Beer Marketer's Insights

Beer Marketer's Insights

Life on Earth said it’s enlisted Haralambos Beverage to distribute its Just Chill brand thru its Southern Calif territory. Haralambos vp sales Steve Juarez cited brand’s appeal as homegrown in SoCal as warranting effort to expand its presence . . . Cannabis player Rocky Mountain High Brands has teamed with How Sweet It Is Fudge & Candy to offer hemp-derived CBD-infused chocolates, hard candies and baked goods in US via jv called Sweet Rock LLC that’s 51% controlled by RMHB. First up are chocolate bars containing 120 mg of CBD, due in 4-6 weeks, with Lipari Food committed to picking up distribution, said RMHB ceo Michael Welch . . . In intriguing collaboration being flogged at Fancy Food Show, New Belgium Brewing has teamed with sustainable meat marketer Niman Ranch to offer range of barbecue items produced with Fat Tire Amber Ale, including Fat Tire Beer Bratwurst, Fat Tire Spicy Cheddar Beer Bratwurst, Pulled Pork with Fat Tire BBQ Sauce, Shredded Beef with Fat Tire BBQ Sauce and St Louis Ribs with Fat Tire BBQ Sauce. Partners will get the word out at upcoming Tour de Fat bicycle races . . . A few weeks ago we reported from afar on new concept store opened by c-store giant 7-Eleven in Dallas that features “made-to-order coffee, cold-pressed juices, smoothies and aguas frescas, a bar with wine, beer, kombucha, nitro cold brew and teas on tap,” per one local report (BBI, Mar 18). Contact encountered at Fancy Food Show yesterday said she’d had chance to pop into store and was stopped in her tracks by banner heralding one offering there: Organic Slurpees. At BBI, we’re not sure whether that’s symbol of advance or decline of civilization, but are just passing it on.

Major entry in RTD coffee mecca that is Japan is Suntory’s 27-year-old Boss brand, featuring icon of pipe-smoking, somewhat sinister character on can. Tho it’s been available in endemic Asian retailers via stickered-over Japanese version, Suntory this year has deemed the time right to bring version of “flash brewed” entry that’s tailored to American market via Denver-based Boss Coffee USA unit. Shelf-stable item is out in 8-oz steel cans in NY, as well as in Safeway and King Soopers groceries in Colo and perhaps other markets, as well as on Amazon. According to BossCoffeeUSA.com, line is being offered in 2 versions packed in 8-oz slim cans: Cold Black Coffee (sugar-free entry at 10 calories) and Cold Café au Lait (with 19 g of sugar, for 120 calories per can). Each clocks in at 140 mg of caffeine per can. Entry pushes back vs cold-brew craze by emphasizing conviction that “true coffee flavor can only arise from beans when brewed at ‘hot’ temperatures, as website explains. Website copy romances style’s Japanese heritage but doesn’t emphasize Suntory ownership.

“Best hemp creamer ever!” screamed Elmhurst ads in show daily at Fancy Food Show this week. “OK,” they added parenthetically, “it may be the only, but still.” Elma, NY-based co built on ashes of defunct Elmhurst Dairy continues to proliferate plant-based entries. The Hemp Creamer debuted in Original Unsweetened, Hazelnut, Vanilla and turmeric-containing Golden Milk, each claiming 350 mg of Omega-3 fatty acids per serving and claiming optimal ration of 3 parts Omega-6 to 1 part Omega-3. The 3 sweetened entries each contain just 1 g of added sugar. Among other entries displayed at expansive booth were flavored additions to recently intro’d oatmilk creamer: French Vanilla and Hazelnut.

What if America’s master chefs were invited to unleash their best ideas for sustainably sourced packaged foods and bevs that might extend their reach beyond the rarefied precincts of high-end restaurants?  That’s premise of co called Render Food that’s so far enlisted chefs associated with esteemed eateries like State Bird Provisions, Duna and Bar Tartine for puffed quinoa snack line and pair of bev entries, starting in natural/specialty channel in foodie meccas like SF and NY.  In chat at Fancy Food Show yesterday, cofounder/ceo Dana Peck said co’s process is to approach chefs with substantial followings and solicit their ideas on what’s exciting, even if it’s beyond purview of what they’re likely to get to at their own restaurants.  The ideas need to be crafted from best ingredients and taste delicious, as well as being better for you and better for the planet.  After funding initial stages via friends & family, co now is embarked on angel capital round in range of $1.5 mil, Peck told us.

