Beverage Spectrum July-August 2011

August 30, 2011

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JULY-AUGUST 2011 vol.

9 :: no. 5

Columns 4 FIRST DROP Aiming for the Next Generation 6 PUBLISHERS TOAST Barry Loves Packaging 26 GERRY’S INSIGHTS The New World of DSD – Part 1

Departments 20

8 BEVSCAPE BUSINESS Deals at Mid-Year 12 BEVSCAPE INNOVATION Coconut Water Claims in Hot Water 16 CHANNEL CHECK Imported Beer 18 NEW PRODUCTS Lite Pom and Mocktails 32 COOLER CHECK-IN

32

A new category sprouts up 66 PROMO PARADE Pepsit brings back Ray

Expert Section 28 ENTREPRENEUR’S EYE The Importance of No 30 NEW SCHOOL BEVERAGE ADVERTISING The Death – and Re-Birth – of a Salesman 38

Features 20 BREWBOUND

2011 WATER GUIDE

Checking out Craft Imports 38 COVERS TORY: The Kombucha Crisis: One Year Later RTD by the Numbers and Brand News

Special Section 49 BEVNET’S 2011 WATER GUIDE 49

Our annual guide to the water category

COVER IMAGES COURTESY OF ERIC WILLIAMS AND XYIENCE 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 offices.

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Beverage Development Ingredient Supply Shots Energy Drinks Enhanced Waters and More Proprietary Flavors Premixes and Bases U.S. Distributor

THE FIRST DROP

By Jeffrey Klineman

By Brent Sonnek-Schmelz

AIMING FOR THE NEXT GENERATION I CAN’T REALLY SAY WHAT spurred his enthusiasm for the race that day, but there Charlie was, all six skinny years of him, throwing the competition an intense glare as he took his marks for the ¼-mile trek that would lead him – and a similarly charged-up cohort of 40 or so kids – to steeplechase through a shopping mall and back, all in the name of introducing them to physical fitness.

He made us so proud, with his intensity at the start, his drive to finish, and his sweaty grin afterward. What made him the proudest, however, aside from the flush of activity and the gleaming medal (for finishing – he’s got his old man’s lack of foot speed) was the knapsack full of swag handed to all the kids signed up for the run (to be held by their parents while they ran, natch!).

THEN

But my pride was doubled because the boy had done all of the (ahem) legwork for lazy old me on my next column. See, it turns out that that bag came chock-full of some of the latest generation of functional drinks and snacks. In addition to

4 BEVERAGESPECTRUM.JULY-AUGUST.2011

the obligatory Vitaminwater Focus, there was a Vita Coco and the new 8 oz. ZICO bottle. Also floating around were a bag of Pretzel Crisps and a KIND bar – both of which are pretty well known in industry circles. All the little guy was missing were some Popchips and Pirate’s Booty and he – along with the hundreds of other youngsters aged 5 to 15 who were doing the run or ride thing at the event – would have completed a full tour of his middle school vending machine, circa 2018.

It was quite a comment on the maturation of certain brands. Here were the consumers of the future and there wasn’t a Coke – or even a Minute Maid or Gatorade – in sight. No Cheetos or Doritos, no Slim Jims or fruit roll-ups, all the standard stuff of the tennis tournaments I’d played in as a kid.

NOW

The sampling crews on site had all worked previously for companies like Fuze or Hint. Marketing interns staffed Vita Coco and ZICO tables alongside veteran field operators, meaning that the word is out – these companies are becom-

ing (ugh!) respectable destinations to pick up training and experience. Even the requisite extreme athlete performer on site was emblazoned with sponsorships from healthy beverage companies.

That’s not to say that field marketing and sponsorship aren’t huge for older brands – obviously, there’s an incredible amount of range and depth in that area for flagship properties, from concerts to bowl games to the sponsorship of local charities. But what I found interesting is that the organizers of the event, who came from the mall itself, could be so discerning as to know there was another, newer layer of products they could offer up on the front lines when they put the whole thing together, something that would speak to the kids and their parents in the fitness-oriented but wholesome tone they wanted to achieve.

