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June 4, 2013

Facing criticism on many fronts, energy drink companies may be drawing fire – but they’re feeling little heat.

FLIPPING THE SWITCH SPORTS DRINKS FROM SUPPLEMENT SHIFT INGREDIENTS TO BEVERAGE AND STRATEGIES

PRESSING BUSINESS FOR CRAFT CIDERS


WINGS FOR EVERY TASTE.

THE TASTE OF CRANBERRY, LIME, BLUEBERRY. THE EFFECT OF RED BULL.


JUNE 2013 M

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Columns 4 First Drop Too hot for soda 6 Publishers Toast Spring cleaning 26 Gerry’s Insights Cold coffee disruption heats up

Departments 8 Bevscape First Beverage Ventures launches 16 New Products Vblast blasts off 22 Channel Check About a cool, refreshing drink 28 Brewbound Brewbound Session wrapup 64 Promo Parade Hop chefs

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Contents • Volume

36

11 • No. 4

58

Features

On the Cover

30 The Experts Flipping the switch: From supplement to beverage

36 Shrugging off Negativity Energy Drinks Slog through the Mud. with energy drink brand news

48 Miss Muffet Broadens her Palate Protein’s new forms with protein drink brand news 52 Sports Drinks Shift ingredients, marketing strategies with sports drink brand news 58 Cider Craft Pressing business for cider

Conference Coverage

After FDA comes to dinner, little appetite for wired food

June 4, 2013

Facing criticism on many fronts, energy drink companies may be drawing fire – but they’re feeling little heat.

FLIPPING THE SWITCH SPORTS DRINKS FROM SUPPLEMENT SHIFT INGREDIENTS TO BEVERAGE AND STRATEGIES

PRESSING BUSINESS FOR CRAFT CIDERS

62 Previews New York Fancy Food Show & IFT

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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By Jeffrey Klineman

Too Hot for Soda In the wake of the great goat devastation wrought by a Mountain Dew advertisement directed by rapper Tyler, the Creator, for the citrus soda, the media was rife with stories about ways that brands that seek an “urban edge” often fall off that edge into the chasm of unintended consequences. So it quickly became tough to find Mountain Dew’s series of Tyler’s three “Felicia the Goat” ads, the last of which featured a police lineup of black street toughs alongside a street-talking goat who warns a beat-up waitress on the other side of the glass that “snitches get stitches,” among other things. Outcry spread at internet speed – particularly following criticism from one professor and writer in particular, Syracuse University’s Boyce Watkins, who called it “arguably the most racist commercial in history.” Under pressure, Pepsi pulled the ads and started tweeting mea culpas. There are plenty of reasons the ad was polarizing: it featured what could be perceived as negative stereotypes of young black men behind the lineup mirror being potentially fingered by a bruised white woman. The goat’s language evoked another controversial episode, a “Stop Snitching” video that featured basketball star Carmelo Anthony cavorting with a Baltimore drug dealer, one that had itself touched off another debate about race and law enforcement. But Felicia mostly met with bad timing: the ads hit at the same time as a much more controversial – and serious – situation involving the rapper Lil Wayne, who had a valuable endorsement deal with Mountain Dew. In a remix of a song called “Karate Chop,” released months earlier, Lil Wayne had rapped that he would make a woman’s private parts resemble Emmett Till, a black 14-year-old who was beaten to death in Mississippi in 1955 for whistling at a white woman. Life Magazine photos of Till’s disfigured face in an open casket became an

4 BEVNET MAGAZINE JUNE 2013

early touchpoint for the modern civil rights movement; Lil Wayne’s callous comparison justifiably angered the Till family, eventually forcing an apology from the rapper, but not before the family drew attention to the issue by cranking up public pressure on PepsiCo. After the family deemed Lil Wayne’s apology insufficient, PepsiCo justifiably ended the relationship. Here’s the thing, though: there’s a big difference between satire and stupid, and it’s apparent both through the content, the context, and the reaction of the artists. Tyler actually produced a series of absurdly satiric commercials that was completely in line with his artistic and comedic vision, one that’s been on display from the start of his career and that of his troupe, Odd Future Wolf Gang Kill Them All. Odd Future, after all, deployed its own edgy, profane, subversive and precociously artistic videos as a launching pad, and the commercial in question is no more racially offensive than a skit from, say, Chappelle Show. The group of toughs in the lineup is comprised of members of Odd Future, and there’s a social lesson here – it’s the goat who committed the crime, not the young black men who are lined up alongside him. The ad shows a common situation – the police lineup – turned sideways, which is Tyler’s view of the world. Before the outcry, in fact, industry publication Adweek had praised the first ad in the series. Even more interesting is the context of Tyler’s hiring: it’s a lot more exciting that someone wanted to see if he could bring his sense of humor to bear behind the camera than it is for the ersatz corporate promotion of a Justin Timberlake or an Alicia Keys to “Creative Director” of Bud Light Platinum or Blackberry. As for Lil Wayne, however, there was no holding a satirical mirror up to our sensibilities. The rap was misogynistic and, yes, racist in its use of an inhumane tragedy as its vehicle for that misogyny. It wasn’t cutting-edge, it just cut.

And the situation created artistic blowback, as well, pulling Tyler’s ads out of their original context and into a much less satire-friendly environment. Pepsi was lambasted for the commercials, and the assessment was that it had overreached in its attempts to appeal to a multicultural audience while also underachieving by failing to hire an advertising agency that might specialize in that group. Maybe those agencies could have told Pepsi that Tyler’s ideas were too hot for the purpose of selling soda. But they might not have: Frank Cooper, who is Pepsi’s global director of marketing, has worked for several music and entertainment companies, including Def Jam, and he’s made it a priority for the company to link up with musicians. He’s also a Harvard Law grad and a smart guy – he had to pick up what the Creator was putting down, and had to have thought that the message wasn’t out of alignment with the brand. Misogynistic imagery aside – and yes, it is there in Tyler’s commercial, in the form of the beaten-up waitress on the other side of the glass, but again, there’s a more complicated storyline here – Cooper and Pepsi should get the benefit of the doubt. What Tyler did may have been a misfire, but it didn’t miss by much, it wasn’t meant to offend, and the misfire was, in a sense, due to a foul-smelling crosswind. Meanwhile, what Lil Wayne did wasn’t hot at all: It was just plain cold, and he ended up where he deserved to be, on the wrong side of history. Pepsi should be held to account for its role in helping to further his career. I wanted to discuss this more, and tried to reach out to Cooper via Pepsi contacts but haven’t heard back yet. In mid-May it was announced that he planned to meet with the Till family and with the Rev. Al Sharpton concerning the Lil Wayne issue; with some luck there will be a way for Pepsi to do good here. But the company shouldn’t stop trying to engage relevant cultural voices in its marketing practices – to do so would create an even worse kind of silence.


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MAGAZINE

By Barry J. Nathanson

www.bevnet.com/magazine

Spring Cleaning

Barry J. Nathanson PUBLISHER

The temperature has hit 80-plus

jklineman@bevnet.com

in New York today. There’s no excuse – it’s time for my annual office cleaning column, where I look around my beverage collection and mine it for insight. This year it will be especially poignant (for me, at least) as in July I’m moving to a new office a few blocks from my present digs. I have to clear out as much as I can before the move, and that makes for sober reflection of the huge collection of beverages I’ve amassed over the course of 21 years in the industry. Why do I like to keep them around? They remind me of what constitutes a winner, and the fine line between success and failure. We industry pundits like to think that we know all, but that is not really the case. So, as I dust off my shelves, I’ll talk about some of the things that I find on this trip down memory lane. Sometimes, you know a flop from the start. One of the earliest drinks that I knew was destined for the scrap heap was Virgin Cola and that whole line of soft drinks. They made no sense, had no real discerning taste, and the packaging was uninspiring. At kickoff, they parked a tank in Times Square – a fine metaphor for where the brand was headed. The Trek line from Leading Brands was a little different – I thought it had a chance. It had good taste, nice functionality, and those carabiners. Little did I realize that young consumers would only want the carabiners: they stripped them from the bottles, leaving the drinks to gather dust on the shelves. More support in the marketplace might have lent it more security. 6 BEVNET MAGAZINE JUNE 2013

I could go chapter and verse about the dozens and dozens of energy drinks that were DOA due to their names, which didn’t exactly indicate unique value or selling positions: You need a reason for being, not a name like Pissed Off, Cocaine, Mercury,Radioactive, Spider, or Talon. Hansen’s had some well-intentioned brands, working with many Native American tribes – but they were shot down by a bunch of do-gooders who felt the tribes were being exploited. I say it was just the opposite, an opportunity to create revenue and pride inside great packaging. There were brands with the wrong packaging and names. Cricket Cola tasted great but made no sense, and the Hanks’ Infusions and Revolution 3D Multi Dimensional beverages in slim cans were destined to fail due to their incongruity. And what did “Multi Dimensional” mean anyway? There was no defense for Defense, Purple made distributors and investors blue, and the only pop to Water Pop was the candy sucker on top. On the other side, I commend Sparkling Ice, Starbucks, and Big Red for sticking to their guns and persevering. I hope that Jones makes it back because I’ve always loved their creativity, packaging and marketing savvy, and their holiday packs line my walls, as do the Evian limited edition collectable bottles. I could go on and on, but it’s easier to invite all of you, when you’re in New York, to give me a call, to drop by the new place, so I can really show off the brands I’ve come to love and hate, minus the dust.

bnathanson@bevnet.com

Jeffrey Klineman EDITOR-IN-CHIEF Ray Latif MANAGING EDITOR rlatif@bevnet.com

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BEVSCAPE

The latest news on the brands you sell

BY THE NUMBERS U.S. Bottled Water Sales Totaled $11.8 Billion in 2012

Sugar Substitute Market Projected to be Worth $13.7 Billion by 2018

A recent report from the International Bottled Water Association (IBWA) revealed that in 2012, overall consumption of bottled water jumped by 6.2 percent to 9.67 billion gallons, while sales increased by 6.7 percent, totaling $11.8 billion. The statistics were compiled by beverage consulting firm Beverage Marketing Corporation (BMC). With every American consumer drinking an average of 30.8 gallons of bottled water last year, the report stated that per-capita consumption of bottled water was up 5.3 percent in 2012, and that the beverage increased in absolute volume more than any other beverage category in the U.S. “Bottled water added more gallons to its per-person consumption rate in ten years than either ready-to-drink tea or sports beverages reached by the end of that period,” said Gary Hemphill, the managing director of information services for BMC. Based on the numbers, and lifestyle shifts toward health and wellness, Hemphill said that bottled water is poised for future increases in per capita consumption. “All signs point to U.S. consumers’ already displayed thirst for bottled water continuing in the years ahead,” Hemphill said. “Changes in per capita consumption indicate persistent interest in a product that consumers embrace as a healthful alternative to other beverages.”

MarketsandMarkets, a market research and consulting firm, projects that by 2018, the global market for sugar substitutes will be worth $13.8 billion. Based on increasing awareness, consumption and demand for low-calorie sweeteners including stevia, sorbitol, tagatose, aspartame, sucralose and xylitol, MarketsandMarkets expects the sugar substitute market to achieve a compound annual growth rate (CAGR) of 4.5 percent over the next five years. Estimated to be worth $10.5 billion in 2012, the sugar substitute market has benefitted from rising use of low-calorie sugar alternatives in many consumer products, and in particular, food and beverages, according to MarketsandMarkets. In the North American market, which accounts for 49 percent of the market share in 2012, consumers are increasingly shifting toward healthier consumption and lifestyles, and demand for low caloric foods and low intensity sweeteners is projected to grow by 3.9 percent from 2013 to 2018. While North America is expected to continue leading the world in consumption of sugar substitutes, because of the increasing impact for demand of convenience health and functional foods and beverages MarketsandMarkets expects the Asian Pacific region (APAC) to drive the growth of the industry over the next few years. China and India are leading demand for sugar substitutes in the region due to their booming economies, which are resulting in changing lifestyles and a focus on alternate sources of sugar in convenience products.

RESEARCH New Report Ties Ginkgo to Cancer Commonly sold as a dietary supplement and frequently used as an additive in a range of beverages, Ginkgo biloba has been found to cause cancer in mice and rats, according to a twoyear study by researchers at the National Toxicology Program (NTP), an interagency program tied to the U.S. Department of Health and Human Services and the National Institutes of Health. Over the course of the study, NTP researchers gave male and female rats oral dosages of Ginkgo biloba extract five times a week.The study concluded that Ginkgo caused thyroid cancer in male and female rats and male mice and liver cancer in male and female mice. Following the release of the findings, the ingredient, which is often marketed for having brain-boosting functionality, was downgraded from “safe” to “avoid” by consumer advocacy group The Center for Science in the Public Interest (CSPI). “Ginkgo has been used in recent years to let companies pre-

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tend that supplements or energy drinks with it confer some sort of benefit for memory or concentration,” said CSPI executive director Michael F. Jacobson. “The evidence for those claims has been dubious, at best. The pretend benefits are now outweighed by the real risk of harm.” A number of industry and trade groups quickly disputed the findings of report, claiming that the study was significantly flawed. In a statement, the American Herbal Products Association (AHPA) noted that that extract used in the study was not chemically similar to that used in products commonly sold in the U.S. The American Botanical Council (ABC), which formed a committee of medicinal plant science and toxicology experts to counter that claims of a 2012 draft report of the study, indicated that the dosage levels administered to the rats and mice was up to 55-108 times higher than levels of ginkgo extract that are “normally ingested” by consumers (120-240 milligrams per day).


DISTRIBUTION

ADVERTISING

Golazo Triples Distribution Throughout West Coast

Zico Puts Some 'Oomph' Into National Ad Campaign

Less than 18 months since the brand’s debut, Golazo, which markets a line of soccer-inspired energy and sports drinks, has more than tripled the number of retail locations where its products are sold. The company today announced that Golozo drinks will be sold in 1,600 stores in eight states throughout the West Coast, including all Safeway and Whole Foods locations in the region. “Tripling our store count builds upon the sales success we are experiencing in the natural and general grocery channels throughout the Northwest,” Richard Tait, co-founder, Golazo said in a statement. “This recent expansion gives us access to some of the largest beverage markets in the country and the opportunity to put a Golazo can or bottle in the hands of players and fans everywhere from Fairbanks to San Diego.” Having achieved an established foothold on the West Coast, Golozo, which Tait has described as “super methodical” in approaching new markets, remains focused on a distribution strategy based on three areas of focus: the Latino community, the natural beverage channel, and, of course, soccer. In addition to marketing efforts that target the soccer community, Golozo recently partnered with two professional women’s soccer teams in the Pacific Northwest.

Under the wing of the Coca Cola Co., its majority stakeholder as of about one year ago, coconut water company Zico has launched a national advertising campaign, according to Ad Week. Zico will spend between $2 million and $5 million on the campaign, which was produced by Butler, Shine, Stern & Partners, an ad agency based in Sausalito, Calif., and will include a series of television, online and outdoor advertisements in major markets including New York, Los Angeles, San Francisco and Atlanta. The ad campaign centers around the slogan “put some oomph in it” as a way to promote Zico’s energizing qualities. A sampling of the TV ads include a baseball coach wearing too-tight yoga pants, a mud-covered man, a spoon-waving grandmother and a fitness-centric woman with a European accent.

AQUAhydrate Finalizes Distribution Deals with Kroger, Safeway Shortly before the departure of CEO John Cochran for Ole Smoky Tennessee Moonshine, AQUAhydrate announced that it has finalized distribution deals with the nation’s two largest grocery retailers, Kroger and Safeway. The agreements will bring the high alkaline and enhanced water brand into stores owned by the two chains and their subsidiaries in regions across the country. “It’s exciting to see the support of two of the nation’s largest grocery retailers in our endeavors to reach more people with a genuine wellness product,” Cochran said. While AQUAhydrate has been distributed nationally in GNC stores since November, the deals with Kroger and Safeway will dramatically increase the retail presence and mainstream availability of the water. Notably, the agreement with Kroger comes in the midst of plans to bolster its offering of emerging and better-for-you brands, with a particular focus on natural and organic products.

