BMI Archives Entry

BMI Archives Entry

PepsiCo is tiptoeing further into real-sugar base for CSDs, launching media campaign highlighting name and ingredient shift for Sierra Mist to Sierra Mist Natural. Reformulated line dumps HFCS in favor of real sugar and contains no preservatives or additives, reported Brandweek. TV spots via Goodby, Silverstein & Partners, SF, will "communicate Sierra Mist Natural's new positioning by showing a variety of 'nature experts' - rocks, trees and a rainbow - craving for the product," mag wrote. Print and digital ads are also in mix. PEP didn't disclose size of investment except to note it will be "putting a full year's worth of media investment into the 4th quarter" to support brand's relaunch.  

With initial market in south Fla via Dr Pepper Snapple Group alliance going well, Vita Coco is heading into planning meetings with distribution ally expecting to be mapping out national rollout during course of 2011. Ceo Mike Kirban said he expects brand to be 100% available by next Nov 1, employing DPS network in all new markets. Incumbent distributors, such as Exclusive in NY and Columbia in Pac NW, are grandfathered in. Confirmation of rollout comes as Vita Coco, like its key rivals, continues to dial up marketing now that it's gotten over hump of supply shortages (tho product still doesn't linger in warehouses before being shipped out to fulfill demand). NY-based co is using rooftop illuminated signs on NY cabs to get out message, as well as ad running on in-cab display screens and on Jet Blue flights. Amusing ad shows guy struggling to machete open a coconut in his kitchen, until it's brought to his attention that he can simply consume Vita Coco out of aseptic box. Ad plays on fresh-from-coconut positioning employed by segment during general-market push; to play up contrast vs from-concentrate plastic bottles launched by rival Zico this past summer, newest runs of VC are getting front-panel slogan declaring, "Never from concentrate." Mike said co has no plans to add plastic bottle to mix. On retail front, it's expanding presence of fridge packs in Costco chain, moving from Southeast to tests in Northeast, Mid-Atlantic States and Southern Calif. Tho co may go to lead investor Verlinvest for additional working capital, Kirban said co continues to operate conservatively, eking out "slightly profitable" mo rather than burning capital in rush to build biz.  

It could go down as 1 of more brilliant marketing moves in Snapple's storied, and checkered, history: Celebrity Apprentice tie-in, and accompanying new-product launches, is credited with doing a lot to get long-declining brand back into brisk growth mode. How to match that? Brand owner Dr Pepper Snapple Group apparently is eyin' another hot TV reality property to keep energy level high: The Amazing Race. As co makes rounds of regional meetings with distribs, DPS apparently is laying groundwork for tie-in with perennially Emmy-winning show on-air since 01. More details as we hear 'em.  

Energy drink volume surged 13.1% in c-stores for 4 wks thru Sep 4, up from 12% gain prior month, per Nielsen data reported by UBS' Kaumil Gajrawala. Segment's $$ sales accelerated, too, up 13.5% for 4 wks vs 12% gain prior period. That made for "2d-strongest month in several years," noted Kaumil. He points out that Nielsen figures don't include co's Peace Tea line or its int'l biz, which offer "further upside." For 12 wks, energy volume and sales rose 12% in c-stores. He didn't offer breakout for all of top players, but reported that Monster still outperformed segment, with volume rising 16.5% and 16% for 4-wk period. That's a bit behind brand's 18.2% gain pace over last 12 wks but still very strong.  

With conspicuous success of Calypso drawing range of lemonade entrants, Hansen Natural is throwin' hat in ring, planning debut at upcoming NACS show of Hubert's Lemonade, named for co's founder. All-natural line is packed in 16-oz glass bottles and sweetened with cane sugar, taking flexible route to market rather than being targeted toward either Bud or Coke networks, where it splits US territory for biggest brand, Monster Energy. Label apparently sports image of lemon face. Move comes as King Juice's Calypso has proved sleeper hit for distributors even in not-always-roasty climates like Minn and Alaska, with consumers responding to full, sweet taste profile and simple proposition that contrasts with complicated nutraceutical messages being issued by many brands. It's believed to be on track to hit 1.6 mil 12-unit cases in 2010. Not surprisingly, its conspicuous success is starting to draw rivals, including lemonade subline launched in past year by tea marketer New Leaf Brands, not to mention lotsa tea/lemonade blends. Hansen's use of Hubert's brand name seems apropros, given identity of founder with fresh juice. As co Web site recounts: "In 1935, Hubert Hansen's simple motto 'only the best will do' earned him a loyal following among Hollywood movie studios who clamored for his all-natural fresh juices. From these humble beginnings, a star was born."

