Beer Marketer's Insights

Beer Marketer's Insights

Purity Organic is thinking outside the box for its coconut waters, moving beyond carton format to launch plastic-bottle single-serves. Booth staffers at NRA Show said new entries would debut next month in half-liter bottles in Chocolate, Pineapple and Espresso flavors, augmenting subline only available so far as uncut coconut water in 17-oz and 1-liter resealable boxes. Launch market will be NY, where brand’s coconut waters recently entered Big Geyser after Coca-Cola pulled its Zico coconut water from Geyser in favor of local bottler Liberty. Geyser had long carried the core juice lines of Purity Organic but had been unable to pick up the coconut waters as long as it carried Zico. BG, which is believed to have lobbied for extensions, confirmed pending launch. Meanwhile, as NRA booth reflected, new owner/ceo Doug Abrams continues to migrate brand away from earlier look featuring grid of fruit images across various lines, including classic juices, iced teas, superjuices and canned sparklers.

Spindrift has re-enlisted actress Kristen Bell for summer ad campaign that upholds the joy of authentic things in life – like the real fruit employed by Spindrift in its canned sparkling waters. What’s described by co as multi-million-$ effort via agency The Many employs range of media including print, video and digital audio on Spotify and Pandora to bang home brand’s truly natural recipes, in contrast to flavor systems used by many rivals. In video called “Scientist,” which can be viewed here “Scientist, Bell takes a poke at rival sparkling waters by pointing out that “You know it’s real because real fruit has color. When’s the last time you saw a clear raspberry?” Other videos featuring likes of bodybuilder and telekinesis artist haplessly trying to make for themselves what in theory is essence of simplicity, as in this one. Ads build on prior effort featuring Bell that employed tagline “Yup, that’s it” to herald mere 2 ingredients that Spindrift employs in its sparklers. Also in media mix this summer are 15-second audio ads along with fruit-themed mixtape put together by Bell featuring songs or artists with fruit in their names. Media buyer is AMP agency.

Making first appearance at Natl Restaurant Assn Show as its product is increasingly embraced by foodservice channel, Swedish oatmilk pioneer Oatly brought along packages that devote extensive real estate to brand’s garrulous voice even as streets outside convention center were palette for extensive outdoor campaign that breaks into commuters’ reveries with reminder to check out oatmilk leader.  The campaign breaking along commuter pathways not just in Chicago but also in NY, LA and SF offers 387 unique pieces of creative inserted into transit nooks and crannies “where you’d not likely not be thinking about oatmilk,” said Emily Keene, co’s US media & digital lead.  Beyond those cities, Oatly will reach consumers online via video campaign on YouTube and Hulu that feature co’s distinctive cartons being brought home in unusual ways, say, strapped to pogo stick.  Under US gm Mike Messersmith, all creative continues to be devised and executed in-house, then lobbed to media buyer PHD to meet co’s clever but peculiar directives, such as for separate ads on facing pages in magazines (BBI, Apr 3).

The outdoor campaign centered around transit locations like bus shelters and subways continues with brand’s meta approach of self-referential executions, as in bus ad that advises commuters, “If you don’t have time to read this right now, we’ll just hang out until you come back.”  Another offers the shtick:  “If you don’t read this ad, no worries.  Someone else most likely will.”  “Waiting for someone?  Just look cool and pretend to be reading this,” recommends another.  And above NY subway entrance:  “Oh, it’s you again.”  All feature image of Oatly carton, with its distinct graphic treatment.  Brand-building effort is occurring as co races to bring enough capacity online to meet demand, at time that rivals are coming out of woodwork to play in oatmilk space.  (At show this week, dairy player Chobani revealed itself to be latest – BBI, May 20.)

The 10-second videos feature Oatly carton planted firmly on skateboard whizzing across urban bridge, lashed to front of moped or even Bungee-corded to pogo stick, all to sound of driving rock riff and police sirens.  “In stores now.  Go and get it,” commands on-screen text.  They can be viewed here: Oatly “moped” videoOatly “skate” videoOatly “pogo” video.

Meanwhile, gabletop boxes displayed at NRA booth devoted entire rear panel to diatribes about brand’s higher goals.  For instance, one headed “The cold, hard world of customer feedback” responds to shoppers who wish co would “Stick to oatmilk” instead of opining on bigger themes like equality and sustainability.  “We get it often.  ‘Why don’t you just shut up about what you think and focus on your own products,’” screed opens.  Over course of nearly 150 words, panel goes on to explain co’s priorities beyond just making money for shareholders.

