Beer Marketer's Insights

Beer Marketer's Insights

Ito En is revving up its marketing engine, starting with digital and social media campaign positioning its Matcha Love powdered green tea brand as way for young women to "Stay grounded," per tagline. Idea is to position Ito En as leading matcha brand, modern take on ancient ritual that provides gentle energy lift to busy young women, said marketing and innovation chief Harris Goldman, former Unilever exec who joined Brooklyn-based Ito En last Jun and is familiar with tea space from 3 years spent on Unilever's Lipton biz. Given steaming, drying and grinding process used to produce matcha, "Stay grounded" carries double meaning, referring also to broader definition of health among younger women that includes spirituality as well as physical issues. Thus, 15-second video shows women attired in various guises for roles ranging from boxing to ballroom dancing to work. "Stay focused. Stay balanced. Stay grounded," urge digital ads. Campaign running now thru Apr was devised by agency Engine, with whom Goldman worked in Unilever days, and includes paid component via banners and the like, as well as sponsored posts that aim to reach 40 mil impressions. Overall, objective is to up engagement of target demo in more durable way than print ads. Banner ads aim to drive shoppers to Amazon (to buy) or to brand's website at MatchaLove.com (for greater immersion in brand). Brand is also experimenting with devices like cinemagraphs, still photos with subtle movement (say, of woman's hair) to hold viewer's attention.

PepsiCo is adding botanically inflected component to its lineup of cold-pressed entries from Naked Juice, starting with Apples to Lavender and Citrus Lemongrass sku's hitting shelves this month. New entries join year-old Naked Pressed line of HPP-produced juices, offering "trending" ingredients that "are perceived to have holistic healing and functional health and wellness properties," per PEP. Apples to Lavender blends 6 juices - apple, cucumber, beet, cranberry, lemon and passionfruit - with lavender oil, offering rich potassium dose, while Citrus Lemonade blends 7 juices - orange, apple, cucumber, pineapple, spinach, lemon and passionfruit - with lemongrass oil, offering vitamin K, potassium and magnesium. Both are formulated without added sugar and with non-GMO ingredients.

CSDs sagged 1% to $18.9 bil in dollar sales in multi-outlet stores for 52 wks ended Jan 1, per IRI's Dan Wandel. CSDs are still #1 edible category in food stores, about $1.4 bil ahead of salty snacks, which grew 3.6% last year. Three more non-alc bev categories were among 10 largest: milk (#4), bottled water (#8) and coffee (#10). Milk $$ sales took 5.5% hit last year, losing approx $830 mil in sales to $14.3 bil, per IRI. Bottled waters were hot, posting the largest percentage gain among top-15 edible categories in 2016. Even with continued discounting, bottled water sales grew 8%, $811 mil to $10.8 bil in 2016 in multi-outlet stores. Coffee sales edged up modest 1% to $9.5 bil.

Fresh on heels of launching canned sparkling cold-brewed line, Stumptown Coffee Roasters is expanding packaging mix targeting more conventional grocers, quietly edging into hundreds of Target stores, even as it eases into new trade dress that does more to emphasize Stumptown brand identity in increasingly crowded cold-brew category.

This just in as BBI headed to press today: well-regarded Nestle Waters North America ceo Tim Brown apparently handed in his resignation yesterday, with tom'w to be his last day at Stamford, Conn, bottled-water giant. "Hush-hush" issue at NWNA, one ex-colleague noted, with word of where Tim's headed anticipated to be announced Mon by his new employer. It's believed to be in consumer space somewhere in tri-state area surrounding NYC, but we haven't heard more. Taking ceo reins on interim basis at NWNA is cfo and evp finance Bill Pearson, who's had that job nearly a decade now. Brown's been at Nestle since 1988, where he was long viewed as rising star and finally was handed ceo reins upon retirement of longtime chief Kim Jeffery in Feb 2013, after 3-year stint running Nestle's Canada biz. Those were big shoes to fill but most of our contacts say Tim's been more than up to the job. Tho Brown may have been disappointed when parent co refused to authorize much more than $1 bil for offer for Bai Brands, which ultimately went to Dr Pepper Snapple Group for $1.7 bil, otherwise biz seems to have been humming at NWNA.

"New era dawned in NASCAR," LA Biz Jnl heralded, as new title sponsor Monster scrambled in short timeframe to activate massive property. Recall Monster Bev nailed deal in Dec as NASCAR worked to fill Cup-sponsorship hole left by departed Sprint, leaving just two and a half months to prep for inaugural event, Daytona 500, held this past Sun. But MNST got thru it, with win by sponsored driver Kurt Busch becoming icing on the cake. "There was a lot of talk about not seeing as many signs in the parking lots and banners, but that's not the way we do things," sports marketing vp Mitch Covington told Motorsport.com. "I know there was an expectation there, that it would be painted green. There were a lot of expectations, to be honest. But we were extremely happy with it. Our guests had a great time." Surprise celeb guest proved to be NFLer Rob Gronkowski - not entirely a surprise, since athlete is featured on a Monster can - and chmn/ceo Rodney Sacks and cmo Mark Hall flew in at last minute to witness race.

