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COCONUT WATER SHUFFLES THE FLAVOR DECK PUTTING THE EXPO WEST 2015 MALTERNATIVES: AN ALTERNATIVE PEA IN PROTEIN IN REVIEW BREW


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Contents • Volume 13 • No. 3

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COLUMNS

FEATURES

ON THE COVER

4 First Drop On Diversity in the Natural Products Industry

36 Putting the Pea in “Protein” Demand for Vegan Sources Grows as Technology Improves

28 A Natural Progression Coconut Water Shuffles the Flavor Deck

6 Publisher’s Toast Invasion of the Body Snatchers

40 Malternatives A Different Brew

26 Gerry’s Insights Reading Edible Brooklyn

46 Sweetener Focus With Sweetener Brand News

DEPARTMENTS

TRADE SHOWS

8 BevScape Big Changes in Spring

52 Expo West Roundup Inside the Innovation Blender

14 New Products Steaz Launches Four New Flavors

APRIL 23, 2015

A NATURAL

PROGRESSION

COCONUT WATER SHUFFLES THE FLAVOR DECK MALTERNATIVES: PUTTING THE EXPO WEST 2015 AN ALTERNATIVE IN REVIEW PEA IN PROTEIN BREW cover.indd 1

4/10/15 2:32 PM

22 Channel Check Juice Drinks Evolve 56 Promo Parade Sir Ben Kingsley

BevNET Magazine (ISSN 2165-6061, USPS 24-552) is published bi-monthly except monthly in March, June, September, and October by BevNET.com, Inc. 44 Pleasant Street, Suite 110, Watertown, MA 02472. Periodicals postage paid at Boston, MA and additional mailing offices. POSTMASTER: Please send address changes to BevNET Magazine, Subscriber Services, 44 Pleasant Street, Suite 110, Watertown, MA 02472

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The First Drop By Jeffrey Klineman

“You know, I’ve never thought about that question before.” That’s what I’ve been hearing almost exclusively lately when I ask whether there’s anything alarming about the lack of racial and ethnic diversity that I found remarkably easy to observe at Natural Products Expo West. Since flying home, it’s a question I’ve been asking a lot. And I’m finding agreement: once the question is asked, people suggest that it’s an issue that the industry needs to start thinking about, and discussing, and fast, before it moves from quizzical observation to systemic fault line. It’s not by intent, most agree. The natural products business is, after all, one that has moral underpinnings. The business is rooted in change and 60s idealism. The companies strive to offer healthier, better for the environment, cause oriented, conscious products – and those ideals comprise much of their value to consumers and investors alike. Their antiestablishment origins are what set them apart. But the business isn’t only in rebel mode anymore: it’s a maturing sector of the CPG world, and with so many people eager to join it, either through entrepreneurial enterprises or involvement with its more established companies, the time has come. The natural products industry must demonstrate a better commitment to racial and ethnic diversity, from hiring and recruitment to product and ingredient sourcing. In these areas, the industry, one that has set itself up as a model, isn’t meeting its own ideals. Notes no less an outlaw than Bob Dylan, “to live outside the law, you must be honest.” It’s time for the outlaw companies that built the industry to look in the mirror and consider if they see an 4 APRIL-MAY 2015 BEVNET MAGAZINE

Race, Ethnicity, and Natural Food: An Issue, An Assessment, An Opportunity

honest reflection of who they want to be. From a moral and an economic standpoint, things need to change. Morally, because the industry can’t be a closed shop – society is too diverse, race is too important and active an issue in the wider world, and the companies in the sector are too in tune with too many other conscious principles to ignore their potential to be leaders in this discussion. Economically, there is much at stake, from a competitive standpoint, and also in regard to talent: there’s a proven upside to bringing in different voices and experiences to the buyer’s office, the marketing department, the innovation team, the boardroom. That’s why other, more established industries have tried to incorporate diversity as a financial advantage. Walk around Natural Products Expo West and you see that the blood, guts, and backbone of the industry, the people in decision-making ownership, sales, financing, and other gatekeeper roles, does not even match the limited (but increasing) racial diversity of its consumer base. It’s not through the industry’s intent, after all, that its products (organics, hummus, coffee, tea, natural medicine, sea salt) and retailers (Whole Foods, Co-Ops, Farmer’s Markets) comprise a significant portion of the list of “Stuff White People Like” on that satirical web site. The industry has begun marketing outside that base significantly, and a recent report by the Organic Trade Association points out that African American and Hispanic families are buying organics at a growing pace – the result of an increased presence of organics in conventional grocery. But as that consumer base grows, the natural products industry remains behind in hiring and promotion – not to mention store

construction – in African-American and Hispanic communities. And the entrepreneurial base is even less diverse. Without paying attention, it can become a dangerous situation for the business: the hallowed “point of differentiation,” the chief branding attribute, between conventionally produced products and their natural or organic or fair trade or non-GMO alternatives is that there’s a moral underpinning to these products. Lose the moral high ground, and the branding of the entire industry is at risk. Competitors inside the conventional food system would drool at the thought that the industry that so readily points to the superiority of its organic soil could be standing on that soil with feet of clay. Conversely, if it decides to lead on the issue, the industry can continue double down on its core values, and extend itself. So with apologies to Howard Schultz, for this, and the next two columns, let’s talk about race. As we do, let’s keep intent in mind. Defenders of the industry are correct to point to the many places where the industry is succeeding from a diversity standpoint, and in terms of nobility of intent, as well: it’s organized around a savethe-earth mentality; in terms of diversity, it strives to present itself as egalitarian in regards to the ability of female and LGBT employees to move into leadership positions. It has pioneered certifications: Fair Trade, USDA Organic, Non-GMO, Biodynamic. It’s filled with businesses that are firmly planted in global citizenship, with successful companies sharing that success with underprivileged or underserved swaths of the population abroad, developing jobs and preserving the environment in countries like Brazil, Peru, Ecuador, Thailand. But it isn’t sufficiently addressing the economic well-being of


underserved communities at home. And without care, the effects can metastasize regardless of the intent. We’ll look at how the industry got to where it is in my next column; after that, we’ll try to figure out solutions. But for now, here’s why the industry needs to become as in tune with racial sensitivity as well as it is to, say, gluten sensitivity. Are things really that bad? It’s hard to tell. The mission-based orientation of the brands has been a two-edged sword. Most have been so focused on success with regard to agricultural or international social justice agendas that they’ve been myopic with regard to diversity issues. This is where things get tricky. Can you be too busy doing the right thing to do the right thing? Can you imply that you’re open to diverse hiring, but only take what the tide brings in? Isn’t one percent for the planet enough? That depends – are you happy with one percent of the market? Look at things from the broader context: yes, society

has changed to the point where a natural products industry, and the environmental, physiological, and agricultural missions it tends to represent, can have a seat at the table. But that table is also involved in a long process and conversation about standards for diversity that all thriving industries (and yes, that includes media entities like BevNET as well) must observe and develop. The relative youth of the industry kept it insular for a long time: being mission-driven has allowed it to keep its head down to prove its value. But for the industry to truly affect long-term change, it’s going to need to make the right choices when its at that bigger table. Right now, with organics representing more than $30 billion in sales and specialty foods more than $100 billion, with more than 70,000 people attending – triumphantly – Expo West, with America’s foodie culture on high alert, the industry has matured. In just a few short years, mainstream supermarkets have come to

recognize that consumers of all racial and socioeconomic backgrounds might want these products, and, with more attainable price points and more appealing products, have found ways to get them to a population that no longer resembles the demographic makeup of, say, a liberal arts college in Maine. But to truly disrupt the establishment over the long haul, there must be an effort to sell the businesses to the consumers as entities that can be valued as strongly as their brands. The faith that purchasing power can create change has catalyzed sales – but now the next step of the promise, change for all, needs to be observed, and the industry needs to lead on that front. Diversity - ultimately, in all its forms - should be an imperative for this industry simply because it is deeply rooted in, and brands itself behind, positive change. There’s distinct advantage in extending those roots, and that brand platform, to more than just one product.

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Publisher’s Toast By Barry Nathanson

Invasion of the Body Snatchers

MAGAZINE www.bevnet.com/magazine Barry J. Nathanson PUBLISHER bnathanson@bevnet.com

Jeffrey Klineman EDITOR-IN-CHIEF jklineman@bevnet.com

My wife is a huge 40s and 50s movie buff. While I spend my nights and weekends watching my various contests across the gamut of sports, Liliane is situated in front of our glorious HDTV viewing black and white Hitchcocks, Twilight Zones, sci-fi and other entertainments of that time. The other night, between periods of my beloved Rangers, I caught a glimpse of her watching a favorite of hers, and, I’ll even admit, mine, The Invasion of the Body Snatchers. Hence, the inspiration for this column. I use poetic license to make the connection. Over the years I’ve observed so many brands in search of leadership to help guide them towards success. Every day you see news on our BevNET site of a company bringing in a veteran of the beverage wars. Other newsletters are also full of those announcements. The common denominator is where these hires have come from: usually it’s Atlanta or Purchase. Yes, whenever someone taps an executive to lead their efforts, the resource is from Coke or Pepsi, with an occasional A-B, Coors, or Heineken exec thrown into the mix. I’ve lost count of these people who have infiltrated the entrepreneurial arena. Those parent companies are the perfect training and breeding ground to launch them into the world. I’ve observed this dance for over 20 years now. As in the movie, their role is to take over the industry, and they really have. So, is this good for the beverage marketplace? Early on, I would not have said so. Over the years these hires tried to bring their old corporate methods to the chaotic scene that is the world of entrepreneurial

and innovative beverages. They didn’t have a feel for the environment that birthed these exciting new brands. They didn’t get their consumer and how to reach them. They tried to shape them into mini-Cokes and Pepsis. It didn’t work. They only knew one way, and it wasn’t the right one. The internal battles between the founders and the new leaders hired weren’t a pretty sight. These carefully crafted and intensely trained pod people got the power, but didn’t use it for the good of mankind. Now though, it’s a different story. As the industry evolves into a more healthful, natural, spiritual environment, these executives coming out of the ranks are attuned and sensitive to the wants, needs and methods to make these terrific brands successful. I call it a kinder, gentler generation of Coke and Pepsi people. I look at dozens of companies that have tapped into the minds and expertise of these Blue and Red execs and the fit is now right.

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There is now a synergy, a yin-yang for the great brands that are taking us into a golden age of beverages. With the spirit of the founders and the excellence of the executives entering the ranks, we now have the ideal situation. Beverage Nirvana! At least, that’s what that thing that took over my brain the other night told me to say...

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Bevscape The latest news on the brands you sell

But no matter how you slice it, craft and the entire “high-end” beer segment is still growing at a tremendous pace. Shipments of imported beer were also up 6.3 percent in 2014, to more than 29 million barrels, according to the Beer Institute. “2014 was the year where the high-end really, fully asserted itself,” said Watson.

FORMULATION Brewers Association: Craft Brewers Achieve Double Digit Market Share For First Time For the second straight year U.S. craft brewers increased production volumes at a double-digit clip, growing 18 percent in 2014 according to new data from the Brewers Association. As part of its annual “Growth in the Beer Category” report — which highlights market share, production and brewery opening statistics, among others – the BA emphasized a key milestone for craft: for the first time ever, craft brewers achieved doubledigit volume share of the marketplace. BA-defined craft brewers now collectively own 11 percent, or 22.2 million barrels, of what the BA said is a 197-million barrel U.S. beer marketplace. That’s up from 7.8 percent in 2013 and represents a retail value of $19.6 billion. It’s important to note, however, that 2014 market share statistics were bolstered by the inclusion of about 3.5 million “new” craft brewer barrels, added after the organization changed its definition to include some previously non-craft brands, like Yuengling. Yuengling made 2.9 million barrels of beer in 2014, the company told Brewbound. BA chief economist Bart Watson wouldn’t comment on specific breweries now being counted towards its 22.2 million barrel total, but confirmed that Yuengling was on the list. The BA, which represents the interests of the country’s small and independent brewers, teased out flavored malt-beverages and ciders from its reporting to only reflect traditional “beer” offerings available in the marketplace. According to shipment figures prepared by the Beer Institute and obtained by Brewbound, the entire U.S. beer market actually totaled 206 million barrels in 2014, 9 million more than the BA’s data set. 8 APRIL-MAY 2015 BEVNET MAGAZINE

Changing consumer tastes and the continued high-end growth has plenty of entrepreneurs rushing into the craft segment, hoping to cash in on a shift towards more flavorful beers. The BA counted 615 new brewery openings in 2014, more than 200 more than the 413 it counted in 2013. In total, there were 3,464 breweries in operation last year, an increase of 19 percent. “The opening numbers suggest that people are still betting on the growth opportunities within craft,” said Watson. And with new business openings, comes new jobs. According to the BA, the craft segment added more than 5,000 jobs in 2014, 4.3 percent more than 2013. So where is the majority of this growth coming from? “In absolute terms, the gains are coming from the top 50 and the top 100,” said Watson. “That said, you are seeing incredible growth from the smaller breweries and the long tail shows no signs of abating.” It’s not yet known exactly how many of the 22 million barrels came from top 50 BA-defined brewers, but in 2013, that group produced about 10.4 million barrels of all craft beer sold. “As the overall market grows, the regional craft brewers have continued to grow and I see no signs of that changing,” said Watson.”

NEW LEAGUE Monster Sponsors UFC The Ultimate Fighting Championship (UFC) has announced a multi-year partnership with Monster Energy. As part of the new deal, Monster’s logo will get center placement on the UFC canvas, as well as promotion on other entities inside and around the octagon-shaped cage where its affiliated mixed martial artists battle. Additionally, the company has secured athlete sponsorships with a handful of UFC superstars, including women’s bantamweight champion Ronda Rousey and former titleholders Anthony “Showtime” Pettis and Johny Hendricks. The title of “Official Energy Drink of the UFC” is one that previously belonged to zero-calorie energy drink brand Xyience, which ended its 10-year sponsorship of the UFC last September when it was acquired by independent soda company Big Red Ltd. At the time, Big Red CEO Gary Smith said he wanted to soften up Xyience’s cage brawler image and “make it a little less hardcore than the image that it’s got today.” This isn’t Monster’s first involvement with the rapidly growing sport of mixed martial arts (MMA). In February, 2014, Monster signed on to become the official energy drink of Bellator MMA, the UFC’s rival promotion. Monster also previously sponsored MMA fighters Quentin ‘Rampage’ Jackson and Dominick Cruz. “We are excited to partner with the world’s leading mixed martial arts organization as the official drink of UFC as we expand our commitment into the MMA category,” said Monster’s Senior Vice President of Marketing Sam Pontrelli in a company press release. “Through this partnership we will build a stronger brand position and expand our reach globally, thereby gaining exposure to a new audience while supporting the sport’s premiere athletes.” Monster appears content embracing some of the more aggressive imagery that surrounds the brand. In addition to its involvement in MMA the company sponsors an array of other so-called extreme sports from F1 racing to supercross to bull-riding.


