Beer Marketer's Insights
Closing on its acquisition of Haralambos Beverage on Fri, Classic Distributing instantly became go-to DSD option for unaligned NA brands in LA metro, picking up 6.5 mil cases that have been growing at 12%, including such key brand additions as Essentia Water, Sparkling Ice, GT’s Kombucha and Fiji Water. Total house volume, including MillerCoors beer portfolio, comes to 14 mil cases moving thru LA, Orange, San Bernardino, Riverside, Kern, San Luis Obispo, Ventura and Santa Barbara counties. (As anticipated, Classic did carve off a few brands from Santa Barbara, SLO and Ventura, but decided to keep servicing Kern with full portfolio – BBI, Sep 16.) Also joining NA mix were Aquahydrate alkaline water, AriZona Iced Tea, C4 and Celsius fitness energy brands, Nestle USA and Nestle Water brands, Calypso Lemonade, Coke-owned Hubert’s Lemonade, Crystal Geyser, Reed’s and New Age Bev items like Xingtea. Classic already distributed NA items from Novamex, including Jarritos Mexican sodas, as well as Nestle Water, La Croix, Everfresh, More Labs and Miller-aligned Clearly Kombucha. Among HBC brands that did not make the transition were Snapple, which segued to company-owned DSD setup of its owner, Keurig Dr Pepper, and Voss Water, which moved to Pepsi, with which it’s been aligned on foodservice side and in some retail markets.
Given Haralambos’ crucial role in incubating by-now-familiar brands like Snapple, Vitaminwater, Bai and Essentia, the transaction is milestone in influencer-heavy market where countless breakout brands have been based or first ignited. Increasing its importance, Bud network in area is fragmented between indie shops that carry outside brands and ABI-owned branch operations that don’t, weakening potential for chain coverage. On MillerCoors side, Reyes operation is still mostly averse to putting NA brands on beer trucks (even as co separately operates Coke franchise in Calif). Smaller houses like LA Distributing get high marks from suppliers but don’t offer coverage that can be called comprehensive yet.
As reported, HBC transaction brought aboard vast majority of HBC staff of 250 (BBI, Aug 14). Asked to outline strategy going forward, Classic prexy CJ Sanchez said, “First and foremost, our top growth priority is organically growing our current brands, pre- and post-deal. Growing distribution in small-format is the key pillar to that. The second important aspect is to give great service in large-format. We want suppliers to feel they almost have to go DSD through us to win and become more profitable. Today that culture does not exist with many non-alc companies.” As for further additions, “we are open to exploring all ideas that make sense with regard to further consolidating brands we don't have in our entire footprint,” he said. Given that he has beer license to protect, we asked CJ where he stands on hemp/CBD brands like Recess and Sprig, both in HBC portfolio. “On CBD, we have not made a firm decision, we are exploring all options to position ourselves for success,” is all he was ready to say at this point. More broadly, “We feel we have positioned ourselves to be able to explore many more opportunities that will come our way in beer and NA, perhaps spirits as well,” Sanchez said. As for HBC founder/owner Tony Haralambos, he’s previously told us he plans to stay in bev biz in other roles, but hasn’t spelled those out to us yet and didn’t respond to request for comment. He’ll be consulting for Classic during 12-month transition period.
