BevNET Magazing June 2014

JUNE 19, 2014

NEW HORIZONS IN MEAL REPLACEMENT

ENERGY DRINK TAKEOVER: WILL THEY REPLACE CSDs

BEVNET LIVE SUMMER 2014 RECAP

SUMMER FANCY FOODS & IFT SHOW PREVIEWS

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®

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Columns 4 First Drop Whodunit?

6 Publisher’s Toast Guaranteed Controversy 22 Gerry’s Insights The Big Break-Up

Departments 8 BevScape Investment, Manufacturing, Executive Moves

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Contents • Volume

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12 • No. 4

56

Features

On the Cover

36 Energy Drink Takeover Will they Replace Soda with Brand News

46 Drinking to Live New Horizons in Meal Replacement

Conference Recap 26 Brewbound Craft Brewers Conference and NBWA Road Trip

14 New Products Bai’s New Flavor

30 BevNET Live Summer 2014 BevNET Live in Review

18 Channel Check Big Moves for NOS

Conference Preview

56 Promo Parade Jim Beam’s Milestone

52 Fancy Foods Show Summer 2014, NYC

JUNE 19, 2014

NEW HORIZONS IN MEAL REPLACEMENT

ENERGY DRINK TAKEOVER: WILL THEY REPLACE CSDs

BEVNET LIVE SUMMER 2014 RECAP

SUMMER FANCY FOODS & IFT SHOW PREVIEWS

cover.indd 1

6/6/14 5:50 PM

COVER PHOTO COURTESY OF RUMBLE

54 IFT 2014 Institute of Food Technologists 2014 Show, New Orleans

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.

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By Jeffrey Klineman

Finding the Diet Cola Culprit As whodunits go, it’s not exactly Murder on the Orient Express, but the causes for the slow bleed-out of the diet cola business are still worth exploring, both because of the multiple suspects in the game and because of the ongoing industry ramifications.

There are those who hear the numbers – Diet Coke and Diet Pepsi were each off nearly 7 percent last year in the U.S. – and immediately look to finger consumer concerns about artificial sweeteners – however founded or unfounded those concerns may reasonably be.

Certainly the latest evidence, a study from Europe released in December, seemed to take Aspartame off the hook, but for many consumers, the existence of a study is as much of a sign of guilt as its results (or, as my dad would note, upon perusing the label of a 60-calorie Honest Tea, “Ugh! It has sugar!” before ordering a Gatorade).

So fear of artificial sweeteners could be one explanation, but it’s hard to imagine it’s the full story, particularly given the growth of a pair of carbonated challenger brands, Zevia and Sparkling Ice. Zevia, of course, uses the all-natural sweetenerof-the-moment, Stevia, and Sparkling Ice uses sucralose (i.e. Splenda), which has had its own problems in the public eye, but certainly isn’t affecting that brand’s runaway expansion.

Now, we’ve heard from numerous folks who would likely benefit from fear of artificial sweeteners – including Zevia owner Paddy Spence himself – that the fear isn’t what’s driving the move away from diet sodas so much as the desire to add natural elements to one’s lifestyle – particularly when a product like stevia has evolved into a pretty good sweetener over the past few years. There’s a delicate difference there, and it’s not quite enough to account for either the ongoing growth of Zevia – it’s arcing toward $60 million this year – or the much more drastic decline of diet colas overall.

More in line is the growth of Sparkling Ice, heading for about $500 million in revenue this year. CEO Kevin Klock attributes the decline in diet colas not so much to fear of Aspartame but fatigued

4 BEVNET MAGAZINE JUNE 2014

taste buds. According to Klock, there’s a large movement away from the Cola flavor profile itself; certainly, the growth of his brand and of Zevia speaks to that theory – they have more than 30 non-cola varieties between them, and Sparkling Ice doesn’t have a single cola in its 17 varieties. Klock’s argument is that the American palate is moving more to lighter, fruitier, more natural-tasting (if not naturally composed) flavors.

“If you look at the soda aisle,” Klock said, “They’re tired of the taste of just cola and lemon-lime.”

And the overall beverage flavor trend has gone that way, both in carbonated and in non-carb. Even Red Bull has berries at its base, while cola-flavored energy drinks haven’t broken through. The ongoing growth of Mountain Dew also speaks to the shift from colas as the CSD flavor of choice.

Energy drinks and their growth also have to be interrogated as suspects in the assault on diet colas. Our Managing Editor, Ray Latif, discusses the category’s overall impact on CSDs in his story this issue, but the impact on diets is obvious – more kids drinking energy drinks mean that when they start to cut the sugar they aren’t going to switch to, say, Diet Pepsi, they’ll switch to Rockstar Zero – that is, if they’re sticking with carbonates at all.

The weight of the evidence points not so much to any fear, but in fact to a generational shift away from CSDs (Klock would argue away from colas, anyway) overall.

Kids drink what their parents drink, and as the cohort of cola drinkers thins, fewer kids are picking up the Cokes that their parents do. They aren’t then “stepping down” to Diet Coke or Diet Pepsi. Getting CSDs out of the schools might have been a great PR move in that regard, but it took a point of entry into users’ lives out of the equation.

The numbers are bearing it out: fullcalorie cola consumption among the crucial 12- to 17-year-old age group dropped 10 percent from 2005 to 2012, according to a report from Morgan Stanley, while energy drinks, teas, and sports drinks all increased (the investment bank didn’t even factor bottled water into the study). A lower decline in diet colas over that period – about 2 percent – is a falsely faint pulse; it’s the full calorie cola drinker who eventually switches to diet. The share is really shrinking, and it’ll keep going.

A recent look into the topic by our friends at Kantar WorldPanel told us that diet drinkers remain the same percentage of soda drinkers overall – but the number of soda drinkers have gone down.

“There’s definitely penetration losses,” Kantar’s Kerry Corke told us.

So who is killing diet cola? Looks like it might be all of us, including Father Time.

MAGAZINE

By Barry J. Nathanson

www.bevnet.com/magazine

Guaranteed Controversy

Barry J. Nathanson PUBLISHER bnathanson@bevnet.com Jeffrey Klineman EDITOR-IN-CHIEF jklineman@bevnet.com Ray Latif MANAGING EDITOR rlatif@bevnet.com

Max Rothman STAFF WRITER mrothman@bevnet.com Chris Furnari BREWBOUND EDITOR cfurnari@bevnet.com David Eisenberg STAFF WRITER deisenberg@bevnet.com

SALES John McKenna DIRECTOR OF SALES jmckenna@bevnet.com

I apologize, but I must immediately digress into my sports analogy mode as my New York Rangers won a heart-stopping clinching game against Montreal last night to advance to the Stanley Cup finals.

What does it have to do with my column’s theme? Don’t worry, I’ll connect the dots.

When the Rangers last won the Cup, 20 years ago, their captain, Mark Messier, made a guarantee in game 6 of the semifinal round that they would win that game. They did, and went on to storm through the finals. The rest is history for the Blueshirts.

So, with guarantees on my mind, I decided to re-visit a guaranteed point of contention I’ve covered for 20 years now.

They say that aside from death and taxes, there are no guarantees. Everything is up for grabs, subject to the ebbs and flows of society. War and peace, boom and bust times of the economy, marriage and divorce, the success and failure of businesses, all these are a reflection of life. You get the point. Nothing is a given, except for two things: First, that I will inevitably revert to cliches in my columns. The second, and more relevant here, is retailer demand for slotting allowances.

At our recently completed New York edition of BevNET Live, the conversations about slotting permeated the hall.

The insistence of retailers to essentially be paid for shelf space abounded. But it is a practice that should no longer be in the playbook for the beverage industry.

The marketplace has changed over the past 20 years. Control had been in the hands of the big guys as they fought to take the lion’s share of shelf space. It became a war of the dollars, merit and

innovation be damned. While I don’t blame the retailers for taking the money, it was really being thrown at them. Also, there wasn’t a whole lot of creativity and entrepreneurial spirit entering into the mix to offer as an alternative.

That was then, and this is now. There is a plethora of exciting and innovative brands entering the marketplace. They are obviously small, and need to be given a chance to compete, because the big guys are on a downward slide. But the onerous demand for upfront money, the practice of the big guys, is stifling the entrepreneurs’ chances for success – and that’s a proposition that will cause retailers themselves to go in the wrong direction and lose consumers if they continue to ask for unreasonable payments.

If business is supposed to be a partnership, with shared risk and reward, then why are retailers only comfortable with the reward side of the equation? If they believe in the potential of a brand, they should put some skin in the game. Slotting is a disincentive to help promote a brand.

If you’re getting the money upfront before you’ve committed time, effort and manpower to the product, you have no real investment in it – but the consumers do, and they’ll go the other way.

I understand that there are risks and costs to working with a new brand, but if you believe in it, and you’re taking it on means you do, then don’t stack the odds totally in your favor. You’ll quickly find yourself out of step.

Rewards should be paid for effort and striving to help a brand, not because you have the clout. Give more brands a break, and the rewards will come. I guarantee it.

Adam Stern SENIOR ACCOUNT SPECIALIST astern@bevnet.com

John Fischer ACCOUNT SPECIALIST jfischer@bevnet.com

Jon Landis SALES OPERATIONS jlandis@bevnet.com ART & PRODUCTION Matthew Kennedy CREATIVE DIRECTOR Aaron Willette SENIOR DESIGNER BEVNET.COM, INC. John F. (Jack) Craven CHAIRMAN jfcraven@bevnet.com

John Craven CEO & EDITORIAL DIRECTOR jcraven@bevnet.com

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BEVSCAPE

The latest news on the brands you sell

MANUFACTURING Probiotic Proof Point; Ocean Spray Squeezes More Capacity

Yakult, a probiotic dairy beverage popular in Japan and sold in over 30 countries, is getting a big boost in the U.S. with the launch of a new state-of-the -art production facility in Southern California that is capable of producing 400,000 bottles per day.

Yakult U.S.A. Inc., a subsidiary of Yakult Honsha Co., Ltd., opened the new Fountain Valley, Calif. plant on May 16 after nearly two years of construction.

The 76,800 sq. ft. facility will enable the company “to provide a more stable supply source” of its products instead of importing from Mexico, according to a company statement. Yakult U.S.A. stated that 2013 sales averaged about 182,000 bottles a day, a 112.6 percent increase over 2012, and expects demand to continue rising.

In the U.S. Yakult drinks are packaged in 2.7 oz. plastic bottles topped with a foil seal. Available in regular and “light” varieties (sweetened with sucrose and stevia, respectively), the products are made with skim milk and Lactobacillus casei Shirota, an exclusive Yakult probiotic strain that is said to benefit the body’s digestive and immune systems.

While U.S. sales of Yakult have steadily grown since its American debut in September, 2007, they still represent a relatively tiny part of overall global sales of the company’s products, which Yakult esti-

mates at approximately 30 million bottles per day. Nevertheless, U.S. consumers are increasingly including probiotic food and beverages as part of their daily diets, and it’s clear that Yakult is looking to gain a larger share of the market.

Meanwhile, Ocean Spray recently celebrated the grand opening of its new production facility in the Upper Macungie Township of Pennsylvania.

Upon its completion later this year, the facility, about 60 miles northwest of Philadelphia and about 110 miles west of New York, will handle approximately 40 percent of the company’s North American volume and will produce more than 30

million cases of Ocean Spray juice per year. The company has already created 180 jobs at the new facility, according to a company release.

In April 2012, the company broke ground on the 44-acre site. Since that time, more than 1,000 men and women have contributed about 350,000 hours of labor to construct the 300,000 square-foot plant.

“The Grower-Owners of Ocean Spray Cranberries have made a major investment here in Pennsylvania and today’s celebration is the result of a lot of hard work by our employees and partners on this project,” Randy Papadellis, president and CEO of Ocean Spray, said in the release.

PHOTO COURTESY OF THE AGRICULTURAL RESEARCH SERVICE

8 BEVNET MAGAZINE JUNE 2014

INVESTMENTS

VEB and L.A. Libations Tie-Up In a move that ties Coke’s Venturing and Emerging Brands group tightly to one of its most valuable service providers, the brand incubation unit purchased a minority stake in L.A. Libations, which has handled much of the go-to-market and channel expansion strategies for many of VEB’s products.

The move will put L.A. Libations, which has recently begun investing in and developing brands of its own, in the position of acting as an innovation resource for its new investor. VEB itself has had more success thus far by following the strategies of investing in brands early, like Zico and Honest Tea, and also by partnering with other companies to create products, as with its Illy issimo RTD coffee brand. But VEB’s internally innovated brands have been more of a mixed bag, as products like Cascal, a fermented CSD, and Sokenbicha, a barley tea, have fallen by the wayside.

Started by three former Coke employees, Danny Stepper, Dino Sarti, and Pat Bolden, in 2009, L.A. Libations has deep relationships with retailers and distributors and has helped shepherd Coke’s brands into several broad channels of trade, including drug, warehouse and supermarket accounts. The company has had great success working with a number of brands outside the Coke system, an arrangement that will not change as a result of the agreement.

Two years ago, L.A. Libations began to more actively create brands, launching Aloe Gloe, an aloe water brand, and incubating it on the West Coast. Earlier this year, the company launched Arriba!, an energy horchata, as a national exclusive in 7-Eleven. The company is also investing in a portfolio of brands that it hopes to grow; with VEB as a partner, it seems likely that the company would have the inside track on growing brands that are targeted for Coke.

10 BEVNET MAGAZINE JUNE 2014

Runa Receipts

Spindrift Awash in New Investment

A second investment round by fast-growing Runa, an organic Amazonian guayusa tea brand, has landed an interesting mix of actor, musician, and industry stalwart, along with a lead investment from a fund with strong CPG ties of its own.

The series “B” round, which came on the heels of last year’s $3 million series “A” round, brought in beverage industry investors Mark Rampolla – the founder of ZICO – and Kim Jeffery, the former CEO of Nestle Waters North America, behind lead investor Rosemont Solebury, a family office associated with the Heinz ketchup fortune.

The total raise was greater than the series “A” but less than $10 million, according to Runa co-founder Tyler Gage, who has a bizarre connection to at least one of the other investors, movie star Channing Tatum. One of Tatum’s earliest roles, in the movie “Step Up,” featured him playing a character named… Tyler Gage.

Beyond Tatum, the round added music industry heft with producers Lukasz Gottwald (known as Dr. Luke, he’s worked with Ke$ha, among others), Mike Dean (Kanye West) and musician manager Coran Capshaw (Dave Mathews Band, Phish).

The star-studded round came from “friends of friends” and growing interest in the brand, Gage said.

That interest may be accompanied by even more exposure now that the brand has closed a deal for six SKUs to enter the Safeway system nationally, giving the “Clean Energy” brand a conventional footprint to accompany its national Whole Foods availability.