It’s also a comment on the power of sampling for so many of these companies, which ended up giving away copious amounts of high-margin products to the attendees – products that could, until recently, quite easily have been deemed too sophisticated for the kids themselves. Still, they all recognize that right now, with health such an overriding concern, the importance of establishing yourself in the psychic footprint of the next generation is of the utmost importance.

Now, my son isn’t much for trying new foods, and despite all the samples I bring home for him, when it comes to beverages, he limits himself to water, milk, and melted ice cream. So it was a strange sight indeed for him to unearth these drinks, which I’ve written about since he was learning to walk, and display them as a treasured reward.

Still, I guess I shouldn’t have been surprised. After all, he’s six. He learned to walk five years ago, and in that time there have been dozens of brands that have come and gone. The ones that sponsored the race have, I think, like Charlie, reaped the rewards that come from moving from a walk to a run.

PUBLISHER’S TOAST

By Barry J. Nathanson www.bevspectrum.com

Barry J. Nathanson PUBLISHER bnathanson@bevnet.com

THE WHOLE PACKAGE I AM A BIG ADMIRER OF GREAT packaging. I can think of no other industry that is more successful in its presentation of its products than the beverage industry. In no other business is there such a premium placed on packaging with regard to its ability to position, define and give clarity to what the essence of the brand is.

Without packaging, there’s just a puddle. With it, there’s not just a functional container but a key enticement to buy.

When you walk the aisles of our retail emporiums, the packaging must be eye-catching. You’re stimulated and enticed to try the offerings which are so beautifully displayed. No products initiate impulse buys like beverages, so the package has to beat out the competition.

So please allow me to share some thoughts on what I feel makes successful packaging First of all, I’m a big believer in proprietary packaging. If you can afford it, change the playing field. I can think of no other brand that helped define its uniqueness more than Fiji. Don’t settle for less than your vision.

Arizona didn’t settle, and its success speaks volumes.

Second, less is more when it comes to graphics and copy. If you need to beat the consumer down by spending too much time explaining what your product is and what it does, then you won’t succeed. Let the

visuals tell your story, but make sure the story has merit.

Third, be cognizant of the basics, like how the product works on the shelf.

Often, I’m sent prototypes of graphics, and one story exemplifies a lack of insight. A flavored water brand had its name aligned vertically, with the name running up. I pointed out that in a glide rack, the bottom is hidden, so the consumer wouldn’t see the brand name and only the word “water” would have been visible. They reversed the name design. This was caught in time, but too many mistakes aren’t.

Fourth, clean up the Nutrition Facts section. Most aren’t readable, and the consumer really does want to know what’s in it, and how much.

I like the “one bottle” serving size for instant consumption products – it’s just a more truthful representation of your ingredients.

Fifth, create special looks, either seasonal offerings or special promotional SKUs. It gives the buyer – and the retailer – a sense of excitement about your brand.

This list really only scratches the surface, but you get the sense of what I’m trying to say. It is important to distinguish your product.

Packaging is the “window to the soul” of your brand. Make that window as striking as possible.

Jeffrey Klineman EDITOR jklineman@bevnet.com

Ray Latif ASSISTANT EDITOR rlatif@bevnet.com

SALES John McKenna ASSOCIATE PUBLISHER jmckenna@bevnet.com

Adam Stern ASSOCIATE PUBLISHER astern@bevnet.com

Jeff Hyde ACCOUNT EXECUTIVE jhyde@bevnet.com

ART & PRODUCTION Matthew Kennedy CREATIVE DIRECTOR Natalie Iknaian GRAPHIC DESIGNER BEVERAGE SPECTRUM PUBLISHING, INC. John F. (Jack) Craven CHAIRMAN jfcraven@bevnet.com

John Craven PRESIDENT & EDITORIAL DIRECTOR jcraven@bevnet.com

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Available at these and other progressive retailers nationwide:

To find out more, contact Wes Strickland.

VP of Sales, at 888-231-2684 or hit OhYeahNutrition.com

BB

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

Summertime is Dealtime Edition Just like you, we thought things were going to be pretty quiet during the Dog Days. But as one of our columnists said, “summer isn’t supposed to be this busy.”

