BMI Archives Entry

BMI Archives Entry

Chicago-area co that's targeting blue-collar outdoor enthusiasts with year-and-a-half-old energy brand licensed from Miss-based Mossy Oak camouflage and hunting gear maker under name Mossy Oak Pursuit is aiming to go broad via DSD network in 2016. Brand founded by former Quiznos exec by now has cracked c-stores in heartland regions such as Casey's General Store and Murphy's USA. It's out in 4 iterations: Original, Blue Raspberry, Orange and Citrus Berry All Zero. "It's the camo can that stands out," argue marketing materials.

Line is produced by Dr Pepper Snapple Group in Jacksonville, Fla, but doesn't move thru any DPS distribution units, given co's commitment to its own Venom energy brand. It goes out at $1.99, but is actively promoted at 2 for $3 to garner trial, said ops dir Jim Donohue. In 2016 it will be seeking to add to DSD network that includes several Bud houses, including several in Northern Calif, Dana near NYC and several more coming aboard in Maine.

Pair of big dairy co-ops that have been aggressively working to establish milk as the perfect protein drink launched extensions at NACS that now establish milk as . . . well, the perfect milk. Wis-based Organic Valley, which has aggressively expanded its Organic Fuel and Organic Balance organic-milk-based protein shakes, intro'd Good to Go Lowfat Milk, pasture-raised organic 1% milk in 11-oz single-serve PET bottles in regular and Chocolate varieties. (The chocolate sku uses Fair Trade sugar and cocoa.) Front panel notes but doesn't emphasize that each bottle contains 11 g of protein.

Meanwhile, Chicago-based Fairlife, operated by growers co-op and part-owned by Coca-Cola, brought out its own flanker to the milk-based protein line it's been pushing to c-stores, Core Power. It offered a lowfat milk line under new brand Yup! that attempts to position line not as toddler item but for "big kids" age 12-24 looking for reasonably healthy indulgence. "It's our indulgence beverage," said booth staffer. "It's great for the big kid looking for a sweet, delicious, somewhat healthier option." She said Yup has been undertaking soft rollout starting with Coca-Cola Consolidated's footprint in Southeast and moving to Coke Northern New England, Coca-Cola Refreshments ops in New England, NY, Upper Midwest and Dallas, and indies like Swire, United and Great Lakes. It should be national within CCR by next Jun. Brand's 14-oz PET bottles emphasize that it contains 25% less sugar than ordinary lowfat milk (thanks to same process employed in co's Fairlife milk). It's out in Vanilla, Chocolate and Strawberry flavors, at $1.99. Front panel emphasizes that it's lactose-free and contains vitamins A and D, but makes no note of its 9 g of protein.

Dwight Richmond, who over past 6 years has entertained pitches by hundreds of natural-bev marketers, apparently is leaving Whole Foods. That's been word over past week among natural-bev marketers, including some encountered earlier this week on floor of NACS c-store expo, who pegged today as last day for retailer's global grocery purchasing coordinator responsible for dozens of product categories. Richmond's departure comes at time that Whole Foods has been undertaking headcount reduction of 1,500 that's led to turmoil in several divs even as co preps launch of entirely new banner called 365. We haven't picked up any specific reason for departure of Richmond, who's worked with exec global grocery coordinator Errol Schweitzer to pick up intriguing brands and move retailer towards its goals of carrying only GMO-free items in coming years, tho it's likely that new supply chain software announced this week will alter job description for successor. As it happened, Whole Foods founder and co-ceo John Mackey was keynote speaker at NACS on Tues morning but he confined his presentation to views of "conscious capitalism" outlined in new book with that name rather than addressing any developments within Whole Foods itself.