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Coca–Cola Looks to Mobile Gaming in New Marketing Campaign Coca-Cola also launched its first all-digital advertising campaign. Titled “The AHH Effect” and created by Wieden+Kennedy, a global advertising agency, the campaign focuses on digital gaming experiences for adolescent consumers. The games, which will be accessible on both mobile devices and computers, will include a variety of soda-inspired titles such as “Guide the Bubble,” “Happy Dance,” “Bottle Rocket” and “Ice Toss,” in which one click flings a piece of ice toward a constantly moving cup of Coke. “This campaign is going to be a living experiment in true trial and error,” said Pio Schunker, the senior vice president of integrated marketing communications. The campaign is a reaction to Coke’s belief that most adolescents turn to their phones if they’re not watching television. And while the games can be accessed on computers, Coke’s new marketing plan is grounded in the idea of capturing the attention of mobile users. “All our experiences are designed to be inherently social and inherently sharable,” Schunker said. Coke will also encourage adolescent consumers to create their own digital gaming experiences, which will then be thrown into a larger pool of entries. Coke will eventually select 61 digital gaming experiences as part of the campaign, and give each experience its own URL by adding an “H.” The 43rd experience, for example, will have 43 Hs in the URL. The selections will be constantly updated.


FINANCE New First Beverage Fund Adds VEB as Investor Growing beverage compaAccording to First, the nies have a new option for group is looking at “relaraising investment cash, and tively early-stage” beverage the Coca-Cola Co. has a new brands that already show way to get involved in deterstrong consumer demand mining their future, taking a and is willing to make inlimited partnership stake in vestment sooner than would a new fund focused on nonmost institutional firms. alcoholic beverage brands. First also stated that the First Beverage Ventures, fund would be making “a the private equity arm of couple deals a year” over the beverage investment and next two to three years with advisory company First Bevopportunity for additional Tom First (left) and Bill Anderson (right) of First Beverage Group. erage Group, launched the financial investment. new fund with Coke’s Venturing & Emerging Brands (VEB) group The fund expects to make one or two deal announcements in as a limited partner – along with several other investors – to invest the next three to four months, according to Bill Anderson, the in small and emerging beverage brands. Created as a “pledge CEO and founder of First Beverage Group. fund,” each partner has agreed to put up a specific amount of cash Anderson said in a statement that “through this fund we will be inand has the option to invest in any deal brought to the table. vesting in small, high-growth and highly differentiated brands which Tom First, managing partner of First Beverage Ventures, told are now in the sweet-spot of consumer demand and retailer focus.” BevNET that investments would range from $2-6 million with Shortly after launching, the fund also hired former Glaceau $5 million likely being the average size of a single investment. and Nantucket Nectars executive Jason Camillos.

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LEGISLATION Federal Legislators Introduce Mandatory GMO Labeling Bill With a stated purpose of establishing “a consisted labels for genetically modified foods. In 1992, sistent and enforceable standard for labeling the FDA issued a policy statement indicating that of foods produced using genetic engineering,” it does not consider genetically engineered foods to legislators in the U.S. House of Representatives be materially different from non-GMO foods. and U.S. Senate have introduced a new bill that “Americans have the right to know what is would require mandatory labeling of genetically in the food they eat so they can make the best modified (GMO) foods and ingredients. choices for their families,” Sen. Boxer said in a The bill, known as the “Genetically Engineered statement. “This legislation is supported by a Food Right-to-Know Act,” was introduced by Sen. broad coalition of consumer groups, businesses, Barbara Boxer (D-Calif.) and Rep. Peter DeFazio farmers and fishermen and parents who all agree (D-Ore.), and would amend the Federal Food, that consumers deserve more – not less – inforDrug, and Cosmetic Act to “require that genetically mation about the food they buy.” engineered food and foods that contains genetically The bill notes that more than 60 countries, inengineered ingredients be labeled accordingly.” cluding the U.K. and all other countries in the E.U., Sen. Barbara Boxer (D-Calif.) Sponsors of the bill state that while the U.S. have laws mandating disclosure of GMO ingredients. Food and Drug Administration (FDA) requires labeling of more In November, a similar bill in California known as Proposition than 3,000 ingredients, additives and processes, the agency has re37 was voted on and rejected by state residents.

NEW HIRES Sweat Starts New Gig at In Zone Back home in Atlanta, former FRS CEO Carl Sweat has joined kids’ beverage outfit In Zone Brands as its Chief Marketing and Commercial Officer. Sweat, who has over 25 years of experience in the beverage industry and held Carl Sweat, Chief Marketing and Commercial senior leadership roles Officer, In Zone Brands at Starbucks and the Coca-Cola Co., will handle “strategic leadership and execution of In Zone’s branding, marketing, innovation and sales efforts,” according to a statement from In Zone. Sweat’s new role brings him back to Atlanta after three rocky years with N. Calif-based FRS. Criticized for a number of bold, but ultimately unsuccessful, sales strategies and multi-million dollar marketing expenses, Sweat left the company in January in what was called “a mutual separation.” At In Zone, which markets TummyTickler and Bellywashers beverage brands, Sweat is expected to extend the company’s foray into health and wellness drinks. In Zone recently launched its first organic apple juice as part of its TummyTickler Tots line, and company CEO Jim Scott noted that Sweat will be “instrumental in fueling our growth and product innovation.” “Carl’s exceptional background combines marketing, general management leadership and health and wellness beverage experience, and he has the insight to help shape the future for In Zone,” Scott said.

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INNOVATION PepsiCo Tests New Flavor-Infusing Fountain Dispenser Freestyle, meet “Touch Tower.” Four years after the launch of Coca-Cola’s Freestyle, an innovative soda fountain dispenser that allows consumers to create customized drinks, PepsiCo will begin testing “Touch Tower,” a new machine that gives people the ability to add a variety of flavors to a range of its soda brands, according to the Associated Press. News of the test launch was first reported by industry publication Beverage Digest. Unlike the vending machine-sized Freestyle, “Touch Tower” appears to be small enough to sit atop a counter and is designed for restaurants and other on-premise retailers of fountain soda that don’t have a lot of space for a large dispensing unit. Fitted with a tablet-like screen, “Touch Tower” enables consumers to add up to four flavor shots – lemon, cherry, strawberry or vanilla – to eight varieties of PepsiCo –owned drink brands, including Pepsi and Mountain Dew. PepsiCo, which has approximately 30 percent of the overall fountain soda business in the U.S., will initiate a series of test launch of “Touch Tower” in five Denver-area locations of Garbanzo Mediterranean Grill. If successful, it’s likely that PepsiCo will broaden availability of the machines to other chain restaurants where its products are sold, including Taco Bell, Pizza Hut and Kentucky Fried Chicken.


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BEER – TOP 25 GROWTH

BEER – INNOVATION

Dogfish Head on Pace For 202,000 Barrels in 2013

Crown Beverage Packaging Launches Topless Beer Can

While the large domestic beer companies blamed sluggish first quarter sales on bad weather, Dogfish Head, the country’s 13th largest craft brewery saw positive volume gains, regardless of the climate. In a letter sent to the company’s distributors in May, Adam Lambert, the company’s vice president of sales, said its shipments were up 13 percent while depletions were up 15 percent. The Delaware-based craft brewery said it is on pace to brew and sell 202,000 barrels this year, up from 172,617 in 2012. “In a very tough first quarter for our industry, we are grateful that you spent the time and energy on making sure we hit our business objectives,” Lambert wrote. Data through March 31 from Symphony IRI also indicates strong growth for the company. Total Dogfish Head brands grew 29 percent in volume and 31 percent in dollars on “large base,” Lambert reported. 60 Minute IPA grew 24 percent, while 90 Minute IPA – the company’s fastest growing brand – grew 42 percent, even with an average case price of $63.30. If those trends continue, 90 Minute will grow into the company’s number one dollar-performing brand in the grocery channel by the end of the year. The company sells 49 percent of its beer in six “close-tohome” states (Delaware, New Jersey, Maryland, Virginia, Pennsylvania, and New York).

The “topless beer can” was unveiled by Crown Beverage Packaging at the 2013 Craft Brewers Conference (CBC) in Washington D.C. The new technology does highlight some of the interesting ideas craft brewers are exploring to help their brands stand out in a crowded category. The official trademarked name for the technology is 360 End, a removable can lid originally developed by Crown Holdings in 2010 for the FIFA World Cup. Brian Thiel, a regional sales manager for the company said one major benefit of the package is a reduction of waste at large events. Craft brewers love the technology for a much more sensory reason. “Craft brewers spend a considerable amount of time creating recipes and choosing the types of aroma hopes that go into a beer,” said Thiel. “Now the consumer has their full attention and their nose is basically right in the drink.” The first craft beer company to use the technology is Pottstown, Pa.-based Sly Fox Brewing Company, but Thiel said Crown received a lot of attention from CBC attendees and this week, hundreds of 360 End samples are being mailed to craft brewers across the country. He also said the 360 End costs roughly 2.5 times more than the company’s current “SuperEnd.”

BEER – DISTRIBUTION Manhattan Beer Distributors Picks Up Shiner, Schlafly and Pyramid Brands Manhattan Beer Distributors, one of the country’s largest beer wholesalers, confirmed to Brewbound.com that it has signed distribution agreements with three top 50 craft beer brands: Shiner, Schlafly and Pyramid. The Bronx, NY-based wholesaler will launch the Shiner brand of beers — owned by The Gambrinus Company — throughout New York City. Manhattan Beer began selling Schlafly beers in New York City on May 15 and Pyramid beers on Long Island and in the Hudson Valley at the end of May.

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The new additions should strengthen a portfolio of craft offerings that includes large brands like Boston Beer Company and F.X. Matt, as well as coveted craft brands like Avery Brewing and Captain Lawrence. “We are better suited for larger craft brands,” said Robert Mitchell, Manhattan Beer’s General Sales Manager. “That’s not

to say that we can’t do smaller brands — because we have plenty of those — but few distributors in this market would have the money, desire and resources to bring in the initial volume for brands like Shiner.” Manhattan Beer sold about 1.5 million cases of craft beer in 2012, Mitchell said. With the addition of Shiner, Schlafly and Pyramid brands, the company projects that its craft sales will surpass 2 million cases in 2013. Manhattan Beer also sells MillerCoors and Grupo Modelo products, which helps to bring its overall case count to about 35 million, Mitchell said.


BEER – EXPANSION

BEER – NEW HIRES

Bell's Brewery to Open New Facility in Michigan's Upper Peninsula

Stone SVP Steps Down, Announces New Director of National Sales

Bell’s Brewery will continue to fortify its brand with a new facility in Michigan’s Upper Peninsula. The Kalamazoo-based brewery recently announced its purchase of a 3.16 acre lot in Escanaba, Mich., a small city that sits on the cusp of Little Bay de Noc. The Escanaba City Council approved the purchase, which will function as the home of Upper Hand Brewery, a new division of Bell’s Brewery that will brew and bottle a variety of beers for distribution across Michigan’s “U.P.” and adjacent northern states. The purchase is part of a company-wide $15 million investment and the new brewery will employ five people. The construction, which will be handled by local contractors and suppliers, and equipment will cost about $2.5 million and will be completed in about 18 months. New beer recipes have already been brewed at the Kalamazoo brewery and served at the adjacent Bell’s Eccentric Café. After visiting the Escanaba area in March, Bell said that he was drawn by its central location and the cooperation from local government and business leaders. Vicki Schwab, the Delta County Economic Development director, started providing Bell with information about the community and possible building sites last year.

A key member of Stone Brewing Co. has stepped down after 16 years with the company. Arlan Arnsten, Stone’s senior vice president of sales, announced that he was leaving the company “to pursue interests outside of the craft beer industry.” Coinciding with his departure, Arnsten announced the promotion of Jason Armstrong to director of national sales, a new position at Stone. In his five years with Stone, Armstrong previously served as a regional brewery representative in Texas and a regional sales manager in Louisiana, Missouri, Iowa, Minnesota and Illinois. As the director of national sales, he will oversee all of Stone’s sales to distributors throughout the continental United States. All of Stone’s regional sales managers and regional brewery representatives will report to him.

JUNE 2013 BEVNET MAGAZINE 15


NEW PRODUCTS

The newest options for cooler and shelf

CSDs Jones Soda Co., has launched Natural Jones Soda, a line of all-natural sodas sweetened with a blend of pure cane sugar, organic agave syrup and stevia. The line comes in four fruit flavors: Green Apple, Orange Mango, Cherry and Lemon Lime. The beverages are packaged in 12 oz. glass bottles and each contains 30 calories, five grams of fiber and five grams of sugar. Natural Jones Soda is sold in select Whole Foods stores in Northern California as well as most Albertsons stores in Southern California. The suggested retail price of a 4-pack is $5.49. For more information, please call Jones at (206) 436-8711. The Double Cola Company has reintroduced Caffeine Free Ski to the market. Caffeine Free Ski is made with real fruit juices, and along with other products in the Ski line of drinks, features new packaging graphics. The soft drink is now available in stores and is line-priced with other Ski products. For more information, please call (423) 267-5691 x 200.

Coffee Cold Stone Creamery and Matrix Liquid Manufacturing have introduced Cold Stone Iced Coffee. The new ready-to-drink iced coffee line is made with select dark coffee, low fat milk and all-natural flavors. The brand comes in three varieties - Mocha, Vanilla and Coffee – and has 180 calories per serving. Cold Stone Iced Coffee is packaged in both 9.5 oz. and 13.7 oz. shelf stable bottles. The 9.5 oz. size has a suggested retail price of $1.99, while the 13.7 oz. size retails for $2.89. For more information, please call Matrix Liquid at (630) 333-7035.

Water Aonni, a super-premium bottled water from Chile, is now available in the U.S. The water is bottled from a natural source by the border of the Strait of Magellan, in an area of 1,200 acres that is protected from any industrial or human intervention. The source of water springs from a natural aquifer formed by glacifluvial soils that have been linked to sedimentary and erosive processes for the last 10,000 years. It is collected at the spring and piped to the bottling facility using only gravity (no mechanical device are employed). Characterized by its slightly sweet, smooth to the palate, low mineral content and with a neutral pH, the mineral water reflects a 16 BEVNET MAGAZINE JUNE 2013

clean, light and pure taste, according to the company. Aonni is packaged in a custom swing top bottle and is distributed in select markets around the country. The water has a suggested retail price of $9.99 for a 750 mL bottle. For more information, please call European Imports, Ltd at (773) 292-3670.

Juice Drinks Sunny Delight Beverages Co. has launched Veryfine CHILL, a value-priced line of fruit-flavored drinks. CHILL contains 100 calories per 23 oz. can, and has 100 percent of the Recommended Daily Intake (RDI) of vitamin C. The line comes in four flavors: Orangeade, Fruit Punch, Berry Lemonade and Strawberry Kiwi. The products are prepriced for $1 and are sold at convenience stores nationwide. For more information, please call Sunny Delight at (513) 483-3377.

Energy Drinks Aquarena Beverage has launched Fuga, a new energy drink made with a range of natural ingredients. The product is infused with Yerba Mate, Prickly Pear Cactus, Ginkgo Biloba, Guarana, Milk Thistle and Acai, as well as essential vitamins and amino acids. Available in regular and sugar-free varieties, Fuga is packaged in 12 oz. slim cans and available at select retailers in Florida, Texas, California, New Mexico and Arizona. For more information, please call Aquarena at (855) 854-3842. Golazo has extended its All-Natural Sports Energy product line to include two sugar-free varieties. The new products, which are sweetened with stevia and contain 10 calories per 12 oz. can, come in the Mandarin and Jamaica flavors. As with all Golazo products, the new flavors are made with all-natural, non-GMO ingredients. The drinks have a suggested retail price of $1.99-$2.19. For more information, please call Golazo at (206) 682-4625.

Powders Navitas Naturals has launched two new coconut water powders: Chocolate Coconut Water Powder and Goldenberry Coconut Water Powder. Each serving of the new powders contains five electrolytes to support rapid hydration: sodium, magnesium, calcium, potassium and phosphorus. Each product is also fortified with camu camu, a superfruit from the Amazon, to boost the vitamin C


content in each. The powders are raw, certified organic, gluten-free, non-GMO Project Verified and vegan. Packaged in a 5.8 oz. bag, the powders have a suggested retail price of $19.99, and are dictributed at hundreds of stores in North America including Whole Foods Markets, Wegmans, Sprouts and HEB. For more information, please contact Navitas Naturals at (415) 883-8116.

