InView - M/A/R/C Research

InView
June 2016
© 2016 by M/A/R/C® Research
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General Industry News

Consumer research finds that taste/flavor is the primary deciding factor for consumers’ preferred
beverage, cited by 72%. Other choice influencers are health and nutrition (21%) and functional
attributes (16%). Hybrid beverages that combine great taste with better-for-you benefits are
increasingly available and popular. The top three categories of non-alcoholic beverages have seen little
growth or even declines. Carbonated soft drinks and juices both recorded 0.1% growth while dairy milk
fell 7%. In contrast, energy drinks grew by 8.9%, and coffee sales increased 8.7%.
(Source: US Official News, March 25, 2016)

In a quest to balance health and hedonism, tea is being mixed with alcoholic
beverages. Examples are Dona Chai’s small batch chai tea paired with blood orange
and bourbon or Owl’s Brew tea, positioned as “tea crafted for cocktails,” matched
with various wines. Black Momma Vodka is infused with natural teas including
green, peach, pomegranate, sour sop, and chai. (Source: Cassandra Daily, March 30, 2016)

Constellation Brands reports it is seeing huge growth in its premium lines including
wines, craft beers, and craft spirits. The report is indicative of an overall shift to premium drinks with
Americans willing to pay more for higher quality beverages. Possible reasons for the increase of
premium drinks include changing tastes and a strong labor market. (Source: Business Insider, April 7, 2016)

The top 10 beverage companies with distribution in the U.S. ranked on 2015 sales are:
The Coca-Cola Co.
Anheuser-Busch InBev
$44, 294 million
$43,064 million
PepsiCo Inc.
$29,636 million
Nestlé SA
$24,477 million
Heineken NV
$23,391 million
Diageo
$22,741 million
Suntory Holdings
$22,410 million
SABMiller PLC
$22,130 million
Starbucks Corp.
$19,200 million
Unilever Group
$19,200 million
The top brands ranked on brand value are Coca-Cola, Pepsi, Red Bull, Johnnie Walker, NesCafé, Bud
Light, Heineken, Moutai, Budweiser, and Sprite. (Source: Beverage Industry, June 9, 2016)
©2016 by M/A/R/C® Research
Page 2  June 2016
Beer/Malt Beverages

Carlsberg created a chocolate bar – a drinking establishment made entirely
out of chocolate – outside of the Old Truman Brewery in London as part of
the ongoing “If Carlsberg Did” campaign. Initially the bar was disguised as a
billboard in the shape of a giant candy bar which was unwrapped to reveal
the bar which was constructed from 1,000 pounds of chocolate. Measuring 5
meters wide by three meters high by two meters deep, the bar included bar
stools and a television and served half-pints of Carlsberg beer in chocolate
glasses. The bar was only in business for half-a-day and the promotion was
tied to the Easter holiday. (Source: Adweek, March 24, 2016)

MillerCoors pulled its planned campaign for Leinenkugel after receiving negative feedback from its
distributors. The “Leinie Side of Life” was criticized for quirky creative that did not highlight the history
and roots of the legendary brewery. The tone of the new ads was seen as too much of a departure from
the brand’s image. (Source: Advertising Age, March 29, 2016)

Anheuser-Busch InBev unveiled a new performance-based incentive plan which includes special stockoptions to 65 senior managers if they succeed in boosting the company’s revenues to $100 billion by
2020. In 2015, AB InBev had $43.6 billion in revenues while its acquisition of SABMiller had $22.1 billion
in sales. To reach $100 billion, AB InBev will have to register annual growth of 8.8%, a significant
increase from the 2.9% CAGR since 2009. Analysts think it will be difficult to achieve this goal with
additional mergers alone. (Source: The Wall Street Journal, April 1, 2016)

Heineken’s popular Beers of Mexico variety pack is back. Each pack includes
equal amounts of Dos Equis Lager, Tecate, Sol, and Dos Equis Azul. Digital
and social media will direct consumers to a content hub with resources for
both consumers and retailers. Variety packs are increasingly popular and
drive more dollars per trip than any other segment. (Source: Multicultural Retail 360,
April 1, 2016)

After increasing 89% in 2013 and 71% in 2014, hard cider sales rose only 10% in 2015 leading some to
theorize the cider craze has peaked. Some of the big brands in the category including Angry Orchard,
Woodchuck, and Johnny Appleseed reported significant declines in the fourth quarter of 2015. Despite
this market decline, Heineken is placing a big bet on Strongbow, the number one cider brand globally,
in the U.S. Strongbow is positioned on traditional cider craft and quality in the hopes of making it
appealing to craft beer drinkers. It has also released new flavors including Cherry Blossom. (Source:
Business Insider, April 2, 2016)

The Saint Louis Brewery, which sells a craft beer under the name Schlafly Beer, installed beacons in
Schlafly beer taps. The TapTalkers send promotional messages to consumers with Schlafly’s mobile app
when they walk into a bar or restaurant. The messages do not offer coupons but provide information
such as a video of the brewmaster highlighting the flavor notes of a particular draft. The app also
provides messages to drink responsibly and links to cab companies if a patron has been at the bar for a
long period of time. (Source: Mobile Strategies 360, April 6, 2016)

After Dos Equis’ spokesperson, The Most Interesting Man in the World, was sent off on a trip to Mars,
the brand is now giving away the character’s earthly possessions with “The Coveted Collection”
promotion. Visitors to the website can enter to win items such as a guitar, a masquerade mask, a
wooden surfboard, a bowling shirt, and Scottish kilt. A flight to Mexico and a chance to live in the
former hacienda of the Most Interesting Man is another prize. (Source: Agency Spy, April 8, 2016)
©2016 by M/A/R/C® Research
Page 3  June 2016

The Las Vegas Convention and Visitors Authority created a custom beer brand #WHHSH, a social media
hashtag for the city’s famous tagline. The black-labeled beer won’t be sold to the public but will be
given away for free at events designed to promote Las Vegas to potential tourists. The beer is brewed
by Tenaya Creek Brewery of Las Vegas, a local craft brewer. (Source: Advertising Age, April 11, 2016)

Tecate Light has become the fastest growing light beer in the U.S. driven
by the brand loyalty of bilingual Hispanics. While the brand has been
promoted at a regional level, its first-ever national campaign, “Born Bold,”
is about to launch. Tecate Light seeks to “amplify modern masculinity”
through the ads. The campaign will feature two well-known Hispanic
athletes, Mexican boxer Canelo Alvarez and soccer referee Felipe Ramos
Rizo. (Source: Adweek, April 11, 2016)

A potentially serious shortage of hops due to hot and dry weather in Europe last summer may mean
increased prices for craft beers. Some varieties of hops have seen 50% increases in price while others
have experienced five-fold escalations or simply are not available. Some popular craft beer styles such
as India Pale Ale use six times the volume of hops as conventional lagers. (Source: New York Post, April 11, 2016)

