BMI Archives Entry

BMI Archives Entry

Former Zico Coconut Water marketer Bill Lange, whose last stop was 10-month stint at KeVita probiotic bev marketer, has landed job as vp of sales and marketing at Pressed Juicery, retail-focused cold-press play that's on ambitious growth jag. Tho Bill hasn't yet returned call placed yesterday seeking comment, he disclosed move to LinkedIn contacts. In presentation at BevNet conference in early Dec, Pressed Juicery cofounder Hayden Slater said co was motoring toward target of 31 stores in Calif by year-end, offering range of 40 year-round items and 10 seasonal ones (BBI, Dec 12). Along with Calif rivals like Urban Remedy and Project Juice, Pressed Juicery's focus is on getting consumers to its own brick-and-mortar locations and ordering online, rather than building extensive retail biz as brands like Evolution Fresh and Suja are doing. 

Coca-Cola Bottling Co Consolidated has concluded final step in negotiations with core supplier Coca-Cola to expand its territory, now signing definitive deal to pick up territories in Paducah and Pikeville, Ky, that are currently handled by KO's Coca-Cola Refreshments bottling unit. Bottler that trades as COKE recently said it had reached deal on another piece of puzzle, swapping Jackson, Tenn, area for Louisville, Ky, and Evansville, Ind (BBI, Dec 24). The deal includes distribution rights for some non- Coca-Cola bev brands but not any production assets, in line with KO's strategy of retaining production in refranchised territories and shipping finished goods to its franchise bottlers. There are still some undisclosed conditions that need to be met before transactions are closed, COKE said.  

For about 3 years, Campbell Soup ceo Denise Morrison has made no secret of her envy of dynamics of perimeter of grocery store, source of growth and margin that's been lacking in sleepy center store where CPB's shelf-stable products generally reside. That was behind co's purchase of Bolthouse Farms, of course, as well as coupla purchases on food side. Now Morrison has indicated co has designs on growing cold-pressed juice biz, where Starbucks is playing via Evolution Fresh and Hain Celestial is playing via BluePrint Juice. Tho co isn't offering details yet, new line will launch this spring under 1915 trademark, CPB ceo Denise Morrison disclosed to Consumer Analyst Group of NY meeting in Fla yesterday. Accompanying slide appeared to show straight-walled bottle with white overcap and listing of ingredients down front of panel, trope employed by players like Evolution, BluePrint and Suja. It doesn't appear to be prominently branded, if at all, as Bolthouse item.

Morrison included disclosure in context of explaining how co plans to limit investments in shelf-stable part of biz sold in weak-performing center store while dialing up investments in what co has dubbed "Packaged Fresh segment." Besides 1915, other initiatives will go beyond bevs sold in produce section to include "soups, sauces and sides in the deli section and with next-generation products in other adjacent perimeter categories," she said. To prep for initiatives, co has invested in additional warehouse capacity and expanded production capability in bevs and other Packaged Fresh segments, she added. "We are very excited about our vision for Packaged Fresh and the potential to create value for our shareholders in this faster growing space." She was careful to add that innovation won't cease in core biz, but co will try to jump aboard faster-growing bandwagons like premium soup, organics and recently intro'd dinner sauces. "But make no mistake, there will be more investment in the Packaged Fresh area," she said.

Disclosure came a few days after Campbell again backed off its projections for 2015, and on day it said it's IDed opportunities for $200 mil in cost savings, 2-3% of annual sales, over 3-year period, beyond ongoing productivity program. Tho initiative won't deliver significant savings this year, beginning in 2016 it should help fund ambitious new growth strategies, cfo Anthony DiSilvestro told analysts yesterday.  

For years, Propel has experimented with various positionings and extensions, moving thru different tactical roles as sort of fighter brand endorsed by its older sibling Gatorade. Could Pepsi brand's newest mandate be to act as Smartwater fighter? That's what some in bottled water realm are buzzing about as word has begun to ripple out about latest iteration, Propel Electrolyte Water. New extension has popped up on store shelves in brand's home market of Chicago packed in straightwall clear PET bottle with blue highlights that's similar to fast-growing Coke brand's, but riffs off its elder sibling's credibility via on-pack endorsement, "Gatorade Levels of Electrolytes."

