Beverage Spectrum May-June 2010

J u n e 2 3 , 2 0 1 0

GATORADEGETS BACKON THE FIELD

FRS Strikes a Deal

Can it get back in the game?

ENERGY DRINKS Get Nickeled and Dimed

BevNET LiveSummer ‘10

MAY-JUNE 2010vol. 8 :: no. 4

Beverage Spectrum (Postal Number 024-552) is published monthly with combined issues in January/February, May/June, July/August and November/December by Beverage Spectrum Publishing, Inc., a wholly owned subsidiary of BevNET.com, Inc. 44 Pleasant Street, Suite 110, Watertown, MA 02472. Periodicals postage paid at Boston, MA and additional mailing offi ces.POSTMASTER: Please send address changes to Beverage Spectrum Magazine, Subscriber Services, 44 Pleasant Street, Suite 110, Watertown, MA 02472

Columns

4 FIRST DROPOne Day, Many Questions

6 PUBLISHERS TOASTBarry Needs Topic, Talks to People

26 GERRY’S INSIGHTSTea’s Tough, But Here’s Some Potential

Departments

8 BEVSCAPE BUSINESSCEO’s on the Move

12 BEVSCAPE INNOVATIONGut Health Rumblings

16 CHANNEL CHECKCore Energy and its Derivatives

20 NEW PRODUCTSShipyard Wheat

64 PROMO PARADEWAT-AAH’s ____ Idea

Features

28 BRANDS IN TRANSITION: FRSFRS Makes its Move

32 BEVNET LIVEAn industry looking forward.

36 A SNOWMAN SHAPED-BOTTLE SIZE HOLEDistributors search for a successor to Muscle Milk.

42 COVER STORYGATORADE GETS BACK ON THE FIELDBut can they get back in the game?

52 THE NEW POWER SOURCE: CHEAP ENERGYEnergy drinks play the pricing game.

32

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42

THE FIRST DROP By Jeffrey Klineman

4.BEVERAGESPECTRUM.MAY-JUNE.2010

ONE DAY, MANY QUESTIONSWE LIKE TO THINK OF OUR just-concluded BevNET Live and Beverage School events as a chance for the industry to meet and exchange knowledge and support, but I’ve found that it also serves a bonus purpose: for me, it’s also become an important reference point for industry concerns and areas of inquiry.

Certainly, from Day One we plan many of the issues that we want to explore on panels and through presentations: case studies on the search for the ultimate sales and marketing formula, the recent envi-ronment and future outlook for building an entrepreneurial beverage enterprise, the answers to questions about what retailers, investors, and distributors are looking for. We think about ways to expose attendees to basic technical knowledge and deeper strategic decisions. We try to take into account their need for networking – and social lubrication.

But while it’s a fun event to plan and it is great when it all goes smoothly, it’s what we don’t anticipate that I fi nd equally exciting: exchanges take place be-tween panelists and the audience, someone “commits news” during a presentation, as we saw when Vita Coco announced its distribution deal with the Dr. Pepper/Snapple Group, and new lines of thought and questioning begin to take on a pres-ence of their own. Some of them can be effectively touched on as the event pro-gresses, but others merit ongoing explora-tion. I fi nd that we need to revisit them not just within the confi nes of the live event, but also as part of our commitment to providing the best possible informa-tion about trends in the beverage industry and how they affect the people who help make, market, and distribute them.

Here are some of the issues that seemed to bubble up, both as a result of questions directed to and among panelists, and those mentioned to me casually over the course of the event:

• The tension between beverage marketers and distribution organizations – particu-larly DSD – needs to be addressed in clear terms that take into account both of their costs and ultimate goals. The fallout from deals like the buyouts of Glaceau and Fuze, as well as the loss of fast-growing independents like Rockstar, Muscle Milk and Monster to Coke, Pepsi and Anheuser Busch is one that has led to mutual dis-trust at a point in time when, as many at-tendees pointed out, they need each other more than ever.

• The difference in expectations between investors and marketers as to what com-prises a successful beverage brand, both in terms of benchmarks and growth rates, as well as the ongoing role of the founder in that success.

• The long-term consequences that could result from, and the role of the beverage industry in, a rising tide of legislation aimed at taxing sugared beverages, regu-lating caffeine content, and redefi ning the concept of the nutritional supplement.

• Whether new “superfruits” or other high-end ingredients will be enough to drive consumers to purchase beverages after they’ve been disappointed by the promise of various products in the past – and whether the larger beverage realm is tipping back toward taste and value rather than effi cacy and prestige.

• The change in the way that distributors look at innovative non-alcoholic bever-ages in a world where they also carry hard alcohol, craft beer, chips and candy bars.

• The role of traditional and new media in getting consumers to try products, to keep coming back to products, and how much brands should spend in each area when it comes to activating those consumers – as well as how much they should spend activating channels via extras like slotting fees and sales incentives.

• Whether the industry will remain a vi-brant place for investment after the loss of a major tax break for venture capitalists.

As the year goes on, we will try to get at the answers to these questions as possible, from as many directions as we can – be it this magazine, our ever-expanding roster of online offerings, or, yes, this winter’s BevNET Live event in California. Each question that gets answered raises a host of new ones, after all, and we think we should get our best minds together to work on them. So we appreciate your feedback, your ongoing questions and an-swers, and we hope you’ll let us hear from you – and not just during these great get-togethers. Although we think you should keep coming to them, as well.

Thanks again for reading.

IS IT US, ORDID IT GET A LOT MORE

CROWDEDOVER THE LAST FEW YEARS?

*Nielson (3/20/2010)

The most trusted protein drink for nearly ten years.The Category Leader with 63+% share in US Food and

93+% share in US Convenience!*

©2010 CytoSport, Inc. Benicia, CA 94510 USA musclemilk.com

2494_ MM BevNet_IS IT US_v2.indd 1 5/20/10 2:26 PM

Michael Kirban, CEO Vita Coco, announces a distribution deal to open his BevNET Live Entrepreneur Case Study discussion.

IS IT US, ORDID IT GET A LOT MORE

CROWDEDOVER THE LAST FEW YEARS?

*Nielson (3/20/2010)

The most trusted protein drink for nearly ten years.The Category Leader with 63+% share in US Food and

93+% share in US Convenience!*

©2010 CytoSport, Inc. Benicia, CA 94510 USA musclemilk.com

2494_ MM BevNet_IS IT US_v2.indd 1 5/20/10 2:26 PM

BPA Worldwide Member, June 2007

Barry J. Nathanson [email protected]

Jeffrey Klineman [email protected]

Matt Casey ASSISTANT [email protected]

SALESJohn McKenna ASSOCIATE [email protected]

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Jeff Hyde ACCOUNT [email protected]

ART & PRODUCTIONMatthew Kennedy ART DIRECTOR

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BEVERAGE SPECTRUM PUBLISHING, INC.John F. (Jack) Craven [email protected]

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DO YOUR PART:PLEASE RECYCLE THIS MAGAZINE

6.BEVERAGESPECTRUM.MAY -JUNE .2010

PUBLISHER’S TOAST By Barry J. Nathanson

sheer joy of it. Beverages are an integral part of their lives, and they savor the experience. They identify with certain brands and are loyal to them. Their pas-sion was palpable.

Price isn’t a factor in single serve.Tourists, especially foreigners, stick to

the tried and true: as a rule, Coke, then Pepsi, to a lesser extent. They don’t pro-fess to want to try the more exotic brands offered in every retail outlet in the area.

Americans drank a broader array of products, with teas, especially the large pre-priced ones (yes, AriZona), dominating the selection. I saw an interesting assortment of pretty esoteric brands in their grips. It was encouraging for the little guys.

Water was the main beverage of choice. I asked everyone if the issue of PET, recycling and the environment was a fac-tor, and got an overwhelming no. Most thought the issues about water were ridicu-lous, and that of all beverage categories, they’re picking on the wrong one. They want their portability. On the other hand, I didn’t stop anyone drinking from a ther-mos, so there’s obviously a built-in bias.

Energy drinks prevailed in the 25 and under set, no surprise there.

Most drinkers, in any category, don’t believe functionality claims, but that doesn’t bother them, as long as it tastes good. They fi gure if it’s not bad for you, that’s okay. Marketers, you have a tall task to create believability.

Most of the people I polled were acutely aware of, and read Beverage Spectrum on a frequent basis. Naah, I just wanted to slip that in.

As the offi cer on horseback strode up to me to ask why I was stopping so many people, I decided it was time to close my research project. Survey complete. Column done.

I CAN HONESTLY SAY THAT ONE of the hardest parts of my job is coming up with an idea for my column. It’s been 18 years and counting, after all. I’ve written about innovation, distribution, shelf sets, fi nancing, packaging and mar-keting. I’ve visited every retail channel to see what makes them tick. I’ve covered incredible personalities, dismal failures, my favorite “what were they thinking” concepts and formulations, the Yankees, Woodstock, and, most recently, the bane of Blackberries. I could go on and on. As my deadline nears, the subtle, then overt emails come from Jeff Klineman, our editor, that my submission is due. So where do I go for inspiration? I decided to take it to the streets.

Yesterday afternoon, I headed up to Times Square, the crossroads of the world, to see what people were drinking and why. Mind you, this was an unscientifi c study, but desperate times merit desperate measures. I spent four hours stopping well over 100 beverage consumers to see what mattered to them. Here are some of the thoughts and observations that stuck out.

First and foremost, they drink for the

COLUMN FATIGUE

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Advocates and opponents of beverage taxes busied themselves in May, with three tax proposals dead, one surfacing, one returning, and one thought-dead back on its feet.

N.Y. Gov. David Paterson resurrected his proposal with a revi-sion that would create a sales tax exemption for diet sodas and bottled water while leaving in place a tax of one penny-per-ounce on full-calorie beverages. Meanwhile, environmentalists in Mas-sachusetts renewed a push to extend the state’s deposit law to bot-tled water, and Rhode Island’s House Finance Committee heard an argument in favor of a soda tax.

Each of those measures will likely meet fi erce opposition from bever-age industry leaders. In May, the industry stifl ed tax proposals in Balti-more, Washington D.C. and Philadelphia, where a nearby bottler offered Mayor Michael Nutter $10 million to take his tax proposal off the table. He refused, but his soda tax push failed when the City Council voted to ap-prove a budget that omit-ted the measure.

"Today the big soda lobby won and average Philadelphians lost," Nut-ter declared.

Even with its recent run of success, the beverage industry should expect more tax battles. First Lady Michelle Obama recently en-dorsed soda taxes, and Washington D.C.’s City Council is now considering an alternative measure that would eliminate a sales tax exemption for soft drinks.

Tax Tussles

Philadelphia Mayor, Michael Nutter, has had little success with beverage tax proposal.

Wall Street and the economy have buffeted the beverage segment recently, but according to Goldman Sachs, the storm may calming.

The brokerage fi rm pre-dicted in May that sales of both alcoholic and non-alcoholic drinks will rise in the second half of the year. It upgraded PepsiCo and Hansen Natural Corp. to “buy” status, and bumped Jack Daniels’ owner Brown-Forman Corp to “neutral.”

“We are now increasingly constructive on the [consumer] staples sector, as we see potential recovery in the staples demand for the second half of 2010,” a Goldman analyst wrote in a note to investors. The analyst added that Coke and Pepsi’s bot-tler acquisitions could help both compa-nies pursue value over volume.

But Wal-Mart may hamper those ef-forts. In a play to pull more customers into its stores, CNBC reported that the retailer has cut prices on Coke, Pepsi and DPSG products. While those cuts came at the expense of its own margins instead of those of the beverage giants, Consumer-Edge analyst Bill Pecoriello said that other grocers could respond in-kind, leaving the big three struggling to raise prices.

RJM Distributing, Inc., exclusive licensee, manufacturer and distributor of Killebrew Root Beer and Cream Soda, an-nounced an endorsement agreement with Hall of Famer and Minnesota Twins slug-ger Harmon Killebrew.

As part of the agreement, the base-ball veteran will endorse and market the brand’s root beer and cream soda products through personal appearances, advertis-ing, point-of-purchase materials and pack-aging. Killebrew beverages also secured

Market Outlook

Killebrew Gets Killebrew

serving rights for Minnesota Twins home games at Target Field.

"The Twins got involved with the re-branding of Killebrew Root Beer because Harmon's name is synonymous with the great history and tradition of our orga-nization," said Twins Vice President Eric Curry. "Having Killebrew Root Beer avail-able to our fans at Target Field seems only natural since it is also brewed right here in Twins Territory."

SHOTSSHOTS

BB BEVSCAPE BUSINESS • The latest news on the brands you sell.


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Big Beverage to Help Cut 1.5 Trillion CaloriesA coalition of food and beverage companies including Kraft, The Coca-Cola Co., Inc., PepsiCo and Nestle USA pledged cut 1.5 trillion calories from the American prepared food market by the end of 2015.

