Single Serves Grow, Drink Mixes Reach $1 Billion

Transcription

OCTOBER 31, 2008
POWDERPOWER
Single Serves Grow,
Drink Mixes Reach $1 Billion
ALSO THIS ISSUE:
MAGIC HAT BREWERY
DIET ENERGY
BOUTIQUE CSDs
RTD JUICE
OCTOBER 2008
vol.
6 :: no. 7
cover story
30 Powder Power
Single serve drink mixes measure profit by
the square inch
features
24 We Already HAD a V8
How the world’s best known veggie drink
became fruitful
28 Brands in Transition
Another trick for Magic Hat
columns
8
6 First Drop
Saving time online
8 Publishers Toast
Take a deep breath
22 Gerry’s Insights
Marginal difference
departments
10 Bevscape Business
BPA debate back again
12 Bevscape Innovation
Pepsi banks on 8-packs
14 Channel Check
Spotlighting teas
18 New Products
24
Say hello to Michelob
48 Promo Parade
With hoiday coverage
category focus
36 Boutique Sodas
Embracing function
40 Juice and Juice Drinks
The economy and premium products
44 Diet Energy
So very necessary
conference beat
46 Review
NACS Show
30
Beverage Spectrum (Postal Number 024-552) is published monthly with combined issues in January/February,
May/June, July/August and November/December by Beverage Spectrum Publishing, Inc., a wholly owned
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OCT.08.BEVERAGESPECTRUM.5
THE FIRST DROP
By Jeffrey Klineman
THE
INTERNET:
GET IT?
THERE’S A LOT of discussion these
days about whether various people or
companies “get” the Internet. This is not
a major concern for us at Beverage Spectrum, as we, in fact, are creatures “of”
the Internet. We don’t so much get it as
are gotten by it, are glued to it, spend half
our time lost in it, and enjoy forwarding
amusing things back and forth that we
have found in it.
They say write about what you know, and
it’s with this in mind that I tell you I know
the Internet. Or, at least, the various news
and product sites I patrol hourly. Here’s the
thing I get about the Internet: online, there
is a justification or rationalization for every
single thing written, recorded, or argued,
and there are a lot of t-shirts for sale.
The idea that so much of our time is now
spent online does offer a wide variety of
opportunities for beverage companies and
retailers to have an impact. For example,
knowing my wife was headed up to tax-free
New Hampshire (New Hampshire having
voted long ago to officially change its state
name to “Tax Free New Hampshire), I
hopped on the New Hampshire State Liquor
Store web site to find out what cheap cases
of red wine were available at their 77 locations. It seems to me that this should be a
fairly easy trick for chain stores to implement, particularly given the amount of work
they are currently putting into category
management.
There’s also a lot of knowledge and
opinion available online. While a lot of that
is political, there’s also a galaxy of sites
6.BEVERAGESPECTRUM.OCT.08
ÊUÊÌiÀiÌÊ>«Ê>ÃÊvÊ
January 16, 2006.
orbiting around every trend or niche interest
one can think of, from the best cheeseburger
in Omaha to the various kinds of men who
look like Kenny Rogers.
With so much to absorb – and so many
misspelled captions laid over photos of cats
– it’s easy to take your eye off the ball when
it comes to harnessing the Internet for the
purpose of making and selling beverages. To
spare you the trouble of having to “get” the
Internet, however, these are some observations that, having bothered to read this far,
you should download to your own personal
knowledge base:
1. The niches of common interest that
form on the Internet are the same kinds of
groups that can sustain a product. Bawls is
an example of a product line that has found
a variety of different, marketable niches
rather than a broad, one-size-fits-all marketing strategy. If you’re launching or selling a
new product, go for the right niche.
2. Environmental awareness is not going
away, and bloggers, activists and nonprofits
who find equal footing for their messages
with marketers and manufacturers have pro-
duced a lot of the environmental zeitgeist.
You can’t beat them. Join them. Start selling
your environmental initiatives online.
3. As part of 2, remember – the Internet
is the home of the “Master Debunker.” The
Master Debunker is a semi-journalistic,
semi-consumerist blogger or organization
who will find out what is in your product,
what claims you make are truthful, and
where to get it for cheap. Do not try to lie
to the Master Debunker. They will leave you
naked and hurting, with all your calories and
additives hanging in the wind. Look at the
up-and-down fate of “All-Natural” 7-Up for
a clue to that.
4. Just because something is an Internet
fad, that doesn’t mean it’s going to translate
into a good beverage. The better move is
to understand what the fad represents: the
answer to a question asked by Internet users.
Jones Soda did this well for years –using the
Web to let users express their individuality.
5. When all else fails, post a photo of
a cat enjoying your product. Make sure to
misspell everything the cat says.
a10tion
calorie counting shoppers!
we hate to twist our own caps, but we just did the unthinkable to low-calorie!
sonly
10 calories per serving
sgreat
tasting (trust us, it can be done)
spacked
with vitamins and nutrients
available in 20oz. singles and 16oz. 4 packs.
low cal
PUBLISHER’S TOAST
By Barry J. Nathanson
TAKE A DEEP BREATH...
PUBLISHER
Barry J. Nathanson
[email protected]
EDITOR
Jeffrey Klineman
[email protected]
ASSOCIATE PUBLISHER
John McKenna
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ART DIRECTOR
Matthew Kennedy
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GRAPHIC DESIGNER
Amadeu Tolentino
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ASSISTANT EDITOR
Matt Casey
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PRODUCTION MANAGER
Adam Stern
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JR. DESIGNER
Natalie Iknaian
[email protected]
SUBSCRIPTION INQUIRIES
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617-715-9679
OUR ECONOMY is roiled to a level not
seen since the Great Depression. The roller
coaster of the Dow Jones and the collapse
of several once-esteemed financial institutions have launched the anxiety meters to the
stratosphere. The entire world’s economy is
caught in this downward spiral. Our 401Ks,
IRAs, savings, and stock accounts are evaporating before our collective eyes. Nothing
seems safe or secure anymore.
Being a baby boomer born in 1948, I vividly remember the conversations of my parents and their peers about their lives during
the turbulent Great Depression. Years later,
their fears and angst were still very real, and
the times they talked about were truly desperate. But what I remember most was their
faith in our system and the American way
of confronting dark issues and overcoming
them. Sure, what they were discussing was
different from today’s situation. They didn’t
have the safety nets, government-sponsored
deposit insurance, and the immediate
intervention that we all hope will eventually bring us back from the economic abyss.
We can believe, from their experience, that,
while these times are tough right now, they
too shall pass. We’ve had economic travails,
recessions and tight credit before, and have
always come out of it.
What does this have to do with beverages?
Everything. This is not a time for marketers,
retailers and distributors to go into a shell.
It is essential that we continue to be visible
in the marketplace. We are blessed to be in
an industry that the consumer both needs
and wants. So look where you can trim, of
course, but don’t stop your initiatives. Beverages are a foundation of our package goods
industry. Our brands are some of the few
basic and luxury items that the public can
afford. We would send a bad signal if the
shelves weren’t stocked, if the choices were
diminished, and the pricing was either cut
drastically or raised too much. Promote your
brands and keep up the marketing efforts.
Don’t slash budgets on programs that have
worked for you for so long. Give a value
proposition that the buyer can embrace.
The market will come back, as will the
credit. The economy will rebound, as it
always has. Our industry is a bellwether of
our economy. Make sure you’re serving the
customer well, and you’ll be poised to benefit from the turnaround. It will come.
ONLINE RENEWALS & CHANGES
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BEVERAGE SPECTRUM
PUBLISHING INC.
CHAIRMAN
John F. (Jack) Craven
[email protected]
PRESIDENT AND
EDITORIAL DIRECTOR
John Craven
[email protected]
EDITORIAL
1 Mifflin Place, Suite 300
Cambridge, MA 02138
ph. 617-715-9670 fax 617-715-9671
ADVERTISING
1123 Broadway, Suite 210
New York, NY 10010
ph. 212-647-0501 fax 212-647-0565
BPA Worldwide Member, June 2007
Thank you for making us #1.
You’re number one, too. Thanks to our retail partners, distributors and all of America for making FIJI Water the
best-selling premium bottled water in the U.S.* We’re proud to be more than just the best-tasting water, but
also the top-ranking premium bottled water. Thank you for your partnership and support. FIJIWATER.COM
*Source: IRI FDMx 52 Weeks Ending 2/3/08 & IRI Convenience Stores 52 Weeks Ending 12/30/07; Volume and Dollar Sales.
BEVSCAPEBUSINESS
THE LATEST NEWS ON THE BRANDS YOU SELL
TRUCKING ENERGY DRINKS: A NEW GAME MORE INFO ON BOTTLED WATER?
If you’re interested in selling Monster or Rockstar, get ready to
play a little distribution Twister in the next few months, as a set
of deals engineered by Coca-Cola North America is about to
completely change the cast of characters servicing your store.
Just before Beverage Spectrum went to press, Hansen Natural
Corp. and Coke announced that they had agreed to a deal where
the soda giant would take over distribution of Monster Energy in
Western Europe, Canada, Mexico, and some U.S. states.
The deal came just two years after Hansen entered a distribution deal with another beverage giant, Anheuser-Busch, whose
network handles a little more than half of the fast-growing energy
brand’s wares. Most of the rest of the brand is run through a
series of independents and, more importantly, a series of distributors owned by Dr Pepper Snapple Group. Those DPSU distributors, who revealed they will take a hit of close to $200 million
in sales with the loss of Monster, are going to collect termination
fees – likely paid by Coke via Hansen – but are still going to need
a new energy drink on the trucks.
Meanwhile, the announcement came just two days after
Rockstar, whose brand has been flagging a bit in recent years but
remains the third-ranked independent behind Monster and Red
Bull, announced the extension of its own three-year-old distribution agreement with Coke.
Rockstar retained the right to terminate the agreement as part
of the deal – and it seems highly unlikely that Rockstar would
want to share the stage, or the truck, with its longstanding
archrival. At the same time, the Los Angeles-based Rockstar appeared to have a bit of time to find its own network, as Coke and
Hansen are also faced with the challenge of figuring out how to
accommodate A-B – which never truly reached a saturation point
in terms of its Monster distribution and is still struggling to get it
into on-premise accounts – while familiarizing its workforce with
the whole Monster catalog.
There has been some speculation that PepsiCo – the only big
company not yet mentioned here – might make a grab for Rockstar, as well, either with an equity piece or as a way of bolstering
its own energy portfolio. The company has managed to revamp
its AMP line without leaning heavily on an independent, but it
still trails the other giants.
The deals sent the Coke staff into a tizzy; most of its regular
communications staff skipped the NACS show to deal with
the announcement, and there was a lot of adjustment of
arrays at the last minute.
As an example, note this statement from Debbie Wetherhead,
Coke’s spokesperson to the trade, made on Oct. 13 – day two of
the NACS Expo: “If you were here yesterday, the display was a
little different than it is today.”
Chances are, retailers will be able to echo that line in the
next few months.
Bottled water in the U.S. could include more
on-package documentation if a bill proposed
by U.S. Senator Frank Lautenberg (D-NJ)
becomes law.
The bill, called the “Bottled Water Safety
and Right-to-Know Act,” would require
bottled water companies to display – on each
bottle – where the water came from, how it
was treated, and the quantity of contaminants in the bottle.
Tom Lauria, a spokesman for the International Bottled Water Association, said most
bottled water companies already address
these issues. They print the source of the water on the label, he said, along with an 800
number to call for more information – but
adding much more information to the bottle
may be asking too much.
“You’re trying to telegraph to the consumer what they need to know, quickly,” he said.
Lautenberg – whose office did not return a call for comment – introduced the bill at a hearing in the Environment and
Public Works. Lauria described the hearing as calm and “sparsely
attended.” He expects more hearings on the subject, including
appearances from the FDA and EPA, and said the IBWA may
ultimately back the measure – but they will reserve judgment until
a final version of the bill is prepared.
BPA DEBATE BACK
The debate over bisphenol-A, or BPA, resurfaced after British researchers revealed a study on the potential effects of the chemical
on 1,455 U.S. adults.
The study found that people with the highest concentrations
of the chemical (used in baby bottles and beverage can linings)
in their urine suffered a higher rate of heart disease, diabetes and
liver-enzyme abnormalities, Reuters reported.
In April, Canada banned the substance from use in baby
bottles. The U.S. Food and Drug Administration issued a draft
conclusion in August that current exposure to the chemical fell
within safe levels. The administration said it would review the
new study, but still believed exposure levels to be safe.
03
07
PVC
O
We’re More Than
Just Juice!
Producers looking to CREATE the NEXT BIG THING in beverages rely on
WILD’s application-tested products, industry knowledge and product
development capabilities to create truly unique solutions and sought-after
beverages. To see how you can “Go WILD with your next beverage,”
give us a call at 1.888.WILD Flavors.
WILD Flavors, Inc.
1261 Pacific Avenue, Erlanger, KY 41018 USA
1.888.WILD Flavors [email protected]
www.wildflavors.com
BEVSCAPEINNOVATION
THE LATEST IN PRODUCT DEVELOPMENT AND MARKETING
HEALTH & WELLNESS CAN PEPSI EXPERIMENTS WITH
KILL YOUR PRODUCT
8-PACKS
Sure, it’s great that functional health
benefits are frequently associated with
food and beverages. But there is such a
thing as too much health and wellness,
which may put consumers off, according
to experts.
Euromonitor’s head of global food
research, Lee Linthicum, recently announced that several products are thriving because they promote various health
and appearance benefits. But watch out
for too many scientific claims, Linthicum
added.
“Manufacturers are leveraging innovations in food science and making those
messages known,” he told NutraIngredients USA. “But at the end of the day it is
still food you are talking about.”
The Takeaway? Don’t Over-Medicalize, according to Linthicum. “There is a
fine line between too much science and
consumer innovation.”
COLOR BEATS ALL
For a long time, the 12-pack of 12 oz. cans
has been the key package for soda makers.
But in a move that is either testing innovation or wallet size, PepsiCo is trying out an
8-pack, the Tampa Bay Times reported.
According to the story, PepsiCo’s costs have
gone up 11 percent in the past year – and
with CSD volumes down, pricing increases
have not let the company keep pace.
It’s an important development – while
health concerns were unable to force companies to change package sizes, materials costs
have finally led to reductions. Up next, 20
oz. bottles will drop into 16 and 12 oz. configurations (At NACS, Coke was bannering
its 16 oz./99 cent convenience store deal).
PepsiCo will also try out a 1.5 L bottle for
its most popular lines.
The test is going on in about 20 percent of
the country, according to the Times.
A new study from European food and
beverage maker Danone hinted at color
and flavor are often the chief influence
on whether consumers will accept new
beverages.
The journal Food Quality and Preference published the study, which placed
intensity of color and flavor as the dominant elements of a “sensory marketing
approach.” Labeling and packaging take
a back seat, according to the study, which
measured only those four elements.
