aiming for profits with energy shots

Transcription

APRIL 2008
SUDDEN
IMPACT
aiming for
profits with
energy shots
ALSO THIS ISSUE:
KIDS BEVERAGES
SPARKLING JUICES
CSDs AND CORN PRICES
APRIL 2008
vol.
6 :: no. 3
more than
academic
A RETAILER’S GUIDE TO SCHOOL BEVERAGE GUIDELINES
17
Cover Story
28 :: LITTLE COMPETITION
26
Departments
28
8 :: BEVSCAPE
Dr Pepper Spinoff Completed
Energy shots aim for big profits
10 :: CHANNEL CHECK
Special Section
Coke’s Prize Purchase
17 :: KIDS BEVERAGES
A retailers guide to school
12 :: NEW PRODUCTS
beverage guidelines
Daily’s Keeps Mixing it Up
44 :: PROMOTION PARADE
Features
Nutrisoda Goes Biking
26 :: PUMPING GAS,
AND SOFT DRINK PRICES
How corn and gas are making for
an expensive mix
38 :: SPARKLING JUICES
Not done fizzing
42 :: BRANDS IN TRANSITION
Fiji goes green
46 :: EXPO WEST IN REVIEW
A crunchy old time at Expo West
48 :: SHOW PREVIEW
Fancy Foods in Chicago
Columns
4 :: THE FIRST DROP
Charity-Flavored Water
6 :: PUBLISHER’S TOAST
Confessions of a
Trade Show Junkie
40 :: GERRY’S INSIGHTS
Michael Pollan, Natural
Foods’ Frenemy
Beverage Spectrum is published monthly with combined issues in January/February, May/June, July/
August and November/December by Beverage Spectrum Publishing, Inc., a wholly owned subsidiary
of BevNET.com, Inc. One Mifflin Place, 3rd Floor, Cambridge, MA 02138. Periodicals postage paid at
50 :: SHOW PREVIEW
FMI in Las Vegas
Boston, MA and additional mailing offices.
POSTMASTER: Please send address changes to Beverage Spectrum Magazine, Subscriber Services, One
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APRIL 08 :: BEVERAGE SPECTRUM
3
THE FIRST DROP
A NEW FLAVOR: CHARITY
iven their typical concentration of youthful
liberalism and cutting-edge faddishness, a
college campus can be a hard place to be a bottled
water mogul. Just ask University of Pennsylvania
freshman Ben Lewis.
“Everyone likes to pick on the bottle water
business,” he says of his fellow students. “It’s really the thing to do these days.”
That can’t be music to the ears of Lewis, whose
precocious entry into the beverage business started when he launched the Give brand of bottled
water last August.
Still, when Lewis explains what his business
does, the criticism tends to soften. The conceit behind Give is pretty simple: the company
donates ten cents for every bottle you buy to a
cause. There are three SKUs. So if you buy a blue
bottle, you help fight child hunger; buy a pink
bottle, you help fight breast cancer; buy a green
bottle, you help save the environment. If the
majority of spring waters are generally equal in
terms of quality and taste, as most consumers are
starting to believe, the idea is that a cause might
make Give first among equals.
To Lewis’ own amazement, it’s turned into a
growing phenomenon, having gone from a local
brand in his hometown of Pittsburgh to a large
4
BEVERAGE SPECTRUM :: APRIL 08
chunk of shelf space in Whole Foods’ mid-Atlantic region.
“It’s cool,” he says. “As we grow and build up
our brand, the top of our priority list will be to
create more ways to give. People say, add a bottle
for this charity or for that one. It’s great. There’s
so much potential for expansion – not only into
other causes, but into other product lines down
the road.”
Distributors and retailers are starting to have
legitimate concerns about the long-term momentum of the bottled water category. Media
and environmental forces are fast turning against
bottled water for environmental reasons. With
that backlash spreading, but consumer habits
with regard to water now strongly established,
Lewis sees his company as allowing bottled water
consumers to self-levy a sin tax.
“I’m not going to sit here and tell you that
bottled water is a rational product,” he says. “At
home, I don’t drink it. But there are 20 million
Americans that drink bottled water every year.
Give isn’t trying to reverse a consumer trend.
There’s nothing I can do about that. But if Give
can just leverage the power of this industry and
use it as a vehicle to do some good – and I think
we’re doing that – if we can, that’s the success.”
We’re not pointing Lewis out as the next big
thing – although there’s obviously plenty of potential here for Give to resonate with the folks
who were early adopters of bottled water in the
first place – but we’re pointing out his product as
the kind of clever and classy marketing innovation that can help keep the category growing.
But with any number of new causes available
as SKUs, with a brand conceit that could be extended to several different kinds of products, we
think Lewis has figured out something important.
He’s figured out that in cynical times, a little
earnestness can be very refreshing.
PUBLISHER’S TOAST
TRADE SHOW JUNKIE
PUBLISHER
Barry J. Nathanson
bnathanson@bevnet.com
EDITOR
Jeffrey Klineman
jklineman@bevnet.com
ASSOCIATE PUBLISHER
John McKenna
jmckenna@bevnet.com
ART DIRECTOR
Matthew Kennedy
mkennedy@bevnet.com
GRAPHIC DESIGNER
Amadeu Tolentino
atolentino@bevnet.com
ASSISTANT EDITOR
Matt Casey
mcasey@bevnet.com
PRODUCTION MANAGER
Adam Stern
astern@bevnet.com
’ve been a trade show junkie for over 25 years
now. Although I hate the travel, the excitement
of arriving on the floor of the show at its opening still drives me. After all, where else can you
see so many new brands and old friends at the
same time? For 16 years now, I’ve traveled the
beverage circuit. FMI, NACS. NBWA, Interbev, NACDS, IBWA, Fancy Foods, Expos East
and West, and an array of others have filled my
calendar. I spend my time critiquing the latest
offerings from a taste, packaging and marketing
perspective. I especially get a kick out of seeing
old friends in new positions. (We have quite an
incestuous industry: some have worked at 10 or
more different companies over the years.)
The new launches were usually the province
of the major food shows, and FMI and NACS
were the gold standards. That is no longer the
case. To anyone who attends the Expo East and
especially Expo West, the beverage world has
tipped towards these venues. I find it interesting
that the newest and most innovative brands are
being exhibited at these shows. While the Natural and Organic sector is only a smidgen in the
total sales of the industry, almost all the attention
has been devoted to it. Take a walk around the
recent Expo West and look at our show coverage
on BevNET and you’ll know what I mean. Just
as important, as you cruise the aisles, you see the
retailers of all the major grocery, c-store, mass,
club and drug chains strongly represented. The
distributors and beer wholesalers are equally in
6
attendance . They know a good thing when they
see it.
What do these shows offer that the traditional
beverage shows seem to have lost? In a word, energy. They have captured the zeitgeist as the place
to be heard, to meet the principals and exchange
in real dialogue. They have captured the entrepreneurial spirit. While their specialty retailers
and small chain formats don’t drive the product
volumes of their larger brothers, they share that
magical entrepreneurialism. With the “big guys”
of the beverage industry buying up many of the
successful brands from the last five or ten years,
the next generation of products have started to
emerge, and they’re emerging at what once had
been the smaller shows. That those events have
grown so much is evidence that they are the places to seek out something new.
BUSINESS MANAGER
John Schinn
jschinn@bevnet.com
SUBSCRIPTION INQUIRIES
Adam Stern
astern@bevnet.com
617-715-9679
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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
S
Y
PB
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IGN
8
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Bevscape
WHAT’S HAPPENING ACROSS BEVERAGES
THE DOCTOR IS IN
Copy Investors at CadburySchweppes decided overwhelmingly that it was time to
sever their beverage business
from its chocolate-centered
parent company. What that
vote will mean for the beverage company and the industry as a whole,
though, is up for debate.
Industry Analyst Manny Goldman said he thinks the vote will bring
little more than a name change to the soon-to-be Dr Pepper Snapple
Group, but George Kalil, President of one of Cadbury’s largest U.S. bottlers, hopes that the restructuring will mean more.
“If it goes through in the fashion it’s supposed to go through then
I think that it could be very good for everybody,” Kalil said, “for the
employees and the network.”
Kalil said that high-level decisions would have to be easier when top
officers can organize meetings simply by yelling down the hall of their
Plano, Tex. headquarters. Currently, he said, American brass has to bring
ideas to their London bosses before making any changes. That creates
logistical snags, as nearly 5,000 miles, six time zones and the Atlantic
Ocean separate Plano from London.
Removing those snags, Kalil said, will allow the company to more
nimbly adopt new ideas, and removing the foreign ownership could
buoy the morale of associated independent bottlers.
Kalil’s family has been running the Kalil Bottling Company for 60
years, and Kalil said bottlers felt more invested in the company before
Cadbury Schweppes PLC and the Carlyle Group bought Dr Pepper/
Seven Up in 1995.
“We all felt like we owned part of it,” Kalil said. “That’s not easy to do
when you’re part of a foreign owned company.”
He said he hopes the company will take a giant cultural step back
before it moves forward, and he thinks Larry Young, who will be the
DPSG’s chief executive officer, is the right man for the job.
Goldman agreed that Young – who has served as the CEO of the Dr
Pepper/Seven Up Bottling Group since 2005 – represents a good choice
to lead the beverage company, but that’s about the only point where
Goldman and Kalil agreed.
Goldman said
he goes back with
Cadbury “a long way,” and
he believes the spinoff won’t change
how the company operates. Despite its
corporate ties to London, Goldman said,
the division has effectively functioned as an independent company.
“The confection business and the drinks business are really separate animals,” Goldman said. “Just the nature of the business
is different.”Goldman said the two divisions usually didn’t even share
finances, but that didn’t mean that the two businesses didn’t have
things in common.
Both companies, Goldman said, compete as “leaner and meaner” competitors in fields dominated by a handful of giants. Cadbury
wrestles with Hershey and Nestle, and Dr Pepper battles for shelf space
against Coke and Pepsi.
While that may be true, Cadbury took pains to streamline their
drinks division before spinning it off.
Between 2003 and 2005, Cadbury integrated Dr Pepper/Seven Up,
Mott’s and Snapple into one organization. Between 2006 and 2007,
they bought total control of the Dr Pepper/Seven Up Bottling Group
and purchased other third-party bottlers, and, last year, Cadbury cut
470 U.S. drinks division jobs ahead of the upcoming demerger.
The resulting company will command the power of a long list of
beverage brands including A&W Root Beer, Canada Dry Ginger Ale,
Sunkist, and Sunny Delight.
Goldman said the management team in place has done a fine job
of corralling those disparate brands, and believes they’ll probably perform at least as well when spun-off. Kalil said he expects the company
to experience a period of adjustment, and hopes they will emerge as
a better company.
ENDORSEMENT WATCH
Gotta wonder if there’s some dissension in the Red Sox’ ranks.
No, not over anyone’s share of World Series dough, either. It’s
probably over the variety of enhanced water they’re throwing into the clubhouse cooler. David Ortiz is well known
as one of the big guns hawking vitaminwater for Coke, but
Pepsi trucks in the Boston area now show catcher – and Sox
team captain – Jason Varitek shilling for SoBe Life Water.
Fenway Park is a Coke stadium, to be sure, but who can
argue with the Captain? And what would Ted Williams,
think, anyway? Chances are, he’d think “where’s the damned
Moxie?” Maybe in the freezer with the rest of you, Ted…
8
Meanwhile, look who else is on the
ball for vitaminwater? Yep, there he
is, basketball’s second coming, LeBron James. Remember the King
James comic book for PowerAde? Betcha they don’t do volume two with him
in a vitaminwater uniform.
NOW PITCHING FOR
SOBE, THE CATCHER!
A-B LOOSENS THE
APRON STRINGS
Since the late ‘90s, the big boys
of beer have successfully swallowed up the competition, holding
wholesalers to exclusive contracts
and dominating shelf space. Now
that Darwinian order appears to be
backfiring. Consumers want variety – read: crafts and imports – and
wholesalers want to deliver it.
Anheuser-Busch, which has been
under pressure from wholesalers, is
trying to placate them and bring
a little variety to your consumers. Distributors unable to carry
A-B’s “aligned brands”—primarily
InBev offerings like Stella Artois
or Grolsch—because of statutory
franchise laws will now be allowed
to carry other beers, water or tea,
but not wine or distilled spirits
from companies other than A-B or
its affiliates. While A-B is working
to minimize competition with its
own brands, the hope is that the
arrangement will re-energize its relationship with distributors.
Meanwhile, A-B has looked
within its own product line to
capitalize on the craving for crafts,
which are growing faster than the
overall beer segment. Although its
Michelob line has lagged in recent
years, A-B is attempting to reinvent
the “draught beer for connoisseurs”
turning to a soon-to-be-launched
Michelob Brewing Co. to foster
A-B’s fuller-flavored
beers. By turning the
producer of products
like Michelob, Michelob Porter, AmberBock into its own
little unit, letting
them experiment
with old-style and
new beers – like a
dark wheat Bavarian-style, due out
later this year – it
might be able to
promote its place
as a home for better brew.
BLUE MOON RISING
Blue Moon – brand of the year.
That’s the word from IRI, which
recently released its Top 30 Beer
Brand Performers ranking, the result of intensive share vs. volume
growth pricing in the last year.
With the top three coming from
Blue Moon, the Sam Adams seasonal line and Heineken Premium
Light, the real big movers of the
beer category continue to be exposed: craft, craft-y and imports.
