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Organic Valley seems to be hitting jackpot again with viral ad. This time it's via "Organic Balance: Real Morning Report" that humorously portrays how far the morning routines of harried women are from what you see in yoga ads. Ad received 776K views in ranking compiled by Adweek mag and Google's YouTube Ads Leaderboards, which measures ads that are clearly marked as such according to matrix of paid views, organic views and audience retention (how long viewers stuck with video). "Real Morning Report" success follows impressive run last year of "Save the Bros" campaign from organic farm co-op. Among established cos, Gatorade's "Dear Peyton" ad made list with 3 mil views. Apple had several entries on most-viewed list. Ads can be viewed here
. . . Now that it's significant grocer to the nation, online juggernaut Amazon is getting ready to enter private-label realm, with brands like Happy Belly, Wickedly Prime and Mama Bear that include "nuts, spices, tea, coffee, baby food and vitamins, as well as household items such as diapers and laundry detergents," Wall St Jnl reported. Amazon wouldn't comment and there's no word that we've seen so far on whether list will include any RTD items.
. . . Now that it's significant grocer to the nation, online juggernaut Amazon is getting ready to enter private-label realm, with brands like Happy Belly, Wickedly Prime and Mama Bear that include "nuts, spices, tea, coffee, baby food and vitamins, as well as household items such as diapers and laundry detergents," Wall St Jnl reported. Amazon wouldn't comment and there's no word that we've seen so far on whether list will include any RTD items.
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Reader has sent in photo showing 15-unit variety packs of Bai Antioxidant Infusions at $15.99 at NY-area Costco stores, $19.99 minus $4 mfr's rebate.
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05/16/2016
Minta Ready with Tea in a Box Offering
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All told, operation required $4 mil investment, said cofounder and "rootmaster" Finkel, a self-described refugee from corporate world. Finkel, who'd founded Prism Capital, partnered with brewing authority and author Randy Mosher on venture, which offers what to many is most sophisticated take on alcoholic root beers and cream sodas that have been proliferating under brands like Not Your Father's Root Beer and Coney Island Root Beer. Finkel's team ransacks range of roots, herbs, blossoms and other ingredients to create brews like Shady Character Porter (brewed with American black walnut, licorice and roasted chestnuts) and WPA Wildflower Pale Ale (with marigold, elderflower and sweet osmanthus flowers). "Tap into the underground" is motto - not far removed from Tractor Soda's "bringing soda back to its roots" (above). Clearly, some entrepreneurs believe consumers are ready to get their hands dirty again in their bev selections.
Creations are brewed in 15-bbl system buttressed by pair of flavor infusers, one on hot side and another in cellar for post-fermentation cold extractions, that brewer BJ Pichman has described as "pressured rockets" able to extract the most out of ingredient bill. Compact 8-head bottling line can handle size range of 12-oz, 22-oz and 750-ml bottles with quick changeovers. Finkel anticipates doing in 3-4K bbl of volume this year. Among other changes co is making now that taproom is up and running, it's tweaking labels from murky, earth-toned labels that captured rootsy premise to more refined look featuring line drawings from top botanical illustrator. The repricing will keep brand at premium to local faves like Revolution but move it out of luxury realm.
Extensive range available at taproom during BBI visit ranged from Divine Mud of single-origin chocolate-based beers such as Heavy Petal Imperial Stout, a chocolate bomb that employs cacao mass rather than nibs, to Green Eyes, a chartreuse-infused coffee beer. Cherry Amaro, an admitted mistake, used cherry stems and bark but omitted the fruit itself, yet still proved popular enough to go into 22-oz bottles as specialty offering off-premise. Co manages to play in booming IPA realm without undermining core premise by harnessing special German hop called The Jacob Hop with low alpha acid content to create Jacob IPA that carries delicate hop aromas but almost no bitterness. In addition to botanical beers, co also has devised set of elixirs such as marigold-infused honey and roasted blood orange that can be poured into weissbier, following old German tradition.
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Founder Travis Potter grew up on Calif ranch and segued to organic sector after several family members died premature deaths from cancer and other causes, moving thru ventures involving organic beef, then organic dairy products like milk, creamers, yogurt and kefir. When prospective partners in organic burger chain veered off into other interests, Potter continued on idea to plug key void in healthy-eatery offerings: organic, lower-sugar, often-functional bevs, laying groundwork for Tractor Soda nearly 4 years ago. It's fountain-only play that promises to be "bringing soda back to its roots," per slogan.