The study’s methodology involved having consumers look at potential improvements to a given beverage – and revealed
that packaging size and labeling type
were taken into account to a lesser extent
than color intensity, which was named 43
percent of the time, and flavor, which was
named 32 percent of the time.
THE FLAVOMETER
Global Leading Drinks Launched by Category, April – June 2008
1. Blend
Rank
Category
% Change vs. year ago
1.
Fruit & fruit flavored drinks
-12.9%
2.
Wine & wine coolers
12.8%
3.
Tea
-2.0%
4.
Liqueurs & other alcoholic drinks
44.4%
2. Carrot
3. Tomato
4. Apple
5. Orange
6. Celery
5.
Coffee
38.6%
6. Lemon
6.
Milk, non-dairy milk & yogurt drinks
-20.8%
6. Pumpkin
7.
Beverage mixes & flavorings
-1.6%
8.
Soft drinks
13.3%
9.
Isotonic, energy producing beverages
47.6%
10.
Beer & ale
74.2%
9. Lettuce
Vegetable Flavored Drinks:
Top Flavors in New Products,
June 2007 – June 2008
9. Spinach
SOURCE: PRODUCTSCAN ONLINE (www.productscan.com)
SOURCE: PRODUCTSCAN ONLINE (www.productscan.com)
Channel Check
october 2008
SPOTLIGHT CATEGORY
RTD TEA
52 Weeks through 9/7/08
AriZona continues to lead the segment
as an individual brand, but Lipton’s
aggregate sales outclass the category.
The big performer of the month, Lipton
Pureleaf, probably owes its triple-digit
growth to its recent introduction (it’s
up only one tenth of one percent over
last month), but the sub-line’s twist
on tea authenticity still snared $36
million for Pepsi over the last year.
In the mean time, private label teas
continued to perform, while Snapple
slid and Nestea plunged.
RTD TEA
Dollar Sales
Change vs. year earlier
AriZona
$298,831,300
5.2%
Lipton
$239,111,000
1.2%
Snapple
$125,630,600
-5.5%
Lipton Brisk
$84,087,370
-4.0%
Diet Snapple
$77,787,710
-7.7%
Nestea
$63,093,040
-7.1%
Lipton Diet
$52,384,120
27.8%
Lipton Pureleaf
$36,153,390
170.7%
Private Label
$24,567,850
33.4%
Nestea Diet
$17,774,310
0.9%
Lipton Iced Tea
$16,321,160
-53.0%
Nestea Enviga
$15,378,710
-40.5%
Gold Peak
$13,128,280
34.8%
SoBe
$10,711,260
-20.7%
Tradewinds
$8,780,738
58.9%
Heading Up: Lipton Pureleaf
SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart
TOPLINE CATEGORY
VOLUME
BOTTLED WATER
ENERGY DRINKS
$5,159,143,000
1.1%
$886,901,400
13.5%
BEER
SPORTS DRINKS
$7,737,549,000
3.7%
$1,713,134,000
2.3%
BOTTLED JUICES
TEA/COFFEE
$3,808,174,000
1.0%
$1,415,107,000
1.0%
october 2008
Channel Check
SPORTS DRINKS
Dollar Sales
Gatorade
$600,151,100
-8.5%
Powerade
$243,004,900
1.1%
Gatorade All Stars
$131,878,700
4.1%
Gatorade Frost
$130,128,800
-8.1%
Gatorade G2
$124,347,200
N/A
Gatorade Rain
$119,901,200
-20.3%
Gatorade Fierce
$70,977,290
-23.4%
Gatorade X Factor
$58,766,830
-31.1%
Gatorade AM
$55,530,080
5.6%
Gatorade Tiger
$48,981,160
N/A
Heading Up: Gatorade G2
RTD COFFEE
Dollar Sales
Frappuccino
$190,754,900
4.0%
Doubleshot
$24,523,050
-7.5%
Doubleshot Light
$10,461,850
-3.1%
Starbucks Cappucino
$9,475,734
-29.7%
Bolthouse Farms
$4,656,019
3.2%
Godiva Belgian Blends
$4,376,248
-56.3%
Private Label
$2,089,993
103.6%
Cinnabon
$1,691,035
20.7%
Hillside
$611,517
25.8%
Emmi
$540,817
N/A
Heading Up: Emmi
IMPORT BEER
Dollar Sales
Corona
$441,939,100
-2.2%
Heineken
$299,865,600
3.7%
Corona Light
$125,157,100
0.6%
Tecate
$92,910,010
10.1%
Heineken Premium Light
$73,538,500
15.5%
Modelo Especial
$61,040,720
13.5%
Newcastle
$50,632,180
2.8%
Guinness Draught
$48,563,960
2.7%
Stella Artois
$45,629,580
43.2%
Labatt Blue
$44,019,760
-2.4%
Heading Up: Stella Artois
ENERGY
Dollar Sales
Red Bull
$363,400,300
11.7%
Monster
$141,672,900
18.3%
Rockstar
$100,580,900
8.1%
Amp
$33,947,080
25.6%
Full Throttle
$26,199,540
-34.1%
Java Monster
$19,153,690
1,124.4%
Monster XXL
$18,309,220
72.0%
SoBe No Fear
$17,048,390
-44.6%
Amp Overdrive
$12,825,420
109.8%
Rockstar Juiced
$12, 255,680
17.8%
Heading Up: Java Monster
CONVENIENCE/PET STILL WATER
Dollar Sales
Private Label
$694,634,100
10.5%
Aquafina
$445,495,300
-13.9%
Glaceau Vitaminwater
$439,670,800
36.4%
Dasani
$431,164,400
-4.6%
Poland Spring
$257,089,400
-0.2%
Propel
$178,929,500
-8.3%
Arrowhead
$173,827,200
-6.2%
Deer Park
$135,224,500
-6.7%
Nestle Pure Life
$121,187,400
4.3%
Crystal Geyser
$105,716,800
-1.3%
Heading Up: Vitaminwater
DOMESTIC BEER
Dollar Sales
Bud Light
$1,352,248,000
3.8%
Miller Lite
$688,197,700
1.6%
Budweiser
$659,891,300
-2.7%
Coors Light
$644,709,000
8.5%
Natural Light
$267,739,400
1.1%
Michelob Ultra Light
$202,730,500
4.7%
Busch Light
$195,868,800
3.7%
Miller High Life
$165,455,800
5.2%
Busch
$150,362,100
3.2%
Miller Genuine Draft
$141,082,200
-7.6%
Heading Up: Coors Light
NEWPRODUCTS
BEER
This fall, Miller Lite is introducing a new,
16 oz. aluminum pint bottle that enhances
the Miller Lite taste experience. The pint’s
wider opening provides a smoother flow to
enhance the Miller Lite taste experience; the
aluminum cools like a can; and the resealable
closure helps lock in freshness. The Miller
Lite aluminum pint will be tested throughout
much of the Midwest and South through the
end of the year. The Miller Lite aluminum
pint, designed by Broomfield, Colo.-based
Ball Corporation, is intended for off-premise
retailers, with a focus on convenience stores.
The package will be sold as part of a 9-pack.
MillerCoors will support the debut of the
Miller Lite aluminum pint with television,
radio, out-of-home and online advertising,
as well as a variety of retail point-of-sale and
merchandising materials. For more information, call (414) 931-3848.
MillerCoors is also relaunching Foster’s
Special Bitter as Foster’s Premium Ale.The
beer remains the same. But the packaging is
getting tweaked along with the name. The
Foster’s Premium Ale oil can contains more
gold coloring and the logo is cleaner and
more closely resembles the Foster’s Lager. Oil
cans and 12-packs hit retail in August. For
more information, call (414) 931-3848.
Michelob Dunkel Weisse and Michelob
Pale Ale are joining Michelob, Michelob
Light, Michelob AmberBock, Michelob
Honey Lager and Michelob Porter as beers
available year-round to adults nationwide.
Dunkel Weisse is an unfiltered dark wheat
ale brewed with a special Bavarian yeast
strain combined with wheat, caramel and
chocolate malts. Pale Ale, previously only
available on a select seasonal basis in the
annual Michelob Specialty Sampler Pack,
can now satisfy beer drinkers throughout the
year with its delicious floral and citrus notes.
These Michelob Brewing Co. beers are also
getting a fresh, consistent look. Each will be
packaged in the brand’s signature embossed
bottle with its raised ridge around the neck
displaying a subtly arched label trimmed in
muted gold. New 6-pack carriers will show
detailed information on the side panel about
the ingredients, taste and color of each beer
style. They will be line-priced with other
Michelob products. For more information,
call (314) 577-9105.
After debuting on draught, Budweiser
American Ale launched in 12 oz. 6-packs
and 22 oz. singles at select on- and offpremise retail accounts. Robust and wellrounded, Budweiser American Ale’s rich
amber color and bright, hoppy finish is the
ideal counterpart to Budweiser’s signature
golden, crisp flavor. Budweiser American Ale
is an all-malt, top-fermented ale that is dry
hopped with Cascade hops from the Pacific
Northwest. Budweiser American Ale is 5.3
percent alcohol by volume (ABV). It will be
supported in the marketplace by a targeted
media plan consisting of television, print,
outdoor and Internet, along with exclusive
sampling events and on-premise merchandising. For more information, call (314)
577-9671.
ENERGY DRINKS
Go Fast Sports and Beverage Company, creator of Go Fast Energy Drinks, announced
that this fall, Go Fast Energy Drinks will
now be available in a 16 oz. can. Also
launching in the new 16 oz. cans will be new,
revolutionary formulas; Z-17, Light and
GFTea. Z17 was created by Go Fast to provide you with the most unique flavor blend.
Z17 still provides that Go Fast “kick” but
with the flavor, additional energy and benefits of Green Tea. GFTea includes a one of a
kind taste with an exclusive blend of White,
Green and Black teas. Go Fast Light has the
benefits of Z17 but in a light formula with
little aftertaste and no “diet” flavor. Hitting
store shelves this fall, Go Fast Sports and
Beverage Company will also be premiering
the new line of flavors and 16 oz. cans at this
year’s NACS. MSRP is $2.59 per can. For
DAIRY
Portland, Maine based Oakhurst Dairy has
announced that they will be introducing
Oakhurst Super Premium Chocolate Milk to
consumers across Northern New England.
New Oakhurst Super Premium Chocolate
Milk will be made with Oakhurst’s high
quality fresh whole milk produced with no
artificial growth hormone. Oakhurst has had
an overwhelmingly positive response from
retailers to the Super Premium Chocolate
Milk which will be available in both convenient on-the-go pints and in quarts. The
new product will be supported by in-store
merchandising, including shelf strips and
fridge clings, and with trade advertising. For
FUNCTIONAL BEVERAGES
NESTLE, the world’s largest food and beverage company, has introduced GLOWELLE,
a daily beauty drink dietary supplement that
protects and hydrates the inner and outer
layers of the skin. GLOWELLE is formulated
with a proprietary blend of high antioxidant
vitamins, phtyo-nutrients, botanical and fruit
extracts to help fight the signs of aging by
nourishing the consumer’s skin. GLOWELLE
is available in beautiful ready-to-drink glass
bottles as well as convenient seven (7) or 30
day powder pack kits. Made with real tea,
fruit and botanical extracts, GLOWELLE offers two flavors, Natural Raspberry Jasmine
Flavor and Natural Pomegranate Lychee
Flavor. GLOWELLE is available exclusively
at Neiman Marcus stores nationwide and
Bergdorf Goodman. Glowelle’s MSRP is $7
per bottle, and the powder is $40 for 7 day
and $112 for 30 day. It can also be found
online at NeimanMarcus.com. For more
information, call (212) 598-4400.
WINE
Sterling Vineyards, the landmark Napa
winery, has announced a new line of organic
wines from Mendocino County, Sterling
Vineyards Made With Organic Grapes
2007 Sauvignon Blanc and Chardonnay.
Additionally, a Cabernet Sauvignon made
from organic fruit is scheduled for release in
April 2009. The wines have been certified
by the California Certified Organic Farmers (CCOF) organization, whose emblem
appears on the back label. The SRP for both
the Sterling Vineyards Made with Organic
Grapes Chardonnay and Sauvignon Blanc
is $13. For more information, call (707)
299-2618.
Sutter Home has taken a contemporary
twist on tradition and broadened the definition of ‘red blend’ for more to enjoy. The
Napa Valley-based winery’s latest offering,
simply called ‘Red,’ offers consumers a
chance to further their wine tastes. A blend
of predominantly Merlot and Zinfandel,
Sutter Home pushed the envelope and
mingled in a touch of Moscato, a varietal
that has enjoyed wild success among Sutter
Home fans for years. Also widening the
appeal is how the wine can be served – at
room temperature as one would serve a red
wine, or chilled as with a white wine. Red
began hitting stores around the country in
mid-August, with a suggested retail price
of $5.99.For more information, call (707)
963-3104.
Diageo Chateau & Estate Wines has
announced the launch of The Monterey Vineyard, an ultra-premium Burgundian brand
from two of Monterey’s most respected subappellations, Arroyo Seco and Santa Lucia
Highlands. The Monterey Vineyard Pinot
Noir and Chardonnay wines are a reflection
of the region’s unique terroir and represent
the very best Monterey has to offer. The small
production Monterey Vineyard Pinot Noir
has a suggested retail price of $25.99. The
Monterey Vineyard Chardonnay has a suggested retail price of $22.99. Both wines will
be available nationally with the 2007 vintage.
For more information, call (707) 299-2626.
RTD TEA
The Healthy Beverage Company, makers of
Steaz Sparkling Green Tea and Steaz Energy,
has introduced its newest organic tea innovation – Steaz Organic Iced Teaz. Steaz
Organic Iced Teaz is the first full line of fair
trade certified, ready to drink iced teas. Flavors include four green tea varieties (Peach,
Blueberry/ Pomegranate/Acai, Mint, and
Unsweetened with Lemon), black tea with
lemon and white tea with lime and pomegranate. They are available in 16 oz. fully
recyclable aluminum cans. At 40 calories
per serving, the teas are lightly sweetened
with 10g of pure cane sugar and contain
only all-natural flavors. The Unsweetened
with Lemon flavor contains no sugar and has
zero calories. Recommended retail pricing
is $1.79 per can. For more information, call
(215) 321-8330.
ITO EN has debuted the Oolong Shot, a
premium unsweetened ready-to-drink tea
brewed from whole loose oolong tea leaves.
The drink, which contains more oolong tea
leaves brewed per serving than any other
ready-to-drink oolong tea on the market
delivers a whopping 171 milligrams of
oolong tea polyphenols in a convenient 6.4
fluid ounce steel can. Oolong, also known
as Wu-long and traditionally called blue
tea, is a dynamic balance between green tea
and black tea. Full bodied with a smooth
finish, research shows that an unidentified
compound in oolong may promote weight
loss. The tea is gaining popularity in the
United States among the health and weight
conscious. The Oolong Shot retails for
$1.79 and will be available at natural and
mainstream markets nationwide. For more
information, please call (707) 327-6413.
