Beverage Spectrum May-June 2008

M AY – J U N E 2 0 0 8

ENERGY DRINKS: FIVE BIG QUESTIONS ALSO THIS ISSUE: LIZARD KING AND COFFEE FANCY FOOD CHICAGO BUYING BUD?

NEW FEATURE: BEVERAGE SPECTRUM READER SERVICE PORTAL see page 49 for details

OFFICIAL ENERGY DRINK

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MAY – JUNE 2008

vol.

6 :: no. 4

28

Cover Story

28 :: ENERGY DRINKS

40

Departments

Features

10 :: BEVSCAPE Jones Soda Campaign Cola

Five questions facing the category.

14 :: CHANNEL CHECK Stella Artois and Import Beer

26 :: BRANDS IN TRANSITION Sweet ride for Sweet Leaf.

18 :: NEW PRODUCTS Revolution 3D, Bud Light with Lime

40 :: THE LIZARD KING

and more

DOES COFFEE John Bello, in his new role, takes

48 :: PROMOTION PARADE

on Starbucks.

Batman’s Milk Mustache

46 :: FANCY FOOD SHOW IN REVIEW Adina shows off after their new cash infusion.

Columns

6 :: THE FIRST DROP The beginning of a beautiful relationship 8 :: PUBLISHER’S TOAST Damage control – let’s share the pain

Beverage Spectrum (Postal Number 024-552) is published monthly with combined issues in January/February, May/June, July/August and November/December by Beverage Spectrum Publishing, Inc., a wholly owned subsidiary of BevNET.com, Inc. One Mifflin Place, 3rd Floor, Cambridge, MA 02138. Periodicals postage paid at Boston, MA and additional mailing offices.

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

4

BEVERAGE SPECTRUM :: MAY – JUNE 08

THE FIRST DROP

THE BEGINNING OF A BEAUTIFUL FRIENDSHIP “If the deal gets done, InBev, which is known for its cost-cutting culture, could make deep cuts to Anheuser’s massive ad and marketing budget at is seeks to gain efficiencies from the high-priced acquisition.”

– The Wall Street Journal, 6/12/2008 From: August Busch IV To: Carlos Brito Subject: We. Need. To. Talk.

Carlos: Hard to believe it’s only been a year since you took over!

First off, thanks for sending me your most recent suggestion regarding the sale of Moule et Frites at Cardinals games.

I’ve already run the idea by Walt Jocketty and, while he seemed less than enthused, I’m sure once he has Tony LaRussa translate it for him he’ll be on board tout de suite.

Now to the meat of the issue: are you trying to give my dad a heart attack? Hasn’t the poor guy had enough, what with your sending him to view the Brahma plant in a Speedo? What is with these ideas, man? I haven’t seen anything this nutty since my Eagle Snacks internship.

There is NO WAY that anyone will ever accept that we’ve reincarnated Spuds McKenzie as Belgian Malinois. The simple fact is, that dog looks far too much like something guarding prisoners at Guantanamo Bay to sell beer. And speaking of selling beer, why have you cut our marketing budget that deeply, anyway? Slashing our hand-selling initiatives was bad enough – do you know how hard it is for our guys to only buy six rounds for everyone at the bar – but now you say we won’t be able to teach the Clydesdales to drive for our NASCAR commercials? I don’t know what kind of television they have in Belgium, but right here in the good old US of Anheuser, we expect that any sporting event telecast will have ads featuring the following: a horse, monkey, or amphibian doing the impossible, a home-grown rock star, and a jolly ethnic type with a lovable catchphrase. I’m sorry, I know she’s got a great backhand and now works cheap, but Justine Henin does not sell beer.

I mean, Carlos, baby, give me a little credit! This isn’t what you want to do. Didn’t we decide we could build InBud on trust, as well as a slightly-higher-that-the-initial-offer share price? We’ve done well so far. We went along with you when you made us start serving Michelob Ultra in waffle-shaped bottles. I personally didn’t like the idea of calling Bud Light “Bud Bruges,” but our people are adjusting. You’d think that I’d have earned a little trust over there in NATO headquarters. I know you told the powers-that-be that you’d be over here cracking skulls and bringing budgets in line, and that’s fine. We all need a little discipline, and you’ve finally done what we couldn’t – sell Beck’s to Americans. But the cultural changes we’re making don’t have to mean that we’re going to be living in St. Luxembourg. No one wants to visit the St. Louis Arc, after all. Even if they are all of a sudden selling really good chocolate there. The big draw is the view, man. Take one a babe up there and enjoy it. Quit with this whole centralized global culture idea. Lighten up! Show some sophistication! Eat some of those great little cabbages!

Also, could you do something about bringing back our old weekly beer allotment?

We enjoyed the Hoegaarden, after all, but we’re running out of fruit. Some icecold Bud would sure hit the spot. Enjoyed responsibly, over the course of a three hour lunch, natch!

Carlos, I look forward to hanging out with you again in the near future. You pick the next event, be it soccer or – eeeecccch! – soccer. But please, please, chill out on the budget cuts. It’s getting to be that a guy can’t even sell a Borba, you know what I mean?

Best, Augie IV P.S. – Sorry I called you an An-Twerp, by the way. I was just kiddin’ around with a nickname. You know, like W used to? You know?

6

BEVERAGE SPECTRUM :: MAY – JUNE 08

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

DAMAGE CONTROL – LET’S SHARE THE PAIN

EDITOR Jeffrey Klineman jklineman@bevnet.com ASSOCIATE PUBLISHER John McKenna jmckenna@bevnet.com ART DIRECTOR Matthew Kennedy mkennedy@bevnet.com GRAPHIC DESIGNER Amadeu Tolentino atolentino@bevnet.com ASSISTANT EDITOR Matt Casey mcasey@bevnet.com

he economy dominates most of the conversations I have in both my personal and professional relationships. As we know, these are not the best of times: we all have watched our 401Ks, IRA’s and portfolios diminish in value. The gas crisis has affected society in ways I never imagined that it could, both fiscally and psychologically.

Here’s what I can tell about what the impact of this economic crisis has been on the beverage marketplace: I talk with dozens of marketers on a daily basis.

That is one of the aspects I love most of my job.

I am privileged to have such passionate friends that help to drive this industry. Their creativity has brought beverages to great heights and will lead us to products that will benefit our society.

Yet, now they are in a struggle just to survive as capital is scarce. When funds are available, it is on onerous terms. Marketers have to take their eyes off the marketing end to deal with the monetary issues that enable them to live another day.

It is sad commentary that they must wear their financial hats first, rather than be the innovators that they set out to be. Frequently, in times of financial crisis, the marketing budget is the first thing to go. I think that’s penny wise and pound foolish. You need to keep selling products, guys, no matter how squeezed profit margins are.

And to do that, you need to keep marketing those products.

Yes, ingredient and packaging costs have soared, eating into the profit margins of copackers and marketers alike. The cost of transportation has had the greatest impact on the

8

BEVERAGE SPECTRUM :: MAY – JUNE 08

way we market and deliver our products. The extra burden on the delivery of goods, via each system, be it DSD, warehouse or hybrid, has eroded the beverage marketer’s ability to make money, certainly, but it is inadvisable right now to pass on these costs to the retailers as they are struggling to make money with their margins being squeezed. Of course, everyone is afraid to pass on these costs to the consumer. They are suffering enough trying to pay their mortgages, put gas in the tank and food on the table. The headlines every day banner the crisis of confidence in our economy. It is not a time to raise prices to the populace. So, collectively, everyone in the chain must take it on the chin for the forseeable future. That way, when things all turn for the good, they will for all of us.

One of my favorite credos that I live by is “this too will pass.” We’ve gone through these cycles before and we will emerge from this malaise, hopefully, sooner than later. Right now it is essential for all sides of the beverage equation to share in the pain until the turnaround occurs.

PRODUCTION MANAGER Adam Stern astern@bevnet.com BUSINESS MANAGER John Schinn jschinn@bevnet.com SUBSCRIPTION INQUIRIES Adam Stern astern@bevnet.com 617-715-9679 ONLINE RENEWALS & CHANGES www.bevspectrum.com/subscribe ARTICLE REPRINTS (500 copies or more) FosteReprints 800-382-0808 x142

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

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

Barry J. Nathanson, Publisher

BPA Worldwide Member, June 2007

Š2008 Skinny Nutritional Corp.

Bevscape

WHAT’S HAPPENING ACROSS BEVERAGES

VOTE WITH YOUR DOLLARS

Jones Soda Co. unveiled a new novelty line that allows consumers to cast their presidential vote long before November. Campaign Cola features three varieties: Capital Hillary Cola for Sen. Hillary Clinton, Pure McCain Cola for Sen. John McCain or Yes We Can Cola for Sen. Barack Obama.

Each sells for $14.99 per six-pack or $23.99 per 12-pack and www.campaigncola.com will track purchases as votes, but all consumers that participate in the campaign will get the same thing inside the bottle: Jones’ Pure Cane Cola.

Is Jones saying that all politicians – on the inside – are the same?

WENDY THE VOICEOVER LADY

Wendy the Snapple Lady is now just Wendy.

The long-time spokeswoman and the Dr Pepper Snapple Group parted ways recently over a contract disagreement, according to Newsday.

Wendy Kaufman told Newsday that she couldn’t accept the contract because it was one-sided, paying her based on appearances, with no guarantee that the company would schedule any.

Greg Artkop, spokesman for DPSG, called the contract “fair,” saying it offered payment for work performed instead of a guaranteed fee. He said it was her decision to leave the company and wished Kaufman “nothing but the best in whatever she does in the future.”

That future will continue to include pitching products, Newsday reported. Kaufman told the paper that she will do voiceovers for cellular phone maker Motorola.

ZOTA’S BACK Zota Green Tea Soda. Is it green tea? Is it soda? Is it an excuse to rehash a Jerry Seinfeld shtick?

It’s all three, and its back. The organic soda brand entered the market by using green tea as the base for a carbonated treat, but the original company couldn’t endure its own growth. It boomed then folded before Tom Eggers resuscitated the brand last year.

Now he’s returned the product to shelves in a few hundred stores, and aims for national distribution in about a year – after a rebranding that will roll out around the end of the summer. The updated line will feature fair trade certified tea, six flavors – RazzBerry, Ginger Pale Ale, Mandarin Grapefruit, Island Pineapple, Bling Cherry and Pear Dragonfruit – and come packaged in mixand-match-able four-packs. Each four-pack box features a character that wraps around all four sides. Put all four boxes together to form one continuous picture, or jumble-up the boxes to create your own character.

Eggers offered a preview of the new packages at April’s All Things Organic show in Chicago, where he said he also started chatting with Texas grocery chain HEB.

ADULTS ONLY Expect the shape of beverage marketing to change in the next few years.

Coca-Cola and PepsiCo, along with the International Council of Beverage Associations, have declared that they will use new voluntary guidelines to restrict advertising to children.

Under the new plan, beverage companies agree to eliminate advertising and marketing of a wide range of beverages – including CSDs – in venues that are predominantly populated by children 12 or younger.

That rule cuts across all media outlets including TV, radio, internet phone messaging and movies – so there will be no Pepsi deal for Hannah Montana.

As part of the guidelines, ICBA says it will review other forms of marketing, including sponsorships, presence in schools, and point-of sale promotions by the end of 2009.

10

BEVERAGE SPECTRUM :: MAY – JUNE 08

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BREWERS NEWS

EXECUTIVE MOVES

Anheuser’s Dilemma Anheuser-Busch received a merger offer from Belgium-based InBev that would make the combined company the largest beer firm in the world – producing more than 12 billion gallons annually.

InBev offered to buy the St. Louis-based brewery’s outstanding stock for $65 per share - just over $46 billion in total. As part of the proposal, InBev suggests making St. Louis the company’s North American headquarters and the global home of the flagship Budweiser brand. The Belgian company would also maintain all of Anheuser-Busch’s U.S. breweries.

“Together, we would draw on the collective expertise of both companies’ management and employees,” said Carlos Brito, chief executive officer of InBev. “We also recognize the great contribution of Anheuser-Busch ‘s wholesalers to the company’s success and would work closely with them, under the three-tier system.”

