BMI Archives Entry

BMI Archives Entry

Returning to Super Bowl after 16-year absence, Mountain Dew definitely isn’t going for same old, same

old: it’s conjured up weird (and weirdly disturbing) creature of “Puppymonkeybaby” species as emblem of

oddball combo of soda, juice and caffeine that’s turned Kickstart subbrand into wildly successful innovation in

recent years. Puppymonkeybaby, of course, unites 3 cliches of Super Bowl advertisers’ strained efforts to have

their ads go viral and win USA Today AdMeter poll. Ad for brand that recently expanded to 10 flavors was

created by longtime Pepsi agency BBDO, NY, and can be viewed here:

https://www.youtube.com/watch?v=ql7uY36-LwA. Ad’s strategy bears apparently coincidental resemblance to

first Bowl ad being prepared by Bai antioxidant line, which similarly yokes together unlikely bedfellows to

showcase brand’s surprising mix of great flavor, low calories and functionality (BBI, Jan 15 and 26). And, as

BBI has noted in past, Kickstart has proved adept hybrid in another way, in being a 16-oz canned energy-like

drink that doesn’t call itself an energy drink so as not to run afoul of exclusivity clause in contract of distribution

partner Rockstar Energy.

Under Red Bull and

Vitaminwater vet surrounded by new sales and marketing team, Hain Celestial Group’s BluePrint organic-juice

brand is prepping broader push into retail via new 10-oz line that’s approachably positioned as lifestyle brand

under attention-getting flavor names like Go ManGo and Grass Monkey. Hain marketers are hoping 10-oz line

will be platform that, for first time, enables BluePrint to make leap into being truly national brand, moving

beyond Whole Foods to conventional grocery and mass merch chains.

New subline, to be unveiled at Natural Products Expo West in a few weeks, is key part of multipronged effort to

tilt BluePrint balance away from emphasis on cleanses that defined brand in earliest years under founders Zoe

Sakoutis and Erica Huss, while elevating it to one of primary brands in Hain’s efforts to connect with consumers

at store level, said Alex Galindez, who came aboard as gm last Jun and brought along some of aggressiveness and

sass that characterized buildups of Red Bull and Vitaminwater earlier in her career. (In more recent jobs she’s

done stints at Burger King, Univision and Facebook.) Push meshes perfectly with recent observations to

shareholders by founder/ceo Irwin Simon, echoing other CPG honchos, that excitement in grocery stores is

gravitating from center-store preserve of shelf-stable items to perimeter sections, where produce and fresh foods

and juices are displayed. So as Galindez said, BluePrint will be key vehicle to do so, at co that markets dozens of

food, bev and personal care brands such as Terra, Arrowhead Mills, Celestial Seasonings, Tilda, Alba Botanica

and Dream.

New 10-oz line goes directly after Naked and Odwalla in grocery environment, offering modest tradeup at $4.99

with nutrient-dense array of 6 initial flavors ranging in calories from 40 to 200. “Skip the drip!” orders Morning

Thunder, non-dairy coffee alternative with 5 g of protein that melds organic coffee and cashews, cinnamon and

vanilla. Nut & Bolt also offers 5 g of cashew-based protein as pre- or post-workout elixir, in blend with vanilla

and cinnamon. (“Tick-tock, don’t stop,” copy urges.) Antioxidant-rich Go ManGo melds carrots with range of

fruits. Motion Potion and Grass Monkey are greens sku’s, while Beet Goes On brings beets into mix. They’ll get

to retail via handful of key DSD partners, including Dora’s Naturals in NY, Gourmet Guru in other Northeast

areas and Dove in Bay Area, as well as broadliner UNFI. Target chain has already committed to take line, and

other retailers should come aboard soon, Alex said. Note that core line has sported handful of 10-oz sku’s

targeting Whole Foods shoppers, with decision yet to be made on whether they’ll be swapped out for new subline.

