Beer Marketer's Insights
CSD volume fell 3% (down from -2% for 12 wks) as avg prices rose to +1.7% over last 4 wks thru Feb 25 in Nielsen all-channel data reported by Morgan Stanley's Dara Mohsenian. Volume for regular CSDs was off 2.8% while low-cal brands slipped 3.4%. Avg price on Coca-Cola CSDs improved to +1.4% (up from +0.3% for 12 wks) for 4-wk period while volume slipped 0.8%. PepsiCo volume still down mid-single digits with 5.9% drop on avg price increase of 1.6% last 4 wks. DPS swung from 0.8% price drop for 12 wks to 0.8% increase last 4 wks. Volume slipped 1.2% for 4 wks. Private-label brands were down 6.6% on avg 1.7% price drop last 4 wks.
Longtime Nestle Waters North America exec Tim Brown, who ascended to ceo just 4 years ago, is heading to Greek-style yogurt co Chobani, where he'll serve as right-hand man to founder/ceo Hamdi Ulukaya in post of prexy/coo. Word that Tim was moving on had sent a shock wave thru biz, considering his 29-year tenure at NWNA and Nestle Canada and fact that things seemed to be humming under his leadership following retirement of longtime leader Kim Jeffery, who's often viewed as bottled-water visionary (BBI, Mar 2). But Brown's departure by no means spells an exit from bevs: recall that after talks about PepsiCo alliance sputtered out, Chobani entered drinkable yogurt realm with line of fruity drinks (BBI, Mar 11 2016). Co also has launched incubator that includes a bevco, Misfit Juicery, among its first investments (BBI, Sep 27). And Ulukaya has taken major personal stake in La Colombe Coffee (BBI, Aug 11 2015), with chance now to tap Brown's expertise in scaling up that venture, which has established production plant for its RTD cold-brewed coffee near its dairy sources in Wis and is prepping national expansion. Brown succeeds private-equity exec Kevin Burns, who stepped down in Dec, wire services reported.
Voss Water has added new twist to its program to funnel funds to well-building projects in Sub-Saharan Africa, this year teaming up with pair of retailers: Smart & Final in West and Jewel-Osco in Midwest. Both will feature special retailer-branded displays flagging program and will have well project funded in their names . . . Natural sweetener co SweeGen and its ingredient solutions partner Ingredion said the FDA has issued a no-objection letter citing partners' Bestevia Reb-M stevia sweetener as "generally recognized as safe" (GRAS), clearing way for its use as general purpose sweetener for food and bev applications in US . . . Nestle Waters North America said 12-packs of half-liter bottles of its Pure Life tap water brand proved to be the most ordered item on Amazon's Prime Pantry program in 2016.
With gov't scrutiny increasing of high-pressure processing (HPP), key equipment producers Avure and Hiperbaric and their allies are establishing segment's first trade group, the HPP Council, under auspices of PMMI, Assn for Packaging & Processing Technologies. Among its mandates, new council "will address questions about the technology while developing and formalizing industry best practices," PMMI said in announcement this week. HPP, of course, has revolutionized bev production by offering way for marketers to offer fresh, nutritious bevs untouched by heat, but have also set off alarm bells among regulators who're concerned about its rapid adoption, particularly in lower-acid products like coconut water. HPP Council will officially launch at ProFood Tech expo running Apr 4-6 at Chicago's McCormick Place, where group will host booth on show floor and participate in panel discussions and leadership meetings. Move follows evolution of other up-and-coming sectors such as kombucha, which set trade group as products became more broadly available and drew scrutiny over alcohol and calorie labeling practices.
"Trendy Quaff's Simple Roots," punningly headlined NY Times in extended takeout on kava niche that's fostered wave of bars in foodie-forward places like Berkeley, Calif, and NY, and one ambitious packaged-kava player, Taki Mai, that's put Fiji-grown psychoactive root at heart of its recipes.
Philadelphia-based incubator/accelerator BeyondBrands has set joint venture with year-old investment fund New Crop Capital to seed food/bev cos that offer alternative to animal-based nutrition with promise of offering both funding and mgmt support. "We have always invested in talented, focused entrepreneurs who are using their products or services to subvert the factory farming of animals and all of its harms," said New Crop principal Chris Kerr, who's previously invested in likes of Beyond Meat, Lyrical Foods and Miyoko's Kitchen. "The relationship with BeyondBrands allows us to provide a new depth of support with the best plant-based product development and marketing minds in the business." BeyondBrands cofounder Eric Schnell told BBI that, while initial 3 investments are on food side, with first to be announced next month, partners also are evaluating plant-based bev concepts as long as they make no taste tradeoffs with real milk. Among those on experts' bench at BeyondBrands to help vet prospects is plant-based cooking authority and restaurateur Renée Loux.
This won't count as a shocker: after unwinding their longstanding US alliance on iced teas in 2012, Coca-Cola and Nestle are now dissolving remaining partnership in Europe and Canada, which dates back to 2001. Announcement last night from Nestle (Coca-Cola appears to have stayed mum on development so far) said partners plan to dissolve their 50-50 production and distribution venture dubbed Beverage Partners Worldwide as of Jan 1 2018. "The ready-to-drink tea market has evolved, and Nestlé believes the time is right to develop Nestea independently," Swiss-based co indicated. In a few territories, partners will shift to licensing arrangement, with KO getting rights to produce and distribute brand in Canada, Spain, Portugal, Andorra, Romania, Hungary and Bulgaria, Nestle said. It didn't specify term of licensing deal.
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Now we're starting to get a clearer picture of just how tuff Q4 was on volume in US. Molson Coors posted an 11.2% decrease on US domestic shipments for the qtr, "attributed to lower brand volumes and cycling the rebuild of distributor inventory levels in the prior year," co reported. Depletions weren't quite as tuff, but still down 6.8% in US, "driven by softer inventory performance" plus "shift in volume due to price increases taken in the fourth quarter" and one less selling day.
Shark Energy Drink, Thai-launched brand that may even predate Red Bull (BBI, Feb 14), has signed affiliation with Pro Watercross Tour for 2017, supporting national tour and world championship as official energy drink sponsor. Move comes as Shark, available in 80 other countries, is preparing to crack US market, starting with Shark Stimulation and Sugar Free sku's, to be augmented later this year with Apple & Melon and Red Berries flavors. Tim Sullivan, prexy of master importer Energy Beverages Inc, which reps Shark line in US, termed high energy, nonstop competitiveness and global makeup of teams competing on tour good fit with brand that urges, "Bring Out The Beast." First activation of alliance will be at first round of national tour on May 7-8 at Panama City Beach, Fla.