Beer Marketer's Insights
Oakland-based Red Bay Coffee Roasters - Black-operated biz whose democratizing credo is to bring "beautiful coffee to the people" - is embarking on RTD push with canned line that's entered Target chain in NorCal and will be adding Whole Foods and other retailers in coming weeks. Shelf-stable line is debuting in 7.5-oz cans in Cold Black Coffee (15 calories) and creamed entries Oatmilk Mocha Latte and Oatmilk Vanilla Latte, both 90 calories and unusually obtaining their creamy texture without recourse to sunflower or other oils. All bring meaningful 160 mg caffeine hit. SRP is $3.99. They join well-established line of bagged coffees that Red Bay has offered both to local retailers and to foodservice accounts like Google and Hyatt hotel chain.
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Heineken Silver Debuts First Ad; "Full Court Press" Features "Millions" of Samples, per Ad Age
Heineken Silver's $100-mil US launch will be buttressed by a "full-court press" including millions of samples and several marquee sponsorships, HUSA cmo Jonnie Cahill told Ad Age just as brand officially launched last wk. Initial campaign for co's hi-profile, low-cal/low-carb lager looks to rewrite "culture's most bitter endings, past and present," article notes. And first new ad features Heineken Silver starring in "a riveting viking saga," saving the day with tagline: "All the taste. No bitter endings."
Big New England Wine and Spirits Distrib, Martignetti, Has Deal to Buy Top MA AB Distrib Quality
"New England's leading beverage alcohol distributor," Martignetti Cos has "definitive agreement to acquire" Quality Bev Co, the cos announced in press release this morn, after notifying employees and suppliers. This is a stunning development. Quality Bev Co is New England's largest AB distrib, a little over 8 mil cases, tho down from closer to 10 mil cases a few yrs back. Top suppliers other than AB and Constellation include Yuengling, New Belgium, Sierra Nevada, and Tilray/SweetWater, locals like Harpoon and Wormtown, beyond beer brands like Loverboy and Beatbox, and non-alcs like Liquid Death, according to its website. It previously acquired at least 2 other MA AB distribs, most recently Williams Dist in late 2019. The Wetterau family, which owns Quality Bev Co, is also big in food service through Golden State Foods. What made it decide to get out of beer biz?
Low-levels of alcohol consumption may not lengthen our life expectancy after all, but two or even three drinks a day likely won't significantly shorten it either, according to new analysis. Familiar authors of a new study emphasized the former point, summarizing that "low-volume alcohol drinking was not associated with protection against death from all causes." But they also found that less than 2 drinks per day for women and as many as 3 for men does not significantly increase risk either. And that finding is hard to square with the increasingly loud assertion that there's "no safe level" of drinking, even if the first result supports it. Ref 1
Seasoned bev banker Ross Colbert, who's spent past 8 years at Rabobank, has found a new perch as managing dir and head of global bevs at Capstone Partners, where he's leading M&A coverage across global bevs. That's similar title to the one he enjoyed at Rabobank. Colbert is operating out of Midtown Manhattan offices of Capstone, a Boston-based subsidiary of Huntington Bancshares. Under his purview are M&A advisory, debt and equity placement, corporate restructuring, special situations, valuation and fairness opinions, and financial advisory services.
Alkaline Water Co announced it will undertake a 15-for-1 reverse stock split of common shares in order to maintain the $1 minimum share price that's required for continued trading on Nasdaq Capital Market. Shares will open open for trading on split-adjusted basis tomorrow morning . . . Dairy giant Saputo said it's signed definitive deal to sell pair of fresh milk processing plants in Victoria and New South Wales, Australia, to that country's Coles Group supermarket operator as it continues to streamline its operations. Sale is valued at about $95 mil (Canadian). Assuming clearance is received from Australian Competition & Consumer Commission, deal should close in 2d half of 2023 . . . Copacking player Wildpack Beverages, which has been under some financial duress, said its Thirsty Cat subsidiary has lined up interest-bearing convertible term loan in principal amount of USD$20 mil at 8% interest. Closing is anticipated by Mon. Thirsty Cat is "a new operating subsidiary of Wildpack that holds interests in all of the company's US operations, which represent substantially all of the principal business assets of the company." Meanwhile, the deals continue to come from co that trades under CANS symbol, today an Earth Month promo offering up to 10% off on all brite cans, printed cans and ends, with commitment to plant one tree with One Tree Planted org for every 10K cans ordered.
When Ruby Hibiscus launched in its NYC base in 2021, it brought a splash of rich color to coolers at grocers and Joe Coffee chain with its distinctive clear glass bottles, before joining canned sparkler trend with a line extension a year later (BBI, Jul 8 2021and Mar 14 2022). But, as founder Noah Wunsch put it in post this week, "There seems to be a strange stigma with discontinuing a product or line. I think it shows great progress and initiative." So, yes, time has run out on the glass bottle, and noncarb formulation, dubbed Ruby Hibiscus Water, out in Unsweetened and Pomegranate Lime flavors. The canned line of Ruby Sparkling Hibiscus, in 12-oz squat units, by now has expanded to include Original Unsweetened Sparkling, Fuji Apple, Berry Cherry, Blood Orange Sparkling and Concord Grape Sparkling. Recall just last week we reported on move by Boylan's Mash brand to ditch its longstanding PET bottles in favor of cans (BBI, Mar 29).
New Zealand's A2 Milk Co has added grassfed milk to its lineup of milk items derived from cows that don't produce A1 protein often linked to gastric distress. Available in Whole Milk and 2% Reduced Fat Milk versions with $5.99 SRP, they just debuted chainwide at both Whole Foods and Sprouts. Certified as regenerative via AGW as well as non-GMO and Validus-certified for animal welfare, they're believed to be among first grassfed products in A2 protein category. Under US ceo Blake Waltrip, A2 has enjoyed 30% revenue gain in most recent fiscal year; latest entries put Boulder-based unit into segment that's been growing by 25%.
Monster Obvious Bang Buyer, Stifel's Astrachan Assesses; Red Bull Bullied It in Europe, MNST Asserts
Past few years have brought quite a grudge match between execs behind Monster Energy and Bang Energy as Bang creator Jack Owoc made strong inroads into category while personally ridiculing MNST top brass on social media and they responded with successful legal challenges that helped put Florida-based parent VPX on the ropes. It's heading to bankruptcy auction in Jun with Owoc ousted from operating role and even barred by judge from commenting on case and on his perceived enemies. Now Wall Streeters are starting to assess the possibility - previously unthinkable, in part because of Monster's scathing attacks on purported science behind Bang's efficacy - that Monster might be among bidders for brand.