Beer Marketer's Insights
Nootropics player Kin Euphorics, which has created considerable buzz and apparently substantial online sales as elegantly crafted non-alc mood lifter, has entered the RTD segment with 8-oz canned item called Kin Spritz aimed at the “grab & flow” crowd. With citrus, hibiscus and ginger notes, line is produced from “a stack of balancing adaptogens” (like rhodiola rosea extract), “replenishing nootropics” (GABA, 5-hydroxytryptophan, HTP, citicoline and tyrosine), “nourishing botanics” (hibiscus, gentian and licorice), along with about 50 mg of caffeine. It contains 5 g of sugar for 25 calories per 2-oz serving (tho can is not resealable and website advises, one can is enough for most to reach bliss, but you may need 2 or 3.” Cans graphics have sunburst theme and carry nutritional supplement panel. “Euphorics for humankind,” reads bottom of can. On Kin’s website the line is going for $27 per 4-pack. Nootropics are class of chemical, some naturally occurring, that offer cognitive benefits to brain.
NY-based Kin was cofounded by Jen Batchelor, marketing vet who helped Zappos founder revitalize downtown Las Vegas, and Soylent cofounder Matthew Cauble, to whom we’ve reached out but not heard back yet (BBI, Mar 27). Its core line, High Rhode, claims to help calm stress and “supports the brain’s neurotransmitters for a bliss you can feel.” It’s packed in half-liter glass bottle good for 8 servings, priced at $39. Given some blowback from consumers who’ve complained they didn’t expect to encounter caffeine in Kin, the co also has said it’s working on caffeine-free formulations. Co lately has been operating out of “dreamy” space called Moon Rise Studio, as Time Out NY noted in recent profile of Batchelor, 34, who’s deemed an “alchemist and health savant.” (She’s also operating site called Kin House in LA, per other reports.) “When you’re not consuming alcohol but are still getting those blissful effects with Kin, you’re free to move and activate your sympathetic nervous system where love, arousal, creativity, empathy and that feeling of connectedness can actually be felt,” she told what-to-do rag. “In that case, the bar dynamic changes. You’re no longer sitting around and shooting the shit or giving your sob story. Instead, you’re ready to dance, paint, play music and create. Moon Rise was very much created around that mindset.” Profile can be read here.
Coffee Bean & Tea Leaf chain is makin’ bet on cold-brewed tea as traffic driver this summer, using its Scottish breakfast black tea as base for Lightened Cold Brew Tea in pair of flavors: Mixed Berry (using real raspberries and blueberries) and Blood Orange (blood orange and mango). In-store items available thru Aug 27 are steeped cold for 5 hours to produce the lightly sweetened entries. Beverage Business Insights and rest of Beer Marketer’s Insights team is taking the day off this Friday.
Eater describes it as “the hottest form of goofy weaponry among leftists.” Vegan coconut milkshakes were front and center at clashes this past weekend in Portland, Ore, between left- and right-wing protesters, with the leftist Antifa protesters hurling the shakes at marchers pushing a #HimToo message. “Fueling the conservative alarm,” wrote the NY Times yesterday, “was the Portland Police Bureau’s own suggestion on Twitter during the height of the protests – later walked back slightly – that anti-fascist protesters had laced their milkshakes with quick-drying cement before lobbing them at the marchers,” a claim that was dismissed as a fabrication by leftist leaders. (BBI reminds that vegans often are opposed to the use of gums and other thickening agents.) Activist with group called PopMob told Times that recipe included no cement, but rather blend of coconut ice cream, cashew milk and some sprinkles, mixed using blenders at nearby commercial kitchen and carted over to protest scene. Showing images of people drinking the concoctions, she asked: “Why would we put concrete into $700 worth of ice cream? It would be a huge waste.” Sprinkles in what was dubbed the Stonewall Shake were intended as a Pride-related touch. The police have claimed that, even tho they didn’t confirm that any of shakes contained concrete, they were duty-bound to issue warning of potential hazard.