Smirnoff Ice has tapped 87-year old Instagram sensation Baddie Winkle to promote Smirnoff Ice
Electric, a non-carbonated flavored malt beverage designed for devotees of electronic dance music.
The ads show Ms. Winkle in a metallic blue bodysuit dancing with people half her age and use the
tagline “Keep It Moving.” The drink is packaged in a re-sealable 16-ounce plastic bottle for those who
want to drink while dancing. The lack of carbonation means the drink will not “spurt” after it has been
shaken. Debut flavors are Electric Berry and Electric Mandarin. The drinks are brightly colored and
reminiscent of sports drinks such as Gatorade in appearance. Diageo will dedicate 40% of its media
spend for the brand on responsibility ads including a spot showing Ms. Winkle putting down a Smirnoff
Ice Electric and picking up water instead. (Source: Advertising Age, April 18, 2016)

Over the next six months, Bud Light will begin supporting competitive video game athletes and events.
More than 134 million people watch eSports as organized video game competitions are known. The
eSports market is valued at $747 million and is expected to double to $1.9 billion in three years.
Between May 7 and June 4, eSports fans can vote for their favorite competitors in some of the most
popular games. On June 14, the Bud Light All-Stars will be announced at the Electronic Arts
Entertainment Expo. The winners will be featured in special online gaming content and in a behind-the
scenes eSports series on a video game network. In October, the Bud Light All-Stars will participate in a
three-round elimination tournament. (Source: USA Today, April 25, 2016)

Two actors with an online show about beer and wine have teamed up with
Gun Hill Brewing to create a Broadway-themed craft beer tied to the
musical “Hamilton.” The brew, Rise Up Rye, was developed with
collaboration from “Hamilton” cast members who offered input on what a
Hamilton-themed beer would be. The beer has a widely-appealing and
accessible taste profile and a distinctly colonial American quality as
embodied by the use of rye. Rise Up Rye will be sold in 40 New York bars
for $12 to $15 per bottle. A portion of sales support a charity founded by
Hamilton’s wife that continues to support children in the New York area. (Source: The Wall Street Journal, April 28,
2016)
©2016 by M/A/R/C® Research
Page 4  June 2016

The top brands of craft beer and their market share based on dollar sales in 2015 are Samuel Adams
(12.2% share, sales down -4.7%), Sierra Nevada (9.1% share, sales up 19.9%), New Belgium (6.6% share,
sales up 2%), Shiner (4.8% share, sales up 8.3%), and Lagunitas (4.7% share, sales up 48.7%). The top
reasons craft beer drinkers choose a beer are brand (53%), style (52%), brewery is in-state (26%), and
promotional pricing (26%). Craft brewer drinkers are not very brand loyal – only 12% drink primarily
one brand – as they like to try as many new beers as possible. (Source: Beverage World, May 2016)

Top 10 U.S. beer brands ranked by off-premise sales in 2015:
#
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Brand
Bud Light
Coors Light
Budweiser
Miller Lite
Corona Extra
Michelob Ultra Light
Natural Light
Modelo Especial
Busch Light
Heineken
Sales in millions
$6,130.8
$2,405.1
$2,137.6
$2,012.2
$1,535.9
$1,086.3
$1,069.7
$924.4
$849.4
$728.8
% YoY change
+0.7%
+1.8%
+0.9%
+3.7%
+14.2%
+20.0%
-3.2%
+26.5%
+1.9%
+2.1%
Some notable trends in the overall beer market include a 4.7% increase in overall sales to $33.4 billion,
the continued growth of craft beer (+23.4%), imported beer (+11.7%), and ciders (+15.1%), and the
declining share of light beer which fell from 53.4% in 2014 to 47.4% in 2015. The number of flavored
beers grew 80% last year and 20% of beer drinkers said they consumed it. Leading flavors for beer
include pumpkin, coffee, spicy, and chocolate. (Source: Beverage World, May 2016)

Arizona Beverages, best known as makers of Arizona tea, are building a brewery in New Jersey as part of
its strategy to expand further into alcoholic beverages. Products made at the brewery will include hard
sodas and flavored malt beverages, which may not use the Arizona brand. Arizona and Hornell Brewing
already sell Arnold Palmer Hard, a malt beverage with 5% alcohol volume that combines Arizona tea
and lemonade. (Source: Advertising Age, April 27, 2016)

Budweiser filed a request with the Alcohol and Tobacco Tax and Trade
Bureau to replace the Budweiser name with “America.” Other changes to the
label include adding the phrases “E Pluribus Unum,” “from the redwood
forest to the Gulf stream waters this land was made for you and me,” and
“indivisible since 1776.” Budweiser is known for its patriotic marketing and
limited time packaging. The summer marketing plan would coincide with
the Summer Olympics and Copa America soccer tournament as well as the
Fourth of July holiday. The new label will be used through the November
elections. A supporting advertising campaign, “America is in Your Hands,”
seeks to inspire consumers. The campaign includes television commercials,
billboards, murals, digital content, and retail activations. (Source: Advertising Age, May 6, 2016; Adweek, May 10, 2016)
©2016 by M/A/R/C® Research
Page 5  June 2016

Anheuser-Busch’s Shock Top brand has partnered with Camp No Counselors
on its own summer camp for adults. Camp Shock Top will be held at four
locations just outside of New York, Los Angeles, Miami, and Austin. One
thousand consumers will have a chance to stay in cabins for a weekend and
take part in summer camp activities. The experiential marketing effort ties to
the brand’s motto “Live Life Unfiltered” and its message of not taking
yourself too seriously. Beyond the camps, Shock Top will sponsor other
camp-like events across the country including Shock Top Slip ‘N Slides.
(Source: Adweek, May 9, 2016)

The global beer market is expected to hit $688.4 billion by 2020. The international beer market has
been shaken up by beer’s increasing popularity in China. Four of the 10 top-selling beers worldwide are
Chinese. The top 10 beer brands internationally and their market shares are: Snow (5.4%), Tsingtao
(2.8%), Bud Light (2.5%), Budweiser (2.3%), Skol (2.1%), Yanjing (1.9%), Heineken (1.5%), Harbin (1.5%),
Brahma (1.5%), and Coors Light (1.3%). (Source: Business Insider, May 9, 2016)

To mark American Craft Beer Week, 100 craft brewers teamed up to create one beer using the same
recipe. The beer will come in a can that features the names of 4,490 craft breweries located across the
country. The effort will be supported with display ads, a video, and the #MakeSmallBeerBig social
media tag. (Source: Agency Spy, May 18, 2016)

For the Cannes Film Festival, Stella Artois unveiled four limited-edition beer cans. Together, the cans
tell a story comic-book style. The story includes accidents, twists, a chase, drama, a beautiful woman, a
helicopter, and a kiss at the end. While the story on the cans is told in French, the cans also feature
URLs for various Ukrainian websites which provide more story details and ultimately drive traffic to
Stella Artois Ukraine website. The campaign was created by BBDO Kiev. (Source: Adweek, May 19, 2016)