› Bossa Nova has added Larry Wu and Joseph Sain to its executive team as chief operating officer and senior vice president of sales, respectively. The new team members will report to Alton Johnson, Bossa Nova founder and CEO. Wu was most recently VP, Consumer Strategist for Iconoculture. Sain joins the company from Cadbury Schweppes Americas Beverages. › Royal Buying Group, Inc. has promoted Sharon Porter, formerly RBG’s Director of Business Development, to Director of Vendors & Business Development. Ms. Porter joined Royal Buying Group, Inc. in 2003. › The American Beverage Association has elected five new members to its board of directors. The new members are Rodger L. Collins, president, bottling group sales, Cadbury Schweppes Americas Beverages; Hugh F. Johnston, president, Pepsi-Cola North America; Robert M. Levi, group vice president and president, beverages sector for Kraft Foods; Lawrence J. Lordi, president, Coca-Cola Bottling Company of Northern New England; and Claude B. Nielsen, chairman and CEO, Coca-Cola Bottling Company United, Inc. › Stirrings has announced that Robert Swartz, former Vice President of Sales at Terlato Wines International, will join the company as its Chief Executive Officer. › Janet DiGiovanna and Danny Rubenstein, who were directly involved in the creation of Naked Juice, Pom Wonderful, Odwalla and Tazo brands, have joined with SENCE-Worldwide to structure on- and off-premise accounts nationally and internationally. › The International Bottled Water Association (IBWA) has announced that Tom Lauria has joined the association as Vice President for Communications. › The Sunny Delight Beverages Co. has named Rick Suchenski Vice President and team leader for Fruit2O flavored water. › Boo Koo Holdings, Inc. has appointed Gil Cassagne, formerly Chief Executive Officer of Cadbury Schwepps Americas Beverages, Jack Belsito, formerly President of Snapple Distributors, Inc. and Joe Bayern, formerly Chief Strategy Officer of Cadbury Schwepps Americas Beverages, to its Board of Directors. › SABMiller plc and Molson Coors Brewing Company have announced the MillerCoors leadership team. Leo Kiely, current CEO of Molson Coors, will be the CEO of MillerCoors; Tom Long, current CEO of Miller Brewing Company, will serve as President and Chief Commercial Officer; Tim Wolf, current CFO of Molson Coors, will be the Chief Integration Officer; and Gavin Hattersley, current Senior Vice President of Finance at Miller, will be the Chief Financial Officer. In addition, the following appointments to the MillerCoors leadership team will become effective upon the closing of the transaction, which is expected to take place June 30, 2008: Tom Cardella, Eastern Division President; Ed McBrien, Western Division President; Andy England, Chief Marketing Officer; Dennis Puffer, Chief Operations Officer; Karen Ripley, Chief Legal Officer.

Pale Moon Rising Coors Brewing Company plans to add Pale Moon as a pale little brother to their successful Blue Moon beer. The Blue Moon line now includes a full selection of seasonal beers, and Beer Business Daily reported that Coors anticipates selling 1 million barrels of Blue Moon in 2008.

Hot Chill Miller Brewing Company won four “Hot Brand” awards from industry newsletter Impact. The newsletter recognized Miller Chill, Sunset Wheat, Peroni and Sparks Plus, giving Miller more awards than any other brewer.

Canned Tire New Belgium Brewing Co. will offer its flagship beer – Fat Tire – in cans so the brew can be sold in places where glass bottles aren’t an option.

Magic Pyramid?

Magic Hat brewing company is moving to buy Pyramid Breweries Inc. Pyramid signed a letter of intent under which Magic can buy the company for cash amounting to about half Pyramid’s total stock value.

The brewer posted a loss at the end of 2007 and announced plans to cut staff, but the acquisition would give Vt.-based Magic Hat a West Coast presence.

New Channel for Grolsch Anheuser-Busch plans to terminate its U.S. importing rights to Grolsch, which Miller will pick up. Anheuser-Busch has imported Grolsch since April 2006 under an agreement with brand owner Royal Grolsch NV. In February 2008, SABMiller plc, parent company of Miller Brewing, completed its acquisition of Royal Grolsch NV and the Grolsch brands. The financial terms of the deal have not been disclosed.

12

BEVERAGE SPECTRUM :: MAY – JUNE 08

Thank you for making us #1.

Youâ&#x20AC;&#x2122;re number one, too. Thanks to our retail partners, distributors and all of America for making FIJI Water the best-selling premium bottled water in the U.S.* Weâ&#x20AC;&#x2122;re proud to be more than just the best-tasting water, but also the top-ranking premium bottled water. Thank you for your partnership and support. FIJIWATER.COM *Source: IRI FDMx 52 Weeks Ending 2/3/08 & IRI Convenience Stores 52 Weeks Ending 12/30/07; Volume and Dollar Sales.

Channel Check

may – june 2008 IMPORT BEER

SPOTLIGHT CATEGORY

Import Beer 52 Weeks ending 5/18/2008 Guess who’s benefiting from that good old on-premise push? Stella Artois, that’s who. Looks like that pretty glassware is starting to rub off in the supermarket aisles. Meanwhile, Corona might have finally peaked, showing declines that might mean it’s no longer considered some kind of exotic product. Either that, or people are just moving to other Mexican beers – take a look at the growth for Tecate, Dos Equis, and Modelo. Arriba!

Meanwhile, over in Holland, that Heineken Light continues to be a growth brand; wonder if the brewers will be able to pick Amstel back up?

Category Total

52 Weeks ending 5/18/2008

$2,005,363,000

2.8%

Corona Extra

$481,857,900

-2.7%

$323,368,600

5.5%

Corona Light

$134,419,600

4.4%

Tecate

$97,887,140

10.5%

Heineken Light

$75,255,690

15.9%

Modelo Especial

$63,173,530

11.9%

Newcastle

$53,649,630

6.7%

Guinness Draught

$51,258,880

3.2%

Labatt Blue

$48,935,680

-2.4%

Becks

$44,758,240

-8.3%

Pacifico

$43,485,540

-0.8%

Stella Artois

$43,065,430

40.2%

Amstel Light

$41,350,930

-8.4%

Fosters

$34,933,830

-4.5%

Labatt Blue Light

$30,769,200

3.8%

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

$4,178,258,000 8.0%

VOLUME

Change vs. year earlier

Heineken

BOTTLED WATER

TOPLINE CATEGORY

Dollar Sales

ENERGY DRINKS $850,453,900 18.4%

BEER

SPORTS DRINKS

$6,078,317,000 2.1%

$1,655,344,000 4.2%

BOTTLED JUICES

TEA/COFFEE

$3,797,773,000 1.6%

$1,453,990,000 8.3%

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

14

BEVERAGE SPECTRUM :: MAY – JUNE 08

CHRISSIE WELLINGTON. RYAN BRAUN. BRANDON ROY. ADRIAN PETERSON. Rookies of the Year. Winners. Dreamers living their dreams. We salute you.

Oh yeah – there’s one more thing they have in common.

Muscle Milk®. Feed your dreams.

©2008, CYTOSPORT, Benicia, CA 94510

www.musclemilk.com

Channel Check

may – june 2008

RTD TEA

Dollar Sales

AriZona

$294,436,500

ENERGY

Dollar Sales

4.2%

Red Bull

$356,786,800

18.1%

$145,283,300

30.1%

Change vs. year earlier

Change vs. year earlier

Lipton

$268,033,400

20.8%

Monster

Snapple

$129,835,300

2.9%

Rockstar

$99,123,140

15.3%

Lipton Brisk

$86,124,500

-2.6%

Full Throttle

$40,192,240

-15.4%

Amp

$31,328,030

19.4%

SoBe No Fear

$20,972,220

-41.0%

Monster XXL

$16,842,810

109.7%

Rockstar Juiced

$12,979,010

108.0%

SoBe Adrenaline Rush

$12,550,000

-29.2%

Java Monster

$12,474,720

230,622.6%

Diet Snapple

$80,853,780

-5.7%

Nestea

$64,315,230

4.9%

Lipton Iced Tea

$39,067,970

-35.9%

Private Label

$37,306,680

14.1%

Lipton Pureleaf

$32,604,110

N/A

Nestea Enviga

$20,468,930

22.9%

52 Weeks through 5/18/08 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

Heading Up: Java Monster

RTD COFFEE/CAPPUCCINO

CONVENIENCE/PET STILL WATER

Heading Up: Enviga

Dollar Sales

Change vs. year earlier

52 Weeks through 5/18/08 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

Dollar Sales

Change vs. year earlier

Private Label

$682,870,000

18.1%

-6.8%

Aquafina

$485,452,400

-7.4%

11.4%

Glaceau Vitaminwater

$448,331,700

94.8%

Dasani

$441,681,300

-3.6%

Poland Spring

$247,425,700

-7.2%

Propel

$191,560,800

-1.6%

Frappuccino

$191,263,100

4.5%

Doubleshot

$25,485,010

Starbucks Iced Coffee

$13,719,550

Bolthouse

$12,565,300

11.2%

Doubleshot Light

$11,056,350

6.9%

Godiva Belgian Blends

$6,812,917

-3.5%

Cinnabon

$2,008,446

283.0%

Arrowhead

$181,252,900

-0.4%

Private Label

$1,982,749

636.5%

Deer Park

$136,373,400

-8.1%

Frappuccino Cappucino

$1,065,882

N/A

Nestle Pure Life

$123,553,900

18.9%

Crystal Geyser

$105,397,400

-2.5%

Starbucks Cappucino

$704,468

77,965.0%

52 Weeks through 5/18/08 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

Heading Up: Glaceau Vitaminwater

SPORTS DRINKS

DOMESTIC BEER

Heading Up: Cinnabon

Gatorade

Dollar Sales

$619,748,500

Change vs. year earlier

52 Weeks through 5/18/08 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

Dollar Sales

Change vs. year earlier

-9.4%

Bud Light

$1,461,529,000

2.8%

$746,253,200

2.6%

$732,539,400

-3.7%

Powerade

$251,720,400

13.0%

Miller Lite

Gatorade Rain

$147,960,300

7.3%

Budweiser

Gatorade Frost

$139,555,300

-3.2%

Coors Light

$675,767,600

6.8%

Gatorade All Stars

$133,991,000

12.7%

Miller Genuine Draft

$157,480,100

-7.8%

Gatorade Fierce

$84,703,610

-10.2%

Budweiser Select

$97,575,460

-17.3%

Gatorade X Factor

$74,136,950

-19.7%

Coors

$67,287,150

8.3%

Gatorade AM

$68,517,990

220.7%

Yuengling Lager

$45,585,460

20.7%

Gatorade G2

$61,956,130

N/A

Bud Ice

$26,080,490

9.5%

Gatorade Tiger

$20,470,940

N/A

Miller Genuine Draft Light

$20,230,740

-8.2%

Heading Up: Gatorade AM

52 Weeks through 5/18/08 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

16

BEVERAGE SPECTRUM :: MAY – JUNE 08

Heading Up:Yuengling Lager

52 Weeks through 5/18/08 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

NEW PRODUCTS BEER Budweiser has launched Bud Light Lime, a crisp light lager beer that combines Bud Light with a splash of 100 percent natural lime flavor. Bud Light Lime contains 4.2 percent alcohol by volume (also available in 3.2 percent ABW) and is available in 12 oz., clear glass bottles, 22 oz. single-serve bottles and 16 oz. aluminum bottles. It is line-priced with other Bud Light products. For more info, visit www.anheuser-busch.com.

Peak Organic Brewing, producers of gourmet, certified organic ales, is collaborating with local farmers and like-minded small businesses to create a delicious Maple Oat Ale. The Maple Oat Ale is brewed with Maine-grown organic oats from granola company GrandyOats and Vermontproduced organic maple syrup from Butternut Mountain Farms in Morrisville, VT. The beer is in support of Chef’s Collaborative a national chef-led organization dedicated to promoting local, sustainable cuisine. This product will be available in Maine and Massachusetts. MSRP $7.99-$8.49. For more information, call Peak Organic at (603) 475-3226.

Beginning May 1st, Point Nude Beach Summer Wheat, a satisfying unfiltered wheat ale, will be available in 12 oz. bottles and kegs wherever Point brands are sold. Point Nude Beach Summer Wheat is a fun, refreshing beer for hot summer afternoons and evenings. With a rich golden color reminiscent of an early summer tan, Point Nude Beach Summer Wheat is brewed with “au naturel” raw white wheat, malted red wheat and highly kilned specialty barley malts. For more information, call (715) 344-9310.

TEA Revolution Tea has launched a new multi-dimensional beverage: Revolution 3D. Revolution 3D is a first-of-its-kind combination of antioxidant-rich ‘super fruits’, multi-vitamins, and premium white tea in an all-natural drink. Revolution Tea is releasing four refreshing 3D flavors: Green Apple, Blueberry, Mango and Pomegranate in sleek 12 oz. cans and four-packs. Each innovative 3D formulation contains 100 percent of the daily recommended value of Vitamin C and is sweetened only with cane sugar and agave syrup. For more infor-

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BEVERAGE SPECTRUM :: MAY – JUNE 08

mation on Revolution 3D and the full line of innovative Revolution products, call (888) 321.4738.

Nestea has restaged its ready-to-drink iced tea product line, with new graphics, sleek straightwall bottles and the introduction of Green Tea Citrus and Diet Green Tea Citrus products with 50 percent more antioxidants than before. The new Green Tea products and packaging are now available nationwide. Nestea is available nationwide in multiple packaging options to meet a variety of customer and marketplace needs. Green Tea Citrus and Diet Green Tea Citrus will be packaged in distinctive straight-wall 20 oz. and halfliter PET bottles, as will Nestea’s Iced Tea with Lemon and Diet Iced Tea with Lemon flavors. Iced Tea with Lemon also comes in aluminum cans and 2-liter PET bottles. NESTEA products are sold in supermarkets, convenience retail, drugstores and other retail stores. For more information, call (404) 676-1070.

The signature eye-catching graphics and brightly colored full shrink label of FUZE’s iconic 18 oz. glass package have been replicated in an all-new 18.5 oz PET bottle. The FUZE PET bottles are the easiest and most common plastics to recycle and are made of polyethylene terephthalate (PETE) and are assigned the number 1. Once the plastic is processed by a recycling facility, PETE can become fiberfill for winter coats, sleeping bags, life jackets, other plastic bottles, etc. All eighteen flavors of FUZE products will be available, including the Slenderize, Refresh, Tea and Vitalize platforms.