Bevscape FUTURE PERFECT? Keurig Kold

Keurig Green Mountain’s soon-to-be-launched cold-beverage system spells “Cold” with a “K”. It’s one of a few new details about the highly anticipated machine, which Keurig unveiled at the Consumer Analyst Group of New York conference. Amid a wide-ranging presentation about the company, including updates on brand positioning and sales growth strategies, Keurig offered a first glimpse at Keurig Kold, a countertop machine that uses pod-based technology to create a variety of at-home prepared cold beverages, including carbonated drinks. Keurig launched into news about Keurig Kold with a slide that asked, “How Can The Cold Beverage Category Be Revolutionized…” The company, of course, had its answer in Keurig Kold, and pointed to vast opportunity in expanding its platform to include preparation of cold beverages. Quoting data from IRI, a Chicago-based market research firm, Keurig noted that 2014 U.S. sales of cold drinks exceeded $50 billion in measured channels, five times that of hot beverages. Despite a massive market for cold beverages, Keurig Kold is designed to address what the company termed as “cold problems hidden in plain sight.” Keurig described a range of potential issues with tradition- ally packaged and prepared cold drinks, including freshness, in-home storage and carbonation levels, and noted the efficiency, convenience and reliability of its podbased system as offering significant advantages to consumers. Scheduled for a fall 2015 launch, Keurig Kold will deliver beverages cold and, unlike Sodastream machines, the system will not require a CO2 canister for preparation of carbonated drinks. While the company did not offer details on how it will add fizz to beverages, it promoted a “vast brand selection” for Keurig Kold, which will include products from “beloved partner brands” The Coca-Cola Co. (which acquired 16 percent of Keurig last year) and Dr Pepper Snapple Group, such as sodas, sports drinks, sparkling juice, cocktail mixers, and iced teas. Keurig also released details on new company-owned brands, which include Red Barn Craft Soda, Flynn’s Soda Shop, Waterful zero-calorie flavored water and Tierney’s Iced Tea Co. 10 APRIL-MAY 2015 BEVNET MAGAZINE

GUS, ESSENTIA GET COMPANY Boylan’s, Core Go to Big Geyser The folks over at Big Geyser believe craft soda is headed the way of craft beer, and they want in. Last month, the independent New York distributor announced it had entered into an exclusive agreement with Boylan Bottling Co. to service its Boylan and Mash products throughout Big Geyser’s New York metro territories. The agreement will see Boylan’s departure from its current partnership with Manhattan Beer company. Big Geyser COO Jerry Reda informed suppliers via email, writing “Much like the craft beer industry, craft soda is set for significant growth in the near future and Big Geyser sees Boylan as the preeminent product and organization in the craft soda space.” Reda says the addition of Boylan won’t come at the expense of GuS, its other craft soda offering, which it has distributed since 2003. While both brands come in glass packaging and eschew high fructose corn syrup for cane sugar, Boylan’s positioned itself as an old-time soda classic, whereas GuS offers a more modern, juice-based beverage. GuS founder Steve Hersh says his brand already shares truck space with Boylan in several other distribution territories and, if anything, he expects it to boost the craft soda category on the whole.

“They’re very different brands,” said Hersh. “But we do see it as a validation of this craft soda boomlet that has been our mantra to retailers. We’re trying to grow the category and this puts muscle behind it.” Boylan Bottling Co. dates back to 1891, when pharmacist William Boylan first developed a birch beer elixir in his New Jersey apothecary. Now, the brand boasts a portfolio of more than 20 flavors, including diet and seltzer varieties. The addition of Boylan comes as the latest move in what has been a year of big happenings for Big Geyser. In January, the company requested a buyout of its contract with Glaceau. Then in February, Big Geyser added Core Natural alkaline water to its stable of brands, presumably to fill in for the recently-departed Smartwater.


Bevscape EXECUTIVE MOVES Lots of Spring Leaps Maverick Brands, which markets Coco Libre coconut water drinks, announced the appointment of Candace Crawford as CEO of the company. Crawford, a former executive with ZICO, Bossa Nova and POM Wonderful, takes over for Maverick founder Mark Shaw, who will transition to the title of Office of the Chairman, Chief of Marketing, Strategy and Innovation. Crawford was the CFO and COO of ZICO from February, 2010 until November, 2013, when the Coca-Cola Co. completed its acquisition of the coconut water company. Crawford managed operations and oversaw finances for the company, which she joined following CFO roles at Bossa Nova and POM Wonderful. Arnold Ventura has joined Califia Farms as VP of Business Development. Ventura, the founder of now defunct aguas frescas brand Coba, had been an executive with PepsiCo’s Naked Emerged Brands, an incubation unit tasked with identifying disruptive beverage brands and supporting those within its portfolio. William Thein joined the sparkling probiotic drinks company as Vice President of Marketing, replacing Bill Lange, who left KeVita in January and became VP of Sales and Marketing at Santa Monica-based cold-pressed juice chain Pressed Juicery. Previously, Thein spent eight years at Odwalla. Thein also spent four years as Chief Marketing Officer of Evolution Fresh before joining Kevita. KeVita also added Bob Nakasone, a 17-year veteran of PepsiCo, as its Senior Vice

NUTRITION & BOOZE Diageo to List Serving Facts on Labels

President of Sales.Nakasone worked closely with KeVita in his position as Senior Director of Business Development at PepsiCo’s Naked Emerging Brands (NEB) division, which began a trial distribution partnership with the probiotic beverage company in early 2014. Nakasone will attempt to expand the brand’s growth outside of incubation channels, per a company statement. Former Coca-Cola Co. executive Mary-Ann Somers has joined The Hershey Company as VP and General Manager of its U.S. Chocolate division. Somers leaves her post as SVP and General Manager of Coke’s water, tea, and coffee categories, where she led Dasani past PepsiCo-owned Aquafina to become the country’s’ top-selling bottled water brand. Somers also helped advance Coke’s stake in the tea category with its Gold Peak brand passing $1 billion in sales last year. Cold-pressed juice company Red Jacket Orchards has hired Gary Prusher as Director of Corporate Sales and Distribution. Prusher brings 26 years of experience in the industry to the upstate New York Orchard, including a role as a Regional Sales Manager for New York distributor Big Geyser. The Saint Louis Brewery, makers of the popular craft beer Schlafly, has brought on a new chief executive officer. James Pendegraft, a Saint Louis native and the former vice president of sales & marketing for North American Breweries, a subsidiary of Florida Ice & Farm Co., will take over as Saint Louis Brewery’s CEO. He replaces co-founder Dan Kopman.

12 APRIL-MAY 2015 BEVNET MAGAZINE

Diageo has announced plans to supply serving facts information on its alcohol beverage products and voluntarily provide consumers with additional caloric and nutritional information. After years of asking the Alcohol and Tobacco Tax and Trade Bureau (TTB) for permission to label its beer, wine and spirits products with serving facts information, Diageo finally convinced the TTB to temporarily approve the request in 2013. Diageo has now received final approval from the TTB to include a serving facts panel on its labels. Previously, alcohol manufacturers in the U.S. were not allowed to list serving facts on their packaging. “The consumer is at the heart of everything we do, and making serving facts information available to people in an easy to understand format is what, according to our research and polling, today’s consumers want,” Peter McDonough, the company’s president of marketing innovation, said in a press statement. “As a company that prides itself in promoting responsible consumption, we believe this information will help consumers make informed and responsible decisions about drinking.” Diageo said it has supplied serving facts information for its products via the DRINKiQ website since 2006. Now, however, the company plans to also update its packaging to reflect serving facts information labels. “This is the culmination of years of hard work by Diageo, as well as the more than 70 consumer and public health groups that stood with us in support of labeling in 2003,” Guy Smith, Diageo’s North American vice president said in a statement. “It is important to note that including this information is voluntary, so producers have the option to include this information, or not. We specifically commend the National Consumers League and the Center for Science in the Public Interest who supported this important initiative from the beginning. And we are grateful to the TTB who are now allowing the industry to give consumers the information they have been asking for.” Serving facts information will begin appearing on Diego’s U.S. labels in the coming months, the company told Brewbound. The company also said it does not plan to create any new marketing campaigns focused on the new labels or serving facts information at this time.


STYLE FOCUS IPAs are Still Popular The IPA continues to reign as the most popular style in American craft beer. According to Dan Wandel, principal of Beverage Alcohol Clients Insights for IRI, the IPA style alone grew to more than $342 million, according to Wandel, representing a 41 percent increase over 2013 figures. IRI tracked 117 new IPA brands last year, which accounted for more than 10 percent of category growth (at $35 million). In all, there were 1,165 craft IPA SKUs tracked in super markets in 2014, a 15.5 percent uptick over the year prior. Broken down by sub-style under the IPA umbrella, American IPAs were the best selling, pulling in more than $217 million in the channel. Imperial IPAs, the second best selling, earned more than $85 million. Rounding out the top three, the low ABV session sub-style hit the market harder than any other, totaling sales of more than $11 million for growth of nearly 339 percent.

“It’s really interesting to see once we peel back the onion on IPA how even some of the sub-styles of IPA are becoming so prominent,” said Wandel. But not all sub-styles enjoyed the same kind of growth. Sales of Belgian/White IPAs ($2.1 million) and “other” (red, rye, brown) IPAs ($1.7 million) declined 21.5 percent and 12.2 percent in the channel, respectively. There wasn’t a new-to-market IPA brand that stormed the market with the same ferocity as Boston Beer’s Sam Adams Rebel IPA did in 2014, however — sales eclipsed $21 million in U.S. supermarkets. By comparison, the second strongest new entry was Deschutes’ Fresh Squeezed IPA, which totaled just over $3 million in sales in the channel. That perspective came during an IRI Power Hour, in which the Chicago-based market research company partnered with the Brewers Association to put the blazing hot style under a microscope.

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New Products The newest options for cooler and shelf

Tea Steaz has launched four new flavors in its line of organic and fair trade green tea-based beverages: Lightly Sweetened Grapefruit Honey, Unsweetened Passion Fruit, Unsweetened Dragon Fruit and Zero Calorie Goji Blackberry. The four flavors, with an MSRP of $1.69, are available nationwide in over 400 Whole Foods stores. For more information, please call The Healthy Beverage Company at (215) 321-8330. Honest Tea has introduced two zero-calorie, unsweetened, caffeine-free herbal iced teas. Honest’s Cinnamon Sunrise Herbal Tea is a blend of organic Vietnamese cinnamon and Fair Trade Certified red rooibos from South Africa. The company’s Ginger Oasis Herbal Tea is a blend of organic Indian ginger, green rooibos and Egyptian lemongrass. The drinks are packaged in 16 oz. glass bottles. The drinks retail for $1.49-1.69. The new products are available nationwide at natural food stores and in the natural food aisle of mainstream grocery stores. For more information, please call Honest Tea at (301) 652-3556.

Coffee Secret Squirrel has added three dairy-based, cold-brewed coffee drinks to its line of products. Secret Squirrel’s Caffe Latte, Vietnamese Latte, and Dark Chocolate Mocha are made with California familyfarmed milk through a partnership with Dairy Goddess. Packaged in 16 oz. plastic bottles, the drinks have a suggested retail price of $4.29 and will be distributed in Whole Foods, Fresh & Easy and independent grocers on the West Coast. For more information, please call Secret Squirrel at (510) 546-8824. Califia Farms has launched Concentrated Cold Brew Coffee as the centerpiece of the company’s home café concept, Califia Café,

14 APRIL-MAY 2015 BEVNET MAGAZINE

which is intended to give consumers all of the ingredients they need to become their own baristas, according to the company. The product has 60 percent less acidity than hot brewed coffee, and contains no dairy, soy, saturated fats, oils, GMOs and gluten. It comes in a recyclable 32 oz. Tetra Pak box and has a suggested retail price of $7.99. The product is available nationwide in Whole Foods and Safeway stores. Califia Farms has also introduced three new ready-to-drink, single-serve iced coffee products. Packaged in 10.5 oz. plastic bottles, Califia Farms Cold Brew Coffee with Almondmilk now comes in Triple Shot Cold Brew, Mocha Mexíca Cold Brew and Dirty Chai Cold Brew varieties. For more information, please call Califia Farms at (626) 204-0830. Kraft Foods Group has launched Gevalia Iced Coffee with Almond Milk. The new readyto-drink iced coffee beverage is made with a blend of Gevalia 100 percent Arabica coffee, almond milk and artificial flavors. The drinks contain 6 grams of protein per 8 oz. serving. Available in three flavors – Mocha, Vanilla and Caramel – the coffees are sold in single-serve 11.1 oz. or 33.8 ounce multi-serve cartons. The new products are distributed in grocery stores across the United States, and have a suggested retail price of $2.19 for the (11.1 oz. package) and $4.99 for the 33.8 oz. size. For more information, please call Kraft at (847) 646-4538. Starbucks has extended its Doubleshot brand with a new protein-infused sub-line. Doubleshot Coffee & Protein blends Starbucks coffee and 20 grams of dairy-based protein. The line comes in Dark Chocolate, Vanilla Bean and Coffee varieties. The beverages have a suggested retail price of $2.99 for an 11 oz. can and are available at convenience, drug and grocery stores nationwide. For more information, please call Starbucks at (800) 344-1575. Hiball has added three cold-brewed coffee varieties to its line of energy drinks. The “Rich & Creamy” products are formulated with 100 percent Arabica fair trade organic cold brew coffee that is blended with nonfat milk, cream, organic fair trade cane sugar and infused with a small amount of organic guarana, ginseng and b-vitamins. The drinks come in 8 oz. cans and contain 120 mg of organic caffeine. Available in Coffee, Vanilla and Mocha varieties, the line will launch is sold at Whole Foods stores and has suggested retail price of $2.99 per can. For more information, please call Hiball at (415) 420-4801.