This fall, it’s all about what’s new for
High Country Kombucha, which is introducing a brand-new herbal-infused Kombucha
line, a new presence in the national market
and a new face at this year’s Natural Products Expo East trade show. The new herbal
line has five different flavors: Elderberry Hibiscus, Lemon Myrtle, Tibetan Chai, Herbal
Passion and Herbal Lite. Pricing has not yet
been released for these products. For more
information, call (720) 352-7144.
RECOVERY DRINKS
KIDS BEVERAGES
Code Blue, which calls itself “the world’s
first complete recovery drink,” is available
for purchase at www.drinkcodeblue.com.
Designed by beverage scientists to revive
your body, Code Blue is intended to combat
dehydration, replenish vital nutrients and
remove harmful toxins. Code Blue was created for people who enjoy going out at night
but need to wake up feeling refreshed the
next morning. Code Blue can be consumed
before, during and after a night out to speed
the recovery process and bring the body back
into balance. Code Blue is the first ready-todrink beverage to include Reduced Glutathione, one of the most powerful antioxidants
available. The drink is sweetened with
natural agave nectar. Code Blue is packaged
in a fully recyclable 12 oz. PET opaque blue
bottle. Its cutting edge design utilizes “LiquidMetal” technology to replicate a polished
metal look, and a 3D Holographic Ink label
which provides a strong shelf presence. This
product is searching for national distribution
with an expected MSRP of $2.99 per bottle.
For more information call (212) 584-4274.
The American Beverage Corporation
proudly introduced two proprietary new,
kid-friendly drink alternatives this September – Wall E Ice Bop juice slushies and High
School Musical fruit drinks. Both products
are all-naturally flavored, use no preservatives, are under 110 calories, and are rich in
antioxidants appealing to consumers looking
for healthier drink alternatives for their
children.Wall E Ice Bops – licensed with the
robot character of the movie with the same
name – are an innovative product that offers
the excitement of frozen fruit slushies at
home, at a picnic, beach or the park without
the hassle of a blender. They come in a convenient pouch and are made with 50% juice,
are all naturally flavored, naturally low in
calories, high in antioxidants and contain no
preservatives. Wall E Ice Bops are available
in four flavors: Space Station Strawberry,
Tropical Sunshower, Meteor Mixed Berry
and Lunar Lemonade.The new High School
Musical fruit drink is a line of single-serve,
naturally flavored fruit drinks in an 8 oz.
proprietary Disney ears PET bottle. This
fruit drink line carries the widely popular
Disney High School Musical branding and
will be available in three flavors – Reach
for Melon Peach, Big Game Lemon Berry,
and East High Fruit Punch. Wall E Ice Bops
will retail for a suggested price of $3.49 for
a four-pack. Twist ‘n’ Chill will retail for a
suggested price of $3.79 per six pack.
SPIRITS
Heaven Hill Distilleries, Inc., the nation’s
largest independent family-owned spirits
supplier, has announced a licensing agreement with McIlhenny Company of Avery
Island, Louisiana, creator of Tabasco brand
Pepper Sauce, to produce Tabasco Spicy
Tequila. Created from premium tequila flavored with the authentic and iconic Tabasco
brand Pepper Sauce, Tabasco brand Spicy
Tequila is a unique and perfectly balanced
marriage of the highest quality tequila
with the hot, spicy and bold Tabasco kick.
Tabasco brand Spicy Tequila will be available in a striking proprietary 750ml package
that features the highly recognizable Tabasco
“Diamond” logotype graphic on the face
label, with red and gold foil flames rising behind to the edges of the rectangular border.
Offered at a suggested retail price of $21.99
for the 750ml bottle, Tabasco brand Spicy
Tequila began selling in September in Dallas, Houston, Georgia, Indiana and North
Carolina. The brand will be supported by
a full range of on- and off-premise point-ofsale material, including a branded website
www.TABASCOtequila.com, all utilizing the
“Heat Up the Night” tagline and graphics.
For more information call Heaven Hill at
(502) 413-0220.
RTD COFFEE
POM Wonderful has launched POMx Iced
Coffee, available exclusively in New York
City and Whole Foods Markets in the
Northeast and North Atlantic States. With a
potent dose of caffeine and healthy antioxidants, POMx Iced Coffee is a sophisticated
energy drink for consumers who seek an energy boost but who typically avoid the excess
sugar and artificial ingredients associated
with carbonated sodas, coffee beverages and
energy drinks. POMx Iced Coffee does not
include or taste like pomegranate juice, but
comes in two creamy and delicious flavors:
Cafe au Lait and Chocolate. Each bottle of
POMx Iced Coffee contains a Healthy Buzz
-- a stimulating 175mg dose of caffeine and
enough POMx to equal the antioxidant power of an 8 oz. daily dose of POM Wonderful
100% Pomegranate Juice. Sold in a 10.5 oz.
single-serving bottle, POMx Iced Coffee has
a suggested retail price of $2.99. For more
information, call (310) 966-5858. U
Consumers want beverages with
healthy ingredients. Leave it to WILD.
Concern about fostering good health as well as maintaining a high quality of life has been
shown to impact 70% of food purchases. Consumers’ belief that active ingredients reduce the
risk of disease and improve long-term health qualities has pushed the functional foods market to
domestic sales of $26.9 billion and $81 billion worldwide.
Recognizing the need for ingredients without formulation issues, WILD Flavors has developed
H.I.T.S., Health Ingredient Technology & Solutions®. This line of health ingredients will add
value to your formulations for more commercially viable foods and beverages. To
support you in implementation of H.I.T.S. from concept-to-market with industry,
market and technological support, WILD offers health ingredients, flavors,
colors, sensory evaluation and complete commercialization of ideas.
WILD’s Heart Healthy
Tropical Beverage
To learn how WILD can help your formulations fall in favor with consumers,
call 1.888.WILD FLAVORS, or email us at [email protected].
GERRY’S INSIGHTS
By Gerry Khermouch
MORE THAN
A MARGINAL
DIFFERENCE
COUNT ME AMONG the wrongheaded majority who were doubters back in
the late 1990s after Red Bull had inaugurated the energy drink category, and with it,
profit margins that were unheard of in soft
drinks. Surveying the aisles crammed with
knockoff brands at the InterBev show the
following year, it was easy to predict that the
competition would knock down those rich
margins in no time, leaving energy drinks as
just another modestly profitable segment. It
wasn’t just me; lots of others drew the same
conclusion. After all, it had played out that
way in every other segment. Yet looking at
energy drinks a decade later, their margins
are still the envy of the business. The widely
predicted margin collapse has yet to occur.
I wonder if we all reflect often enough on
what a miracle that is. After all, we’ve seen
literally hundreds of entries come and go, including quite a few from such industry giants
as Coca-Cola, PepsiCo, Dr Pepper Snapple
Group and Anheuser-Busch, but we have
yet to see the ruinous price wars that have
characterized every other sector. How durable have the premium brands been? Even
private label has barely made a dent. Among
other beverage categories, I can think only of
beer as a segment where private label is not
a factor – and in beer there is a thriving tier
of subpremium brands, which is far from the
case in energy.
For the most part, consumers have been
content to stick with premium entries. I
think much of the credit for that should go
not just to the restraint shown by the manufacturers of energy drinks but to retailers
who’ve worked hard to protect this important profit center. A lot of you Beverage
Spectrum readers have been smart enough
not to let anyone kill this golden goose.
To find another beverage segment that has
protected its margins as well you have to
venture outside the ready-to-drink segment
to hot coffee, where Starbucks established an
elevated price for good coffee and everybody
else, from Caribou to Dunkin’ Donuts and
McDonald’s, has been happy to ride its coattails by conjuring up premium offerings at a
premium price.
True, over the past year promotional
activity in energy drinks has been on the rise
– two-for-$3 deals and three-for-$5 deals for
the 16-oz. players – at a time that mounting economic stress has winnowed traffic at
convenience stores and begun to force many
Americans to cut back even on so-called
affordable luxuries. Even if margins have
edged back a bit from $6 or $8 per case,
they’re still uncommonly lush.
So why did this segment break the trend?
Looking at what’s happening in other nonalcoholic beverage segments, one has to
wonder whether a key factor has been that
several of the leading brands continue to
operate independently. Red Bull, facing more
intense competition in this country than it
had experienced elsewhere, hasn’t panicked.
It’s maintained its high register ring and tried
to orchestrate its inevitable diversification
into larger packages in a way that doesn’t
seem as if it’s discounting. Hansen Natural’s
Monster, while fighting its skirmishes with
Rockstar and Full Throttle, has maintained
its marketing commitments in alternative
sports and offered line extensions – notably
Java Monster coffee energy drinks – that
generate an even higher register ring.
Contrast that pattern with segments like
iced teas, sports drinks and bottled waters.
They were all premium businesses until
Coke and Pepsi entered and eventually
turned them into a new front in the cola
wars. In the latest segment in which they’ve
chosen to do battle – enhanced waters – the
transformation from premium to commodity is occurring with scary rapidity. Barely
a year ago this niche was a paragon of
superpremium pricing, thanks to the efforts
of Glaceau, the deft marketer of vitaminwa-
ter and smartwater. Sad to say, even before
that brand reaches its one-year anniversary
in November of its transition to the Coke
bottling system, that segment has gone the
way of bottled waters, iced teas and isotonics, as Coke blows out the brand at 10 for
$10, five for $5, even 10 for $8 while rivals
Pepsi (with SoBe Life Water) and Dr Pepper
Snapple Group (Snapple Antioxidant Water)
likewise plumb the $1-per-bottle barrier. By
some estimates, in doing so, Coke already
has cut the value of its $4.2 billion investment by nearly half.
Against that dreary picture, energy drinks
are a marvel to behold. So how long can this
lucrative run continue? We can’t rule out as
a concern that the foundering economy will
increase the stress on margins for this most
blue-collar of segments. Given the lessons of
the other categories, though, I find greater
concern in some of the maneuvering that
was occurring as this article was going to
press: Coke trying to establish a distribution
alliance for Monster, Rockstar looking to
negotiate a similar partnership with Pepsi or
DPSG if it loses its place at Coke. In both
cases, it seemed likely that an equity investment would be negotiated as part of the
deals, meaning both brands would lose some
of the autonomy they’ve enjoyed under their
current distribution partnerships. No question, in areas from procurement to overseas
expansion to procuring bigger beachheads in
non-c-store channels, those alliances could
be very beneficial. But seeing how quickly
those giants have managed to turn enhanced
waters into a commodity makes me wonder
if, for energy drinks, those potential rewards
will be worth the tradeoff.
Longtime beverage-watcher Gerry
Khermouch is executive editor of
Beverage Business Insights, a twice-weekly
e-newsletter covering the nonalcoholic
beverage sector.
WE
ALREADY
HAD A V8
By Hinda Mandell
FOR 75 YEARS, V8 has been trying
to get us to drink our vegetables.
But recently, the brand managers
turned to an unfamiliar ally to try to
pump some life into the old warhorse
of a brand: fruit.
hile the prototypical goodfor-you drink marked three
quarters of a century this year,
it had to change. Although it’s
managed to stay consistent with
its original mission to provide a drink for the
consumer who knows that veggies are good
but doesn’t have the time to prepare them,
V8 pulled itself out of an innovation lull –
and into a high-visibility deal with distributors like Coca-Cola Enterprises – by crossing
the produce aisle and marrying itself to some
sweeter fruit flavors.
In all likelihood, however, it was a forced
union. Staying true to its space-age “drink
your vegetables” motif had, over the years,
left the brand as crusty and old as John
Glenn and his fellow Mercury astronauts.
The story of how V8 made the move from
space age to information age, adding new
SKUs that include – heresy! – fruit juices,
offers an interesting lesson in how a wellestablished but ancient brand can keep
itself relevant and entice a new generation
of consumers.
In so doing, the brand managers also
made the product into an important part of
parent company Campbell’s bottom line. In
rolling out V8 Splash, a fruit juice mixture,
and more recently and impactfully, V-Fusion,
a daring fruit-and-vegetable juice combination, the V8 brand has been revived from its
old-age doldrums faster than you can
say “Cocoon.”
“They’re taking a good corporate band
name and branching it out over good-tasting
[fruity] beverages,” said Marty Brown,
president of the California-based beverage
consulting firm, Power Brands. And the
market has responded.
Even as second-quarter earnings for
Campbell’s fell 3.9 percent in February, according to the Wall Street Journal, V8 put in
a strong performance. Information Resources Inc. reported that sales from V8 Splash
and V-Fusion were up 12.46 percent and
82.25 percent, respectively, for the past year.
V8 Splash sales in supermarkets, drugstores
and mass merchandise outlets – excluding
Wal-Mart – totaled more than $61.1M for
the year ending March 23. V-Fusion’s sales
topped $75.1M. CCE reported that its V8
partnership was responsible for 10 percent
of the volume growth of its still beverage
portfolio in the last year.
“We can’t keep it on the shelf. We are
making V8 V-Fusion 24-hours a day,”
said Juli Mandel Sloves, a spokeswoman
for Campbell’s, which purchased the
brand in 1948.
Not a bad turnaround for a brand that
was becalmed in the center-store doldrums.
Lately, all the excitement in the juice category has rested in the new produce-centered
lines of superfruit drinks like POM Wonderful and Naked, rather than in the shelf-stable
aisle. Even the once-innovative Ocean Spray
has taken it on the chin, and attempted to
branch out into energy drinks, of all things.
But rather than trying to beat the producecentric superfruits, V8 joined them, and
did so while playing on its own halo as an
extremely healthy, if not “super,” product.
Today, the company that has been selling a
blend of tomato, carrot, celery, beet, parsley,
lettuce, watercress and spinach juices for the
better part of a century, is now offering ontrend flavors as hip as the hottest beverages
out there. In the mood for an Acai Mixed
Berry beverage? What about some Blueberry
Pomegranate, Strawberry Banana, or Peach
Mango liquid refreshment? V-Fusion has a
variety for each – with a vegetable base that
is barely detectable to the taste buds. And
The company that brings you Sun Shower™ 100% Nectarine Juices has just made some
great additions to its family of nutritious and delicious beverages:
• All Natural 100% Juice Superfood Smoothies—(Stamina, Defense, Heart
Healthy, Revitalize, Strength)
• All Natural Superfood Fruit ‘N Yogurt Smoothies—(Strawberry-Banana,
Berry Blast, Orange Passion, Pina Colada)
• Super Blends—Healthful Indulgence (Iced Coffee, Chai Tea Latte, Mocha
Cappuccino, Chocolate Raspberry Frappe)
• All Natural 100% Juice Super Juice—(Stamina, Defense, Heart Healthy,
Revitalize, Strength)
• Super Juice Beverages: Light ‘N Healthy—(Stamina, Defense, Heart
Healthy, Revitalize, Strength)
Each new Sun Shower™ flavor features the Lifeguard™ fortification package of essential
vitamins, nutrients, amino acids, electrolytes and herbs. Give your customers something
new and unique that is also nutritious and delicious. Give them Sun Shower™.
www.nbijuiceworks.com
the juice’s color is no longer just tomato
red: it spans the rainbow to include purple
and orange.
