Beer Marketer's Insights

Beer Marketer's Insights

Taking aim at key liability of K-Cups, Keurig Green Mountain's former chief innovation officer Kevin Hartley has brought to market first compatible pod made from aluminum rather than plastic. Dubbed Cambio, new entry with patented easy-peel lid went on sale on Amazon this week at comparable price to conventional plastic units, Kevin said on webcast yesterday that took wraps off project to which he's devoted 7 years so far. Option puts Keurig platform on equal footing to Nestle's Nespresso in one consideration that's important to some consumers, particularly after Keurig Dr Pepper's credibility on issue got whacked when SEC slapped it on wrist for overstating the recyclability of its plastic pods (BBI, Sep 10). Considering that 20 bil pods are consumed annually in just US, that's a major benefit, Hartley argued. Beyond sustainability, there's another key advantage, he said: unlike plastic, aluminum is impervious to oxygen and moisture, doing far better job of protecting taste and aroma of coffee than conventional units.

Looking to ride alc-alternative wave with mainstay CSD, Keurig Dr Pepper has set a Shirley Temple extension of its 7 Up brand for the holidays, arriving in stores next month, perhaps in time for some Sober October regimens. Using pomegranate and cherry flavors, as cans herald, it adopts pink palette and is styled as "limited edition," with the dot in 7 Up logo shown gift-wrapped. It's already featured on Target website, tho listed as not available. It's no stretch as 7 Up website has long promoted Shirley Temple mocktail made with grenadine syrup . . . Nutrabolt's C4 has teamed with Hershey for range of licensed flavors across canned energy drinks and functional powders, including first protein powder for either co. Collab kicked off this month with limited-time Bubble Yum version of C4 Original preworkout powder, as well as trio of Jolly Rancher energy drinks breaking exclusively at HEB at retail: Blue Raspberry, Green Apple and Watermelon. Next month brings C4 Whey Protein powders in Vanilla Bean and 2 licensed Hershey flaves, Hershey's Milk Chocolate and Reese's Peanut Butter, with 25 mg of whey protein . . . The 19.2-oz "stovepipe" can has provided fertile growth niche for many craft beer brands, often with elevated-alc entries that seem to serve as a snootier but approachably priced alternative to malt liquor mainstays at impulse spots like c-stores and bodegas. Moderate-alc entries like Founders All Day IPA also are in the mix, and now even Athletic NA beer has joined the party. We spotted it at $2.49 at newly opened Whole Foods Daily Shop last week in Run Wild IPA and Free Wave Hazy IPA styles, and brewery confirms they've edged out into market for past month or 2.

Jones Soda, which has been engaged in a Tilray-like frenzy of innovation, has taken wraps off its gut pop, Pop Jones, a shelf-stable entry that, unlike leaders Olipop and Poppi, goes for 12-oz sleek can rather than 12-oz conventional can. New line of prebiotic bevs hits retail next month in 5 flavors that have just 4 g of sugar for just 30 calories per can: Cucumber Watermelon, Pineapple Ginger, Orange & Cream, Strawberry Passionfruit and Mixed Berry & Kiwi. They're formulated from apple cider vinegar, agave inulin and 20% of RDA of zinc for further immunity lift, with sweetening handled by blend of fruit juice, cane sugar and stevia.

Diageo is wasting no time jumping headfirst into alc-alternative fray. Latest move announced today is acquisition of Ritual Zero Proof Non-Alcoholic Spirits, a 5-year-old brand in which Diageo had taken minority stake in 2020 via its Distill Ventures incubation arm. Chicago-based co launched by longtime friends David Crooch, Marcus Sakey and GG Sakey has grown its platform from whiskey and gin alternatives to also include alt tequila, rum and aperitif and currently ranks as #1 marketer of spirits-alternatives in N Amer, Diageo said, citing 2023 data from IWSR. It's growing 85% and still holds nearly 21 share YTD thru Sep 7, our glimpse at NIQ data indicates. Crooch has been invited to stay with the cause, elevated now to gm of Diageo Non Alcohol, where he'll manage broad portfolio of co's non-alc brands. Terms weren't disclosed but Diageo indicated it paid it in cash out of current reserves. Distill website indicates that since 2013 it's invested £245 million in 35+ next-gen global drinks brands, leading to acquisitions of non-alc Seedlip and alcoholic Mr Black, Kikori Whiskey and Belsazar brands. Diageo also has aggressively plied non-alc extensions of core brands like Guinness, Tanqueray and Capt Morgan.