The Healthy Weight Commitment Foundation, in cooperation with First Lady Michelle Obama and the Partnership for a Health-ier America, said it intends to achieve and maintain that decrease by developing lower-calorie options, changing existing recipes and reducing portion sizes of single-serve products.

Under the terms of the agreement, the HWCF will report its progress annually to the Partnership for a Healthier America. The Robert Wood Johnson Foundation will also support a rigorous, independent evaluation of the Healthy Weight Commitment Foun-dation's efforts and publicly report its fi ndings.

Evolution Fresh Adds Investment

Turnover at the Top

Another fi scal quarter, another set of changes in the CEOseat at a pair of innovative beverage companies, mix1 and Steaz.

Despite being in a growth mode, Bob Pinkerton, the CEO of mix1, has been replaced by the company’s board of directors. “It’s a good brand; it’s growing fast, but it should be growing faster,” said John Burns, general partner of the Highland Consumer Fund, a minority investor in the company.

Burns himself has taken over as acting CEO, commuting weekly to mix1’s headquarters in Boulder, Colo. from his home in Bos-ton. He said the company has been hiring and has grown nearly 50 percent in the last 12 months, but that the marketing message behind the unique protein and fi tness product needed to be clearer. Co-founders Dr. James Rouse and Greg Stroh remain key parts of the sports-oriented marketing focus, Burns said, while Pinkerton remains an investor.

Meanwhile, Steaz co-founder and CEO Eric Schnell also left his company following changes in its investment structure. While sales of the company’s tea-based products have grown recently, investors led by the fi rm Inventages had tightened terms for rein-vestment and forced cost cutting at the business.

Jim DePietro, who joined Steaz as its COO in 2008 after a ca-reer with Unilever, replaced Schnell, and the company promoted co-founder Steven Kessler to president.

Following his departure, Schnell took a position at consumer merchant banking fi rm 6Pacifi c, where he will act as an advisor and operating partner focusing on investing in beverages and natu-ral products.

Evolution Fresh announced a partnership with investment fi rm Fireman Capital Partners to fuel an American revival of fresh-squeezed, organic juices.

Naked Juice and Odwalla both lost their way after PepsiCo and The Coca-Cola Co., Inc. purchased them, said Shawn Sugarman, CEO of Evolution Fresh and former president of Odwalla. Both brands now save costs by using purees instead of whole fruits and vegetables, and Sugarman said that switch created space for a new super-premium juice (Evolution calls itself “ultra-premium”). But, he said, the company will face the same challenges as its predecessors.

“It’s not hard to make really good juice; it’s just hard to resist compromising your approach,” Sugarman said.

Fireman Capital’s investment, he said, will help the company overcome that challenge.

As the brand grows, its resemblance to the early days of Naked and Odwalla may continue: founded by Naked Juice founder Jim-my Rosenberg, Evolution Fresh, already hired a number of Odwalla veterans, Sugarman included. The company will likely expand its distribution in the footprints of the two incumbent brands, Sugar-man said, and may look to old Naked and Odwalla hands to help it.

“There’s a lot of people that built the two incumbent brands over the years,” Sugarman said. “Some of them are wanting to do it again. We’re fi nding that there are a lot of people that want to join us and make this happen.”

The latest news on the brands you sell.

MAY-JUNE.2010.BEVERAGESPECTRUM.11

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Big Beverage to Help Cut 1.5 Trillion Calories

BI BEVSCAPE INNOVATION • Product development & marketing news



More than half of people that think they are lactose intol-erant may be wrong, according to a study published in the jour-nal Clinical Gastroenterology and Hepatology.

The researchers fed subjects who identifi ed themselves as lactose intolerant a lactose so-lution equivalent to a quart of milk. Only half suffered stom-ach pain or fl atulence.

The researchers speculated that those that had believed they were lactose intolerant, but weren’t, could be suffering from irritable bowel syndrome. Or, the group said, mistaken test subjects may have concluded that they were lactose intolerant after simply over-indulging in milk products on some occasion.

Good news: a new study suggests that high daily intakes of coffee or soft drinks may not increase con-sumers’ risk for colon cancer. Bad news: antioxidants, a key modern functional beverage ingredient, could cause cancer in high doses.

Researchers at Cedars-Sinai Heart Institute reported that they added mega-doses of antioxidants to tissues be-ing grown in a lab in an attempt to prevent mutations, and – unexpectedly – got more.

“Antioxidants suppressed DNA damage at low concen-trations,” the researchers reported “but potentiated such damage at higher concentrations.”

As a result, the group theorized that there is an opti-mal dose of antioxidants like vitamins A, C and E. The FDA’s recommended daily allowance is safe, they said, but consumers might want to cancel any planned IVs of POM Wonderful.

In an unrelated report, Dr. Xuehong Zhang and his col-leagues at the Harvard School of Public Health reviewed 13 studies that analyzed a total of more than 730,000 people, of whom more than 5,600 developed colon cancer.

Those that drank more than six 8 oz. cups of coffee, or more than 18 oz. of traditional soft drinks daily, shared the same colon cancer risk as the general population, said the study published in the Journal of the National Cancer Institute. Heavy tea drinkers – those that drank more than four 8 oz. cups of non-herbal tea per day – suffered a slight uptick in their risk, but the researchers said the sample included only a small number of such drinkers.

Are We More (Lactose) Tolerant Than We Think?

Cancer Connections

American interest in gut-health productshas spiked, according to Innova Market In-sights. The new product-tracking fi rm reported more than 4,000 global products launched on a gut or digestive health platform in 2009, double the 2,000 it identifi ed in 2004.

American products accounted for 28 per-cent of last year’s launches, the fi rm said, with stateside introductions more than tri-pling since 2005. American interest in the segment jumped notably, Innova said, after Danone repositioned Activia to more clearly call out its gut-health boosting properties.

While probiotic yogurts and dairy drinks still lead the fi eld, Innova reported that gut health claims have extended to chocolate bars and frozen yogurts.

“Outside the US, there has been an even wider range of activity, with novel prod-ucts appearing alongside development of existing brands and concepts,” the group wrote.

Innova added that the “gut health” fi eld remains diffi cult to de-fi ne. The segment includes high-fi ber foods in addition to probi-otic foods, and, many probiotic products have focused on immune defense as much, if not more than, digestive health. Estimates now tend to put the global market for gut health foods and drinks at over $10 billion per year.

Gut Health Rumbles

American interest in gut-health productshas spiked, according to Innova Market In-sights. The new product-tracking fi rm reported more than 4,000 global products launched on

Product development & marketing newsProduct development & marketing news




Ingredient Update

Your products’ package – with the aid of a smart phone – could create a window to a new, virtual marketing channel. Sticky-Bits allows iPhone and An-droid users to attach video, photos, text or audio to real-world universal prod-uct codes. The program geo-tags the content and attributes it back to the user’s social media profi le, allowing later users to fi nd the attached media and continue the conversation. StickyBits will let brand owners track where and when people scan their products and will also let them monitor and manage attached conversations.

In more traditional social marketing, a report from eMarketer and Morpace found that referrals from Facebook friends made two thirds of American users more likely to patronize the recommended brand or store. The study also found that 41 percent of Facebook users connect to fan pages to show off their favorite products – though 37 percent joined those pages due to coupons or discounts.

Regardless of how they join, each Facebook follower is worth about $3.60, accord-ing to social media specialist Virtue. The fi rm determined that, while individual brand success varied, a Facebook fan base of 1 million averaged annual brand impressions equal to a $3.6 million traditional online media campaign.

Those traditional online campaigns have become more effective than television, according to The Nielsen Company. The advertising research fi rm, in cooperation with Microsoft, reported that video ads shown during full-episode, online TV shows achieve better results than on-air TV ads. Online ads boasted a 65 percent general recall compared to 46 percent for TV ads. The report added that the most effective way to air a commercial is both online and on the air.

E-Marketing Update

Synergy Flavors, Inc. earned organic certifi cation for its manufacturing facility near Chicago, its second in North America.

DSM Nutritional Products announced a clinical trial that showing that six months of using geniVida Bone Blend increased bone mineral density by up to 3.4 percent in post-menopausal women.

BI Nutraceuticals announced the avail-ability of two new ingredients: quinoa, a gluten-free grain rich in protein, fi ber, and micronutrients; and maqui, an antioxidant-rich, dark-purple berry native to Chile.

Sensient Technologies Corporation announced a $16 million investment in its Color Group headquarters site in St. Louis, where it will construct a 25,000 square foot facility dedicated to natural colors production.

TIC Gums announced new stabilizers for dairy and alternative formulations for protein beverages.

Suntava announced a purple corn con-centrate that can be used to formulate Chi-cha Morada and other fruit and vegetable fusion drinks.

WILD Flavors, Inc. announced new fl a-vors developed to pair with coconut water – including mango, passionfruit, acai ber-ry, strawberry guava, lime citrus, tropical pineapple, and pomegranate berry. WILD also designed a fl avor to make coconut water taste fresh, and developed marketing concepts for the trendy ingredient.

Product development & marketing newsProduct development & marketing news

Ingredient Update

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CC CHANNEL CHECK •


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

SPOTLIGHT CATEGORY

ENERGY DRINKS

TOPLINE CATEGORY

VOLUME

BEER$21,949,393,000

BOTTLED JUICES $5,100,080,000

BOTTLED WATER$7,547,799,000

ENERGY DRINKS $6,115,540,000

SPORTS DRINKS$3,450,722,000

TEA/COFFEE$2,804,891,000

52 Weeks through 5/16/2010

52 Weeks through 5/16/2010

5.3%

4.9%

-6.9%

-4.6%

-3.4%

-3.0%

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

Top energy brands remain strongest at their core. While Monster’s flagship grew by 11 percent, Java Monster dropped by 8.6 percent. Other Monster spinoffs slipped as well. Sales of Rock-star’s core product edged downward amid distribution turbulence, but the brand’s Juiced and Roasted extensions plummeted. Pep-siCo’s AMP (which, arguably, no longer has a core) proved an exception. It lost sales at double-digit rates on five SKUs, includ-ing its top seller. Meanwhile, Red Bull, still the top-selling energy brand, markets just two varieties: Regular and Sugar Free.

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

Brand Dollar Sales Change vs. year earlier

Red Bull $2,041,780,000 6.1%

Monster $988,379,400 11.2%

Rockstar $387,993,700 -2.9%

NOS $194,639,400 14.4%

Java Monster $170,844,300 -8.6%

Doubleshot $155,569,600 34.0%

AMP $142,025,600 -12.5%

Monster XXL $115,926,800 -51.1%

Monster Mega $115,731,700 N/A

Full Throttle $115,508,500 -4.6%

Monster Khaos $66,241,300 -12.2%

Rockstar Punched $63,427,220 9.1%

Rockstar Juiced $57,950,540 -34.2%

AMP Overdrive $55,204,540 -10.0%

Full Throttle Blue Demon $48,314,360 -15.8%

SoBe No Fear $45,178,230 -30.4%

Monster Assault $44,540,540 -4.8%

Monster Nitrous $41,953,310 N/A

AMP Energy $31,060,230 10.8%

Venom $30,376,360 26.9%

Robertet is a closely-held multinational company whose vision islong-term and whose technologies are focused on the flavors and aromasthat nature always intended. For all of your flavor needs, call Robertet at732-981-8300, or send an email to [email protected].

