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Coca-Cola Pivots on Battle vs Sparkling Ice, Dropping Fruitwater in Favor of Minute Maid Sparkling
It looks as tho Coca-Cola is about to do a major pivot in its efforts to find a response to recent years' explosive arrival of Sparkling Ice: it will ditch its floundering Fruitwater in order to launch an alternative under the Minute Maid brand. Minute Maid Sparkling, due for launch next Mar, will try to take higher road than Sparkling Ice, doubling the juice content to 6% vs Ice's 3% and using cane sugar as sweetener for "full-flavored" taste. That means that in contrast to Ice's sucralose-based 0 calories Minute Maid Sparkling will clock in at 40 calories per half-liter bottle. New line will break in Mixed Berry, Orange, Lemonade and Fruit Punch flavors. It possibly will be on view and ready for sampling at upcoming NACS c-store show opening on Mon. No word on pricing yet.
Fruitwater has been an object of both admiration and skepticism since its launch 2 years ago as a sibling of Vitaminwater and Smartwater (BBI, Feb 8 2013). Tho it debuted in an elegant, curvy proprietary bottle backed by ads featuring Christina Applegate, cold-filled entry also took risky step of breaking with Vitaminwater's all-natural premise in quest of zero calories and good taste. When that initiative faltered, brand was restaged without any hoopla to go into tall bottle with similar profile to Ice. But that didn't work out any better, and line has been getting steadily discontinued by major retailers. Clearly KO is hoping now that Minute Maid's juice identity will offer credibility and aura of healthfulness to new entry.
Debuting at recent Natural Products Expo East in Baltimore was Froosh, claimed as Scandinavia's #1 smoothie brand. The shelf-stable, not-from-concentrate line is comprised only of fruits and vegetables sourced mainly from farmers in southern hemisphere, with no added sugar or dairy. Flash pasteurization affords it 9-month shelf life. The line, which is also available in Baltic nations and Japan, is available in 8.5-oz and 750-ml glass bottles as well as 150-ml can, with pricing and initial range of packages still being refined, execs said. "Fruit: bottled," explain labels, simply.
In market just a year and a half now, Conn-based Sportwater has begun to carve out niche in Midwest and Northeast as sodium-free, high-electrolyte sports drink. At upcoming NACS c-store extravaganza in Las Vegas opening in 10 days, it will attempt to ratchet proposition up a notch with new branding and positioning devised under recently recruited marketing vp Mike Joyce, a SoBe vet whose most recent staff post had been at dairy house Steuben Foods. Mike was brought aboard by founder/ceo Peter DiMartino just 3 months ago; more recently, he's been joined on sales side by new-age vet Marty Jay Zirofsky, fresh from run at Nu Aquos protein-infused sports drink line after recent cutback there (BBI, Sep 15). Also in mix are flock of celeb sports personalities and investors including ex-Mets pitcher David Cone, recently retired NY Rangers right wing Martin St Louis and Cardinals center fielder Jon Jay, with more to be announced soon.
Creation of Sportwater follows familiar pattern in new bev brands: a dad - in this case finance guy DiMartino -didn't like hydration options available to his sports-minded kids, finding them too laden with salt, sugar and artificial ingredients. So he created his own brand with hefty load of 330 mg of electrolytes per liter bottle, none of that deriving from sodium, which he feels is adequately covered in rest of diet. (By contrast, Smartwater touts "electrolytes for taste" on package because its doesn't offer sufficient content to make functional claim, while Pepsi's Propel's high electrolytes content of 420 mg per liter bottle is comprised mainly of 380 mg derived from sodium). "There's a hole in the category around electrolytes," Mike said in interview yesterday. "This fits a specific need state."
Since launching in spring 2014, DSD-oriented brand has gotten seeded in solid wholesalers in Midwest and Northeast and cracked several influential chains. The mix includes New England houses like Great State, Northeast, G Housen and Atlas, many of them members of NIDA alliance, as well as such Midwestern partners as Intrastate in Detroit and Superior in Ohio. Outliers include likes of Carlson org in Utah. And in NY, Sportwater just recruited beer house SKI as its DSD partner. Brand has cracked such retailers as Kroger in Midwest, Shop Rite and Fairway in NY, and Market Basket and Big Y in New England.