“If you appreciate the core benefit around
vegetable nutrition in a beverage, your
imagination can run wild,” said Darren Serrao, vice president of beverages at Campbell
Soup Company.
Still, it took a long time to start running
at all – much to the grumbling of distributors. For years, the company only saw fit to
push out marginal line extensions that put
the product in the hands of those who were
already familiar with the brand, rather than
extending its reach through fruit.
And that risk aversion apparently held
off innovation at the company for a long
time, making it seem like a product only
drunk on airplanes and at brunch, mixed
into a “Bloody Mary” with its eternal
companion, vodka.
With Splash, V8 started its campaign to
move past its traditional boundaries into
fruit juice blends.
For one industry insider and veteran of
Coca-Cola Company and Coca-Cola
Enterprises – which has been distributing
V8 since 2007 – the question is: “What
took so long?”
There’s a good point there. After all, check
out these SIZZLING line extensions: Low
Sodium! Spicy Hot! High Fiber! Calcium
Enriched! No wonder it generated the excitement of a Tuesday night Bingo game.
Everyone loves a good “Bloody,” of
course. But for a long time, the core consumer of V8 has been perceived to be as
much an enthusiast of blood thinners as they
are of cocktails.
When a brand reaches geriatric age, it
can either slow down with its consumers – a
la Ovaltine – or it can try to stay spry, and
that’s finally what V8 has done.
After all, not everyone is keen on the oldfashioned V8 product, a fact even Campbell’s acknowledges. This gap – between
those who drink V8 for health’s sake and
those who were likely to forsake nutritional
health because of the taste – read: KIDS
– proved enough of a market segment to
prompt V8 to add a splash of fruit.
The goal was to capture the purchasing
power of those who don’t like the “zesty,
tomato-y taste of original V8,”said Mandel
Sloves. Campbell’s even gave this group a
name: “red-rejectors.”
“We estimate that these ‘red rejectors’
make up 50 percent of the population and
therefore a significant audience that we could
reach with a new product just for them,”
said Mandel Sloves.
So the innovation of a squeeze of fruit was
a solid one. After all, the brand has always
had a healthy aura. Consumers ranked
V8 as the healthiest brand in the 2007
HealthFocus Trend Report, which provides
analysis of food shoppers’ health and nutrition behaviors. Consumers were asked to
rate brands – beverage and foodstuff – they
believe are “extremely or very healthy by
those who are familiar with the brand.” V8
captured 66 percent of the vote, beating 49
other brands for the top slot, including such
wellness brands as Quaker, Kashi, Horizon
Organic and Organic Valley – all of which
tied for second place. Potential competitors
to V8, such as Tropicana and Ocean Spray,
ranked 12 and 19, respectively. Campbell’s
ranked 24.
And it’s worked. Households with kids,
adults 25 and over, are the ones buying the
V8 fruit lines as core consumers, according
to Mandel Sloves. Part of what has attracted
the families to try V8 Splash and V-Fusion is
the recognition of the original brand name,
say beverage analysts. It’s almost like beverage nepotism – picking up a brand on the
basis of a parent’s good name.
“Where it’s positioned, it has very, very
good, solid brand name recognition,” says
Brown. “If you think about a tomato based
product, you’ll think about a V8.”
But before to the decision to add the fruit,
that may have become as much of a liability
as it was an advantage.
Campbell’s wouldn’t provide details on
how and when, specifically, the decision
emerged to juice up the brand. Nor did it
say whether there was any opposition to the
move. According to Mandel Sloves, however,
there was “great enthusiasm for the opportunity to evolve the V8 brand.”
And decades of effective advertising for
V8 – showcasing the healthfulness of vegetables in a bottle – may have also paved the
way for new customers to try V8’s fruitier
varietals.
“V8 is capturing a whole group of
consumers who are reinforcing the fact
that they’re drinking something healthy
because it has the V8 label,” said the
veteran executive.
The next challenge for V8 is to keep up
with the demand. Increased production
space for V8, V8 Splash and V-Fusion may
require capital investment in the near future.
According to a transcript from the second
quarter press conference in February, Bob
Schiffner, senior vice president and CFO at
Campbell’s, said: “As far as the capacity is
concerned … we are nearing capacity constraints … we will be spending capital starting this year into next year to add additional
capacity in beverage.”
Doug Conant, president and CEO of
Campbell’s, cited “a strong record of in-
With V-Fusion, the company has stepped
solidly into the New Age, mixing up
veggies with its new fruit drinks.
novation” as driving the performance of the
company’s beverage segment at the Consumer Analyst Group of New York Conference in February. In fact, beverages – i.e. V8
– represented the best-performing segment of
Campbell’s business in 2007, according to a
transcript from the event.
“We have migrated our positioning of V8
from merely a smarter juice choice among
many on the shelf to a key weapon in the
search for an easy way to consume more vegetables every day,” said Conant. He added:
“V8 V-Fusion is ideally suited for consumers who are looking for vegetable nutrition
without vegetable taste. As a result of the
strength of this proposition, V8 V-Fusion has
been the best launch in the shelf stable juice
category in the past five years.”
There you go: an overnight success. At 75. UÊ
BRANDS IN TRANSITION
MAGIC HAT’S
NEW TRICKS
BY MATT CASEY
Anyone who has ever cracked open
an apricot-tinged Magic Hat #9 will tell you
that Magic Hat takes a unique approach to
beer. The company has never followed the
conventions of the industry, and has experimented with flavors most brewers wouldn’t
approach. (Think lemongrass. Or – ick –
garlic.) Couple that with quirky promotions
that range from traveling circuses to Mardi
Gras parades in eight-inch Vermont snow
storms, and the brand has earned a reputation like none other – but what else would
you expect from a brewery that spawned
from the same city as Ben and Jerry’s Ice
Cream and the alternative rock band, Phish?
Despite the brand’s free-wheeling Burlington vibe, Magic Hat founder Alan Newman
knows a bit about business. In the late 80s,
he bought a catalogue company called Renew America that sold Earth-friendly household products. Today, that company – now
called Seventh Generation – ranks as one of
Vermont’s largest employers, and stocks the
cleaning aisles at natural foods retailers like
Whole Foods, but Newman’s tenure with the
company ended in 1992 when his partner
forced him out. Undeterred by his ouster, he
started Magic Hat. The brand’s distribution
territory initially clung close to the coast
of Lake Champlain, but, today Magic Hat
ranks as the twelfth-largest U.S. craft brewer,
and sells #9, Circus Boy, Lucky Kat, Single
Chair Ale and a selection of seasonals as far
south as Georgia and as far west as Chicago
– admirable progress for a man that says he
got into a business he “didn’t understand.”
“I really don’t have a crystal ball and
I really don’t know what’s going to
happen,” Newman said, “so I keep
following my nose.”
Newman plays humble, and calls himself
“stupid,” but he earned the label of “serial
entrepreneur” from the Wall Street Journal,
so he must be following one lucky nose.
Lucky or not, that nose recently led him
all the way to Pyramid Breweries on the
West Coast. Newman and his partners
at Magic Hat ponied up $25.7 million to
Magic Hat’s Brewery Bar.
purchase Pyramid in a move that represents
a new stage for the quirky Vermont beer
company. But, for those of you reading on
the West Coast, don’t expect to pick up a
six-pack of Berkeley-brewed Magic Hat any
time soon.
“That last thing in the world we would
try to do would be to consolidate the
brands,” Newman said.
While there’s probably some ideology to
Newman’s aversion to consolidation, there’s
a practical aspect as well. According to
Magic Hat Brewer Matt Cohen, the beer he
brews can only be fermented in one place:
the high-school-gym-sized fermenting room
at the South Burlington Artifactory.
PINCH POINT
The company uses an open fermentation
process, which allows continuous reuse of
the same yeast. Other breweries have to
discard their yeast after three or four generations. Keeping the yeast creates a consistent
note in the beer, and Cohen said the room
itself “creates a unique flavor that’s found
across all of our beers.”
Crammed tight with catwalks and opentopped vats, the room smells faintly of fruit.
Bubbles gurgle out of fresh worts – the
solution that, with the help of microorganisms, becomes beer. Waves of carbon dioxide
tumble out of the tops of the vats, and yeast
forms a crust on beer nearing the next stage
of production. Those conditions, Cohen
said, hold a key to Magic Hat’s personality.
But that unique flavor comes with a price.
Cohen can only brew with one strain of
yeast at a time – otherwise they’ll cross-pollinate – and the conditions surrounding the
room faintly resemble those of a Haz-Mat
lab. Okay, so nobody wears sterile plastic
suits to check the beer, but anyone entering
the room washes their shoes first, and air
rolls out when they open the door. The clean
shoes and pressurized room – the result of
pumped-in filtered air – keep wild yeast out.
All of those little issues add up to a bigger
one: the room can’t grow. Cohen calls it the
company’s “pinch point.” As Magic Hat
gains popularity amid a craft beer market
that grew 12 percent in 2007, the brewery
approaches the limits of its capacity. Magic
Hat already moved its headquarters once,
but Cohen said the company has striven
to deliver consistent product as it has
become more popular.
And it has definitely become more popular. According to the Brewers Association,
Magic Hat’s sales hit 102,506 barrels in
2007 – up from 38,400 in 2003 – after four
continuous years of 23-40 percent annual
growth rates.
ORGANIC AND GARLIC
But growth brings pain. The brewery had
to discontinue several flavors – including
Humble Patience, Magic Hat’s one-time
flagship product – because their sales didn’t
warrant continued production. Additionally,
not everything they try succeeds.
Cohen said Magic Hat once brewed a
garlic-infused beer that served best as a penalty for losing a bet, and their Orlio organic
line has suffered from fits and starts since its
March 2007 roll-out. Initially launched with
blanket distribution, it didn’t quite catch on
everywhere. Magic Hat spokeswoman Krissy
Leonard said that initial broad launch allowed the company to find out where the
product worked, and calibrate their support
accordingly. Since then, she said the line is
“doing everything that we’d expect it to.”
Then there are the physical limitations of
that one precious room. To get around them,
the company installed new equipment and
expanded its facility. They added a centrifuge
to cleanse the beer more quickly, built two
grain-silo-like towers to free up fermentation
space, and recently completed a new bottle
filling line.
That last one represents a big jump. The
old bottling line – still in operation – can
clean, fill, cap, label and pack 100 bottles
per minute. The Magic Hat crew ran the
machine 24 hours per day, six days a week
just to meet demand. In September, they
started the new bottling line. This one can
process 400 beers per minute, but has yet to
be pushed to that limit.
“If we didn’t do the Pyramid deal….
Magic Hat would be fine for the next three
to five years,” Newman said.
CRYSTAL BALLS
But what of the Pyramid deal? Newman
called it part of the company’s “longer-term
strategic vision” – something that sounds
suspiciously like it might involve a crystal
ball, though, perhaps a hazy one. Newman said he doesn’t have a plan for what
the world will look like in five to ten years,
but, the way he sees it, the beer industry is
currently in a state of consolidation. For
evidence of that, look no further than the
big American brands of Coors and Budweiser, now divisions of MillerCoors and InBev,
respectively. Newman doesn’t like it, he
said, but he doesn’t make the rules. He
just plays the game.
1 tube = 10 DrinkTabs
“When we began, the hottest category
in alcoholic beverage was something called
wine coolers,” he said. “Then that disappeared and next came ciders... then ciders
kind of lost their way and that new amorphous malt beverage started coming in... and
now you have a huge influx of what I’ll call
super premiums.”
His solution to the ever-changing
market is to accept that the environment
will change, and employ people that stay
plugged-in and passionate about beer. In the
current environment, merging makes sense.
And despite suddenly owning a second beer
company, Newman said he and the Magic
Hat team “really believe in small independent craft breweries.”
He’s not kidding. Cohen, standing in
Magic Hat’s quality control room (one of the
few quiet places in the Artifactory), said he
doesn’t view other craft brewers as competitors. Their experience has told them that
craft beer drinkers don’t declare their allegiance to a single brand. Instead, they gravitate toward a handful of brands and dabble
in others. If a Magic Hat drinker picks up
a six-pack of Switchback or Sierra Nevada,
the theory is that the company hasn’t lost a
customer, because they’ll be back.
So why consolidate?
Because, Newman said, uniting the
otherwise-solo breweries
under Independent Brewers United Inc., will allow
the companies to be “big
behind the scenes.” The
two breweries will be able
to share costs and knowledge on the back end while
maintaining their own
personalities.
The deal puts a scattering of West Coast
infrastructure under Magic
Hat’s control, but also,
as Brewers Association
Director Paul Gatza put it,
“puts Magic Hat a little bit
Lucky Kat,
in the restaurant business.”
one of the
Pyramid operates two
seasonal
production breweries with
offerings.
attached restaurants and
three stand-alone brew pubs.
“I see it as more evolutionary than anything else,” Newman said. “I don’t see it as
being that huge of a leap, but that could be
because I’m stupid.”
Newman said if he had time, he’d probably find the transition at Magic Hat “scary.”
But he doesn’t have time. So, he’s excited.
“I may be in for the shock of my life,” he
said. “But we’re still in the beer business.” UÊ
www.ZenergizeHealth.com
POWDER
POWER
BY MATT CASEY
dmittedly, powdered beverage
mixes aren’t new technology.
Tang, after all, has been around
long enough to have been
used during NASA’s Gemini
program in the 1960s, and,
early on, Gatorade sold in canisters as often
as it sold in bottles. But modern marketers
have taken a new twist on powdered drinks.
Instead of relegating drink mixes to tubs
that sit in mom’s cabinet, new powdered
beverages come in single-shot sleeves, called
“sticks,” that can go everywhere that bottled
water can.
“The stick is very portable,” said Ryan
Alarid, co-owner of Zizzazz Explosive
Energy Mix. “It’s not like the old Gatorade
canisters… you can’t take that anywhere.”
That convenience, along with price, profit
margin and customizability pushed the overall powdered beverage market segment to a
respectable 7 percent growth rate between
2006 and 2007 according to Mintel market
research –growth that, in all likelihood,
hascontinued to increase in 2008. As powdered drinks near $1 billion in yearly sales,
Gatorade, Propel, AriZona, Zizzazz, Jones
Soda and others have added new single-serve
options. While those companies package
their powders in envelopes, some companies
have taken a more innovative tack on quickmix drinks, incorporating powders into capdelivery systems or condensing the whole
formula into an Alka-Seltzer-like tablet.