Functional Drinks New York Spring Water Inc. has launched three new products to its VBlast line: VBlast Refresh, VBlast Antioxidant, and VBlast Immunity. The line extensions are each proprietary formulas housed in the company’s patented twist cap. VBlast Refresh has a dragonfruit flavor and is made with choline, vitamin E, and zinc and is designed to help body cells regenerate and recover. VBlast Antioxidant contains grape seed extract, vitamin C, vitamin E, and tea polyphenols and is designed to help consumers neutralize and fight the effect of free radical damage. The product has a pomegranate blueberry flavor. VBlast Immunity is made with Echinacea, vitamin C, elderberry extract, and zinc gluconate. The tropical punch-flavored blend is designed to boost immunity. Each 16.9 oz. bottle of VBlast has a suggested retail price of $1.69. The products are sold in a variety of grocery and health stores throughout the U.S. For information, please all New York Spring Water at (845) 254-5400. So Real has extended its line of all-natural functional drinks with two new coconut water-infused varieties. Formulated with vitamins, electrolytes, antioxidants, calcium and dietary fiber, the new drinks contain 25 calories per 16 oz. bottle and come in two flavors: Pineapple Mango and Papaya Peach. So Real has a suggested retail price of $2.192.49 and is currently distributed in Georgia and South Carolina. It will launch in New York and California later this year. For more information, please call So Real at (855) 476-7325. Bai Brands, LLC has introduced Bai5 Molokai Coconut, the brand’s first coconut beverage and its first variety to include electrolytes. The new flavor will initially be offered as a summer-specific variety, the first in a line of bai5 seasonal varieties. The product is infused with antioxidant-rich coffeefruit and lightly sweetened with organic stevia 18 BEVNET MAGAZINE JUNE 2013

and all-natural erythritol. Molokai Coconut is gluten-free, low-glycemic, Kosher, vegan, GMO-free and soy-free. The beverage is sold in select markets across the U.S. and has a suggested retail price of $2.19-2.29 for an 18 oz. bottle. For more information, please call Bai at (609) 586-0500.

Flavored Malt Beverages Mike’s Hard Lemonade Co. has introduced four new products to its line of flavored alcoholic beverages: mike’s authentic shandy hard lemonade and lager, mike’s hard Smashed Apple Cider, mike’s hard lemonade FROZEN, and mike’s hard blood orange. Mike’s authentic shandy is a blend of mike’s hard lemonade and golden lager and sold in 6-packs of glass bottles and 12-packs of cans. Mike’s hard Smashed Apple Cider, a natural cider traditionally fermented with Washington apples, is available in two varieties - Crisp Apple and Classic Dry, and sold in 6-packs of glass bottles. Crisp Apple is also available in a 16 oz. can for convenience stores. Mike’s hard lemonade FROZEN comes in four flavors – original, black cherry, classic margarita, and strawberry – and is sold in single-serve 10 oz. pouches Mike’s hard blood orange is the company’s newest spring seasonal beverage, and has a less tart, slightly sweeter flavor than many traditional orange flavors, according to the company. The beverage will be available through mid-summer. Mike’s products are distributed nationwide. For more information, please call Mike’s at (312) 477-8614. Phusion Projects, LLC has introduced six new Island Squeeze flavors: Strawberry Daiquiri Light, Margarita Light, Blue Hawaiian Light, Mango Peach Light, Dreamsicle and Key Lime. Island Squeeze comes in 10 oz., singleserve pouches and each contains six percent ABV. The products are sold nationwide and have a suggested retail price of $1.99. For more information, please call (888) 901-6344.

Vodka Thatcher’s Organic Artisan Spirits has launched Thatcher’s Certified Organic Vodka. The vodka is hand crafted and distilled in Michigan from sustainably farmed, USDAcertified organic ingredients. The 80 proof spirit contains no artificial flavorings or colors. The product has a suggested retail price of $19.99-$21.99 per 750 mL bottle and is


distributed nationally. For more information, please call Thatcher’s at (773) 610-4708. Phillips Distilling Company has added two new flavors - UV Salty Watermelon and UV Peach - to its UV Vodka portfolio. Featuring watermelon flavors and a light salty finish, UV Salty Watermelon is the world’s first salted fruit-flavored vodka, according to the company. UV Peach is made with white peaches and features delicate hints of peel. UV Vodka is distilled four times and activated carbon filtered. The products have a suggested retail price of $12.99 for a 750 mL bottle and are available nationwide. For more information, please call Phillips at (612) 362-7500. L’Chaim Kosher Vodka is a Kosher vodka supervised and certified by the Orthodox Union. The vodka is crafted using a specially commissioned production process that strips the vodka of any impurities during its three distillations. The 80 proof spirit is being bottled by LiDestri Spirits in Rochester, N.Y. and has a suggested retail price of $27.99 for a 1.75 L bottle. The product

is distributed in New York and Florida. For more information, please call Rosen-Coren Agency at (215) 741-2003. Deep Eddy has introduced Ruby Red, a new ruby red grapefruit-infused vodka made with all-natural ingredients including 100 percent pure cane sugar and spring water from an aquifer deep in Texas Hill Country. This new flavor is created using Deep Eddy’s signature column distillation process, during which vodka is distilled 10 times in a state-of-theart 20-foot column still to remove impurities and create a smooth finish. Ruby Red is also filtered over charcoal four times slowly and gently in order to preserve subtle flavors during the filtration process. The vodka comes in four sizes - 50 mL, 750 mL, 1 L and 1.75 L – and is available for sale in select states. A 750 mL bottle has a suggested retail price of $18.99. For more information, please call Deep Eddy at (512) 382-9017. Pernod Ricard USA has introduced two new varieties to its Absolut Vodka line. Absolut Elyx is a spirit made from 100 percent hand-

JUNE 2013 BEVNET MAGAZINE 19


selected single-estate wheat and is manually distilled in a 1921 still with columns, pumps and pipes made of solid copper. The Absolut Elyx bottle is shaped like a modern decanter and features real copper accents. The spirit has a suggested retail price of $49 for a 1 L bottle and currently distributed in New York, Miami and Los Angeles. Pernod has also introduced Absolut Cilantro, a vodka that combines the aromatic essence of cilantro with notes of juicy lime. Like all Absolut vodkas, the product is made with all natural flavors and no added sugar. The 80 proof spirit is packaged in in 50 mL, 750 mL and 1 L bottles and has a suggested retail price of $20.99 for a 750 mL bottle. For more information on the new vodkas, please call Pernod at (914) 848-4782.

Rum Bacardi has launched a Light Strawberry Daiquiri variety to its Bacardi Classic Cocktails Light collection, a line of low-calorie, ready-to-serve alcohol beverages. The product is made with Bacardi Superior rum, natural strawberry flavor, real lime juice and pure

cane sugar. The spirit has less than 95 calories per 4 oz. serving. Bacardi Classic Cocktails Light products are distributed nationwide in both 750 mL and 1.75 L sizes. The drinks have a suggested retail price of $12.99 for a 750 mL bottle. For more information, please call Bacardi at (305) 573-8511. Pernod Ricard USA has launched Malibu Island Spiced, a new take on the company’s Malibu brand of coconut-flavored rum. The product made with Malibu rum and complemented with vanilla and a hint of cinnamon. At 70 calories per serving, Malibu Island Spiced is the industry’s first low-calorie spiced rum and marks the first major spirits brand to use Truvia, an allnatural sweetener, according to the company. The product contains 30 percent ABV, and has a suggested retail price of $16.99 for a 750 mL bottle. For more information, please call Pernod at (212) 372-5364. Fishbowl Spirits, a new spirits company wholly-owned by country music star Kenney Chesney, has introduced Blue Chair Bay, a collection of premium-blended rums. The rums are produced at a distillery in the Caribbean and come in three varieties: White, Coconut and Coconut Spiced. Packaged in 750 mL and 1.75 L bottles, the White variety contains 40 percent ABV, while Blue Chair Bay Coconut & Coconut Spiced Rum contain 26.5 percent ABV. The beverages have a suggested retail price of $18.99 and are sold in 32 U.S. markets. For more information, please call Savvy Drinks at (212)-336-2172.

Other Spirits Gabriel Boudier, a French micro-distiller, has added five new flavored liqueurs to its Mixologist Range: Caramel, Hibiscus, Darjeeling Tea, Vanilla and Cognac. The liqueurs have a suggested retail price of $30 for a 750 mL bottle. For more information, please call 21st Century Spirits at (323) 832.4488. Beam Inc. had extended its line of Skinnygirl Cocktails with four new products. Inspired by the popular mixed drink, Skinnygirl Mojito, Skinnygirl Sweet ‘n Tart Grapefruit Margarita, Skinnygirl White Cherry Vodka with Natural Flavors, and Skinnygirl Moscato. The products are distributed nationwide. For more information, please call Beam at (847) 444-7657.

20 BEVNET MAGAZINE JUNE 2013


CHANNEL CHECK

What’s hot – and what’s not – in stores now

SPOTLIGHT CATEGORY

LEMONADE 52 Weeks through 4/21/2013 SOURCE: Symphony/IRI Total food/drug/c-store/mass.

This category has been the hottest of the hot for the past couple of years, and it’s a place where entrepreneurial brands are fully engaged with the big guys in the fight for position. Note Calypso’s steady and sustained growth, along with Hubert’s and Cabana. Meanwhile, there are plenty of new launches – plenty of brands with no track record. We fear the “Golden Bear” – so should Minute Maid.

Brand

Dollar Sales

Minute Maid

$63,423,190

1.36%

Lipton Brisk

$51,686,420

8.99%

Calypso

$39,339,800

58.76%

Private Label

$26,047,460

1.20%

Country Time

$15,208,610

-8.57%

Santa Cruz Organic

$12,625,610

22.91%

Fuze

$8,796,340

N/A

Huberts

$8,567,687

156.29%

Hawaiian Punch

$6,478,737

-22.61%

Honest Ade

$2,530,700

-7.35%

Cabana

$2,471,802

1,250.98%

Martinellis

$2,389,820

2.67%

NU South

$2,097,402

-38.12%

Nantucket Nectars

$2,070,984

1.77%

Minute Maid

$1,868,387

3.59%

Sun Fresh

$1,740,614

71.74%

Tampico

$1,491,243

-1.08%

Welchs

$1,384,677

N/A

Huberts

$1,335,679

N/A

AriZona Golden Bear

$1,255,029

N/A K

TOPLINE CATEGORY VOLUME 52 WEEKS THROUGH 4/21/2013

22 BEVNET MAGAZINE JUNE 2013

Change vs. year earlier

C

M

Y

CM

MY

CY

CMY

SOURCE: Symphony/IRI Total food/drug/c-store/mass.

BEER

$29,110,410,000

3.78%

BOTTLED JUICES

$6,972,814,000

-2.71%

BOTTLED WATER

$11,450,950,000

4.33%

ENERGY DRINKS

$9,695,600,000

7.86%

SPORTS DRINKS

$5,628,379,000

2.67%

TEA/COFFEE

$4,140,478,000

3.55%


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TEA Brand

HOT! Gold Peak Dollar Sales

AriZona

$670,950,900

-4.40%

Lipton

$365,145,300

-5.28%

Lipton Brisk

$299,854,000

-7.71%

Snapple

$207,760,800

-5.84%

Diet Snapple

$197,420,300

10.85%

AriZona Arnold Palmer

$190,160,200

8.76%

Lipton Pureleaf

$185,449,100

18.43%

Diet Lipton

$146,019,900

1.47%

Gold Peak

$125,007,300

30.27%

Peace Tea

$78,848,320

28.16%

SOURCE: Symphony/IRI Total food/drug/c-store/mass. 52 Weeks through 4/21/13

ICED COFFEE Brand

NOT! Lipton Brisk

HOT! Starbucks Cappucino Dollar Sales

Change vs. year earlier

Frappuccino

$714,401,000

5.45%

Doubleshot

$309,271,100

1.82%

Starbucks Doubleshot

$34,781,370

871.41%

Frappuccino Light

$27,634,740

3.34%

Starbucks Cappucino

$14,674,710

3,709,395.44%

Private label

$7,993,631

-8.73%

Doubleshot Light

$5,268,342

15.69%

Illy Issimo

$4,643,040

-21.25%

Starbucks Doubleshot Light

$4,016,336

-5.29%

Coco Cafe

$1,469,399

1,956.13%

SOURCE: Symphony/IRI Total food/drug/c-store/mass. 52 Weeks through 4/21/13

NOT! Illy Issimo

SPORTS DRINKS

HOT! Gatorade

Brand

Gatorade Perform

Dollar Sales

Change vs. year earlier

$2,739,096,000

-1.70%

Powerade ION4

$869,955,600

2.98%

Gatorade G2 Perform

$494,661,900

-12.98%

Gatorade

$447,834,700

46.19%

Powerade ION4

$231,092,800

10.99%

Gatorade G2

$146,112,700

10.92%

Gatorade Frost

$96,512,810

-9.71%

Gatorade Cool Blue

$68,563,280

5.82%

Gatorade Fierce

$63,954,480

29.19%

Gatorade All Stars

$54,292,910

-3.03%

SOURCE: Symphony/IRI Total food/drug/c-store/mass. 52 Weeks through 4/21/13

24 BEVNET MAGAZINE JUNE 2013

Change vs. year earlier

NOT! Gatorade G2 Perform


ENERGY DRINKS Brand

HOT! Red Bull Total Zero Dollar Sales

Change vs. year earlier

Red Bull

$3,195,883,000

5.18%

Monster Energy

$1,927,733,000

9.70%

Monster Rehab

$414,708,910

67.48%

Rockstar

$322,130,400

5.47%

NOS

$267,743,300

4.72%

Java Monster

$260,246,800

18.18%

Monster Mega Energy

$228,726,700

8.78%

Red Bull Total Zero

$186,865,800

2,181.01%

Amp Energy

$175,534,200

-4.61%

Rockstar Sugar Free

$142,185,300

-2.08%

SOURCE: Symphony/IRI Total food/drug/c-store/mass. 52 Weeks through 4/21/13

NOT! Amp Energy

ENERGY SHOTS

HOT! Street King

Brand

5 Hour Energy

Dollar Sales

Change vs. year earlier

$1,147,742,000

-3.08%

Stacker 2 6 Hour Power

$18,358,860

-29.97%

Private Label

$18,238,620

5.97%

Stacker 2 Xtra

$17,765,210

-3.02%

Stacker 2

$11,841,220

102.85%

Worx Energy

$9,362,207

-40.04%

Tweaker

$4,508,809

133.29%

E6

$4,448,141

4.36%

Street King

$4,177,918

1,360.35%

VPX Redline Power Rush

$3,215,911

-6.93%

SOURCE: Symphony/IRI Total food/drug/c-store/mass. 52 Weeks through 4/21/13

NOT! Worx Energy

BEER Brand

HOT! Michelob Ultra Dollar Sales

Change vs. year earlier

Bud Light

$5,884,467,000

0.89%

Coors Light

$2,296,321,000

4.69%

Budweiser

$2,130,739,000

-4.66%

Miller Lite

$1,880,154,000

0.06%

Natural Light

$1,171,359,000

-1.88%

Corona Extra

$1,153,597,000

1.39%

Busch Light

$804,730,000

0.13%

Michelob Ultra

$705,826,000

12.91%

Heineken

$677,025,800

-0.60%

Busch

$669,057,700

-4.45%

SOURCE: Symphony/IRI Total food/drug/c-store/mass. 52 Weeks through 4/21/13

NOT! Budweiser

JUNE 2013 BEVNET MAGAZINE 25


By Gerry Khermouch

Cold Coffee Disruption Heating Up Ready-to-drink coffee has been a market that the Pepsi/Starbucks partnership has dominated for two decades thanks to their powerhouse Frappuccino entry. Coca-Cola struggled with brands ranging from Planet Java to Godiva before garnering a modest amount of traction with its Illy collaboration. Monster Energy’s inauguration of coffee/energy blends under the Java Monster moniker drew a response from Pepsi/Starbucks – Doubleshot – that for a while knocked Monster back on its heels, though Java Monster has since come back to carve out a durable piece of business. On the small company side, SoBe creator John Bello invested in Adina a few years back mainly because he viewed its RTD coffee entry as a solid platform for a Starbucks challenge, but it remained a niche item even as Bello moved on. A canned line called Bean & Body seemed promising enough to draw an investment from Coca-Cola Consolidated’s BYB incubation unit, but was discontinued late last year. I could list quite a few others, but you get the point. It’s been enough to make folks wonder whether RTD coffee – like enhanced water, energy shots and kombucha – wasn’t one of those categories that were sufficiently supported by a single strong entry to be impregnable to challengers. Yet lately we’re seeing abundant stirrings of new activity, even as proliferating independent coffee shops and efforts by the likes of McDonald’s to upgrade their coffee offerings are stimulating consumers to rethink their views about old man Joe. In conventional formats, Real Beanz, from a Brooklyn food company, melds functional ingredients with coffee in a striking glass package, while The Bob Marley beverage enterprise has spawned a canned entry, One Drop, that aims for a sense of authenticity stemming from the late singer’s connection with Jamaica. Both now seem to be picking up solid distribution. Then there’s the potential for disruption emanating from the burgeoning legion of cold-brewed coffee purveyors. As a feature story in this magazine last month