The nutritious and newly portable bottles will remain free of aspartame, preservatives and high fructose corn syrup and will be available for an average suggested retail price of $1.79. For more information, call Fuze at (201) 461-6640.

POM Wonderful’s POM Tea is now available in a larger 16 oz. plastic bottle. POM Tea is an all-natural blend of POM Wonderful Pomegranate Juice, premium, whole-leaf, hand-picked tea and POMx, the most potent, antioxidant-rich pomegranate extract available. Due to the gentle brewing process, POM Tea is naturally low in caffeine, averaging only 2 mg per serving, and Pomegranate Orange Blossom Red Tea contains no caffeine at all. POM Tea is available in seven flavors including Pomegranate Tea, Pomegranate Lychee Green Tea, Pomegranate Blackberry Tea, Pomegranate Peach Passion White Tea, Light Pomegranate Wildberry

Developed specifically for kids, Kid FuelTM is fun to drink AND nutritious â&#x20AC;&#x201D; in four great flavors.

PLUS: Kid Fuel

gets noticed on retail shelves with eye catching, innovative, kid-friendly packaging that features 8oz. easy-to-hold, contoured bottles with spill-proof, sip-top caps.

Great margins to drive profits.

TM

For more information and to carry Kid Fuel: Clear Beverage Corporation 8379 W. Sunset Road, #130 Las Vegas, NV 89113 Phone: 866.543.3853 Email: info@kidfuel.com Š2008 Clear Beverage Corp.

White Tea, Light Pomegranate Hibiscus Green Tea and Light Pomegranate Orange Blossom Red Tea. Light POM Teas are sweetened with erythritol and fructose and contain only 35 calories per serving.

POM Tea is available nationwide in the refrigerated section of produce departments next to POM Wonderful Pomegranate Juice. The suggested retail price for POM Tea is $2.99. For more information, call POM Wonderful at (310) 966-5858.

NEW DRINK REVIEWS

SMOOTHIES Naked Juice has introduced a new flavor to its popular Naked Juice Protein Zone line, Banana Chocolate. Like all Naked Juice products, Protein Zone Banana Chocolate has no added sugar or preservatives – ever. Additionally, every 15.2oz bottle of Protein Zone Banana Chocolate contains 30g soy and whey protein, 1 banana, 12 cocoa beans, 87 white grapes, and a hint of coconut. Naked Juice Protein Zone Banana Chocolate will be available in grocery stores nationwide, with a suggested retail price of $3.29. For more information, please contact Naked Juice at (626) 633.8384.

JUICE

Naked Juice Protein Zone CurrantC Function Drinks (new flavors) Hint Water (new flavors) Thomas Kemper Cane Sugar Sodas Atomic Dogg Energy Revolution 3D ! Energy Mana Energy Potion Fizz Ed Whey Up (new flavors) On Go Energy Shot Iyemon Cha Apple and Eve Fruitables LIV Organic Sports Drinks Boozer BAWLS Guarana EXXTRA Faded Energy Maté Fusion Dahlicious Lassi Talking Rain TWIST Organics M13 Functional Juice Kaboom Pomegranate (reformulated) Bain Toniq Infused Owater (new flavor) From April 28, 2008 to press time.

To see reviews, visit www.BevNET.com

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BEVERAGE SPECTRUM :: MAY – JUNE 08

Northland has introduced new Pomegranate Plus, significantly enhancing the proven health benefits of pomegranate juice through the addition of 10 essential vitamins and minerals. Pomegranate Plus is available in Pomegranate Blueberry and Pomegranate Cherry, and sold in 64 oz. bottles. In addition to the high level of antioxidants , Pomegranate Plus has been fortified with Vitamin C, Calcium, Iron, Vitamin B3, Vitamin B5, Vitamin B6, Vitamin B12, Biotin, Magnesium and Zinc – and contain no added sugars or sweeteners. Pomegranate Plus will be available in grocery stores, club stores and health food stores nationwide at a suggested retail price of $3.50-$4.50. For more information about Pomegranate Plus, and complete nutritional information, call (516) 222-0236.

Tropicana Coastal Groves Lemonades are a new premium line of 100 percent natural lemonades with no artificial sweeteners or preservatives. It will be available in three flavors: Original Lemonade, Raspberry Lemonade and Peach Lemonade.

The launch of Tropicana Coastal Groves includes an on-package commitment from Tropicana to partner along with Habitat for Humanity to help rebuild the U.S. coastal regions. All three flavors of Tropicana Coastal Groves Lemonade will be available in 64 oz. Located in the chilled juice case, the suggested retail price is $2.99. This product will also be available in a 12 oz. single serve size with a suggested retail price of $1.79. Consumers can find more product information by visiting www.tropicana.com.

Simply Orange Juice Company has added two new varieties to the successful Simply line: Simply Orange with Mango and Simply Orange with Pine-

apple. Both start with the fresh-squeezed taste of 100 percent not-from-concentrate Simply Orange orange juice, blended with not-from-concentrate mango juice and pineapple juice, respectively.

The new products will begin shipping to retailers in mid-August. Simply Orange with Mango and Simply Orange with Pineapple are packaged in the unique 59 fl. oz. clear Simply carafe. The launch of the new products will be supported with a comprehensive marketing program that includes a multi-media advertising plan, a public relations campaign, consumer promotions and instore sampling. For more information, call (404) 676-1070.

NBI Juiceworks is introducing a new line of highly nutritional, all natural 100% Super Juices called Drenchers.

Drenchers is a new brand with three separate lines: Super Juice (fortified juices), Super Blends (fortified coffee and tea beverages), and Fit N’ Lean – a fortified, Super Juice beverage with less calories than the original Super Juice. The Super Juice and Fit N’ Lean lines are available in 12 oz. and 64 oz. sizes. The pricing for the 12 oz. is $1.99 and for the 64 oz. $4.99. For more information, call NBI Juiceworks at (312) 768-7358.

Apple & Eve, the all-natural fruit juice pioneer, has just launched the company’s first 100 percent fruit and vegetable blend. New Fruitables are a 100 percent juice blend of fruits and vegetables, with each 8 oz. glass delivering 2 servings of fruit and vegetables from the 5-a-Day Fruit and Vegetable program. Each serving also provides the healthy antioxidants A and C. Fruitables are available in two delicious flavors: Orange Passion and Strawberry Mango. Fruitables are available in 46 and 64 oz. bottles, and will be sold in grocery stores, club stores and health food stores nationwide.

They will retail for $2.68 for a 46 oz. bottle at supermarkets and $5.79 for a twin 64 oz. package at club stores. For more information about Fruitables and complete nutritional information, visit www. appleandeve.com.

ALO is a refreshing line of unique drink alternatives made with real aloe vera pulp. All natural, with no preservatives, no artificial colorings, and no artificial flavors, Alo comes in two flavors: ALO Exposed, an original blend infused with real

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BEVERAGE SPECTRUM :: MAY – JUNE 08

aloe vera pulp, and ALO Awaken, a unique blend of aloe vera and real wheat grass extract. ALO is available in a 500mL as well as a 1.5L bottle and is shelf stable, with an SRP of $1.69 - $3.99. For more information call (800) 223-4438.

Noble Juice has three new flavors with a delicious all-natural taste and plant-based PLA packaging - the environmentally friendly alternative to petroleum. The brand new Noble Juice flavors include exotic Sicilian Blood Orange juice, an Italian citrus specialty celebrated for its tart and tangy flavor, and Tangerine Cranberry. The company has also introduced Organic Lemonade, made with 100 percent organic lemons and sweetened with organic cane juice. Noble Juice is available nationwide in Wal-Mart, Publix, A&P, Food Emporium, Stop and Shop, Shop Rite, and Whole Foods, among other large grocery chains and has a MSRP of $3.29 for a 32oz bottle. For more information about the Noble Juice line of superpremium juices, visit www.noblejuice.com.

ENHANCED WATER Old Orchard Brands has introduced a unique entry into the functional beverage category today with FruitSense, the first vitamin water available in multi-serve, 64 oz. bottles. It is available nationwide at SuperTarget stores and at traditional grocery stores with a suggested retail of $3.49 per bottle. FruitSense is available only in large, lightweight plastic bottles typically reserved for the fruit juice aisle of the grocery store, a move that suggests flavored-waters are headed toward traditional “at-home” consumption in what has traditionally been a single-serve “on-the-go” segment. With 5 percent fruit juice, FruitSense is being offered in six flavors, each supporting a distinctive health benefit: Key Lime Colada is enhanced with EGCG to help boost metabolism; Pomegranate, Blueberry, Mangosteen includes Co-enzyme Q10 for heart health; Kiwi Dragonfruit contains ginseng and taurine for natural, caffeinefree energy; Strawberry, Peach, Melon includes hibiscus, vitamin D, and magnesium to combat stress; Tangerine Grapefruit includes zinc and Echinacea for preventative health; and Cranberry, Raspberry is blended with calcium, vitamin D and iron for women’s health. For more information, call Old Orchard at (616) 233-0500.

Skinny Nutritional Corp. has introduced a new line of multi-functional Skinny Waters that de-

© Disney/Pixar ©2008 American Beverage Corp. Verona, PA 800.245.2929 www.ambev.com

TAKE A LOOK AT THE FUTURE OF KIDS’ BEVERAGES

INTRODUCING ICE BOPS

- Shelf stable juice slushie - Available in 4 vitamin rich flavors - Low in sugar - High in antioxidants - Goes conveniently into your freezer then is served as a slushie right out of the pouch!

- Features Disney-Pixar Wall*E

liver a variety of health benefits: weight control, multi-vitamins, antioxidants, and energy boosters-all formulated with zero calories, zero sugar, zero sodium, and zero preservatives. The new line includes four great-tasting flavors: Raspberry Pomegranate (Crave Control) helps control cravings, aids in weight loss, and includes polyphenol-rich pomegranates, one of the most powerful antioxidants. Passionfruit Lemonade (Total-V) is a comprehensive multi-vitamin formula. Goji Fruit Punch (Shape) includes the key ingredient Goji berry, while Peach Mango Mandarin (XXX-Detox) includes three antioxidants: Hesperidine, a citrus bio-flavonoid that strengthens immunity; Lutein, which assists with UV skin protection; and EGCG, a green tea catechin. All Skinny Waters have three key ingredients: Super CitriMax, ChromeMate, and EGCG. Each 16.9-ounce bottle of Skinny Water will be available at a suggested retail price of $1.49. For more information call (610) 228-2138.

Originally created by an Orthopedic Surgeon, in partnership with one of the founders of Celestial Seasonings Herb Teas, Osteo is the first beverage line to specifically target the issue of promoting bone health and increasing awareness for the worldwide epidemic of Osteoporosis. With high levels of Calcium and Vitamin D, as well as B, C - combined with High Sierra Spring Water, natural fruit juices, minerals, magnesium and boron, Osteo is a cutting-edge nutraceutical drink that combines great taste with health awareness. It is available in three pasteurized flavors, Tropical Tisane, OrangePom and Lemonberry. With an MSRP of between $2.29 and $2.49, this product will be available in 12 oz. glass bottles. For more information, please go to Osteobev.com.

Function Drinks has released additional flavors for two of its products, Function: Urban Detox and Function: Light Weight. The new additions to the Function line are a Function: Urban Detox, Goji Berry and Function: Light Weight, Blueberry Raspberry. The company has also launched Function: Night Life, which helps promote sexual health with a proprietary, all-natural formula. These products will be available nationally and will be line-priced with other Function Drinks products at

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BEVERAGE SPECTRUM :: MAY – JUNE 08

$1.69 per 16.9 oz. PET bottle. For more information call Function at (310) 729-5596.

Multi-Vitamin Energy Corp. is back with a new line of seven natural multivitamin enhanced waters rich in electrolytes and antioxidants. The company’s low-calorie line features five flavors: dragonfruit, mango-passion, lemonade, kiwi-strawberry and tropical punch. The company’s zero-carb, zero-calorie drinks come in cranberry-pomegranate-acai and green tea with honey and ginseng flavors. The waters are available in 20 oz. PET bottles at supermarkets, grocery stores, restaurants, convenience outlets and other retailers in the eastern United States, this product has an SRP of $1.39 per bottle. For more information, call Multi-Vitamin Enhanced Water at (201) 303-2903.

CSDs Thomas Kemper Soda Co. has unveiled a new premium soda collection sweetened with natural cane sugar. Craft brewed in small batches, the new Thomas Kemper Cane Sugar Soda collection debuts this May in five favorite flavors, including the brand’s best-selling Root Beer. Unique to Thomas Kemper is the use of pure Northwest honey, which lends a distinct natural sweetness, rich creaminess and smooth finish, complementing other natural ingredients such as Madagascar vanilla and Jamaican ginger. The company is also releasing Vanilla Cream, Orange Cream, Black Cherry and Ginger Ale. The cane sugar sodas will be available at retailers across the U.S. this May in single bottles (SRP $1.29), six-packs (SRP $5.99) and 12-bottle sampler packs (SRP $12.99).