Annual NY Coffee Fest at city’s Metropolitan Pavilion offered compact glimpse into city’s fertile coffee scene with trade show day on Fri followed by consumer events on Sat/Sun. Some highlights:
Spotting Gap in Market, Upruit Maker Offering Short-Run Canning Services Out of New Brooklyn Location; Brooklyn Cannery Will Do Runs as Short as 1,500 Cans Per Day In past coupla years we’ve profiled intriguing sparkling coffee play called Upruit that’s undertaken various evolutions, including thru addition of chlorophyll water entries, as sampling activity at Coffee Fest made clear. But dealing with canning line crunch has opened principals’ eyes to bigger biz opportunity in immediate future: offering canning services to other entrepreneurs off line they’re operating at month-old, 2,500-sq-ft facility in Gowanus nabe of Brooklyn after move from earlier location in Long Island City. Operating as Brooklyn Cannery at 3d Ave and 12 St, about half a mile south of Gowanus Whole Foods, they’ve installed Microcanner line with capacity to run 10K cans per day, in 8.4-oz, 12-oz and 16-oz sizes in both standard and sleek configurations. Using 500-gal brite tanks, they can brew ginger, tea and spices, and rent time at nearby facility of a client, chai mixer co Dona, to produce concentrates. (We profiled that move last year – BBI, Feb 7, 2018.) Co can handle still, sparkling and nitro items. For early-stage brands that are struggling to find affordable canning capacity for short runs, Brooklyn Cannery will take jobs as small as 1,500 cans per day, said founder/ceo Maciej (Mache) Barwinski. Besides Dona, for its line of sparkling drinks, clients have included Sanzo Sparkling Water and Sunomi Switchel. Among future directions, Mache is eyeing a taproom at Gowanus location, to take advantage of foot traffic likely to be generated by breweries opening nearby, by locally based Sixpoint and Toronto-based Collective Arts. And judging by response, he’s eyeing addition of LA location down the road to fill similar need there.
The Upruit line, which began as a canned sparkling cold-brewed coffee, now has added a Sparkling Chlorophyll Water both in Original and Calamansi flavors, playing in a segment also worked by likes of Verday brand. The Sparkling Cold-Brew Coffee is offered in versions infused with Montmorency cherry and infused with tangerine and Himalayan sea salt. But as noted, they’re a lower priority for now as the company runs with the canning opportunity.
From Mind of MIT Scientist, Elemental Bev Offers Snapchill Technology as Cold-Brewing Alternative MIT engineering grad named David Dussault has devised heat exchange technology he calls Snapchill that can take hot-brewed coffee down from 200 degrees to 10 degrees below zero in seconds, in way that’s intended to capture complex flavors of volatile bev before they break down in what he argues is upgrade over cold-brewing techniques. Operating Elemental Beverage out of Boston ’burb of Watertown, he’s been self-canning a 12-oz refrigerated line of single-origin iced coffees that’s been trickling out to retail in New England while also pitching a commercial-grade device for foodservice uses. The $6,000 device with capacity of 12 oz per minute has found a home at Boston-area cafes operated by George Howell as well as Little Wolf Coffee Roasters in Ipswitch and Starbucks store on Roy Street in Seattle. He’s also pursuing range of uses beyond bevs, including water and metals purification. Key partners in venture are ceo Jonathan Chen, a former Sapient and VistaPrint exec, and Ryan McDonnell, a 6-year Starbucks tasting mgr who oversaw program at first Reserve Roastery in Seattle, serving as chief coffee & tea officer. (McDonnell served at co in its early days in Braintree, Mass, when it was purveyor of device called ColdWave Pitcher under corporate name Ice Cold Now, before rebranding to Elemental.) Branding vet Sarah Amitay serves as cmo. Dussault takes title of chief alchemist.
Canned offerings include iced coffees using beans from Kayanza, Burundi; Kolla Bolcha, Ethiopia, and San Alejo, Colombia. Can graphics from Chen Design Associates in SF offered watercolor-style splashes of color on front panel. They’ve been trickling out to initial retail customers in core market via distributors Associated Buyers and Native Maine Produce. A $4.99 SRP hasn’t deterred brisk movement at retail, David told us. Earlier in year, co offered limited-edition Founder’s Selection Gesha, Ethiopian variety in 750-ml bottle, sold in gift box for $235 as first in series.
To eliminate the oxygen that breaks down flavors, Elemental employs nitrogen flushing at every production stage. Shorter brewing time vs cold-brewed process also helps keep oxygen out. So Dussault argues that it’s upgrade over Japanese-style flash chilling, which results in dilution and oxidation via melting ice; cold-brewing, which doesn’t extract volatile compounds as well and degrades during extensive refrigeration (and also requires twice the amount of beans), and newer wort chillers, which lack speed and precision of Snapchill method.
