Beverage Spectrum July-Aug 2007

Snob Appeal and 4 other tea-selling strategies

ALSO THIS ISSUE: SPORTS DRINKS EXPO EAST PREVIEW TEA EXPO REVIEW FANCY FOODS REVIEW

4HE (EINEKEN $RAUGHT+EG HAS BEEN ENGINEERED WITH PIONEERING TECHNOLOGY TO DISPENSE PERFECT QUALITY DRAUGHT BEER GUARANTEEING CUSTOMER SATISFACTION AND INCREASED PROFITS

4HE (EINEKEN $RAUGHT+EG OFFERS ONE OF THE HIGHEST RINGS IN THE SEGMENT GIVING YOU HIGHER DOLLAR RINGS AND PROFITS

4HE (EINEKEN $RAUGHT+EG IS ONE OF THE TOP IMPORT GROWTH PACKAGES

4HE (EINEKEN $RAUGHT+EG ATTRACTS NEW USERS OF PURCHASERS ARE NEW CONSUMERS TO THE HIGHLY PROlTABLE (EINEKEN BRAND

&UTURE PURCHASE INTENT IS VERY STRONG OF USERS WHO HAVE TRIED THE $RAUGHT+EG WOULD BUY IT AGAIN

! REVOLUTION IN BEER MEANS REVOLUTIONARY PROFITS Enjoy Heineken® Responsibly ©2007 HEINEKEN® Lager Beer. Heineken USA Inc., White Plains, NY. * ACNielsen, Total US, 13 Weeks Ending 11/25/06

** ACNielsen, Total US Grocery, 26 Weeks Ending 4/28/07

*** Heineken DraughtKeg Target Research Group May 2006

JULY – AUGUST 2007

8

Cover Story

20 // TEA TELLS MANY TALES

vol.

5 // no. 5

42

20

Features

30 // GROUNDING THE

From Snob Appeal to Energy, here

LIGHTENING BOLT

are five strategies to ramp up

Is Gatorade becoming

profits from your tea selection.

vulnerable to a new generation of sports drinks?

Departments

36 // PHOTOS: WORLD TEA EXPO

8 // BEVSCAPE Beer for my horses and a water

38 // FANCY FOOD NY

for me, please.

SHOW REVIEW 10 // CHANNEL CHECK 40 // EXPO EAST 2007 PREVIEW

Soy keeps growing.

Get ready for more beverages.

14 // NEW PRODUCTS Meet the Beach Bum Blonde.

42 // PROMOTION PARADE

Columns

4 // THE FIRST DROP Can bottled tea’s latest convert

Smartwater gets a Friend.

6 // PUBLISHER’S TOAST Moving day comes for Barry 18 // GERRY’S INSIGHTS A product’s flexibility gives it potential

Cover Photography by Mike Ritter www.ritterbin.com

JULY – AUGUST

2007

\\ BEVERAGE SPECTRUM

3

THE FIRST DROP

Tuning in to teas

aving grown up in the iced tea belt Down South, there have always been a few things that I’ve found confusing about the way people approach this stuff across the rest of the country.

For example, I’ll never understand the need for iced tea mix in any place other than a college dorm room, where it is often mixed with cheap rum, and I’ll never understand why a waitron brings you a glass of ice and a bottle – no matter how nice a bottle it is – when you’ve ordered an iced tea in a restaurant. To me, iced tea is something that’s always been brewed hot and then cooled down, or else infused via the sun and a long sit on the back porch.

But my brewed tea orthodoxy has taken a few lumps lately as I’ve been exposed to a wider variety of ready-to-drink products than just the Lipton and Nestea that I identify as much with the fountain as I do with an aluminum can. I’m willing to admit that down South, the decision on the tea you were going to have was always between sweet or not sweet, not green

4

or white or rooibos or lemon myrtle. And that the influence of Asian and Indian and African flavors makes it hard to imagine that we’ll ever go back to a time when the best RTD teas came with a pop-top.

In my house, when you find iced tea, you’ll still find it in the pitcher, often with the knife still in it to absorb the temperature change from the boiling water to the cold ice. But every once in a while, if I’m leaving the checkout line, a bottle of Jasmine or Green might make its way into the car with me. There’s too much great variety out there to ignore, even for a bag man like myself.

That variety is what we key in on in this issue of Beverage Spectrum, as we show retailers that tea’s multifaceted character can help create numerous selling opportunities. The different iterations of tea make it an incredibly flexible product to market, and it can go up and down the pricing scale, if you play the game right.

We also take a hard look at sports drinks this issue, wondering whether there’s a point at which

BEVERAGE SPECTRUM // JULY – AUGUST

2007

Gatorade’s enormous success can continue in the era of beverages that cater to specific functions – and whether the near-endless supply of faces endorsing Gatorade is being passed on to other companies.

We’ve also got a pile of photos from a pair of shows, including a debut roundup from this year’s International Tea Expo. So stop reading the tea leaves, and start reading the issue.

PUBLISHER’S TOAST PUBLISHER Barry J. Nathanson bnathanson@bevnet.com

The Moving Man Reflects moved into a new office space two weeks ago.

Nothing earth shattering there. The most arduous – and the most interesting – part of the move was packing and unpacking the massive collection of beverages that I’ve accumulated over the years. I was only moving a few floors away, but I took pains to wrap and unwrap them, setting them neatly on my shelves.

It gave me a chance to be amazed by the array of products and packages that have come to adorn my office. I probably have 200 different brands in my office, but that only scratches the surface of the introductions I have seen, sampled and boxed back up because of space limitations.

Even for someone who likes to constantly filter his past like myself, this was an exercise in nostalgia. There are so many brands that I’ve loved. A few days of moving let me dwell on 16 years of changes.

I bring this to your attention to point out the amounts of innovation, creativity and passion that have gone into the industry over the last two decades. In my early years, the selection was simple, the big guys had the brands and distribution, and variety and choice weren’t options. Then along came Snapple, New York Seltzer, Clearly Canadian, Evian, Sam Adams, AriZona and dozens of others to whet the palates of excited consumers. The explosion began in both the non-alcohol and alcoholic arenas, and it hasn’t let up yet.

SoBe, Jones Soda, Glaceau, Fiji, Red Bull, Fuze, Hansen’s and Honest Tea have served as leaders of the second wave of innovators that now number in the hundreds. The BevNET site is flooded with new entries vying to compete against these venerable brands. The point of entry is relatively easy: get an idea, a formula, co-packers and some hungry distributors, many

EDITORIAL DIRECTOR John Craven jcraven@bevnet.com EDITOR Jeffrey Klineman jklineman@bevnet.com ASSOCIATE PUBLISHER John McKenna jmckenna@bevnet.com ART DIRECTOR Matthew Kennedy mkennedy@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

seem to think, and we’ll have the next great hit.

The creative origins of some of those brands and the successes in terms of stock and sales volume, of others are inspirational to the plethora of marketers with a dream.

There will be a new generation of beverages that have the vision, execution and success; that much, I can guarantee. What we don’t know is which brands they will be. (As a note of caution, out of the 200-plus brands aligning my office, more than 130 are no longer in existence). We all await the new entries. Hopefully, together, we will be able to anoint the next great ones.

ARTICLE REPRINTS (500 copies or more) FosteReprints Kelly Ganz kganz-blieden@fostereprints.com 800-382-0808 x142 BEVERAGE SPECTRUM PUBLISHING INC. CHAIRMAN John F. (Jack) Craven jack@bevnet.com PRESIDENT 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 301 New York, NY 10010 ph. 212-647-0501 fax 212-647-0565

Barry J. Nathanson, Publisher BPA Membership Applied for April 2007 Beverage Spectrum is published 8 times a year by Beverage Spectrum Publishing, Inc.

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BEVERAGE SPECTRUM // JULY – AUGUST

2007

Beverage Spectrum Publishing, Inc. is a wholly owned subsidiary of BevNET.com, Inc., 1 Mifflin Place, Suite 300, Cambridge, MA 02138

WHAT ARE YOUR GOALS FOR THIS FALL? Movement. It’s the key to a good offense in football, and the measure of success in consumer promotions. Last year’s RED ZONE Bloody Mary promotion helped drive sales for both Daily’s Ready to Drink, and Non-Alcoholic Bloody Mary lines. So this year, we have a plan that’s bigger than ever, with a national sweepstakes, on-pack announcement, dynamic point of sale, and online ads to make Daily’s the “Bloody Mary of choice” for tailgate parties (at home or at the game).

Make plans now to get into the RED ZONE, and start to practice your end zone dance.

WHERE GREAT COCKTAILS START.TM

©2007 American Beverage Corporation Verona, PA 15147 • 800-245-2929 x6113 • dailyscocktails.com • 5% alc/vol (10 proof) PLEASE DRINK RESPONSIBLY

BEVSCAPE

WHAT’S HAPPENING ACROSS BEVERAGES

EARNHARDT’S DEPARTURE PUTS BRAKES ON BUD ENDORSEMENT Dale Earnhardt Jr.’s defection from longtime family racing team Dale Earnhardt Inc. means that Budweiser is losing one of its most recognizable drivers.

Earnhardt Jr., who reportedly left DEI over a conflict with his stepmother, Theresa Earnhardt, is also losing his #8 car along with his longtime sponsor in order to join Hendrick Motorsports, where, ironically, he replaces Kerry Busch.

With Hendrick having long-term commitments already in place at the time of the signing, according to team owner Rick Hendrick, Earnhardt Jr.’s sponsor simply can’t break into the fold.

On June 13, Earnhardt Jr. signed on to race for Hendrick Motorsports beginning in 2008, but primary sponsorship of his team remains undecided. No timetable has been established for an announcement.

“Budweiser has sponsored Dale Jr. for nearly a decade, and we wish him the very best,” said Tony Ponturo, vice president of global media and sports marketing for Anheuser-Busch, Inc. “Budweiser will remain an active sponsor of NASCAR, and we look forward to building upon the legacy of the iconic Budweiser red car in 2008 and beyond.”

“To climb into that red Budweiser car each weekend has always been a privilege,” Earnhardt Jr. said.

“Although Budweiser and I will be unable to continue our partnership beyond this season, I remain committed to driving for Bud the rest of this year, and will continue to make it my beer of choice.”

With only a year gap in place for Budweiser, and Earnhardt Jr. one of the sport’s top drivers – as well as its most recognizable one – it’s highly unlikely that he’ll sit out of the red for too long.

DEALBOARD Summertime Romance Edition Remember sitting in the cabin at camp talking about who you liked but getting caught sneaking out by the counselor on-duty? That’s what happened in mid summer, when it appeared that Coke might be trying to find out if it could arrange a meeting with Snapple after its parent company, Cadbury Schweppes, sells off its beverage brands to a private equity prince.

Meanwhile, PepsiCo, which has been out of the game this year after a very busy 2006, has apparently developed a taste for European food and beverage conglomerates, as it reportedly sent moony love signals to both Groupe Danone and Nestle in the first half of the year.

Regardless, until someone actually asks someone else out, everyone’s staying single.

