Beer Marketer's Insights
With plastic backlash intensifying, PepsiCo announced coupla moves to further push co towards its recycling goals to make 100% of its plastics recyclable by 2025. Beginning next year, PEP will offer Aquafina in aluminum cans to US foodservice outlets such as contracted restaurants and stadiums, while also testing concept at retail. With “an industrywide backlash against plastic,” PEP’s response will be “one of the highest-profile cases of companies ditching plastic” so far, noted Bloomberg. PEP will also pkg its Life WTR brand in 100% recycled PET, which co noted “builds on success of Naked Juice, the first and only nationally distributed juice” in 100% rPET. “Tackling plastic waste is one of my top priorities and I take this challenge personally,” per statement from chmn/ceo Ramon Laguarta. “We are doing our part to address the issue head on by reducing, recycling and reinventing our packaging to make it more sustainable, and we won’t stop until we live in a world where plastics are renewed and reused,” he added. As reported in BBI, as issue rises on consumers’ radar, we’re seeing influx of canned waters in recent months, even as incumbent players scramble to vet alternatives, at time that both cans and can packing capacity are squeezed. That was issue of considerable discussion at this week’s Fancy Food Show, with several bottled-water players confiding to BBI that they’re eyeing alternatives as key corporate accounts move to ban plastic from their cafeterias and microkitchens.
Back Bay Roasters, created by youthful founders of office fresh-food operation called LeanBox, is taking vertically integrated approach as it gets ready to expand its affordably priced, HPPed cold-brewed coffees and teas from its Northeast base, with 3-liter spigoted TapBox proving apt door-opener at both corporate accounts and among home users.
Based in Wilmington, Mass, privately funded co maintains most of production process under its own roof, from roasting coffee beans to steeping them to bottling them, with exception of HPP process that goes to tolling partner located in Mass. Plant currently has capacity to do 10K gals of cold-brew per day, while bottling line handles speed of 80 units per minute, said cofounder Doug Caplan, who got hooked on coffee while in school in Seattle and helped launch Boston-based foodservice play called LeanBox with Shea Coakley and Kyle Roy, his partners at Back Bay. LeanBox, which brings fresh food to corporate environments via smart refrigerators, is distributor of refrigerated Back Bay offerings thru its New England footprint.
Working thru broadliner UNFI, LeanBox and foodservice giant Sysco, Back Bay has been plying retailers like Stop & Shop and Giant along East Coast while cracking restaurant chains like Just Salad in NY. It’s open to adding other distribution options too, starting with Bozzuto’s in core market. Stop & Shop has been impressed enough with brand’s performance to approach co to produce Back Bay-branded teabags, which will hit chain this Sep. With brand resonating in core territory, co is ready to expand west and south into chains, along way building up its ecommerce biz, to reach both businesses and consumers, Caplan said. And marketing is stepping up, with heavy sampling activity at retail along with affiliations like Pan Mass Challenge bike-a-thon, where Back Bay just succeeded Dunkin’ in role of official coffee brand.
Back Bay currently goes out in trio of HPP coffees and teas as well as 3-liter (101-oz) TapBox that’s proved popular among both foodservice and home users, offering 17 servings for $10-11, perhaps a bit under NY-based rival Wandering Bear and its 96-oz tap box. The RTD lineup in straightwall 12-oz bottles includes unsweetened, uncreamed entry called Beacon Black as well as The Commonwealth Vanilla Latte, with whole milk, cane sugar and natural vanilla extracts. Tho coffee has been main focus, founders felt they’d detected gap in RTD tea space for HPPed entry that would extract broad range of flavor notes while minimizing need for sugar as sweetener, just 5 g. Resulting entry, Harbor Side Half & Half Cold Brew Tea, sports short ingredient label consisting just of water, black tea leaves, cane sugar and fresh lemon juice. The single-serves go out at $2.99, promo’d at 2 for $5.
Back Bay also offers 3 bagged whole-bean coffee blends and single-origin beans from Guatemala and Rwanda. “Love your grind,” urge marketing materials. Among ancillary lines of biz, Back Bay has copacking biz for unidentified café chains. Info at BackBayRoasters.com.
Cleveland Browns are saying they were stiffed by Brooklyn-based co called Hard Beverages that claimed to be offering new breed of caffeinated bev infused with vitamins and supplements in flavors like Tonic, Club and Citron. Citing papers from Common Pleas Court, Cleveland.com reports that Browns contend Hard failed to make a single payment on $524K sponsorship deal signed in 2018 and due in 4 equal installments. Football team wasn’t commenting, and news site said it couldn’t find any way to reach co, which wasn’t repped by lawyers at earlier arbitration proceeding and repeatedly missed deadlines and offered filings in violation of guidelines .
