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BEVNET LIVE: Showdown Winner Is Monfefo Ginger Shot, Brooklyn-Born HPP Item with Just 3 Ingredients
Brand launched by Williamsburg entrepreneur Justine Monsul consists of just 3 ingredients: cold-pressed ginger juice, lemon and honey. The graduate of Johnson & Wales culinary program and Fordham Univ psychology program said it's throwback to days when her mom would make her ginger tea with lemon and honey. It comes in longneck 1.7-oz shot bottle like those used for airport booze, HPPed for 3-month shelf life and priced at $3.99-4.99. It's currently in about 250 stores around NY tristate area.
Co was contrarian pick in lotsa ways, as judges noted: exceedingly spicy formulation that had at least one judge gasping; single sku; high price; playing in shot category that poses severe merchandising challenges and in which few have succeeded beyond 5-Hour Energy. Still, "I'm impressed with the thought leadership that went into this," offered Scott Uzzell, prexy of Coca-Cola's VEB incubation unit, a sponsor of competition. "Exceedingly well-crafted product," was verdict of Bill Weiland, founder/ceo of Presence Marketing. No reason, judges noted, that brand can't segue into other formats, from multiserve packs to RTD ginger drinks. "So this could be a good way to start out," said BevNet founder John Craven. Monsul, who received $5K check for winning Showdown, said she's already eyeing national expansion.
Judging panel seemed to be impressed by ingenuity shown by Monsul - say, 12-pack display tray that sports at bottom array of suggestions for consumption options, including drinking it straight, mixing it with warm water, adding to sparkling or still water or juice. Online orders include recipe card with similar options. She's also undertaking ShakeArt collaborations with artists. Monfefo is spicy enough for Monsul to have concluded it's wise to add warning label on back.
Red Bull Still Struggling Energy drink volume increased 3.3% last 4 wks, generally in line with category's 12-wk gain. Avg prices for segment were down slightly (-0.3%) and have been flat for 12 wks. Red Bull's decline steepened a bit to -3.1% despite 0.5% price drop in all-channel last 4 wks. Monster Energy's gain of 3.3% on avg 2.5% price increase last 4 wks was generally in line it 12-wk trend. Torrid Rockstar brand improved to 13.9% volume gain (up from +10.6% for 12 wks) on 1% price drop. PepsiCo (Amp) gains decelerated even with lower prices. Up 2.7% (vs +4.4% last 12 wks) on avg 1.1% price drop. Private-label brands slowed to 4.6% gain last 4 wks compared to +12.1% for 12 wks, +33.5% for 52 wks.
Stronger Sports Drink Trends Sports drink volume rose 2.2% last 4 wks on avg 1.2% price increase. That's up from 0.4% gain on 0.9% avg price increase for 12 wks. PEP (Gatorade) gained 1.1% (vs 0.7% decline for 12 wks) on modest 0.8% price hike last 4 wks. KO (Powerade) volume improved to 3.1% gain with avg price down 1.5% last 4 wks. Private-label brands were up solid 6.1% despite big price increase of 8.8%.
Rising Water Bottled water segment volume improved to 7.8% gain in all-channel last 4 wks at same time discounting eased to avg of -1.2%. Nestle, KO and PEP each posted stronger volume gains in this latest period including Memorial Day. Nestle's gain pace improved to +4.6% last 4 wks with avg price decrease of 3.2%, which was in line with 12-wk pricing. Coca-Cola waters were up 7.5% (up from 5.5% for 12 wks) on small (-0.7%) price reduction for 4 wks. PepsiCo gained 10.9% on steeper 4.5% price drop last 4 wks. Private-label water brands were up just over 9% in all-channel last 4 and 12 wks.
Mutant, packed in proprietary 20-oz bottle carrying Monster's distinctive claw motif if not actual brand name, was described by Sacks as a "super-soda" with tagline "refreshment energized" in Q3. It will initially go out in pair of sku's: Original (green heavy citrus flavor) and Red Dawn (red berry punch flavor). One source likened flavor to adding an ounce of Monster to 6 ounces of Dew. It carries 115 mg of caffeine per 20-oz pack, perched between CSDs and core Monster entries, but not using exact Monster energy blend. SRP is $1.99, more in line with Dew 20-oz bottle than Monster core 16-oz can. Label copy will warn users that "there is nothing soft about this drink" and describe Mutant as "defiant new breed with an attitude all of its own, an evolution of sparkling refreshment, the perfect balance of drinkability and energizing flavor." There seemed grudge element in launch, too, with Rodney noting that both Dew and its Kickstart spinoff represent CSD foray into energy space. Some have noted that in some overseas markets, like UK, Dew has taken on brand coloration that blatantly mimics Monster's black and green palette. As Sacks explained, intent is "to go after and compete with the leading CSD in the convenience-store space, which is targeting us." As reported, new brand has been designed to plug into Coke bottlers' existing blowmolding and coldfill production systems, tho initially brand will be copacked for Monster so as to minimize chance of disruption. Partners will wait on launching multipacks and other sizes until it's clear new brand has been embraced.
