
Beer Marketer's Insights
Reyes Beer Division is adding new supplier partners this spring that point to potential future growth, even without major distrib acquisitions (tho it's trying to do those too). For example, it's now selling Sazerac's malt-based versions of Fireball, Parrot Bay and Fris in most of Calif. Recall, it also recently added Crown Royal spirits-based RTDs (from Diageo) in VA. Those brands got off to fast start there and VA is reportedly 2d largest mkt for Diageo RTDs. Both Sazerac and Crown Royal expanded into new mkts with RBD. Another potentially significant partnership will be with Gallo later this summer, in select mkt with product to be named later.
SunOpta update yesterday contained carelessly written headline that inaccurately called 330-ml line going into new plant in Midlothian, Texas, a plantmilk line; new line can handle both whey and plant formulations, as story indicated.
Aurora Elixirs Restages Hop Sparklers Under Lolo Brand Name, in Cans Not Bottles This Time
CBD bev marketer Aurora Elixirs has restaged its uninfused Aurora Hops line of hop sparklers, dropping glass bottles for conventional 12-oz cans and adopting new brand identity Lolo Hops, named for well-known mountain pass in Cascade Mtn range. Portland, Ore, co founded by former Moet and Suntory exec Victoria Pustynsky has brought back the line's Pomelo Sage and Yuzu Orange Blossom flavors and added Cascadia Field Blend that omits the botanical flavors so the entry's regionally grown Chinook, Mosaic and Ekuanot hops come thru directly. The Pomelo Sage entry melds Citra hops with citrus flavors while Yuzu Orange Blossom employs Mosaic and Citra hops with citrus, floral flavor notes. They contain 8 g of sugar per can (30 calories) and are priced at $21 per 6-can or $40 per 12-pack on co's website. Revamped line has been trickling to retail not just in Pac NW base but also in parts of California, Illinois and Texas. Aurora, founded 6 years ago, is sticking with 6.7-oz glass bottle for its core Aurora line, which offers 25 mg of broad spectrum hemp in Rosemary Grapefruit, Blackcurrant Spruce and Yuzu Orange Blossom flavors.
Family associated with founding of KanPak aseptic processing giant has teamed with Perfect Day to launch altmilk line that offers both the flavor and protein heft of cow's milk but with no animal involvement. Operating as Strive Nutrition, Dennis, JT and Austen Cohlmia will employ Perfect Day's precision-fermented protein in range of altmilks due this Jul. Initial lineup includes Strive FreeMilk, in whole and stevia-sweetened chocolate versions, that's claimed to offer 25% more protein, 75% less sugar and less saturated fat than regular whole milk from cows. FreeMilk items contain 4 g of sugar per 8-oz serving, for 130 calories. Also in lineup will be Strive Oat (in Original and Barista versions) and unsweetened Strive Almond entries, all enriched with 10 g of Perfect Day animal-free whey protein, a multiple of amount contained in leading oatmilk and almondmilk brands, and a complete protein with all 9 essential amino acids. Later in year, co will intro protein shakes and protein-water-style hydration bevs. Line will debut next month at www.striveforbetter.com and also head to retailers to be disclosed later. Note that while Perfect Day, and Strive, are positioned as animal-free, with all sustainability benefits that suggests, they are not classed as dairy-free and can trigger a milk allergy, as Strive website cautions. So new line will have some tricky positioning and communications challenges. Strive, based in Wichita, Kan, is family operation led by Dennis Cohlmia, who was cofounder of dairy processing giant KanPak, an aseptic pioneer that expanded to Mexico and China and was acquired 6 years ago by Golden State Foods.