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New Products CSD Honest Tea has converted all varieties of its Honest Fizz line to organic certification and added a new ginger ale variety. Honest Fizz Golden Ginger Ale is, like all Fizz products, sweetened with a combination of organic stevia and erythritol.The beverages have a suggested retail price of $.99 - $1.25 for a 12 oz. can and $4.99-5.99 for a 6-pack carton. The sodas are available nationwide at natural food stores and in the natural food aisle of mainstream grocery stores. For more information, please call Honest Tea at (301) 652-3556. Minta has added new Apple and Blackberry varieties to its line of naturally flavored mint sodas. Each contains 85 calories per 10 oz. can and, like all Minta products, the drinks are made with a proprietary mint blend, carbonated fruit juice and real cane sugar. The products are available in 10 oz. slim cans and 12 oz. glass bottles with a suggested retail price of $1.49. Both will be available at Fresh & Easy locations on May 1. For more information, please call Minta at (323) 622-8633. Reed’s, Inc. has launched Reed’s Stronger Ginger Brew. This new variety has 50 percent more ginger than the company’s flagship product, Reed’s Extra Ginger Brew. The product is made with fresh ginger root, cane sugar and honey. It has a suggested retail price of $5.99 for a 4-pack of both 7 oz. and 12 oz. bottles, which will be available nationwide in natural food stores and mainstream grocery stores. For more information, please call Reed’s at (310) 217-9400.

Water Cascade Ice, a line of zero-calorie sparkling flavored waters, has introduced a new Strawberry Orange Mango variety. The new flavor was chosen by a public vote on the brand’s Facebook page. Like all Cascade Ice products, the water contains no sodium, gluten or sugar. The drinks are packaged in 17.2 oz. slim bottles, and a new 7 oz. size. The products are sold nationally and prices vary by market. For more information, please call Unique Beverage Company at (425) 267-0959.

Functional Drinks Beet Performer is beet juice-infused beverage designed for athletes. The beverage is made with 16 APRIL-MAY 2015 BEVNET MAGAZINE

100 percent juice and no added sugar, colors, flavors or preservatives. It is pasteurized using low-heat (180°F), a process that retains nutrient values without sacrificing taste or shelf life, according to the manufacturer. Beet Performer is packaged in 8.4 oz. cans and comes in two varieties: Beet Juice with Vitamin B12 and Beet Juice with Passion Fruit Juice. The products are sold on Amazon.com and retail for $35.88 for a 12-pack. For more information, please call CAJ Food Products at (888) 524 6882. MusclePharm Corporation, a performancelifestyle sports nutrition company, has launched two new energy drinks: MusclePharm Energy Sport and Energy Sport Zero. MusclePharm Energy Sport is available in two flavors, Original and Electric Lime, while the MusclePharm Energy Sport Zero is available in Citrus Edge, Onyx Cherry, and Power Punch. The drinks are distributed nationally at a variety of retailers, including GNC, Costco, and The Vitamin Shoppe. Prices vary by location. For more information, please call MusclePharm at (800) 292-3909. Avitae has added new flavored varieties to its line of all-natural caffeine waters. The drinks come in Pomegranate Açai, Tangerine, Blackberry and Strawberry Guava flavors. They each contain 90 mg of caffeine derived from natural green coffee beans, natural flavors and citric acid. The noncarbonated drinks have no calories, sugars or artificial ingredients. The launch will coincide with a distribution expansion into the Northeast, West, Southwest and Mountain regions of the U.S. The waters are available in select retail stores throughout the country, including Albertsons, Mariano’s, Giant Eagle, Meijer, GIANT, Whole Foods, Safeway, Jewel and Wegmans. The drinks retail for approximately $1.49 per 16.9 oz. bottle. For more information, please call Avitae at (888) 228-4823. ZICO has introduced a new Watermelon Raspberry flavor for its line of coconut water products. The product combines 100 percent coconut water with fruit-forward natural flavors of watermelon and raspberry. The beverage has five naturally-occurring electrolytes, and includes no artificial flavors or added preservatives. It is also free of fat, cholesterol, gluten, dairy and lactose and contains 90 calories per 14 oz. bottle. The new product has a suggested retail price of $2.49 and is sold nationally. For more information, please call ZICO at (646) 500-7808.


Lifeway Foods, Inc. has introduced a new nosugar-added probiotic smoothie for kids as part of its ProBugs line. Packaged in a 4 oz. pouch, the product contains seven to ten billion CFUs of 10 live and active friendly bacteria per cup, is high in protein and calcium, gluten-free and 99 percent lactose-free. The company has also unveiled a limited-edition Lowfat Watermelon Kefir that will be released in June. It is lightly sweetened with 8 grams of additional sugar and 20 fat calories per 140 calorie serving. It’s also 99 percent lactose-free, glutenfree and all-natural with 12 live and active probiotic cultures, 11 grams of protein, and 30 percent of the daily recommended allowance of calcium. Lifeway has also introduced a new 16 oz. size of its nine standard kefir and organic kefir flavors. Lifeway products are available nationally. For more information, please call Lifeway at (877) 281-3874.

Juice Suja has extended its line of “cold pressured” juice products with five new varieties. Suja’s Essentials line now features Über Greens, a juice made with seven green veggies, grapefruit and

lemon, and Carrot Crush, a carrot juice blend made with lime and ginger. Both have a suggested retail price of $3.99. Suja has also added three new products to its Classic line: Lavenade, made with ground vanilla bean, lavender, maqui berry, red cabbage, honey, lemon juice and stevia; Revive, a blend of water, cucumber, pineapple, lemon, ginger, lemongrass, cilantro, chlorella, and spirulina; and Fortitude, apple, cucumber, red cabbage, chard, romaine, green leaf lettuce, lemon, bell pepper, escarole, red leaf lettuce, parsley, and ginger. Lavenade and Revive retail for $5.99. Fortitude has a suggested retail price of $7.99. The juices are sold nationally in natural and conventional grocery stores. For more information, please call Suja at (855) 879-7852. Honeydrop Beverages has launched four new ‘Honeyade’ flavors to its line of raw honey and cold-pressed juice blends. The company’s new Matcha Lemon, Strawberry Lemon, Turmeric Lemon and Kale Cucumber each contains a tablespoon of honey and are glutenfree, GMO-free, and contain active enzymes, vitamins, minerals and antioxidants. The Matcha Lemon and Kale Cucumber Honeyades are made with raw Manuka Honey sourced from

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New Products New Zealand, while the Strawberry Lemon and Turmeric Lemon Honeyades are made with raw honey sourced from local beekeepers throughout regions of the United States, depending on where they are sold. The new products are available at Whole Foods, Fairway, Fresh Direct and other natural and gourmet stores throughout New York, New Jersey, Connecticut and Massachusetts, and retail for $4.99-6.99, depending on variety. For more information, please call Honeydrop at (646) 942-8058. Daily Greens, an organic cold-pressed juice company, has launched a kid-friendly, greenfocused smoothie line called Half Pint. Similar to Daily Greens’ current offerings, the new line is crafted with certified organic and non-GMO greens, fruits, cold-pressed juices and other ingredients that are sourced locally whenever possible. The products undergo high pressure processing and contain no preservatives nor artificial flavors. Daily Greens Half Pint is available in three flavors: Green Thing, a fruit & green smoothie with strawberry, banana and spinach; Berry Tasty, a mixed-berry smoothie with seasonal berries, beet and spinach, and Peel Out, a chocolate-banana smoothie made with fair trade cocoa, hemp seeds, strawberry and wheatgrass. Packaged in 8 oz. bottles, the products retails for $3.99 and are sold nationally at Whole Foods stores. For more information, please call Daily Greens at (512) 524-1508. Old Orchard Brands has expanded its 100% Juice line this month to include Black Cherry Cranberry and Mango Tangerine varieties. Each 8 oz. glass provides 120 percent of the recommended daily value of Vitamin C and counts as two fruit servings. The drinks contain no artificial colors, flavors or preservatives.The new products are available in grocery stores nationwide. The suggested retail price is $2.99 per 64 oz. bottle. Old Orchard has also introduced its new Cranberry Cherry reduced-calorie juice drink as part of its Cran Naturals line of naturally sweetened juice cocktails. The drinks are made with a blend of real sugar and Truvia brand stevia leaf sweetener. They contain no high fructose corn syrup, artificial colors, flavors or preservatives. At 55 calories per 8 oz. serving, Old Orchard Cran Naturals features 50 percent less sugar than traditional 100 percent cranberry juice blends. Each 64 oz. bottle provides eight servings and has a suggested retail price of $2.99. For more information, please call Old Orchard at (616) 887-1745.

18 APRIL-MAY 2015 BEVNET MAGAZINE

Kids’ Drinks BYB Brands, Inc. has extended its line of Tum-E Yummies Fruit Flavored Water Drinks with the launch of a new blend that is sweetened with a blend of real sugar and stevia. The product features the same vitamin-packed ingredients as the company’s existing product with 100 percent of the daily value of vitamin C, vitamin B6 and vitamin B12, as well as just 13 grams of sugar, 50 calories and zero sodium. Sold in 6-packs, it is available in best-selling Tum-E Yummies flavors Fruitabulous Punch and Very Berry Blue. The drinks are available throughout the Southeast and mid-Atlantic in grocery and mass merchandiser stores and retail for $3.49-3.69. For more information, please call BYB at (704) 319-0390.

Flavored Malt Beverages Anheuser-Busch has extended its Bud Light Lime-A-Rita brand with a new lemonadeflavored variety. Bud Light Lime LemonAde-Rita is a summer seasonal variety that will be available in 12-packs of 8 oz. cans, 4-packs of 16 oz. cans and 25 oz. cans. Rita products are flavored malt beverages that blend Bud Light Lime with margarita flavors. The drinks are 8 percent alcohol by volume. Prices vary by market. For more information, please call Anheuser-Busch at (314) 577-9950. Daily’s Cocktails Spiked Sodas is a new line of alcoholic, fruit-flavored carbonated drinks. The drinks are 5 percent ABV and come in four flavors: Cherry Cola, Raspberry Ginger Ale, Lemon Lime and Blood Orange. Packaged in 12 oz. slim cans, the beverages are distributed in the Southeast and have a suggested retail price of $1.99. For more information, please call Daily’s at (412) 828-9020.

Wine 14 Hands Winery has commemorated its continued partnership with the Kentucky Derby with the launch of its limited release 2012 Kentucky Derby Red Blend. The wine blends Merlot, Cabernet Sauvignon and Syrah to provide a flavorful wine experience that showcases juicy Washington fruit character, according to the winery. It is available now for a limited time nationwide for a suggested retail price of $12. For more information, please call for 14 Hands at (509) 786-5514.


New Products filtered. The product is available nationally and has a suggested retail price of $49.99 for a 750 mL bottle. For more information, please call The Baddish Group at (212) 221-7611. Big Bottom Distilling has launched Big Bottom Barlow Trail, Port Cask Finish, which is a continuation of the company’s practice of finishing its whiskey in port casks. The spirit uses the distillery’s proprietary American blended whiskey as the base and is finished in a 10 year Tawny Port barrel for about six months. It presents a bright, sweet berry and citrus nose, and on the palate, it showcases a fresh, ripe berry followed by a small hint of peppery spice that gives way to a very smooth, rich and malty quality from the French Oak Port casks, according to the distillery. The whiskey retails for $39.95 and is sold in seven states across the U.S. For more information, please call Big Bottom at (503) 608-7816. Western Spirits Beverage Company has released two new flavors for its Bird Dog Whiskey line. Bottled at 80 proof, Bird Dog Apple Whiskey and Chocolate Whiskey have a suggested retail price of $19.99 for a 750 mL bottle and available nationwide. For more information, please call Western Spirits at (270) 796-5866. John Dewar & Sons Ltd. has announced that two whiskys from its “Last Great Malts,” a collection of five single malts that have not previously been commercialized, are available nationally. Aberfeldy, known as the “Golden Dram,” draws its water from the Pitilie Burn, famed for containing deposits of alluvial gold. With Craigellachie, the distillery stays true to its traditions of whisky-making, including the use of worm tubs – so called for their coiled copper tubing – to cool the spirit. The brand was described as “old-fashioned” even in 1891 as it makes no concessions to modernday trends, according to the company. The whiskey comes in 13-year-old and a 23-yearold versions, with future expressions to come over time. For more information, please call Bacardi at (305) 573-8511.

Other Alcoholic Beverages Far North Spirits has launched two new products. Gustaf Navy Strength Gin is a 114 proof spirit named for the distiller’s great grandfather. The gin is a take on the classic London Dry style and includes 11 botanicals, including Meyer lemon peel, grains of para20 APRIL-MAY 2015 BEVNET MAGAZINE

dise, fennel, cucumber and meadowsweet. The gin is made by distilling each botanical individually and then blending them together to create the final spirit. Far North’s Syvä Vodka is a Nordic-inspired, small batch vodka distilled from winter rye planted and harvested by the distiller. The 90 proof spirit is named for the Finnish for “deep,” an homage to the depth of artisanal methods and ingredients used in crafting the product, according to the company, which recommends a pairing of briny caviar, smoked salmon or fresh oysters. Packaged in 750 mL bottles with minimalist labels, Gustaf retails for $44.99 and Syvä is priced at $29.99. The spirits are sold in Minnesota, North Dakota, New York, New Jersey and online. For more information, please call Far North at (612) 720-3738. Hornitos Spiced Honey is a new spirit created by infusing 100 percent blue agave Hornitos Plata Tequila with natural honey flavor and a special spice blend. The product features a clean tequila flavor with a touch of floral honey, rich vanilla and a lingering spice finish, according to the manufacturer. Hornitos Spiced Honey is 70 proof and available in 750 mL and 1L bottles, with a suggested retail price of $19.99 per 750 mL size. For more information, please call Beam Suntory at (847) 444-7699. Pernod Ricard USA has released of its latest limited-edition offering for Kahlua, the classic rum and coffee liqueur. Kahlua Salted Caramel blends decadent and smooth notes of salted caramel with the taste of Kahlua and is designed for consumers who want to expand their beverage options in the form of a frozen or iced cocktail to enjoy in warmer temperatures, according to the manufacturer. The product is 20 percent ABV and retails for a suggested price of $17.99 per 750 mL bottle. For more information, please call Pernod Ricard USA at (212) 372-5400. Venus Spirits has introduced its second gin variety, one created with a unique botanical blend and allowed to rest in American oak casks. Venus Spirits Gin Blend No. 02 was specifically chosen to pair with American oak, and comes out of the barrel golden amber in color. The spirit features notes of orange and bay in the nose followed by cinnamon, vanilla, sage and fennel, according to the distillery. The gin retails for $36.99. Venus Spirits’ products are sold in a variety of retailers in California. For more information, please call the distillery at (831) 427-9673.


