-acre plantation just outside Charleston that's become thriving tourist hub. Line created by CTP partner Bill Hall, a 3d-generation tea taster, will be packed in 16-oz full-wrap PET bottles priced at $1.79-1.89, initially in 5 flavors, all sweetened with cane sugar: Sweet Tea, Green Tea, Green Tea with Mango, Black Tea with Peach and Black Tea with Lemon. Labels depict naturalistic rendering of tea field within oval, along with slogan in ribbon citing Charleston Tea Plantation as "America's Tea Garden." Bigelow connection is cited subtly on side panels but not on front. Production will be at Summit Beverage, once crisis-ridden copacker at former Gatorade plant in Marion, Va, that's on comeback trail under new owner. Hall is working with colleagues at Bigelow to figure out best route to market, with DSD a strong possibility.

Charleston Tea Plantation boasts solid degree of authenticity, given Hall's heritage and reputation of his loose and bagged teas, which have been sold under Charleston Tea Plantation and American Classic Tea brands in range of specialty retailers and Whole Foods' Atlanta div. (There's good chance Hall will consolidate both brands under more authentic-sounding Charleston name.) As grower, Hall eschews use of chemicals, tho he isn't able to seek organic certification because he still relies on nitrogen; use of manure as alternative would be too off-putting to plantation's visitors, he noted. Plantation itself had been run by grower named Charles Shepard as Pinehurst Tea Plantation from 1888 until his death in 1915; it eventually ended up in Lipton's hands as R&D site until Hall purchased it in 1987. A few years later he brought in Bigelow as ally. In Hall's hands, plantation has become agritourism lure, drawing 65K visitors annually for activities like trolley tours of plantation and tea factory on Wadmalaw Island. Hall said he moves significant amount of product out of gift shop there. Pending RTD launch isn't only bit of nail-biting suspense for Hall, who's anxiously monitoring fields to see how new plantings fare given unprecedented freezing snap this winter in SC's Lowcountry.  
Energy drink volume soared 11.5% in convenience stores over 4 wks thru Jan 18, per Nielsen figures reported by Wells Fargo Securities' Bonnie Herzog. Energy drink prices fell 1.5% for 4 wks, as both pricing and volume in line with category trends in c-stores over broader 12-wk period. Monster Beverage outperformed again: +16.8% with avg price drop of 2% last 4 wks. Red Bull picked up 6.6% on 0.8% price increase over last month. Rockstar gains accelerated, up 12.1% last 4 wks (vs 9.5% gain for 12 wks) on avg price drop of 2.3%. Coca-Cola energy brands (read that as NOS) still surging in c-stores too, up 17.9% last 4 wks on 2% price drop. PepsiCo energy portfolio (mainly Amp) was down 0.5% despite 2.9% price decline.

CSD Slide Slows Carbonated soft drink volume was off 2.6% in c-stores over 4 wks thru Jan 18, which represents improvement over 4% avg decline for 12 wks. CSD pricing remains solid, up 4% last 4 wks, slightly ahead of category avg last 12 wks. Both Coca-Cola and PepsiCo prices were up around 5% last 4 wks. KO volume was off 2%, while PEP had steeper 4.2% decline. Still, that was better than PEP's 5.3% drop over 12 wks. Dr Pepper Snapple was off 2.5% on 1.6% price increase.  
GLG Life Tech Corp, Vancouver-based developer of stevia-based sweeteners, said class action lawsuit filed against it in NY for alleged failures to disclose certain information has been dismissed. Co said it secured dismissal with prejudice of suit filed against GLG, ceo Luke Zhang and prexy/cfo Brian Meadows in US District Court for Southern District of NY . . . RealBeanz has hired 5W Public Relations and ad shop JWALK as agencies of record as functional coffee line looks to raise consumer profile. JWALK has numbered among its clients likes of L'Oreal, Lacoste and PepsiCo.  
Republic of Tea is planning foray into biodynamic realm that, a few years back, briefly proved undoing of rival Zhena's Gypsy Tea. Is time ripe now to raise awareness of what RoT staffers view as "organic 2.0"? They'll put it to test in Anaheim next month at Natural Products Expo West with 2 sku's to start: Heirloom Chamomile and Organic Darjeeling. Biodynamic movement was launched nearly a century ago by Rudolf Steiner and has carved out biggest niche in wine biz as what Biodynamic Assn terms "spiritual-ethical-ecological approach to agriculture, food production and nutrition." At show, Novato, Calif, co disclosed other bold moves. Caffeine may be in crosshairs of some legislators these days but it's not keeping RoT from clambering aboard bandwagon of energizing items. It intro'd line of HiCaf Teas that fortify tea's naturally occurring caffeine and L-theanine with green tea extract in pursuit of calm alertness that co deems "better buzz." Line shipped this week in Gingermint Green Tea, Breakfast Black Tea and Orange Hibiscus Tea. Indeed, RoT is going so far in direction of hybridization, that it makes case for latter that "with caffeine and hydrating hibiscus, this tea makes an ideal sports drink." Canisters of 36-50 bags are priced in $13-14 range. Among co's other debuts was line based on popular Downton Abbey show with individual sku's themed to show characters - say, Grantham Breakfast Blend using organic Assam black tea and ginger. That line ships in time for Valentine's Day.

