Beverage Spectrum Jan-Feb 2008

JANUARY – FEBRUARY 2008

BIG buzz ALSO THIS ISSUE: INSIDE BEVNET’S BEST OF 2007 EXPO WEST PREVIEW FANCY FOODS WEST IN REVIEW

JANUARY – FEBRUARY 2008

vol.

6 :: no. 1

2007

24

30

Cover Story

30 :: DOMESTIC BEER

Departments

8 :: BEVSCAPE

BOUNCES BACK

Kentucky Feud: State Rep. vs.

It’s been two years since “Here’s to

Energy Drinks

Beer,” and the ducks are in a row 12 :: CHANNEL CHECK

for a big domestic surge.

Smooth(ie) Talkin’

Features

14 :: NEW PRODUCTS

24 :: BEVNET’S BEST OF 2007 A look at how the winners did it.

All-City for AriZona.

34 :: NATURAL FOODS EXPO

40 :: PROMOTION PARADE Nestle Pure Life on the playground.

WEST PREVIEW Who’s there, and where they’ll be.

36 :: FANCY FOODS WEST IN REVIEW

Columns

4 :: THE FIRST DROP Confessions of a wallflower

Enhanced waters by the San Diego Bay.

6 :: PUBLISHER’S TOAST It’s the taste 20 :: GERRY’S INSIGHTS What to watch

Beverage Spectrum is published monthly with combined issues in January/February, May/June, July/ August and November/December by Beverage Spectrum Publishing, Inc., a wholly owned subsidiary of BevNET.com, Inc. One Mifflin Place, 3rd Floor, Cambridge, MA 02138. Periodicals postage paid at Boston, MA and additional mailing offices.

POSTMASTER: Please send address changes to Beverage Spectrum Magazine, Subscriber Services, One Mifflin Place 3rd Floor, Cambridge, MA 02138-9917.

JANUARY – FEBRUARY 08 :: BEVERAGE SPECTRUM

3

THE FIRST DROP

WALLFLOWER CONFESSIONS his issue couldn’t have come at a worse time for yours truly.

Here we are, getting showered with products from all manner of brewers, and I’m beached like a too-jolly whale on the South Beach Diet, a victim of a half-decade’s indulgence. The party isn’t stopping here, and when it does, there’s a big pile of energy drinks to help everyone out.

Except for poor, salad-eating me. Sigh.

Too bad. Because when it comes to all things beer, times are good. Craft brewers are on a fiveyear winning streak. The big guys seem to have sharpened their games as a result, establishing the twin trick of consolidating their marketing efforts behind their main brands while broadening their offerings through innovation.

In short, they’re thinking about consumers again, and in a way that recognizes the consumer as an individual who might need to be convinced and educated as to the merits of a particular product rather than someone who will just follow the herd to a trough of whatever they’re offering.

What a party. But it can end, and easily.

Rising materials costs are hitting craft brewers

4

hard, as are increased transportation costs and, as of this writing, so are recession-related blows to the collective consumer wallet. Given the important role the craft brewers had in pushing the big guys to start paying attention to quality again – and to start re-emphasizing the quality that was already inherent in their portfolios – blows to the high-end group of brewers could indeed hurt the entire industry.

So as retailers, even as things start to swing in the direction of the big brewers, it’s important to not forget where they’re finding their energy.

Don’t forget to keep higher end stuff in stock – some of the new faces who are coming into your stores in search of the “Great American Lager” or the “Banquet Beer” are going to keep coming back in search of other varieties.

And if you see a guy in the back of the aisles, slinking around, looking at all that great stuff, clutching a stalk of celery, and sobbing, tell me it looks like the diet is working. That way, I might be able to re-join the party.

Speaking of parties, we had one of our own recently, with BevNET’s Best of 2007 awards.

The winners are covered extensively in the pages

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

that follow, as are the possible next generation, who are pictured in our report from Fancy Foods West. So get out there and have a great time – just beware the ol’ freshman fifteen!

PUBLISHER’S TOAST

IT’S THE TASTE, STUPID! any people in the industry consider this a golden age for beverages.

For decades, it was simply classic carbonated soft drink flavors, juices, plain and chocolate milk, full bodied beers and tap water. In the 1980’s we all witnessed the first steps toward innovation – aside from light beers – taken by New York Seltzer, Clearly Canadian, Quest and others who dabbled in adding different flavors into the tried and true. Following those early pioneers came some of our most creative and revolutionary brands, including Snapple and AriZona. The flood gates had opened.

Soon, hundreds of products were being launched and consumers were exposed to a myriad of choices. SoBe, Jones and vitaminwater became headliners for a new generation of exciting products. And the range and variety has only increased with the discovery of new fruits and functions.

So now we are in what should be the best of times for beverages. Combining years of innovation with functionality should make for beverage nirvana. But I’ve got to tell you, someone keeps screwing up one of the fundamentals.

See, every day, I speak with beverage marketers who extol the virtues of this brand or that one that will be the next great thing. They detail their position, packaging and marketing commitment to making it a success. Frequently, a picture of Lindsay Lohan sipping the drink in question is enclosed. Excitedly, I ask to be sent a sample of their labor of love. I receive the shipment, immediately put it in my refrigerator, (note: readers of this column are aware that my refrigerator is a favorite perk!) and look forward to tasting it when chilled.

That’s when my anticipation runs smack into sour, bitter reality.

6

See, more often than not these days, the first sip, and the next and the next are just plain disappointing. These products, they aren’t drinkable. I cannot tell you how many times I try a product and say, “what were they thinking?”

I have a simple credo when it comes to beverages, and I can assure you that the consumer is in lockstep with me on this. THEY MUST TASTE GOOD. When I look at the brands that have become standards in the industry, they all had one thing in common. Taste.

To those of you who actually read my column, you know I constantly promote all the innovation, the functionality, efficacy, the health benefits, and the natural ingredients that manufacturers are using to invigorate their beverages.

Eventually, I know they will take the industry to the next level. Yet in their zeal to create the cutting-edge brand, many marketers are leaving out the most important part of the equation: their beverages must be a joy to drink.

I write this column as a beverage magazine publisher and, more importantly, as a consumer. There is nothing better that a great tasting drink. Create them and we will truly have a golden age for beverages. Otherwise, we’ll all just be drinking our medicine.

PUBLISHER Barry J. Nathanson bnathanson@bevnet.com EDITOR Jeffrey Klineman jklineman@bevnet.com ASSOCIATE PUBLISHER John McKenna jmckenna@bevnet.com ART DIRECTOR Matthew Kennedy mkennedy@bevnet.com GRAPHIC DESIGNER Amadeu Tolentino atolentino@bevnet.com STAFF WRITER Matt Casey mcasey@bevnet.com PRODUCTION MANAGER Adam Stern astern@bevnet.com BUSINESS MANAGER John Schinn jschinn@bevnet.com SUBSCRIPTION INQUIRIES Adam Stern astern@bevnet.com 617-715-9679 ONLINE RENEWALS & CHANGES www.bevspectrum.com/subscribe ARTICLE REPRINTS (500 copies or more) FosteReprints 800-382-0808 x142

BEVERAGE SPECTRUM PUBLISHING INC. CHAIRMAN John F. (Jack) Craven jack@bevnet.com PRESIDENT & EDITORIAL DIRECTOR John Craven jcraven@bevnet.com

EDITORIAL 1 Mifflin Place, Suite 300 Cambridge, MA 02138 ph. 617-715-9670 fax 617-715-9671 ADVERTISING 1123 Broadway, Suite 210 New York, NY 10010 ph. 212-647-0501 fax 212-647-0565

Barry J. Nathanson, Publisher

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

BPA Worldwide Member, June 2007

Add “win mon to Mom’s “to ey” do” list.

Mom as Chief Health Officer

is the new milk promotion to help you sell more milk. It’s a May/June event featuring in-store POS and a sweepstakes giving Moms the chance to win $100,000 by entering online at whymilk.com. It’s exciting and it’s easy. All you need to do is post the POS materials.

Call your processor or ADA representative now, or call the MilkPEP Hotline at 1-800-945-MILK.

©2008 America’s Milk Processors. got milk?® is a registered trademark of the California Milk Processor Board.

S

08

3/01/

BY 0 IGN UP

Bevscape

WHAT’S HAPPENING ACROSS BEVERAGES

DIET COKE FIGHTS HEART DISEASE – WITH A SUPERMODEL! Supermodel Heidi Klum is joining Diet Coke to help raise awareness of women and heart disease through the Diet Coke Red Dress Program. The program is part of Diet Coke's new partnership with The Heart Truth, a national awareness campaign about women and heart disease, sponsored by the National Heart, Lung, and Blood Institute (NHLBI), part of the National Institutes of Health.

Klum will play a key role in the Diet Coke Red Dress Program by wearing a red dress, the national symbol for women and heart disease awareness, to the Academy Awards presentation on February 24, 2008. Beginning January 17, consumers will have the chance to win Klum's dress through a Diet Coke sweepstakes at mycokerewards.com that benefits the Foundation for the National Institutes of Health (Foundation for NIH). Klum's original couture dress will be created by renowned designer John Galliano of Dior.

Additionally, to celebrate American Heart Month in February, Diet Coke’s Red Dress Program will take center stage at high-profile

8

events, including sponsorship of The Heart Truth’s Red Dress Collection fashion show at Fashion Week 2008. Diet Coke will also unveil new packaging and programs featuring The Heart Truth and Red Dress logos and messages on heart health.

The program will kick off on February 1, National Wear Red Day, when Diet Coke presents the annual Red Dress Collection Fashion Show at Mercedes-Benz Fashion Week 2008. In what’s become one of the hottest tickets at Fashion Week, the Red Dress Collection will feature one-of-a-kind dresses made by top fashion designers and worn by celebrities on the runway to show their support of The Heart Truth campaign and the Red Dress – the national symbol for women and heart disease awareness.

In support of raising awareness of women’s heart disease Diet Coke will unveil new packaging featuring The Heart Truth and Red Dress logos on Diet Coke, Caffeine-Free Diet Coke and Diet Coke Plus products.

Two and a half billion new packages, which include tips and information on women’s heart

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

health, will be on shelves from January 22 through May 31. Diet Coke will amplify the message through a national television, print and online advertising campaign. Additionally, Diet Coke will be making a contribution to the Foundation for the National Institutes of Health, Bethesda, MD, which will be used to further efforts of women’s heart health awareness and research. Coca-Cola North America will also launch a nationwide program to help raise awareness and provide education about women’s heart disease among its own associates. The month-long campaign will reach more than 5,000 associates through hearthealth activities such as educational luncheons and on-site health screenings.