Story last Mon describing Living Apothecary’s product development and expansion efforts erroneously listed Walmart among retailers that brand has recently entered; tho co has pitched Walmart, brand hasn’t been accepted there yet. Brand has entered HEB, Costco and Pavilions chains as reported.

S Cap, a NY-based impact investment fund, has invested undisclosed amount in blenderless smoothie maker Bright Greens, pouched item created by entrepreneur Brian Mitchell in Rockville, Md. Co offers flash-frozen “smoothie cubes” that are tossed into shaker bottle with hot water, in Bright Blueberry, Mintergreen, Peaches & Green and Pineapolos flavors. S Cap also invested in Canadian maker of granola and granola bars called Libre Naturals. They comprise first investments of fund created by Kunal Sethi . . . Red Bull North America is launching summer-themed flavor dubbed Beach Breeze that hits palate with tropical fruit notes but finishes on coconut note. It’s packed in turquoise-colored cans in 8.4-oz and 12-oz sizes . . . Amid clutter of new brands that have entered the market, Vitaminwater doesn’t seem to have quite the ordering clout it used to have with retailers. So word is Coca-Cola has downsized brand’s case size from 24 units to 12 units, move that should make it easier for retailers, particularly inventory-constrained smaller indies, to order range of flavors . . . It looks like Coca-Cola’s African bottling operations will linger in the hospital ward a bit longer. After refranchising discussions with potential partners who’re believed to have included Coca-Cola European Partners and Coca-Cola HBC (Hellenic Bottling), KO said it’s decided to stand pat “for the foreseeable future,” continuing to operate Coca-Cola Beverages Africa as part of a Bottling Investment Group that it’s sometimes described as hospital ward for bottling operations, like those in Philippines too, that need attention before they’re ready to thrive again in outside hands. “While we remain committed to the refranchising process, we believe it’s in the best interests of all involved for Coca-Cola to continue to hold and operate CCBA,” KO explained. Given prior multiple delays, Wells Fargo’s Bonnie Herzog didn’t see development as great surprise, chalking up inability to reach deal to lingering political unrest and foreign exchange volatility.

Under Nestle ownership Blue Bottle may be going on spree of café openings in major metros, but it’s retaining tight focus with RTD coffee biz, taking its time expanding range or tackling conventional grocers. At NRA show, tho, it finally offered 2d sku in its line of unsweetened black RTD cold-brews packed in squat but elegant 8-oz cans, repackaging Original as Bright and adding new Bold flavor, said Jen Nelson, sales mgr for CPG foodservice. Bright is described as offering “radiant and fruited” flavor notes, while Bold delivers “deep and chocolatey” notes. Both are cold-brewed for 12-16 hrs and filtered for “luminous clarity.” They go out at $3.99 as does brand’s only creamed RTD entry, 10.7-oz gabletop of New Orleans Style Iced Coffee. In the works for early 2020 is canned single-origin entry that would take line to new level of sophistication. Given elevated price point, Jen said co is still holding off on making push into mass channels like conventional grocery.

Yogurt giant Chobani, which in recent months has made its first foray into plant-based items, teased a barista-oriented oatmilk at Natl Restaurant Assn show, displaying mockups of gable-topped 32-oz cartons that staffer said are headed to market in fall timeframe, tho details still are very much up in air. She said new entry likely will debut in Original, Chocolate and Vanilla flavors. Co was demonstrating oatmilk’s latte-friendly characteristics by dispensing lattes and the like from allied coffee roaster La Colombe, which Chobani founder Hamdi Ulukaya controls. Elsewhere in booth, Chobani staffers were highlighting first plant-based entries, including on bev side coconut-based drinkable yogurts, in 7-oz PET bottles in flavors like Vanilla Chai (being sampled) and Mango, Strawberry and lightly sweetened plain version. Front panel simply describes them as Non-Dairy Chobani, with lead ingredient listed as cultured coconut blend. They launched in Dec and are trickling out to market now as retailers start to reset shelves.