Beset by legal woes and seeing once-red-hot La Croix brand erode, National Beverage has decided to engage directly with consumers to refute what it derides as “buzzworthy” publicity that it may take months or years to address in court. In letter to “our La Croix family” distributed via Twitter and other social-media channels, co argues that “we recognize that a brand that presents itself as pure, innocent and healthy has an obligation to its consumers,” and goes on to offer point-by-point discussion of ingredients and packaging including certified-natural and non-GMO nature of ingredients and status as one of first cos to use cans without BPA liners. Pkg changes under way to put brand in compliance with revised fed regs will state that brand is Whole30, non-GMO and produced without a BPA liner, letter informs customers. “We never have, and never will, make false statements about our products,” letter goes on to say. Among legal challenges are cases charging it doesn’t use natural ingredients, that it hasn’t used BPA-free cans as long as claimed and sexual harassment. FIZZ shares have eroded from $118 last summer to current range in low $40s.
Starbucks unveiled in-store summer menu dominated by Teavana Flavored Tea Lemonades that will linger on menu even once the weather turns cold. The entries are debuting in Peach Green Tea, Guava White Tea and Blueberry Black Tea flavors, all sweetened with liquid cane sugar and hand-shaken with ice. Seattle roaster also has augmented its Cloud Macchiato line with Iced Cocoa Cloud Macchiato, which includes toffee nut syrup and espresso under canopy of whipped cold milk and egg white foam . . . In another sign of how alc segment is increasingly picking up on cues of NA side of biz, Connecticut craft brand and contract brewer Two Roads is looking to differentiate its new hard seltzer, H2Roads, by touting that it’s made from “100% real fruit in lieu of extracts and flavorings,” echoing stance brands like Spindrift have taken in challenging rivals like La Croix and Hint. Positioned as a “craft hard seltzer,” H2Roads clocks in at 4.5% ABV in Raspberry, Grapefruit and Cranberry Lime flavors, in calorie range of 95-115. “Using extracts or processed flavoring agents was a non-starter for us,” said brewmaster Phil Markowski. Since “the natural byproduct of real fruit is real color,” that offers further differentiator vs mostly clear-liquid offerings from competitors. Recall also that Bai creator Ben Weiss launched new brand in that space called Crook & Marker that employs foodie talisman ingredients like ancient grains to take more crafted position (BBI, Oct 29).
Following departure last mo of Beyond Beer vp Randy Ornstein, Anheuser-Busch has now named 26-yr A-B vet Sanjiv Chhatwal to become new Beyond Beer vp. This is important role at A-B as it seeks to build $1 bil biz in Beyond Beer, including both alc and non-alc bevs (including non-alc beers). For past yr, Sanjiv has served as Anheuser-Busch InBev’s vp of sales in India. But he’s well known to distribs, having spent previous nearly 5 yrs as region vp in Southeast and several yrs before that as vp of trade mktg. In brief interview with our sibling newsletter INSIGHTS Express, Sanjiv talked about “huge growth area” of Beyond Beer, where “we need to innovate and change the game” with a “challenger” mentality. That’s main lesson Sanjiv learned in India, he said: “how to act as a challenger and question the status quo.” There are many segments that are “ripe for disruption,” Sanjiv said, and AB will bring that “innovation mindset . . . the mindset of a startup.” (In fairness, hard to see how this differs from playbook employed by Ornstein, who played key role in creation of Teavana iced tea brand and was involved in plethora of launches in new and hybrid categories.) Another point from Chhatwal, citing lessons learned in prior A-B roles: “We cannot win if we don’t work closely with wholesalers.” (On NA side, as we’d reported, A-B got off to rocky start with Teavana and Hiball launches by proffering contract that some indie wholesalers found repugnant, but over past year co seems to have made progress mending fences across the board.) Meanwhile, A-B has fallen far behind in booming hard seltzer segment and reportedly is trying to push up Natural Seltzer launch, with other initiatives on the way. No reason had been given for Ornstein’s departure, which came as a surprise to many (BBI, Jun 5).
LA-based Better Booch has brought in $2.5 mil led by Crush Ventures, not long after its bigger neighbor Health-Ade Kombucha – which similarly includes ex-musician among founders and started out in LA-area farmers markets – is said to have raised substantial new round of its own that’s believed to include re-ups by minority investors Coca-Cola and First Beverage Group. For 7-year-old Better Booch, founded by musicians Trey and Ashleigh Lockerby, the raise from offshoot of artist mgmt firm Crush Music brings both growth capital and connections that will help get brand sold at music venues and bars, as co told BevNet and FoodNavigator. Ashleigh noted to BevNet that there’s possibility that Crush artist roster that includes likes of Sia, Green Day and Weezer may get involved tho no discussions have occurred yet along those lines. Unidentified local musicians were among the investors. This represents first outside capital raise for co that’s focused mainly on SoCal so far. As for Health-Ade, whose founding trio includes former session guitarist Justin Trout, we’ve heard from multiple sources that big raise was completed in recent months, tho we haven’t been able to glean any details, with contacts at Health-Ade, Coca-Cola and First Beverage Group declining comment to our inquiries in recent weeks.
