Beer Marketer's Insights
These days nootropic ingredients like Gaba and L-theanine may be standard functional ingredients that bev formulators layer on in quest to provide greater value and differentiate vs rivals - often in energy segment with so-called "smart" offerings. But it was less-trod territory back in 2006, when a pre-med student named Vin Montes at Univ of Texas at San Antonio worked with his profs to offer an alternative to energy drinks that boosted focus and mental stamina. The result was dubbed Nerd Focus, initially sold to fellow students who lined up outside Montes' campus apt. "The world's first think drink," was the pitch. The entry came up on our radar in 2010 (BBI, Apr 22 2010) and brand pitched BevNet Live Showdown judges later that spring (BBI, Jun 22 2010).
Throwback Thursday
This week in 1973, INSIGHTS reported on difficult situation at Rheingold as it sought to complete deal to buy competitor Piel's. Problem was Rheingold's largest shareholder (with 83% of shares) was against the deal. Who was that? PepsiCo. Yes, a half century ago, PepsiCo owned a majority interest in a regional brewer in the US. At one time, Rheingold held over 30 share of NY mkt. PepsiCo was at odds with co execs and didn't think deal would save Rheingold in the long run, so it sought to sell off the co. Rheingold was eventually sold the next year to Chock Full O'Nuts, which was only able to keep brewery going 'til 1976.
WA's Olympic Eagle filed its first response in 9th Circuit court of appeals a couple weeks ago, arguing the District Ct ruling that blocks Constellation from terminating co without cause should be affirmed, just as NBWA weighed in with its amicus brief in support of Olympic Eagle (to Columbia Dist's dismay). And California Family Beer Distributors (CFBD) filed its own amicus brief, piling onto arguments made by NBWA and Olympic Eagle with strongly worded document as its members have been most directly impacted by forced consolidation efforts in recent yrs.
Members of the public health community lamented the success of industry advocates this mo, as efforts to drastically increase excise tax rates on alcohol in two key states largely failed. A bill in Oregon designed to raise $175 mil per yr for prevention and treatment programs by jacking up beer taxes by almost 13x over 5 yrs did not proceed before a key deadline, Portland Biz Journal and Willamette Week reported. And after much negotiation, a proposal initially setting a 25-cent-per-drink tax in New Mexico was not passed as part of the state's omnibus tax bill 'til it was limited to a significantly smaller 20% hike, less than a 1-cent increase per 12 oz of beer, NM In Depth wrote.
Resolution of federal dispute over direct-to-consumer (DTC) beer shipments and self-distribution in Oregon looks to be close at hand. After plaintiffs asked court to rule that the state's laws unconstitutionally discriminate against out-of-state brewers earlier this mo, the state had 1 more week to respond. Then yesterday, the state and the brewery/consumer plaintiffs came together and requested a pause "to allow the parties to continue settlement negotiations." They've been discussing settlement options "and have reached an agreement in principle," according to joint filing. Shortly after receiving the request, the court granted them 60 days to finalize the deal.
Honeydrop has inaugurated new line of 2-oz shots that incorporate the New Zealand-sourced Manuka honey associated with core bottled line of cold-pressed lemonade and is being offered in 4 functional flavors: Restore, Immunity, Boost and Detox. The line is being pushed in core NY market by DSD partner Gold Coast. Restore shot contains Manuka honey, fresh ginger, lemon, cayenne, propolis and royal jelly. Immunity contains Manuka honey, turmeric, ginger, cayenne and black pepper. Boost contains Manuka honey, matcha, ginger and cayenne. Detox shot contains Manuka honey, fresh ginger, lemon and cayenne to help cleanse and purify the body. Manuka honey, tho pricy, brings strong antibacterial and antimicrobial properties . . . Operating now under its new owner SYSTM Brands, Rebbl is among protein bev providers heading to most indulgent side of flavor spectrum with quintet of new entries: the permanent Coconut Macaroon, Strawberries & Creme and Oatmeal Cookie, as well as limited-time Spiced Pumpkin Pie and Peppermint Dark Chocolate. As with existing protein entries, they contain 16 g of plant-based protein per 12-oz bottle, along with maca, ashwagandha, reishi, zinc and MCTs derived from coconuts. They're heading into a few banners now at $4.99, with broader rollout later in year . . . The cannabiz Canopy Growth is launching what it claims to be first caffeinated cannabev in Canada under its Deep Space brand, Propulsion entry that includes 10 mg THC, 30 mg of naturally occurring caffeine and 10 mg of CBG per 355-ml can, in Pulsar Peach and Cosmic Cherry Lime flavors. Also launching under co's Tweed brand this spring are noncarb Tweed Iced Tea Peach (5 mg THC), Sparkling Lemonade, (7.5 mg THC, also available in strawberry) and Tweed Fizz Pineapple (5 mg THC).
The 28-unit Main Squeeze Juice juice & smoothie chain will vault into new geographies via the acquisition of I Love Juice Bar, a 23-unit operation helmed by former NFL cornerback Cortland Finnegan. For New Orleans-based Main Squeeze, which operates mainly in Louisiana and Texas, the deal brings an established footprint in Tenn and Georgia, as well as additional Texas locations. "I made this decision because it's what's best for the franchisees," Finnegan said in statement reported by Nation's Restaurant News. "I want them to get the top support and experience sooner rather than later with the benefits of a larger system and brand." The two chains will cross-pollinate their menu concepts: as NRN pointed out, I Love has more developed food program, which it will share with Main Squeeze franchisees.
For a decade and a half Mash has been a sleeper brand within the Boylan Bottling portfolio, a boldly flavored sparkling juice packed in an unusual grenade-like PET bottle that looks utterly unique on the shelf. As coo Chase Slepak likes to point out, it serves as a happy medium between bland seltzers and cloying juices, with just a moderate sugar hit and vibrant flavors like Grapefruit Citrus Zing and Blood Orange Ripe Mango. Still, while it's cultivated a durable and distinctive presence in NY-area grocers, delis, Asian restaurants and other venues, it's never clicked beyond metro area, still 80% of volume. With the core Boylan sodas and mixers having established a national DSD footprint, the NY-based co owned by Emigrant Bank has decided the time has come to undertake a radical shakeup that might finally get the brand the national presence it deserves.
Save $125 with early-bird pricing for the 2023 Beer Insights Spring Conference, now available for 1 more week thru April 7th. Join us May 17-18 at the at the Four Seasons Chicago to learn from informative and engaging "fireside chats" and thought-provoking presentations. You'll also get unparalleled opportunities for Q&A and networking. Register today to take advantage of early-bird pricing while it lasts. Save even more by signing up 5 or more registrants from the same company.
Plaintiffs Seek Summary Judgment that Oregon Law Discriminates Against Out-of-State Brewers
Crunch time is coming. This mo, 3 Washington state brewers and an Oregon consumer re-upped their claims against the state of Oregon, asking a federal judge to rule that state law unconstitutionally discriminates against out-of-state brewers. The brewers seek both direct-to-consumer (DTC) shipping and self-distribution privileges in the state, recall. State laws barring non-OR brewers from those practices violate precedent set by 2005 Supreme Ct ruling in Granholm on direct wine shipping, these plaintiffs argue. (An expanded version of this article appeared in sibling pub Craft Brew News.