Tho they don't bring much bev experience themselves, founders of Wildpack Beverages have assured their investors that buildout of national network of copacking and can decorating plants is in good hands thanks to their recruitment a year ago of Coca-Cola and Revolution Brewing vet Chuck Zadlo as coo. Today, tho, co announced that he'd resigned as of yesterday. "I thank Chuck for his contributions to Wildpack's history," per statement from cofounder/ceo Mitch Barnard. "In the time Chuck has been part of the team he helped guide our operations through the expansion from 2 facilities to 6, while navigating the challenges of the Covid-19 pandemic. I wish Chuck well in all future endeavors." Vancouver-based co said it won't fill his spot, opting for "shortening of the communication feedback loop" in order to "drive quicker real time bias to action, as the team accelerates our focus on the shift to fundamental profit-centric operations, with lower break-evens across all our geographies." Tho no reason was given for abrupt exit, it coincided with decision by co to slow its expansion to 12 North American plants, at time growth capital has become harder to come by and Wall Street is punishing cos with no clear path to profitable operation. Wildpack shares, which trade under CANS symbol on Vancouver exchange, have been hit hard since co on Tues reported 33% sales gain that came at cost of ballooning loss (BBI, May 31). Zadlo had participated on investor call that day but he and his colleagues had given no indication that he was headed for the door, tho Barnard, responding to investor question, said even founders' continued roles were not guaranteed as board examined every option to get co on profitable footing.
There's been another abrupt changing of the guard in packaged water segment: this time, it's Alkaline Water Co that seems to have ousted its longtime ceo Ricky Wright in favor of grocery vet Frank Lazaran, who's sat on WTER's board for past year and a half. As with move by Flow Beverage ceo Maurizio Patarnello to retire earlier this week, key change occurred without any advance warning to investors, and in this case Wright may be cutting all ties to co as he vacates his prexy title and board seat too. Ricky, of course, had led migration of Alkaline88 from exclusively participating at value end of alkaline water segment into higher-margin single-serve and CBD realms, supported by move into DSD distribution and recruitment of Shaquille O'Neal as face of consumer-facing campaign. (At Flow, Patarnello retains a role as advisor to his successor as ceo, Flow founder Nicholas Reichenbach, who returns to role.)
As companies commit to ESG initiatives and investments, regulators and researchers seek ways to move the needle, too. Last month, federal financial regulators took additional steps toward transparency in ESG investing at the same time that leaders in US public health published multiple reports and notes aimed at greater equity and inclusion in both health diagnoses and research. The former highlights the growing interest from investors in ESG efforts, especially environmental sustainability, as well as widely varying views of these efforts of the role of regulators. The latter acknowledges that diversity shortcomings stretch across many industries and sectors, taking serious medical and economic tolls.
Some observers looked askance at brand partnerships between major alc bev and non-alc bev producers when they announced "hard" or "spiked" versions of familiar NA brands. Those critics foresaw pushback, expecting claims that such cross-category branding lures underage consumers. Clearest example of those concerns popped on Memorial Day, when Los Angeles' KTLA alerted viewers that "parents need to be mindful of juicy booze brands." Brief piece asserts that "the problem for parents is that some leading edge beverage makers are repurposing existing juice brands as alcoholic beverages," which "poses a danger to little ones who might not understand what a spiked seltzer is, or why it's different from the fruit juice they may find in the fridge under the same brand." It specifically calls out Coca-Cola and Molson Coors collab, Simply Spiked Lemonade, and encourages parents who buy such products to "make sure they're inaccessible to kids." Stay tuned as Simply rolls out this month.
"Investors currently treat booze stocks as significantly less harmful than tobacco," Wall St Journal columnist wrote over the weekend. Analysis by Ethos ESG of funds with 200+ holdings found 11.5% of global assets under management exclude tobacco stocks, but just 2.5% bar alcohol investments. By working better with regulators, devoting funds to responsible drinking campaigns and building non-alc portfolios, top alc bev suppliers "are managing the risks well," according to WSJ. But oddly, it still concludes that they "have more in common with tobacco than investors like to admit."
The final version of 2022 Beer Industry Update, our annual compendium of beer biz data and analysis, will be available on Jun 17. Order now to reserve your copy and save $150 off the regular price to receive the most comprehensive view of the beer biz in 2021 at the national, regional and state levels. The final version of Update includes lots more detail at state and regional levels, updated national trends accounting for the latest revisions from TTB, top international brewer stats, financial data for top cos and more. That's on top of 2021 key industry totals, shipments by brewer, brand and segment, retail trends, import/export trends, brand survey