We guess we should have thought about it in late spring, which brought the surprise sale of Whey Up and the early buyout of Sweet Leaf Tea by Nestle. But things really heated up just in time for this issue, with the purchase of Function Drinks by Sunsweet Growers Inc. and a major investment in Purity Organic

by First Beverage Group. Additionally, Icelandic Glacial pulled in major investment capital.

It’s all detailed below in our super-handy Deal Profiles.

strong, steady hold on its own agricultural category. The facility has bottled products for PepsiCo and Adina, among others.

Meanwhile, the company has also recently made small investments in a pair of entrepreneurial beverage companies, including Ayala’s Herbal Water and C2O, a coconut water company.

Sunsweet adds Function Drinks

Purity Organic Pulls in First Bev Bucks

Function Drinks, once seen as a potential heir to the grow-fastand-flip national DSD model exemplified by Glaceau, was sold by its founders and investors to produce and beverage manufacturer Sunsweet Growers Inc. Deal terms weren’t disclosed in terms of dollar value, but the company made offers to retain all of its employees and both parties emphasized that it would continue to operate as a largely independent entity.

In an equally relevant development, the deal introduced Sunsweet’s new incubator program for beverages: a subsidiary called Disruptive Beverages Inc. Function is a line of health and performance new age beverages with names like Urban Detox, Light Weight, and Alternative Energy. Originally rolled out nationally with multi-million dollar investment from the likes of Wall Street investor Bruce Wasserstein — as well as many of the distributors who initially brought it to market — Function was started by three friends in Los Angeles, including an orthopedist, Dr. Alex Hughes. With a big wallet and a strong Los Angeles following, the brand attracted top-flight sales talent, including SoBe veteran Bob Miller to run its sales operation.

After quickly gaining store shelves nationwide, however, the economy fell into deep recession — hurting the company’s initial model of spending heavily to juice revenues, and leaving Function something of a cautionary tale. Miller and much of his highpowered sales team eventually left, and the company was forced to work from a much smaller retail footprint.

The brand fought back, however, eventually cutting down a myriad of SKUs to just three varieties, and dedicating itself to key channels and tight focus. Since 2009, the company has reversed its course, demonstrating discipline and staying largely under the radar. The brand began looking for investors or acquirers early this year, according to a person with knowledge of the deal.

Sunsweet, best known as a collective selling prunes and prune juices, has become increasingly active in the beverage industry in recent years due to its large-scale co-packing capabilities and its

In its first major investment since selling off most of its holdings in Activate Drinks, LA-based First Beverage Group picked up a stake in San Francisco-based Purity Organic Juices. While details regarding the exact size and amount of the investment have not been disclosed, Tom First, a co-managing director at First Beverage Group, described the deal as being a “significant investment for a significant part of the company.”

First, a co-founder of Nantucket Nectars, will play a strategic role in shaping the next stages of development for Purity and said that the company will continue to focus on growth in the existing core markets of Northern and Southern California and New York.

Based on the availability of distribution and retail partners, it will also look to enter three to four new markets in the coming year.

Purity Organic Juices was founded in 2006 as an offshoot of Purity Organic Produce, the largest supplier of tree picked fruit in the world. Through its investment in the company, First Beverage will look to continue and expand upon the growth of Purity, which, according to First, has achieved a 30 percent growth in revenues in each of the last three years.

“Like Nantucket Nectars, Purity has proven traction in the marketplace, a basic foundation for a great brand, opportunity for capital investment, and a product that can fit into the portfolio of distributors, retailers and consumers,” First said. “Additionally, Purity’s quality is second to none. The company has the opportunity to redefine what quality juice is in the same the way that Nantucket Nectars did back in the 1990s.”

As part of First Beverage’s investment, Purity’s juice and produce units will become two separate entities, though the juice unit will retain the ability to use the Purity trademark for its current and future offerings. In doing so, First noted the strength of brand name to potentially develop new product lines and stated that, “With a name like Purity Organic, the field is pretty wide open for other things that we can do in organic beverages, and we’ll certainly consider them.”