Saltwater Brewery and its ad agency, We Believers, came up with edible six-pack rings made of grains
left over from the brewing process itself as an alternative to the plastic rings that hold six beer and soda
cans together. The Florida craft beer primarily targets people who love to surf, fish, and other waterbased activities. (Source: Adweek, May 19, 2016)

Budweiser sponsored a virtual reality experience with the NBA’s Cleveland
Cavaliers, the first team in the NBA to build VR technology into its app.
Budweiser is giving cardboard VR headsets away at a Cav’s play-off game
through which fans can view basketball-themed footage. The cardboard
headsets also double as a handy beer carrying case. (Source: Adweek, May 19, 2016)

Budweiser is introducing a non-alcoholic beer in Canada. Budweiser
Prohibition Brew may eventually be offered in the U.S. It is positioned as an ideal choice for a work
lunch or designated drivers as it promises the same taste with 0% alcohol by volume. In the U.S,
Anheuser-Busch currently markets O’Doul’s as its non-alcoholic beer. (Source: Advertising Age, May 25, 2016)

Coors Light introduced a new campaign which uses a 360o video shot from the perspective of a surfer
catching a huge wave, a whitewater kayaker, and a downhill bike racer. At the end of the fun ride, a
cold beer is waiting. The campaign hopes to appeal to Millennials’ appetite for adventure. (Source: Adweek,
June 1, 2016)
©2016 by M/A/R/C® Research
Page 6  June 2016

Heineken released two advertisements starring sportscaster Erin Andrews and actor Luis Guzman who
are identified respectively as the 5,008th and 8,507th most interesting people in the world. The ads
drive traffic to DosEquis.com where users can gauge their own interestingness using the Dos Equis
Interesting Index algorithm which uses Facebook posts as a measure. Dos Equis has also refreshed its
logo and packaging in preparation for its 120th anniversary. (Source: Adweek, June 1, 2016)

In conjunction with Pride Month, Bud Light launched a new 30-second
advertisement that celebrates same-sex weddings. The ad is part of the
brand’s “The Bud Light Party” campaign which features Amy Schumer and
Seth Rogan and spoofs the election season. The brand also erected two
rainbow-lit billboards in New York City and Los Angeles as part of its
LGBT marketing. (Source: Adweek, June 1, 2016)

Following the hard apple cider craze is perry – the formal name for classic
pear cider and a popular drink in the UK and France. Several U.S. craft
cider makers are adding perry to their offerings. (Source: NPR, June 1, 2016)

Two years after its acquisition by Anheuser-Busch, Blue Point Brewing has expanded its distribution
from 19 states to 32 states with 10 more states to be added this year. In 2015, Blue Point’s sales by
volume grew 75%. Now Blue Point is launching its most aggressive marketing campaign in its 18-year
history. The quirky ads feature the town where its brewery is located, Patchogue. The digital videos
celebrate the mundane such as the local water tower. The “Patchogue Got It All” campaign will involve
a concentrated digital and print push in 23 markets. In addition, the New York area will be targeted
with out-of-home and radio ads. A social media campaign will also support the effort. The brand has
also redesigned its packaging for its flagship brand, Toasted Lager. (Source: Advertising Age, June 2, 2016)

Heineken has become a global partner of Formula 1 racing. The multi-year partnership will begin this
year with the Formula 1 Gran Premio Heineken D’Italia 2016 in Monza.
Beginning with the 2017 season, Heineken will be the title partner for three
Formula 1 Gran Prix races and have a significant presence at additional
events. Heineken will be the exclusive Global Beer Partner and will have
access rights to the majority of Formula 1 events. Heineken will create a
fully integrated global F1 Open Your World manifesto and “If You Drive,
Never Drink” campaign. The Heineken name or logo will not be visible on any cars. (Source: Beverage World,
June 10, 2016)

A survey of craft beer drinkers found they are more interested in healthy habits such as exercising,
watching their weight, and drinking alcohol only occasionally than other monthly drinkers. Sixty
percent of Millennial craft beer drinkers say they only drink alcohol on weekends and 44% observe
periods of not drinking at all to maintain their health. Given the healthy focus of many craft beer
drinkers, brewers are encouraged to be transparent when it comes to nutrition labeling which 78% of
craft beer drinkers say are important to read when buying food and beverages. (Source: Brewbound, June 10,
2016)

Pabst Brewing Co. is introducing a new beer to the Rainier family – Pale Mountain Ale. The first addition
in two decades is packaged in 16-ounce, retro-style bottles with the iconic R. Unlike the original Rainier
beer, this brand will be “proudly brewed” in Washington State using Yakima Valley hops. A six-pack will
retail for $11.99. (Source: The Seattle Times, June 14, 2016)
©2016 by M/A/R/C® Research
Page 7  June 2016

Molson Coors is introducing branded glassware for its Cobra beer. Working with professors at
England’s Birmingham University and Imperial College, Karmarama developed a glass with a “unique
channel in the interior facia” which allows beer to flow smoothly around the body to the base creating a
whirlpool effect which releases aroma and flavor and forms a perfect head. The
glass is in production for release this summer. (Source: Agency Spy, June 14, 2016)

Spiked seltzer could be the summer’s biggest trend. The same company that
owns Mike’s Hard is introducing White Claw Hard Seltzer in lime, black cherry,
and ruby grapefruit flavors. Boston Beer, which makes Sam Adams, is launching
Truly Spiked and Sparkling. The first entrant to the category, SpikedSeltzer, was
introduced in 2013 and now has distribution in 14 states as well Bermuda and
the British Virgin Islands. The seltzer beverages are being positioned as a
lighter alternative to hard sodas. The new segment also hopes to appeal to
cocktail drinkers who mix vodka and soda. (Source: Crain’s Chicago Business, June 15, 2016)

A new study delves into the habits of craft beer drinkers at point of purchase. Almost 60% have used
their smartphone to help decide what beer to choose off the shelf while 74% have used their mobile
device to read up on beer before going to the store. Among craft beer drinkers, 72% say they are more
likely to try a new beer if they can read information about it. Those who are searching for information
about a brand while standing in front of the shelf are looking for reviews about one-third of the time.
Craft beer drinks who use their mobile phone in-store would like to be offered rebates or coupons
(75%), information about pricing (65%), brand specific information (52%), and retail locations that carry
specific brands (51%) or have it in-stock (49%). (Source: Adweek, June 19, 2016)

New Belgium Brewing is teaming up with Ben & Jerry’s to offer another ice cream-inspired ale. The
Chocolate Chip Cookie Dough Ale will roll out this fall. The two companies previously released Salted
Caramel Brownie Brown Ale. Proceeds up to $50,000 from the sales of the new offering will benefit
Protect Our Winters which is a non-profit focused on climate change. (Source: Fox31 in Denver, June 20, 2016)