“The historic trend of consumers trading up and paying premium
price for their favorite brands continued in 2007,” said Bump Williams, general manager, IRI Beer,
Wine and Spirits Practice. “In fact,
20 of the top 30 Beer performers
are high-end brands that include
13 imports and seven craft brands.
Brewers, Distributors and Retailers are doing a phenomenal job of
meeting the ever-changing tastes
of consumer demands with their
new product innovations. The key
now is getting the proper amount
of shelf space and distribution in
the right stores across multiple
trade channels to support these
power brands.”
The Top 30 Beer Brand Performers ranking is designed to highlight
the brands that experienced significant year-over-year growth across
total U.S. supermarkets in 2007. In
addition to looking at volume and
dollar sales, IRI also examined pricing, share growth and incremental
volume and dollar contribution.
It’s not that the big brewers
aren’t getting results – all three big
light brands made the top 10. But
the IRI poll shows retailers where
the tastiest trends are.
IRI TOP 30 BEER BRAND PERFORMERS IN 2007
TOTAL U.S. SUPERMARKETS
1. Blue Moon Belgian White Ale
16. Model Especial
2. Samuel Adams Seasonal
17. Michelob Ultra Light
3. Heineken Premium Light Lager
18. Dos Equis XX Especial Lager
4. Stella Artois Lager
19. Samuel Adams Light
5. Newcastle Brown Ale
20. Sierra Nevada Pale Ale
6. Coors Light
21. Michelob Golden Draft Light
7. Bud Light
22. Heineken
8. Yuengling Traditional Lager
23. New Belgium Fat Tire Amber Ale
9. Miller Lite
24. Grolsch Lager
10. Samuel Adams Boston Lager
25. Dos Equis XX Amber Lager
11. Keystone Light
26. Steel Reserve High Gravity Lager
12. Corona Light
27. Red Stripe
13. Tecate
28. Busch Light
14. Guinness Draught
29. Shiner Bock
15. Samuel Adams Variety Pack
30. Guinness Extra Stout
*Minimum of 500,000 cases sold in total U.S. supermarkets for 52 weeks ending Dec. 31, 2007
9
Channel Check
april 2008
SPOTLIGHT CATEGORY
Water
52 Weeks ending 3/23/2008
Hey, look at that – this set of water numbers, which has always included functional products like vitaminwater and Propel
for some reason known only to the folks
at IRI – shows just how psyched the
Coke folks should be over their purchase
of Glaceau. When you bring in a brand
that has roughly the same sales as your
top-selling water, and watch it leave one
major opponent in the dust by a greater
than 2 to 1 margin, you think, hey, it cost
us, but it was worth it. And look further
down, too – where smartwater is within
shouting distance of both Evian and Fiji.
The high end is still growing, the functional side is going gangbusters, and even
beloved hippie bottle maker Nalgene
just caught a punch in the gut. Maybe
the water business isn’t the worst place
to be?
CONVENIENCE/PET STILL WATER
Dollar Sales
Change vs. year earlier
Private Label
$669,923,500
19.9%
Aquafina
$503,968,400
-2.0%
Dasani
$443,769,400
-2.6%
Glaceau Vitaminwater
$435,033,300
115.6%
Poland Spring
$245,097,800
-7.4%
Propel
$192,249,100
-1.6%
Arrowhead
$183,041,200
2.4%
Deer Park
$137,399,100
-6.2%
Nestle Pure Life
$124,516,100
28.9%
Crystal Geyser
$109,302,400
9.9%
Ozarka
$101,640,100
0.9%
Ice Mountain
$98,465,900
7.3%
Zephyrhills
$86,985,740
0.8%
Fiji
$85,890,540
23.6%
Evian
$78,043,770
-2.1%
Dannon
$67,861,260
-38.8%
Glaceau Smartwater
$55,098,180
110.8%
Aquafina Flavorsplash
$45,104,940
-9.1%
SoBe Life Water
$44,695,220
133.7%
Veryfine Fruit2O
$42,797,800
-27.1%
Heading Up: Glaceau Vitaminwater
SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart
BOTTLED WATER
$5,226,233,000
7.1%
TOPLINE CATEGORY
VOLUME
52 Weeks ending 3/23/2008
ENERGY DRINKS
$837,647,500
20.8%
BEER
SPORTS DRINKS
$9,424,535,552
3.7%
$1,715,877,000
4.6%
BOTTLED JUICES
TEA/COFFEE
$3,795,195,000
2.1%
$1,465,509,000
13.7%
10
RTD TEA
Dollar Sales
ENERGY
Dollar Sales
$352,364,800
20.5%
36.2%
AriZona
$293,600,300
5.6%
Red Bull
Lipton
$273,762,600
38.2%
Monster
$142,218,700
Snapple
$131,242,800
8.2%
Rockstar
$98,153,490
20.6%
Full Throttle
$42,401,350
-10.7%
17.3%
Lipton Brisk
$88,399,760
2.1%
Diet Snapple
$82,300,510
-3.9%
Amp
$29,944,210
Nestea
$65,959,210
23.4%
SoBe No Fear
$23,035,730
-36.9%
Lipton Iced Tea
$43,442,320
-26.4%
Monster XXL
$15,267,410
113.3%
Private Label
$36,499,740
13.0%
SoBe Adrenaline Rush
$13,746,110
-24.1%
Lipton Pureleaf
$27,204,140
N/A
Rockstar Juiced
$13,018,690
187.3%
Amp Overdrive
$10,840,910
1,011.1%
Nestea Enviga
$25,954,920
190.4%
52 Weeks through 3/23/08
Heading Up: Amp Overdrive
RTD COFFEE/CAPPUCCINO
Dollar Sales
SPARKLING JUICE
Dollar Sales
Frappuccino
$191,353,900
4..4%
Welchs
$17,048,570
-0.8%
Doubleshot
$25,705,930
-7.8%
Martinellis Gold Medal
$13,672,850
-0.2%
$10,935,000
10.2%
Heading Up: Enviga
Starbucks Iced Coffee
$14,026,930
29.6%
Izze
Bolthouse
$12,347,460
13.8%
Orangina
$6,774,603
12.9%
$5,165,446
6.3%
Doubleshot Light
$11,048,510
17.5%
Private Label
Godiva Belgian Blends
$8,082,136
54.3%
Meiers
$4,167,706
-13.8%
Cinnabon
$2,115,872
771.9%
RW Knudsen Family
$3,787,302
21.8%
Private Label
$1,743,767
821.2%
Kristian Regale
$2,960,995
-7.4%
Lorina
$2,359,196
-7.5%
Crystal Geyser Juice Squeeze
$2,171,866
10.7%
Hillside
$725,917
142.4%
Starbucks Cappucino
$638,505
70,655.4%
Heading Up: RW Knudsen Family
SPORTS DRINKS
BEER
Heading Up: Cinnabon
Dollar Sales
Dollar Sales
Gatorade
$626,205,700
-9.4%
Bud Light
Powerade
$250,670,800
16.2%
Miller Lite
$747,077,504
3.5%
Gatorade Rain
$155,167,500
16.6%
Budweiser
$738,134,336
-3.5%
Gatorade Frost
$140,970,300
-2.5%
Coors Light
$664,185,088
6.0%
Gatorade All Stars
$134,747,000
16.3%
Corona Extra
$483,936,384
-1.4%
Gatorade Fierce
$88,257,900
-7.2%
Heineken
$321,705,728
5.3%
Gatorade X Factor
$78,292,890
-17.2%
Natural Light
$296,983,904
1.0%
Gatorade AM
$71,601,050
610.4%
Busch Light
$220,814,720
4.4%
Gatorade G2
$34,635,810
N/A
Michelob Ultra Light
$212,028,768
4.2%
Powerade Option
$19,007,640
12.3%
Miller High Life
$181,333,024
3.2%
Heading Up: Gatorade AM
$1,451,717,888
3.3%
Heading Up: Coors Light
11
NEW PRODUCTS
BEER
RTD TEA
Miller Brewing Company has rolled out MGD 64, a
reformulation of MGD Light that has just 64 calories, throughout the Midwest. Additionally, the
brewer is testing MGD 64 in Arizona, San Diego
and Sacramento. No other beer on the market has
fewer calories than the new MGD 64. The roll-out
includes activities in some places consumers may
not expect to experience MGD 64 such as spas
and health clubs, as well as some additional activities that consumers will discover throughout the
beginning weeks in March. MGD 64 has only 64
calories and 2.4 grams of carbohydrates per 12 oz.
For more information, call (414) 931-3848.
For the past three years, Anheuser-Busch brewmasters have brewed special batches of beer
crafted to complement the changing seasons.
Sun Dog Amber Wheat is stepping up to fill the
shoes of the very popular Spring Heat Spiced
Wheat, which has graduated to a year-round offering known now as Shock Top Belgian White.
Jack’s Pumpkin Spice Ale, Winter’s Bourbon Cask
Ale and Beach Bum Blonde Ale will continue to
be available during their respective seasons. Sun
Dog is an unfiltered beer, with a naturally cloudy
appearance and fuller texture which allows it to
stand up to spicy foods like Thai noodle salads
and Cuban sandwiches. Sun Dog is brewed at
Anheuser-Busch’s Fort Collins, Colo., brewery and
contains 5.3 percent alcohol by volume. For more
information, call (314)577-9629.
Hoegaarden, the Original Belgian White Beer,
will be available in 12-packs beginning Monday,
March 10. Hoegaarden is brewed in Belgium and
imported to and distributed in the United States by
Anheuser-Busch Inc. Hoegaarden is an unfiltered
wheat beer with a soft body, cloudy
appearance and thick, frothy head.
It’s brewed with real Curaçao orange peel and a dash of coriander
and was the Gold Medal winner
at the 2006 World Beer Cup. This
product will be distributed nationally and will be priced by wholesaler decision. For more information, call (314)577-9629.
12
Skae Beverage International has launched the latest additions to its successful New Leaf line with
Diet New Leaf teas. Choosing to release diet versions of the widely popular Blue Tea, Diet Blue Tea
Lemon and Diet Blue Tea Peach will be available
this spring. Pairing blue tea with lemon and peach
has allowed for a distinctive citrus and fruit blend
unlike any diet RTD tea available on the market.
Sweetened with Splenda, New Leaf diets maintain the integrity of the original lemon and peach
flavors. Diet New Leaf will be available in the
trademark sophisticated 16.9 oz proprietary glass
bottle. The MSRP would be $1.49- $1.79 and distribution will be national. For further information
please visit: www.drinknewleaf.com.
In response to growing consumer demand,
ITO EN has expanded its 2 liter offerings of TEAS’
TEA beverages to include its Golden Oolong variety. TEAS’ TEA 2 liter bottles are also available
in Green Jasmine, Green White and Pure Green
varieties. They retail for $4.69 each and can be
found at mass merchandise stores, grocery stores
and specialty natural food retailers nationwide including Whole Foods, Super Target, Bashas’ Supermarket and Wegman’s. TEAS’ TEA can also be
ordered at www.itoen.com. For more information,
please call (707) 327-6413.
JUICE
Naked Juice has released Bare Breeze, a refreshing super-premium, 100 percent juice with no
added sugar or preservatives. Naked Juice Bare
Breeze is available beginning March 31 in two
tempting flavors: Watermelon Chill and Peach
Mangosteen Bliss. Watermelon Chill mixes watermelon and lime, along with strawberries, a hint
of apples, and white grapes for good measure.
Peach Mangosteen Bliss blends juicy peaches and
exotic mangosteen, along with apples, a hint of
lemon, and white grapes. With fruit such as watermelon and mangosteen never-before-featured in
the more than 25 flavors offered by Naked Juice,
the crisp, fresh creations are a unique offering
among the growing super-premium juice catego-
ry. Watermelon Chill and Peach Mangosteen Bliss
will be available nationwide for a suggested retail
price of $3.19 per 15.2 ounce bottle. For more information call 626.633.8384.
Sun Shower has introduced Stamina Superfood
Smoothie, a new, all natural, 100% juice smoothie
which contains over 20 essential vitamins, nutrients, amino acids, electrolytes, herbs and antioxidants. Stamina helps enhance energy and endurance while providing enhanced nutrition and
the same great taste of Sun Shower’s™ other
100% nectarine juices. For more information, call
(312) 768-7376.
Bossa Nova is introducing a line of new juices
made with these superfruits: acerola, the highest
Vitamin C fruit; goji, the highest carotenoid fruit;
and mangosteen, a xanthone-rich fruit. This led to
the creation of a full line of beverages that retain
the best qualities of these fruits. The full line of
NEW DRINK REVIEWS
Beaver Buzz Black Currant Energy
Bossa Nova Superfruit Juices features the company’s five original açai juices as well as five new
flavors: Acerola Juice with Mango and Acerola
Juice with Red Peach, Goji Berry Juice with Tart
Cherry, Mangosteen Juice with Passion Fruit and
Mangosteen Juice with Dragonfruit. These 10 oz.
products will be distributed nationally with an
MSRP of $3.29.
ENERGY DRINKS
Bawls Guarana has introduced G33K B33R – the
first-ever high-caffeine root beer, inspired by root
beer fans everywhere who want to let out their
inner geek! A rarity in the root beer world, G33K
B33R packs a caffeine kick equal to a cup of coffee and nearly three times that of traditional sodas. Written in “Leet Speak,” a language popular
among techies where letters are substituted with
numbers, G33K B33R’s refreshing, root beer flavor
is spiked with guarana to deliver a natural caffeine
kick perfect for anyone in need of a “bounce.”
This product will be marketed nationally and will
be line-priced with other Bawls offerings. For
more information, call (305) 531-9708.