But Joyce readily acknowledges it needs to do better communicating core premise, offering more premium appeal and building velocity at retail. "Our last package was very commodity, it didn't stand out, wasn't on par with our premium liquid," he said. So it's adopted new look with crisper black label and blue banding in background, that retains prominent copy heralding "330 mg electrolytes." Look offers "more swagger and sophistication, but also communicates that we're for athletes," Joyce said. Revamped brand is kicking off now in NY and Boston areas. With proposition refined, Sportwater now will be recruiting area sales mgrs and looking to build distribution in new markets like West Coast.
On marketing front, Joyce acknowledges he's got to work thru thorny issue of how to promote high electrolyte content, considering that most consumers lack frame of reference of what's adequate mg level. Tho Sportwater has pointed out in some marketing that it has 5X electrolyte content of other brands, that's not true of entire category. "So do we just put a number out there?" and hope consumers are impressed, Joyce wonders. New POS safely maintains, "More electrolytes. No sodium. No sugar."
Vitaminwater's fictitious "Center for Responsible Hydration" and other familiar tropes from its cheeky marketing campaigns will be retired if judge approves settlement just reached between brand owner Coca-Cola and plaintiffs in long-running class action suit.
That's among extensive array of labeling and marketing changes called for in settlement filed yesterday in US District Court in Eastern District of NY by attorney for Coke and for Center for Science in Public Interest, which filed suit on behalf of consumers led by plaintiff named Batsheva Ackerman. Deal resolving closely watched suit calls for KO to pay up to $2.73 mil to cover legal costs, tho consumers themselves won't receive monetary compensation beyond possible $20K in total "service awards" to Ackerman and 3 other class representatives. Coke must start remedial actions within 3 months of judge's approval and complete them within 2 years, per deal. As is customary in such settlements, co said it's not admitting to having done anything improper. "Although we remain confident in our legal position, it simply made no sense to continue this costly legal battle," rep told AP. Keep in mind, most of marketing elements that were challenged in CSPI's suit went back to Vitaminwater's days as indie brand rather than having been initiated by Coke, which bought its parent Glaceau in 2007.
The changes will dial up acknowledgement that, tho brand calls itself a "water," it contains sweeteners, with KO required to add words "with sweeteners" prominently to front and back labels. According to text of settlement posted on CSPI's Web site, the words "with sweeteners" must appear next to brand name and below product name and flavor, and "font size and clarity of the words 'with sweeteners' shall be the same as the font size and clarity of the words 'flavored + other natural flavors.'" Coke also will have to display calorie count on front label. It won't be precluded from declaring that particular flavors are "excellent source" of particular nutrient, but consumers will have to be referred to specific quantities listed on nutrition panel. Note that suit pertains only to core Vitaminwater brand, not sibling brands like Vitaminwater Zero or energy subline. Suit was filed in 2009, arguing that branding and positioning were inconsistent for products that contained little of the fruit whose names adorned flavor descriptors but 32 g of sugar (120 calories).
Out of bounds from now on will be such familiar slogans from brand's lexicon as "vitamins + water = what's in your hand," "vitamins + water = all you need," and "made for the center for responsible hydration" (tho brand will be allowed to more generally tout its hydration benefit). Also verboten will be medical-sounding claims like "specially formulated with bioactive components that contribute to an active lifestyle by promoting healthy, pain-free functioning of joints, structural integrity of joints and bones, and optimal generation and utilization of energy from food."
There were no big surprises as Keurig Green Mountain formally unveiled its Keurig Kold cold-bev system yesterday, tho it appears co will deal with high price and size of system by pitching it toward entertainment venues like dens rather than already-cluttered kitchen countertops. Tho brand sports such prime brands as Diet Coke, Dr Pepper and Canada Dry, its price per serving of over $1 makes it unlikely challenger for inexpensive RTD versions readily available at retail, analysts believe . . . St Louis-based DuPont Nutrition & Health is claiming breakthrough in easily dissolvable protein powder, offering plant-based Supro XT 221D Isolated Soy Protein that is claimed to completely disperse in 9 seconds, thereby eliminating lumping problem that can be turnoff to consumers of protein-rich powders. New ingredient will be demo'd at Supply Side West trade show in Las Vegas opening on Oct 7 . . . Coca-Cola said it won't renew funding of dieticians' group, Academy of Nutrition & Dietetics, which has drawn fire from some members for accepting money from food/bev cos. KO cited budgetary reasons.