Southern Comfort has a new caramel-flavored variety called Caramel Comfort. The spirit features notes vanilla, whiskey and spice, according to the manufacturer. The product is 27.5 ABV and has a suggested retail price of $16.99 for a 750 mL bottle. For more information, please call Brown-Forman at (502) 585-1100. The Sazerac Co. has launched its newest tequila brand, Tijuana Sweet Heat. Tijuana Sweet Heat is 70 proof mixto tequila infused with 100 percent agave nectar. The result delivers the same intensity of tequila, but with a smoother finish, making it ideal for shots, mixing or sipping, according to the company. The product is available at liquor retailers in Maryland, Georgia, Tennessee, and Missouri, New Jersey and Wisconsin. It has a suggested retail price of $15.99 for a 750 mL bottle. For more information, please call Sazerac at (504) 831-9450. Anheuser-Busch has launched Oculto, a lager blended with beer aged on tequila barrel staves. The product is also infused with blue agave and 6 percent ABV. Oculto, which means “hidden” or “waiting to be found” in Spanish, is designed

to tap into late night occasions, according to the company. Brand packaging features multiple crown graphics, tactile printing and black-light inks. Discoverable elements are also embedded in the bottle design, including hidden messages and eyes that appear when the beer is cold. Oculto is available at high-end bars, clubs and restaurants, as well as many grocery and liquor stores across the U.S. in 12-packs of 12 oz. bottles, 6-packs of 12 oz. bottles, 25 oz. cans, and 16 oz. cans. Prices vary by market. For more information, please call Anheuser-Busch at (314) 765-2126. Diageo has launched Sandra Lee Cocktail Time Margaritas. Named after celebrity chef and editor Sandra Lee, the bottled cocktail blends come in Key Lime and Strawberry varieties and are infused with real fruit, pure cane sugar, premium blue agave silver tequila, triple sec liqueur and other natural flavors. The ready-to-serve beverage is gluten-free and contains less than 150 calories per 4 oz serving. The drinks are 26 proof and available nationally with a suggested retail price of $15.99 for a 750 mL bottle. For more information, please call Diageo at (646) 223-2140.

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21


Channel Check

SPOTLIGHT CATEGORY

Canned Juice Drinks SOURCE: IRI, a Chicago-based market research firm (@iriworldwide) 52 Weeks through 2/22/15

What’s hot & what’s not in stores now

The canned juice category has received a shot in the arm through innovation and crossover products. Mountain Dew and V8 have caffeinated the category with Kickstart and V-Fusion, Pellegrino has revamped its products in cans and broadened the line, and FOCO has brought coconut water. Meanwhile, AriZona remains a stalwart – although its Golden Bear line seems to have fallen behind the pack.

Brand

Dollar Sales

Change vs. year earlier

Mountain Dew Kickstart

$246,726,992

AriZona

$192,204,160

32.10% 5.75%

San Pellegrino

$58,773,684

27.22%

Jumex

$48,493,036

4.65%

Minute Maid

$45,871,436

-1.63%

V8 V Fusion Energy

$45,844,220

17.93%

Goya

$24,574,922

15.94%

AriZona Golden Bear

$21,386,408

-23.78%

Kerns

$21,145,050

-11.59%

Hawaiian Punch

$19,091,624

-4.66%

Lipton Brisk

$17,337,034

-8.96%

Minute Maid Light

$15,036,065

1.39%

Foco

$13,421,971

18.74%

Country Time

$10,947,447

4.35%

Ocean Spray

$9,820,464

-20.09%

Snap Punch

$6,875,868

-29.92%

Private Label

$6,753,941

0.56%

Snapple

$6,343,712

-24.50%

AriZona Rickey

$6,258,702

-27.84%

$6,121,015

40.10%

Parrot

TOPLINE CATEGORY VOLUME BEER

$31,932,843,732

3.5%

BOTTLED JUICES

$6,911,507,456

0.69%

BOTTLED WATER

$12,509,041,664

5.99%

ENERGY DRINKS

$10,712,582,144

5.31%

DRINK MIXES

$906,606,784

-1.94%

TEA/COFFEE

$4,656,231,936

8.50%

SOURCE: IRI, a Chicago-based market research firm (@iriworldwide) 52 Weeks through 2/22/15

22 APRIL-MAY 2015 BEVNET MAGAZINE


Channel Check ENERGY DRINKS

HOT! NOS

Brand

Dollar Sales

Red Bull

$3,783,368,448

7.16%

Monster Energy

$1,365,774,592

9.78%

Monster Energy Zero Ultra

$375,002,432

27.26%

NOS

$368,467,456

27.78%

Java Monster

$324,073,696

11.33%

Monster Rehab

$309,610,304

-10.91%

Rockstar

$301,721,600

2.59%

Monster Energy Lo Carb

$293,360,224

-6.37%

Monster Mega Energy

$243,505,088

0.68%

Monster Energy Absolute Zero

$170,158,448

-18.78%

SOURCE: IRI, a Chicago-based market research firm (@iriworldwide) 52 Weeks through 2/22/15

NOT! Monster Absolute Zero

ICED TEA

HOT! Lipton Pure Leaf

Brand

Dollar Sales $668,024,448

1.12%

Lipton Pure Leaf

$436,821,504

39.92%

Lipton Brisk

$351,308,448

AriZona Arnold Palmer

2.55%

$315,315,136

26.82%

$212,204,096

-6.55%

Snapple

$208,275,168

-1.46%

Lipton Diet

$196,433,600

-9.93%

Diet Snapple

$180,662,256

-5.14%

Gold Peak

$180,179,408

30.17%

Peace Tea

$69,686,200

-14.81%

SOURCE: IRI, a Chicago-based market research firm (@iriworldwide) 52 Weeks through 2/22/15

NOT! Peace Tea

CAPPUCCINO/ICED COFFEE

HOT! Illy Issimo

Brand

24 APRIL-MAY 2015 BEVNET MAGAZINE

Change vs. year earlier

AriZona

Lipton

*NPD Group Inc., “U.S. Consumers Want More Protein In Their Diets And Look to A Range Of Sources For It” 2014 **When compared to leading RTD protein drink with similar protein content ***Based on IRI sales data from Midwest grocery chain for 26-week period ending 12/31/14

Change vs. year earlier

Dollar Sales

Change vs. year earlier

Starbucks Frappuccino

$849,026,432

10.78%

Starbucks Doubleshot

$407,553,216

15.12%

Starbucks

$78,406,968

1.47%

Starbucks Frappuccino Light

$26,269,010

-0.10%

Starbucks Doubleshot Light

$11,368,231

10.42%

Illy Issimo

$8,028,369

80.41%

Coco Cafe

$7,270,407

32.29%

Private Label

$5,986,248

-14.94%

Rockstar Roasted

$5,026,831

N/A

Marleys One Drop

$2,497,114

75.46%

SOURCE: IRI, a Chicago-based market research firm (@iriworldwide) 52 Weeks through 2/22/15

NOT! Private Label


SPORTS DRINKS Brand Gatorade Perform

HOT! Gatorade Fierce

Dollar Sales

Change vs. year earlier

$3,191,815,680

1.67%

Powerade Ion4

$771,304,768

-10.07%

Gatorade Frost

$455,496,736

11.70%

Gatorade G2 Perform

$380,308,192

-19.74%

Gatorade

$232,131,856

49.30%

Powerade

$205,536,288

55.59%

Gatorade Fierce

$198,446,832

727.87%

Powerade Zero Ion4

$192,155,328

-1.24%

Gatorade G2

$43,377,416

1.07%

Gatorade X Factor

$29,017,314

13.98%

SOURCE: IRI, a Chicago-based market research firm (@iriworldwide) 52 Weeks through 2/22/15

NOT! Gatorade G2 Perform

WATER

HOT! Glaceau Smart Water

Brand Private Label

Dollar Sales

Change vs. year earlier

$2,015,799,424

6.72%

Dasani

$997,410,496

5.20%

Aquafina

$938,510,016

6.81%

Nestle Pure Life

$922,670,912

2.97%

Glaceau Smart Water

$670,225,792

19.97%

Poland Spring

$573,596,096

1.68%

Glaceau Vitamin Water

$510,168,704

-7.20%

Deer Park

$422,039,328

3.05%

Ozarka

$346,260,736

9.03%

Fiji

$263,470,576

7.47%

SOURCE: IRI, a Chicago-based market research firm (@iriworldwide) 52 Weeks through 2/22/15

NOT! Glaceau Vitamin Water

WEIGHT CONTROL

HOT! Glucerna

Brand

Dollar Sales

Change vs. year earlier

Ensure

$369,972,128

6.18%

Muscle Milk

$272,455,232

-5.17%

Pedia Sure

$223,167,392

0.08%

Private Label

$197,727,024

-3.73%

Ensure Plus

$157,101,648

2.84%

Body Fortress Spr Advncd Why Prot

$110,709,288

-8.79%

Slim Fast 321 Plan

$109,965,048

Glucerna

$102,576,616

8.95%

Boost

$95,384,520

-15.62%

Kelloggs Special K

$78,306,280

-10.62%

SOURCE: IRI, a Chicago-based market research firm (@iriworldwide) 52 Weeks through 2/22/15

-20.34%

NOT! Slim Fast 321 Plan

BEVNET MAGAZINE APRIL-MAY 2015

25


Gerry’s Insights

Reading Away Preconceptions

By Gerry Khermouch

“I went down to the demonstration,” sang the Rolling Stones during the turbulent late 1960s, “to get my fair share of abuse …” It’s in similar quest of a bracing shot of humility that I pick up Edible Brooklyn magazine when I see it stacked in a favorite beer haunt or restaurant, not just because it’s always so nicely put together but because the matter-of-fact tone with which it discusses really arcane foods and beverages provides a salutary reminder that even a guy like me, who makes a living following beverage trends, is lagging a bit behind the curve when it comes to what’s emerging in that artisanal hotbed. Well, not just emerging, but seemingly already taken for granted among the magazine’s presumed readership of foodies, makers, growers, growler-fillers, mixologists, food-fair promoters and other contemporary Brooklyn species. While many of the food and beverage segments discussed in Edible Brooklyn may not stand the test of time, the coverage offers a stark reminder about how quickly new trends are popping up on the radar these days. It wasn’t so many years ago, of course, that even some of my colleagues on the beer side of the company where I work wondered why I wrote so much about this thing called acai (they pronounced it “ackeye”) in the non-alcoholic letter, Beverage Business Insights, that I produce. And did folks really drink this coconut water thing I seemed so enamored of? And what’s with this kabbucha stuff that’s made from some kind of blob? These days, of course, quite a few consumers, even outside the major coastal metros, can pronounce acai correctly, and find it used as a flavor note even in mainstream drink segments. They can purchase coconut water at the store attached to the gas pump, and can adequately pronounce the word “kombucha” – even if it’s just to pronounce the stuff disgusting – in their coffee shop and bar room banter. (Columnist’s note: most kombucha entries definitely aren’t, any more.) So what kinds of things are bubbling up in Edible Brooklyn these days? Recent issues include frequent references to items like cold-brewed coffees, juice cleanses and kombuchas in a tone that 26 APRIL-MAY 2015 BEVNET MAGAZINE

suggest these segments are so well established that they no longer need explanation (at least in Brooklyn). The latest issue talks up a cold-weather cocktail called the Switchel Toddy served at a place called Montana’s Trail House (in the gentrifying industrial neighborhood of Bushwick, where, until fairly recently, the only trails to be found were the cold trails of professional car theft rings). The toddy, the magazine reports, involves a Kombucha Brooklyn mother working her magic on upstate apple cider in whiskey barrels from Kings County Distillery. (Maybe in their rendition of “You Can’t Always Get What You Want” on their next tour the Stones should use the updated lyric: “I saw her today at the reception, a glass of Switchel Toddy in her hands …”) Elsewhere in the issue, we get a profile of Port Morris Distillery, which is reviving a Puerto Rican moonshine style called pitorro in a South Bronx neighborhood that is itself reviving, as well as a disquisition on a bartender on Manhattan’s Lower East Side who’s creating elaborate “coffee-forward” cocktails that go far beyond Irish Coffee. Example: The Flamingo, marrying Ethiopian Guji coffee with tequila, cocchi rosso (what, you don’t know what cocchi rosso is?) and apple bitters. “Leave your preconceptions at the door,” advises the writer. I think that’s solid advice for all of us these days, even if it can be intimidating keeping up with this welter of concepts. If you’re a retailer or distributor, consider this column an exhortation to keep an open mind about some of the odd new categories and hybrids being tossed your way. After all, it wasn’t so long ago that coconut water seemed like a peculiar idea for a sports drink. Now it’s an established category, and igniting in its wake a push to establish aloe vera as the next promoted-from-the-ethnic-ghetto elixir. We’re seeing a wave of other plant-based waters, too, all claimed to have terrific nutritional

bona fides, including maple water, cactus water and watermelon water. Other entrepreneurs are ransacking our nation’s rich culinary past and resurrecting such nearly forgotten styles as switchels and drinking vinegars (whose heritage makes kombucha seem not quite so much of a stretch any more). Still others are happy to latch onto some underappreciated tea or coffee varietal – perhaps puerh didn’t pan out as a ready-to-drink entry for Numi Tea a few years back, but matcha green tea seems to be supporting quite a few innovative RTD entries, most of which downplay the ingredient’s heritage of ceremonial uses in Japan in favor of its potent benefits, which are amped up since you’re ingesting the whole leaf. It’s hard as ever to handicap which of these might jump the shark into mainstream acceptance the way coconut water has, but they all have a compelling story behind them. We need to keep reminding ourselves, then, to leave our preconceptions at the door. Longtime beverage-watcher Gerry Khermouch is executive editor of Beverage Business Insights, a twice-weekly e-newsletter covering the nonalcoholic beverage sector.