SPIRITS New from Proximo, 1800 Silver Select Tequila is a 100-proof, 100-percent agave tequila. It is the latest addition to the 1800 tequila line. It is doubledistilled and blended with a touch of aged tequila to product a nuanced taste. This product is available in 375 ml, 750 ml and 1 L sizes and is priced at $29.99 for a 750 ml bottle. For more information, call Proximo spirits at (212) 277-7286.

BRANDS IN TRANSITION

SWEET RIDE FOR SWEET LEAF

BY MATT CASEY

ustin, Tex. has gone through some pretty big changes in the past couple of decades.

Riding the wave of the dot-com bubble, it went from laid-back college town to a good-lifeseeking-Yuppie-infested new economy hub. But with the growth of Whole Foods, Hewlett Packard and Hoovers, Inc. attracting MBA-types to the area, it’s gotten pretty tough on the natives.

In fact, despite the benefits that a growing economy offers an urban center, things have gotten so bad for the locals that they introduced a new slogan: Keep Austin Weird.

Similarly, another home-grown Austin enterprise is about to enter the local struggle between character and capitalism: Sweet Leaf Tea. Sweet Leaf might have started out with pillowcases for teabags and water from a garden hose, but lately the only thing the pillowcases have been good for is carrying the company’s cash. Last month, venture capital group Catterton Partners cut Sweet Leaf an $18 million check, and that means the company has reached the same crossroads as Austin. Now that Sweet Leaf founder Clayton Christopher has cashed that check – and used at least a portion of those proceeds to buy out a few early investors – the question is whether the product will be able to keep its down-home sense of fun even as it tries to move into new markets.

SWEETLEAF FOUNDER CLAYTON CHRISTOPHER WITH LONGTIME FRIEND AND BUSINESS PARTNER DAVID SMITH.

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BEVERAGE SPECTRUM :: MAY – JUNE 08

That’s not to say that Sweet Leaf hasn’t been good at opening new markets in the past. For years, the founders would survey new retail arenas and then wiggle into delis and convenience stores. But there’s an imperative that comes with the Catterton money, an imperative to leave the nest of Whole Foods and upper-middle class sandwich joints, and fly into new cities and mainstream supermarkets.

Shoved or not, Christopher says that the new bankroll is unlikely to clash with any hippie sensibilities at Sweet Leaf. The ex-charter boat captain and college dropout has always taken a conservative approach to his business. He kept marketing budgets tight and only moved into new places when the time was right – even going so far as to say “no” to distributors that wanted to carry his product in what he felt were the wrong markets at the wrong times.

Still, if Christopher isn’t necessarily a Texas slacker, there’s a bit of Austin’s Hill Country attitude that helped make Sweet Leaf such a success in the first place. Now Christopher will couple that attitude with a venture capital partner that, he said, brings “more strategic value than just the check.”

“We went with Catterton because they have deep industry experience,” he said. The company has a record of success that includes Kettle Foods, Odwalla, and Gold Coast Beverages Distributors, one of the largest beer and beverage distribution companies in the U.S. Still, the money helps. In addition to buying out some existing shareholders, Christopher said Sweet Leaf will use the windfall to bolster sales and marketing across the U.S., and help the company move into mainstream channels.

As the marketing team swells, they’ll use a lot of the tactics learned in the company’s early days.

Once the company targeted a market, they committed to it. Company personnel spent their weekends at retail locations passing out samples.

Christopher said the only way his brand could work is if people fell in love with it.

Early on, the brand wasn’t without its problems. The kitchen-produced product spoiled in

two weeks, Christopher said, and their bottles were ugly. In 2002, he shut the company down for five months to roll out a shelf stable product. As soon as he did, he said, he landed a deal with his hometown grocery giant, Whole Foods.

Within eight months, Sweet Leaf was the number one selling RTD tea in the natural food giant’s southwest region.

The company’s growth has only continued since then – especially in Austin. Brad Miller, the general manager of the Austin Beverage Company, said he’s carried Sweet Leaf since 2002, when he placed an order for two mixed pallets. Now he moves 65-70 pallets a month to convenience stores, delis and Aramark food services.

Christopher said his company reaps $2 in per capita sales per year in Austin, which he considers the company’s only “mature” market, and a model for exploring new territory.

“We still probably say no more than we say yes to DSD distributors,” Christopher said.

Currently, he has his sights set on Chicago and the Northeast. He also wants to intensify his company’s music tie-ins – another trick that grew out of the company’s Austin origins. The city calls itself “the live music capital of the world,” and Christopher used the area’s music festivals as guerilla sampling and sponsorship opportunities. Now, he said, he wants to sponsor bands. The company received calls from Paramore and Joss Stone – who said they’re fans of the brand – but Christopher can’t say whom he might sign a deal with.

And while most of Sweet Leaf ’s current tactics can be summed up as embellishments of earlier themes, the company recently introduced plastic bottles, a departure from its long-time glass-only model. Miller greeted that change with hesitation.

“There’s an impression – a belief – that good tea only comes in glass,” Miller said. “For years the only tea you bought in plastic was crap.”

But, he said, he understands why Sweet Leaf introduced plastic. Plastic bottles can be sold in more places, like schools, which is one place the product is headed.

(ALF 0AGE "EV 3PEC VERT PDF 0-

Some students in Texas can already buy Sweet Leaf at school, and the company is working on deals with Florida and Colorado. Christopher said Sweet Leaf in schools is a â&#x20AC;&#x153;win-winâ&#x20AC;? for the company. It puts money in the till and builds the productâ&#x20AC;&#x2122;s future customer base â&#x20AC;&#x201C; though Miller isnâ&#x20AC;&#x2122;t certain that heâ&#x20AC;&#x2122;ll be serving those Sweet Leaf converts when they get their own disposable income.

Miller said heâ&#x20AC;&#x2122;s been in the beverage distribution business for a while, and heâ&#x20AC;&#x2122;s seen this pattern before. Cattertonâ&#x20AC;&#x2122;s $18 million investment in Sweet Leaf represents one step on the road blazed by SoBe and Izze from plucky startup to Coke or Pepsi property â&#x20AC;&#x201C; which takes the product out of the independent distribution system. Miller noted that Cokeâ&#x20AC;&#x2122;s Gold Peak RTD tea brand isnâ&#x20AC;&#x2122;t performing as well as it could, and Sweet Leaf would be a fitting replacement.

But it may turn out that nobody sells Sweet Leaf Tea in the near future. The company never filed for federal trade mark protection, and when United American Industries Inc. started selling stevia sweeteners under the Sweet Leaf brand name, they sent Christopherâ&#x20AC;&#x2122;s RTD tea company a cease and desist letter. Sweet Leaf Tea responded by filing a suit against United American, according to the Austin Business Journal. While Sweet Leaf never filed a trademark, they did put ten years and millions of dollars behind building the brand, which, according to Sweet Leaf attorney Craig Tyler, affords the company a common-law trademark claim.

Christopher said the two companies are already talking, but he added that he doesnâ&#x20AC;&#x2122;t think Sweet Leaf losing its name would be a disaster for the company. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve even said â&#x20AC;&#x2DC;Sweet Leaf â&#x20AC;&#x2122; has pigeonholed us a little bit because we have non-sweet flavors and diet flavors,â&#x20AC;? Christopher told the ABJ. Regardless of the companyâ&#x20AC;&#x2122;s name, Sweet Leaf â&#x20AC;&#x2122;s board has a little experience with the startup-to-buyout plan. Christopher recently pulled in Nantucket Nectars founder Tom First. And Christopher isnâ&#x20AC;&#x2122;t saying â&#x20AC;&#x153;noâ&#x20AC;? to the idea of joining one of the countryâ&#x20AC;&#x2122;s beverage empires. â&#x20AC;&#x153;Four to five years from now, we could have the option to bring in a larger investor,â&#x20AC;? he said. He added that he liked the deal that Honest Tea brokered with Coke.

Honest sold a 40 percent stake in the company to the soda giant, but the deal left co-founders Seth Goldman and Barry Nalebuff and longtime advisor Gary Hirshfeld in control of the companyâ&#x20AC;&#x2122;s five-member board.

But the future is far from certain, and, at the moment, Christopher said heâ&#x20AC;&#x2122;s currently having fun with his business. â&#x20AC;&#x153;We have a board that is very much in agreement around the strategy weâ&#x20AC;&#x2122;re going to use to grow the brand,â&#x20AC;? he said. â&#x20AC;&#x153;Life is good.â&#x20AC;? #

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the energy drink explosion rolls into its second decade, the game is changing and the stakes are higher. It’s true that the products are only about a generation old in the U.S., but what a generation it has been: for many consumers, the products have moved from edgy curiosity to lifestyle necessity. Nevertheless, there are still plenty of people wondering what Red Bull or Monster taste like, or trying to determine the difference between Gatorade and Rockstar.

So in many respects, energy drinks are at a crossroads: do they become as ubiquitous, the CSD’s of their day, as some expect, or do they remain an item that fills the functional niche – albeit a large one – that lies between coffee and Diet Coke?

With the category’s estimated $4.8 billion in sales at stake, it’s a big question, and the answer isn’t likely to arrive right away. But there are some ongoing issues whose resolution will likely affect the way retailers and distributors treat energy drinks by the end of the next generation, ten years hence.

1

How many hybrid products will the category accept?

Perhaps the largest limiting factor for energy drinks has been their taste, and while that particular aspect has come a long way, an ongoing solution for many brands has been to try to dissolve the flavor into a variety of more common beverage types, including juice, coffee, cola, tea, even beer. But with that expansion – and increased focus on injecting energy into beverages that cover more parts of the day – comes dilution. As a retailer, can you depend on the increase in variety to continue to expand your sales, particularly as the new varieties put pressure on your limited space?

The dependability issue is becoming a big one, at least with regard to coffee blends. Recently, Hansen’s made it clear that JavaMonster, while a fast-growing brand – almost 14 percent of its energy drink sales, according to the company – doesn’t have the high profit margin of its other offerings. And that’s where Monster’s/Hansen’s dual identity as successful energy drink company and stock market darling start to battle it out, because much of the charm that has elevated its share price has come from the category’s high profit margins. So while your JavaMonster allocation might be rising for now, that might be a short-term event – particularly with other companies pushing more strongly into the coffee market, and Starbucks hopping into the energy space, both with its own RTD products and with a guarana booster for its on-premise drinks.

Meanwhile, Rockstar Roasted has been a successful introduction for the other major independent brand, but with Coke developing a strong brand internally – note the skyrocketing success of NOS – there is always the possibility that it might opt out of its deal with the California-based

enfant terrible, or at least try to shift shelf space to maximize growing its own products, costing Rockstar space for brand extensions.

In addition to core brands, the “juiced” energy category has been growing for the past few years – both Monster and Rockstar’s blends have become top sellers. But a question retailers should ask themselves is whether they want to rely on their most successful brands and their line extensions or continue to shuffle through other offshoots to see if something catches fire. With so much variety out there, it might be worthwhile to see if your customers are looking for something nontraditional, and perhaps by another manufacturer.

Some retailers are starting to address the issue by dividing their drinks up by functionality; this will be especially important as more functions start to cross over into the energy drink sector. It’s already happening with sports drinks.

2

Poor taste and poor judgment: Will crassness and caffeine get them banned? And will there be backlash in your store?

Recently, South Bend, Ind. convenience store owner Candy Gioupis put up a hand-lettered sign telling kids under 18 that her QuikMart would only sell two energy drinks at a time. Last year, the American Beverage Association began looking into caffeine labeling issues. Just this spring, the owner of Redline donated $25,000 to a Florida school district after four eighth-graders became sick after consuming his product.

That kind of self-policing comes at a time when energy drinks are receiving increased media and government scrutiny. Several states are looking at banning or restricting sales of energy drinks to minors. The FDA is considering taking a hard look at caffeine.

And stories about caffeine and energy drink concerns are now a regular part of any TV reporter’s playbook come sweeps week.

Meanwhile, the crass are getting crasser, as Cocaine begets Blow begets Bump and Hooters begets Deep Throat. And the alcohol tie-ins don’t help in that respect – too many potentially scary questions are being thrown at the energy malternatives as well as at the use of energy drinks as mixers. On-premise, energy drinks have grown almost exclusively in bars; that does not translate readily to the family fridge.

As of this writing, NBC’s Today Show had aired a segment called ‘The Truth about Energy Drinks,’ while the Sacramento Bee had published a report on convenience store owners limiting sales to minors. Arguments that energy drinks are the equivalent of Starbucks coffee only seem to take the industry so far in the eyes of the public. Marketing tactics may change in the future, but the wild side presented by many energy drink companies, while continuing to bring on consumers in the short term, in the long term could collapse under the weight of one negative event too many.

MAY – JUNE 08 :: BEVERAGE SPECTRUM

29

For retailers, the issue becomes the image of the drinks they sell, their willingness to work with local communities with regard to merchandising and sales to minors, and knowledge of their customers.

3

Here comes the competition – What effect will energy shots, hyped-up diet colas, yerba mate, and even energy cookies and chips have on the category?

Energy isn’t just for energy drinks anymore.