Dr Smood Organic Eatery Chain Enters RTD Coffee Segment with Canned Cold-Brew Operator of cutting-edge cafes under Dr Smood name has entered RTD coffee space with its “curated coffee experience.” Founded by Danish entrepreneurs Rene Sindlev and his wife Patrizia, Dr Smood opened first café in Miami in 2016, then set up commissary in NY’s Long Island City area in 2017, where it now operates coffee roasting facility. Café premise is to broaden availability of unprocessed, organic food/bev that’s rich in superfoods but free of eggs, refined sugars, preservatives and other no-no’s among enlightened eaters. So menus include likes of Matcha & Maca Chia Pudding for breakfast, Mushroom Jackfruit sandwiches for lunch and ancillary items like Spicy Eggplant Jerky, Hawaj Shake and numbered range of Detox Juices. By now Dr Smood operates 7 stores in NY and 5 in Miami with another on way, all stocked with grab-&-go sections and in-store Smood Markets selling superfood powders. The RTD line devised by co’s roast master Andrew Oberholzer, Single Origin Cold Brew Coffee, just launched in a single unsweetened sku, using single-origin Caturra, Typica and Bourbon beans from Peru’s Finca La Florida plantation and isn’t flash-pasteurized so that flavor remains vibrant. “Within the coffee industry, cold brew is notoriously known for being the place to bury your aging coffees,” as co argues on its website. “But we have nothing to hide.” Entry is certified organic. The 8.4-oz can is priced at $3.95. So far the refrigerated item has been riding trucks of co’s commissary network in NY and South Florida while co ponders potential routes to further expansion.
Bomani Alc-Infused Cold Brew Aims to Popularize ‘Cold Buzz’ Category Launched by Irani Americans who found they were swigging too much Red Bull in their finance jobs, Bomani Alcohol-Infused Cold Brew Coffee takes its name from Farsi for “to have purpose.” Elegantly packed in 11-oz slim cans with black background graphics, line employs exacting sugar-brewing technique similar to White Claw’s to derive its alcohol (5.7% ABV), then infuses liquid with cold-brew to tune of modest 60 mg of caffeine. It has no added sugar and goes out at $3.99. Founders like to refer to their fledgling category melding cold-brew and hard seltzer as “cold buzz.” Thru a fortuitous connection on basketball court, the young entrepreneurs got connected with Great Artisan Beverage’s Nick Gagliardi, who serves as their master wholesaler and a partner, said cofounder Kai Drewry. The group is well-capitalized so far via a single-family investor, he said. Info at BomaniColdBuzz.com.
Coffee Fest Droplets: Dona Spice Sodas Expand beyond Northeast; Oatly Enters Ice Cream Segment Dona (formerly Dona Chai) has broadened reach of its shelf-stable canned Spice Sodas from NY (where it moves via Dora’s Naturals as DSD partner) to include Boston, Chicago, LA and Ariz. They’re out in flavors like Turmeric Honeybush and Juniper Lime . . . With its production shortfalls finally behind it, Oatly was sampling its new ice creams, by now in Whole Foods and Wegmans chains and “all over north Brooklyn,” as a staffer told us. In its home market of Sweden, Oatly plays in wide range of food/bev categories and has been awaiting completion of production upgrades in States to start diversifying product mix.
As it scrambles to get its core brands fully in stock, Reed’s has hived off its hard-soda activities via license deal with Oregon’s Full Sail Brewing, which picks up product development, production and marketing responsibilities for recently unveiled Reed’s Craft Ginger Mules and may also leverage its distribution network for malt-based cocktail containing real ginger. As reported, REED shares have been in a funk since co disclosed it was unable to meet demand for core Reed’s Ginger Brew and Virgil’s craft soda lines on account of continuing production issues (BBI, Oct 1).
PEOPLE: Rebbl Recruits Food Exec Neulight as CMO; IBC Adds Former CCE Exec Mackin as Partner
Rebbl’s recently appointed ceo, Michele Kessler, has augmented her c-suite with recruitment of cpg vet Bonnie Neulight as cmo. In course of 20-year marketing career, Neulight had worked on pet food at Del Monte and then at olive and pasta sauce maker Mezzetta Foods, where she held cmo title. She’ll work to leverage expanding line that was recently buttressed with sparkling prebiotic tonics (BBI, Oct 2) as well as Emeryville, Calif, co’s stance in combating human trafficking via alliance with Not for Sale org. Kessler, who succeeded Sheryl O’Loughlin, is vet of P&G, Kraft, Mars and protein bar ThinkThin . . . InterContinental Beverage Capital, the consultancy and investment firm, has added former Coca-Cola Enterprises exec Christine Mackin as managing partner. In career that also spanned roles at Nestle, Cargill and Revlon, Christine served as CCE’s vp sales for Midwest div, where she helped develop first centralized customer team and helped develop Mendota Springs bottled water brand.