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1217 Robertet-BevSpectrum-JulyAug09.qxd:Layout 1 6/24/09 10:59 AM Page 1



Gatorade $1,102,447,000 -16.8%

Powerade ION4 $531,066,900 798.2%

G2 $325,098,700 -2.4%

Gatorade Perform $282,898,700 N/A

Gatorade Frost $197,091,400 -15.6%

Gatorade Fierce Bring It $149,782,300 520.7%

Gatorade Cool Blue $128,422,000 N/A

Powerade Zero $118,741,600 34.8%

Gatorade Rain No Excuses $115,444,700 1,076.0%

Gatorade Tiger Focus $91,898,140 N/A


AriZona $619,562,400 7.6%

Lipton $327,612,100 -7.9%

Lipton Brisk $191,613,700 34.4%

Snapple $185,422,100 2.2%

Lipton Pureleaf $160,505,600 8.3%

Nestea $118,020,100 5.3%

Diet Snapple $116,582,500 12.7%

Gold Peak $76,357,960 33.1%

AriZona Arnold Palmer $71,298,130 132.7%

Diet Lipton $66,387,440 2.5%


Bud Light $5,225,654,000 -3.7%

Budweiser $2,180,712,000 -8.6%

Coors Light $1,847,187,000 1.2%

Miller Lite $1,685,467,000 -6.1%

Natural Light $1,128,335,000 7.1%

Busch Light $728,907,700 9.2%

Busch $688,241,200 2.8%

Miller High Life $511,199,200 3.5%

Keystone Light $478,671,400 17.4%

Natural Ice $343,533,400 3.8%


Corona $928,825,100 -9.1%

Heineken $582,087,200 -8.7%

Modelo Especial $252,031,000 4.9%

Tecate $178,106,100 -7.6%

Corona Light $169,846,400 -2.0%

Labatt Blue $118,202,300 -3.4%

Labatt Blue Light $98,159,700 5.8%

Heineken Light $92,246,880 -14.6%

Dos Equis XX Lager $87,169,130 22.7%

Stella Artois $78,214,400 9.5%


5-Hour $613,274,800 48.3%

Red Bull $35,978,940 50,466.4%

Stacker2 6 Hour Power $28,932,270 -1.2%

Monster Hitman $18,711,810 63.5%

NOS $9,121,323 -51.9%

Rockstar $6,012,033 -22.6%

Redline Power Rush $4,703,991 13.8%

Nitro 2 Go $4,033,767 -24.7%

Private Label $3,757,425 360.7%

Extreme Energy $3,702,738 -67.9%

SOURCE: Symphony/IRI Total food/drug/c-store/mass excluding Wal-Mart. 52 Weeks through 5/16/10






CC

SPORTS DRINKS

RTD TEA ENERGY SHOTS

BOTTLED WATER

IMPORT BEER DOMESTIC BEER

HOT! Gatorade Rain No Excuses

HOT! AriZona Arnold Palmer HOT! Red Bull

HOT! SoBe Life Water

HOT! Dos Equis XX

NOT! Heineken Light

NOT! Extreme Energy

NOT! Budweiser

NOT! Lipton

NOT! Gatorade NOT! Vitaminwater

HOT! Keystone Light


Private Label $938,516,200 8.4%

Vitaminwater $719,968,600 -22.3%

Aquafina $713,022,100 -10.1%

Dasani $638,685,700 -16.0%

Poland Spring $355,944,200 -8.0%

Nestle Pure Life $259,432,000 36.3%

Smartwater $240,800,800 32.1%

SoBe Life Water $239,329,400 85.1%

Deer Park $230,923,200 -6.6%

Arrowhead $215,156,300 -17.6%


NP NEW PRODUCTS • The newest options for cooler and shelf.

CSD

R.W. Knudsen Family’s Spritzers reappeared on shelves this spring. The new Spritzers contain 70 percent to 80 percent juice, a reduction from the original 100 percent juice formula. This adjustment, in combination with the brand’s transition from 12 oz. cans to 10.5 oz cans, decreased the calories per can from about 200 to 120 or 110. The new can design showcases real fruit and lively colors. The new Spritzers come in 4-packs with a recyclable paper wrap, replacing the former 6-pack unit. Spritzers are sold at natural and traditional grocers nationwide for $3.99 per 4-pack. Flavors include Mango Fandango, Tangerine, Red Raspberry, Jamai-can Lemonade, Black Cherry, Boysenberry, Grape, Ginger Ale, Lemon Lime, Cranberry, Mandarin Lime, Strawberry, Orange Pas-sionfruit and Peach. For more information, call (303) 449-2108.

Fizzy Lizzy announced a re-branding of its sparkling juice line, with a new logo and graphics for its packaging as well as its website. The revised packaging emphasizes a clean, simple and fun look. The new labels and 4-packs hit stores starting in May. Fizzy Lizzy consists of fruit juice and sparkling water with an average of 60 percent juice per bottle. The line includes eight fl avors and is sold in select grocers, health-food stores, restaurants and cafes across the country. For more information call (800) 203-9336.

IZZE Beverage Company introduced lim-ited edition SKU, IZZE Sparkling Guava. Made with 70 percent juice and a splash of sparkling water, Sparkling Guava contains no refi ned sugars, caffeine, preservatives or artifi cial fl avors. Sparkling Guava’s 4-pack packaging promotes awareness for IZZE’s non-profi t partner, Global Education Fund. Sparkling Guava is available exclusively in Whole Foods Market nationwide for a suggested retail price of $1.00 to $1.69 per bottle or $3.99 to $5.99 per 4-pack. Guava will only be around for the summer. For more information, call (310) 248-6119.

BEER

Shipyard Brewing Company announced the release of Shipyard Wheat Ale. This new beer is available year-round in 6-packs, 12-packs and on draft. Shipyard Wheat Ale is a crisp American style wheat ale with a

soft golden color and nice copper hue. This fi ltered wheat beer is 4.5 percent alcohol by volume and is made with 60 percent Malted Wheat and 30 percent Pale Ale Malt. There are touches of Light Munich and Cara-munich Malts and a hint of Crystal Malt. This beer is subtly hopped with Glacier and Hallertau Hops and a new aroma hop called 04-188. Shipyard Wheat Ale is available across the Northeast and Florida at a typical retail price of $9.99 per 6-pack, and distribu-tion is expected to expand to other markets throughout the year. For more information, contact Shipyard at (207) 761-0807.

SPIRITS

Southern Comfort announced new la-beling that reasserts its New Orleans provenance. Individual design cues have been created for each product within the Southern Comfort portfolio - 70 Proof, 100 Proof, Special Reserve, newly introduced Southern Comfort Lime and each Ready to Serve Cocktail. The neck wrap features an award-winning illustration designed by Christian Northeast. The iconic shield on the front of the bottle is the new shorthand for the brand serving as a simplifi ed, con-temporary badge. It features the fl eur de lis and fi ligree reminiscent of the wrought iron balconies often found in New Orleans. The new package was designed by Cue, a brand design company based out of Minneapolis, Minn., and is now hitting shelves globally with a suggested retail price of $16.99 for Southern Comfort 70 Proof 750ml. For more information, call (502) 774-7643.

Phillips Distilling Company introduced UV Coconut Vodka. UV Coconut Vodka is an all natural coconut fl avored vodka that’s distilled four times, carbon fi ltered and sweet-ened with cordial-grade cane sugar from Florida. UV Coconut Vodka is available in all normal bottle sizes. The suggested retail price for the 750ml is $12.99. This product is cur-rently available across the U.S. and Canada. For more information, call (612) 677-1717.

BACARDI launched two new cocktail addi-tions to its ready-to-drink portfolio: Bacardi Classic Cocktail Piña Colada and the Bacardi Classic Cocktail Strawberry Daiquiri. Both pre-mixed cocktails are made with Bacardi Superior Rum. The translucent 750 ml and 1.75 L bottles contain 15 percent ABV and have a suggested retail price of $12.99 and

The newest options for cooler and shelf.

©2010 American Beverage Corporation Verona, PA 15147 • 800-245-2929 x6113 • dailysreadytodrink.com • 5% alc/vol (10 proof) PLEASE DRINK RESPONSIBLY

Innovation

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14372 Dailys Pouch BEV SPEC Ad.MECH:Layout 1 4/1/10 2:13 PM Page 1


NP

$19.99. The launch will be supported nation-ally with consumer and trade print advertis-ing, digital, POS, sampling events and PR. For more information, call (786) 264-8421.

Dirty Blonde Champagne Cocktails launched in Los Angeles with Raspberry Flirtini and Peach Passion Bellini flavors. Dirty Blonde Champagne Cocktails are served in clear, sleek, 187 ml bottles, sold in 4-pack totes, and contain 12 percent alcohol by volume. Each 4-pack retails for $13.99 and is cur-rently available for purchase at BevMo. For more information, call (310) 858-2222.

Haamonii Shochu (soju) mixes like vodka but with fewer calories and half the alcohol. A two-ounce serving of Haamonii is approxi-mately 70 calories and 22 percent alcohol, compared to as much as 120 calories and 30-50 percent alcohol for vodka. Haamonii is available in two varieties: Haamonii Original and Haamonii Lemon. Haamonii is currently available on premise in San Francisco, Los Angeles and Atlanta. Consumers can now order Haamonii online, and the brand has secured retail distribution in California and Atlanta with New York soon to follow. For more information, call (323) 337-9042.

JUICE

New Odwalla Strawberry Protein Monster packs 25 grams of protein in every bottle. Organic Soymilk and milk protein provide the protein while strawberries deliver a fresh berry flavor and aroma. Strawberry Protein Monster also delivers Vitamins B6, B12, cal-cium and zinc. Odwalla Strawberry Protein Monster is available in 450 mL (15.2 oz.) recyclable plastic bottles and can be found in natural food stores, select supermarkets and specialty outlets throughout the country. For more information, call (718) 746-0087.

Joint Juice introduced the reformu-lated Joint Juice Supplement Drink. This 20-calorie, juice-based beverage combines a full day’s supply of Glucosamine with Chondroitin, vitamin D3, vitamin C and antioxidants. Joint Juice Supplement Drink now features Cran Pomegranate and Blueberry Acai flavors in resealable bottles. Joint Juice Supplement Drink is nationally available in the vitamin aisle at warehouse clubs, mass merchandisers, grocery stores, and drug stores. The suggested retail price

is $5.99 per 6-pack of 8 oz. bottles and $16.99 per 30-pack (club stores only). For more information, call (415) 392-2232.

WINE

Woodbridge by Robert Mondavi intro-duced California Brut Sparkling Wine. Woodbridge by Robert Mondavi Brut Spar-kling Wine displays green apple, ripe pear, and bright citrus notes with a toasty finish. The Woodbridge by Robert Mondavi Brut Sparkling Wine will be available nation-ally beginning June 1, 2010. The suggested retail price for 750 ml is $9.99. For more information, call (415) 978-9909.

Lualle, LLC introduced BonBlaze Wine Sorbet. Available in Natural Cranberry and Natural Blueberry varieties, BonBlaze uses real fruit and is sold non-frozen in 1 L TetraPrisma. Each package, containing 12.5 percent alcohol by volume, will be available at $10.99 retail. For more information, call (347) 668-7460.

ENERGY SHOTS

Stacker2 announced new Stacker2 Vitamin Shots. Stacker2 Vitamin Shots deliver essen-tial vitamins in a 2 oz. shot that contains zero sugar and zero calories. Vitamin Shot Hang-over Helper is a blend of B vitamins, milk thistle, green tea, dandelion and ginger root in a Detox Lemonade flavor. Vitamin Shot Self Defense contains B vitamins, vitamin C, Echinacea, zinc and other herbs in an Intense Orange flavor. Vitamin Shot Joint Fit com-bines glucosamine, chondroitin and vitamin D with a Sweet Cherry flavor. Vitamin Shot Rest & Relaxation is a fusion of valerian root extract, passion flower extract, L-tryptophan and chamomile extract in a Blissful Blueberry flavor. Vitamin Shot Prolong Pleasure is a mixture of horny goat weed, ginkgo and maca root in a Tropical Passion flavor. For more information, call (973) 786-7868.

Solvi Brands LLC introduced CRUNK!!! Energy Stix. CRUNK!!! Energy Stix contains only 10 calories and 3 grams of carbohydrates in an orange-flavored pow-dered format that requires no water and no mixing. CRUNK!!! Energy Stix come two per blister package. For more information, call (678) 578-5320.

These fine brands containSustamine™ in their formulations

*These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.

[email protected]

Copyright© 2010 Kyowa Hakko U.S.A., Inc

These fine brands contain

Meet pure, patented and beverage-ready Sustamine™. The only GRAS L-Alanyl-L-Glutamine available on the market, Sustamine is the result of a patented process that creates a true dipeptide of L-Alanyl-L-Glutamine without chemical synthesis. A natural ingredient that has been clinically tested, Sustamine supports rehydration, energy replenishment and muscle recovery.* Stable in liquids and ready-to-drink formulations, Sustamine is designed to fit the needs of athletes as well as weekend warriors.For more information, call or visit our website to learn how Sustamine can help your products go the distance.www.sustamine.com

A true dipeptide that goes the distance.

C

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kyowa_sustamine_ad_bevspec.pdf 1 5/20/10 4:02 PM


NP

ENHANCED WATER

AriZona Beverage Company announced the launch of RESCUE Water, a line of enhanced waters with a proprietary blend of Twin-lab vitamins and antioxidants. Berry Blend combines L-Theanine, green tea extract and lemon balm extract. Lemon Lime is designed to provide a boost in energy, with a blend of guarana extract, green tea extract and natural caffeine. Orange Citrus blends Alpha Lipoic Acid, green tea extract, milk thistle extract, and L-Glutathione. Pomegranate Punch blends Arabinogalactin, green tea extract and elderberry extract to support immunity. The RESCUE Water line contains no preserva-tives, no artifi cial colors and no artifi cial fl avors. RESCUE Water is sweetened with Reb A and contains only 25 calories per 8 oz. serving. AriZona’s RESCUE Water is cur-rently available in 20.5 oz. PET bottles. Sug-gested retail price is $1.39 - $1.89 per bottle. For more information, call (516) 812-0260.

TEA

Gold Peak has launched its new multi-serve chilled Gold Peak Tea nationally and has replaced its single-serve glass bottles with

Better Energy. Better Performance.