Bevscape

WHAT’S HAPPENING ACROSS BEVERAGES

LEGISLATING LIQUIDS From a regulation point of view, we’re going through a fairly hot period when it comes to the beverage industry. Here are some highlights that we’ll be following: Two Democratic representatives asked the Government Accountability Office to investigate what effect the bottled water industry has on consumer health and the environment. Albert Wynn (D-MD) and Hilda Solis (D-CA) noted that the bottled water market has exploded while the U.S. has what they called “one of the safest supplies of tap water in the world.”

Their request also asked the GAO – which functions as the federal government’s internal watchdog – to investigate Environmental Protection Agency standards and procedures regarding pollutants in drinking water.

Kentucky state representative Danny Ford (R-Mt. Vernon) introduced a bill that would ban the sale of energy drinks in his state to anyone under the age of 18. Ford said a student from Brodhead Ky. inspired the bill when he submitted his heart-rate-raising experience with an energy drink for a contest Ford called “It Ought to be a Law.” Industry professionals said the bill unfairly targets energy drinks.

Ford said he received a positive response to the bill, which has been assigned to Kentucky’s Health and Welfare Committee, but has not yet been heard there.

Hawaii may follow the example set by Chicago, which recently instituted a five-cent per-bottle tax on bottled water. The bill currently before Hawaiian legislators would expand Chicago’s precedent and levy a five cent surcharge on each bottle of water sold or produced in the state – though language in the bill would prevent any bottle from being taxed by the state twice. The IBWA has challenged Chicago’s law in court, and said Hawaii’s bill, which would take effect Oct. 1, would damage the economy and inhibit consumers’ ability to buy beverages free of sweeteners and artificial color and flavorings.

OMG: IT’S THE OG’s.

OR MAYBE NOT. We were all ready to tell you all about famous running back Jim Brown’s new beverage venture, OG Nation, but now we aren’t.

The company has switched over to a new moniker, Hall of Fame Beverages. *note: Apparently, there’s some sort of lawsuit going on between the pink sheet shell company that backed OG Nation and OGs themselves.

But anyway, it looks like most of the drinks are the same. Hall of Fame is still promising a pair of truly Funkadelic energy SKUs in Atomic Dogg and Atomic Dogg Sugar Free. Most delightfully, however, there’s still the Larry Johnson Beverage Division, featuring Grandmama at his finest, dunking into a bottle of sweet tea.

We can’t wait. But we have a feeling we’ll have to.

COSTCO GETS INTO THE BEER BUSINESS NESTLE AND JAMBA GO FROM JUICE BAR TO YOUR STORE Here’s one to watch: Nestle and Jamba Juice have announced a worldwide licensing agreement to produce and distribute a line of RTD beverages under the Jamba brand name.

The products will launch domestically in the spring of 2008 in a distinctly New Age package: Smoothies, which include low-fat milk, and Juicies, which include non-fat milk.

Both will contain vitamin and mineral boosts similar to the ones added in to Jamba Juice products in their retail stores.

Jamba Juice has nearly 700 stores worldwide, while Nestle is one of the world’s largest food companies.

10

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

Under its Kirkland Signature label, Costco has long sold dry and paper goods, as well as private label knockoffs of everything from pine nuts to paper towels.

But now the warehouse giant is moving into the beer game. The company has been approved for sales of amber ale, pale ale and hefeweizen, along with a pilsner. Domestic brewer Gordon Biersch has signed on to product the brews.

While store-brand and generic beer has not been a winner in the past (who can forget generic yellow cans with “BEER” on the side) the upscale nature of Costco might be a good fit. The brewer has already made beer for quirky gourmet house Trader Joe’s for several years.

Costco and Trader Joe’s both also sell private label wines and sodas.

Channel Check

january – february 2008

SPOTLIGHT CATEGORY

SMOOTHIES 52 Weeks ending 12/2/2007 Smoothies grew by leaps and bounds last year, with sales up more that $30 million, or nearly 28 percent. But one company that didn’t seem to be taking advantage of that share growth was enfant terrible Bolthouse Farms, whose sales dropped nearly seven percent in the past year. Meanwhile, being in the Pepsi system seems to have energized category leader Naked, which saw big growth in its superfood and energy smoothies. Among the smaller guys, Sambazon continues to expand, crossing the million-dollar mark for mainstream supermarkets. Expect more in the year to come.

TOPLINE CATEGORY

VOLUME

52 Weeks ending 12/2/2007

SMOOTHIES

Dollar Sales

Change vs. year earlier

Category Total

$136,122,700

27.6%

Naked Juice

$40,969,040

22.4%

Odwalla

$32,389,370

21.2%

Bolthouse

$17,904,770

-6.9%

Naked Superfood

$11,874,260

35.8%

Naked Energy

$9,980,047

168.9%

Bolthouse Farms Boost

$7,708,826

3.3%

Bolthouse Farms

$5,958,799

514.3%

Tropicana Fruit Smoothie

$3,386,587

-0.9%

Private Label

$2,712,304

91.0%

Sambazon

$1,112,214

67.6%

SunnyD Fruit Smoothie

$634,941

N/A

Naked Well Being

$317,368

82.4%

Naked Fruit Smoothie

$296,324

N/A

Ocean Spray Growers Reserve

$212,344

39,368.1%

Heading Up: Naked Juice SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

CSD’s

ENERGY DRINKS

$13,487,150,000 -1.6%

$806,551,600 25.8%

BOTTLED WATER

SPORTS DRINKS

$5,170,349,000 10.1%

$1,699,440,000 4.8%

BEER

TEA/COFFEE

$9,374,654,464 3.5%

$1,457,521,000 21.5%

BOTTLED JUICES $3,777,552,000 3.6%

12

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

RTD TEA

Dollar Sales

Change vs. year earlier

ENERGY

Dollar Sales

$338,693,600

Change vs. year earlier

22.8%

AriZona

$290,711,500

7.7%

Red Bull

Lipton

$269,189,300

69.4%

Monster

$133,894,200

45.4%

Snapple

$133,621,000

18.4%

Rockstar

$95,535,120

31.3%

Full Throttle

$46,251,620

5.0%

$28,026,250

14.5%

Lipton Brisk

$88,313,440

3.8%

Diet Snapple

$84,132,100

-3.0%

Amp

Nestea

$67,315,620

67.2%

SoBe No Fear

$27,401,500

-20.3%

$15,681,820

-17.0%

Lipton Iced Tea

$50,610,120

-6.8%

SoBe Adrenaline Rush

Private Label

$35,108,360

12.1%

Monster XXL

$12,485,590

120.9%

Nestea Enviga

$30,063,530

13,345.3%

Rockstar Juiced

$12,348,140

642.4%

Tab Energy

$9,922,147

-28.5%

Lipton Pureleaf

$18,628,420

N/A

52 Weeks through 12/2/07 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

Heading Up: Rockstar Juiced

RTD COFFEE/CAPPUCCINO

Dollar Sales

CONVENIENCE/PET STILL WATER

Frappuccino

$187,857,600

4.0%

Doubleshot

$26,181,220

Heading Up: Enviga

Change vs. year earlier

52 Weeks through 12/2/07 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

Dollar Sales

Change vs. year earlier

Private Label

$649,721,400

23.5%

-8.3%

Aquafina

$513,733,200

2.4%

$453,700,500

5.1% 130.3%

Starbucks Iced Coffee

$13,877,540

76.5%

Dasani

Bolthouse

$11,949,740

56.8%

Glaceau Vitaminwater

$372,248,400

Doubleshot Light

$10,930,870

63.0%

Poland Spring

$253,869,500

0.2%

Propel

$194,594,600

-0.9%

Arrowhead

$187,699,700

9.4%

Godiva Belgian Blends

$9,847,286

417.1%

Cinnabon

$1,836,315

N/A

Private Label

$1,332,450

241.8%

Deer Park

$146,162,600

7.7%

$122,056,000

42.3%

$108,799,300

16.9%

Hillside

$670,822

245.9%

Nestle Pure Life

Caffe D Vita

$369,646

20.1%

Crystal Geyser

Heading Up: Glaceau Vitaminwater

SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

52 Weeks through 12/2/07 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

IMPORT BEER

Dollar Sales

SPORTS DRINKS

Corona Extra

$484,947,968

-1.0%

Gatorade

$640,296,800

-8.4%

Heineken

$319,269,792

4.9%

Powerade

$250,239,300

20.7%

Corona Light

$133,845,288

7.6%

Gatorade Rain

$158,661,500

34.3%

Tecate

$94,159,584

10.5%

Gatorade Frost

$142,681,600

-1.5%

Heineken Light

$71,924,640

39.6%

Gatorade All Stars

$131,841,900

21.5%

Modelo Especial

$60,534,940

12.5%

Gatorade Fierce

$92,675,820

-5.2%

Newcastle

$52,665,024

10.0%

Gatorade X Factor

$83,632,610

-14.8%

Guinness Draught

$50,772,548

6.6%

Gatorade A.M.

$67,393,840

32,786.5%

Labatt Blue

$49,490,452

-0.7%

Powerade Option

$20,074,480

24.3%

Becks

$45,360,896

9.2%

Gatorade Xtremo

$12,450,570

-30.9%

Heading Up: Godiva Belgian Blends 52 Weeks through 12/2/07

Heading Up: Heineken Light

Change vs. year earlier

52 Weeks through 12/30/07 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

Dollar Sales

Change vs. year earlier

Heading Up: Gatorade A.M.

52 Weeks through 12/2/07 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

JANUARY – FEBRUARY 08 :: BEVERAGE SPECTRUM

13

NEW PRODUCTS DAIRY SolMaya Brands, a registered brand of Presto Food & Beverage, Inc. has launched its new line of delicious Hispanic-targeted flavored ready-todrink dairy beverages, including a Mexican Style Horchata, a Horchata Sabor de Morro, a Morir Sonando (Orange Jubilee) and Avena (Oatmeal Shake). SolMaya Brands has put these four nostalgic Latin American flavors into modern, shelfstable ready-to-drink packaging, including 9.5 oz. glass bottles and 12 oz. aluminum cans. For more information please call (973) 632-9170.

SPIRITS San Francisco-based Delicious Brands recently launched White Lotus, the first in a new line of premium “lifestyle-enhancing” vodkas. White Lotus combines premium vodka with all-natural ingredients. Lotus can now be found in more than 200 select restaurants and lounges in Northern California and is expected to start appearing in Los Angeles and other key markets. More formulations of Lotus are soon to follow. A portion of the proceeds from White Lotus will be donated to local charities that promote health and the arts.

The vodka is made locally in the Bay Area and the packaging makes extensive use of recycled materials. For more information, call (323) 337-9042.

