BMI Archives Entry
Raw food purveyor Urban Remedy of Point Richmond, Calif, has unveiled fruits of its collaboration with actress Cindy Crawford, launching package dubbed Essentials that claims to offer 3 days' worth of "complete organic nutrition" with product array that includes organic juices, meals, snacks and teas designed to help boost health, lower inflammation and support a new healthy eating regimen. It's priced at $209 for one-time purchase, or lower price for those who opt for subscription. On bev side are 2 Cold Brew Light Coffees and 1 Matcha Au Lait (tho those avoiding caffeine can substitute herbal teas for the coldbrew) and 3 Green low-glycemic cold-pressed juices under names Glow, Genius and Clean. Also in mix are 3 protein-fortified Mint Cacao Chip Breakfast Smoothies and array of lunch options like shredded kale salad, snack options like hummus with veggies and dinner options like veggie pad thai . . . Dasani Drops has now added its first unsweetened bev enhancers, debuting Strawberry Basil and Lime flavors. Each 1.9 oz bottle supports about 32 servings . . . Never one to miss a news peg, Avery's Beverages of New Britain, Conn, has raced to market with a new grapefruit-lime-flavored soda called Deflated Ball Brew, tapping into national debate on underinflated footballs used in New England Patriots' blowout of Indianapolis Colts 2 weeks ago. Since 11 of 12 Patriots footballs came in underinflated, 11 out of 12 bottles will have a bit less carbonation, owner Rob Metz told station WTNH. Co has made something of a trademark out of lampooning pop culture from its little red barn in New Britain, broadcaster noted, offering sodas named after everything from yellow snow to Obama Brew.
STRATEGY: Stumptown Continues to Quietly Broaden Range, Availability of Its Coldbrew Coffees
Tho it spends most of its time building network of cafes and developing whole bean biz, Stumptown Coffee isn't neglecting its coldbrewed coffee biz. It's been developing biz via 3 separate formats, all of them refrigerated, and deepening those with new flavors. Due up next, in mid-Feb: another dairy-based entry, this one infused with chocolate.
Tho it's proceeded with deliberation, to many Portland, Ore-based roaster is key player to watch in cold-brewed space, given burgeoning national brand awareness, private-equity-fortified capital base and diverse background of its ceo, Joth Ricci, who played in DSD-oriented RTD segments like beer and NAs during his days at DSD powerhouse Columbia Distributing, Jones Soda and First Beverage Group. "I've been excited from the start of my tenure about the potential for the ready-to-drink segment," Joth told BBI in interview last Fri. "We've seen some great new and existing brands."
Stumptown effort began with black coldbrew packed in 10.5-oz stubby brown bottles with distinctive gold lettering, now found in multiple Whole Foods regions. No comment from Joth on when those will be nationally available in influential chain, but milestone is believed to be close. With launch, co staked its coldbrew strategy on RTD side, not concentrate model of other early players like Chameleon (which has since launched RTD line of its own). Tho stubby has only been available as unsweetened, black item, it was augmented by sweetened, dairy-based line packed in 16-oz brown milk cartons, produced at dairy partner Sunshine Farms. That moved quickly out gate and has been augmented with 32-oz multiserve pack, to point that dairy subline now has nearly caught up in sales with core stubbies, Ricci indicated. Last year, dairy-based entry offered first seasonal, Winter Cheer, employing mulling spices, from Oct thru holidays, and co is prepping another seasonal for this summer. By now the packaged items have moved beyond natural and specialty grocers into general grocers like Fred Meyer, Albertson's and Safeway.
Third leg of stool has been keg biz, which has moved from Stumptown's own stores to expanding array of retailers, including some indie coffeeshops in areas like Tex and Southern Calif that now sport multiple coldbrew lines these days, with hot coffee sometimes relegated to being just secondary offering. It launched kegs with straightforward Original Cold Brew Coffee but has begun adding rotating array of single-origin versions. Also looming larger are experiments with Cold Brew Coffee on Nitro, an entry that's "cascading and creamy with all of the giddyup of our original Cold Brew Coffee and a smooth nitro-draft mouthfeel," per Stumptown Web site.