Result is broad line of organic and non-GMO sodas that are suited for any culinary occasion, ethnic food specialty, seasonal event or cocktail concept, with flavors like Cherry Cream (with licorice and nutmeg), Cucumber (with spirulina), Orange N' Cardamom (with vanilla and turmeric), Cabernet Soda and Rose Soda. On way are another set of items that work well as noncarb items (tho most can be dispensed with carbonation too), including Meyer Lemonade, Matcha Tea (with spirulina), Chai Tea (with cardamom and clove) and Jamaica (hibiscus and ginger). And coming later this year, as weather cools, will be so-called Haymaker vinegar-based subline reprising old colonial-era elixir that farmers' wives brought to their husbands in field at harvest time to reduce leg cramps and hay fever. It will debut in flavors like Pomegranate, Ginger Honey and Strawberry Rhubarb. Most come in around 20 calories per 12-oz serving using blend of cane sugar and stevia. Because co uses burnt sugar as substitute for caramel coloring, entirely sugar-free offerings won't enter mix. Pricing nets out at about 40-45 cents per cup to retailers, clear premium to mass CSDs but offering comfortable margin at premium price that culinarily intriguing, organic brand can command. Potter believes it's way for food chains to stem flight of soda drinkers from lucrative revenue stream. "What mom is not going to let her kid have an organic cucumber soda?" he asked. Co also has offered Snow Plow organic slushies in flavors like Cucumber and Coconut.
Working with wide network of allies and suppliers, Travis told BBI that he's found way to employ aseptic processing techniques to produce bag-in-box items boasting year-long shelf life, 1 month after tapping. Until now Potter has taken deliberate, almost clinical, approach to analyzing brand's appeal, launching last fall in metros like SF, Chicago, Boston and Atlanta, as well as smaller cities in heartland markets like Ohio and Okla.r. It's in fast-casual restaurant chains like Lemonade in Calif as well as around 50 c-stores, including Fasttrack chain in upstate NY. But now he's lined up Dot Foods to help hit goal of 10K doors by year-end. He may move into bottled items down road but is in no rush to do so. Potter preferred to say little about his partners tho he said co is well funded and not in hunt for capital right now. Advisors he's tapping include bev vet Kevin Sherman, who's been at Bazi Int'l and True Drinks, as well as former Chipotle exec Joel Holland and craft brewer whom Travis declined to ID. Brand info at TractorSodaCo.com.
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05/16/2016
ANALYSIS: Peltz Heads for Exit, and PepsiCo Prevails without Making Strategic Concessions
So who was real winner? Financially, there's no question Trian scored terrific exit - selling out for nearly $2 bil, or 50% return on investment he began accumulating in 2012. But it's hard to see how Peltz prevailed on strategic front, aside from placing on PEP board an ally, ex-Heinz ceo William Johnson, who'll remain on panel. "Trian believes PepsiCo has addressed many operational issues identified by Trian - management has increased productivity efforts, reduced overhead, increased advertising investment, and delivered consistent earnings growth on a constant currency basis," Trian said in statement issued Fri. "The market has viewed these developments positively and PepsiCo currently trades at a substantially higher multiple than at the time of Trian's initial investment in late 2012."
True, but it's hard to conclude PepsiCo wouldn't have embarked on similar plan absent Peltz's presence, considering that its archrival Coca-Cola has acted no differently, without outside pressure to do so. Meanwhile, tho rhetoric has evolved from former "Power of One" slogan, PEP brass has remained unabashed about benefits of uniting food and bev brands under one roof, losing no opportunity to point out combined brands' importance to retailers and foodservice players and noting other ways the 2 sides of co support each other, even as co broadens role of healthier items within both. Some skeptics of current Pepsi leadership still argue that separately operating bev unit would likely enjoy greater focus and stronger exec bench than one they perceive to take back seat to Frito; it might also prompt PEP to rethink commitment to managing its own distribution within US, which some view as counterproductive. But bottom line seems to be that PEP weathered storm, leaving chmn/ceo Indra Nooyi free to continue to pursue strategy that she never wavered from, even with Peltz's gunsights trained upon her.
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Count Santa Cruz Organic as latest marketer to attempt to crack tuff segment of gringo-oriented agua fresca bevs. JM Smucker unit is offering lightly sweetened, organic subline in trio of flavors in multiserve format: Pomegranate, Mango Passionfruit and Grapefruit. Line employing organic fruit juice and splash of lemon juice is packed in 32-oz glass bottles commanding $3.20-$3.49 at retail. They're certified as organic and non-GMO but are being sold into both natural and conventional grocers. They contain 60 calories per 8-oz serving. Note that segment has proved difficult to crack over years, both by major players like Nestle and by startups like Coba.