Royce Pinkwater, NY real estate pro who earlier sought unsuccessfully to build a Mediterranean Diet-themed bev line called Bonta, is back with a new protein-rich brand that brings “plants with promise” under the name Oath. The oatmilk-based RTD line will debut online later this fall in Double Chocolate, Matcha Chai, Indian Rose and Golden Turmeric flavors priced at $4.99 per 12-oz bottle. Like some existing brands like Rebbl, Oath harnesses plant milk, nuts, seeds, botanicals and spices in USDA-organic that promises 15-16 g of almond and/or pumpkin seed protein and 5-10 g of fiber. Her partner in venture is fashion/beauty entrepreneur Arjan (Andy) Khiani. We haven’t been able to pin Royce down for interview but some info is posted at OathLife.com . . . If some consumers are abandoning sodas in favor of seltzers, why not offer them their favorite flavor? That seems to be logic behind Hal’s New York, seltzer line created 5 years ago by principals at distributor Big Geyser and named for its founder, who’re now venturing into cola-flavored entry. Like its sibling entries, Hal’s New York Seltzer Water Cola boasts no sweetener or calories, but it’s augmented with 118 mg of caffeine. Brand mgr Stephanie Reda calls it the “anti-cola cola – this is definitely the cola of choice for the new generation and the real, real thing.” New flavor launches as an exclusive in area’s 7-Eleven stores thru Dec at promoted price of 2 for $2.50 before moving out to general market, where brand is claimed to hold 13K accts. Cola joins unflavored entry, 9 other flavors and related line of potato chips and popcorn.
Ugly Drinks, which has sought to ride in-your-face branding to foothold in burgeoning seltzer space, is reporting that it pulled in “multi-million-dollar” financing round that includes Pentland Group’s Pentland Ventures investment arm, an existing investor, and Steadman Partners, which is owned by Martin Dickie, founder of BrewDog, another in-your-face brand. The new funding “puts us in the position to move aggressively in more competitive markets like the US, and to strategically build our presence in Europe,” per statement from ceo Hugh Thomas, who cofounded co in UK with his former Vita Coco colleague Joe Benn. We’d heard Anheuser-Busch InBev might be in investor mix, too, but Hugh didn’t respond to inquiry about that detail. Created in 2015, Ugly claims to be the leader in UK sparkling water biz and “breakout brand” in US both at retail and ecommerce thanks in part to graffiti-inspired graphics. Meanwhile, tho it makes much of its no-additives stance, co is adding an energy extension, “with 160 mg of natural caffeine and nothing MONSTROUS,” as marketing materials promise. Ugly is among flock of better-for-you brands like Liquid Death (BBI, Sep 26) that seek to counter earnest appeals of established brands with more renegade ’tude.
BEV BUZZ SURVEY: Solid Q3 for Bevs; Rational Promos; Bang, KO, A Shoc Drive Energy Excitement
Total beverage sales “were up a strong +5.2% in Q3,” an increase over 4.8% gain in Q2, based on Wells Fargo Securities survey of about 20K c-store locations across US, per sr analyst Bonnie Herzog. Non-alc bev sales were solid as well, up estimated 3.9% vs +4.4% in Q2 survey, but as Bonnie noted, non-alcs were going against a tough comp of +5.8% for Q3 2018. Among key survey highlights cited by Bonnie was news that “promo environment is still generally rational,” up 2.7%, with higher promo activity found in energy and sports drinks as competition heats up in those categories. As we often note, Herzog offers little info on respondent base so we take quantitative findings with grain of salt, but c-store execs’ comments on landscape comprise invaluable trove of qualitative insight from key impulse tier whose execs are otherwise extremely guarded in public comments. So we’re happy to quote it at length.
