Beer Marketer's Insights
Monster Energy's Zero Ultra line extension and Coca-Cola's Fruitwater were among launches voted "best new products" in 17th annual installment of Convenience Store News awards, with winners to be heralded at NACS c-store expo in Atlanta next month. Winners chosen after a month of "testing" comprised 21 items in foods, bevs, personal care and other categories. On bev side, Fruitwater got nod as best new CSD while Monster's Zero Ultra was cited as best new energy drink. Among noncarbs, PepsiCo Foodservice's Lipton Concentrate Tea won plaudits, and Tenaya's Charley's Milk was deemed best dairy bev. Best alcoholic bev was Southwest Wines' Soleil Mimosa Mini. Top overall innovation was Thirstpak's Thirst Pak, a kind of plastic growler for noncarb bevs, say, fresh-brewed teas that patrons want to take out from restaurant or c-store.
Newsletter
Beverage Business INSIGHTS
Tagged under
09/04/2013
Soup´s On for GMCR
Green Mountain Coffee Roasters said it's partnered with Campbell Soup to offer coffee lovers a chance to heat up soups via its Keurig K-Cup system. GMCR and Campbell plan to offer 3 soups starting with Homestyle Chicken Broth & Noodle in 2014. K-Cup pack will come with packet of dried pasta and vegetables to be added to chicken broth brewed in machine. With increased competition in the K-Cup market, GMCR "has been looking to diversify" and had previously mentioned "possibility of non-traditional K-Cups that could make medicated teas, similar to Theraflu or energy drinks," noted Wall Street Journal. However, this "jump to food has been less anticipated by investors and analysts." GMCR indicated it didn't go into deal blindly, having heard from some consumers that they were already using Keurig machine to add hot water to soups. "We don't think we will have to convince consumers to think of their Keurig machines this way; they already are," noted ceo Brian Kelley.
Newsletter
Beverage Business INSIGHTS
Tagged under
PepsiCo is broadening its NFL sponsorship activation this year to include full range of Pepsi-branded CSDs, as well as POS that features each of league's 32 teams, AdAge reported. New creative breaking today during opening game of 2013 season builds to broader ad blitz during Kickoff Weekend, under call to action, "Are you fan enough?" "Live for now," is broader theme. Effort will feature Pepsi-Cola, Diet Pepsi, Pepsi Max and Pepsi Next, with Pepsi Max receiving brunt of initial focus, and culminate of course in Pepsi's usual prominent spot during Super Bowl, as sponsor of halftime show. Agencies on creative are TBWA/Chiat/Day and Mekanism . . . Red Bull North America has inaugurated youth movement at America's Cup, sponsoring separate race in SF Bay for crews age 19-24 that concluded yesterday with teams from New Zealand clinching top 2 positions and Portugese team coming in 3d. Racing took place in same high-performance, wing-sailed AC45 catamarans used in America's Cup World Series, RBNA noted. All told 10 teams representing 8 countries participated, with Americans fading on final day to come in 5th.
Newsletter
Beverage Business INSIGHTS
Tagged under
Coca-Cola Femsa has further dialed up its Brazil presence with acquisition of Spaipa SA Industria Brasileira de Bebidas for $1.86 bil in cash. Deal, which Bloomberg news service noted is 2d in that country in 3 months, bolsters Brazil volume by 40%, to 39% of total Coke-system volume in Brazil. It's Femsa's largest deal since acquisition of Miami-based Panamco a decade ago and follows cumulative $4 bil spent on shopping spree in Mexico, Brazil and Philippines since Jun 2011. Note that Femsa is also believed to be in mix for US territory as Coca-Cola looks to refranchise N Amer operations . . . Atlanta-based DS Waters of America has been acquired by NY equity shop Crestview Partners for undisclosed terms. DS Waters delivers bottled water under brands like Alhambra, Sparkletts, Belmont Springs and Crystal Springs, along with brewed coffee, bev equipment and water filtration systems.