On the hiring front, the company has brought on Zico and Vitaminwater veteran T. J. Leenders to run its East Coast sales team – a role that Leenders also held at Zico. Leenders will be dealing with some new DSD accounts as well, as Runa is leaving Blue Coast Beverage in Massachusetts for the larger Polar Bottling company. New Age Beverage, out of Denver, Colo., will also pick up the brand.

According to Gage, Runa sold more than $2 million in product last year – and he expects that amount to triple in the year to come.

Spindrift, which produces a line of premium-positioned sodas and seltzers made with fresh juice and purées, raised a new round of funding worth over $2 million last month.

Based in Charlestown, Mass., and with production facilities on both coasts, Spindrift is now preparing to ramp up distribution beyond the Northeast and California and extend upon its approach of strategic partnerships with like-minded retailers and restaurants, said company founder Bill Creelman.

Creelman said that Spindrift began its search for new capital at the beginning of the year and was advised by Silverwood Partners, a Sherborn, Mass.-based investment bank. The deal is first as part of a long-term strategic relationship between the two companies. Health and wellnessfocused venture capital firm Prolog Ventures led the financing round, which also included funding from several other industry-focused angel investment firms, including New Ground Ventures and Warbros Venture Partners.

Spindrift has seen sales of its products double in each of the last two years, according to Creelman, who expects to see a similar leap in 2014. Some of that boost will come from a foray into the Southeast, where the company expects to make a big push this year backed by the recent hire of a sales director for the region.

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EXECUTIVE MOVES Purely Righteous Exit for Fleishman

Greg Fleishman has left Suja juice to go back to the consulting firm he co-founded, Purely Righteous Foods.

The former Kashi and Coca-Cola marketing executive, who left what he’d called a dream job — heading up marketing at acai based food and beverage company Sambazon — to start the consultancy, found last year that Suja, Purely Righteous’ first client, quickly took precedence.

After a remarkable stretch in-house, however – one that culminated in Suja being named supplier of the year at Whole Foods – Fleishman is returning to the consultancy, one that partner and longtime friend Andrew Aussie incubated during his absence.

Working with Aussie, a former colleague from Kashi, Fleishman said he plans to focus on sustainable health food and beverage companies, refining strategic and marketing approaches.

Fleishman, who had been named Chief Marketing and Strategy Officer for Suja, will continue to consult for the company as it searches for a new marketing chief, according to CEO Jeff Church, who praised Fleishman's work.

12 BEVNET MAGAZINE JUNE 2014

Hoagland COO at ITO EN Praising his “unwavering commitment to high quality products and innovation,” ITO EN North America has promoted Jim Hoagland to Chief Operating Officer.

Hoagland has been with ITO EN North America since August, 2003 and most recently held the role of Executive V.P. of Sales & Marketing for the company, which also announced the elevation of Brad Angevine to the role of Sr. VP, Marketing & Product and Kyoichiro Asai to the position of Sr. VP-Asian & DSD Division.

ITO EN North America, the North American arm of Japan-based ITO EN Ltd., markets a range of tea and coffee brands in the U.S. and Canada, including its popular TEAS’ TEA and Oi Ocha tea brands, Sencha Shot functional drinks and Matcha LOVE platform. Hoagland has played a key role in the company’s sustained investment in innovation, including its first foray outside of the tea segment with last year’s launch of Jay Street Coffee, a line of RTD coffee products.

The company described Hoagland as “an integral part in the business expansion into the natural and specialty markets, mainstream grocery retailers and mass market channels.”

RealBeanz Realignment

Vita Coco, FIJI, AriZona, Sunny Delight, Rockstar, Body Armor and vitaminwater.

Edgell will attempt to expand Brooklyn, N.Y.-based RealBeanz beyond its East Coast footprint.

“Rich has a thorough understanding of the beverage industry and an unmistakable passion for achieving results,” Serge Freund, president of RealBeanz, said in a press release.

BluePrint Founders Depart

BluePrint Juice Founders Zoe Sakoutis and Erica Huss have left the cold-pressed juice company, about 18 months after they sold it to natural products conglomerate Hain Celestial. The pair said “we built a great brand and Hain’s acquisition of the BluePrint brand provided additional opportunities to grow the business.

Erica and I are looking forward to the next chapter in our professional lives.”

Blue Point Gets a President

RealBeanz has hired Richard Edgell as its senior vice president of sales.

Edgell has 25 years of experience in the beverage industry, mostly recently working as the senior vice president at the Dr Pepper Snapple Group. Aside from DPSG, Edgell has generated sales for an impressive cadre of brands such as

Blue Point Brewing has announced that former Goose Island Brewing and Deschutes Brewery executive Mark Hegedus will take over as president.

The news comes less than three months after Anheuser-Busch InBev (A-B InBev) acquired New York-based Blue Point for an estimated $24 million, and three years after the beer giant purchased Chicagobased Goose Island for $38.8 million.

Blue Point was founded in 1998 by Mark Burford and Pete Cotter and is

headquartered in Patchogue, N.Y. Burford and Cotter will continue to serve as senior advisers at Blue Point.

A long-time marketing and sales executive, Hegedus previously developed local and national marketing strategies and programs for Goose Island. Prior to his two-year stint with Goose Island, Hegedus worked with Deschutes Brewery, where he was the director of sales and marketing, Red Bull North America, as an on-premise sales manager, and Coors Brewing Company as a national accounts manager.

policy regulations at the local, state, and federal levels.

“America’s beer distributors deliver enormous economic value to communities across this country,” NBWA president and CEO Craig Purser said in a statement.

“Lester’s work as Chief Economist will augment that great story, and his research will be influential in policy discussions that involve state-based alcohol regulation, the three-tier system and independent beer distributors.”

NBWA Hires an Economist

The Beer Institute Hires a President and CEO

The National Beer Wholesalers Association (NBWA) has hired Lester Jones, formerly of the Beer Institute, to serve as the organization’s chief economist.

In his new role, Jones will examine the economic factors that impact the beer distribution industry, as well as alcohol

Former American Beverage Association (ABA) vice president of government affairs James A. McGreevy III has been named the new president and CEO of the Beer Institute.

McGreevy will lead the trade association’s efforts to represent the beer industry before federal and state lawmakers, as

well as other regulators, when he assumes the role on June 23.

McGreevy had been with the ABA since 2005 and represented the interests of non-alcoholic beverage producers, distributors and franchise companies.

McGreevy takes over for Joe McClain, who left the organization in December.

McGreevy has been deeply involved in the political scene over the past two decades. He served as a lead advance person for John Kerry’s 2004 U.S. presidential bid, as well as the deputy finance director for Skip Humphrey’s 1998 Minnesota gubernatorial campaign. McGreevy also served as the finance director for the DFL Senate Caucus campaign, and was the Northeast Pennsylvania field director for the 1992 Clinton-Gore U.S. presidential campaign

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NEW PRODUCTS

The newest options for cooler and shelf

LEMONADE Honest Tea has released a new line of Summer Refresher beverages that are available in five varieties: Original Lemonade, Berry Hibiscus Lemonade, Mango Lemonade, Mint Limeade and Half & Half Lemonade & Tea. The five limited-edition flavors are organic, sweetened with Fair Trade Certified sugar—a first for the company— and contain 70 calories per 8 oz. serving. The drinks are packaged in 32 oz. glass bottles and sold exclusively at Whole Foods Market locations nationwide through the end of 2014.

The products have a suggested retail price of $2.49. For more information, please call Honest Tea at (301) 652-3556.

JUICE Welch’s has launched Farmer’s Pick by Welch’s, a line of 100 percent juices available in Concord grape, Mango and Blackberry varieties. When batching the juice, Welch’s keeps the kettles cool to help preserve the flavor and aroma of the fruits used to make the juice, which contain no preservatives, no artificial flavors, synthetic colors or ingredients. Farmer’s Pick is available nationally in the juice aisle in 46 oz. bottles for a suggested retail price of $3.29. For more information, please call Welch’s at (978) 371-3623.

CSDs Minta Beverages, Inc. which produces a line of naturally-flavored mint sodas, has announced the expansion of its brand with the addition of Minta Strawberry. The new product delivers the taste of strawberries followed by the refreshing finish of mint as a light carbonation and an aroma of a ripe strawberry with a hint of mint, according to the company. Packaged in 10 oz. slim aluminum cans, Minta products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide for a suggested retail price of $1.49 per can. For more information, please call Minta at (323) 622-8633.

TEA Long Island Brand Iced Tea has launched a revamped look for its line of all-natural teas. The new labels are inspired by white clapboard beach houses and weathered signage of the Hamptons. The beverages

14 BEVNET MAGAZINE JUNE 2014

are brewed with hand-picked tea leaves and contain all-natural fruit flavors and pure cane sugar. The brand is available at retailers including Costco, Sam’s Club, Stop & Shop, Shop Rite, A&P and Key Food for a suggested retail price of $1.00. For more information, please call Long Island Brand at (855) 542-2832.

FUNCTIONAL BEVERAGES Kill Cliff sports recovery drink has extended its line to include a third flavor: LemonLime. The company’s sports recovery drink formula is a proprietary mix of functional, gluten-free, recovery-supporting ingredients including essential vitamins, enzymes, plant extracts and electrolytes. It is specifically designed to replenish micronutrients and support the body’s recovery from strenuous exercise and physical exertion, according to Kill Cliff. The products are packaged in 12 oz. slim cans and contain 15 calories, 25 mg of caffeine and no sugar. The beverages have a suggested retail price of $3.19 per can and are sold at Vitamin Shoppe stores nationwide and General Nutrition Center (GNC) stores. For more information, please call Kill Cliff at (855) 552-5433.

ENHANCED WATERS Cascade Ice recently launched two new zero-calorie sparkling water flavors – Coconut Pineapple and Coconut Mango. The waters contain no sugar, sodium or gluten.

Packaged in 17 oz. slim plastic bottles, Cascade Ice products are available for purchase throughout the U.S. at retailers including Albertson’s, Safeway, Ralph’s, QFC, A&P, Raley’s, Coborn’s, HEB, Market Basket, Shoprite, Food City and Price Choppers, and are sold for approximately $1 per bottle.

For more information, please call Cascade Ice at (425) 267-0959.

Bai, which markets a line of beverages infused with coffee fruit, has launched its tenth variety, Tanzania Lemonade Tea. The antioxidant-rich product is an all-natural version of the classic “Half & Half,” a sweet, tart, and refreshing mix of lemonade and iced tea. The beverage is sweetened with organic stevia and all-natural erythritol and contains five calories per serving. It’s also gluten-free, low-glycemic, Kosher, vegan, GMO-free and soy-free. The beverage is sold across the U.S.

and has a suggested retail price of $2.19-2.29 per bottle. For more information, please call Bai at (609) 586-0500.

ENERGY DRINKS Little Miracles has a launched a new Lemongrass Tea, Orange Juice and Ginger variety to its line of organic tea and superfood fruit juice blends. Like the company’s other products, the beverage is formulated with tea, fruit juice, Panex Ginseng and acai, sweetened with agave and contains 90 calories per 330 mL bottle. Little Miracles drinks are USDA Certified Organic and contain no artificial colors, flavors or sweeteners flavors. The products have a suggested retail price of $1.99 and are sold nationally.

For more information, please call Little Miracles at (310) 938-3300.

KIDS DRINKS BYB Brands, Inc., a wholly owned subsidiary of Coca-Cola Bottling Co. Consolidated, has introduced a new limited-edition flavor to its Tum-E Yummies line of non-carbonated, fruit-flavored drinks. Strawberry-licious

Lemonade is only available in the Southeastern U.S. until the end of September. Like the rest of the Tum-E Yummies lineup, the beverage has 100 percent of the daily value of vitamins B6, B12 and C. The drink is packaged in a 10.1 oz. bottle with a spill-proof sport cap and contains 50 calories per bottle.

The product is available in most retail outlets in convenience, supermarkets, drug, mass and value channels and has a suggested retail price of $0.89-$1.09. For more information, please call BYB at (704) 319-0390.

Liquid Water Enhancers Kickdrop Beverages, Inc. has launched DROP2O, a mint leaf-based water enhancer.

The product comes in six flavors: Orange, Pomegranate, Peach, Watermelon, Strawberry and Spearmint. DROP2O contains no sugar, no artificial sweeteners and no artificial colors. Packaged in 1.62 oz. squeezable bottles with a flip top closure, the products contain 24 servings per bottle and have a suggested retail of $3.99. For more information please call Kickdrop at (214) 264-0269.

JUNE 2014 BEVNET MAGAZINE 15

WINE Bota Box has added a Pinot Noir variety to its line of 3-liter boxed wines. The wine is crafted from Chilean grapes grown within the Valle Central appellation and the coastal regions of Casablanca. The 2013 vintage features sweet aromas of cherry pie, savory herbs and a hint of cola, and features an elegant body of rhubarb, black cherry and clove, leading to a silky finish, according to the company. The inaugural Bota Box Pinot Noir 3-liter is sold nationwide for a suggested retail price of $22.99. For more information, please call Bota Box at (707) 265-1700.

WHISKEY Jack Daniel’s Rested Tennessee Rye is the distillery’s first barrel-matured expression in the rye category. The whiskey is crafted using the same Cave Spring water from the Jack Daniel’s Hollow, proprietary yeast and charcoal mellowing process that’s been used in the distillery’s nearly 150-yearold Tennessee Whiskey recipe. The new recipe of 70 percent rye, 18 percent corn and 12 percent malted barley offers a great balance of flavor that is robust yet not overpowering with rye spice, according to Jack Daniel’s. The spirit is available in a 750 mL bottle with a suggested retail price of $49.99 and is available in select U.S. markets. For more information, please call the Jack Daniel Distillery at (615) 780-3332.

Monument Valley Distillers has added DUKE Kentucky Straight Bourbon to its DUKE Spirits portfolio. Named for American icon John Wayne, the spirit is based on rare batches from the actor’s private collection and meticulously blended to recreate the flavors and aromas preferred by Wayne. The whiskey is small-batch aged in new, heavily charred American oak barrels.

DUKE Bourbon has a suggested retail price of $34.99 and is available in select markets.

For more information, please call The Barn Group at (415) 500-0613.

Diageo’s Orphan Barrel Whiskey Distilling Company has launched Rhetoric. The spirit is a 20-year-old Kentucky Straight Bourbon that is progressively aged and released once per year, allowing whiskey fans to compare differences year over year and see how an

16 BEVNET MAGAZINE JUNE 2014

extra 12 months in the barrel affects the liquid. The Rhetoric whiskey stock was recently found in the old Stitzel-Weller Warehouses in Louisville, Ky. It was distilled in both the New and Old Bernheim distilleries. The whiskey begins with a smoky and leathery nose hinting of ripe apples and tastes of smoked vanilla oak, toasted rye and dried fruit. It carries a long, full finish of cherry blossom and bitter chocolate, according to the company. Supply of Rhetoric is highly limited, and as with the first two releases from Orphan Barrel, Rhetoric, which is 90 proof, is hand-bottled in Tullahoma, Tenn.