BEER FOR MY HORSES, LICENSED WATER PRODUCTS FOR ME...

He’s got his own whiskey, and now apparently Willie Nelson needs a little something to chase a shot with. So welcome to the debut of Willie Nelson Spring Water, put out by Simpson Distributing LLC. Bottled in the Ozarks, the product is wrapped in a label featuring the grand old man and his tour bus. For more info, check out www. willienelsonspringwater.com.

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BEVERAGE SPECTRUM // JULY – AUGUST

2007

Photo by Maj. William Thurmond

SAUCY LICENSING DEALS Continuing the great Southern tradition of cooking with cola, Cadbury Schweppes has entered into a licensing deal with Vita Food Products Inc. to produce Dr. Pepper, 7Up and A&W Root Beer barbeque sauces.

We’d have tried them ourselves, but as regular readers of the BevBlog know, we were a bit busy pulling together energy drink can barbecued chicken. In other barbecue news, now it can be told: the secret recipe for steak tips is 1 part Italian dressing, 1 part ketchup, and 1 part Coca-Cola. Awesome.

CONFERENCE CALENDAR

THE AD GAME: THE KIDS ARE OFF-LIMITS Count PepsiCo among those beverage companies who are reconsidering their ad strategies – the company has stated that it will not be advertising soda or high-fat or high-sugar snack foods on shows aimed directly at the 12-and-under set.

There have been major questions about a link between advertising and child obesity, especially in the wake of a recent Kaiser Family Foundation report that showed the barrage of junk food ads most kids see in their early years, But some groups, particularly the Center for Consumer Freedom (CCF), would rather that PepsiCo not buckle.

The CCF recently trumpeted a study in the Archives of Pediatric & Adolescent Medicine that attempted to debunk any links between childhood obesity and food advertising.

Regardless of the finding, PepsiCo isn’t the only company feeling the heat; General Mills and Kraft are also pulling ads. Whether the changes move into licensed beverage brands is more of an issue for retailers – promotions or product lines related to child-centric entertainment are time-honored sales tools, and any reduction in those kinds of products would likely affect the bottom line for retailers.

File Under: Shrinking Shreks!

SEPT. 10–13 American Wholesale Marketers Association Summit & Business Exchange Atlanta, Ga.

OCT. 4–5 Brand Packaging Packaging That Sells Conference Chicago, Ill.

SEPT. 27–29 Natural Products Expo East, Organic Products Expo, Healthy Foods Conference Baltimore, Md. SEPT. 30–OCT. 3 National Beer Wholesalers Association Convention and Trade Show Las Vegas, Nev. OCT. 4 David Michael’s Innovation Roadshow Philadelphia, Penn.

SEPTEMBER 2007

OCT. 8–10 Nightclub & Bar Convention and Trade Show East Coast Atlantic City, N.J. OCT. 15–17 Pack Expo, Process Expo & Converting and Package Printing Expo Las Vegas, Nev. OCT. 15–19 International Bottled Water Association Convention and Trade Show Las Vegas, Nev.

OCTOBER 2007

DIET COKE TURNS 25 SPYKES SPIKED The Spykes saga has finally ended.

Anheuser Busch, bowing to pressure from watchdog groups – as well as the Connecticut Attorney General’s Office – is pulling the 2 oz. flavored malt liquor “shots.”

Criticism of the manufacturer erupted after it appeared that young drinkers had begun to favor Spykes due to its fruity flavor profile and caffeine content.

Bud Chairman August Busch IV told investors he was pulling the product during a a shareholders’ meeting.

It might go down in history as the most successful sequel ever (although we’re still partial to Godfather II).

Debuting with an upbeat “Just for the Taste of It” campaign that carried it through into prominence, Diet Coke is now the world’s top-selling diet soda.

Coke unveiled a silver Diet Coke slimcan in Atlanta just for the event. The product’s addictive qualities are famous and celebrated – with just a touch more caffeine than its full-calorie predecessor, the stuff has seemingly always managed to rope in people who do things all day long.

We don’t know that we necessarily agree with Coke spokeswoman Katie Bayne that “Since its launch, Diet Coke has been synonymous with stylish sophistication,” given the fact that we know a lot of less than stylishly sophisticated folks who drink it with robotic regularity. Nevertheless, it was certainly a piece of innovation that showed a sophisticated understanding of the marketplace.

Coke’s nod to its own history isn’t just restricted to the low-cal side, however. The company also rolled out a Coca-Cola Classic can with a cleaned-up appearance, one that brings it back to an earlier, redder time. With a single white ribbon and a lack of background illustration, it stands in contrast to the wildly varied versions of Pepsi Cola that have been appearing as part of PepsiCo’s year-long promotion of fast-changing can designs.

JULY – AUGUST

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9

Channel Check

july – august 2007

SPOTLIGHT CATEGORY

Milk Substitutes 52 Weeks ending 6/17/2007 Ever wonder why Silk has one of the biggest booths at NACS? Look at this, and you won’t anymore. Soy Milk sales are up through the roof, and they are far and away the biggest maker of the stuff. Of course, there are plenty of other worthwhile milk substitutes, and Lifeway’s Kefir continues to grow, as well, but the key takeaway here is that consumers aren’t interested in milk substitutes made by well known dairy companies. Sorry, Hood! You, too, Organic Valley! Meanwhile, remember Yoo Hoo? Someone had better call the brand rescue unit, and fast.

Kefir/Milk Substitutes/Soymilk

Dollar Sales

Change vs. year earlier

Milkshakes/Non-dairy Drinks

Dollar Sales

Change vs. year earlier

Silk

$323,852,700

11.0%

Nestle Nesquik

$18,946,410

-1.5%

8th Continent

$53,887,700

-7.0%

Hersheys Milkshake

$12,190,240

-30.7%

Private Label

$43,863,090

45.5%

Rice Dream

$9,819,195

13.9%

Lifeway

$15,673,650

55.6%

Odwalla Super Protein

$6,495,069

42.8%

Hood Carb Countdown

$11,701,390

-40.1%

Kerns Aguas Frescas

$3,925,217

30.6%

Ben & Jerrys Milkshakes

$3,498,623

N/A

Meyenberg

$8,070,488

8.1%

Organic Valley

$2,038,573

-12.3%

Private Label

$2,447,061

-3.3%

Farmland Special Request

$1,927,461

61.8%

Shamrock Farms

$2,139,153

28.3%

Helios

$1,562,427

56.6%

YooHoo

$1,849,525

4.7%

$987,197

86.9%

Don Jose

$1,820,993

17.1%

Zen Don

Heading Up: Zen Don

52 Weeks through 6/17/07 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

TOPLINE CATEGORY

VOLUME

52 Weeks ending 6/17/2007

Heading Up: Odwalla Super Protein

52 Weeks through 6/17/07 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

CSD’s

ENERGY DRINKS

$13,560,260,000 -2.2%

$743,340,800 34.4%

BOTTLED WATER

SPORTS DRINKS

$3,880,366,000 15.5%

$1,643,137,000 5.3%

BEER

TEA/COFFEE

$9,162,422,272 2.1%

$1,365,173,000 27.1%

BOTTLED JUICES $4,298,403,000 4.4%

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BEVERAGE SPECTRUM // JULY – AUGUST

2007

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

Channel Check

july – august 2007

CSDs

Dollar Sales

Dollar Share

Coca-Cola Classic

$1,909,313,792

13.5%

Pepsi

$1,510,102,324

10.7%

Diet Coke

$1,201,772,228

8.5%

Diet Pepsi

$804,379,137

5.7%

Mountain Dew

$745,793,275

5.3%

Dr. Pepper

$597,299,562

4.2%

Sprite

$562,160,065

4.0%

Caffeine Free Diet Coke

$340,392,959

2.4%

Diet Dr. Pepper

$283,463,441

2.0%

Diet Mountain Dew

$262,975,656

1.9%

Heading Up: Mountain Dew

52 Weeks through 7/14/07

SOURCE: AC Nielsen Total U.S. food/drug/mass

RTD COFFEE/CAPPUCCINO

Dollar Sales

Change vs. year earlier

Frappuccino

$182,249,600

4.5%

Doubleshot

$27,012,930

-4.4%

Starbucks

$12,771,120

1351.4%

Bolthouse

$11,427,310

390.5%

Doubleshot Light

$10,530,270

706.4%

Godiva Belgian Blends

$7,948,876

N/A

Cinnabon

$643,417

N/A

Hillside

$387,787

131.2%

Caffe D Vita

$367,562

55.4%

Private Label

$298,569

-71.6%

Heading Up: Hillside

52 Weeks through 6/17/07 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

DOMESTIC BEER

Dollar Sales

Change vs. year earlier

Bud Light

$1,425,524,352

2.9%

Budweiser

$758,839,168

-5.1%

Miller Lite

$729,494,272

0.4%

Coors Light

$634,850,624

2.6%

Miller Genuine Draft

$169,499,776

-7.1%

Budweiser Select

$115,885,096

-16.5%

Coors

$62,040,984

-8.0%

Icehouse

$58,426,248

-1.3%

Yuengling Lager

$38,495,088

17.6%

Bud Ice

$23,778,190

-4.0%

52 Weeks through 6/17/07 Heading Up:Yuengling Lager SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

12

BEVERAGE SPECTRUM // JULY – AUGUST

2007

ENERGY

Dollar Sales

Change vs. year earlier

Red Bull

$306,832,500

19.7%

Monster

$115,795,400

69.1%

Rockstar

$88,107,420

49.3%

Full Throttle

$47,686,380

36.9%

SoBe No Fear

$34,619,990

23.6%

Amp

$26,531,560

18.0%

SoBe Adrenaline Rush

$17,486,540

-17.1%

Tab

$13,907,130

124.3%

Monster XXL

$8,594,313

200.6%

Rockstar Juiced

$7,040,989

2,893.9%

Heading Up: Rockstar Juiced

52 Weeks through 6/17/07 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

CONVENIENCE/PET STILL WATER

Dollar Sales

Private Label

$581,678,100

Change vs. year earlier

21.7%

Aquafina

$520,303,900

8.7%

Dasani

$460,946,400

16.9%

Poland Spring

$266,830,600

15.7%

Glaceau Vitaminwater

$246,401,400

120.7%

Propel

$195,152,900

-2.4%

Arrowhead

$180,510,800

9.4%

Deer Park

$147,332,000

17.1%

Crystal Geyser

$109,997,200

35.2%

Nestle Pure Life

$107,799,800

55.4%

Heading Up: Glaceau Vitaminwater

52 Weeks through 6/17/07 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

IMPORT BEER

Dollar Sales

Change vs. year earlier

Corona Extra

$495,015,648

3.5%

Heineken

$307,985,888

3.8%

Corona Light

$129,984,592

9.8%

Tecate

$89,159,800

6.9%

Heineken Light

$64,498,792

288.2%

Modelo Especial

$57,258,344

21.2%

Newcastle Brown Ale

$50,640,436

15.7%

Labatt Blue

$50,168,708

-2.1%

Guinness Draught

$49,820,584

8.3%

Becks

$48,083,676

-0.7%

Heading Up: Heineken Light

52 Weeks through 6/17/07 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

JULY – AUGUST

2007

\\ BEVERAGE SPECTRUM

13

NEW PRODUCTS TV spot will debut the week of June 18 along with an aggressive print, online and OOH campaign to pull through the “Irresistible” messaging. For more information, contact Heineken USA at (212) 468-3918.