26 BEVNET MAGAZINE JUNE 2013

explained, this is a process that eschews heat for the slow running of water over the coffee beans, yielding a full-flavored drink that is shockingly free of any trace of bitterness. Among the barriers to broad success, awareness is still very low outside of foodie areas like Portland, Ore., and Williamsburg, Brooklyn, and there can be quite a bit of sticker shock, particularly among consumers who don’t recognize that some of the higher-priced entries actually are concentrates that yield several servings of iced coffee. (I became addicted to the cold-brew at Blue Bottle in Williamsburg, Brooklyn, a few years ago, but my wife – with a gourmet’s palate but a practical sense of value – at first refused on principle to pay $4 for a 6-oz. pour. Upon sampling, though, she was converted, too. And soon enough, no doubt because it got a similar reaction from other potential customers, Blue Bottle increased its serving size.) Like the BevNET editors, I find the segment full of intrigue and promise. Besides the wonderful taste and the mystique of the chemistry-set-like brewing apparatus (on full view at operations like Blue Bottle in Brooklyn), the segment shares several traits with the burgeoning craft beer and kombucha segments. Local and regional entrants are sprouting up, and the drink is turning up on tap or available for growler pours. Respected roasters like Stumptown and Gorilla have thrown their hats in the ring, even as entrepreneurial upstarts like Grady’s in Brooklyn and Kohana in Austin have edged in. The rich range of varietals and roasts available offer the sort of texture that rewards exploration and sparks discussion in Whole Foods aisles and on social media. I do wonder, though, whether the welter of different approaches being explored will prove to be a blessing or a curse. Most cold-brewed entrants are refrigerated, but a few are shelf-stable. Most are sold in concentrate form in multiserve bottles, but some are full strength, offered in singleserve bottles. That makes it difficult for

unseasoned consumers to understand, just as the diverse approaches taken by acai beverage marketers likely hindered that category’s development. By contrast, a fairly unified “nature’s sports drink” theme adopted by all three coconut water pioneers made it easier to establish that category. Will the confusion of entries forestall adoption or insure that the right concepts are able to establish roots? Time will tell. If the category does take off, scaling up production without compromising quality will pose another challenge, but we have to get there first. At this stage even ardent proponents acknowledge that it’s impossible to know yet whether cold-brew will remain a niche or be able to broaden into something approaching mainstream acceptance. It certainly will be exciting to watch this unfold. But I can also envision a disruptive entry of an entirely different nature that could up-end the business: a ready-todrink version of Dunkin’ Donuts coffee. As a more grounded, value-based challenger to Starbucks, I can’t think of a brand that’s better equipped to serve as the Blue Moon of high-end coffee. You’d have to think companies like Coca-Cola have approached Dunkin’ about a collaboration along those lines. The issue forestalling this to date apparently has been resistance from Dunkin’s franchisees who’re afraid that bottled or canned versions will decrease visits to their stores. My sense is they’re being short-sighted about this, and if eventually Dunkin’ is able to work out some accommodation that gets a product to market, that could prove the biggest challenge of all to Pepsi/ Starbucks’ hegemony. Longtime beverage-watcher Gerry Khermouch is executive editor of Beverage Business Insights, a twice-weekly e-newsletter covering the nonalcoholic beverage sector.


61/070,381, 61/132,424, 12/383,244, PCT/US2009/001775, 61/070,381, 61/132,424, 2009226019, PCT/US2009/001775, PI 0909187-4, PCT/US2009/001775, 2,718,231, PCT/US2009/001775, 200980118258.9, PCT/US2009/001775, CN102036572A, PCT/US2009/001775, 09722985.0, 2268160, 11102843.2, PCTUS2009/001775, 1148648A, 208133, PCT/US2009/001775, 7031/DELNP/2010, PCT/US2009/001775, MX/a/2010/010050, PCT/US2009/001775, WO2009/117152, 61/070,392, 61/132,409, 12/383,241, 2009-0297491-A1, PCT/US2009/001774, WO 2009/117151, PI 0909185-8, PCT/US2009/001774, 2,715,018, PCT/US2009/001774, 200980118257.4, PCT/US2009/001774, CN102036661A, 2268274, PCT/US2009/001774, 09723157.5, 2268274, PCT/US2009/001774, 11102893.1, PCT/US2009/001774,7340/DELNP/2010, PCT/US2009/001774, MX/a/2010/010214, PCT/US2009/001774, 61/132,953, 12/456,926, US-2009-0317532-A1,PCT/US2009/003761, 2010/008475, PCT/US2009/003761, 2100628.6, 507/DELNP/2011, PCT/US2009/003761, 61/398,192, 13/134,927,US-2012-0016026, PCT/US2011/001099, WO 2011/162802, 61/340,944, 13/065,510, US, 2011-0236364, PCT/US2011/00538, 61/340,944,WO2011/119228, 61/633,431

VIRUN and OmegaH2O are registered trademarks of VIRUN, Inc. Following but not-limited-to Patents and Patents-Pending apply:

VIRUN


Brewbound

Covering the business of craft

Brewbound Session Showcases the Many Identities of Craft Brewing By Chris Furnari and Max Rothman

The beer business is getting frothy: restaurants and bars are expanding their beer programs, retail shelves are sagging from the weight of all the new craft SKUs, and while rising demand for fullflavored beer makes the present an excellent time to sell, to ensure their futures, startup craft brewers will have to sharpen their business skills. To hone the approach, detailed stories of craft brewery branding, innovation techniques, investment strategies and portfolio management were revealed at the May 2 Brewbound Session, held at the Revere Hotel in Boston, where executives from both large and small craft breweries helped to educate an audience of 150 entre-beer-neurs. The day featured presentations from Boston Beer Company founder Jim Koch; Craft Brew Alliance President, Andy Thomas; Harpoon Brewery co-founders, Richard Doyle and Daniel Kenary; Pretty Things Beer & Ale Project co-founders, Dann Paquette and Martha Holley-Paquette, among others. It was a day of extremes. One speaker compared his product to a BMW. Another said he’d never even been inside of one. Say this for the craft brewers who graced the stage though – they definitely made for a mixed assortment. “Gypsy Brewers” Dann Paquette and Martha Holley-Paquette said they don’t think much about the future. Similar to paying the rent at the end of the month, they’re aware of its existence, but they don’t 28 BEVNET MAGAZINE JUNE 2013

let it bother them much in the day-to-day. Instead, they revel in the joys of, as Dann said, their “Mary Poppins kind of thing.” Then there was Simon Thorpe, president and CEO of Duvel Moortgat USA & Brewery Ommegang, who represents the other end of the branding spectrum. If Pretty Things is a workmanlike product with an egalitarian feel, Thorpe styles his approach more on the House of Windsor. Brewery Ommegang targets the luxury market of craft beer, he said, aiming to be the very finest, from the liquid to the packaging to the staff. Both brands succeed in their own ways because they understand their identities. Duvel Moortgat, which is the corporate parent of Brewery Ommegang, is an independent, Belgian family-owned brewery producing about 700,000 barrels per year with about $180 million in revenue. Thorpe said much of his brand’s success can be attributed to a significant cultural shift, the idea that regular people are looking for the occasional luxurious experience. Duvel taps into this demographic by identifying other successful luxurious brands, such as BMW, which projects an image of supreme class yet also offers affordable options for more standard consumers. Thorpe said that Ommegang goes for the same kind of consumer, one who hopes to elevate their entire experience, from picking up the bottle to pouring the beer. “They need to feel so good about a luxury brand to justify the price,” Thorpe said.

The Paquettes, on the other hand, don’t seem to care about luxury, or any image for that matter. They just enjoy making beer, and this passion indirectly creates its own image. But no matter the image, the need for innovation emerged as one of the day’s thematic takeaways. When asked to explain the secret to craft brewing innovation, Jim Koch, head of the country’s largest craft brewery, had a rather simple response: “I get bored easily,” he said. Beer in hand – despite the early hour – Koch, the chairman of Boston Beer Company, gave the opening address to the conference. He discussed the humble beginnings of the Samuel Adams brand and a creative process that, over the years, has helped the company grow to around 2.5 million barrels of production annually. Koch explained that true innovation comes from those with a desire to explore the unknown. “To me, it has to come from the same place that the entire craft brewing movement comes from,” he said. That place – one of passion, curiosity and pride – is what Koch believes will push craft brewers to continue innovating as their businesses expand. “In 12,000 years, there has never been so much creativity, innovation, new styles of beer and new brewing techniques,” he said. “It has never happened before and will not happen again.” But innovation itself won’t stimulate the kind of success many fast-growing craft brands will need if they want to survive long-term. Craft brands hoping to turn their regional success into mainstream acceptability heard from CBA (Widmer Brothers, Redhook Brewery, Kona Brewing, Omission Beer and Square Mile Cider) president Andy Thomas. He provided attendees with a glimpse of the CBA’s approach to a national profile and offered strategies for smaller brands looking to expand their own distribution territories.


“If you are going to be national, I think it is important to understand that ‘national’ means ‘national,’” he said. Examples of truly national craft breweries are hard to find; CBA, with its portfolio of distinct offerings, is one of the few that approaches its business with a nationwide network of Anheuser-Busch wholesalers in mind. “It has to start with a point of view,” he said. “You have to have a perspective on what you think is happening in the market.” That perspective – in Thomas’ eyes – includes having a clear vision on how to seize opportunities, understanding what it will take to realize that vision and recognizing a ‘trueness’ to brands and their capabilities. Thomas encouraged attendees not to fear the road less traveled when establishing an identity. “You aren’t going to be able to look to a lot of folks for advice, because they haven’t done it,” he said. “They haven’t had the testicular fortitude to do what you are trying to do.” It’s that kind of fortitude that Dave Engbers, the co-founder of Founders

Brewing Company, needed when his company was on the brink of bankruptcy. In the early days, Engbers said, he thought that he should make the same beers as everyone else. He also said that he didn’t understand the politics of the three-tier system — that some retailers don’t work with some distributors, for example — and he repeated the word “naive” throughout his presentation. “Making money never really entered our business plan,” Engbers said. He thought he’d produce about 2,000 barrels in his first year, but he did about 400. He said they currently do more than 2,000 barrels in a day, but they had to smarten up first. “We really needed to focus on who we are,” he said. They did, and they did it fast. Founders’ original location was 6,000 square feet. Their current location in Grandville, Mich., after a few levels of expansion, will be 76,240 square feet. The brewery started with three employees and now boasts a staff of 138. Founders is currently in 25 states, mostly east of the Mississippi River,

and has accumulated a growth rate of 73 percent from 2008-2012, with a projected growth rate of 86 percent for 2013. While these numbers would encourage most craft brewers, Engbers said that it all happened because, instead of going under, Founders defined itself and stuck to it. A number of staffers, from the CEO to daily brewers, gathered around a table and described the people of the brewery: they’re passionate, genuine, unconventional and “bad-ass.” Engbers credited much of his brewery’s success to strengthening relationships with distributors, retailers, consumers, employees, financial institutions, suppliers and, especially, the local community. “You can never turn your back on your backyard,” he said. Excerpts from the May 2 Brewbound Session may be seen online at Brewbound.com.The next Brewbound Session will take place on Dec. 5 at Paradise Point Resort & Spa in San Diego. For more information, please contact Mike Vassallo, the Brewbound account executive, at mvassallo@bevnet.com or 617-231-8827.

KOMBUCHA FOR EVERYONE GR EAT TASTE. G U N K FR E E . G U I LT FR E E .

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EXPERT

FLIPPING THE SWITCH Supplement to Beverage By: Justin Prochnow

Energy drinks marketed as dietary supplements have received their share of negative news stories over the past eighteen months. Attention from regulators, politicians, prosecutors, and class action litigators has only fueled the negative publicity and contributed to many sleepless nights for executives responsible for such products. This intense scrutiny of energy drinks and dietary supplements does not appear to be subsiding any time soon. Accordingly, many companies are weighing various options to find relief from the mounting concerns surrounding these products. One option that is being explored by many companies is the reclassification of liquid dietary supplements as beverages. However, making this switch is not as easy as just changing the name on the front of the can. The differences between liquid supplements and beverages must be carefully evaluated before opting to change direction. Only after weighing the pros and cons of selling a product as a beverage or supplement can a company make an informed decision about the right road to take. 30 BEVNET MAGAZINE JUNE 2013

Ingredients No evaluation is more important to the decision of supplement or beverage than the evaluation of the ingredients comprising the product. One ingredient could be the difference in determining the viability of a switch from reclassifying a supplement to a beverage. Essentially, ingredients in a dietary supplement must be dietary ingredients; the categories of legally permissible dietary ingredients are set forth in the definition of “dietary supplement” found in the Federal Food, Drug and Cosmetic Act. If an ingredient meets one of the definitions of dietary ingredient and was used as a dietary ingredient prior to October 1994, no proof of safety is required. On the flip side, ingredients in a beverage must be approved food additives or ingredients that are considered GRAS, which stands for Generally Recognized as Safe. Approved food additives are identified in regulations set forth in the Code of Federal Regulations. If an ingredient is not an approved food additive, a company must establish that an ingredient is GRAS to legally use it in a beverage. Some

ingredients have been designated GRAS by FDA in regulations for limited purposes; caffeine is one of those ingredients. Pursuant to a specific regulation, caffeine is GRAS for use in “cola-like beverages” at a tolerance of .02 percent, which is the equivalent of about 71mg in a 12 oz. product. The misconception is that this tolerance level represents a limitation or a restriction on caffeine; it does not. To the contrary, caffeine is specifically approved for use in “cola-type beverages” at that amount. There is no prohibition against using caffeine at a higher amount; it simply means that the regulation does not provide an approved GRAS status for other uses. If an ingredient is not GRAS pursuant to a particular regulation or if the amount or use of an ingredient is outside the scope of a GRAS regulation, an ingredient still may be legally used in a food or beverage product. However, in such situations, a company must make a “selfaffirmed” GRAS determination for the ingredient that is specific to the amount used and for the specific purposes intended. While it is not mandatory for a com-


EXPERT

pany to submit a “self-affirmed” GRAS report to the FDA, a company must be ready to provide sufficient evidence to the FDA of the safety of the ingredient. Companies that specialize in assembling a detailed “self-affirmed” GRAS report usually start fees around $40,000 per ingredient and the costs can run upwards of $75,000-$80,000 per ingredient. Thus, if a product contains multiple ingredients that are not approved food additives or GRAS by regulation, the costs of assembling “self-affirmed” GRAS reports for each of those ingredients may make the switch to a beverage cost prohibitive. Manufacturing While the cost associated with assembling “self-affirmed” GRAS reports may be one of the biggest roadblocks to a company looking to flip a product from a liquid supplement to a beverage, the differences in manufacturing requirements may make a change more palatable. The Current Good Manufacturing Practice in Manufacturing, Packaging, Labeling, or Holding Operations for Dietary Supplements (“DS GMPs”), instituted in a three-year staggered process based on company size, were finalized in June 2010. The DS GMPs are substantially more detailed than the GMPs for conventional foods and beverages and place a large responsibility on manufacturers, packagers, labelers, and distributors of dietary supplements to ensure compliance. Compliance with the DS GMPs has become an area of primary focus for the FDA, which has been reinforced repeatedly by Dr. Daniel Fabricant, Director of the FDA’s Division of Dietary Supplement Programs. As the costs of testing and compliance with the DS GMPs increase for manufacturers, those costs are being passed along to distributors and marketers of dietary supplement products. A switch to beverages will likely result in a decrease in costs for companies that don’t need to meet the more onerous DS GMPs. Serious Adverse Event Reporting Dietary supplement companies are required to report and keep records of serious adverse events pursuant to the Dietary Supplement and Nonprescription Drug Consumer Protection Act of 2006. The requirement exists regardless of whether

