Beer Marketer's Insights - Combined Blue Triton/Primo Brands Enjoys Volume-Driven Sales Rise in Q1, with Premium Plays Saratoga & Mountain Valley Poppin'

In first full qtr since merger with Blue Triton, Primo Brands turned in volume-driven sales growth while upping the magnitude and timing of the synergies it expects to attain. Its premium water portfolio - meaning Saratoga Spring and Mountain Valley - was very much the star, tho off a small base. But CEO Robbert Rietbroek said there will be more from that direction as co known for prosaic businesses like home & office delivery, supermarket exchanges and purified water, aims to grow in areas of functional, flavored and still and sparkling premium water across formats and channels. As for those synergies, co now has raised target by $100 mil to $300 mil, and coming a year sooner than anticipated at time of merger last fall. It shuttered 8 plants in past qtr. Because of merger there was a lot of noise in reported data. Revenues, for instance, jumped 42.1% to GAAP basis. On adjusted basis, tho, net sales rose 3% to $1.6 bil while adjusted EBITDA advanced 12.1% to $341.5 mil. Portfolio of Regional Spring Water segment including Poland Spring and Ozarka was essentially flat, +0.1%, to $794.1 mil while Purified Water segment was up 3.5% to $511.6 mil.Then there's Premium segment, soaring 49% to $73.9 mil as both brands rode surprising social media lift to strong gains. Mountain Valley grew 41.8% and passed $50 mil in Q1 net sales, thanks in part to added glass-bottle capacity, while Saratoga grew 62.8% and passed $20 mil. So those two brands took "center stage," as Rietbroek put it, in some cases literally. As official water of Golden Globes, Saratoga drew lotsa visibility - but not as much as when fitness influencer Ashton Carter integrated it into his routine - to tune of over 1 bil views to date. So Saratoga "may very well be the hottest brand in America right now." Mountain Valley has thrived from organic endorsements from professional athletes, CEO reported, "unaided authentic moments" that Primo didn't pay for. Tonight CEO was headed to Academy of Country Music Awards in Dallas, where Mountain Valley is official water. To build on the new awareness, both brands are launching 6-count PET multipacks into mass channel, including Walmart, and have entered extensive direct-delivery system.By channel, Direct Delivery (so-called Home & Office Delivery, or HOD) rose 2.3% to $650.7 mil. Grocery channel rose 1.8% to $326.3 mil, Club 0.2% to $249.9 mil, Mass 5.9% to $196.3 mil. Away-from-Home was up a point to $107.9 mil. And Emerging channel (home improvement stores, natural foods, redistribution - you get the picture) soared 22.5% to $79 mil.Tariffs? Not to worry. Because it mainly produces domestically for domestic consumer base (in contrast to those fancy European and Fijian imports, it was implied), "our exposure to potential tariffs is minimal," Rietbroek reassured listeners. Mainly at risk is its dispenser biz, but that's just 1% of net sales. Overall, then, as CFO David Hass assessed, Primo should be OK in an environment "where things change by the minute."

Combined Blue Triton/Primo Brands Enjoys Volume-Driven Sales Rise in Q1, with Premium Plays Saratoga & Mountain Valley Poppin' ^Featured

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Combined Blue Triton/Primo Brands Enjoys Volume-Driven Sales Rise in Q1, with Premium Plays Saratoga & Mountain Valley Poppin' Featured

Publishing Info

Combined Blue Triton/Primo Brands Enjoys Volume-Driven Sales Rise in Q1, with Premium Plays Saratoga & Mountain Valley Poppin' ^Featured