BMI Archives Entry

BMI Archives Entry

Q Drinks, tortoise-beats- hare story in

mixers thanks to its slow-build philosophy over years, has just landed investment from First Beverage Group, as

part of Q Drinks $11 mil equity raise. Brooklyn-based co, which was launched in 07 by youthful newcomer to

bevs, Jordan Silbert, mentored by Honest Tea cofounder Barry Nalebuff, will use proceeds from FirstBev’s

venture arm, First Beverage Ventures, “to build on its momentum at bars, restaurants and key retailers, and to

expand into new channels and territories,” per FirstBev announcement this afternoon. “Q Drinks expects to

invest aggressively in sales and marketing, particularly in support of liquor distributors, and to grow its

partnerships with liquor brands across the country.” Q launched with a single sku, all-natural tonic water (the Q

stands for quinine), then gradually branched out into other flavors like colas and ginger beer, usually later than

retailers had begun to clamor for them. Like others in space, starting with Stirrings (now owned by Diageo), Q

has been riding wave of premium spirits, which has fostered yen among consumers for mixers of comparable

quality. On-premise, brand is served at iconic eateries and lounges like Blue Hill and Bourbon & Branch, and has

entered such mass retailers as Safeway, Albertsons, Kroger, Target, Total Wine, BevMo and Whole Foods. Q

Drinks joins FirstBev investment stable that includes Health-Ade, Purity Organic, Essentia and Juicero.

Coca-Cola is ready to

make another run at breakout bev success Sparkling Ice. This week it formally unveiled long-anticipated

challenger under Minute Maid banner, Minute Maid Sparkling. Entry rumored since last fall (BBI, Oct 5)

employs similar straightwall bottle to Ice but seeks differentiation via familiar, good-for- you brand name and 6%

juice content. It breaks in Fizzy Lemonade, Mixed Berry, Tropical Citrus and Fruit Punch at SRP of $1.29 per

half-liter PET bottle. Label prominently displays Minute Maid brand and carries fruit imagery in center of front

panel. Unlike Ice, which is zero-calorie, Minute Maid Sparkling falls into so-called mid-calorie realm, at 30-40

calories per bottle. It wasn’t clear what sweetener blend is employed in line, and Coke rep contacted early this

afternoon said she couldn’t say. And while it’s presumed launch presages exit of Fruitwater entry after several

unsuccessful restagings, rep couldn’t confirm that, either. Optimistic Minute Maid prexy Mel Landis predicted,

“We expect a little sparkle will go a long way.”

In recent years, at least a few

visitors to Natural Products Expo West have been finding their way to walkable foodie enclave that’s sprung up

around Orange Circle area of Orange County, about 5 miles SE of Anaheim Convention Center, where eateries

like Haven Gastropub, Smoqued Barbecue and Provisions Market are interspersed with boutiques and other

amenities that draw heavy flow of pedestrians seeking departure from OC strip mall scene. This year, tho, eye-

catching fixture that antedated most of the action will be missing: Olde Town Grinder & Ice Cream Parlour

custom-soda and sandwich shop, on N Glassell St a block north of the Circle. Its irascible founder, Bill King,

closed shop last summer after 7 years, complaining that area’s burgeoning local popularity was making it too hard

for customers to get in and out. “It got too crowded,” King told the OC Register in Oct. “Downtown Orange has

to do something about parking.” So he’s concentrating strictly on the soda line, hoping to find a new location for

craft soda shop. In phone conversation about a year ago, he told BBI that shop sold 250+ soda brands, purchased

100-120 cases at a time, “and we turn them over.” (See photo below.)

Tho it started out selling subs and ice cream, the store caught the eye of bev lovers immediately, its windows

crammed with all manner of carbonated soft drink, from venerable regional brands to newer boutique plays. As

King recalled to OC Register, before long it “became the “main reason why people came to the store.” Danny

Ginsburg, founder of LA-based Real Soda in Real Bottles, told BBI last year in email conversation, “I remember

the first time I went into the Old Towne Grinder; it looked like a shrine to my business! Having them there has

sparked interest in other places somewhat in the region who have expanded their craft soda selections

substantially as a result; everyone who does that and who is consistent with maintaining continuous inventory…

does well.”