8 BEVERAGESPECTRUM.JULY-AUGUST.2011

We Stretch Our Lead, You Stretch Your Margins FIJI Water continues to hold its #1 rank in the premium bottled water segment.

Let the #1 brand continue to drive your category profitability: Increase Profits. We deliver more dollars per gallon than any other top-10 water brand.* Increase Rings. FIJI Water increases shopping basket rings by 130%!** Be #1. Year after year, we are still #1. In fact, we outsell all other premium brands combined.* 1.888.426.3454 FIJIWATER.COM *Source: IRI FDMx 52 Weeks Ending 6/19/11, **IRI Household Panel Data, 52 Weekes Ending 12/18/10. Š 2011 FIJI Water Company LLC. All rights reserved.

BB Icelandic Glacial Accretes Cold Cash

›› LOOKING FOR LOVE This summer had some losers as well as some winners. Of course, they’ll disagree with the word “loser,” so we will use the more nuanced term “in the red” to describe their current situation, but any way you look at it, New Leaf, Thomas Kemper and Adina are all in the hunt for some quick cash or some other options to stay afloat.

Here are some details:

In late May, Icelandic Glacial raised nearly $40 million in equity from new and existing investors, including the conversion of $28 million in debt to equity on the part of Anheuser-Busch InBev and another $12 million in new investment. But a couple of months later, it picked up another $13.5 million from Bidvest Group in Johannesburg, SA. The beer company now owns about 23 percent of the “carbon neutral” water company, while Bidvest picked up a stake of nearly 15 percent and has the right to take it up to 20 percent.

Bidvest is expected to help add more new, international markets for Icelandic Glacial.

“We believe Icelandic Glacial has huge potential in the international marketplace which we know well,” said Bidvest CEO Brian Joffe. “We are delighted to be able to support this strategic business during a key stage in its development.”

The company also reported that year-over-year sales growth increased 86 percent in the first quarter of 2011 – the result of newly landed accounts like Circle K, Hilton , and Walgreen’s, as well as sales in Russia, China and Canada.

“Icelandic Glacial came of age in 2010, a time in which an ever growing number of people in the world are embracing high quality water that is pure, safe and environmentally responsible” remarked Jon Olafsson, Chairman and co-founder, Icelandic Glacial. “Growing our distribution in 2010 and into 2011 has given more people the opportunity to try our exceptional water from Iceland, and when given the choice, investors and consumers alike are choosing Icelandic Glacial.”

10 BEVERAGESPECTRUM.JULY-AUGUST.2011

Adina Agita While Sunsweet was acquiring Function, another once high-flying Vitaminwater heir was on the verge of rapidly deflating. This summer, news that the company had been talking to potential investors also led to speculation that current CEO John Bello – yes, the erstwhile Lizard King – was on the way out, possibly to try to buy out the company himself.

As that was taking place, however, Adina President Norm Snyder told us that the company was definitely hurting – saying it needed about $10 million by year-end or it would hit a winter hibernation.

“It just takes time to get from Point A to Point B,” Snyder said. “And obviously money.”

New Leaf Needs You Also making a general shout-out was New Leaf Tea, a highly-consumable all-natural brand that has been beset with money troubles over the past year and has begun looking hard for alternative financing schemes to its current publiclytraded situation.

Hard-working CEO Eric Skae recently filed notice that New Leaf’s board would consider strategic alternatives to their current fund-raising strategy, as he has been unable to get the financing to fund the product needed to meet demand.

Its sales dropped from about $1 million to under $700,000, while margins shrank.

Ideas are welcome, according to Skae’s filing, including sale, roll-up, merger, sale of assets. Industry experts indicated there was interest in the brand and the name, and the company remains a headliner in the Coast Brands portfolio in the West.

Thomas Kemper Does, Too Also looking for strategic assistance is Thomas Kemper, a craft soda which has also taken on investment money from First Beverage in the past.