ENHANCED WATER
King 888 Energy
Olade
DNA Energy
TeaZazz
Franks Energy
Amp: New Flavors
Vita 500
Nitro2Go Instant Energy
Simply Originals
Red Bull Cola
Java Monster: New Flavors
Nos Powershot
Bawls G33K B33R
Virgil’s Real Cola
From March 28, 2008 to press time.
To see reviews, visit www.BevNET.com
PepsiCo has reformulated its Aquafina Alive Nutrient Enhanced Water Beverage lineup, including
a new option with 10 percent of the daily recommended value (DV) of fiber. Aquafina Alive, a line
extension of the nation’s leading water brand,
adds more functionality to PepsiCo’s leading hydration portfolio. Aquafina Alive Satisfy (10-Calorie Peach Mango, with 10% DV of fiber) is one of
the only waters on the market with a significant
amount of fiber. Protect (Calorie-free Berry Pomegranate, with 10% DV of Vitamins E and C) is a
good source of E and C vitamins. Energize (Calorie-free Orange Lime, with caffeine, 10% DV of Vitamin B) is enhanced with about as much caffeine
as an average cup of coffee. Hydrate (Calorie-Free
Lemon, with electrolytes, sodium and potassium)
is enhanced with electrolytes to replenish the nutrients an active body loses throughout the day. 20
oz. pricing will be $1.19-$1.29, while 16.9oz 6-pack
pricing is $2.50-$3.29. For more information, call
(914) 253-2437.
13
(ALF0AGE"EV3PECVERTPDF0-
SPIRITS
Stolichnaya Vodka has launched Stoli Blakberi,
the newest flavor to join the award winning family of imported vodka flavors. The new flavor joins
the popular, award winning family of Stoli flavors
that includes Stoli Blueberi, Stoli Vanil, Stoli Razberi, Stoli Cranberi, Stoli Strasberi, Stoli Citros
and Stoli Ohranj. Stoli is supporting the launch
of Stoli Blakberi with a full array of programming
including Blakberi specific national and local advertising, on and off-premise point-of-sale materials and on-premise consumer sampling events in
key markets across the U.S. Stoli Blakberi will be
available in four sizes – 1.75 L, 1.0 L, 750 ml and 50
ml – and will launch nationally in May, 2008. It will
retail for a suggested price of $23.99 for a 750 ml.
For more information, call (203) 254-8225.
Daily’s, America’s premier cocktail and mixer,
has introduced a new line of all natural martini
mixers. Daily’s Sour Apple, Blueberry, Lemon and
Pear Martini Mixers will make their retail debut
this April, just in time for the refreshing summer
cocktail season. Daily’s Sour Apple, Blueberry,
Lemon and Pear Martini Mixers, available in 20
oz. PET bottles with Daily’s proprietary pour spout
finish, will have a suggested retail price of $4.99
per bottle. Daily’s will support the launch with
national print and on-line advertising and attractive POS materials that include delicious at home
recipe suggestions. For more information, call
(203) 254-8225.
From Hood River Distillers comes the aptlynamed Spudka vodka. Made with Idaho potatoes and pure, glacier-fed Mt. Hood spring water,
Spudka is 80-proof vodka that undergoes a complex 139-plate distillation process, is double charcoal filtered and contains no additives. It sells for
$12.95 per 750mL bottle. For more information,
call (971) 244-0661.
Smirnoff Vodka has introduced Smirnoff Passion Fruit and Smirnoff White Grape. These innovations feature award-winning Smirnoff No. 21
Vodka immersed with the sweet, yet tart and tropical flavor of the popular passion fruit and the crisp,
sweet and smooth flavor of white grape. Smirnoff
Passion Fruit and White Grape join the already
existing 11-product Smirnoff flavored vodka collection. All are available in 50mL, 200mL, 375mL,
750mL, 1L and 1.75L sizes. The 750mL bottle carries a suggested retail price of $14.99.
#
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14
A SPECIAL SECTION FROM
more than
academic
A RETAILER’S GUIDE TO SCHOOL BEVERAGE GUIDELINES
BY: MATT CASEY
T
he next time the school bell rings
and students flood into your store, pay
attention to what they buy. It may be
different from what they bought a few
years ago. Those teens and tweens
may be handing you wadded up bills to
pay for – gasp – healthier beverages.
Or maybe not. It all depends on where you
are and what your local school districts are doing
about school beverage guidelines – particularly
those defined by the Alliance for a Healthier
Generation, former President Bill Clinton and
the American Beverage Association.
The agreement – which sets standards for
what beverages should and shouldn’t be available in schools –developed as an almost inevitable consequence of America’s growing awareness of its growing waistlines. Politicians and
pundits have railed about childhood obesity for
years, with targets ranging from Lunchables to
Marshmallow Fluff. In 2005, nutritionists noted
that America’s rising obesity rates coincided with
their rising consumption of high-fructose corn
syrup. After that, it was only a matter of time
before experts chose the beverage industry as the
next target in the battle for fit and trim kids.
But ABA leaders – with a little help from the
most popular president since John F. Kennedy
– turned their time in the cross-hairs into an
opportunity to lead. The Association shook
hands with the Alliance for a Healthier Generation in May 2006 on guidelines that will,
among other things, eliminate full-calorie sodas from schools. The goal of this landscapechanging agreement is to reduce childhood
obesity and diabetes by teaching kids to eat and
drink healthier products.
“We like to hope that in several years they
might be looking for that bottled water or that
diet drink or that mid-calorie drink when they’re
hanging out at the 7-Eleven,” said Brian Herr,
executive director of the Alliance.
In some places, that may be exactly what
happens. But – just like Weight Watchers –
Former President Bill Clinton looks on as Susan Neely, President of the American Beverage
Association, speaks at the press conference for the Alliance for a Healthier Generation, a joint
initiative of the William J. Clinton Foundation and the American Heart Association at the
President’s office in Harlem, New York, Wednesday, May 3, 2006. (Gina Gayle/U.S. Newswire)
individual results may vary. So don’t start tossing out your Coca-Cola in favor of no-calorie
beverages yet.
First, the ABA plans to finish rolling of the
new guidelines at the start of the 2009 school
year, so they may not have gotten to your neighborhood yet. Second, even if they have, that
doesn’t mean that students who drink nothing
but water, 100 percent juice and non-fat milk in
school are going to stick to those same healthy
choices once the school day is over.
Their reactions will depend on how school officials “frame” the new rules, according to Irwin
Levin, a professor of psychology and marketing
at the University of Iowa. Levin said students at
schools that properly usher in the new rules will
probably adopt healthier beverage habits. But if
a school fumbles the transition, Levin said students could sour on healthy drinks and cling to
full-calorie sodas.
More than 2,000 schools have already transitioned into the Alliance’s beverage plan, and
thousands more will have to convert in the
next year. Major bottlers are in the process of
converting their stock to meet the calorie, nutrition and portion size constraints that the ABA
agreed to. Once they have, they won’t sell anything else in schools.
Until 2009, many schools can enforce whatever metric they like. The Hickman Mills
School District in Kansas City, for example, uses
the Missouri Eat Smart Guidelines. The policy
limits sodas to 50 percent of offered items –
though it makes no distinction between diet and
full-calorie sodas. According to Leah Schmidt,
the district’s director of nutrition services, her
students readily accepted the new policy, but she
was uncertain if that behavior followed them
to the mini-mart.
“Changing their habits may take a little
while,” she said.
But Kim Bealle, director of strategy and innovation with the consulting firm Just Kids Inc.,
thinks kids in some areas have already changed
their habits. Bealle recently visited schools in
Connecticut – where the state has implemented
Clear Beverage Corporation 8379 W. Sunset Road, Suite 130 Las Vegas, NV 89113 ph. (866) 543-3583 www.kidfuel.com
Kid Fuel is a naturally flavored, nutritious drink that offers a
healthy alternative to sugar laden soft drinks and fruit juices and
gives moms a healthy option that their kids will love. Kid Fuel is
made with quality ingredients, no high fructose corn syrup and
no artificial flavors, dyes or sweeteners. Kid Fuel contains added
vitamins – along with reduced sugar, calories and carbohydrates.
Kid Fuel comes in four fruit flavors: Kiwi-Strawberry, Raspberry,
18
Grape and Orange. Each 8 oz. serving contains 100% RDA of
vitamins B6 and B12 plus added, biotin (20%), vitamins B3 and
B5 (20%) and calcium. Kid Fuel is currently available in 4-packs
(supermarket), 12-packs (warehouse) and single serve (convenience stores, restaurants, specialty retail). Kid Fuel will soon
debut a 24-pack for Big Box retailers.
Crayons Inc. 9201 NE 28th Place Clyde Hill, WA 98004 ph. (415) 515-4709 www.drinkcrayons.com
While many of today’s newer beverage offerings appeal to Mom
gatekeepers with their low or zero calorie messages, these beverages often have artificial sweeteners, preservatives and/or artificial colors. We’ve found that most beverages with 50 calories
or less sacrifice the critical taste appeal with the all-important
consumer: kids. At Crayons, we make our refreshing beverages
with 33 percent fewer sugar grams while retaining the same
tougher guidelines than those agreed to by the
ABA – and kids seem to be doing okay with it.
Connecticut’s policy allows only five kinds of
beverages to be sold in schools: water, 100%
juice, juice drinks, milk and non-dairy milk
products, and all drinks must submit to strict
guidelines on sugars and artificial sweeteners. Bealle said the mantra of healthy beverage
seemed to have made it out of the vending machines and into student’s homes.
sweetness level that kids love today. Crayons Fruit Drinks also
use the world’s first “SugarGuard Protection System” to help
control the rate of sugar absorption. Crayons comes in five juice
flavors: Outrageous Orange Mango, Tickled Pink Lemonade,
Wild Watermelon & Berries, Redder-Than-Ever Fruit Punch and
Kiwi Strawberry. Crayons also offers three sports drink flavors:
Playoff Punch, Leaping Lemon Lime and Breakaway Berry.
Bealle said, and stores could draw them in by
stocking an after-school refueling station with
healthy drinks and healthy snacks. But Bealle’s
healthy-kids ambitions might collide with convenience store realities.
Jeff Lenard, vice president of communications for the National Association of Convenience Stores, said store operators have to remove a product from their shelves for each item
that they add.
“Our stores aren’t accordions,” he said.
And, he said, convenience store owners have
seen better-for-you ambitions fall apart before.
It wasn’t so long ago, he said, that everyone was
talking about organic foods, but the sales didn’t
live up to the buzz.
“Everyone will say they want healthy food,
and you watch what people buy and it’s often
very different,” he said.
He was also wary of modifying a store’s stock
Minimarts sell more bananas than they used to, and nutrition bars are stealing space from
packaged sweets, Lenard said. The trend is similar in the cooler case, where diet drinks and
fortified waters have gone from fringe offering to beverage staple.
“When I saw kids with brown bag lunches
they tended to have a water, or a vitamin water
or a Capri Sun,” Bealle said.
That doesn’t mean that all of the school’s
health-conscious decisions went over like fireworks on the 4th of July. The state also revamped
food offerings, and students disapproved of
the new low-fat cookies – so much that one
student leaned over to Bealle and said “Bring
back the fat.”
The lesson here, Bealle said, is that kids
won’t eat something if it doesn’t taste good –
and that rule applies just as readily with beverages as it does with cookies, chicken strips and
butterscotch pudding. She said retailers near
schools could use that knowledge to lasso a
loyal customer base. Kids leave school hungry,
to cater to the buying patterns of people too
young to vote. Kids make up a small spectrum
of the minimart’s customer base, Lenard said,
because they spend all day on closed campuses and have little buying power. But there are
exceptions to every rule. Lenard visited one
store where students streamed in for breakfast,
lunch and dinner.
And not every attempt at healthy food in convenience stores has flopped. Minimarts sell more
bananas than they used to, and nutrition bars
are stealing space from packaged sweets, Lenard
said. The trend is similar in the cooler case,
where diet drinks and fortified waters have gone
from fringe offering to beverage staple.
The Alliance for a Healthier Generation may
nudge that healthy trend forward. Herr said
Hint Inc. 2430 Scott Street San Francisco, CA 94115 ph. (917) 593-5974 www.drinkhint.com
Hint prides itself on simplicity. Each 15 oz. bottle contains water,
a hint of natural flavor and nothing else -- no sugar, no artificial sweeteners, no calories, no carbohydrates and no sodium
– making it a refreshing alternative to sodas, juice and other
sweetened drinks. Doctors agree that good old H20 is, without
question, a most beneficial liquid, but how much plain water can
20
you drink before craving something more? Hint satisfies those
cravings and quenches even the most powerful thirst. It gives
bodies young and old what they need most. Hint currently offers
nine flavors including Peppermint, Tropical Punch and Cucumber. Give me a Hint!
Honest Beverages 4827 Bethesda Avenue Bethesda, MD 20814 ph. (800) 865-4736 or (301) 652-3557 www.honest-kids.com
Honest Kids, the nation’s first certified organic kids’ thirst
quencher packaged in a portable pouch, is available in three
flavors: Berry Berry Good Lemonade, Goodness Grapeness
and Tropical Tango Punch. Most kids’ drink pouches have more
sugar per once than a can of soda. In contrast, each variety of
Honest Kids is low in sugar, organic and provides a day’s supply
of Vitamin C.
Given all the negative press about the obesity epidemic
amongst children, retailers realize that they need to provide
healthier beverage options such as Honest Kids. Honest Kids
contains half the calories and sugar of most children’s drinks,
making it an attractive choice for parents while still offering a
great taste.
TALK TO THE KIDS!