Anheuser-Busch brought Estrella Jalisco beer to U.S. markets with substantial
communities of immigrants from Mexico’s Pacific coast that would be familiar
with the brand brewed in the Mexican state of Jalisco. One quarter of
Mexican migrants are from this area and the brand’s heritage and
authenticity is expected to resonant with them. Mexican beers are outselling
all other imported beers in the US. Modelo and Corona account for half of
this market. A-B had to sell both to Constellation Brands as part of its
acquisition of Modelo Group in 2013 and now only 3% of the brewing giant’s
U.S. sales come from imports. (Source: The Dallas Morning News, June 20, 2016)
©2016 by M/A/R/C® Research
Page 8  June 2016
Bottled Water

Sparkling water consumption grew 26% in the U.S. last year. It represents one-tenth of bottled water
consumption. The fastest-growing unsweetened sparkling water brand is LaCroix, a regional brand
owned by National Beverage Corp. In the past two years, LaCroix’s sales have grown more than twofold to $225.5 million, second only to Perrier with $339.4 million in sales. The brand does not run
television commercials but relies on its neon-colored packaging and social media to promote its brand.
Online efforts include a Shed the Sugar Sweepstakes in 2013 that gave away Tory Burch tote bags. In
2014, a 40 Can Challenge encouraged consumers to swap a can of soda for LaCroix for 40 days. (Source:
The Wall Street Journal, April 7, 2016)

Coca-Cola has updated its packaging for Dasani Sparkling water and introduced two new flavors –
raspberry lemonade and tropical pineapple. The new cans have a slender profile and refreshed
graphics. Lime and berry flavors are now available in a bottle for those who want a re-sealable
container. The brand will be supported by a marketing push. “Break for Bubbles” encourages
consumers to take a break from their everyday stresses to drink a Dasani beverage. The campaign will
use television, digital, print, and out-of-home advertising. (Source: The Drum, April 28. 2016)

Bottled water volume increased 7% in 2015 and dollar sales grew 9.6%. Bottled water’s share of the
liquid refreshment beverage categories (i.e. non-alcoholic drinks) increased from 26.8% in 2012 to
31.2% in 2015. It primarily stole share from carbonated soft drinks, functional drinks, and juice.
Sparkling water is one of the fastest growing beverage categories in the U.S. with a 10% increase in
volume and 15% in sales last year. Innovation in flavors and functionality is driving the growth. Almost
half (48%) of bottled water drinkers are replacing high sugar drinks with flavored waters. Over 80% of
consumers desire a functional benefit from drinking water. As with many beverage categories, over half
of bottled water consumers (53%) prefer to drink premium brands. After private label brands, the top
still bottled water brands are Dasani, Aquafina, and Nestle Pure Life. The top sparkling water brands are
Sparkling Ice, Perrier, and LaCroix. (Source: Beverage World, May 2016)

In the past 15 years, per capita consumption of bottled water has
increased 120% from 16.7 gallons in 2000 to 36.7 gallons in 2015.
During the same time, the combined volume of all other liquid
refreshment beverages decreased from 95.7 gallons per person to
80.1 gallons, a 16.3% decline. An analysis estimates that by choosing
bottled water over other drinks, an average individual consumed
24,000 to 27,000 fewer calories in 2015 than a typical person did in
2000. (Source: Beverage Industry, June 7, 2016)
©2016 by M/A/R/C® Research
Page 9  June 2016
Carbonated Soft Drinks

PepsiCo introduced Mtn Dew Black Label, a dark berry flavored soft drink made with herbal bitters. The
launch is supported by a campaign featuring a professional skateboarder, a mixologist, and a gamer
who don a magical jacket while enjoying the drink. The jacket magically makes everything around them
seem more sophisticated. Fifteen-second versions of the ad will run as targeted pre-rolls and the full ad
will be promoted on social media platforms. (Source: Adweek, March 30, 2016)

Soft drink makers have begun rolling out and promoting brands that
feature sugar. The soda companies hope sugar will appeal to consumers as
a natural ingredient and help sinking category sales. Sales of sugar labeled
organic increased 15% while sales of sugar labeled as natural increased
10.5% last year. Many who choose a soft drink made with sugar favor
“clean eating” and drink sodas occasionally as an indulgence. Diet sodas
made with artificial sweeteners have seen sales decline 2.5% to 6% annually
for the past five years – a steeper decline than the overall category. (Source:
The Wall Street Journal, March 30, 2016)

In the next phase of its “Share a Coke” campaign, Coca-Cola will highlight song lyrics pulled from 70
popular songs on its packaging beginning in April. Lyrics will come from songs across many genres and
even include lyrics from Coke jingles of the past. “Share a Coke and a Song” will be supported by
television ads and social media as well as an experiential tour throughout the summer. “Share a Coke”
is part of the larger “Taste the Feeling” global campaign. (Source: Advertising Age, March 31, 2016)

Pepsi debuted a new ad to support its recently launched premium soda brand 1893. The ad features a
sommelier character who peddles the beverage as though it were a fine wine or whiskey. Though the
ad is humorous, it also helps position 1893 as appropriate for mixed drinks. The cola is made from kola
nut extract, real sugar, sparkling water, and aromatic bitters. A ginger version includes “real ginger.”
The new brand is also competing with the hard sodas - including root beers, ginger ales, and
orangeades - being introduced by breweries. Pepsi hopes that 1893 will tap into the interest of the
food culture that is often found on social media. 1893 is a reference to the year Pepsi-Cola’s was
originally introduced under the name “Brad’s Drink.” 1893 will be sold nationally in sleek bronze and
black cans with a suggested retail price of $1.79 for 12 ounces. (Source: Advertising Age, April 6, 2016)

Coca-Cola has unveiled new global packaging that is part of its worldwide one brand strategy. The new
packaging will feature the brand’s signature red disc which is prominent in the “Taste the Feeling”
campaign. The graphic will visually unify Coke, Diet Coke, Coke Zero, and Coca-Cola Life. The design
will initially be introduced in Mexico and then roll-out across the globe over the next two years. The
new packaging will not come to the U.S. until 2017. In the U.S., the brand will have to decide how to
integrate Diet Coke which is the only variety to use the word “Coke” on its packaging. The one brand
packaging utilizes Coca-Cola as the brand name written in script. (Source: Advertising Age, April 18, 2016)

Pepsi is running five-second ads in support of its new emoji-designed
bottles. More than 100 short ads will run both online and on television
beginning in mid-May. The ads will be contextually relevant, e.g. an ad
running during a baseball game will have a baseball theme. Pepsi is also
partnering with Story, a store in New York, to bring the emojis to life
using a theme of “Have Fun.” The PepsiMoji cans and bottles are part of
a larger global effort that was first launched in Russia, Canada, and
Thailand. (Source: Advertising Age, April 26, 2016)
©2016 by M/A/R/C® Research
Page 10  June 2016