As the veil lifts on the main source of energy drinks’ energy – pure, unadulterated, caffeine – what was an aura of mystery is now counted in milligrams. And those milligrams are appearing in all kinds of new iterations.

Beverage Spectrum has been out front on the growth of energy shots as a high-profit phenomenon – one that energy drink companies themselves have started to invest in – but the stubby capsules aren’t the only product class making a grab for a piece of the energy pie. At a recent natural products convention, booth workers for vitamin maker Yummi Bears were passing out adult versions of their products that were loaded with caffeine and guarana. There are energy beans, energy lollipops and other candies – some are made by energy drink companies themselves, like Bawls – and now even energy potato chips. Caffeinated vodka is creeping onto the market, negating the need for Red Bull as a mixer (and a good thing for bartenders, too, given that company’s willingness to go for the wallet if you happen to pour an off-brand).

“The consumer continues to look for quick additives,” said George Pontiakos, CEO of BI Nutraceuticals. “We saw a guy put it into gum! And we’re seeing a lot more movement into the beverage alcohol segment.”

Additionally, the soda makers have figured out that their consumers know what caffeine is all about, as well, adding pumped-up variants like Diet Pepsi Max. Rather than bill new offerings as energy drinks, new products like Energy Green from Honest Tea and the Naked Juice Energy Smoothie are simply appropriating the energy aura and applying it to their own categories. If energy is isolated as a routine functionality across a broad variety of food and beverage products, doesn’t that expose the CSDlike flank of the energy drink category?

4

Whither the Third Brand?

For years, energy drinks were like the hydra – one company went out of business and two more grew to replace them. But that made for a pretty crowded collection of critters. Now, with a couple of dominant independie brands running the show, the big CSD companies still haven’t been able to figure out how to win the game – or even stay in it for a long period of time. Witness the up-and-down stories of Amp, SoBe, Full Throttle, KMX. Each time, the big soda companies have used their distribution network to build up a head of steam, but they have continued to see consumer sentiment return to the indie brand.

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In fact, NOS, Coke’s latest, bestest new hope for a homegrown energy brand, started as an indie all its own. And while that brand has taken off in a big way, its core gearhead user is still too small a subculture for the product to become a genre spanner. NOS has been brilliantly executed to capture as much of its niche as possible, but it will be hard for it to move too far out of its core competency.

So where does that leave retailers who need leverage on their side in the face of an increasingly stultified set of distributors for Monster (i.e.

Anheuser-Busch) and Red Bull (still catching hell from its own sales force after raising its case prices)? Growing regional brands like BooKoo and Xyience have run into major trouble as they try to reach national status. Rip It remains bargain sized, while other major niche marketing efforts like TaB and SoBe Essential Energy have flopped. Here’s where, for retailers, knowledge of the growing field of natural and organic brands makes sense, where a Steaz or a Sambazon might be an appealing alternative, as they all have a solid but small base. Still, even those little guys can disappear in a second – has anyone seen Syzmo on shelves lately?

The category remains young enough that the cacophony of different labels is probably still fun for consumers, but with share settling into a pair of camps, there is still money to be made for retailers through the discovery of a Mountain Dew to provide an alternative to the Coke and Pepsi of Red Bull and Monster. By having that extra outlet, they can keep their costs in check.

5

Speaking of keeping costs in check, what about the economy?

The high margin bonanza that drove the energy category is shrinking for distributors and for retailers as raw materials and fuel costs go up. Similarly, it’s hitting consumers right in the wallet, as prices at the pump have long been the enemy of trips inside the convenience mart. Sooner or later, the high cost of the energy drink is going to have to go down, particularly as consumers start to notice they can now hit both Starbucks and McDonald’s for a $.99 high-end coffee.

But at the same time competition for consumers starts to force the price down, supply costs are going up: gas, sugar, corn syrup, fuel, aluminum for cans are all getting more costly, and so is one other important ingredient, energy drinks’ miracle caffeine source, the guarana seed. Demand for the product has increased – aided by the increase in other energy based products. International trade is also playing a role: the Brazilian Real is performing exceedingly well against the U.S. Dollar.

“Demand is stripping away supply,” notes Pontiakos. “I’m killing myself to get it in here before the dollar drops again.”

Energy drinks have come so far, so fast, that it’s hard to believe they were ever consigned to a small part of the evening and a small group of athletes.

What’s truly amazing is that they’ve had as significant a cultural impact as they have a financial one. Still, while ten years is a short time in the development of a major brand, it’s a long, long time to forecast. In ten years, the questions we’re looking at now will have a brand new spin: either they’ll be small squalls preceding a decade-long storm of profits, or the last few clouds that arrive before a whole new weather system moves in.

BRAND NEWS

ENERGY DRINKS

BAWLS BAWLS Guarana has launched an addition to their product lineup – BAWLS Guarana EXXTRA. Packing 50 percent extra caffeine than the original BAWLS Guarana flavor, sugar-free BAWLS EXXTRA offers a powerful boost with a refreshing, guarana-infused taste. Because EXXTRA is made with more guarana than the rest of the BAWLS product line, BAWLS EXXTRA hits the caffeine level of a strong cup of brewed coffee – 96 mg per 10 oz. serving and 150 mg. per 16 oz. serving. Offered in 10 oz. bumped glass bottles and in 16 oz. color-changing cans, BAWLS EXXTRA is now available in stores nationwide.

BAWLS EXXTRA will also be integrated into the brand’s 2008 sampling initiatives, including a nationwide tour of BAWLS-sponsored video game conventions, BMX races and pro paintball tournaments.

Sambazon Sambazon has created a potent, all-natural energy drink that heightens awareness while boosting energy and the immune system. Amazon Energy is made with Açaí, the powerfully nutritious purple berry sustainably harvested from the Amazon basin, along with Vitamin-C superfruit acerola and rainforest botanicals like guaraná and yerba mate. Formulated with the finest organic ingredients, Amazon Energy delivers nutrition, sustained energy and great taste without tons of refined sugars, artificial colors, chemicals and negative side effects. Amazon Energy is now available in Whole Foods and other fine retailers nationwide.

Bionic Boink Starting in Arizona, Boink has taken off at local restaurants, bars, and clubs as a healthy alternative to energy.

Boink stands out amongst the rest offering a product without sugar, calories, and fat and only the best natural herbs for energy. Boink’s Cayenne Pepper formula produces a long lasting amount of energy without the use of synthetic caffeine.

Volcano Volcano energy drink, is a new non-carbonated energy drink with high caffeine and taurine content plus vitamin B-complex, vitamin C and vitamin E as well as Zinc.

Those high quality ingredients are intended to relieve fatique, boost metabolism and improve physical performance and the reproductive system for men. It is available in original and sugar-free

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Fluid Motion Beverage Inc. Fluid Motion Beverage Inc. recently won the 2008 Graphic Design USA Packaging Award for the outstanding graphic design on the Talon Blood Punch line extension launched last year. The Talon line is also breaking out of its current US boundaries, debuting in Canadian C-Stores in May.

PepsiCo In March, AMP Energy launched three new line extensions - AMP Energy Elevate, AMP Energy Relaunch and AMP Energy Traction. New limited edition Dale Earnhardt Jr. AMP Energy products will be available this summer. AMP ENERGY RELAUNCH is energized with a burst of orange citrus flavor, Electrolytes and Bvitamins. AMP ENERGY TRACTION is enhanced with grape flavor, Maltodextrin and D-ribose. AMP ENERGY ELEVATE features a blast of mixed berry flavor and LTheanine. All three line extensions are available nationwide in 16 oz. single-serve cans. AMP Energy Relaunch is also available in 16 oz. 4-packs.

Marquis Platinum LUX5 EVENTS, a Newport Beach-based event company, launched their 2008 Nationwide DEEP FLIGHT LUX5 Luxury Lifestyle Tour Presented By Marquis Platinum Vitality Drink on Saturday, May 10th at Santa Monica’s celebrated Barker Hangar. The product has also recently arranged an exclusive distribution deal with DEAN & DELUCA for all locations nationwide. Marquis Platinum Vitality Drink was also chosen by the newly renovated Plaza Hotel in NYC to be the exclusive energy type drink for the entire property.

Hansen’s This summer, Monster Energy is blowing up the Vans Warped Tour with Monster’s biggest promotion ever.

Monster partnered with over 25 Warped Tour bands to give fans an exclusive album download for free with every specially-marked Monster 4-pack and 8-pack purchase. Monster has been a huge part of Warped Tour since Monster’s launch in ’02 by activating the Monster Energy VIP Lounge at nearly 50 events throughout the US and Canada.

Zafi Beverages Zafi Beverages, Inc. is an energy mixer that is also a standalone energy drink. It is packaged in an 11 oz., doublelined PET bottle, and it is non-carbonated, with a tag-line

GIVE CONSUMERS THE HORSEPOWER THEY DEMAND

INTRODUCING NOS POWERSHOT!

• NOS brings a real energy drink brand to the $100 Million Energy Shot category* • Same mango passionfruit flavor profile as NOS Energy Drink • Available May 1 through your local Coke bottler *Source: All Measured Channels AC Nielsen 12 months ending 12.29.07, Estimated Energy Shot Retail Sales Dollars All Measured Channels Full Year 2007 (in 000’s)

NOS 22oz – TRUE RESEALABILITY! BIG PROFITS! • Hottest package in the energy drink category!

• +5083% growth vs YAG* • 2nd in Velocity in the larger than 16oz category* • Unique packaging targets other brands’ high frequency consumers • No cannibalization effect • Higher levels of availability of 22oz enhances the velocity of NOS 16oz *Source: Total US, ACNielsen, Nov 2007 Conv Rtl Channel

that reads, ‘Sip It. Cap It. Blend It.’ Zafi can be blended into a multitude of products creating a wide range of energized drinks.

HYDRIVE HYDRIVE Energy LLC has expanded its line of energy drinks with the launch of HYDRIVE S – Strength Energy Drink in a blue raspberry flavor. Inspired by the recent Senate hearings, HYDRIVE S contains six fully legal performance enhancers including B-12, Caffeine, Maca, D-Ribose, L-Leucine and Ginkgo Biloba. HYDRIVE S joins, E, X, and V in a colorful, great tasting line-up that delivers full power energy with just 30 calories and 6 grams of sugar per 15.5 oz. re-sealable PET bottle while delivering no jitters and no crash.

Pimp Juice Fillmore Street Brewery is proud to announce that its owner and spokesperson, Nelly, will be launching his next album, Brass Knuckles, on June 24, 2008. In conjunction with this album launch, Nelly will be promoting Pimp Juice and the new anti-oxidant/energy hybrid drink Purple Pimp Juice on his tour across the United States. The Pimp Juice RV will also be joining the tour to give out samples to all of the Nelly and Pimp Juice fans as well as promote Pimp Juice at the Nelly concert afterparties. Pimp Juice will be introduced into India, Nigeria, and Sweden this summer, will gain further distribution into FYE stores in malls across the United States along with Nelly’s album launch, and will play a prominent role in his international tour in late 2008/ early 2009.

Steaz Steaz Energy is the world’s first and only Organic and Fair Trade Certified energy drink in four delicious varieties: Berry, Lime, Orange and Diet Berry. Unlike most other energy drinks on the market, Steaz Energy is completely food-based. The natural boost in Steaz Energy comes from four quality ingredients: organic Fair Trade Certified Ceylon green tea from Sri Lanka, organic Guayaki yerba mate, organic Sambazon Acai, and organic Guarana. The drinks come in a new 12 oz. sleek can so consumers get more healthy benefits – more antioxidants, more vitamins and more green tea polyphenols in every can. Steaz Sparkling Green Teas are sold in the US in over 7,000 retail accounts – including natural, specialty, gourmet grocer and club stores – in 40 states and is also available in the food service and military channels. As well, Steaz is sold internationally in Canada, Australia, Mexico, India, Singapore and the Middle East.

CL-ONE CL-ONE ENERGY DRINK For Smarter People is now in its 6th year. CL-ONE is available in 8.3oz and 16

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oz. and is recommended by its manufacturer as a value proposition for retailers. CL-ONE energy drink is an energizer, with a modern synergistic formulation for periods of extra demand on body and mind. Drink CL-ONE at sports, exams or as a general pick-me-up during your busy day or night.

Power Trip Beverages Power Trip Beverages’ four vitamin-packed energy drinks (Original Blue, THE Extreme, PT “0” and Mango) are now available at 300 Piggly Wiggly stores in Alabama, 71 Tops Supermarkets in NY and many other retail outlets in 15 U.S. states, including New York, Florida and California, as well as internationally throughout the Caribbean and the Middle East. By the end of this year, the company projects that its reach will span 25 states and additional international markets. To help fuel further expansion while encouraging consumers to “Get in the Game,” Power Trip has redesigned its Web site to feature interactive elements including streaming audio, video, giveaway contests and an online store.

Havoc Energy American Enterprise Development Corporation and HAVOC Distribution, Inc. announced recently that it will begin distribution of Red Bird Energy Drink, an official collegiate licensed energy drink for the University of Louisville. The University of Louisville Energy Drink will be powered by HAVOC and will be sold in 8.4 oz, 16 oz. and 4-Pack quantities. River City Distribution, Inc. and AXTON Candy & Tobacco Co. will be distributing the product to Kroger, Thornton’s and various other retail outlets in the Kentucky market.