Bullish on Energy; Concerns over Quality of Bang’s DSD Network C-store retailers remain quite bullish on key energy segment, with expected growth of 8.4% for 2019 (up from estimate of +7.8% in Q2 survey) and gain of +7% for full year 2020, “led by Bang, Red Bull and new entrants like Coke Energy & A-Shoc,” noted Bonnie. Increased competition slowed Monster Energy growth to +3.2%, “a deceleration from +4.3% in Q2,” noted Bonnie, but she allowed MSNT was going vs “very tough +9.8% comp last year.” Survey found retailers projecting growth of just 2.7% for MNST in c-stores in 2020, well below category. Retailers indicate that MNST “continues to step up promos.” Further, nearly 70% report Reign sales have plateaued or decelerated since summer BOGO deal ended. Meanwhile, “it doesn’t appear that Reign is doing much to dampen Bang’s momentum,” as over 60% surveyed indicate Bang sales continue to accelerate, “despite Reign gaining wider distribution,” wrote Bonnie. Around 94% of retailers plan to increase shelf space for Bang while “less than” 60% of retailers plan on adding space for Reign. While Bang is on a roll and gaining space, interesting note in report cites concerns of some retailers with the brand’s “manufacturing/distribution footprint,” apparent reference to the 2d- and 3d-tier wholesalers who’re often recruited when stronger houses demur over unappealing contract or parent VPX’ history of abruptly abandoning partners in favor of self-distribution. “They have terrible distribution from the Mid-Atlantic area to New England. Jack [Owoc] is a brand building genius but he does not value strong DSD partnerships. Unless he partners with the right DSD players the brand will eventually tail off and never reach its true potential.” Another retailer is concerned Bang could shift to Anheuser-Busch InBev distribs exclusively, at least in his/her region. “AB distributors in our area have not shown a propensity to execute non-alcohol distribution well over the years,” observed this retailer. As for mfg, respondents said glitches seem to have been resolved and, as we reported last week, VPX has undertaken massive plant expansion that includes new facility in Phoenix (BBI, Oct 9).
Survey also found plenty of “buzz” among retailers “around the burgeoning fitness/performance energy category – which is clearly going from niche to mainstream very rapidly,” per Bonnie. So where’s all this shelf space coming from? “Retailers indicated they’ll be pulling back on juices & teas,” while CSDs and “energy brands with less of a presence in the fitness category, including Red Bull, Monster & Rockstar,” added Bonnie. Rockstar’s own response to fitness energy segment, Xdurance, “has not met expectations,” said one respondent.
KO Leads CSD Suppliers; Lost Focus at Pepsi? Coca-Cola sales were up estimated 3.6% in Q3, per survey, up from 2.4% gain in Q2 survey. Besides excitement around Coke Energy, survey found “retailers are still very upbeat about Body Armor.” PepsiCo sales “up a very modest” 0.4% in survey, which is in line with Q2 survey results. Tho “some retailers were clearly upbeat about new Mountain Dew flavors,” a troubling sign for PEP is that “over 75%” of retailers aren’t seeing an improvement in sales even with its increased advertising investment. “Pepsi seems to have lost a bit of focus in my opinion. Their programming has been lackluster and their innovation just 'meh',” wrote one respondent. Another was harsher: “They are toast in our stores demanding 30% of non-alcoholic space without sales to justify.”
Keurig Dr Pepper sales up estimated 1.7% in survey, just ahead of +1.3% gain in Q2. “Encouragingly, retailers were excited about A-Shoc . . . and believe this finally could be KDP’s opportunity to fully enter the category,” noted Bonnie. Recall, KDP’s predecessor co Dr Pepper Snapple was content for years to ride its also-ran Venom brand, along with modest partner brands like Xyience and Hydrive, while ceding heart of category to rivals. So disruption caused by fitness brands finally has allowed it a way in, via brand devised by ally Lance Collins. As for Venom, one chain discontinued it when it moved to pre-priced pack.