Honest used bright
colors and pictures
of fruit to give their
pouches a youthful – but
ageless – personality.
the nonprofit plans to speak to every industry
that contributes to the calories burned or consumed by children, and he would love to see
the Wawas and 7-Elevens of the world adopt
policies for pedaling healthy selections to their
younger consumers.
“We hope that the free market will reward
those companies that are trying to do the right
thing,” Herr said.
While the “right thing” for retailers might be
pretty clear – stock healthy products and sell
them to kids – it may be a trickier proposition
for beverage companies. Crayons President and
CEO Ron Lloyd said he expected most entries
into the kids drinks segment to fail because they
have not one, but two hurdles to trip over.
First, Lloyd said, kids’ beverages need to appeal to both moms and kids by offering good
nutrition, fun, and good flavor. Second, the
drinks need to let kids feel as old as they want to
at any given moment.
“Kids desperately crave to be a teen, but at the
same time they don’t want to be prevented from
being a kid when they feel like it,” Lloyd said.
He said his company cleared this second
hurdle through clever packaging. Crayons uses 8
oz. slim cans adorned with bright colors, a black
oval and a set of distinctive stripes that make
So how do you know if you should
prepare for a change of tastes in
your teen and tween customers?
Kim Bealle, director of strategy and
innovation with Just Kids Inc., said
that larger retail chains could hire
her company to find out where kids’
tastes are headed, but that service
is well beyond the budget of most
mom and pop operations. For them,
Bealle suggested a simpler solution:
talk to the kids that patronize your
store. Ask them what they want that
you don’t have. You may find that
a lot of them want healthier-for-you
beverages. If that’s so, you know
you need to add more of those options to your cooler case.
Crayons uses 8 oz. slim
cans adorned with bright
colors, a black oval and a
set of distinctive stripes
that make them look like,
well, crayons.
Switch Beverage Company 201 West 7th Street RIchmond, VA 23221 ph. (866) 875-8423 www.switchbev.com
The Switch has the bold taste and nutritional value of a fortified
juice, with the carbonated refreshment of a soda. It is the perfect balance of juice and carbonation with no high-fructose corn
syrup, no added sugar, no gluten, no preservatives and no artificial colors. The brand’s eight-flavor line includes Black Cherry,
22
Watermelon Strawberry, Orange Tangerine, Grape, Fruit Punch,
Kiwi Berry, Apricot Peach, and Very berry. Each comes packed
in either 12 oz glass bottles or 8.3 oz. slim cans (available in
schools) and contains 100 percent of a kid’s recommended daily
dosage of Vitamin C.
While Hat Brands, LLC 2675 Paces Ferry Road, Suite 100 Atlanta, GA 30339 ph. (800) 747-0912 www.WhiteHatBrands.com
Launched by beverage industry and kids marketing veterans,
White Hat Brands is committed to becoming a leading force in
combating growing children’s health issues like childhood obesity and juvenile diabetes by developing nutritious beverages for
“Tweens” supported by a comprehensive marketing plan and innovation calendar.
The company’s flagship product, Dog On It! Fortified Juice
them look like, well, crayons. When a kid wants
to feel like a teen, Lloyd said, they can look at
the slim-can and think of a Red Bull. When they
want to be a kid, they can look at the design and
think of refrigerator art.
Honest Beverages used a different design
strategy with their Honest Kids line of pouched
juice drinks. Founder and CEO Seth Goldman
said Honest stayed away from cartoon characters or Power Rangers on their packaging.
Instead, they used bright colors and pictures of
fruit to give their pouches a youthful – but ageless – personality.
The design must be working. Goldman said
the brand’s growth has been surprising, which
could have something to do with its appeal to
24
Beverage, is loaded with Calcium, Vitamins A, B, C, D, E and
Minerals without all the excess stuff you may find in other beverages – no high fructose corn syrup, no artificial sweeteners and
no artificial colors or flavors. Dog On It! Is available in Strawberry Lemonade, Berry Punch, Orange Splash, Kiwi Watermelon,
Tropical Tangerine. Each is packaged in 6-packs of portion-controlled 8-oz. PET bottles.
retailers. Goldman said Honest Kids offers stores
something that many other kids’ brands don’t: a
comfortable profit margin.
“This kids’ drinks channel, its one where parents will switch pretty easily based on whatever’s
on sale,” Goldman said.
But, he said, parents don’t have a lot of
healthy options, and that has allowed his brand
to “really take off ” even when the Honest
Kids’ price tag can be twice that of products
on the same shelf.
That same price differential, Goldman said,
could keep Honest Kids from popping up in
school channels any time soon, but another tea
brand has taken the rush of sodas leaving school
vending machines as its cue to enroll for class.
Clayton Christopher, founder and CEO
of Sweet Leaf Tea, said his company added
12 oz. plastic bottles to their lineup to get the
product into schools in Texas. Students can currently buy Sweet Leaf in about 30 percent of
the state’s middle and high schools, Christopher
said, and will soon be available in schools in
Florida and Colorado.
“It’s a win-win for us,” Christopher said.
“It’s not like we’re selling it at cost, (and) it also
does a great job of building the brand with the
young consumer.”
And it won’t be long before that young consumer is a grown-up consumer with his or her
own disposable income.
Developed specifically for kids,
Kid FuelTM is fun to drink AND nutritious —
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
©2008 Clear Beverage Corp.
PUMPING
GAS.
AND SOFT
DRINK
PRICES.
America’s insatiable appetite for gasoline
may push up the price of soft drinks in gas
stations’ attached minimarts. And
everywhere else, for that matter.
BY: MATT CASEY
26
t’s an unusual equation, and the variables include commodities speculators, the weather,
international trade, and congress, but only one
constant: corn.
Millers derive high fructose corn syrup, the
number two ingredient for most soft drinks,
and ethanol, the number two ingredient for
gasoline, from the same yellow kernels. The cost
of those kernels jumped in the last few months
after congressional efforts for energy independence collided with the fallout from a
volatile stock market.
Beverage manufacturers have seen those costs
passed on to them. Food Business News reported in early April that HFCS cost an average
of 18.65 cents per pound, up from an average
of 15.7 cents at the same time last year. That’s
a 19 percent increase that’s causing financial
pain for beverage companies. And that pain
will likely travel down the supply chain into
the cooler case.
Brian Weber, Vice President of DLR Associates Inc., the makers of Potencia Energy
Drink, said he found out about the price hike
when his company mixed its last batch, but
they got lucky.
His supplier had a stock of HFCS bought last
year at the lower price, Weber said, allowing
him to dodge any price hikes until at least
the next production run. By then, he said,
DLR may have another plan in place to deal
with HFCS prices.
Bigger companies likely won’t be as nimble.
Coca-Cola Bottling Co. Consolidated, one of
Coke’s largest regional bottlers, reported a 14
percent drop in profits in 2007 compared to
2006, partly due to rising sweetener costs. Analysts at the investment bank Morgan Stanley
recently cited rising commodity costs as one
reason they believed stock in PepsiCo Inc., had
become a riskier investment. They also offered
insight on how Pepsi could offset the higher cost
of HFCS: either increase productivity or raise
prices – as much as three percent in 2008, according to analyst Bill Pecoriello.
PepsiCo representatives declined to comment
for this article, but their corn-related troubles
and those of other beverage companies can be
traced not back to the field, but back to the oil
barrel.
Congress mandated gasoline companies to
blend 9 billion gallons of ethanol with regular
gasoline in 2008 – up sharply from the previous
5.5 billion gallons. The corn-based substitute
for oil-based fuel appeals to politicians because
it is renewable – taking 97 percent of its matter
from the air – and reduces reliance on oil from
the conflict-ridden Middle East.
According to Nathan Fields, director of
research and business development for the
National Corn Growers Association, that
high-level mandate has attracted investors who
fled the troubled waters on Wall Street. Now
dabbling in commodities futures, Fields said
those investors are exacerbating the natural
swings in corn prices.
Fields said market forces alone would have
pushed the price of a bushel of corn beyond the
typical $2-4 range, but those newly-arrived investors forced the cost of corn north of $6.00
per bushel on the Chicago Board of Trade.
Ironically, that extra push has led to the slowdown of the industry that attracted investors
to corn in the first place. Jon Birger wrote for
CNN Money in February that the high price of
corn had cut the profit margins on ethanol, so
much so that companies have shelved plans for
as many as 50 planned ethanol plants.
Birger reported that the price of corn has
jumped 60 percent since the third quarter of
2007, while the price of ethanol has only risen
30 percent. That squeezes companies like Verasum Energy Corporation, Birger said. Verasum’s
profits fell from 37 percent to 12 percent in the
third quarter of 2007 at the same time that corn
costs rose from $2.05 per bushel to $3.32 per
bushel. Birger predicts the economics of Ethanol
will change, with market forces favoring largescale producers like ADM.
But even if the ethanol market cooled, University of Illinois professor of Agricultural Economics Darrel Good said international trade
will help keep the price of corn high. China has
reduced its corn exports, Good said, draining
the pool of internationally available corn and
leading more international buyers to get their
corn from the U.S.
Good said America’s economic climate adds a
financial bonus to overseas U.S. corn buyers.
“Importers have not felt the full brunt of
the price increase because of the weak dollar,”
Good said.
In theory, increasing the cost of a bushel of
corn should increase the price of all corn derivatives including high fructose corn syrup, but
Craig Ruffolo, a paid consultant for the corn industry, suggested that may not be the case.
HFCS buyers meet with their supplier once a
year – typically between October and December
– to determine the price of the sweetener, Ruffolo said. During that period last year, corn prices
generally hovered below $4 per bushel, though
the price spiked in early December.
Ruffolo added that other factors could play in
to negotiated prices. Beverage companies turned
to HFCS because it was cheaper than sugar,
Ruffolo said. Recent media coverage of the
sweetener linked it to America’s struggle with
childhood obesity, and some beverage companies are switching to cane sugar — a more expensive commodity.
The laws of supply and demand suggest that
a drop in demand could negate a price increase.
Maybe it will, but it hasn’t yet.
Corn isn’t the only commodity
pushing up the prices on products for
groceries and convenience stores.
• MILK: The wholesale cost of milk peaked
in July at slightly more than $21 per 100
lbs. before finishing the year just south
of $21. That’s more than double the
five-year low of $9 farmers sold the white
stuff for in March of 2003. Consumers can thank the price of corn feed for
contributing to that bullish run.
• OIL: Consumer’s have an up close view
of the rising cost of oil, but that pain
at the pump stretches down the supply
line of pretty much any product on any
shelf in any store. It all has to get there
somehow, and that somehow is usually a
big truck with a big gas tank. Oil nudges
prices yet higher, as most plastic packaging is petroleum based, and many stores
use electricity from oil-fired power plants
to keep products cold, or warm, as
the case may be.
• HOPS: Consumers can expect to pay as
much as $1 more for a six pack of craft
beer in the near future, and they may see
some of their favorite smaller brewers
go out of business. A global shortage of
hops, exacerbated by American farmers
trimming their hops crop (in favor of
corn) has driven the price of beer’s bitter
and aromatic ingredient skyward.
• WATER: It doesn’t take an economist to
explain water’s importance, and the price
of the flow out of the faucet is on its
way up. One Massachusetts community
recently increased the price of their water
from $1.96-3.60 per thousand gallons to
$2.60 to $5 per thousand gallons – and
that’s nothing compared to the droughtstricken southeast. Florida, Alabama
and Georgia are fighting over the water
in one reservoir. States in the southwest
are in a battle over water supplies as
well, and economics teaches that scarcity
breeds higher prices.
27
LITTLE
COMPETITION
ENERGY SHOTS AIM
FOR BIG PROFITS
BY JEFFREY KLINEMAN
At a
time when most energy
drink brands are publicizing new, bigger
cans, it turns out that the biggest profits are
actually coming from the smallest packages.
Energy “shots,” concentrated two-ounce
versions featuring the same basic energy mix of
caffeine and b-vitamins as their larger brethren,
are riding a wave of runaway sales multiples that
echo the frenzied growth of first-generation energy drinks like Red Bull and Monster.
Last year, just three years after the introduction of 5-Hour Energy, Nitro2Go, ZipFizz and
their ilk, the category grew to nearly $100 million. With new brands and new distribution avenues coming on-line, however, the category is
expected to reach a new level by the end of the
year. According to at least one beverage executive, by the end of the next year, energy shots
could be a $500 million business.
“We feel like this is the next big category
to explode,” says Mike Fine, who oversees the
fast-growing NOS energy brand for the CocaCola Co.’s Fuze subsidiary. Using its newfound
ability to get into the Coke distribution network,
NOS is planning to jump into the category in
a big way in May. By leveraging Coke’s advertising and marketing resources, Fine plans to
attempt to emulate the rapid growth of 5-Hour,
which increased its sales by more than 400
percent last year.
28
The
reasons
for Fine’s
optimism
are twofold: like
espresso to coffee drinkers, energy shots appeal to a
slightly different group of consumers than
core energy drink users, but they also have
significant overlap in that group. In their
ability to satisfy consumers’ need for energy, the shots offer retailers a product that
complements the energy category, but they
don’t fight for cooler space with the traditional
16 oz. and 8 oz. drinks. For some consumers,
they are an add-on product to go with their energy drink in a kind of shot-and-chaser strategy.
But for others, the shots are their own target.