BURN Energy BURN Energy Drink, on the market since 2002, has just partnered with Meridian Beverages to expand its distribution alongside Meridian’s products in the Southeast and Midwest. BURN offers 25 percent more caffeine than leading competitors, refreshing citrus taste and healthy ingredients in an award-winning package. Sugar-Free BURN offers the only energy drink that helps boost metabolism with a combination of EGCG (Green Tea Extract), Calcium and Caffeine while offering all the energy and vitamins with NO sugar and extremely low sodium.

Xstream Energy Lightyear XSTREAM Energy contains Yohimbe, which has been one of the most popular supplements for men and women for years and is claimed as an aphrodisiac.

Now with a natural sexual enhancer used for impotent males, XSTREAM Energy is an all natural, non-carbonated and fruit-juice-based energy drink.

Anheuser-Busch 180 Orange Citrus is refreshing, lightly carbonated and has an orange-citrus flavor. It contains vitamins B-6, B-12 and C, natural citrus flavors and is enhanced with natural guarana. 180 Sugar-Free Orange Citrus Blast, an extension of 180 Orange Citrus, contains only five calories, appeals to adults who prefer sugar-free products and energizes your body and mind without sugar. 180 Blue has a refreshing berry and grape flavor that includes the Acai berry – an antioxidant rich berry that grows wild in the Brazilian Amazon and is considered to be one of the top superfoods in the world. The first packaged energy drink launched by a major beverage company in the United States that contains the Acai berry, 180 Blue won a gold medal at the 2007 North American Beer Awards. 180 Blue Low-Calorie, an extension of the popular 180 Blue, contains only 15 calories. 180 Red With Goji has a uniquely refreshing and slightly sweet lychee and cherry taste balanced with subtle tartness. The first packaged energy drink containing the Goji berry launched by a major beverage company in the United States, 180 Red won a silver medal at the 2007 North American Beer Awards.

Playboy Energy Drink Playboy Energy Drink is ultra-sexy and incredibly invigorating with subtle notes of fruit and vanilla, this proprietary formula contains ginseng root, guarana extract and damiana leaf, ingredients that are believed to stimulate energy levels. Available in two varieties, regular and sugar-free, Playboy Energy is now available in Boston and Florida. Playboy Energy Drink is packaged in an 8.4 oz. black can, made distinctive by the famous Playboy Rabbit Head design and colors denoting regular (glowing orange) or sugar-free (glowing blue).

M-150 RESPECT, M-150 Energy Drink’s philanthropic community support program rolled into Woodland Hills, California on Sunday, April 27th to support LAPD SWAT, local and federal law enforcement agencies in honoring fallen SWAT member, Roland Simmons. Chilled M-150 Energy Drinks were served to over 7,000 residents and celebrities in attendance who raised over $450,000 for Simmons’s widow and children.

NE

W!

Power Trip Beverages is proud to introduce to its distributor and wholesale partners: · GREAT TASTE, more vitamins and NO SUGAR means NO CRASH · Contains a higher vitamin content than all its competitors · HOURS of healthier energy · Energy shots are the fastest growing segment of the New Age Beverage category · No refrigeration needed and requires only 26 square inches of shelf space

www.powertripbev.com CONTACT US TODAY FOR MORE INFORMATION ABOUT “VITAMIN ENERGY SHOTS”

Phone 954-862-1445, Fax 954-862-1484 sales@powertripbev.com

SALES AND DISTRIBUTION: Power Trip Beverages, Inc., 12401 Orange Drive, Suite 205, Davie, FL 33330

Wet Planet Jolt has become the best name in the consumable energy business. With a seven-flavor roster of Energy Drinks, a 2 oz. Endurance Shot, energy gum and mints - with more on the way, Jolt continues to jolt the industry. Jolt Energy was the first to utilize resealable technology on their eyecatching 23.5 oz. aluminum bottle. The resealable cap is user-friendly and allows hours of carbonated energy. Over

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the past year Wet Planet Beverages has introduced 3 new Jolt Energy Flavors: Orange Blast, Wild Grape and Passion Fruit.

G Pure G Pure Energy is “Energy Redesigned”- a healthier, more sophisticated choice for the discerning consumer, delivering sustainable energy with truly effervescent fresh lulo lime taste. G Pure Energy is available in a recyclable glass bottle.

Cult Cult launched its Cult Energy Cola in Denmark earlier this spring.

Redux Beverages Brawndo On April 1st, 2008, Redux Beverages signed a multiyear agreement with Motocross legend Ryan Clark and Team Solitaire. The sponsorship positions Brawndo: The Thirst Mutilator as the team’s headlining sponsor with the official title Redux Beverages/Brawndo Team Solitaire Honda. Brawndo: The Thirst Mutilator is currently available in selected retailers throughout the Northeast and South with new distribution channels opening in Southern California, Oregon, and Washington in May. Rockstar Rockstar energy drink continues to experience robust growth nearly three years into its partnership with the Coke system. Over the past year the brand has been able to gain significant space, share, and volume with key national customers like CVS and Walmart as well as expand internationally in countries like Canada and the U.K. Growth and penetration into nontraditional channels such as specialty retail/colleges/ski resorts has also been a key focus. Several new products are in the works. Building on the successful launch of Rockstar Roasted, multi packs of this line are set to rollout nationally this summer.

The Rockstar marketing team continues to keep the brand new and fresh through its nationally recognized sponsorship of the Suzuki Supercross team, Golden Boy Boxing matches, NHRA racing team, and the Rockstar Taste of Chaos concert tour.

Acute Fruit Introduced in 2008, Acute Fruit, NTrinsic and CoMotion represent a new line of energy brands based on the trio of energy, antioxidants and adaptogens. This new category of drinks in addition to providing energy, promotes health, wellness, and stress relief. The end result is complete and well-balanced energy. These three brands are also certified CarbonFree and thanks to a partnership with Carbonfund.org the carbon footprint associated with their production and distribution will be offset. Acute Fruit is

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a 100 percent fruit juice energy drink, non-carbonated, with no added sugar or preservatives and all natural flavors. Available in Orange Passion Fruit flavor. NTrinsic is all-natural with antioxidants and no preservatives. A sugar free, zero calorie version is also available. It comes in Black Pomegranate flavor. CoMotion is a double concentration energy drink for a stronger and longer-lasting boost, available in Dragon Fruit flavor.

Guru GURU, a line of 100 percent Natural and Certified USDA Organic Energy Drinks, is now available in a 12 oz. slim can and introduces two new flavors: GURU Full On Lemonade and GURU Juicy Superfruit. The newly redesigned GURU can contains more energy than the original 8.3 oz. size and is less filling than the 16 oz.

Catering to busy, active people’s needs, the new set of six GURU products is 100 percent natural and contains an active botanical complex made of standardized herbal extracts - Guarana, Ginseng, Ginkgo Biloba and Echinacea, following the same original proprietary formula that maximizes their beneficial effects.

Spike Shooter

SPIKE, the hardcore energy brand, now features three flavors (Original, ‘Quila Lime, and Orange Gold) of SPIKE Shotgun (16 oz.) and SPIKE Shooter (8.4 oz), as well as the recently launched SPIKE Shot (4.2 oz). Shot and Shotgun feature a new formulation that delivers maximum hardcore energy without the jitters. SPIKE is nationally distributed in top c-store outlets through McLane and CoreMark and is also available in specialty retail stores such as GNC and Vitamin Shoppe. Delivering a premium price point and high profit margin, SPIKE is supported by the best “street team” in the business—SPIKE Special Ops. B12 Beverages After years of research and development, B12 Beverages is proud to introduce LIFE into the marketplace. Life’s energy blend has a combination of vitamins and natural, exotic herbs, including the new “Super Root” MACA, to give consumers high-quality energy quickly yet with the staying power to keep them energized for hours with NO CRASH, and NO BURN. What is MACA? Maca is grown in a very small section of the Andes, planted and harvested by hand. Its healing power and benefits have been known by the Inca for over 2000 years. Maca is high in calcium and works with the body to enhance the immune system, nourish the body with minerals and vitamins and enhance libido as a natural aphrodisiac.

Xtreme Shock Xtreme Shock is now available in a 16 oz can. The first and only “energy sensation” drink is serviced through a

multi-faceted network of distributors, such as: health and fitness DSDs to beer and beverage distributors. The 16 oz. can is available in three flavors – Fruit Punch, Grape and Blue Raspberry.

Liquid Lightning Liquid Lightning will be unveiling a new formula and brand-new look for release late spring. The new formula will feature a combination of Ribose, Taurine, Ginseng, Niacin, Vitamin B and Vitamin C to maximize its energizing benefits. Liquid Lightning’s focus has always been on product quality, strong support of local distributors, and nurturing relationships for the long-term growth of the product. Liquid Lightning is available in regular and sugar free in both 8.4 oz. and 16 oz. cans. Look for Liquid Lightning at Shop Rite, Drug Fair/Cost Cutters, Foodtown, Pathmark, Amazon.com and in vending machines.

Frank’s Frank’s is a sizzling new energy drink that is taking America by storm. The invigorating drink contains a number of vitamins and premium ingredients designed to improve physical performance and mental alertness. Pasteurized to preserve freshness, Frank’s comes in four varieties and delicious flavors: Original, Sugar Free, Lime and Pineapple.

The energy drink is available in a slim 8.4 oz. can and a jumbo 16 oz. can. Frank’s is the Official Energy Drink of the Indy 500.

SOMEWHERE SOMEWHERE BETWEEN BETWEEN VITAMIN VITAMIN WATERS WATERS AND AND ENERGY ENERGY DRINKS DRINKS LIES LIES A A BRAVE BRAVE NEW NEW WORLD. WORLD. A A WORLD WORLD WHERE WHERE ENERGY ENERGY COMES COMES FROM FROM VITAMINS VITAMINS AND AND NOT NOT FROM FROM CONTROVERSIAL CONTROVERSIAL CHEMICALS. CHEMICALS. A A WORLD WORLD WHERE WHERE FANTASTIC FANTASTIC TASTE TASTE AND AND MILD MILD CARBONATION CARBONATION ARE ARE PERFECTLY PERFECTLY COMBINED COMBINED TO TO CREATE CREATE THE ULTIMATE TASTY BEVERAGE THE ULTIMATE TASTY BEVERAGE AND AND THE THE BEST BEST MIXER. MIXER. A A WORLD WORLD WITHOUT WITHOUT CRASH! CRASH! A A WORLD WORLD WITHOUT WITHOUT BURN! BURN!

Roaring Lion Roaring Lion’s 12 oz. can is rapidly becoming its flagship SKU, as it has crossed over from the bar and nightclub world to availability for purchase the product at gas stations and mini marts. Due to strong on-premise demand, Roaring Lion’s first foray into the ready to drink market was with the Resealable 500 ml PET bottle.

Fixx FIXX Extreme is the first extention of the new Extreme product line, which is “designed to push the limits of energy like never before.”

Hype Energy A significant milestone in its international expansion, Hype Energy has entered into an exciting agreement with French distribution giant Orangina Schweppes. Via the new arrangement, effective March 2008, products from the Hype family will reach a wide network of outlets across France. Other significant news from the company is the launch of a new branded can featuring NHL star Alexander Ovechkin available in Canada from the start of 2008.

TM

the FIRST vitamin soft drink

TM

© 2008 B12 Beverages, LLC info@b12bev.com - 561·737·8533 MAY – JUNE 08 :: BEVERAGE SPECTRUM

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Rhino Rhino Energy Drink provides exquisite taste with an outstanding quality product formulation exclusively using natural Austrian spring water. Rhino is currently the lead sponsor of John Carter’s 2008 NASCAR team and had a prominent presence at the 2008 X-GAMES’ Snowcross finals and official team sponsor of the WPSA’s Snowcross series nationwide. Rhino’s is now the exclusive energy drink of Mandalay Bay and MGM Grand casinos’ service and pool bars. Rhino has also recently been enlisted for distribution by Coca-Cola in select markets. Rhino’s currently has prominent distribution in PA, OH, MD, DE, KY, WV, and Washington D.C. and is launching in VA, TN, NC, and SC throughout May and June. In addition to Rhino’s 8.3 oz regular and sugar-free cans and 1.5L Pet bottles, Rhino is now available in 16oz cans and 2.6g Bag-in-a-Box. National Beverage National Beverage’s Rip It’s newest flavor is A’Tomic Pom Sugarfree. Rip It combines deliciously crisp pomegranate flavor with an extra energy burst and zero calories. It’s the ultimate sugar-free energy drink with a refreshing pomegranate punch.

Dark Dog Dark Dog has launched a brand new Dark Dog Light.

Dark Dog Light differentiates its can from other energy drinks by its eye-catching colour magenta.

Crazy Horse Crazy Horse Energy Drink claims to be so aggressively priced that consumers save nearly half their initial investment just for trying Crazy Horse Energy Drink.

Cuba Energy Juice A 100 percent natural energy juice containing no artificial sugars or preservatives, CUBA herbal energy juice hit South Florida this spring. The product comes in three flavors, Pomegranate/Cranberry, Wild Berry and Passionfruit/Orange.

