Beer Marketer's Insights
Bulletproof 360, the parent co of Bulletproof Coffee, has turned to corporate America for successor to renegade “bio-hacker” Dave Asprey as ceo, as co seeks to build out its CPG biz. In to steer ship starting Tues is Larry Bodner, who brings 30 years of experience via exec roles at cos like P&G, Walt Disney, Del Monte Foods and Sovos Brands and board seat on Hostess. Bodner joins a year after co brought in $40 mil in Series C funding but also saw lotta churn in exec ranks while balancing efforts to support multiple platforms and channels. “As the brand moves into large retail distribution to make it more accessible for everyone, we are attracting the heaviest of hitters from the retail and consumer packaged goods space, people with the skills and experience to make Bulletproof into even more of a household brand,” per statement from Asprey, who segues to exec chmn role and will remain in day-to-day. “Simply put, Larry has what it takes.” In recent years, Asprey has proved uncommonly influential voice on nutrition via pair of best-selling books (with new one on the way) and Webby-winning podcast called Bulletproof Radio. We recently visited with co at Natural Products Expo East, at time it’s spawned a flock of bev imitators harnessing coffee, grass-fed milk and MCT oils that seem to be outrunning Bulletproof in some channels (BBI, Sep 16).
Restaurants in Philadelphia serving kids’ meals will be required to first offer customers a “healthy” bev as “default drink option” under new legislation passed by City Council, reported CBS. The new law, designed to prevent childhood obesity, would not prevent customers from choosing sodas or other bevs if they choose. “Ensuring that these healthy beverage options are available to families is a step in the right direction toward the health and well-being of our city’s children,” said councilmember Reynolds Brown. New rule has to be signed by Mayor Jim Kenney, which seems likely given that he successfully implemented controversial 1.5-cent-per-oz tax in city back in 2017.
Most experts have been warning marketers that it could be another year or 2 before wary FDA comes around to legitimizing sale of hemp-based CBD foods/bevs. Could breakthrough come much quicker than that? That’s case that Canna Law Blog makes in article posted yesterday that says mounting pressure from Congress has put agency on a “clear path within 4 months” to giving greenlight to responsibly sourced and formulated products. It bases analysis in part on letter sent to FDA a week ago by bipartisan group of 26 House members urging agency to “quickly act,” even if that means issuing interim rule while continuing to develop more permanent stance. At same time, as Canna Law reports, Sen majority leader Mitch McConnell convinced Appropriations Committee to include in ag bill a provision mandating that FDA “clear a path for lawful marketing of these products within 120 days,” submitting a report detailing progress within 90 days, as newsletter wrote. (McConnell, of course, has vested interest in outcome, as he represents tobacco growers looking for more lucrative cash crop.) Story can be accessed here.
Much as brands like Soylent and 3D Energy have done before it, Black Rifle Coffee is latest brand to try to translate its growing online clout into RTD space. After building online base of bagged coffee, pods and other formats to what it claims is $80 mil run rate, brand keyed to military vets and first responders will unveil its first canned coffees in Atlanta next week at NACS c-store expo, effort that’s been helmed by former Ohio distributor Bryon Evans, more recently in private-label coffee space, and former PepsiCo and Argo Tea exec Pete Popovich. The shelf-stable 11-oz slim-can line debuts in new year in Espresso Mocha and Espresso with Cream flavors priced at $2.99.
Team is riding brand that was launched 5 years ago out of Salt Lake City by former Army Green Beret Evan Hafer with colleagues like Mat Best, Army vet and former CIA contractor who’s developed cult following for his in-your-face YouTube comedy channel and whose new book Thank You for My Service has been racing up charts. Brand’s shtick is mix of patriotic uplift, gunplay and blatantly un-PC hijinks that won it endorsement from Donald Trump Jr a coupla years ago and has gotten the brand featured on outlets like Fox News. Evan’s co-ceo is former Taco Bell exec Tom Davin, who joined in Jan after 8-yr run on 5.11 Tactical. By now, co operates roasteries in Salt Lake, San Antonio and Manchester, Tenn, offering broad line of bagged and pod coffees under names like Thin Blue Line and AK-47 Espresso Blend. Also in mix are organic entry, instant coffee powder sticks, even Bulletproof-style “Fit Kit.” Co says it’s consummated 1.4 mil transactions for YTD and boasts 100K monthly subscriptions to its Black Rifle Coffee Club and 13M social media followers across its various platforms, including even a magazine called Coffee or Die. In rejoinder to Starbucks’ plan to hire 10K refugees, Black Rifle said it would seek to employ 10K vets as it grows. (For its part, Guayaki Yerba Mate is aiming to recruit thousands of released felons – BBI, Jan 4.)