Bragg Live Food Products, which for over a century has quietly staked out commanding position in drinking vinegar while maintaining down-home brand vibe, has been acquired by group consisting of investment firms Swander Capital and Dragoneer Investment Group, along with singer/songwriter Katy Perry, actor Orlando Bloom and Pressed Juicery founder Hayden Slater. Terms weren’t disclosed. Since its founding in 1912, Santa Barbara, Calif-based co has promoted widening range of products based on apple cider vinegar and other fermentable ingredients, including condiments, seasonings, dressings, amino acids, nutritional yeast and RTD bevs. Co founded by Paul Bragg, who operated progenitor of modern health food store, also maintains line of self-help books and claims to have sold over 9 mil copies of Apple Cider Vinegar-Miracle Health System. Its ceo of past 65 years, Patricia Bragg, not only is daughter of founder and self-styled “nutritionist to the stars,” but has distinction of having given Perry her first guitar, during the many years the 2 Santa Barbara families have been close. In statement, Perry said, “My mother introduced me to Bragg products, and it’s been a staple since my childhood in Santa Barbara and continues to be a wellness remedy in my professional vocal career. I’m deeply familiar and aligned with Patricia’s mission to make the world a healthier and better place, and I am so honored to have the opportunity to be a part of the team that will bring the magic of the brand to a new generation of consumers.” Swander Pace’s investments have included likes of Kicking Horse Coffee, Oregon Chai and American Hard Cider, while Dragoneer is familiar from tech space via investments in high-fliers like Airbnb, Alibaba, Dollar Shave Club, Etsy, Slack, Spotify, Square and Uber.
After years of staking identity on cold-chain lineup, Chameleon Cold-Brew has launched canned shelf-stable line that will go out via DSD system, starting in San Diego and its Austin base. At Fancy Food this week, Nestle-owned co was showing pair of black coffees and pair of lattes in 8-oz cans priced at $2.99 that will go out via “DSD across the board,” per sr dir of business & field development Rory Mulcahy, who said co so far has enlisted as partners Lenore in San Diego and Capitol Wright in Austin. They’re all organic-certified, in Black and Churro sku’s on black side and Original and Cinnamon Dolce sku’s on the latte side, both of them made with whole milk.
It’s interesting turn of events for co whose ceo Chris Campbell had long looked with skeptical eye at shelf-stable entries of his Austin-based rivals Kohana and High Brew. But Chameleon team said the line meets their standards, and in any case Chris just departed co, tho he’s been succeeded by new leader, Matt Swenson, who brings big coffee cred from Nobletree Coffee (BBI, Jun 25). So it’s unclear whether move into shelf-stable played any role in Campbell’s moving on, but it brings into DSD-friendly mix an early, major player in space with eye-catching branding.
At show co also was showing multiserve bottles with new oatmilk-inflected cold-brews, which are entering Target and Whole Foods and distributed by refrigerated house Rainforest in NY. And it was showing its whole-bean coffees, in Single Origin, Dark Black Bold and The Day Breaker sku’s, available in 12-oz, 16-oz and 5-lb bags. Parent Nestle, of course, now is major partner of Starbucks in grocery coffee biz.
Dirty Lemon marketer Iris Nova is planning to spend $100 mil over next 3-5 years to expand the bev offerings it sells via its text-based “conversational commerce” platform, including internally and externally developed brands, TechCrunch reported. “This is the way for us to compete with the bigger beverage companies,” founder/ceo Zak Normandin told site, saying he’s open to working with both established cos and startups exploiting shift away from “high-calorie, high-sugar beverages” and get their products to users on same day or next day in every major US market. The remarks embellish earlier statements from co, which last Dec disclosed recently completed $15 mil seed round aimed at expanding portfolio to include undisclosed bev brands due this year, further developing its tech capabilities and maybe investing in early-stage bev brands that would garner access to its so-called cCommerce platform (BBI, Dec 21). Among investors then was Coca-Cola’s VEB incubation unit. Normandin told TechCrunch that co already has made 2 external investments, which he didn’t identify, while prepping launches of several of its own new brands, including Tres Limon line of non-alcoholic aperitifs. Goal is to have 12 new brands in market this year, starting Jul 1.