With welter of approaches invading market - some refrigerated, others shelf stable; some RTD, others concentrate - Ricci made it clear his team is giving great thought to right way to play in emerging segment. As aware as any coldbrew exec of challenges that refrigeration brings to supply and distribution chains, Ricci said his team had shelf-stable version ready to go, but ultimately decided it simply wasn't good enough, and that for now co needs to maintain top-quality position in segment. He's also had chance to ponder tradeoffs exacted by entries using milk and sugar, which are more familiar to consumers coming from Frappuccino realm but obscure the taste breakthrough of coldbrew, whose lack of bitterness and rounded flavor are most apparent when it's drunk straight. The key to a Stumptown dairy-based entry, he emphasized, "is that it's fresh and coffee-forward, and not be lost as a milk product with coffee." Even imminent chocolate item "is a very coffee-forward product. We've been very conscious of that."
Ricci promises further product innovation ahead - what, he's not quite ready to disclose. "The category has a tremendous amount of room for innovation in the base black coffee and in other ways," is all he'll say for now.
Peltz, Mgmt Not Really on Same Page at PepsiCo, NY Post Claims; Succession Plan Is Peltz's Early Aim
When PepsiCo announced on Jan 16 that former HJ Heinz ceo William Johnson will join its board, it was viewed as sign of thaw in relations between board and activist investor Nelson Peltz, who's unsuccessfully been pushing for co split. Now a report in NY Post is disputing that notion. "It's not a truce," a source claimed, adding that once Johnson is appointed in Mar he "will push quickly for changes" because his patron Peltz "wants major changes at PepsiCo to unfold this summer." While his oft-repeated demand that PEP split its bev and snacks biz is likely on his mind, Post report pegs his immediate focus on insisting co put a clear succession plan together for eventual successor to ceo Indra Nooyi. "In my view, there is no heir apparent," said another source, given that likeliest contenders Brian Cornell and Zein Abdalla are no longer with PepsiCo. Tabloid paper seems to be well connected to dissident factions among PEP execs, board members and investors and has been on money in past on closely held developments at PEP.
For over a year now, Campbell Soup prexy/ceo Denise Morrison has been warning investors that premium action in grocery has shifted to perimeter of store, fresh-food bastion where Campbell has not much played in past. Co's acquisition of juice maker Bolthouse Farms was key effort to remedy that void on bev side, and CPB has launched and acquired products that play in refrigerated space on food and soup side, too. This week, ceo took further step to jolt lagging co out of complacency, putting Bolthouse and fresh soups under one roof, under mgmt of Bolthouse chief Jeff Dunn, while relegating shelf-stable V8 bev line to same group as co's core shelf-stable soups, combining sluggish performers in single unit that apparently will aim more for price realization than brisk growth. Shakeup caused at least one initial casualty, Irene Chang Britt, longtime CPB exec who ran Pepperidge Farm and global baking/snacking unit, but there likely will be more as Morrison seeks to shake up Camden, NJ-based co that's been often cited lately as takeover target. "Major" project to rethink cost structure likely heralds significant layoffs down line. CPB shares traded up a bit on news today.
New streamlined structure groups co's businesses into just 3 divs grouped by mainly by product categories rather than geographies or brand groups - meaning refrigerated Campbell Soups operate separately in co from shelf-stable ones, as will refrigerated V8 items as more of those emerge. The shelf-stable, center-store items are grouped as Americas Simple Meals & Beverages, run by prexy Mark Alexander, 50, who's currently prexy of Campbell North America. Those ops amounted to $4.5 bil in sales in 2014. Pepperidge Farm, Arnott's and recently acquired Kelsen brands go into Global Biscuits & Snacks, run by prexy Luca Mignini, 52, currently running Int'l div. Unit did $2.8 bil last year and includes simple meals and bev businesses in Asia. And Bolthouse Farms prexy Jeff Dunn, 57, expands role as prexy of new Packaged Fresh div to encompass "rapidly expanding packaged fresh segments and categories across the retail perimeter," adding Campbell's retail refrigerated soup biz to Bolthouse's own fresh carrots, superpremium bevs and salad dressings, all told $1 bil in sales in fiscal 2014. Jeff, remember, ran Coca-Cola North America earlier in career.
Each div will have "targets for growth that are tied to its role in the enterprise and the scope of its marketplace opportunities," meaning "moderate" growth expanded margins for soups and shelf-stable V8 bevs but accelerating growth in already-fast-growing fresh segment. Reorg takes effect Feb 1, but co said it still has work to do to "develop specific plans" for new divs and settle on execs for subordinate leadership posts. Inevitably, co also is planning "major project to re-examine and redesign the company's cost structure."