Talbott Offers Artistry as Entry Point Shane Talbott, whose decade-old Talbott Teas now operates as unit of Jamba Juice, doesn't hide his creativity under a bushel basket. Purveyor of indulgent teas in flavors like Chocolate Strawberry Temptation and Chocolate Almond Allure unveiled mid-tier line dubbed Artistry in flavors like Inspired Chai, Brilliant Blueberry and Dazzling Jasmine. "The thinking is that this can be an introductory experience with Talbott Teas and then when the customer is ready to take the next step up in quality they can experience our whole leaf teas," he said.

Numi Adds Chocolate for Indulgent Line As anticipated (BBI, Dec 19), Oakland, Calif-based Numi formally unveiled new line of Indulgent Teas, collection of 4 chocolate teas made with real cacao powder and carrying only 5 calories per cup. Pitched as alternative to pricy, fattening mocha coffees or chocolate bars, sugar-free line ships in Apr in 12-unit boxes with list price of $7.99. Last year, Numi took path into Savory teas made with veggie spices and straddling taste profile between tea and bouillon.  
Despite picking up major brands Monster Energy, Sparkling Ice and V8 over past year, NY distribution giant Big Geyser hasn't lost interest in emerging brands. That seems clear from decision this week to add to portfolio the black-tinged BLK Water from Oakland, NJ-based BLK Beverages. BLK and its BLK+ extension are enhanced with fulvic acid, and claimed to offer zero-calorie way of balancing body's pH. Brand will join diverse portfolio that also includes likes of Vitaminwater, Honest Tea, Muscle Milk and Zico Coconut Water.  
While front-page NY Times piece Mon on shrinking middle class in US focuses on segments like restaurants, retailers and hotels, themes are familiar to those trying to carve out middle tier in bevs as well. "Big stores and restaurants are chasing richer customers with a wider offering of high-end goods and services, or focusing on rock-bottom prices to attract the expanding ranks of penny-pinching consumers," notes article. It cites research indicating that top 5% of earners were responsible for 38% of domestic consumption in 2012, up from 28% in 1995, with current economic recovery "driven almost entirely by the upper crust." As sign of "stark" divide, story cites "dire straits" of Sears and JC Penney retail chains and demise of Loehmanns chain that all have served vanishing middle tier, even as high-end retailers like Nordstrom and bargain-basement chains like Dollar Tree and Family Dollar thrive. Within Darden restaurant group, foot traffic at Olive Garden (average per-person tab: $16.50) has declined but Capital Grille (avg tab: $71) is growing. Tho bevs go unmentioned in article, piece carries resonance for segment awash in 10-for-$10 deals and pre-priced 99-cents packs at low end, even as HPP juices priced at $10 per bottle sell out. By contrast, middle tier of premium teas, sodas and juice drinks in $1.50-3 range need to be constantly promoted, even at retailers like Whole Foods, to maintain velocity, as BBI has noted often enough.  
War on sweetened drinks is entering new phase in San Francisco, with 4 city lawmakers on Sat saying they plan to intro legislation today that would impose 2 cent-per-oz tax on soft drinks, sports drinks and energy drinks. If passed by full 11-member Board of Supervisors, AP notes, measure would go before local voters for approval or rejection in Nov. Tax would target bev distributors and retailers who obtain items directly from manufacturers and could generate as much as $31 mil a year, proponents have estimated. Funds would be used to fund recreation and nutrition programs in schools and at rec centers, public bottle-filling and drinking fountains, healthy food services and dental health initiatives, AP noted. Recall that former Mayor Gavin Newsom in 2010 had backed away from scheme to tax soft drinks, even as Calif towns of Richmond and El Monte saw voters reject proposals of penny-per-oz tax in 2012. Soda lobbyist American Beverage Assn already has sprung into action, playing on growing debate over city's cost of living by setting up advocacy group dubbed Coalition for an Affordable City, effort that one of bill's sponsors, Supervisor Scott Weiner, has derided as "Astroturf" for its fake grass-roots appeal. "They may have a lot of money, and they're already out there with their fake Astroturf campaign," he told SF Chronicle. "We have actual facts and science on our side."  