That was quick. Less than 2 weeks ago NJ gov Phil Murphy signed into law a sweeping (albeit temporary) ban on D9 bevs and many other intoxicating hemp products, including immediate removal of product from shelves. Yesterday, a half dozen hemp cos from NJ and around US sued NJ AG, head of NJ Cannabis Regulatory Commission and NJ Secy of Agriculture in hard-hitting lawsuit in US District Court, "challenging the validity and enforceability" of the act. This shot across bow seems a prelude to other legal battles coming in other states that ban intoxicating hemp products and will be closely scrutinized as it plays out, especially in absence of any federal action. Lawsuits are reportedly "imminent" in Calif, where ban just went into effect, and already have caused revisions in Missouri law.

A coupla weeks ago we disclosed Tilray's arrival in hemp-derived Delta-9 space with launch of low-dosage Happy Flower line that was devised within Wellness div built around acquired Manitoba Harvest hemp co (BBI, Sep 9). Turns out there's a separately managed D9 development push occurring over on Tilray's craft beer side, and yesterday the NY- and Ontario-based cannabevco showed its hand on those with 3 more brands, all similarly playing at 5 mg dosage level: 420 Fizz seltzers, Fizzy Jane's seltzers and Herb & Bloom "superpremium mocktail." They'll hit "key markets" across US next month. Besides Texas and Louisiana, where co already is selling Happy Flower line, those markets include Florida, Minn, NC, Ohio, Georgia, Okla and Tenn, worked thru existing distributors, Tilray tells us. The new entries, it turns out, are emanating from newly formed Tilray Alternative Beverages biz unit, per announcement. So at time that beer, bev and wine & spirits giants are sitting on sidelines, along with many of biggest distributors, Tilray has got at least 2 innovation hives ginning up entries for its growth-starved distrib partners. Could there be more on the way? You betcha! "Tilray plans to introduce other HDD9 brands and product categories later this year," announcement teases. This from co that's already got lots on its plate in US managing portfolio of 18 different beer, hard cider, spirit and NA bev brands sold thru its separate bev unit.

The first-ever RTD Report is officially here! This comprehensive, 94-page digital report tracks all the twists and turns in US beyond beer volume dating back to the turn of the century. It also includes never-before-seen volume breakdowns by segment, with an array of charts, tables and written summaries to put RTDs' rise in perspective.

After investing minority stake in early 2020 thru its Distill Ventures unit, Diageo is buying the rest of Ritual Zero Proof, co announced today. Ritual is the NA spirits leader in US scans by $$ thru its portfolio of large-format bottled NAs. It's growing 85% and still holds nearly 21 share YTD thru Sep 7 in NIQ data. That's still miniscule sales in a miniscule segment for a company as large as Diageo. NA spirits hold just 0.1% of US spirit sales tracked by NIQ; just 4% of total NA beer, wine & spirit sales. But Diageo is lookin' to solidify its position as #1 in the small, fast-growing NA spirits segment, and is "well-positioned to build on Ritual's already strong position." Diageo touts itself as #1 NA spirits player globally with 3 of the 5 largest NA brands by value. Ritual is currently ranked #6 globally in NA spirits.

Late last week, Manhattan Beer officially completed its 3-yr project to expand capacity and implement an impressive new automated storage and retrieval system (AS/RS) at its warehouse in Suffern, NY (which happens to be town of Beer Marketer's INSIGHTS "global" headquarters). Manhattan invested $80 mil on the massive project, including its new automated system, combining two buildings into one to now span 338K sq-ft, bolstering ability to receive and load products significantly, and ramping up alternative fuel utilization.

Reyes Coca-Cola Bottling is not a franchisee of Keurig Dr Pepper as far as California law is concerned, a state judge ruled after a hearing in LA County Superior Ct yesterday. So they dismissed the civil suit Reyes' Coke bottling arm filed earlier this yr, effectively moving the dispute between the cos to Texas, where KDP is based. Recall, KDP terminated RCCB's Dr Pepper distribution rights in late April. Shortly after, RCCB filed suit in CA, arguing that the state's general franchise law applies to its relationship with KDP, therefore barring without cause terminations. But "the weight of the evidence" suggested otherwise to this CA judge. Focus now shifts to TX, where KDP asked a state ct "to validate the company's decision to terminate" on the same day it sent its termination letter to RCCB, as Beverage Digest wrote. That trial is set for next March, the CA judge noted.