Beer Anheuser-Busch’s Fort Collins, Colo. brewery has rolled out its summer brew, Beach Bum Blonde Ale, an all-malt, traditional American blonde ale, in bottles. Only available on draught last year, the product is now available in 12 oz. bottles at grocery and convenience stores this year. This product is 5.4 percent alcohol by volume and will be linepriced with other Anheuser-Busch specialty items.

For more information, call A-B at (314) 577-9629.

From the Turbulence marketing group comes the world’s first Rastabeer: Yes I beer, launching this month in Florida, is inspired by the Rastafarian way of life. Yes I is the brainchild of Andrea Boccardi, an Italian-born Rastafarian who developed the beer to promote freedom and personal expression while being socially responsible by supporting causes, including raising awareness about gender equality and extreme poverty. Available in the Miami area, Yes I is being distributed by Southern Wine and Spirits. Pricing has not yet been determined. For more information call Turbulence at (305) 7768817.

Miller Brewing Company's newest product, Miller Chill, launched last month. Miller Chill, an American take on the popular Mexican chelada, is the only light beer brewed with a hint of lime and a pinch of salt to provide a truly refreshing beer experience. The product is available wherever beer is sold and comes in 6- and 12-packs of 12 oz. bottles. Cheladas are especially popular at Mexican resorts, with evidence pointing to enjoyment of cheladas in Guadalajara as far back as the 1960s.

Miller Chill has 110 calories per 12 oz. serving, 6.5 grams of carbohydrates, and 4.2 percent alcohol by volume. For more information, contact Miller at (414) 931-3848.

Heineken USA has launched Heineken Premium Light in a new 12 oz. slim can. The 12 oz. cans are available in both a 12-pack Fridge Pack and a 24-pack suitcase. The new Heineken Premium Light packaging has been specifically designed to differentiate it from Heineken Lager, as well as other beer offerings. The new slimmer and taller can structure continues visual elements from the Heineken Premium Light bottle introduced in 2006.

Both packages feature a vertical logo treatment on the label, which reinforces the smooth and lighter beer while accentuating the premium look and feel. The introduction of the Heineken Premium Light slim can will receive high-impact support throughout the summer. A new dedicated national

14

BEVERAGE SPECTRUM // JULY – AUGUST

Functional Waters Skinny Nutritional Corp has launched an appetitesuppressing flavored fitness water, Skinny Water.

Employing the active ingredients Super CitriMax and ChromeMate, this product is designed to curb hunger, maintain healthy blood sugar levels and normal metabolism, and promote fat loss and lean body mass—all leading to reduced body weight.

Skinny Water also provides 15 percent of the U.S. Recommended Daily Intake of calcium, and 9 percent of the U.S. Recommended Daily Intake of potassium in each 16.9 oz. bottle. Available nationally in Super Target outlets, Skinny Water is available in two fruity flavors—raspberry and lemon—and in six-packs. Skinny Water retails for $5.99 per 6-pack. For more information, call Skinny Nutritional at (610) 642-8253.

Energy Drinks Made in America, Pissed Off Energy Drink is an all-natural, high-performance energy drink. The brand comes with the tag line “Pissed Off People making Pissed Off Energy Drinks.” Initially rolled out in 12 oz. cans, the product will also have an 8 oz. line extension. For pricing and distribution information, call Pissed Off at (877) 949-7477.

From Leading Brands Inc. comes Stoked, a new energy drink made without high-fructose corn syrup. Stoked will be available in 16 oz. cans in four flavors: Original, Sugar Free, Tropical Orange, and Dragonberry. Stoked is tied to a dragon motif, and dragons are featured on its cans and marketing materials. For more information on Stoked Energy, please visit www.stokedenergy. com or call Leading Brands at (604) 685-5200.

Spirits Smirnoff has unveiled its Smirnoff Cocktails collection, premium cocktails that take the guesswork out of mixing drinks. Available in two of today’s most popular cocktails – Grand Cosmopolitan and Vodka Mojito – the Smirnoff Cocktails Collection will add style to even the simplest event. Smirnoff Cocktails use Smirnoff

2007

rocks, and its mixability makes it the perfect partner for any rum-based drink. For more information contact Monte Cristo at (702) 868-4545.

The Beam Global Spirits and Wine Group is launching a new flavor extension in its line of cordials and liqueurs, DeKuyper Pomegranate.

The 1 L bottle of DeKuyper Pomegranate will be rolled out beginning in March 2007, followed by other bottle sizes, and will be line-priced with other DeKuyper offerings. The 30-proof product will be supported by on- and off-premise merchandising, sampling and promotions. For more information call Beam Global Spirits at (847) 948-8888.

Pernod-Ricard has announced several packaging changes in the coming months. Its Malibu rum line, a Caribbean rum with coconut flavor, will have new packaging for the entire family of Malibu flavors – from the flagship Malibu Coconut to its more recently introduced flavors: Malibu Pineapple, Malibu Mango and Malibu Passion Fruit. The Malibu flavors will join the Malibu original iconic white package, but have different colors etched into the neck to designate each flavor. To support the March 2007 launch in the United States, Malibu will offer a range of point-of-sale materials, including outer shippers, case cards, shelf talkers and product brochures.

For more information, call Pernod Ricard at (914) 848-4787.

Another Packaging Change from Pernod Ricard is in Beefeater Gin. Developed in collaboration with Chivas Brothers, the premium gin and Scotch whisky business of Pernod Ricard. A squarer, stronger bottle shape has been developed to improve brand presence both on and off-premise, and a refreshed Beefeater logo features a deeper, more premium red. Beefeater’s genuine London heritage is further emphasized with the words ‘Made in London’ embossed on the bottle sides, with some of its many award medals on the front of the bottle. For more information, call Pernod Ricard at (914) 848-4787.

Vodka No. 21. Smirnoff Grand Cosmopolitan blends in Grand Marnier liqueur, cranberry juice and a splash of lime. The Smirnoff Vodka Mojito is a new interpretation of the classic Cuban Mojito, made with Smirnoff No. 21 vodka, lime and mint flavors. The Smirnoff Grand Cosmopolitan is currently available nationally in liquor retail outlets.

Smirnoff Vodka Mojito is currently available in the Northeast and will be available nationally later this fall. Both products will be available in 750 mL and 1.75 L bottles, retailing for approximately $12.99 and $19.99 respectively. For more information, contact Diageo at (646) 223-2040.

Montecristo rum is introducing Montecristo Spiced Blend, the latest addition to its awardwinning portfolio that includes Montecristo 12 Year Aged rum and Premium Blend white rum.

Montecristo Spiced Blend is a smooth, maturely flavored and aged rum with a hint of spice. It is ideally suited for sipping straight up or on the

NEW DRINK REVIEWS essn Energy Xyience Tazo Java Pop FRS Bombilla Gourd Capt’n Eli’s Honest Tea Dasani Plus Izze Esque Function Drinks Fruit20 Talking Rain Twist A.C.T. Energy

Juices

Purity Organic Functional Drinks FlavH20

Juice-maker Old Orchard Brands is expanding its Healthy Balance line of low-sugar fruit juice cocktails with the addition of Healthy Balance Pomegranate juice cocktail. According to the manufacturer, it is the first reduced-sugar pomegranate juice product for the U.S. market.

The beverage features 75 percent less sugar than the leading pomegranate juice and is available at major grocery stores nationwide in 64 oz. bottles for $2.69. For more information, contact Old Orchard at (616) 887-1745.

Fizzy Lizzy First Blush Premium Juices The Switch VitaZest Green Tea Cha Dao Yin Yang AH+ From June 14 to press time.

To see reviews, visit www.BevNET.com

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NBI Juiceworks has introduced Sun Shower 100 percent nectarine juices. This product comes in 12 oz. and 28 oz. containers and three flavors, Nectarine, Nectarine Berry and Nectarine Mango; there are plans to expand the juice line later this summer. MSRP is $2.99 for the smaller package and $4.99 for the 28 oz. package. These products can be found in the produce section of major retailers. For more information, call (312) 768-7376.

Luvli Juices, the premium, all-natural vegetable juice company introduced its brand new flavor, Mega Beet at the 2007 Fancy Food Show. Mega Beet is a first-of-its-kind product that enhances the nutritious deliciousness of beet and heart-healthy Concord grape juices with the most effective sources of Omega 3 fatty acids, EPA and DHA, making it a true-to-form super food. Mega Beet is available for distribution in two sizes, 10 oz. (MSRP of $2.19) and 1 L ($5.25). For more information, contact Luvli at (617)375-9700.

Tropicana Organic certified organic juice blends are a new addition to the Tropicana portfolio. As a leader within the juice industry for more than 50 years, Tropicana Organic aims to meet specific consumer demand from a source they trust. This product comes in two flavors: Organic Orchard Medley (available in a 64 oz. carton at $3.99) and Organic Orange Juice ($4.99 for the same size).

Tropicana Organic juices are available for purchase at Wal-Mart nationwide, as well as at select Whole Foods and other major grocers throughout the U.S. For more information, please call Tropicana at (312) 397-6050.

Wine Diageo Chateau and Estate Wines have introduced Newhaven, a Sauvignon Blanc from the Marlborough winegrowing region of New Zealand. The Newhaven 2006 Sauvignon Blanc shows an intense, forward nose with guava, grapefruit zest and honeysuckle aromas. The wine launched nationally last month at a suggested retail price of $11.99. For more information, call Diageo at (707) 254-0465.

The Brown-Forman Corp. has announced the release of Little Black Dress Wines – a new brand of lifestyle wines aimed for women in Chardonnay, Pinot Grigio, and Merlot. All are available nationwide for $9.99. For more information, call Brown-Forman at (502) 774-7140.

Just in time for the summer champagne season, Champagne Piper-Heidsieck offers retailers nationwide a new way to merchandise Champagne Piper-Heidsieck – the Piper-Heidsieck Cool Box. Beginning in June, consumers will

be able to purchase Piper-Heidsieck Cuvée Brut encased in a durable, anti-sweat, signature red reusable Cool Box for no extra cost. The innovative isothermal case is designed to keep champagne chilled for more than two hours and helps to retain the wine’s aromas. Piper-Heidsieck will help generate consumer interest and drive sales by installing creative Cool Box window and POS displays for the duration of the summer. PiperHeidsieck Cuvée Brut, encased in the PiperHeidsieck Cool Box has a suggested retail price of $35. For more information, call Piper-Heidsieck at (212) 481-7000.

CSDs Big Red is moving forward in a rejuvenating way.