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Recall Milwaukee-based King is copacker that has ridden Calypso to uncommon success, enough to become workhorse of co. Owner Tim Kezman elevated longtime sales consultant Jeff Outlaw to staff post as prexy a coupla years back, and Jeff recently rounded out his top-mgmt team with recruitment of Paul Burleson as vp of field sales. Paul is well-traveled vet of new-age biz, most recently at Vita Coco coconut water. He completes triumvirate of immediate reports to Outlaw that also includes vp marketing Andy Sands and vp natl accts Bill Stineman.
On new-product front, this summer was to bring first seasonal flavor for brand: Paradise Punch, subtly formulated sweet-and-sour entry that accedes to longstanding requests of consumers but reaches beyond other brands' bright-red, very sweet punches targeting inner city. As it happens, tho, co isn't sticking to plan on that one: strong embrace from Wawa and other retailers made it instantly clear that flavor is a keeper. So it will duly launch around Memorial Day but will stay in mix rather than getting pulled once cooler weather arrives. Co can try again on a seasonal in fall or winter.
Co is taking more deliberate path with new 15-oz cans, testing them in Walgreens' Wis stores and in Kroger's Smith's banner, most mature grocery partner for Calypso's core 20-oz glass bottles. Co will accumulate key learning from that before making any decisions on rollout, Jeff indicated.
On retail front, it's tripled Plan-o-Gram allocation within Walmart chain. It's finally cracked first Safeway banners, in Pacific NW (tho co's Albertsons network has already carried brand) and completed Kroger network with move into Food4Less and Fred Meyer divs.
As with many other brands, DSD distribution remains a 2 steps forward, 1 step back. Having ownership stake in some small distributorships in South, Outlaw has good window into changes roiling DSD. Calypso has completed network in difficult Tex market, moving into all L&F branches and adding MillerCoors house Capitol in Austin, among others. It's also revamped network in NJ, seguing from Peerless operation that was relying more on subs for its NAs to members of NIDA network: Fisher-Thompson, High Grade, Seaview and Nash. They're off to "phenomenal" start, Jeff reported. (Philadelphia distributor Metro also has a piece of southern NJ.) Across river, in NYC, Calypso has moved thru indy house Preferred for past coupla years.
But Fla remains a problem, especially now that Brown Distributing has sold off statewide network beyond its Palm Beach County Bud footprint, leaving other Bud houses in state flush with new craft brands and sometimes questioning need to maintain their handful of NAs. More broadly, like other brands, Calypso continues to navigate shockwave of Monster Energy exit from Bud network, tho Outlaw is happy to say his brand hasn't lost any partners yet as they regroup. Calypso's DSD network nets out at about one-third Bud houses, one-third MillerCoors and one third all-other, including some indie Coke and DPS bottlers. More broadly, on beer side, "we've had to raise our game" to counter wholesalers' infatuation with craft beers, using syndicated data to show how Calypso often offers greater profit per sku.
Too early to disclose marketing plan, Outlaw said. His team is honing Calypso Cares initiative to structure co's longstanding charitable activities more cohesively, and continues in talks with spirits houses and brands that it can partner with on Calypso as a mixer, in way ginger brew marketer Reed's has successfully done with Pernod. By now, recipe page has become most visited section of brand's website, showing that's how lotsa consumers are using brand. In meantime, co has managed some local efforts - whether cobranded displays with vodka brands at grocers or bartender recipe contests - and hopes to find effective ways to exploit Natl Lemonade Day in Aug.
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TD width="100%" colSpan=2>Record domestic biz in first qtr was offset by continued distribution glitches in Europe to cause 20.9% drop in Celsius Holdings sales to $3.68 mil, but ceo Gerry David assured investors light is at end of tunnel and Celsius calorie-burning brand is on cusp of explosive growth. Fla-based co suffered operating loss of $1.14 mil, reversing $378K profit a year earlier. Meanwhile, CELH said it extended endorsement/licensing deal with clean-living Florida rapper Flo Rida, who's got Celsius pre-workout powder called Flo Fusion and who hasn't hesitated to get his hands dirty in trade, say, by selling in Sparkling Watermelon flavor to Vitamin Shoppe and Peach Mango flavor to Gold's Gym. He came aboard 2 years ago.
