BMI Archives Entry
Marketer of Just Chill Grows Basemakers Unit to Offer Merchandising Services to Emerging Bevcos
Launched in Jun, Basemakers has built client roster that includes 7 brands in 7 different categories, following strategy of carrying only single brands per sector, Chill Group cofounder/ceo Max Baumann told BBI. Client list includes Runa Guayusa in tea, Hiball in energy, Live Kombucha Soda in kombucha, Penta in bottled water and sprawling Califia Farms line in coffee, almondmilk and juice segments. Unit currently employs 4 staffers, all of them full-time, with view that permanent, trained staff is needed to build critical relationships with store personnel. By charging flat retainer paid in advance by clients, Basemakers has been generating cash flow to manage staged expansion, with view to expanding into Ariz, Tex and Pacific Northwest, then eventually heading east. By next year, Max hopes to have more than a dozen staffers in place. He'll add snack food clients next year.
Idea echoes cottage industry that has developed in NY lately as bev vets like ONE Coconut Water's Bindra Madoo have hung out shingles merchandising city's Whole Foods stores (BBI, Feb 5). But Basemakers has wider retail scope, working not just natural stores but specialty/gourmet and conventional grocers. As with NY operators, offering a willing hand to beleaguered store mgrs can pay off in better placement for client brands; as Baumann noted, shift of brand from dry shelf to cold box can easily quadruple volume. Basemakers Web site at Basemakers.com lists suite of services beyond managing products on shelves, including conducting price audits and comprehensive reporting on activity at every stop, from which grocery mgr was on duty to display activity. Note that this is far different model than now-defunct Green Shoots, which was full-service refrigerated distributor playing on extremely labor-intensive side of biz, managing its own warehouses and fleets.
Just Chill Enters Zero-Cal Segment with Ginger Meanwhile, Chill Group's own brand, Just Chill, is about to launch its first zero-calorie flavor, taking a cue, Baumann readily acknowledged, from success of entries like zero-calorie Sparkling Ice and 5-calorie Bai. Just Chill Zero Ginger, packed in gold and white can, is formulated from real ginger extract and sweetened with combo of non-GMO erythritol and stevia. It contains bite roughly midway on spectrum between bevs styled ginger ales and those styled ginger beers, he said. Another zero-cal flavor will follow soon.
Just Chill, recall, is formulated with clinically backed SunTheanine to offer calm and focus to core target of young urban professionals and 2ndary targets of college students and yoga moms (BBI, Nov 12 2013). By now brand has expanded to all of natural distributor UNFI's distribution centers, and is sold in stores operated by Stop & Shop, Foodland, Central Market, New Seasons and Whole Foods' Pac NW region. It recently entered 500 Vitamin Shoppe nutrition stores, and will launch in Meijer grocery chain early next year. Brand's highest velocities are attained on corporate campuses like those of Yelp, which can go thru coupla pallets each month. It employs DSD on selective basis, including Maletis house in Ore and Haralambos around Southern Calif base. Brand was launched in 2010 by Baumann and 3 former college roommates, and has been willing to take it slow so far, displaying what, given category it plays in, is appropriate degree of calm and focus in contrast to other relaxation brands that hit gas pedal and burned out early.
Launch via CMB had been anticipated this past summer (BBI, Aug 20) tho no details were available then. As interesting as products themselves is support arrangement: Wow has placed 4 full-time staffers at CMB's Ramsey, NJ, offices, including 2 in sales, 1 in marketing plus operations and logistics specialist. CMB itself is handling such back-office tasks as invoicing and accounting. Wow's Brazilian agency is providing assistance with digital marketing and social media.
CMB's Sipper said assignment had come via approach a coupla years ago from One Equity Partners, which counts Wow investment as part of wide-ranging $11 bil portfolio. So CMB did deep dive into Wow brands, and consumer research detected greatest interest among US consumers in Feel Good line, albeit not in cans and aseptic boxes used in home market. Sao Paolo-based Wow is significant player in Brazil, boasting 130K points of distribution for its range of RTD bevs, sweeteners and infant nutrition items, including brands such as Sufresh, Akoko, Gold, Assugrin and Feel Good. (It also holds distinction, Bill said, of being first to bring green tea to Brazil in popular formats, followed by white and red tea.) Other brands may follow Feel Good into US down the road.
Cascadia Wins Assignment from Korea's Guangdong Separately, CMB has recently won assignment from major publicly traded S Korean co, Guangdong Pharmaceutical, to customize several of its brands for US. These include its Vita500 energy line and pair of teas, Sipper indicated. CMB wrote biz plan, developed more US-friendly packaging as it did for Feel Good and encouraged reformulation to lower sugar content than in Asian versions of products.
The brands are Organic Fuel, packed with 26 g of milk-based protein and targeting mainly males, and Organic Balance, with 16 g of milk-based protein, targeting mainly women. As shelf-stable brands, they play on equal footing, distribution-wise, with leaders like Muscle Milk, but carry USDA Organic certification at no discernible price premium. Purveyor of organic milk and cheese feels that should be compelling argument - if it can get word out beyond precincts of natural food aisles. "Save the Bros" - mock-PSA campaign urging viewers to pull the iron-pumping bros in their lives away from conventional chemical-laden protein shakes - went far in building awareness of Fuel entry. Now it's time for Organic Valley to build on that.