Now that SABMiller has accepted buyout offer from Anheuser-Busch InBev, Coca-Cola "has a tough decision to make" in months ahead about what to do with its bottling operations in Africa, wrote Wall Street Jnl. "SABMiller is a key Coke bottler" and major part of KO's plan to consolidate operations there. But KO has change-of-control clauses that would allow it to buy back SABMiller's soda bottling and distribution assets, sources told WSJ, and those assets "could fetch around $3 billion." KO is already facing delays in Africa getting regulatory approval, and that's before ABI steps into mix. It's gotta be tough decision for KO deciding if it wants to partner with ABI, given that top analysts such as HSBC's Carlos Laboy and Nomura's Ian Shackleton believe it inevitably will prove to be next big acquisition target for ABI 3-4 yrs down road. KO might "rightly view" ABI as a "Trojan Horse" considering InBev had forged distribution deal with A-B before taking over co in 08, said Ian. "It's obviously not their ideal situation," he added. Along with other analysts, Laboy and Shackleton can envision scenario where KO agrees "to come into AB InBev's fold only if AB InBev stops distributing Pepsi" in Latin America, wrote WSJ. Some analysts believe there's possibility ABI would prefer being a KO bottler in Africa to bottling PEP brands in Latin America "where it already has its own growing" soft drink biz with Guarana Antarctica. ABI's deal with PepsiCo expires at end of 2017 but automatically renews unless either co formally ends deal in writing by end of this year.

Familiar innovation machine at NACS shows, Redline marketer VPX came within a whisker of appearing at NACS this year under new ownership - or not at all. Some rough sledding financially brought co founded by Jack Owoc to brink of sale to supplements marketer this spring, per reports on street, and when sale didn't come together bank lender was ready to pull note. (Under terms of that deal, BBI had heard, Owoc would have retained rights to Bang canned creatine brand but everything else would have gone to buyer.) But Owoc was able to pull rabbit out of hat on final day via factoring deal with Marquette Capital that allowed him to retain control of sharply downsized operation. Tho VPX had to slash headcount from 230 to 130, and consolidate 3 bldgs totaling over 200K sq ft into single site about half that size, it is now profitable again, scoring $7 mil in ebitda as of Jun, Jack contended - at time that recent deals involving Lone Star and BSN in supplements realm have commanded 8X ebitda multiple. So you do the math, irrepressible ceo commanded. "Everyone thought we were going under, but now we're healthy again," he declared. The financial morass had ended string of 17 years of continuous growth, he said.

Reorganized co now has operationally separated supplements and RTD businesses, recruiting former Natrol and GAS exec Brian Armstrong to run sales on supplement side, thereby leaving longtime sales honcho Gene Bukovic to focus completely on bevs. Mass channel is handled by Anthony Valetutti, recently recruited from US Nutrition.

As always, VPX brought eye-catching new items to show. Core line, Redline Xtreme, is capitalizing on craze for out-there flavors with Sour Heads and Star Blast flavors - the latter a workaround when Wrigley declined to license its Starburst brand. Brand new is Pristine Protein Super Premium Protein, which carries mammoth 40 g of whey protein isolate per half-liter bottle but zero carbs, sugar, fat, lactose or artificial colors. With sucralose as sweetener, it clocks in at 170 calories per bottle. It runs $4.50 - expensive, Owoc acknowledges, but he'll give it a shot in c-stores. And co has restaged its Bang line, claimed to be world's only stable water-soluble creatine drink. Package graphics have been upgraded to feature bullet coming at you, even as production process now uses 4 paint coats to insure that no silver comes thru the pastel shades employed. Co is hoping to catch young guys' eyes with blue-colored Blue Razz can and green-colored Sour Heads can. Usually seen at $2.49 at retail, 16-oz cans often command $4 in gyms - remarkable, Owoc noted, for carbonated entry. By now key nutrition retailers like GNC and Vitamin Shoppe have approached co to offer powder versions, reversing usual sequence that sees popular powdered supplements migrate to RTD.

VPX has relentlessly experimented with distribution approaches, to frustration sometimes of DSD partners. It's still self-distributing in Fla market but retains commitment to indie houses in markets like Pac NW, where it's in 17 Pepsi houses, and Miss, where it's in Bud network. It's also with Nevada Beverage and Hand family's operations, capitalizing on some Bud houses' quest for new energy plays following exit of Monster to Coke network.