Recall that V8 juices have had difficulty moving back into consistent growth mode after unwinding distribution alliance with Coca-Cola and move back to mix of about 100 indie DSD houses, plus broadliners and direct-ship, to restore focus to brand. Market sources say Coke did significant damage on way out, replacing V8 facings with Minute Maid items, but brand has scored obvious gains in presence in markets like NY and has stepped up innovation push: at NACS c-store show, Campbell offered plethora of new entries, from veggie-based enhanced waters to protein shakes to energy juice shot, as it seeks to get brand into faster-growing niches (BBI, Oct 13). Co also has worked to get V8 side to collaborate with Bolthouse on fresh entries, starting with item called V8 Harvest 100% Vegetable Juice. Such initiatives likely will continue, likely at accelerated rate.
Celsius Holdings said it's signed with TriStar Motorsports for 2d year of participation in NASCAR, returning Celsius to role of official energy drink of TriStar as well as associate sponsor on #8 TriStar Toyota Camry. Blake Koch will be at wheel for all 33 races in NASCAR XFinity Series. Over past year, "negative calorie" Celsius brand has been rebuilding marketing mix after earlier retrenchment via activities ranging from targeted Pandora Music buys to expanding car-racing presence.
Longtime bev vet Carl Sweat has exited - or at least taken digression from - bev sector with move to global cmo job at Hooters of America restaurant operator. Atlanta-based former Coke exec had recently departed local bevco InZone Brands, where he undertook rebranding of kids-oriented Belly Washers line to more nutritious Good2Grow line. Carl notes new assignment on his LinkedIn page even tho Hooters itself doesn't appear to have announced hiring yet. Sweat had capped long run at Coke with mgmt of acquired Fuze Beverages unit, then segued to running quercetin-based energy line FRS and then InZone job. Neither he nor InZone founder Jim Scott has commented on why InZone job concluded just as rebranded line was edging into broad distribution.
Unsweetened bevs will only get you so far with American consumers, was Tony Varni's conclusion after years of working unsweetened Noah's Sparkling Spring Water, higher-pH fizzy line in flavors like Blueberry Pomegranate and Almond, latter using produce grown by grower/bottler/distributor in Calif's Central Valley. "People said, drop a sugar cube in Noah's," Varni recalled, so that's just what co has done now with launch of Nella Bella Sparkling Spring Water Beverage, offered in 12-oz longneck glass bottles. Line was sampled at recent Fancy Food Show in SF in trio of flavors sourced from Varni's acreage: Almond Fizz, Chocolate Almond Fizz and Pistachio Crème Fizz. Lightly cane-sugar-sweetened entries clock in at modest 40 calories per bottle. Labels and 4-pack carriers sport images of orchard, heralding Varni's identity, but new brand name was deemed right way to go so as not to muddy sparkling-water image of unsweetened Noah's line. Nella Bella is mainly available out west, at SRP of $4.99-5.99 per 4-pack. As for Noah's, that's chugging along, tapping into recent enthusiasm for alkaline waters by emblazoning 8.4 pH of source of "natural alkalinity" on label, as well as presence of 110 mg per liter of magnesium. Line offered in 12-oz slim cans and longneck bottles recently went chainwide at Save Mart groceries.
Unsweetened bevs will only get you so far with American consumers, was Tony Varni's conclusion after years of working unsweetened Noah's Sparkling Spring Water, higher-pH fizzy line in flavors like Blueberry Pomegranate and Almond, latter using produce grown by grower/bottler/distributor in Calif's Central Valley. "People said, drop a sugar cube in Noah's," Varni recalled, so that's just what co has done now with launch of Nella Bella Sparkling Spring Water Beverage, offered in 12-oz longneck glass bottles. Line was sampled at recent Fancy Food Show in SF in trio of flavors sourced from Varni's acreage: Almond Fizz, Chocolate Almond Fizz and Pistachio Crème Fizz. Lightly cane-sugar-sweetened entries clock in at modest 40 calories per bottle. Labels and 4-pack carriers sport images of orchard, heralding Varni's identity, but new brand name was deemed right way to go so as not to muddy sparkling-water image of unsweetened Noah's line. Nella Bella is mainly available out west, at SRP of $4.99-5.99 per 4-pack. As for Noah's, that's chugging along, tapping into recent enthusiasm for alkaline waters by emblazoning 8.4 pH of source of "natural alkalinity" on label, as well as presence of 110 mg per liter of magnesium. Line offered in 12-oz slim cans and longneck bottles recently went chainwide at Save Mart groceries.