Asked about new brand, which appears at time of accelerating activity in high-end water, Gatorade rep replied, "Propel Electrolyte Water was developed for passionate exercisers who are looking for a zero-calorie, flavorless beverage - like water - but with hydration benefits. It's a crisp, unflavored, premium water with Gatorade-level electrolytes." She said line is undertaking phased rollout but will be available in club, mass, convenience and grocery stores nationally at SRP of $1.49 per 750-ml bottle. Online nutritional panel dated Feb 4 lists ingredients as reverse-osmosis water, sodium bicarbonate, magnesium sulfate and potassium bicarbonate. "From the makers of Gatorade," declares package, which is visible at otherwise sparse Web site: http://propelwater.com/ Target Stores Web site shows 6-packs of 750-ml bottles to be available in some stores, tho shoppers are referred to stores for pricing info. No sign of brand yet in NY, where pending transition of Vitaminwater and Smartwater brands from indie wholesaler to Coca-Cola Refreshments unit already has seen branded coolers getting filled with rival brands such as Essentia Water. This could be interesting one to watch.  

Intriguing juice-and-coffee brand Frava has called it quits, at least for now. Brand based in NY's Long Island City nabe and funded in part by printing exec there had been founded by pair of recent Colgate Univ grads, Evan Berman and Alex Portin. In disclosing pullback to BBI, Alex said he wasn't ready to discuss reasons . . . On heels of disappointing earnings report from Keurig Green Mountain that sent shares skidding, Coca-Cola has boosted stake, in keeping with prior agreement. KO exercised right to purchase additional 5.38 mil shares, at time GMCR is edging closer to launch of long-awaited cold-bev system . . . Looking to further leverage its NFL endorser Darrelle Revis, Steaz has named Sparkpr's NY unit as its pr agency of record and St Louis-based Moosylvania as its social media AOR. The agencies will work together to also herald brand's commitment to Fair Trade sourcing . . . Ball Corp has completed acquisition of Sonoco's metal end and closure plants in Canton, Ohio, which will operate as part of Ball's metal food and household products pkg div. 

Kraft Foods Group reshuffled top mgmt as it reported soft Q4, elevating operations vice chmn George Zoghbi to coo and broadening role of Canada chief Chris Kempczinski to evp of growth initiatives and prexy of international operations. Kraft cfo Teri List-Stoll said she'll depart at end of month, to be replaced by James Kehoe, who'd departed Kraft just a few months earlier to take similar post at Canadian apparel maker Gildan Activewear. On bev side, Q4 revenues slipped 3.4% to $577 mil, in part because of lower pricing due to increased promo activity in refreshment bevs. Unfavorable product mix also was factor as lower-priced Capri Sun kids' line enjoyed strong volume growth but more-lucrative roast and ground coffee fell as consumers turned to pods instead, and powdered bevs were off, too. Shipments in advance of launch of licensed McCafe coffee offered a boost. Still, KRFT's Q4 operating income in bev segment plunged 41.7% as higher commodity costs, lower net pricing due to promo activity and unfavorable product mix more than offset lower ad spend vs prior year. "Our advertising levels have fallen, as effectiveness in marketing spending has deteriorated, and increased promotional spending has not resulted in volume lift or sales growth," chmn/ceo John Cahill told investors, explaining dilemma confronting co across its businesses.    <A  

After long partnership dating back to when "coconut water" was head-scratcher to general public, Vita Coco has moved on from Boston/NH partner Great State Beverage, seguing to Polar Beverage of Worcester, Mass. Move further aligns Vita Coco brand with Dr Pepper Snapple Group distribution network, thru which it moves in majority of country. Vita Coco and Polar confirmed shift but declined to comment. Great State, and its Blue Coast unit in Boston, is mainstay of Northeast Independent Distributors Assn, key rival of Polar in trying to land innovative brands (tho Polar subs some of its biz out to NIDA members in parts of its 4-state footprint where it's not as strong). Vita Coco launched in Northeast mainly thru NIDA network, making this milestone in brand's history.  