New direction was outlined in meeting yesterday at Hain’s hq in Lake Success, NY, with Galindez and her core

BluePrint marketing team, all recruited within past coupla years. Newest recruit Lisa Tirino is sr mgr of

innovation, after long run on bevs at Kraft Foods. Emma Frelinghuysen has segued from digital strategy post

across Hain Celestial brands to dedicated role at BluePrint as sr dir of mktg, following runs at retailer William-

Sonoma, spirits giant Diageo and e-tailer FreshDirect. And Emily Thompson comes to role as sr associate brand

mgr following stints at startup brands like Barefoot Bucha organic kombucha near Charlottesville, Va. While

available in all Whole Foods regions, core line sports only a few chain partners, including Wegmans and some

Ralph’s and Fred Meyer stores. “Our strategy for grocery is the 10-ounce,” Galindez said. “That begins in

March.”

“We started with cleanses, and the timing was perfect for that,” Alex told BBI, reviewing history of brand, which

was acquired by Hain in Dec 2012 and saw founders exit 18 months later, in mid-2014. “But the consumer has

discovered it’s not so much about sacrifices.” (Indeed, even on brand’s Web site, copy works hard to minimize

deprivation messages, prominently featuring consumers who’re covetous of their coffee or burger habits. “I’ve

never been mad at a cheese plate,” one confides.) Tho direct-to- consumer biz to cleanse loyalists remains robust,

time has come to broaden brand’s usage occasions such as breakfast fortifier or mid-day snack, said

Frelinghuysen. Immersion in consumers, in part thru extensive digital contacts, has made it clear they want

functionality in form of fruit- and veggie-based nutrition and nutmilk-based satiety, but don’t want to see brand

steer away from refusal to employ powders and other fortifiers. Despite push to ease calorie burden, natural

sweeteners like stevia or erythritol aren’t in mix either. As rule of thumb, said Thompson, “everything you get

from BluePrint you could make yourself.” Corollary of that, added Galindez, is shoppers don’t need to confront

labels with “25 different things going on.”

To get new brand seeded, BluePrint will be able to rely both on Hain’s sales force to interface with brokers as

well as its own sales force to support its DSD partners. That team was boosted with addition of former

Vitaminwater exec Jeff Seavey as natl sales dir and Red Bull and Vita Coco vet Tommy Solch as regional sales

mgr for eastern region. Co currently outsources feet on the street to handle sampling and other events, but may

establish its own teams down road as new line is embraced. Despite considerable marketing expertise behind

brand, it’s kept spigot tight lately on event partnerships and the like as co prepped new direction.

Core Line Gets Package Revamp, Lower-Sugar SKUs, Lower Price Development effort behind 10-oz line isn’t

distracting from work to keep core 16-oz line relevant, including with additions that contain fewer calories or tap

into flavor trends like savory. Package has evolved, dialing up BluePrint brand name and “organic” designation

from bottom of label to top – “if you’re going to build a lifestyle brand, people had better see the brand (name),”

Galindez explained – and adding flavor names, so users can move beyond asking for “the green one” or “the

yellow one.” (As entries of similar color proliferated that was reaching point of diminishing returns anyway.) Co

also has moved price down to $7.99 SRP for 16-oz bottle, starting a few weeks ago in Northeast and moving thru

Whole Foods regions in next week and a half.

Latest flavor additions are pair of “hardcore” greens items due in Mar (tho they've already crept into NY and

other Northeast markets last month) that offer dramatically lower sugar levels, responding to #1 comment by core

users who buy at Whole Foods or online. Watercress Warrior, veggie-forward item targeting BluePrint purists,

melds nutrient-dense watercress with kale, spinach, cucumber, celery and lemon, and carries only 5 g of sugar (35

calories) per 16-oz bottle despite being comprised of 73% juice. Dandelion Drive melds cleansing dandelion

greens with romaine, cucumber, green bell pepper, celery and other ingredients, with savory overtones and only

10 g of sugar (50 calories) despite being 100% juice. Also in works are other items that BluePrint team wasn’t

quite ready to disclose yet.