In conversation today just after he landed in Atlanta for show, Bryon said he and Popovich were drawn to brand’s uplifting theme and clear connection it’s forged not just with military personnel, mfg workers, cops and other first responders, many of them in Sun Belt states like Texas, but with Internet-savvy millennials all over US. He said they’ve quietly begun outreach to retailers and potential distribution partners, with specific go-to-market plan evolving based on feedback. He imagines DSD will play a role in key metros. Popovich told us earlier this week that he’d been brought into project by his former PepsiCo colleague Davin and in turn recruited Evans, whose Strategy & Execution Inc has been active in private-label coffee space in recent years. NACS show opens Wed.
Starbucks is opening location in NY transit hub Penn Station that’s completely dedicated to pickups of mobile orders from My Starbucks Rewards members, Food & Wine reported. Unit goes further than pickup store opened in Beijing earlier this year that did include limited seating and baristas to take orders . . . Skyscrapers get built in far less time: Laird Superfood is claiming to have taken 4 years developing new Vanilla Superfood Creamer, on account of extensive search for right vanilla source in Madagascar rather than resorting to what are usually listed as “natural flavors.” Powdered entry includes coconut cream, Madagascar Bourbon vanilla and organic maple sugar, in 8-oz bags at $10.95 .
Jones Soda, which has been struggling to grow, has enlisted longtime Starbucks exec to serve as vp marketing. Joining Seattle-based altsoda player is Maisie Antoniello, who brings extensive resume from Starbucks in both its retail and CPG units, most recently working to turn around Frappuccino line that had gone flat. She earlier worked on Cheetos at Frito-Lay, including partnering with Tapatio Hot Sauce on cobranded items. She joins at time co has accepted investment from Heavenly Rx with view to developing CBD-infused bev line that could ignite growth. “We have the utmost confidence she will devise and execute the necessary strategies to further expand our current portfolio, along with playing an integral role in our efforts to commercialize a CBD-infused beverage line,” said JSDA ceo Jen Cue.
Keurig Dr Pepper has wrested alliance to market McCafé packaged coffee from its 5-year partner Kraft Heinz, which had brought McDonald’s CPG extension to market. Under new deal, KDP will broaden its existing role on Keurig K-Cups with responsibility for “coffee sourcing, distribution and marketing of the McCafé brand in K-Cup pods and bagged and canned coffee formats in all classes of trade, including retail and e-commerce,” starting in late 2020. “With this partnership, McCafé will continue to be marketed alongside KDP’s market leading single-serve brewing systems in addition to in the coffee aisle.” KDP will be tapping expertise that comes of being controlled by coffee giant JAB and its vast array of coffee brands, from supermarket plays to Stumptown and Peet’s. In recent years, JAB has been emerging as increasingly direct rival to Starbucks, which moved its CPG coffee biz from Kraft Heinz to Nestle in acrimonious breakup which led to SBUX last year having to write $2 bil check to former partner. McDonald’s pivot to KDP comes a month after it disclosed effort to elevate McCafé quality perception via new brand identity assuring consumers that “Good is Brewing.” There don’t seem to be any immediate implications on bottled coffee side, where McDonald’s partners with Coca-Cola on McCafé-branded line, tho producing a bottled line certainly falls within KDP’s wheelhouse via Dr Pepper side of operation. So there may or may not be more shoes to drop.
For its part, Kraft Heinz offered philosophical view of shift. “We are incredibly proud of our successful partnership with McDonald's and the growth we have seen in McCafé packaged coffee since the launch into retail in 2014,” coffee gm Peter Eck said in statement. “Kraft Heinz will support the transition for McCafé, and we remain fully committed to the coffee category as a whole. We are actively exploring all options to grow, innovate and win in coffee with our own brands, as well as with our other licensed brands.”
