Beer Marketer's Insights
Sonic drive-in chain has been extensively airing spots heralding slushies made from Red Bull that hit stores in late Apr in Red Bull and Cherry Limeade Red Bull, the latter harnessing a staple Sonic flavor. The large size, priced at $4.99, contains a full 8-oz can of energy elixir. One ad features comedian TJ Jagodowski astride a dirt bike in Sonic parking lot exclaiming, “I’m feeling confident, feeling pumped, I wanna JUMP this thing!” “I don’t know if that’s such a good idea, TJ,” his friend says.
Organic food sales rose 5.9% to $47.9 bil, for a 5.7% share of food sold in US, Organic Trade Assn reported. With organic produce serving as “gateway” into category for millennials, organic fruits/veggies grew 5.6% to $17.4 bil, but organic dairy slowed for 2d year, with organic dairy/egg sales edging up just 0.8% to $6.5 bil, partly because millennials are shifting away from livestock-based products to plant-based ones. That’s stepping up need for innovation in such areas as higher-protein milk bevs, full-fat dairy products, new flavors and grass-fed products, OTA believes. Organic non-food category surged 10.6% to $4.6 bil. The progress came in the face of headwinds from a US govt that’s been slowing advancement of organic standards, said OTA exec dir Laura Batcha . . . Probiotic drinks like kefir and kombucha are picking up steam in Europe, Zenith Global is reporting. Bath, UK-based research house says Western Europe kefir market is anticipated to grow by 12% a year thru 2023 as UK, Netherlands, Italy and Spain embrace fermented dairy drinks that have long been a staple in Russia. Meanwhile, kombucha, in a much earlier stage of development, is anticipated to grow 35-40% annually thru 2023. Tiny (under 1 mil euros) apple cider vinegar market is starting to win interest in countries like UK and Denmark, “indicating this could become another fermented drink market segment of potential,” Zenith believes.
Peet’s Coffee has signed fast-talking comedian Iliza Shlesinger to orchestrate and star in latest extension of “Always justified” campaign, which has been positing RTD cold-brews as suitable reward for arduous pursuits like eating kale, remembering password and wearing yoga pants for legitimate purpose of doing yoga. For Shlesinger, the slim-can drinks are earned by keeping telemarketer touting offshore investment opportunities on the line for personal-best 5 hours, all without disclosing her bank acct # as requested. “Rich flavor, less sugar, always justified,” is concluding tagline. “The jokes come at you fast in this campaign,” reviewed Adweek. Agency is North, based in Portland, Ore . . . Quarterback Kyler Murray, #1 draft pick who landed on Ariz Cardinals, has signed on to endorse Stratus Group’s Perfect Hydration alkaline water, for undisclosed terms. No initial word on how athlete will promote brand . . . Retired Denver Bronco All-Pro running back Terrell Davis has been touting CBD-infused Defy bev for allowing him to pursue vigorous workouts at age 46 while mitigating migraine headaches, TheDenverChannel.com reported after spotting former athlete working brand in city’s River North nabe. “It became clear to me that CBD was something that was working with pain management. It was a game-changer for me,” he told media outlet before it pivoted to discussion of need for Broncos to score more. Positioned as offering “20 mg performance spectrum hemp extract,” the 16-oz PET line is offered in Lemonade, Orangeade and Mixed Berry flavors.
Tho drinking vinegars that are dubbed switchels or shrubs boast authentic story as colonial-era refresher and range of healthful probiotic properties, category so far has proved slow to ignite outside niche uses as cocktail mixer. But youthful entrepreneur from Twin Cities named Melina Lamer says she’s enjoying brisk uptake of her own entry, Superior Switchel, shelf-stable line in glass bottles that positions itself as “the true north of hydration.” It’s out in Honey Cinnamon Kick and Lavender Lemon Lift (sweetened with wildflower honey) and Orange Maple Splash (using maple syrup), packed in clear longneck glass bottles at $3.99, priced vs kombuchas likely to be sitting nearby in cooler. They come in at 60-70 calories per bottle. Lamer has got kegs in mix and may go ahead with shot entry, too.