Organic Valley’s Organic Fuel milk-based protein shakes launched around 5 years back with campaign dubbed “Save the Bros” that went explosively viral by co-opting cause-marketing tropes to urge do-gooders to do their share to shift iron-pumping gym rats away from their addiction to protein shakes that seemed a lot like Muscle Milk. Looking to energize line and broaden its opportunities, the La Farge, Wis-based dairy co-op has made radical pivot, dropping protein content from 26 g to 20 g, cutting sugar by half to 9-10 g per 11-oz pack and switching from PET bottle to resealable Tetra Pak employing so-called Dream Cap, vp sales for emerging channels Wayne Shaker said. The drop in protein in turn has enabled co to lower to $2.99 price point that’s been associated with more female-skewing sibling brand Organic Balance, also in 20 g range. And it’s augmented Chocolate and Vanilla flavors with Coffee flavor containing 86 mg of caffeine. The shift aligns what’s now called simply Fuel in big block letters to similar position to Balance in protein content and price, tho Balance wasn’t on view at booth and Organic Valley execs were keeping their counsel on what future holds for that line.

At National Restaurant Assn show, PepsiCo is addressing consumers’ growing sugar concerns even with highly nutritional bevs like refrigerated juices by adding subline called Half Naked to its Naked Juice brand. Tho still 100% juice in keeping with core Naked premise, line substitutes less caloric juices like watermelon, coconut water and cucumber for mainstay juices like banana. New subline, which already has entered Target chain, initially is out in Peach with Ginger, Watermelon Passion Fruit and Lively Greens flavors, the latter containing 1 coconut, half a cucumber and apple, and one-third of a peach and orange, along with ingredients like spirulina, alfalfa, broccoli, spinach, barley grass, wheat grass and ginger root . . . Also noteworthy at booth, PEP is shifting its Stubborn Soda artisanal-soda lineup from glass bottles to cans, starting with its top 3 flavors, Agave Vanilla, Black Cherry Tarragon and Classic Root Beer. Staffer working area said the bottles are on the way out . . . Seeking more vibrant flavor similar to that enjoyed with not-from-concentrate offering at retail, PepsiCo has launched frozen-dispense option for its Tropicana OJ brand, starting with Orange and Apple flavors and soon adding Cranberry and Lemonade entries. No preservatives, no HFCS, exec working booth area noted, saying new entry already has entered the roughly half of IHOP chain that Pepsi services. Existing ambient option will remain in the mix. “We’re not the first to the party, but we’re going to be the best to the party,” he said . . . PepsiCo announced today the launch of PepsiCo Foodservice Digital Lab that harnesses proprietary and syndicated research to make it easier for its foodservice customers to manage digital activities like managing online reviews and search engine results to implementing customer rewards programs. PEP said it worked with partners like delivery service GrubHub and loyalty provider Mobivity. Scott Finlow, cmo for PepsiCo Foodservice, termed it a “one-stop service” for operators ranging from corner pizza parlor to global restaurant chains.

 Revved-up innovation engine under ceo James Quincey was on full display at Coca-Cola’s pavilion at Natl Restaurant Assn show in Chicago, with new countertop Freestyle dispensing model, first cold-brew coffee entries in US to sport trademark of recently acquired Aussie brand Barista Brothers and avalanche of lemonades under brands like Minute Maid, Odwalla, Hubert’s and Suja.  To broaden appeal to operators of Honest Tea organic trademark, KO now is offering it in concentrate format rather than requiring on-premise brewing.  And co even entered ice cream segment via soft-serve entry under Minute Maid name.  Was it tough to get so many new items greenlighted by bureaucracy in Atlanta?  Just the opposite, replied Melinda Pritchett, sr mgr for category strategy & innovation.  These days, she said, the question more often is why is it taking so long.  We toured Coke booth on Sat, opening day of massive show at McCormick Center. 