Hydro will be notable for offering noncarb energy/hydration hybrid seemingly along lines of some indie brands like Agua, as well as co's own Energade product years back. It's also notable for pioneering use of Invento's distinctive PET can in US, as noted here 2 weeks ago (tho at time we'd heard it might go out under E2O trademark held by MNST). As reported, Monster has exclusive on Invento's 500-ml PET can, which has clear plastic body and metal pulltop. (Invento pack soon will be seen in US in other sizes enclosing other bev brands, such as forthcoming Giggles line of kid-targeted flavored seltzers.) Hydro brand name would seem to have been chosen because it flags hydration function while sidestepping regulatory issues that can come with calling a highly flavored or sweetened brand a "water." Label copy promises "just enough of that Monster magic to get you fired up." Key aim seems to be to broaden demo considerably beyond core energy users; Wells Fargo's Bonnie Herzog, who follows c-store category closely, believes Hydro could do much to boost MNST's performance among female demo where brand lags. Label copy makes reference to Waterworld movie that depicted world after ice caps have melted (and which featured water called hydro). It will be priced at $2.69 and up, like Monster's core 16-oz energy sku's.
Current expectation is to launch Mutant in Q3 and Hydro in Q4 tho schedule is still fluid. As reported earlier this month, there was some resistance by KO execs to allowing MNST to take plunge into soda aisle tho company eventually came around. Even within MNST, execs acknowledged trepidation KO execs might feel before such a big step. "It opens a Pandora's box," noted one source close to co. In allowing co to work directly with Coke bottling system on these, "it's like they're letting us date their wife." Crucial will be getting Mutant into CSD doors outside Coke's own space, and maintaining pricing, coupla sources indicated.
Steaz organic teas has expanded into Walgreens drug chain and its Duane Reade unit in NY with its Peach, Super Fruit and Grapefruit Honey green tea flavors. All told, that comes to 3,900 new retail doors for iced-tea line . . . LA-based Juiceology has intro'd beet-based flavor called Red Elements, melding beets with carrots, red berries, apples and hint of ginger and turmeric, starting at Giant Eagle chain. Item contains only 130 calories per 15-oz bottle, priced like rest of line at $2.99 . . . Coffee Bean & Tea Leaf has named JJ Smith as vp of franchise operations & biz development, after career spent at Dunkin' Donuts, Pinkberry and B. Good. He reports to prexy/ceo John Fuller.
"Flavor up," Sparkling Ice will be commanding its users this summer, as Seattle-based parent Talking Rain embarks on most integrated shopper marketing program behind brand, including first consumer-focused loyalty program.
As detailed today by Sarah Gustat, natl customer marketing mgr, and Nina Morrison, vp community & customer relations, effort seeks to give each flavor of diverse Ice range a distinctive personality - say, "tall, dark & tasty" for Raspberry, as it seeks to win over new users, while stoking repeat purchases among existing users with swag ranging from tube coolers to Bluetooth speakers. Contextual component will steer consumers who visit recipes.com to Live It Up section of Ice site for things like rosemary peach lemonade recipe using Ice, as well as activities on tips for moms struggling to keep the kids occupied while school's out. Effort is tied to robust media schedule outside stores - say, cab and bus ads in NY heralding particular flavors with sassy copy like "Drop Red Delicious" and "Now Trending." Out-of-home ads also will appear in key markets like Chicago, LA, Miami, Seattle and Phoenix. Agency is Minneapolis office of Westport, Conn-based Catapult Marketing.
On events side, also under Flavor Up rubric, brand this fall will target 25 high schools from heartland markets south to Atlanta via tie to High School Nation arts contests involving spin art, dancing and other activities.
Alkaline water Aquahydrate continues to expand retail availability, as celeb investor/endorsers Sean "Diddy" Combs and Mark Wahlberg dial up their support to more overt presence behind brand. Moves come as LA-based co is embarked on another capital raise, aiming for $20 mil primarily from new investors, with process managed by Combs Enterprises cfo Tony Abrahams. And as anticipated last year (BBI, Aug 20), another investor/endorser, fitness guru Jillian Michaels, might be close to stepping up her role behind brand.