Hood River has launched ULLR Nordic Libation, a peppermint cinnamon schnapps named for the mythical Norse god of skiing, ULLR (pronounced Ooh-ler), a fierce Viking bowman. ULLR has been introduced in several Western states this year, primarily in areas where winter sports rule, like Bend, Mt. Bachelor and Mt. Hood, Ore., Aspen and Breckenridge, Colo., Jackson Hole, Wyo., Park City, Utah and Sun Valley, Idaho. Each 750ml bottle contains 45 percent alcohol by volume and is about $22.95. Hood River Distillers of Hood River, Ore. is the distributor and marketer of the new product. For more information, call Hood River at 503-574-3693.

Heaven Hill Distilleries, Inc., producers of the Burnett’s Gin and Vodka franchise, have addedStrawberry as the 16th flavor to one of the industry’s largest portfolios of flavored vodka. Burnett’s Strawberry Vodka is available in PET 1.75 L and glass 1 L and 750 mL sizes. It is bottled at 35 percent alcohol by volume (70 PROOF). The launch of the new flavor will be supported by POS for both floor displays and shelf facings, as well as sales

14

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

education materials. The Burnett’s website (www. burnettsvodka.com) will also provide information and appetizing drink recipes for all the flavors. For more information, contact Heaven Hill Distilleries, Inc. at (502) 413-0219.

Hiram Walker, the diverse line of premium liqueurs made with all-natural flavors, continues its long tradition of innovation with the introduction of Hiram Walker Melon Liqueur. This product is a delicious honeydew melon flavored liqueur made with all-natural flavors. The launch of Hiram Walker Melon Liqueur capitalizes on the continued popularity of flavored cocktails and reinforces Pernod Ricard USA’s commitment to solidifying Hiram Walker’s position as a leading player in the dynamic liqueurs category. The launch of Hiram Walker Melon is being supported with pre-packed recipe neckers. Melon will be available in 750 mL and 1 L sizes and will be sold – along with other top Hiram Walker Liqueur flavors – at a suggested retail price of $9.99 for the 750 mL. Stolichnaya Vodka, the genuine Russian vodka, has announced the addition of two new size offerings for its ultra-luxury vodka, Stoli elit. As of November, 2007, Stoli elit is available in a 1.75 L and 50 mL trial size in addition to the 750 mL and 1 L sizes currently available, Stoli elit 1.75 L and 50ml are available for a suggested retail price of $129.99 and $8.99 respectively. For more information, call 203.254.8225 Coole Swan is a new spirit that uses the best cream from Irish dairies, real Irish Single Malt Whiskey, and cocoa instead of sugar. It is an all natural cream liqueur with no artificial colors, flavors or preservatives. Coole Swan is currently available in New York in 750 mL and 1 L at an average retail price of $24.99 and $34, respectively.

For more information, call (646) 329.9355.

Tullamore Dew Irish Whiskey is unveiling a new crock just in time to celebrate St. Pat’s this year.

With its deliciously smooth taste, Tullamore Dew boasts an impressive 20 international awards and medals. Distilled three times for maximum purity and aged in high-quality oak casks, Tullamore Dew comes in a range of blends. The SRP is $32.99 for the 750 mL crock. Distribution is nationwide. For more information, call (212) 477-8090.

BEER Crown Imports will begin shipping the new Corona Extra can 12-pack from Mexico in mid-January for March placement at retail. The 12-pack was

developed in large part a response to sales of the new blue Corona Extra 12 oz. can, which launched earlier this year. The 12-pack design complements the can design and features bold logo and can graphics. POS materials including case cards, shelf strips, static stickers, floor graphics and displays will help retailers to increase Corona Extra can 12-pack sales and garner additional shelf/ display space. For more information, call Crown Imports at (312) 873-9279.

MALT BEVERAGES Diageo has added three products to its fast-growing Progressive Adult Beverages (PAB) category: Smirnoff Ice Light, Smirnoff Ice Strawberry Açai

and Captain Morgan Parrot Bay Mojito. Smirnoff Ice Light is the latest addition to the Smirnoff Ice line of flavored malt beverages, bringing together the top selling PAB brand with the fast-growing luxury light segment. One bottle contains only 110 calories and offers consumers a crisp-tasting alternative to light beer. It is available in 6-packs and variety packs at the suggested retail price of $7.49; 12-packs will also be available. Smirnoff Ice Strawberry Açai has a hint of Brazilian fruit açai.

Available in 6-packs at the suggested retail price of $7.49; it will also be included in new Smirnoff Ice variety packs and will be offered in 24 oz. bottles. The Captain Morgan Parrot Bay Mojito brings consumers the island flavor of the hugely popular Mojito. It will be available at the same price point and in the same package sizes as the Smirnoff Ice line. For more information, contact Diageo at (646) 223-2040.

ENHANCED WATER

NEW DRINK REVIEWS ToniX Energy Soda Vignette Rosé Soda Steaz Decaf Sparkling Green Teas Bing Energy XS Black Cherry Cola Energy Purple Howling Monkey Energizing Elixir Antimatter Energy

Hint Inc. has unveiled four new flavors: Hibiscus Vanilla, Watermelon, Honeydew Hibiscus and Blackberry will be joining Hint’s nine other popular flavors. These four new enticing flavors are a great addition to the all-natural and sugar-free line and will help expand Hint’s message of simple, great tasting water without all the junk. Each 16 oz. bottle is $1.79, with 24-bottle cases available for $44.00. All of Hint’s flavors can be found in fine grocery stores and major retailers, such as Whole Foods and Stop & Shop, all over the United States.

For more information, call 212) 584-4299.

Gatorade G2 A&W/Sunkist Floats Nurture by Nature bot Fortified Water Flavorbrazil Açai Energy RAGE Energy Snapple Super Premium Juice Drinks Skin Ultimate Performance Energy Brawndo: The Thirst Mutilator Opta Energy O Water Infused Playboy Energy

From December 17, 2007 to press time.

To see reviews, visit www.BevNET.com

16

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

TEA Bigelow Tea and AriZona Beverages are teaming up to offer retailers and tea drinkers a new line of bottled ready-to-drink chai teas. Bigelow Tea’s new ready-to-drink flavors are available in Mocha Chai Latte and Vanilla Chai Latte. These 10 oz. bottles offer consumers a convenient, on-the-go beverage choice with an MSRP of $1.79 per bottle. After initial testing in New York and Florida, a national rollout will follow and continue throughout early 2008 in grocery stores and convenient stores. For more information, please call AriZona at (513) 357-4750.

Honest Tea will be expanding its reach to consumers by introducing two brand new teas: Citrus Decaf Spice Tea and Jasmine Green Energy Tea. The company has also added two new varieties to its line of 64 oz. bottled teas: Mint Green Tea

& Mango Acai White Tea. Jasmine Green Energy Tea earned its name not only because it’s a naturally invigorating blend of green and white teas, but because Honest Tea buys renewable energy credits to offset the CO2 emissions generated from the production of the tea. Lightly sweetened, Jasmine Green Energy contains just 17 calories per serving. Citrus Decaf Spice Tea takes Honest’s traditional smooth black tea and spices it up with everything from tangy cinnamon to an Amazonian superfruit called cupuaçu. A member of the cocoa family, cupuaçu has a creamy, citrus taste and is loaded with antioxidants. A hint of agave and a low glycemic sweetener creates a perfect balance between great taste and good health. Citrus Decaf Spice with Cupuacu contains 17 calories per serving. For more information, call Honest Beverages at (651) 228-9141.

SPARKLING JUICES Apple & Eve has launched of Fizz Ed, an all-natural fruit juice and sparkling water beverage, as a healthy alternative to traditional sodas on the market. Available in four great tasting varieties – Red Raspberry, Orange Mango, Pomegranate Cherry and Green Apple – Fizz Ed contains none of the high fructose corn syrup or artificial ingredients found in carbonated soft drinks. Each single-serving 8 oz. can contains 70 percent pure fruit juice.

Fizz Ed will retail for $3.99 for a four-pack. Fizz Ed will be widely available in supermarkets and club stores nationwide beginning January 2008. For more information about Fizz Ed, call Apple & Eve at (516) 222-0236.

CSDs More than 110 years after the ice- cream float was first consumed, A&W and Sunkist Floats are being introduced to recreate all the rich creamy frothiness of a real ice cream float in a bottle. Available in convenient 11.5 oz., vintage soda-shop-inspired glass bottles with twist-off tops, A&W and Sunkist Floats’ rich, creamy flavor can be found at major retail, grocery and convenience stores nationwide. The suggested retail price is $1.79 for a single serve bottle and $5.99 for a 4-pack. For more information, call Cadbury Schweppes at (646) 935-4082.

Anticipating demand for single serve sizes for entertaining, Reed’s is debuted its new 7 oz. long neck bottles of Reed’s Extra Ginger Brew at the 2008 Fancy Food Show in San Diego. The mini-

versions of the popular handcrafted and natural brewed ginger ales will be sold in 8-packs nationwide in retail stores and select bars and restaurants in major metropolitan areas as a premium and healthy mixing alternative. Each 7 oz. bottle packs 15 grams of fresh ginger, known for its health-promoting properties like cancer-fighting and soothing upset stomachs. The 8-packs will feature drink recipes on the packaging and retail for $8.99. For more information, call (651)789-1268.

Vignette Wine Country Soda, the sparkling artisanal soda made with juice from premium California wine grapes, has just bottled and released a new Rosé variety made from a blend of Grenache and Sauvignon Blanc juices. The newest addition, with a hint of pink, is whimsical in appearance while offering a refined taste profile. Vignette Wine Country Soda is an all-natural, effervescent artisanal soda lightly sweetened with the juice of premium California varietal grapes. Currently available in Pinot Noir, Chardonnay and Rosé varieties, the sodas have a sophisticated, vine inspired label and are presented in either single-serve, 12 oz. glass bottles or a newly introduced 4-pack.

Vignette Wine Country Soda is now available at select restaurants and gourmet stores. For more information, call (323) 481-0451.

The Healthy Beverage Company, creators of Steaz Sparkling Green Tea beverages, has introduced a line of new Sparkling Green Teas in 12 oz. cans. These products are now available nationwide through food service and Direct Store Delivery channels. Lightly carbonated and decaffeinated, the new cans come in four popular flavors – Raspberry, Orange, Root Beer and Green Tea With Lemon. Each can of decaffeinated Steaz Sparkling Green Teas is sweetened only with pure organic cane juice and contains the same beneficial antioxidants and polyphenols as a cup of green tea. Additionally, the new cans contain organic acerola juice, a tropical cousin of the cherry famed for its high vitamin C content. To learn more about Steaz call (215) 321-8330.

MIXERS Innovative cocktailing brand Stirrings launched super-premium Red and White Sangria Mixers at the Winter Fancy Food Show in January. These new varieties offer an easy and unique solution for at-home entertaining – just pair with a bottle of wine for an upscale take on the classic wine punch.