Soylent, taking its time building out DSD network, has signed with redistributor Dot Foods to get its core RTD line deeper into retail and foodservice. LA-based co said its meal replacement shakes are now available to Dot’s 4,500 distribution customers, at time its footprint has been rapidly expanding. Alliance offers way to penetrate more nooks & crannies at time that brand boasts NY’s Big Geyser as key DSD partner in what’s become best-selling market, but otherwise has focused more on direct-ship relationships and broadliners like UNFI and more recently KeHe (to service Safeway/Albertsons), said svp sales Melody Conner. Tho it has yet to make significant DSD commitment even in SoCal home market, Melody said co still intends to add such partners as it builds out presence. Among recent retail wins has been rollout within Walmart from 400 stores to 4,378 in less than a year, as well as expansion within CVS drug chain after successful test in grab-&-go coolers in NY. 7-Eleven, where Soylent first dipped its toe in retail a few years back, by now carries brand in about 4K stores, and brand has entered about 800 Chevron gas stores along West Coast and is testing within Speedway chain.
We recently sketched broad range of activities under way at cannabis player Canopy from its co-ceo Bruce Linton, who discussed push toward RTD products and other priorities at Cannabis World Congress & Business Exposition in NY (May 31). Turns out that was one of his last public appearances on behalf of Smiths Falls, Ontario-based co that he founded, with board abruptly forcing him out this morning in view of weak financials that apparently have spooked its key investor, Constellation Brands, which holds multibillion-$ stake amounting to nearly 40%. As Bloomberg reminded, Constellation ceo Bill Newlands had recently noted that co was “not pleased with Canopy’s recent reported year-end results. We continue to aggressively support Canopy on a more focused long-term strategy to win markets and form factors that matter while paving a clear path to profitability.” “The board decided today, and I agreed, that my time is over,” Linton said in statement. Co has embarked on search for permanent replacement, with Linton’s co-ceo Mark Zekulin holding reins for now.
Humm Formally Drops East Coast Production Plan; Offers $100K to Roanoke, Va, as Compensation
Humm Kombucha has formally withdrawn from agreement to build a $10 mil East Coast plant in Roanoke, Va, local development officials announced at City Council meeting this week. BevNet, which picked up on announcement, indicated that reasons were improvements at Humm that eliminated need for plant as well as tougher biz conditions that have crimped co’s spending, as a city official suggested. The exit doesn’t come as a surprise, as buildout had encountered significant delays and Humm cofounder Jamie Danek had made it clear to BBI back in Feb that co was rethinking need after production upgrades at its hq operation in Bend, Ore, that were intended to better control alcohol and calorie levels had brought additional benefit of greatly stretching capacity of plant, eliminating any pressing need to add 2d facility (BBI, Feb 19). So Humm wasn’t likely to be in need of new plant “not next year or the next,” Danek told us at time. Construction hadn’t advanced very far and in amicably backing out this week Humm has agreed to pay city $100K as compensation, as BevNet reported. Economic development mgr Rob Ledger noted that Humm team has “always been a pleasure to deal with.”
One of the bev business’ classic tinkerers is gone. Roy Warren, relentlessly experimental bev exec who was early on to such innovations as shelf-stable vitamin-reinforced flavored milks and ultrafiltered-milk protein drinks, succumbed to leukemia on Mon after 4-year battle, even as he remained highly active in latest venture, building out Gratitude Dragon Well Green Tea and prepping launch of meal replacement line called KetoFuel, both driven by his desire to bring to consumers bevs that address metabolic health and might help keep insidious diseases like cancer at bay. In posting on Facebook, his daughter Niki Warren Cavallo referred to Warren’s sunny disposition, saying her dad was “the eternal optimist, courageous in every regard and instinctively knew what mattered in life.” Gratitude Health prexy/coo Andy Schamisso termed Roy “the most supportive and positive person I ever met.” Andy declined for now to discuss plan moving forward for Gratitude Health, saying news of Roy’s passing was still too raw.
Warren, who was adept at working small-cap stocks to bring his ideas to fruition, had operated publicly traded co called Bravo Brands that in late 1990s brought to market what likely was first vitamin-fortified, shelf-stable flavored milk, which got picked up nationally by megabottler Coca-Cola Enterprises. “One of the most innovative and creative thinkers I ever had the chance to work with,” recalled Hal Kravitz, who worked out deal from CCE side. “Many of his ideas were simply ahead of their time.” When that ultimately didn’t pan out, indomitable entrepreneur launched another publicly traded co, Attitude Drinks, which developed functional protein recovery drink called Phase III using ultrafiltered milk, innovation that anticipated later wave of lower-calorie milk shakes from cos like Fair Oaks Farms.