The whiskey has a suggested retail price of $85 for a 750 mL bottle. For more information, please call Diageo at (646) 223-2016.

The Balvenie Distillery is celebrating the unique nature of single cask whisky with the second release from its Single Barrel range, The Balvenie 15 year old Single Barrel Sherry Cask, which follows the First Fill 12 year old, which was released in 2013. The whiskey embodies the delights of whisky drawn from an individual cask of single distillation with unique and unrepeatable qualities - no more than 650 hand numbered bottles are drawn from each sherry butt.

Matured exclusively in a single European oak sherry butt for at least 15 years, the limited release garners notes from an Oloroso sherry cask and is characterized by dried fruit richness, nuttiness, and spice, according to the distillery. The spirit is a non-chill filtered release with an ABV of 47.8 percent. It has a suggested retail price of $99.99 and is available is select markets nationwide. For more information, please call the Susan Magrino Agency at (212) 957-3005.

MIXERS Powell & Mahoney, Ltd. has added a new Jalapeño Margarita to its line of handcrafted mixers. The product is a blend of fire roasted Jalapeño peppers and fresh lime juice. Like the company’s existing line of mixers, Jalapeño Margarita is made in small batches, all-natural, and gluten-free. The product is sold at select retailers nationwide and has a suggested retail price of $6.99 for a 750 mL bottle. For more information, please call Powell & Mahoney at (978) 745-4339.

VODKA Grey Goose vodka has launched its newest innovation in the U.S., Grey Goose Le Melon flavored vodka. Crafted by the company’s Maître de Chai (Cellar Master), Francois Thibault, the spirit combines Grey Goose vodka with the essence of ripe, juicy Cavaillon melons. The vodka will is available nationwide at a suggested retail price of $29.99 for a 750 mL bottle. For more information, please call Harrison & Shriftman at (917) 351-8675.

Devotion Vodka, the world’s first gluten-free and sugar-free vodka family, has launched a new sweet tea variety, Tiki Tea. The vodka is made with natural sweet tea flavors sourced from a selection of premium teas from around the world, along with tones of honey and citrus zests. Instead of sugar, Devotion uses an essence process along with natural flavor compounds that promote a mature, light and complex flavor profile for the vodka. Devotion Vodka is available at bars, nightclubs, restaurant chains and grocery/retail stores across the U.S., and has a suggested retail price of $19.99 for a 750 mL bottle. For more information, please call Devotion at (877) 415-3190.

OTHER SPIRITS Berentzen USA has launched Berentzen Bushel & Barrel, a spirit which blends bourbon and Berentzen’s apple liqueur. The new expression features the flavor of crisp, ripe apples along with spicy bourbon notes, according to the company. The spirit has a suggested retail price of $21.99 for a 750 mL bottle. For more information, please call the GuRoux Marketing Group at (856) 630-6331.

Diageo has introduced Captain Morgan 1671 Commemorative Blend, a limitedtime rum that is inspired by Captain Henry Morgan’s victorious raid on the Spanish in 1671. Made with fine St. Croix rum, the spirit is instilled with a unique blend of spices and is finished through Spanish Oak. The spirit is 70 proof and is sold nationwide for a suggested retail price of $19.99 for a 750 mL bottle. For more information, please call Diageo at (646) 223-2019.

JUNE 2014 BEVNET MAGAZINE 17

CHANNEL CHECK

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

SPOTLIGHT CATEGORY

ENERGY DRINKS 52 Weeks through 4/20/2014 SOURCE: Symphony/IRI Total food/drug/c-store/mass.

There’s some shifting down the line and an even bigger shift looming up the line as well. The big encroaching shift is that Monster is getting ever-closer to displacing Red Bull on a cumulative basis for overall sales. While Red Bull’s core offering remains the highest-grossing product in the category, the Monster portfolio continues to power growth. What’s already occurred, however, is that NOS has apparently displaced Rockstar’s core SKU. While the Rockstar portfolio is keeping it #3 overall, NOS is gaining steadily against slowdowns in Rockstar and Rockstar sugar-free. One thing keeping the bad boy brand rolling, however, is the growth of ZERO.

TOPLINE CATEGORY VOLUME 52 WEEKS THROUGH 4/20/2014

Red Bull

$3,508,496,000

9.60%

Monster Energy

$1,264,158,000

5.68%

Monster Rehab

$416,642,600

6.68%

Monster Lo Carb

$306,066,400

-13.11%

NOS

$302,394,700

12.98%

Java Monster

$291,069,400

11.93%

Rockstar

$284,651,300

-3.54%

Monster Zero Ultra

$279,664,200

150.23%

Monster Mega

$240,788,500

5.28%

Monster Absolute Zero

$185,722,400

-22.17%

AMP Energy

$148,461,300

-16.52%

Full Throttle

$135,444,300

-2.58%

Rockstar Sugar Free

$128,441,200

-9.77%

Red Bull Total Zero

$116,432,900

-37.69%

Rockstar Recover

$114,926,600

-14.16%

Monster Ultra Blue

$112,456,000

4,303.88%

Rockstar Punched

$102,774,100

21.24%

Monster Import

$74,071,180

-23.32%

Rockstar Pure Zero

$60,245,460

N/A

Monster Ultra Red

$58,603,500

N/A

AMP Boost

$58,434,140

-23.75%

Rockstar Zero Carb

$54,387,860

-15.49%

Starbucks Refreshers

$51,485,160

-4.40%

Monster Muscle

$50,742,500

28,112.81%

Monster Khaos

$46,816,600

-24.58%

XYIENCE Xenergy

$44,691,930

1.62%

Monster Nitrous Technology

$41,578,150

0.41%

$40,565,410

368.69%

$29,070,980

-20.79%

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

AriZona RX

$28,834,150

5.81%

AMP Active

$26,202,160

112.07%

AMP Focus

$24,607,900

-14.38%

4.46%

BOTTLED JUICES

$6,799,521,000

-2.80%

BOTTLED WATER

$11,826,640,000

3.04%

ENERGY DRINKS

$10,162,440,000

4.16%

DRINK MIXES

$1,170,627,000

-2.79%

18 BEVNET MAGAZINE JUNE 2014

Change vs. year earlier

Rockstar Super Sours

$30,575,350,000

$4,290,498,000

Dollar Sales

Monster Assault

BEER

TEA/COFFEE

Brand

4.44%

Monster Dub Ballers Blend

$20,823,480

193.09%

Monster Cuba Lima

$18,376,170

28.22%

Rockstar Roasted

$18,133,320

-15.47%

Rockstar Xdurance

$14,949,320

-44.90%

RIP IT

$14,832,280

8.72%

RIP IT Energy Fuel

$14,687,410

1.12%

Monster Dub Mad Dog

$11,192,030

203.17%

Rockstar Juiced

$9,641,331

-49.34%

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CAPPUCCINO/ICED COFFEE

HOT! Starbucks Change vs. year earlier

ENERGY SHOTS Brand

HOT! Rip It Energy Fuel Dollar Sales

Change vs. year earlier

Brand

Dollar Sales

Starbucks Frappuccino

$763,471,700

6.68%

5 Hour Energy

$1,072,275,000

Starbucks Doubleshot

$353,463,900

2.74%

Stacker2 Xtra

$17,221,240

-3.26%

Private Label

$14,264,780

-24.33%

Stacker2

$13,667,570

15.49%

-6.57%

Starbucks

$73,806,530

402.85%

Starbucks Light Frappuccino

$25,823,410

-6.55%

Starbucks Light Doubleshot

$10,057,870

8.33%

Stacker2 6 Hour Power

$12,861,180

-30.00%

Private Label

$6,989,855

-13.08%

Tweaker

$6,197,775

30.85%

Coco Cafe

$6,071,018

292.26%

Street King

$6,165,718

47.38%

Illy Issimo

$4,663,105

-0.44%

Rip It Energy Fuel

$4,504,808

78.85%

$1,461,488

31.18%

E6

$3,373,853

-24.11%

$980,729

68.42%

Fuel In A Bottle

$2,796,227

4.42%

Marley’s One Drop Realbeanz SOURCE: Symphony/IRI Total food/drug/c-store/mass.

52 Weeks through 4/20/14

SPARKLING WATER

NOT! Private Label

HOT! Glaceau Fruitwater Sparkling

Brand

Dollar Sales

Sparkling Ice

$334,804,500

Change vs. year earlier

85.49%

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

52 Weeks through 4/20/14

NOT! Stacker2 6 Hour Power

TEA Brand

HOT! Pure Leaf Dollar Sales

Change vs. year earlier

AriZona

$658,886,600

-3.01%

Lipton

$332,855,400

-9.85%

Private Label

$269,574,000

5.94%

Perrier

$163,458,100

14.39%

Lipton Brisk

$274,182,700

10.52%

San Pellegrino

$137,878,000

13.69%

Lipton Pureleaf

$239,354,100

50.38%

Snapple

$210,146,700

2.76%

Diet Snapple

$187,808,500

-4.45%

La Croix

$76,872,050

23.95%

Glaceau Fruitwater

$54,559,300

2,643.03%

Topo Chico

$33,131,660

8.30%

AriZona Arnold Palmer

$172,873,300

-5.10%

Cascade Ice

$24,712,350

7.25%

Gold Peak

$139,423,100

11.34%

Diet Lipton

$129,535,300

-8.75%

Pure Leaf

$88,561,410

132.54%

Poland Spring

$23,602,170

-4.87%

Arrowhead

$21,696,060

0.83%

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

52 Weeks through 4/20/14

NOT! Poland Spring Sparkling

SPORTS DRINKS

HOT! Powerade

Brand

Gatorade Perform Powerade ION4

Dollar Sales

Change vs. year earlier

$3,320,125,000 $825,287,900

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

52 Weeks through 4/20/14

NOT! Lipton

BEER BRANDS Brand

HOT! Boston Beer Co. Dollar Sales

Change vs. year earlier

Anheuser-Busch INBEV

$14,847,980,000

-13.12%

MillerCoors Brewing

$7,592,210,000

3.11%

$2,229,196,000

14.20%

2.90%

2.13%

Gatorade G2 Perform

$478,588,400

-16.18%

Crown Imports

Gatorade

$316,980,000

94.84%

Heineken USA

$1,368,911,000

4.44%

Boston Beer Co.

$610,235,200

35.01%

Powerade Zero ION4

$210,619,000

-7.29%

Powerade

$147,702,800

605.90%

Pabst Brewing Co.

$490,719,400

2.41%

Gatorade Frost

$47,960,800

-24.49%

Diageo Guinness USA

$411,574,000

-6.84%

Gatorade G2

$43,182,170

-18.57%

Mark Anthony Brands

$402,450,600

1.86%

DG Yuengling & Son

$326,309,900

1.15%

North American Breweries

$322,826,500

-6.37%

Gatorade Fierce

$39,755,030

63.71%

Gatorade All Stars

$30,264,660

-44.35%

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

52 Weeks through 4/20/14

20 BEVNET MAGAZINE JUNE 2014

NOT! Gatorade All Stars

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

52 Weeks through 4/20/14

NOT! Diageo Guinness USA

By Gerry Khermouch

When Yin and Yang Disagree Probably like me, you’ve been too busy tending to your own beverage affairs to invest much time following that entangled soap opera involving the feuding co-founders of AriZona Iced Tea. That long-simmering dispute finally may be getting close to a resolution – possibly by the time you read this – which maybe makes this a good time to reflect upon an extraordinary pair of personalities and an extraordinary brand. Lurid elements of the dispute aside, the outcome may determine whether the biggest independent beverage company is able to continue operating that way.

The dispute basically involves equal partners whose priorities have drastically diverged since they launched the brand from facing desks in the dreary Flatlands section of Brooklyn. Don Vultaggio has been running the business on his own for more than a decade, and would like to continue doing so, particularly now that his two sons have gotten involved. John Ferolito has developed other interests and would like to liquidate his share of the company – say, by selling his stake to Coca-Cola, Tata or Nestle. The problem is that each partner holds veto power 22 BEVNET MAGAZINE JUNE 2014

over the other’s decisions, and out of fear of losing control Don seems to have only half-heartedly pursued negotiations that might allow his partner an exit. Given the track record of similar alliances in the past, he’s probably right to be wary of any assurances suitors offer that he’ll retain a free hand. And working stiffs like you and me are unlikely to be too pitying of Ferolito’s plight, since he’s splitting $50 million or more in pretax profits with Vultaggio each year without shouldering any of the workload. Given the wealth the two have amassed by now, it’s hard to see what aspirations of Ferolito are being thwarted by his not being able to cash out yet, unless maybe he hopes to buy the LA Clippers. Still, he owns half the company, and if he wants to move on, he should be able to.

So after a lot of skirmishing inside and outside of courtrooms, it seems to be coming down to a Long Island judge setting a valuation on the company so that Don can buy out his partner’s share.

Don’s hoping that figure comes in below half a billion, which should allow him to complete the buyout without having to rely too much (if at all) on outside

investors or loans. If, as seems more likely, the judge concludes the company’s worth a couple of billion or more, that would provide more of a challenge. Even to Don, that won’t be pocket change.

Knowing how often good brands go inert once controlled by larger firms, I’m pulling for Don to find a way to appease his partner’s wish to move on but continue to do his thing.

Partly that’s sentimentality speaking: it’s hard to overstate the deep imprint that brand has put on me, giving the timing of its launch, in early 1993, at precisely the time I’d made a mid-career switch from reporting on technology issues to marketing. Don and John and their brand represented a stark contrast with what I heard from the marketing pros I talked to most of the week as I tried to get a handle on this strange new discipline. The pros were accustomed to thinking in terms of above-the-line media, elaborate retail promotions and carefully considered packaging devised by sophisticated branding agencies.

Don and John, well, they thought different, to paraphrase the old Apple tagline. At a time mobile phones were

still a novelty, they built retailer loyalty by driving bodega owners around in a rented limo, inviting them to call home overseas.

They succeeded wildly with packaging that the experts deemed unproduceable (or in the case of the pastelcolored iced tea can, too recessive on the shelf). As both distributors and retailers in their earlier inner-city years, they’d learned to think in terms of price points and promotional gambits in a street-wise way I rarely heard from other marketers. Leery of paying the going rate for orthodox transit ads, the partners convinced the city bus system to let them paste large decals on the otherwise unused backs of the buses, inaugurating a new format used by other marketers since then.