Domestic sales surged 79% to $2.7 mil thanks to more doubling of retail sales (+103%), 43% surge in online biz and 16% gain in fitness channel. Tho some of retail spike was attributable to pipeline fill at 8K+ new doors at 7-Eleven and Sunoco c-store chains, biz still surged 50% if those sales are excluded. But int'l sales plunged by 68%, or $2.1 mil, due to stumbles at Finland-based distributor Funk Food following its acquisition of small Swedish distributor that had established brand in Europe. David assured investors that, following meetings with new Funk mgmt team led by Coke vet, he anticipates things will quickly get back on track. Indeed, Funk's intro of new sparkling Raspberry Acai flavor in Sweden sold out in 6 weeks, spurring partner to broaden range of items sold there and to launch flavor in Finland, too. Meanwhile, working with strategic investor Li Ka-Shing, a Hong Kong billionaire, co continues to invest in regulatory and marketing research in preparation of Asian launch.
Why Celsius Is Hitting the Gas On conference call last night, longtime investor expressed appreciation for turnaround David has commenced but wondered when co would start to notch profits that might chisel down deficit that by now has accumulated to $52 mil. That prompted disquisition by ceo on rationale in bev biz to move beyond modest organic growth rate.
Gerry noted that co had shown profit in Q4 of 2014 and Q1 of 2015, and was cash-flow-positive in Q2 of 2015. But mgmt team "made a conscious decision that we needed to accelerate our growth," given benefits conferred by volume in bev biz in lowering costs and building momentum. So co made conscious decision at toward end of Q2 last year to hit gas, using new capital from strategic investors (who also include hiphop mogul Russell Simmons and his ex-wife, fashion designer Kimora Lee Simmons) to broaden marketing efforts that had been fine-tuned in 6 "drill-deep" markets and to lay groundwork for major push into Asia. As reported, co has been broadening marketing effort that panned out successfully in half dozen "drill-deep" markets while recruiting extensive roster of bev vets to accelerate growth, including Natl Bev vet Vanessa Walker as sales/marketing chief and array of senior sales execs for retail and fitness channels. Coke vet and Aquahydrate ceo Hal Kravitz just joined board, too. Efforts leave co "at the cusp here of explosive growth on the international side and seeing strong growth now on the domestic side," David noted. Market seems to be buying in, ceo implied, noting that shares trading at 28 cents upon his arrival 4 years ago now trade at $2.50. They edged down slightly in trading today.
Domestic sales surged 79% to $2.7 mil thanks to more doubling of retail sales (+103%), 43% surge in online biz and 16% gain in fitness channel. Tho some of retail spike was attributable to pipeline fill at 8K+ new doors at 7-Eleven and Sunoco c-store chains, biz still surged 50% if those sales are excluded. But int'l sales plunged by 68%, or $2.1 mil, due to stumbles at Finland-based distributor Funk Food following its acquisition of small Swedish distributor that had established brand in Europe. David assured investors that, following meetings with new Funk mgmt team led by Coke vet, he anticipates things will quickly get back on track. Indeed, Funk's intro of new sparkling Raspberry Acai flavor in Sweden sold out in 6 weeks, spurring partner to broaden range of items sold there and to launch flavor in Finland, too. Meanwhile, working with strategic investor Li Ka-Shing, a Hong Kong billionaire, co continues to invest in regulatory and marketing research in preparation of Asian launch.
Why Celsius Is Hitting the Gas On conference call last night, longtime investor expressed appreciation for turnaround David has commenced but wondered when co would start to notch profits that might chisel down deficit that by now has accumulated to $52 mil. That prompted disquisition by ceo on rationale in bev biz to move beyond modest organic growth rate.
Gerry noted that co had shown profit in Q4 of 2014 and Q1 of 2015, and was cash-flow-positive in Q2 of 2015. But mgmt team "made a conscious decision that we needed to accelerate our growth," given benefits conferred by volume in bev biz in lowering costs and building momentum. So co made conscious decision at toward end of Q2 last year to hit gas, using new capital from strategic investors (who also include hiphop mogul Russell Simmons and his ex-wife, fashion designer Kimora Lee Simmons) to broaden marketing efforts that had been fine-tuned in 6 "drill-deep" markets and to lay groundwork for major push into Asia. As reported, co has been broadening marketing effort that panned out successfully in half dozen "drill-deep" markets while recruiting extensive roster of bev vets to accelerate growth, including Natl Bev vet Vanessa Walker as sales/marketing chief and array of senior sales execs for retail and fitness channels. Coke vet and Aquahydrate ceo Hal Kravitz just joined board, too. Efforts leave co "at the cusp here of explosive growth on the international side and seeing strong growth now on the domestic side," David noted. Market seems to be buying in, ceo implied, noting that shares trading at 28 cents upon his arrival 4 years ago now trade at $2.50. They edged down slightly in trading today.
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