Talking Rain has been cranking up the marketing engine behind its popular Sparkling Ice flavored-water line, even as it looks to buy or develop other brands to bring to its fully built out DSD network. At NACS show it debuted a new flavor in core line, Black Cherry, due in Jan, and also unveiled branding revamp, also for Jan, that offers more distinctive look to tea-based subline even as its marketing is brought more in synch with core line's. "This year the whole brand comes together under 'Refreshingly Bold,'" vowed ceo Kevin Klock. "It's the first year that it's all 360 degrees." With NBA season about to start, Preston, Wash-based co unveiled KD35 bottle for its Orange Mango flavor that's themed to investor/endorser Kevin Durant and brings heavy consumer activation component. After injury-shortened season last year, "he's back on the court and feeling great," Klock reported. So marketing team at co, led by cmo John Peirano, will up his involvement this go-round, including via dedicated programs at Kroger and 7-Eleven in new year.



In discussion at massive NACS booth adorned with items like signed KD basketballs and jerseys, Talking Rain ceo Kevin Klock and vp Nina Morrison said hoops superstar had direct hand in design of KD35 bottle (that's his jersey #), which sports stylized image of a hand on a basketball and his signature. Portion of sales will go to support efforts of Durant's foundation to build basketball courts around world, starting with Oklahoma City, where he plays, and Washington DC and Berlin. Key consumer activation component is mobile app that activates game when shopper's phone scans code on POS, allowing them 3 chances to outshoot Durant to win prizes ranging from Ice discount coupons to signed swag. It's backed by extensive digital campaign.

Brand also is seeking to leverage start of NFL season in its Seattle base via deal cut a few months ago with Seahawks that already has drawn potent activation at local retailers like Kroger's Fred Meyer chain and Safeway. Kevin was quick to emphasize that, in contrast to notorious Jones Soda deal with Seahawks some years back that drained altsoda co's resources, this one "enhances, not replaces" range of bevs available at stadium.

Rebranding of teas moves subline fully under "Refreshingly Bold" canopy of Sparkling Ice, after launching under separate slogan, "Tea Elevated . . . with sparkling fruit flavor." New look for brand aims to make it easier for sales force to get retailers to shelve subline in tea section, not water section where core Ice line is often found. It features liquid splash covering lower half of bottle, and tea leaf image as crossbar of letter A in "tea." New label also eliminates clutter and dark tones of prior iteration.

For 2016, co also will seek to build on marketing experiments of past year that reaped big payoff when video behind Demi Lovato's "Cool for the Summer" that captured Sparkling Ice branding among revelers on Chicago beach went viral, attracting more than 21 mil views to date. Deal was result of Ice's ties to ROC Nation, which reps both Durant and Lovato. That ROC Nation tie was leveraged this past winter in co-sponsorship of Kanye West outdoor concert in NY during NBA All Star Week festivities (BBI, Feb 5). After deal came together in mid-Jun, Talking Rain scrambled to participate in Lovato video that was shot a week later and to support series of summer pool parties in 7 cities around US with radio ad support. Video can be seen here.

As previously noted, c-stores are a key target for 2016. ACV there hovers around 37% vs 90% in grocery/mass channel. Co is seeking to do better letting motorists know of presence of brand when they pull up to gas station, and obtaining more facings and displays in stores inside, Klock said. And thanks to effective alliance with Sun Ripe, brand will be able to build upon deep penetration in Canada, process it accomplished in single year rather than the 3 it anticipated.

As in past Klock readily confirmed he's intent on broadening portfolio, not necessarily under Sparkling Ice name. That means he's in hunt for acquisition candidates and also working internally to develop other brands that can be brought to DSD network. That quest has been formalized in revamped co mission statement that views it as global leader in innovating brands that people embrace.

Tho brand remains small player in energy realm, Dr Pepper Snapple Group has showed tenacious loyalty to its Venom brand and at NACS this year it continued to tinker in hopes of unlocking right formula. At show, co displayed cans that are prepriced at 99 cents apiece, tho booth staffer said it wasn't clear whether that's strategy for all retailers and all channels. And with mid-calorie line, at 50 calories per 16-oz can, not having torn cover off the ball, brand has added low-calorie platform in Citrus and Strawberry + Apple flavors, using ace-K, sucralose and erythritol sweetener blend to knock calorie count down to 20 per can. Subline seems modeled after Monster Energy's very successful Ultra low-cal line and it similarly employs raised ink on can, tho not as dramatically as Ultra. Distinctive - but expensive - aluminum bottle in which brand launched years back may remain in mix, but wasn't on view at show.