So who was right, the marketing experts, or Don and John? The experts warned me not to be dazzled by the brand’s early success: without any advertising or other marketing support, they predicted, those two guys would wake up in four or five years and realize they didn’t have a brand. It’s hard today to conclude that the experts didn’t get that one dead wrong. AriZona may not be a superpremium brand, nor an image brand in the mode of a Mountain Dew or Monster Energy, but it’s certainly proved to be an enduring brand. Ever since then, I’ve learned to cast a wary eye on marketers’ insistence that new beverage brands can only be built via classic branding techniques. In their own ways, such later hit brands as SoBe, Vitaminwater and Monster have all comprehensively violated those tenets. It’s made me question whether these rules are even relevant in the emerging-beverage space.

Though they’ve mainly operated behind the scenes, the two partners have also colored my view of the yin and yang required to launch a successful beverage. Now that he’s somewhat overcome his aversion to public appearances and the media, Don has emerged as an engaging raconteur, in a kind of rambling, tall-tale way. Arriving at the office in the afternoon and working 24 BEVNET MAGAZINE JUNE 2014

into the evening, the lanky entrepreneur is a classic tinkerer, at the farthest reach from the “carpetbaggers” I sometimes lampoon, with their get-rich-quickand-get-out ambitions for the beverage business.

Vultaggio demands unquestioning loyalty from his employees and offers no equity in the company, yet seems to stoke a sense of common enterprise that allows him to retain valued staffers for long periods. His trade partners often don’t like him much, but they stick around too.

As often happens with successful entrepreneurial partnerships, John is a completely different personality from Don, a spunky, in-your-face, sometimes belligerent character, not someone with whom you’d choose to engage in a protracted feud. While active in the business, he showed a highly developed sense of the transactional aspect of beverages: what price points would spark a purchase while making money at each tier of the supply chain, which items you buy for your

stage. Did I know anyone who could help him buy a new guitar? It happened that I did, an amateur blues player who’d gotten involved in buying and restoring electric guitars as a hedge against the vagaries of his career as an architect.

So on a Friday afternoon, probably in 1999, Ferolito swung by my office in his Range Rover, my friend Tom and I jumped in, and we waded out into the Midtown traffic, on the way, it turned out, to a major auction at Christie’s. John registered us as bidders, mentioned an interested in D’Angelico archtop guitars in particular, and turned us loose. By the time the dust had settled, we’d bought him a D’Angelico and one or two other instruments. Though we fell out of touch just after that, it eventually became clear to me that Ferolito had gone on to acquire the revered but inactive brand. Since then, he’s recruited a group of master builders to resume production, under his son’s watchful eye, and a review I spotted last fall in Acoustic Guitar magazine gave his revival effort high marks. Just as at AriZona, he had figured out a way to offer elegance and value in a single package.

“Some may be skeptical of a guitar that sounds, plays, and looks this good for a

private consumption and which you buy to impress your friends. Though out of the picture in beverages for a long spell now, he seems to have retained his iconoclastic flair in business. Indeed, the last time I encountered him face to face, probably 15 years ago, occurred after he’d mentioned that he was hoping to recapture a passion for playing the guitar that he’d abandoned in his early 20s as the demands of building his business with Don took center

street price of just over $1,000,” a reviewer wrote of one key model. But the guitar delivers, was his conclusion. That certainly made me nostalgic for the old days when Don and John were allies, not adversaries, gleefully upending the beverage business.

Longtime beverage-watcher Gerry Khermouch is executive editor of Beverage Business Insights, a twice-weekly e-newsletter covering the nonalcoholic beverage sector.

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The months of April and May found Brewbound traveling to new locations, but the talk – and some of the talkers – remaining the same.

The roadshow began on April 7 at the Craft Brewers Conference (CBC) in Denver, Colo. After a brief pit stop in Washington D.C. on April 28 for the NBWA Legislative Conference, it was on to Silicon Valley for the Craft Beverage Expo in early May. Along the way, the same types of industry conversations kept surfacing: quality concerns, wholesaler and brewer relationships, franchise law reform and, of course, the “craft versus crafty” debate that continues to reframe the parameters of the emerging category.

26 BEVNET MAGAZINE JUNE 2014

It began at CBC. Paul Gatza, the executive director of Brewers Association (BA) — the non-profit organization that represents the interests of America’s small and independent craft brewers and hosts CBC — tackled quality concerns during an opening address and urged startup

craft brewers to improve their beers.

“There are some quality cracks with some of the newer brewers,” he said.

To drive that message home to the 9,000-some-odd attendees in the room, Gatza, CBC’s ringmaster, told his own story of visiting a beer fest and sampling a number of subpar offerings.

Gatza said he made a point of trying beer from upstart beer companies that had launched within the last two years.

“Out of 10 brewers there, I would say that seven or eight of them – their beers needed improvement,” he said.

“The brewers there didn’t think so. They thought their beers were great and they thought they were doing an awesome job but, the truth is, they don’t, they’re not and we need to improve that.”

In his 30-minute “State of the Industry” talk, Gatza mentioned quality

table, but we still have a very small voice again, but this time it was under the guise of at that table,” he said.

Despite the difference of opinion, franchise laws.

Calagione said he is eager to work with “It is the most exwholesalers on finding a solution that citing time and most would allow craft brewers more flexibility challenging time to be with regards to franchise laws. in the beer industry,” “We created this market for craft beer said Dogfish Head together,” he said. “Let’s address these founder Sam Calainequalities together.” gione, speaking on Through all of our travels, the craft behalf of the Brewers vs. crafty debate didn’t appear to be goAssociation. “Our ing away anytime soon. But at the first concern is access to annual Craft Beverage Expo, held in market in the face of Paul Gatza - Executive Director, Brewers Association San Jose, Calif., the conversation took a consolidation.” slightly different shape.

In an effort to combat those concerns, concerns three times, to emphasize the In an opening discussion, a group of the BA has advocated for franchise law credibility at stake. reform and pushed for state-by-state carve- small winemakers, distillers and brewers “Look, many people in this room have joined a panel discussion to discuss the outs for the country’s 2,700-plus craft spent a lot of time and dedicated a good entire craft beverage “ecosystem.” brewers. And to help draw attention to the portion of their lives to building this comModerated by Hindy, the panel also trepidations of small brewers, the BA has munity that we have today, so seriously, included Tom Potter, Hindy’s original urged its members to go on the offensive. don’t f*ck it up,” he exclaimed, a rallying business partner and the current president So, prior to both the CBC and NBWA cry that was met with cheers and applause of The New York Distilling Company; events, Brooklyn Brewery co-founder from the entire audience.

Sixpoint Brewing founder Shane Welch; Steve Hindy penned a New York Times While the quality conversation spilled Brooklyn Oenology founder Alie Shaper opinion piece that many wholesalers felt into other talks throughout the week, it and Nicole Austin, the president of the cast a negative light on franchise laws. wasn’t the most discussed topic: most New York distillers guild.

Hindy’s argument that the regulations brewers and wholesalers turned their focus Much of the conversation focused are “used to limit consumer choice by towards issues like franchise law reform keeping small and start-up breweries from on how small craft beverage producers and strategies for improving relationships. define themselves. moving easily into new markets” drew the As the events showed, these relationThe takeaway? Brewers aren’t the only ire of the NBWA officials and beer disships can be rocky. ones grappling with the definition of “craft.” tributors, who worry that carve-outs for During one panel at CBC, Tommy “What is craft,” Potter asked. “On craft brewers will damage their businesses.

Gannon, Sierra Nevada’s director of Eastthe distiller’s side, we just had our first But don’t expect a public debate on the ern U.S. sales, explained the importance national organizational meeting. It was a topic from the NBWA, whose president, of the wholesaler/brewer relationship. great session and we went over point-by“Sierra Nevada doesn’t get checks from Craig Purser, called franchise reform “a solution looking for a problem” during the point what the Brewers Association used retailers,”Gannon said. “Our customer as their definition.” organization’s April briefing. that pays is the wholesaler.”

“Op-eds and cable Gannon said the key to a successful news networks are not relationship with a beer wholesaler begins with having empathy for business partners the place to have the franchise law debate,” who provide a service many craft brewers Purser said. would be unable to execute themselves.

“It’s like mud “Our wholesalers are very important to wrestling with a pig,” all of our businesses and I think we need Purser added. “You to realize that and find a way to work with them as the partners that they are,” he said. both get dirty, and the pig likes it.”

But CBC wasn’t the only industry Calagione didn’t event where the wholesaler and craft brewer relationship discussion took place, exactly see it that way.

“To some extent and some of the friction points appeared the craft beer coma few weeks later. munity has earned its At the NBWA legislative briefing in place at the big boy Washington D.C., the topic came up Sam Calagione - Founder, Dogfish Head Craft Brewery

28 BEVNET MAGAZINE JUNE 2014

The outcome?

“We kept coming back to the idea of ‘who do you want on your side,’ and in what sense,” he said, explaining how the group is trying to move towards a more inclusive sense of describing the term craft and wants to avoid making any “fine definitions.”

“We know it when we see it,” he added.

“Small guys, using traditional methods.

When you start to define what a traditional method is, it becomes difficult. The brewing world has some very puzzling examples of that.”

As if to prove that fact on stage, Welch squared off against Hindy, his fellow Brooklyn brewer, over the current craft brewer definition.

“They created that word after the death of the microbrewery,”Welch said, referring to the BA. “Some of those players grew to where they were no longer a micro.”

Welch said he believes the BA expanded its definition of “small” from two million to six million barrels in order to accommodate the growth of larger craft brewer-

ies like Boston Beer.

“Clearly it was a change that was made not for the benefit of most craft brewers,” he said.

Hindy contended that just because a company is successful, it shouldn’t be “kicked out of the club it helped to create.”

But for Welch, Steve Hindy - President & Co-Founder, Brooklyn Brewery the BA’s definition is “arbitrary.” a craft brewer. What any kind of future “They are moving the definition condefinition looks like is unknowable but stantly,” he said. “No matter what we one thing is for certain – Gatza and the are doing to define it, the trend shows entire BA staff will need to walk the that it is subject tightrope as they continue to shape both to change.” craft’s definition and its image. And if the At the pace that some companies like discussions throughout April and May Boston Beer are growing, it’s perfectly served as any kind of indicator, its going conceivable that the BA will once again to be one hell of a balancing act. need to reconsider what it means to be

JUNE 2014 BEVNET MAGAZINE 29

BEVNET LIVE IN REVIEW

BY MAX ROTHMAN

DAY ONE: IN THIS TOGETHER

As Barry Nalebuff and Seth Goldman traded stories on stage during the first day of BevNET Live in New York, it seemed as if the conference’s attendees were being handed an inside look at the School of Organization and Management in New Haven. Nalebuff, co-founder of Honest Tea and Kombrewcha, teaches game theory at Yale University. Goldman, co-founder and CEO of Honest Tea, was a student of Nalebuff ’s at Yale. And here they were, chatting it up about the history of Honest Tea and the importance of a good partnership, seemingly forgetting the crowd before them.

While focused and informative, the conversation easily veered into jabs and laughs. Goldman hinted toward Nalebuff’s occasionally insular personality.

30 BEVNET MAGAZINE JUNE 2014

“You are somebody who doesn’t really see the world the way I do,” Goldman said.

Nalebuff, who also specializes in selfdeprecation, said that he just doesn’t interact with people (students must not be people). On the contrary, he said that Goldman is naturally likeable. He pointed to Goldman’s strong family background as a good sign of a business partner — it shows that somebody else can tolerate the guy, he said, drawing laughs from the crowd. With such a jovial breed of conversation, one wondered if ripping Harvard football was on deck.

Instead, it was all talk of their partnership, no jokes withheld.

“You don’t want to find somebody that’s better looking than you,” Nalebluff said. “Because then they’re going to get all the press.”

Walking through the gestation and eventual boom of Honest Tea, Nale-

buff and Goldman repeatedly praised the benefits of working together. Both bright and capable entrepreneurs, they admitted the shortcomings of going solo and touted each other’s complementary abilities. Goldman has a knack for getting people on his side and for making cogent, rational decisions. Nalebuff asks the tough questions that are often overlooked by a natural proclivity of choosing what’s easier or more comfortable.

There’s a lesson here, smoothly extrapolated to the beverage industry as a whole.

Sure, great ideas often sprout from one mind alone. And it’s possible to thrive in this industry as a solo act, especially with a can’t-miss brand. However, as Nalebuff and Goldman indicated in their discussion at the Metropolitan Pavilion, partnerships can offer entrepreneurs advantages that just can’t be found alone.

After hearing the conference’s diverse roster of speakers, one gets the idea that the industry supports this thinking. From entrepreneurs to retailers to investors, the many strands of the beverage industry believe in the movement of healthy, goodtasting innovation, and they believe in shaping the future together.

The evidence can be seen not just in the camaraderie of Nalebuff, flavored sweet and sour, curls in disarray, and the ever-smiling Goldman, but also in the investment world. Janica Lane, a managing director with investment bank Piper Jaffray, documented the active participation of investors and retailers with the industry’s top innovations.

Boulder Brands and Alliance Consumer Growth, which aims to find and fuel next-generation versions of existing products, have both funded the growth of cold-pressed juice brand Suja, among other food and beverage outfits. Whole Foods has maintained its commitment to the Local Producer Loan Program, which provides up to $25 million of low-interest loans to local farmers and food artisans.

The recent history points to a healthy stage of food and beverage business development polished by successful partnerships. Lane just hopes that these deals indicate emerging trends and not fads.

“I don’t think I’ve ever seen the market quite like it is today around food and beverage,” she said.

The evolution of togetherness was also examined by Kerry Corke, the head of U.S. operations for Kantar Worldpanel, a global market researcher and analytics supplier. Corke shared a case study of Coca-Cola and studied the brand by its history of slogans.

In 1896, it was the matter-of-fact: “Drink Coca-Cola.” In 1979, “Have a Coke and a smile.” In 1985, as the Cold War neared its end, “America’s real choice.” In 1993, “Always Coca-Cola.” In 2003, “Coca-Cola Real.” In 2009, “Open Happiness.” And last year, acknowledging the heightened awareness of CSD ingredients and their relation to obesity and other ailments, Coke went with “Coming Together.”

Even the major beverage powers like Coca-Cola are having a harder time of grabbing consumer attention, Corke said.

This derives not only from the growing knowledge of health and wellness, but

Janica Lane • Managing Director, Piper Jaffray

Kerry Corke • head of U.S. Operations, Kantar Worldpanel

also because of brand proliferation. The consumers, she said, hold the power and sculpt the industry’s identity.

“They’re driving this change,” Corke said.