Soda industry advocates are as hot as the LA Dodgers in California this year and local politicians ain’t happy. Yesterday, a bill proposing to put health warning labels on cans and bottles of sugared drinks was pulled because it didn’t have enough support to get out of committee. That marked the 5th bill taking aim at soft drinks in Calif that went down to defeat since Feb. “It is a remarkable score card for the industry, which brought in an army of lobbyists and consultants, most of them political insiders, and poured contributions into the campaigns of lawmakers, including 14 of the 15 members of the committee where the last bill was shelved,” lamented LA Times. While state reps blame “Big Soda,” bev reps “reject claims their clout ruled the day” but instead argue “lawmakers heard their arguments that the proposed legislation, including higher taxes, was an overreach and not supported by the public,” noted Times. Besides the warning label bill, efforts led by American Bev Assn and other advocates have shut down the following in Calif since Feb:
- AB 138 pushing for a soda tax of 2 cents per ounce on sugared drinks. Didn’t make it out of committee.
- AB 764 targeting “soda discounts.” It “would bar beverage companies from giving a distributor or retailer a discount as an incentive to sell sugar-sweetened sodas.” Being held ’til 2020 for lack of support.
- AB 765 checkout display ban. Proposal to ban stores from stocking sugared bevs by checkout areas to cut down on “impulse buys.” Didn’t make it out of committee.
- AB 766 or the “Big Gulp” ban, to prohibit retailers “from selling an unsealed beverage container that is able to contain more” than 16 oz, except for waters. Didn’t make it out of committee.
Promos this holiday weekend seem to be aggressive but not on the far side of rationality, judging by our perusal of large-format retailers’ flyers. We didn’t spot so much action on prior traffic drivers like Sparkling Ice and La Croix but lotsa deals to be had on Coca-Cola hydration brands like Powerade, Body Armor and Smartwater. Here’s some of the dealing we encountered in bevs:
Target
Body Armor 99 cents per 16-oz bottle, $5.99 per 8-pk of 12-oz bottles
Vitaminwater Zero $4 per 6-pk half-liter bottles
Fiji Water 1-liter, Bai 18-oz, 3 for $5
La Croix 8-pks of 12-oz cans, 3 for $9
Pepsi, Mountain Dew, 12-pks of 12-oz cans, 3 for $12
Bashas’ Phoenix
Powerade 32-oz, 50 cents each if buy 15 (card holders)
Coca-Cola, Dr Pepper, 20-pks of 12-oz cans, $4.88 if buy 2
Canada Dry, RC Cola, 2-liter, 99 cents (first 5)
Alkal8 Water, 20-oz, 79 cents
Gatorade 8-pk, 20-oz, $3.99 (buy 2)
Bragg Organic Apple Cider Vinegar, 32-oz, $4.49
CVS
Fiji, Essentia or Life WTR, 1-liter, $1.99
Red Bull 12-oz, 2 for $5 with card
AriZona Iced Tea, 23-oz can or 20-oz bottle, 4 for $2|
Rockstar 16-oz, 2 for $3.50
La Croix 6-pks of 12-oz cans, 2 for $6
Jewel Osco, Chicago
Powerade 32-oz, 49 cents (when buy 10 or 20)
Gold Peak Tea 18.5-oz, Body Armor 16-oz, Vitaminwater 20-oz, Smartwater 700-ml, 5 for $5
Smartwater Alkaline or Antioxidant extensions, 1-liter bottles, 4 for $6
Coca-Cola, Pepsi, Dr Pepper, 7 Up, 12-pks of 12-oz cans or 8-pks of 12-oz bottles, 4 for $10 (if buy 4 or 8)
Canada Dry or Dasani sparkling water, 8-pk of 12-oz cans, 4 for $10 (if buy 4 or 8)
Dr Pepper, 7 Up, Canada Dry, Squirt 2-liter bottles, 79 cents (if buy 4 or 8)
Red Bull 12-oz cans, 4 for $8
Teavana 14.5-oz, 2 for $4
Fiji 1.5-liter, 2 for $4
Chameleon Cold-Brew Coffee, 10-oz, 2 for $6
Snapple 6-pk of 16-oz, Straight Up Tea 6-pk of 18.5-oz, $3.99
Naked Juice/Smoothies, 15-oz bottles, 2 for $5
Slice is officially back. Former soda trademark abandoned by PepsiCo has been restaged by Chicago entrepreneur Mark Thomann as a juice-infused sparkling water targeting those who’re tiring of La Croix. It’s finally set to make its debut this month at Chicago’s Taste of River North foodie event, packed in brightly hued 12-oz conventional cans, in Raspberry & Grapefruit, Blackberry, Mango & Pineapple and Cranberry & Apple flavors. They all come in at 25 calories via organic fruit juices but no added sugar.