Focusing on the brand's sugar-free version, Diet Big Red will hit the Texas market in full force with a new flavor formulation and the first packaging update since 1997. Diet Big Red's update will be fueled by the singular message “now MORE Big Red taste” indicating the formula is new and tastes more authentic to the original Big Red flavor profile.

The new formula contains enhanced flavor and a sweetener blend now consisting of sucralose and Ace-K. This product will be line-priced with other Big Red products and is available in a variety of packaging sizes in 42 states. For more information, contact Big Red at (254) 772-7159.

PepsiCo has launched Diet Pepsi MAX, a spinoff of its original product fortified with vitamins and extra caffeine. Available in 20 oz. bottles, 2 L bottles, and 12-packs of 12 oz. cans, Diet Pepsi MAX is sweetened with a blend of aspartame and acesulfame potassium. Diet Pepsi MAX joins Pepsi-Cola North America's wide portfolio of 13 colas that includes caffeine-free, diet and flavored versions. The national rollout is supported by a full slate of advertising, marketing and in-store activity. For more information, please call PepsiCo at (914) 253-2950.

Dairy Lifeway Foods, Inc. has launched a new smoothie drink called Lifeway Lassi. These mango and strawberry versions of the traditional South Asian beverage are available in 8 oz. "Grab and Go" containers and will be distributed through select natural, specialty and ethnic food stores nationwide. Lifeway plans to promote the line through its traditional channels as well as by sampling it at yoga studios, conferences and similar events. For more information, contact Lifeway at (847) 415-9347.

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GERRY’S INSIGHTS

Tea’s Advantages Keep Brewing n an engaging recent book, writer Tom Standage sought to tell “A History of the World in Six Glasses” by showing how beverages like coffee, tea and beer played integral roles in the key ages of mankind. By a similar act of reductionism, I think it’s possible to tour the broader world of beverages simply through a bottle of iced tea. The rich range of possibilities afforded by tea – and the concomitant opportunity for new entries in what might otherwise seem to be an exhausted segment – strikes me as quite extraordinary.

This was driven home to me a few weeks ago when a shrewd wholesaler I know, High Grade’s Guy Battaglia in New Jersey, insisted I check out a new brand he was carrying called Alexander’s Real Iced Tea. Guy was one of the first distributors to carry AriZona back in the early 1990s and more recently has aggressively worked Honest Tea, so I’ve learned never to fault his instincts. Yet Alexander’s seemed unprepossessing: nicely brewed tea, but stock bottle, Okay label, standard array of flavors, picture of its young founder on the back panel. What else is new?

When I finally got to meet the founder (last name Krosnowski, so I understand “Alexander’s”) at an event it was clear he was garnering traction for the brand by high-spirited force of personality, his visibly local connections and sheer hard work. In any other category I’m not sure that would suffice, but tea confers all kinds of advantages: it’s positioned as alternative yet accessible, is clearly derived from natural sources (as opposed to most energy drinks and functional beverages) and draws upon a rich nostalgic tradition. It also seems to stimulate consumers’ garage-startup fantasies (“I could do that!”).

That’s not to even mention the spate of recent health news on the ingredient. All this gives an otherwise mundane idea like Alexander’s a fighting chance to carve out at least a regional niche.

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That’s just the beginning in this category, which serves as a platform for excursions into all kinds of other realms. As “Tea Tells Many Tales” outlines elsewhere in this issue, teas are available in a wide range of varieties and can also serve as the familiar base for drinks that play in other segments, too. Meanwhile, venerable brands like Lipton, Nestea and Tetley can only reach so far up the intrigue scales. And after it descended into discounting hell and took an innovation vacation, it remains to be seen whether Snapple’s more recent push into premium realms will be enough to get that brand back on track. Even AriZona has thrived mainly at the value end lately. With consumers showing a remarkable interest in ferreting out niche items, that seems to create any number of openings for new entrants. So what are some of these?

At the gourmet end, I suspect that unsweetened or lightly sweetened brands like Honest Tea, Ito-En and Republic of Tea are about to garner considerably broader – and younger – audiences than the conventional wisdom would have it. I look among my daughter’s high school friends and see a sizable minority eschewing the more sugary Vitaminwater for brands like Honest Tea or Tea’s Tea, and without bridling at prices approaching $2, either. Nor do I see why a gourmet audience won’t be enamored of such top-shelf new entries as Harney & Sons’ bottled line.

Tea is also insinuating itself into CSDs. Steaz has fared well with its green-tea-based better-for-you sodas and Cricket even tries to play off Americans’ cola addiction with its green tea cola.

Then there’s a broad range of functional versions. I’ve been enthusiastic for some time about tea-based energy drinks targeting the majority of American consumers who’re alienated by the ingredients and positioning of conventional ener-

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gy drinks. So far, entries like AriZona Green Tea Energy and Inko’s Energy haven’t quite ignited, and some observers believe that green tea – with its connotation of relaxation – fundamentally fights the idea of energy. I still think somebody’s going to figure it out, if not AriZona, Inko or Steaz, then some new brand.

Maybe it will be one of these yerba mate brands that seem to be rising on consumers’ radar with surprising speed. Even a guy like me, who mainly hangs around in relatively mainstream haunts has begun to run into folks imbibing mate through a traditional gourd and bombilla straw. That suggests that brands like Guayaki and Bombilla Gourd could prove more than a bleeding-edge phenomenon. It also suggests that, as so often is the case, consumers may be running a little ahead of those of us who actually are in the business. It will be fun to see who succeeds in figuring out precisely what their cup – or gourd – of tea is in coming years.

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

TEAS TELL MANY TALES You’ve hooked the customers with health benefits, now keep reeling them in.

By Jeffrey Klineman alk into any Peet’s Coffee to pick up a pound or two and you’re likely to encounter a neat two-disc paper dial resembling a cocktail menu. As you spin the top circle, details about different coffee types emerge, including flavor notes, environmental characteristics, and the best time of day to drink each one.

Walk into any convenience or grocery store, head for the bottled teas, and you’ll find something different – a ragtag assemblage of glass and plastic bottles occupying inconsistent shelf space in the cooler or along the aisle.

This is not a way to treat a hot-selling item. And iced teas are red hot, up nearly 26 percent last year, according to Beverage Marketing Corp.

According to the Tea Association of the USA, tea sales have quadrupled in the last 10 years, to $6.2 billion, and may reach $10 billion by 2010.

And the reason is clear. Maybe even better than sex, health sells.

Beverage Marketing Chairman Michael Bellas, for example, recently suggested that the tea boom is similar to that of red wine, which has experienced a massive surge of sales growth powered by reports suggesting that it might help fight heart disease.

Similar research findings indicate that the teas flavonoids and catechins may function as powerful antioxidants, perhaps reducing cancer risk. Additionally, green tea is being marketed as a potential metabolic fuel, one that can result in extra calorie burning and weight loss.

But while the potential for healthy results – especially long term ones – has helped to energize the tea category, it hasn’t necessarily helped retailers reap extra rewards. Consumers might be buying tea at the expense of carbonated soft drinks (quick: name a drink category that isn’t benefiting at the expense of CSD’s!), but they’re not necessarily buying more liquid overall. And that means that, unless they’re able to take advantage of up-sell opportunities, retailers are only breaking even.

But, being natural, traditional, and international, tea has specific advantages over CSDs that other beverages don’t. Those advantages can be leveraged to help improve the margins on the tea products retailers sell, while also increasing their potential to sell even more products.

For inspiration, look to tea houses: a wide variety of blends combine with an ever-growing menu of custom products to create a multitude of angles for growth.

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F

or a simple mixture of leaves and water, tea has a flexibility of formulation and, yes, function to enable savvy retailers to approach the category from a number of directions. It’s something that marketers and manufacturers already realize, and are trying to fill through horizontal expansion of their tea families to include products like red and green teas, sweetened, unsweetened, herbals, decafs, and energy varieties.

But the ever-broadening variety of products on the market also allows retailers to pick and choose an assortment that can appeal to many different kinds of consumers.

In other words, motivated retailers can use their tea sections as mininarrowcasting experiments. With tea awareness at an all time high (need number here) and the number of RTD varieties and preparations increasing like so many rabbits, there’s no need to be wedded to a simple brand lineup. Remember, as a retailer, you can tell a story with a cooler door or with a product display, and by mixing and matching, by blending your tea selections, you can tell your consumers that there’s a lot more to the product than just the latest introductions from Snapple, and that there’s a lot more to tea than just antioxidants.

And here’s the good thing: all teas have antioxidants, anyway. With that compelling reason for consumers to buy teas already covered, there are ways to keep them coming back. What’s nice is that you can extend your reach into so many other sales strategies knowing that consumers are turning to tea already.

To that end, what we’ve done is, with the help of some of our buddies in the industry, put together some arrays of teas that indicate five different sales approaches. The idea here? When it comes to catching customers, antioxidants offer one of the widest nets you can throw out there, but to keep bringing them back, a little narrowcasting helps, as well.

TEA FOR TASTE Here in the taste segment, variety thrives. Your products might include juice and tea blends, conventional “sweet” teas, including mint and lemon, as well as a wide variety of Snapple and AriZona products and clones. The idea is that there are as many flavors and sweetener levels as possible, from Arnold Palmer to Peach Ginger, and room for Republic of Tea’s Pomegranate Green as well.

When laying out a taste arrangement, pull in as many different flavors as possible, and go up and down the pricing ladder. Think your customers will sniff at Lipton with Lemon? What about an organic Sweet Leaf with a grinning granny on the side? Too expensive? They might go for a Snapple. The point here is to offer a shelf set that covers a variety of tastes at a variety of price points.

Track your customers carefully. Cycle through different flavors if your space is limited. Make sure you ask them about the ones they like and don’t like. You might be going conventional here, but you can do so at a premium – it doesn’t all have to be AriZona (although make sure you stock plenty of that, too.) Magnolia Spice teas, for example, offer a variety of sweetened options that will give you a range of flavors at a better price point.

TEA FOR ENERGY Tea was one of the most popular additives to energy drink formulations last year, and there’s no secret why – the number of health studies associated with tea extract and its natural caffeine content make it a natural fit for this fastgrowing beverage category. But because of that native caffeine, tea is a fine energy source itself. And by factoring in a number of other brews made with Yerba Mate, a solid “natural” energy shelf emerges in your store.

A sign helps guide customers to this setup: “Need a Lift? Turn to Tea,” or some similar language will clue them in to the fact that the shelf they’re looking at combines all of the health benefits of tea with the energy they crave.

Start with conventional or organic green teas, and then go up to black, which have about half the caffeine of a cup of coffee (Honest Tea even has a handy graphic showing that very ratio). From there, move on to products like Guayaki or Bombilla Gourd Yerba Mates, a pair of upscale glass bottles that provide a strong boost. Next to those you can add Kombucha, a fermented tea that packs an even stronger punch. Finally, punctuate the energy category with an exclamation point – Inko’s, Steaz, AriZona, and even conventional products have their own energy drinks that use white, green or black teas for flavor and caffeine.

TEA FOR SNOBS Welcome to the high end, the fine wine-like world of delicacy and “terroir.” No products in this section need to be sweetened, because your consumers like their products straight, clean, and with a point of origin.