As noted, portfolio started with State Bird Crunch, creation of Michelin-starred chefs Stuart Brioza and Nicole Kraskinski of State Bird Provisions in SF.  On bev side, James Beard-winning chef/author Nicolaus Balla of Duna in SF has created Bryner Savory Brine Drink that mixes repurposed pickle brine from area’s Sonoma Brinery with veggies and spices, at $3.79 per 10-oz bottle.  The items contain about 3 g of sugar and are out in Smoky Tomato Chipotle, Carrot Aji and Beef Horseradish flavors.  “Nobody’s updated V8 in a generation,” Dana explained.  Another Beard-winning chef, Cortney Burns, author of Bar Tartine Cookbook, has created Weyla Sparkling Whey Drink that mixes whey repurposed from Point Reyes creamery in Sonoma County with juices and spices, at $3.99 per 10-oz glass bottle.  They contain only 4-5 g of sugar and are out in Cranberry Ginger Hibiscus, Strawberry Fennel Tarragon and Blueberry Juniper Orange flavors.  The chefs are identified and their stories told via label in copy.  All the items get to retail via broadliner UNFI.

By now snack line is in about 900 doors, mainly on natural side, including Whole Foods, Rainbow Grocery and Molly Stones in Bay Area, Fairway chain in NY and some Target stores.  The bevs have made their way into likes of Fairway and Westside Market in NY, Bi Rite and Molly Stone’s in Bay Area and foodservice channel.  Having launched 3 lines totaling 9 sku’s in 14 months, Render will focus for now on supporting those rather than launching new platforms with new chefs, tho flavor extensions will be coming, Peck said.  Next collabs likely will involve chefs in LA and NY areas.

Dana brings unusual background, as Manhattan-raised foodie kid who by high school years was summer-interning at acclaimed restaurants like Gramercy Tavern.  After series of restaurant jobs, she did squeeze in some college – at Yale – then worked for William-Sonoma in SF before getting law degree at Univ of Mich and doing stint doing corporate law in which she saw inner workings of deals involving likes of Popchips and various wineries.   Her partners in venture are culinary scientist Ali Bouzari and his partner at Pilot R&D, Dan Felder, a former R&D chief at Momofuku restaurant empire.  Info at RenderFood.com.

Chris Campbell, who stewarded Chameleon Cold-Brew thru increasingly crowded segment to successful exit to Nestle, has quietly moved on, handing off reins to his coffee chief Matt Swenson. Chris, who came from consulting side to cofound Chameleon with Bennu Coffee’s Steve Williams, confirmed his exit this morning, saying he’d left 2 Fridays ago, with plans to spend summer recuperating with family from arduous run at Chameleon, then figure out next career move, likely mission-driven but not necessarily in food/bev realm. In meantime, he’s been making investments in intriguing brands. His successor Swenson had come to co as coffee chief after spell running US operations out of Brooklyn for respected Nobletree Coffee, now advancing to title of chief product officer after being given nod by Nestle to take over Chameleon in Campbell’s wake.

CSD prices rose another half a percentage point to avg +5.6% hike last 4 wks thru Jun 15 in Nielsen all-channel data reported by Morgan Stanley’s Dara Mohsenian.  Each of Big 3 suppliers posted healthy increases.  But that seemed to exact a toll in volume, down further to -3.3% for 4 wks, from -2.6% for 12 wks in all-channel stores.  Diet brands (-1.6%) lost much less volume than full-calorie (-4%) last 4 wks.  Coca-Cola CSD volume decline doubled to -2% as its avg price increase was up a full point to +6.4% last 4 wks.  PepsiCo CSD volume declined 5.6% (vs -4.1% for 12 wks) on avg price gain of 4.5% last 4 wks.  Keurig Dr Pepper slowed its decline a bit but volume still off 3.4% last 4 wks as co posted a solid 7% price increase for 4 wks.  Private-label CSDs were off 1.8% on a more modest price increase of 2.2% last 4 wks. 