Coca-Cola showed new PET look for its Illy coffee line and delved into Italian coffee culture to add Caffe Vanilla Affogato flavor based on country's tradition of topping vanilla gelato with shot of espresso. New flavor will debut starting in late Oct in key markets before rolling out more broadly next year. New package, which tested at NY drug chain Duane Reade for some time, is 11.5-oz in size with distinctive angled taper in middle.

As anticipated, KO also unveiled Minute Maid Sparkling entry in straight-walled bottle that takes up Fruitwater mantle in challenging Talking Rain's Sparkling Ice (BBI, Oct 5). Due in Mar, it will take on role of Fruitwater brand that co is abandoning. Also as anticipated (BBI, Oct 9), it's dropping from-concentrate versions of its Zico Coconut Water, moving to PET bottles for flavor range that includes core Zico Natural as well as Pineapple, Watermelon Raspberry and Chocolate.

Gold Peak Tea added pair of new age flavor staples, Peach and Raspberry, while Powerade jumped on watermelon craze with Watermelon Strawberry flavor as well as Twisted Blackberry. Vitaminwater got refresh of its 32-oz bottle and addition of Tropical Mango, due in Jan.

With M&A the new R&D for big cos, as some observers like to put it, KO also touted newest members of family: Hubert's Lemonade and other members of Hansen Natural clan that it picked up in broader brand swap with Monster Beverage last year, and Suja HPP-processed juice in which it recently took substantial stake, touting its position as first organic cold-pressed juice for under $4. Suja is on mission to democratize organic, cold-pressured juice, co proclaimed, in echo of mandate of its Honest Tea brand (which was not exhibiting at show).  

Looks like Campbell Soup is going ahead with V8 Infused Water entry it showed in prototype form at last year's NACS expo. New entry, which offers healthier take on enhanced waters like Vitaminwater from Campbell's erstwhile distribution partner Coca-Cola, contains full serving of vegetables and 25% juice content per panel-less 16-oz bottle, in keeping with co's approach of offering nutrient-dense takes on popular categories to its newly re-enlisted indie distributors. With no sugar or artificial ingredients in blend, it clocks in at just 30 calories per bottle. Initial flavor range is Mandarin Orange Ginger, Cucumber Lime and Black Cherry Pomegranate. It debuted recently in Target and Walgreens stores and is now heading out to broader distribution.

For energy-focused c-store channel CPB also has augmented its participation in segment, adding sparkling entry to longstanding noncarb entry. Due in Dec, V8+Energy contains 80 mg of caffeine sourced from green tea, 34% juice and serving of fruits/veggies per 12-oz can, priced at $1.99-2.29. Each can contains 50 calories. It debuts in Orange Pineapple, Blackberry Cranberry and White Grape Raspberry. Also being sampled on single-serve side was V8 Veggie Blends that's been much talked up by CPB brass, positioned as easy way to get needed veggies thanks to hint of fruit in flavor, 1.5 servings in all. Shelf-stable line is offered in curvy PET bottles in Purple Power, Healthy Greens and Carrot Mango, all staples of refrigerated juice segment. With no sugar added, it comes in at 90 calories per 12-oz bottle.

Coca-Cola's Glaceau unit may be about to drop its poorly performing Fruitwater sparkling extension of Vitaminwater (BBI, Oct 5) but it's adding carbonated extension to portfolio sibling Smartwater. Smartwater Sparkling debuts in Jan in 1-liter bottle, followed in Mar by single-serve 20-oz bottle sold singly and in 6-packs, per marketing materials viewed by BBI. (New entry did not seem to be on view at NACS show this week in Las Vegas.) Positioned as "sparkling sophistication," new entry employs same vapor-distilled process with added electrolytes, but aims to ride sparkling wave and capture more meal occasions for brand that, as materials point out, has driven over 70% of premium water growth in each of past 4 years, per Beverage Marketing Corp data. It's first extension in memory by brand that's stayed rigorously focused on core play. It comes as other players are augmenting their presence in area, as with Voss Water, which debuted first flavored extensions to its sparkling entry at NACS (BBI, Oct 9). As reported, KO is dropping Fruitwater in order to challenge Sparkling Ice with Minute Maid Sparkling entry, which was sampled at NACS booth in Fizzy Lemonade, Mixed Berry, Tropical Citrus and Fruit Punch flavors.