Mountain Dew Kickstarter is following up its Super Bowl “PuppyMonkeyBaby” commercial with an ad
that features several animals showing off their dance moves. The spot includes a fly, a frog, and a fish.
The ad ends with a fluffy ginger cat twerking on a kitchen table. Like its predecessor, viewers either find
this ad hilarious or disturbing. (Source: Business Insider, April 29, 2016)

In response to consumer desires, the carbonated soft drink industry is transforming its products into
premium and natural offerings which are available in more sizes, especially smaller ones, and flavors.
Total sales for carbonated soft drinks were $28 billion, up 1.3% over 2014. This was the first positive
change since 2011. (Source: Beverage World, May 2016)

Coca-Cola hosted screenings around the U.S. for the premiere of Captain America: Civil War. The brand
also used Snapchat to ramp up buzz for the premier. Coke hired Snapchat Influencers to accompany
fans to the screenings, ask moviegoers to divulge their allegiance to either Iron Man or Captain America,
and promote Coca-Cola products. (Source: Mobile Marketer, May 9, 2016)

A federal judge refused to block a San Francisco ordinance that
requires warning labels on outdoor advertisements for soda and
other sugar-sweetened beverages. The new rule will take effect
on July 25. The warning must appear on posters and billboards
and say “WARNING: Drinking beverages with added sugar(s)
contributes to obesity, diabetes, and tooth decay. This is a message from the City and County of San
Francisco.” (Source: Law360, May 17, 2016)

PepsiCo opened a state-of-the-art content studio in Manhattan. The studio will strengthen the
company’s ties to the entertainment industry. PepsiCo hopes to sell enough unbranded content to
cover the costs of creating ad content for its own products. Besides producing scripted series, films,
music recordings, reality shows, and other content, PepsiCo will also pursue distribution deals with film
studios, online publishers, and other outlets. The plan for the studio has been in the works and isn’t
designed to disrupt the advertising model but to shake up Hollywood. (Source: Advertising Age, May 16, 2016)

Mountain Dew launched a new virtual reality campaign which gives NASCAR fans a chance to race with
Dale Earnhardt Jr., Kasey Kahne, and Chase Elliott. The DEWcision 2016 campaign lets users get behind
the wheel to help determine which new Mountain Dew flavor – Pitch Black or Baja Blast – will be added
to the brand’s permanent line-up. The game offers nine unique experiences. To kick-off the promotion,
all three NASCAR stars drove Mountain Dew-themed cars in a race in April. (Source: Campaign US, May 25, 2016)

Coca-Cola introduced limited edition red, white, and blue cans that
feature the patriotic song lyric “I’m proud to be an American.” The
American flag can will be available in select convenience and
grocery stores through July 4. It is part of the ongoing “Share a
Coke and a Song” campaign but also serves to recognize Coke’s
longstanding partnership with the United Service Organizations
(USO) in honor of its 75th anniversary. Coke will promote the
partnership at the Coca-Cola 600 NASCAR race and encourage fans
to “Campaign to Connect” which involves sending thank you
messages to armed services members across the globe. (Source: Advertising Age, May 26, 2016)
©2016 by M/A/R/C® Research
Page 11  June 2016

Keurig Green Mountain is discontinuing its countertop soda machine, Kold, just 10 months after its
introduction. Keurig had hoped Kold would be as popular as its single-cup coffee maker but consumers
balked at the price of the machine, initially $369, as well as the cost of the pods which ran $1.25 for
each 8-ounce drink. The machine also took up a lot of counter space and took longer to make.
However, even cutting prices to $199 for the machine and 50 cents for each pod did not increase sales.
Keurig is offering full refunds to consumers who bought Kold machines which were designed to make
individual servings of Coca-Cola, Dr. Pepper, and other carbonated beverages. (Source: The Wall Street Journal,
June 7, 2016)

As an expression of its message of individuality, Dr Pepper Snapple Group
launched Pick Your Pepper which involves the distribution of hundreds of
custom-printed, limited edition Dr Pepper 20-ounce bottles. Available
during the summer, the custom-label bottles mark the first time Dr Pepper
has shifted away from its traditional labeling. Pick Your Pepper will be
supported by digital, social, radio, and in-store marketing that encourages
consumers to choose a bottle that reflects their uniqueness. As part of the
promotion, customers can visit the Hall of Labels online and create their
own Pick Your Pepper GIF. (Source: Beverage Industry, June 13, 2016)

Monster Beverage plans to introduce Mutant, a super soda that will compete with Mountain Dew. The
energy drink company will also introduce Hydro, a non-carbonated beverage that will be sold in bottles
with aluminum caps. (Source: Press Enterprise, June 14, 2016)

Pepsi is recreating its 1992 Super Bowl ad for Diet Pepsi featuring Cindy Crawford with emoji bottles.
The new version shows a bottle with an emoji of Ms. Crawford’s head on the side purchasing a drink
from a vending machine. Two other bottles with emoji faces are watching and the eyes change to
hearts when Diet Pepsi is purchased. The spot is part of Pepsi’s on-going “Say It with Pepsi” campaign
that features emoji-designed bottles. (Source: Advertising Age, June 20, 2016)

The City of Philadelphia approved a tax that would raise the price of a soft
drink – both sugar-added and artificially sweetened – by 18 cents per can.
The tax will be used to help pay for pre-kindergarten and other popular
services. At 1.5 cents per ounce, the proposed tax levy is 50% higher than
the assessment in Berkeley, California, the first city to impose such a measure.
A recent poll found that 59% of Philadelphians backed the sugary drink tax
which has been endorsed by the Philadelphia Inquirer. (Source: The Wall Street
Journal, May 19, 2016; CNN Money, June 16, 2016)

Mountain Dew recreated the Aggro Crag mountain featured in the 1990s Nickelodeon show GUTS as
part of its “Dewcision 2016” campaign. The purpose of the campaign is to decide if Baja Blast or Pitch
Black should become a permanent flavor of the soft drink. The two flavors were pitted against each
other to run up the “DEWggro Crag.” Other duels were held throughout the day including dueling
pianos and dueling beat boxes. (Source: Adweek, June 20, 2016)

Because more men are the primary grocery shoppers in their household today, Dr Pepper Snapple
Group created a persona-based segmentation to help target different types of male shoppers. The
segmentation scheme is based on sitcom dads and includes Traditional Tim (Home Improvement’s Tim
Taylor), Passionate Phil (Modern Family’s Phil Dunphy), Reliant Raymond (Everybody Loves Raymond’s
Ray Romano), and Deal-Loving Dan (Roseanne’s Dan Conner). As a result of the exercise, the soft drink
maker is now including messaging which appeals to men in its marketing. (Source: Loyalty360, June 21, 2016)
©2016 by M/A/R/C® Research
Page 12  June 2016
Coffee, Tea, and Cocoa

Green Mountain Coffee launched a new spot that asks the question “What if a coffee roaster was so
obsessed with quality they used only the top ten percent of beans the world over?” The ad shows a
man walking from his kitchen to the coffee fields to the roasting process and then back to his kitchen.
Green Mountain’s Fair Trade Certification and its 50 different varieties are mentioned. The ad will run
for eight weeks to celebrate the brand’s 35th anniversary. (Source: Agency Spy, March 31, 2016)

