BMI Archives Entry

BMI Archives Entry

For those involved in innovation space in bevs, 2 major events are on horizon in NY. Next Tues/Wed, spring edition of BevNet Live opens at new location in Midtown West, with speaker roster that includes Voss Water ceo Jack Belsito, Dora's Naturals' Cyrus Schwartz and Chris Psuik from distributor side, and bev entrepreneurs like Q Tonics' Jordan Silbert, Temple Turmeric's Daniel Sullivan and Daily Greens' Shauna Martin. Event was approaching sellout today. Info at BevNet.com . . . Later in month, Jun 28-30, summer edition of Fancy Food Show hits city's Javits Center, billed as largest specialty food show in nation, drawing 2,500 exhibitors and 25K retail buyers. Info at SpecialtyFood.com.  

Operating on apparent assumption that HPP juice users like to party as much as other consumers, SF-based Project Juice has intro'd Weekend Recovery Kit combining brand's "most effective alkalizing and detoxifying juices & shots into one package designed to undo your most guilty weekends." The 2-day kit includes 6 cold-pressed juices and 4 wellness shots for $85, with free shipping nationwide.  

Looks like Washington DC is becoming hotbed of tea/beer experimentation, per essay contributed by beer writer Greg Kitsock to Washington Post. Out in Annapolis, Md, 14-unit Capital Teas chain has been building biz of Tea Lager Beer Enhancers, portfolio of 10 organic tea blends that are steeped in glasses of beer to lend touch of sweetness, lower carbonation and, for those on a budget, transform cheap fizzy lager into something more interesting - original intent of founder Peter Martino before he realized the blends also work well in craft beers. Foil pouch of 6 sachets goes for $5 and has become top online seller, Martino said. "I bought a couple of tallboys at a local convenience store and experimented to see what kind of salvage job the teas could do on mass-market yellow lager," wrote Kitsock. "Cream Earl Grey, combining bergamot orange and vanilla, added body and a smooth, citrusy flavor to" a Coors Light. Provence Rooibos, "which promised 'ripe berry notes' and 'mild lavender,' contributed such a floral bouquet to a glass of Budweiser that my friend and co-taster Noreen wanted to bathe in it. My own impulse was to dunk a sachet in a hoppy ale and pair it with Thai or Indian takeout." Not far away, in Baltimore, entrepreneur Bobby Gattuso operating as Hop Theory recently raised $25K on Kickstarter to offer beer-augmenting sachet with orange peel, coriander and Cascade hops. Sachets are sold in 12-unit pouches at $14.95. Gattuso, 25, claims to have been inspired by trying to satisfy his craft palate while living on bare-bones college budget. He's aiming to add raspberry, pumpkin and double IPA versions, paper reported. Meanwhile, article notes, local brewers like Flying Dog (with Earl Grey Black Wheat beer last month) or Backshore Brewing (with Hoop Tea) are putting tea right in beer to begin with . . . Mashable offers portrait of new coffee play Wandering Bear Cold-Brew, launched in NY by Columbia Biz School students Matt Bachmann and Ben Gordon, who spotted each other at school carrying around mason jars of home-made cold-brew. Their differentiator: they've opted for concentrate packed in 12-cup aseptic box, targeting corporate accounts. Coffee is roasted in Brooklyn, then delivered to shared kitchen in Queens for cold-brewing. Partners are building brand via such activities as working Governors Ball rock fest, Daybreaker parties and SoulCycle locations, and hitting specialty retailers like Murray's Cheese Shop.  