32 BEVNET MAGAZINE JUNE 2013

any actual link between the serious adverse event and the product is made and certain adverse event reports have recently received a lot of media attention. Those requirements for serious adverse event reporting and record keeping are extinguished in the switch from liquid supplements to beverages. While the serious adverse event obligations do not apply to beverage manufacturers or distributors, beverage companies do have an obligation to make a report to the FDA’s Reportable Food Registry when there is a reasonable probability that that the use of, or exposure to, a beverage will result in serious adverse health consequences. Companies must stay aware of reporting obligations, depending on the types of products they sell. Claims Structure-function claims are one of the staples of dietary supplement labels and marketing. Certain statements such as “green tea provides energy” or “calcium helps build strong bones” are allowed pursuant to Section 6 of the Dietary Supplement Health and Education Act (“DSHEA”). While structure-function statements are also permitted for beverages, the FDA has indicated that such statements for conventional foods and beverages must be limited to statements regarding taste, aroma, or nutritive value. Historically, this distinction has not been aggressively enforced by the FDA when reviewing structure-function statements made for foods and beverages. However, during a recent webinar talking about structurefunction claims, Dr. Corey Hilmas, team leader of the FDA’s Dietary Supplement Regulation Implementation Team, indicated that the broader range of structurefunction claims is something that a company may be giving up in a switch from supplement to beverage. As more companies make the switch from supplement to beverage, structure-function claims may receive greater attention from FDA. Labeling A switch from supplement to beverage also mandates changes to the label of the product. While many aspects of the labels are similar, there are some big differences. For example, the Supplement Facts Panel must be replaced with a Nutrition Facts Panel. On a beverage label, the

Nutrition Facts Panel must list certain nutrients, regardless of the amounts. On a Supplement Facts Panel, nutrients in zero amounts are not to be listed on the label. Only nutrients, vitamins and minerals are listed in a Nutrition Facts Panel; on a Supplement Facts Panel, all ingredients with nutritive value must be listed in the Supplement Facts Panel. The dietary supplement disclaimer that must appear on any dietary supplement label on which structure-functions claims are made is not required on foods and beverages and should be omitted. As label claims are now the gateway to class action lawsuits in California and other states, labels must be carefully reviewed and revised. Wrap–Up As the public debate of supplements vs. beverages continues, the FDA has finally decided to get more involved as well. While the FDA expressed concern over the issue by releasing a guidance document in December 2009 , the FDA has been slow to actually implement the principles set forth in the guidance. The FDA finally issued several warning letters to companies in 2012 in which it determined that products labeled as supplements were really being represented as beverages. Recently, FDA has indicated that it intends to issue a final version of the guidance very soon. With the national attention now directed towards dietary supplements and energy drinks, and more specifically, the impact of these products on children, many companies are assessing whether a switch from supplements to beverages is in order. The ultimate decision of whether a switch should be made is not always clear. What is clear is that the decision is one that should not be entered into lightly and not without a careful evaluation of the many factors at play. Justin J. Prochnow is an attorney and Shareholder in the Denver office of the international law firm of Greenberg Traurig LLP. His practice concentrates on legal issues affecting the food & beverage, dietary supplement and cosmetic industries. He can be reached at (303) 572-6562 or prochnowjj@gtlaw.com and he can be followed on Twitter at @LawguyJP. This article is issued for informational purposes only and is not intended to be construed or used as general legal advice. The opinions expressed are those of the author exclusively.


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SHRUGGING OFF

NEGATIVITY Facing criticism on many fronts, energy drink companies may be drawing fire – but they’re feeling little heat. By Max Rothman

Seemingly every month, an energy drink company takes a black eye from a new, harrowing slate of news, another lawsuit, a demeaning study, a band of legislators with belts tied too tight and constituencies to appease. Whether justified or not, energy drinks have been painted as an evil that’s worthy of no more than the pariah life. But the industry isn’t exactly flabbergasted. “Whether it be aspirin or caffeine or nail polish, whatever, anything that is going to be abused is going to receive some public scrutiny,” said Walter Orcutt, the executive vice president of contract packaging and private label work for NVE Pharmaceuticals. Like most of the energy industry, NVE, which manufactures and owns energy products, is paying close attention to each blow on the battlefield. Consumers, retailers and wholesalers read the papers and digest the negativity. Yet in response, the category has only slightly shifted. It’s worth noting that retailers haven’t started making demands of energy drink companies in response to the scrutiny. Debbie Wildrick, the president and founder of Growing Innovative Brands and the

36 BEVNET MAGAZINE JUNE 2013

former senior director of vault and proprietary beverages for 7-Eleven, said that she hasn’t seen too many product alterations. She said that she doesn’t believe the cycle of news deeply affects retailers or wholesalers, so they’re not changing what they put on the shelves. “This backlash or bad press really hasn’t changed that much,” Wildrick said, referring to the energy drinks that she approved during her time with 7-Eleven from 2002 to 2007. Then, the category was emerging; now, more evolved, there still aren’t major changes taking place. In fact, the category has made steady progress amid the latest onslaught of tough press. According to SymphonyIRI Group, a Chicagobased market research firm, the energy category still accumulated nearly $10 billion in sales over the previous year ending on April 21, and grew by 7.86 percent over that time. Still, the last quarter has been tough for Monster and the rest of the category as well: while growth is still there, it has slowed significantly compared to the previous year. But the ongoing growth of energy drinks as a category, even when under siege, is enviable compared to the rest of the bev-

erage industry. It’s an odd situation – the brands’ success appears compromised by their popularity, but at the same time, that popularity continues to grow. The question is, if energy drinks were to adjust to meet their critics, what would happen? THE STORM BEGINS The recent wave of public scrutiny can be bookmarked by the death of Anais Fournier, a teenage girl who went into cardiac arrest after consuming two 24 oz. cans of Monster Energy in a 24-hour period. Fournier was only 14 years old when she died, in December 2011. Fournier suffered from Ehlers-Danlos syndrome, a disorder that weakens connective body tissues. She also had mitral valve prolapse, a heart condition that malfunctions one of the heart’s valves. An autopsy report indicated she died of cardiac arrhythmia due to caffeine toxicity. (Monster Energy has disputed the finding of caffeine toxicity in court.) While Fournier’s health condition likely made consuming energy drinks riskier for her than for much of the general population, her family believes a lack of responsibility by Monster is what led to her death, and has filed a wrongful death lawsuit.


That suit’s filing had a double effect, however. In addition to the initial story, part of the discovery process for the suit gave rise to a new set of stories – mostly in the New York Times – based around public health data collected by the FDA in relation to reports of adverse medical events that mention energy drinks. Since the Fournier suit, there has been a subtle change in the criticism of energy drinks: rather than target their caffeine content explicitly, the direction of the marketing of the products has become the chief front in the battle. While Fournier’s family went after the product most directly, another lawsuit recently filed against Monster by the city of San Francisco accuses the company of heavy marketing toward teenagers and young adults (the demographic most susceptible to caffeinerelated injury). Rather than targeting product abuse, these marketing tactics have become the opposition’s go-to argument. In November 2012, the city attorney of San Francisco, Dennis J. Herrera, sent a letter to Monster that asked them to substantiate their belief that their products are safe for adolescents and adults. Since sending the letter, Herrera has repeatedly demanded that Monster reduce its caffeine content and stop marketing to minors. At the end of April, Monster filed a lawsuit against Herrera over his demands. Herrera called it a preemptive lawsuit. One week later, Herrera countered with a lawsuit of his own against Monster and called the company “the industry’s worst offender.” MAKING A FEDERAL CASE A significant contingent in the energy industry believes that product abuse, not the product itself, is to blame for much of the tough news – and it continues to push out caffeine counts for other product types, like Starbucks coffees, to the public. Still, this opinion hasn’t been enough to mute what’s followed. The Fournier news triggered an onslaught of inquiries and requests by legislators for more regulatory action. Five months following her death, Senator Richard Durbin (D-IL) sent a letter to the U.S. Food and Drug Administration (FDA) in hopes of reforming the way energy drinks are marketed and sold. In the letter, Durbin noted Monster, Red Bull, Rockstar, Full Throttle and AMP as torch-

38 BEVNET MAGAZINE JUNE 2013

bearers for the category’s wrongdoings and urged FDA action against ingredients and labeling. Durbin also mentioned that young people are the most susceptible to the adverse effects of energy drinks. Since his letter, Durbin has been joined in his efforts by Senator Richard Blumenthal (D-CT) and Rep. Edward Markey (D-MA), who is currently campaigning for the open U.S. Senate seat in Massachusetts. The legislators have repeatedly sent letters to the FDA – and have received tepid responses that seem to acknowledge the complaints but also hint toward inaction. In April, the troika went directly to the public, releasing an extensive report titled What’s all the Buzz about?, which neatly outlined their complaints about the energy industry’s marketing practices and included several recommendations. The report advised energy drink manufacturers to label products with a clear description of the caffeine level (by milligrams), display a “prominent precautionary statement” for products with unsafe caffeine levels, stop marketing to young people, and report to the FDA any serious incidents resulting from energy drink consumption. OPPOSITION FROM THE CITIES AND STATES While Durbin, Blumenthal and Markey have become the faces of energy regulation, they’re not alone in the quest for change. In March 2010, Louisiana state senator Robert Adley (R-Benton) proposed a ban of selling energy drinks to kids under 16. The bill would have included any beverage, other than coffee, that contained at least five milligrams of caffeine per fluid ounce. However, about one month later, a Senate committee decided that parents, not the state, should monitor the energy drink consumption of their kids. In July 2012, New York attorney general Eric Schneiderman initiated a probe into the packaging, formulation and labeling of Monster, 5-Hour Energy and perhaps oth-

AFTER FDA COMES TO DINNER, LITTLE APPETITE FOR WIRED FOOD Here’s an interesting side-effect of legislative inquiries into caffeinated food and drink – it may be helping energy drink companies as much as it is hurting them, by eliminating potential competitors from other categories. In April, following the brief launch of a new, caffeinated gum called Alert, the FDA announced it would look into a new food brands that include added caffeine, including candy bars, jerky and breakfast cereals, among others. Wrigley, the owner of Alert, quickly suspended production. NVE’s Walter Orcutt said his company has been working on adding caffeine to sports nutrition and food products. The company has also been working on mints; each mint contains 50 milligrams of caffeine, with 30 mints per container. Orcutt said that this product will mostly be sold at convenience stores. But food and energy has a brief and mostly uninspiring history. For example, in 2008, Snickers introduced Snickers Charged, which contained 60 milligrams of caffeine. It was quickly discontinued. Morning Spark’s instant oatmeal, which contained yerba mate and guarana, also quickly fizzled out. “Morning Spark did give me a boost, but it also left me feeling woozy and nearly spoiled my appetite for dinner,” wrote reporter Mason Currey of Slate. Perky Jerky, which had a booth at Expo West in March, is a beef jerky that also contains guarana. The company boasts low calories and carbs, high protein and taste, and has entered more than 17,000 stores across the country, according to a story in The Denver Business Journal. It’s not a huge seller, but it’s one of the few growing cogs of this segment. Orcutt said that NVE is constantly thinking of new ways to expand the energy category, especially in food, however he does have his limits. “We’re not going to be as involved in, you know, energized potato chips,” Orcutt said. Perhaps he’ll change his mind if the FDA ever cracks down on energy drinks, or if demand develops for energized potato chips. But we’re not there just yet.


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ers. According to The Wall Street Journal, Schneiderman issued subpoenas to investigate whether the companies were overstating benefits and improperly labeling guarana, which was noted as an ingredient but wasn’t quantified. In October 2012, the FDA announced that it had received reports linking five deaths over the previous three years to drinking Monster. The following month, the FDA announced that it had received

reports of 13 deaths over the previous four years that cited the possible involvement of 5-Hour Energy. Reporter Barry Meier’s coverage in The New York Times received significant attention – and helped build more soapboxes. One week after the publication of the 5-Hour Energy story in The Times, Chicago alderman George Cardenas said that he doesn’t “want kids dying because of something that shouldn’t be in their hands.”

Cardenas, who is also the chairman of the Chicago City Council’s Health Committee, proposed banning the sale of energy drinks to anyone under the age of 21. At the beginning of March, the Cleveland City Council proposed an ordinance that would ban the sale of energy drinks to anyone under the age of 18 and remove the beverages from certain vending machines. (If one thing’s clear, it’s that there’s no national consensus on the prop-

San Francisco

Los Angeles

Chicago

Cleveland

Washington D.C.

Suffolk County, NY

In late April, Monster Beverage Corp. sues San Francisco City attorney Dennis Herrera because of his demands that the company reformulate its energy drinks and stop marketing to young people. Herrera called it a “preemptive” effort and, about one week later, follows with a lawsuit of his own, claiming that Monster has violated California law by marketing to children as young as 6 years old. He also called Monster “the industry’s worst offender.”

In April, Bernard Parks, the Los Angeles City councilman and the former head of the L.A. Police Department, said that police should crack down on kids who buy too many energy drinks. Parks also wants police to have the right to restrict certain purchases and retailers to strategically place energy drinks so they’re harder to reach for young people.

In November 2012, Chicago alderman George Cardenas proposes banning energy drinks sales to individuals under the age of 21. This proposal arrived shortly after the death of Anais Fournier. Cardenas argues that young people are the most susceptible to the side effects of energy drinks. The legislation hasn’t yet been voted on.

In February, Ken Johnson, a Cleveland City councilman, proposes a ban on selling energy drinks to anyone under 18. The legislation – as yet unpassed – stemmed from Johnson, was refereeing a basketball game, meeting a 10-yearold who felt “dizzy” from consuming a pre-game energy drink.

Over the past few years, Sens. Richard Durbin (D-IL) and Richard Blumenthal (D-CT) have urged the U.S. Food and Drug Administration (FDA) to take action against energy drinks, which they believe wrongly market toward young people. Joined by Rep. Ed Markey (D-MA), in April, the trio release a report titled What’s all the Buzz about? that outlined their grievances and offered suggestions to energy drink companies.

In March, legislators in Suffolk County pass a law that prohibits energy drink companies from aggressively marketing toward minors – and keeps them from being sold at county parks and beaches. Legislators cite free samples and coupons as primary methods of marketing toward minors. The law has been described as the first energy drink education and protection plan in the country.

Benton, Louisiana In April, Sen. Robert Adley (R-Benton) proposes that Louisiana should prohibit retailers from selling energy drinks to minors aged 15 and under. Adley argued that energy drink labels are often inaccurate and misleading. The state’s Senate Commerce Committee rejects the proposed bill without a favorable vote and said that parents, not the state, should monitor the energy drink consumption of minors.

40 BEVNET MAGAZINE JUNE 2013


er age for energy drink consumption.) This specific ordinance would include beverages that contain 140 milligrams of caffeine per four fluid ounce or larger container, 0r 80 milligrams of caffeine per 0.8 fluid ounce to 3 fluid ounce container. Later that month, a group of 18 doctors implored the FDA to take action for the sake of young people. In April, Bernard Parks, a Los Angeles City councilman, said that police should crack down on kids who buy too many energy drinks, according to The Washington Times. Parks, the former head of the L.A. Police Department, also wants more labeling and thinks that energy drinks should be strategically placed in stores so that children can’t reach them. In spite of those high-profile proposals, here’s the only regulation that has passed: a law in Suffolk County, N.Y., that prohibits the sale of energy drinks to minors – by vending operations at county parks and beaches. “There are medical concerns associated with these beverages, and some parents don’t even know what’s in them,”

Suffolk County Health Commissioner James L. Tomarken told reporters. THE INDUSTRY’S REACTION This continuous stream of negative news and lawsuits hasn’t crippled the industry, but it seems to have weighed it down a great deal. A Morgan Stanley report from April says that growth in convenience stores has slowed to about 6 percent during a four-week period ending on March 16, down from a 13.1 percent growth average from the previous two years during this same stretch of time. This decrease in growth may indeed stem from a plummeting consumer perception. YouGov, a consumer research firm that measures the impact of word-of-mouth, news and advertising on brands, found that consumer perception of energy drink brands fell to its lowest level since 2009. In March, Monster began marketing its products as beverages, not supplements. This change could act as a temporary veil, which would free the company from reporting tragic events linked to its products. This follows a similar, recent move by

Rockstar. Both companies have recently joined the American Beverage Association, which recommends caffeine disclosure for member companies’ products, as well as food and beverage classification. Perhaps readying themselves fo a drawn out fight, both companies have also recently hired high-profile D.C. lobbying firms. “They make that move based on the fact that they’ve been attacked,” Wildrick said. Wildrick and Orcutt both feel unaffected by the battlefield against them, and they believe that the industry feels the same way. After all, the FDA has yet to take considerable action. However, this doesn’t mean that the industry is ignoring the news. Some steps are being taken, but aren’t yet tangible. “In the last two years, everyone has been more on top of the their game when it comes to making sure their labels are technically correct and FDA compliant,” Orcutt said. NVE, like many other brands, now approaches its product labels as not just a growth tactic, but also as a safeguard. Perhaps this will make them a less identifiable target for the FDA, if it ever does lay the hammer down.