Energy Volume, Prices Dip; Bang Rollin’  Energy drinks’ volume gain slowed a bit to +4.1% for 4 wks vs 5% gain for 12 wks.  That’s even as avg price increase came down a bit to matching +4.1% for 4 wks.  Monster Energy (including Reign) slowed its volume decline to -2.4% on healthy avg price gain of 5.1% last 4 wks.   MNST dollar sales were off just 0.5% in gas/c-stores for 4 wks and -0.9% for 12 wks, noted Dara.  “Reign added ~680 bps to MNST sales growth in the 4-week period reaching ACV of 38% in the last week,” and up to 86% in gas/c-stores, he added.  Red Bull volume increased 2.5% (down from +4.3% for 12 wks) on flat pricing last 4 wks.  Tho under assault from Reign and other brands, Bang still putting up huge gains: volume up 414% with a 5.1% avg price increase last 4 wks.  “Bang market share was 7.8% in the last week of data,” down a tick from 7.9% prior 4 wks, wrote Dara.  Bang at 8.2 share in gas/c-stores for the last week.  Rockstar’s slide continued, with volume down 20.5% on 3.3% price gain.  PepsiCo energy brands off 13.4% with solid 8.1% price hike.

Sports Decline Further Despite Body Armor Gains  Sports drink volume slid 6.3% (vs -4% for 12 wks) on avg price increase of +4% last 4 wks.  PEP (Gatorade) volume was off 5.4% (matching 12-wk decline rate) on modest avg price increase of +0.9% for 4 wks.  KO (Powerade) volume dropped 16.5% (down from -8.7% for 12 wks) as avg prices went from flat to +1.8% last 4 wks.  Body Armor volume gains coming back down to earth a bit, yet still up 48.5% for 4 wks compared to +70.7% for 12 wks, 103% for 52 wks.  Avg price increase was at +2.1% for 4 wks.  Body Armor, of course, is Powerade stablemate within red system.

Flat Water  Bottled water volume held just about even last 4 wks on a modest avg price increase of 0.8% in all-channel stores.  Nestle water volume decline eased a bit to -7.7% (vs -10.6% for 12 wks) as its avg price increase was cut by several percentage points to +3.4% last 4 wks.  Coca-Cola water volume was off 4.9% on avg price gain of +2.5% for 4 wks. That’s down from +3.4% price increase for 12 wks.  PepsiCo water volume was off 1.7% (vs -0.9% for 12 wks) with a tiny (-0.2%) price dip.  Private-label bottled waters slowed to 5.1% gain (down from +9.3% for 12 wks) with avg prices up just 0.2%.

In what is undoubtedly a surprise to many observers and even many of the participants, the 8-person jury released its verdict in favor of Constellation reportedly in about an hour and before noon. "We are pleased with the outcome of this trial and remain committed to continuing to operate in accordance with the terms of our sublicense agreement as we work with our distributor and retailer partners to continue to build brands consumers love," said Constellation Brands communications vp Maggie Bowman.

Joe Tea, which has ridden its distinctive glass-bottle line into substantial presence as unaligned RTD tea marketer, is moving more overtly into energy segment with entry that represents its first canned effort.  NJ-based co operated by Steve and Ann Prato has repurposed its well caffeinated Half & Half glass-bottle entry as canned Joe Tea Energy play in 16-oz packs boasting identical caffeine payload of 160 mg as Monster Energy (“half & half with extreme caffeine”) and similar black/green color palette.  Of course, its emblematic pickup truck icon – with giant wheels – take center stage on front label.  “Sleep when you are dead,” advises sell sheet.  “We’ve never addressed the canned business,” Steve reminisced, but trying to hit energy occasion via glass bottle seemed limiting.  Besides, after having successfully proliferated tea sku’s and entered the snack biz, Joe brand would seem to have earned the right to take experimental approach, he figures.  Big block letters on rear panel of can take duly unsubtle approach characteristic of energy category, urging, “BLOW THE DOORS OFF.”  Top of can denotes that entry is at “Force Level 10,” clearing way for other entries with lesser caffeine levels.  Ann Prato didn’t disguise that undertaking was arduous one, given squeeze on both cans and can-processing capacity these days.  Ann recalled an earlier entry that was more conspicuously positioned as an energy entry dubbed Turbo Tea that was eased out, likely during period that energy drinks and caffeine were briefly controversial on Capitol Hill.