FANCY FOOD SHOW: Revive Kombucha Plans Petaluma Tap Room Showcasing Production, Reuse Processes
Riding brisk growth despite hand-crafted product and commitment to returnable growlers, Revive Kombucha is prepping new 30K-sq-ft plant in Petaluma, Calif, that will display full wash-to-reuse process in windowed area visible to visiting consumers, said founder/ceo Sean Lovett. New Sonoma County site is expected to be running by Jun, using custom-designed equipment that will upgrade process from what is essentially hand-bottling operation so far. Big move is being undertaken, as all other initiatives at co, with no recourse to outside capital, Lovett noted. Tho it also offers 16-oz RTD bottles and kegs, Revive is best known for returnable-bottle model, potentially unwieldy procedure that relies on consumers bringing empty bottles back to "exchange locations" like AJ's Markets in Ariz, Bristol Farms in Southern Calif, PCC stores in Pac NW and Andronico's, Nuggets and New Leaf stores in Bay Area. By now, refillables are serving entire West Coast base, Sean noted, and consumers seem to be buying in, bringing 71% of 16-oz fliptop bottles back (at $2 deposit) and 78% of 64-oz bottles back (at $5 deposit) for reuse. "Do you throw out your kitchen glass, plate or bowl every time you use it? Of course not!" co argues.
Tho co lost key distribution ally with demise of Green Shoots, it's returned to UNFI in some areas, transition eased by more practical new casepack that nonetheless manages to employ 100% post-consumer plastic. It's also filling in market and channel voids with partners such as Rock Island Refrigerated in Northern Calif. Flavor range that includes likes of Revive (with black tea), Revive Red (with hibiscus flower) and Revive Gold (using Blue Bottle coffee) will be buttressed with several more sku's at upcoming Natural Products Expo West in early Mar.
Just 6 weeks on job so far, Bai Brands cmo Michael Simon is only beginning to sort out matrix of Bai-5 brand features that include low calories, natural stevia sweetener, high antioxidants and use of coffee fruit. So this year Panera Bread vet will focus his efforts on supporting sales force, fostering greater discipline, undertaking first significant consumer research and buttressing e-commerce efforts, with view to deferring first significant national marketing efforts to late this year or early 2016.
This year, he said in interview on Mon, he expects Bai-5's growth to be driven in significant part by new distribution, as proven brand expands its presence on store shelves via distribution partner Dr Pepper Snapple Group. During this period, he views key role as being to support an effective sales force, while inculcating more discipline and efficiency. Simon also sees short-term opportunities to broaden co's e-commerce presence, diversifying beyond robust Amazon presence by dialing up brand's own Web site as e-commerce platform and pursuing other opportunities.
This coming summer, Simon hopes to test variety of marketing approaches in different markets, including billboards of type that blanketed parts of NY this past summer, weighing effectiveness of various media mixes and spend levels in prep for national push in 2016. His view of sassy billboards (BBI Oct 21) that generated considerable buzz? "Some hit it, some were not as sharp as I would like," he replied. More generally, "I feel we need to sharpen the brand positioning a little," tho no decisions will be made until more rigorous consumer research has been concluded. Among issues that need to be resolved is role of brand's great flavor in overall mix: lately "FLVR" has been key focus, thru social media, "flavor on fabric" t-shirt push and billboards with taglines like "Flavor that goes all the way on the first date." While great taste is "core piece of what we are," it remains to be determined whether it's just part of functional appeal or should carry more emotional or lifestyle weight, Michael indicated. As for coffee fruit from which Bai-5's antioxidants are derived, like founder Ben Weiss, he believes it needs to be handled gingerly, because it's hard to explain and may inaccurately connote that Bai-5 contains high caffeine levels. Simon said he's excited to work with in-house creative team assembled before his arrival under SapientNitro agency vet Chad Portas; at Panera, all in-store marketing efforts were devised in-house, tho co did use agencies for some efforts outside stores' 4 walls.
As reported, Simon boasts diverse array of related experience, including 17 years at Campbell Soup spent on its Godiva Chocolate and Pepperidge Farm brands (notably Goldfish healthier snacks) followed by heady run at fast-expanding Panera Bread bakery chain - "all premium brands in fairly large categories," he notes. At Panera part of his cmo duties included $70 mil CPG biz, mainly soups sold in perimeter of grocery stores. From perspective of those roles he's witnessed "sea change" in consumers' attitudes toward health, as they moved not just from wishing to see unhealthy ingredients deleted from the items they ate or drank but more affirmatively wishing to see fundamentally healthy formulation. Bai-5 fits that bill, and Michael said he was drawn to brand by "great product that's delivered on both health and great taste."