In 2015, the volume of carbonated ready-to-drink tea sold grew 18%. The drink seems to have all the
attributes that consumers are looking for in a beverage – carbonation, natural antioxidants, refreshment,
and convenience. The top ready-to-drink tea brands in the U.S., based on 2015 dollar sales share, are
Arizona (19.5% share), Lipton Pure Leaf (15.8%), Lipton Brisk (10%), Lipton (9.3%), Gold Peak (7%),
Snapple (6.4%), Arizona Arnold Palmer (5.9%), Lipton Diet (5.6%), Diet Snapple (5.2%), and Peace Tea
(1.8%). (Source: Beverage World, May 2016)

The top trend in coffee last year was cold-brew coffee which is made without
heat and considered sweeter, higher in caffeine, and more artisanal. Coldcoffee products are flying off the shelves and bringing change to the
category. The top ready-to-drink coffee brands in 2015 based on dollar
sales were Starbucks Frappuccino (58.0% market share), Starbucks
Doubleshot (30.2%), Starbucks (3.8%), Java Monster (2.6%), and Starbucks
Frappuccino Light (1.5%). (Source: Beverage World, May 2016)

Bigelow is developing branding for a new line of organic teas, Steep by Bigelow, which will feature a
dozen flavors. Bigelow is expected to increase ad spend to support experiential and in-store customer
engagement efforts. Digital and out-of-home spend is already up. Bigelow is actively targeting men
through NFL programming and other male-focused platforms. (Source: DailyVista, May 2, 2016)

Honest Tea’s “Refreshingly Honest Project” leverages social media to spur users’ honest thoughts about
the imperfect moments of everyday life. The docuseries and ecards depict common moments many
experience in real life. The summer campaign will include a series of social media pushes in which
influencers share their #RefreshinglyHonest stories, videos, and e-cards. Other users are invited to
share their stories using the campaign tag. (Source: Mobile Marketer, May 5, 2016)

Coffee houses are reporting increasing demand for more iced espressos and lattes. During the last
quarter of 2015, Starbucks reported a 20% increase in iced drinks nationwide following its introduction
of a new cold brew coffee. Coffee makers – including Peet’s, Illy, High Brew, La Colombe, and
Chameleon Cold-Brew – are pushing to get more high-end, low-calorie, less-sugary cold brews and
lattes onto store shelves. The U.S. ready-to-drink coffee market has been growing by double-digits
annually since 2011 and is expected to reach nearly $3.6 billion by 2020. (Source: Bloomberg, May 23, 2016)

Starbucks plans to introduce a nitrogen-infused version of its cold brew coffee in stores. Nitro cold
brew coffee has been on the menu of trendy coffee shops over the past few years. It is often served on
tap like beer and has a creamier, richer taste than regular cold brew coffee. Nitro cold brew will be
available in more than 500 Starbucks stores this summer. It will be served from a tap and without ice.
(Source: USA Today, May 31, 2016)
©2016 by M/A/R/C® Research
Page 13  June 2016

Starbucks has inked an agreement with Anheuser-Busch InBev to produce, bottle,
and distribute a ready-to-drink line of Starbucks’ Teavana tea in the U.S. The deal
will help Anheuser-Busch fill capacity at breweries hit by lower U.S. beer volumes.
It will also offer A-B distributors an entrée into one of the fast-growing beverage
categories. Consumption of ready-to-drink tea increased 6.1% in 2015. (Source: The
Wall Street Journal, June 2, 2016)

San Francisco’s Blue Bottle is now offering a $16 cup of coffee. The coffee is
called Port of Mokha, sourced from Yemen, and available in limited quantities. The coffee is sold online
at $65 for a six-ounce bag. (Source: Eater San Francisco, June 10, 2016)

Starbucks Cold Brew coffee in bottles is coming to grocery and convenience stores this summer. The
ready-to-drink unsweetened coffee is made from Starbucks Cold Brew Blend. Other ready-to-drink
beverages that Starbucks will introduce include Starbucks Black Iced Coffee in both sweetened and
unsweetened versions, Bottled White Chocolate Mocha Frappuccino Chilled Coffee Drink, Starbucks
Doubleshot Energy Coffee in Spiced Vanilla and Mexican Mocha, Starbucks Refreshers Revitalizing
Energy with Coconut Water in Black Cherry Limeade and Peach Passion Fruit, and Starbucks Iced
Espresso Classics Salted Caramel Mocha. (Source: Beverage World, June 15, 2016)

Nespresso announced it will sell Cuban coffee in the U.S. beginning in the fall.
Initially in limited release, Cafecito de Cuba will be sold in stores, online, and via
phone. Nespresso plans to develop a long-term arrangement with Cuban coffee
farmers to ensure a steady supply for the U.S. The company has partnered with
TechnoServe a non-profit that works with coffee farmers in developing nations
for guidance on how to proceed. (Source: USA Today, June 20, 2016)
Distilled Spirits/Liquor

Absolut is rolling out the latest creative in its “Absolut Nights” campaign. The first element is a 30second ad called “Anthem.” It shows young adults dancing and viewing fireworks while a voiceover
speaks of “nights that remind us what it means to connect…that memories are made of…those are
Absolut Nights.” The latest iteration of the campaign begun in 2014 encourages consumers to create
their own Absolut Nights while reflecting the inclusive and diverse nature of the brand and its audience.
A second spot with a focus on the product story will debut mid-summer as will four digital shorts
featuring different types of nightlife connections people make. The brand will also host an
#AbsolutNights extravaganza at the Coachella festival this spring. (Source: MarketingDaily, April 6, 2016)

Overall, revenue for the U.S. distilled spirits category grew 4.1% in 2015 while volume was up 2%. The
gap between dollars and cases is expected to widen as more drinkers opt for premium and superpremium drinks. Among sub-segments, Irish whiskey had the strongest growth rate at 16.1% followed
by single malt Scotch whiskey at 13%, blended whiskey at 8.8%, tequila at 7.4%, and brandy and cognac
at 7.2%. Sub-segments with declining growth include cordials at -1.9%, gin at -1.8%, and rum at -1.5%.
(Source: Beverage World, May 2016)
©2016 by M/A/R/C® Research
Page 14  June 2016

Jose Cuervo will mark Cinco de Mayo with a “secret” concert that will be livestreamed via Cuervo.com.
The concert will take place in Brooklyn and is expected to be a pop-up event by Afropunk. The online
event is part of a wider marketing trend to livestreaming events. (Source: Adweek, May 4, 2016)

In the last decade, sales of tequila have doubled both in dollars and volume. The return of cocktail
culture to the U.S. has helped make tequila trendy with mixologists. Tequila has also maintained its
status as the go-to liquor for shots. Finally, tequila has wide appeal. (Source: Business Insider, May 5, 2016)