Among raft of maple water players, TreTap takes its place as rare carbonated entry focused on refreshment, willing to stake out position as CSD alternative. It was created by Aaron Harris, Vt-born former pro football player and technology fund mgr who returned home from stint in China pondering next step when he learned from a local friend and maple grower, Gene Branon, that he discards millions of gallons of maple water. Aaron figured there must be way to commercialize that. (That's similar story to origins of Bai Brands, which launched as way to capitalize on coffee fruit that's discarded by coffee growers.) He settled on notion of offering healthier sparkling drink. Working with Univ of Vt food science dept, he devised certified organic, non-GMO entry using liquid straight from maple trees, with light taste that isn't a stretch even in soda aisle. It's sweetened with organic maple syrup. Brand is packed in conventional 12-oz soda cans that have been given brilliant graphic treatment playing up sourcing straight from trees and seeking to differentiate it from rival maple water brands that are pasteurized and carry heavier sap taste. Another advantage, Harris feels: captive source that could provide 10 mil gals of maple water, should biz grow to that size. Harris turned to another friend to can and carbonate line, founder of Woodchuck Hard Cider, now operating out of new cidery in Vt as unit of C&C.

Harris operates with 2 partners with deep roots in Vt growing circles as co-owners of TreTap Beverages owner Big Barn Grazers: Branon family via their Branon's West View Maple and another maple growing family, the Harrisons, who also operate concrete biz that provides pool space for storing maple water. So far, venture has been self-funded by partners.

Harris said he's taking patient approach to grow organically, developing marketing campaign in Vt only for spring/summer with view to "developing a real following by real people in Vermont." Working with GBS Growth Partners' Jack Brennan and Dan Sweeney, he's gotten brand into 17 Hannaford Bros stores with special 12-unit fridge pack that's being merchandised both in CSD and water aisles. At other retailers, TreTap goes out in single cans priced at $1.69-1.89. Web site displaying can graphics just went live this week at TreTapVt.com.  

MetaBrand, incubator based in Edison, NJ, has signed on CPG vet Michael Lines as managing partner to lead push into Canada, market where Whole Foods is planning major expansion and natural/organic segment is growing by nearly 10% annually. Toronto-based Lines earlier was vp of global sales & marketing at snacks player Taste of Nature Foods; his CV also includes stops at Loblaw, Cadbury, Maple Leaf Foods, Nabisco and Allan Candy. He's recruited 3 advisors to support his efforts at what's called MetaBrand Int'l, contingency roles that will turn into full-time staff positions should push be successful, MetaBrand founder Eric Schnell indicated.

Global push comes just after MetaBrand further fortified ranks of advisory partners. They include CircleUp crowdfunding activists and angel investors Courtney and Carter Reum, former Goldman execs who also founded Veev spirits brand. Also in mix are Nutrition Capital Network founder Grant Ferrier; K&L Gates attorney Scott Greenburg, who's repped likes of Starbucks, Sambazon and Guayaki; debt financing specialist Ivan Abrams and finance specialists Jodi Wilinsky Hill and Susan Leger Ferraro, who steer socially conscious clients toward grants, microfinance, crowdsourcing and other alternative vehicles.  

MatchaBar, green-tea café in NY's Williamsburg nabe that's created a stir since its opening last fall, is ready to take plunge into RTD segment. After contributing to accelerating buzz within foodie circles for powdered green tea, founding brothers Max and Graham Fortgang are ready to unveil RTD entry next week at BevNet conference in NY, said Eric Schnell, founder of food/bev incubator MetaBrand, which founders retained 8 mos ago to help formulate concept. Brand should hit stores Jul 1, Eric said. Bros continue with plans to open more brick-and-mortar stores, joining growing array of matcha-serving outlets in city that include indies with names like Chalait, Matcha Café Wabi and Ippodo Tea (a unit of Kyoto-based co) and chains like Starbucks-owned Teavana.

Move comes as matcha extends reach within RTD segment, both at center of brands like Teas' Tea Matcha Love, Motto Sparkling Matcha Tea and Jade Monk, and as ingredient option within established lines, particularly in HPP realm. Among HPP brands that have incorporated matcha into offerings have been Daily Greens (BBI, Mar 19), Temple Turmeric (BBI, Mar 24) and Urban Remedy, as part of subline developed with Cindy Crawford (BBI, Jan 29). Ito En's Matcha Love entry launched exclusively in Whole Foods (BBI, Feb 11). Jade Monk, from Austin entrepreneurs Derek Pippin and Mike Fulkerson, is organic, cold-brewed version that by now has expanded to 5 regions of Whole Foods, in Unsweetened, Slightly Sweet, Mint + Honey and Matcha Cleanse versions.