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BRAND NEWS

Energy Drinks

Popey Energy personifies strength, health

and natural energy, according to the company. With its vintage design and internationally iconic character, Popeye Energy drink has a juice-based taste. Avitae USA, LLC recently announced the

hiring of Norman E. Snyder as the company’s new president and CEO to help reorganize the all-natural caffeinated water company and to oversee growth strategy, staffing, distribution and sales. Aviate seeks to provide consumers with an alternative to less healthy caffeinated beverages and sugary drinks. The company offers two different levels of natural caffeine; 45 milligrams, which is the equivalent to a diet soda, and 90 milligrams, which is the equivalent to a cup of coffee. Avitae is distributed predominantly throughout the Midwest and Mid-Atlantic regions with chain authorizations in Giant Eagle, Meijer, Heinen’s, Giant, Wegman’s, Safeway, Speedway and Walgreen’s. GURU Natural Energy Drink is made with

natural potent botanicals, organic juices, no preservatives and no artificial caffeine, according to the company. GURU Lite Natural Energy Drink has 10 calories and is made with stevia, natural flavors and herbal extracts. It also contains natural potent botanicals, organic juices, no preservatives and no artificial caffeine. Killer Buzz energy drink has secured new

distribution in the Dallas-Fort Worth market with Kimball Distributing and retailer Quik Trip. The company has also expanded its Coffee+Energy line by adding hypnotic hazelnut, a ready-to-drink coffee. Killer Buzz recently launched its Coffee+Energy drinks in New York City with distribution partner Exclusive Beverage Distributors. Drive Energy will be available this summer in Famima stores, Gelson’s, and farmers’ markets in Southern California. The product contains all-natural cane sugar and doesn’t produce jittery side effects, according to the company. Go Fast energy hybrids are made with stevia and come in berry, coconut, lemonade, lime and tea flavors. It was formulated with input

42 BEVNET MAGAZINE JUNE 2013

from riders, flyers, drivers, racers, skiers, runners, cyclists and athletes of all kinds to create a functional energy drink without a diet-like aftertaste, according to the company. Ciclon International produces three different energy drinks. C-Peach Tea and Energy Drink, which comes in a 20 oz. bottle, is sweetened with stevia and contains black tea and vitamins. Ciclon Acerola Energy Drink, which comes in a 16.6 oz. can, contains no carbon dioxide. Ciclon Premium Energy Drink, which comes in an 8.3 oz. aluminum bottle, was developed for high target energy drink consumers. Cool Blue is an energy drink with a triple berry blend flavor. It contains 5 calories per 8 oz. and is sweetened with stevia and granulated sugar. According to the company, it has developed a new type of plastic that can be formed into a slim can shape and still keep the product inside carbonated for more than a year. Cool Blue is one of many flavors that will be available in the next few months. It’s available in a 10.5 oz. slim plastic can, and 1-, 3-, and 5-gallon bag-in-a-box sizes. Golazo is expanding into 1,600 stores throughout the West Coast — tripling its store count — including 850 Safeway locations and Whole Foods Markets throughout California, Washington and Oregon. The company is also introducing two new sugarfree offerings that complement its other Latin-inspired flavors: Golazo All Natural Sugar-Free Jamaica Sports Energy and Golazo All Natural Sugar-Free Mandarina Sports Energy. Golazo beverages are nonGMO and certified gluten free. Red Bull is supporting National Red Bull Flugtag on September 21 by launching Flugtag 4-packs with an on-pack flying game. Consumers can scan QR codes or text in and be directed to a mobile web page for the game. They can customize a virtual craft and fly it into one of the five Flugtag cities: Chicago, Dallas/Fort Worth, Long Beach, Miami and Washington D.C. The most creative craft that also flies the farthest will have the chance to be turned into a real craft to fly at one of the events on September 21. The contest runs mid-July through August. The


game will be available through September. Red Bull also recently launched cranberry, lime and blueberry flavors in new red, silver and blue cans. This is the company’s first alteration of its flagship flavor in its 15-year history. Chasing Rabbits is now six months old and

approaching 100 greater San Francisco Bay area and Sacramento area retailers. These stores include channels such as natural food, specialty supermarkets, deli, gas, convenience and liquor, plus high tech and business cafeterias. The product is distributed by Falcon Trading Company, Inc., DBA Sun Ridge Farms and Canteen Vending.

Kentucky, Virginia and Mississippi, and offers XL Energy Regular, XL Sugar Free, XL Cranberry Energy and XL Lime & Lemon Energy. Scheckter’s OrganicEnergy is the only energy drink to be exhaustively tested and approved as clean for elite level sports persons, according to the company. The product comes in two varieties: original and lite. Both use the combination of agave nectar, lemon, pomegranate, elderberry juice, a blend of brazilian guarana, raw green coffee beans, green tea and ginseng. Per 8.4 oz. can, the original contains 135 milligrams of caffeine and the lite has 85 milligrams. Cannabis Energy Drink complements its

XL Energy Drink, a lightly carbonated energy

drink, hit the U.S. market in New York in 2006. Today, it’s represented worldwide and selling more than 130 million cans per year, according to the company. The product is marketed as a lifestyle drink and not as an extreme sports product. XL is now available in

sweet flavor with hemp seed extract. The product contains caffeine, taurine and B vitamins. It contains no THC and has no narcotic effect. The company recently launched its sugar-free Cannabis Light drink and is currently looking for exclusive distributors throughout the U.S.

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BRAND NEWS

Energy Drinks

Angels Aphroenergy, an aphrodisiac and

energy elixir designed to increase sexual arousal and performance, has recently announced local distribution in Las Vegas with Las Vegas Beer and Beverage Company. The product was launched in January 2013 and is already available in select states such as Texas, Oklahoma and New Jersey. Muscle Monster, which launched in April, is

low in fat and contains 25 grams of protein, 7 vitamins and minerals, and 500 milligrams of calcium. This product is marketed as fuel to help consumers get through their workouts. Wave Energy Drink has redeveloped its

packaging after two years of tinkering. Designed with the requests of consumers in mind, Wave will launch its new redesign this month. Manyk PUNCH was introduced in February,

is sweetened with natural cane sugar, and contains all-natural fruits and vegetables for coloring. Manyk’s distribution has expanded to include companies such as McLane Co, Core-Mark and U.S. Foods. Manyk’s products are currently available in conveniencecoolers throughout Southern California. Hype Energy has launched Hype Energy Up!, a mix of berries with a cool mint aftertaste, 10 vitamins, guarana and ginseng. All Hype drinks are made with pasteurized ingredients and have no artificial colorings or preservatives. Hype Energy Up! will initially launch in the Middle East and Africa this month and plans to eventually roll into North America and Europe. WhoopAss is an energy drink that helps in

muscle recovery and contains caffeine, polyphenols, yerba mate and green tea catechins. The product can help support a workout routine or the recovery from an all-nighter, according to the company. Andale! is sold in more than 700 locations in central California, according to the company. The company is continuing self-distribution to maintain market presence and care for brand management.

44 BEVNET MAGAZINE JUNE 2013

Guayaki Yerba Mate has the strength of coffee, the health benefits of tea and the euphoria of chocolate, according to the company. The product, which is packaged in a 16 oz. can, has three flavors: revel berry, lemon elation and enlighten mint. Vemma Nutrition Company recently

launched Verve Bold, which has 50 percent more energy than the original Verve energy drink and has sold more than 1.4 million cnas since its pre-launch on Jan. 24, according to the company. Verve Bold is sweetened with organic cane sugar, stevia and xylitol. Vemma projects Verve Bold sales of more than 10 million cans this year and more than $30 million in sales. KICK Energy Drink is lightly carbonated with vitamins B12 and B6 and contains no high fructose corn syrup or guarana. This product is imported exclusively in the U.S. by Dolce Beverage Group, LLC, and works as a stand-alone drink and as a spiritsenhancer, according to the company. KICK Energy has partnered with the Tomb Raider video game to make customized cans and launch a prize-filled campaign, highlighted by a vacation in Hawaii. Bulletproof Energy Drink is the only

energy drink to adorn the Fisher House Foundation logo on the side of the can, according to the company. Five cents per can sold will go directly to the foundation. The new cans are available at stores in California, Nevada and Hawaii. Read more at www.bulletproofenergy.com. Hockey Soda Energy has teamed up with John Buccigross, ESPN anchor, to give away the product throughout the NHL Playoffs as part of Buccigross’ online Twitter game #bucciovertimechallenge. When a game goes into overtime, hockey fans send a tweet of a player from each team that they believe will score the game winning goal along with the aforementioned hashtag and #hockeysoda. SIN is made with ingredients and water

from the Austrian Alps. Drinkable by itself or mixed with spirits, according to the company, the product comes in three flavors and


is available at locations across the country, including New York, Miami, Las Vegas and the West Coast.

Premium Pink Energy has a new 250 mL

can and features a new vitamin blend formula. Sambazon has released a host of energiz-

Cuba Herbal Energy Juice was one of the

first all-natural energy products on the market, according to the company. The product was developed in response to an increasing demand for a healthy alternative to existing energy drinks. Cuba is currently sold in Southern California, New York City, Hong Kong and Guangzhou, China. Roaring Lion has launched a new line of re-

sealable bottles and two new products: au natural and zero. The new 16.9 oz. bottles feature an updated look that the company believes is sleek, attractive and attention-grabbing. Beaver Buzz Energy features a new logo and

comes in a 473 mL can, which has been updated from the brand’s previous 355 mL can.

ing beverages. Amazon Energy and Lo-Cal Amazon Energy are gently carbonated with a berry flavor, and contain yerba mate, green tea and guarana. Energy Mocha Java, which contains nine grams of protein, antioxidants and omegas, has a blend of fair trade coffee, yerba mate and guarana. Energy Acai Berry+Yerba Mate+Guarana superfood juice is also packed with antioxidants and omegas. All the products are 100 percent organic and contain non-gmo ingredients. BAWLS Guarana has strengthened its presence in Tennessee with distribution by Tennessee Crown of Chattanooga. Also, a relationship with Folsom Distributors of Wood River, Ill., has brought BAWLS across Missouri and Southern Illinois. The company has also recently partnered with Comer Distribut-

JUNE 2013 BEVNET MAGAZINE 45


BRAND NEWS

Energy Drinks

ing of Rock Hill, S.C., and it’s now available throughout much of the north-central region of the state, including Columbia, the capital and the home of the University of South Carolina. BAWLS has also expanded distribution into South Florida and Mississippi. AriZona Beverages Arnold Palmer DRIVE was created for the active, healthconscious consumer looking for a natural boost and enhanced hydration. The product is intended to help consumers play harder, perform strongly and recover faster with the same taste as the original Arnold Palmer product. This version packs vitamins, coconut water, super fruit extracts, antioxidants, amino acids and caffeine. Rip It Igniter aims to provide extra strength

energy with a tropical fruit blend flavor. Rip It Hydrator aims for energy and hydration with a pineapple coconut flavor. Both beverages are non-carbonated. Red Rain Energy is packaged in 16 oz. cans

and 1 L PET bottles. It comes in 10 flavors: Original, Diet Original, Berry Pomegranate, Cherry Limeade, Cranberry, Orange Passionfruit, Watermelon, Peach Grapefruit, Lemonade and Half and Half Tea/Lemonade. Hiball has launched two new SKUs to its line of certified organic energy drinks. Hiball Peach Sparkling Energy Water and Hiball Pomegranate Acai Organic Energy Drink are both made with 50 mg of Guarana, 50 mg of Ginseng and 160 mg organic caffeine per 16 oz. can. The Peach Sparkling variety is calorie-free and sweetener-free, while the Pomegranate Acai variety is made with juice and sugar. Hiball has also introduced a new coconut water infused with the brand’s proprietary blend of energy ingredients. The non-carbonated product is made with 100 percent organic coconut water. Gamma Labs has introduced a new Pink Lemonade flavor to its line of G Fuel energy products. The new variety contains antioxidants from 19 different fruits and is infused with vitamins B, C and E. Nor-Cal Beverage Co., Inc. Go Girl Sweetie

Grapefruit Energy Drink is the newest ad-

46 BEVNET MAGAZINE JUNE 2013

dition to the Go Girl Energy brand. The lightly carbonated product has an all-natural grapefruit flavor and is sweetened with organic agave and stevia. The beverage also contains vitamins B12, B6, E, Calcium, and CoQ10, as well as Super Citrimax, a mild herbal appetite suppressant. Each 12 oz. can has 35 calories. BAWLS Acquisition Corp. Tennessee Crown Distributing Co. has added the CRUNK!!! line to its beverage portfolio and is distributing the entire collection of flavors throughout the Chattanooga, Tenn. market. Additionally, United-Johnson Brothers of Alabama recently added the counties in the southeast portion of the state and now has a territorial footprint which includes all 67 counties in Alabama. Since the start of 2013, the company has partnered with several new distributors including United Wholesale & Nutrition whose area of coverage spans from West Palm Beach to the Florida Keys. A & E Wholesale in Tallahassee is currently launching CRUNK!!! Energy Drink in North Central Florida. CRUNK!!! is also available in stores throughout Louisiana, carrying over into Mississippi and southern Arkansas through a newly established partnership with NP Distributing out of Winnsboro, LA. In addition to the expanded presence in the Southeast, CRUNK!!! Energy Drink availability has also been established as a result of partnerships with Golden Beverage Company based in Ogden, UT and Badger Distribution in Waukesha, WI. Steaz has launched new energy packaging

for all four of its flavors. The cans feature a kinetic design and stronger text that more effectively communicates energy to consumers. In addition, there are strong call outs to “organic” and “zero calorie” on the top portion of the can. The new designs for Steaz 4-packs are consistent with the can design, featuring the same kinetic design and text. The new energy designs match the repackaging across all Steaz platforms, creating a consistent and recognizable product design. DNA Brands, Inc. has re-launched dna

Energy Drink with new can graphics. Along with the new packaging, the company has launched three new flavors to complement


the award-winning Citrus and Sugar Free Citrus varieties. Frava recently signed a new distribution agreement with Drink King Distributing Company Inc. The deal is Frava’s largest distribution deal to date. The company will launch a new guerilla marketing initiative this summer designed to enhance brand awareness. Rhino’s Energy International. Rhino’s

Energy has appointed David Nanni as Director of USA Business to further develop and expand the footprint of the brand in the U.S. While successful in Europe and other emerging markets, the company is now focused on new growth in the U.S. With distribution in 24 states in both on- and off-premise retailers, the product comes in two flavors – original and cranberry – and three package sizes: 8.45 oz. can, 16.9 oz. can and 1.5 L bottle.

XYIENCE Xenergy, the official energy drink of the UFC, kicked off its nationwide contest DoYou Have the Power to Win? on May 1, 2013. The two-part program runs through Sept. 1. The first component is an in-store promotion that offers consumers the chance to win XYIENCE and UFC prize packages instantly. Hundreds of instant winners will receive prizes including XYIENCE and UFC apparel, UFC punching bags, DVDs of past UFC fights and pay-per-view gift cards for upcoming UFC fights, and more. During the same contest period, XYIENCE will host four one-month promotions on Facebook. Rockstar Energy Water is a new sugar-free, zero-calorie line of drinks that contain 200 mg of caffeine, guarana, ginseng, B-vitamins and taurine. The drinks are packaged in 20 oz. plastic bottles and come in three flavors: Tropical Citrus, Blueberry Pomegranate Acai, Orange Tangerine.

JUNE 2013 BEVNET MAGAZINE 47


MISS MUFFET BROADENS HER PALATE By Jeffrey Klineman She was eating curds and whey back in the day, but Little Miss Muffet might look past milk the next time she’s searching for her protein boost.