Encountered at Natl Restaurant Assn Show in Chicago this past weekend, Lamer said she began brewing switchels in college as alternative to Gatorade for athletes like herself. (She played hockey at St Olaf’s.) Throw in some experience working at Whole Foods, and it wasn’t a stretch to move on to making a business out of it, starting in 2015. Minneapolis-based co is certified as woman-owned biz and as B Corp, and it also supports Great Lakes conservation. Tho entrants from Northeast play upon switchel’s heritage as colonial elixir, Lamer notes that switchel also can claim roots in sizable Amish and Mennonite influence in Upper Midwest. So folks in region have proved receptive to idea, enough to support several entrants, including rivals St Paul Switchel and Hobby Farms. Still, tho Superior maintains presence in Midwest, it’s mainly enjoyed success in Pac NW and Southeast, including in Florida retirement communities where word has gotten out about health benefits of vinegar. Lamer said she’s self-funding effort so far. Info at SuperiorSwitchel.com.
At time so-called performance energy brands are enjoying quite a ride, veteran brand called X2 All-Natural Energy Drink is dialing up its own messaging, offering clean entry steeped in easy-to-grasp hydration benefits. “We bring the ability to deliver the same performance, but in a better-for-you offering,” cmo Jon London said today at event in Midtown Manhattan where co announced multi-year partnership with National Fallen Firefighters Foundation. In contrast to some of performance brands, X2 contains only 10 ingredients, all of them likely to be familiar to shoppers, including mix of fast-acting and slow-acting sugars to avoid spike-&-crash effect of some energy entries, Jon indicated. All the caffeine is sourced from green tea.
The NFFF alliance ties X2 to firefighting profession for which adequate function and hydration can be matter of life and death, with 3 components to deal. First, X2 will sponsor 50 stair climbs held around country every year to memorialize the firefighters who lost their lives during 9/11 terror attacks, whether at the scene or via diseases incurred during that period. The climbs, the brainchild of Colorado firefighters, are held at venues ranging from high-rise apartments and hotels to Madison Square Garden and Lambeau Field and involve taking same # of steps, 2,200, as would have been required to get to top of 110-story World Trade Center towers. At conclusion, participant rings bell and reads out name of firefighter being commemorated. Co also will sponsor Be Extraordinary challenge in which consumers can make virtual stair climbs, making contribution to foundation and posting their own stair photos. And X2 also will devote share of sales proceeds to group.
In quick discussion at event today, London, a Boston Beer vet who joined 3 years ago, said co has been exploring ways it can take learnings from its coconut-water-infused Sport subline and apply them to more mainstream core line, whose success in national rollout at Subway chain was enough to induce him to join co 3 years ago. By now brand is in regional 7-Eleven and other c-store chains, scoring its best success in New England, Chicago and Portland, Ore, and lately undertaking push into NY/Mid-Atlantic area, via retail partners like Sunoco gasoline stores and Rudder’s. It’s just exploring possibility of employing DSD in some markets, he said. NJ-based parent co Advanced Bio Development is controlled by PE house Catterton Partners. Brand info at X2Energy.com.
KDP Moves Hopkins into Key DSD Role Being Left by Retiring Collins; McMichael Promoted to Natl Role
Keurig Dr Pepper has named a Keurig vet, Derek Hopkins, to succeed DSD prexy Rodger Collins as the 41-year Dr Pepper vet approaches his anticipated retirement this summer. Tho he comes from coffee-appliance side of KDP, Hopkins is no stranger to DSD, having been recruited in 2015 from role as svp and commercial chief at Bacardi, following earlier roles at Coca-Cola, Anheuser-Busch InBev and Guinness Diageo. And he’ll have at his side as svp DSD David McMichael, a 30-year vet who’s been running southern DSD unit. So transition should be straightforward – though by one school of thought among those in trade, Collins’ departure could usher in period where KDP proves more receptive to overtures by outside players to take over operating some of its bottling territories. NY market is said to be among those where at least preliminary discussions have occurred, tho KDP to date hasn’t confirmed that possibility (BBI, May 9). Some tell us Collins had been skeptical of that potential strategy. But he’ll remain as a consultant, at least for a spell, per KDP announcement this morning.