BIRTH OF A TREND
Before there was a trend, there was Crystal
Light. The sugar-free mix debuted in 1984,
and powered sales through its low-calorie
status – and an endorsement from Dynasty
star Linda Evans. (She played Krystle Carrington, don’t-cha-know.) Even though
Dynasty ended in 1989, and big hair soon
followed, Crystal Light pushed on with
a revolving cast of spokeswomen and the
banner of “I believe in Crystal Light because
I believe in me.” Along the way, Kraft sold
the product in both large canisters and in
multi-packs of individually-packaged tubs
pre-measured to mix with a pitcher of water.
As a brand in touch with its mostly-female
customer base, Crystal Light noticed when
its customers started carrying bottles of
water everywhere. In 2006, Kraft introduced Crystal Light “On the Go” packs,
now found in individual packs and ten-stick
boxes. The brand also changed its focus
from low-cal to low-cal and high function.
Crystal Light pushes antioxidants in their tea
mixes, vitamin-C in their “Sunrise” powders, and energy, hydration and immunity in
their “Enhanced” line. That shift not only
parallels the modern beverage industry, it
also serves as a microcosm for the whole
powdered-drink segment.
“The major growth has come from energy
drink mixes and sports drink mixes,” said
Mintel Analyst Garima Goel Lal. “Consumers are usually ready to pay higher prices for
value-added products.”
Despite those higher prices, drink mixes
still ring in as inexpensive refreshments and
appeal to “price sensitive” consumers, Goel
Lal said – which falls directly in line with the
history of powdered drinks.
Kool-Aid, the first powdered drink, hit the
market in 1927, according to the Hastings
Museum. Long before cult suicides made
“drinking the Kool-Aid” into a popular
epithet for brainwashing, the brand rose to
popularity as an attainable luxury, a step
up from pedestrian water. During the Great
Depression, inventor Edwin Perkins sold
packets for 5 cents each, and cash-strapped
families snapped the product off the shelves.
Perkins’ company churned out as many as
one million packets of the powder per day by
the time he sold the brand to Kraft in 1953.
Powdered iced teas, lemonades and other
products arrived later, and firms also introduced the large-format economy canisters
that gave rise to the American standbys of
“bug juice” at summer camp and Gatorade
showers at the Super Bowl.
But the segment had matured and slowed
by the time Bevology co-founder Tom Hicks,
about to leave Naked, first contemplated
his drink mixes in tablet form. AC Nielsen’s
scanner data showed that the segment
actually shrunk by 1.1 percent in 2005 in
food, drug and mass merchandiser channels (excluding Wal-Mart – a likely source
of even more sales). Since then, there’s been
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an explosion of brands including EmergenC, ZipFizz, Easy Drink Packs, and Zym.
Nielsen’s data shows that the segment’s dollar value has grown by 25 percent in those
channels, as marketers have pegged their
powders to functional claims and rolled out
individual servings.
A typical single-serve drink mix costs between 35 and 55 cents and tops out around
70 cents. Adding a bottle of water raises the
total price to a range similar to that of an
RTD, but tap water and a tall glass or reusable bottle works just as well as store-bought
water in a 16.9-oz PET. That not only makes
the carbon-footprint crowd happy, but also
puts mixes within the reach of Goel Lal’s
price-sensitive consumers. Because of that,
she projects powdered drink mixes will add
sales to their respective segments.
Zizzazz’s Alarid also noted that customers don’t have to use water as the base
liquid for drink mixes. Other beverages, he
said, make interesting options – especially
alcohol. He pointed to the example of Red
Bull. The brand holds a special place in bars
where it makes up one half of the nowubiquitous Red Bull and vodka Favorite or
not, it doesn’t allow bartenders any room
for creativity. Zizzazz, Alarid said, lets them
experiment with four different flavors while
still mixing caffeine with liquor.
While versatility with intoxicants might
rank as a big perk in bars, consumers can
also customize their drink mixes in most
situations by simply using more or less water
than suggested. Hicks said his wife, for example, drops one Zenergize tablet into a liter
of water instead of the suggested half liter to
create a drink with a lighter flavor.
Major RTD brands introducing powdered
mixes might not like consumers tinkering
with their formula, but Gatorade Spokeswoman Jill Kinney said powder extensions
buttress the core product.
“With the Powder Packs, we’re providing
our consumer with the opportunity to take
their Gatorade on-the-go in the event the
portability of a ready-to-drink product is a
barrier to usage,” she said. “With placement
in the powdered drink aisle, we have also
created a new point of interaction with our
consumers in-store.”
Consumers can find Gatorade Powder
Packs near the brand’s sister-product, Propel
Fit Powder. Kinney said Propel Fit Powder met at “extremely” positive consumer
response on the strength of its low-carb and
low-calorie credentials as well as its vitamin
payload. She added that the product’s successful debut cleared the way for Gatorade
to appear in a compact, quick-mix form.
While that’s all good news for beverage
marketers, the benefits of powdered drinks
extend to retailers and distributors.
ALL THOSE INCHES
As ultra-compact products, drink mixes run
at a higher price-per square inch than other
beverages, and could translate to more coin
in your cash drawer. AriZona’s Tea Stix, for
example, come in 30-count counter packs
that take up 18.75 square inches of shelf
space – a space that could hold just three 16
oz. energy drinks – and yield total revenue of
$10.50 to $15.00. Selling three 16 oz. energy
drinks, on the other hand, would yield a
total sale of $6-9. As a bonus, powdered
beverages don’t need to be refrigerated, and
can be strategically located in otherwise
hard-to-use spaces. Crystal Light offers stickholders that hang on cooler doors, but beverage mixes present a profitable use of space
even in bulk. Bevology’s Zenergize products
come in 10-tablet tubes that retail for $6.99
and occupy less than an inch of shelf space.
That compact nature offers an additional
benefit to retailers – lowered transportation
costs – according to Zizzazz’s Alarid.
“For the convenience stores, the margins
are much higher than your average drink –
mainly because of fuel costs,” he said.
Zizzazz’s 72-count retail boxes weigh
less than two pounds, 30 pounds less than
72 8 oz. Red Bulls would weigh. Factor in
the much smaller package, and the shipping costs for mixes approach zero when
compared to RTDs. Where shipping costs
fall, so do environmental impacts, and Hicks
noted that the compact nature of the products reduces waste.
“Do you want to recycle one of these
small tubes, or do you want to recycle 10
bottles?” Hicks said.
Some stores have even exploited this angle
by selling his Zenergize tablets with Sigg,
a fast-growing line of metal water bottles,
he added.
CAPS AND TABS
Hicks’ brand represents a twist on ready-togo beverages. Instead of packing a breath’s
›› REHYDRATED OPPORTUNITIES
Many of the products entering the
powdered beverage
market are extensions of ready-todrink beverages, but
a couple have gone
in the opposite direction. Both Jones
Soda’s 24C and
Alacer’s Emergen-C
existed as powdered
products before
finding their way –
pre-mixed – into
a bottle.
Alacer introduced
their Emergen-C
Health and Energy
Water in March, as
an RTD extension
of the company’s
existing powdered
products. Bruce
Sweyd, Alacer’s
vice president for
powders and tablets,
said powdered
Emergen-C has been
on shelves for two
decades and leads
the category in
sales, but its appeal
is limited to the vitamin aisle – a place
many consumers
rarely visit. However,
the company saw
an opportunity to
expand its audience
amid the surge in
enhanced waters.
“We felt like,
who could be better
positioned to provide
a better ready-todrink [enhanced
water] than Alacer?”
Sweyd said.
In that spirit, Alacer launched 16 oz.
RTDs with the same
vitamin content as
their powder packets. Sweyd said the
product is performing well in natural
channels, and
reaches a different
consumer than the
powdered product.
Jones’ 24c
presents a different
story. Jones wanted
to enter the growing
enhanced water
category, and liked
the idea of using ‘24’
in the brand name.
They discovered,
however, that a
company called 24c
already existed, and
peddled powdered
vitamin beverages
in a tiny distribution area in Costa
Mesa, Cali. – so they
bought it.
Jones Spokesman
Seth Godwin said
the two products
offer different ad-
vantages – the RTD
form tastes better,
while the powdered
form contains more
vitamins – and give
consumers two
options for drinkable
vitamin supplements.
The RTD version
sells in Target
nationwide, and
in DSD accounts
throughout the
country. Godwin said
it performs particularly well in the
Northeast, but the
company didn’t have
a strategy prepared
for entering the
powdered beverage
market. “We’re still
kind of figuring out…
how to go to market
with the powders.”
Godwin said.
While Jones feels
out the best way to
approach the segment, they’ve signed
24c with a strong
distribution partner:
Whole Foods.
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BRAND NEWS
worth of powder in a sleeve, he packed his
powdered drinks into effervescent tablets.
(read: “plop-plop, fizz-fizz…”) Zenergize
and Superfly dissolve in water, mixing
themselves and giving off bubbles. However, that self-mixing process takes about
three minutes compared to the few seconds
required to properly stir a powdered mix,
and the tablets don’t fit through the mouth
of a standard PET bottle. The tablets must
also stay in their specially-treated tubes prior
to use, or moisture in the air could dissolve
them prematurely. And don’t put the tablets
in your mouth, unless you have a sudden
need to appear rabid.
Those complications appear surmountable, as Hicks said Bevology is currently
shipping product to Costco – and his
company will likely enjoy limited competition in its sub-category for the foreseeable
future. Hicks said the brand’s packaging
“went through probably 67 changes” before
they settled on a final design, and the tablets
themselves required extensive development
to reduce their dissolve-time to three minutes. Each new flavor also requires intense
trial and error because the tablets must
weigh exactly 5.5 grams.
“Anytime you take something out you
have to add something back in,” he said.
While fizz-tabs might shun the standard
PET bottle, other mixes are putting themselves right on top of them. Delivery-caps are
put powders in innovative packages. A handful of companies, including Liquid Health
Labs and Blast Cap Technologies, have
produced cap-mounted delivery mechanisms
for drink mixes. Both companies license their
technology to beverage brands that market
the caps with attached bottles of water,
but a few companies have sold the caps
as stand-alone products. At 99 cents to
$1.50 each, the caps retail for a higher
price than either sleeved-powders or tablets,
but they bring a hint of novelty and more
convenience to consumers.
“I think it is a new category,” said Ken
Milligan, executive vice president of Liquid
Health Labs. “It’s not an RTD, it’s an ‘RTG’
(ready-to-go.)” (See our earlier story
on delivery caps, available online at
BevSpectrum.com)
Products using that kind of packaging innovation are subject to pricing pressures, to
be sure. On the other hand, they are playing
in the fast-growing arena of functionality – with enhanced waters the fastestgrowing part of the category - and there’s
an argument that a packet helps keep those
functional ingredients fresher than premixed
beverages Now, companies are rushing mixes
into the market. Once relegated to bug juice
and elementary school lemonade stands,
mixes are moving into gym bags and purses.
But are they mainstream? It’s hard to tell,
especially since some of these products are
moving in the other direction, like Alacer’s
push to put Emergen-C into an RTD form.
Still, it wouldn’t be doing so without a
strong powder aisle base from which it could
grow. More mainstream brands are entering
the segment, and Alarid, for one, expects all
major energy drinks to introduce powdered
versions. Maybe one day soon, everybody
will be able to carry dry versions of their
v>ÛÀÌiÊ`ÀÊÊÌiÀÊ«ViÌ°ÊU
ZYM Catapult
ZYM recently added “Catapult”
to its line of tablet-based drink
mixes. Infused with 100mg of
natural Guaraná caffeine, Catapult is a supercharged version
of ZYM Endurance, the hydration drink introduced two
years ago by BE Innovations.
Catapult adds B12 vitamins to
the mix as well, for a hydration
drink that fights dehydration,
fatigue, muscle pain, and lactic
acid build-up.
Phix
Phix, Inc. announced the launch
of Phix Energy. The all-natural
powdered energy drink mix
promotes improved energy and
mental clarity. It contains green
tea anti-oxidants, yerba maté
and NADH. Phix Energy is now
available online at Whole Foods
Markets, Metropolitan Markets
and New Seasons Markets in
the Northwest.
Açai Daily Drink Packs
Manufactured by Easy Drink
Pack LLC of Norcross, Georgia, the açai packs contain a
powdered, freeze-dried form of
the berry’s pulp – without sugar
or other additives. The new Açai
Daily Drink Packs are USDA
certified fully organic
and natural.
Zipfizz
SPORTS DRINK MIX
Dollar Sales
CATEGORY TOTAL
$66,422,150
31.0%
Propel
$30,801,850
75.9%
Gatorade
$23,413,370
9.4%
Crystal Light Energy On The Go
$6,051,213
39.7%
Gatorade Frost
$2,791,256
-16.1%
Zipfizz recently expanded
its distribution channels by
adding CVS, Target, Rite Aid
and Odom distributors, and
announced a new flavor: Grape.
All Zipfizz flavors can be purchased in 20 count boxes and
three-packs as powderedfilled tubes.
Capri Sun Sport On The Go
$1,079,592
-42.8%
Zenergize
Private Label
$663,846
49.6%
Powerade
$657,485
-25.5%
Gatorade Fierce
$334,694
-23.9%
Power Bar
$193,218
N/A
Replenish
$103,199
132.5%
Zenergize, originally sold in
10-count tubes, recently added
32-count canisters of individually-wrapped enhanced-water
tablets for national distribution
in Costco.
Power Edge
$74,515
269.1%
4C Totally Light 2Go
$74,294
N/A
Gleukos
$48,173
43.8%
Power Bar Recovery
$41,695
94.7%
Power Bar Endurance
$36,613
73.8%
Zizzazz
Zizzazz energy drink mix recently diversified its line to include
a workout mix, a drink mix for
kids (Kidz Zazz), a weight loss
mix and a non-caffeinated mix.
All ZizZazZ products come in
stick packs. UÊ
CATEGORY REPORT: BOUTIQUE CSDs
BRIDGING THE
GREAT DIVIDE
BY JEFFREY KLINEMAN
For years, the divide in the boutique CSD category has been easy to trace – it’s the line between
the carbonated juice and the gourmet, old-school
soda. That’s why Beverage Spectrum divided coverage this year, letting the Izzes and Fizzy Lizzys
of the world strut their stuff without having to
wrangle with the Reeds’s and the Maine Roots.
But apparently soda makers abhor easy definitions, so the gourmet soda group, this year, has
morphed and split once again. The gourmet
stuff remains gourmet stuff – more sugar,
high end packages, natural sourcing,
hard-to-beat flavor profiles.