Advances in protein techBut protein sources aren’t broadening to include soy or nology, rising raw materi- grains only due to whey demand; changes in lifestyle that cut als costs, and lifestyle out animal proteins are also driving suppliers to come up with changes have combined new sources of this ingredient. Launches of products boasting with an overall upsurge plant-based proteins increased 54 percent from 2008 to 2012, in demand to create a largely due to increased vegan and vegetarian diets. From larger broader set of proteins brands like Sambazon, which uses hemp protein to bolster its used in beverage than protein count, to smaller startups like Botan, which deploys those derived solely from whey, the popular milk-based protein. green pea protein powder as a muscle-building source, there are “Whey is still the most sought-after protein,” said Patrick an increasing number of plant-based proteins aiming for the 30 Michael, who is the business development manager for beverage million-plus U.S. vegetarians. for Glanbia, a protein manufacturer. “But industrywide, soy has “The demand for non-animal-based protein, the reason we’re become fairly prominent, as have plant proteins.” into fractionating flax, delivering a flax protein concentrate, the According to Michael, while proteins made from whey reason we’re living to see this variation, is that consumers are (about 80 percent) and even milk powder (20 percent) comrecognizing the benefit of protein, they want to put it into their prised almost the entire category a decade ago, the mix is now diet,” Michael said. about 60 percent whey, 40 percent a mix of soy, hemp, flax, and other “ancient grains” and plants, including pea protein and even algae. Ensure $330,079,600 8.25% Meanwhile, with the building block nutrient’s popularity increasing due to increased emphasis on satiety Muscle Milk $268,007,000 24.03% and high-protein diets, high protein beverage launches Pedia Sure $224,612,200 7.13% are through the roof: they are up 37 percent since Private Label $212,941,900 -0.09% 2008, according to a report by the product tracking BOOST $179,002,200 14.62% firm Mintel, which also identified snacks and beverages as the two leading categories driving consumer Ensure Plus $144,484,800 16.95% demand for products with extra protein. Meanwhile, Slim Fast 321 Plan $137,624,800 43.62% protein-heavy weight control and nutrition beverage Body Fortress Spr Advncd Why Prot $103,026,600 17.95% categories continue to roll up sales, nearing $2.75 Glucerna $93,095,480 15.91% billion in the past year, according to Symphony/IRI Group numbers – and that doesn’t include proteinKelloggs Special K $90,888,020 11.85% rich shakes and smoothies from companies like ATKINS Advantage $88,340,580 18.26% Odwalla, Bolthouse and Naked. Six Star Pro Nutrition $62,378,130 28.49% Accompanying that demand, however, has been Pure Protein $48,496,830 13.31% an increase in the cost of whey protein. The protein type has long been valued because of its digestibiliEAS AdvantEDGE Carb Control $47,149,240 13.68% ty and quick absorption, but it’s become even more Ensure Revigor $46,385,930 -23.90% popular as technology has advanced manufacturer EAS $36,031,100 -23.73% capabilities for incorporating proteins into tastier, less chalky beverages. PediaSure SideKicks $33,229,280 17.94% “Necessity is the mother of invention,” Michael BOOST Plus $29,662,190 11.06% said. “It’s kind of a cop-out answer, but what’s Muscle Milk Light $29,027,990 -2.80% been happening is a great and greater demand for Ensure Clear $21,725,640 48,850.90% protein from consumers has created better technolSOURCE: Symphony/IRI Total food/drug/c-store/mass. 52 Weeks through 4/21/13 ogy for the use of proteins.” 48 BEVNET MAGAZINE JUNE 2013


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BRAND NEWS

Protein Drinks

FitPro Plus uses a natural filtration pro-

cess that extracts pure liquid protein and minerals from milk’s sugars, according to the company. Fit Pro also said it has 20 percent more protein than the leading brand and is the only protein beverage with the Real Dairy Seal. FitPro doesn’t add hormones, natural flavors and sweeteners or lactose. It’s gluten-free and Kosher, and naturally sweetened with stevia, monk fruit and organic cane juice. FitPro currently offers FitPro Plus, which contains 40 grams of protein, and FitPro Daily, which contains 26 grams of protein. OhYeah! shakes deliver 32 grams of protein, about 4 to 6 grams of carbohydrates, and 3 grams of sugar, and are made with what the company calls fresh, diafiltered milk. They’re also lactose-free and glutenfree. The shakes are available in five flavors — chocolate, cookies & creme, vanilla creme, bananas & creme, and strawberries & creme — and were named the No. 1 Nutritional Shake in America by the American Masters of Taste Foundation. Premier Protein is launching new snack-size

shakes, which contain 18 grams of protein, 100 calories and one gram of sugar. The shakes come in chocolate and vanilla and will be available nationwide in Kroger grocery stores on the week of June 9. Be Well Nutrition, which recently launched ICONIC, was awarded the $50,000 top prize for a healthy beverage startup at the 13th Annual Tulane Business Plan Competition in April. The company calls ICONIC a healthy lifestyle beverage and markets it as a meal replacement. It contains 20 grams of protein and fiber, vitamin B-12, choline and amino acids. B’more Organic, which previously only

came in 16 oz. bottles, is adding an 8 oz. half-pint size for kids. This Icelandic-style yogurt smoothie contains 18 grams of protein per serving and has no added sugar.

50 BEVNET MAGAZINE JUNE 2013

Cytosport’s Muscle Milk has announced the launch of four limited edition bottles featuring the Chicago Cubs, the Chicago White Sox, the Los Angeles Dodgers and the Texas Rangers, which celebrates the 20132014 baseball season. The 14 oz. bottles are available at retail outlets in and around their respective markets. The White Sox and Dodgers bottles are available in the chocolate flavor, the Cubs bottle is available in the cookies N creme flavor, and the Rangers bottle is available in the vanilla creme flavor. Cytosport has also recently launched Evolve, a naturally-flavored protein shake that can be found in weight management or protein nutrition aisles at retailers nationwide, aims to complement any woman’s evolution toward a healthy lifestyle. Available in chocolate, vanilla creme, strawberry, mixed berry and cafe latte flavors, the product is packaged in an 8.25 oz. Tetra Pak 4-pack, is sweetened with stevia, cane sugar and monk, is lactose and gluten free, and contains 12 grams of protein and 20 vitamins and minerals. The company claims that it’s an excellent source of fiber and that it can help reduce body fat, maintain lean muscle mass and improve body composition. Six Star protein shakes contain 20 grams of

protein, 24 vitamins and minerals, are lactose and trans-fat free, and come in two flavors: chocolate fudge and french vanilla. Six Star shakes can be found in Walmart in 4-packs. MuscleTech, which has a deluxe chocolate flavor, is designed to support a quick recovery after athletic activity, a demanding workout or a busy day-to-day schedule. It contains 20 grams of protein, 32 vitamins and minerals, is lactose and trans-fat free, and comes in 12-packs. Shamrock Farms. Rockin’ Refuel, a line of protein-fortified flavored milk drinks has been named “The Official Recovery Beverage of The Patriot League Championships.” The designation gives the brand the rights to use the League marks in advertising and promotional purposes at its retail partners.


While the initial combination of hydration-oriented ingredients certainly played a vital role in the evolution of sports drinks, it’s an ongoing move toward segmentation – the meshing of a product with an occasion – that seems to be propeling the category forward and broadening the field beyond the traditional two-horse race with Gatorade and Powerade.

SPORTS DRINKS SHIFTING INGREDIENTS, MARKETING STRATEGIES By Max Rothman When Kevin Garnett’s endorsement contract expired with Gatorade in December, 2011, he chose to go in a different direction. Garnett, one of the most prestigious and accomplished forwards in NBA history, wanted to partner with a brand that he felt better represented his healthy, yoga-dependent lifestyle. A few months later, Garnett signed with ZICO, the coconut water brand. “He believed in his lifestyle,” said Bill Lange, ZICO’s VP of marketing, “And his diet was a better fit with what we were all about than who he was with before us.” Garnett told reporters that ZICO is light on his stomach because of its low acidity, preventing cramping and allowing him to keep up with the younger stars of the NBA. Garnett’s avowed interest in ZICO also signified a shift -- not just regarding the changing perspective of many athletes toward bever-

52 BEVNET MAGAZINE JUNE 2013

age consumption, but also regarding the gradually changing landscape of the sports drink category. “It comes down to all-natural,” Lange said. “That’s the biggest thing.” While the initial combination of hydration-oriented ingredients certainly played a vital role in the evolution of sports drinks, it’s an ongoing move toward segmentation – the meshing of a product with an occasion – that seems to be propeling the category forward and broadening the field beyond the traditional two-horse race with Gatorade and Powerade. With products that suit any hour of the day and pack a wider range of ingredients, consumers are now seeking sports drinks during times once reserved for water, juice or carbonated soft drinks. It’s this versatility that is maturing the category and widening its scope and marketability. And even the big dogs are paying attention. Gatorade, for example, created the G Series to complement this need-specific trend. Gatorade Prime uses a blend of carbohydrates and B vitamins to deliver energy before athletic activity. Gatorade Perform supports athletic activity with carbohydrates and electrolytes. Gatorade Recover follows this activity and supports muscle growth with 16 grams of protein and electrolytes. The increasing demand for all-natural products has influenced many other developing brands, aside from ZICO, that also mar-


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ket themselves toward active consumers. Lance Collins, founder and CEO of BodyArmor, dubs sports drinks “a flawed category” because of what he identifies as artificial flavoring, a lack of nutritional benefits and high sodium content. “Sports drinks sell themselves on bright artificial colors,” Collins wrote to BevNET in an email asking to not be included in any sports drink roundup. BodyArmor, which Collins calls a “superdrink,” claims to contain double the electrolytes of the leading sports drink, also one banana worth of potassium, 50 blueberries worth of polyphenols, and A, C and E antioxidant vitamins. And in case there was any confusion that BodyArmor isn’t a sports drink, the brand has completely wrapped its bottles in packaging, providing the opposite of the colorful, clear bottles of Gatorade and Powerade. Despite Collins’ nearly manic insistence on categorical individuality, his company certainly favors athletes as endorsers: Buster Posey, the catcher for the San Francisco Giants, Mike Trout, the outfielder of the Los Angeles Angels, and Rob Gronkowski, the tight end of the New England Patriots are among those hawking the brand, and the product is catching on. In April, BodyArmor announced that the Dr Pepper Snapple Group will start distributing its products in New Jersey and Northern California. Garnett’s role with ZICO helped put coconut water directly at what marketers call the “point of sweat,” but it’s the natural qualities of coconut water overall that serve as a point of differentiation and a possible indicator of the future direction of sports drinks. While still providing hydration via five electrolytes, potassium, sodium, magnesium, calcium and phosphorous, ZICO itself has been heavily marketed toward sports occasions -- more so than its two largest competitors, Vita Coco and O.N.E. ZICO’s pitch has also paid off in the marketplace. Lange said that the company has nearly doubled in sales each year of its existence. And while that will likely become a challenging goal as ZICO continues to grow, Lange feels confident that the still-encouraging growth will be sustainable. As of February, Coke started to distribute ZICO nationally, opening the once-miniscule company to a wider range of consumers. “That just opens doors to the power of the red truck system,” Lange said. To comply with this national launch, ZICO had to make a few adjustments in its business plan. When Mark Rampolla founded the company in 2004, he focused exclusively on targeting the Bikram Yoga crowd. Once the product gained some steam, he widened his marketing scope toward endurance athletes. Now, as a national brand, ZICO markets toward what Lange called “try-athletes,” which includes cyclists, distance runners, yoga practitioners and more. This broader demographic fits ZICO’s rapidly growing business. “It’s much more mainstream,” Lange said. “We don’t want to be just about that hyper-competitive group. We want to be about anybody who sees the value in living a healthy lifestyle.” This approach coincides with the overall category’s aim for occasion-based consumption; a goal that overlaps other catego54 BEVNET MAGAZINE JUNE 2013

ries, as well. Caffeinated, coffee-flavored coconut waters, such as ZICO Latte, Coco Cafe and a variety of RealBeanz, offer consumers an alternative to a sugar-filled canned coffee. Lange said he’s been told that some consumers choose ZICO chocolate instead of a candy bar; it craves the sweet tooth, but contains less sugar and less calories than standard desserts. “When you make healthy choices for yourself, you just feel better,” Lange said. “And it’s kind of a self-fulfilling prophecy.” On the smaller side of things, Golazo serves as an example of another beverage marketed toward active consumers, but one that banks on soccer (futbol, for all you purists) as its key branding hook. This also follows the idea of occasion-based marketing. A soccer ball sits on the front of Golazo bottles and cans below the brand’s slogan: “born to score.” Even the title, Golazo, has a soccer connection; it’s what some Spanish players scream after scoring a goal. “We’re not just going after the soccer mom. We’re going after any soccer fan and soccer player. This is the passion brand for soccer,” Golazo cofounder Richard Tait told BevNET. “We live it, breathe it, we want to fuel football.” Golazo throws another twist into the shifting web of sports drinks; it’s all-natural and contains coconut water, but also uses non-GMO ingredients, offers less sodium than the leading sports drinks, and offers both energy and sports hydration options. It’s this versatility and functionality that seem to be hallmarks of the future of beverages for active consumers. Golazo has focused on refined markets that have clearly expressed an interest in soccer. Perhaps the company will go national if the U.S. ever fully embraces soccer. Until that unlikely event occurs, Tait has helped place his products in 1,600 stores in eight states throughout the West Coast, including all Safeway and Whole Foods stores in the region. He also believes that because soccer is the world’s most popular sport, in time, Golazo has the potential to become an international brand. While ZICO and Golazo both source natural electrolytes from coconuts, A-GAME uses sea salt minerals as its alternative to replenish the body’s water and electrolytes. It also offers eight vitamins, minerals and carbohydrates, furthering its role as a functional sports drink. A-GAME, which is based in Orlando, Fla., announced in April that it secured national distribution across 3,000 GNC locations. A-GAME’s expanding distribution results from the growing demand for products catered toward another kind of consumer; the kind that doesn’t win gold medals or consistently pass finish lines. Similar to ZICO – and to Body Armor – A-GAME markets itself as a cross-functional product compatible for both the health-conscious consumer or the sports enthusiast. These aren’t new kinds of consumers. It’s simply the genesis of brands targeting them in a direct manner. “You don’t want to just be about elite athletes,” Lange said. “And you look at some of those sports drinks, they feature elite athletes on the TV commercial, but you know that the construction guys and the hungover kids and people are drinking it for all uses.”


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BRAND NEWS

Sports Drinks

iXL Elite Hydration contains no sodium and

high potassium to hydrate and quench thirst. Every bottle sold benefits Big Brothers Big Sisters of America, a non-profit organization with a mission to help children reach their potential with mentors. All In Beverage, LLC now packages A-Game

in a 16 oz. PET bottle and has removed sucralose. The product uses honey for flavor and energy, and sea salt as a natural alternative to replenish the body’s water and electrolyte levels. To complement nationwide distribution in GNC stores, A-Game is now available in cherry-pomegranate. This flavor joins the citrus and tropical flavors, which are distributed by Albert’s Organic and can be found online at www.ThirstMonger.com. 989 On Demand is a vitamin hydration beverage that contains five electrolytes, nine vitamins and 84 minerals. The product’s patented cap is a two-piece unit that aims to hold the liquid in an airtight chamber to ensure freshness. Consumers are advised to turn the top of the cap clockwise to release the beverage and then twist it back counterclockwise to close the top. 989 On Demand contains no calories, preservatives or additives, and is available in six flavors — orange, grape, pomegranate blueberry, lemon lime, punch, and kiwi strawberry. Alley Oop by Youthopia Beverages aims to

provide a healthier, great-tasting beverage to tweens, teens and young adults and to support an active lifestyle. The company says that Alley Oop was founded by a health- and fitness-inspired doctor and has the vitamins and taste that young people need and parents want for their children. PowerCoco, a natural electrolyte sports

drink, has secured distribution throughout the majority of the coasts. DSD distributors such as Exclusive, Avansar, Columbia, Saccani and GBL were already on the team, but PowerCoco has gone national with UNFI, KeHE and DPI. It has also secured distribution in 7-Eleven, Wegmans and Whole Foods in key markets, and international distribution in Canada and abroad. Carmelo Anthony, the NBA’s scoring title holder, joined the PowerCoco team.

56 BEVNET MAGAZINE JUNE 2013

PowerICE is a frozen hydration bar with no high fructose corn syrup, artificial flavors, colors or stimulants. The company claims that the bars are ideal for athletes, children and adults, and advises consumers to put PowerICE in the freezer, let them freeze and enjoy. The product comes in two flavors: lime kicker and orange blast. BANG, which contains COQ-10, offers a soda alternative that has no sugar or calories, and provides amino acids to fuel the body. BANG recently became the official energy drink of the NHL’s Florida Panthers and the BB&T Center, the home of the Panthers. Hydro One Premium Beverages are pasteurized, made with reverse osmosis water, and contain only FDA-approved ingredients that are gluten free. The non-carbonated BODE Sport beverages are high in potassium, contain natural energy boosters D-Ribose and COQ-10, and have half the sodium, calories and caffeine of competitors, according to Hydro One. H20 Overdrive, which promotes intracel-

lular hydration, comes in 20 oz. bottles and contains eight grams of protein, 21 grams of carbohydrates and three grams of sugar. H20 Overdrive HYDRATE comes in 16 oz.

bottles and contains electrolytes, protein, carbohydrates, more than 30 vitamins, minerals and amino acids to also promote intracellular hydration and performance. It has no sugar. Greater Than will launch revamped packaging this summer. The coconut water-infused sports drink will move from a 20 oz. to 16 oz. bottle that retains the same shape as the original package. The new size will feature a full sleeve wrap and places emphasis on the functional attributes of the beverage. PepsiCo. Gatorade has removed brominated vegetable oil, an ingredient used to prevent colors and flavor from separating, from its products. The company cited consumer concerns and a negative perception about the ingredient as the reasons for its removal.


