Beer Marketer's Insights

Beer Marketer's Insights

One brand's famine can be another brand's feast. That's how things seem to be shaping up for booming Prime Hydration brand, which has picked up chunk of copacker bottling time abandoned by slowing Body Armor brand, in move that might do much to assuage frustration of perennially out-of-stock DSD partners. Congo Brands reps have been promising a tripling of availability for Q4, both singles and 8-pks, tho some lesser flavors like Orange and Grape may be discontinued in interest of efficiency. They're also promising pricing action at some key retailers to further drive demand now that inventory won't be such a headache. Not to mention intensified push into up-&-down-street retailers and on-premise most effectively served by those shorted wholesalers. Prime Hydration, of course, is sports drink launched by mega-influencers Logan Paul and KSI that, for all its inventory shortfalls, still managed to increase sales over past 4 weeks by 519%, for trailing 52-wk total of $540 mil, per Nielsen data reported by Goldman Sachs. But its shipment delays and inventory shortfalls have frustrated its beer wholesaler partners who've seen endemic accounts like Vitamin Shoppe kept more whole and rainbow variety packs showing up at Walmart. "All of a sudden inventory has been rolling in the past two weeks," one beer wholesaler reported, saying it's hard to gauge the true ceiling for brand whose scarcity has driven panic buying by consumers. He has a hunch that pending launch of hydration extension by Ghost Energy (BBI, Sep 15) may have also provided an incentive for Congo to resolve the inventory snarl before a potent new rival enters the mix, particularly at Anheuser-Busch houses the 2 brands share. (Of course Prime Hydration itself has extended into energy to solid early response.) No response to our query this morning to Congo Brands chief Sam Wilson.

Policies specifically designed to target alcohol use during pregnancy haven't been particularly successful, even leading to worse birth outcomes, a recently-published study asserted, citing earlier work by a similar group of researchers. As such, these authors examined the impact of broader, population-level policies on alcohol consumption by "women of reproductive age." They reviewed responses to the Natl Alcohol Surveys, conducted essentially every 5 yrs since 1984, looking solely at the 13,555 cumulative responses by women up to age 44. Then they compared them to changes in state alcohol policies, looking at differences in responses by state policy environments. Ref 2

"The true relationship between alcohol consumption and [cardiovascular disease (CVD)] risk remains controversial," according to the cautious authors of a recently-published study delving into one possible moderator of that relationship. Yet, like so many other observational studies linking light drinking to better heart health, this research revealed a familiar J-shaped curve. Researchers analyzed existing data to examine the relationship between self-reported consumption of over 6,700 older adults at risk for CVD and abnormal fat deposits around the heart, liver, skeletal muscle and intestine. "In all fat depots there was an apparent J-shaped pattern…with the lowest estimates" for fat deposits "in light and moderate drinking categories," study authors wrote. Ref 1

Alkaline88 marketer Alkaline Water Co suffered 8% revenue drop to $15 mil in its fiscal Q1 2024 as it slashed its net loss by 62% to $2.8 mil, the co reported today. Gross margin edged up by three-quarters of a point to 25%, the Scottsdale, Ariz-based co said in releasing limited amount of financial data this afternoon, promising full 10-Q accounting by Mon. Like other publicly traded cos, WTER has been under investor pressure to stop the cash burn while doing its best to maintain topline. During period, "we continued to show strong improvement in our operating results as we execute our previously detailed pathway to profitability," per statement from prexy/ceo Frank Chessman, sales exec who stepped into top job in Feb when ceo Frank Lazaran had to attend to unspecified medical issue.

Many companies are finding it harder to hit promised goals to reduce greenhouse gas emissions by target dates, reported NY Times. In fact, many aren't moving at slower pace but actually headed in wrong direction, including PepsiCo and Starbucks, per report. "At PepsiCo, which began setting targets to reduce emissions in 2015, emissions in its supply chain are up 7% from its baseline, according to its 2022 climate report," noted Times. "Starbucks reported a 12% increase in its total emissions" from 2019 to 2022. "But during that time, revenues jumped by 23% or $6 billion — a big chunk from raising prices for lattes and cappuccinos — while it added more than 5,000 new stores," wrote Times.