Premium distilled spirits are forgoing traditional marketing to reach Millennials and instead offering
experiences. For example, “Grey Goose Boulangerie Bleue”
combination bakery-beach clubs are popping up in 20
locations around the world through September including at
the Cannes Film Festival and the US Open in New York as
well as in the Hamptons, Ibiza, and Marbella. Admission to
the club is by invitation only. Louis XIII cognac, which takes
100 years to make and has a $3,000 price per bottle, has
created a film written by John Malkovich and directed by
Robert Rodriguez that will not be screened until November
18, 2115 in Cognac, France. The screening is another by invitation only event for the descendants of the
invitees and conveys the idea that like Louis XIII cognac, the makers will not get to experience the
product. Another cognac, Courvoisier, is offering tours of Paris and its chateau in Jarnac. (Source: The New
York Times, May 8, 2016)

Over the last four years, mezcal – a tequila-like spirit with a smokier flavor – has doubled in sales
including a 30% increase in the past year. During the last six years, the number of mezcals on the
market has also exploded from 13 to around 70, including many small production limited edition
products. Much of the growth is due to the spread of tequila- and mezcal-focused bars across the
country. Another factor at work is consumers’ changing tastes and attraction to artisanal cocktails, craft
beers, and other high quality, unique beverages. (Source: Adweek, May 9, 2016)

Jägermeister is attempting to reform its reputation as a staple of
college parties while maintaining its appeal to 21 to 24 year olds.
The latest effort in that transformation is an interactive experience
at New York’s Electric Daisy Carnival. The activation is a two-level,
tree house-inspired structure that features two giant antlers,
symbols of the Jägermeister brand. Inside of Haus56 are typical
festival attractions such as theme photo booths, body painting,
temporary tattoos, and a bracelet/crown making station. The tree
house also features chairs made from oak barrels, upscale craft
cocktails, and a chance to learn about the brand’s history. (Source:
Adweek, May 12, 2016)

Grey Goose introduced a new ad called La Pursuit. The experiential spot follows a group of 20something friends on a whimsical car trip that includes running through fields to catch a dirigible and
watching a classic film projected on the clouds. It is the latest installment in the Fly Beyond campaign
which began in 2013 and will be released in 30- and 60-second versions for television and a 90-second
online version. (Source: Campaign US, May 25, 2016)
©2016 by M/A/R/C® Research
Page 15  June 2016

The luxury tequila segment, which includes brands priced at $40 per bottle or more, grew 8% last year.
The luxury segment is controlled by Patron which has 75% market share measured in volume. Patron
grew 3.8% last year. The second best-selling brand is Don Julio with 11% market share and 13%
growth. Most of the high-end brands are seeking to establish that they are more authentic than the
competition. Many marketing efforts are delving into origin stories that speak to how the spirit is made
and the people connected to the brands. (Source: Advertising Age, May 27, 2016)

Now that the relationship between Cuba and the United States has been restored, a decades old battle
between Pernod Ricard and Bacardi over the Havana Club rum will
have to be settled. Pernod made a deal in 1993 with the Cuban
government to sell the Cuban-made rum around the world.
Bacardi, itself founded by one of Cuba’s oldest families in 1862,
purchased the Havana Club brand from the founding family after
Pernod partnered with Cuba. Bacardi has been making Havana
Club rum in Puerto Rico intermittently since 1995. A trademark suit
is pending in a U.S. District Court in Washington DC. Bacardi dominates the U.S. market with a 30%
market share but the brand is now relatively unknown in Cuba. (Source: The Wall Street Journal, May 30, 2016)

Absolut Vodka’s newest ad in its #AbsolutNights campaign centers on a guy at a music festival who
runs into a friend who has undergone gender reassignment. Darla explains her experience in a
teachable moment that honors the tagline “When was the last time you were true to yourself?
Sometimes being open to new possibilities is all it takes.” The ad continues Absolut’s tradition of
focusing on groups that don’t get a lot of attention including widows, lesbians, and now transgender
persons. (Source: Adweek, May 31, 2016)

Bulldog Gin, the category leader in Spain, is expanding to the North America, Latin America, and the
Caribbean. The brand will partner with Gruppo Campari for distribution and focus on on-premise
consumption. (Source: Beverage World, June 7, 2016)

Beginning in June, Diageo will offer a George Dickel 17 Year Old Whisky only in Tennessee due to a
limited supply. The sipping whiskey was allowed to age longer which resulted in a balanced, flavorful
taste. (Source: Beverage World, June 8, 2016)

Glenfiddich is launching a new campaign to promote Glenfiddich Bourbon Barrel Reserve 14 Year Old.
The digital spots ask drinkers to “Rethink Whiskey” and challenges perceptions of scotch and bourbon.
The first spot explains how the whiskey is aged at a Scottish distillery in American oak barrels that
formerly held bourbon resulting in a flavor that combines elements of both Scotch and bourbon. Other
spots suggest that Scotch can be appreciated by younger generations as well as by those who wouldn’t
normally drink Scotch. Another ad challenges the notion that Scotch is just for formal events by
showing it served at more casual occasions such as a backyard barbecue. The goal of the campaign is
to make Scotch more top-of-mind for more drinkers. (Source: Agency Spy, June 14, 2016)

A survey by Stoli found that 73% of Millennial men enjoy flavored
cocktails but 63% avoid ordering them in public out of fear they will be
teased. As a result, Stoli is launching the “Drink What You Want”
campaign in hopes of erasing the stigma of men who enjoy fruity
beverages. It includes a longer anthem spot and three shorter videos
that focus on individual products and feature three different cocktails.
The tone of the ads is light-hearted. This is the first campaign Stoli has
created for its flavored vodka. (Source: Adweek, June 20, 2016)
©2016 by M/A/R/C® Research
Page 16  June 2016
Fruit/Vegetable Juices and Drinks

Juice sales have stagnated in recent years due to increasing competition from other healthy drink
categories, heightened concerns about the calorie and sugar content in juice, and growing aversion to
artificial ingredients. Overall juice sales in 2015 were $19.5 billion. Premium juices and smoothies are
keeping the category afloat with strong demand for high-pressure processed cold pressed juices which
are perceived as high quality, “clean” and naturally healthy products. This high-end segment had solid
8.2% sales growth. Leading brands of refrigerated juice drinks and smoothies are Naked Juice,
Bolthouse Farms, Naked, Odwalla, and Suja. Suja Essential experienced 254%
growth in 2015. (Source: Beverage World, May 2016)

As part of its push beyond carbonated soft drinks, Coca-Cola is purchasing the
biggest soy-beverage brand in Latin America, AdeS, from Unilever for $575 million.
AdeS’ beverages include milk and fruit juices. In January, Coca-Cola purchased 40%
of Nigeria’s largest juice maker with plans to purchase the remaining shares within
three years. The soda giant has also purchased Culiangwang Beverages Holdings of
China which specializes in multi-grain beverages. (Source: Business Insider, June 1, 2016)
Milk Alternatives