Kantar Worldpanel research indicated that of more than 60 million consumers, 38 percent in 2003 cited relaxation as a reason for beverage consumption, compared to 44 percent in 2013. Of more than 48 million consumers, 23 percent in 2009 preferred drinking “all-natural” beverages, compared to 39 percent in 2013. Of more than 37 million consumers, 24 percent said in 2003 that they drink beverages to stay in shape, compared to 36 percent in 2014.

And what has influenced the industry’s growing camaraderie? It might also be led by the actions of consumers. Of more than 15 million consumers, 15 percent said in 2009 that they drink something because it’s sociable, compared to 20 percent in 2013.

As consumers drink healthier beverages together, the industry’s many cogs continue to work together. When CocaCola acquired Honest Tea in March 2011, Goldman and Nalebuff realized that the purchase presented a new kind of challenge. They wanted to broaden their mission on their own terms while still working cordially and fluidly with a much larger partner in the cola giant.

They balanced this challenge by creating a three-year advisory board, from the point of Coke’s first investment in the brand to the eventual purchase, keeping Nalebuff as an overseer of the brand’s activity while Goldman continued to run the brand. By establishing the advisory board, the partnership with Coke has worked well, they said, following the blueprint set by their own partnership that began in a Yale classroom. And by Coke enabling both entrepreneurs to preserve important roles with the business, the deal accentuated the importance of the entrepreneur. Even when working alongside a massive company like Coca-Cola, they still have a say.

No matter a company’s stage — startup, mid-sized or post-acquisition — the job of the entrepreneur never relents. There’s production, sampling at retailers and trade shows, traveling to meet distributors, coordinating talks with investors, maintaining a content, productive staff at

JUNE 2014 BEVNET MAGAZINE 31

BEVNET LIVE IN REVIEW the home base. And that’s just part of it. It helps to have others around.

“It’s really too much to ask one person to be able to do all of those things,” Nalebuff said.

DAY TWO: BE THE BRAND

Janie Hoffman never wanted to be the star. She grew up in a small town in Illinois, where standing out from the crowd was, at times, deeply discouraged.

Yet by founding Mamma Chia, Hoffman was presented with a dilemma that revisited her quiet roots in the Midwest. Was she the real Mamma Chia or was she just selling the stuff? Loyalists seemed to believe that she was indeed Mamma Chia, in the flesh, but Hoffman wasn’t initially convinced. She told them that the Aztec chia goddess on the front of the bottle was the real Mamma Chia.

It wasn’t her. She didn’t want to be the face of anything. She had to overcome her childhood programming.

“I really never wanted this to be the Janie Hoffman show,” she said.

But it sure was when she spoke on the second day of the BevNET Live conference. Hoffman had a few tips for the audience, which was rife with brand owners hoping to configure their own identity. The tips evoked laughter and hinted at truths learned from her own experiences: Tip #1: find a good therapist. Tip #2: Botox won’t help. Tip #3: find a good therapist.

After years of molding her role with the brand, Hoffman said, she now identifies herself as the real Mamma Chia. But regardless of Hoffman’s personal affiliation with the title, her steadfast commitment to her product and its key ingredient has anchored the brand since its inception.

Entrepreneurs such as the effervescent Hoffman, the metaphor-dropping Kevin Klock, CEO of Sparkling ICE, the systematic Chris Campbell, the president and CEO of Chameleon Cold Brew, and Jennie Ripps and Maria Littlefield, the city-savvy founders of Owl’s Brew, shared their various personalities and plans with the crowd at the Metropolitan Pavilion, speakers on the second day of BevNET Live.

As they explained their products and their histories and their strategies, a theme prevailed amongst the brand ambassadors.

32 BEVNET MAGAZINE JUNE 2014

Janie Hoffman • Founder & CEO, Mamma Chia

Kevin Klock • CEO, Talking Rain Beverage Co.

Chris Campbell • President & CEO, Chameleon Cold Brew

There’s no blueprint way to run a brand, but the finest entrepreneurs, no matter their style, tend to embody their brand and own it like a second skin.

Kevin Klock continues to personify his brand, even though many entrepreneurs at his scale might opt to sell their stake and celebrate the good life. Instead, Klock, the CEO of Talking Rain, envisions room for more opportunity. He said as much on stage at BevNET Live — an uncommon sentiment from the CEO of a brand that has shot well past $300 million in sales.

Klock said that Sparkling ICE’s role in foodservice is all but untouched. They’re just beginning to tap into the convenience channel. They just recently established a DSD network in all 50 states.

When talking about such massive sales figures as only the beginning of the company’s rise, Klock mirrored the bravado of a young Jay-Z, recalling the line: “I’m not looking at you dudes, I’m looking past ya.”

Looking beyond the hordes of Sparkling ICE imitators and the competitors of varying categories, Klock had his own version of the progressive businessman’s mindset.

“While they’re trying to catch up, we’re busy focusing on our next move,” he said.

It’s this restraint from moving too quickly, a kind of pragmatism and understanding of brand persona, that has helped elevate the company to the pinnacle of the beverage industry. Because of the brand’s consistent approach and easily comprehensible offerings, Sparkling ICE is able to launch a line of lemonades, for example, and become the top shelfstable lemonade in the U.S. a mere six months after the product launch. When consumers buy a bottle of Sparkling ICE, they know what they’re getting. This business model has enabled Sparkling ICE to become 400 percent larger than its competitors combined, he said.

Chameleon Cold-Brew hasn’t reached the same foothold of Sparkling ICE because CEO Chris Campbell was still hand bottling two years ago. However, what it lacks in age, the Austin, Texasbased Chameleon compensates through direction. The brand serves as a category leader in the cold-brew RTD coffee space, which is drawing new brands from all over – the evening before, in fact, BevNET team members found celebrity chef

BEVNET LIVE IN REVIEW

Jennie Ripps & Maria Littlefield • Co-founders, Owl’s Brew

Todd English discussing the possibility of fielding a play in the space as well.

From its founding in 2011 to its current stage, Campbell, a former consultant, has lived the brand and steadily managed the many forces that affect a fast-growing category. As it has heated up, he’s had to accelerate just about every part of the company’s plan.

From 2011 to 2014, Campbell told the audience, the company went from one convenience store to more than 800 stores across the country. He transitioned from self distribution to DSD distribution, no broker to national brokerage, zero paid employees to experienced industry hires, two SKUs of only-concentrate to more than 10 SKUs of RTD, self- and angel-funded to private equity, venture capital and superangel investors, and natural retailers to a gradual push into conventional and mass.

Such acceleration leads to more than the just the struggle of keeping up. “You have external influences and you have internal constraints,” he said.

However, what kept Campbell’s business together was his unwavering dedication to the Chameleon brand, knowing

34 BEVNET MAGAZINE JUNE 2014

its path and what would be best for the company in both the short and long term.

Now, Campbell speaks about managing super-swift growth instead of wondering about the what-ifs.

At an even earlier stage but no less compelling, the founders of Owl’s Brew — Jennie Ripps and Maria Littlefield — symbolized the plucky nature of the New York City entrepreneur. While they’re still trying to prove their concept of tea crafted for upscale cocktails, they convinced some of the industry’s elite on Wednesday and Thursday by winning New Beverage Showdown, a “Shark Tank”-esque competition for startups. They faced strong competition in brands such as Rumble, a super-shake loaded with protein, fiber and omega-3s, and switchel brand CideRoad.

Scott Uzzell, president and general manager of Coke’s Venturing and Emerging Brands, served as one of the judges for New Beverage Showdown. He presented an interesting take on Owl’s Brew — a take that indicates not just the unique nature of the product in the sleek, black jug, but the uphill challenge ahead.

“It actually takes the hero spot away

from the alcohol and makes this more the hero,” he said.

Hoffman would be completely fine with her product serving as the hero, but that’s not entirely the case. Not when you’re the face of a brand that needs a definable Mamma.

While the brand thrives as the market leader of a trendy category, she continues to adjust to the demands of her role at the top.

When Random House approached her for a two-book deal, she turned them down. She told the book publisher that she didn’t have the time. Perhaps she really just wanted to avoid the spotlight.

A little while later, she changed her mind. She called Random House and made the deal. She’s already released one book — Chia Vitality — that tells only some of her background and more about the research behind the benefits of chia.

She has a cook book coming out this fall.

And even more significant than the book deals: Hoffman’s growing confidence.

On the book deal, she said: “I’m glad I did it now.”

And these days, when people approach Hoffman and say “hey Mamma Chia,” she says “hey” right back.

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Soda Swap: Is Energy the New CSD? By: Ray Latif

It’s well-known that consumers are consistently and, in ever greater numbers, shunning carbonated soft drinks.

Negative consumer perception of the products, based on their often high calorie counts and use of artificial sweeteners, have led to plummeting sales, with net volume down 3.2 percent in 2013.

CSDs still represent the largest of beverage categories, however, their presence in coveted cooler doors and long grocery aisles is slowly, but surely, dwindling.

While the energy drink category has been one of the biggest beneficiaries of reduced shelf space for CSDs, there is significantly more room to grow. That notion is buoyed by sustained consumer demand for energy products, growth of which is driven by an overall shift toward functionality.

“One of the biggest trends we have seen in the CPG industry over the past decade is… consumers are looking for beverages that do something for them,” said John Showalter, Director of Business Insights, Red Bull North America. “Energy drinks provide the functionality of an energy 36 BEVNET MAGAZINE JUNE 2014

boost, and not only that, consumers are willing to pay a premium for it.”

Although energy drinks represent just 2 percent of the overall domestic beverage market (as reported in a May, 2014 article in Forbes), from a retail perspective, store operators are increasingly aware of thriving demand in the category and remain drawn by the allure of selling a beverage that, at $2-3 per unit, offers a significantly higher profit margin as compared to CSDs. According to a recent Wells Fargo Securities survey of retailers representing 15,000 U.S. convenience store locations across the U.S., energy drinks are sold at a nearly 40 percent margin, while CSDs sit at 30 percent. The gap has motivated C-store operators to expand their energy drink sets, which currently comprise about 20 percent of space on retailers’ shelves. Survey respondents believe that number could quickly rise by 50 percent to over 30 percent of total shelf space.

Based on Nielsen Scantrack sales data provided by Red Bull, the energy category currently represents no less than 75 per-

cent of total CSD sales in C-stores within the 52 week period ending on May 17, 2014. In all channels combined, energy totals 30 percent of all CSD sales. Moreover, as dollar sales for energy drinks grew nearly 6 percent to $6.67 billion in measured channels in 2013 (according to IRI, a Chicago-based market research firm), Red Bull saw energy drinks reach 50 percent of CSD volume in all channels combined within mature markets for the category.

While Showalter does not necessarily think energy drinks are taking share from CSDs, he believes energy will continue to outgrow total beverage as consumers, particularly those in emergent demographic sets, look “for more options and variety in their beverage consumption.”

“First of all, energy drinks over-index among Hispanic consumers and millennials,” Showalter said. “These are the two consumer groups that are forecasted to grow the most in terms of population and spending power. Second of all, the consumer trend toward functionality is here to stay. As energy drinks become

even more mainstream and reach more consumption occasions, the category will continue to grow. Finally, product, in-store, and marketing innovation will deliver category growth.”

Jerry Reda, the chief operating officer of Big Geyser, one of the largest independent non-alcoholic beverage distributors in the U.S., echoed that sentiment, especially for growth of the category within metro New York. In 2013, Big Geyser took over distribution of Monster Energy in the region from the Coca-Cola Co. and Anheuser-Busch. Reda said that the brand has since become the fastest growing in the company’s portfolio.

After visiting the West Coast to gain a better understanding of the market for the energy drinks, Reda believes that Big Geyser can increase its energy business by “five-fold over the next three to four years.” Impressed by the amount of space that West Coast retailers in drug, convenience and grocery channels had dedicated for energy drinks, Reda views New York as “very, very under-spaced” for the category, and, despite growing retailer interest for energy drinks, is at the forefront of a push to dramatically ramp up shelf space for the category.

“We’re continually negotiating on a daily basis, on an hourly basis, for more space for energy drinks, for more space for Monster Energy,” he said.

Describing Red Bull as “a category management organization,” Showalter is similarly looking for ways to increase room for energy drinks, albeit within the context of how retailers can optimize total beverage space. Showalter recommends that retailers take what he described as “a blended approach” taking

38 BEVNET MAGAZINE JUNE 2014

into consideration dollar volume, unit volume, profit and future growth.

“What we find is that, generally, the energy drink category is under spaced in terms of these metrics,” he said. “As the energy category continues to consolidate into the top two brands (in fact, Red Bull and Monster now make up over 80 percent of total dollar volume in the U.S.), we fully expect that the shelf space should reflect consumer preferences. Top performing brands and SKUs should take precedence over secondary and tertiary brands that add little value to the energy drink set.”

The big three soda companies, CocaCola, PepsiCo and Dr Pepper Snapple, despite each placing greater resources and emphasis on growth of their companyowned energy products, have been unable to make a significant dent in the category dominance of Red Bull and Monster. In recent weeks, however, Coke has achieved far greater returns on sales of its energy drinks, which include NOS, than Pepsi and Dr Pepper. Recent Nielsen data published

by Wells Fargo Securities show year-overyear sales of Coke’s energy drinks up 24.2 percent in dollar sales growth and in 14 percent volume growth for the four-week period ending on April 12, 2014.

But the big question is, will they serve the same purpose for consumers, refreshment, that CSD’s have for so many years?

The answer may provide a clue to how these categories ultimately coexist.

Reda noted that flavor innovation for energy drinks has improved so dramatically that consumers are replacing sodas with energy products for a range of consumption occasions, including general refreshment and even as a meal pairing.

“Where people were drinking CocaCola or Pepsi-Cola with their sandwich, we’re seeing people now drinking energy drinks with their sandwich,” Reda said.

“We’re seeing more and more of that.”

Reda offered an account of a Monster sampling event at Penn Station in which consumers not only expressed satisfaction at the functionality of the brand’s products, but praised the taste and refreshment of the energy drinks as well.

“I can’t tell you how many people say to me [Monster Ultra] tastes like a cross between a Sprite and a Fresca,” Reda said.

“They can’t believe how refreshing it is and how there’s zero calories and zero carbs in it.

It doesn’t taste like a diet drink. That innovation is allowing us to grab new drinkers.”

With flavor profiles approaching that of traditional CSDs, energy drinks have opened the door to a range of new consumption opportunities, particularly those in which individuals have sought an energy boost via caffeine from colas and coffee. Kantar Worldwide, a consumer insights group, notes that “the consumption occasion between lunch and dinner is growing in importance for energy drink consumers – where consumers are seeking a quick (yet tasty) boost.” Kantar stated that “the majority of these occasions take place at work or in commute.”