Retailers say energy shots are selling to truck
drivers and yuppies alike, but that the sales demographics seem to include customers who
need energy but might not have drunk energy
drinks in the past. With little or no sugar in the
product, energy shots are advertised as helping
consumers avoid the “crash” associated with sugar-laden energy drinks. Small enough to make it
through a TSA airport security check, consumable in one gulp, and low in calories while still
high in stimulants, the reduced size of the energy shot also has one main advantage that the
previous generation does not: the reduced bladder impact of the significantly smaller volume of
liquid -- as some call it, the “pee factor.”
“The bathroom factor is huge,” says Danny
Lim, who oversees energy purchases for D&J
Market & Deli, in Poulsbo, Wash. “You just
don’t have to go. Truck drivers, they don’t like
to pull over.”
To date, the growth of the energy shot has
largely centered around 5-Hour Energy, which
in one year grew from $13 million to $59 million in convenience stores and from $6 million
to $26 million in grocery, drug and mass channels, according to Nielsen and IRI numbers.
While several other big players and a gaggle of independents are moving to compete
with 5-Hour, it appears that
Living Essentials’ product is the one to beat.
“I probably order about 10 boxes a week,”
said Bruce Cullen, who owns a 7-Eleven in
Springfield, Ore. “5-Hour seems to be like the
Red Bull of the category. It just keeps plugging
away. A lot of items, if they’re fads, they’re just
boom-then-splat. This has been very consistent.”
For the retailer, the energy shot advantage is
threefold: their small size – about about the size
of a white out bottle -- allows them to be placed
just about anywhere in the store, although they
sell best next to the register. Additionally, they
can be consumed warm, saving valuable cooler
space, and their standard price, about $2.99,
gives them a significant ring.
Living Essentials, whose first product was the
Chaser brand of hangover remedies, launched
5-Hour Energy in late 2004. After bombarding
the television cablesphere with advertisements
telling consumers to “avoid the crash” in the past
year, Living Essentials has managed to carve out
sales numbers that would easily put it in top 10
energy drinks nationwide.
“The kids are buying energy drinks,” says
Carl Sperber, the marketing director for Living Essentials, which makes Five-Hour energy.
“We’ve found an audience among working
adults. If you’re a 35-year-old man, do you really
identify with a product called Monster or Freek?
It’s found appeal with those who just want
energy. They want to slam something down in
a couple of seconds and feel great for the rest
of the day.”
What’s more, the product still is only sold
in about 40 percent of the convenience channel. With only modest increases in distribution and pull-through, by the end of the year,
5-Hour Energy could be close to $250 million
in sales. Not bad for a product that won’t yet be
four years old.
“The big obstacle is continued distribution,”
says Sperber. Despite ubiquity in Walgreen’s,
7-Eleven, and other major chains, he says, “We’re
still knocking on doors. The big box stores are
starting to beckon, and we still don’t have Coke,
Pepsi or Red Bull ubiquity yet.”
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
But they’re gearing up for it. Last year Living Essentials purchased a 145,000 square-foot
warehouse in Wabash, Indiana and taking its
staff up from four employees to 30.
“I think if bigger and more legitimate companies get in, things will really grow,” Sperber
says. “Having more legitimate players in it always helps the category. But we have a pretty big
start, and I don’t know if there’s anything that
Coke, Pepsi or Monster will bring to the table
that will work better than ours.”
FIRING A POWER SHOT
As Sperber describes, that lack of competition
from big-name energy drinks has helped the
Michigan-based brand take early ownership
of the category. But some well-known players,
particularly NOS, are about to jump into the
market.
“We’re the hot brand at the hot time,” said
Fine. “We’re putting it on everybody’s radar.”
NOS, best known for a set of bottles shaped
like a popular brand of automotive nitrous oxide booster tanks, has taken off in the past year
through a combination of innovative package
design and clever channel marketing, climbing
to nearly $160 million in sales.
In early May, Fine plans to introduce the
NOS Power Shot throughout the Coke system.
Fine says that with Coke’s distribution power,
the growing popularity of the energy shot, and
the momentum of the NOS brand, Power Shot
will quickly turn into a top SKU.
“Think about how excited we were when we
first saw this nugget of a category nine months
ago,” Fine says. “Based on what the NOS brand
is all about, we thought we could take the same
brand platform and extend it into this new category.”
Still, there are some skeptics who believe that
the strong energy drink players won’t be able to
make the transition into shots.
“If it was about taste, rather than the benefit
the consumer gets from the product, that might
let energy drink makers in,” said one convenience store executive. “It’s going to take some
innovative products or a value-added proposition to take the share away.”
NO ATTENTION
So, aside from 5-Hour’s television ads – it spent
nearly $10 million in 2006, according to A.C.
Nielsen Monitor Plus -- why haven’t energy shots
picked up much media attention yet? Part of the
reason is that the shots are tracked as vitamin
supplements, rather than selling in the heavilyadvertised beverage space. But the introduction
of energy shots has turned vitamin, health and
beauty into a major growth sector for C-Stores
and other retail channels – according to one CStore executive, in fact, it’s a boom that hasn’t
been seen since the pre-regulatory Ephedrine
tablet sales bonanza of the 1990s.
7-Eleven has increased its space allocation for
liquid vitamin supplements – the category energy shots dominate – for 12 straight quarters.
Energy shots now represent 25 percent of the
sales in the health and beauty category at CircleK – even though the category includes everything from marital aids to Advil.
“I would classify it as outstanding growth,”
Sandra Colvin, the 7-Eleven category manager
RIDING HIGH – As this chart indicates, it’s been a big year for 5-Hour Energy.
$6,000,000
5-Hour Lemon Lime
$5,000,000
Convenience Store Sales Dollars
5-Hour Berry
$4,000,000
$3,000,000
$2,000,000
$1,000,000
0
4 Weeks Ending
4/21/07
4 Weeks Ending
6/16/07
4 Weeks Ending
8/11/07
4 Weeks Ending
10/6/07
4 Weeks Ending
12/1/07
4 Weeks Ending
1/26/08
4 Weeks Ending
3/22/08
SOURCE: AC NIELSEN, CONV. STORE TRACK
30
for vitamins and supplements, says of energy
shots. Starting with the single 5-Hour Energy
product, she says, “we went from a bottle, to a
shelf, to a shelf and a half, and our individual
stores are going further depending on what their
customers want.”
Marketers are betting they’re going to want
quite a bit more. Last November, at the National Association of Convenience Stores Show, the
rising tide of energy shots was easily evident, as
brands from established players like Jolt Cola
and distributor-produced rollouts like Blutonium alike jostled for attention. There is the sense
that, just as with energy drinks before them,
there are going to be a lot of similar products
on the market in the near future. Already, in
fact, 5-Hour executives are complaining about
me-too products making claims of six hours of
energy and beyond, filing suit against Nitro2Go
in Michigan. One of the first sports tie-ins is in
place, as well – Baseball Hall-of-Famer Johnny
Bench is on board with Turbo Power Energy.
With a NOS launch that will include a major advertising push of its own and 5-Hour going strong, there is the possibility that one or
two products may be enough to crowd all other
comers out of the category. But with energy
the top function in the beverage arena, energy
shots are giving off the scent of cash, and there
are a lot of beverage and supplement manufacturers who believe there’s a spot in the lineup
for them, too.
“We’re on a pace that if we had no growth,
we’d have $1.5 million in sales this year – and
we’re predicting $2.5 million,” says Jim Folsom,
whose company started making Blutonium less
than a year ago. “I think Red Bull and Monster
built a category across the whole country and
contributed to a shift in consumption habits.
This is maybe the next generation down from
what they’ve done.”
According to marketers, energy drinks and
the country’s massive coffee culture have pushed
the notion of energy into the mainstream. But
energy shots represent a new evolution, they say,
one that distills the energy boost of caffeine into
one of its most direct forms yet.
“You’re selling energy, but they’re the antithesis of drinks because there’s this notion that
[energy drinks] don’t sustain energy, while the
shots do,” says Wet Planet Beverages’ C.J. Rapp,
whose Jolt Soda makes him as knowledgeable
about the energy category as anyone. “They’re
low calorie, so it attracts a female audience, and
the less liquid the better, for some.”
“At the end of the day, you’re selling energy,” Rapp says. “But you’re selling against
energy drinks.”
ENERGY
SHOTS:
BRAND
NEWS
Zipfizz – Zipfizz
Liquid Shot is now available in four flavors: Orange, Mango, Fruit
Punch and Passion. This liquid formula
delivers 41,667% B-12 for enhanced energy and mental alertness. It contains no
sugar and “just enough caffeine and green
tea extract to get the ball rolling.” Liquid
Shot is isotonic and is conveniently packaged in
a 4 oz. bottle.
Shot Me Up – Texas-based Shot Me Up has two energy shot lines: Chi Shot, the World’s first caffeinefree White Tea energy shot, comes in three flavors:
Pomegranate, Mandarin and Mango. Zen Shots are
the World’s first and only 2 oz. Green Tea Energy
Shot. It is also caffeine-free, with a powerhouse of
synergistic ingredients that not only provide energy
but optimal health, including green tea extract, natural agave nectar, Aloe Barbadensis Leaf Juice, panax
ginseng, and essential B and C vitamins. Zen Shots
come in five flavors: Original, Orange, Lemon, Peppermint and Berry.
as a half cup of decaffeinated coffee,
Decaf 5-Hour Energy is designed
for people who avoid caffeine, but
still need an extra boost to help them
function during the day.
Impulse One – Impulse One is a New
Age Beverage Company with established
and innovative brands like Head Shot
Energy Shot, and Red Devil Energy Drink.
Headshot is an incredibly smooth-tasting energy
shot that provides hours of energy. Headshot is available in Original, Blueberry Slam and Apple Slam.
Bond Laboratories – FUSION 6+HR Energy Shot is a
2 oz. that is available nationwide in convenience stores,
on college campuses and among the action sports
world. The shot is made with Fusion’s “Phytomic Energy Blend,” which includes B-vitamins for energy,
amino acids to trigger focus and mood enhancement,
and enzymes that help the body feel energy quicker
and sustain increased energy for a long period of time.
FUSION was launched from BOND Laboratories—
a premier marketer and manufacturer of nationally
branded nutritional products.
Labrada Nutrition – Labrada’s Charge! SuperShot
comes in a convenient, 2 oz. that is intended to either
be opened and consumed or added to bottled water to
“Charge! your water”--- instantly making a delicious
non-carbonated fruit flavored drink. Charge! is fortified with 2450 mg of fruit based anti-oxidants and
B-vitamins.
5-Hour Energy Berry and Lemon-Lime flavored energy shots, has added an Orange flavor to its lineup.
NRG – NRG SHOT contains about as much caffeine
as a cup of coffee for energy revival, while it also contains vitamins like C, B6, B12, Niacin, and Folic Acid
for hours of crisp clean energy without the crash of
other energy drinks. NRG SHOT comes in Mandarin
Orange, Red Berry, Pink Lemonade, and, coming this
summer, Blue Raspberry.
Previously available exclusively at Walgreens, Orange
is now available to the convenience store channel. Orange is available in 12-packs and as part of a new multiflavor wire rack display that includes all three 5-Hour
Energy flavors. Living Essentials has also released Decaf 5-Hour Energy. Containing only as much caffeine
Liquid Lightning – New Jersey based Liquid Lightning
has added Liquid Lightning Boltz to their portfolio of
products. A compact 2 oz. energy shot supplement, it
is the only one on the market that is made with Hoodia Extract. Hoodia has been known for years as a
Living Essentials – Living Essentials, the maker of
32
nutritious food that is extremely effective at reducing
the appetite. Boltz is sugar free and has a berry flavor.
One shot has the equivalent power of two cans of an
energy drink. Liquid Lightning has plans for two new
flavors and a twin pack arriving this Spring.
Fuze – NOS Energy Drink will launch NOS PowerShot in May of this year. The 2 oz. product is aimed
at those looking for very quick, high-impact energy. NOS PowerShot contains the NOS Maximum
Boost Formula, which serves the same level of Caffeine, Taurine, L-Carnitine, Inositol and Panax Ginseng found in an 8 oz. serving of regular NOS Energy
Drink into a 2 oz. package. Plus, NOS PowerShot
contains a special formulation of elevated levels of
Niacin, Vitamin B6 and B12 than those found in regular NOS Energy Drink.
FIXX – FIXX Extreme Shots claim a proprietary
Nano-Particulate Delivery system (NDS) and bioactivated ingredients to produce a great tasting shot with
an extremely powerful and effective blast of energy
that’s designed to last all day.
34
OC Energy – OC Energy ’s “Insane” energy shot
was designed for consumers that want a choice. Its
iconic bottle design with eye-popping graphics set it
apart from the run-of-the mill energy shot. Offering
something more than just energy, Insane has undergone a flavor transformation. Its great new taste and
new label verbiage let customers know exactly what to
expect; 6+ hours of energy, no crash and hangover relief when you need it. Consumers enjoy Insanes’s wide
mouth that easily allows it to be shot not sipped. This
product is suggested as both a shot and a drink mixer.
Blutonium – Blutonium is a cool looking product in a
category filled with look-alikes. It sells cold on a proprietary suction rack for easy placement in any store.
Blutonium Unconventional Energy is a great-tasting
energy shot that surprises customers who’ve thought
you have to wince a time or two to swallow an energy shot. Blutonium Peaceful Power is a caffeinated,
energy-charged shot with a dose of habenero to heat
things up.
Wet Planet – From the makers of America’s original
energy drink comes the Jolt Endurance Shot. True
to the Jolt name, the Jolt Endurance Shot contains
more “good stuff ” as compared to competing brands.
