Beer Marketer's Insights
NACS: Better-for-You Energy Shot Upshot...
NACS: Better-for-You Energy Shot Upshot Tweaks Line and Kicks in Marketing Drinks That Work, marketer of Upshot herbally based energy drinks in 2.5-oz shelf-stable bottles, is planning upgrades in flavor and efficacy while stepping up marketing as its tries to broaden geographic presence in c-stores and add other channels like club stores. Recall that Upshot, intro
NACS: Xyience Sets Blitz Behind...
NACS: Xyience Sets Blitz Behind Nutraceutical-but-Macho Xenergy
Izze Tightens Up in Wake of Pepsi Acquisition Izze Bev has seen departure of several sales, marketing and pr staffers in wake of recent PepsiCo acquisition of Boulder, Colo-based altsoda co for $75 mil. The departures include sales chief Pete Burns. Pr chief Heather Willison has segued to role at Boulder new-age drug chain. Also out are senior sales staffers in regions like Northeast, sources said. Co-founder/ceo Todd Woloson did not return call and former chmn John Bello said he
Pepsi Seen Readying Iconic Pitch for...
Pepsi Seen Readying Iconic Pitch for Full-Cal Flagship
Is Muhtar About to Get Succession Nod at Coke? Then What About Mary? Coca-Cola International prexy Muhtar Kent is poised to become Coca-Cola
PRESS CLIPS...
PRESS CLIPS: More Attention for India’s Tata; Fabuloso, Latest Soapy-Tasting Soft Drink? Indian conglomerate Tata’s recent acquisition of a big stake in Vitaminwater marketer Glaceau drew barely a yawn from most of mainstream biz press, even as the $2.2 bil valuation of Glaceau caused a ripple of excitement among bev pros. But Tata’s latest move, on British steelmaker Corus Group, has sparked greater media interest. NY Times profile on Wed described aspirations to build diversified GE-style co, while noting that “critics of Tata’s globalization spree say the group has tended to overpay for foreign acquisitions.” Major bev deals have included former A&P brand Eight O’Clock whole-bean coffee and Tetley tea. After paying $220 mil for Eight O’Clock Coffee and $677 mil for 30% interest in Vitaminwater parent co Glaceau, India-based Tata Group is looking to expand even further. “By the end of the decade we expect Tata Tea to become one of the largest and most admired beverage players in the world,” vice chmn R.K. Krishna Kumar told Forbes. His goal is for Tata to become a $3 bil sales co in next 10 yrs “and much of it will come from the US,” claimed Krishna. That’s ambitious plan considering Tata revs were at $706 mil for fiscal yr ended Mar 31. While article notes some analysts think a juice co could be next target, Krishna cautions, “We have a fairly good portion on our table. We have to digest (the acquisitions) before we move forward.”
As Tata considers future plans, Forbes points out some “worrisome” aspects of deals already completed. With Glaceau’s revs expected to be around $356 mil in 06, Tata “is ponying up a hefty 6.3 times sales. Also, to fund both the Glaceau and Eight O’Clock Coffee deals, Tata “borrowed heavily, more than $600 million in all.” That brought Tata debt level to 2.5X its equity, and Forbes cautions, a level of 1.5X “is considered high.” But Krishna is “undaunted,” sez mag, as it points out that Tata had debt-to-equity ratio as high as 3 to 1 after purchase of Tetley Tea back in 2000, but got it down to 1 to 1 before 06 buying binge. Krishna added that he “expects Glaceau sales will double every few years” going forward.
Next time you criticize the latest weird-colored bev for tasting too much like soap, better make sure it isn’t soap. NY Times story notes confusion caused by Colgate-Palmolive household cleaner called Fabuloso which has been plagued by 100+ cases of human ingestion, per study published in the journal Pediatrics. Seems the 1-liter, clear-plastic bottles look too much like the stuff BBI readers manufacture. (Unnatural blue color of liquid is no longer a giveaway either.) Fortunately, nobody suffered serious injury, and Colgate has redesigned label to more explicitly denote contents while adding child-safety cap.
PROFILE...
PROFILE: Meet Friendly Fred, the Flat-Bellied Bottled Water Entrepreneurs who earlier struck it big in home care and hair care biz have turned their branding smarts to bottled water biz, with friendly, approachable moniker dubbed, simply, Fred. New line, trickling onto store shelves in NYC in recent weeks, employs pure spring water sourced from Catskill Mountains but that
A-B Adds Acai Flavor to 180 Energy Drink Line Anheuser-Busch has expanded its energy portfolio with addition of 180 Blue with Acai, the 3d brand in the 180 energy drink family.
Hansen Grabbing Big Gains
Hansen Grabbing Big Gains Hansen Natural energy portfolio sales jumped 86% for last 4 wks thru Oct 7 in the food, drug and mass merch channels, per AC Nielsen data reported by Goldman Sachs. Monster brand was up 92% while Lost and Rumba both struggling, down 17% for 4 wks. Monster sales doubled in 3d qtr in these channels while Lost and Rumba were basically flat. Benefits of transition to Anheuser-Busch distribs starting to pay off.
Industry Suffers Slow September in Supers
Industry Suffers Slow September in Supers Latest scanner data for supermarkets shows continued volume declines for CSDs and juices while bottled water and sports drink trends slowed as well. CSD volume down 7.6% for latest 4 wks thru Oct 8, per IRI reported by Morgan Stanley