Tho King could be hard to track down in person, BBI’s editor – who made an annual pilgrimage to store – last

year got account by phone of how enterprise came together. King, now 75, is former Anheuser-Busch, Coca-

Cola and Campbell Soup employee who concluded career at maker of cleaners for food-processing and chemical

mfrs that was sold to French co in 1999. Bill said he assembled custom soda-making machine himself over 2-yr

period from parts picked up from Italy, Calif, Mich and Kan, procuring 11 patents along way. Approach had its

limitations – he ended up having to have O-rings custom-made at cost of up to $500 apiece to obtain NSF

certification – but he eventually got it running, a coupla years now. He started working farmers markets in

nearby Corona, eventually receiving order from Knott’s Berry Farm tourist attraction and other commercial

accounts like Ace Hardware. He’s done 12-oz, 16-oz and even 32-oz swingtop bottles for Xmas (at $21),

customized for weddings or other events and featuring string-tied tag on neck. He said he made it credo to

always charge full price, even for first big order, 85 cases. “My vision is to have them (franchises) all over the

country and give Coke and Pepsi a run for their money,” he confided – it wasn’t clear with how much of a grain

of salt. At time, King confided he might be ready to move on from operating shop, in favor of opening new

location more focused on the craft sodas. “I’m tired of making sandwiches,” he said. So the sandwiches are gone

but the boutique soda dream very much alive. Info at DoggoneGoodSoda.com.

As should be clear from barrage of anticipatory hoopla,

epic Natural Products Expo West opens in Southern Calif this week, with show floor open Fri thru Sun at

sprawling exhibition area that spans entire Anaheim Convention Center and nearby hotel space. Produced by

New Hope Natural Media, show is world's largest tradeshow for natural, organic and healthy products industry,

with bev exhibitor list that’s anticipated to exceed 400. Show launched in 1981 with about 3K attendees, but by

last year had exceeded 70K attendees, visiting 2,700 total exhibitors spread out over 1 mil feet of floor space.

BBI editor is lacing up his Sambas to sprint the aisles to offer detailed coverage. Info at ExpoWest.

As should be clear from barrage of anticipatory hoopla,

epic Natural Products Expo West opens in Southern Calif this week, with show floor open Fri thru Sun at

sprawling exhibition area that spans entire Anaheim Convention Center and nearby hotel space. Produced by

New Hope Natural Media, show is world's largest tradeshow for natural, organic and healthy products industry,

with bev exhibitor list that’s anticipated to exceed 400. Show launched in 1981 with about 3K attendees, but by

last year had exceeded 70K attendees, visiting 2,700 total exhibitors spread out over 1 mil feet of floor space.

BBI editor is lacing up his Sambas to sprint the aisles to offer detailed coverage. Info at ExpoWest.

Bruce Cost Ginger Ale has had its 8.4-oz slim can picked up by SKI Beer for

greater NY area, only ginger ale or beer within portfolio of Brooklyn-based distributor of brands like Harpoon

and marketer of its own Ralph & Charlie’s juice line. Move should offer a big boost to pack’s penetration of on-

premise trade, founder Bruce Cost told BBI . . . Feel Good, line of juice drinks being launched for major Brazilian

juice marketer by incubator Cascadia Managing Brands, has elected to go with Drink King for NY launch. CMB

partner Bill Sipper said co already has pair of staffers based at Cascadia’s NJ hq who’ve lined up 200+ accounts,

including likes of Food Fare, Food Town and Bravo. As reported, at CMB’s urging, Brazilian parent Wow!

Nutrition repackaged line for US launch, moving from brick packs of home market to PET bottles, then decided

to employ PET bottles back home, too (BBI, Aug 20). On strength of longterm customers like Wow!, with whom

it worked 2 years on launch, Cascadia Managing Brands itself is expanding, taking additional space at its

Ramsey, NJ, hq and opening ancillary office in Irvine, Calif

. . . Caliwater Cactus Water has been picked up by

Sprouts Farmer’s Market chain for its 220 stores in 13 states.

“We’re juice

guys,” Nantucket Nectars cofounders used to say a coupla decades ago. Same goes for Juiceology cofounders

Felipe d’Avila, its ceo, and his partner and cousin Augusto Fontana: they come from Brazilian family involved in

foodservice biz for 70+ years via Sadia food brand founded by their grandfather and now owned by BRF Brasil.

But they’ve staked their biz on affordably priced juice line that offers broad nutritional base but is positioned as

refreshing accompaniment to food, not as meal replacement.