Newsletter
Beverage Business INSIGHTS
Tagged under
Health/nutrition gadfly Center for Science in Public Interest, which has been on Shaquille O'Neal's case for collaborating on sugar-laden soda with AriZona Iced Tea, is having kittens over retired hoopster's recent appearance with first lady Michelle Obama at event of her anti-obesity Let's Move initiative. "A celebrity like him shouldn't have it both ways," inveighed CSPI. "You can't do a photo-op with the First Lady promoting exercise one day, and sell disease-promoting sodas the rest of the year" . . . Oatworks put its nutrition-rich smoothies to ultimate test by sponsoring ultrarunner Simon James in The North Face Ultra-Trail du Mont Blanc ultramarathon that kicked off on Fri. Brand's combo of oat beta glucan and fruit, which delivers sustained energy, seems to have served UK runner fairly well, as he finished in 41 hours a course that took participants across 104 miles of trails in 3 countries, with elevation gain of 31,496 feet. That was good for #950 out 2,300 elite athletes who qualified . . . Kate Farms, creator of Komplete Ultimate Shakes, has signed endorsement deals with professional auto racing driver Tristan Nunez and boxing pro Gabino Saenz. Nunez was kicking off his alliance with brand at ABC-televised American Le Mans Series race in Baltimore, while Saenz will be sponsored by Komplete at upcoming fight against Dominic Coca on Sep 28 at Stubhub Center in Carson, Calif . . . Definitely not an endorsement here: fatal hit-and-run incident in Bangkok involving grandson of Red Bull co-founder has become widely covered litmus test for whether Thai criminal justice system will bring wealthy offender to account. Suspect, Vorayuth Yoovidhya, has failed to answer summons at prosecutor's office 6X now, causing speeding charge to lapse because of statute of limitations tho other, more serious charges remain. Yoovidhya has acknowledged hitting police officer with his gray Ferrari and has paid bereaved family nearly $100K in compensation, but claims officer on motorcycle swerved in front of his car. Issue has remained front and center as suspect, in late 20s, has continued to dodge authorities, even as police commissioner claims Yoovidhyas initially tried to make their regular driver take the fall.
Newsletter
Beverage Business INSIGHTS
Tagged under
09/04/2013
EXTENSIONS: Red Licorice Soda, Anyone? Jones Reprises Halloween Cans, with Target a Key Partner
Continuing with efforts to reintroduce renegade tilt to brand's marketing, Jones Soda Co has moved forward on plan to bring back squat 8-oz cans as Halloween giveaways for trick or treaters. New cans are hitting imminently at Target's 1,700 US stores, in Halloween-inspired flavors Candy Corn, Red Licorice, Caramel Apple and Blood Orange. Can graphics sport images of a werewolf, Frankenstein, zombie and vampire. "These Halloween sodas represent the Jones way to do Halloween - by being fun, creative, and colorful," said ceo JSDA Jennifer Cue. Also in retail mix are Cost Plus World Market, Hastings Entertainment and Schnucks. Sodas will retail for $2.79-2.99 per 4-pack. Idea had been on drawing boards this past spring as potential fall ploy (BBI, Jun 21).
Newsletter
Beverage Business INSIGHTS
Tagged under
With scores of bev consultants looking to carve out distinctive offerings and confusion often the result, the 2-man team behind Inov8 Beverage has come up with unusually straightforward proposition: the "Beverage Check-Up." It's one-month consulting assignment for existing bevco in which Inov8 principals Mike Weinstein and Brian O'Byrne look at all aspects of biz and offer ideas for improving volume and profitability.
"It's kind of like a second opinion," said Mike. "We would work with one client per month and be focused on them." He and partner hope idea appeals to entrepreneurs who're wary of committing to extended contract with consultant. Idea came out of assignment in which partners helped private-equity firm analyze bev biz it was considering buying. "We did a quick deep dive, made reco's and moved on," Weinstein said. Experience made Inov8 partners realize that most of real value (not to mention most interesting work for them) occurs in first 30 days. "Ultimately it's fast, relatively inexpensive and with experienced guys," Mike told BBI. Recall that Inov8 Beverage Co was founded in Rye, NY, by Cadbury vets Weinstein and O'Byrne as bev incubator whose longest-lived brand, Hydrive Energy, was sold last year to Big Red Ltd. Since sale, they've shifted focus to consulting, under related entity Inov8 Beverage Consulting Co.