Katherine ReutterOlympic Speed Skater

Silver and Bronze medalS at vancouver ’10

Six World cup medalS in the paSt three monthS

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10-2576BE Bev Spectrum-Ribose half page - Jun 10 7.25 x 5.indd 1 5/24/10 11:25 PM

new 18.5 fl . oz. plastic bottles. Gold Peak Chilled Tea in 59 oz. carafes is offered in sweetened, unsweetened, diet and lemon varieties. Gold Peak single serve in plastic bottles is available nationally in supermar-kets, convenience stores and other retailers in sweetened, unsweetened, diet, lemon and green tea varieties. For more information, call (404) 676-1070.

ISOTONICS

O.N.E.: One Natural Experience debuted O.N.E. Active, a new line of coconut water sports drinks. O.N.E. Active provides the same health benefi ts and electrolytes as O.N.E. Coconut Water, but with the addi-tion of ginkgo biloba, ginseng and catuaba. O.N.E. Active contains no high-fructose corn syrup, preservatives, artifi cial fl avors or day-glo colors. The line’s three fl avors, Grape/ Berry, Lemon/Lime and Cranberry/Grapefruit, are sweetened with stevia and contain 40 calories and nearly 400 mil-ligrams of potassium per 16.9 oz screw-top Tetra Pak carton. Each carton and retails for $1.99. It is now available nationwide. For more information, call (212) 410-9039.


GERRY’S INSIGHTS By Gerry Khermouch

ICED TEA DREAMS:PERPETUALLY BREWINGREADY-TO-DRINK ICED TEA HAS become ubiquitous, but the segment re-mains a paradox. It was one of the last segments to see its growth subside under pressure from the ongoing recession, but it’s also one that experts are quick to pro-nounce played out. No less perceptive an observer than John Bello, the creator of SoBe and in recent years a beverage scout for private equity shop Sherbrooke Capital, has declared that tea is off his radar – he just doesn’t see any future winners.

A scan of all the marvelous tea brands that so far haven’t ignited might suggest there’s something to what he says: they include white tea pioneer Inko’s, mul-tiplatform player Steaz, not to mention a fl ock of RTD entries from loose-tea stalwarts ranging from big Republic of Tea to smaller Harney & Son, Numi and Adagio. These are all quality products, but it’s hard to see any of them breaking out in a truly big way. With so many brands mired in that transitional trough between niche status and ubiquity, why would anyone else want to venture into the breach? Maybe big companies looking to fi ll a portfolio gap (see: Anheuser-Busch’s Paradise Key line) but certainly not en-trepreneurs. And yet, they march in. As I said, it can seem paradoxical. Still, there are brands, positions, and unexplored seg-ments that could make for future hits.

It’s also easy to see why iced tea has been such a fertile platform in the past: it’s an obvious way station for consum-ers leaving CSDs, it carries many health connotations (especially for its green and white varieties) and it’s relatively cheap to produce, even in its more premium and subtle variants.

And yet – as Bello points out – there’s the problem of a profi table exit: who’s the buyer going to be? Some of more in-triguing RTD entries already have been subsumed into Coke (Honest Tea, Fuze), Pepsi (Tazo) or Nestle (Sweet Leaf, Trade

Winds), which may clear the way for new entrants to move into the independent dis-tribution channel, but that also seems to constrain prospects of a profi table exit.

Still, here are some approaches that maybe shouldn’t be ruled out:

Reasonable premiumization. That’s a phrase that Beverage Marketing Corp.’s Brian Sudano tossed out at a recent con-ference as a trend likely to capture con-sumers who’re ready to dig out from the ruins of the recession but aren’t going back to their wild-and-crazy spending days. It’s the bet New Leaf Tea is making as it ag-gressively builds a DSD network behind its good quality but affordably priced line.

Varietals. Tea can be produced in a wide array of styles and, as with craft beer, it’s possible for new entrants to ride on dif-ferentiation. That was the tack Numi took when it based its RTD line on complex, smoky puerh teas. They’re great teas but their price is high and, as the example of Inko’s shows with white teas, it’s not a very defensible position once bigger com-panies spot the promise and rush in.

Unsweetened Asian varieties. Ito En, with its Teas’ Tea and then Oi Ocha lines, has built a sizable business that’s transcended the Asian niche, suggesting there is a general market for unsugared varieties. But it’s still a small and mod-estly growing market.

Fresh-brewed tea. Because of the dif-fi culties of scaling up production and the distribution dilemmas that a refrig-erated product poses, it’s hard to see this on its face as a promising avenue for mass acceptance. But if you taste a brand like Seattle’s Cha Dao, there is an unmistakable quality difference in it. No less mainstream a company than Coca-Consolidated (via its BYB Brands incuba-tor unit) made an investment in Cha Dao. So who knows?

Kombucha. Hey – remember, this is tea, albeit a fermented variety that seems to comprise its own unique category. It’s becoming more accessible, although how mainstream the beverage can become re-mains very much an open question.

Just plain quirky. It’s always risky to underestimate the power of a quirky com-bination of elements. Long after the novel-ty had worn off, and it had been fumbled by big companies, Snapple showed how far quirkiness can take you. Rob’s Really Good, from the creator of Pirates Booty snacks, is another example: look at the brand’s attributes, and there would be nothing that stands out as particularly fresh, aside, perhaps, from intriguing fl a-vor combos like chocolate tea (already familiar from the loose-tea realm). But it’s been remarkable to witness the degree of interest that’s been stoked in the trade by this new brand. So who knows?

Maybe players in one or more of these categories will break out. Oddly, I fi nd myself least enthused by the sub-segment that seems to be drawing the greatest activ-ity lately: value tea, particularly prepriced canned teas. Taking a leaf from the ever-growing AriZona brand, companies like Monster (with its Peace Tea devised for the Coke bottling system), Dr Pepper Snapple (with Snapple) and others have offered low-priced teas that can lure consumers who want large quantities at low prices. It’s hard to see how anyone makes much money off these but Peace seems off to a brisk start and, once more, history has shown that beverage winners can emerge from odd places. As the slogan for the lot-tery used to put it, hey, you never know.

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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FRSBRANDS IN TRANSITION


FROM MAIL ORDERTO MAINSTREAMby Matt Casey

IN AN AGE WHEN MANY BRANDS supplement their on-shelf sales with online availability, FRS is doing the opposite.

The FRS Company spent most of the last decade building an online pres-ence for its quercetin-based nutritional supplements. Its now-ubiquitous online banners feature brand-evangelist and board member Lance Armstrong, offer free samples and lead curious consumers to a smartly-fi nished website and online store. Through that portal, the com-pany mainly sells chews, powders and drink concentrates. While FRS has long offered an RTD option, the realities of its mail order business focused sales on products that required less postage.

Now, FRS has gotten serious about getting its drinks into coolers. First, the company hired Carl Sweat, a veteran of Coke pickup FUZE, to head up DSD op-erations, while buttressing the move with Armstrong-centric television ads. But even more importantly, it has announced a ma-jor distribution deal with Pepsi Beverages Americas (the new combined PepsiCo/Pepsi Bottling entity) in which the product will be distributed in most of the country outside the Western U.S., where it has struggled to grow in retail locations.

In the West, particularly California, the brand’s focus seems to have created some positive response: one long-time distribu-tor reported that the brand’s sales nearly doubled its previous year volumes. But the success of FRS as an internet-based marketing phenomenon has complicated its DSD ambitions for a long time and may be part of the reason for the alliance with PBA. Up until now, new consumers whom the brand might have picked up in-store would then have the opportunity to bypass it via a drop-off from Fed-eral Express. But with the distribution breadth of its new partner, FRS should be able to create a national imprint with gapless coverage. That, combined with the brand’s long history and persistent online advertising can create what found-er Simon Good calls a “tailwind” in new markets and with new retailers.

Armed with that tailwind, the company has stepped up its efforts to address main-stream retailers and consumers. In addi-tion to splashing Armstrong across TV screens, it expanded its roster of athlete spokespeople to 20. The full cast includes Los Angeles Laker Derek Fisher, 2009 Major League Baseball Rookie of the Year Andrew McCutchen and pro volleyball

players Brooke Hanson and Nike Lucena. Meanwhile, Sweat has increased on-the-ground support through sales staff like glaceau veteran Tim Redmond and FUZE veteran Todd Gibson as the brand moves into mainstream grocers like Safeway in California and Publix in Florida.

Cary Seyl, director of marketing for Pacifi c Beverage in Santa Barbara, said FRS recently sent a crew drive through his territory. Correspondingly, in March, he enjoyed his best month of sales with the product to date, with recent months seeing 70-90 percent year-over-year sales growth. Not only has the brand added additional retail placement in mainstream retailers, but its volume has grown in enduring strongholds near gyms and universities. Seyl said he ex-pects to see the upward trend continue.

“I think there’s great potential that it may be just on the edge of really taking off,” Seyl said. “I’m kind of interested to see what Mr. Sweat has in mind over the long term.”

On a store level, Mike Gibson, Nutri-tion Lead at Sports Basement in Sunny-vale, Cali. said he’s seen interest in FRS increase over the last year.

“I’m sure it doesn’t hurt when you have Lance Armstrong as the face of your com-pany. Most consumers will try things based on what their favorite athletes use,” he said. “You will generally see FRS at more races now than you have before, which, in my opinion, means they are doing a good job trying to get their product noticed.”

The brand also boasts a handful of enduring advantages. Its central ingredi-ent, quercetin – included mainly for its endurance-enhancing properties – has been investigated for a wide range of health benefi ts including boosting the body’s immune system. The fl avonoid even earned attention from the American Cancer Society for its potential effects on caner. Armstrong, whom Forbes once called the most infl uential athlete in Amer-

A Sweet and Refreshing Value.

Great Profi t Opportunity!For more information, contact BYB Brands, Inc. at [email protected] or 1-877-292-2387.

©2010 BYB Brands, Inc. Country Breeze and the Country Breeze logo are registered trademarks of BYB Brands, Inc.

CB 2010 Beverage Industry trade ad-2b.indd 1 5/10/10 7:04 AM


FRSBRANDS IN TRANSITION

ica, lends credibility to the brand, and FRS has also collected a spectrum of unpaid athlete evangelists. Women’s soccer star Christie Rampone, for example, recently told Shape magazine that she couldn’t live without the product. Additionally, due to its history of online sales, FRS maintains a database of existing “core” customers that can be activated when the company secures distribution at a new chain.

“As soon as those stores are set, we can knock an email out,” Goode said.

Despite the appeal of instant customer activation, Seyl at Pacific Beverage said FRS’ enduring online presence both helps and hurts.

“As a wholesaler, we need to see the transition of that customer base,” Seyl said. “If we can capture a percentage of that internet business, we’d be pleased.”

But Goode said FRS’ direct sales shouldn’t concern retailers and distributors. He cited an adage in the direct response business that one remote sale will translate to eight at retail. While heavy users may find financial merit to purchasing bulk

powder or concentrate online, Goode said, as long as consumers can find the same product in their local stores, they tend to favor convenience over marginal savings.

The brand’s biggest challenge may be its sophistication. Seyl, whose company also distributes Red Bull, noted that FRS sells poorly in his stores that move the largest volumes of the banner energy drink. Based on that, he opined that it may not perform well in Middle America.

Sweat said he’s comfortable with the product’s sophistication. Every area, no matter how much of a Red Bull strong-hold it may be, has enclaves where more sophisticated products flourish, he said.

Up until now, the solution has been to try to avoid a scattershot approach by targeting markets for maximum ef-ficiency, but the days of FRS working with specific retailers’ customer profiles to determine exactly where and how the product should be positioned within chains will likely take a back seat to the number-crunchers from PBA – not neces-sarily a bad thing, however, given the

brand’s low in-store profile to date.In the mean time, FRS is using the legacy

of its online business to fuel consumer education. Goode described many of the brand’s returning customers as “hard core” athletes that FRS can use as a bridge into the mainstream market. FRS has built rap-port with repeat customers, Sweat said, and aims to turn them into brand evangelists. The company has nudged that strategy with pre-mainstream forays into local sporting events, cycling clubs, and gyms within the targeted market. On broader scale, they ad-vertise FRS as Lance Armstrong’s “secret weapon,” and drive consumers to educate themselves at FRS.com.

Those efforts will benefit from a recent $23.1 million cash infusion from its exist-ing investors. Sweat said he planned to put that cash toward marketing, personnel – both on the street and national level – and on ensuring production so that the brand’s supply is “ready as the wave comes.”

With the PepsiCo alliance, it ap-pears that the wave has appeared on the horizon. And just in time. Even before the PBA deal, FRS had tried to extend its reach into a growing number of main-stream outlets, but those had mostly centered on the GNC and Vitamin Shoppe end of the retail spectrum. It will be up to the PBA sales crew, however, to energize its presence in Safeway, Publix, Duane Reade, Quick Trip and Target, the large national accounts that will ultimately determine its ability to fulfill its potential.

But what the deal indicates is that FRS does indeed believe that its great-est potential lies at the retail level, and its RTD product is the key to realizing retail success. The brand’s site currently features videos with Fisher, Hanson and others drinking the RTD product and explaining why they use it. Given the company’s history in mail order, the powders have long been cheaper to ship and RTD has lagged behind. Obviously, its now going to be front-and-center.