The Jolt Endurance Shot contains a heaping dose of
amino acids, electrolytes, vitamins and enzymes, plus
just the right amount caffeine. And unlike most other
energy shots, Jolt Endurance shots are sugar-free, so
there’s no crash after just a few hours.
Drinks that Work – Founded by ex-Odwalla employee
Brian Lovejoy, Drinks that Work is the maker of UPSHOT, a 2.5 oz. energy shot that claims to contain the
most boost of any product on the market, with none of
the excess liquid. In Christmas, 2007, Upshot Energy
was included in the gift bag for both the 700-strong
annual Los Angeles Police Department Dinner and
also the Christmas Party for the Marines at Camp Pendelton, Calif. Upshot was also included in the 2008
Oscar gift bag presented by People Magazine to those
Oscar attendees staying at the Four Seaons Hotel. So
far, Upshot boasts four flavors: Kola, Pomegranate,
Fruit and Mocha.
Bayshore Specialties Ltd. – Bayshore Specialties Ltd.
is the manufacturer of Fuel Cell, an exciting new 2
oz. fortified, sugar free energy shot. One Fuel Cell has
two and a half times the energy of an 8 oz. can of the
leading carbonated brand, with 0 calories and 0 carbohydrates, and no sugar crash.
Peptime – Peptime Energy Shots are in the warehouse and being distributed now. These shots are portable, do not need refrigeration, and come in three 2
oz. flavors, Tropical Orange, Cosmo Berry and Island
Lemon Lime.
On Go – On Go started in April 2007 with local distribution of its Lemon Lime flavor in the Midwest Region. In 2008, the company introduced Berry Blast and
began national distribution. Positioned as the “Better
for You” energy shot; consumers perceive On Go to be
“safer” or “less harsh” than the existing brands which
have a “truck driver look.” Its graphics appeal to hesitant first-time energy shot buyers and many women.
M-150 – The M-150 Girls will be dropping the flag on
The Long Beach Grand Prix on April 20 in California.
They will be cheering on race driver Cindi Lux, who’ll
be racing to the winner’s circle in the Speed World
35
Challenge GT Series race. Off the track, Cindi will
be visiting several local pubs during race week to meet
her fans and support M-150 retailers with additional
public appearances. The high energy M-150 Girls will
be along to provide patrons with smiles and samples
of M-150 non-carbonated energy drink. Cindi’s flavor
for hard driving and competitive energy make her the
perfect driver for M-150.
Bevolution Ammo – Bevolution AMMO has launched
their new product image and expanded marketing that
has moved beyond the extreme sport scene of paintball
in the United States and now includes convenience
stores, bars and an international presence in Europe
and South America. Bevolution AMMO was originally developed for the Military and is perfected for
your consumer. It is a great tasting “liquid power shot”
of caffeine for a burst of energy. If the 171 mg of caffeine is too much, the packaging includes a meter to
measure how much your consumer shoots or mixes
into their beverage of choice
Zantrex – Zantrex has launched its Ultra-Potent
Insta-Shot in two flavors: Orange Octane and Flash
Berry. The high-energy boost contains 8 calories, is
fast-acting, long lasting and has no crash. It is available
at Wal-Mart, GNC, Walgreen’s, Rite Aid, and other
retailers nationwide.
NVE Pharmaceuticals – NVE manufactures and co
packs unique custom beverages for nationally known
private label brands. NVE specializes in 20 oz vitamin
fortified waters, 8.4 oz carbonated energy drinks as
well as 2 oz and 3 oz vitamin and energy shots. NVE
stocks several size bottles and blows custom size and
shape bottles to the customer’s specifications. NVE’s
nationally-advertised 6 Hour Power Extreme Energy
Shot comes in 5 flavors; Lemon Lime, Very Berry,
Fruit Punch, Grape and Orange. The newest and hottest addition to the NVE line of energy shots is Java
Shot, a premium coffee shot in delicious Mojo Mocha,
Catapult Cappuccino and Hopped Hazelnut.
BDI Marketing – BDI Marketing’s Mini Thin Rush
was the exclusive energy drink for Winter Music Conference 2008. As such, the product was exposed to
more than 45,000 contemporary music professionals
and enthusiasts that attend the 300 plus events held
over the course of the 5 day festival. Exposure for Mini
Thin Rush included extensive sampling and signage
throughout the conference, exhibition space, advertising in WMC publications, as well as logo placement on
delegate bags, the WMC website, weekly email blasts
and more. Mini Thin Rush Liquid is a berry-flavored
sugar-free energy drink shot that contains less than one
gram of carbohydrates per serving.
36
ZANTREX -3 Insta-Shot
®
™
Item Description . . . . . Zantrex®- 3 Ultra Potent Insta-Shot™
Product UPC . . . . . . . 681168417017
Whse PK .
Vendor PK
Size . . . .
Count . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 12
. 216
. 2.0 oz. each
.1
Specs. KT 04 34MP216
34MP216. . 12 pk. – 6.125” L x 4.625” W x 4.25” H
1.26 lbs.
Master 18.75” L x 14.25” W x 9.13” H
36 lbs.
Cost/Ret of Each:
(Recommendations Only)
Retail
Single . . . . . . . . . . $3.50
2 Pack . . . . . . . . . . $6.00
6 Pack . . . . . . . . . . $16.50
First Available Ship Date - 1/15/2008
Supplier Name . . . . . . Basic Research®
Why Zantrex®-3 Insta-Shot™?
1)
Almost One Billion Zantrex-3 capsules sold (that’s Billion with a B).
2)
Approximately $120 million spent in advertising the brand.
3)
The number of impressions numbers in the Trillions.
4)
Zantrex-3 OWNS the 18-25 energy market.
5)
An established leader in the category. Top 3 SKU in Wal-Mart & FDMX channels for the last 4 years.
6)
$10-15 million in media planned for the first quarter of 2008.
7)
Tastes better… Don’t believe it? Try choking down some 5-hour Energy.
8)
Compared to 5-hour Energy, Zantrex-3 has double the B12 for better and more immediate energy boost.
9)
Zantrex-3 contains a proprietary combination of xanthine stimulants.
10) Great impulse item that can be placed anywhere in the store, from the front end to clip strips.
Basic Research® Top 25 Brands — IRI Weekly Flash
Total FDM 12 Weeks Ending 11/4/2007
Category-Weight Control/Energy Candy Tablets
* Hydroxycut rolls up all SKU’s
Dollar Sales
Unit Sales
Total
$77,399,496
3,089,078
ALLI
$29,481,152
500,638
HYDROXYCUT*
$6,321,946
247,818
®
ZANTREX - 3
$2,634,547
105,404
RELACORE®
$2,606,149
101,217
SLIMQUICK
$2,321,324
87,737
METABOLIFE
$1,921,435
94,204
MEGA T
$1,714,482
243,363
SMARTBURN
$1,388,039
50,174
AKÄVAR®-20/50
$1,337,159
34,896
Sizes Available: Single Serve, 12 pk, 6 pk and 2 pk
©2008 All Rights Reserved
BR11894
Order Today! Call:
1-800-403-3817
SPARKLING
JUICES
FIZZLING OUT?
NOT YET, SAY JUICE MARKETERS.
million and counting. That’s
where IRI put the total count for
the sparkling juice category, a number that has
to be discouraging for marketers in the once-hot
set of alternative sodas, not counting Wal-Mart
or convenience stores -- not exactly the intended
channels to begin with.
Or is it discouraging? Beyond those numbers
sit a variety of uncounted distribution channels
for the products, which continue to garner con-
verts behind the bar, at the sandwich shop and in
any number of high-end alternative channels.
Still, it’s hard to tell how much traction a
traditional retailer can squeeze from sparkling
juices. The category has felt lifeless since the
purchase of its top brand, Izze, by PepsiCo in
late 2006. As product quality improves – Fizzy
Lizzy and Orangina just rebranded, for example, while Apple & Eve has launched a product
aimed directly at the schools market – the bright
THE SWITCH
In 2007, The Switch rebranded with vibrant new graphics, juicy reformulations, and two new flavors: Kiwi Berry
and Very Berry. The company signed with 20 new distributors and 1,500 new schools. In December the Switch
unveiled it’s brand new web site, showcasing it’s bold
consumer promise of “100% OF WHAT YOU WANT”
and “0% OF WHAT YOU DON’T”, and inviting the
ever growing number of passionate Switch fans to have
a little fun with the brand. There are lots of great things
to win, including hats, t-shirts, itunes and iphones. One
on-line contest asks Switch fans to answer one of their
most frequently asked questions “Why is the ‘The’ upside
down”?, and the responses pouring in have ranged from
weird to outright hilarious.
lights seem to shine elsewhere, toward functional waters and teas.
Nevertheless, in the right product mix, sparklers are the way to go: a natural food chain in
Seattle, PCC, cut all High-Fructose Corn Syrup-enhanced products – opening the door for
juice-based altsodas. Cocktail culture shows no
sign of abating. And the entrepreneurial vacuum
left by the Izze purchase should keep the market
bubbly before it withers on the vine.
flavors, Gulf Coast Tangerine and Red Hill Pomegranate. Fizzy Lizzy boasts an average of 65 percent juice.
Fizzy Lizzy comes in a total of eight flavors (the others
are Costa Rican Pineapple, Mount Fuji Apple, Lone
Star Grapefruit, Yakima Valley Grape, Pacific Raspberry
Lemon, and Northern Lights Cranberry) and is available in select supermarkets, gourmet food stores, and
cafés across the country. The products entered several
new regional markets recently, including Fresh Market,
Whole Foods Rocky Mountain Region, UNFI Rocky
Mountain Region, Stop & Shop Supermarkets, Giant
Supermarkets, Bradley Distributing, Palo Alto Egg Distributing, Performance Beverage Distributors and Crown
Pacific Specialty Foods.
IZZE
SANPELLEGRINO
SanPellegrino has relaunched its sparkling fruit beverages
Aranciata and Limonata. They were reinvented, reformulated and repackaged to present consumers a refreshingly
all-natural beverage option. The product now contains
all-natural ingredients and a refreshed brand image.
APPLE & EVE
Apple & Eve recently announced the launch of Fizz Ed
– an all-natural fruit juice and sparkling water beverage
– offering an alternative to traditional sodas. Available
in four great tasting varieties – Red Raspberry, Orange
Mango, Pomegranate Cherry and Green Apple – Fizz Ed
contains none of the high fructose corn syrup or artificial
ingredients found in carbonated soft drinks. Each singleserving 8-ounce can contains a refreshing blend of 70%
pure fruit juice and 30% sparkling water.
Fizzy Lizzy
Fizzy Lizzy, a line of all-natural beverages consisting of
fruit juice and sparkling water with no added sugar or
corn syrup, recently re-launched its products with new
packaging, new flavor names, a new website and two new
38
In March, Izze Beverage Company added Sparkling Peach
to its line of sparkling juice flavors. It is an all-natural
blend of pure fruit juice and sparkling water with nothing
artificial. It is best served chilled. Because of its simple,
true-to-the-fruit flavor, Izze Sparkling Peach complements a variety of foods and, with its stylish packaging, is
also great for entertaining. With the introduction of Izze
Sparkling Peach, Izze also debuted new graphics on its 12
oz. four-pack carrier. The packaging is brighter for greater
impact on shelf.
SKYLARHALEY
SkylarHaley has released a new flavor in its award winning line of Essn beverages: sparkling mango and passion
fruit juice. A 100 percent juice drink, Essn is packed with
natural flavor and contains no preservatives, additives,
or artificial sweeteners. Packaged in 8.4 oz. bullet cans,
Essn juices are also offered in five other distinctive varieties: fuji apple, meyer lemon, blood orange & cranberry, minneola tangerine, and sparkling pomegranate
and montmorency cherry. These products are available
at select Safeway, Albertson’s, and Jamba Juice stores
and Kroger’s Southwest.
BEVNET.COM
AND
ZENITH
INTERNATIONAL
PRESENT
BEVERAGE ENTREPRENEUR FORUM
A day’s conference, workshops, and networking designed
for owners and managers of emerging beverage concepts
as well as investors, suppliers and customers looking for
the next big thing.
WHEN:
June 19, 2008
WHERE:
Le Parker
Meridien Hotel
New York City
MORE INFO:
www.bevnet.com/innobev
SPONSORED BY:
GERRY’S INSIGHTS
CROSS-POLLANATED
e’ve all seen the slow drip of companies
away from the Food Marketing Institute
Show in recent years, and it’s become easy to
view the two emergent replacement gatherings
of the food and beverage industry as polar opposites. In one corner, you have the place to be seen
for good-for-you foods and beverages, Natural
Products Expo West – “good for you, good for
business, good for everyone,” as its slogan had it
this year. In the other corner is the show for badfor-you items (well, Pepsi, for one, prefers to say
they’re “fun for you”), the National Association
of Convenience Stores show. Expo West products are all-natural, sometimes organic and generally not tainted by taboo ingredients, like highfructose corn syrup, that render them unworthy
of retailers like Whole Foods. By contrast, NACS
products generally taste better to the “average
American” and most likely sell in numbers that
are an order of magnitude greater.
Given these Manichean opposites, it was fascinating to attend the keynote speech by Michael
Pollan at this year’s Expo West, in Anaheim, Calif., in March. Pollan, of course, is the best-selling
author of such influential books as The Botany
of Desire and The Omnivore’s Dilemma. With
his excoriation of the industrial food business,
Pollan has been regarded by many in the natural
foods sector as a crucial ally. In many ways, he is.