Proliferating entries are adding to clutter and making for tougher decisions on what to carry by distributors and retailers, but also elevating category awareness. In the 3 years he's been plying Boston-based Motto Sparkling Matcha Tea in longneck green bottles, "awareness has certainly grown considerably," founder Henry Crosby said in conversation earlier this month. "We're finding it less necessary to explain what this obscure ingredient is and talk about our product." Having set solid procurement relationships early on, Henry said he's not feeling any supply pinch as new entries come in.

Matcha uses upper leaves from tea plants specifically grown for matcha production in Japan, often for ceremonial use there. The leaves are stone-ground into powder, thereby preserving plant's full range of nutrients, including theanine, whose calming effort balances stimulating effect of caffeine. Beyond bev realm, ingredient is turning up as culinary touch among celeb chefs like David Chang, segment Ito En has been diligently working via targeted products.  

After 5 years in rehab, has kombucha overcome its alcohol problem? KeVita founder Bill Moses, who initially offered non-kombucha probiotic sparkler under that brand name before plunging into kombucha realm himself with Master Brew line, says it hasn't, and he's willing to put $100K of his co's own funds into cleaning up situation. So Oxnard, Calif-based entrepreneur, who's been outspoken in past over issue, is launching Truth-in-Labeling Initiative, offering accredited 3d-party certification process to determine whether given item is in compliance with regs requiring bevs labeled as non-alcoholic to contain less than 0.5% alc by volume. Particularly as smaller regional players with less sophisticated processes get into game, Moses argues, there's been sizable drift away from that cutoff. To help some of smaller players get over the hump, he told BBI he's willing to commit $100K to facilitating process calling for off-the-shelf purchases to be sent to TTB-accredited labs for testing. Mfrs will be able to keep results private, but if their products are in compliance they'll be able to use shield-like icon Moses has devised declaring product to be "verified non-alcoholic." Device carries large initials NA in center. Testing would continue on semi-annual basis to insure items remain in compliance.

Recall that industry suffered severe shock in summer of 2010, when Whole Foods and distributor UNFI pulled kombucha category from stores on grounds that too many products were not in compliance. To date, gov't regulators have taken laissez-faire stance as orgs like fledgling Kombucha Brewers International trade group grapple with issue, but Moses said that, without more rigorous process, he's concerned "about regulators coming in and doing it for us." He contends he's mainly driven by consumer safety issue, so that pregnant women, drivers and others aren't unwittingly ingesting alc drink.

Moses' move comes as KBI has been ramping up testing protocols to deal with issue, amid confusing welter of testing techniques that can yield wide range of results for same sample. No initial response today from KBI to Moses' initiative. Asked about that effort, Moses replied: "They're doing great work. I'm a member and I support them." But he argued that org is overly reliant on samples sent from mfr to analytical lab, vs testing of off-the-shelf items that he views as critical component of credible program. He believes org is overstating testing/handling issue as impediment.

What Does Off-the-Shelf Testing Show? Worrisome Evidence, from One Moses launched initiative a few weeks after kombucha co that's not affiliated with Moses or KeVita had approached BBI about rivals that it contends are undercounting both their alcohol and calorie content. To support contention, it produced reports from respected 3d-party lab that analyzed 6 items labeled as non-alc that had been pulled from retail shelves. The 6 comprised 3 sku's each from 2 national players. (It also analyzed 3 items labeled as alc, less relevant to this story.) Because of disputes over which testing methods are best, BBI is not identifying the 2 brands. But the 6 sku's all came in with excessive alc-by-volume readings: 1.41%, 1.30%, 2.46%, 1.02%, 0.77% and 1.34%.

On calorie issue, 3 sku's labeled as containing 30 calories per 8-oz serving came in at 69, 89 and 59 calories, respectively, 2 sku's labeled as 35 calories came in at 51 and 56 calories, and 1 sku labeled as 40 calories came in at 58 calories. (Source affiliated with one of those brands assured BBI that co does frequent testing of product both from plant and pulled from shelves and has encountered no significant divergence from label listings.)