Stirrings Red Sangria is a pulpy rich mixture of allnatural strawberry, orange, Key lime and blood

JANUARY – FEBRUARY 08 :: BEVERAGE SPECTRUM

17

orange juices along with white peach purée. Stirrings White Sangria is a light blend of fruit juices including apple, white grape, Key lime, pineapple and white peach puree, and is best served cold with ice. As with all of Stirrings’ products, the Red and White Sangrias highlight the company’s philosophy that “better ingredients make better cocktails.” All Stirrings products are made with natural ingredients, including real fruit juice, triple-filtered water and cane sugar. Stirrings Sangria Mixers will retail for $9.99 - $10.99. For more information, call (212) 754-1400.

ENERGY SHOTS The Jolt Endurance Shot enters the fast growing “extended energy” category behind a brand that literally means energy, Jolt, which launched Jolt cola in 1985. The Jolt Endurance Shot contains a heaping dose of amino acids, electrolytes, vitamins, enzymes plus caffeine. Jolt Endurance shots are sugar-free, so there’s no crash after just a few hours. Profit per inch is unusually high on Jolt En-

18

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

durance Shots. At just 1.5” wide, Jolt Endurance Shots have an SRP of $2.49 on 2 oz.. single bottles, with twin packs and merchandising shippers also available. For more information, call Jolt at (585) 381-3560.

ENERGY DRINKS AriZona has added All City NRG to its line of green tea-based energy drinks. All City NRG is a noncarbonated, balanced blend of vitamins, minerals and herbs and contains no preservatives, no artificial colors and no artificial flavors, with a green tea and pomegranate flavor. The product is being packaged in a 16 oz. can with three separate “street art” inspired can designs. All City NRG is the fourth addition to the Company’s Green Tea Energy line. The product is being test marketed in New York, Florida and Chicago with plans to distribute nationally after the first of the year. The suggested retail is $1.99-$2.49. For more information, please call AriZona at (513) 357-4750.

GIVE YOUR SHELF SOME MUSCLE. ®

Muscle Milk is the on-the-go shake that’s packed with protein, nutrients and essential fats to provide sustained energy for today’s active lifestyle.

Muscle Milk is arguably the best-tasting, fastest-growing nutritional drink in the category.

It’s no secret that poor diets and obesity are becoming national concerns.

Muscle Milk products are made to satisfy the needs of today’s active lifestyles.

Whether your customers are looking for an exercise supplement, a nutritious meal replacement or a quick, healthy, great-tasting snack, we believe there’s no substitute for products that taste as good as they are good for you.

The products you want and need, for a healthier, happier tomorrow for all of us.

For more information on the Muscle Milk family of products, please contact your sales representative at 888-298-6629. ©2008 CytoSport, Inc., Benicia, CA 94510

GERRY’S INSIGHTS

WHAT TO WATCH

1

2

s we get into the new year and retailers start to prep their shelf sets for the crucial summer selling season, it’s always fun to try to scope out what segments are the innovation hotbeds.

So here’s my take on some areas to watch. Interestingly, you can get to more or less the same spot from a different direction by analyzing what brands the astute minds at Bevnet have bestowed with their “best of ” accolades for 2007, so I’ll weave some of that into the mix, too. And I’ll offer a couple of mini-trends that also could bear watching.

For starters, with Coke and Pepsi ready to open the next front of the cola wars in enhanced waters with a Vitaminwater-SoBe Life Water battle, functional beverages should be a hot spot for retailers seeking the next high-margin, valueadded niche. On that score, Function Drinks would seem to have it all going for it: a telegenic, working young doctor as creator, a murderer’s row of finance, marketing, packaging and flavor talent as investors and advisors, a sales force that has earlier worked wonders for brands like SoBe and Fuze, and a proposition that goes Vitaminwater one further on the efficacy scale. I have no problem with Bevnet’s crowning it as launch of the year, with one caveat: it’s still a work in progress. With the distribution void created by Coke’s acquisitions of Fuze and Glaceau having accelerated the brand’s rollout plan by a year, the Function crew in essence is building its airplane as it takes it on its first transcontinental flight.

Going to be fun to watch this one!

On the energy drink side, there’s healthy energy – drinks devised to appeal to the estimated two-thirds of American consumers who’re weirded out by the ingredients or macho posturing of conventional energy drinks. So far, we’ve seen lots of action here, but no single brand has ignited, meaning it hasn’t been demonstrated yet that this category really exists. Still, Bevnet’s two picks, Syzmo and Steaz, both are well-thought-

20

3 out, appealingly formulated brands that have garnered traction in the natural-foods channel and now are aiming more for the general market. Another brand that would seem perfectly positioned to crack this segment is Glaceau’s Vitamin Energy. So far it hasn’t set the world on fire, maybe because the packaging is too little distinguishable from the core Vitaminwater brand, but the company is far from giving up on the concept.

Kids’ drinks also seem ripe for an explosion, both at the retail and school level. As with healthy energy, no brands seem to have yet ignited here, meaning the game is still wide open, and we’re seeing a multiplicity of approaches, from diluted juices to essence waters to nutritionally reinforced juices. Bevnet pick Bot – a lightly sweetened Vitaminwater for kids – is a beaut, but it’s still way too early to handicap this one.

Though the recent outpouring of concern about carbon footprints came as something of a ringer, high-end bottled water continues to be a rich segment driven by trade dynamics. Essentially, every distributor who doesn’t have Fiji would like to have something like it to get out of the profitless morass of mass-branded waters, while beer and booze wholesalers increasingly view an elite water brand in a killer package as a way to strengthen their presence on-premise.

Icelandic Glacial, another of Bevnet’s winners, was snagged fairly quickly after its U.S. launch

by Anheuser-Busch for its wholesaler network, but other entries are on the way. An intriguing one that’s still in the works is Equa, sourced from an exceptionally pure aquifer in the Brazilian rainforest, thereby twinning exotic appeal with a better claim on purity than a water from the tropics. Expect lots more along those lines.

Now on to a pair of mini-trends. One gambit we’re seeing is marketers’ attempts at their own ingredient branding – RightSize employs App-

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

4 emine, Crayons employs SugarGuard Protection. Get the picture? These are clearly efforts to offer a value-added differentiator, but they also comprise a second brand that has to be built from scratch. It’s hard enough to establish the core brand! Still, as consumers grow more skeptical of the questionable goodness claims emanating from many brands, these endorsements could find a receptive audience.

I’m also struck by the interesting efforts we’re seeing from total novices to the beverage segment at a time that the major players, for all their strained innovation efforts, hardly ever bring anything with real personality to market.

Bevnet designee Bombilla Gourd, launched by three 23-year-olds with little life or business experience – let alone beverage experience – has offered a more accessible take on RTD mate than leader Guayaki. Equa is from a guy who made his mark in the Brazilian freshwater fish business. Hint and Ayala’s Herbal Water each come from a couple that made their fortune in the tech business. Memo to retailers: if the person who just showed up on your doorstep is an utter beverage novice – invite him or her in. You really never know.

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

“Where Energy and Wellness Flow Together”

ANTIOXIDANTS. VITAMINS. ORGANIC ENERGY.

ANTIOXIDANTS. VITAMINS. ORGANIC JUICES.

).&).)4%º%.%2'9

Come visit us at EXPO WEST booth # 5217, and see why Kaboom Infinitely Better is...

1.800.745.2180 or visit us online @ kaboominfinite.com

the premiere

Independent Organic-Only Beverage Company would like to congratulate

Honest Tea® and Coca-Cola® on their recent announcement.

Bombilla Gourd® Inc. is seeking hard-working, “honest” distributors to launch the following products: TEA

TE

A

www.bombillagourd.com

maté tea™: organic yerba maté

pure tea: organic

unsweetened

the superfruits™: organic hydration™

Expo West Booth #: 4365 • For distribution inquiries, please contact: Ed Newman, Executive VP of Sales • (609) 213-4300 • ed@bombillagourd.com

Function Drinks

H

ere’s a problem with the whole brewed-in-the-kitchen-sinkby-a-doctor mentality for Function Drinks: the doctor is picking up and leaving the building.

Not for good, of course, but at a time when Dr. Alex Hughes is already basically splitting his time between performing orthopedic surgery and beverage alchemy, having him take off for a year to New York to practice spinal surgery can’t be the best timing for the growing company.

Still – and maybe it’s the result of overexposure to the fine Los Angeles weather – Hughes can’t help but keep his attitude sunny.

“We did think it would be important to have somebody on the ground in the New York market,” he said. “It just ended up being far ahead of what we’d planned.”

Regardless, it seems that bad timing has not been a major problem for Function, which has spread quickly from a few LA bodegas to more than 150 distributors in just a few years. Last year, the company finalized what had been a slowly changing lineup of functions and packages into a lineup so strong it took two of BevNET’s Best of 2007 awards: Best Functional Beverage and Best New Product.

Frequently, the word “heir” is thrown around with regard to Function; its surface similarities in appearance and orientation have placed it squarely in the same operational space as Glaceau’s vitaminwater, the product that many independent distributors believe it might someday replace in their product lineups. Others are think-

24

ing about it as a likely successor to new age-y Fuze, while still more consider it a possible alternative to some fading tea brands.

But there’s definitely another level to Function that isn’t touched on by its predecessors. While they have all been sold from healthy benefit point of origin, Function is coming from a denotative, rather than connotative point of salubriousness: its products employ functional additives that are backed by medical or scientific research rather than that promoted by company sponsored research or folk knowledge.

In fact, Hughes isn’t afraid to take issue with the growth of the latter, decrying “the explosion of functional or healthy products in the marketplace by people who, if you had any conversation about physiology or science with them, their knowledge would end at a rote definition of antioxidants.”

“Everyone should be wary when a food or beverage company says we spent $20 million proving the efficacy of a product,” he adds. “I don’t even have to open my mouth after that statement, it’s so crazy.”

What’s different about Function’s approach? According to Hughes, it’s their constant attention to medical research. From his position in the hospital, he says, he always wondered at the potential to use many of the non-drug products they employ or study for consumer benefit.

“It’s important for consumers that someone for them on their behalf is paying attention to that stuff (the science),” he says. “We aren’t doing anything that is not main-

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

stream or is not widely accepted professionally by doctors and nutritionists. And if there is any kind of change in the information about these ingredients, we are going to change our products.”

Still, buy-in is always where the rubber meets the retailing road.

And there have to be concerns that a selection of functions like “Youth Trip” – offering skin protection – and “Brainiac” – which claims to improve memory and cognitive function – won’t manifest themselves quickly enough to make consumers happy.

Just as Coke’s Enviga has run into trouble connecting with consumers who don’t see immediate weight loss – as opposed to those beverages containing appetite-suppressants they can actually feel – there’s the possibility that a resultoriented American public won’t immediately respond to Function.