Bottled Water: Nestle Seen Losing Ground, Essentia Soars, Core Slows, Glaceau a ‘Hot Mess’ Bev Buzz survey has carried consistent critique of Nestle Waters’ regional brands from qtr to qtr, tho we can’t tell from how broad an array of respondents. More of same this quarter: “Nestle waters continue to lose ground to premium water especially Essentia and Core, although Core is softening with their ‘anti-sustainable bottle.’” Another comment: “Premium water brands such as Essentia are dominating our stores.” Coke was garnering some excitement from among the 30% of respondents who claim to have heard of a La Croix challenger due early next year. “Yes, interesting concept, branding and flavors. Q1 2020 launch. Would have liked to see more than 2 flavors in single serve 16-oz.” Also at Coke, there was concern that Glaceau has lost its way under new team. “They have damaged their sales and credibility of Smartwater. The GM of Honest Tea that confused that platform is now running Glaceau, and Smartwater and Vitaminwater are a hot mess. They have cannibalized their own shelf space trying to copy Essentia and other premium waters.”
Strategic Rumblings: Bang into Bud Houses? Monster Caught in ‘Bear Claw’; KDP’s Diminished Portfolio Leaves It in ‘Tight Spot’ Along way, retailer respondents offered some interesting speculation on bigger picture, at strategic level. As noted earlier, one was concerned that VPX was about to cut over its Bang Energy brand exclusively to Bud network, at least in that respondent’s region – not auguring well in his/her view. Meanwhile, as Coca-Cola preps energy launch in US, some have foreboding sense about KO/MNST relationship. “Monster has their foot caught in the bear claw and they are trapped with their relationship with Coke. Wait until Coke Energy surfaces it will be the partnership of hell.” Another lamented a certain stodginess that’s crept in. “Monster needs to concentrate on what made them great. Stop with all the lawsuits! Meanwhile, everyone is passing them by.”
One respondent had advice for both Monster and Nestle Waters. “Monster and Nestle are both in a very bad position. Monster should buy Bang and go back to the Bud Network and Kalil, and Big Geyser. Nestle is spinning off their DSD pizza business they should use some of their cash and buy Essentia before MillerCoors, Danone or KDP does.”
As for KDP, there seems to be concern it’s not adequately reinforcing portfolio that suffered some key losses. Since “KDP seems to be done buying companies (for now) they need to make sure they can remain focused on all brands. I’m a little nervous,” in one view. Another comment: “KDP is in a tight spot after losing BodyArmor and Fiji. Needs a market leader in a growing sub category. CSD space is slowly declining. They are not in a good place.”
SCANNER TRENDS: KO Drives Small Gain for CSDs; Red Bull Accelerates; Body Armor Surges 73%
CSD volume increased 0.6% (a swing up from -0.6% for 12 wks) as avg prices up 2.6% last 4 wks thru Oct 5 in Nielsen all-channel data reported by Morgan Stanley’s Dara Mohsenian. Volume gains for low-calorie brands (+1.8%) continued to outperform full-calorie CSDs (+0.2%) last 4 wks. With 1.8% volume gain for its low-cal brands, Coca-Cola CSDs accelerated from +2.9% for 12 wks to 4.1% gain in latest 4 wks as KO halved its avg price gain to modest +0.7%. PepsiCo CSD volume decline slowed to -3% (vs -4.2% for 12 wks) with still solid avg price gain of 3.9% last 4 wks. Keurig Dr Pepper CSD volume was off 0.9% (vs 1.6% for 12 wks) on 4.4% avg price gain, the largest among top-3 suppliers for 4 wks. Private-label CSDs returned to growth, up 0.8% on avg price gain of 1.3% last 4 wks.
Bang, Red Bull Drive Energy Volume; MNST Drives Pricing Energy drink volume increased 6.8% on avg price gain of 3.7% for 4 wks in all-channel stores. That’s nearly identical to category trends for 12 wks. Monster Energy had modest 0.7% volume increase (same for 12 wks) while its avg prices were up solid 4.5% last 4 wks. Red Bull volume gain accelerated to +7.9% (up from +6.2% for 12 wks) on slight (+0.2%) price increase last 4 wks. Bang still tearin’ it up. Volume surged 165% for 4 wks with 1.8% avg price gain. Rockstar reduced its volume decline somewhat to -12% (vs -13.7% for 12 wks) with avg price increase of 1.9% for 12 wks. Volume decline for PEP energy brands also decelerated to -1.7% (vs -5% for 12 wks) on small (-0.9%) price break.
