Beer Marketer's Insights
Little-to-no notes on Molson Coors craft in co's Q2 earnings report and conference call as biz shifts heavily toward core Coors and Miller brands benefitting from Bud Light fallout and its flavored alc bev portfolio. Total MC biz just scored its best net rev gain (+12%) since 2005 combination of Molson and Coors and best US depletions gain (+8.7%) since 2008 MillerCoors merger, as sibling pub INSIGHTS Express reported. Yet MC craft sales remain soft thru 1st half of 2023, at least in tracked off-prem data.
Toronto-based NA player Partake Brewing has elevated chief commercial officer Evan Cohen to prexy, as founder Ted Fleming segues to coo role with focus on innovation, strategic partnerships and consumer engagement. Evan, who joined only in Jan, brings extensive background on alc side including runs at Coors, SAB Miller and Sazerac's 375 Park Avenue Spirits arm. Sara Ross, a former Molson Coors Canada exec, has been promoted to vp marketing after joining co a year earlier as head of marketing .
Plant-based food/bev may play key role in society's sustainability push but it's not the whole ball of wax. That seems to be thought underpinning rebranding of Dan Gluck and Mark Rampolla's venture arm PowerPlant Partners to new moniker of GroundForce Capital. "Plant-based food was a big investment opportunity, but I also believed our firm's strategy could expand and make an impact far beyond our initial sector focus," as Dan posted today. "My vision has always been to grow PowerPlant into a large asset management firm, and that's exactly what we're now doing as GroundForce." In practical terms, that means co will continue to place bets on growth-stage consumer-facing companies out of current fund, GroundForce Growth I, "but we're now expanding our strategy to invest more broadly in food-related companies tackling big issues tied to human and planetary health." Relevant sectors include ag and ag-tech, decarbonization, supply chain and low-emission manufacturing & production.
Kate Farms founder, full of gratitude for the way things worked out for his ailing young daughter Kate and the nutritional tube-feeding co that came out of that challenge, Kate Farms, is launching canned energy line called Lucky F*ck with 200 mg of caffeine augmented by maca, beta-Alanine, ginseng and taurine. Austin-based co is starting with quintet of zero-sugar items packed in 19.2-oz cans more often seen in use by craft brands like Lagunitas and Voodoo Ranger. Colorfully named lineup includes OG Luck: A Sip of Luck (crisp apple), Tropical Thrill: A Dose of Euphoria (Caribbean flavor notes), Bodacious Berry: A Jolt of Stamina ((huckleberry, raspberry, blueberry), Orange Drizzle: A Surge of Oomph (orange) and Red Ryder Punch: A Sip of Rejuvenation (punch). "With Lucky F*ck, I want to motivate people to see beyond their current situation, whatever it may be," said Laver, who also counted surviving a commercial plane crash at age 12 that claimed 136 lives including his father's and bout of homelessness at 27 among curveballs he was thrown. "I learned this through practicing gratitude even in life's toughest moments." Co operating as Lucky Beverage will launch in early-adopter metros like Austin, Miami, NY and Las Vegas at $34.88 per 12-pk. As for Kate Farms, that landed $75 mil Series C round last fall (BBI, Sep 20) . . . Molson Coors' Blue Moon brand, associated with its Belgian White wheat beer, will launch a non-alc version in time for Dry January ritual. It will be brewed with same Valencia orange peel of core entry and come in at 80 calories.
Looks like Coca-Cola finally will get its Philippines bottling operation off the books. Its megabottler Coca-Cola Europacific Partners announced that it's set deal with local Aboitiz Equity Ventures conglomerate to jointly acquire once-ailing operation that entered KO's so-called hospital ward, its Bottler Investment Group, for a teardown and eventual resale. It cited signing of non-binding term sheet and advanced discussions with AEV regarding potential transaction that would put 60% of Coca-Cola Beverages Philippines Inc on books of CCEP. Deal "would build on CCEP's successful expansion into Australia, Pacific & Indonesia (API) in 2021, positioning it as the world's largest Coca-Cola bottler by both revenue and volume," it noted. Philippines operation, which did $1.7 bil in sales last year, is valued at $1.8 bil under terms disclosed today. CCEP would appoint ceo and 3 board members, while AEV would appoint 2 board members. AEV is sprawling conglomerate with interests not just in food but in power, financial services, infrastructure, land and data science. Philippines unit entered rehab at KO in 2018.
Vita Coco turned in strong volume and revenue growth for its branded coconut water in Q2 but said it will be unwinding its private-label biz with an unidentified major customer later this year, move that will sap growth from 2024 even as it strengthens margins. Investors reacted by sending shares up more than 10% in trading today.