A NATURAL

PROGRESSION

COCONUT WATER SHUFFLES THE FLAVOR DECK BY RAY LATIF

28 APRIL-MAY 2015 BEVNET MAGAZINE

When brands in most beverage categories introduce a new flavor, it’s to extend a brand’s shelf presence and attract new consumers. In the case of coconut water, a product that is often considered an acquired taste, additional varieties were long considered “training wheels” – a way to get consumers familiar with the flavor. But even in a category loaded with flavored line extensions, the original, or “natural” format remains the bestselling variety for most brands in the category. While some flavors, including pineapple and chocolate, have shown some traction, company executives say that the majority have yet to make a profound impact on household penetration. Market research firm Nielsen pegs that at 10 percent. Who is in that cohort? For the most part, it represents a crowd of early adopters, natural food shoppers,


those who might be more willing to try something new. Getting to the next level will take some more variety, however. “The majority of that household penetration is being led by natural,” said Zico president Tom Larsen. “When you take household penetration from 10 to 20 percent, will the mix change? I think that is why all companies in the coconut water continue to innovate through flavor. It’s because to continue to expand household penetration, you need to have flavors that aren’t quite as polar as natural is.” But a look at the way brands continue to pump resources into new varieties, particularly as flavor innovation and blending techniques improve, is revealing. The focus is on new products flavored with mainstream and familiar flavors – lemonades, Zico’s new Watermelon Raspberry product, and new blends that use coconut water as an ingredient to create low-calorie alternatives to traditional juice products. That reasoning was evident in last year’s launch of a lemonade variety for both Zola and Vita Coco. For each company, the hope was that lemonade would be an introductory and incremental flavor aimed at new placement and sales where the category was seen as underdeveloped. However well thought-out the strategy may have been, it doesn’t appear to have achieved as dynamic an impact as expected. A year later, Zola is reposition-

30 APRIL-MAY 2015 BEVNET MAGAZINE

ing the variety as a seasonal item and a “better-for-you” lemonade. As for Vita Coco, which buttressed its launch with a multi-market digital and outdoor advertising campaign, company spokesman Arthur Gallego stated that lemonade is “one of the brand’s top three best-selling flavors [out of five] and it’s still not as widely distributed as the other top two flavors: Pineapple and Peach Mango.” Gallego noted that Vita Coco’s 500 mL unflavored offering is typically the brand’s

best selling item, but that in recent months its 1 L counterpart has become the top-performing variety. So if flavors have had an underwhelming impact thus far, even at powerhouse Via Coco, what is missing? According to Harmless Harvest cofounder Justin Guilbert, the problem is that most brands add “a different flavor to kind of mask their product and get people excited about coconut water.” “It’s really [about] the idea that function can come with flavor,” Guilbert said. “It’s ‘I’m getting the benefits of coconut water, but I don’t have to have the experience of coconut water. Our approach is different. We’re going to leverage the coconut water.” Indeed, the bedrock of Harmless Harvest’s burgeoning business is the taste of its original “100% Raw” variety: an organic, Thai-sourced coconut water that is also high pressure processed, a safety method viewed as superior to pasteurization for maintaining the taste profile of raw ingredients. Harmless Harvest does market a handful of flavored products, including esoteric varieties like its Cinnamon & Clove and Cacao, but Guilbert said the company must walk a fine line when introducing extensions, because its


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customers are so devoted to the taste of the original unflavored product. “It’s created this response, which is ‘your product is so good in the first place, so whatever you do to it, even if it’s improving the functionality or adding a new layer of flavor, you’re still always going to dilute the original flavor,’” he said. “So that is a key learning for us. That doesn’t mean that we not going to keep on developing formulas in the future and pushing the products that are currently on the market, because they’re selling well. They’re not outselling the original, but they’re selling well. It gave us an understanding the fundamentals of the audience that we’re selling to.” Like Larsen, Guilbert views an expanding flavor set as essential to the continued development of Harmless Harvest and the category as a whole. While flavors currently represent close to 20 percent of sales, Guilbert believes that number could eventually rise to half of all revenue. The key, however, will be in how the company distinguishes new products from its original coconut water and creates different consumption opportunities. “The only way to get to that [number] is if people understand that it’s a formula and blend,” he noted. “If you consider it a flavoring, like ‘coconut water with this flavor,’ we’ll never reach that. If we’re not able to break that complement barrier, we’re never going to get there.” Zico is chasing those new consumption opportunities via its Chilled line. Introduced in August, the brand extension is the company’s first foray into perishable coconut water products. Packaged in 1.5 L multi-serve cartons, the line includes three SKUs made with not from concentrate coconut water: a “Natural” unflavored product and two 100 percent juice blends, Orange and Pineapple Mango. Promoted as offering “the hydration benefits of coconut water and the delicious taste of fresh juice - with up to 45 percent fewer calories than regular fruit drinks,” the products launched in natural food sections of conventional grocers and are also represented in refrigerated cases alongside fresh produce. Larsen described Chilled as

32 APRIL-MAY 2015 BEVNET MAGAZINE

an effort toward building “a juice platform that’s sold in the produce section.” Other brands recognize the potential of introducing coconut water as an ingredient to create additional variety and functionality into their core products. Organic juice stalwart Uncle Matt’s, for example, recently introduced a coconut water-blended variety of its orange juice; Odwalla, Naked and Bolthouse are similarly using it as an ingredient in many smoothies. Zico is not alone in targeting the produce set. The space has reaped rewards for Zola, according to company founder Chris Cuvelier, who said that in 2014 his brand “drove more dollars in conventional grocery that Zico.” It’s a retail strategy that has its roots in the natural channel, in that consumers identify packaged goods sold in produce as aligned with with the perception of fresh and healthy food. “You’re tying that consumer that is purchasing products in that same kind of space in the store, but also that consumer that buys like items,” Larsen said. “They’re driven by taste; they’re not driven as much by package or price.” Zico is planning to launch new 500 mL sizes of its Chilled products, deepening its presence in refrigerated coolers, and, the company hopes, expanding consumption to consumers seeking lower-calorie juice beverages and natural functionality offered by coconut water. Larsen hinted at the development of

more flavor varieties and blends, and while it’s unknown if a revamp of Zico’s short-lived Latte variety is in the pipeline, coffee-infused coconut water products have become booming line extensions for Vita Coco (with its Coco Cafe sub-line), Zola, and, more recently, Harmless Harvest, which debuted its “100% Raw Coconut Water with Fair Trade Coffee” in March. Guilbert noted that coffee and coconut water blends are a “whole different world, because the functional benefit for coffee is very, very clear for people.” “It’s a much easier combination for people to make,” Guilbert said. “Combining the two was a much was simpler composition to the audience. We’re selling out within hours, and we’re just trying to catch up to demand.” Cuvelier concurs, pointing to Zola’s success with its Espresso variety (which recently leapfrogged Pulp to become the brand’s number two selling single-serve product) as an indication of how mainstream consumers can more easily grasp coconut water flavors that are infused with sympatico functional ingredients. “We’re trying not to stay on this bleeding, cutting-edge thing,” Cuvelier said. “We’re a brand that’s gone from natural to conventional grocery. And so I want to look at things that are mainstream that I can bring into the category that there’s not a ton of education that needs to happen [so] that I can go drive revenue quickly.”


Brand News

Coconut Water

FOCO Organic Coconut Water is launching

Dr. Antonio Martins, Europe’s category leader

two new varieties this spring - Coconut Water with Chocolate and Coconut Water with Coffee Latte. Both of the new flavors are blended with milk and lightly sweetened and will be available in resealable 330mL (11.2 fl. oz) Tetra Pak containers.

and pioneer in coconut water, according to the company, grew sales by over 40 percent in Europe, powered by a 164 percent increase in revenue in Germany. The brand is carried in organic and health food stores across Europe. The products come in 330 mL PET bottles and are NOP and EU certified organic.

MINOKU has announced a new distribution

partnership with KeHe to bring its 350mL and 250mL cans to all 50 states. Additionally, the brand has partnered with broker E.F. Riemen to obtain national coverage. In March, MINOKU launched an aggressive price promotion at Natural Products Expo West which ran until May 1. The company plans on unveiling a new flavor line later this summer. Amy & Brian launched two new flavors at Natural Products Expo West. Cinnamon and Grape flavored Thai coconut water is now available nationwide through Nature’s Best and UNFI distributors. In addition to its 17.5 oz. cans, Amy & Brian is also introducing a 1L tetra-pak for its Original Thai coconut water. Jax Coco recently launched a new line of

naturally flavored coconut waters – Jax Coco Chocolate and Jax Coco Banana – sweetened with pure cocoa and banana puree, respectively. The flavored line is made with 100 percent pure micro-filtered coconut water from the Philippines and is gluten-free, vegan and vegetarian. CHI has launched the United Kingdom’s first

organic raw coconut water brand utilizing high pressure processing technology. The new premium product joins Chi’s lineup of nonHPP coconut waters and will be available in a 250mL and 500mL bottles. COCOZIA recently introduced a chocolate-

flavored variety of its 100 percent organic, non-GMO Project Verified coconut water. The brand is now available at Costco and Whole Foods stores in the state of Florida as well on Amazon.com. Extending itself beyond water, COCOZIA also launched an organic virgin coconut oil.

ZOLA natural coconut water is now available in 2,600 natural and grocery chain locations in the Northeast, Southeast, Pacific Northwest and West Company. The company also recently announced an extension beyond coconut water in launcing a line of organic dark chocolate covered fruit. Available in three flavors - Dark Chocolate Covered Acai-Bluberry, Coconut and Dragon Fruit - the new product is made with USDA Certified Organic ingredients and 60 percent Fair Trade Certified cocoa. Vita Coco has launched its first-ever 1L flavor with the introduction of 1L Pineapple, the brand’s best selling flavored coconut water. The category leader claims the extension came as a response to consumers’ increasing demand for larger, multi-serve flavored offerings. The new package is available at retailers nationwide with a suggested retail price of $4.99. Harmless Harvest has introduced a 100 per-

cent raw coconut water with fair trade coffee, exclusively at Whole Foods. With 50 mg of caffeine per 16 oz bottle, the company says the new product “won’t cater to the energy drink consumer” but rather will be positioned as a new type of beverage that offers consumers a unique balance of hydration nutrition and a caffeinated boost. Just Coco obtained its non-GMO verification

at the start of 2015. In the months since, the brand has increased its sales throughout the Midwest via the KeHE grocery channel and the Northeast by way of the KeHE natural channel. Just Coco is also now available at the supermarket chain Hannaford in the New England area. Purity Organic is expanding its distribution

on both coasts. In April, the company’s 1L

34 APRIL-MAY 2015 BEVNET MAGAZINE


organic coconut water entered 270 Safeway stores in Northern California. On the East coast, the brand is expanding its presence by way of a distribution partnership with Great State Beverages. POWERCOCO’s coconut water sports drink boasts six times the potassium, half the calories, and half the carbohydrates of the leading sports drink. The brand is now available at over 4,000 retailers across the United States, including Sprouts, Whole Foods, Albertsons, Walmart Neighborhood Markets, and most recently Publix and Kroger.

iDrink’s USDA Organic, not from concentrate, natural coconut water is shelf stable without refrigeration for up to one year. Packaged in an eco-friendly paper bottle the brand is available in classic coconut, mango, pineapple, and chocolate varieties. ZICO has added a Watermelon Raspberry option to its line of flavored coconut waters. Joining Chocolate and Pineapple, Watermelon Raspberry is now in retailers nationwide in 14. fl. oz. re-sealable bottles at the suggested price of $2.49. O.N.E. has undergone a substantial packaging

Coco Rio is now available at Sam’s Club. The

all-natural, non-GMO Project Verified, never from concentrate coconut water is made from young green coconuts grown and harvested from plantations in northern Brazil. It is available in 330 mL Tetra Paks.

redesign, placing the brand name front and center and billing itself as “energizing hydration.” The PepsiCo-owned coconut water brand also recently added two new tea-infused flavors to its lineup: Tropical Colada and Wild Orange.

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PUTTING THE PEA IN PROTEIN DEMAND FOR VEGAN SOURCES GROWS AS TECHNOLOGY IMPROVES BY NEIL MARTINEZ-BELKIN Whether it be for noble interests in global sustainability or just an annoying inability to process lactose, more and more people are shifting towards plant-based diets. That’s not exclusive to strict vegans and vegetarians either. Even those without principled stances are seeing the health and ecological benefits of going green, or at least going a little bit greener. But regardless of how far the trend goes, people aren’t going to be willing to compromise one essential part of their nutritional health: getting enough protein. Interestingly enough, that same group has started to turn away from what has long been the go-to alternative to animal36 APRIL-MAY 2015 BEVNET MAGAZINE

based protein, soy. Amid growing concerns over genetically modified organisms (GMOs) and its reported effects on women’s reproductive health, soy is falling out of favor with many of today’s increasingly health-conscious consumers. Enter the pea, the trending plant-based protein source du jour. From a performance standpoint, the pea certainly has its merits. It’s high in protein, rich in iron, and has a strong amino-acid profile, making for a sustained release in the body. It’s in line with the overarching interests of the modern shopper, being non-GMO, hypoallergenic, and easily digestible. It’s also more soluble

than other plant proteins, which makes it an attractive option for beverage brands looking to supplement their drinks with a vegan protein source. Santa Monica-based Botan, which launched at the top of 2014, was one of the first brands to introduce a beverage with pea protein at its forefront. For Botan founder and CEO Edward Canaan, the biggest challenge in the year since his company went to market has been scaling up, as the global demand for peas continues to grow at a rapid pace. “We grew so quickly it was hard to keep up with demand in terms of the supply of pea protein,” Cannan said. “We were


buying it by the kilo, then hundreds of kilos, and now we have to buy by the ton. So keeping up with demand has been our number one challenge.” Tempering that demand, however, has been the ingredient’s other obstacle: a strong and frankly unpleasant taste. It’s through a continuing trial and error process of formulation and innovation that suppliers and beverage brands appear to be getting closer to improving the flavor profile of pea protein. As that happens, the pea is popping up in an increasing number of applications. In the case of San Diego-based cold pressed juice brand Suja, adding pea protein to a high-pressure-processed drink avoids the aftertaste that would otherwise come with the pasteurization process. At last month’s Natural Products Expo West, Suja unveiled its new ‘Sunset Protein’ nut milk, boasting a blend of pea and hemp protein. Bryan Riblett, Suja’s Vice President of Commercialization, noted that pea protein hits several targets for beverage formulation. “I definitely prefer it from a blending standpoint,” said Riblett. “It has a smooth

texture and you don’t get that same chalkiness that you’d get in a rice protein.” Also introducing it into their products is Califia Farms, the fastest growing natural beverage company in the United States. At Expo, the company introduced a vegan reformulation of its almond milk protein line, swapping out whey for a pea and sprouted rice protein blend. Califia founder and CEO Greg Steltenpohl says the decision to reformulate came at the behest of his customers. “We were hearing from our constituency that people wanted us to become a vegan brand,” Steltenpohl said. “And pea has proven to be a winner in that vegan market as far as protein alternatives.” The new formulation packs six grams of protein, two grams less than its earlier formulation. Steltenphol says that’s still in line with the evolving protein needs of the consumer. “The protein game is shifting from that ‘Ours has more than yours’ emphasis, he explains. “Americans are realizing they already have a lot of protein in their diet.” To be clear, pea protein is unlikely to usurp soy, or whey, anytime soon; it’s

market share is still relatively small and people’s pursuit of plant-based protein sources isn’t limited to the pea. It’s got its competitors. Hemp protein is growing, as are rice and pumpkin seed protein. So is spirulina, an equally strong protein source, albeit more expensive. Even so, pea protein’s future appears promising. Vegan or not, more than ever people are looking to nourish themselves in a healthy, clean and sustainable way, and so with refinement, the humble pea finds itself in the right place at the right time. It remains to be seen whether the pea will step out on its own or if its application will primarily be used in combination with other sources as is the case with Suja and Califia’s new products, but as its sourcing becomes more reliable and suppliers find cleaner flavor profiles, expect to see pea protein get utilized in more beverages, snacks, and nutrition bars. “I’m of the belief that the future of nutrition will be plant-based,” says Canaan. “And the pea is definitely versatile. It’s really yet to be discovered just how much can be done with it.”