Body Armor Still Surging; Gatorade Improved Too Sports drinks volume gain improved to +7.2% (up from +4.4% for 12 wks) even as avg prices increased a full percentage point to solid 5% gain last 4 wks. PEP’s Gatorade improved from 5.1% gain for 12 wks to +5.7% even as its avg price increase rose to +2.9% last 4 wks. KO’s Powerade volume improved from near 7% decline for 12 wks to flattish +0.1% with lift from 1.5% avg price drop last 4 wks. But its red-system stablemate Body Armor enjoyed accelerated volume gain to +74.3% last 4 wks on small (-0.4%) avg price drop for 4 wks. Body Armor stood at 10 share of category $$ vs 71% for Gatorade, 17% for Powerade for 52 wks.
Water Drops; PEP Price Surge Last 4 weeks was tough period for bottled water as volume gain slowed from +5.4% for 12 wks to +2.8%. Avg prices improved to small 0.2% gain vs -0.5% discount for 12 wks. Nestle water volume was down 4.2% with tiny (0.1%) avg price increase last 4 wks in all-channel. Coca-Cola water volume was down 1.3% while avg prices were up 4.2% (up from +2.8% for 12 wks) last 4 wks. PepsiCo volume went from -1% down to -8.9% for 4 wks as its avg price increase on bottle waters more than doubled to +10.1% for 4 wks. Private-label brands surged from 14% decline for 12 wks to +25.7% last 4 wks even with avg price gain of nearly 24%.
Dairy giant Dean Foods is exiting Int’l Dairy Foods Assn on grounds the trade group isn’t doing enough to combat plant-based products’ use of dairy terms like “milk” in their marketing, Wisconsin State Farmer reported. So DF will go it on its own in demanding accurate labeling for dairy biz, it indicated . . . Robo-barista is coming to new Whole Foods Market in Houston on Nov 7. Briggo “connected coffee” system from co supported by WF via its Friends of Whole Foods Market program craft retailer’s Allegro Bel Canto Latin American roast and Briggo’s own Briggo Blend into hot and iced coffees, lattes and other items using fresh dairy, with customers able to order via mobile app or touchscreen kiosks.
Jarritos marketer Novamex, which by now has accumulated extensive roster of better-for-you brands, has grouped them under new unit called NovaNaturals with C2O Coconut Water cofounder Adam Biggs running combined sales structure under co-ceo’s Ron Greene, his C2O cofounder, and former Steaz ceo Linda Barron, who stayed with Novamex following Steaz sale to El Paso, Texas, co. Recall that Tio Gazpacho drinkable soups also are in mix, along with internally developed aloe line called Alova that remains in limited distribution. “Instead of sending 3 separate team members from each brand to the same buyer, we will have powerful leaders selling all NovaNatural brands,” Greene explained. Also in mgmt team are Mike Fransz, leading C2O marketing efforts, and Ashley Martino, leading Steaz and Tio marketing efforts.
On C2O side, Long Beach, Calif-based brand has added canned C2O Sparkling Coconut Water extension that’s “antioxidant charged” thru use of green coffee fruit. Packed in colorful 10.8-oz cans, the new line derives its sweetness from juices and hint of stevia, for 5 g of sugar (25 calories). It debuts in Grapefruit Fizz, Berry Blast, Cherry Bang and Citrus Zing flavors. The 11-year-old brand claims to be #1 player in natural, reporting $9.5 mil at retail for 52 weeks ended Jul 14, commanding 46 share to #2 player Vita Coco (21 share), but $$ growth has been tepid at 1.7%. And it claims to be only major brand that’s growing in grocery, in #2 spot and edging up 3% in $$ at time leader Vita Coco is off 8.2% for 52 wks ended Aug 11 and Coca-Cola’s #3 player Zico is off 22%. Those are 52-wk data, tho, and as noted in story above, Vita Coco seems to be on different trajectory in recent months as Pressed extension has reinvigorated brand.