Red Bull, Monster and Rockstar have leaned on innovation to take advantage of these consumption occasions as well as increased consumer demand for reduced calorie products and functionality. Two years ago, Red Bull launched Total Zero, while Monster debuted its protein-infused Muscle Monster in 2013; both product lines have been huge drivers of new sales for the companies. Yet while Monster sells nearly three dozen varieties, Red Bull carries just six products in its portfolio.

Showalter explained that the company’s approach to product development certainly differs in terms of frequency of new releases, but that it is “always based on consumer insights and delivering on unmet needs,” as a way to expand its reach and grow the overall segment.

“Once we launch a new product, we fully support it with in-store messaging, advertising campaigns and nation-wide sampling,” Showalter said. “While we can’t say what our future plans are for product innovation, you can bet that it will be rooted in consumer need and bring new users into the energy category.”

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BRAND NEWS

Energy Drinks

Duff has landed shelf placement at Universal Studios in the gift shop at the end of its Simpsons ride. Based on per-store sales, this is the product’s best performing location, according to the company. The product comes in a 12 oz. can and a mandarin orange flavor. The product is officially licensed by 20th Century Fox and has tremendous brand connection with 18-40 year-old male consumers, according to the company. Duff is available in more than 5,000 specialty stores throughout the U.S. with national retailers such as Spencer Gifts, Burlington Coat, Five Below and Hastings.

Talon Energy has launched a new “Truth in Energy” campaign on the can and at point-ofsale locations. The campaign details the company’s pledge to use only premium ingredients and to list exact quantities of ingredients, including caffeine. Also part of the campaign, Talon pledges to never pay anyone to drink or to like the brand and also participates in the new www.loveitorfree.com program, which offers consumers a free trial. Talon is distributed primarily by Core-Mark to Circle K and other retailers in the Western U.S.

Panama and South Africa. The product has a guaraná flavor and is available in 8.5, 9.2, 11.16, 33.8 and 71 oz. packages.

Roaring Lion “Zero” is sweetened with

stevia and contains zero calories, carbohydrates or sugar. The product is part of the company’s home delivery service and is also available through the company’s online store.

Rip It Energy Fuel has launched Rip It Tribute C.Y.P.-X, an orange creamsicle-flavored energy drink in 16 oz. cans and 2 oz. shots.

The product is available in several cities in the Midwest, including Detroit, Grand Rapids, Mich., Cleveland and Columbus, Ohio.

The tribute product serves as the company’s expression of gratitude to the men and women who serve this country.

DIABOLO LOCO is a brand extension of

DIABOLO Beverages that features two flavors: French Lemonade and Acai Berry Guava. The products contain 25 calories, 7 grams of cane sugar and 80 milligrams of caffeine per serving.

Red Rain is supporting the brand with a

Steaz has announced that new displays are

being showcased at Whole Foods Markets this month. In 2007, Steaz released the world’s first USDA organic, Fair Trade-Certified energy drink, according to the company. The company uses sustainably sourced ingredients such as guarana berries, green tea and rainforest-grown yerba maté.

Vuka Energy Drinks are now packed in

summer-long truck sampling tour and an online instant-win game with hundreds of prizes of Red Rain Facebook coupons. The 16 oz. cans are available nationally in Family Dollar Stores and come in four flavors: Watermelon, Orange Passion Fruit, Cherry Limeade and Berry Pomegranate.

DNA Brands has rebranded its energy drink line and has added new flavors: CryoBerry, Molecular Melon, Original and Sugar Free Cellular Citrus. The company also recently launched a Coffee+Energy line enhanced with Omega 3s and the original flavor in a bag-inbox format for on-premise opportunities.

the Ball Alumi-Tek bottle. The company has moved its headquarters from Denver to San Diego and will emphasize growth with existing distribution in the Rocky Mountain region and the East Coast. Vuka will also focus on new accounts such as Whole Foods in Northern California and the South, Gelson’s and increased distribution through UNFI, DPI and Nature’s Best. The company is working on a summer event activation program in Colorado with its new event marketing agency, Endurance Event Marketing.

Vuka is also working with a new PR agency, J Public Relations, and a new advertising agency, Mighty Karma.

Liquid Ice has performed well with its current distribution network in the on-premise channel, according to the company, and will focus on expanding its footprint in the general market sector. The company, which is proud to celebrate its tenth year in business, sells its products in more than 40 states with distributors from Anheuser-Busch, MillerCoors, PepsiCo and Coca-Cola.

Nitrix is focused on reaching every single city in Brazil mainland by the end of 2014 and is adding sales force in Angola, Argentina, Bolivia, Chile, Costa Rica, Mozambique,

Maquis O3, a new energy drink company based in Los Angeles, opened its first account in December 2013. Along with selfdistribution, the company is working with

40 BEVNET MAGAZINE JUNE 2014

Nature’s Best and distribution options in Santa Monica, Calif. The USDA Organic product has zero calories and sugar, comes in a 12 oz. can and is available in three flavors: Citrus, Mango Ginger and Super Berry.

Global Functional Drinks, based in Zug, Switzerland, has entered the U.S. market with two brand offerings: E-ON and Tornado Energy. E-ON is available in three flavors — Almond Rush, Citrus Punch and Ginger Crush — and contains caffeine, taurine and vitamins B6 and B12. Tornado Energy also comes in three flavors — Original, Active and Ice — and uses a screw-on cap and a unique PET bottle, according to the company. Global Functional Drinks has chosen Advantage Sales and Marketing as its strategic partner in the U.S. for its knowledge of retail and its industry relationships.

Mossy Oak Pursuit Energy has three flavors — Original, Citrus Berry All Zero and Orange, and is working on adding more flavors.

The product, now available in 4-packs, is a rugged camo-themed energy drink for people who enjoy hunting, fishing and exploring the great outdoors, according to the company. agua enerviva has launched in Fairway

Markets across New York, New Jersey and Connecticut. Packaged in a new proprietary bottle, the guaraná berry energy drink is available in five flavors: Kiwi Strawberry, Pomegranate Acai, Orange Passion, Tea Lemonade and Fruit Punch. Every bottle contains 100 milligrams of caffeine.

BAWLS Guarana Original, packaged in

the 10 oz. cobalt blue, bumpy bottle, will be launched in a newly designed 4-pack this summer.

Little Miracles is now available throughout

the greater Los Angeles region as well as New York, New Jersey and Connecticut. The company also just announced the launch of its fourth SKU — Lemongrass Tea, Orange Juice & Ginger, which joins the existing blends Green Tea & Pomegranate, White Tea & Cherry and Black Tea & Peach. Each variety contains fewer than 90 calories per bottle and offers energy through the use of ginseng, acai and and other organic ingredients.

N.O. Expolode, launched in April 2013,

is non-carbonated, sugar-free and features no artificial colors or dyes. The product 42 BEVNET MAGAZINE JUNE 2014

contains 3 grams of citrulline and 1.6 grams of beta-alanine, both amino acids, as well as 2.5 grams of betaine anhydrous, a chemical that occurs naturally in the body and has the ability to lower homocysteine levels (sometimes linked to heart disease) in urine, according to WebMD. Bulletproof Energy Drinks has introduced new packaging, a new logo design and a reformulation of its products. Both original and sugar free flavors have no artificial flavors or colors and are now preservative-free.

The company is an official partner with the Fisher House Foundation, donating 5 cents from every can to help wounded troops and their families.

XL Energy Drink, based in New York, has

announced new partnership with Lancaster, Calif.-based PLUS+One Distributing and San Diego-based Specialty Beverages. The distributors will ship three of the company’s products throughout Southern California: XL Energy, XL SugarFree and XL Lime&Lemon Energy.

CICLON has launched CICLON PET, which

has the same quality of Ciclon at a more affordable price, according to the company.

Like CICLON Premium, this product is a non-carbonated energy drink with a sweet acerola flavor. This product, however, enables consumers to re-seal their energy drink with the twist of a cap.

Pit Bull Energy Drink has been chosen to

energize active duty troops overseas. The product has been on the market for more than 13 years and can be found domestically on military bases, Costco Hawaii and participating convenience stores, as well as internationally in Latin American countries, according to the company.

XYIENCE recently kicked off its distribution

partnership with Polar Beverages, giving the brand potential shelf space in thousands of retail doors in New England. A recent deal with Davis Beverage Group gives the brand access to more than 1,500 stores in Central and Eastern Pennsylvania and parts of Western New Jersey. The brand recently launched the first advertising campaign to support its “Power to Win” brand positioning. The multi-market, multi-medium campaign is designed to establish new connections with adults aged 18-34 who share XYIENCE’s

commitment to living a fit and active lifestyle.

The brand recently named its “Power to Win” team, a group of athletes who are involved in sports like crossfit, marathon running, surfing, motocross, mixed martial arts and fitness competitions. The athletes will endorse XYIENCE when competing nationally and in their local communities, including Denver, Las Vegas, Phoenix, Southern California and St. Paul, Minn.

Sambazon Amazon Energy uses organic

plant-based caffeine from yerba mate, green tea and guarana and is rich in antioxidants from acai berries and acerola cherries, according to the company. The product is also available in Low Calorie, which contains 35 calories per serving. Both varieties are available in 12 oz. cans.

Havoc was integrated in the World Armwrestling League Championships at House of Blues, Las Vegas, as well as CROSSFIT Box 702 on the weekend of June 7.

XS Energy has introduced Energy + juice with a Pink Grapefruit flavor and Energy + burn, aligned with more athletic pursuits, in a Strawberry flavor. XS Pink Grapefruit’s launch in October 2013 coincided with Breast Cancer Awareness Month. The brand donated $20,000 to the National Breast Cancer Foundation. Also, Dr. Blast is the latest of XS’s 17 flavors.

Spider Energy Drink continues to expand distribution, including retailers such as Market Basket, Harris Teeter and select Sam’s Club and Albertsons stores. The products — five carbonated flavors and two non-carbonated — are now available in 26 states across the U.S. and five European countries.

Realtree Outdoor Energy has re-launched

its entire line of energy drinks with 7 SKUs, new flavors and new packaging. The flavors recall traditional soda flavors but pack the punch that energy drink consumers crave, according to the company.

Vemma has expanded its Verve energy drink brand with three new offerings, including Verve ParTea, an iced tea, Verve MoJoe, an iced coffee beverage, and Verve ReMIX, a lower price point spin on the original Verve energy drink.

44 BEVNET MAGAZINE JUNE 2014

Zum XR is the first energy drink with time-release caffeine and electrolytes, according to the company. The product contains tasteless beads that release green tea caffeine and electrolytes over a three to four hour period, which the company claims will supply sustained energy.

The company also claims that it has strong science and a patent behind its claims.

Enerzen Energy plans to be in production

this summer in Tampa, Fla, with a release in Orlando next month. Also, the company’s website will be redesigned for the launch.

The product is made with twice the electrolytes of most sports drinks and alleviates stress and anxiety, according to the company.

Manyk Energy is steadily growing in South-

ern California, according to the company, and is currently being distributed through Core-Mark, McLane Co., Take-A-Break Service and various convenience store chains such as 7-Eleven and AM PM. The product is offered in several flavors, such as PUNCH, ORIGINAL and ZERO. Non-carbonated flavors are CRANBERRY and LEMONADE, which are made with white tea leaves blended with ingredients such as acai, goji berry and mangosteen. New flavor profiles are in the works, including a calorie-free ZERO PUNCH version.

Red Bull will launch a Dia De Los Muertos edition 12 oz. energy drink can this fall, designed by artist Ernesto Yerena Montejano, as part of its “Latagrafica” or “can art” program. The can will be available for a limited time in Southern California, Phoenix, Chicago and major Texas markets. Complementing the Dia De Los Muertos can and giving wings to local artists, wall murals will be unveiled in Los Angeles every month through October to the theme “puedes” (you can), designed by different Latino artists including Montejano. Also, until Labor Day, a limited edition 12 oz. Red Bull Energy Drink Camo Can will be available on military bases with a portion of the proceeds benefiting the Military Warriors Support Foundation, which provides mortgage-free homes to combat wounded soldiers of Iraq and Afghanistan, as well as spouses of fallen soldiers.

Golazo has partnered with Pelé, the Brazil-

ian soccer legend, right in time for The World Cup in Pelé’s home country. Pelé will work as

a global brand ambassador for Golazo, which is made with caffeine from green coffee beans and yerba maté, electrolytes, simple carbohydrates and potassium from coconut water.

The products have a new package design and are non-GMO Verified. The partnership will entail a marketing promotion titled “King of the Cup,” which will run until July 13, the final day of The World Cup. The promotion will offer fans the chance to win a case of Golazo, tickets to rivalry soccer matches and a jersey signed by Pelé. Golazo announced in April that it has also partnered with DeAndre Yedlin, defender for the Seattle Strikers and the U.S. national team, and Will Johnson, midfielder for the Portland Timbers and the Canadian national team.

showcases bands your grandmum would be proud of: Korn, Suicide Silence, Cannibal Corpse, Upon A Burning Body, Darkest Hour, Wretched, and Body Count featuring Ice-T. NOS Energy Drink has focused on a marketed campaign featured with the slogan “You Only Live NOS,” which highlights UFC fighter Georges St-Pierre. The campaign includes phrases such as “Break Records Bones and Hearts,” “Foot to the Floor, Middle Finger to the Sky” and “Earn Your Right to Sleep.”

Monster Energy recently launched Ultra

Red, which has zero calories and zero sugars, and Punch Monster, which combines a fruit punch flavor with a little carbonation and the functionality of Monster Energy.

No Fear Energy has expanded its national

footprint through new distributors and key customers. The company has also added two new flavors to its lineup: Cherry Lime and Citrus.

Rockstar Energy is sponsoring Mayhem

Festival, a traveling metal music festival that

AMP Energy recently launched the limited-release Dale Jr. Sour, a sour grape flavor that is sold at participating 7-Eleven stores across the country.

The flavor was chosen by and named after Dale Earnhardt Jr., professional racecar driver and AMP Energy brand endorser.

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In April 2011, after decades of getting

by, Paul Underhill fell critically ill. He was born with cystic fibrosis, a life-threatening disease that affects the lungs and the digestive system. It was catching up to him. As he endured, he drank a super-shake made by his wife, Sandra Pol, a three-time cancer survivor. He didn’t have the strength to chew, so he drank the shake to stay alive.

In his early 40s at the time, Underhill shared more traits with octogenarians than similarly-aged peers. He required continuous oxygen support. He used a walker and couldn’t go for more than a city-sized block. He coughed blood. Each passing day hinted toward the brevity of existence.

“I had, you know, not much time to live,” he said.

46 BEVNET MAGAZINE JUNE 2014

After spending just one day on a wait list, Underhill was flown from his home in Victoria, British Columbia, to Toronto. It was Good Friday. At St. Mike’s Hospital, he underwent a double lung transplant.