Protein GMP Registered

BEVNET MAGAZINE APRIL-MAY 2015

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Brand News

Protein & Meal Replacement

Rumble has added a Coffee Bean flavor to its

CalNaturale Svelte recently announced the intro-

lineup of gluten-free, non-GMO, soy-free and lactose-free protein beverages. Joining Dutch Cocoa and Vanilla Maple, Coffee Bean contains 22 ingredients, 20 grams of protein, 8 grams of fiber and 3,100 milligrams of omega 3’s. The new product also packs organic, fair trade coffee, providing 110 mg of caffeine. Rumble is available in Whole Foods’ South Pacific and Mid-Atlantic regions, as well as other retailers including New Seasons Market, Bashas’ Bristol Farms, Lazy Acres, Huckelberry’s, Market of Choice, and Fresh & Easy.

duction of Svelte Banana Crème, the newest addition to its line of USDA Certified Organic, vegan, lowsugar protein shakes. Svelte contains 11 grams of protein and 6 grams of sugar with organic complex carbohydrates for a nutritious on-the-go beverage.

B’More Organic is a brand of Icelandic-style Skyr smoothies. The organic, high-protein beverages are available in five flavors: Vanilla, Cafe Latte, Banana, Mango Banana and the recently launched Strawberry. B’more is available in national retailers such as Whole Foods and Wegmans. Premier Protein has gained nationwide distribution

at Sam’s Club where its Mixed Berry will be available in an 18-count pack. The ready-to-drink, shelf stable smoothie boasts 15 grams of protein, 140 calories and 60 percent less sugar than the leading refrigerated protein shake. Urban Remedy’s Mint Cacao Chip Shake has the honor of being brand ambassador Cindy Crawford’s favorite protein shake. The beverage is allergenfriendly, vegan, certified organic and non-GMO. ICONIC has undergone a packaging redesign and is launching a new flavor, Café au Lait. Made with 20g of grass-fed milk protein and fiber with only 130 calories, ICONIC is gluten-free, soy-free, non-GMO and naturally sweetened. It’s launching in Sprouts, Central Market, HEB, HUMAN Healthy Vending, select Meijer locations, as well as online grocer Fresh Direct. trimino protein-infused water is now available

in over 2,000 stores in twelve states. In March, the company added Northeast distribution with Crystal Rock, one of the largest independent home and office distributors of water, coffee, and office products in the region. NuAquos has updated its packaging to coincide

with a second quarter promotion campaign. The promo includes custom racks, a coupon program and monthly mountain bike giveaways. Available in five flavors - Peach Mango, Pomegranate Acai-Blueberry, Watermelon, Orange, and Kiwi Strawberry. The protein drink contains 12 grams of protein, six electrolytes and 19 vitamins and minerals. 38 APRIL-MAY 2015 BEVNET MAGAZINE

Protein2o is headed to Canada by way of a re-

cently announced distribution agreement with beverage distributor Unique Foods Canada. Stateside, the company has added Jewel Osco, Lunds and Byerly’s, Target and Fairway to its list of retailers carrying the protein-enhanced water brand. Enu complete nutritional shakes have expanded its brokerage relationship with Alliance Sales and Marketing of Charlotte, North Carolina, who have begun providing national representation for retail distribution. Additionally, ENU is expanding promotion to sports nutrition, and has obtained certification through Informed-Choice, who verified the product is free of all banned substances. ENU, which comes in Chocolate and Vanilla flavors, contains 25 grams of protein and 480-490 calories per serving. Go Body has recently reformulated its four flavors in an effort to improve the mouth feel and viscosity of its hydrating protein drink.The company has a distribution agreement with convenience store chain Spinx which is set to begin in September of 2015. Go Body contains 25 grams of whey protein and 8 grams of sugar with 150 calories per bottle Orgain’s Vanilla 25-gram Organic Protein shake is the newest addition to their line of ready-to-drink shakes. With 25 grams of organic, grass-fed whey and milk protein, each 11 oz shake provites 150 nutrient-dense calories with just 3 grams of net carbs. Orgain is sold nationally at retailers including Whole Foods Markets. The original 4-packs will be available at Target beginning in May, and all six of Orgain’s single-serve shakes will be available at Kroger in June. All of Orgain’s products are certified organic, doctor-developed, and free from soy, gluten, or GMO ingredients. Core Power has signed Dallas Cowboys quarterback Tony Romo as its newest brand ambassador, alongside trainer and motivational speaker Shaun T, Charlotte Hornets point guard Kemba Walker, New York Rangers captain Ryan McDonagh, Chicago left winger Patrick Sharp, and Paralympic athlete Blake Leeper. The announcement coincides with the launch of the brand’s 2015 “Everyday Awesome” campaign.


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An Alternative Brew

By David Eisenberg

To the purists, the idea of debasing a perfectly good beer with fruit juice seemed blasphemous. It was only after the doubters tasted the product, an unfiltered wheat beer made with grapefruit juice, that Harpoon Brewery was able to quell the skepticism within the company. That done, it had in its possession what would go on to become what one company executive said was the brewery’s biggest product launch ever in terms of first year sales volume: Big Squeeze Shandy. Released as a summer seasonal last March, Big Squeeze was really just one more in a growing line of shandies from brewers both craft and crafty. The style itself has emerged as a palatable alternative in traditional beer portfolios and could be a hint at what’s to come. But the style is hardly the only option for beer companies looking to diversify their offerings. Brewers have also 40 APRIL-MAY 2015 BEVNET MAGAZINE


jumped into the exploding cider segment, while teas and packaged cocktails have proven viable for others looking to accommodate changing tastes. And while they certainly do that, there’s more at play here than mere differentiation. But first: It can be a bit of a touchy subject trying to group all of these products together. Progressive adult beverages (canned cocktails from AnheuserBusch InBev, Four Loko, Boston Beer’s Twisted Tea) are tracked differently than, say, ciders by retail information compilers like IRI. The firm is considering moving Redd’s Apple Ale from MillerCoors to the PAB category, for instance, whereas now, it’s considered a super premium beer. There does seem to be something connecting them all though, according to Mark Hellendrung, CEO of Rhode Island’s Narragansett Beer. The company landed a hit of its own last summer with Del’s Shandy, a collaborative product blended with Del’s Lemonade. “The Angry Orchards, the Redd’s [Apple Ales], the Mike’s [Hard Lemonades], Leinenkugels, Del’s Shandy, Bud Light Cran-Brrr-Ritas, they’re all sort of going after a similar occasion and similar consumer,” said Hellendrung. “More female, probably younger, and is looking for that flavorful alcoholic experience, and maybe they prefer that beverage to a Sea Breeze or a Cape Codder or something like that.”

42 APRIL-MAY 2015 BEVNET MAGAZINE

Progressive Adult Beverages Product Bud Light Lime Mikes Hard Smirnoff Ice Mikes Harder Twisted Four Loko Smirnoff Premium Mixed Drinks Sparks Joose Cayman Jack Johny Bootlegger Dos Equis XX Margaritaville Goya Moskato Great America Colt 45 Blast Kinky Tragos Frescos Arnold Palmer

Dollar Sales $530,129,189 $237,712,224 $205,527,817 $188,811,440 $152,965,721 $133,025,255 $39,822,954 $20,353,249 $15,047,903 $14,115,026 $12,477,357 $11,738,877 $7,634,568 $7,188,228 $3,280,491 $3,000,890 $2,751,819 $2,654,744 $1,514,122 $1,282,031

Change vs. year earlier 5.9% -6.5% -1.1% 30.9% 18.8% -6.4% -11.6% -14.1% -1.0% 5.1% 2.6% n/a -46.2% 5.9% -0.2% 428.2% -48.7% n/a n/a -25.3%

SOURCE: IRI, a Chicago-based market research firm (@iriworldwide) 52 Weeks through 2/22/15

So, competitively, it’s a nebulous environment. On the smaller end, it’s about shandies and ciders. Harpoon dabbles in both, relying on word of mouth and “whatever equity the category already has” to do the legwork for its Big Squeeze shandy and cider brands, according to president Charlie Storey. That way, they can be there for people whose palates might be IPA-averse. “I don’t know that we’d be successful in taking a UFO Big Squeeze drinker and somehow converting them to a Harpoon IPA drinker,” he said. “What it does mean is we can participate in this market, in the shandy segment. We can build our brand awareness.” Down in Rhode Island, Hellendrung said the popularity of its Del’s Shandy provided a boost for the company’s flagship lager by helping bar owners forget the image of the “crappy ‘Gansett from the 70s.” “It brought the lager along in a lot of cases. Last summer in New England, Del’s almost became something bar owners had to have, so that would open the conversation up for Narragansett,” he said. “It changed the perception for some who hadn’t figured out what we’re all about.”


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While industry watchers told BevNET they expect the torrid pace of cider (up 72.9 percent in multi-outlet and convenience channels, per IRI) to slow a bit, the shandy could be in for its biggest year yet. The style could double in 2015 to account for nearly 1 percent of all beer, according to a survey of distributors representing approximately 10 percent of total U.S. beer volume that was conducted by investment-banking firm Jefferies and Co. Much of that will be driven by the continued performance of Leinenkugel’s seasonal shandy line (which resides in MillerCoors’ craft and import portfolio, Tenth & Blake), as well as by Boston Beer’s new foray into the space with Traveler Beer, a line of shandy and fruit beers. During Boston Beer’s fourth quarter earnings call in February, president and CEO Martin Roper explained how the company plans to invest in taking the brand, operated by subsidiary Alchemy & Science, national, hinting that the view is similar to the powerhouse cider outfit it owns in Angry Orchard.

“I hate to link these two brands together, but I’d be happy if we got Angry Orchard first full year distribution with Traveler,” he said. “I’m not saying that in any way to suggest that we think Traveler is going to burst on the scene like the cider category, but that’s sort of more how we’re thinking about its first year.” The more traditional PAB category is populated by familiar brands like Mike’s Hard Lemonade, Four Loko, Twisted Tea (again, a Boston Beer holding) and Smirnoff Ice. However, some of the big guys in beer, the kinds of companies Sam Adams likes to note spills more than it produces, are there, too. “There’s no question that ABI and MillerCoors and you can even argue Heineken are all doing that, they’re all playing across the segments,” said Dan Wandel, principal of Beverage Alcohol Clients Insights for IRI. “When you look at the larger guys, those would be the three that jump out.” For example, A-B InBev is building behind Bud Light Lime, its new Mixxtail line, Johnny Appleseed Hard Cider and perhaps most indicative of the ill-defined space, its Rita franchise. There, the more traditional boom-bust cycle of the PAB seems to apply, as it has for the Zimas that came before it. “What we’ve seen, certainly with the Rita products, as new flavors come out, the previous ones seem to see declines,” added

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Cider Brand

Dollar Sales

Angry Orchard Woodchuck Johnny Cider Smith and Forge Strongbow Stella Artois Cidre Crispin Michelob Cider Hornsbys Bold Rock Magners Ciderboys Square Mile Ace Wyders Citizen Cider 2 Towns Samuel Smith Cider Fox Barrel Spire Mountain

$224,359,908 $37,577,799 $25,918,223 $24,747,768 $17,910,465 $12,255,580 $8,606,641 $7,063,829 $5,452,236 $3,005,523 $2,460,310 $2,423,934 $2,365,146 $2,298,857 $2,236,879 $1,631,819 $1,628,404 $1,528,275 $1,478,968 $1,301,554

Change vs. year earlier 76.5% -13.1% n/a n/a 91.8% 92.3% 5.7% -19.7% -43.4% 118.4% 53.7% 68.8% 413.7% 21.0% 1.9% 1751.2% 134.4% 30.1% 3.6% -4.3%

SOURCE: IRI, a Chicago-based market research firm (@iriworldwide) 52 Weeks through 2/22/15


Wandel. “Each year there tends to be new flavors released and we see when that happens, it’s not unusual to see declines of the previous year’s flavors. It’s not always the case, but it’s pretty often the case. It’s a pretty flavor-driven, pretty-innovation driven segment. Always has been and probably always will be.” Put into that perspective, Straw-Ber-Rita and Lime-A-Rita saw sales dip each 41.3 and 45.8 percent in MULC in 2014, while Lime Mang-O-Rita and Lime Raz-Ber-Rita were two of the strongest debuts in the whole portfolio. Like Bud, MillerCoors is also spread well throughout the segment. Though down 15 percent in 2014, the abovementioned Redd’s Apple Ale – the one that may see its IRI categorization change in the coming days – is only two spots behind the company’s venerable Blue Moon Belgian White in terms of dollar sales across MULC. The company has also made inroads in the cider category with Smith and Forge as well as Crispin, the latter of which acquired Fox Barrel Cider Company in 2010. As for Heineken, the Dutch company entered the segment modestly last year with the release of Desperados, a tequila barrel-aged lager, throughout the southeastern United States. And now Bud itself has followed with Oculto, a barrel-aged tequila beer blend. But despite the barrage of new entries from companies big and (comparatively) small and the ebb and flow of popularity of respective brands and styles, the loosely defined PAB category itself has balanced over the past decade holding between 3.2 and 4.5 percent of the broader beer category’s dollar share, according to Wandel. What beer companies will roll out next to slake the market’s thirst remains to be seen, but as Wandel says, the space thrives in pursuit of answering the question: “What have you done for me lately?”