Freestyle Debuts 7100 Countertop Unit; New Flavors Include Cold-Brewed Coffee under Barista Bros Brand   Coke’s decade-old Freestyle dispenser, which has placed 52K units in field by now, debuted next-gen countertop dispenser dubbed Freestyle 7100, with hi-def touchscreen and more than 60 bevs across 6 categories (vs 200 bevs in freestanding 9100 unit).  More than half the 60 items are no- or low-cal.  The 7100, which heads out to test later this year and rolls out in spring 2020, drops monthly program fee from $300 for 9100 unit to $160.  Like other models, the 7100 is equipped with camera suited to facial-recognition activities, tho KO is holding off on implementing that until there’s greater clarity about appropriate use of technology.  (Machines also can pull off stunts like recognizing team apparel a customer may be wearing on game day and switch touchscreen to corresponding background graphics, and even offer chance at instant-win ticket.)  New unit also allows operators to control unit via their cellphones, getting status updates on ingredient levels and even opening door via phone when it’s time to replenish.  Thanks to BlueTooth connection, operators can also deactivate unit when they spot customer trying to fill own container for free, alleviating theft issue.  Among other features, 7100 allows operators to add alternatively sweetened bevs via bag-in-box option.  Lots going on with flavor options too, among them first cold-brewed coffee, via Coke’s newly acquired Barista Bros unit in Australia, marking that brand’s first presence in US, per Jim Sanders vp for Freestyle global biz dvlpmt & field ops.  It’s out initially in Plain, Vanilla, Raspberry and Diet flavors.  Of course, as reported in past, info on consumer preferences gleaned from Freestyle data has been playing key role in flavor development on packaged side, as with Cherry flavor of Sprite launched in 2017 (BBI, Apr 25 2017). 

Among smaller touches, Freestyle display no longer is dominated by Coke’s distinctive red hue, instead opting for neutral background to better reflect that KO is a “total beverage company” with 800+ products in all categories, 100 of them added over past year.

Upgraded Bubblers Add Ades, Aguas Frescas, Cold-Brew   KO also has been revving up activity on bubblers side overseen by Pritchett.  Format has advantage of maintaining stable temperature and consistency, even mixing via agitator and ability for consumers to see the liquid they’ll be drinking.  Working with unidentified supplier, Coke recently reentered that market with new systems that address issues of outdated former lines, including hot air they blew out and high part count that complicated cleaning routines.  Lotsa innovation on liquid side, too, as even c-store shoppers increasingly embrace teas, lemonades, Hispanic aguas frescas.  So KO added over 20 new items, to base of 160+ items already available for bubbler format.  Brewed teas and coffees are one key focus via items along lines of Gold Peak Hibiscus BerryHonest Tea Black Tea and Barista Bros cold-brew (available via 1-gal concentrates).  Increasing interest in aguas frescas underpinned 2-year-old line using 81-year-old Barrilitos brand of Coke bottler in Monterrey, Mexico, that was acquired about a decade ago.  The 5%-juice lineup, offered as frozen concentrate, includes Mango Lime, Strawberry Hibiscus, Limeade that’s new this year and Horchata made from rice syrup, with operators invited to add coconut water for enhanced mouthfeel under rubric Specialty Horchata.  All are sweetened with cane sugar and come in under 100 calories per 12-oz, and get their vibrant colors from fruits/veggies.  With interest in organics surging, Honest Tea also has been upping bubbler game, with Lemon Tulsi Tea and Honey Green Tea, Honey Lemonade and Mango Lemonade, and Watermelon Ginger Lime and Mango Citrus Cardamom Aguas Frescas.  Odwalla juice brand added elevated flavors like Tangerine Passionfruit and Blackberry Basil under Odwalla Craft Ages rubric, augmented with botanicals, herbs and spices, Pritchett indicated.  And it’s taking Zico Coconut Water brand to “next level,” she said, via entries like 59%-juice Pineapple Mango with no added sweeteners.  Minute Maid upped juice content to 15% in its Fruit Punch.  And Hubert’s Lemonade enters fray by mid-summer with Lemonade and Blackberry Lemonade that offer lower sugar levels via sweetener blend of cane sugar, stevia and monk fruit.  At high end of scale, Coke is leveraging its partnership with Suja Juice to offer organic lemonades made from cold-pressed juice as well as tea-based bevs.

Coke Enters Ice Cream Biz with Minute Maid Frozen Treats   Coca-Cola continues to edge into new categories.  After plying dairy segment in recent years via Fairlife tie, by Jun it will offer bona fide ice cream entry available to foodservice sector under moniker of Minute Maid Frozen Treats, being sampled as soft-serve ice cream and as shakes.  “If we’re a total beverage company, then we need to be in shakes,” is Pritchett’s reasoning.  It wasn’t a trivial undertaking, with KO hiring scientist from dairy co to develop line that kept butterfat to level that would work in dispenser.