As for BluePrint founders Sakoutis and Huss, they recently unveiled new venture, Erzo Foods, that’s targeting

pregnant moms with prenatal vitamin biscuits.

As the proverb goes, haste makes . . . well, fresh news. But also occasionally waste.

Time to correct a few recent snafu’s: National Beverage stock symbol is FIZZ, not SODA (BBI, Jan 22) . . .

Method brand of home cleaning products, launched earlier by co-creator of dairy-alternative player Ripple Foods

(BBI, Jan 26), was sold to Ecover, not Procter & Gamble . . . Sloppy phrasing in story on Beyond Brands

incubator (BBI, Feb 1) could have been interpreted to mean that its ally Cascadia Managing Brands is focused on

eastern half of US; CMB will assist with logistics, sales and distribution throughout US.

Q Brands

has broadened its network of spirits houses for its Q Tonic and other mixers. After experiencing strong growth

via Young’s Market in Calif – where brand has been packaged with spirits brands in deals like 1 case of Tito’s

Vodka + half case of Q – it’s added Republic National in Ga and Mich and Glazer’s in Louisiana, founder Jordan

Silbert said at recent Fancy Food Show in SF. In NY, where it goes thru beer house Union, and Calif brand

surged 70%+ in 2015, boosted by dedicated staffer in each market. Original Tonic entry is still biggest seller,

with Ginger Ale closing gap quickly; in 700 western Kroger stores, which brand entered in Nov, Ginger Ale has

been #1 . . . New England distribution power Polar Beverage has picked up Miami Bay Beverage’s Trimino brand

of protein-infused water, easing way into key regional chains like Stop & Shop and Shaw’s. Polar ceo Ralph

Crowley said pickup was driven by burgeoning of protein bev category. Each bottle of Trimino contains 7 g of

whey protein, B-complex vitamins and amino acids but no sugar or carbs . . . Dry Sparkling (formerly Dry Soda)

is launching new flavor, Fuji Apple, exclusively at Target chain in Apr . . . Avitae USA said its Avitae Caffeine

Water has cracked Stater Bros Markets chain in Southern Calif, which is picking up co’s unflavored waters at 90

mg and 125 mg of caffeine (co also offers a 45 mg version and 4 flavored versions of its 90 mg tier) . . .

Fancy Food Show recently held in SF was no NACS c-store expo – there weren’t a great many energy drinks to

be found catering to foodie crowd. One exception was Marquis Organic Energy, USDA-certified zero-calorie

canned line created about a year and a half ago in LA by former corporate finance exec Chris Lai and his bro-in-

law, who was in fashion biz. Line is offered in Citrus Lime, Mango Ginger and Super Berry flavors, deriving

energy boost from green tea, yerba mate and green coffee, 100 mg of caffeine per 12-oz slim can. Sweetener is

stevia/erythritol blend. Partners have devised gender-neutral can graphics, with brand name topped by stylized

crown image. They’ve been taking their time getting their footing, currently working about 300 accounts in Calif

as they seek capital and potential celeb ties to support broader rollout. (Chris acknowledged shuttering of one

chain account, Fresh & Easy, was a brief setback.) Info at DrinkMarquis.com.

Are we in midst of a transformative

“food movement”? That’s sometimes presumption of marketers and retailers of cutting-edge food/bevs, who

lately are giving outsize amount of label space and signage to issues like organics, GMOs and farmworker

conditions. But new study by Rutgers Univ prof William Hallman casts some doubt on how broad this movement

really is, suggesting there may be significant divide between consumers’ rhetoric and their real interests. In study

reported by Washington Post columnist Tamar Haspel, people generally say yes when asked whether issues such

as organics, local food, GMOs, antibiotics, farmworker conditions and animal welfare are important to them. But

when simply asked what food labels or issues are important, a very small percentage listed those same things –

for example, just 7% named GMOs, even tho when asked specifically about GMO labeling, 80% termed it

important to them. Similar divergences were seen for issues like chemicals, where food was produced, pesticides.