Here, you run products with the whiff of import, both regularly and on a rotating basis. A spotlight on India, China, Japan, or even Great Britain gives you the opportunity to put a cold-brewed single-sourced product on the shelf at a premium. With companies including Tazo, Honest, Ito En, and products ranging from matcha to barley tea, a snobby shelf with a steady turn can bring in plenty of high-margin sales.

Or go for color: Inko’s White; Kalahari Red; Tempsest Green; Honest Tea’s Just Black; New Leaf Blue. They all offer you a chance to catch the inquisitive consumer in a series of taste comparisons. And yes, you can probably do it all with Snapple and AriZona, if you think your customers might embrace different tea types that way, as well.

TEA FOR FUN Aside from energy, there are a lot of tea products that are being marketed with a sense of fun. Note TeaZazz’s and Steaz’ carbonated tea products, as well as Jones Organics. They’ve all got the chance to go under a “have you tried me?” label, along with Fuze’s odd tea, milk

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ccording to a survey by the restaurant and tchotchke chain Cracker Barrel, 55 percent of Americans prefer their iced tea sweetened, and more than 25 percent of men and women believe sweet tea drinkers are friendlier and more laid back than drinkers of beverages like soda or bottled water.

Sweet tea drinkers were also perceived as funnier than unsweetened tea or coffee drinkers. Neat-o!

and juice blends and the intriguing Thai iced tea blends from Taste Nirvana. Blends work well here, as well, be they the coffee/tea mix from Cha Dao, the same Arnold Palmer from

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AriZona or, if you want to upscale it, Sweet Leaf ’s Half and Half.

Here’s where the Swiss Hemp Iced Tea might sell, as well as that great tea mixer for booze, Delta Blues iced tea.

And, because we couldn’t leave it out, we’ve also included: TEA FOR HEALTH Here’s where you can roll out not just the antioxidants, but specific salubrious functions. Products like Anteadote and Tonic Scene offer lines that are geared toward relieving colds, upset stomachs, providing extra vitamins and relieving stress. Teany’s whimsical, minimalist blends work here, as does that ubiquitous, “calorie burning” product, Coke and Nestea’s Enviga. A shelf of herbal teas, a stand with Ricola nearby, and some Sudafed behind the counter; what more could one need?

BRAND NEWS:

TEA Republic of Tea – The Republic of Tea celebrated its 15th anniversary in May. A progressive, socially conscious company dedicated to enriching people’s lives through the experience of tea and the Sip by Sip Life, the Republic of Tea is one of the fastest growing cachet brands in America. Its popular Sip for the Cure line of green teas was created with the goal of contributing one million dollars to the Susan G. Komen Breast Cancer Foundation.

Zen Shot – Whole Foods launched the Zen Shot product line in all Texas stores during the week of July 16th. These 2 oz. green tea energy shots provide benefits for those on the go who not only need energy but also powerful antioxidants and vitamins without caffeine and refined sugars. Zen Shot has a proprietary Green Tea Extract that provides the antioxidant benefits of 5 to 8 cups of green tea, aloe leaf juice, no refined sugar or caffeine. The Zen Shot product line comes in Original, Mint, Orange, Lemon and Berry flavors.

Honest Tea – Honest Tea, the nation’s top-selling brand of organic bottled tea, is expanding its line of ready-to-drink beverages with the addition of Pomegranate White Tea with Açaí. Three antioxidant-rich ingredients – pomegranates, white tea, and the açaí berry, are combined with less than three teaspoons of organic cane sugar to create a delicately flavored tea perfect for the tea-lover as well as the health-conscious consumer. A serving of Pomegranate White Tea with Açaí is 35 calories per 8 oz. serving--about half the calories of most other pomegranate teas on the market. It is in distribution now and is available in a 16.9 oz. recyclable PET bottle.

Cha Dao – Cha Dao Tea has launched Yin Yang, the fifth in its collection of "America's Freshest Tea" bottled beverages. Yin Yang is a blend of fresh-brewed organic black tea and coffee—a popular drink in Hong Kong but little known outside Asia, partly due to the difficulty of pulling off a well-balanced coffee-tea blend. Yin Yang blends organically grown black teas with organic Mexican and Sumatran coffee beans prepared by Kaladi Brothers, Alaska’s leading coffee roaster, known for their popular “Red Goat” blend. Like other Cha Dao teas, Yin Yang must be sold within three months of bottling, contains no preservatives, and is kept under refrigeration from the moment it’s made.

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Snapple – Snapple has added a line Classic Black Teas to the brand's "Good for You" line of beverages. The new Classic Black Teas feature traditional hot tea flavors that tea enthusiasts will love. Made with authentic black tea blends, real sugar and real honey, Snapple Classic Black Teas are available in three traditional flavors: English Breakfast, Earl Grey, and Orange Pekoe.

Made with naturally brewed tea and lightly sweetened with real sugar, these black tea blends contain only 35-40 calories per serving and offer protective antioxidants. Snapple Classic Black Teas' taller, slimmer bottles provide an additional 1.5 ounces of revitalizing zest, allowing consumers to savor the authentic tea experience a little bit longer.

Tea Scene – Formerly Tonic Scene, the big news at Tea Scene is that it has officially changed its name. Tea Scene is an unsweetened tea company dedicated to using the highest quality teas and herbs to make ready-to-drink organic iced tea. Each Tea Scene product is sugar-free and the line includes flavors like Lavender Mint, Lemon Myrtle, Rooibos African Chai, Tropical Chamomile, and Yerba Mate with cinnamon.

Fuze – Launching in August will be Fuze Black and Green Tea, a new entry in the Fuze healthy tea platform. This product combines the robust black tea flavor with light acai-berry taste. Using smooth black tea to round out some of green tea’s bitter notes, this product also contains the polyphenol and antioxidant benefits that consumers have come to expect from Fuze healthy teas.

TeaZazz – Fans of TeaZazz’ brand of sparkling tea beverages now have a new flavor to love – Green Tea Mint, which joins the three original TeaZazz flavors – Original, Green Tea Lemon and Peach. Now fans can enjoy Green Tea Mint – which delivers the crisp, exotic aroma and taste of mint, combined with the health benefits of green tea. Introduced earlier this year, TeaZazz is an innovative new iced tea beverage that combines the sparkling fun of soda with the health benefits of powerful antioxidants found in tea. TeaZazz has no high-fructose corn syrup and contains 20-25 calories per serving.

Guayaki – Guayaki is offering its first ‘naked’ organic yerba mate drink. Guayaki Yerba Mate has announced a new traditional-style

The secret to Tradewinds’ exceptional taste is in our kettle brewing process. We are devoted to delivering authentic iced tea to our customers. Unlike other tea brands, we do not use high speed extraction processes or powdered teas and we’d never use preservatives. We brew our tea gentle and slow in small batches utilizing our proprietary kettle brewing process. By simply steeping tea bags in our kettles, we deliver a truly fresh tea taste.

From hand selecting the finest tea leaves to brewing each batch with the utmost care and attention, we guarantee the best.

1-800-599-8434 www.tradewinds-tea.com

Unsweetened Mate. This new low-calorie beverage highlights the robust flavor of brewed rainforest yerba mate in a premium 16 oz. bottle. Guayaki’s organic Unsweetened Mate is styled in the South American tradition known as “terere” – a technique of preparing yerba mate cold, as opposed to the more typical hot tea version that is the most popular drink in Argentina, Paraguay, Uruguay and much of Brazil.Unsweetened Mate can be purchased at natural foods stores, supermarkets, cafes and gyms throughout North America. Earlier this year, Guayaki introduced a line of three functional yerba mate ‘fusions’ that feature blends of yerba mate with powerful herbs and organic juices.

Sweet Leaf – All-natural tea maker Sweet Leaf has launched a 12 oz. PET line for food service (hotels, spas, etc.) and schools. The product has already been accepted into over 35 school districts across Texas and the Pacific Northwest and will be replacing soft drinks in many of those accounts. There are currently 3 flavors available: Organic Peach Tea, Organic Original Sweet Tea and Organic Half and Half (half tea, half lemonade). The company will introduce at least 2 more flavors in time for autumn.

Bombilla & Gourd – Bombilla & Gourd Inc. has released two new SKUs, pomegranate and blueberry, and now will brew organic Maté Tea where it is bottled using maté supplied exclusively by EcoTeas, a member of the Fair Trade Federation. With the two new flavors, Bombilla & Gourd now has five SKUs. The blueberry flavor is certified organic (not just natural), and the company has changed its mint/honey flavor to include honey distillate and spearmint extract.

Teany Beverages – Teany has formed several new distribution partnerships in the Northeast.

Canada Dry Bottling Company of New York is now distributing Teany throughout the 5 boroughs of NYC, Westchester County, and Long Island. Canada Dry Bottling of Asbury Park is now distributing Teany throughout Monmouth and Ocean Counties in New Jersey.

Victory Beverage Company is now distributing Teany in Philadelphia, Southern New Jersey, the State of Delaware, and the Eastern Shore of Maryland, and GNT Distributors is now distributing Teany to the following New York counties: Rockland, Orange, and Ulster.

Ferolito, Vultaggio & Sons – Ferolito Vultaggio & Sons, makers of AriZona Beverages, is introducing a new “Fridge Box” to its package portfolio. The Fridge

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Box is a 12-pack dispenser carton that holds a dozen 11.5 oz. cans and has a longer and thinner shape for better space management in home refrigerators. Five different AriZona products, Lemon Tea, Green Tea, Diet Green Tea, Raspberry Tea and Sweet Tea, will each get their own individual Fridge Box. Each will carry the product’s colorful graphics that are now depicted on can and bottle labels. The AriZona “Fridge Box” is being introduced nationally.

SkylarHaley – New Organic essn energy is the first USDA certified Organic and Mission Organic energy beverage. Organic essn energy is produced by San Francisco Bay Area-based SkylarHaley. New essn energy’s innovative formula is derived from nature's own super nutrients and powerful antioxidants including Kenyan Green Tea, Brazilian Yerba Mate and Guarana. The lightly carbonated beverage combines the on-trend flavor of antioxidant rich pomegranate with the exotic accent of limeflower, while remaining completely free of additives, preservatives and high fructose corn syrup. The beverage is packaged in a clean, modern, silver and green 12 oz. can.

T42 – In addition to manufacturing five allnatural, caffeine-free, fruit flavored Herbal Teas including Lemon, Mango, Peach, Raspberry and Strawberry. Teacrest, the maker of T42, also offers more traditional and popular teas including its award winning English Breakfast Tea, Earl Grey, Iced Tea with Lemon, as well as Green Tea with Honey & Lemon, Green Tea with Jamaican Ginger and White Tea with Pomegranate. Teacrest has been making its T42 line of quality teas for many years drawing on the expertise of its founder, whose father, Clement Hakim, was the premier tea importer in the USA for many decades. T42 currently retails in supermarkets, gourmet markets and natural food stores throughout most parts of the US and in Canada. For more distributor information, please go to www.drinkt42.com.