"It's kind of like a second opinion," said Mike. "We would work with one client per month and be focused on them." He and partner hope idea appeals to entrepreneurs who're wary of committing to extended contract with consultant. Idea came out of assignment in which partners helped private-equity firm analyze bev biz it was considering buying. "We did a quick deep dive, made reco's and moved on," Weinstein said. Experience made Inov8 partners realize that most of real value (not to mention most interesting work for them) occurs in first 30 days. "Ultimately it's fast, relatively inexpensive and with experienced guys," Mike told BBI. Recall that Inov8 Beverage Co was founded in Rye, NY, by Cadbury vets Weinstein and O'Byrne as bev incubator whose longest-lived brand, Hydrive Energy, was sold last year to Big Red Ltd. Since sale, they've shifted focus to consulting, under related entity Inov8 Beverage Consulting Co.
Newsletter
Beverage Business INSIGHTS
Tagged under
Thanks to statement-making acquisitions like Vitaminwater, tight execution and hard-charging ceo, Coca-Cola has enjoyed good ride on Wall Street in recent years. Over past 5 years its shares have surged 40%+ vs less than 20% for rival PEP and a bit over 20% for S&P Index as a whole. Are tides shifting, tho? CLSA analyst Caroline Levy is latest to adopt dimmer view of KO prospects, lowering rating to "underperform." She cites "deteriorating trends for CSDs and weakening prospects for certain emerging markets," notably China and Latin America. In investor note, Caroline admits to being spooked by recent CSD trends in core N Amer market, particularly fact that diet CSDs are slipping faster than sugared CSDs, with accompanying margin hit. Overseas, China has weakened, and same seems to be afoot in former growth driver Latin Amer, with Mexican authorities lately launching campaign vs soft drinks as cause of obesity (BBI, Aug 30). Interestingly, at time that some investors have clamored for PEP to split itself into separate bev and snacks cos, Levy points approvingly to "positive offset" to bev declines that PEP's enjoying with Frito-Lay. By contrast, KO suffers from "greater exposure to the CSD category and fewer levers to pull in the near term that could provide a positive catalyst (ie significant structural changes)." One more concern Caroline voices: Coke's ad campaign in defense of aspartame could plant seed of doubt among consumers who haven't worried about ingredient to date. "Think Campbell's Soup and sodium," she warns.
Newsletter
Beverage Business INSIGHTS
Tagged under
09/04/2013
Alleviating Point of Stress with Distribs, Marley Switching 7-Eleven Back to DSD, Starting in Pac NW
Alleviating Point of Stress with Distribs, Marley Switching 7-Eleven Back to DSD, Starting in Pac NW
Addressing issue that undermined Marley's Mellow Mood's we're-here-for-you image among DSD distributors, parent co Viva Beverages has begun transition of service to 7-Eleven c-store chain back to DSD shops, starting in Pacific Northwest region. In initiative being brought to finish line by soon-departing ceo Kevin McClafferty, co will be cutting distribution of Marley brand from preferred 7-Eleven distributor McLane back to indie houses Odom and Maletis in 4th qtr, confirmed Craig Thibodeau, svp for sales/distribution in N Amer. That amounts to 420 stores, for brand that generally performs best in c-stores. Craig said Detroit-based co has authorization from retailer to segue from McLane to DSD houses in other regions where brand boasts full DSD coverage, tho he declined to predict which would be next or how soon. "We see the light at the end of the tunnel," is all he'd say.
Transition will undo move undertaken last spring that damaged relations with DSD houses (BBI, Jun 22 12), which until then had regarded Marley as among handful of emerging brands that displayed full commitment to DSD system (others include Calypso Lemonade, Sparkling Ice refreshers, and Neuro, Bai and Body Armor functional brands). Shift to McLane was blatant violation of contracts, whether or not invasion fees are paid, several distributors claimed at time. Of course, issue highlighted dilemma confronted by many emerging brands that work hard to build DSD network, only to run into demands from major chains to bypass that network and take brand into their stores via warehouse system, either because that's retailer's preferred system or because of voids in DSD net.