So it’s Function’s job to train

consumers to think of its effects in temporal stages, which Hughes terms “short-lead” and “long-lead.”

“Stiff joints, hangovers – those are short lead functionalities that people can grab onto,” Hughes says. “The ‘longer-lead’ things, like collagen stabilization, those things take a lot of time to appear efficacious. If you’re telling consumers that they’re going to wake up tomorrow and look 20 years younger, it’s not going to work. But we can keep them apprised of the studies showing that this ingredient, as part of a healthy lifestyle, over a long term, is something that can potentially help.”

Long lead claims require a lot of buy-in. But basing them on what doctors do in the hospital, rather than what companies promote them as doing, might indeed have a lot of potential for retailers. For both the short term, and the long.

Dr. Alex Hughes and Josh Simon, co-founders of Function.

bot

C

oming up with a great beverage for kids is hard because you can’t just trumpet health or great taste. You’ve got to sell it with a helping of personality, the kind that appeals to kids without turning off parents.

There are a flood of low-sugar, fortified, all-juice, little juice, or zerojuice drinks, each using health as the selling point, on the market. But none of them had the sense of fun of the fledgling brand bot, an enhanced water for kids. Its owners sought a simple yet endearing packaging scheme so attractive it transcends the category’s typical product claim one-upmanship.

At the heart of the scheme are a trio of adorable critters who practically leap off the label with their aura of fun and whimsy. Resembling the offspring from a mating of the South Park brats with the denizens of the Boobah Zone, Orangebot, Grapebot and Berrybot serve as mascots for the brand, taking a relatively simple product and infusing it with playfulness.

Beverage Spectrum spoke with the founders of bot, New Jersey parents Brian and Cynthia “Cricket” Allen, about their little critter creations.

Beverage Spectrum: How did you come up with the cute characters?

Cricket Allen: With the characters, we were looking at how we wanted to brand the product. We wanted something contemporary, friendly, modern and unique, and we thought the characters sort of stood up to those goals.

BS: Do they have names?

Brian Allen: Berrybot, Orangebot and Grapebot BS: What are their personalities like?

Brian: They each, from a personality side – they all have their endearing qualities. Berry can fly, and that’s really cool. Go to our Web site, and you can see they have little adventures.

Cricket: We wanted to give life to the brand beyond the bottle. On the site we wanted them to see the dimension of the characters.

(NOTE: A trip to the site reveals that in one of the adventures, Grapebot appears to pass gas. In another, he removes his eyes and has them eaten by a bird. Orangebot blows up like a balloon. Hit by a magic wand, Berrybot loses all manner of shape and appears to melt. Perhaps they are not such endearing little imps after all.)

BS: Looks like something out of a Dali painting.

Brian: Well, they are in what’s called “bot land.” There’s an ethereal side to it, let’s say that. They don’t have an age.

There’s no aging.

BS: Can they, uh, reproduce at all? Will there be more flavors and more critters?

Cricket: The family will be growing. We’ll be introducing a new member at Expo West. It’ll be the first new member.

BS: Do you think the line is ready for it?

Cricket: It does become more challenging. There’s the creative back and forth, the flavor profile, which we’ve (already) had to tweak quite a bit.

BS: And what about critter acceptance? Do you think they’ll haze the new guy?

Brian: There might be some of that, yeah. They might have a break-in period.

Icelandic Glacial

I

t was a big year for Kristjan Olafsson, 30, the CEO of Icelandic Water Holdings, ehf., which markets Icelandic Glacial water. The brand passed a pair of major milestones, receiving full carbon-neutral accreditation from CarbonNeutral Company, Inc. and then welcoming an investment from brewing giant Anheuser Busch, which will now help distribute the product throughout the U.S. Combining those achievements – particularly at a time when bottled water’s environmental profile is being impinged upon -- with the product’s impressive packaging and overall quality convinced BevNET to award it “Best Water of 2007.”

Beverage Spectrum spoke with Olafsson about these achievements, and what they could mean for the category.

Beverage Spectrum: Did you always plan on running a “green” company?

Kristjan Olafsson: Our goal was always to be carbon neutral. Iceland has all green energy, so it’s easy from that standpoint. The problem was always without having someone monitoring and guiding you, giving you proper accreditation, it’s always a little tricky. The CarbonNeutral Company – helped us get in line. But beyond power usage, sourcing, trucking to wholesalers – those all lie in sort of a grey area. Our footprint is tracked all the way to the warehouse, but when we invest in the little carbon we emit, we cover it all the way to the consumer. When we first invested into the project, we didn’t buy carbon credits, we put money into carbon-reducing projects. When we do our investments, we always go above and beyond.

BS: How much of a role did your carbon-neutral status play in your aligning with Bud? KO: Obviously, they’re very proud of us for taking these steps. But we’re still effectively in startup. It’s the whole mix of things that must have attracted them to us. They’re an equity partner, they have board representation, and they’re our master distributor for the U.S. We still run a lot of the sales and marketing efforts for the brand. We’re in with [A-B’s} the wholesalers, who are helping us hit the ground in the U.S., but we’re working with all of these big chain accounts. We negotiate the deals, but with their 700 wholesalers, it’s a lot easier to get in the door.

BS: What’s your evaluation of the beverage industry’s place in terms of environmental impact?

KO: I truly hope other beverage Companies go down this carbon Green Guy: Icelandicʼs Olafsson neutral path. It’s not rocket science to be environmentally responsible. Obviously, a big part of the carbon is your electricity – in many ways, that’s outside of these companies’ control, depending on where you are – but I’d say people should keep it at the front of their mind when they’re doing things, and eventually they’ll get there.

JANUARY – FEBRUARY 08 :: BEVERAGE SPECTRUM

25

Fred

"Introducing Fred: Humanizing Bottled Water"

At a time when most marketing campaigns involve getting a photo with Paris Hilton, the folks behind Fred water turned the idea on its head: now, celebrities, consumers, shopkeepers, want to have their photos taken with Fred. Building a cult of water personality proved to be a cinch for the crew at Fred, seasoned marketers all. Here’s their unorthodox approach, which won Fred “Best Marketing Campaign of 2007.”

BLOGGING: By setting up Fredspot.com as an online hangout, brand begins to build identity, including Fred as “cool dude” receiving invites to exclusive parties, like HappyCorp’s LVHRD.

POSTERING: Fred gets the Andy Warhol treatment on the street.

STARDOM: Media mention Fred as popular. Mission accomplished! Fred now rhymes with Celeb! (Kinda.)

26

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

FREDSPOTTING: Up the Pacific Coast, all over Boston, at festivals like Burning Man, photos and videos show the product out and about, on the scene.

lawn darts bad.

Stop by the bot booth

at Expo West Booth #5760

naturally good fortified water. no artificial flavors, sweeteners or preservatives. botbeverages.com

NOS 22 oz. Bottle, Fuze Beverages

F

uze didn’t exactly get off to a blazing start after its acquisition by the Coca-Cola Co. First there was a packaging switch for its core new-age tea line, then spotty rollouts plagued its Rehab recovery beverage. But the company-within-a-company had an ace-in-the-hole in its NOS energy drink, which had long held sway over a small but dedicated group of automotive enthusiasts.

But things have turned around for Fuze ever since it caught nitrous in a bottle, modeling the NOS 22 oz. container after automotive afterparts maker Holley’s Nitrous Oxide System tanks. Having already licensed the drink’s name from the company, moving into the form of the product seems to have been a brilliant move.

“It’s our number one SKU,” says William Meissner, the chief marketing officer at Fuze. “It’s been absolutely a game changer for us [at Coke]. If you think of your company as a brand inside the system, I cannot emphasize enough that we are with the best system, but there are a million other things they can do and take to retail. It’s really given us a presence.”

The NOS bottle took a simple licensing ploy and turbocharged it, making it the kind of product any gearhead worth his axle grease would be delighted to see drinking. In fact, the jumbo-sized tank of energy has helped NOS break into a pile of exciting new channels, like Napa and CSK auto parts stores, Home Depot, and even NASCAR vending.

“Because it’s iconic to motor sports, it’s really going to be our product for the automotive channel,” Meissner says. “With that valve cover and the gleaming blue look, it’s become a real… I’m not a fan of the word novelty. Especially since it’s our number-one package in the [energy drink] category.”

Fuze has always had a strong emphasis on packaging for its core new age tea line, but hadn’t yet done major experimentation with the NOS brand.

But one day Meissner was looking at a PET bottle for the drink, and it got him thinking.

“It just had this shoulder that reminded me of the canister. We’ve got them here in the office and we use them in our advertising, and we saw the bottle and the shoulder looked very similar. We went to [package designer] Zuckerman Honickman, they got after it and came up with the design. We saw it and said, ‘that’s close, is there any way we could make a closure that would look like the valve top?’”

By the time the design was done, Fuze had a great package – and a dedicated marketing angle.

“We literally bought every single auto magazine over September and October, so in that respect, marketing was really simple,” Meissner says.

“And through Coke’s relationships, we now have the ability to serve it at a lot of racetracks, where we used to guerilla market.”

28

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

Tie: Steaz & Syzmo

obeverages Infused

Bionade

Bombilla Gourd

420 Water

Mark Hall (Monster)

c i t s e m o d er beunces bock ba and ” , r e e B to s ’ . e r e e g r H u “ s e c i nc st i e s s m r o a d e y g i o b w eman a t n i r l n o K f e y e e r w ro a It’s b

by Jeff n i e r a s the duck

30

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

PHOTO COURTESY OF COORS BREWING COMPANY

hey threw the Hail Mary during the 2006 Super Bowl, and it turned the game around.

The Patriots? No. Actually, it was the Brewers.

The Brewers? Wait. Wrong sport.

But the right ad.

It’s been two years since Anheuser-Busch decided to go long in its role as the domestic beer industry leader, trying to rally the brew team from behind in the polls by footing the bill for an umbrella campaign to raise the profile of all things beer. The offensive, called “Here’s to Beer,” arrived in the wake of a widely-reported poll that showed wine to be the alcoholic beverage of choice among Americans in 2005.

Here’s to Beer started in February, 2006 with an ad that featured beer-centered toasts in dozens of languages and ended with a reference to a Web site, www.Herestobeer.com. AnheuserBusch fronted the money for the push after its competition refused to ante up.

“On initial launch, Here’s to Beer was endorsed by the Beer Institute, but it was paid for

by Bud,” says Bob Lachky, the Executive Vice President of Global Industry Development for Anheuser-Busch. “There were some comments thrown back that we were trying to just drum up more sales. Well, you’re darn right we’re trying to build business. If we grow the pie, everybody’s slice gets bigger.”