Sweat said FRS’s future innovations will likely stay close to its quercetin core, but he wants to be ahead of the game. Other companies have already started selling quercetin-based products, and while he expects to have a formulation advantage (quercetin lends a particularly tricky flavor to work with, he said), he wants to make sure his company maintains that edge. •

Leaf & instant teasCertifi ed Organic ingredientsInstant coffee & extracts

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AHC_Steeped_BS_QtrPg_op.indd 1 21/05/10 11:52 AM

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Crunk_TradeAd_5Flavors.indd 1 3/5/10 1:20:41 PM


WE CAN’T POSSIBLY TELL YOU everything that happened at BevNET Live and Beverage School in just a two-page spread, but we thought we’d show you a little bit of the scene to convey the excitement that 330 people in a ball-room can generate when they’re there to help each other succeed.

Kicking off a full day of Beverage School, keynote speaker Rob Ehrlich, the founder of Rob’s Really Good and Pirate Brands, explained his philosophy of start-ing an entrepreneurial business – avoid outside investors, show up everywhere, and have fun – and he was followed by a series of technical speakers attempting to offer newcomers the kind of operational guidance they would need to fulfill the same kind of entrepreneurial destiny that has brought Ehrlich fame and fortune.

The spirit of support and discussion car-ried over into the next day at the start of BevNET Live, as the more strategic event’s first speaker, Inko’s founder Andy Schamis-so offered an honest look at his brand’s difficulties in some markets – while also offering a positive look at its fast-growing business in New York City schools.

From the case studies of succeeding entrepreneurs to the lament – and anger – of failed business plans, BevNET Live panelists offered attendees a look at their strategies for understanding what to do when facing some of the issues of invest-ment, sales and distribution that inevitably crop up during the process of growing a beverage brand.

For those brands that have fallen on harder times, a discussion of the potential for turning things around conducted by what Sunny Delight Beverage Co. Billy Cyr termed “The Beverage Company Repair Shop” offered hope for a clean exit with something to build on.

Speakers then dissected headwinds for entrepreneurs, brands, and the industry itself. First, a panel of attorneys from across the regulatory and lobbying spec-

INPHOTOSSUMMER2010AREVIEW

CLOCKWISE FROM TOP RIGHT: The Live Review panel at work; HINT COO Theo Goldin makes a point; Hot stuff from Prometheus Springs’ Alexis Mincolla; Bob Giroux makes a point on the Distribution panel; Andy Whitman at a Breakout Session podium; the scene at cocktail time.


AREVIEW trum took a hard look at forces threaten-ing the industry from a public relations and legislative standpoint. That discussion was followed by a warning on brand design – why they fail – and segued into a discussion of the travails of three beverage entrepreneurs who had endured less-than-positive outcomes in the industry.

Late afternoon discussions focused on the push-and-pull between entrepreneurs and two of their most important partners, investors and distributors. Eric Melloul, an investor with the private equity fi rm Verlinvest, explained his company’s will-ingness to help out company founders as valued partners rather than obstacles to fat returns, while a panel of investment pro-fessionals explored the hard choices often faced when boards and company founders are dealing with the realities of lower-than-expected returns and valuations.

Activate President – and distribu-tion vet – Dan Holland took a turn in the “hot seat” to discuss his company’s strategy for building within a network of beer distributors who are rapidly

opening their cargo bays to non-alcohol-ic products. Following his one-on-one discussion, a panel of fi ve direct store delivery distributors made their case for the importance of their system in the building and marketing of brands.

Finally, the two-day session was turned back over to the dreamers, as in-novators from hot-and-spicy Prometheus Springs, NERD energy drink and the sports drink Greater Than attempted to impress a panel of tough-minded bever-age experts – including representatives from Coca-Cola and PepsiCo – on the relative merits of their products.

At that point in the day, more than a few observers had tuned in via a one-day special live feed – one diehard even stayed up late in Japan, but the proof of the en-ergy was in the room. Packed to bursting with entrepreneurs, suppliers, investors, distributors, retailers, consultants, media, and powerpoint presentations, one thing was clear: you had to be there. (Although if you weren’t, you might be able to check out a sample or two on BevNET.com.) •

Networking over raw materials.

Ian McLean offers some informal design advice.


Like the 250 lb body builderwho used the weight machine before you, Muscle Milk is a hard act to follow.

The Cytosport-owned brand exploded across the nutrition store/convenience store barrier in 2008 and created a space for protein drinks at venues that more commonly host sugar waters, candy bars and hot dogs. Flying high on a decade of history in nutrition stores and surprising resonance with mainstream consumers, the brand snapped up distributors across the country, including such noted king-makers as L.A.’s Haralambos and New York City’s Big Geyser. It ascended so quickly that Pepsi Bottling Group announced a deal to snatch it away from the independent dis-tribution network in November 2008, less than a year after it caught attention on mainstream shelves. That landmark deal created a snowman-bottle-shaped hole in some indies’ portfolios, leaving them and their retailers wondering: can another pro-tein brand replicate Muscle Milk’s success?

Ed Jones, owner of Nutrition World in Chattanooga, Tenn. said he doesn’t think so. Muscle Milk built such a lead that he can’t imagine another product catching up to it.

“In 31 years of watching nutrition prod-ucts come and go, sometimes there some magic that can happen,” he said. “Lordy, it’s a rare thing for that to happen.”

Despite Jones’ view, the roster of ready protein competitors runs deep. At least a dozen brands like BSN, Optimum Nutri-tion and ISS Research boast long track records in the same gyms and nutrition stores that launched Muscle Milk. They understand protein; they understand nu-trition, and they understand that they want to enter the same lucrative market that Muscle Milk has tapped.

But the brand has left challenges in its wake – it didn’t just build a tremendous head start; it burned bridges. Spurned by Muscle Milk’s abrupt arc, Wright Wisner Distributing Corp. in Rochester, N.Y. fled the segment.

“There are other things coming along, and we just decided to put our efforts someplace else,” said Don Miller, Wright Wisner’s vice president of sales.

Many distributors, though, have been willing to give other protein brands a chance to prove their might. G. Housen in Vermont filled its Muscle Milk-void

A SNOWMAN BOTTLE-SHAPED

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with Myoplex. Haralambos picked up both Myoplex and VPX Sports’ Protein Rush, while Great State Beverage in New Hampshire replaced Muscle Milk with four separate protein brands: Protein Rush, Lean Body, Myoplex and Sytha-6. Rob Tuck, a sales rep at Great State, said it took his company less than a month to find its first Muscle Milk replacement and, as a group, the distributor’s spec-trum of protein products seems to be matching Muscle Milk’s sales.

“Each one is targeted to a different au-dience,” Tuck said.

Lean Body boasts zero sugar, he noted, while EAS backed Myoplex with a televi-sion ad campaign and both Sytha-6 and Protein Rush – with their 40 grams of pro-tein and Tetra packaging – attract serious fitness store consumers.

More SpaceNot all distributors are adding protein products to their portfolio to replace Muscle Milk. Jeff Howe, general market manager for Syntha-6 at BSN, said many of his distributors never carried Cyto-sport’s protein brand. Instead, they de-veloped an interest in protein after Pepsi’s distributors urged retailers to open dairy cooler space for Muscle Milk.

The nascent market has led distribu-tors to experiment with a smorgasbord of combinations. Howe estimated that half of his distributors handle at least one other protein brand, and half of those are trying to figure out which brands they should cut. Ultimately, they may main-tain multiple protein lines, according to Lee Labrada, founder and CEO of Lean Body-maker Labrada Nutrition. The pro-tein category has only begun to develop, he said, as a collision of demographics and cultural trends have set the founda-tion for a groundswell of fitness-focused beverages. With healthcare reform and obesity on the national radar, more young adults view protein drinks as good meal replacements, he said. At the same time, Baby Boomers entering their sunset years pay careful attention to their health and nutrition. Additionally, the television mar-keting campaigns waged by Muscle Milk and Myoplex are garnering attention from consumers who may have formerly viewed protein drinks as strictly for gym

rats. Amid the accumulation of all those forces, Labrada said distributors may be wise to maintain multiple protein brands.

“In any market, there’s always room for a Coke and a Pepsi. There’s always room for a third- and even fourth- and fifth-tier brand,” Labrada said.

Those lower tier brands will likely bear names familiar to GNC shoppers, as the category presents unusual barriers to entry. According to Labrada, not only is protein expensive, but not all proteins are created equal. The human body will readily absorb and use milk proteins like those found in Muscle Milk and Labrada, he said, but has a harder time using cheap-er collagen proteins. Additionally, as the flavor profiles of several fledgling protein drinks have demonstrated, protein is a dif-ficult ingredient to work with. Body build-ers and their ilk have inoculated them-selves to the taste, Labrada said – some even consume protein shots that pack as much as 42 grams in as little as two ounc-es – but the metallic taste can turn off the general public. Additionally, Labrada said, hardcore protein drink consumers tend to be highly brand loyal, making a Myoplex drinker unlikely to pick up a new entry.

Still, Labrada and Howe said they could see room for a newcomer to succeed. They’d fight long odds, considering that their better-established competitors can lean on already-successful powder busi-nesses, but a brand like PRO FOODS’ PRO ADE could snap up consumers that haven’t already pledged their allegiance to an existing brand. The only long term risk, Labrada said, is that competition could lead to price wars, siphoning profits out of every point on the supply line.

Labrada said he thinks that’s why the Coca-Cola Co., Inc. and PepsiCo never got into the market before: protein is ex-pensive and doesn’t provide enough profit for them. But that has changed. In addition to adding national distribution for Muscle Milk, PepsiCo debuted a handful of Gato-rade recovery products with added protein. Coke added another flavor to its Odwalla Protein Monster line in May, and is plan-ning a protein-enhanced Powerade prod-uct. In the mean time, a roster of nutrition shop brands and posing for entry into the independent distribution system. Only time will tell whether any of those brands can flex as well as Muscle Milk. •

Several other brands with long track

records in the gym and nutrition stores are trying to follow Muscle Milk’s lead

and head to the mainstream. Even Gatorade is trying

to get in on the act with their new

protein packed recovery drinks.

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Just like the athletes it has long claimed to support, Gatorade needs to get back in shape.So it’s trying to say goodbye to that particular breed of thick-waisted suburbanite lazing on his back porch, and instead to join the young parent out for his morning run. It’s trying to say aloha to the jersey-wearing I-banker chomping his soft pretzel in the stands, BY MATT CASEY


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and hello to his lacrosse-playing nephew. The fact is, those sedentary characters never should have been included in the Gatorade fold, says PepsiCo North Ameri-ca chief Massimo D’Amore. It was a fl uke, he said, their interest in the brand the result of a handful of sweltering summers and a paucity of other healthy-seeming products. The run of double digit growth? The company knew it had to end.

They just didn’t expect it to be so fast. But as marketers and retailers increased their beverage options, the economy re-duced consumers’ disposable incomes. Ga-torade lost sales to direct competitors, in-direct competitors and tap water. PepsiCo watched sales for its third-largest beverage brand plummet by 14 percent in 2009. A confusing re-branding cost the company momentum, while performance-oriented consumers looked to brands ranging from nutrition shop elixirs to more mainstream products like vitaminwater, as well as longtime rival Powerade, which now has a 20 percent share of the category.

But, even as Powerade has increased its share, the size of the category has shifted. Other functional beverages – particularly vitaminwater, which Coke acquired in 2007 for more than $4 billion – have cre-ated a new paradigm.

A November study from Deutsche Bank illustrated how the game has changed: when the investment bank polled consumers about brand prefer-ences within a combined sports drink and enhanced water market, they chose vitaminwater nearly as often as they chose Gatorade, and more than 70 percent named rehydration as the reason they chose either one. The takeaway? The casual users who had fueled Gato-rade’s growth were leaving the brand.

But so were the core users who had built the brand in the fi rst place: Ga-torade Chief Marketing Offi cer Sarah Robb O’Hagan (hired from Nike two years ago) recently told PepsiCo inves-tors that Gatorade – the brand that laid the groundwork for commercial sports beverages – currently penetrates just 27 percent of the 68 million-strong “per-formance athlete” market. Among the 55 million consumers who stay active to keep in shape, the brand’s market pen-etration was an anemic 12 percent.

CHANGES AND CHALLENGESIt’s those active consumers that the brand will turn to as it seeks to become relevant again. Recently, O’Hagan said, Gatorade surveyed thousands of athletes about their needs, and responded to its fi ndings by stripping the entire line of high-fructose corn syrup and adding pre- and post- workout products to fl ank its core thirst quencher. The pre-workout product, Gatorade Prime, packs B vitamins and 25 grams of sugar into a 4 oz. pouch. Gato-rade Recover follows the athletic-trainer

recommended mix of carbohydrates, elec-trolytes, and that ever-popular (and once verboten around Gatorade HQ) building block, protein, into a 16.9 oz bottle to help restore muscles after a hard workout.