Walmart is creating kiosk called "The One Stop Beach Shop" and encouraging stores in Fla to pair Corona Extra/Light with Coca-Cola and other brands to create one-stop experience for shoppers looking to load up for spring break later this mo and beach time around Memorial Day. We don't recall Coca-Cola doing cross-promos with beer in past. Walmart shoppers "want to save above all else" and "want a simple, easy-to-navigate store experience," noted co. One-stop kiosk is putting top sellers together with coupon books at point of purchase as well. Images of One-Stop kiosk circulated to trade note that Coke is Walmart's #1 sparkling soft drink and Corona Extra its #1 import brand, while other featured products similarly are top sellers in their categories, including Banana Boat sunscreen, Tyson chicken, Snyder's pretzels and Cape Cod chips. Promo also includes Choice Hotels, chain that includes Comfort Inn, Econolodge, Rodeway Inn, Clarion and others.  
Over past coupla weeks BBI has been hearin' rumblings of several deals that may be in works as new year gets goin.' Among them: Muscle Milk marketer CytoSport. Coupla sources say they've heard deal could be announced as soon as this week, with distribution partner PepsiCo cited as one possible buyer. While NY Post in Dec listed WhiteWave, Glanbia and Balance Bar maker NBTY as among tire-kickers (BBI, Dec 3), BBI is hearing PepsiCo's name back in mix despite disavowal by PEP brass of any intention of making acquisitions bigger than "bolt-on" type. By one theory, this one could get green light on account of CytoSport's relatively modest asking price in half-bil range, seemingly smoothly functioning distribution alliance and fact that anxious Wall Street might view deal favorably as sign of more aggressive move into higher-value, non-CSD segments, much as it responded well to Coca-Cola's pickup of Glaceau years back. Other CPG players ranging from Nestle to Hershey are believed to have taken a look at co, which has carved out commanding RTD protein presence, tho its margins are said to be narrow.  
While Budweiser Super Bowl spot featuring Clydesdales and puppy helped brewer win USA Today's Ad Meter for 12th time in 14 yrs, Coca-Cola and PepsiCo fared well too. Coke's "Going All The Way" ad ranked #9 and its "America the Beautiful" ranked #17. PepsiCo's "Soundcheck" spot to lead into its sponsored halftime show placed 10th. Advertisers ponied up big bucks and were rewarded with all-time record 111.5 mil viewers. PepsiCo got its money's worth too for its Doritos ads (ranked #2 and 4). This year's Super Bowl advertising "marked a noticeable shift towards longer-format storytelling," with 43% of ads running 60 seconds, up from 30% last yr, noted AceMetrix. Those ads, which included Coca-Cola's, were "deeply Americana-influenced pieces" that resonated with consumers.

Critics Weigh In; SodaStream Pre-Game Buzz Fades Coke's "America the Beautiful" ad scored 3 stars from Advertising Age as "Coke trades on both its global presence and America's melting pot in a spot showing happy Americans" of many different nationalities "having a good, ol' happy time." Ad Age only gave 2 ½ stars to "Going All The Way," calling it "mildly sweet spot" and wondering how many viewers caught "Hey kid" reference from groundskeeper as he hands kid a Coke for long touchdown. (As surely all BBI readers know, that would be tip of hat to iconic Mean Joe Green ad from 1980.) Meanwhile, SodaStream once again scored more attention before than after game for its ad with Scarlett Johansson. There was buzz about having to take out Coke and Pepsi references and political fallout from Scarlett Johansson taking position to stand with Israeli co. For all the noise, tho, ad only ranked #48 in Ad Meter and got just 1 star from Ad Age, which noted it was "flirting with GoDaddy or PETA territory with second year of crying foul because an ad purposely created to stir trouble was censored." Mag agreed it isn't fair SodaStream can't challenge big suppliers by naming them, but noted co "doesn't have a massive ad budget it can threaten to withhold from the network," nor was Fox going to upset Coke, which sponsors its top-rated show (American Idol), and "SodaStream knows this." The politics!