His father-in-law prayed across the street at St. Mike’s Cathedral, visible from the hospital room’s window.

“I still get goosebumps thinking about it,” Underhill said.

Underhill did more than endure the struggle. He kicked the struggle’s ass. He’s come back as a runner and a competitive cyclist. And as a testament to survival, as a sign of thanks to his wife, he also started Rumble — a hunger-fighting beverage that approximates his wife’s super-shake recipe. It’s a commercialized take of her

creation. Underhill believes, no matter the health status of the consumer, that Rumble can help people across the world.

It’s no run-of-the-mill entrepreneur story. However, BrandProject, a Torontobased firm that builds and invests in earlystage ideas with high growth potential, has taken a chance on Rumble for more than its story. When Andrew Black, co-founder and CEO of BrandProject, first met Underhill, he was impressed by a determined man with a mission. However, BrandProject, the lead investor of Rumble’s first round of funding that ended in August 2013, also envisions Rumble as a category creator — a product that will start the conversation when it comes to beverages that sate an appetite.

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Well, it may not create the category, but it could certainly add to it. The firm’s rationale with Rumble reflects a general belief in beverages with food-like filling effects.

A growing heap of beverages act as meal replacements or as nourishing snacks: green juice. Protein-jacked shakes. Oat-based smoothies. Probiotic, drinkable yogurts. But with the category having such an unclear identity, meal replacement has yet to define itself. This disparate category that awaits further development and formation in the market will become established via consumer trials, continued innovation and time.

From Ontario to Orange County, beverage investors and marketers and torchbearers believe they’ve nailed the category’s eventual shape. Protein beverages such as Muscle Milk, Ensure and Boost have spent several years as unofficial meal replacements. While marketed in different ways, from workout aid to joint supplement, these beverages have long served as makeshift breakfasts and snacks without explicitly advertising themselves as such.

Drinkable, probiotic yogurts like Lifeway Kefir and IBEX Drinkable Yogurt are also intended to fill your stomach and encourage digestive health. They’re also packed with protein, but above all else, companies of this ilk highlight the probiotics — a point of differentiation and a growing trend.

Rumble aims to evolve the protein category.

It’s made with the equivalent of 1 apple, 1 cup of berries and 1.5 cups of broccoli, packed with 20 grams of protein, 8 grams of fiber, 3,100 milligrams of omega-3s and 400 milligrams of calcium.

The product includes 22 ingredients, such as green tea extract, organic flaxseed oil, organic pumpkin seed oil and stevia. Andrew Bridge, co-founder and CMO of BrandProject, 48 BEVNET MAGAZINE JUNE 2014

thinks there’s a void in the marketplace and that Rumble will set the standard.

“We believe Rumble is in a perfect position to take advantage of it and help define that category,” Bridge said.

He’s not alone in that belief.

Juice kings Suja, Blueprint and Evolution Fresh continue to cash in from the sea of cleansehappy trendspotters.

Through cleanse programs that last for several days, these brands market green juices and nut milks for daily maintenance and lemon-cayenne blends as quick ways to drop weight and flush the system.

Andrew Giangrandi and Jake Mabanta, the co-founders of New York-based Love Grace, said that as juice loyalists begin to explore new avenues, their brand will make more noise beyond its current following in the city.

Giangrandi said that it’s quite difficult to find a healthy meal and that a deli meal contains just a fraction of the vitamins and nutrients in premium juices. It seems that drinking a juice for breakfast has become all-but rudimentary for a certain demographic of efficient twentysomethings.

“It’s definitely a part of the 21st century lifestyle,” Mabanta said.

Then there’s stuff that’s a bit more esoteric. These left field creations are a natural byproduct of an amorphous, trendy category. One of these creations is Soylent.

Soylent, the supershake creation of Rob Rhinehart, also appeals to efficient twentysomethings, but they appear to be more a part of the 22nd-to-23rd century lifestyle than anything resembling the present day. Soylent is a beige goo that contains 34 nutrients (Rhinehart’s idea of life’s

essentials). Rhinehart doesn’t eat food.

He lives off his own stuff. The blend was named after Soylent Green, a 1973 sci-fi film set in a dystopian future where people eat only Soylent Green, wafers that are later revealed to be made of human flesh. Rhinehart’s creation follows a longstanding hobby of efficiency enclaves like Silicon Valley: “life hacking.” It’s the idea that we can omit life’s inefficiencies and strike the root of our desired source, such as getting the nutritional benefits of fruit that’s mostly water without eating the fruit itself.

As unconventional as Soylent may seem, it’s caught national attention.

Lizzie Widdicombe of The New Yorker recently profiled Rhinehart. She admitted the oddity of his idea yet also seemed fascinated by the promise. In October 2013, TechCrunch reported that Soylent had raised $1.5 million in seed funding from tech investors like Andreessen Horowitz and Lerer Ventures.

Soylent is a powder, but it’s also shipped as a drink. Something akin to Soylent, but with more of a primitive beat is Chimp Food. Down in Hollywood, Fla., nestled between Miami and Fort Lauderdale, Scott Joseph preaches his beliefs and sells his thoughts in an überpacked bottle. His branding thrust evangelizes the chimp-human connection.

“We’re virtually 99 percent exactly alike,” he said.

There’s more to this chimp-human manifesto.

“Chimps will certainly eat some termites and some bugs, some ants, possibly a frog if they catch one strolling by, you know, if they’re really hungry,” he said.

“But generally speaking, they don’t eat other animals.”

Joseph doesn’t think you should either.

That’s why he’s packed his product, Chimp Food, with what chimps eat: five types of fruits, veggies and nuts with peels, seeds and stems included.

Even with his outside-the-box product and philosophies, Joseph has practiced traditional methods of market research.

He’s looked toward the behavioral history of beverage consumers and traced, he thinks, the evolution of juice consumption. It started with orange juice. Then

V8 made a dent. Up next were Naked, Odwalla and Bolthouse Farms. The latest craze involves high pressure processing, the next layer up in premium juices. But in Joseph’s mind, premium juice has a temporary shelf life, and Chimp Food is next.

“They are the best of the best at the moment,” he said of the competition.

There are young, boundary-pushing brands like Chimp Food and then there are massive, more established players like PepsiCo, which has marketed Naked Juice as an option for health-seeking consumers. It’s also been consumed as a meal replacement, even if the cola giant has never outright called it one. Yet, the category has taken another step toward forming an identity through seasoned entrepreneurial brands such as Sambazon.

Ryan Therriault, VP of marketing for Sambazon, said that consumers can be

confused by the foggy identity of these meal-replacement/snack-like beverages. When consumers want to drink something in place of a meal or a snack, they’re typically assuming that a product will get the job done. It’s not often a sure thing.

This explains San Clemente, Calif.-based Sambazon’s decision to name one of its products “Blended Breakfast.” The product contains a blend of strawberries, banana, chia, grains and non-GMO verified soy milk. The company wanted the product to be as literal as possible, and that starts with the product title at the front the bottle. The majority of consumer decisions are made at the shelf, Therriault said, and as the saying goes: you have milliseconds to catch a consumer’s eye.

The demand exists for beverages that serve as meal replacements and snacks.

Companies would be wise to ask themselves if their brand clearly communicates their ability to meet that demand, he said.

When talking about this category, when analyzing Rumble and its place in the grand puzzle, Black reiterates that the category definer will be the one that offers not just what consumers want in the liquid, but what consumers want in the brand. It’s done through stories like Underhill’s. It’s done through product quality and packaging. It’s done through the vision of the brand’s identity.

“It has incredible function,” Black said of Rumble, “but it’s also really the first lifestyle brand in the category.”

That’s an arguable point.

Certainly the others would say that, futurist, primitivist, Amazonian or juiciest, they appeal to meal-replacing lifestyles of their own.

JUNE 2014 BEVNET MAGAZINE 49

BRAND NEWS

Protein & Meal Replacement Drinks

Orgain has added to its line of organic nutri-

tional shakes with a new shake that features 25 grams of protein, 150 calories and no added sugar. The company has already introduced two vegan varieties of its flagship products by using an organic, plant-based protein blend of brown rice, hemp, chia and flax. Orgain’s new shakes recently launched nationally with both Whole Foods and Vitamin Shoppe.

Coco Libre Protein is now made with Fair

Trade Certified coconut water and recently became available in an 11 oz. Tetra Pak with a resealable lid. Coco Libre combines whey and milk protein isolate and uses ingredients such as Dutch cocoa and Madagascar vanilla.

The products contain 20 grams of protein, no added sugar, 23 vitamins and mineral, five electrolytes and 140 calories per bottle.

JUS By Julie recently moved into a new,

larger facility that will allow the company to distribute across the U.S. via overnight shipping. The company is working on several new flavors, but has yet to release them. JUS By Julie is a juice made fresh daily from blending rather than cold-pressing. This helps retain protein, fiber and enzymes of the fruits and vegetables, according to the company. The company’s Almond Breeze juice has 10 grams of protein and 6 grams of fiber per bottle.

Mix1 has debuted its three reformulated flavors: Chocolate, Strawberry/Banana and Blueberry/Vanilla. The new flavors include an increase in protein from 15 grams to 26 grams and new packaging that moved from tetra paks to 12 oz. PET bottles. The new bottles includes images of the ingredients as well as several key selling points on the front of the bottle, such as the protein count and its non-GMO status.

Detour Lean Muscle recently gained dis-

tribution in Gate Petroleum, Flash Foods, Circle K, Enmark, Village Pantry, Paradies Airport Shoppes and 7-Eleven Canada. It’s made with omega 3’s and uses diafiltered skim milk to aim for a rich, creamy drinking experience. This lactose-free shake is NSF certified and features 32 grams of protein, 26 vitamins and minerals.

NuAquos, which launched in January, has

added two new flavors: Orange and Kiwi-

50 BEVNET MAGAZINE JUNE 2014

Strawberry. The protein drink company originally launched with three flavors: Peach Mango, Pomegranate Acai-Blueberry and Watermelon. The product is formulated to rehydrate, promote recovery and restore nutrients. It contains 12 grams of protein, six electrolytes and 19 vitamins and minerals.

Rumble has redesigned its packaging for

the product’s U.S. debut. The product was created by co-founder Paul Underhill’s quest to make a beverage that is dense in nutrients, nutritionally balanced and tasty. It contains 22 ingredients, 20 grams of protein, 8 grams of fiber, 400 milligrams of calcium, antioxidants and 3,100 milligrams of omega 3’s.

The product is currently available in two flavors: Dutch Cocoa and Vanilla Maple.

Muscle Milk has recently launched an organic shake with 15 grams of protein and 120 calories per serving to help fuel workout recovery, provide sustained energy and help build strength with a gluten-free and soy-free formula. The products are certified organic and are sweetened with organic cane sugar and organic stevia. It will be available exclusively at Target beginning in July.

OMGBlends will be launching at Bristol Farms and Lazy Acres this month. The product is already available at select Lassens Market locations, Erewhon Markets in West Hollywood and Calabasas, Pacific Coast Greens in Malibu and Rainbow Bridge in Ojai, among other locations. The meal replacement smoothies contain 24-27 grams of protein and USDA certified organic almond milk that doesn’t have carrageenan. They’re also glutenfree, dairy-free, vegan and non-GMO. o2living has released new branding that

showcases ingredients and the product’s USDA organic certification. The company’s Almond Envy product combines almonds, cinnamon, nutmeg and dates to make a beverage compatible as a dessert or as a post-workout protein drink. It contains 390 calories, 12 grams of protein, 7 grams of fiber, 2.7 milligrams of iron, 200 milligrams of calcium and vitamins B1, B2, B3, B5, B6, B9 and E. ENU, a recently launched protein shake, is recommended by major cancer centers and

registered dietitians as nutritional support for patients who need to maintain a healthy weight, according to the company. The product, which comes in Chocolate and Vanilla flavors, contains 25 grams of protein and 480-490 calories per serving. It’s also gluten-free, kosher, halal, lactose-free and has no added sucrose, high fructose corn syrup or carrageenan. ENU is offering special introductory offers to retail outlets to support stocking in locations where professional recommendations are occurring.

Core Power has been named the official

protein drink of the FIFA World Cup. The company has signed Jozy Altidore, striker for the U.S. Men’s National Soccer Team, to represent the brand online and in social media, and also in point-of-sale displays that are hitting stores nationwide.

ICONIC, by Be Well Nutrition, Inc., is focusing on expanding its footprint in the Southeast and Northeast. The line of protein drinks are available throughout Louisiana at Rouses Supermarkets, other local grocery chains and gyms. The company is seeking new distribution partners to promote and distribute its beverages and meet increasing consumer demand.

Monster Energy has launched Muscle Monster Energy Shake, a blend of its core energy drink with 25 grams of protein, seven vitamins and minerals and 500 milligrams of calcium. The blend features a casein and milk protein concentrate that doesn’t need to be mixed and has a low viscosity, according to the company. Packaged in 15 oz. cans, the product is available in five flavors: Chocolate, Vanilla, Coffee, Strawberry and Peanut Butter Cup. Organic Valley has launched a performance-focused milkshake with 26 grams of protein and no artificial sweeteners. The product, which comes in Chocolate and Vanilla flavors, is recommended for muscle recovery after a workout. The products are Fair Trade, USDA Certified Organic and have no antibiotics, synthetic hormones, toxic pesticides or GMOs. The shakes are offered in 11 oz. single serving bottles and in 4-packs and 12-packs.

JUNE 2014 BEVNET MAGAZINE 51

FANCY FOOD SHOW · NEW YORK, NY

TRADESHOW PREVIEW

WHERE Jacob Javits Center New York, NY

WHAT Summer Fancy Food Show

WHEN June 29 – July 1 Floor Hours Sunday, June 29 10:00 am – 5:00 pm Monday, June 30 10:00 am – 5:00 pm Tuesday, July 1 10:00 am – 4:00 pm

WHO 2,400 Food and Beverage Exhibitors

ALPHABETICAL ATTENDEE LIST

COMPANY

BOOTH

COMPANY

Blossom Water, LLC

4831

Hella Bitter LLC

Brands of Britain LLC

1066

Brands Within Reach

4045

Bruce Cost Ginger Ale Buyer’s Best Friend, Inc. Canada Enterprises, LLC

BOOTH

COMPANY

BOOTH

4725

Pok Pok Som

4164

Herbal Water Inc.

942

Powell & Mahoney

4828

HINT, INC.

4122

Purity Organic

2572

958

Honest Tea, Inc.

2057

Q Drinks

4404

4070

icebox water

3982

RealBeanz Corporation, The

5422

4527

Icelandic Glacial Inc

5263

Runa

301

Celebes Coconut Corporation

145

ITO EN (North America)INC.