Tempest Tea – Tempest Tea,, a leader in premium Organic/Fair Trade Certified teas, is excited to announce their first multi-pallet shipment to New Zealand based Italian Syrup Company distribution. The Italian Syrup company, headed by Stefano Folcarelli, services mainly grocery accounts in the New Zealand and Australia regions. The Italian Syrup company will be selling both of Tempest’s RTD green tea products, Green U and Tea’d Up. Inko’s – White tea maker Inko’s has expanded into Europe, Canada, and the Carribean. As of July 9th, Boylan's Bottling will be Inko’s main

distributor in New York City (all boroughs and Westchester), expanding on a relationship that began in March with New Jersey distribution.

Additionally, in May, Inko’s embarked on a truckload program with the Giant of Carlisle supermarket group (Giant, Tops and Martin's).

The company has also recently hit the shelves of over 500 Safeways (and their affiliated stores) throughout the country.

Herbal Mist – ABF Beverage has introduced a line of premium sweetened teas which combine all natural flavors, pure cane sugar and the healthful herb Yerba Mate. Herbal Mist was launched in February 2007 and its current distribution is in New York, New Jersey, Conn., Penn. and Calif. Chain approval thus far include Gristedes, A & P, Shoprite, Whole Foods and Bristol Farms. Included amongst Herbal Mist DSD Distributors are Peerless Beverage of NJ and Power-Pak of PA. Herbal Mist has immediate plans to launch a diet line sweetened with Splenda, which will bring Herbal Mist into the no-calorie, no-carb arena.

Nurture by Nature – Nurture by Nature, Inc. offers a new line of distinctly light, naturally flavorful ready-to-drink Yerba Mate teas in 16 oz. glass bottles. Nurture by Nature’s Yerba Mate is fresh brewed using a smooth organic yerba mate unique to the family-owned hacienda, Establecimiento Las Marias. Nurture

by Nature is proud to work with Las Marias: the only producer certified by the Inst. for the Rational Use of Resources (IRAM), The Forest Stewardship Council, and the National Inst. of Farming Technology for their sustainable farming and socially responsible business practices. Nurture by Nature presents mate in four flavors that are all sweetened using only natural organic juices, flavors and cane sugar: Honey & Lemon, Mixed Berry, Sweet Pear, and Brazilian Orange. The packaging invites drinkers to enjoy the benefits and history of these healthy energizing herbal infusions. All of Nurture by Nature’s SKUs are USDA Organicand OU Kosher-certified.

Alex’s Lemonade Stand – Alex's Lemonade Stand has introduced Alex’s Half Lemonade & Half Iced Tea to its line up of bottled lemonades.

Alex’s Lemonade Stand Foundation has become a leading foundation for childhood cancer research and has donated millions through grants to pediatric cancer centers across the country. These hot-filled products are made with high-quality ingredients, including real lemon juice, making them a fun healthy choice.

Alex’s Lemonades are available in 20 oz. bottles and are packaged 24 to a carton.

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Ito En – Drawing on Dr. Andrew Weil’s wisdom and Ito En’s unique mastery of technology and expertise in tea growing and preparation, Ito En is introducing Dr. Andrew Weil for Tea, a line of unsweetened green tea products which maintain the integrity of the tea, its health benefits and authentic tastes. The brand’s mantra is “In “Inteagrate Your Life!,” which beckons the consumer to incorporate the tea into their daily health regime. Packaging for Dr. Andrew Weil for Tea evokes a very clean image that communicates the product’s integrity and purity. The lineup of 250 mL RTD teas including Turmeric, traditionally offered as a restorative drink of well-being, Green White for pure, clean refreshment, Gyokuro, which is high in antioxidants and amino acids and has an unmistakable fresh taste, Jasmine White, both of which have been treasured in China for centuries for their calming properties, and Darjeeling, a taste of purity.

LivingTonics – After spending a year getting acclimated with the U.S. markets, LivingTonics has decided to expand into the global market.

Parent-company Sigma-tau HealthScience, Inc. is an affiliate of Sigma-tau S.p.A., one of Europe's

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BEVERAGE SPECTRUM // JULY – AUGUST

2007

(Rome, Pomezia, Italy) largest pharmaceutical companies with affiliates worldwide. Sigmatau, a leading investor in pharmaceutical R&D, remains undisputed as the worldwide leader of Carnitine and metabolic research thusly adding to the decision to go global. The three LivingTonics beverages; ResveraCarn (Heart Formula), InTouch (Sport Formula) and ZenBrew (Mind Formula) have all been formulated based on scientific research using a combination of the new AminoCarnitines as well as other unique ingredients that have been proven to support mitochondrial function.

ZredT, LLC – ZT has launched its new ZT Peach Rooibos Red Tea flavor in retail markets. The product was introduced earlier this summer in Sam’s Clubs in Georgia and gained finalist status in a taste competition at the World Tea Expo earlier this year.

Xingtea – Xingtea is an all natural green tea made with pure cane sugar and honey; not high fructose corn syrup. It is now available in nine flavors, with the tenth being introduced September 1. Xingtea is available in 23.5 oz. cans.

Is Gatorade Losing its

Charge?

Age might end

up grounding the lightning bolt

By Jeffrey Klineman

you know the door well – it’s been in your store for a good

fIve or six years now, with only the occasional tweak in Flavors and brands, but an ever-evolving series of packages.

If you’ve ever had a door whos performance is as good as its looks, this is the one: it’s your Gatorade door. It’s had strong marketing behind it, both in-store and over the airwaves. There haven’t been significant competitors; the product owns its category more completely than any other.

But how much longer can it command the space? Are sports drinks starting to slide? Will Gatorade need a little more fuel to win the race?

It’s a long way off, we suppose, but consider this: recently, a survey from Morgan Stanley showed that sports drink consumption had dropped among teen consumers – the key growth demographic for that product line for generations. What’s growing? Younger categories like bottled water, energy drinks, and enhanced water have the cooler appeal for kids these days, and as enhanced water begins to edge more towards the rehydration function, the entire sports drink category could find itself benched even further. The brand’s marketing strength may finally be dated, passed by extreme sports and a new generation of celebrity superstars.

Meanwhile, a bevy of new products are entering Gatorade’s airspace, including several well-funded, well-advertised brands attached to some pretty big names. The brand itself has been around more than 40 years, and despite its success as the first “functional” beverage, it could be coming to a point where it’s pushed the growth envelope as far as it can go – while Gatorade has had a minor success with adding one or two new use occasions, particularly its A.M. product for early-morning exercisers, some of these competitors seem to be coming directly at Gatorade’s basic premise

Gatorade Thirst Quencher Lemon-Lime

Gatorade through the years

1967

as a mass market source of hydration, but with more refined pitches suitable to a narrowcasting world.

Will Gatorade ever have to face a time when it’s the number 2 product in its category? Probably not, unless it falls behind its own Propel “Fitness Water,” which, with its low calories but high electrolyte count, has the allegiance of a massive cadre of former users of the core product. But the day may not be that far off when the brand is a percentage of what it once was, its monolithic structure chipped away by competing brands and competing functions, while its core customers age out of the category altogether.

Already it is trying to shape up market share, announcing recently that a “diet” version will launch for “nonathletic pursuits” in the coming year.

Gatorade’s success was built on its ability to win and retain drinkers because it mixed function with cultural relevance. It’s that second half of the winning formula where the brand is most vulnerable: Gatorade made all of the right moves to grow into the behemoth it is now – it hitched its wagon to the perfect set of stars and leagues, largely eschewing Major League Baseball for the world of the NFL and, most particularly, the NBA. The acquisition of Quaker Oats by PepsiCo kicked the brand’s distribution into high gear just as iconic spokesman Michael Jordan started pocketing NBA titles. The product became the everyday drink of a generation that was raised watching his every move. From functional underpinnings that gave it a boost in the athletic arena, Gatorade grew into a cultural phenomenon.

Unfortunately for Gatorade, and for sports drinks overall, that cachet is being grabbed by functional products with which consumers feel closer identification, specifically, Glaceau’s Vitaminwater. While Gatorade grew

Gatorade Lemon-Lime 32 oz. plastic

1969 Gatorade Thirst Quencher ORANGE

30

BEVERAGE SPECTRUM // JULY – AUGUST

2007

1993

1995 Gatorade fruit punch sports bottle

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 ©2007 CytoSport Beverage Company, Benicia, CA 94510

888-298-6629.

1997

Gatorade lemonade launch

Gatorade 12 oz. all-stars

Gatorade frost launch

1998

2003

2005

2004

Gatorade lemon-lime edge

Gatorade x-factor launch

in an ESPN world, Vitaminwater and other functional beverages are YouTube. Rather than have one highlighted function, consumers can now dial into dozens. Sports icons aren’t the only ones who are capable of selling functional products, and Glaceau has a formidable roster from across the celebrity spectrum. Along with energy drinks, which realized early on they needed to poach extreme athletes who might once have endorsed Gatorade, there’s a whole new breed of heroes out there, and what they drink doesn’t necessarily come with a lightning bolt.

Said one recent college graduate, “The Vitaminwater would just disappear around campus.�

Meanwhile, the number of viable, mainstream competitive products aiming for a share of the sports drink side of Gatorade’s success is growing. First off the bench is PowerAde, which has signed up the latest star billed as Jordan’s heir, LeBron James. While the last NBA Final didn’t rate with television consumers, James may be just coming into his own when it comes to moving product. PowerAde has also been priced aggressively by Coke in recent months, building share more than 25 percent by slashing its cost to distributors.

New to the party are two performance-oriented products that seek to chase Gatorade not from the perch of a GNC or Vitamin Shoppe, but from a mass market position. Cadbury Schweppes rescued long-suffering

2007 Gatorade bottle redesign

drink mix Accelerade from obscurity, turned it into an RTD product, and is now pushing its 4-1 carbohydrate to protein ration with a reported $55 million ad campaign aimed squarely at the category leader. FRS offers a slightly less direct challenge in terms of sporting performance, but comes with a roster of heavy investors and industry expertise, as well as the influential face of bicyclist Lance Armstrong. With a proposition that it offers cancer-fighting nutrients and a bit of caffeine, FRS is an all-in-one functional proposition that might turn the heads of some consumers who are ready to graduate from Gatorade.

Also trying to carve off a piece of the big Gatorade bird are an increasingly large number of natural products made with coconut water – the electrolyte of choice for the crunchy good-lifer. Other organic Gatorade knockoffs are channel-specific, to be sure, but that organic channel gets bigger every day, with consumers who are dedicated to the organic lifestyle.

So what does that mean for your Gatorade door? Well, it’s still going to be there for awhile. But Jordan retired a long time ago now, and he’s been awfully quiet ever since. If the category slows down to his pace, you might find yourself wondering the same thing about that door as you did about Jordan – what was all the fuss about in the first place?