By Chris Furnari

There’s an old Irish proverb that goes something like “when the apple is ripe, it will fall.” If recent statistics are any indication, the time is ripe for U.S cider makers, and a hail of apples is on the way. Sales of U.S. hard cider tripled over the five-year period from 2007-2012, reaching about $600 million, according to marketanalyst firm IBISWorld. While that’s a fraction of the $10.2 billion in craft beer sales from 2012 – craft beer being the obvious analogue to cider – many of the dynamics are the same for the category and it’s starting to get even more attention, particularly as it gathers momentum among consumers. David Sipes, a senior brewing manager and cider maker at Boston Beer Company – which produces and markets the Angry Orchard line of hard ciders – said that craft beer drinkers and cider drinkers share many of the same qualities.

58 BEVNET MAGAZINE JUNE 2013

“Much like craft beer drinkers, cider drinkers are interested in exploring new flavors and are looking for beverages crafted with care, integrity and high quality ingredients to please their adventurous palates,” he said. “We’ve found that fans of Angry Orchard are looking for an alternative to wine and beer and enjoy Angry Orchard on its own or even as a cocktail ingredient.” Since rolling out nationwide last April, Angry Orchard has grown to become the second-biggest cider brand in the U.S., behind Woodchuck Hard Cider, owned by the Vermont Hard Cider Company. That company was bought by the Irish cider company C&C group for $305 million


late last year – a payday that indicates the attention the category is getting. While Woodchuck has been around more than 20 years, Angry Orchard is fast taking advantage of its parent company’s distribution network and reputation. The brand now makes up about 38 percent of total U.S. cider sales. Vermont Hard Cider CEO Bret Williams said he isn’t too concerned about the competition’s growth, attributing it to category expansion. “They are driving a lot of awareness for cider and putting it on draft in places we haven’t been able to before” he said. “In the short term, there are some pain points, but for the long term, it is great for the category.” Case in point, sales of the 22-year-old Woodchuck brand were also up in 2012, to the tune of 24 percent. The company paced the cider category with 2.8 million cases sold, and growth was consistent with what is happening category-wide. Symphony IRI numbers for the 52-week period ending March 24 peg total dollar sales in U.S. multi outlets and convenience stores at $122.5 million for the top 20 cider brands, up 97 percent over a year ago. So why is cider growing? Williams said that craft beer and cider share many similarities: Small batch sizes, innovative product offerings, go-to-market strategies, familiar package sizes and access to retailers through a well-trained beer wholesaler network have helped the category grow alongside craft. And while those factors have contributed to the surge in sales, both Williams and Sipes believe there is plenty of room for even more growth. “We’ve found that hard cider is relatively unknown – some people don’t know what hard cider is, how it’s made, whether it’s carbonated or not, or even if it’s actually a beer,” said Sipes. “There’s a lot of room to educate drinkers and retailers about the history of cider, the cider making process, and different styles.” That education process should get easier as giant global companies like Anheuser-Busch InBev (AB-InBev) and MillerCoors begin their own forays into cider with offerings like Stella Artois Cidre and Crispin. They’re also pushing further into the larger “apple space,” with hybrid beer offerings like Shock Top Crisp Apple and Redd’s Apple Ale, 60 BEVNET MAGAZINE JUNE 2013

products that could help draw even more mainstream attention to cider. “I think it can be very big,” Paul Chibe, the vice president of U.S. marketing for AB-InBev, said during a recent industry conference. “I would look at how much can we get from white wine. It is drunk for refreshment and we have an opportunity to serve that consumer occasion and need.”

Chibe wasn’t the only presenter to bring up the category, either. At the same event, Michael Binstein, the CEO of retailer Binny’s Beverage, peered into his crystal ball, advising attendees not to “take their eye off the cider category.” “It is a sleeper,” he said. “It is growing and I think it is a healthy sub category because it casts a wider net of customers.” That’s why more craft beer companies like Boston Beer Company, Stevens

Point Brewery – which produces and markets Ciderboys Cider Co. products – and Craft Brew Alliance – which recently launched Square Mile Cider Company and also markets the Redhook, Kona and Widmer Brothers beer brands – are jumping on the bandwagon. There are some headwinds: there’s a confusing tax code issue for cider producers that can inhibit some innovation, as its beer and wine-like attributes cause it to float between various regulations. When the alcohol-by-volume of cider exceeds 7 percent, it’s taxed like wine, which carries a higher penalty than beer. And to complicate things further, when carbonation levels in the beverage reach a certain level, a ‘champagne-like’ luxury tax is also enforced. Smaller, innovative cider makers experimenting with the same types of barrel-aging techniques popularized in the craft beer space are pushing for legislation that would change the law and allow them the flexibility to make 8.5 percent ABV offerings without the additional penalty. Proponents of the CIDER Act say that would encourage more variety. Beyond that, the growth of cider is still taking place largely in the shadow of craft beer, and it is fighting for many of the same tap handles against a 2500-sku Hydra of craft beer brands. Beer Marketer’s INSIGHTS estimates that total cider volume in the U.S. is about 7.5 million cases, while total beer is about 2.7 billion cases. Still, as consumers try to fight their way through the many new beer styles and concentrations, the idea of a nice, dry cider might be just the ticket. It’s certainly been that way in Europe for many years, where cider represents a much more significant portion of the beer market. And just as craft brewers looked to Europe in developing a “better beer” category that has seized so much of the share of premium brands in recent years, Williams thinks that cider will continue to grow to parallel European tastes as well. “It’s all about education,” he said. “Cider is, in a lot of ways, where craft beer was 20 years ago. It has to evolve over time and there is no magic bullet. I think one of our biggest challenges will be convincing on-premise retailers to carry more than one cider option. There is so much upside potential to earning one or two draft handles, could you imagine if [cider] had 10 in some accounts?”


Summer Fancy Food Show 2013 Where: Jacob Javits Center, New York, NY When: June 30 – July 2 Show Hours: Sunday, June 30, 10 A.M. – 5 P.M. Monday, July 1, 10 A.M. – 5 P.M. Tuesday, July 2, 10 A.M. – 4 P.M.

Company Name

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Company Name

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4178

Honest Tea, Inc.

2744

Aliseo Foods

4207

Indian River Select LLC

5305B

Brands of Britain LLC

2048

ITO EN (North America), Inc.

4450

Brands Within Reach

5163

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4947

Brooklyn Brew Shop LLC

4717

Liberty Richter

1636

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954

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Bruni Glass Packaging Inc.

4101

Luke’s Heirloom Tomato Juice

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1066

Manhattan Special Bottling Company

2145

California Milk Advisory Board

267

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4506

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5147

NUMI Organic Tea

2766

Christmas Milk

5338

OatWorks

5609

Ciao Imports

4153

Pelican Bay Ltd.

City Bakery Hot Chocolate

5215

Powell & Mahoney

4803

Demitri’s Gourmet Mixes

4408

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3066

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1356

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726

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3870

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726

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4758

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4766

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540

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4922

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745

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4404

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4444

IFT Annual Meeting & Food Expo 2013 Where: McCormick Exhibition Center, Chicago When: July 13 – 16 Show Hours: Sunday, July 14, 12 P.M. – 5 P.M. Monday, July 15, 10 A.M. – 5 P.M. Tuesday, July 16, 10 A.M. – 4 P.M.

Keynote Speaker: Dr. Fareed Zakaria

62 BEVNET MAGAZINE JUNE 2013

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PROMO PARADE

Promotions, events and specials for the industry

Chivas Toasts Opening Night at Cannes as on of the Official Suppliers to The Great Gatsby Film Premier Party Chivas Regal 25, the world’s original luxury whisky, was one of the official suppliers to The Great Gatsby film premiere party on the Opening Night of the 66th Festival de Cannes. Marking a fifth consecutive year as official sponsor to the festival itself, Chivas Regal 25 has a heritage of luxury and exclusivity, making it the perfect drink to toast the silver screen legends and the glamour of the world’s most prestigious film festival. To celebrate the launch of The Great Gatsby at the exclusive Cannes film premiere party, Chivas served a bespoke menu of themed cocktails, named after the well-known characters in F. Scott Fitzgerald’s iconic story. Celebrating the opening of the 66th Festival de Cannes, the event is set to be the pinnacle of the festival program and a sensational night of 1920s glamour. In addition to this event during the festival, Chivas will also host more than 75 VIPs from around the world as part of a unique 24-hour VIP experience that celebrates the legendary glamour of Cannes and Chivas Regal 25. Guests will enjoy a night at the iconic Grand Hyatt Cannes Hôtel Martinez, a red carpet makeover at the Chivas Regal Salon 25, a view of Cannes from the harbour aboard the Chivas 25 Yacht as well as entertainment at Bar 1909 in Chivas House on the legendary Croisette. Guests will also be treated to a private dining experience at two Michelin starred La Palme d’Or where they will enjoy a bespoke tasting menu, pairing Chivas cocktails with the finest seasonal French Cuisine, created by Chivas Global Brand Ambassador Max Warner and chef Christian Sinicropi.

Big Red Launches “Sweet Smooth Summer” Giveaway Program Big Red Inc., America’s original and best-selling red soda, will give away thousands of summer-themed prizes through the end of August. Sweet Smooth Summer themed Big Red and Big Red Zero packaging will drive consumers to BigRedPrizes.com where they can win summer themed Big Red collectibles. “A summer rewards program is perfect for Big Red,” says Thomas Oh, SVP of Marketing at Big Red, Inc. “Things you think of when you think of summer – barbecues, ice cream floats, and backyard parties aren’t complete without Big Red. Sweet Smooth Summer will give our fans the chance to celebrate the summer with Big Red and a unique selection of fun prizes.” During the promotion, specially-marked packages of Big Red and Big Red Zero 20 oz., 2 L and 12-packs will contain codes redeemable for points that consumers can exchange at BigRedPrizes.com for summer themed collectibles. Thousands of prizes will be awarded to fans, including Coleman Road Trip grills, YETI coolers, t-shirts, beach blankets, mini fridges, cotton candy and snow cone machines. All promotion entrants will also be automatically entered into a sweepstakes to win the grand prize: an outdoor theater system including a 12’ inflatable movie screen with projector and DVD player.

Manzanita Sol Introduces “Haz Lo Diferente,” Inviting Everyone to “Do What’s Different” Manzanita Sol has unveiled its new “Haz Lo Diferente” campaign, inviting consumers to embrace their own uniqueness and “Do What’s Different.” In addition, two new flavors – Mango Citrus Sol and Pina Sol – join the current portfolio which includes Manzanita Sol, Toronja Sol and Tamarindo Sol. To bring the campaign to life, Manzanita Sol enlisted world-renowned percussionist, Rafael Padilla, and international flautist,Pedro Eustache , to create the music for the brand’s award-winning TV 64 BEVNET MAGAZINE JUNE 2013

commercial using only Manzanita Sol bottles, caps and straws, showcasing a truly creative and unique production technique. Manzanita Sol ambassadors will begin sharing how they “Do What’s Different” in their hometowns across visual arts, music, mixology and fashion. Ambassadors include: Carlos Donjuan, a visual artist from Dallas, Texas; Antonio & Jesus Estrada, fashion designers from San Diego, Calif.; Goldie Garcia , visual artist and jewelry maker from Albuquerque,

N.M.; Sergio Serna , mixology expert from Chicago, Ill.; Jorge Villanueva , musician from Los Angeles, Cali. Beginning May 31 through October, Manzanita Sol will visit major Hispanic festivals and retailers in California, Texas and Chicago to give consumers an opportunity to sample all five flavors in unique and unexpected ways – while doing the limbo, hitting a pinata, playing the drums, dribbling a soccer ball – and share photos of those fun experiences via their social channels.


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PROMO PARADE

Promotions, events and specials for the industry

Brewery Ommegang’s Hop Chef Competition Heads to Boston Brewery Ommegang and SAVEUR Magazine are teaming up for another edition of the national culinary competition, Hop Chef. Hop Chef, which challenges chefs to create the perfect ‘beer and food’ pairing, makes its Boston debut on June 26 at 7:00 pm at the Cyclorama at the Boston Center for the Arts. This event is the second of four regional competitions pitting chef against chef, each vying to compete for national Hop Chef honors later this year at Ommegang’s annual “Belgium Comes to Cooperstown” festival. Hop Chef is part of Ommegang’s Great Beer Deserves Great Food initiative — dedicated to the advancement of great beer as a perfect complement to fine fare. This year, Ommegang and SAVEUR use the Hop Chef platform to bring together beer lovers, iconic chefs and local food purveyors to benefit an important cause in each participating city. In Boston, proceeds will benefit the Boston Center for the Arts which focuses on performance and visual arts and connecting art to the community. Funds raised through Hop Chef benefit food-related programs at the BCA. Hop Chef Boston features Joshua Smith of Franklin Café, Brian Young of Citizen Public House, Andy Husbands of Tremont 647, Michael Lombardi, Jr. of The Salty Pig, and Josh Harrison of Publick

House. Each chef prepares a dish paired with an Ommegang ale then presents and defends their dish to a panel of local and national food critics. In addition to reaping Beantown bragging rights, the winner has an opportunity to compete for the grand prize in Cooperstown, which includes a 12-month position on the SAVEUR Magazine Taste Makers Board, a showcase area with Brewery Ommegang at SAVEUR’s Summer BBQ 2014, and a showcase at StarChef’s International Chefs Convention 2013. Secondary prizes are provided by cosponsors and culinary leaders StarChefs, VerTerra, Shun, Lodge, Cuisinart, GelPro, Epicurean, T-Fal, and Bioletti. 300 guests will get to watch, sip, and taste dishes served sustainably on VerTerra dinnerware as the culinary competition heats up and the chefs each present their dishes to the judges. The winning chef goes on to compete against other national winners at Ommegang’s “Belgium Comes to Cooperstown” Festival on August 2-4 in Cooperstown, N.Y. where the 2013 HOP CHEF Champion will be crowned.

Muscle Milk Launches Limited Edition Bottles Featuring Four Major League Baseball Teams CytoSport, the parent company of Muscle Milk, launched limited edition bottles featuring the Chicago Cubs, Chicago White Sox, Los Angeles Dodgers and Texas Rangers to celebrate the 2013-14 baseball season. The 14 oz. ready-to-drink bottles are available now at retail outlets in and around their respective markets. “This is a fun way we can activate these partnerships and allow fans to show their support for their hometown team,” said CytoSport vice president of sports marketing Chris Kildow. “We are a proud supporter of each organization represented on these bottles, and this unique cobranded packaging is a great way we can showcase our support for these partnerships and teams.” The White Sox and Dodgers bottles are available in the Chocolate flavor, the Cubs bottle is available in the Cookies N Crème flavor and the Rangers bottle is available in the Vanilla Crème flavor. The commemorative bottles feature the teams’ official logos and colors and are part of larger marketing partnerships that include a variety of product and marketing elements to be activated throughout the season. 66 BEVNET MAGAZINE JUNE 2013

San Francisco Giants & Mumm Napa Team Up to Launch Two Napa Valley Sparkling Wines Mumm Napa, one of California’s top sparkling wine houses, and the World Champion San Francisco Giants have teamed up to create two new Napa Valley sparkling wines. The new superpremium sparkling wines are licensed by Wine by Design, the official wine licensee for Major League Baseball Properties. Championship Brut, a super-premium, limited edition bottling created to commemorate the Giants’ 2012 World Series Championship, and San Francisco Giants Brut Prestige are available at AT&T Park, select restaurants, bars and retailers, and can be found online at sfgiants.com/wine. “Mumm Napa and the San Francisco Giants is an ideal pairing,” said Ludovic Dervin, Mumm Napa’s winemaker (and an avid Giants fan.) “We’re both interested in celebrating life’s victories – whether they are on the baseball field, at the ballpark, or in your home – and hope that these new wines will bring that same feeling of victory and celebration to Giants and Mumm Napa fans alike.” Mumm Napa wines will be featured at tastings during select games, in the ballpark at special events throughout the season, and during team celebrations. Every Giants player will receive a bottle of the Championship Brut with a one-of-akind etched label featuring their number and name.


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