But there are also enough new entries under
the “healthy soda” rubric that they basically
comprise a group of their own: even though
these products make no pretension about having the wholesomeness of juice are nevertheless
pushing their health benefits forward. They’re
still sodas, of course, but they’re functional,
they’re artificially sweetened, and they’re trying to bridge the divide between the old-school
flavor associations of the CSD with the new
age idea that a drink can do more.
The key piece of leverage to many of these sodas
is the experimental sweetener stevia. The idea that
a natural diet sweetener might be a game-changer is
a big one. But it’s such a big idea that the CocaCola Co. and PepsiCo are working on stevia-based
products of their own. And the notion that they
might want to steal the thunder of independent
brands isn’t a flawed one. After all, as functional
sodas moved into the mainstream, what did they
launch? Diet Pepsi Maxx and Diet Coke Plus.
It makes the nutritional sell tough for some
of these guys, to be sure. What’s an independent operator to do? How about go both
high-end and enhanced? That’s something that
both Hank’s and Snow are giving a shot, taking
new flavors and nutrition, mixing them up, and
putting them out there. If nothing else, it adds
a few more vitamins to your shelf set. And then
there’s Health Cola.
“We’re in the healthy category in a way that
they used to be,” says Alejandro Lacea, brand
manager of Health Cola. “No phosphoric acid,
natural cane sugar It’s for what we don’t have.”
BRAND NEWS
Jones Soda
Jones Soda Co. has announced the launch of
its personalized soda, myJones, at Wal-Mart
Photo Centers nationwide. By the end of
September all 3,400 photo centers will be
complete and Wal-Mart consumers can upload their favorite photo, type a personalized
message on the label and order a six-pack
of myJones at United States based Wal-Mart
stores. Jones Soda is recognized and awarded
for its unique labeling that features images
generated and submitted by its customers.
MyJones will be available in six flavors:
Green Apple, Root Beer, Blue Bubblegum,
FuFu Berry, Cream Soda and Sugar-Free
Black Cherry. The custom myJones order
can be picked up at the store by the WalMart customer two to three weeks after
the order is placed.
Reed’s
Reed’s Inc. has launched an all-natural
diet cola, Virgil’s Diet Real Cola. The new
flavor is the signature addition to the Virgil’s
portfolio of diet, including Virgil’s Diet Root
Beer, Virgil’s Diet Cream, Black Cherry Diet
Cream and now, Diet Real Cola. Virgil’s Diet
Real Cola is caffeine-free and gluten free,
and contains no preservatives or artificial
ingredients. Sweetened with Stevia and Xylitol, all-natural sweeteners, Virgil’s Diet Real
Cola expands upon Virgil’s Cola, which was
successfully introduced within the mainstream marketplace in March of 2008.
Maine Root Handcrafted Beverages
This summer marked the rollout of three
new flavors of Fair Trade Certified Organically sweetened sodas: Lemon Lime,
Mandarin Orange, and Blueberry. Currently, Lemon Lime, Mandarin Orange, and
Blueberry sodas are available for shipment
in loose cases of 24; they will be available in
4-packs the middle of October. Additionally,
Maine Root’s Ginger Beer cases received an
upgrade, and are now available in a stylish
printed mother carton in either loose or 4
pack configuration. Among independents
on board to sell the entire line are North
Country Naturals out of Brattleboro VT,
Atlantic Importing from Framingham, MA.,
Ace Metro Beverage in Long Island, NY, Big
Sky Beverages in CT, Bradley Distributing in
the Midwest, Savannah Distributing in GA,
and Greenling in Austin TX.
Wet Planet
Jolt, continuing to straddle the line between
CSD and energy drink, has tagged itself
as “refreshment energy,” or as they put it,
“good tasting energy.” Jolt Energy is available in 7 delicious flavors. And this year, in
addition to a re-sealable 16 oz. can, Jolt has
launched three new flavors; Wild Grape,
Orange Blast and Passion Fruit. All the flavors contain a generous dose of stimulating
ingredients, including with Taurine, Ginseng,
Guarana, Vitamin B Complex, and Caffeine.
Snow Beverages
Snow is introducing a new line of naturally
flavored sodas that are not only fortified
with vitamins and antioxidants, but also
come in popular flavors like Pure Cola and
Lemon Lime. Snow Naturally Flavored
Vitamin Sodas will be launched at select east
coast retailers in October 2008. Wide scale
regional distribution is set to begin in early
2009 with expectations to expand nationally
soon thereafter. Snow Naturally Flavored
Vitamin Sodas contain no high fructose corn
syrup, no caffeine, no preservatives and no
artificial flavors.
Zevia
Zevia, made with stevia, is an all-natural
sugar-free diet soda “alternative.” Zevia is
made without artificial sweeteners, artificial
colors, and artificial flavors, and also has
no high fructose corn syrup or phosphoric
acid. Zevia launched in late 2007 with three
flavors: Natural Cola, Natural Orange, and
Natural Twist (lemon-lime). In April 2008,
Zevia shipped the latest flavor, Natural Ginger Root Beer. High profile Zevia retailers
across the country include Hannaford Supermarkets, Andronico’s, Bristol Farms, Albertson’s Southern California, QFC (Kroger NW
Division), Haggen-Top Foods, Central Market in Texas, Wegman’s, Ukrop’s, and Earth
Fare. Zevia is available through natural food
distributors UNFI, Nature’s Best, DPI, Tree
of Life, and Steiner Foods.
Dry Soda Co.
For the first time since its inception, DRY
Soda Co. will be unveiling two new flavors
this October: Vanilla Bean and Juniper
Berry. DRY’s new soda additions were created with the guidance of acclaimed chef and
Food & Wine Magazine’s “Best New Chefs
in 2006” Jason Wilson of Seattle’s Crush
Restaurant. At 60 calories per 12-ounce
bottle, DRY Vanilla Bean is aromatic, lightly
sweet and delicate without being creamy.
DRY Juniper Berry has only 55 calories, and
is crisp with a pine essence and high acidity.
As with DRY’s original four flavors, kumquat, lavender, lemongrass and rhubarb, the
two new flavors are all-natural and sweetened with pure cane sugar.
Global Beverage Enterprises
Global Beverage Enterprises has launched
Sweet Blossom, which it claims is America’s
first soda made from flower petals. The soda
is all natural, pasteurized and made from
flower petal extracts. The sodas contain
cane sugar, and the line will be featured
on The Food Network’s Unwrapped with
Marc Summers in December 2008. Another
extension of the line is the company’s “Mr.
Q-Cumber” soda. The company is using the
trademark “Stop and Taste the Flowers” in
its advertisements.
High Voltage Beverages LLC
High Voltage Beverages LLC, manufacturer,
distributor, and marketer of Volt High Energy Electrolyte Replacement Carbonated Soft
Drinks and Sports Drinks, has appointed
Cascadia Consulting Group’s Bill Sipper as
President. Sipper has held key management
positions with brands like Evian, Nantucket
Nectars, Fresh Samantha, and Naked Juice.
Volt Carbonated Soft Drinks targets the Mt.
Dew consumer with a high caffeine, ginseng,
guarana, and taurine enhanced soda with
a campaign which states, “When Dew
Don’t Do it.”
Ardea Beverage Comapny
Ardea, the creators of Nutrisoda, has announced an expansion into the West Coast
market with its line of nutrient-enhanced,
sparkling beverages. The company has entered into partnerships with several California distributors, allowing retailers throughout the state to meet the needs of consumers
searching for healthy, sugar-free beverage
alternatives. In Southern California, leading
distributors John Lenore Company, GBL
Santa Barbara Distributing and Real Soda in
Real Bottles are supplying Nutrisoda to the
market. In Northern California, Nutrisoda
will be distributed through Superior Products and Bay Area Distributing.
BRAND NEWS: BOUTIQUE CSDs
TeaZazz
TeaZazz Sparkling Tea announced it has
partnered with 5 Star Beverage Distribution
Inc. and Underdog Distributors to bring
TeaZazz Sparkling Tea beverages to San
Diego County and Clark County. Launched
in 2006 in Valencia, California by Tamara
Saretsky and Delicia Soliman, TeaZazz Sparkling Tea offers the best of both worlds—a
hybrid drink, that bridges the gap between
the “fun” of soft drinks and the “good for
you” elements of tea.
Cricket Cola
Cricket Natural Beverages has added 3 new
flavors to their green tea enhanced sparkling
beverages lineup – Pomegranate Raspberry,
Mandarin and White Peach. Complete with
2 cups of green tea in every bottle the entire
Cricket line is high in antioxidants, delivers a mellow caffeine lift without the jitters,
and has a refreshingly delicious taste with
mainstream consumer appeal. Cricket now
has national distribution in the natural and
specialty food channels and a national broker network to support distribution. Cricket
has secured placement in many high profile
retail accounts including Whole Foods, HEB,
The Fresh Market, Jewel Osco and Giant
Eagle. Cricket’s refreshed packaging won Design USA best packaging award and gained
Cricket recognition as a “fashion brand” in
the beverage industry.
Carolina Beverage Corp.
Cheerwine is popping up this year in new
cities across the nation with a completely
new look and feel. The iconic 91-year-old
brand has unveiled new branding, packaging
and an extensive marketing campaign to support its aggressive distribution plan. Recent
launches in Atlanta and Modesto, Calif., will
be followed soon with rollouts in additional
mid-Atlantic and west coast markets before
the end of the year. Cheerwine is one of the
oldest family-owned soft drink companies in
the country. Carolina Beverage Corporation
– which manufactures Cheerwine – has also
hired top marketing and design firms to create the new identity for the brand which will
roll out on all packaging, point of sale, truck
backs, and bought media starting in July.
Medicus
Medicus is introducing Sparka, a line of
all-natural zero-calorie sparkling beverages. Sparka contains no sugar, no artificial
sweeteners, and no calories. Sparka Natural
Drinks are flavored with the herb stevia,
which makes it a healthy and satisfying
drink for anyone concerned about the health
implications of drinking the loads of sugar
or artificial sweeteners most other beverages
contain. Sparka is also enhanced with calcium and vitamin C. Sparka comes in several
flavors, including Orange, Lemonade, Peach
and Raspberry.
GuS
Grown-up Soda completed its summer
marketing blitz with its new 5.75 oz. samplesize cans of Dry Cranberry Lime. Cans were
distributed in its Northeast and West Coast
markets via street sampling, events and gift
bags. The 2008 launch of new Dry Cola was
a success as placements were gained among
leading distributors and accounts. Containing real cola nut extract and cane sugar, with
only 95 calories per 12 oz., GuS Dry Cola
was selected among Good Morning America’s “Best 10 Products” from the 180,000
products offered at the Summer Fancy Food
Show. New GuS distributors include DSD
network Real Soda in Real Bottles of CA,
Marz Beverage of NJ and UNFI/Rainbow
Foods. Retail expansion continues with
national placement in 240 SuperTarget
stores and the Rocky Mountain Region
of Whole Foods.
Steaz
Steaz is going back to school with a big push
this fall into colleges and universities across
the US. The brand, which includes leading
USDA Certified Organic and Fair Trade
Certified Steaz Sparkling Green Teas, Steaz
Energy, and new Steaz Organic Iced Teaz has
gained distribution in over 40 major schools
ranging from Princeton to Penn State, UCLA
to Vanderbilt, filling the growing demand by
the college community for healthy organic
beverage options.
Fentimans
Fentimans North America will begin producing UK-based Fentimans Botanically Brewed
Beverages in an historic Pennsylvania brewery in November. It continues Fentimans’
time-honored (Est. 1905) recipes employing ginger root, herbs, juices and natural
flavours, fermented and brewed over seven
days to bring out natures goodness. Traditional sodas including Ginger Beer, Curiosity
Cola, Victorian Lemonade, Mandarin &
Seville Orange Jigger, Dandelion & Burdock
and Shandy will now be offered in a new
BRAND NEWS: BOUTIQUE CSDs
4-pack (6/4-pk case), enhancing specialty
retail distribution. Fentimans’ mixer line of
Tonic Water, Ginger Beer and Curiosity Cola
is offered in 125 ml bottles (24-loose tray)
giving the brand further appeal in bars, restaurants and hotels. Wholesaler and retailer
inquiries are welcome.
Red Bull
Red Bull Cola was unveiled in Las Vegas in
June 2008 and is rolling into markets across
the country starting in October with full
national distribution expected in Q1 2009.
Red Bull Cola is available in 8.4 oz. cans in
bars, restaurants and nightclubs. In grocery
and convenience stores, Red Bull Cola is
available in 12 oz. cans and 12 oz. 4-packs.
Mosse Beverage Industries
Mosse Beverage Industries introduced its
line of Flavored Sparkling Water Beverages
to New York City in June of 2007 including White Grape, Black Grape and Coffee
flavors. In May of 2008 they introduced a
new package design and a new flavor – Black
Cherry. Mosse can now be found in Whole
Foods stores in New York and New Jersey,
as well as Central Markets in Texas and
independent retailers in 11 other states.
Mosse Beverage Industries is currently
in negotiations to take the brand to
national distribution.
Thomas Kemper Soda
Thomas Kemper Cane Sugar Soda will be
available in single bottles to retailers. Its
CSDs are sweetened with pure cane sugar
and an added touch of pure Northwest
honey. Thomas Kemper’s Cane Sugar Soda
flavors are complex and rich. Drink slowly
and savor the taste. Thomas Kemper’s Cane
Sugar Soda collection comes in five familyfriendly flavors: Root Beer, Vanilla
Cream, Orange Cream, Ginger Ale
>`Ê>VÊ
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Nature makes Snow pure, we add the vitamins.
For more information: Call 212.353.3270
or email [email protected]
CATEGORY REPORT: RTD JUICE
CAN SUPERPREMIUM
JUICES KEEP
GROWING?
BY JEFFREY KLINEMAN
There’s a real economic moment here for the juice category. For
the past five years, the most important growth driver for juices has
lay in the produce aisle, where high-end, super-premium juices like
Odwalla, Naked, Pom, and Bolthouse have led a fresh, health-centered charge into the American shopping cart.
As a corollary to that growth, regular juices and juice drinks have
been in decline. Nantucket Nectars, Snapple, even Tropicana and
Minute Maid have been receding, first buffeted by the non-carb
Atkins diet, then by citrus-crop decimating storms, finally by a rising
tide of variety that has stolen their thunder.
Over the past five years, those high-end juices have grown at about
15 percent annually, while regular fruit juices have actually dropped
a percentage point or two each year. The excitement from the health
benefits, vibrant flavors and freshness, interesting new packaging and
blended functionalities that include protein and vitamins led consumers to swallow these drinks higher price points. Shopping patterns
played into those drinks’ increasing popularity, as supermarket shoppers, in particular, continued to spend more time in the produce-rich
store perimeter, rather than head for the center store, home of shelfstable products like Welch’s.
But this year, that growth might be subjected to downward financial pressure. Suddenly, the idea of a $4 12 oz. juice might not be so
appealing to the coupon-clipping consumer. And those nutritional
benefits touted by so many of those super-premium products are being replicated in other food and drink categories.
