Beer Marketer's Insights

Beer Marketer's Insights

Are kids (and their moms) a good target market for functional shots? Malibu, Calif-based shot maker Kor, in market a decade now, is trying to find out with pediatrician-approved line of Kor Kids shots that contains 150 mg of algae-sourced omega-3s, probiotics and vitamins C and D3. Organic entries targeting kids age 4 and up contain 4-6 g of sugar, all from the juice content and none listed as added, for 25-30 calories per 1.7-oz bottle. It's initially being offered in Apple, Dragonfruit + Elderberry and Orange flavors priced at $3.50 per shot, said western regional mgr Ethan Keene. Out about 4 months now, kids line has broken in Whole Foods and Sprouts natural grocers. It will go out more broadly once broadline distributor UNFI picks it up in Jun, Ethan indicated.

The most visibly shocking news at Zevia's expansive Expo pavilion would have had to have been the sweeping rebrand undertaken under Amy Taylor, the ceo of past year (BBI, Mar 6). But as at most shows, the LA-based stevia soda marketer could be seen industriously building out flavor options among its various sublines that by now also play in teas, kids drinks, energy drinks and mixers. In tour of booth, former Red Bull exec Taylor showcased Tropical Pineapple extension within Zero Sugar Tea line. That entry off green tea base is offered in 12-oz sleek cans that Zevia has been proliferating, particularly as it tries to dial up cold-box and foodservice presence. Until recently, brand was entirely defined by its squat conventional 12-oz cans sold in 6-pks and 8-pks, but the teas and energy drinks are in sleek cans, the mixers and kids lines go into 7.5-oz cans and the core sodas have added sleek 12-ouncers as singles in some accounts.

Building a compact base over past year in Southern Calif has been LA-based All Phenoms, an organic-juice-infused sparkling line in 12-oz sleek cans that's positioned as "functional blends for whatever the day brings." Or as Expo booth signage put it, "Crafted for the phenomenal you." It's out in trio of entries to start: Motivate (Citrus Ginger) with lion's mane mushroom, L-theanine, 78 mg caffeine from green tea; Defuse (Blueberry Mint) with lion's mane, cordyceps and reishi mushrooms, and Daily Wellness (Mango Pineapple) with cordyceps mushrooms, turmeric, vitamins A and D. SRP is $3.99.

AB InBev is launching global entertainment division of its in-house marketing agency DraftLine, Business Insider reported and co confirmed with INSIGHTS. "DraftLine Entertainment is a new division of DraftLine…which is focused on developing premium content that will entertain audiences while supporting our purpose to create a future with more cheers," an ABI spokesperson stated. ABI's "always lookin for innovative ways to reach consumers where they are." Co will enlist "Oscar-winning producer" Michael Sugar for this project, which seeks "to reach consumers who don't watch ads," noted Business Insider.

After clearing VA house and senate with broad backing, bill banning joint retail placement of "crossover" alc brands next to their nonalc counterparts was signed by Virginia Gov Glenn Youngkin this wk, effective July 1. Recall, INSIGHTS flagged the (likely) first of its kind proposal last month. Now legislation officially passed, prohibiting "immediately adjacent" placement of NA bevs and alc brands sharing "the same or similar" brand name, logo or pkging.

Following Bernstein's report this wk exploring a potential Heineken purchase of Boston Beer, Jefferies analyst Mark Howden set out to put that idea "to bed." That deal "doesn't make sense" from a portfolio, growth, US exposure or scale perspective, he contends in follow-up report. And while "I suppose it's fun that it was SAM this time rather than the usual TAP," Mark believes Heineken is "one of the best change stories in consumer staples in years," so they're "not going to blow that burgeoning rep by doing something daft."

While Athletic Brewing's off-prem biz keeps doubling to start the year (with nothing but NA beer), co's on-premise sales are now over 10% of its volume and growing even faster, founder & ceo Bill Shufelt and comms chief Chris Furnari shared with INSIGHTS. Athletic grew 145% in the on premise for 2022 and is accelerating thus far in 2023. Co's already in over 10K bars and restaurants, expecting to be in 15K+ after spring, with growth in that channel just "screaming for us," Bill added. And that's before co's draft beer pilot program even gets off the ground, starting with kegs of its Run Wild IPA at select on-prem accts surrounding Athletic's breweries in CT and San Diego.

AB's megabrand strategy appears to be paying off in early 2023, cso Simon Wuestenberg shared with INSIGHTS in chat earlier today. Especially lookin' at $$ sales. While volume is down 3%, $$ grew nearly 3% YTD thru Feb 26 in tracked IRI multi-outlet + convenience data (excluding extra growth from spirits brands). Co still shed 0.6 share of beer $$ and 0.5 share of volume for period. But its biggest brands are showing notable signs of improvement and offsetting steep drops from Bud Light Hard Seltzer in the process, Simon highlighted. And smaller megabrands are "adding a lot, not just in volume and share," but "gross profit."

Baldwin Richardson Foods, an ingredients supplier based in Macedon, NY, has entered both western US and the aseptic bev biz with acquisition of Aseptic Solutions of Corona, Calif, which produces shelf-stable altmilks, fruit juices, cocktail mixes, smoothies and coffee creamers in bottle, carton and pouch formats. Baldwin Richardson describes itself as among largest Black family-owned food businesses, with core activities focused on sauces, syrups and fillings . . . Hiru Corp said it's signed multi-million-dollar copacking deal with Voss Water to serve its western US needs out of Hiru's plants in Glendale, Ariz, and Denman, Calif.

Organic fountain bev player Tractor Bev, which is allied with Keurig Dr Pepper, has landed another significant foodservice account: WOWorks, which franchises Zoup Eatery, Saladworks, Frutta Bowls, Garbanzo Mediterranean Fresh, The Simple Greek and other eatery chains. They will be serving Lemonade, Farmers Punch, Strawberry Dragonfruit, Sweet Black Tea and other Tractor offerings. Based in St Petersburg, Fla, Wow is owned by Centre Lane Partners . . . Alkaline Water Co said the 1-gal bottle of its core Alkaline88 brand finally has attained full national distribution at Whole Foods. The pack has added 306 stores spanning Mid-Atlantic, Midwest, Northeast, North Atlantic, Northern Calif and Rocky Mountain regions, augmenting existing presence in 208 stores across 5 other divisions . . . Perfy has added Wegmans, Kum & Go and Pop Up Grocer to its retail mix.