Collins, with KDP predecessor cos like Cadbury Schweppes Americas Beverages and Dr Pepper Snapple Group since 1978, had played key role in making DPS arguably the most inviting major system for entrepreneurs seeking to scale up, as he stewarded extensive roster of early-stage brands in areas where DPS’ own portfolio didn’t have adequate play. In recent years, that stable of brands had proved crucial to co’s growth – as investor reaction to departure of Fiji Water and Body Armor sports drinks showed. “Rodger’s knowledge and extensive experience have been invaluable to the company during this pivotal time following the merger,” said KDP chmn/ceo Bob Gamgort in statement. “On behalf of the KDP team and our board, we thank him for his extraordinary leadership and congratulate him on a successful and rewarding career. He transitions our DSD operations into the capable hands of Derek, who has a proven track record of successful commercial leadership, and David, who has strong sales capabilities and broad knowledge of the KDP DSD organization.”
In another move announced by KDP today, chief HR officer Meg Newman also will be moving on, with view of finding next role closer to her home in Atlanta, where she’d spent a decade running HR for HD Supply.
Time heals all wounds. So, with the memory not so raw any more, Coca-Cola is invoking one of most famous blunders in marketing by resurrecting New Coke, in synch with episode of Netflix drama Stranger Things set in summer of 1985. That’s when KO changed recipe of Coca-Cola, to immediate backlash that spurred cancellation in just 79 days and return to original formula. Now Coca-Cola trademark dir Oana Vlad prefers to view episode as “arguably one of the biggest pop culture moments of that year” in bringing back recipe as limited-time offering as part of Stranger Things package, as AP reported .
Coupla Keurig Dr Pepper refugees have found new gigs at growth-oriented cos. NY-based Recess has recruited Lauri Breton, longtime Dr Pepper Snapple Group operations exec assigned to run supply chain for Bai after that brand’s acquisition in 2017, to serve in similar role at marketer of hemp-infused sparkling waters. She comes at time brand’s NY distributor, Big Geyser, has helped brand enter 1,400 retailers while also opening popup store dubbed Recess IRL (in real life) . . . Meanwhile, Fla-based Celsius Holdings has named former DPS svp marketing Regan Ebert to its board. Before her 7-year run at DPS, Ebert spent 10 years within Quaker Foods and Frito-Lay divs of PepsiCo.
Call it the Spindrift of countertop devices. Bonne O Holdings said it’s pulled in final tranche of its $7.5 mil Series B financing round that will take to finish line the development and launch of its Sparkel system that infuses flavor of real ingredients – from strawberries to fresh mint and tea – into any liquid, fizzing it up via combo of citric acid and sodium bicarbonate that eliminates need for CO2 tanks or canisters. Round was led by investor co identified as NY Group Partners, with participation from existing investors like Toronto-based Radar Capital. Co is taking pre-orders now, including on Indiegogo at early-bird price of $69, with full launch anticipated by summer.
Sambazon augmented its 12-oz canned Amazon Energy line with a 2d low-calorie extension, Blood Orange Acerola that moves line beyond co’s identity with acai ingredient. Sweetened with blend of cane sugar and stevia that bring it in at 35 calories per can, new entry carries can graphics sporting orange hue, in contrast to deep purpole that characterizes rest of line, which includes Original, Amazon Energy (acai and passion fruit) and lower-cal Acai Berry Pomegranate, all containing natural caffeine hit characterized as equal to 2 shots of espresso . . . HP Hood has set up Café Creatives unit that will attempt to better unify sales of its diverse array of dairy and dairy-alternative brands, buttressed most recently by oatmilks that launch under new moniker Planet Oats . . . Brain Juice marked its first NRA Show appearance by sampling such newer entries as caffeine-infused Active shot, which already has won global authorization within Whole Foods chain. The 2.5-oz Active shot contains line’s core “Brainpower” blend along with beetroot and red spinach extract, plus 111 mg of caffeine sourced from green tea. Co staffers said it made sense to exhibit because shots have been embraced at college campuses, as well as at fast-casual chains that find it to be an easy add-on near checkout. Co’s powdered format also lends itself well to foodservice.