Since that time, with Anheuser-Busch providing the bulk up front and a deep lineup of craft beers at the skill positions, the beer industry has staged a comeback. The same Gallup Poll that put beer on the defensive has shown it, once again, to be the most popular alcoholic refreshment in the country for the past two years.

“The gap of growth between beer and wine and spirits is slowing down,” says Roman Shuster, an analyst with the consumer insight firm Euromonitor. “Beer is retaking share.”

Nevertheless, the story of domestic beer is still evolving. As if reflecting the multinational approach to beer appreciation as shown in that kickoff commercial, it was, initially, a growing collection of imports that was the big story; in 2007, it was crafts and microbrews: the big houses, particularly A-B, had not yet gained momentum. Sure, beer edged out wine in 2006, but it did so astride the shoulders of the growing importance of products like Heineken, Heineken Light and Corona.

Last year, the story was all craft. The tiny – less than 5 percent – but potent taste leaders continued to lead the buzz among retailers, with sales in that segment growing to nearly $700 million, all told, according to the Wall Street

PHOTOS COURTESY OF ANHEUSER-BUSCH

Journal. Three-quarters of those sales benefited independent brewers (the largest is the Boston Beer Co.) while 25 percent were big-three owned brands like Blue Moon and Red Hook.

Even as interest in mainstream imports declined (that segment slowed considerably in 2007), crafts continued to grow.

This year, with a weakened dollar inflating wine prices and a recession making the martini something of an anachronism, it could be time for consumers to dig into the meat of the domestic category. Big brewers are aiming advertising dollars at sprucing up the image of premium brands, with the intent of luring consumers downstream, using tributaries of craft beer to build the share of Bud and Miller.

“We are focused on our core,” says Lachkey.

“Because of the nature of our size, it’s crucial for Bud and Bud Light to be growing for our wholesalers to be selling the extensions. We don’t want them to get distracted be getting too many ideas out there. The volume potential is moderate compared to Bud and Bud Light.”

The diversity of craft brewing has been great, Shuster acknowledges, but if the category is to continue to grow, “the credit really should go to Bud, Miller and Coors for stepping up their advertising for their core brands. Prior to 05 and 06, domestic beers really looked all alike to the consumer,” says Shuster, of the consumer insight firm Euromonitor. “And you had Heineken really promoting itself as a chic European brand, Corona on the beach, and the domestic brewers saw that. So the domestic brewers had to really figure out how to find their market again.”

Differentiating between Miller, Bud and Coors, he says “really gives consumers the opportunity to identify with the brand. From 2001 to 2005, beer just wasn’t exciting enough. The brewers fought back and reformulated the way they brought the product to market.”

But the battle back pitches these brands not with a follow-the-pack mentality, but as something that uses craft beers’ popularity as a springboard. The big brewers are emphasizing their expertise and care. Coors – whose flagship brand showed real growth last year – has a new Web site focusing on its heritage; Budweiser is now touted as the “Great American Lager.”

Certainly, the big brewers have broadened their portfolios to include offerings like regional specialty brews like Bud’s Devil’s Hop Yard IPA, traditional offerings like Miller-owned Leinenkugel’s, and fast-growing styles like the wheat beer exemplified by Blue Moon. Even the light side – typically the best selling part of the

big houses’ portfolios – is getting a new sheen: Miller is expanding its light beer portfolio to include high-end styles like White and Amber, while Bud continues to market its Select line as a high-end product.

Nevertheless, the big brewers’ real push isn’t from sub-brands, which together comprise perhaps one percent of the total domestic beer market. It’s in premium brands like Budweiser, Miller Genuine Draft and Coors Banquet. Michelob will also get the focused advertising treatment, playing on its long tradition as a higherend product.

The big brewers are giving the impression of optimism. So who is to thank for this turnaround? Is it just the sparking of interest in beer via a Super Bowl commercial and a marketing web site? In assessing the revival of the category, the credit doesn’t belong to Here’s to Beer alone, Lachkey admits, but also the re-activation of beer as a high-end product.

“Clearly, I think the craft phenomenon has been fantastic,” he says. “They’ve been working at it for so long, minus the hiccup in the mid90s, and the craft brewers really led the way in bringing new drinkers to the category.”

JANUARY – FEBRUARY 08 :: BEVERAGE SPECTRUM

31

brand news:

DOMESTIC BEER Miller Brewing Co. – Miller Brewing Company is testing the Miller Lite Brewers Collection, a trio of craft styles that are lower in calories and carbohydrates. Miller will test the collection in four markets – Minneapolis, Charlotte, San Diego, and Baltimore beginning in February 2008. The Miller Lite Brewers Collection will feature a Blonde Ale, an Amber and a Wheat – each with significantly fewer calories and carbs than a typical beer for that style. Miller Lite Brewers Collection is targeted to mainstream drinkers and capitalizes on three trends that are driving much of the growth in the U.S. beer industry – the shift toward light beer, a desire for more variety and premiumization. Miller selected three styles that feature a unique taste profile and are especially popular among beer drinkers looking to experiment with crafts. Miller Lite Brewers Collection will initially be available in 6-pack bottles and priced between mainstream light beer and the typical craft beer.

Boston Beer Co. – As part of the third annual Beer Lover’s Choice contest, the brewers at Samuel Adams unveiled two new craft beers and encouraged beer lovers to taste and vote for their favorite. Samuel Adams Irish Red Ale and Samuel Adams Dunkelweizen went head to head in bars across the country. The votes are in and Samuel Adams Irish Red Ale was the winner. This new brew joined the Samuel Adams variety of more than 21 distinct styles of craft beer in January 2008. Samuel Adams Irish Red Ale will be available in six-packs and in the Samuel Adams Brewmaster’s Collection, which also includes the first two Beer Lover’s Choice winners: Samuel Adams Brown Ale and Samuel Adams Honey Porter. Samuel Adams Irish Red Ale is rich with a deep red color and distinctive caramel flavor. Originally brewed in Ireland in 1710 in a town called Kilkenny, Irish red ales were brewed from Pale Ale malt and roasted barley with English hops such as Fuggles and Goldings.

Shmaltz Brewing – Shmaltz Brewing is celebrating its second decade with the special release of their award-winning “extreme” Chanukah beer, Jewbelation Eleven. Brewed with maximum chutzpah for 2007 with the addition of an 11th malt (the ancient

32

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

wheat species Spelt) and an 11th hop (the exceptional Amarillo), Jewbelation Eleven seeks an aggressively elegant symphony of complex flavors, flying high at 11percent alcohol.

Otter Creek – Otter Creek's new Spring Ale Special Release is a German-style Kölsch: a bright golden ale originating in Cologne. Craft brewed with 2-row malt and malted wheat, and hopped with Tettnang and Liberty hops, this beer is crisp and refreshing with a dry finish. It will be available nationally through April, in 6-packs, 12 packs, and on draft.

Flying Dog – Denver-based Flying Dog Brewery recently announced their schedule of new styles and packages that will be released in 2008. The brewery will continue its tradition of offering award-winning beers in 2008 with the release of a Biere de Garde as their new spring seasonal and a Tripel as the 4th member of their Canis Major Series of high gravity beers.

“Garde Dog” Biere de Garde will be unfiltered with a hazy, deep golden to light copper appearance. It will be brewed with domestically grown French Hops and German Pilsner Malts to give craft beer drinkers a very enjoyable, light bodied, subtlety sweet beer with toasty malt undertones. “Cerberus” Tripel will be a bottle conditioned strong Belgian Ale with slightly hazy appearance and mousse-like head. Flying Dog will also be launching two new and unique packages to their Canis Major Series in 2008. The first is a Mixed 4-pack featuring one 12 oz. bottle of each Canis Major style. The second is a Mixed 8-pack of 7 oz. bottles, which will include two samples of each Canis Major style. The Canis Major Series includes Gonzo Imperial Porter, Horn Dog Barley Wine, Double Dog Double Pale Ale and the new Cerberus Tripel.

Rogue – Rogue is featuring three new beer labels this year. Rogue’s Chocolate Stout is the perfect gift for that special beer drinker in your life. Brewmaster John Maier took Rogue’s World Champion Shakespeare Stout and added chocolate imported from Holland.

Since its debut, Rogue’s Chocolate Stout has received world-wide acclaim, including a Gold medal at the Beverage Industry International Awards in Munich, Germany; Chocolate Stout is available throughout the

United States in 22 oz. bottles and on draft year-round.

Kells Irish Lager is brewed using seven ingredients: Great Western Pale, Crystal, Wheat and Acidulated Malts; Sterling Hops, Free Range Coastal Water and Czech Pils Yeast. Finally, on Feb. 7, 1990, the Central Committee of the Soviet Union’s Communist Party agreed to endorse President Mikhail Gorbachev’s recommendation that the Party give up its 70-year long monopoly of political power. Rogue is commemorating the historic event by launching Imperial Red on February 7, 2008. Imperial Red is the newest addition to Rogue’s award winning Imperial Family of XS products that include Old Crustacean Barleywine, Imperial Stout, Imperial India Pale Ale, and Morimoto Imperial Pilsner. Imperial Red is a deep copper chestnut color with toffee, brown sugar, nuts, and spice aromas.

Abita Brewing Company – The Abita Brewing Company has added an India Pale Ale to their family of brands. The new Jockamo I.P.A. is a traditional India Pale Ale made with the best British pale and light crystal malts that give the beer a bright color and malty flavor. This full flavored beer is hopped and dry hopped liberally with Willamette and Columbus hops from the Pacific Northwest and has a 6.5 percent

alcohol by volume. The newest Abita brew takes its name and inspiration from the Mardi Gras Indians of New Orleans. Jockamo is one of the chants heard as the Tribes march, dance and sing through the streets of New Orleans.

Anheuser Busch – After introducing it late last year in markets in California and Texas cities, Arizona, Colorado and Nebraska, Budweiser & Clamato Chelada and Bud Light & Clamato Chelada has arrived in convenience stores, supermarkets and grocery stores nationwide. Latinos, specifically those of Mexican descent, have been mixing beer with Clamato for decades. Budweiser & Clamato Chelada and Bud Light & Clamato Chelada honor that tradition by combining Anheuser-Busch’s classic American-style lagers with the spicy, invigorating taste of Clamato Tomato Cocktail, made by Cadbury Schweppes Americas Beverages (CSAB). Brewed at Anheuser-Busch’s St. Louis brewery, Budweiser Chelada contains 5 percent alcohol by volume and Bud Light Chelada contains 4.2 percent alcohol by volume and is available in 24 oz. single-serve cans and 16 oz., four-pack cans.