Strive Free Milk, among the new breed of altdairy players that rely on precision fermentation to offer cow's milk that's not actually from a cow, has made some packaging and positioning tweaks as it navigates challenging communication burden in fast-changing space even as it's jettisoned oat and almond entries in what suddenly became cluttered sub-categories. Strive, recall, is new venture by former KanPak owner Dennis Cohlmia and his wife JT who after decades of copacking dairy-based bevs decided it was time to enter new world of milk alternatives, using Perfect Day's precision-fermented protein as base (BBI, Jun 3 2022). So Strive brings nutritionals and rich taste of dairy milk without actually coming from cows, along with deep experience of Cohlmias to cutting-edge category.

Gorgie, the stylish, female-targeted energy brand, has started recruiting seasoned vets to help it build on early momentum it's enjoyed. Aboard in key roles are pair of C4 Energy vets and an Essentia Water vet. Mass-based Aaron Sorelle, longtime Polar Beve exec who went on to roles on brand side at High Brew and C4, is vp sales. Another C4 vet, Andy Carlucci, who earlier worked at Honest Tea, is vp sales for east from his NY base. And Briana Costanza, who had 8-year run at Essentia en route to its exit to Nestle, has joined as dir of field sales, also from NY-area base. They arrive as Gorgie (slang for "gorgeous") went national at Sprouts chain this past summer and is entering Wegmans, HEB and Erewhon chains, with some exclusive activation planned for latter next year, Gorgie's effervescent founder Michelle Grant told us on show floor before she rushed off to do a podcast. Among key partners in seeding brand at retail is NY house Big Geyser.

For Boston-birthed brand from entrepreneur who's been a fixture on bev innovation scene there for decades, it was a long time coming. But Culture Pop probiotic soda launched by Tom First only cracked Polar Beverage this past Jun, 3+ years after brand first showed up on area retail shelves. That represents refinement of approach First has long employed at his own and advised brands: this time, for early distribution, he went freely to all comers in Boston area on non-exclusive basis while doing a little self-distribution himself, tactic familiar from brands like AriZona teas, Nestle waters and 5-Hour Energy, but one that's sometimes criticized for not properly incentivizing wholesale partners. It certainly was a first for First. But it did the trick of seeding brand broadly, winning key retail authorizations and generating enough volume to make brand an instant contributor once it onboarded to Polar, Tom recalled. He wasn't necessarily recommending counterintuitive strategy for other brands, but it did prove effective for Culture Pop. So it can pay to rethink precepts honed over a few decades in bev biz.

Matcha green tea has been trending ingredient for some time now, thanks to its bounty of antioxidants and Japanese cultural resonance but few have been able to turn RTD versions into significant business outside of endemic players like Ito En. Now another has thrown its hat into the ring under brand name MatchaKo, launched by youthful biz consultant named Mark Missirlian out of NY base. Line launched late last year in 7.5-oz slim cans in Unsweetened, Lemonade, Almond Milk and Oat Milk versions that source ceremonial-grade matcha from rich volcanic soil of Kagoshima prefecture in southern Japan. Also employed are amber maple syrup as sweetener and fresh lemon juice, not concentrate, for half & half entry. For creamed entries, co produces its own altmilk from almond meal and oat powder, Mark told us. The sweetened versions contain 8-12 g of sugar and come in at 50-60 calories. It's got 86 mg of caffeine. Line is copacked via retort process at Bev Hub in Wichita, Kan.

Kombucha maker Walker Brothers, whose Tennessee base likely is underrepresented in booch space, this week won national authorization at Fresh Market chain just as it was setting shop at Expo East looking to move beyond primarily Southeast base. Fresh Market is picking up 3 flavors, its best-selling Blueberry Jasmine along with Ginger and Cucumber Melon. It adds to retail base that includes regional stores of Sprouts, Whole Foods and Earth Fare, and soon will add Bristol Farms, marking move into Calif, as cofounder Sam Walker told us at Expo East.