In addition, Gatorade is shooting for the intense amateur, a performance-mind-ed fi eld of consumers who have turned into targets for a growing number of sports and nutrition products. In seeking those hardcore types, the company opened the door for its “elite” formulations to hit the mainstream market for the fi rst time.

As the product of a “sports science institute,” Gatorade has long offered scientifi cally optimized formulations to top athletes – O’Hagan noted that 88 percent of athletes in America’s top fi ve professional sports leagues use Gatorade. Now, it’s selling some of those innovations at places like GNC and Dick’s Sporting Goods under the name G Series Pro.

Meanwhile, Gatorade has even launched Gatorade Natural, which will only be offered through the natural channel. O’Hagan called that part of the brand’s “surgical” market strategy. (Not a bad idea, especially considering that Whole Foods has soured on vitaminwater since its acquisition by Coke.)

“You are where you sell,” she said.And, apparently to whom you sell, as

well. O’Hagan said the company spe-cifi cally targeted G Series Pro at trainers, marathon runners and other serious, life-time athletes to garner support from those who infl uence the purchasing patterns of young competitors across all sports. The sporting world has moved beyond those sports represented by the top fi ve profes-sional sports leagues, and Gatorade wants elite athletes from lacrosse, skateboarding, distance running and other physical com-petitions to reach for G Series Pro when they need nutritional fortifi cation.

But the brand may face a hurdle when trying to reach those infl uencer consum-ers. Currently, serious athletes tend to view the brand with disdain, according to Mike Gibson, the lead nutrition product salesman at Sports Basement in Sunnyvale Cali.

“I have rarely, if ever, had a customer come in specifi cally looking for Gato-rade,” he said. “On occasion it does happen, but the majority of people

The new G Series Pro is targeted at trainers, marathon runners, and other serious, lifetime athletes.


come in looking for just about anything but Gatorade.”

Gibson said his customers now prefer other isotonics, like Cytomax or dissolv-able nuun tablets. He also doesn’t see much opportunity for the brand to reclaim those consumers. Gatorade will continue to attract the uninitiated, he said, but those searching for individualized perfor-mance will continue to look elsewhere.

But the brand’s recent efforts may change some minds. Jim Launer, owner and head trainer at the Ignite training center in Camp Hill, Pa. said he has long advised athletes to avoid Gatorade, instead encouraging them to drink water, and only allowing sports drinks – usually protein-bearing Accelerade – for some workouts. But upon hearing that Gato-rade had started offering pre- and post- workout formulations (and natural sugar), he softened his outlook for the brand.

“That’s falling along the lines of what the Accelerade product is,” Launer said. “I do really like the fact that they’re elimi-nating the high-fructose corn syrup.”

MARKETINGWhile the brand’s repositioning may earn it a second glance from some consumers, the upheaval invited risk. Shifting the brand’s focus to the capital letter “G” and away from its lightning bolt logo drew derision from long-time consumers and skepticism from indus-try insiders. The brand similarly sowed confusion by relabeling its sub-lines like “Rain” and “Fierce” as “No Excuses” and “Bring It.” Its more recent overhaul triggered further confusion. Business Pundit blogger Rob May said the new array of products baffl ed him.

“Is this just a move to make choosing a sports drink as complicated as choosing a cell phone plan?” he wrote.

O’Hagan acknowledges that the shift stirred ire and confusion, but said it was necessary to build rapport with the next generation of consumers and pave the way for the G Series. PepsiCo asserts that the new branding resonates better with teens and pointed to the comparative ease with which one can spot the G on sideline cool-

ers, but it offered no hard data on that idea’s effectiveness.

Meanwhile, respondents to Deutsche Bank’s 15-30 year-old “What’s Facebook Drinking” survey gave the campaign middling ratings.

But Gatorade is standing behind “G.” The company recently took a 53-foot-long “mobile locker room” to visit high schools in nine cities, promoting what it called “The G Series Experience.” On television,

the National Basketball Association’s biggest stars prominently consumed the G Series before, during and after playoff games. A PepsiCo spokesman, speaking to the Wall Street Journal, called it “biggest spend for a launch in our history.”

PEPSICO’S PORTFOLIOWhile Gatorade focuses on practice fi elds, dugouts and sidelines, D’Amore says he hopes other PepsiCo products can pick up the slack that Gatorade carried for the company for nearly a decade. First and foremost, he said, he wants Aquafi na to retain consumers trading down to bottled water. For those looking for enhanced water, he wants to see a move to SoBe Lifewater and Propel, both of which have gone through signifi cant restages.

SoBe Lifewater began as a vitaminwa-ter copycat and shipped in bottles that closely resembled those of the category leader. PepsiCo has since invested in proprietary packaging and innovation for the line. SoBe Lifewater’s swirled, fully-wrapped bottles served as an early prov-ing ground for stevia-derived sweeteners, and the line now boasts seven naturally-sweetened, zero-calorie fl avors.

Propel, meanwhile, has struggled with its identity. It appeared originally as a low-calorie Gatorade sub-brand with the tag-line “How Gatorade Does Water,” but it drifted away from its parent brand. Now, D’Amore said, fueled by the company’s recently found ability to cold-fi ll the product, PepsiCo will promote Propel as a value-positioned, zero-calorie enhanced water. Gatorade – and the cat-egory it founded – has matured since its early days under the hot Florida sun. Rid-ing high on more than three decades of unchallenged category leadership, it got fat, and drifted away from its own core training purpose. Now it contends for consumers’ attention against Powerade and vitaminwater, while it has to get up and play against a wide array of nutrition shop brands. PepsiCo is gambling that re-turning Gatorade to its core will pay off. If it doesn’t work out, however, Gatorade might have to recast itself once again – as the offi cial beverage of the Senior Tour. •

Gatorade Natural will only be offered through the natural channel as part of Gatorade’s “sugical” market strategy.


GT Beverage Company, LLC. Sportastic Sports Drink is now being sold nationally through Big Lots and Wal-Mart Stores. The company will introduce two new fl avors, Grape and Orange, which will be available in Sportastic’s Soccer Ball, Baseball and Basketball packages.

Hydro One. Hydro One announced the intro-duction of BÖDE Sport. BÖDE Sport comes in Lemon Lime and Black Cherry Grape, as well as protein-enhanced Pomegranate Rasp-berry and Orange Mango fl avors. All four va-rieties contain 35 calories or less per serving.

Vita Coco. In February, Vita Coco roped in ce-lebrity investors like Madonna, Demi Moore and Matthew McConaughey. Vita Coco de-buted its fi rst-ever advertising campaign this spring in New York City with taglines like “No Chemists Ever Touch Our Nuts,” and “So Good For You, It’s Nuts.”

The Coca-Cola Co., Inc. The Coca-Cola Co., Inc. introduced POWERADE PLAY, a sports drink targeted at young athletes. POWERADE PLAY has less sugar and more vitamins than the leading sports drink, with 100 percent of the recommended daily amount of vitamin C, 20 percent RDA of Zinc and 20 percent RDA of vitamins B3, B5, B6 and B12.

Amy & Brian. Amy & Brian added distribu-tion with Santa Monica Distribution in South-ern California, Humboldt Beer in Northern California , Morris Distribution in Sonoma, Napa, and San Francisco, and Asia Tran & Co. Inc. in Hawaii. The brand also sponsored the Bishop High Sierra Ultra marathon in Bishop, Cali.

C2O Pure Coconut Water. C2O Pure Coco-nut Water is now available in all Whole Foods Markets’ Western Region.

Purity Organic. Purity Organic, maker of Purity Organic Restore, recently added distri-bution with Haralambos Beverage, Horizon Beverage (Oakland, Cali.) and DBI Bever-age Truckee. The company added placement with Albertsons in Arizona, Colorado, New Mexico and Texas; Kroger in Atlanta; Ingles

Markets in N.C. and Haggen/Top Foods in the Pacifi c Northwest. The company also con-verted to a lighter weight PET bottle.

PRO FOODS. PRO FOODS introduced PRO H2O protein-fortifi ed water in April with Black Cherry and Kiwi Strawberry fl avors in 16.9 oz. PET. The company also introduced PRO ADE protein fortifi ed-sports drink in Fruit Punch and Orange fl avors. PRO ADE and PRO H2O are available through Ama-zon.com and in select stores in the Dallas area.

Talking Rain. Talking Rain debuted actiVwa-ter FUEL, a Strawberry Kiwi-fl avored water with 25 calories per serving. activWater FUEL is the offi cial enhanced water for the OMBRA P55 Racing Team, part of the Formula 3 Italia Auto GP Series.

Big Red, Inc. Big Red announced that All Sport Body Quencher will debut new pack-aging with clear labels. The company also released All Sport Naturally, a zero-calorie sports drink naturally sweetened with Truvia. It is currently available in schools in Cali-fornia, Chicago and Texas. Additionally, All Sport has reduced the plastic in its 20 oz. bot-tles by 10 percent.

Gatorade. Gatorade’s G Series Pro offi cially launched at GNC on May, 1 with appearances by Eli Manning of the New York Giants, Matt Forte of the Chicago Bears and Reggie Wayne of the Indianapolis Colts. Until now, G Series Pro has only been available in pro and collegiate locker rooms and specialized training facilities.

ABB. ABB has partnered with Denver’s New Age Beverage and Bill’s Distributing in An-chorage, Alaska. The brand also recently re-leased new packaging and new formulations.

The FRS Company. The FRS Company in-troduced two new fl avors sweetened with stevia: Apricot Nectarine and Orange. Both rolled out nationally in May and June.

ISS Research. ISS Research, LLC, announced its continued endorsement agreement with three-time National League MVP, Albert

BRAND NEWS: SPORTS DRINKS

BRAND NEWS


BRAND NEWS: SPORTS DRINKS

Pujols. ISS has expanded OhYeah! distribu-tion nationwide at 7 Eleven and in numerous chains throughout the mid-west, Arizona, California and Nevada.

Attitude Drinks. Attitude Drinks, Inc. an-nounced that 12-packs of 14.5 oz. containers of Phase III Recovery are now available for purchase online. Attitude also announced dis-tribution with High Five Distributors in the New York Metro Area.

Cytosport. Cytosport updated Muscle Milk’s labels and added text to the side of its bottles highlighting the benefi t of protein in a healthy, active lifestyle. Cytosport also introduced a ready-to-drink Café Latte fl avor in select mar-kets, and released a protein enhanced water, Muscle Milk Protein H20- into its specialty distribution network.

California Natural Products. California Natural Products announced the introduction of CalNaturale Svelte. CalNaturale Svelte is a non-dairy, gluten-free natural protein shake.

ZICO Beverages LLC. ZICO Pure Premium

Adobe Springs is the largest supplier of bulk mineral water to the bottling industry in the

United States, with a TDS of 435 mg per liter. Adobe Springs’ healthful magnesium content of 110 mg per liter is more than the combined magnesium content of the top-20-sales

bottled waters in the US. Adobe Springs tastes great, and has been marketed as

“Noah’s Spring Water” since 1992.

The Adobe Springs are conveniently located 19 miles off I-5 in Central California.

Call Paul Mason, Owner Tel: (408) 897-3023

Email: [email protected]

Adobe Springs Water Co. LLC 19000 Del Puerto Canyon Road

Patterson, CA 95363

New clients welcomed, as we have plenty of water.

Adobe Springs Water Company

adobesprings_spectrum_half.indd 1 3/8/10 8:37 AM

Coconut Water released a new bottle designed for active lifestyles. The new ZICO bottle fea-tures a blend of natural coconut waters that naturally deliver 20 percent fewer calories. The new ZICO bottles are made of #2 recy-clable HDPE, and are currently available for Natural, Lima Citron and Pomberry fl avors.

O.N.E., One Natural Experience. O.N.E., One Natural Experience debuted O.N.E. Ac-tive, a line of coconut waters fortifi ed with ginkgo biloba, ginseng and catuaba. The new line comes in stevia-sweetened Grape/Berry, Lemon/Lime and Cranberry/Grapefruit fl avors.

EAS. EAS debuted a new advertising cam-paign for Myoplex built around the call-to-action “If you use muscles, use Myoplex.” The ads close with the new EAS tagline: “Power to the People.” The campaign is being featured in major sports, fi tness and mainstream print, online and broadcast out-lets, including: CBS Sports, ESPN, MTV, TNT, Spike, Versus, FX, Facebook, ESPN.com, MSN, active.com, Rodale, Rise, Hulu, Self, Shape, ESPN The Magazine, Bicycling, and Men’s Health among other outlets. •


Yes, the value brands have fi nally arrived. After a decade of consumers shelling out $2-4 for cans that delivered as little as eight ounces of sugar, water and caffeine, top brands have let their prices slip. They’ve held “every day” prices as high as ever – even raised them, in some cases – but Red Bull, Monster and Rockstar have indulged in promotions that move product for as little as $1.50 per can. Meanwhile, value energy brands may be gaining ground – a strange development for a space that once routinely killed entrepreneurs who boasted that their product was “like Red Bull, but cheaper.”