As LA Biz Jnl detailed from advance discussion with Covington, co on Sun felt ready to erect 200-by-200-foot display featuring models, music and product sampling, and to host 200 corporate guests and VIPs. But Mitch didn't deny how daunting program is. "It is a huge undertaking from the depth of the schedule, with about 40 weeks — week in, week out — and I'm sure we'll ride the learning curve like everybody else," he told paper. "We'll probably tweak the system and make adjustments as we see fit from week to week." Plan is for MNST to sample in fanzone every week, to leverage key entitlement in deal. Monster has previously said it expects to bring at least a dozen of its Monster girls to races, tho Covington acknowledged to Motorsport the girls drew mixed reaction at Daytona.

Monster famously doesn't include paid TV ads in marketing mix, but Covington had acknowledged in Dec that Monster is open to exploring 30-second spots as part of NASCAR deal. He seemed to back off notion in discussion with LA Biz Jnl, saying that for media buy, "we do want to bring some unique content, as opposed to just 30-second spots." One thing that hasn't changed is co's contrarian approach to picking its endorsers. As Mitch recalled to Motorsport.com, "Someone said, I think in USA Today, that Kurt Busch was unsponsorable [after suspension due to anger mgmt issues]. I picked up the phone and called Kurt and I said, 'It says in the paper that you're unsponsorable. I want your next race — full paint out.' It was at the All Star Race in Charlotte. We flew in, painted the car black and Kurt Busch was sponsorable." (MNST did already have ties to Busch's brother Kyle, who interceded on his behalf.)

Wall Street analysts and investors breathed sigh of relief after Monster Beverage reported Q4 sales that soared 16.8%, tho most of lift came from 33% surge in overseas markets while US sales appeared to edge up a sluggish 4% in period. Still, buoyed as well by $500 mil stock repurchase, shares moved higher in relief rally in down market overall, tho analysts continued to worry that outlook for rest of year is hard to scope out. "Pivotal quarter," exhaled Morgan Stanley's Dara Mohsenian. US trends "are better than fears/scanner data," even as int'l markets are becoming "key driver" of growth. Further, Q1 2017 started solid out gate, with co saying Jan sales were up 10.4% (+11.6% excluding foreign exchange impact but +6.5% if extra selling day is offset). Still, wrote Wells Fargo's Bonnie Herzog, "We continue to remain concerned about soft energy trends at retail, higher marketing spend to drive top line to attract/retain consumers [via ties to Nascar and Tiger Woods], and margin dilution from ongoing negative channel, product, and geographic mix shifts."

Spirits marketer and importer Castle Brands said it's reached deal to place its Goslings Stormy Ginger Beer and diet extension in all 4,500 US Walmart stores starting this month. Castle brings in the brand, a key ingredient with Goslings Black Seal Rum in Dark N Stormy cocktails, via Goslings-Castle Partners global export venture. NY Times recently estimated Goslings Stormy Ginger Beer sales at more than 2 mil cases (BBI, Feb 14) . . . Starbucks Coffee is making foray into Italy via huge Roastery that's being installed in former post office building on Milan's Piazza Cordusio. New Roastery is due to open in late 2018 as fifth in co's network, following existing and planned locations in Seattle, Shanghai, NY and Tokyo. It will be 22,500 sq ft, larger than original in Seattle's Capitol Hill nabe and will serve as "culmination of a great dream of mine - 34 years in the making - to return to Milan with one of the most immersive, magical retail experiences in the world," per chmn/ceo Howard

These days it's not unusual for new craft brewers to also engage in craft distilling, as Interboro Spirits & Ales does in Brooklyn. New brewer in that boro called Wartega is offering different breed of diversity, melding craft beer program with barrel-aged coffee.

Dunkin' Donuts is extending its popular cold-brewed coffee line served in stores, and this time it's putting marketing blitz behind it. New to the franchise as limited-time offering is Sweet & Salted Cold Brew, blending Dunkin's signature batch-made cold-brew, sweetened with liquid cane sugar and featuring proprietary salted whipped topping. In NY, co is heralding launch via tie-in with radio station Z100 via Cold Brew James campaign inviting local musicians to record themselves performing original Dunkin' Donuts Cold Brew Jam based on lyrics they can download from DDNewYork.com. After contest closes on Mar 26, 3 finalists will be invited to perform at Dunkin' Donuts Iced Coffee Lounge at iHeartMedia Tribeca Studios, where judging panel will award winner $10K worth of studio time and $500 Dunkin' Gift Card.