In other words, “ask people about whether they care about a particular topic, and they’re likely to tell you –

truthfully – that they do,” Haspel writes. “But ask what people care about without prompting, and the fraction of

people citing the issues that fall under food movement auspices – organics, local food, genetically modified

organisms, farm subsidies, antibiotics, farmworker conditions, animal welfare – is actually quite small . . . The

moral of this story is that it’s easy to make it look like people care a whole lot more than they do.” Column can

be found here:

https://www.washingtonpost.com/lifestyle/food/the-surprising- truth-about- the-food-

movement/2016/01/25/42bed508-bfcf- 11e5-9443- 7074c3645405_story.html

LA-based entrepreneur Jenia Kokotuha seems headed toward micro-conglomerate status. Marketer of Minta

mint-flavored natural sodas on NA side and Vertuze sparkling wines on alc side is adding yet another leg to biz

with pending launch of intriguing packaging play: bag-in- box organic tea called Tea in a Box. On top of that,

he’s established alliance with Italy’s San Benedetto bottled water co that will see his Minta Beverages co become

importer of several sku’s for western part of US, while new partner produces several Minta flavors for Europe.

The organic tea line grew out of Jenia’s desire to see his 2 young kids have easy access to organic tea, tho line is

being pitched toward entire family. At recent Anuga bev expo in Germany, Kokotuha saw bag-in- box as

established format for beet juice in Europe, cider in UK and the like. Why not use it for iced tea? Resulting item

is in spouted 3-liter bag-in- box in horizontal configuration familiar from soda fridge packs in US. It’s priced at

$5.99 – similar to equivalent volume of single-serve Honest Tea on $1 promo – and will be promoted down to

$4.99. Kokotuha is launching it in 3 sweetened flavors that clock in at just 15 calories per serving – Peach Black

Iced Tea, Lemon Black Iced Tea and Raspberry Black Iced Tea – as well as 3 unsweetened flavors: Jasmine

Green Iced Tea, Ginger Green Iced Tea and Mint Green Iced Tea. Jenia said one familiar grocery chain whom

it’s premature to identify will get first shipment in coupla weeks, with discussions proceeding with several more.

He’ll go to retail direct or via broadliners like UNFI.

Kokotuha had prepped concept over 8-month period, working with Blue Pacific on flavors but finding production

was biggest headache. Finding partner to produce 12-month shelf-stable line without recourse to preservatives

proved tough undertaking, and ultimately Kokotuha decided to purchase Italian production line and related fillers

himself, installing system at Nev copacker. Besides convenience, he’s hoping recyclability of both cardboard

exterior and bag will also prove enticing to shoppers.

The De Benedetto import arrangement comprises some sku’s of co’s premium glass packages as well as its Elite

PET bottles, Jenia said. (San Benedetto also uses its water in line of bottled iced teas not included in deal.)

Aspire

Beverage, based in Twin Cities, has recruited local football fave Chad Greenway to its investor/endorser ranks,

joining NHLer Ryan Suter. Minnesota Vikings linebacker Greenway, age 33, was appealing to Aspire as much

for his off-field as on-field activities, having won Vikings’ Community Man of the Year award in 2014 and 2015,

and is in mix for Walter Payton Man of the Year award to be named ahead of Super Bowl this weekend. He’s

headed for free agency, tho.