THE NEWPOWERSOURCE:

BY MATT CASEY

CHEAPENERGY

ike every growing boy, energy drinks got bigger as they reached maturity, moving from a puny 8 oz. can to a spiffed-up tallboy, and then even into

the land of the 32-ouncer. But if they’ve gotten bigger, something else has started to fall – prices and margins.

Budget brand Rip It, for example, sells at 16 oz. for a buck and has seen rapidly ris-ing sales in Michigan, according to Randy Shanker, owner of Canada Dry Bottling in Lansing. Shanker said he’s carried the Na-tional Beverages brand since 2006, and it has recently enjoyed a run of double-digit growth fueled by strong execution of its value positioning. Jolt, in its latest iteration, has decided to splash into the value end of the energy category with 99-cent pre-priced 12 oz. cans and 16 oz. cans crafted to hit a similar price point in other channels. So far, said Val Stalowir, Jolt’s acting chief market-

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The success of these brands cuts against a premium-only perception that has defi ned the energy category since its inception. Red Bull built a mystique around expensive energy elixirs that encouraged suspicion of products that promised the same bang for fewer bucks. Monster and Rockstar maintained this perception but those three brands have recently faltered on pricing. Red Bull crafted an every-day deal that of-fers consumers two 8 oz. cans for $4 – a discount from its single-can price of $2.19; Monster and Rockstar authorized deals selling two 16 oz. cans for as little as $3. It’s gotten to the point where at least one Budweiser distributor who had wanted to keep the Hansen’s brand in his house has become so angry about his declining mar-gins that he’s decided to kick Monster out,

complaining it’s just not worth the trouble to keep if from cutting over to Coke.

The problem? Too much success. As the category has matured into a big three – Red Bull, Monster, and Rockstar – these products have gradually moved into vast,

Brand: Red Bull Size: 8 oz. Cost: $2.19

COST PER OZ.$0.27

Brand: Jolt Size: 12 oz. Cost: $0.99

COST PER OZ.$0.08

Brand: Rip It Size: 16 oz. Cost: $1.00

COST PER OZ.$0.06

highly competitive distribution networks that tend to regard them as commodities more than status symbols. In other words, if you’re going to hook up with Coke and Pepsi, sooner or later you’re going to have to go the way of Gatorade or glaceau and pay the pricing game.

“As soon as Coke and Pepsi got the Rockstar [and] Monster agreements, they got very aggressive on pricing,” Stalowir said. “The big guys... trained the consumer to believe that great, high-quality, effective energy brands can retail for less.”

In Stalowir’s view, the category was over-due for value players. Bargain brands make up, on average, eight to ten percent of most consumer packaged goods markets, he said. By contrast, they currently account for just one percent of the energy drink category. He said that disparity, combined with consumers discovering that they don’t need to pay 30 cents per ounce for a qual-ity energy drink, opened a window for Jolt to restage itself as the AriZona Iced Tea of the energy category – a strong, recognizable brand with an easy-to-handle price.

Of course, the fact that Stalowir is run-ning Jolt at fi re sale prices following the ouster of founder C. J. Rapp isn’t lost on observers who have voiced concerns about inconsistent quality and declining brand eq-uity. Still, tough times mean little disposable income, and the discount nook of the cate-gory, which includes private label brands at grocery stores and big-box retailers, owes some of its recent rise to the economy.

Shanker said it’s no coincidence that Rip It has surged in Michigan, a state suffer-ing 15 percent unemployment, but value’s rise likely also springs from energy’s matu-

BIGGER BANG – LOWER COST

Bargain brands make up, on average, eight to ten percent of most consumer packaged goods markets. By contrast, they currently account for just one percent of the energy drink category.

Why a price conscious consumer might go for a cheaper energy drink.

THE NEW POWER SOURCE: CHEAP ENERGY

Consumers have spoken. Their energy shot of choice? 5-Hour Energy, overwhelmingly. That’s why our 9-Box Rack is ideal for retailers of all sizes. It’s small enough to fi t on your counter,

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The PerfectRed Bull

*

Alternative

*Roaring Lion and RedBull are registered trademarks of RLED, LLC and Red Bull North America, Inc. respectively.

RoaringLionEnergyDrink.com

rity. Energy drinks hit $5.6 billion in U.S. sales in 2009 at food, drug, convenience and mass market stores (excluding Wal-Mart), according to Symphony IRI, with an overall growth rate of 4.6 percent. But maturity means competitive pricing and a group of consumers who, just like with CSDs, understand there are cheaper ways to get the energy buzz.

That consumer differs from those that buy Red Bull and Monster, Shanker said. In his territory, he said, Rip It captures con-sumers who would have normally bought traditional carbonated soft drinks, and have been reluctant to join the energy cat-egory due to high prices and the “energy drink taste.” Rip It, he said, overcame both of those hurdles with its $1 price tag and wide array of flavors. His distributorship alone carries nine.

The brand’s growth – particularly at the expense of sodas – may also indicate a gen-erational shift. Ruben Rios, vice president of sales for XYIENCE, said he’s noticed that teenage and young adult consumers don’t drink soda like they used to. Where once they ordered soda in restaurants and kept 2 liter bottles at home, now they order water and buy teas and energy drinks.

Even though those same consumers tend to lack pocket change, Rios said he’s not sure that discount energy drinks can

thrive nationwide. While XYIENCE has adjusted its prices to match promotions from the category’s leaders, Rios said he recently visited a convenience franchise in Louisiana that eschewed discounts com-pletely. Their coolers, he said, included exactly zero energy products on special, and he expects that trend to grow among smart store managers. Individual loca-tions are judged by their overall store mar-gin, he said, and discount energy drinks squeeze the category’s profitability.

But Shanker and Stalowir said discount energy drinks could actually improve pen-ny profits. Stalowir said that Jolt increased margins for both itself and its retailers by jettisoning its expensive cap can. The brand also hasn’t focused exclusively on conve-nience and grocery stores, he said, extend-ing its reach to dollar stores and other large direct accounts. And, even with their $1 price tags, Shanker said Rip It offers tra-ditional convenience stores higher margins than traditional carbonated soft drinks, if not the outstanding margins prized by Red Bull’s best wholesalers.

Shanker noted that the shift hasn’t been kind to his margins, though.

“I miss the Monster days without ques-tion,” he said. “They were a special, once-in-a-great-while run for an independent beverage distributor,” he said. •

THE NEW POWER SOURCE: CHEAP ENERGY

Ruben Rios, vice president of sales for Xyience, has noticed a generational shift as teenagers and young adult consumers now purchase water, teas and energy drinks rather than soft drinks.

template.onepage.indd 1 5/10/10 9:47 AM


BRAND NEWSLiquid Lightning. Liquid Lightning Energy Drink introduced new packaging for its core products. The brand also added distribution in Hong Kong and debuted a marketing cam-paign centered on photographs that aim to be elegant, edgy and thoughtfully provocative.

Sex Drive Energy Drink. Sex Drive Energy Drink announced placement at Walgreens. The brand now boasts distribution in the Ba-hamas, Bangladesh, Barbados, British Virgin Islands, Grenada, Europe, Jamaica, Mongo-lia, St. Vincent and the Grenadines, Trinidad and Tobago, Turks and Cacaos and other Ca-ribbean countries.

AriZona Beverages. AriZona Beverage Company introduced AZ Energy, a new street art-inspired energy drink that emphasizes function and fl avor. AZ Energy is made with orange blossom honey and natural juices from pears, apples, peaches and mangos.

Hip Hop Beverage Corporation. Hip Hop Beverages announced three new fl avors of Pit Bull Energy Drink: Blueberry Pomegranate, Cranberry Pink Grapefruit, and Cherry Lime.

DD Beverage Co. DD Beverage Co. recently signed UFC Heavyweight Champion Shane Carwin as a Beaver Buzz athlete. The compa-ny also executed a rebranding effort, making its banner beaver a little meaner.

Red Bull GMBH. Red Bull debuted its 19.2 oz. Red Bull Racing special edition can. The regular and Sugarfree varieties feature Red Bull Racing’s Brian Vickers and Scott Speed, respectively, and will be available through most of the NASCAR season.

Plasma Energy. Plasma Energy recently signed a national online marketing contract with Nutritional Products International, Inc. Sun Country Airlines also reached an agree-ment to sell Plasma Energy on its planes.

RLED, LLC. Roaring Lion was named the exclusive energy drink of Los Angeles based

BRAND NEWS: ENERGY DRINKS

luxury hospitality and development company, SBE. Roaring Lion will be the exclusive energy drink for SBE’s luxury collection, including the SLS Hotel and SBE’s dining and nightlife prop-erties in Los Angeles, Las Vegas and Miami.

JOLT Energy. AMC and JOLT Energy Drink announced a nationwide campaign that pro-motes season three of the Emmy Award-winning series, Breaking Bad. More than one million JOLT cans will feature tune-in infor-mation for the program.

Jump Innovations, LLC. Jump Innovations, LLC of Arvada, Colorado is now under new management. Brothers Michael and David Newlon have focused the company’s efforts along the Front Range of Colorado. The compa-ny also created new can designs for Recon Cof-fee Energy Cola and Sentinel Vigilant Energy.

Futuristic Brands USA, Inc. Futuristic Brands USA introduced NX (Nitrous Express) “Crash-proof Energy” fortifi ed with the plant-based fl avanoid, quercetin. The company boasts that, taken daily for 2 to 4 weeks, NX Energy can increase mental alertness, strengthen your immune system, provide sustained energy and reduce oxidative stress, muscle soreness and infl ammation after exercise.

Hype Energy. Hype Energy introduced Hype Energy Organic in May. Hype Energy Or-ganic contains no taurine, no coloring and no preservatives. The lightly-carbonated natural product combines the taste of apple juice, aloe vera, tea and guarana.

Go Fast Sports & Beverage Co. Go Fast Sports and Beverage Company introduced Go Fast Coconut Energy and Go Fast Energy Tea. Go Fast Coconut Energy, sweetened with ste-via, includes coconut water to aid in hydra-tion. Go Fast Energy Tea, also sweetened with stevia, combines Go Fast Original’s energy and herbal blend with white, black and green teas. Each of these new fl avors contains 50 calories per 8 oz. serving.

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XO Energy Beverage Corp. XO Energy Bev-erage Corp. announced that XO Energy 6 oz. shots are now available in Ohio, Kentucky and Indiana distributed by Queensgate.

Fluid Motion Beverage Inc. Talon Energy Drink launched Talon Energy Cola in January in both the US and Canada. The brand is con-tinuing its campaign that places fan-submitted mottos on Talon cans. Talon Energy Cola fea-tures the motto “Never Compromise,” from fan Shanelle in California.

Ex Drinks LLC. Ex Drinks introduced Ex Pure Energy and Ex Slim Energy. Ex Pure En-ergy contains kombucha tea extract, 80 mg of natural caffeine, Asiatic ginseng, guarana, vi-tamin C, and B vitamins. Ex Slim Energy pro-vides the same benefi ts of Ex Pure Energy with two grams of carbohydrates and 15 calories.

Twinlab. Twinlab promoted its Pure Fuel En-ergy at athletic events The Arnold, Interbike, The NYC Triathlon, The Boston Marathon, The NYC Marathon, Sea Otter Classic and Association of Volleyball Professionals title matches. Pure Fuel can be found at Rite Aid, GNC, Vitamin Shoppe, and other health, nat-ural food and online retailers.

Bite Me Energy Drink, Inc. Bite Me Energy Drink announced the introduction of its sugar free drink at stores throughout Southern Cali-fornia. Bite Me is accepting inquires for distri-bution outside of California.

ZUN. ZUN is now a national brand show-ing syndicated data in Total US Food, Total US FDMx and Total US Convenience. The company reported that it shipped 200 24-pack cases per week to Kum & Go during an initial national trial.

Vuka, LLC. Vuka is now in Whole Foods stores in Colorado, and has additional retailers, in-cluding the Hyatt Denver Convention Center. The brand also sampled around 60,000 cups to date and plans to sample the brand at ad-ditional events, including BolderBoulder.

Lotus Group, LLC. Lotus Group, LLC an-nounced an exclusive distribution agree-

ment with G&G Distributing of Bossier City, La. LOTUS also has distribution in California and Tennessee.

Goddess Energy, Inc. Goddess Energy an-nounced that it secured placement for Flirt Energy at more than 200 Harris Teeter loca-tions beginning this summer.

CL-ONE Corp. CL-ONE Corp announced that it added distribution with Monarch Bev-erage Co. and Baumgarten Distributor Com-pany of Peoria, Ill., previously a Red Bull distributor. As a promotion, CL-ONE also announced a reward for the capture of any human with wings.

Celsius. Celsius announced availability through A&P and Pathmark Stores in the New York, New Jersey and Philadelphia areas. The brand also added placement at Casey’s Gen-eral Stores in the Midwest.