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 32

BEVERAGE SPECTRUM // JULY – AUGUST

2007

brand news:

Sports Drinks RW Knudson – Ready for summer is all-natural R.W. Knudsen Family’s Recharge. An all-natural beverage, Recharge contains 50 percent juice, water, sea salt (for essential electrolytes), and nothing artificial. Each 8 oz. serving of Recharge contains 25 mg of sodium and 100 mg of potassium, an appropriate balance of two essential minerals to help the body restock for optimal functioning. Recharge is available in grape, lemon, tropical, orange and organic lemon. To reflect the beverage’s sporty personality, R.W. Knudsen updated its packaging and label design this spring. The new packaging includes a shift to #1 recyclable plastic bottles, allowing the product to be more convenient for on-thego activities. Recharge is also available in 16 oz. recyclable plastic bottles.

Mix1 – Launched in June in Whole Foods, Mix1 is an all-natural nutritional beverage, Mix1 is a comprehensive blend of premium nutrients with the optimal balance of carbs and protein to provide balanced energy. Mix1’s blend of ingredients includes 200 calories per serving, 15 grams of premium lactose-free whey protein isolate, 22 vitamins and minerals, antioxidants from polyphenols equivalent to four cups of green tea, fiber, and organic sweeteners. Mix1 is also ideal for post-fitness situations, as whey protein supports glycogen synthesis and muscle repair. Mix1 is available in four delicious flavors: Mango, Blueberry-Vanilla, Lime, and Mix Berry. The 11 oz. bottle, though best served cold, mix1 is shelf-stable for nine months.

Function Drinks – From Function Drinks comes Shock Sports an all-natural beverage that works for rapid re-hydration but also contains a natural anti-inflammatory called Devil's Claw.

Flavored with lemon-lime, this product combines muscle and joint anti-inflammatories for pain relief, cortisol-inhibition for faster muscle recovery, cutting edge rapid hydration technology, and a proprietary electrolyte replacement system that aims to improve oxygen delivery and overall muscle performance.

LIV Natural – LIV Natural is an all natural sports drink for athletes and active adults and kids. LIV Natural’s includes agave nectar as a sweetener

34

BEVERAGE SPECTRUM // JULY – AUGUST

2007

instead of high fructose corn syrup; there are no additives, preservatives or artificial colorings; rice syrup is a complex carbohydrate making it easy to digest, eliminating the queasy feeling one often gets when drinking a sports drink after exertion.

Cadbury Schweppes – Accelerade, a product of Cadbury Schweppes Americas Beverages, is the first protein-enhanced sports drink with a patented 4:1 carbohydrate-to- protein ratio. While most sport drinks contain only carbohydrates and electrolytes, Accelerade also incorporates protein and has been clinically proven to extend endurance, speed muscle recovery and enhance rehydration. Accelerade 20-ounce bottles are available nationwide in convenience and gas, grocery and specialty retail channels in four flavors: Fruit Punch, Mountain Berry, Peach Mango and Citrus Grapefruit.

Vita Coco – Vita Coco, the original coconut water and one of the fastest-growing lifestyle beverages in the country, has announced increased distribution for the brand through a new relationship with Target. Vita Coco, created by All Market, Inc. has quickly found a loyal following with consumers ranging from yoga enthusiasts to a national hockey team (the Pittsburgh Penguins) to celebrities and recognized tastemakers. Vita Coco will be sold at 160 Target stores in the Western U.S., with plans to increase the number of doors soon. The beverage has a single ingredient, coconut water, with no preservatives, added sugars, juices, water or coloring. In addition to natural coconut water, the company offers three new flavors including Vita Coco with Passion Fruit Puree Vita Coco with Peach and Mango Puree and Vita Coco with Pineapple Puree.

WheyUp – WheyUP LLC has introduced a new flavor of its popular WheyUP drink to the U.S. sports drink market. WheyUP, the original protein drink with energy, will be available in citrus flavor, which complements the company’s extant berry flavor. WheyUP combines 20 grams of whey protein with an energy formula in a sugar-free, non-carbonated beverage. WheyUP Citrus will be sold in ready-to-drink 16 oz. plas-

tic bottles and will be available in September.

WheyUP is targeted toward health-conscience individuals and fitness enthusiasts. It is ideal for fat-loss programs, exercise programs, weighttraining programs, athletic activities, and as part of a healthy, active lifestyle.

Sports USA – Newly founded Kool Koncepts, Inc. has strategized its first offensive play, in the form of a sport drink beverage. Conveniently packaged, individually wrapped power paks are sold in a variety of reusable sport bottles with unique 53 mm “No-Drip Sport Caps” to prevent spills and allow for ice cubes to be used easily. SportUSA drinks are offered in six flavors: grape, orange, strawberry-kiwi, blue-razz, lemon lime, and fruit punch. These six flavors are low sodium and sweetened with Splenda.

Hansen’s – A clean sports drink with a better nutritional profile than the leading sports drink brands, Blue Sport comes in three Leading Flavors: Lemon-Lime, Fruit Punch & Orange, with no high-fructose corn syrup, no artificial flavors and no animal-sourced ingredients. The product is rich in Potassium, B Vitamins and other electrolytes. This product is packaged in 16 oz.

PET bottles featuring the Blue Sky name.

Terra Sport – TerraSport is a natural sports drink originally developed in France for high level endurance athletes. Now available as a mainstream product in the United States, TerraSport has no high fructose corn syrup, no artificial colors and no artificial flavors. By definition, sports drinks must have carbs and electrolytes to serve their purpose. Carbs come from the sugar and TerraSport leverages the natural sugar and goodness found in bananas, instead of highly processed and refined sugars. In France, the original product line [marketed under the name Banactiv] won the Most Innovative Food & Beverage Technology award in 2004 by the French Government and was highly recommended by the top sports doctors on staff at some of the most successful professional Soccer and Rugby clubs in Europe. U.S. Flavors include Peach Mango, Citrus Berry, Lemon Lime and Fruit PunchSavannah Distributing of Atlanta carries the product for the convenience and grocery channel. TerraSport will also soon be available at Kroger, Whole Foods Market and Walgreen’s in the Atlanta market Ajinomoto – Ajinomoto’s Amino Vital has two products with new packaging: Amino Vital Ready-to-Drink and Amino Vital Ready-to-Drink Pro. Amino Vital RTD is available in Orange and Lemon-Lime and is intended to be taken before

and during workouts; RTD Pro is available in Fruit Punch and Tropic Fruit and is intended for training and competition. These products are available at GNC, Vitamin Shoppe and other retailers. Amino Vital is an Official Supporter of the United States Olympic & Paralympic Teams and a proud sponsor of the New York Yankees, the Chicago Rush, the Colavita/Sutter Home Men’s & Women’s Pro Cycling Teams, world #1 triathlete Hunter Kemper, world ranked pentathlete Sheila Taormina, and celebrity trainer Jason Walsh.

DZL Gear – DZL is the first and only sports drink that delivers 10 g of protein, antioxidants A.C.E, plus glucosamine for enhanced well being. Zero sugar, zero carbohydrates and zero caffeine allows DZL to be enjoyed safely and effectively throughout the day. DZL recently switched to Orange and Berry flavors from Citrus and Wild Berry, and it comes in a UV Protected Sports Bottle 20 oz. bottle to ensure the safety of the product’s Patent Pending Vitamin Blend.

CeraSport – CeraSport, a rice-based oral rehydration energy drink, restores essential salts and fluids, prevents and corrects dehydration and enhances athletic performance. Developed along with physicians at Johns Hopkins University, this rice based drink is easier for the body to absorb than sugar-based drinks due to the special ingredients, such as rice carbohydrates, which help stimulate sustained absorption. The carbohydrates in CeraSport stimulate a “timedrelease” effect avoiding a short-lived sugar charge as found in typical sports drinks, for prolonged superior hydration. Cera Sport is available in powder, concentrate or ready to drink form in several flavors including Citrus, Fruit Punch, and Berry. For more information about CeraSport, visit the website store at www.ceraproductsinc.com.

Running Water – Imbibe – The Drink Tank is launching Running Water, a scientifically-formulated water that enhances athletic performance and aids in the body’s recovery and re-hydration after physical exertion. Imbibe has been formulating beverages for major brands since 1963 and is regarded as having one of the leading applications laboratories in the world. Imbibe’s experience in sports hydration dates back to its initial involvement with . Stokely Van Camp, the company which commercialized Gatorade after its creation at the University of Florida. Running Water is a available in 16 oz PET bottles and comes in 4 initial flavors: lemon, peach, strawberry and grape.

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M

CONVENTION SCRAPBOOK

ore than 300 exhibitors and 5,000 buyers gathered in Atlanta at the Georgia World Congress Center, June 9-11, for the World Tea Expo.

Unsweetened purists Ito En (Tea's Tea, Dr. Weil for Tea, etc) and Adagio were both at the show. Z Red Tea, under new ownership, was busy serving samples of its Rooibos blends. Other RTD brands at the show included Puripan traditional Korean fruit teas, Dong-Suh Green Tea, Delta Blues Iced Tea, and Republic of Tea. Additionally, Salisbury, Conn.-based Harney & Sons launched a new line of five lightly-sweetened, organic flavors in 16 oz. glass bottles. We also ran into a small chai producer from Sedona, Ariz. called Mighty High Chai, as well as a private label tea producer by the name of Papa's Simplici-tea, LLC which had its own organic energy tea called Bangkok Blast.

Atlanta-based Amelia Bay had the largest exhibit at the show. Amelia Bay develops and manufactures of coffee and tea extracts, essences and aromas.

World Tea Expo

Amelia Bay's John Crandall.

Z Red Tea - c

oordinated!

Todd Rubin Republic of Tea'ns Starp. and Kristi

Ito En's Beau

Bernstein.

Christina Rillo and Michael Kromer of Adagio.

Michael Harney of Harney and Sons.

Leslie Bass Delta Blues'

naus.

and Dennis Kor

Green Tea from Dong Suh. 36

BEVERAGE SPECTRUM // JULY – AUGUST

2007

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CONVENTION SCRAPBOOK

Fancy Food Show he 2007 Summer Fancy Food Show took place at the Javits Center in Manhattan from July 8-10. This annual event is focused on retailers and distributors of specialty food and beverage products, so it’s no surprise that the 50 or so beverage companies exhibiting at the show were focused on trends that fall into the premium segment of their category.

Certainly no surprise was the fact that most beverage exhibitors were excited (or concerned) about the rapidly changing landscape of the industry. The recent acquisitions of Fuze and Glaceau had several beverage marketers buzzing about new openings, especially with key vitaminwater distributors (pending buyouts). There was also lots of discussion about “Who’s next?”

Most were focused on Hansen, who, rumor has it, is being pursued by AB. Back to the show floor, there was an abundance of new and unique products to be found. Here are our highlights: Function Drinks – The first major citing of this brand on the East Coast was a good one, with charismatic founder Dr. Alex Hughes and hired guns Bob Miller and Marty Jay Zirofsky taking charge at a booth that was almost constantly packed.

The brand is, according to various mem-

bers of the Function team, having an exceptional year (especially in CA) due in part to the changes to the brands look & lineup, the addition of added talent to the sales team, and openings from Fuze and Glaceau.