Coca-Cola Bottling Consolidated, continuing

to report progress in expanding franchise footprint and picking up mfg duties from Coca-Cola’s Coca-Cola

Refreshments unit, has elevated several key execs to accommodate anticipated growth. Charlotte, NC-based

bottler, Coke’s biggest in N Amer, named Robert Chambliss, James Harris and David Katz as evp’s and named

Clifford Deal III, as svp/cfo, all effective Apr 1. The changes are intended “to help ensure future growth and

excellence as we serve more consumers, customers, communities and employees,” said chmn/ceo Frank Harrison

III. Chambliss, a 30-year COKE vet, picks up responsibility for franchise strategy and operations, which includes

all sales, marketing and distribution activities, after most recently serving as svp for sales, field operations and

marketing. Harris, an 8-year vet, will oversee “business transformation,” a role that calls for him to manage

ongoing acquisition of distribution territory and other strategic initiatives. Katz’s purview will be human

resources and product supply as well as asst to chmn. Katz had served in various roles at Coca-Cola Enterprises

and its successor CCR before joining COKE in 2013. And Deal succeeds Harris as cfo.

Carbonated

soft drink volume fell 2.8% for 4 wks thru Jan 23 in Nielsen all-channel (incl c-stores) data reported by Morgan

Stanley’s Dara Mohsenian. That’s in line with CSD trends last 12 wks. Avg prices were up 2.2%, down a bit

from +2.5% for 12 wks. Full-calorie sodas (1.1%) continue to outperform diet (-7.4%) brands in all-channel.

Coca-Cola CSD volume declined 2.4% last 4 wks vs 1.9% drop for 12 wks. KO avg price realization was

unchanged at avg +1.6% last 4 wks. PepsiCo slowed its decline to 3.4% last 4 wks compared to 4.5% drop for 12

wks. PEP price hikes eased back to +1.5% avg for 4 wks, down from +2.7% for 12 wks. Dr Pepper Snapple

volume was off 3.1% last 4 wks, almost double its 12-wk decline rate. Private-label CSD were off 5% last 4 wks

with avg 2.6% price increase. PL brands were off 7.2% for 12 wks.

Energy Drinks Chug Along, +7.5% Energy drink volume increased 7.5% for 4 wks thru Jan 23, down just a tad

from 7.8% gain pace for 12 wks in all-channel stores. Avg price increases of +1.4% were down from increase of

just over 2% for 12 wks. Monster Energy volume was up 6.2% (up from 5.6% gain for 12 wks) on solid 2.9%

price increase for 4 wks. Red Bull volume up 5% last 4 wks, down slightly from 12 wk gains. Avg prices on Red

Bull were up 1.5%, considerably lower than +3.4% avg for 12 wks, but Red Bull is now starting to lap price hikes

of 2015. (Recall Monster waited on its price hike until further along in Coke distribution transition.) Rockstar

still on a roll with volume gain of 17.8% last 4 wks on flat pricing. PepsiCo (Amp) gains slowed but still up 9.9%

on avg 2% price increase. Low prices (-7.5% for 4 wks) still helping private-label brands grow briskly, +31.7%

in all-channel.

Slow Start for Sports Sports drinks slowed to 1.7% gain last 4 wks vs 5.2% gain for 12 wks in all-channel

stores. That’s despite flattish pricing, -0.8% for 4 wks. PEP’s Gatorade slowed to 0.9% gain for 4 wks, down

from +5.4% for 12 wks. That was despite 1.1% price drop. KO’s Powerade rose 2.7% last 4 wks, aided by avg

2.4% price drop. Private-label sports drinks were essentially flat for 4 wks with solid 8% price increase.

Bottled Waters Rise 9% Bottled water volume increased 8.8% (vs +9.3% for 12 wks) on avg 1.2% price drop last

4 wks. PepsiCo bottled water gains accelerated to +18% last 4 wks with help of steep 7.3% avg price cut. Nestle

waters edged off 0.6% for 4 wks vs 3.6% gain for 12 wks as avg price increase of 2.4% cut into volume gains.

Coca-Cola volume up 6% for 4 wks (down from +7.4% for 12 wks) even with slight (-0.8%) price drop. Low

prices (-6.3% avg for 4 wks) help keep private-label water volume flowing, soaring 17.5%.