Starbucks delivered a record fiscal Q3 on revenue line in North America and globally tho its CPG arm softened a bit as more mobile consumers shifted some purchases from at-home to away-from-home channels. Net revenues rose 12% to record $9.2 bil on 10% rise in same-store sales (+7% in N Amer, +24% overseas). The 7% same-store gain was attributed mainly to 6% gain in avg ticket, just 1% in transactions. Operating income rose 10% to $1.46 bil. SBUX opened 588 net new stores, ending Q3 with 37,222 stores, 16,144 of them in US and 6,480 in China, which continues robust recovery from Covid lockdown period. Starbucks Rewards loyalty program surged 15% to 31.4 mil US members who were active over prior 90 days, +25% to nearly 75 mil globally. "Starbucks is an iconic, durable brand and I am confident in the multiple paths available for the company to drive significant growth and margin improvement," proclaimed Laxman Narasimhan, who recently took ceo reins from Howard Schultz.
Regrets? Super Coffee cofounder/cmo Jimmy DeCicco has had a few, as he outlines in recent LinkedIn post. "There is a time and a place for you to make big investments and improvements to your brand. That time is a lot later stage than we think . . . Don't fall victim to 'playing company.' Stay scrappy, stay lean," he advises. What's he talking about? He offers itemized list from his own experience at Austin-based brand: Agency-implemented brand refresh @ $250K+. Custom website redesign @ $150K+. Quickbooks to Netsuite ERP implementation @ $250K+. Agency-produced TV ad @ $250K+. Chief marketing officer @ $200K+. Mind you, it's not because Super Coffee didn't receive value for the expenditures. "At Super Coffee we've worked with amazing creatives, executives and agencies on all five of these big bets over the years," he writes. Still, "I think each one could have waited until we're bigger than we are today. If we could have those dollars back we would put them into selling activities closest to the point of sale: distributor incentives, shopper marketing programs and targeted field marketing." Recall, we just reported on TV ad featuring founders' mom that co brought in for a pittance that moved needle more than Vanilla Ice ad of a coupla years back at that pricey $250K+ figure (BBI, Jun 19).
For illicit players, thar's gold in them recycled cans. In one of bigger busts we've heard about, Calif has jailed 6 in $10 mil recycling fraud case in which they're accused of bringing more than 9 tons of cans and bottles from Ariz, where they were purchased, for redemption in LA and Ontario in Inland Empire, between Sep 2021 and Mar 2023, radio station 97X reported. California Redemption Value program is operated by CalRecycle and subsidized by Calif consumers every time they buy an eligible beverage container, paying up to 10 cents per container, per 97X. Only bottles and cans from California are eligible for redemption under this program, per Calif AG Rob Bonta when he brought charges of recycling fraud and grand theft . . . Canada Food Inspection Agency has issued list of 6 more caffeinated brands it's recalled from market, tho their lack of bilingual labeling seems to be as much a factor as their high caffeine levels. The latest batch is comprised of Bang Energy, C4 Energy, Cocaine, Gatorade Fast Twitch, Ghost Energy and Ryse Fuel. They join brands 3D Alphaland, 5-Hour Energy, Celsius, G Fuel, Prime Energy and Sting. Those products have been sold nationally and online and are being withdrawn "due to various non-compliances related to caffeine content and labelling requirements," agency said.
Austin-based GoodPop, which since 2009 has offered more nutritional version of frozen treats, has diversified into bevs with launch of 7.5-oz canned line of fruit juice augmented with sparkling water. Launching in Fruit Punch, Orange and Lemon Lime flavors, GoodPop Mini Cans are touted on-can as "bubbly and juicy" and come in at just 5-6 g of sugar (30-35 calories) per can. Tho co touts innovation as "first of its kind," it's of course reminiscent of old mainstays like Pepsi-acquired Izze brand. New line is launching nationally at Sprouts as well as in Costco's Northeast and Midwest club stores, Whole Foods stores across the South and online at goodpop.com and Thrive Market. All are customers of core frozen treats line. In price, they pose no threat to Capri Sun, offered in single-flavor 6-packs at $7.49 and 18-unit variety pack at $14.99 . . . Building on relationship with WWE that goes back to 2001, Nutrabolt's C4 brand has launched flock of cobranded extensions of its Ultimate Energy line into GNC chain ahead of WWE's big Summer Slam event this Sat. C4 Ultimate Energy x WWE collection is comprised of 5 unique flavors with product labels that feature design inspiration drawn from WWE Championship titles. So the 300 mg C4 Ultimate Energy Drink x WWE is being featured in Ruthless Raspberry and Berry Powerbomb flavors while C4 Ultimate Pre-Workout Powder x WWE debuts "ultimate heavyweight" formulation that similarly includes 300 mg of caffeine in Pomegranate PileDriver, Bare Knuckle Blood Orange and Nectarine Guava Knockout flavors. To flog launch, C4 is running "Not Safe For Work" campaign that enlists WWE endorsers Seth "Freakin" Rollins, Bianca Belair and Street Profits to demonstrate the right and wrong ways to consume C4 Ultimate Energy in videos shot at WWE hq in manner that sounds a bit reminiscent of ESPN's "This Is Sports Center" campaign.