Co is making other moves, too.  The Pratos’ son Sander, recently out of college, has joined the co in biz development role, presumably bringing millennial savvy to Steve’s instinctual efforts (brand’s bold pickup-truck graphics have direct root in his earlier experience in t-shirt biz).  And co has leased its own warehouse in Netherlands, enabling it to serve as importer of Joe teas and snacks, eliminating what’s proved a hurdle to enlisting small distributors in Europe, who’d prefer not to have to handle that role.

Cold-brewed coffee player Rise Brewing has done a little Marie Kondo-style pruning of its portfolio while bringing aboard seasoned Health-Ade exec to run sales.  With its shelf-stable 7-oz cans having proved out, Conn-based co is finally ready to move on from the 11-oz refrigerated cans with which it started, with the deliberate move yielding “seamless transition,” coo Melissa Kalimov told us at Rise booth at Fancy Food Show at Javits Center in NY yesterday.  And after playing crucial role pioneering idea of citrus-inflected cold-brews, Rise has made no doubt difficult decision to discontinue them, at least for now, due to polarizing nature and difficulty explaining concept.  Melissa wished smooth sailing to La Colombe and to Starbucks, which followed Rise into segment (Starbucks via current test in Pac NW), saying if they’re able to better establish idea, Rise may be back with its own.

Meanwhile, it’s continuing expansion, earlier this year enlisting Critical Mass Group to represent it in LA, where retailers like Erewhon and Gelson’s have picked it up and brand has won authorization in Bristol Farms, and Andy Stallone’s SAS Marketing to represent it in South Florida.  Those augment DSD presence Rise has enjoyed in NY via Rainforest Distributing.  And it’s just brought aboard the 3-year Health-Ade vet Abby Redick to run sales from her base in Asheville, NC.  After working for sales jobs for Health-Ade out of numerous US regions, Redick brings both national and local market knowledge to Rise.

It’s not all prudent pruning at Rise.  Its oatmilk-based cold-brews are picking up steam, heading into retailers like Fresh Market, Heinen’s and Lucky’s, and the painstakingly crafted oatmilk upon which it’s based will make its own debut this Aug.  Kalimov said she’s well aware some outside co have wondered whether there’s great opportunity in increasingly crowded oatmilk segment, but she views it as a coffee-adjacent category that pairs well with co’s keg biz and can serve as a door opener for retail accounts that say they’re already full up with cold-brews and might otherwise rebuff Rise.

 Keurig Dr Pepper, which wields its longstanding partner brand Penafiel as modest counter to explosively growing Topo Chico imported Mexican water now owned by Coca-Cola, said it’s withdrawing unflavored versions of brand after independent lab tests revealed it to contain “violative” levels of arsenic exceeding FDA’s standard of 10 parts per billion.  Effort was prompted by warning last Tues from Center for Environmental Health, which had urged retail partners including Whole Foods, Walmart and Target to stop selling product.  KDP said arsenic level revealed in tests was still well below threshold connected to chronic disease, but it’s still pulling all its 600-ml and 1.5-liter PET bottles, and inviting consumers to return their purchased products to stores where they bought them.  “Penafiel is a small brand in the US and quantities in the marketplace are very limited, given that Keurig Dr Pepper has already begun to withdraw the products from the market,” per announcement released Fri after markets closed and posting on FDA website on Sat morning.  Recently installed filtration equipment at Penafiel’s plants have eliminated problem, KDP assured.  In its warning, CEH had also warned that Whole Foods’ own Starkey bottled-water brand (positioned as “deep down good” and sourced from Idaho mountains) contained excessive levels of arsenic; no word so far on status of that brand, which seems to still be listed as available on retailer’s website.