Based in the Pacific Northwest, Thomas Kemper was looking for help to improve production and distribution of its natural and diet lines – and would take it any way it could get it, including the same slate of potential routes as New Leaf: sale, recapitalization, merger, asset sale, or rollup.

Yoo-hoo, DBI? Hello?

BI

BEVSCAPE INNOVATION • Product development & marketing news

Consumer Group: Coconut Waters Fall Short on Electrolyte Claims A review of the electrolyte content of the three leading coconut water brands, ZICO, O.N.E., and Vita Coco by the consumer group ConsumerLab.com found that samples of both Vita Coco and O.N.E. fell short with regard to two key hydrating elements on their nutrition panel.

Coconut water has gained in popularity because of its natural hydrating functionality as well as its lighter taste profile and clever marketing; the group began to examine the brands because of its growth and functional claims, according to ConsumerLab.com’s president, Dr. Tod Cooperman, who has also examined products like 5-Hour Energy in the past.

The use of coconut water as a sports drink like Gatorade or Powerade has become increasingly important in recent months.

While all three brands have had healthy auras, initially ZICO was most closely focused on the athletic arena. Both Vita Coco and O.N.E. have begun marketing more directly to athletes over the summer, however. The electrolyte content is only one element of hydration, of course, but it has become a key marketing component for all three brands.

“Because they are mostly water, all coconut waters can provide hydration, but those that provide more sodium, at least 110 mg of sodium per cup, will be the best choice for replenishing electrolytes,” says Dr. Cooperman.

Of the three, only ZICO came matched its stated content for key electrolytes sodium (160 mg), potassium (569 mg), and magnesium (35 mg), as well as sugar (12 g). ConsumerLab.com tested ZICO’s bottled variant, which is made from concentrate, and also is approximately 20 percent larger.

Both O.N.E. and Vita Coco fell short on their nutritional information when it

12 BEVERAGESPECTRUM.JULY-AUGUST.2011

came to sodium and magnesium, according to ConsumerLab.com, with one of the companies showing that contained only 18 percent of its claimed amount of sodium. Both O.N.E. and Vita Coco hit their claimed amounts for potassium and sugar.

For his part, ZICO founder Mark Rampolla said that one of his company’s key concerns has been locating suppliers that can meet his company’s specifications.

“We’ve worked very hard with our suppliers to make sure our bottled Zico can maintain great and consistent taste and nutritional profiles,” he said.

Vita Coco spokesman Arthur Gallego told Health.com that the difference between the label claims and the tested results may have had to do with consistency issues in coconut batches, as the company sources its products in both Brazil and Southeast Asia.

He also told the network that the results weren’t typical of Vita Coco’s average nutritional content.

But consistency has become an issue for the companies, particularly given the battle for supply that has accompanied the category’s growth. All three brands tested have been forced to add coconuts from Thailand, Indonesia, and other countries to replace or supplement their supply of Brazilian coconuts.

“The product is produced by PepsiCo in Brazil under very strict quality control,” said O.N.E. founder Rodrigo Veloso. PepsiCo is a majority owner of O.N.E. and also owns Amococo, the world’s largest coconut water company.

Rampolla said that his company also makes a point of declaring its nutritional information on the low end of the scale to meet testing requirements.

“We’ve been conservative about what we claim,” Rampolla said.

Red Bull Kills Cola, Energy Shot Red Bull North America has discontinued production of its energy shot and cola.

While the decision was a poorly-kept secret in the end, what was surprising was that the shot had become a second-place brand to shot leader Five-Hour Energy, albeit a distant one, with about $40 million in sales.

Red Bull will “sell through existing inventories of Red Bull Cola and Red Bull Energy Shot, but not proceed with additional production,” and refocus efforts on growth of its core brand within the rapidly expanding energy drink category, the company said in a statement e-mailed to BevNET. As for the CSD, since its debut in 2008, Red Bull Cola struggled to excite consumers and retailers in part due to its unique flavor profile and some controversy regarding the company’s use of coca leaves in the beverage. However, it may be the cola’s premium price point that was been its biggest impediment to success. A 12 oz. can of Red Bull Cola sells for around $1.50 in comparison to $1.00 or less for a similarly sized Coke or Pepsi product.