But as the natural foods business has scaled up,
and as industrial players have bought their way
in, Pollan has been hard at work warning consumers to be skeptical about the claims aimed
their way by natural foods purveyors. After reading Pollan’s description, in Omnivore, of how
industrial producers define “free range” (a strip of
grass separated from an industrial barn by a tiny
door that the enclosed livestock almost never traverse), my wife and I stopped paying a premium
for free-range chicken.
Chalk up those activities, maybe, to unscrupulous food processors gaming the system. But
Pollan’s critique poses a challenge to natural
food purveyors in a far more fundamental way,
and that was the gist of his speech at Expo West.
If in some ways it was accusatory, his mild tone
and subtle sense of humor insured it was only
gently accusatory. But it had to be disquieting
to many in the audience who are used to feeling pretty good about themselves and what they
do for a living.
40
Pollan started by tracing the notion of “scientific eating” in America back to the mid-19th
Century and showed how it taps into a Puritan
heritage that has left us uncomfortable enjoying sensual activities, including eating. The past
century and a half has seen a succession of foods
and ingredients demonized, from the protein
that Kellogg sought to drive out of the American
colon with his newfangled breakfast cereals, to
the red meat against which Sen. George McGovern inveighed, to the current ostracism of
Omega-6 fatty acids as the enemy of “blessed”
Omega-3 fatty acids. Good nutrients need to
be promoted and evil nutrients must be purged
from the food supply.
The resulting emphasis on “nutritionism” has
diminished the role of food to a purely biological means of sustaining life rather than a cultural
means of attaining pleasure, community, family,
identity or ritual. That itself is a lot to lose, as
proponents of the Slow Food movement have
been tireless in explaining.
But there’s another implication. Foods reduced
to the role of “carriers of nutrients” essentially become “the sum of their nutrient parts,” Pollan
argued. “Since nutrients are invisible, therefore
I need experts to tell me how to eat,” much as
the priesthood mediates one’s relationship with
the deity. People today have “lost the ability to
eat without help.”
Pollan doesn’t think this emphasis on nutritionism works very well: not only does it ruin the
pleasure of eating but it’s often based on weak
science, since studying the effects of individual
nutrients in isolation overlooks food’s identity as
an extremely complex system.
Further, all the talk about nutrients gives an
enormous edge to those selling processed foods,
since they can rejigger foods to suit the latest
findings – or fads – disseminated by experts. Today that’s reflected in the endless references – in
store signage, product packaging and advertising
– to such nutrients du jour as antioxidants and
resveratrol. “Walk in the supermarket and you’re
besieged by biochemistry,” Pollan observed.
Or – though Pollan didn’t say it directly
– walk the aisles of Expo West, just a couple
of floors below.
So, are Expo West exhibitors still the good
guys? To the extent that they foster nutritionism, maybe they’re not. Pollan’s new book, In
Defense of Food, aims to swap the complexity
of nutritionism for the mantra: “Eat food, not
too much, mostly plants.” He brought a similar
message to his Expo West audience. “Don’t buy
foods that make health claims,” he advised. “The
healthiest food in the store is silent.” Delivered
at the Produce Show, that message doubtless
would be universally applauded. At Expo West
it was a clear rebuke to the marketing strategies
revealed on the show floor downstairs. Pollan still
managed to draw an ovation from his audience.
But it’s clear that those who like to revel in being at the “good for you” end of the food and
beverage spectrum have some hard thinking to
do about where their strategies are taking them
and their customers.
Longtime beverage-watcher Gerry Khermouch is executive editor of Beverage Business Insights, a twice-weekly e-newsletter
covering the nonalcoholic beverage sector.
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BRANDS IN TRANSITION
FIJI PLAYS A GREEN TUNE
BY MATT CASEY
n the world of premium bottled waters,
Fiji might as well be U2. Both imports hit
American shores with a splash, and put in years
of hard work earning fans before ascending
to their field’s top spot. Fiji entered in 1997,
and surpassed Evian as America’s numberone luxury water in 2006. Now Fiji seems to
define the category.
But there’s an unfortunate side effect to being
on top: eventually, you fall. And with consumers, environmentalists and politicians bristling at
the environmental ramifications of bottling and
shipping water from far-away places, Fiji could
be at risk to lose its audience. But instead of trotting out the same old songs, the master of the
premium bottled water category has rearranged
its set list to bolster its environmentally-friendly
credentials and please a crowd that thinks of
green as more than the color of money.
That crowd – those hip, young affluent trendsetters –initially came to Fiji because of the
water’s exotic source, attractive packaging and
conspicuous placement at celebrity-filled events.
The water earned a badge value that made
it an “attainable luxury,” according to Clarence
Chia, Fiji’s brand manager. But that was before consumers started calculating their carbon
footprints for fun.
Where consumers go, politicians are sure to
follow – especially when they have an easy target like bottled water. Local governments have
passed resolutions to no longer purchase the
product, and even levied a tax on it. The state of
Connecticut may end its bottled water contract
with Nestle in favor of installing more water
fountains in public buildings. At the national
level, two Democratic representatives asked the
Government Accountability Office to take a
hard look at the growth of the bottled industry,
which is booming while U,S, citizens enjoy what
the representatives called “one of the safest supplies of tap water in the world.”
But, of course, none of that would have happened if the press didn’t start the drumbeat first.
42
Newspapers, magazines and broadcast personalities have been questioning the rationality of
paying a premium for water that’s been shipped
half-way around the world when the same stuff
– or something very similar to it – flows from
every faucet in America at for pennies per gallon. National Public Radio’s On Point with Tom
Ashbrook dedicated half an hour to the practicality of bottled water in July. Marie Claire ran a
story in September that concluded that bottled
water is bad for the environment, and Time
published an article in August that agreed, adding that “Worst of all, the migration to bottled
water fosters a perception that tap water isn’t safe
or necessary. That’s dangerous at a time when
aging public-water systems need investment,
particularly as global warming increases the incidence of drought.”
Amid that atmosphere, you might expect the
company that headlines the premium bottled
water category to watch their sales sink and their
audience shrink, but that’s not the case. Fiji’s
volume has actually grown, according to Gerry
Martin, vice president of marketing at Massachusetts-based Polar Beverages Inc. Martin said
Fiji’s sales numbers crescendoed by 22 percent in
2007. He said the brand also increased its market penetration, and continues to win market
share from its competitors.
“They just seem to be doing a lot of the right
things,” Martin said.
Currently, Chia said, those “right things” center on improving the company’s already-positive
environmental profile.
But Fiji isn’t breaking any new ground by
touting environmental responsibility; it has become a popular theme in the beverage industry.
Coca-Cola pledged in February to recycle 100
percent of the aluminum used in their packaging. While that pledge didn’t include a time line,
the soft-drink giant backed it up with a trailer at
the Daytona 500 that educated NASCAR fans
about the benefits of recycling. Within Fiji’s own
category, Icelandic Glacial garnered the 2007
Best of BevNET award for the
bottled water category and a
distribution deal from Anheuser-Busch partly on the strength of
its carbon-neutral certification.
With everyone playing the same
song, Fiji decided to play it better.
“As of January fist 2008, we are
officially carbon negative,” Chia
said. In effect, for every five bottles
of water Fiji sells, the company
takes out of the atmosphere the
carbon emissions required to manufacture, fill and ship six bottles.
But, Chia said, the company’s efforts extend beyond carbon offsets.
The water company is preserving
51,000 acres of the Fijian rainforest, improving vital infrastructure
for the islands residents and aims
to use technological advancements
to reduce the plastic in their bottles
by 20 percent over the next three
years. Fiji is even exploring the use
of alternative energy and looking
to support bottle deposit bills in
the U.S. – something that strikes
a sour chord for most beverage
industry professionals, and is actively opposed by the American
Beverage Association.
All of these efforts stack on top
of what the company said it’s been
doing all along. Chia said Fiji has
always responsibly managed the
aquifer they draw the water from,
and Fiji’s squared bottles make
their shipments more efficient
by reducing the “dead space” in
freight carriers.
“We haven’t
been as vocal
in the past about everything we
do,” Chia said.
That relatively-quiet period is
over, Chia said. He said Fiji wants
to champion the cause of environmental responsibility for all companies across all industries – and
Thomas Mooney, Fiji’s senior vice
president of sustainable growth,
trumpeted the company’s efforts
last November on the popular blog
site, The Huffington Post. Mooney
wrote that consumers “expect us
to be environmentally sustainable,
and that is what we intend to do.”
While Mooney’s article might
have been the equivalent of screaming to an arena, the company’s
every-day efforts to get its message out have been far more lowkey. Each bottle of Fiji now carries a small green water-drop logo
on its front panel, and a summary
of the company’s efforts on the
back panel that leads customers to
fijigreen.com if they want more
information.
Whether consumers are reading
Fiji’s back panel and website, or if
they were in Mooney’s audience
when he trumpeted the company’s
intention, they seem to like Fiji’s
latest song. Fiji has remained on
top, and Martin said the bottled
water brand’s sales keep growing.
“We’re expecting a pretty robust
year for Fiji in 2008,” he said.
Bono, eat your heart out.
Opening day
is here and
Power Trip
Energy Drinks
are a sure hit!
· PT opens Alabama, over 500 retailers
· PT opens 4 new states, on pace for 31
states this year
· PT Vitamin energy drink has more vitamins
than any other leading energy drink
· PT completes 2008 Marketing Business plans,
distributors impressed
· PT specializes in flavored energy drinks that
taste great, Mango becomes a top seller
· Check out our all new website:
www.powertripbev.com
PTB, the difference is in our
unique products and our
distributor references
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
43
PROMO PARADE
Corona covers many fronts in ’08
Corona Extra and Corona Light are heading back to the beach with a new marketing campaign. Two new television ads
will capitalize on its “vacation in a bottle”
appeal. “Treasure Map,” and “Hotel Room,”
feature scenes that escalate to vacationers
enjoying Corona moments. Print ads debut
in lifestyle, entertainment and sports publications, and out-of-home executions will appear in all major markets.
Corona’s on-air sponsorship of the “Jimmy Kimmel Live” green room will also
continue in 2008. The partnership includes
prominent branding, live on-air bumpers,
and 30-second TV spots. Crown Imports
brands are also the exclusive beers available in the green room.
Corona will also sponsor the Kenny
Chesney 2008 “Poets & Pirates” Tour which
kicks off on April 18 and runs through
mid-September.
The urban radio program that launched in
“Get Some A”
2007 continues in major markets this year.
The radio spots pitch the Corona Commercial Getaway before launching into snippets
of contemporary recording artists’ songs,
including
Grammy-nominees
Raheem
DeVaughn and Emily King.
Three national television commercials
speak to Corona’s Hispanic market. Launching this spring, “Sports,” “Dance” and
“Foods” represent activities with which Corona believes Hispanics will identify. Outdoor executions take advantage of various
local and regional influences and landmarks
to target the local consumer, e.g. Southern
California, a Mariachi band is seen against
the iconic Hollywood sign; and in Miami, a
South Beach hotel showcases a Corona inspired neon façade. Corona will also execute
a radio campaign targeted to the Hispanic
consumer to support the brand in 2008.
For more information, visit www.crownimportsllc.com.
New POS for Whaler’s Rum Line
Heaven Hill Distilleries, Inc. has launched a new POS campaign to tout the Whaler’s brand.
The new POS “This Way to Paradise” has a tropical aesthetic. It will include a case card,
flavored shelf talker, original shelf talker, shelf strips, floor bin and table tent bar card.
As an evolving brand, this POS will distinguish the Whaler’s flavors from more traditional
Rums. Whaler’s legendary recipe hearkens back to when seafarers rattled vanilla beans in
empty rum bottles at sunset to entice migrating whales to their ships. The friendly whales
led them to the tropical haven known as Hawaii. There the sailors discovered the old rum
makers of Maui and were so impressed by the exotic taste of their rum that they called it
Whaler’s.
For more information on Whaler’s, visit heaven-hill.com
44
Albeit 147 years-old, Iron City Brewing Co.
still has a few new tricks up its sleeve. The
Pittsburgh-based brewery is launching a
new campaign to remind Pittsburghers to
“Get Some A” – its Augustiner brand of lager. The campaign encourages consumers
to upgrade their choice in beer to Augustiner. Pittsburghers can learn more about promotions by visiting a new web site, www.
GetSomeA.com.
In addition to the new Augustiner campaign, Iron City has also launched a new
corporate Web site, www.ironcitybrewingcompany.com, which showcases the brewery’s core brands (Iron City Premium Lager,
IC Light and Augustiner) and chronicles the
brewery’s history.
Each of the brewery’s core brands have
also undergone significant redesigns in labeling and case packaging.
‘Good to Go’ with Nutrisoda and Giant Bicycle
McCormick bottles eco-luxury
McCormick’s eco-luxury brand 360 Vodka is pioneering an innovative and eco-friendly approach to distilling and packaging spirits. Its
new advertising campaign reflects McCormick’s concern for environmental sustainability, while not compromising high luxury and
design. The “Blend In. Stand Out” campaign’s visual style is based
on the concept of “blending in” to the environment to minimize
one’s eco-footprint, and “standing out” from the ordinary. The campaign will consist of three ads featuring female figures that have effectively blended in to their natural settings. Images from the “Blend
In. Stand Out” campaign can be seen at www.vodka360.com.
McCormick Distilling was recently named a member of the Environmental Protection Agency’s Green Power Partnership and has
pledged to replace a portion of its electricity consumption with
green power to reduce the environmental impact associated with
conventional electricity use.
Nutrisoda, “the Good Soda” announces its partnership with the
world’s largest bicycle company, Giant Bicycle, to promote healthier
lifestyles.