4526

Siggi’s Dairy

4508

Ceres Fruit Juices

4516

Jax Coco

5215

Smart Juices, LLC

4548

Cheribundi

4702

Joe Tea & Joe Chips

4426

Something Natural LLC

4569a

Chi Drinks

3805

Joia All Natural Soda

5049

Spindrift Beverage Co. LLC

4805

Choice Organic Teas

5474

JUST COCO

208

Stirrings, LLC

4806

Cocktail Crate

4746

Kobu Beverages, LLC

4745

Stonyfield

4062

COCOZIA Coconut Water

5345

Kohana Coffee LLC

4244

SVB Food & Beverage Company

4757

Dr. B’s Beverages, LLC

4759

Kombucha Brooklyn

4744A

The Ginger People

2863

Dream Foods International LLC.

5310

LaCroix

4169

TumericALIVE Healing Enterprise

5491

Eden Foods, Inc.

2836

LIVE Soda LLC

4751

United Juice Companies of America

5276

Epicurean Beverages

754

Mamma Chia LLC

4557

Vasinee Food Corp

5406

Eurobubblies

933

Marley Coffee

4049

Veri Soda Company

1149

Fentimans North America, Inc.

951

Maverick Brands, LLC

5377

FLUROwater, Inc.

5475

Motto

4822

Found Beverage Company

2871

Mountain Valley Spring Company

4448

Gota Water

3738

NEO North America Inc.

4067

GUS - Grown Up Soda

4558

Numi Organic Tea

2766

Harney & Sons Tea Company

4130

OatWorks

4147

Health-Ade, LLC

5336

Orchid Island Juice Company

1750

Hearttea Inc.

5238

Owl’s Brew

5273

52 BEVNET MAGAZINE JUNE 2014

TRADESHOW PREVIEW

INSTITUTE OF FOOD TECHNOLOGISTS · NEW ORLEANS, LA BEVNET IFT COVERAGE SPONSORED BY:

WHAT Institute Of Food Technologists (IFT)

WHERE New Orleans Convention Center New Orleans, LA

WHEN June 22– 24 Floor Hours Sunday, June 22 12:00 pm – 5:00 pm Monday, June 23 10:00 am – 5:00 pm Tuesday, June 24 10:00 am – 4:00 pm

WHO More than 18,000 of the world’s top food science and technology professionals

ALPHABETICAL ATTENDEE LIST COMPANY

BOOTH

COMPANY

BOOTH

COMPANY

BOOTH

ADM

3329

Briess Malt & Ingredients Co.

4318

Flavor House Inc.

1952

ADM/Matsutani, LLC

3229

Buckhorn, Inc.

1600

Flavorchem

5112

AIBMR Life Sciences

4548

Burdock Group

2311

Florida Food Products, Inc.

2219

AIDP Inc.

5213

California Natural Products

2117

Florida Products

4254

Aiya America, Inc.

4925

Cargill

3141

G3 Enterprises Inc.

1353

Ajinomoto North America Inc.

2234

Celanese

1619

Ganeden Biotech

4448

AloeCorp, Inc.

3313

Century Foods

825

GEA Group

3119

Amelia Bay

1943

CHR Hansen

311

GEA Westfalia Separator

3119

American Fruit & Flavors

1809

Columbia PhytoTechnology Powderpure

1049

Glanbia Nutritionals

1035

Ameriqual Group

1110

Corbion

Arizona Dairy Ingredients

5028

Corn Refiners Association

Aromatech

2303

Atlantic Chemicals Trading

4847

Axiom Foods

Glanbia Nutritionals (NA), Inc

1035

3422

Global Organics, Ltd.

741

CP Kelco

519

GNT USA, Inc.

1727

CreAgri, Inc.

2105

Gold Coast Ingredients, Inc.

835

703

Dairy Farmers of America

2501

Goodnature Products

3356

Barrington Nutritionals

1539

DMA, LLC

4823

Grimmway Farms

4150

BASF

5241

Dole Packaged Foods Co., LLC

4648

Hilmar Ingredients

4629

BatchMaster Software, Inc.

1300

Domino Specialty Ingredients

4841

Hormel Foods Corp. Specialty Products

924

Bell Flavors & Fragrances, Inc.

1025

Draco Natural Products

3522

HP Hood LLC

222

Beneo Inc.

4413

DSM

2435

Idaho Milk Products

4718

Bevsource

206

DSM Nutritional Products

2435

Imperial Sugar Company

4353

BI Nutraceuticals

4149

Dupont Pioneer

3155

Ingredia, Inc.

2923

Bioenergy Life Science Inc.

3257

Edlong Dairy Technologies

4829

Ingredion Incorporated

3641

bioMerieux Inc.

1304

EMD Chemicals, Inc.

2108

Innophos, Inc.

819

BioNeutra North America Inc.

5223

Erie Foods International, Inc.

5028

Innovative Food Processors Inc.

2557

Biothera the Immune Health Co.

4141

Evonik Corporation

3213

ITO EN (North America) Inc.

653

Blue California

453

Extracts & Ingredients, Ltd.

4153

Jiaherb, Inc.

2508

Blue Diamond Almonds

2545

Farbest Brands

1923

JK Sucralose, Inc.

619

Blue Marble Biomaterials

404

Flavor Consultants, Inc.

625

Jungbunzlauer, Inc.

2524

54 BEVNET MAGAZINE JUNE 2014

3341, 3452

TRADESHOW PREVIEW COMPANY

BOOTH

Kalsec, Inc

5131

Kellogg’s/Keebler Kemin Industries, Inc.

COMPANY

BOOTH

COMPANY

BOOTH

Pharmachem Laboratories, Inc.

3023

Tate & Lyle

3941

4441

PLT Health Solutions

4941

Techno Food Ingredients Co., Ltd.

800

2143

Prinova

1323

The Dow Chemical Company

1149

Layn USA, Inc.

1912

RFI Ingredients

2823

The Ingredient House

1224

Louis Dreyfus Commodities, LLC.

4353

Roha USA, LLC.

1545

The Scoular Company

4224

LycoRed Corp

416

Roquette America, Inc.

4728

The Wright Group

1335

MAFCO Worldwide Corporation

2008

S&D Coffee & Tea Extracts

1522

Thermo Pac LLC

1110

MAK Wood, Inc.

400

San Joaquin Valley Concentrate

3012

Tradin Organics USA

1445

Matsutani America Inc.

5423

Sensient Flavors

5547

Trilogy Essential Ingredients, Inc.

1146

Mayer Brothers, Fruit Fibers

1054

Sethness Caramel Color

2009

Univar Food Ingredients

519

Milne Fruit Products, Inc.

5351

Solazyme, Inc.

5641

Vegetable Juices, Inc.

3512

Multisorb Technologies

1817

Stepan Lipid Nutrition

4712

Vicinity Manufacturing

2410

Natural Flavors Inc. / Elan Inc.

846

Suan Farma, Inc.

1607

Vida-Blend, LLC

2356

Natural Soda, Inc.

2814

SunOpta

1445

Virginia Dare

3131

Naturex

2829

Sunsweet Growers

1417

WACKER Chemical Corporation

3613

Nexira Inc.

5431

SVZ - USA

4249

Watson, Inc.

1734

Nitta Gelatin NA, Inc.

2551

Sweet Green Fields, LLC

4747

Weber Flavors

5323

Novozymes

2849

SweetLeaf Stevia Sweetener

1606

WILD Flavors, Inc.

3529

NSF International

3056

Synergy Flavors Inc.

5331

Ogawa & Co. Ltd. (Avri Companies, Inc.)

3518

Taiyo International

1652

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JUNE 2014 BEVNET MAGAZINE 55

PROMO PARADE

Promotions, events and specials for the industry

Sauza 901 Launches Social Media Campaign Featuring Justin Timberlake Sauza 901 Tequila introduced its first digital media campaign featuring founder and co-owner Justin Timberlake to encourage legal-purchase-age millennial consumers to rethink the definition of premium tequila. The “Premium Re-

mastered” year-long campaign shows how a relentless pursuit of perfection doesn’t have to be pretentious and exclusive, but like the brand’s founder, can be approachable and entertaining.

The campaign showcases the Sauza 901 brand’s unique

personality while engaging Justin Timberlake’s expansive social following. The creative establishes the parallels between the legendary Don Sauza, The Father of Tequila, and Justin Timberlake, a modern day pioneer whose creative visions redefine

industry norms today. The campaign’s first video, entitled “Don Sauza’s Diary,” combines a nod to the past with elements of the present, using a fictional diary as interpreted by Justin Timberlake to bring to life Don Sauza, the Sauza brand’s founder.

Jim Beam Fills Record 13 Millionth Barrel of Bourbon In April, Jim Beam made history by achieving a bourbon industry first by filling its 13 millionth barrel of bourbon since the repeal of Prohibition in 1933. The barrel was personally filled and sealed by Fred Noe, Jim Beam’s great-grandson and seventh generation master distiller, at the company’s flagship distillery in Clermont, Ky. Also on hand to celebrate the milestone was Freddie Noe, an eighth generation Beam who also works at the distillery.

According to Noe, 13 million barrels of bourbon would: • Yield more than 285 million cases of Jim Beam Bourbon • Fill more than 3 billion bottles of Jim Beam Bourbon • Create more than 56 billion bourbon cocktails – enough for every person on Earth to enjoy one Jim Beam cocktail every day for seven days straight; • Stretch from the United States to China via the Pacific Ocean, when stacked end to end • Reach the top of the world’s tallest building, the Burj Khalifa in Dubai, 14,000 times when stacked end to end The 13 millionth barrel will be aged inside the distillery’s historic rackhouse D, a nine-story rackhouse re-built by Jim Beam and his son, T. Jeremiah, after Prohibition, right on the distillery grounds and open to Beam’s bourbon fans who come to tour the Jim Beam American Stillhouse.

56 BEVNET MAGAZINE JUNE 2014

Dr Pepper Launches Music Studio

TEAS’ TEA Launches Tea Master Trivia Game Show TEAS’ TEA, the award-winning ready-to-drink tea made by the Brooklyn based beverage company, ITO EN (North America) INC., has launched an On-line Trivia Game Show to become a Tea Master.

Participants can enter every day at PlayTeaMaster.com, to win a chance for a Grand Prize Trip to Hawaii and other daily prizes to include $50 Gift Cards to spend on outdoor gear and clothing at REI. Over 100 daily prizes will be awarded, with participants learning new trivia each day.

Game players will receive points by answering tea facts and trivia on Facebook, becoming a Tea Master as they progress through the game levels. With Who Wants To Be A Millionairetype questions, participants can expand their knowledge on the expansive world of tea. The Summer promotion runs until September 1, 2014, with the Tea Master Grand Prize winner be awarded a weeklong, all expenses paid trip to the Kahala Hotel & Resorts-voted #1 Oahu’s hotel by Travel & Leisure 2014.

The Tea Master Trivia Game Show can be played on Facebook. com/itoen.teastea, #TeaMaster and Instragram.com/teastea.

Dr Pepper has launched its first music studio in partnership with Complex Media, the premier multi-media lifestyle destination for young males.

Located in Hollywood, CA, the cutting-edge facility is an exciting new recording home for musical artists, starting with an exclusive series of three “One of a Kind” EPs produced by some of today’s leading and emerging talent.

The first EP to be released, “Only One Place to Get It,” produced by RZA, is now available on Complex.com.

The studio will also host a series of intimate listening events with talent and fans.

Each four-track EP will feature the songs of one of three leading producers who will each work with the same four artists. The producers are RZA, The Hood Internet and David Andrew Sitek, and the musicians are Robert DeLong, Rockie Fresh, Tinashe and RAC. In addition, Complex will produce video profiles of each of the producers and artists featured in the One of a Kind series. The EPs and videos will be posted at Complex.com/DrPepper.

The studio, located in the heart of the renowned and thriving Los Angeles music scene, will be the site of ongoing recording sessions with an array of talent. Dr Pepper and Complex Media selected each of the artists and producers in the One of a Kind studio recordings following an intensive search.

PHOTOS COURTESY INSTAGRAM.COM/DRPEPPER

JUNE 2014 BEVNET MAGAZINE 57

Pure Leaf Iced Tea Partners with Gail Simmons to Bring Fresh Produce to Communities Nationwide

Pure Leaf Iced Tea, a product of The Pepsi Lipton Tea Partnership, proudly announced today it is continuing its partnership with Gail Simmons, TV personality and Special Projects Director at Food & Wine magazine, to support the campaign’s mission of bringing fresh fruits and vegetables to communities nationwide. Through the brand’s “Share the Love of Leaves” program, Pure Leaf fans can get involved and make a difference in their communities by helping the brand donate up to $150,000 total to

Wholesome Wave, a nonprofit that focuses on making fresh, healthy, locally grown food affordable and accessible to all.

The center of the “Share the Love of Leaves” program is Pure Leaf’s newly launched Tumblr page (www.TheLoveOfLeaves.com), which will serve as a destination for fans to follow the program and experience the brand’s passion for realness through recipes, household tips, DIY projects and daily inspiration all while keeping an eye on how the donations

add up through the summer. Consumers can “Share the Love of Leaves” on social media to trigger a donation and support the mission. For every social engagement from fans on Pure Leaf’s Facebook or Tumblr, and use of the #loveofleaves hashtag on Instagram and Twitter, Pure Leaf will donate an additional $1, up to $50,000, for a grand total donation of $150,000. This will help provide 100,000 pounds of locally grown fresh fruits and vegetables for communities nationwide.

Ruth’s Chris Steak House Partners with Silver Oak Cellars on National Wine Dinner Ruth’s Chris Steak House recently teamed up with Silver Oak Cellars and Twomey Cellars on a five-course, price fixe dinner that paired Ruth’s signature dishes with several featured offerings from the wineries.

The menu included Twomey Cellars’ Sauvignon Blanc with red & golden beet frisee salad with goat cheese, caramelized pecans, and aged sherry vinaigrette, osso buco ravioli with wild mushrooms and aged parmesan cheese paired with the Silver Oak’s 2009 Alexander Valley Cabernet Sauvignon, and filet mignon topped with tarragon herb butter, served sizzling and paired with Silver Oak’s 2009 Napa Valley Cabernet Sauvignon.

58 BEVNET MAGAZINE JUNE 2014

Now in its 42nd year, Silver Oak remains family owned and operated by Co-Founder Ray Duncan’s sons David (President and CEO) and Tim Duncan (Vice President of Sales and Marketing). In 1999, the Duncan family established Twomey

Cellars to pursue Merlot, Pinot Noir and Sauvignon Blanc varietals. Both Managing Partners David and Tim Duncan hosted dinners at the Ruth’s Chris Steak House locations in San Francisco and Walnut Creek, Calif., respectively.