Nevertheless, the strongest selling point of that category overall,
its seemingly endless novelty and variety, seems to be holding steady.
With ingredients like starfruit, coffeeberry, mangosteen, aloe, and
many others, there’s a powerful, ongoing influx of new products onto
those chilled shelves on the supermarket perimeter. Who knows?
Perhaps the phrase “at least you still have your health” will continue
to justify shelling out to maintain it. UÊ
BRAND NEWS
Biotta
Biotta of Switzerland has announced the
formation of Biotta, Inc., a wholly-owned
subsidiary, to market and sell its line of organic vegetable and fruit juices in the United
States. Biotta committed itself to organic
production in 1951, many years before the
enthusiasm for organic food really took
hold. Since that time, Biotta has harvested
its fruits and vegetables from healthy, living
soil. The juices are 100% pure, contain no
artificial additives and are never made from
concentrates. The product line currently includes the following, with new line additions
soon to be introduced for 2009: Beetroot,
Bilberry, Breuss (Vegetable Blend), Carrot,
Celery, Sauerkraut and Vegetable Cocktail.
Fuze
FUZE Beverage will join the Susan G. Komen Race for the Cure Series for 2008 and
2009 as a National Series Sponsor and bring
a healthy ‘infuzion’ of positive energy to the
race series and the breast cancer movement.
As part of that sponsorship, FUZE’s mission
of healthy hydration continues with the
launch of FUZE Empower. The drink is a
Pomegranate Acai Berry flavored bevearage
and will be available in 18.5 fl oz. and 16.9
fl oz. pink plastic bottles. Fuze is proud to
donate $650,000 to Susan G Komen for the
Cure through this program.
O.N.E.
O.N.E. has launched a pair of new juices,
Coffee Berry and Cashew Fruit, both of
which are available in 11 oz. Tetra Paks.
O.N.E. Coffee Berry is 100 percent natural
and contains a similar amount of caffeine as
one cup of green tea. It also is sweet thanks
to a blend of fresh strawberry and Acerola
purees. O.N.E. Coffee Berry retains the nutritional benefits lost in regular coffee when
the beans are roasted, namely phenolic acids.
Additionally, O.N.E. Cashew Fruit is a 100
percent natural, nutritional beverage with a
fresh, light, and naturally sweet tropical flavor. Made from the fruit of the cashew plant,
not the nut, this Brazilian fruit is naturally
fat-free and packed with Vitamin C. O.N.E.
Cashew Fruit also contains important nutrients including beta-carotene, Vitamins B1,
B2, & B3, calcium, and iron.
Old Orchard Brands
Fruit 66
Old Orchard Brands has introduced an interactive “Fit For Your Lifestyle” campaign
for its top-selling Healthy Balance line of
low-sugar fruit juice cocktails. A completely
redesigned label brings calorie, carb and sugar content information prominently to the
front of the bottle and an interactive healthfocused website (www.healthybalance.com)
encourages dialog with a registered dietician
as well as peer-to-peer discussions among
those with sugar restrictive diets. The effort
is supported by a national ad campaign and
a robust sampling program at more than 200
Juvenile Diabetes “Walk for a Cure” events
across the U.S. this fall.
Developed in consultation with school
nutritionists and foodservice directors
from throughout the country, Fruit 66 is a
sparkling juice with fewer calories, more
nutrients and just as many bubbles and taste
as traditional cafeteria juices and soft drinks.
Fruit 66 is a patron sponsor of the School
Nutrition Association and donates a portion of its proceeds to the School Nutrition
Foundation to improve children’s health and
nutrition. An 8 oz. can of Fruit 66 contains
95 calories. It also boasts 100 percent of the
RDA of Vitamin C and 10 percent of the
RDA of Calcium, Vitamin A and Folates.
Fruit 66 is available four flavors – Kiwi
Strawberry, Fruit Punch, Orange Tangerine
and Apple Berry.
Star Power
Star Power is the first ever pure, premium
starfruit juice. In a new initiative from the
founders, Star Power has started giving
complimentary cases and sponsoring events
to good charities. For a recent benefit, all
proceeds from cocktails went to supporting
the Orphans’ Fund of 9/11. Star Power is
now available at many of the more expensive
retailers in and around NYC.
ALO
ALO has announced the addition of two
new flavors to its line of alternative drink
blends infused with real aloe vera pulp. ALO
Enliven crams all the good stuff from 12
fruits and vegetables with real aloe vera pulp
for an energizing, healthy drink alternative.
ALO Elated combines aloe vera with brewed
olive leaf tea, which is rich in anti-oxidants
and a good source of energy, to provide a
unique, superior drink alternative for the
green tea crowd. ALO drinks are available
in a 500mL as well as a 1.5L bottle and
are shelf stable.
Essential Beverages
Essential Beverages makes Alo Juice into
seven flavors: Mango, Pomegranate, Kiwi,
Grape, Cherry, Mixfruits, and Original.
It has real bits of Aloe Vera and no added
sugar. Most people know about Aloe Vera
for its remarkable health-enhancing properties for external application to the skin, but
Aloe Vera is also packed with Vitamins,
Minerals, Enzymes, and Amino Acids to
boost energy and maintain proper immune
function while supporting a healthy
digestive system.
Glow Mama
Glow Mama is leading the new maternity
nutrition category with a ready-to-drink
natural kiwi juice. Fortified with folic
acid and other essential pre and post natal
vitamins, Glow Mama is approved by the
American Pregnancy Association for the
important job of hydrating new moms and
moms-to-be. With four grams of soluble
fiber per 12 oz. bottle and only 70 calories,
Glow Mama uses kiwifruit juice concentrate
imported from New Zealand. Glow Mama is
launching in West Coast natural grocery and
maternity stores.
Firefly Tonics
Firefly has created a tonic to raise the spirits.
“Recharge” combines antioxidant-packed
juices with herbal extracts to boost the
body’s credit-rating and raise the spirits. It’s
refreshing, delicious, and comes in a swanky
silver bottle – because “life’s all about silver
linings.” Recharge contains fruit juices
(white grape, pomegranate, plum, blood
orange, rosehip), with botanical extracts
and natural flavourings. No added sugar,
nothing artificial.
Simply Orange
Simply Orange Juice Company has launched
two new premium orange juice blends,
Simply Orange with Mango and Simply
Orange with Pineapple. Launched August
18, both are packaged in the 59 oz. clear
Simply carafe, and are available in supermarkets nationwide. Simply Orange with
Mango combines orange juice with the
unique sweetness of mango, while Simply
Orange with Pineapple couples orange juice
BRAND NEWS: RTD JUICE
with luscious pineapple. The juices are never
concentrated, never sweetened, and made
with only natural ingredients.
NBI Juiceworks
NBI Juiceworks’ Drenchers has a new all
natural 100 percent super juice, Heart
Healthy. Heart Healthy has no fat, no cholesterol, no sugar or preservatives added and
is fortified with key vitamins and minerals
specifically designed for heart health. Each
eight ounce serving of Heart Healthy has
only 120 calories and contains two servings
of fruits and vegetables. Available in shelf
stable 64 oz. sizes, Drenchers Heart Healthy
all natural 100 percent super juice contains
Bodyguard, a fortification package of 15plus essential vitamins, nutrients, amino
acids, electrolytes and herbs.
Sence
SENCE Rare European Rose Nectar has
launched into several international markets
as well as a great many more outlets in
the USA. Now found throughout Canada,
France, Japan, Taiwan, Korea, Poland,
Scandinavia, Australia and New Zealand,
SENCE will expand its operations further
into Central and South America, China,
Singapore, Hong Kong and Macau by the
end of Q4 2009.
Envy
Envy is an all-natural 100 percent premium
fruit juice packed with a little fizz. Each
can provides vitamins A,C,D and Calcium,
and is all-natural. Envy is available now is
a lineup of five flavors including Acai Berry,
Fuji Apple, Fruit Punch, Tropical Mango,
and Strawberry. These could very well be the
best tasting alternative to sodas and energy
drinks yet!
Uncle Matt’s
Uncle Matt’s Fresh, the organic produce
“arm” of Uncle Matt’s Organic, has announced that the number of organic citrus
growers and the amount of acreage dedicated to organic citrus that their company
manages, is rising at a steady and healthy
pace. The company is growing organic oranges, tangerines and grapefruit for its own
juice brand, Uncle Matt’s Organic, along
with providing organic fresh citrus for Uncle
Matt’s Fresh.
ing artificial. It also comes in a convenient,
reusable, spill-proof sippy-top container. It
has BPA-free packaging, organic and reduced
sugar attributes, and nutritional value and
convenience. First Juice is currently available in two flavors: Apple+Carrot and
Banana+Carrot.
Zola Acai
Zola Açaí is having a record-breaking year,
selling more in the first six months of 2008
than in all of 2007. Earlier this year, Zola introduced its line of Açaí Superfruit Juices in
new re-sealable and recyclable bottles. Since
the introduction of the new bottle, Zola has
been authorized in 10,000 stores nationwide.
Zola’s authentic Brazilian recipe uses 100
percent unfiltered pulp from hand-harvested
organic Açaí berries to deliver superior taste,
while use of proprietary processing technology ensures maximum retention of nutrients.
Skylarhaley
Skylarhaley has unveiled the newest flavor in
its award winning line of essn beverages—
sparkling mango and passion fruit juice. A
blend of sweet and tropical essence, the 100
percent juice drink is packed with natural
flavor and contains no preservatives, additives, or artificial sweeteners. The juice
fuses the taste of ripened mango and the
tartness of passion fruit. essn is the nation’s
first all-natural sparkling juice beverage that
combines the pure essence of exotic fruits
with a light effervescence.
Embodi
Embodi, the first natural, non-alcoholic juice
blend beverage to provide the health benefits
of red wine, becomes available nationwide
in the natural and specialty grocery channels
this month. Originally introduced in Whole
Foods Market stores nationally in June
2008, Embodi has expanded its distribution
and will also be available in Mrs. Green’s
Natural Market, Fairway Market, and Westerly Natural Market amongst many other
natural and specialty grocery stores. Embodi
beverages are made from a specially developed grape pomace extract made from the
skins, seeds, and stems of red wine grapes.
This extract is combined with organic juices
and provides Embodi with the full-spectrum
of red wine’s antioxidants – and resulting
health benefits – without the side effects
of alcohol.
First Juice
First Juice organic fruit and vegetable juice
beverage is the first juice for toddlers that
is significantly lower in sugar and calories
than traditional juice offerings, with noth42.BEVERAGESPECTRUM.OCT.08
Orchid Island
Cook’s Illustrated, the nation’s prestigious
publication dedicated to evaluating cooking
products, recently completed a thorough
taste test of five nationally recognized brands
and one family owned brand of orange juice
against freshly squeezed juice made from
oranges in its test kitchen. The results –
Natalie’s Orchid Island Juice Company’s
Gourmet Pasteurized Orange Juice beat the
competition hands down and was rated
the best tasting. The magazine conducted
taste tests and independent laboratory tests
to judge the juice closest to fresh squeezed
orange juice. Cook’s Illustrated testers calculated, buying and squeezing oranges at home
made the cost 23 cents per ounce – about
three times the price of the winning Natalie’s
Orchid Island Juice Company’s juice.
Odwalla
As part of its ongoing commitment to
consumers and to Mother Earth, Odwalla
kicked off a unique partnership this summer
with state parks in select markets across the
country. Through the Odwalla Plant a Tree
program, outdoor enthusiasts were invited
to visit parkvisitor.com and donate trees to
their preferred state. More than 60,000 trees
will be planted through the 2008 program.
Due to its overwhelming success, the Plant a
Tree program will be expanded in 2009.
Genesis
Genesis BOOST has launched a new line
of refrigerated, ready-to-drink superfruit
juices to meet the growing demands from
health conscious consumers everywhere. The
blended exotic fruit juices, which are allnatural, with no preservatives, added sugar
or sweeteners, are made of superfruits grown
on wild-harvested farms in the Amazon
Rainforest, French Polynesia, Southeast Asia
and other pristine regions around the world.
BOOST Superfruit Juices come in a 12 oz.
glass bottle and are available in four blended
varieties: Beauty Boost, Youth Boost, Happy
ÃÌ]Ê>`ÊiÀÊÃÌ°ÊÊU
Sambazon
Sambazon is expanding its award winning
line of single serve Açaí juices by offering
family sized versions of their best selling
skus. The convenient 32 oz. bottles come in
two great tasting flavors: “Original Blend”
(Açaí lightly sweetened with pure agave)
and “Antioxidant Trinity” (Açaí with
blueberry and pomegranate for a triple
antioxidant boost).
C on c
eptualization to Realization
SF
SOVEREIGN FLAVORS
At Sovereign Flavors, “Energizing” the new age beverage category
is crucial for our beverage partners. From ‘Conceptualization to
Realization’, Sovereign Flavors is with you every step of the way.
With over 40 years of beverage application experience to extract upon,
our beverage staff is poised to develop your ‘Energy’ drink that meets your
specific requirements. Sovereign Flavors understands that finding great
flavor solutions and speed of response is critical-and we pledge
to be there from start to finish. It’s our promise.
Our Sovereign Promise.
phone. 714-437-1996
www.sovereignflavors.net
CATEGORY REPORT: DIET ENERGY
THERE’S
ALWAYS DIET
BY JEFFREY KLINEMAN
BRAND NEWS
HER Enterprises, Inc.
Her - an energy drink with women in mind - is
now available in 12-packs and 4-packs, and has
gained distribution at Kowalski stores in Minnesota and Wisconsin.
We’re not all Michael Phelps.
The CL-ONE Corporation
CL-ONE recently added the 8.3 oz. ‘Sugar Free’
to its line-up, and the product will be available
in 15 states including California, New Jersey
and Minnesota.
The Healthy Beverage Company
Promoted this summer with bicycle and skateboard giveaways at Whole Foods, Diet Steaz is
both organic and fair trade certified.
Hoborama LLC
BAWLS Guarana is now the official energy
drink of the National Bicycle League and the
American Bicycle Association. This summer,
BAWLS launched a BAWLS BMX Contest. Five
percent of the proceeds of every BMX can sold
will be donated to the NBL and to the ABA to
support the building of new BMX tracks and
racer sponsorship programs.
Elite FX
Celsius recently launched Green Tea Calorie
Burners. Celsius Green Tea Peach Mango and
Celsius Green Tea Raspberry Acai offer the
same benefits as sparkling Celsius. Each can
burns up to 100 calories or more by raising
metabolism over a 3-hour period, generating
increased energy and alertness.
Source Beverages
Sugar-Free BURN has been selling extremely
well online, on par with original BURN,
providing customers outside of the brand’s
distribution areas with an easy and
convenient way to get home-delivery.
More info at www.burnenergydrink.com.