Red Bull turned in another solid year in 2014, scoring 4.2% volume gain even tho currency headwinds limited revenue increase to 1.4%, RBC Capital's Nik Modi reports. In 2014, Red Bull sold 5.6 bil cans worldwide, for 4.2% rise, in line with worldwide category's growth, generating 5.11 bil euros in revenue, for the 1.4% gain. Its core growth opportunities? Co pegs them as happening in core US market and Far East, lodging hope in part of global rollout of flavored Red Bull Editions. Among key territories, India scored 32% gain at time co is launching local production there, and Japan was up 11%. Also highlighted by Nik: Turkey, +33%; South Africa, +31%, and Russia, +18%. Red Bull now employs 10,410 in 167 countries, up from 9,694 employees in 166 nations last year, he noted.

Red Bull? Old Ox? Too Similar, Red Bull Argues Meanwhile, Red Bull is challenging Va craft brewer called Old Ox over use of bovine reference, Beverage Daily reports. After earlier warning 8-month-old brewer to back off, Red Bull has filed objection with US Patent & Trademark Office, prompting outcry from Old Ox founder, who asked, "Red Bull? Their image projects virility and strength to me. We're an old ox." Among Red Bull's concerns was lack of color claim in brewer's application, leaving door open for it to employ similar red color to Red Bull. "In addition, an ox is a castrated bull," Red Bull's notice points out. Global energy drink leader is tenacious defender of its trademark, in biz that's seen scores of colored-animal-themed rivals come and go.  

Monster Beverage has signed definitive agreement with Coca-Cola for investment-and-brand-swap transaction that will do much to up-end energy and distribution sectors. MNST disclosed development in 8-K form filed with SEC on Fri, coupla days after BBI reported that termination letters were going out to Bud wholesalers (BBI, Feb 10). In filing, MNST said it sent termination letters on Feb 9 to 3d-party distributors "in most territories in the US and Canada," while simultaneously informing Coke bottling system members that they'll be getting brand. It estimates buyout payments will come to $280 mil. As noted, execs who work trade on both MNST and KO sides have been getting restive as chance of transitioning brand by initial Mar target seemed to be slipping away, and retailers' reset calendars approached (BBI, Jan 23).  

Could it be that some bottled-water cos went too far in downplaying their faraway sources in wake of green backlash a few years back? Fiji bottled water is latest to kick off major campaign reminding consumers of its source, just after Icelandic Glacial undertook similar initiative a week earlier. Fiji said it's breaking its first-ever TV campaign - budgeted at $30 mil, a record markting outlay for brand - to take consumers back to source in South Pacific, under new tagline, "Untouched." Campaign comprises four 15-second spots airing on network and cable programming that describe unique mineral profile and refreshing taste offered by aquifer on Viti Levu island, transposing scenes of tropical beauty with dirty cityscapes to bang home point. It was devised by Fiji's in-house agency, FireStation, and produced by team behind True Detective title sequence. "As we continue our growth trajectory, we wanted to re-introduce the brand more broadly to consumers," explained marketing vp Clarence Chia. Move comes just after Fiji's smaller challenger, Icelandic Glacial Water, similarly kicked off campaign touting purity of its own source in Iceland. Interestingly, in describing that campaign, Glacial's N Amer ceo, Reza Mirza, had cited consumer research suggesting that many American consumers don't believe that either Fiji or Glacial are actually imported brands (BBI, Feb 12). That perception may in part have resulted from efforts of bottled water importers to downplay their long travel lanes to US shores, since green backlash a few years ago made that a point of vulnerability among those worried about carbon footprint of well-traveled water, issue that seems to have eased off in recent years. Since green backlash arose, both Fiji and Icelandic Glacial, like other bottled water players, have taken steps to offset their carbon footprint.