Nevertheless, with a nearly 40 percent share of the energy drink category – pegged by Mintel to grow to nearly to $8 billion by 2015 – Red Bull noted that the company has “ambitious plans for growth and is well-positioned to continue the momentum that has led to the brand’s dominance of dollar share within the category.”

Energy this. Energy that.

Let’s face it. The consumer is bombarded with way too many beverages and shots. Fact is, they are basically the same kind of spin on energy drinks.

Isn’t it time for a change?

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BI Muscle Milk Warned by FDA The Food and Drug Administration has issued a warning letter to Muscle Milk maker Cytosport saying the dominant protein drink brand’s labels could be misleading to consumers.

The agency’s concerns strike at the brand’s very core: the chief labeling issue is that the company’s RTD beverage is called “Muscle Milk” when it does not contain milk. The FDA also cited other nutrient content claims in a variety of Muscle Milk products, including its shakes and energy bars.

The FDA, which sent the notice on June 29, gave Cytosport 15 days to reply and outline actions to correct the violations.

But there may be no simple remedy.

“I think they’re going to have to rethink their entire brand identity,” said Justin Prochnow, an attorney with Greenberg, Traurig, who has handled many cases dealing with FDA regulations. “Basically, FDA is saying there’s not milk in it and yet you identify it with milk so much. It’s a big problem for them.”

Nevertheless, the FDA has been slow to follow up on warning letters like the one it sent Cytosport; a warning letter to relaxation drink Drank insisting that the company change its label and marketing to identify itself as a dietary supplement instead of a beverage was filed two years ago, Prochnow said, and the brand continues to call itself a beverage.

“I think it’s a case of them not having the resources to go back and follow up over time,” Prochnow said.

For Cytosport,the warning letter comprises the latest development in a case that has aggravated the company in one form or another for the past two years. In 2009, Cytosport competitor Nestle USA – which makes milk-derived products like Nesquik — filed a complaint about Muscle Milk with the Better Business Bureau, which referred the case to the FDA and the Federal Trade Commission.

The brand has been something of a pioneer in the sports and nutrition drink category, taking its powdered mixes and successfully turning them into an RTD

product with sales exceeding $25 million and a distribution deal with PepsiCo. Muscle Milk had previously entered into an agreement with at least one government agency, the FTC, to ward off regulatory penalties, agreeing to include the phrase “contains no milk” on its labels. The FTC closed the case in May 2010, after the company agreed to the labeling and marketing concessions.

But the FDA expressed concern with the exact same labels that the FTC approved, telling Cytosport that because the product listed milk-derived ingredients like calcium and sodium caseinate, milk protein isolate, and whey, but its label also contained an allergen statement that Muscle Milk contains ingredients derived from milk, “The ‘contains no milk’ statement could give consumers the impression that these products are free of milk-derived ingredients.”

Nestle had also filed requests with the U.S. Patent and Trademark Office to revoke Muscle Milk’s trademarks, although those were also dismissed in May of 2010.

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14 BEVERAGESPECTRUM.JULY-AUGUST.2011 BeverageSpectrum_8-11.indd 1

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

SPOTLIGHT CATEGORY

IMPORTED BEER 52 Weeks through 7/10/2011 SOURCE: Symphony/IRI Total food/drug/c-store/mass excluding Wal-Mart.

Interesting look at imports for what this summary say: that small craft imports are helping drive a slight recovery for the category (see our Brewbound report in this issue for more details on that trend). While this shows a less than 2 percent improvement over last year, in 2010 overall imports bloomed by 5 percent. Stella Artois, driven by lots of marketing, is finally starting to make headway, cracking the top 10. Also note the continued strength of chase pack of Mexican brands like Modelo Especial. Ain’t that special!