In conversation this week, Organic Valley vp Lewis Goldstein, a former Snapple and Sam Adams marketing exec, described launch phase as overall success, garnering broad distribution and attaining velocities among highest in category. In Organic Valley's core natural channel, Fuel now is #1 recovery item, outselling rivals like Orgain, Cal Naturale and Svelte, he noted. Crucially, rather than just fighting for share, twin lines seem to be expanding category in both natural and conventional channels, he said. Both brands went national within Kroger this past summer, and are available chainwide within Jewel-Osco. By now, Fuel is available in about 3K 7-Eleven convenience stores and testing at drug retailers Walgreens/Duane Reade, Rite Aid and CVS. In latest retail win, Fuel will go chainwide within Target starting this Jan. Lines are also burgeoning on Amazon.com and Amazon Fresh platforms, overcoming regional availability voids. Biz is budgeted to double next year, Lewis said.
But some course corrections are warranted based on market learning, Goldstein indicated. Key one has to do with retail placement: Organic Valley sales execs had pushed hard for placement of Fuel next to the largest conventional players, Muscle Milk (which moves thru Pepsi network) and Core Power (moving thru Coke), and for Balance to go next to RTD protein entries wielded under brands like Special K. Retailers have since convinced co that better strategy is to go into dairy case, one of most traveled parts of store, and one where Organic Valley brand holds greatest equity. So in coming year, #1 priority will be to get single bottles placed in dairy case, Goldstein indicated. (Indeed, one conventional grocer, whom he wouldn't ID, is eyeing plan to put entire protein set in dairy cooler, he said.) As brand attains success there, Organic Valley will build out 4-packs on lower-velocity warm shelves.
Other key shift is occurring on marketing front. Wis-based co-op of nearly 1,800 farmers is in process of evaluating results of outdoor and radio ads in ran in Aug/Sep in NY, Boston, Chicago and Milwaukee that worked harder to define product advantages as it prepares transition from Save the Bros (SaveTheBros.com). Outdoor ads for Organic Fuel tried to play on dichotomy of organic purchasers, positing shakes as "bro-tested, hippie-approved" or "mud runner-tested, hipster foodie-approved." Organic Balance was pitched as "organic protein for marathon meetings," in execution depicting woman in work environment, or "organic protein for baby lifters," for woman curling a baby seat.
Save the Bros, recall, launched early this year via agency Humanaut with mock-PSA video that urged viewers to wean muscle-bound bros from protein shakes that are endangering their survival. Tho bros consume two-thirds of our light beer and 100% of our Axe body spray, they are "in serious danger," female announcer intoned, "unaware of the scary chemicals and artificial ingredients" they're consuming, threatening a "total bro colony collapse." Follow-up phase in mid-Aug added "Brononymous Hotline" inviting consumers to anonymously help a bro by entering his Twitter handle and selecting from 7 reasons why he's worth saving, ranging from his knack for perfecting art of hair sculpting to need to prevent crash of precious-metals market were bottom to fall out of gold chain sales. Co would send that bro corresponding video and coupon.
"Save the Bros" was marvel of efficiency: it cost barely $500K, including production costs, but over its 2 phases drew 7.5 mil views, over 100K shares, Goldstein indicated. "Super-successful in raising awareness," he said. Co leveraged craze by such means as bringing actors posing as bros into 50 Whole Foods stores to work crowds. That said, 2d phase required a bit more in spending to ignite, and didn't score quite the same overnight success. So time seemed right to move on to efforts that will do more to explain products' point of difference and benefits. Humanaut remains agency in latest phase.
Organic Valley continues to tinker with other elements of strategy. It's doing more to separate Organic Fuel and Organic Balance from one another, and from parent Organic Valley, with Fuel getting its own microsite. Fuel will target events like Spartan races and channels like gyms, while Balance goes after yoga and pilates studios. Ideally, Goldstein now reflects, brands wouldn't have launched simultaneously. Co-op is still on fence on whether DSD is right approach, sticking for now with single experiment in NY, via Dora's Naturals house. It's also boosting RTD presence with single-serve organic milk chugs under Good to Go moniker, debuting next month in refrigerated 11-oz PET bottles (BBI, TK). Besides filling opening for organic entry in popular category, new entries should contribute to building knowledge of RTD segment among Organic Valley team, while offering more items to plug into budding distribution network.
Seattle-based Essentia Water, which dabbled with marketing push a year ago before backing off in favor of greater emphasis on retail execution, has brought aboard a marketing vp: former Microsoft, T-Mobile, Starbucks and Adidas exec Karyn Abrahamson. In her most recent job, at Microsoft, Abrahamson was dir of global retail marketing & innovation, handling in-store side of Xbox and Surface launches. Earlier marketing foray by Essentia, at time it was crossing over from longtime natural-channel bastion to mainstream grocers, had involved another former Starbucks exec, Paul Curhan, who moved on about a year ago.
Is the curve finally bending in diabetes epidemic? That's latest word from Centers for Disease Control & Prevention, which found that # of new cases dropped to 1.4 mil last year from 1.7 mil back in 08. "After so many years of seeing increases, it is surprising," Edward Gregg, key diabetes expert at CDC, told AP. Noted NY Times in front-pager on report: "The drop has been gradual and for a number of years was not big enough to be statistically meaningful." But the new data "serves as a robust confirmation that the decline is real," in the view of experts polled by paper. Tho it's not clear why drop is occurring, experts point to trends such as declines in soda consumption and broader calorie decline in Americans' diets, as well as rise in physical activity. Still, "it's not yet time to have a parade," warned Dr David Nathan of Mass General Hospital's Diabetes Center.