Under ceo Hal Kravitz, a Coke vet who came in after period of drift under prior mgmt, Aquahydrate has been refining messaging surrounding its high antioxidant content as sports drink alternative while straightening out operational issues and aggressively building retail within exploding alkaline segment that numbers brands like Essentia, Eternal and Evamor. "Get more from your water," is brand mantra. Within healthy bottled water segment that's rising mid-single-digits, high-end brands have been growing by nearly 20% in trailing Nielsen 52-week data, and subset of alkaline waters more than 50%, Hal said. Unlike some celeb partners, Combs and Wahlberg have been available to work trade side of things, and Combs participates in all marketing decisions, even while working a combined 45 mil in social-media followers. Lately they've participated in photo shoot that will finally see their images prominently displayed on truck sides and backs and POS, and they'll be in endemic print run within American Media fitness mags, said brand mgr Evan Cunningham. Out-of-home and TV are possibilities down road, Hal said. Kravitz also is hopeful that footage shot of Aquahydrate execs during Crescent Crown kickoff in New Orleans last year will appear on Wahlberg's Wahlbergers TV show on A&E network this Jul.
As for Michaels, she's on speaker roster at this week's BevNet Live conference in NY, and announcement of expanded role could come imminently. An icon among females coveted by Aquahydrate to balance its heavy male skew, Michaels would add 5 mil more social media followers to the 45 mil mustered by Combs and Wahlberg. She's earlier played key role building such newer brands as Popchips and Krave Jerky and would bring connections to active slate of activities running from reality shows to videos. (With her biz partner Giancarlo Chersich, Michaels lately has assumed control of Las Vegas-based Lucky Jack Organic Coffee.)
Meanwhile, Aquahydrate continues with retail landgrab. This month it goes national within 4,500-unit Rite Aid chain after successful performance in 800 stores mainly out west. It buttresses regional presence in Walgreens and CVS chains as test of how well drug channel will perform. After going national within Kroger network toward end of 2015, brand is in midst of first national promo with all grocer's banners. And after a successful test, Aquahydrate is entering Target's Southern Calif stores in early Aug, all of them served via DSD network. Hal figures brand is in 50K outlets today, both measured and unmeasured.
LA-based co employs close to 50, but has been tilting staff resources more toward field, adding biz development mgrs to better leverage retail platform. By now it's built field marketing force in 6 key cities. Conclusion of capital raise will enable Kravitz, who's been wearing many hats himself, to recruit cmo and mid-level operations expert to oversee mfg at copacking plants on both coasts (co continues to seek production site in Midwest, too). With c-stores and fitness channel viewed as key velocity builders, brand recently added fitness specialist Europa to distribution mix.
Meanwhile, packaging mix continues to grow, and co has gotten more aggressive on price in effort to draw in new users. A promo of 1-liter bottles at 4 for $5 in Kroger is most aggressive yet, but big surprise has been takeup of blue-handled gallon pack unveiled at last year's big NACS c-store show. Tho devised mainly for fitness channel, it's been jumped on by general retailers like Texas' HEB chain, which has seen them move quickly despite $4.99-5.99 price aside conventional water brands at $1.99 in that size. So it's clearly viewed as value solution by regular users. Co is just restoring inventories of pack, whose components are sourced from several countries, after demand outran supply.
As Budweiser goes undercover as "America" this summer, Snapple is similarly looking to ride nation's election fever and patriotic fervor. It just launched limited-time Oh Say Can You Tea (black tea with strawberry and hint of mint), available thru Jul 4, backed by TV ad that pokes fun at old Mass law that makes it illegal to dance to national anthem. That will be followed in Sep by Snapple TEAcision 2016 in Red Fruit (pom, raspberry, cherry) and Blue Fruit (blueberry and blackberry) flavors that will debate each other via consumer taste tests. They're available thru election season backed by ad heralding fact that astronauts are allowed to vote from outer space. Meanwhile, Dr Pepper Snapple-owned brand will work Philadelphia, St Louis and other key political venues with stunt in which actor Michael Rapaport rides wrapped Snapple "Break State Bus" as platform for debate with consumers about anything but politics. Efforts offer touch of disarming whimsy long associated with marketing of rival Honest Tea brand, owned by Coke . . . PepsiCo's Aquafina tap water brand has launched first film partnership via forthcoming Ice Age: Collision Course, due Jul 22. Related activation will offer grand prize of 2 trips to Astronaut Training Experience at Kennedy Space Center in Fla. Effort kicks off Sun . . . Something is happening - or not happening - with Diet Pepsi, but nobody outside PEP seems to know what it is. Wall St Jnl broke story this week that something's up with foundering diet soda, whose swap of sucralose for aspartame hasn't succeeded in flagging decline, but couldn't offer up any theories as to whether it's reformulation, marketing shift or something else. Topic was to be discussed at bottler meeting which subsequent Jnl scoop revealed to have been postponed or canceled, for reasons that remain equally unclear. In other words, Diet Pepsi now is even making news by not making news.