XYIENCE. XYIENCE debuted Orange Fuel Xenergy Xtreme at the UFC Fan Expo May 28-29 in Las Vegas. The company recently signed reality television star Amanda Corey as its Xenergy Xtreme spokesmodel and added UFC fi ghter Dan Hardy to its roster of pro-fessional athletes. The brand is now available in Texas through Silver Eagle Distributors, in Georgia through United Distributors, and in Louisiana through Schilling Distributing and Champagne Beverage, as well as in Ohio at Circle K convenience stores.

Enertia Beverage LLC

Enertia Beverage LLC introduced Vital En-ergy, a vitamin-enhanced caffeinated water in three fl avors: Acai Blueberry, Raspberry Apple, and Tangerine. The drinks contain an average of 50 calories per 8 oz. serving, and 150mg of caffeine per bottle. The brand se-cured a distribution contract with Wright Wis-ner Distribution in Western New York.

Johnny Fountain Beverage Innovators, LLC.

Powerball launched new packaging this spring, and will be available in two new fl a-vors: Coconut Water and Cranberry Juice.



NRS-Nutrition Resources Services, Inc.

NRS will promote Krank’d Body Fuel this summer at local hometown 5K races and at larger events such as The Multiple Sclerosis City to Shore Bike Tour. Krank’d will also continue to run coupons and 2 for $3 offers at all Giant/Martin Foods Stores, and at a growing number of independent retailers. The brand also signed on as a lead sponsor for Na-tional Premier Soccer League team FC Sonic.

Beverage Innovations, Inc. Venga intro-duced Cranberry Lime Calorie Burn. The brand also won “best new non-alcoholic bev-erage 2010” at the Gulfood Awards in Dubai.

CRUNK!!! Energy Drink. CRUNK!!! launched a Mango-Peach fl avor in 2010 and added over 4,000 new doors within the last six months. New retailers include Cumber-land Farms, Xtra Mart, Circle K, Bashas, Sunfl ower Grocery Markets, Catalina Mart, Giant, Mustang, Thriftway Gas & Conve-nience Stores, Quick Mart, Reay’s Ranch Market, Dunlop Oil, Honey Farms, Western Oil, Quicktrip, Kum & Go, and independent retailers. Plans for 2010 include radio and press efforts around Lil Jon’s CRUNK Rock Album release and sampling events at con-certs and college campuses.

Big Brands, LLC. Fuel Energy is now avail-able in four fl avors: Berry Tangerine, Sugar Free Berry Tangerine, Apple and Orange Cream. Big Brands also expanded its distribu-tion to include Dallas, Kansas City, St Louis, Atlanta, Phoenix, Des Moines, and Tulsa.

Zenedge, Inc. Zenedge Premium Energy Drink announced a redesigned label and a new formulation. The product has launched through parts of New Jersey, New York, Penn-sylvania and Jamaica, and is currently seeking additional distribution.

The Coca-Cola Co., Inc. NOS Energy Drink announced new Loaded Cherry fortifi ed with L-Theanine. The new fl avor touts enhanced mental focus, and the national launch will fo-cus on convenience stores.

Wave Energy Drink. Wave Energy Drink completed the sale of a franchise operation in

Hampton Roads, Va., bringing the total num-ber of franchises sold in 2010 to four, includ-ing Buffalo, New York City and Columbia, S.C. Additionally, Bay Distributors, LLC, in Seaford, Va. is now fully-licensed to exclusive-ly distribute Wave Energy Drink in the South-eastern Virginia-area.

XL Energy Drink Corp. XL Energy Drink re-cently created XL Energy Drink Cranberry. The brand now works with 60 distributors across the East Coast, Midwest, Caribbean, South America and Canada.

420 Energy Drinks. 420 Energy Drinks an-nounced it will donate $1 for every case sold to a fund that helps people arrested for non-violent marijuana offenses by bailing them out of jail. The company will also donate $1 for every case sold to the family of Jack Herer, the recently-deceased hemp advocate known as the “Hemperor.”

NOR–CAL Beverage Co. Inc. NOR – CAL Beverage Co., Inc. introduced Molotov En-ergy Drinks in Mango, Pineapple and Tama-rindo fl avors. The Mango and Pineapple also available with Tapatío hot sauce. NOR-CAL will donate a portion of the proceeds to ben-efi t the Hispanic Scholarship Fund.

HYDRIVE Energy LLC. Hydrive Energy debuted new packaging and HyDrive R, a “grape fusion” fl avored recovery formula-tion fortifi ed with vitamin E, aloe vera, folic acid and acai extract.

National Beverage Corp. National Beverage Corp. rolled out a limited edition, resealable 20 oz. extension for Rip It. Rip It City 32 fea-tures a strawberry fl avor and NBA Star Rip Hamilton on the label.

Kronik Energy. Kronik Energy announced DRAGON BERRY. Available this summer in Regular and Low-Carb as part of the brand’s “Top-Tier” Energy Arsenal, DRAGON BER-RY offers a twisted blend of exotic fruit fl avors.

Bionic Products, Inc. Bionic-Tonic and La-dyPink will be featured on the new TV web series, “Miss Behave.” Miss Behave is a teen series whose characters share industry trends.


Bionic-Tonic and LadyPink have been inte-grated into the series, and the actors can be seen drinking them in several episodes.

Mountain Crest Brewing Co. Mountain Crest Brewing Co will launch iEnergy in Can-ada through beer and liquor distributors this summer. It has been selling in the Midwest for two years.

Shadow Beverages. Ironclad Performance Wear Corporation introduced Ironclad Energy & Hydration in three fl avors: Triple Citrus, Goji Berry and Sugar Free Black and Blue with Black Currant. Ironclad Energy & Hydration is supported by an on-pack promotion that en-courages consumers to collect the Ironclad tabs and redeem for free Ironclad gloves and gear.

Liquid Management Partners. Liquid Ice Energy is now the offi cial energy drink for the Minnesota Wild, Nashville Predators,

and Minnesota Vikings. Liquid Management Partners also announced a new energy brand called The Boss. The Boss, in 8.3 oz. cans, will be made available through Liquid Ice’s distri-bution network in 36 states.

Rockstar, Inc. Following its new distribution agreement with Pepsi Beverages Company, Rockstar debuted two new beverages: Rock-star Energy Cola and Rockstar Recovery. Rockstar Recovery is a 10 calorie per serving, electrolyte-enhanced energy lemonade.

Hansen Beverage Company. Hansen Bever-age Company partnered with DUB Publishing and co-founder Myles Kovacs to develop Mon-ster Energy DUB Edition, launched in the fi rst 32 oz., resealable Jumbo Cap Can from Ball Corporation. The company also secured place-ment at Carl’s Jr. and Hardee’s restaurants. •

PROMO PARADEPROMOTIONS, EVENTS, AND SPECIALS FOR THE INDUSTRY

64.BEVERAGESPECTRUM.MAY-JUNE .2010

Corona Beaches Times Square

Corona Extra and Corona Light hosted a 24-hour beach party in New York City’s Times Square on May 20th. This event kicked off Corona’s “Win a Beach Getaway” summer promotion, which runs through July 31.

The Corona “pop-up” beach boasted 30 tons of sand span-ning 2,500 square feet, as well as ocean sounds, palm trees, beach chairs, bean-bag toss games, the world’s largest Corona bottle (measuring 30 feet tall), and Corona giveaway items including sunscreen, bead necklaces and key chains.

As part of the promotion, Corona inserted 2,000 Corona Extra and Corona Light 12 oz. bottles with special graphic wraps and an entry codes in specially marked 12-packs, 18-packs and 24-packs. Consumers can redeem the codes at www.coronabeachgetaway.com for a chance to win one of 1,000 prizes including 100 Grand Prize trips for two to Cancun, Mexico.

Elated to Help

Elations announced the launch of its Boomers Building a Bet-ter America initiative. The program is designed to reward baby boomers who actively volunteer and want help com-pleting specifi c projects. For-mer Olympic gymnasts and community activist Nadia Co-maneci and her husband Bart Conner will help choose the winning projects, which will

Jim Beam (Kid) Rocks

Jim Beam Bourbon, in partnership with Atlantic Records, is mak-ing exclusive downloads of Kid Rock tracks available to fans who purchase its Jim Beam or Red Stag brands. Codes for downloading the otherwise unavailable music will be available on special edi-tion gift cartons of the two brands. In some states, the codes are supplied via tear pad coupons, per legal requirements.

receive cash grants and expert advice along with additional tools and resources.

Boomers can learn more about this program and apply for the grants at www.Face-book.com/Elations or www.Elations.com. Projects will be chosen by an independent pan-el of judges. Three winners will be announced Fri. July 30.

Makers Marks Summer Holidays

Makers Mark Bourbon is celebrating Independence Day and hon-oring United States service men and women with a limited edi-tion Red White and Blue Triple pack. The Triple Pack combines a bottle of Makers Mark sealed with the brand’s trademark red wax with two more bottles – one each sealed with white and blue wax. The package is now available in retail outlets.

Beverage Spectrum covers new beverage products, as well as the marketing, packaging, and ingredient innovation trends behind those products. From the largest beverage marketers to regional distributors to the smallest corner stores, the beverage business is at its core about selling drinks. Beverage Spectrum is the guide for those who both sell them and create them.

Subscribe now and get 8 issues of the most comprehensive product focused magazine available!

Sign up online at www.bevspectrum.com/subscribe or complete the form below and fax to 1-866-528-2977.

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Beverage Spectrum covers new beverage products, as well as the marketing, packaging, and ingredient innovation trends behind those products. From the largest beverage marketers to regional distributors to the smallest corner stores, the beverage business is at its core about selling drinks. Beverage Spectrum is the guide for those who both sell them and create them.

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PROMO PARADEPROMOTIONS, EVENTS, AND SPECIALS FOR THE INDUSTRY

66.BEVERAGESPECTRUM.MAY-JUNE .2010

WAT-AAH’s _____ Idea

WAT-AAH! took on soda manufacturers with its “Don’t Drink _____, Drink WAT-AAH!” campaign. The campaign fi lled the blank spot with With “Soda,” “Sugar,” “Junk,” and “&#%+!,”

For the month of May, the “Don’t Drink ___” ads ran outdoors in New York City with wild-postings and street stencils. The cam-paign was accompanied by a viral execution showing the WAT-AAH! boy covering traditional soda icons and images that he en-counters on the streets. These videos and posters will also appear on the company’s website, YouTube, Facebook, and other social media sites. Additionally, print ads have been purchased to run in local family and parenting magazines in key markets across the country, such as Philadelphia, Boston, Los Angeles and San Diego.

Fruit2O Fights Diabetes

Fruit2O water is partnering with the American Diabetes Associa-tion to promote the fi ght to stop diabetes. As part of its small changes>Lifelong Results campaign, the Fruit2O brand is asking

Capt. Morgan’s Birthday Maxim

Captain Morgan celebrated his 375-ish birthday on May 15. In honor of the event, Captain Morgan teamed up with Maxim Maga-zine to host birthday bashes in Philadelphia, Las Vegas, Chicago,

Tampa Bay, and Minneapolis. Buddy Valas-tro and his team at Carlo’s Bakery (the

setting of the TV show “Cake Boss”) created a special birthday cake fea-turing Captain Morgan for the event in Philadelphia. Break Media sup-ported the event with a web video

celebrating “Captain Morgan Day.”

consumers to pledge to make a small change in their life that will have a big impact on their health. For every pledge collected at local events and through Fruit2O’s Facebook page, the brand will donate $1 (up to $5000) to a local, participating American Diabetes Association. The participating market that obtains the most pledges by Aug. 15 will win an additional $15,000.

From May 14 to Aug. 8, the Fruit2O brand will visit 10 markets with free samples of Fruit2O and a traveling pledge wall where visitors can post their own “small change.” Consumers can also submit their “small change” on the online pledge wall at www.facebook.com/fruit2o, and select a participating American Diabetes Association to receive the pledge. The pledge donation supports the following American Diabetes Associations: Chi-cago, Boston, Hartford/New Haven, Washington DC, New York, Cincinnati, Grand Rapids, Philadelphia, Baltimore, and Detroit.

Nestle Partners for Parks

Nestle Waters North America Inc. announced its 2010 partnership with the National Parks Conservation Association.

To support NPCA’s work, Nestle Waters North America will donate $600,000 to the organization. Additionally, Nestle Wa-ters’ Regional Spring Water brands will support the NPCA with specifi c restoration needs, including trail maintenance and con-struction, removal of non-native, invasive plants, wetland resto-ration and general park maintenance.

The partnership will be communicated at retail on select packages of Nestle Waters’ Regional Spring Water brands from May 2010 to July 2010, and through advertising, public rela-tions, and online marketing.

Nestle’s Arrowhead Brand Mountain Spring Water is also spon-soring a Facebook Cause promotion, through which the brand will donate up to an additional $40,000.

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Documents

Beverage Spectrum May-June 2010