A NEW DAY HAS DAWNED BREAKING BEVERAGE INDUSTRY NEWS DELIVERED DIRECT TO YOUR E-MAIL INBOX FROM

BEVERAGE BUSINESS INSIGHTS s 0UBLISHED TIMES PER YEAR ABOUT TWICE A WEEK s )NSTANT EXCLUSIVE NEWS AND ANALYSIS ON THE MOST VIBRANT SEGMENTS OF THE BEVERAGE INDUSTRY INCLUDING q %NERGY $RINKS q %NHANCED 7ATERS q 4EAS #OFFEES q &UNCTIONAL $RINKS q (IGH %ND "OTTLED 7ATERS s .O HYPE AND REWRITTEN PRESS RELEASES

BUT INSIDE INFORMATION ON NEW PRODUCTS

CONSUMER TRENDS MERGER AND ACQUISITIONS DISTRIBUTION MOVES

AND OTHER ACTIONABLE INFORMATION s PER YEAR AT LEAST ISSUES

TRY 8 ISSUES FREE! WWW BEVINSIGHTS COM PH E BEVINSIGHTS AOL COM JANUARY – FEBRUARY 08 :: BEVERAGE SPECTRUM

33

EXPO WEST TRADESHOW PREVIEW

EXHIBITORS COMPANY NAME

BOOTH NUMBER

COMPANY NAME

BOOTH NUMBER

COMPANY NAME

BOOTH NUMBER

Adagio Teas

2964

Hiball Inc.

4344

Organic Vintners

2139

Allegretto Ventures, LLC

4576

Hint, Inc

4255

Otsuka Foods/Wild Veggie

5425

AMI Brands/Carpe Diem Beverages

5017

Honest Tea

3578

Pinnacle America/Sierra Valley

4342

Apple & Eve

3874

Iceland Spring

2498

POM Wonderful

3978

Appletiser/ Genesis NA

5401

Inko's White Tea

3688

Pure Fruit Technologies

2669

Aquamantra, Inc.

5720

Ito En, Ltd.

2386

Quaker Tropicana Naturals

2750

Bossa Nova Beverage Group, Inc.

2654

Izze Beverage Company

2857

Reed's, Inc.

4808

Brain Toniq, LLC

5667

Java Pop

5473

Republic of Tea, The

3769

Cell-nique

2294

JFC International, Inc.

4810

Royal Pacific Foods/The Ginger People 4821

Clement Pappas & Co., Inc.

2228

Jones Soda Co.

4364

Sanfaustino/CCW Holdings Inc

3970

Crayons, Inc.

2268

Kaboom Infinite

5217

SavorCalifornia.com

5611

Cricket Natural Beverages

5249

Kagome USA

3367

Silk

2236

CurrantC

4166

Keumkang B&F CO., Ltd.

4353

Simply Orange

2955

David Rio San Francisco

2982

Kombucha Wonder Drink

4180

Skylar Haley

4241

Dry Soda Co.

4461

Lakewood Organic and Premium Juices 2320

Small Planet Foods, Inc.

2614

Eden Foods, Inc

3138

Langer Juice Company

4089

Smart Juices LLC

2426

Elite Naturel/Organic Juice USA

2010

LaRocca Vineyards

2038

Smucker Quality Beverages, Inc.

2304

eVamor Products, Inc.

4478

Lassi Drinks

5837

Sol Maté Beverages

2334

Evolution

4245

Le Bleu Corporation

2695

Sonoma Sparkler

5319

Fiji Water

3490

LifeForceV - Functional Brands, LLC

2890

Stanmar International Inc

4239

First Juice, Inc.

5449

Lifeway Foods, Inc.

2656

Steaz Green Tea Soda

2270

Fizzy Lizzy, LLC

5704

Lightfull Foods Inc.

4183

Sweet Leaf Tea Company

2105

Frey Vineyards, Ltd.

2036

Liquid Om, LLC

3166

Tommy's Original Margarita Mix

5618

Frutzzo

2820

Logic Nutrition

1284

Tradewinds Tea House

5447

Fuze Beverage

5565

Maddie's Beverage Company, Inc

4291

TRIMSPA-Goen Technologies

1270

Global Juices and Fruits, LLC

5358

Maine Root Handcrafted Beverages

5352

Vita Coco - All Market

2578

Gloji Inc

5324

Marquis Brands

4489

Vitasoy USA

3356

Guayakí Yerba Maté

2909

Metromint

2572

Voss USA Inc.

5446

GURU Energy

4801

Mutual Trading Co. Inc.

4192

Wild Waters

4836

GuS – Grown-up Soda

2478

Naked Juice

2846

Wyman's

3972

H2Om-Water with Intention

5741

Nestle Waters North America

5586

Yakult USA

5230

H4O Inc.

5513

New Belgium Brewing Co.

2037

Zenergize

4837

Hansen Beverage Company

2140

Noble Juice

3291

Zevia LLC

5578

Havana Beverages

5402

NVE Pharmaceutical

2895

Zico, LLC

2376

Herbal Water/Ayala's Herbal Water

5258

Odwalla

2342

Zola Acai

2573

34

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

NATURAL PRODUCTS EXPO WEST EDUCATION AND EVENTS MARCH 13 – 16, 2008

TRADESHOWS

MARCH 14 – 16, 2008

ANAHEIM CONVENTION CENTER ANAHEIM, CA

MARCH.13.2008 8:00AM – 1:00PM Retail Store Tour – Meet at the Anaheim Hilton 8:30AM –10:30AM Global Business Seminar, 303A Introduction to the North American Market

Speakers: Allen Haeger, Carol Kriegel RN, Rob McCaleb

10:30AM –12:00PM Education 207B Naturally Global: Trends in the International Marketplace 12:30PM – 5:30PM Fresh Ideas Organic Marketplace – Marriott Tent 1:00PM – 2:15PM Education 207B Global Commerce: Opportunities for Social Responsibility and Fair Trade Speakers: Anthony Marek, Priya Haji

1:30PM – 3:00PM Education Building Community in Your Store

Speakers: Armando Porras, Kevin Edberg, Michael Kanter

1:30PM – 4:00PM Global Business Seminar 303A Getting Your Product Ready for the Market

Speakers: Jay Jacobowitz, Justin Prochnow, Lauren Clardy, Steven Taormina, Tim Sperry

3:00PM – 5:00PM Events 213D Stirring It Up: How to Make Money and Save the World 3:30PM – 5:30PM Education 204B Retailer Idea Exchange

Speakers: Bill Crawford MS, Cheryl Hughes, Jane Drinkwalter, Janine Underhill, Nancy Hoopes, Rick Moller

4:00PM – 5:00PM Global Business Seminar 303A Sustainable Practices Speaker: Rob McCaleb

MARCH.14.2008 8:30AM – 10:00PM Education 207B Today's Trends, Tomorrow's Market

Speakers: Brent Green, Maryellen Molyneaux, Steve Preston, Steven French

9:30AM – 6:00PM Events Hot Products Hall E 9:30AM – 6:30PM Events New Products Showcase Lobby 10:00AM – 6:00PM Events – Exhibit Floor Open 10:30AM – 12:00PM Education 207A What's Sprouting in Organics Speakers: Andrea Caroe, Don Burgett, Mark Mulcahy, Shannon Szymkowiak

12:00PM – 1:00PM Exhibitor Presented Seminar 205A Leveraging Interactive Shopper Marketing to Drive Sales 1:00PM – 2:15PM Education Trend Watch: The Future of Naturals Speaker: Phil Lempert

2:30PM – 3:30PM Exhibitor Presented Seminar 207D Kids Need Bugs! Children's Health and Probiotics 2:45PM – 4:00PM Education Retailer Game Show Speakers: Jay Jacobowitz, Mark Mulcahy, Phil Lempert, Shannon Szymkowiak

4:30PM – 5:45PM Education Featured Speaker: Trend Watch, The Future of Naturals Speaker: Phil Lempert

MARCH.15.2008 9:00AM – 10:00AM Education Keynote: Defending Food, Searching for the Perfect Meal, and other Culinary Dillemas

9:30AM – 6:00PM Events Hot Products Hall E 9:30AM – 6:30PM Events New Products Showcase Lobby 10:00AM – 6:00PM Events – Exhibit Floor Open 10:15AM –11:15AM Education Hall E Theatre Michael Pollan Unplugged 10:30AM –12:00AM Education 207B Greening the Natural Grocer: Tools for Sustainability Speakers: David Jaber, Kathy Larson, Tom Dziki

1:00PM – 2:15PM Education 207A Digging Deeper: Organic Discussions Speakers: Joshua Onysko, Kristy Korb

1:00PM – 2:15PM Education Presenting Your Healthy Ethnic Foods, Merchandising Demonstration Speakers: Debby Eddy, Phillip Arons

1:00PM – 2:15PM SupplyExpo Seminar 204C Rev Up Your Business: Sustainable Packaging as a Driving Force Speakers: Bruce Cummings, Kevin Williams, Ron Sasine

3:00PM – 4:00PM Exhibitor Presented Seminar 205B Probiotics 101: A Crash Course in Probiotics and Today’s Market 4:30PM – 5:45PM SupplyExpo Seminar 204C Probiotics: A Healthy Market for Digestive Health 6:00PM – 9:00PM Events Anaheim Marriot Ballroom 5th Annual Organic Wine and Beer Festival MARCH.16.2008 9:30AM – 4:00PM Events Hot Products Hall E 9:30AM – 4:00PM Events New Products Showcase Lobby 10:00AM – 4:00PM Events – Exhibit Floor Open

Speakers: Michael Pollan

JANUARY – FEBRUARY 08 :: BEVERAGE SPECTRUM

35

CONVENTION SCRAPBOOK

FANCY FOOD lavored/enhanced waters were among the hottest category for new products at the 2008 Winter Fancy Food show in January. Talking Rain sampled its Twist line-up, including four recently introduced organic flavors (Mango Acai, West Indies Lime, Mandarin White Tea and Pomegranate Blueberry). Talking Rain also introduced actiVwater, a nutritionally-enhanced flavored water with half the calories of the market leader.

Other waters BevNET found at the show included four new flavors from Hint (Hibiscus Vanilla, Watermelon, Honeydew Hibiscus and Blackberry), a trio of premium imported still brands, Valais, Tasmanian Rain and Llanllyr, Function Water, an unflavored enhanced water from Function Drinks, Ferrarelle, Italy’s #1 sparkling water, and Fonte Italia, a premium Italian mineral water in sparkling, slightly sparkling and still.

The show was also heavy in new coffee and tea products, including a new premium RTD from Jamaica called Jablum, using Jamaica Blue Mountain Coffee. Also showing new products were the Hawaii Coffee Company, Honest Tea, Steaz, Sweet Leaf and Republic of Tea. BevNET was also impressed with the range of high-end and enhanced mixers for cocktails. One new brand was Modmix, the first organic premium cocktail mixer line-up with flavors including Citrus Margarita, French Martini, Lavender Lemon Drop, Mojito and Pomegranate Cosmopolitan. Also present were mixer makers Mixerz, Stirrings, QTonic, Fever Tree, Stirrings and Hiball.