Red Bull North America is splitting with Northeast Beverage in last territory where they collaborated, Rhode Island, after earlier parting ways in Conn. In RI, they’ll go separate ways for off-premise on Sep 30 and for on-premise at year-end. Santa Monica, Calif-based US arm of global energy giant plans to move to mix of self-distribution via what it calls Red Bull Distribution Co and 3d-party distributor, potentially a spirits house, judging by past moves. It continues reshuffle in New England that’s seen departure of Burke and Atlas in Mass, move that opened door for both to pick up performance-energy challenger Bang. Mancini family, which operates Northeast, didn’t reply to request for comment, but RBNA said in statement that it remains committed to 3-tier distribution system but has mutually agreed to part ways with Northeast for off-premise effective end of this month. “On-premise distribution in Rhode Island will transition to a new third-party distributor in January 2020,” it added. No word on whether Mancinis have eye on enlisting Bang or one of its rivals to represent them in category.
Gleaming white casket as merchandiser? That spectacle at trade show booth earlier this week epitomized different tack being taken by packaged water play Liquid Death Mountain Water, which offers sourced water from Austrian Alps in cans with aggressive dripping-skull graphics that would seem more at home in energy or malt liquor segment. Brand name is reference to co’s wished-for death of plastic, tho it’s happy to mix that metaphor with on-can exhortation, “Murder your thirst.” Premise, as website explains, is to take world’s healthiest bev and make it as entertaining “as the unhealthy brands across energy drinks, beer, chips and candy.” Or, as sales vp Tim Tucker told us at Liquid Death booth at Natl Beer Wholesalers’ Assn annual convention in Las Vegas earlier this week, to be “the Monster brand of the water category.” Throw in commitment to devote 5 cents per can sold to cleaning oceans that are awash in sea-life-destroying plastic and its founders hope they have unassailable proposition in sea of sameness in packaged water segment.
LA-based brand was created by coupla ad/entertainment vets: creative dir Mike Cessario, who’s worked on brands from Organic Valley to Fender (while keeping comedic hand in as Upright Citizens Brigade instructor), and design/marketing specialist Jon-Ryan Riggins. Mike is ceo, JR is coo/cfo. Their core backer so far is Science Inc of Santa Monica, Calif, whose earlier investments have included likes of Dollar Shave Club and for whom execs say Liquid Death is biggest bet so far (we hear to tune of $6-8 mil, tho haven’t confirmed). Individual investors include high-level execs currently or previously associated with Dollar Shave Club and Twitter. Some wholesaler partners may also have skin in game. NJ-based Cascadia Managing Brands is helping team orchestrate buildout.
Liquid Death has lately been building buzz on Amazon, where it’s sold over $1 mil in recent months, and now is pushing harder to on- and off-premise retail, riding white can with gruesome skull graphic. With its casket full of cans at NBWA, Liquid Death was prospecting for wholesaler partners, with view to landing coverage in 35 states in coming weeks, per Tucker, a former Anheuser-Busch and Markstein Bev exec. Brand claims to be playing at retail in scattered markets like New England, Penn, Florida and Texas so far, via early DSD partners like LA Distributing and Bud houses Tri-Eagle in Florida and Southern Eagle in SC. Brand has entered retail chains like Hy Vee while cutting a swath across influential on-premise accounts like No Vacancy. It’s got commitment to enter nearly 700 Vitamin Shoppe stores early next year.
As noted, brand uses mineral water from Austrian Alps that comes in around 8.0 pH and contains natural electrolytes, tho that’s about to change for N Amer customers. To ease cost and sustainability burden of shipping water across Atlantic Ocean, next week Liquid Death will start tapping new source in Canadian Rockies that offers similar nutrient profile, Tim told us. Alps source will continue to support European and Asian biz. The cutover will occasion one less-fortunate but necessary change: from current half-liter tall boy available in Europe to more conventional 16-oz cans like those used by Monster and Rockstar. Brand goes out at $1.69 per can promoted at 2 for $3, and $3 on-premise. Lineup will be fortified with sparkling version in black can with white lettering. For now, at least, flavored versions are not in the offing. Info at LiquidDeath.com.
SodaStream chmn and former ceo Daniel Birnbaum, who presided over turnaround of foundering gizmo-marketer and helped orchestrate $3.2 bil sale to PepsiCo last year, is under investigation by Israeli securities regulator on suspicion of insider trading, Reuters reported. News service reported yesterday that Birnbaum was detained for questioning on Mon and released after posting $343K bond, with further questioning expected yesterday. The regulator, ISA, has kept under gag order identity of former SodaStream employee who profited on non-public info on quarterly earnings and PepsiCo M&A deal. SodaStream said only that’s cooperating as needed with investigators, as Reuters reported.
More coverage still to come from Natural Products Expo East and National Beer Wholesalers’ Assn meeting, BBI readers!