Whey UP
WheyUP, the Original Protein Drink with Energy, announced that the company is introducing a new flavor, Grape Punch.
Slump Buster Energy
Slump Buster recently launched their sugar free
variant, Youk’s Signature with an image of Red
Sox first baseman Kevin Youkilis on the front of
the can. With zero carbs, MBSB Holdings pledges to donate a portion of proceeds to Kevin
Youkilis Hits For Kids charitable organization.
PHOTO BY SPEEDO
While a quick glance at the
YOUR
lack of Speedo is, possibly, the
PHOTO
leading indicator of that parHERE
ticular insight, on paper, one
thing we occasionally do have
in common with the Olympic
medalist is our Olympian
energy drink consumption.
While we don’t do it every day,
for sure, on occasion, we’ve all
consumed about 1,000 calories
of energy drinks. (Although
Phelps did it – gasp –
twice a day).
Still, it doesn’t necessarily
take a couple of Big Gulps of
Venom or Rockstar to cross into
Phelps territory. With many 16-ouncers coming in near 350 or
400 calories, it isn’t too much of a stretch to imagine the gold
medalist – and his now-famous 12,000-calorie per day training
diet – getting matched sip for sip by some of the country’s most
average desk jockeys.
Of course, those desk jockeys aren’t really hitting the lanes as
much as Phelps, and that probably accounts for the continued
popularity and growth of the diet energy subcategory. We all need
the energy, but the dedicated energy drink consumer is coming to
understand that their fuel of choice need not carry the extra calories.
The overall energy category remains strong – up 29 percent last
year, according to Beverage Marketing Corp. – but with obesity concerns a constant drumbeat, reduced-calorie products may be the key
to keeping things growing. While most new brands are not coming
to market without a zero-calorie, artificially sweetened sub-brand,
there’s more going on than just the usual aspartame/Ace K mix.
Monster and Rockstar are trying to keep calories down by throwing
artificial sweeteners into their full-calorie energy juice blends. The
majority of energy shots are also made without sugar, the main calorie culprit, and those that aren’t are so small that the count is well
under 100. That indicates that reduced-calorie is growing in lockstep
with zero calorie. Witness that recently the newly-formed Dr Pepper
Snapple Group added a stake in Hydrive, an “energy water” that has
minimal calories but still features some sugar in the mix.
So if there’s no clear winner in the race to find the perfect diet
energy drink, remember – there’s always going to be a diet (or, at 17
percent of the category, a diet or TWO) in the mix.
Unless you’re training for, like, 19 big races. U
XO-2 Energy Beverage Corp.
The new, reformulated XO-2 boasts a 20-24
month shelf life. XO is best consumed at room
temperature giving consumers choices of drier,
sweeter and more aromatic blends.
Fluid Motion Beverage Inc.
Fluid Motion Beverage launched in August
a new sugar-free line extension to its Vixen
Energy brand: Vixen Fox Lemonade. The Vixen
Fox Lemonade is a pink sparkling lemonade
sweetened with Splenda (Sucralose) and Ace K.
Fuze Beverage, LLC
Available in Sugar-free 16oz cans, NOS can be
found nationally in speed shops, grocery and
convenience stores. NOS combines ingredients
like Taurine, Caffeine and Ginseng to ensure
extreme performance.
Ardea Beverage
Nutrisoda recently released five of their most
popular varieties - including Energize in 12 oz.
glass bottles. With Taurine to help recharge,
Energize is packed with 10 mg of the nutrient
CoQ10 and the amino acids L-Tyrosine and
L-Carnitine, herbs such as Ginseng and Guarana seed extract combined with B-Vitamins,
and Magnesium.
Power Trip Beverages, Inc.
Power Trip “0” diet energy beverage boasts
great taste and no sugar, no HFCS and no carbs.
Wet Planet Beverages
Jolt Ultra: Sugar Free is now available in 16 oz.
resealable aluminum cap cans.
Ronin, LLC
Ronin Positive Liquid Synergy, the sugar free
alternative to original Ronin, now enjoys direct
store distribution in Wisconsin, Minnesota
in Northern Illinois as that company has 350
trucks at its disposal.
Nutrition Resource Services, Inc.
Krank’d 7-in-1 Body Fuel will be available in
16.9 oz. plastic bottles with a new look. At 37
calories per serving, Krank’d will initially be
available in three flavors in the plastic, followed
with the production of other popular flavors
and a unique new line of teas.
Brain-Twist, Inc.
Slap had a heavy summer marketing & promotional calendar: we including radio spots during
Mets games, and sponsorship and sampling at
many NY area concerts; handball tournaments,
Summerball basketball tournaments, the LI
Balloon Festival and Village Voice Siren
Musical festival.
CONVENTION SCRAPBOOK
NACS
BY JEFFREY KLINEMAN
The 2008 NACS
Show took place at
McCormick Place in
Chicago from October
4-7, showcasing over
100 beverage companies and their brands.
Energy Shots, Enhanced
Waters, and a great
many supplement/drink
hybrids were all wellrepresented.
BevNET’s intrepid
product-spotting
team picked up the
following new
product developments:
UÊÊiÀ}ÞÊ-ÌÃÊvÀÊ
All Day Energy;
AMP; Alpha Pharmaceuticals; Intocell;
Met-RX; Purple Stuff;
AriZona; Shotz and
NR-GIZE
UÊÊ`ÃÊiÛiÀ>}iÃÊvÀÊ
In Zone and ZizZazz
UÊÊ iÜÊ
vviiÃÊ>`Ê/i>ÃÊ
from Bustelo Cool,
iCafe, and Xing Tea
UÊÊiÀ}ÞÊÀÃÊvÀÊ
Body Well Nutrition, Go Fast, Ole,
Redneck Punch and
Sex Drive
UÊÊ*ÜìÀÃÊ>`ÊââÌ>LÃÊ
from Ephrine Plus
and Peptime Energy,
Guava Rush, and
Wake-Up Call
UÊÊÕViÃÊvÀÊÃÃiÌ>Ê
Aloe Juice, Nu South,
UÊÊ-«ÀÌÃÊÀÃÊvÀÊ
H.A.R.D. Nutrition,
H7, Labrada, S-250,
Sport Wave, and VPX
Sports
UÊÊ
-ÃÊvÀÊi>ÌÊ
Cola and Jones Soda
UÊÊ7>ÌiÀÃÊ>`ÊÕVÌ
al Waters from Goya
Foods, Jana Water,
Sparkletts, VBlast and
Vitamin + Fiber Water
Greg Wilson and Co.
representin' for Redlin,e.
cles!
it and get mus
,
5-Hou
standing sor'sloBrandon Bohland,
ng he had sore
feet.
Labrada Nutrition, fit as heck!
e
Richard Pearc
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Muscle Milk:
Mark Slepak
Give's Ben Lewis and all.
ir
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PROMO PARADE
DOS EQUIS LAUNCHES
VARIETY SHOW TOUR
CROWN ENCOURAGES
PAIRING FOOD WITH BEER
Dos Equis launched “The Most Interesting
Show in the World Tour,” an upscale, offbeat
variety show and tour inspired by the awardwinning The Most Interesting Man in the
World campaign. The MISW tour features
performers from around the world, including
aerial performers, Japanese robotic dancers,
acrobats, fire jugglers, Russian dancers and
French burlesque singers, to create a show
experience worthy of its name.
The MISW made its first tour stop on Oct.
8 in San Diego and the show’s dazzling array
of performers will travel to 14 cities across
the country, including Los Angeles, Chicago
and Austin. The incomparable Jim Rose,
famed emcee of the “The Jim Rose Circus”
sideshow and a man well-known for his own
eccentricities, will serve as the host.
The MISW is written and produced by
Randy Weiner and New York-based Weiner
Entertainment Group. Weiner, creator of
“The Donkey Show” and “Beacher’s Madhouse,” is a managing partner of The Box,
one of New York City’s hottest performance
venues.
The MISW tour will be supported by national and local print, radio, as well as regional
in-market promotions.
Crown Imports’ “Beer Kitchen” program
runs in off-premise accounts in September
and October 2008, and draws on the popular trend of pairing beer with food.
“Beer Kitchen” features “The Art of
Cooking and Pairing Food With Beer” recipe
booklet, which offers recipes and beer pairing ideas that complement the Crown Imports portfolio of premium imported beers.
To supplement to program, the Crown
portfolio has teamed up with food partners
to offer coupons and encourage incremental
grocery sales.
“Beer Kitchen” easel cards with booklet
holder are available to attract consumers to
Crown Imports Beer displays.
FANS TO CHOOSE THE NEXT ST. PAULI GIRL
Fans will have their say in choosing the
St. Pauli Girl for the first time ever. St.
Pauli Girl, the No. 2 selling German
beer in the U.S., has partnered with
Maxim Magazine to give more access to
the St. Pauli Girl selection process, allowing fans to vote for the new German
barmaid spokesmodel.
Fans will choose from four finalists
who each bring the St. Pauli Girl barmaid to life in her own way, online at
maxim.com/stpauligirl. This marks the
first time in the 31-year history of the
St. Pauli Girl spokesmodel that the beer
has opened the selection process to the
public and will let fans actually select
the St. Pauli Girl.
Each of the finalists participated in a
preliminary photo shoot and fans will
judge each finalist on her test shots and
how well each represents the spirit of
St. Pauli Girl as the next spokesmodel.
Voting will run through November 10,
2008 and the new St. Pauli Girl spokesmodel will be announced in January
2009.
Beverage Spectrum covers new beverage products, as well as the
marketing, packaging, and ingredient innovation trends behind those
products. From the largest beverage marketers to regional distributors
to the smallest corner stores, the beverage business is at its core about
selling drinks. Beverage Spectrum is the guide for those who both sell
them and create them.
J U LY – A U G U S T 2 0 0 8
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3. What is your primary business
type? (check only one)
A
Convenience Store
B
Supermarket/Grocery
C
Club/Warehouse
D
Mass Merchandiser/Dollar
E
Drug Store
F
Liquor Store
G
Wine Store
H
Wholesaler/Distributor/Broker
I
Beverage Only/Beverage Specialty Store
J
Beverage Company
K
Supplier Company
L
Services Company
X
Other (please describe)
4. What is your title? (check only one)
A
Owner/President/CEO/COO/VP/Director
B
Buyer
C
Bottled Water
D
Regional/District Manager
E
Store Manager/Supervisor
X
Other (please describe)
5. Do the locations that you are
responsible for sell: (check all that apply)
A
Carbonated soft drinks
B
Non-carbonated soft drinks
C
Bottled water
D
Beer
E
Wine
F
Liquor
PROMO PARADE
HOLIDAY
PROMOTIONS
BEAM GIFTS
Beam Global Spirits & Wine, Inc. offers consumers gift ideas and recipes this
upcoming holiday season with off-premise
programming that includes holiday-themed
packaging and point-of-sale displays. Festive
holiday packaging, recipes and point-of-sale
materials help make the holiday entertaining
and gifting season easier for legal purchase
age consumers.
COURVOISIER COGNAC is offering a Courvoisier XO Imperial gift set, which includes
a 750 ml bottle with a backgammon set
enclosed in a collector’s wooden box. 750
ml bottles of Courvoisier VS comes with two
stem-less Courvoisier-branded glasses and
recipes on the back of the gift set. Finally
750 ml bottles of Courvoisier VSOP come
packaged with a Courvoisier-branded shaker.
AMSTEL LIGHT (AND TURKEYS)
Amstel Light announced a new Thanksgiving program called “Your
Holiday, Your Twist” that offers consumers and retailers solutions
and opportunities around the festive holiday.
The brand is offering a tiered Mail-in Rebate (MIR) (where legal)
to consumers at grocery, drug and retail outlets during the month of
November as consumers are stocking up for Thanksgiving. Consumers will be offered a MIR with the purchase of flowers and/or turkey
and 12-packs of Amstel Light. MIR tear pads will be available on
in-section and out-of-section displays and will include instructions
along with recipes including fried turkey, couscous stuffing and
praline pumpkin pie to help consumers put a personal twist on the
standard holiday fare. Amstel Light flower wrap bags will also be
available to help consumers dress up their floral gifts.
To help support the execution of the Amstel Light “Your Twist,
Your Holiday” Thanksgiving program, Amstel Light is providing a
range of POS and display materials that will make it easy for retailers
to merchandise the program. Mega-display units, case cards, base
wrap, dual-function tuck-ins and decals will be available to get shoppers attention while they peruse the beer aisle, butcher section or
pass through the floral department.
JIM BEAM offers consumers a holiday gift
carton with the purchase of a 750 ml bottle.
KNOB CREEK BOURBON will have a custom
label available during special in-store promotions. Consumers can have a customized
message printed onto this holiday-themed
label.
HORNITOS TEQUILA commemorates the
holidays with a gift pack that includes a 750
ml bottle of Hornitos Reposado Tequila accompanied by a flask and recipes. Hornitos
is also utilizing holiday-themed danglers,
case cards, table tents and napkins.
CANADIAN CLUB treats consumers to a holiday gift carton along with a “Damn Right
Your Dad Drank It” 2009 calendar mail-in
offer, pole topper and display.
MAKER’S MARK BOURBON offers consumers
Maker’s Mark in a holiday-themed gift box.
Point-of-sale displays, including pole toppers, case cards and shelf talkers, round out
holiday programming for the brand.
STARBUCKS LIQUEURS will help consumers
warm up this winter with a 750 ml bottle of
either Starbucks Coffee Liqueur or Starbucks
Cream Liqueur and a Starbucks branded
coffee mug.
ABSINTHE-MINDED HOLIDAY
GRANDE ABSENTE
Grande Absente, Absinthe Originale, is available in a unique holiday
gift pack. The holiday gift pack includes a 750 ml bottle of Grande
Absente, a signature hand crafted and painted cocktail glass and a
one-of-a-kind absinthe spoon. Each glass is painted with the green
fairy amongst the wormwood plant from which Grande Absente is
made.
Grande Absente, Absinthe Originale is now available nationwide
for the retail price of $70.
LUCID
Viridian Spirits LLC, the owners
and importers of Lucid Absinthe Supérieure, released a limited edition
Holiday Gift Set. The set includes
one 750 ml bottle of Lucid, two vintage style absinthe glasses and one
vintage style absinthe spoon.
The holiday gift set will be
available at high end liquor stores
nationwide for a suggested retail
price of $59.99.
Keep beer drinkers trading
up to craft with
®
The best selling craft beer style variety
7 beer styles ranked in
the top 50 craft sku’s.
(1)
Drove 30% of all
craft growth in the
past year.
(1)
Drives more trade
up to craft than any
other brand.
(2)
(1) IRI, Total US, Food
(2) BBC Usage & Attitude Study
© 2008 THE BOSTON BEER COMPANY, BOSTON MA.

Single Serves Grow, Drink Mixes Reach $1 Billion

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