Potencia DLR Associates Inc and Potencia USA are proud to have made it through year one with better-than-expectations results. Potencia Energy Drink is now bi-coastal and continues to grow nationwide. With several trips south of the border done and resumes being considered Potencia Mex S.R.L. is gearing up for a southern assault into Mexico in 2008. Potencia is also producing its next flavor, Mandarin, in the coming months.

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Rage Beverages RAGE Beverages of Canada is now the official energy beverage of the TKO, one of the world’s leaders in MMA Boxing. RAGE has announced placement through Fas Mart/Shore Stop and Royal Farms. Distribution for all 202 Fas Mart/Shore Stop locations is being done through an independent Otto Distribution, along with distribution in close to 50 7-Eleven locations in Maryland and Delaware.

Ardea Beverage Company The creators of Nutrisoda launched their beverages in clear, 12 oz. glass bottles. All Nutrisodas, including Energize, have a unique wellness benefit and feature lightly sparkling, crisp, natural fruit flavors. The bottles have been shipped to the following markets for distribution: Midwest/Great Lakes region, Dayton, Ohio, Chicago, Portland, St. Louis, Florida, Kansas City, San Diego, Indianapolis, Seattle, and Cincinnati.

Crunk!!!

CRUNK!!! Energy Drink will be expanding its product portfolio this June by launching a new lemon-lime citrus flavor. CRUNK!!! Citrus will have new packaging as well, boasting a yellow and green can. Since January 2008, CRUNK!!! has added five new markets to their distribution – Los Angeles, North Carolina, Missouri, Oklahoma, and Tennessee – and the expansion will continue this summer.

V&V V&V Energy, the sparkling fruit beverage with a kick, has new packaging and is now available as a 100 percent allnatural product. V&V is currently offering two new flavors, Pomegranate Blueberry and Orange Clementine and is still available in Mixed Berry and Citrus Twist. V&V is made with cane sugar and packaged in glass, giving V&V the aura of a true gourmet beverage with energy drink properties.

Xyience Xenergy, a premium energy drink from Xyience, is a zero calorie sugar-free energy drink. Xyience is pleased to announce a renewed partnership with the UFC (Ultimate Fighting Championship). As the Official Energy drink of the fastest growing sport in the world, Xyience is able to leverage it’s exposure within key demographic markets to increase sales and distribution.

the

izard ing does coffee by matt casey

T

he Lizard King is back in the arena, but he’s backstage, not front and center. That’s where he says he wants to be, though. He’s through with the song and dance routine, he insists. He’s not a brand manager, and he’s not the entrepreneur either.

The Lizard King – John Bello, in his former role with SoBe, where the rallying cry was “Drain the Lizard” – is an investor now, a power broker, a guy who spots potential, feeds and nurtures it, and then rides it to a payday. Whereas it was once about flipping cases for him, now it’s about flipping companies.

At least, that’s his position, and in some ways, he’s right. After all, it was just two years ago that Bello parlayed a $6 million investment in IZZE sparkling juices into a $75 million sale to PepsiCo, the same company to which he more famously sold his own creation, SoBe Beverages for a cool $337 million back in 2001.

But Bello the salesman is still in full effect, even when he’s selling Bello the investor. There’s been some friction between paydays, and some of it’s still ongoing. He’s seen one product line collapse on him, another one struggle to keep its feet. Even Bello’s admirers – and there are many – might want to see the now 62 yearold kick back, lighten up, recognize that he’s had a nice, dreamy, multi-million dollar run in the beverage business, wake up and smell the coffee.

Only problem is, Bello already did wake up and smell the coffee, and to him, it smelled like more cash.

Bello and his partners at Sherbrooke Capital recently invested $6 million in Adina World Beat Beverages; their aim is to create a set of coffee products that will become the biggest brew in the cooler case since Starbucks’ Frappucino, and they think Adina has the potential to do it.

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B

ut while the once-hyperactive Bello said he’ll have a hand in the brand’s development, he won’t be hustling cases out of trucks – or hassling the distributors who own those trucks – like he did during his days as the co-founder of SoBe. In those days, Bello cut a reputation with his employees by getting his hands dirty and personally dabbling in all the tasks he asked them to do.

These days are different, he swears.

“I don’t want to get on the field,” he said.

But here’s the question: can a guy who made his bones pulling tricks like stealing his competition’s cooler stickers continue to find success when he’s not able to re-shape a brand around his own personality? His two greatest successes, SoBe, and before that, the promotion of NFL Properties, both had attitude, a gutsy feel that was all their own. Even when Bello sold IZZE, the acquisition by PepsiCo was considered by some to be a last-minute bailout for a strapped niche brand that had lost its momentum, the combination of Bello with the brand felt oddly incongruous.

For a Yoga-Mom friendly brand with the hip quotient of a Volkswagen Beetle, they were sold by a guy whose approach correlates more directly with a Panzer division.

So what does that mean now that he’s put his money into an exoticjuice-cum-coffee company that plans to save the world? Can the Lizard King really do coffee?

the bello method From the start, Bello has said he wants to build Adina’s globally-inspired coffee line to challenge Starbucks’ domination of the ready to drink coffee category. While he won’t get on the street, he said he will play director for Adina’s next act, and instill the organization with the “Bello Method.”

The Bello method is a blend of football-coach motivational strategy and guerilla – he calls it “go-rilla” – marketing. In his SoBe days, Bello was known to march into convenience stores, rip the Snapple stickers off the coolers and replace them with SoBe stickers. He also motivated his team with “Bello-isms” like “Snapple is crapple” and “put AriZona in a coma,” and made curiously effective use of the company’s voicemail system, according to John Kenneally, who headed up SoBe’s West Coast sales.

“He would encourage everybody in the company to get on that voicemail on a daily basis and talk about positive things in the marketplace,” Kennelly said. “It really fired you up.”

When someone at SoBe failed, Kenneally said, they didn’t have to be chastised. They went home knowing that they let down their coach and their team, and that powerful mix gave the staff a strong dose of motivation.

“I would wake up in the morning and want to run through a burning wall of fire… to make him proud,” Kenneally said.

Kenneally, currently working on Cytosport’s RTD line of Muscle Milk, said Bello’s tactics made SoBe’s staff feel like a tight-knit sports team pursuing a championship.

Of course, every championship coach makes a few mistakes. Just ask Bill Belichik.

Bob Miller, one-time SoBe executive Vice President of Sales and Marketing and now executive vice president of sales and head of strategic planning for Function Drinks, said he disliked Bello the first time they met.

The two crossed paths at a 1994 trade show when Miller worked for Mistic and Bello worked for AriZona.

“At first, I couldn’t stand the guy,” Miller said. “(He was) just like real arrogant and cocky.”

Bello framed conflicts in terms of war, Miller said, and was unwilling to lose a battle. Miller recalled one instance where a distributor said he wasn’t interested in carrying SoBe. Bello yelled his way up the company’s chain of command until the last person he reached declared that the distributor would never carry SoBe, unless Bello left.

Miller later developed respect for Bello, he said, and he saw at SoBe how that cockiness played out in a business environment. That all-or-nothing attitude could have had a lot to do with what was at stake for Bello, Miller said. He said The Lizard King built his kingdom by leveraging his castle, offering his house to the bank as collateral so that the company could get a line of credit. And while Bello’s bluster may have cost SoBe one distributor, he eventually sold the company to Pepsi for a cool $337 million.

But that 2001 sale still stands as Bello’s crowning achievement. Before starting the company, he achieved notable successes at NFL Properties; after leaving SoBe, he and Sherbrooke facilitated the estimated $75 million sale of IZZE sparkling juice drinks to Pepsi. In between, however, he’s had a hand in a couple of ventures that have limped into transition. Or failure.

firefighter fizzles In 2004 Bello invested in Firefighter Brands, launching a line of snacks and drinks to capitalize on the popularity of the firefighter image following the September 11 terrorist attacks. That brand’s products included Hydrant Water and Courageous Cola, and the company promised to donate 25 percent of its profits to firefighter-related causes. But you won’t find the brand on shelves today, and the company’s website has gone dark.

Bello called Firefighter Brands an instance of “no good deed goes unpunished.” The brand idea worked, he said, but the company was beset by a number of problems. His departure from Pepsi barred him from working in the beverage side of the business, he said, which is where the focus of the brand fell, and he had a hard time corralling the divergent interests of full-time and volunteer firefighters.

But he also had a hard time pulling the whole idea together. While the brand started with a rollout of everything from potato chips and chili to bottled water and sports drinks, by the end it was apparent that the throw everything and see what sticks approach hadn’t worked. If the public had as much respect for firefighters in terms of potential brand equity as Bello says it did, then Firefighter’s execution was a colossal failure. If that potential was never there in the first place, it calls into question Bello’s ability to still pick a winner.

And another of Bello’s recent ventures – a line of soups and soup restaurants based on the inspiration for Seinfeld’s “Soup Nazi,” a real life soup maker named Al Yeganeh – decided it would just plain be better off without him. Bello lost his post as CEO of The Original Soup Man World Renowned Soup last year. But Bello said he never wanted to be the company’s CEO. He said he took the post to drum up funding and publicity, and doesn’t have the time or will to be involved with Soup Man’s – or any other company’s – day to day operations. He already sits on several other boards and serves Sherbrooke by searching for the next big brand. But he still owns ten percent of Soup Man, sits on the company’s board and represents a large group of investors – which affords him a measure of influence.

But this raises another question about the Lizard King: Does the Bello Method work from a distance? He crafted SoBe in his own image by stationing himself on the front lines of the company’s store-to-store battles.

MAY – JUNE 08 :: BEVERAGE SPECTRUM

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Even at IZZE, he packaged the company for sale by sitting as the board’s chairman. But the battlefield looks different the farther you get away from it, and at Adina, Bello plans to send dispatches from the general’s bunker.

As for Soup Man, Bello said the company is in a period of adjustment, not unlike SoBe’s South Beach days. SoBe originally sold iced teas to an unreceptive marketplace before Bello rebranded the company as SoBe and introduced a new line of fruit and vegetable juice blends with splashes of herbs – many of the elements that would later surface in the emerging functional drink category. Similarly, The Original Soup Man is bending away from the franchise track and specializing in grocery-ready soups.

stirring the coffee And, just as he made those adjustments at SoBe and Soup Man, therein might be the best of what Bello can bring to Adina.

Founded in 2006, Adina, despite a reputation for selling good, if expensive, beverages, has been organized more around an idea than a product, according to company co-founder Magette Wade-Marchand.

That’s even why the company chose the name Adina World Beat Beverages, she said, so they wouldn’t be locked down to a single kind of drink.

But co-founder and CEO Greg Steltenpohl said that approach left the company without focus. Adina experimented with multiple products that “were not fully executed,” he said, and pushed three divergent beverage lines including Miracle Fruits and Juice Coolers.

Now, under Bello’s advice, the company is rallying its sales and development resources behind the company’s coffee line. The coffee category is ripe for a strong contender, Bello believes.

To that end, Steltenpohl said Adina plans to roll out six new coffee SKUs in the coming year and bring the line to DSD markets on both the East and West coasts.

“The ready to drink category is pretty much dominated right now by Frappucino,” Bello said. “While it tastes great, we think there’s room for something lighter.”

Adina’s coffee drinks weigh in between 90 and 110 calories per bottle, which is about half that of a Starbucks bottled Frappucino – the creamy concoction which Bello credits for blazing the path for other RTD coffees to follow. The RTD coffee category was worth more than a quarter billion in sales in the last year, with Frappuccino alone accounting for $191 million and non-Starbucks brands accounting for around $25 million – about the same as Starbucks Doubleshot. Taken as a whole, Starbucks owns the RTD coffee segment much like Gatorade owns sports drinks, but Bello said he thinks that their presence created a space where another brand can move in. “(Coffee) has been reinvented and reinvigorated with what Starbucks has done,” Bello said. “(Frappucino) made a place for ready to drink coffees in the cooler set, so we’ll move in alongside it.”

Bello’s bet comes with more than Sherbrooke’s check. He said his experience in coffee stretches back beyond his SoBe days to when he cut his teeth in the beverage market by working on Sanka for Maxwell House.

Additionally, the team brought in Bruce Schroder, who ran the Pepsi/Starbucks Frappucino partnership, and Adina has its own dose of in-house expertise. Steltenpohl, you may remember, helped launch Odwalla – now owned by Coca-Cola.

But Adina isn’t the only beverage firm trying to cut their own piece of territory out of Starbucks’ kingdom. Coca-Cola tried to replicate Star-

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BEVERAGE SPECTRUM :: MAY – JUNE 08

bucks’ formula by partnering with Caribou Coffee and releasing metalbottled versions of that chain’s brew. SkylarHaley took a nutritious tack on coffee drinks by fortifying AchievONE with vitamins and nutrients.

Muud Coffee plans to try the reverse of Starbucks’ model: the brand recently launched 15 oz. RTD cans composed mostly of espresso, and cofounder Matt Marini said long term plans for the brand include opening coffee bars called “Muud Rooms.” Shock coffee continues to have cachet among caffeine junkies. And don’t forget about the Monster in the room – JavaMonster – which might very well have the growing distribution and fan base to trump them all, Frappucino included.