Metromint – Metromint’s booth showed signs of a good year, especially behind the additions of their most recent flavors, Orangemint and Lemonmint. Speaking with Moselle Hindle, director of marketing, we were told to keep our eyes out for some very innovative flavors this fall.

Boylan’s – The Boylan’s brand had several new things, with the most exciting being their new “Mash” line. “It’s not a soda, it’s not a water, it’s not a juice….it’s a mash” is how Ron Fiorina described it. Line has attributes borrowed from juice and CSDs and is sweetened with sucralose. Packaging is a proprietary 20 oz. squat PET bottle and will be available within the month. Also new were 8 oz. mixer bottles for the seltzer line.

Harney and Sons – High end tea company Harney & Sons has been around almost 25 years but it’s only now that they are taking a stab at the RTD market. Available in 5 flavors, the product is organic and delicately sweetened (lighter than even Hon-

Will Mash be a smash for Boylan's?

Emily Suttles thanks the academ y, and Sweet Leaf.

38

BEVERAGE SPECTRUM // JULY – AUGUST

2007

est Tea’s “tad sweet” flavors). Packaged at Castle in PA – just like Honest Tea – the brand uses a familiar bottle that has a full bottle clear wrap with a logo that bears a strong unintended resemblance to Kombucha Wonderdrink. The product is taking the high road with price, expecting to retail for $2.50 or more. Currently in the Northeast, with Whole Foods expected to come online soon.

Honest Tea – Showcasing two new Honest Tea flavors as well as the Honest Kids multi pak, co-founders Seth Goldman and Barry Nalebuff have come a long way since “sneaking into the show with a duffle bag” back in 1998. One of the new flavors, Sublime Mate, blends a mainstream citrus flavor with a smooth brew of yerba mate.

Dale and Thomas Popcorn – The company is known for creating great popcorn (really, it’s good stuff) and now they want to be known for making “the best lemonade”. New line has 3 flavors, made with a high concentration of lemon juice and packaged in a 12 oz. glass bottle. Can a snack company make it in the beverage industry? Hey, it worked for FritoLay and Pepsi.

V & V. Now, whi

ch one of you

Ken Cohen an d toast with EPseter Vermeulen sn Energy.

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CONVENTION SCRAPBOOK

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Honest Tea. The tea you can find on the side of a car. Catchy, huh?

Katherine de Tristan Ta it show rosewaters for Sencse.off a pair of

emont shows off Adina's Steve Mdara fine tan. coffee an

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Yet another well-coordinated Metromint line-up. your women.

er Melcher, Sktlylan ti at P ! ls ir Gar d. tG The Go AppeWtiorchesik and Jacqueline Bentsen, Kim

Uh, guys? You're supposed to hold up the product. Guys?

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Zico's Mark Rampolla an The Inko's guys, having another upbeat time.

JULY â&#x20AC;&#x201C; AUGUST

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NATURAL PRODUCTS EXPO EAST

Baltimore Convention Center Baltimore, MD Education: Sept. 26-29, 2007 Trade Show: Sept. 27-29, 2007

PREVIEW EVENT SCHEDULE Wednesday, 9/26/2007

Thursday 09/27/2007

9:00 A.M. – 10:00 A.M. • Retailer Workshop: Art of Giving Great Service with Zingerman's ZingTrain Speaker: Maggie Bayless Room: 316/ 317

8:00 A.M. – 4:00 P.M. • Retail Resource Center Topic Of The Day: The Changing Face Of Consumers Speakers: Adrienne Mastrobattista, Kevin Coupe 300 Level, Pratt St. Lobby

10:15 A.M. – 12:00 P.M. • Retailer Workshop: Hot Topics- Cultivating Valuable Broker Relationships Speakers: Bill Crawford MS, Monique McCurdy Room: 318 • Retailer Workshop: Hot Topics- Organic Retailer Training Speakers: Mark Mulcahy, Shannon Szymkowiak Room: 316/ 317 • Retailer Workshop: Hot Topics- People Power: Keys To Effective Human Resources Practices Speaker: Nancy Hoopes Room: 319 12:00 P.M. – 1:00 P.M. • Retailer Workshop, Networking Lunch 1:10 P.M. – 2:40 P.M. • Retailer Workshop: On The Front LinesSales & Merchandising Speakers: Rick Moller, Tim Blakley Room: 316/ 317 • Retailer Workshop: On The Front LinesSales & Merchandising Speakers: Michael Kanter, Phil Hacopian Room: 318 • Retailer Workshop: On The Front LinesSales & Merchandising Speaker: Gordon Hagedorn Room: 319 2:50 P.M. – 3:50 P.M. • Retailer Workshop:Behind The Scenes- How To Run Your Business Better Speakers: Bill Hargis, Clifford Ginn Room: 316/ 317 • Retailer Workshop:Behind The Scenes- How To Run Your Business Better Speaker: Jay Jacobowitz Room: 318 • Retailer Workshop:Behind The Scenes- How To Run Your Business Better Speaker: Debby Swoboda Room: 319 C

40

9:00 A.M. – 10:00 A.M. • Featured Speaker: Health as Consciousness featuring David Simon, M.D. Rooms: 307/ 308 10:30 A.M. – 12:00 P.M. • The National Organic Program: What It Is and How It Works Speakers: Andrea Caroe, Tom Hutcheson Room: 318/ 319 • Playing by the Rules: Making Meaningful Claims That Comply with Current Regulations Speakers: Ivan Wasserman, Michelle Rusk, Paula Trumbo Ph.D. Room: 314 11:00 A.M. – 12:00 P.M. • Marketing Wellness: Strategies for Retail Success Speaker: Schuyler Lininger Jr. DC Room: 327 12:00 P.M. – 1:15 P.M. • Hot New Products Session with Kevin Coupe Speaker: Kevin Coupe Room: New Product Theater

Speakers: Anthony Almada BSc, MSc, Jeff Hilton Room: 314 • How to be a Farmer Friendly Company Speaker: Fran McManus Room: 318/319 • Town Hall: Food Safety – Behind the Headlines Room: 307/308 1:00 P.M. – 2:15 P.M. • Featured Speaker: David Kamp, Author of United States of Arugula Room: New Products Theater 2:00 P.M. – 3:00 P.M. • Regulatory Q&A with the Natural Products Foundation Speakers: Daniel Fabricant, Tracy Taylor Room: Global Resource Center 2:45 P.M. – 4:00 P.M. • Educating New Organic Eaters Speakers: Byron Freney, Nora Pouillon, Shannon Szymkowiak Room: 318/319 • The Science and Selling of Mood-Enhancing Supplements Speaker: Jack Challem Room: 314 Saturday, 9/29/2007

Friday, 9/28/2007

8:00 A.M. – 1:00 P.M. • Retail Resource Center NNFA-East Topic of the Day: Staying Competitive – Big Fish vs. Small Fish Speakers: Debby Swoboda, Jay Jacobowitz 300 Level, Pratt St. Lobby

8:00 A.M. – 4:00 P.M. • Retail Resource Center Topic of the Day: Community Speakers: Denise de la Mantaigne, Michael Kanter 300 Level, Pratt St. Lobby

2:00 P.M. – 3:00 P.M. • Regulatory Q&A with Industry Consultants Room: Global Resource Center

8:30 A.M. – 10:00 A.M. • Featured Speaker: Dr. Alan Greene's Organic Prescription Room: 307/308 10:30 A.M. – 12:00 P.M. • Successful New Products: From Concept to Shelf

BEVERAGE SPECTRUM // JULY – AUGUST

2007

9:00 A.M. – 10:00 A.M. • Keynote: Paul Hawken Room: 307/308

Visit BevNET.com for your PDF copy of the trade show planner with complete booth listings!

PROMO PARADE Smartwater Makes a Friend All-American beauty Jennifer Aniston has begun an endorsement program with Glaceau’s Smartwater.

Aniston recently became an investor in the company and is even getting actively involved in the business. As part of the partnership, the company co-created a limited-edition smartwater label, available in stores across the country this month.

Aniston will also be starring in an upcoming advertising campaign for Smartwater which will be seen on billboards and print publications this summer.

Wolf Blass Serves up Tennis Australian winemaker Wolf Blass, and Tennis.com, the official site of Tennis magazine, are running a promotion searching for the "Boldest Play" in tennis, in partnership with four-time Grand Slam winner Jim Courier.

Tennis players of all skill levels have the chance to submit their most awe-inspiring tennis achievements via the Wolf Blass microsite found at Tennis.com. "Boldest Play" participants will vie for an opportunity to win the ultimate tennis vacation: a trip for two and accommodations to the final U.S. Open Series match in New Haven, Conn., sponsored by Wolf Blass.

Acceptable submissions must include a one-minute YouTube video or photograph coupled with a 250-word maximum commentary about the play.

World-renowned tennis champion Jim Courier and a panel of Tennis.com editors will judge submissions.

For complete contest rules and submission details, please visit www. tennissweeps.com/WOLFBLASS.

42

BEVERAGE SPECTRUM // JULY – AUGUST

2007

Ultimate Mickey’s When Mickey's Brewing Company announced its alliance with the Ultimate Fighting Championship (UFC) in 2006, the "Fine Malt Liquor" promised to bring fans closer to the action. It doesn't get any closer than Mickey's Throws Down. The brand's latest promotion offers the grand prize winner a trip for four to Las Vegas, admission to a UFC event and a fight lesson with popular light heavyweight Forrest Griffin, who appears on 24 oz. Mickey's cans throughout the promotion.

The promotion, which runs June 1 through Aug. 31, 2007, on MickeysThrowsDown.com, also offers daily prizes, including Mickey's-branded sweatshirts, hats, T-shirts, ice buckets and rebates on UFC pay-per-view events, where legal. The grand prize winner will be determined through a drawing of all eligible entries.

The drawing to determine the grand prize winner will take place in early September. Daily winners on MickeysThrowsDown.com will find out when the words "You win a prize," and the prize description appear on the computer screen.

The promotion is open to citizens of the United States (excluding California) who are of legal drinking age at the time of entry. Official rules are available at Mickeys.com.

Good Looks, Great Taste!

The Grolsch Family Has It All! Grolsch brands are up 47.1% year-to-date!* Elevate the sales power of your import category with the NEW embossed 12-ounce bottles of Grolsch Family brands – including Grolsch Premium Lager, Grolsch Premium Blonde, Grolsch Light Lager and Grolsch Amber Ale. The appealing look of the new bottles mimics the iconic Grolsch 16-ounce Swingtop and the great taste of each brand elevates Grolsch above its rivals, encouraging adult beer drinkers to “Grab A Grolsch.” *IRI Case Share Results – Total U.S. Food (week ending May 20, 2007)

For more information on the sales power of Grolsch, contact your Anheuser-Busch representative and visit us at www.BeerProfit Guide.com. ©2007 Import Brands Alliance, Importers of Grolsch® Premium Lager (Ale in TX), Grolsch® Light Lager, Grolsch® Amber Ale and Grolsch® Blonde Lager, St.Louis, MO