Cold-brewed coffee seems to be making steady inroads in increasing its still-spotty consumer awareness, judging by conversations with exhibitors during swing on Sat afternoon thru inaugural edition of NY Coffee Festival. But roasters are taking welter of different, creative approaches, as was clear even during quick run thru 3-day event held at city's 69th Regiment Armory. Vibrant show, featuring 70+ exhibitors, workshops and barista competition, is run by Allegra Group, which has put on similar events in London and Amsterdam. Fest also featured live music from winners of Coffee Music Project, concept picked up from London fest (story below).
At striking Starbucks pavilion to highlight roaster's burgeoning Reserve line of small-lot coffees, employee in from store in Harvard Square in Cambridge, Mass, said customers there had high awareness of cold-brew, and demand has induced store to ramp up far beyond just 1 or 2 batches that Starbucks initially promising, following procedure of inaugurating 20-hour cold-brewing process the night before and allowing supply to run out as day progressed. She said store is taking advantage of fact that cold-brew can keep as long as 5 or 6 days to accumulate inventory, suggesting that some customers aren't receiving coffee that was actually brewed over past 24 hours. Obviously, tho, that's compromise that's come of success as customers have embraced less-bitter iced coffee style.
At La Colombe, awareness of cold-brew is spotty even among its well-educated customer base, staffer said, but growing enough for Philadelphia-based co to be eyeing a RTD entry for 2016. Co started its cold-brew program in bottles only, but has since graduated to elaborate presentations. At show, roaster was offering nitrous oxide-infused lattes dispensed from keg, from combo of cold-brewed espresso concentrate and Organic Valley milk, with intent of offering mouth feel of a hot latte. Process was patented 7 years ago but entry only debuted in flagship Philadelphia store this summer and hit NY a month ago. At its stores, it sells item for same price as iced latte and does brisk afternoon biz, staffer said. Also popular is "black-and-tan" blend featuring cold-brew at bottom and draft latte on top, dispensed from adjacent kegs in stores.
Australia's Toby's Estate, which has been expanding from initial Brooklyn base in NY over past coupla years, Kyoto Cold Brew sold in recently opened Midtown Manhattan location near Grand Central sells out every day, barista from that location said. Well-heeled clients there don't flinch at paying $5 for single-origin cold-brew from Ethiopia, priced at premium to roaster's regular Brooklyn Blend of coffees from Colombia, Brazil and Mexico, at $3.75, he said.
At Starbucks pavilion, co sampled its Reserve coffees via flock of preparation techniques, including such novel ones as siphon, which uses finer-ground coffee, very hot water (about 200 degrees F) and paper filter to remove oils and offer delicate flavor. It's based on vacuum brewing technique devised in 1830s, and has trickled out to just a handful of stores, including massive Roastery & Tasting Room in Seattle and SBUX cafe within flagship Macy's store in NY (that unit was borrowed from store for fest). Asked about report that Starbucks has settled on Industry City complex in Brooklyn's Sunset Park nabe for another Roastery (BBI, Sep 23), one staffer grinned and said, "That seems to be a rumor."
Coffee Music Project Aims to Reflect Bev's Deep Cultural Resonance Reflecting coffee's deep cultural reach, Coffee Fest included parade of live performers who'd come out on top in voting of competition called Coffee Music Project that required them to pen a coffee-related song. Offshoot of a contest that debuted in London earlier this year, project winnowed down applications from scores of performers to 32 who were invited to play in qualifying rounds at Pianos club on Lower East Side. Each contestant was asked to sing 1 song out of their regular repertoire and another specifically referring to coffee, with themes ranging from ugly mug one songwriter had been given (and come to love) to ode to "aromatic friend" who's "got me covered like no other lover." Performers' stage patter reflected familiarity with brew. "It's amazing something so bad for your voice can taste so good," observed Casey Buckley, who'd just flown in from San Diego music fest for round at Pianos last Mon.