It's Biz as Usual Despite CEO's Imminent Departure; Canada Booming With McClafferty serving out last week before moving on, co is being run by team comprised of key investor Gary Shiffman, Thibodeau, marketing vp Lee Brody, and operations chief, with preference of finding new ceo by time holidays arrive. As reported, with network built out and brand on plateau lately, McClafferty felt like this was good time to move on in favor of somebody with greater experience running established brands (BBI, Aug 22). Meanwhile, Toronto-based Thibodeau said Canada has shaped up as bright spot for brand, approaching 300K cases in annual sales in just 2 years in that market. Working via hybrid distribution system, it's effectively attained 100% distribution in c-stores there, with more concerted forays into drug and grocery on horizon for 2014.
Transition will undo move undertaken last spring that damaged relations with DSD houses (BBI, Jun 22 12), which until then had regarded Marley as among handful of emerging brands that displayed full commitment to DSD system (others include Calypso Lemonade, Sparkling Ice refreshers, and Neuro, Bai and Body Armor functional brands). Shift to McLane was blatant violation of contracts, whether or not invasion fees are paid, several distributors claimed at time. Of course, issue highlighted dilemma confronted by many emerging brands that work hard to build DSD network, only to run into demands from major chains to bypass that network and take brand into their stores via warehouse system, either because that's retailer's preferred system or because of voids in DSD net.
It's Biz as Usual Despite CEO's Imminent Departure; Canada Booming With McClafferty serving out last week before moving on, co is being run by team comprised of key investor Gary Shiffman, Thibodeau, marketing vp Lee Brody, and operations chief, with preference of finding new ceo by time holidays arrive. As reported, with network built out and brand on plateau lately, McClafferty felt like this was good time to move on in favor of somebody with greater experience running established brands (BBI, Aug 22). Meanwhile, Toronto-based Thibodeau said Canada has shaped up as bright spot for brand, approaching 300K cases in annual sales in just 2 years in that market. Working via hybrid distribution system, it's effectively attained 100% distribution in c-stores there, with more concerted forays into drug and grocery on horizon for 2014.
Newsletter
Beverage Business INSIGHTS
Tagged under
NY flavor house Virginia Dare is touting ginger as hottest ingredient, for products ranging from candy to beer to tea. In interview with FoodNavigator-USA, Dare's group vp marketing Anton Angelich made case for ingredient with distinctive taste and nutritional benefits. "From candy to beer to tea, everything with ginger is hot right now," he said. "Ginger works really well in alcoholic beverages as a mixer, in ginger beer itself, in confections, muffins and cookies. It also ties in with increasing demand for strong flavors, spices and heat and has strong health associations for consumers," as in recently developed rooibos ginger tea that's found lotsa takers.
After long run for exotic "superfruits" and the like, Dare also sees consumers returning to more familiar North American fruits such as sour cherries, blueberries and black raspberries. Dare is reacting to trend by devising smoothie flavors like Wild Blueberry Honey and Tart Cherry, newsletter noted. "You see all these (apple) varietals in the produce section - pink lady, braeburn and so on - and then you go to the center of the store and it's still plain apple sauce, apple juice. But that's starting to change and we're doing a lot of work on apple flavors such as Fuji and Honeycrisp. The same applies to melon, it's all about honeydew, cantaloupe or watermelon now. People are also looking for fruits that are refreshing such as plums, melons, nectarines."
Enjoy the Labor Day weekend, BBI readers!
After long run for exotic "superfruits" and the like, Dare also sees consumers returning to more familiar North American fruits such as sour cherries, blueberries and black raspberries. Dare is reacting to trend by devising smoothie flavors like Wild Blueberry Honey and Tart Cherry, newsletter noted. "You see all these (apple) varietals in the produce section - pink lady, braeburn and so on - and then you go to the center of the store and it's still plain apple sauce, apple juice. But that's starting to change and we're doing a lot of work on apple flavors such as Fuji and Honeycrisp. The same applies to melon, it's all about honeydew, cantaloupe or watermelon now. People are also looking for fruits that are refreshing such as plums, melons, nectarines."
Enjoy the Labor Day weekend, BBI readers!
Newsletter
Beverage Business INSIGHTS
Tagged under