Meanwhile, Hansen is proceeding with new take on energy shot after failure of earlier play, Hitman. New entry, dubbed Works, is not branded with either Monster or Hansen name, and apparently is targeted exclusively for Coke network, starting with CCE, which has seen NOS- and Full Throttle-branded shots fade. Launch is expected in Nov. It's unclear yet what tack branding direction will take; tho "works" can carry drug-culture overtones, it's presumed branding will be more benign, esp for item headed into Coke system.  

In unusual move, Coke bottler is purchasing contiguous Bud houses for its first foray into beer biz. Chesterman Co, 5th-generation Coke bottler in Sioux City, Ia, has deal to buy 2 smaller contiguous Anheuser-Busch houses, Whittenburg Dist in Spencer and Kabrick Dist in Britt, totaling 1.6 mil cases, pending supplier approval, BBI's sibling publication Insights Express reported. Not too many Coke bottlers have become beer distribs . . . Boston is latest big city to consider banning bevs from public buildings. City's "convened influential health, education, and housing leaders to develop a policy that aims to reduce consumption of sugar-sweetened beverages," Boston Globe reported. Even as public health officials express reservations about such a move, "it appears inevitable that some measure will be adopted," paper said, since city promised, at time it received $12.5 mil federal stimulus grant to combat obesity and tobacco, that it would "decrease consumption of sugar-sweetened beverages through counter-advertising and policy change,'' according to city document cited by paper. "I think we're going to run into a big issue of people saying, 'Why would you take away our sodas, why are you interfering with what we're eating and drinking?'" asked Barbara Ferrer, exec dir of Boston Public Health Commission. "Unlike tobacco that is always harmful and if a person is smoking in the workplace it harms other people, I think people will look at sugar-sweetened beverages differently."  

After Federal Trade Commission crackdown on label claims has threatened to derail brand, Pom Wonderful has counterattacked, suing agency on grounds that it abruptly changed criteria used in determining whether ads are "false and deceptive." Suit filed Sep 13 argues that agency never before demanded prior approval of disease claims, as long as they're backed by scientific evidence, and also cites violation of advertisers' First Amendment rights. Ad Age noted "juicy irony" in Pom's willingness to legally pursue other juice brands, including Welch's, Tropicana and Minute Maid, over their own claims. 

Abbott Labs, whose EAS Myoplex has been showing legs in protein-bev sweepstakes, has extended its EAS franchise with EAS Peak, sports nutrition performance bev that offers proprietary P3 blend intended to sustain energy, increase workout capacity and protect muscles from breakdown. Internally developed line offers proprietary blend of beta-alanine (which buffers exercise-related acidity in muscles to delay fatigue), isomaltulose (which maintains blood glucose levels over longer period) and HMB (beta-hydroxy-beta-methylbutyrate, which slows muscle protein breakdown). Line carries 10 grams of protein per serving and launches in 16-oz packs in Orange Spark, Peach Surge and Fruit Power flavors. Co is targeting sports nutrition sections of grocers, druggists and other mass retailers. 

Stevia marketer PureCircle is launching marketing effort dubbed "We grow joy" behind new labeling system that features trust mark flagging zero-calorie, truly natural sweetener. Brandweek magazine reported that new campaign via agency RSCG in Chicago will feature co-branded ads with Silk brand showing pair of soymilk bottles shooting out of a flower, along with exhortation to "Taste the sweetness of nature." Ads will run in female-targeted books like Every Day with Rachel Ray, Whole Living and Shape, Brandweek reported. The trust mark is being adopted by Silk, True Lemonade and other marketers, including some involved with tabletop sweeteners and flavored waters.  

Deutsche Bank has put private-label king Cott back on buy list, saying new management team has returned co "to the basics for success: lean infrastructure, disciplined cost management, quality low-cost product, healthy customer relations, sound balance sheet." Coming off meetings at co's Tampa, Fla, hq, analysts Marc Greenberg and Andrew Kiely concluded that crucial Walmart relationship "has stepped back from the abyss" reached 2 yrs ago when gigaretailer declined to renew exclusive contract. "This was partially due to Walmart's policy against exclusivity in general, but it did not sound a ringing endorsement of Cott's weakened financial performance at the time or its experiments with branded products," which have since been abandoned. But Cott still produces 100% of Walmart's private-label CSDs and its recent acquisition of juice producer Cliffstar provides hedge vs Walmart's dialing down reliance on Cott as CSD supplier, analysts reason. They also laud Cott's capability to innovate as "fast follower" of branded players, citing its energy-drink forays as well as its building competence in single-serve bevs, organics, enhanced water and smoothies.