IMPORT BEER Brand

Dollar Sales

Change vs. year earlier

Corona

$921,383,600

-0.48%

Heineken

$566,285,100

-2.16%

Modelo

$300,890,000

16.35%

Corona Light

$166,275,900

-2.37%

Tecate

$156,168,400

-10.84%

Labatt Blue

$115,065,600

-3.36%

Dos Equis XX

$111,081,200

22.67%

Labatt Blue Light

$104,952,600

3.92%

Stella Artois

$101,367,000

26.17%

Newcastle Brown

$78,227,470

-0.87%

Heineken Premium Light

$74,687,590

-17.91%

Becks

$60,487,820

7.77%

Pacifico

$55,978,340

-1.78%

Guinness

$54,024,760

0.09%

Fosters lager

$43,202,370

-1.14%

Molson Canadian

$38,568,220

9.16%

Red Stripe

$34,088,310

-8.92%

Amstel Light

$31,689,070

-10.97%

Negra Modelo

$27,391,100

1.64%

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

TOPLINE CATEGORY

VOLUME

52 Weeks through 7/10/2011

BEER $21,938,946,000

BOTTLED JUICES $5,177,314,000

BOTTLED WATER $7,762,656,000

ENERGY DRINKS $7,124,179,000

SPORTS DRINKS $4,030,826,000

TEA/COFFEE $3,204,824,000

0.70%

1.11%

1.90%

16.54%

13.90%

6.22%

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

16 BEVERAGESPECTRUM.JULY-AUGUST.2011

CC

WATER Brand

Private Label

HOT! Nestle Pure Life Dollar Sales

Change vs. year earlier

ENERGY Brand

HOT! Rockstar Dollar Sales

Change vs. year earlier

$1,007,477,000

4.11%

Red Bull

$2,408,032,000

14.98%

Aquafina

$699,555,600

-2.20%

Monster Energy

$1,263,176,000

24.14%

Glaceau Vitamin Water

$671,937,100

-5.71%

Rockstar

$449,508,400

13.63%

Dasani

$627,444,500

-0.17%

Nos

$225,085,200

13.06%

Poland Spring

$380,162,900

1.43%

Monster Mega Energy

$185,562,500

28.58%

Nestle Pure Life

$346,122,000

27.60%

Java Monster

$179,227,900

5.68%

Glaceau Smart Water

$318,551,600

25.73%

Amp

$140,011,000

-0.45%

Deer Park

$232,940,700

-0.07%

Rockstar

$104,935,900

358.48%

Arrowhead

$195,459,500

-7.46%

Full Throttle

$102,126,000

-9.91%

Ozarka

$193,979,200

3.63%

Monster Energy XXL

$89,816,440

-3.54%

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

52 Weeks through 7/10/11

NOT! Arrowhead

SPORTS DRINKS Brand

Gatorade Perform

HOT! Gatorade Recover Dollar Sales

Change vs. year earlier

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

52 Weeks through 7/10/11

ENERGY SHOTS

NOT! Full Throttle

HOT! E6

Brand

Dollar Sales

Change vs. year earlier

5 Hour

$915,876,400

39.61%

Stacker 2 6 Hour Power

$29,454,410

-5.72%

$1,966,116,000

181.51%

Powerade ION4

$661,853,600

19.04%

Gatorade

$406,573,200

-55.52%

Red Bull

$22,276,590

-41.32%

5 Hour Energy Extra Strength

$12,901,690

92.29%

Private Label

$11,190,230

98.03%

Gatorade G2

$402,288,400

207.29%

Powerade Zero

$188,008,700

38.58%

Gatorade Frost

$54,484,460

-65.68%

Monster Hitman

$7,399,158

-57.39%

G2

$50,486,910

-80.73%

Worx

$5,636,410

N/A

Gatorade Cool Blue

$48,363,980

-56.82%

Stacker 2

$4,168,658

182.83%

Powerade

$38,404,470

-8.47%

Gatorade Recover

$32,180,930

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

52 Weeks through 7/10/11

NOT! G2

ALOE DRINKS Brand

224.82%

HOT! Georges Dollar Sales

Change vs. year earlier

Nitro 2 Go

$3,341,310

-16.55%

E6

$3,318,373

31,546.17%

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

52 Weeks through 7/10/11

Cappuccino/Iced Coffee Brand

NOT! Monster Hitman

HOT! Illy Issimo Dollar Sales

Change vs. year earlier

Fruit Of The Earth

$576,468

29.62%

Frappuccino

$546,951,400

5.74%

Lily Of The Desert

$405,795

9.21%

Doubleshot

$247,749,000

13.85%

Aloe King

$399,357

14.87%

Seattles Best

$10,973,870

409.44%

Jayone

$123,015

10.27%

Doubleshot Light

$9,383,701

-12.26%