As part of the promotion, ten Giant OCR Alliance 1 performance
road bicycles, valued at $1,500 each, will be offered as Grand Prizes, along with 100 Giant helmets for first prize winners, and 1,000
Nutrisoda-Giant water bottles for second prize winners. On-air radio
contests in select markets will give away 33 Giant FCR 1 fitness bicycles valued at $900 each. Additionally, Nutrisoda will give away
up to 1,000 Giant Boulder mountain bikes through local entries at
participating retailers in select markets.
Through the promotion, Nutrisoda hopes to introduce the fitness-oriented consumer to its line of eight vitamin and mineralinfused beverages.
At the heart of the Good to Go promotion is the Giant Code
Game, which runs from March 10 through May 31, 2008. Participating retailers will carry specially marked Nutrisoda four- packs on
www.nutrisoda.com/giant/ with the game. Consumers may also
enter the sweepstakes via mail-in entry forms found at participating convenience stores.
The integrated marketing campaign hit radio waves in twelve
markets, highlighted by on-air contests and bicycle, helmet and
water bottle giveaways. An online advertising and e-mail campaign
rounds out the promotion.
For more information, on both Good to Go partners, please visit
www.nutrisoda.com and www.gia ntbicycle.com.
Giant Moose Loose on Daytona Beach
Wanted: Giant 30-foot inflatable bottle of Moosehead Light
Last Seen: At a Daytona Beach, Florida promotion where the moose bottle
was allegedly stolen. Moosehead USA, the U.S. importing arm of Moosehead
Breweries, was launching its first U.S. product: Moosehead Light. Moosehead
Light is a smooth and refreshing premium light beer packaged in Moosehead’s
unique and recognizable green bottle. The on-site promotion location where the
moose bottle was last seen marked one of the first consumer-focused events in
support of the imported light beer’s U.S. availability.
REWARD: One-year supply of Moosehead Light to the person who brings the
bottle back to its home on the beach -- no questions asked.
Investigators expect that the moose bottle will be difficult to hide…
If you have information leading to the missing giant moose, please call the
Daytona Beach Patrol at 386-239-6414. To find out more about Moosehead, visit
www.moosehead.com.
45
CONVENTION SCRAPBOOK
EXPO WEST
Y
oga Moms, Good Lifers, Hippies,
Crunchies and Granola-Heads –
they were all there and they were all
selling at last week’s 2008 Natural Products Expo West in Anaheim, Calif.
The show was a clear demonstration
of the sway the natural foods movement has in this part of the country,
as it easily dwarfed the East Coast version of the show. Sitting and enjoying a
“John Daly” – one of his half-and-half
teas mixed with Tito’s vodka, Sweet
Leaf Tea founder Clayton Christopher
admitted that he’d even been willing to
miss his beloved South-by-Southwest
Music Festival. With buyers from behemoths like Target and Whole Foods to
tiny Midwestern natural food shops in
attendance, it was just that important.
And there are exciting new outlets
for these products, indeed, including
the revelation of a Whole Foods “energy set” that will include Hi Ball, Steaz
and Sambazon energy drinks, among
other potential candidates.
Team Crayons.
don,
Guru Energy - Catherinee Gun
kes
Wil
Eric Tomeo, Bernadett
Pure Cool - Patti Ann Kelly
Skylar Haley - Fernando Vasque
Cornelius Geary, Ken Cohen z,
d Berardi
HiBall - Dan Craytor, Alyssa and Tod
Lightfull Food
s - Susan Schn
46
eider
E
Fugate and
mergen-C - Ron
Bruce Sweyd
GUS - Steve Hersh and Crew.
NVE Pharmaceuticals - Richard Norowitz
Jones Soda - Erin Kliphardt and
Josh Groff
Tradewinds Tea - Steve Hatch
Vita Coco - Ira
Liran and Micha
el Goldstein
Carpe Diem - Amanda Winter
and Bree Warner
Maine Root - Matt and Mark Sei
ler.
T
lese
d Maura Motto
indy Lane an
he Switch - C
Hansens - Gregg Arends
47
Fancy Food
show preview
SCHEDULE
Saturday, April 26
NASF T
- 8 :00 A.M. – 6:30 P.M. – OTA Member Day
®
T
he 2008 Global Food and Styles Expo will
combine three shows to offer more than 56,000
products from over 1000 exhibitors in the fastest growing food and beverage segments – two
of which are of particular interest to the beverage
industry.
This year, the Fancy Food Show and All Things
Organic will focus on celebrity chefs and culinary
demonstrations including appearances by Food
Network star Bobby Flay. The combined shows
will feature dozens of beverage companies, with a
number of workshops on how to better sell natural
and organic products in your place of business.
• When:
April 26-29
• Where:
McCormick Place, Chicago Illinois USA
• Who Attends:
Supermarket retailers, wholesalers, distributors, international buyers and sellers come to
the Global Food and Style Expo. CEOs, owners,
managers – including everyone from buyers
and marketers to store managers.
• Who Exhibits:
Over 350 domestic exhibitors from around the
country. Most exhibitors are entrepreneurs who
developed the recipe and started the company,
so you can learn about the products and do
business with decision-makers. And at this
Spring Show, you’ll find many local Midwest
exhibitors with regional or ethnic products.
48
- 8:30 A.M. – 1:15 P.M. – Organic Store Tour
- 9:00 A.M. – 4:00 P.M. – Fancy Food Show Workshop: Fundamentals of
Specialty Food Retailing
- 10:00 A.M. – 4:00 P.M. – Fancy Food Show Workshop: The Basics: The
Business of Specialty Food
- 1:00 P.M. – 4:00 P.M. – Reaching Your Best Organic Target PreConference Workshop
- 1:00 P.M. – 4:00 P.M. – How to Efficiently Build Your Brand
Sunday, April 27
- 9:00 A.M. – 10:00 A.M. – Opening Keynote: A Morning With Bobby Flay
- 10:00 A.M. – 5:00 P.M. – Exhibits Open
- 10:30 A.M. – 11:30 A.M. – US Food Export Showcase Seminar:
Integrating Sustainability into Successful Businesses
- 10:30 A.M. – 12:00 P.M. – All Things Organic Conference Sessions: »
Organic 101: Overview of the North American Marketplace, Educated
on Organic: Your employees and your customers, Beyond the Boutique:
Organic in non-traditional retail environments, Making Organic
Produce Stand Out in Retail Settings
- 10:30 A.M. – 12 :00 P.M. – Fancy Food Show Seminars: Effectively
Reaching the LOHAS Consumer, Trading Up in Brands & Store Design
- 12:30 P.M. – 1:45 P.M. – All Things Organic Exhibitor Seminars
- 1 P.M. – 4:00 P.M. – Organic Fiber Tour
- 2:15 P.M. – 3:45 P.M. – All Things Organic Conference Sessions:
Organic 101: Navigating the Organic Treasure Map - Sourcing for All
Your Needs, Entering the North American Organic Market, Organic
Private Label: Views from around the table, Understanding and Selling
the Organic Message: Eco-labels, current research and health claims
- 6:00 P.M. – 10:00 P.M. – All Things Organic Welcome Party at the River
East Art Center
Monday, April, 28
- 8:30 A.M. – 9:30 A.M.– Keynote Panel: Global Retailer Forum
- 10:00 A.M. – 5:00 P.M. – Global Food & Style Exhibits open
- 10:15 A.M. – 4:00 P.M. – All Things Organic Culinary Demonstrations
- 10:30 A.M. – 12:00 P.M. – All Things Organic Conference Sessions: Or-
SCHEDULE (CONT’D)
EXHIBITORS
ganic 101: Organic on the Menu: Definitions for you and your
customers, How-To for Organic Exporters, Policy and Standards Update
Part 1 Food, Sustainability How-To for the Organic Industry: Creating
your business plan, Cutting-Edge Organic Fashion: Meeting the needs
of today’s eco-savvy consumers
- 10:30 A.M. – 12 P.M. – Fancy Food Show Seminars: Specialty Food
Magazine Presents: State of the Specialty Food Industry 2008, Taking
Your Products to the Marketplace
- 12:30 P.M. – 1:45 P.M. – All Things Organic Exhibitor Seminars
- 2:15 P.M. – 3:45 P.M. – All Things Organic Conference Sessions: Organic
101: Certifying Your Store: How and why to go organic for retailers,
Consumer Trends: The word on the street, Innovations in Food Safety
for the Organic Industry, Policy and Standards Update Part 2: Non-food,
Sourcing Tips for Organic Foodservice: From fine dining to the cafeteria
- 6:30 P.M. – 12:00 A.M. – OTA Annual Dinner & Awards Ceremony at the
Hyatt Regency Chicago
Tuesday, April 29
- 8:30 A.M. – 9:30 A.M.– Closing Keynote: John Moore: "The Bigness of
Smallness"
- 10:00 A.M. – 4:00 P.M. – Global Food & Style Exhibits open
- 10:30 A.M. – 12:00 P.M. – All Things Organic Conference Sessions:
Organic 101: Trends in Organic Non-Food Sectors, Diverse Approaches
to a Competitive Marketplace: Learning to thrive, Getting Started: Menu
building and trends for restaurants, International Standards and
Equivalency Update, Meeting Increased Demand with Integrity:
Sourcing organic locally, domestically, and internationally
Fancy Foods
2430
2442
2963
SENCE Worldwide
Switch Beverage
Aquadeco LLC
All Things Organic
3233
3301
3307.
3421
3452
3469
3477
3528
3530
3547
3570
3604
3662
3667
3847
3862
3870
3954
4045
4163
4171
Ciranda Inc
Tart Is Smart/TPG
Uncle Matt’s Organic, Inc.
Lakewood Organic Juices
Elite Naturel / Organic Juice USA Inc
Dream Foods International LLC
BrandStorm Inc
Global Juices and Fruits LLC
Eldorado Artesian Springs Inc
Frutzzo Natural Juice
Totally Organic Beverages
Zola Acai
Modmix
Bionade International GmbH
Horizon Organic
Honest Tea
Herbal Water, Inc.
Sambazon
Adina World Beat Beverages
Apple Rush Co
Purity Organics Inc
A NEW DAY HAS DAWNED
BREAKING BEVERAGE INDUSTRY NEWS DELIVERED DIRECT TO YOUR E-MAIL INBOX FROM
BEVERAGE BUSINESS INSIGHTS
s0UBLISHEDTIMESPERYEAR
ABOUTTWICEAWEEK
s)NSTANTEXCLUSIVENEWSANDANALYSIS
ONTHEMOSTVIBRANTSEGMENTSOFTHE
BEVERAGEINDUSTRYINCLUDING
q%NERGY$RINKS
q%NHANCED7ATERS
q4EAS#OFFEES
q&UNCTIONAL$RINKS
q(IGH%ND"OTTLED7ATERS
s.OHYPEANDREWRITTENPRESSRELEASES
BUTINSIDEINFORMATIONONNEWPRODUCTS
CONSUMERTRENDSMERGERAND
ACQUISITIONSDISTRIBUTIONMOVES
ANDOTHERACTIONABLEINFORMATION
sPERYEARATLEASTISSUES
TRY 8 ISSUES FREE!
WWWBEVINSIGHTSCOMPHEBEVINSIGHTS AOLCOM
49
PREVIEW
EXHIBITORS
FMI SCHEDULE
1688
A. Lassonde, Inc.
616
Adams Flavors, Foods & Ingredients
1797
Advanced Food Products
2058
Advanced H2O, Inc.
310
American Beverage Corp.
WHEN:
2134
Anheuser-Busch
May 4-7, 2008
311
Ardea Beverage Co.
2532
Coca-Cola North America
WHERE:
1893
CytoSport, Inc.
1052
Campbell Soup Company
2280
Classic Wines of California
MONDAY, MAY 5, 2008
1334
Disney Consumer Products
305
Evian North America
7:00am - 5:00pm
Registration
1734
Flavor Infusions, Inc.
WHY:
864
Glass Packaging Institute
Dozens of vendors and
suppliers will be on hand
to show retailers their hot
new products. Education
sessions will focus
on everything from theft
prevention to the future
of category management.
2190
Icelandic Glacial, Inc.
445
InZone Brands
1008
Kellogg Company
233
Kids Only, LLC
1943
Kraft Foods, Inc.
1281
Lt. Blender’s Frozen Concoctions
2152
Miller Brewing
602
NBI Juiceworks
2290
Niagara Bottling
2065
Nestle’ USA, Inc.
1875
Nature 101
871
Organica Beverages
1777
Reed’s
702
SG Beverage Solutions Inc.
1764
The J.M. Smucker Company
455
Talking Rain Beverage
911
Zipfizz
WHAT:
The FMI Show
and Marketechnics
Mandalay Bay
Convention Center
Las Vegas, Nevada
SATURDAY, May 3, 2008
8:00am - 5:00pm
Registration
SUNDAY, MAY 4, 2008
8:00am - 5:00pm
Registration
1:00pm - 4:00pm
Business Sessions
4:00pm- 5:00pm
Opening Keynote Session
8:00am - 11:00am
Super Session
8:00am - 11:00am
Business Sessions
11:00am - 5:00pm
Exhibit Halls Open
TUESDAY, MAY 6, 2008
7:00am - 5:00pm
Registration
8:00am - 11:00am
Super Session
8:00am - 11:00am
Business Sessions
11:00am - 5:00pm
Exhibit Halls Open
WEDNESDAY, MAY 7, 2008
7:00am - 12:00pm
Registration
8:00am – 9:00am
Closing Keynote Session
9:00am – 1:00pm
Exhibit Halls Open
50

aiming for profits with energy shots

Transcription

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