The 8 who went on to finals at Webster Hall are all to be featured on project's NYC 2015 album. Grand winner, singer named Khaya, won $1,500 prize, professional recording session and headlining slot at fest. All proceeds benefit Project Waterfall, which seeks to bring clean water and sanitation to coffee-growing regions. Sponsors included likes of Starbucks and Califia Farms.
Chicago-based Greater Than has taken big step into DSD in NY, enlisting Preferred Distributing to work market with help from broker Gotham Brand Managers, cofounder Mark Sider said. Co has recruited as its regional sales mgr Sanchali Roy, bev newcomer who learned ins and outs of trade via her Ingo Cucumber Water. Brand founded by Mark and his brother Jon has taken deliberate path to expansion over past coupla years, but it's been expanding footprint within UNFI and KeHe, with eyes on broadening presence in Midwest and on West Coast. Brand has also won 50-store test in Sam's Club via 12-unit variety pack highlighting its 3 flavors, Orange Mango, Tropical Infusion and Pomma Berry. Greater Than is among flock of new-age sports drinks that seek to move away from artificial ingredients of mainstays Gatorade and Powerade, in this case with non-GMO formula that includes coconut water, sea salt and natural coloring agents like beta carotene and vegetable juice. Sweetener blend of cane sugar and stevia allows for lower calorie count, 60 calories per 16-oz PET bottle. Info at DrinkGT.com.
Several maple waters exhibited at Expo East, looking to carve out niche in plant-based water realm. Here are developments at a couple . . . Lotta action at Sap on Tap, refrigerated entry from NY distributor Dora's Naturals, whose parent Steuben Foods this year installed HPP unit at NJ facility (BBI, Apr 3). Line relaunched a few months back as exclusive for Northeast Whole Foods stores; that Original sku has now come off exclusive and is available to other retailers. But Whole Foods is gettin' another pair of exclusive entries, theirs alone thru Jan: Ginger Lime and Cold-Brew Yerba Mate, sourced using yerba mate from Guayusa, whose RTD guayusa Dora's distributes. Cold-brewing and HPP are both handled in-house. Meanwhile, brand has undertaken radical repricing, knocking down price per 10-oz bottle by 50 cents to $1. At Whole Foods, it's going down the full buck, from $3.99 to $2.99 . . . Vertical Water was showing revamped aseptic box, which segues from water droplet that proved too arcane to stylized image that "brings the tree back into the conversation," in words of ceo Valentina Cugnasca. Key theme is "the miracle of sap flow," she said. Overall message has been simplified, package now touts Non-GMO status and betters explains sustainability story. Co plans to keep tweaking proposition next year, further dialing up "maple water" phrase in branding hierarchy, after concluding that "vertical water" may be too indirect to tell whole story. Cugnasca and evp Rudy Quagliuolo claim to have landed nearly 3K retail accounts in 42 states by now, including Whole Foods, Sprout's, Wegmans and such Kroger banners as Fred Meyer, QFC, Ralph's and King Sooper. NSS' Acosta unit has been on case as broker to help build presence.
It's first extension in memory for Coke's powerful driver of bottled-water growth: Smartwater is readying sparkling extension for launch later this fall, likely starting in core NY market around late Oct. Coca-Cola-owned brand, operated as part of Glaceau portfolio, will offer new entry in same tall, 1-liter PET bottle of core line and at same price as still version, but with lighter shade of blue in bottle graphics and word "Sparkling" emblazoned longitudinally in white type. Like core brand, it will be vapor-distilled, with electrolytes added. Move comes as other still-water players are tapping into fast-growing sparkling realm: for example, at Fancy Food Show this summer, Icelandic Glacial intro'd glass-bottle sparkling versions in 330-ml and 750-ml sizes intended to boost its on-premise presence, with PET versions also on horizon (BBI, Jun 25 and 29). Tho Coke has proved solid steward of Smartwater brand acquired with Vitaminwater, many in biz have wondered at what point it would seek to add extensions that might buttress growth. This seems to be first.