In past, Moses and his staff have complained about calorie issue too. Asked whether new initiative will measure calories, too, Bill said that might be 2d phase, but initial effort is driven by most serious public safety issue, namely alc content.  

Just a week after 80s icon Original New York Seltzer formally launched its comeback (BBI, May 14), bev mainstay from a decade later, Clearly Canadian, is hitting hustings. After crowdfunding campaign on IndieGoGo yielded orders for 30K cases from 11,924 backers from every US state and Canadian province, entrepreneur Robert Kahn kicked off production this month, in cases of 12 glass bottles using original recipe. Initial flavor range is Mountain Blackberry, Country Raspberry, Orchard Peach and Wild Cherry. "This is a brand of GenX," Kahn declared to News-Press. "It really was Clearly Canadian, Snapple and a little bit of Red Bull through the 90s. Am I surprised? No. Do I wish it was even greater? Yes." He's soliciting further orders on ClearlyCanadian.com with promise of bringing back a 5th flavor out of 14 offered during heyday, and also is setting sights on return to retail in Aug. With high calorie count of clear bev having contributed to its undoing in 90s, Kahn is planning naturally sweetened zero-cal line for 2016. Next up, possibly: return of co's Orbitz brand, whose floating gelatin balls anticipated boom in some metros of Asian bubble teas.  

Over Memorial Day weekend, bev sales were up 5% vs 5% gain a yr ago, reported Wells Fargo Securities based on survey of respondents representing "tens of thousands" of c-stores across US. (Note that's prime impulse channel that normally sees pop as weather warms.) That breaks out to 5.6% gain for non-alc bevs and 4.1% bump for alc bevs (mostly beer). "Nearly 90% of retailers" reported higher Mem Day sales, said Wells' Bonnie Herzog. Sales rose despite "deceleration of promos" this year. (That was in synch with what BBI saw in spot check of grocery and mass merch channel - May 22.) Retailers indicated strong pricing was "driven by carbonated price increase and higher prices on Red Bull," noted Bonnie. Lower gas prices were seen as having a "favorable impact" on driving foot traffic in c-stores and "retailers project a 9% increase in customer traffic this summer." For full Q2, retailers estimated NA bev sales up 6.6%, with KO, Red Bull and Gatorade seen as "largest winners so far."

KO Had Best Holiday "Based on our survey, we believe KO had the most successful Memorial Day Holiday vs its peers," said Bonnie. Coca-Cola sales were up an estimated 6% vs 5% gain for PepsiCo and 2% for Dr Pepper Snapple. While there was less promo activity overall, "several retailers suggested KO is 'the best' in promoting its brands," she added. Retailers also indicated KO's "Share-a-Coke" promo "will help support sales growth, but won't necessarily have as large an impact" as when it hit for first time in 2014.

Red Bull Rolling; MNST Transition Issues Abating In energy category, retailers indicated "Red Bull outperformed MNST," with sales gain of 7% besting Monster's 6% increase. Retailers indicated "there were still disruptions and service issues for MNST deliveries" over past few mos as it transitions over to KO bottlers, but "it appears issues are being addressed and broadly improving," noted Bonnie. In fact, compared to its last retailer survey 6 mos ago, retailers were now reporting "higher frequency of delivery 1.5x/week vs 1.4/week" and "fewer out-of-stocks." Still, looking at full qtr, Bonnie she expects "MNST Q2 sales could be negatively impacted by some of these service issues and the retailer inventory de-loading following some of the favorable Anheuser-Busch distributor buy-ins ahead of losing their distribution."  

LifeAid, one among breed of new bevs that's ridden CrossFit craze to prominence in much the way coconut waters earlier rode yoga craze, has now begun moving more aggressively into retail. Santa Cruz, Calif-based co has leveraged new tie to broadline distributor United Natural Foods (UNFI) into presence at Mollie Stone's and New Leaf on West Coast and Earth Fare and Giant Eagle in eastern markets. Co markets trio of canned entries priced at $2.99 under FitAid, GolferAid and PartyAid monikers.