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THE

OF

BY JEFFREY KLINEMAN

The sweetener industry would like you to understand that corn syrup isn’t dead. It sees marketers and retailers who have been rushing to swap HFCS from products as following a fad, and not getting a good overall picture of consumer behavior. According to an intensive study conducted by the MSR Group – on behalf of the Corn Refiners’ Association – the growth of health as a driver of consumer purchases is surpassed only by two other drivers: taste and price. And when those two elements come into play, consumers buy the same old products: sodas, full-calorie teas and juice drinks, and more than enough other products to keep the corn 46 APRIL-MAY 2015 BEVNET MAGAZINE

growers in business for years to come. “People are interested in reducing sweeteners overall, rather than any particular type of sweetener,” notes Sarah Martin, an analyst who worked on the study. They might have heard in the press that they don’t like high fructose corn syrup, they might say they want to avoid it she said, but ultimately “there’s a disconnect between what they say and what they do.” So what they do, she said, is load their carts with many of the same kinds of products that they always have – but the difference is that they’re loading in fewer packages, smaller packages, but packages nonetheless. If the proportion, the share, isn’t changing, whole pie is getting smaller.

Still, even the sugar lobby can’t ignore that many of the products most closely associated with its chief ingredients aren’t selling as well as they used to. But if the knife is falling, it’s a huge knife – and other blades are hurtling Earthward even faster. Certainly, soda sales have been in decline for a decade – but diet CSDs have been going through an even more drastic change: they’ve dropped 20 percent over the past five years, according to Euromonitor. Example number one is Pepsi Cola finally re-passing Diet Coke as the runnerup to Coke Classic in annual soda sales. There are many reasons for this diet drought: concerns about the healthfulness of Aspartame and the press those concerns


have recently gotten; manipulative pricing and the development of new package sizes; a generational change that has fewer millennials drinking soda of any kind; underscoring the purchasing power of core CSD consumers; but maybe it’s just plain taste. It’s with this in mind that the beverage industry continues to search for what many call the “Holy Grail” of sweeteners: zero calories, sugary sweetness and mouthfeel. Meanwhile, it tinkers with the formulations it has. Mid-calorie products are rolling out again, mixing HFCS or cane sugar with Stevia, as with Coca-Cola Life and Pepsi True, and Dr Pepper’s 10 line, which puts sugar in the mix with aspartame. Stevia blends and mutations are also on the table: one company, Evolva, according to a Bloomberg report, is trying to clone different parts of the stevia leaf via fermentation to create a marketable, affordable next generation. Other ideas, like finding molecules that can enhance mouthfeel and flavors like sweet or salty, are being researched at places like Senomyx. For now, however, it’s clear that with sweetened beverages, a preference remains for many consumers for cheaper and

sweeter: in one case, kids beverage warhorse Capri Sun switched to cane sugar from HFCS and then back again, after it didn’t gain the company any share and cost it more money. It’s what’s on the increasingly wider margins, however, that has companies scrambling for innovation: for every Capri Sun sale, Honest Kids, a less sweet, organic product, picks up a growing fractional share. Pepsi might be gaining share because it’s bleeding less than Diet Coke, but they’re both losing drinkers: meanwhile trendier CSD brands like Q Tonics, Zevia and Maine Root are gaining sales, growing as brands, using sugar or stevia blends as a sweetener. Other carbonated products, like Kombucha, are also sweetened with stevia, while plain flavored carbonated water, sweet or unsweet, is also a hot category. How to explain the changes? Despite segmentation, over the long haul, there are two things affecting consumer preferences: time and taste. The companies that follow, in brand news, are the ones trying to keep up with what are unstoppable changes to the latter – before the former runs out.

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47


Brand News Tradin Organic. One trendy product from Tradin Organic is organic Coconut Sugar & Coconut Sugar Syrup. With its Indonesia operations, Tradin Organic mastered the challenge to quickly create a stable source of supply for coconut sugar to meet the growing demand for healthy sweetening solutions in the US. The company collaborates with two cooperatives on Java that work strictly based on sustainable and organic farming practices, maintaining the traditional production of coconut sugar to ensure maximum flavor and quality. Tradin’ partners in Indonesia have obtained organic certification: EU organic certification since 2011, USDA NOP certification since 2012. The Ingredient House. EPC and The

Ingredient House (TIH) formed a partnership at the beginning of 2013 to develop the market for better tasting stevia products. EPC has developed several new generation stevia products which are better tasting and easier to formulate that the older Red A 97% products. In the USA and Canada these new generation products are only available from The Ingredient House, where EPC and TIH have formed an exclusive agreement. The World Stevia Organization ‘WSO’ holds an annual World Convention on Stevia and encourages the development and new launches of tasteful stevia extracts and finished products. After winning Stevia Tasteful Award 2013 with One Leaf, EPC’s application development was awarded for Stevia Tasteful Award 2014 with Three Leaves, the highest award category. Tate & Lyle recently announced the launch

of DOLCIA PRIMA Low-Calorie Sugar. DOLCIA PRIMA Allulose delivers the satisfying mouthfeel and sweetness of table sugar, but contains 90 percent fewer calories, allowing beverage manufactures can significantly reduce calories in products while maintaining the same taste and enjoyment of sugar that consumers demand.allulose, a low-calorie sugar that exists in nature and can be found in small quantities in some fruits and foods people eat every day. It was first identified in wheat in the 1930s. Tate & Lyle’s food and culinary experts have de-

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Sweeteners

veloped an understanding of how DOLCIA PRIMA Low-Calorie Sugar can be incorporated into food and beverage formulations so they taste the same as the full-sugar versions, but with significantly fewer calories. DOLCIA PRIMA can also be used in combination with sweeteners, such as SPLENDA Sucralose and TASTEVA Stevia Sweetener, to enable even better sweetening systems. - As part of its commitment to developing innovative ingredient solutions for the industry’s biggest health and wellness challenges, Tate & Lyle is working with several health organizations to educate health professionals and those that they counsel about allulose. Cargill. Given consumers’ growing concerns about health and wellness, Cargill says it sees continued opportunities for reduced-calorie beverage products that deliver on great taste. The company’s portfolio of sweeteners includes ViaTech stevia-based sweeteners and Zerose erythritol, two zero-calorie products designed to provide beverage manufacturers with product formulation solutions to reduce calories and sugar, and still meet consumers’ taste expectations. ViaTech stevia-based sweeteners help beverage manufacturers achieve optimal sweetness and significant sugar reduction in even the most challenging reduced- and zero-calorie formulations. Zerose erythritol is a bulk sweetener with zero sugar and zero calories. Because it tastes about 60 to 70 percent as sweet as sugar, provides bulk, and masks the aftertaste of intense sweeteners, Zerose erythritol is often paired with stevia-based sweeteners. The taste quality of the pair is well rounded and sugar-like, yet it’s calorie-free. In addition, the bulking benefits of Zerose erythritol deliver beverages with fuller mouthfeel. Jungbunzlauer. ERYLITE Stevia is Jung-

bunzlauer’s unique blend of the natural sugar alcohol ERYLITE and Rebaudioside A, a highly pure stevia plant extract. Fused into one crystal, ERYLITE Stevia provides an exceptional sweetening system that delivers on all aspects: sweetness, taste, and functionality, combined with a natural and zero calorie character. The uniqueness of ERYLITE Stevia is based on the concept of


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Brand News simplicity: to create a clean sugar-like taste profile where no additional ingredients like flavours or masking agents are needed. It can be used as sugar replacement in all food and beverage products. Beverages, the main target of the industry’s effort of sugar reduction, are easily reformulated with ERYLITE Stevia to create low and zero calorie concepts, according to Jungbunzlauer. Sola. SolaBev stands alone in its ability

to function like sugar in a wide variety of beverages. It has the same texture, moisture and viscosity as sugar, but with 75 percent fewer calories, and a formulation that has eliminated the strange mouthfeel and bitter aftertaste frequently associated with other low calorie sweeteners. Sola offers the sweetness of sugar for beverages and foods. Sola is made from natural, non-GMO ingredients, sweetens, bakes and cooks like sugar, providing functionality that no other low calorie sweetener can match, measures one-to-one to sugar. Sola brand sweetener was initially developed in 2012 by Ryan Turner, a chef from England and a regular contributor to “Diet & Health Today” magazine. Based in Houston, Tex., The Sola Company specializes in health and wellness products and services. The company is managed by a team of packaged goods executives, each with over 25 years of experience respectively in marketing, sales, finance, manufacturing, operations and supply chain management. Members of The Sola Company team have worked with Aramark, Campbell Soup Company, Kraft Foods, McNeil Nutritionals (J&J), Tate & Lyle, Imperial Sugar, and many other major corporations in the development of innovative new food products and services. BENEO’s functional carbohydrate Palatinose

has been a vital part in the liquid nutrition of endurance athlete Stefan Schlegel during the Race Across America (RAAM). RAAM is billed as the world’s toughest bicycle race and runs a grueling course of 3,000 miles from Oceanside, CA to Annapolis, MD over a maximum of 12 days. According to Schlegel “with Palatinose I did not experience a single hunger pang during the race.” Palatinose, used as a powder, can be incorporated into many liquids. During the race. Schlegel’s diet consisted of between 12,000 and 14,000

50 APRIL-MAY 2015 BEVNET MAGAZINE

calories per day -- consumed via 3.9 to 6.6 gallons of liquid. Palatinose, derived from beet sugar is well tolerated and provides full, carbohydrate energy in the form of glucose in a sustained and balanced manner. Steviva Ingredients, Inc. is marketing

Erysweet+, a blend of all-natural, GMOfree stevia and erythritol to back sweeten fermented beverages such as hard ciders & malternatives. Twice as sweet as sugar and most other sweetening systems, Erysweet+ provides a sweet flavor profile without any off-notes. Perhaps most importantly for hard cider and malternative beverage manufacturers, Erysweet+ overcomes back sweetening challenges because it does not participate in a fermentation process, nor does it impart off flavors that can be commonplace among sugars & other sweeteners. Because Erysweet+ is all-natural, it lends itself well to a clean label statement. It also has a very low GI impact, making it far more tolerable than other sweeteners. Steviva has also developed Nectevia, a plant-based syrup designed to naturally sweeten foods and reduce calories. It begins with organic agave nectar extracted from blue agave, a succulent that grows in the American Southwest and Mexico. Nectevia’s ingredient statement is simply agave nectar and stevia, making it a clean, all-natural natural replacement for HFCS. Techno Food Ingredients USA, Inc. With

Sucralose playing a larger profile in the flavor enhancement drop business, Techno Food Ingredients recommends Techno Sucralose. Techno Food Ingredients has been one of the leading Sucralose manufacturers in the world for over ten years. Techno Sucralose is being utilized by many of the top beverage, pharmaceutical, nutritional and food companies in North America, Europe, Asia and South America, according to the manufacturer. Techno’s sweetener solution service also carries other high intensity sweetener such as Acesulfame (aka Ace-K) and natural sweetener Stevia. It provides comprehensive solutions to meet healthy, safe, functional and tasty needs. Captain Drake, LLC. With a hard focus on

the non-GMO field, Captain Drake is the first and only supplier of non-GMO Project


verified citric acid, sodium citrate, potassium citrate and organic cane sugar. Prinova, the exclusive North American distributor of PureCircle stevia sweetener products is proud to offer its newest stevia product. Sigma D is a proprietary blend of stevia glycosides, and is specially formulated for use in dairy, as well as beverage and other applications. Gold Coast Ingredients makes natural, organic and non-GMO beverage flavors that can help enhance/modify and match the taste of sugar. The company is a wholesale flavor manufacturer that adds sweeteners to flavors for customers who request sweeteners. The company’s certified flavor specialists formulate flavors that work in conjunction with various sweeteners to create the most natural sugar profile. GCI flavors can also mask bitterness, decrease the amount of time for your tongue to recognize sweetness and decrease the lingering characteristics of sweeteners, according to the supplier, including stevia, luo han or other ingredients. Celanese Food Ingredients is proud to

announce that its Qorus Sweetener System is gaining momentum on a global basis. Since its introduction in 2013, there have been a number of launches in beverages such as carbonated soft drinks, dairy based beverages, juice based drinks, and recently, alcoholic beverages. Due to the strong interest in the use of Qorus in alcoholic beverages, Celanese has developed a number of beverage prototypes including flavored alcoholic beverages, spirits, hard cider and hard lemonade. The success of Qorus in reducing sugar and calories in this category is driven by its great taste, excellent stability, and ease of use. CIRANDA, Inc. is introducing a line of Organic and Kosher certified crystallized grape sugars to the U.S. market. Crystal Dextrogrape, Crystal Fructogrape, and Crystal Sweetgrape are derived 100 percent from grapes and produced in one of the largest grape growing regions of Europe through a patented process. The sweet taste and neutral flavor of the sugars will enhance fruitbased and fruit-flavored beverages, sparkling

ciders and teas. Crystallized grape sugars are ready to blend for instant beverage packs and rehydration powders. Archer Daniels Midland Co. has launched

VivaSweet Sucralose, a great-tasting, zerocalorie sweetener suitable for use in virtually any food or beverage for the food ingredient market. VivaSweet blends well with other sweeteners and can be used for a variety of beverage, baking and dairy applications, among others. With zero calories, VivaSweet allows formulators to offer low-calorie foods and beverages that taste great and maintain the sweetness desired by consumers. Also, because of its stability under heat and over a broad range of pH conditions, VivaSweet is suitable for use in demanding food and beverage applications. PureCircle continues to pioneer the next generation of stevia with its first category specific solution for dairy, Sigma-D. Milks and yogurts now have a perfect solution that successfully delivers on sugar reduction and taste with a stevia product that that performs at parity to sugar on key attributes. Sigma-D is designed to unlock the dairy category, which has traditionally presented more complex challenges for formulators looking to reduce sugar while maintaining texture, indulgence and mouth feel. This new, high purity stevia solution has been developed through PureCircle’s well-established experimental design and predictive modelling capabilities. STAUBER, an ingredient and solutions

provider, offers two new products that can work together to improve sweetener intensity and taste. Aquamin is a vegetable-based multi-mineral which, when used in combination with Stevia FSE, a natural high intensity sweetner, works as a modulator to round out sweetness profiles and improve the sweetness perception. Stevia FSETM is a unique enzyme-treated organic Stevia extract with no bitter aftertaste delivering 95 percent glucosylsteviosides. Due to its intense natural sweetness, much smaller amounts are required to effectively sweeten most products. Unlike typical high Reb-A Stevias, this “full-spectrum extract” has a clean, smooth taste-profile without any bitterness.