With Loan to Canteen Café, Whole Foods Hits $20 Mil Mark in Low-Interest Support of Indie Suppliers
Marketers of early-stage brands may be worried that centralization push will make Whole Foods chain harder to crack, but Austin-based retailer isn't backing off another program that's proved boon to some marketers: its low-interest Local Producer Loan Program. Co said 19-year-old LPLP just cracked $20 mil mark a coupla weeks ago with loan provided to Portland, Ore-based Canteen, café and juice bar that will open space in forthcoming 365 banner opening in Lake Oswego suburb. "We are privileged to work with such dedicated and driven loan recipients, and are so proud to play a part in their growth by providing mentorship and guidance, as well as capital," said Betsy Foster, Whole Foods Market's global vp of growth and development. "We have loved working with our recipients to innovate, and collaborating to advance healthy ingredients and sustainable farming practices while creating some new household names." In all, LPLP program has provided 310 loans to 252 recipients in 42 states and 2 Canadian provinces, with avg principal of $65K and avg interest rate of 5%. Recipients have used cash to purchase livestock, invest in new equipment, expand plants, adapt to more sustainable practices or convert to organic production, Whole Foods said. Some 48% are women-owned businesses. Perusal of program's Web site. indicates such bev-related loan recipients as Red Jacket Orchards, Geneva, NY; TumericAlive (now Temple Turmeric), NY; BeeSweet Lemonade, Austin; Daily Greens, Austin; Progress Coffee, Austin, and Townshend's Tea, Portland, Ore.
Everyone knows the Lone Star State is its own country, jokes Pickle Juice Co's vp global development, Filip Keuppens. So it's really not so strange that Pickle Juice Co has waited nearly 15 years before making its first concerted foray beyond boundaries of Texas last year. Now it's stepping up push, moving into broadline distributors KeHe and UNFI in coming weeks, targeting regional grocers from Maryland west to Calif, and signing deal with NBC as sponsor of Tour de France coverage.
Brand was launched out of Mesquite, Tex, by former Kroger store mgr Brandon Brooks in 2001, inspired by NFL game in late summer 2000 in which Eagles team coached by Andy Reid outlasted Cowboys in withering heat by resorting to folk remedy, pickle juice. Brooks proceeded to experiment with various formulations of pickle brine, omitting different key ingredient each time to isolate source of benefit in alleviating muscle cramps. That proved to be not so much the electrolytes as the vinegar. Recipe was successively refined, particularly after 2010 study showed that mechanism wasn't physiological but neurological, with acetic acid acting as neural inhibitor. So co argues it offers improvement on basic pickle brine thanks to use of double-filtered purified water, proprietary vinegar grain chosen for efficacy as inhibitor, and fortification with vitamins and 14X electrolytes of conventional sports drinks. Over past year, co has eliminated all non-essential and artificial ingredients, cutting over Extra Strength Pickle Juice Shot to 100% natural status in Mar. Only barrier to organic certification is difficulty finding organic source of dill weed, used as emulsifier, said Keuppens, who joined co last year.
With product line set and Keuppens aboard, Pickle Juice is ready to step up marketing - albeit, only activities where co can be assured of concrete ROI, he was quick to add. In familiar conundrum, Filip says brand has been embraced by teams playing in Big 12, SEC, NFL and Major League Baseball but co can't market against that because of teams' existing sports-drink contracts. But as word trickles out among trainers, brand's credibility and awareness has been rising. Pickle Juice also just opened office in Australia after being approached by football league there, and earlier launched operation in Mexico. Discussions also are under way with major cricket-playing nation, Keuppens said. Brand is in major grocers in Texas like HEB, Brookshire's and Kroger units, but outside state it mainly has been available in endemic channels like bicycle retailers and 200-unit Academy Sporting Goods chain as well as online. It's employed modest amount of DSD, including Infinity in Dallas, and is open to more, Filip said.
After using outside copackers for first 15 years, co inaugurated its own production line in Mesquite last year, with capacity of 9K bottles per hr. Since all 4 package formats from 2.5-oz shot to quart bottle use 28-mm cap, line can manage entire product range, with just a few hours needed to cut over from one pack to next.