LA-based brand carries approachable $2.99 SRP but tries to go likes of Naked one better by using fiber, roots,

barley and oats, with the grains squeezed to keep them refreshing. Drinks are about 30% whole grains with about

8 g of fiber per bottle (32% of FDA’s stated daily value). Bevs are intended to be refreshing, not serve as meal

replacement, and d’Avila works hard in formulation to keep them below 200 calories per bottle. All sugars come

directly from fruit, not as added ingredient. “I don’t believe in juicing,” he said flatly in recent conversation. It’s

“fun, cool, urban brand” for those who enjoy life, he said. Refrigerated line is flash-pasteurized at Calif copacker

and carries 5-mo shelf life. Co does its own flavor development.

Brand has been making steady headway broadening retail presence, after entering Walmart last year and

expanding to 1,300 stores. In NY, where it moves thru DSD house Dora’s Naturals, it’s in about one-third of

Duane Reade drugstores, key impulse channel in city. Having entered Ralph’s in 2012, it’s now been expanding

thru Kroger network, likely heading this year into all banners except Food for Less and Harris Teeter. Most

recently it entered Safeway in Northern Calif and Albertson's Ariz div. Core flavor lineup of 5 Green Elements

entries along with Blueberry Acai, Pomegranate Blue Cranberry and Peach Mango will be buttressed next month

with Red Elements, employing red veggies like carrot and beet and red fruits like cranberry, with hint of ginger

and turmeric that should be on view at Expo West later this week. Packaging also has gotten makeover and brand

is obtaining non-GMO certification. Family-owned and –run co has been bringing in outside capital deliberately,

most recently embarking on capital raise of $2-3 mil to fund expansion. Info at PureJuiceology.com.

Kombucha

brewers graduated to operating their own trade association a coupla years ago. Now it’s turn of burgeoning plant-

based food/bev sector to hang out lobbying shingle. New Plant Based Foods Assn is launching with support from

23 cos, including bev players Califia Farms and Malk Organic, to represent $3.5 bil sector, led by exec dir

Michele Simon, a public health lawyer. It’s recruited veteran lobbyist Elizabeth Kucinich, wife of former

congressman and presidential candidate Dennis Kucinich, to walk halls of congress in DC. She told NY Times

assn would be open to range of cos, not just those who’re pure play in plant-based nutrition. Jaime Athos, ceo of

Tofurky, is serving as prexy. “Every other sector of the food industry – from sugar to organics - is represented in

the policy arena,” said Simon. “The time has come for the plant-based food industry to also have a collective

voice.” Sector currently is comprised mainly of plant-based milks, at $2.1 bil of sales total, but also includes

plant-based meats like meatless burgers and tempeh, and plant-based yogurts.

For those who want a new milk source and a new cause, enter Gorilla Milk. That’s center of

nutritionally dense line being launched at upcoming Natural Products Expo West by Santa Monica, Calif-based

Barnana, which plays on food side with its banana-based Super Potassium Snack line. Gorilla Milk, packed in

resealable pouch dominated by image of stern-looking gorilla, comes from Western Lowland Gorillas, with some

proceeds headed toward saving endangered animals’ habitat via World Wildlife Fund. Part of pitch: it takes

alternative milks “to the next level with milk more genetically similar to that of our own.” Among hot buttons it

hits: Fair Trade, grass-fed, unpasteurized and raw. Details – including how gorillas are milked, for the not-so-

squeamish – will be unveiled on opening day of show, Fri, at GorillaMilk.org

Fresh

off a rebranding, Kate Farms has brought aboard as coo the well-traveled new-age bev exec Michael Fougere,

whose roles have ranged from Coca-Cola Nestle tea partnership and Powerade at Coke to roles at Muscle Milk,

POM Wonderful, Zico Coconut Water, Plum Organics and MetaBrand incubator. Kate Farms, founded 5 years

ago by Richard and Michelle Laver and based in Santa Barbara, Calif, manufactures plant-based Kate Farms

Komplete shakes, a 3-flavor pouched line which just received a makeover via agency Hornall Anderson that will

be unveiled at upcoming Natural Products Expo West opening on Fri. New branding calls out co’s motto “All

Good Things” on-pack and in POP. Dairy-free line is made from plant protein (but not soy) and contains 21

“superfoods” such as camu camu, acai, turmeric and bilberry extract. Lavers claim brand is in about 3,500 retail

doors now.