Even with brands clamoring to get into the coffee sector, Bello still thinks Adina has an edge. The company’s coffee is both organic and fair trade – a great pair of marketing buzz-words – and its ethnically-inspired flavors give the brand a strong point of difference. Bello said he thinks that combination could help the brand carve out its own subcategory.

But again, there’s that cultural issue. Bello’s style is in your face, while Adina has long been about laid back San Francisco hippie multiculturalism. How will that jibe with a guy who screams about draining the lizard?

According to Bello, it won’t be a problem. “I’m just there to provide experience and reflection,” he said.

But while the company’s founders share that vision, not everyone does.

Miller, for one, has his doubts. He said the beverage market has gotten tougher since his and Bello’s SoBe days.

The Lizard King, John Bello, is an investor now, a power broker, a guy who spots potential, feeds and nurtures it, and then rides it to a payday.

“Distributors do less and less,” he said. “Slotting fees are higher… It’s really become a much more difficult process now.”

Additionally, he said he’s not sure that Adina and Sherbrooke will have the capital to take on a monster like Starbucks. Companies with much deeper pockets have tried to and failed to take a piece of Starbucks’ action proving, he said, that RTD coffee might be a one-brand category.

But, he added, “If anybody can do it, (Bello) will do it.”

brand news

Coffee

java monster

Hansen’s Java Monster continued to grow after its initial release last April. The share-stealing energy drink brand added Lo-Ball, Nut-Up, Irish Blend, Russian and Chai Hai - Monster’s first tea-based drink – to the line. Geoff Bremmer, Monster’s brand manager, said customer response to the line has been so strong that the company had to ramp up production.

muud coffee OK folks, buckle-up! Hot on the heels of the release of our first 3 critically acclaimed MUUD flavors (original, mocha and vanilla), MUUD is ready to unleash DynoMUUD. This the “bad boy,” – the original MUUD recipe with another shot of espresso for an extra kick.

The result is an amazing smoky espresso flavor that will definitely get you going.

mojava With only 90 calories and no fat, Mojava Black is a natural coffee drink with no preservatives or additional charging supplements such ginko, guarana or taurine. Coffee, with the right amount of sugar and 8 to 10 oz. servings, makes the perfect energy drink without the unpleasant side effects of crashing. Other flavors in Mojito Brands, Inc. Mojava line RTD coffee include Mojava de Carma, Mojava MoMi, Mojava Mojito, Mojava OrMi. A percentage of the profits from the sale of Mojava Black are set aside for charitable contribution to help the many who suffer from Sickle Cell Disease.

ny coffee Not just for New Yorkers anymore, NY Coffee is expanding its reach. Besides the NY Metro area, the company now has sales in Buffalo, Chicago, Georgia, Portland Ore., Little Rock Ark., South Florida and Atlanta. The company recently added distribution in Price Chopper Supermarkets, Tree of Life and MVP Distributors in Pennsylvania. Within the city, NY Coffee has been promoting heavily with select TV green rooms, including the Tyra Banks show, MTV and Comedy Central.

starbucks If the caffeine in Starbucks’ RTDs wasn’t enough for you, the Seattle-based chain added a new selection of supercharged coffee drinks. The Starbucks Doubleshot Energy + Coffee line features Coffee, Mocha and Vanilla flavors, each 15 oz. can comes charged with a double shot of espresso and a dose of guarana, ginseng and B Vitamins.

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BEVERAGE SPECTRUM :: MAY – JUNE 08

[

Packaged beverages accounted for

$8.136 billion of in-store sales How are you going to tap into consumer beverage demand?

One Industry. One Voice. One Show.

October 4-7, 2008 | McCormick Place | Chicago, Illinois

4

4

Registration and housing now available online. www.nacsshow.com

CONVENTION SCRAPBOOK

FANCY FOOD SHOW he Fancy Food and All Things Organic shows held in Chicago from April 26-29 assembled vendors from all over the high-end food and organic world. Companies hawked everything from baby clothes to imitation chicken, from imported cheese to coconut oil and, of course, a few beverages.

With more than 800 total exhibitors, the 30 or so beverage companies were clearly outnumbered and – with the show following Natural Products Expo West – most of the new products and developments had already been revealed, but the beverage cadre still brought a handful of surprises.

Adina World Beat Beverages finalized and announced a $6.6 million investment lead by Sherbrooke Capital and “Lizard King” John Bello (see The Lizard King Does Coffee for a deeper look into that deal.) Honest Tea showed off five new SKUs, including Jasmine Green Energy Tea; Apple Rush showed off mock-ups of their planned new slim-can packaging, and Zota revealed a glimpse into the company’s relaunch, including new flavors and innovative new packaging.

Booths generally veered toward the tame end of the spectrum, with Adina and Sambazon offering two of the more elaborate beverage displays. Fruitzzo also made a strong showing with its simple, but large and inviting midfloor installation.

Robert Corr of Apple Rush shows the brands new slim-cans. off

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debrandt of Bionade Ken Weeks and Andres Hil of their product. ply sup le amp brought an

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BEVERAGE SPECTRUM :: MAY – JUNE 08

John Beske and Linda Catomer wit showed off their new packagingh .Zota

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lery, Ran Keith Lord, Marie Hugley, Chad Woo n. bazo Sam with rski Pisa Tim kle, Klac

Soy milk apparently excites Pamela Dietz of Vitasoy.

Uncle Matt's brought orange juice

and family.

PROMO PARADE Have a Perfect Picnic With Bota Box Wines Why hassle with a corkscrew? Make life easy by taking Bota Box, premium varietal wines in environmentally friendly packaging, to your next picnic. Bota Box is taking the edge off food prices by offering consumers a $2.00 IRC and $3.00 MIR on any deli item. For large picnics, Bota has created a $15.00 progressive MIR so one can stock up without breaking the bank.

Batman Takes on Gotham City With a Little Help From Milk Wearing the famous milk ‘stache for a second time, Batman from The Dark Knight is the latest hero to support the “Body

by Milk” campaign, to encourage teens to drink three glasses of milk everyday as part of a healthy lifestyle.

The Body by Milk Campaign and DC Comics are also sponsoring a sweepstakes to allow one lucky teen the chance to be drawn into a Batman comic book. In addition to the grand prize winner, fifteen fans will win a special Batman prize from Mattel.

Check out Batman’s new Body By Milk ad, find information about the sweepstakes, watch The Dark Knight trailers, download the new Body by Milk “widget,” and enjoy other media like behindthe-scenes videos from Milk Mustache celebrity ad shoots at www. bodybymilk.com! The Dark Knight hits theaters nationwide July 18.

Get Twisted This Summer No boring POS here. This summer, Twisted Wine offers retailers a unique rack guaranteed to jazz up any wine section. Additionally, Twisted Wine is offering several coupons: a $2.00 IRC and $3.00 MIR on meat purchases as well as a $15.00 progressive MIR on Twisted Wines. The Twisted portfolio includes Twisted Zin (Zinfandel), Twisted Chard (Chardonnay), Twisted Lot (Merlot), Twisted Cab (Cabernet Sauvignon) and Twisted Pig (Pinot Grigio), all varietals coming from California.

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BEVERAGE SPECTRUM :: MAY – JUNE 08

Announcing the Sports World's Newest Power Couple – Venus Williams and POWERade ZERO Venus Williams, a pioneer on the tennis court, continues her trendsetting as she partners with the revolutionary POWERade ZERO, which offers the nutrients and hydration benefits of traditional sports drinks without the traditional sports drink calories.

An extension of the POWERade family, POWERade ZERO offers a calorie-conscious exercisers a sports drink without the calories, including a purposeful mix of electrolytes: potassium (to aid muscle and nerve function) and sodium (just enough to stimulate thirst and promote consumption, thus leading to proper hydration). POWERade ZERO also includes essential B-vitamins to help the body utilize its energy sources and replenish nutrients lost during exercise. The product is currently being rolled out in retail channels nationwide.

Williams is an icon both on and off the court.

She boasts six major championships on her résumé, as well as 36 individual tournament titles. In 2007, Williams released EleVen, a collection of women’s athletic and lifestyle clothing and sneakers that she created with Steve & Barry’s. She’s also a global ambassador for United Nations Educational, Scientific and Cultural Organization (UNESCO), a program established to address worldwide gender issues.

POWERade ZERO is available in three flavors: Strawberry, Grape and Mixed Berry.

For more information about POWERade ZERO, visit www.us.powerade.com.

READER SERVICE PORTAL

LOOKING FOR PRODUCT SAMPLES OR INFORMATION ABOUT OUR ADVERTISERS? Go to www.bevspectrum.com/readerservices to request samples and get more information from our advertisers.

PROMO PARADE Daily's Unveils 'Sipstakes' to Kick Off the Summer Selling Season

Daily’s, America’s premier cocktail and mixer company unveils its “Win More Summer” consumer ‘sipstakes’ program at retail and online. This July and August, ads in Marie Claire and Cosmopolitan magazines, a range of POS materials, and an on-pack sticker will all introduce Daily’s mixers and ready-to-drink products in a wide array of today’s most popular flavors and cocktails. The ad and POS copy will drive consumers to Daily’s website, www.dailyscocktails. com, where they can enter to win the grand prize – a trip for two to The Westin Maui Resort & Spa, Maui, HI or the first prize summer tunes MP3 player.

Daily’s Ready-to-Drink products are available in 10 oz. frozen pouch package in four flavors: Mojito, Margarita, Strawberry Daiquiri, Pina Colada and a 1.75L Bag-in-Box in seven flavors: Cosmopolitan, Margarita, Appletini, Mojito, Mangotini, Bloody Mary and Pomegranate Margarita. Daily’s Fruit Mixers are available 1L plastic bottle with professional pour spout in a range of popular flavors including Margarita, Caipirinha, Mojito, Mudslide, Raspberry Daiquiri and more.

Available in nearly two dozen mouth-watering flavors, Daily’s Fruit Mixers are made with a unique blending of real fruit, authentic ingredients and fresh natural flavors.

Miller Lite Launches Comprehensive Soccer Program Featuring CONCACAF Champions League Partnership All summer long, Miller Lite will be working to make its brand synonymous with soccer. As the official beer sponsor of the CONCACAF’s Champions League, Miller Lite will run ads featuring current Mexican soccer champions Omar Bravo and Cuauhtemoc Blanco.

Anchored by a partnership with Univision, “A Champion Combination” will hopefully give Miller Lite a captive audience among legal-drinking-age Hispanics within the world of soccer, particularly CONCACAF’s 40-member nations in the U.S., Mexico, Central America and the Caribbean.

Ads will center on Blanco and Bravo. Special collectable singleserve cans will also feature the two players. A national consumer promotion will give soccer fans a chance to win a soccer viewing party chock full of Miller Lite.

Miller Lite also will have branded content during the summer on TeleFutura’s “Contacto Deportivo” and branded sponsorship of online media.

Another digital element will be the update of MillerLiteLatino. com. The site will feature interactive games, tournament information and CONCACAF game footage, as well as sweepstakes where visitors can register to win prizes such as flat screen TVs, keg-erators and mini-fridges.

The CONCACAF tournament is scheduled to kick-off in August 2008.

What is 7UP’s Recipe for Success?

7UP is teaming up with celebrity Chef Carlos Fernandez to cook up the 7UP Recipe for Success nationwide contest. Latinos across the country can put their creative cooking skills to the test for a chance to win $70,000 and make their dreams of their own restaurant or remodeled kitchen a reality. Chef Fernandez will judge all of the 7UP-infused recipe entries to decide who gets crowned the 7UP 100% Naturally Talented Chef.

The Hispanic population in the U.S. is opening small businesses at a rate three times faster than the national average.

7UP looks forward to helping one novice Latino chef follow in dream a reality, Chef Carlos’ footsteps.

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BEVERAGE SPECTRUM :: MAY – JUNE 08

Contestants can submit their original 7UP-infused recipes online at www.Receta7UP.com, via mail or at in-store demos

in select markets. All entries must be received by Aug. 5, 2008. Chef Carlos will review each entry and, using a small judging panel, test his favorites. Ultimately, he will narrow the selection to seven lucky participants who will cook their recipes live in-studio with Chef Carlos. The final cook-off will be shown during Telemundo’s Cada Dia in September. Chef Carlos will lead the final instudio judging and crown one winner with the title of 7UP 100% Naturally Talented Chef and award the $70,000 grand prize to fulfill their dreams.

For complete contest rules for 7UP with 100% Natural Flavors’ Recipe for Success contest, please visit www.Receta7UP.com.

THE LABEL SAYS LIGHT. THE FLAVOR SAYS BECK’S.

• Beck’s Premier Light is the #5 Import Light Brand in supermarket sales for 2007.* • 2007 sales of Imported Light beers are up more than 10% over 2006, the category continues to grow and reached over 15% in 2007.* • Beck’s Premier Light is the lowest calorie import beer in the U.S.* • Please look for our East vs. West program which features a cross merchandising offer for sushi and Beck’s Premier Light. *IRI InfoScan Total U.S. Food - Full Year 2007 data ending 12.30.07 Always Enjoy Responsibly. ©2008 Import Brand Alliance, Importers of Beck’s® Beer, St. Louis, MO