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Conference Overview

EXPO WEST REVIEW Inside The Innovation Blender By BevNET Staff It was the time of the big remix at this year’s Expo West, as key ingredients like plant-based protein, turmeric, probiotics and matcha took center stage in a variety of products that had been growing as their own verticals, driven by sustained consumer demand for natural functionality. That’s not to say that verticals weren’t doubling down on their own core propositions. For Daniel Sullivan, for example, the evolution of his brand from Tumeric: Elixir of Life to Temple Turmeric, represents a deeper connection to its established positioning, that of “an awareness of the body as a temple.” Unveiled at the 2015 Natural Products Expo West, the rebrand was several months in the making. While there had been some discussion about maintaining turmeric in the new name, Sullivan noted the pragmatic importance of maintaining the ingredient in the branding as a way to “own the segment even further,” particularly as it relates to Internet-based queries about the ingredient. Just as important, however, is the company’s access to a proprietary varietal of Hawaiian organic turmeric, which it recently trademarked with the name “Oana.” As more brands use different functional attributes, for Temple Turmeric, Oana represents a critical point of difference from other brands that use and promote turmeric in their products. “The special thing about this variety is that it’s so rich in curcumin, which is the active phytochemical in turmeric,” Sullivan said. “And if you look at the world’s predominant supply chain of turmeric, it’s mostly coming out of Southeast Asia. It’s a yellow Indira varietal. Our Hawaiian Oana varietal has four times the curcumin, 20 times the beta carotene and then multiple times all the other vitamins and minerals. And on the palatability side, it’s really delicious.” 52 APRIL-MAY 2015 BEVNET MAGAZINE

Sullivan noted that “we’ve been with same farmers since day one,” and that his company has gone from sourcing 300 pounds of turmeric at its launch to 100,000 pounds annually. Temple Turmeric plans to incorporate more about the story of its turmeric variety in marketing initiatives as well as its work and relationship with Boulder Brands Investment Group, which took an equity position in the company last year.

It’s a gamble that probably felt pretty good for Boulder Brands, particularly as the market for cold-pressed juices has expanded to the point where simply using high pressure processing as a way to kill bacteria and preserve flavors is no longer enough of a differentiator for most brands: Expo West featured more than 20 exhibiting at the event. Amid that constant flow of new entrants to the category, cold-pressed brands leaned in on new and trendy ingredients, although they sometimes duplicated themselves. From broc-


coli leaf shots and avocado-infused smoothies to cashew milks and raw honey elixirs, companies showcased their latest wares in what became a veritable game of one-upmanship. However, it was clear that many cold-pressed brands are also attempting to distinguish themselves via price and package variety. It’s a strategy in which Suja is fully immersed, with the category leader tailoring its three product lines to meet the needs of consumers in a range of retail channels. The San Diego-based company now markets over 40 SKUs (with several more in the pipeline) ranging from three-bottle set of “one-day renewal” juices sold exclusively at Target, to a 59 oz. jug of its blends for sale in the club channel, to new everyday prices of $5.99 and $7.99 for varieties within its “Classic” 16 oz. products. Along the same lines, a number of emerging regional brands, including Lumi and Daily Greens, unveiled new products and smaller package sizes with formulations and price points that are more in line with mainstream juice offerings and clearly intended to introduce cold-pressed juice a new cadre of consumers. The rapid evolution of the category is remarkable, especially considering that only two years ago, pioneers like BluePrint and Suja positioned themselves largely as cleanses, with prices that topped out

at $12-13 per 16 oz. bottle. At Expo West, however, “cleanse” was barely (if at all) mentioned by exhibiting brands, most of which preferred to promote their products as “better-for-you” contributions to overall daily health or as meal replacement beverages. Meanwhile, a tier of value-priced offerings — most around $3.99 mark — has emerged and appears to be chipping away at natural channel shelf space for super-premium juice stalwarts Naked and Odwalla. Outside the juice category, cold-brewed coffee was also getting a lot of attention -- and, in fact, there were plenty of coffee blends being offered by erstwhile HPP juice brands. But only one, Califia Farms, has turned the corner from juice provider to coffee and alt-dairy vertical. Califia Farms made its biggest statement with the debut of its “Califia Café” platform, which promotes at-home preparation and customization of coffee drinks by way of its new cold-brew concentrate and almond milk products. Describing millennials as “leading the way now,” company CEO Greg Steltenpohl and his team are focused on an innovation and marketing strategy that targets consumers within the demographic set. Steltenpohl sees millennials not only as the primary consumers of Califia products, but the key to developing traction with older generations including Generation X and Baby Boomers.

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Conference Overview

“The relationship that a lot of Baby Boomers have with their millennial children, that whole transference around what’s cool and what’s good to drink or eat… is driven by the millennials, but adopted by the other two generations,” he said. The development of its new cold-brew coffee concentrate speaks directly to that approach, Steltenpohl noted. “The truth is that this product was adopted first already by the hip millennials, and we’re just trying to make it easier to access, give it a better price point and keep that quality at the same level that they will endorse,” Steltenpohl said. But if interest in dairy alternatives is soaring, there are still white spaces between the soy and the almonds. J.C. Hanley, the co-founder and COO of cold-pressed juice brand Forager, saw an opportunity to introduce a new multi-serve package for his company’s nut milk offerings via cashew and sees. While Hanley initially set his sights on an almond milk-centric line, a conversation with Errol Schweizer, the Global Executive Grocery Coordinator for Whole Foods Market, nudged him in the new direction. Taking into consideration California’s sustained drought and concerns about the amount of water used to grow almonds instate (an amount that is hardly out of step with most plants, however), Schweizer suggested an alternative plan for Forager. The result is a new line of 28 oz. cashew milk and seed milk products that recently launched in Whole Foods Northern California division and are coming soon to the retailer’s stores in the Southern Pacific and Rocky Mountain regions.

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The nut milks are, like all Forager products, high pressure processed (HPP) and made with organic ingredients. Sold at $6.99 per package, the beverages are value-priced in comparison to single-serve varieties on the market, and while the products are sold in refrigerated coolers, Hanley noted that they’re placed in a different part of the store that pasteurized nut milks from Califia and Silk, among other brands. The addition of the new products follows the launch of Forager’s new 40,000 sq. ft. facility in Indio, Calif. Despite only recently beginning production in the new space, Hanley said that the company has since added new equipment to keep supply in line with growing sales of Forager products. Hanley expects to see even greater demand for the brand’s juices and nut milks with a planned distribution expansion in the Northeast. There were more brands zigging while others zagged in the Expo’s top floor space, where a tour of its lower-priced, smaller booths easily lent insight into some of the bleeding-edge trends in the entrepreneurial beverage business, as well as key ingredients as well: drinks containing adaptogenic herbs, fat-rich coconut milk, high-end cocktail mixers, cold-brewed “coffee juice;” oddly sourced products like artichoke water and camel’s milk; alternative energy sources and strong-bodied products made from seeds, nuts, and chocolate. In all, there were hundreds of new beverage brands, re-branded products, new sub-lines and changed formulations at the Expo. And while HPP juices got their due, on-trend products like yogurt drinks, kombucha, and even a surprising new cola-flavored addition to National Beverages’ LaCroix line drew attention. There were also interesting new products from larger companies as well. PepsiCo’s Izze launched a three-sku line of sparkling waters for release into its own distribution network, for example – likely aimed at Hint, Spindrift and LaCroix, all of which are growing behind unsweetened essence waters. On the


coconut water front, Zico and Bolthouse Farms showed samples of products that deploy the product as much as an ingredient in a smoothie or a juice as it does as a standalone product. Mean-

while, Bai showed — but didn’t sample — a new “Anti-Water” to try to compete with Essentia and AquaHydrate. The hyper-charged environment for investment lent a crowded, almost frenzied feel to the event and the boozy nights that followed, particularly during Expo’s Friday opening, when many potential investors rushed across the floor to attempt to unearth potentially winning brands in need of growth capital. As one longtime investor explained, for an event that may have been spawned by the counterculture, he no longer felt out of place in a sport coat. Despite that environment the weekend passed without a major beverage transaction in the days immediately preceding or during Expo West. Juice maker Suja did convert a round of $23 million in private equity toward the end of 2014, but the most significant market-making event leading up to Expo West had come on the food side, with Hershey’s purchasing meat snack maker Krave Jerky for a reported $200 million. But event without a signature beverage transaction to fuel speculation and envy, the weeks leading up to Expo West saw several small transactions, as well as a mini-merger between organic juiceries Project Juice and Ritual Wellness. Still, the apparent ready availability of funding from the investor population certainly didn’t result in cash raining on the brands in attendance — with so many companies having entered the natural food and beverage space in recent years, there were plenty of horses to bet on. With brands often underestimating their working capital needs, no matter the excitement, there was, for the money players, lots of due diligence left to be done.

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Promo Parade Promotions, events & specials for the industry

Strongbow Hard Apple Ciders Partners With Sir Patrick Stewart For New Campaign Strongbow Hard Apple Ciders has launched its latest television commercial campaign starring legendary actor Sir Patrick Stewart and is a continuation of the brand's "Cider at Its Bestest" campaign.

The witty national campaign highlights why Strongbow over ice is the "bestest" cider experience possible, so much that even a respected celebrity the caliber of Sir Patrick Stewart isn't neces-

sary: Strongbow only needed ice and an award to promote its crisp, refreshing taste. The commercial will air in two versions with alternate endings; the first 15-second spot, titled "Award," be-

gins airing tonight, while an alternate ending 15-second spot will debut later this year. The launch will be supported through a mix of traditional and paid media, digital, PR and experiential marketing.

Celebrating Ruth's Chris Steak House’s Golden Anniversary with Veuve Clicquot Champagne Veuve Clicquot and Ruth’s Chris Steak House recently partnered to celebrate the first in a series of Golden Anniversary pairing dinners for the upscale restaurant chain with the “Veuve Clicquot Champagne Dinner.” The expertly paired, five-course dinner was hosted by Champagne experts at each Ruth’s Chris location to interact with guests and provide them with the history behind the featured selections and their pairings. The featured menu included Chilled Jumbo Shrimp with Honeycrisp Apple, Haricot Vert and Dijon Vinaigrette paired

56 APRIL-MAY 2015 BEVNET MAGAZINE

with Veuve Clicquot Yellow Label, Lobster Bisque en Croute paired with Veuve Clicquot Rosé, Filet Mignon with Black Truffle and Foie Gras Butter; served sizzling paired with Veuve Clicquot Vintage 2004 Accompaniments include: Pan Roasted Cremini Mushrooms and Garlic Mashed Potatoes, and a Pear and Almond Tart with Chamomile Tea Whipped Cream paired with Veuve Clicquot Demi-Sec. Guests that attended the dinner shared their individual experiences on social media sites using the hashtag #celebrateclicquot.


Promo Parade Organic Valley Urges Public to “Save the Bros”

Organic Valley, the nation’s largest cooperative of organic farmers and a leading organic brand, has announced its cause campaign to “Save the Bros” with its video that has gone viral and is making a difference to Bros everywhere.

The video has earned over 2 million views on YouTube and Facebook. The video was named Adweek’s best commercial of the week on Feburary 20 and was featured in Forbes, Mashable and Digiday, among other media outlets.

Humanaut, an award-winning agency based in Chattanooga, created the Save the Bros video to tap into “bro culture,” and encourage social sharing online. Integral to the Save the Bros campaign is the “Buy One, Bro One” call

to action, where concerned citizens can share the Save the Bros video and receive a coupon for Organic Valley Organic Fuel, a milk protein recovery shake, to mindfully share with a Bro in need of clean, organic protein.

We Are Blood, a Film by Mountain Dew Green Label Films and Brain Farm, to Premiere in August

Jagermeister Launches Heritage Campaign Titled “56 Parts. Best as One”

Mountain Dew Green Label Films in association with Brain Farm has announced that We Are Blood - a highly anticipated film skateboarding film - will premiere and be released worldwide in August, 2015. Directed by Ty Evans, the movie stars professional street skateboarder and Dew athlete Paul Rodriguez as he and other top skateboarders travel the world pushing the limits of what's possible on a board and celebrating the unifying passion and unconditional bond created by the simple act of skateboarding. The film was filmed in international skateboarding hotspots including Spain and China, as well as on a classic road trip across the United States. The team visited a newer pin on the skateboard-

Jagermeister, the German liqueur imported by Sidney Frank Importing Company, Inc., has launched a new marketing campaign called "56 Parts. Best as One.” The campaign is intended to focus on Jagermeister's rich heritage, 56 premium ingredients sourced from all over the world and the brand's complex production process in a unique and unexpected way. The campaign features three unique illustrations that stem from the brand's pillars: heritage, ingredients and process were then built into massive wooden works-of-art measuring over 6 feet in length,

ing map, stopping in Dubai thanks to the support of film sponsor XDubai. The film was shot in Ultra HD 4K using state-of-the-art camera systems such as the Shotover F1, Phantom Flex 4K and RED Dragon to creatively capture staggering cinematography and unique perspectives for a cutting-edge, progressive skateboarding experience. We Are Blood will release in Ultra HD 4K and HD on digital and other video on demand and streaming platforms including iTunes, Amazon Instant Play and in MGO. Following the official world premiere, the film will be released on DVD and Blu-ray globally, as well as nationwide in Target, Zumiez and other core skate shops.

58 APRIL-MAY 2015 BEVNET MAGAZINE

inspired by the large oak barrels in which each batch of Jagermeister is aged for one year. Each art piece is meticulously constructed from 56 separate, intricately cut, carved, etched, sanded, lacquered, varnished and hand-painted wooden parts that are fashioned together like a puzzle, just as the complex ingredients of Jagermeister come together to create a perfectly balanced taste and one of the top selling premium spirits brands in the world. "56 Parts. Best as One" launched nationwide in 12 metropolitan cities, with out-of-home, painted wallscapes, rich media, print, mobile and social media.


BevNET Magazine April/May 2015  

The April/May 2015 issue of BevNET Magazine.

BevNET Magazine April/May 2015  

The April/May 2015 issue of BevNET Magazine.