The U.S. market for white milk, defined as packaged, unflavored milk from all animals, will decline by 2
billion liters by 2021 which is a negative compound annual growth rate of 1.8%. The decline is due to
reduced occasions for milk drinking, a global trend toward drinks with lower calorie count, and the rise
of alternative dairy products which continue to experience strong sales growth. In addition, consumers
are moving away from the staple of cereal with milk for breakfast. However, milk has nutritional
components that consumers want including protein and calcium. Milk producers are capitalizing on
those desires and creating more value-added dairy products with enhanced functionality. Overall sales
for milk declined -7% in 2015. Refrigerated skim/low-fat milk sales were down -12.2% while
refrigerated whole milk fell -3.4%. Refrigerated flavored milk experienced a 6.1% increase in sales but it
is the smallest of the three sub-segments. (Source: Beverage World, May 2016)

Sales of non-dairy milk alternatives increased by 13% last year.
Driving the increase include higher incidence of lactoseintolerance, growing interest in a vegan diet, and favorable
nutritional profile for drinks like almond milk. Almond milk sales
are forecast to increase to $1.8 billion by 2020, up from $1.2
billion in 2015. Leading almond milk brands are Blue Diamond
Almond Breeze (60.5% share) and Silk Pure Almond (24.1%).
Another up and coming brand is Califia Farms who recorded
215% sales growth in 2015. Coconut milk is also projected to
have higher sales in the next five years while soy milk is expected
to continue its decline. (Source: Beverage World, May 2016)
©2016 by M/A/R/C® Research
Page 17  June 2016
Nutritional/Functional Drinks

Consumers have begun to realize how much sugar sports drinks contain - over 50 grams per 32-ounce
bottle, much more than the average person needs. In response, sports drinks are offering lower- and
no-calorie versions. Sports drinks are also being tailored to meet
specific needs such as a high-sugar version for athletes needing
energy, carb-heavy versions for athletes needing endurance, and
low-calorie options for simple hydration needs. In addition,
Gatorade and Powerade have eliminated brominated vegetable oil
from their ingredient lists in response to an online campaign begun
by a 15-year old. The next phase of sports drinks appears to be
meeting individual nutritional needs. Gatorade is testing small pods
of liquid formulated to individual needs as determined by Gatorade’s sweat patch. The pods snap into
bottles of Gatorade to deliver the necessary nutrients. (Source: Business Insider, March 26, 2016)

Gatorade has unveiled a new spot for Gatorade Frost called “Play Cool.” In the ad, Miami Heat shooting
guard Dwayne Wade reaches for a Gatorade Frost when the game is on the line and is transported to
his cold place where George “The Iceman” Gervin assures him that he is cool and the two trade goofy
lines about how cool, e.g. like a yeti eating frozen spaghetti. (Source: Agency Spy, April 20, 2016)

Red Bull was the leading energy drink by dollar sales in 2015 with $3 billion in
sales and 28.7% market share. The brand’s sales increased 7.6% last year.
Monster Energy also experienced sales growth of 11.5%. Its sales totaled
nearly $1.5 billion and its share of the market was 14.2%. As the energy drink
market matures, marketers are having impressive results with brand
extensions such as Red Bull Sugar Free and Monster Energy Zero Ultra. (Source:
Beverage World, May 2016)

Red Bull and GoPro have expanded their partnership and the beverage maker has taken a small equity
position in the tech company. The exclusive global agreement focuses on the use of GoPro’s highdefinition video camera/recorders and other technology at more than 1,800 Red Bull events. Together
the companies will produce live video and other content to distribute via online channels such as Red
Bull TV and GoPro Channel. The deal is expected to ramp up content for both parties. (Source: Adweek, May
24, 2016)
©2016 by M/A/R/C® Research
Page 18  June 2016
Wine

Moet Hennessy is using social channels to reach the primary target for its Chandon brand of
Champagne – women. Chandon sponsored a trip to Napa Valley for popular fashion blogger Julia
Engel of Gal Meets Glam and several of her friends. A slew of favorably received posts on Instagram
was the result of the weekend. (Source: Mobile Marketer, April 28, 2016)

For the 22nd consecutive year, the U.S. market for wine grew with a 6.3% increase last year. Sparkling
wine was the star segment of 2015 with sales growth of 14.5%. Prosecco is particularly popular and the
La Marca brand saw a 59% increase in sales. Other trends from the year include the increasing
acceptance of boxed wine as well as the expanded availability of wine-on-tap in restaurants and bars.
The top table wines ranked by 2015 dollar sales are Barefoot, Sutter Home, Franzia, Woodbridge by
Robert Mondavi, and Yellow Tail. The top sparkling wines and Champagnes sold last year were Korbel,
Cooks, Barefoot Bubbly, Andre, and La Marca. (Source: Beverage World, May 2016)

A new survey finds that Americans’ favorite place to drink wine is at
home with 47% of Millennials and 61% of Gen X and Baby Boomers
preferring it over social gatherings, restaurants, or wineries. This
preference could be part of a wider movement towards “hometainment” or socializing at home to save money. The same survey
found that bars are the least popular place to drink wine with only
3% choosing it as their favorite. (Source: Business Insider, May 3, 2016)

Mangrove Estates packaged its new rosé, The Drop, in 8.4-ounce
skinny cans in part to appeal to men who like rosé or as some call it brosé. The wine’s name is a nod to
a surfing term which refers to the make-or-break decision to paddle directly into a wave as its breaking.
The brand hopes that Millennial men will respond to the idea of “’taking the drop’ when everything is
possible, even great tasting rosé in a can.” (Source: Adweek, May 5, 2016)

The Wine Market Council reports that consumers in their twenties and thirties consumed 159.6 million
cases of wine last year or 42% of all the wine volume. Millennials are currently the leading group of
wine consumers and drink on average 3.1 glasses per sitting. This group drinks both white and red but
prefers rosé, which experienced 13% last year. Millennials are also not afraid to splurge on their wine
purchases with 17% drinking wine priced at over $20 a bottle. (Source: Forbes, May 19, 2016)

Treasury Wine Estates has launched the first television commercials for Beringer’s. The 15-second ad is
running on the Food Network. The ad is supported by display ads on financial news, travel, and
entertainment websites as well as Instagram. (Source: DailyVista, June 2, 2016)

Columbia Crest’s 2014 Crowdsource Cabernet has hit the market. It is
the first wine which had key winemaking decisions voted on by the
public as it made its way from vineyard to bottle. The online
community made decisions about bud break, harvest, fermentation,
blend, and label. The two-year process invited people to learn more
about how wine is made and the factors that can affect the outcome.
Approximately 1,000 cases of the wine are available for purchase and
will retail for $30 per bottle. (Source: Beverage World, June 7, 2016)
©2016 by M/A/R/C® Research
Page 19  June 2016
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