Also out in force were juice companies, including new premium brand Sun Tropics, which works in mango and lime juices from the Philippines. Other new products came from Kaboom (Infinite Wellness Juices), Vita Coco (tangerine coconut water), Mountain Fresh Fruit Juices (an Australian importer) and Square Enterprises, with carrot-based fruit flavored nectar juices.

36

Bill Sipper and Eric Skae, representin' the Viking.

Kara Goldin and Liz Creelman, the pride of Hint.

e of Cascade

the fresh fac Cynthia Tice, Color-coordinating your shirt wit h your drinks.

Good planning, Function's Scott Wu!

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

Fizzy Lizzy's L

iz and Aaron M

a.

You say Tea's Te ainikova.

We say Elena Tach

Steaz' Shari Post and Tr avis Overturf. Come on, Overturf, you ain't that to ugh. Smile!

orrill.

Fresh.

Tea and tea-related products to keep you ahead of changing consumer trends.

Save 40% until February 14th! o core conferences

www.worldteaexpo.com/beverage

CONVENTION SCRAPBOOK

FANCY FOOD

We're talkin' Talking Rain, with Bill, Trevor, and Lauren.

Jungle casual with Guayaki's Mateo Sluder and Tom DeTurk.

O'Brian ton and Kevin us H k ar M 's d Ree r, gingerly. survey the floo

Q-Tonic's Ben Karlin and Jordan Silbert.

Hold up the product next time, fellas.

z of ESSN.

The ever-organic Fernando Vasque 38

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

It's all love in the Sambazon booth.

Tara Pearson and Paloma Monte ro.

Kaboom! Indeed.

Turn your name tag ove We have no ide r. I mean it. a who you are.

Yoko Fujii, an emissary from the Republic of Tea.

APRI

6 L 200 M AY 2 0 0 6

JUN

R i p ea uicy e Profits Beverag e th Ring in e Aisle Produc

// ALSO THIS ISSUE //

//

ISSUE HOW O THIS NESTLE // ALS DS RFOO DOES IT SUPE FOR KING FLAG ER STOC THE BE WHAT WENT HOIST MEXICAN GES WRONG WITH VERA HT 06: BE LIG WOLFGANG’S FMI 20 THE SPOT 8O LATTES IN ?I>;: FK8B

// ALSO

THIS ISS

A NE

WORLW OF BE D ER

FK8B?I>;: 8O

812.5820.

(617) (617)715-9671.

715-9671.

E 20 06

UE //

HIT TH

TO HE

E BARS

LP YO

UR SA

LES

FK8B

?I>;: 8O

3. What is your primary business type?

(check only one) A—N Convenience Store B—N Supermarket/Grocery C—N Club/Warehouse Store D—N Mass Merchandiser/Dollar E—N Drug Store F—N Liquor Store G—N Wine Store H—N Wholesaler/Distributor/Broker I —N Beverage Only/Beverage Specialty Store X—N Other (please describe):

4. What is your title? (check only one) A—N B—N C—N D—N E—N X—N

Owner/President/CEO/COO/VP/Director Buyer Merchandising Manager Regional/District Manager Store Manager/Supervisor Other (please describe):

5. Do the locations that you are responsible for sell: (check all that apply) A—N Carbonated soft drinks B—N Non-carbonated soft drinks C—N Bottled water D—N Beer E—N Wine F—N Liquor

BS0506 BS03O6 BS0406

PROMO PARADE New St. Pauli Girl Beer Poster For over a quarter of a century, St. Pauli Girl Beer has chosen a model to represent the beer brand nationally and appear on the popular St. Pauli Girl poster.

This year, Irina Voronina will adorn the new collectible St. Pauli Girl poster. She will also represent the brand on a national media tour throughout the year. Irina was Playboy magazine’s Miss January 2001 and has done print campaign work for the Luxor resort in Las Vegas, Chevrolet and Ameristar Hotels. Her acting experience includes roles in recent movies including Reno 911: Miami, Epic Movie and Balls of Fury, as well as series regular appearances on Cartoon Network’s Saul of the Mole Men. The 2008 poster features Irina dressed in an authentic St. Pauli Girl barmaid’s outfit and holding a tray of St. Pauli Girl beer. Wellknown Hollywood, Calif. director/photographer Jay Silverman shot the poster image as well as other images to be used on the St. Pauli Girl website and in national retail promotion materials.

To promote the 2008 poster during the month of March, St. Pauli Girl will give away 400 free posters each day to consumers on a first-come, first-served basis on the brand’s website at www.stpauligirl.com. And, due to popular demand from Internet enthusiasts, a downloadable version of the 2008 poster will be available on the St. Pauli Girl Beer website as a screensaver. The St. Pauli Girl website will also feature behind-the-scenes photos documenting how the poster was made. Web surfers can also view past St. Pauli Girl spokes models in the online poster gallery.

Pepsi Gives Away Music on Amazon

Dr Pepper Makes Art

Pepsi and Amazon.com are teaming up on Pepsi Stuff, a massive collect-and-get program where consumers can download DRM-free MP3 music. Four billion specially marked Pepsi packages will allow people to collect points and redeem them for music from Amazon MP3 that can be played on virtually any digital portable device, organized in any music management application, or burned to a CD. Beginning February 1, consumers purchasing Pepsi products can "bank" their points on PepsiStuff.com and redeem them for music on Amazon MP3. Amazon MP3 offers Earth's Biggest Selection of a la carte, DRM-free MP3 music downloads, with over 3.25 million songs from more than 270,000 artists. Five points earn consumers one MP3 song download from the libraries of EMI Music, SONY BMG MUSIC ENTERTAINMENT, Warner Music Group and tens of thousands of other music labels. Pepsi's biggest promotion ever makes its debut on the Super Bowl.

Participants can also enter a daily sweepstakes for the chance to win trips to events like the Super Bowl, the MLB All-Star game and the Daytona 500, as well as for cash and many other big prizes.

Consumers may sign up now to be reminded when the promotion begins at www.pepsistuff.com. Pepsi Stuff will be executed across the entire Pepsi trademark.

Through the Sabrosura Art Contest, which began in October 2007, Dr Pepper encourages Latinos to express their individuality and their zest for life - characteristics that have been a cornerstone of the Dr Pepper brand for more than 30 years. Asking consumers to vote online for their favorite artwork is another way to give Latinos a voice and the possibility to "own" a piece of the new Dr Pepper campaign.

In December, contest judges selected the 23 semi-finalists who best represented the Sabrosura feel, creativity, and originality, as well as Dr Pepper branding. Each was awarded $2,300. Each of the semi-finalists' artwork was shown online for voting through Friday, Feb. 1 at 5 p.m.

PST. The top five finalists and the grand prize winner will be determined by who receives the most votes. Voters may vote once each day for their favorite piece of art.

Each of the five finalists in the online voting will receive an additional $2,500.

The grand prize winner will receive an additional $5,000, bringing his or her total award to $9,800. Best of all, the winning artist's work will be displayed on Dr Pepper packaging and promotional materials.

For complete Sabrosura Art Contest rules and information, and to vote online, visit www.drpeppersabrosura.com.

40

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

PROMO PARADE Nestle Pure Life says “Go Play!”

O’Brien Estate Winery’s Love Promotion O’Brien Estate Winery of Napa, California has brought together three companies to make Valentine’s Day very special: A beautiful gift box filled with a bottle of O’Brien Estate 2005 Seduction, two Bottega del Vino 30 oz. handblown wine glasses and two four piece boxes of Choclatique’s Taste of Love for $199.00.

For lovers everywhere, and those who want to be, O’Brien’s wine, crystal and chocolate cupids will hand-pack your order and deliver to everyone on your list. Each box comes complete with a hand written gift card.

This fall, school administrators and families can earn school sports equipment and transportation costs assistance toward hands-on educational field trips by participating in the Nestlé Pure Life Go Play! program. Go Play! is a rewards program for accredited schools in the United States with any grades from K-8, created by Nestlé Waters North America for its Nestlé Pure Life bottled waters.

When asked to grade their schools’ physical education program and efforts to keep kids healthy and active, 67 percent of 1,251 parents surveyed graded their school as average, with a “B” or “C.” With the growing obesity epidemic and many schools eliminating or reducing physical education and recess due to budget cuts, more than 55 percent of respondents indicate sports equipment, playgrounds or field trips are most needed in their schools, according to the recent non-scientific online survey commissioned by PTO

42

Today and Nestlé Waters North America.

At the same time, parents are willing to help their schools: 90 percent of parents surveyed said they would participate in fundraisers for essential sports and playground equipment.

Under Go Play!, Nestlé Waters North Americais offers a label redemption program to help parents and teachers earn sports gear or transportation costs toward healthy activities. Accredited schools in the United States with any grades from K-8 are eligible to participate in the Go Play! program.

Between September 1, 2007 and March 31, 2008, schools can register for the Nestlé Pure Life Go Play! rewards program by registering their school to earn Go Play! points on goplaylabels.com.

An information packet and collection box(es) will then be shipped to the school. Members of the community then remove labels from empty bottles of any Nestlé Pure Life bottled water product and drop the labels in the official collection box at their registered school.

BEVERAGE SPECTRUM :: JANUARY – FEBRUARY 08

Milk Rocks With Country Music CMA, CMT, AMA and People’s Choice-Award-winning, multi-platinum country superstars Rascal Flatts are joining up with the successful Milk Rocks! campaign to promote health and nutrition while giving their fans a chance to win a once-in-a-lifetime opportunity to sing with Rascal Flatts live on stage. The “Be a Milk Rockstar” grand prize also includes a VIP concert experience featuring a private meet-and-greet with the band in the winner’s own “dressing room” for the night – a fully customized Gibson Guitar tour bus parked backstage, from where they will host a concert webcast. After the concert, the lucky winner will also score a meeting with a Lyric Street Records A&R representative.

Beginning on March 1, 2008, fans can register at www. milkrocks.com to pick their favorite of five available Rascal Flatts songs and upload their own karaoke-style video recording of the tune, to be voted on by the Milk Rocks! online community. The Top Ten vote earners will win the first prize of exclusive signed Les Paul Gibson guitars, plus Rascal Flatts CDs and posters signed by the band. From the Top Three, the grand prize winner will be hand-picked by Rascal Flatts themselves on April 15 to receive the unforgettable, deluxe concert experience (performance date TBD).

Rascal Flatts’ involvement in “Be a Milk Rockstar” will also include the band’s prerecorded messages to fans explaining the contest rules as well as nutritional facts about milk, which will be displayed online at www.milkrocks.com and on more than 100 million milk cartons, in excess of 40,000 school lunchroom posters, and at venues prior to the group’s concerts.