Georges

$107,286

141.44%

Private Label

$8,133,416

39.40% 432.60%

Request

$94,479

-3.18%

Illy Issimo

$2,616,820

Aloe Organics

$29,876

26.94%

Emmi

$1,112,227

-3.95%

Sabila

$23,390

N/A

Pomx

$495,095

-49.88%

Aloe Life

$20,663

-5.46%

Community

$400,882

-11.36%

Lakewood Organic

$19,371

43.30%

Cinnabon

$339,235

-86.20%

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

52 Weeks through 7/10/11

NOT! Aloe Life

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

52 Weeks through 7/10/11

NOT! Cinnabon

JULY-AUGUST.2011.BEVERAGESPECTRUM 17

NP

NEW PRODUCTS • The newest options for cooler and shelf.

Coconut Water

Juices

Cubed3 has introduced a new Hydration line of Coconut Water, sweetened with brown rice syrup, which helps athletes rehydrate and recover quicker. Fortified with vitamin C and electrolytes, Cubed3 Coconut Water comes in five flavors: Purple Passion, Blue Freeze, Lush Lime, Ruby Red and Orange Zest. Cubed3 is seeking distributors for the product, which is packaged in 16 oz. bottles for a recommended retail price of $1.99. For more information, call 1-888-934-3788.

POM Wonderful is introducing the new beverage LITE POM, which is a lighter version of POM Wonderful’s 100 percent Pomegranate Juice. LITE POM is POM Wonderful, tempered with water, infused with tea and sweetened with pure fruit juices, and has no corn syrup or artificial sweeteners. Located in the produce section of stores nationwide, LITE POM is available in four flavors: Pomegranate, Pomegranate Black Currant, Pomegranate Blackberry and Pomegranate Dragonfruit.

The beverage comes in a 16 oz. container with a suggested retail price of $2.49. For more information, call 702-739-4723.

Enhanced Water bot has introduced a new packaging that is designed to look light and airy. Introduced in 2007 as a kids beverage with marketing targeted toward moms, the drink proved popular with adults and will now be targeted for health-minded adults between 18-34, but the formula is unchanged. The packaging features color blocking with green, orange, blue, red yellow and purple aims for a strong shelf presence for the brand. Available in upscale food stores in 16.9 oz. plastic bottles, the suggested retail price is $1.49. For more information, call 212-865-3324.

Relaxation Drinks Just Chill, the natural stress relief beverage with L-theanine, Lemongrass, Gingko Biloba & Ginseng along with natural fruit flavors is now being sold in 4-packs of 8.4 oz. cans.

With natural stress inhibiting ingredients and a thirst quenching explosion of taste and function, Just Chill is available in Whole Foods Markets and has a recommended retail price of $7.99. For more information, call 323-462-6600.

Bottled Water

Energy Shots

Keeper Springs is a bottled water company founded by Robert F. Kennedy Jr, and donates 100 percent of its profits toward protecting America’s waterways. Employing LEED certified bottling facilities, Keeper Springs uses 50 percent recycled PET bottles and 100 percent natural and sustainable spring water. The bottles are 500 and 700 ml, for suggested retail prices of $.69 and $1.39, and Keeper Springs is available in the Northeast, Mid-Atlantic and California. For more information, call 516-767-9653.

Penthouse is introducing sexual wellness shots. The shots are available in two types, the Per4mance Shot for men, and the Pleasure Shot for women. The Per4mance and Pleasure Shots are designed to increase libido, sensation and desire with two uniquely designed formulas for men and women using well known herbs and ingredients. The drinks are packaged in 2 oz. shots for a suggested retail price of $4.99 and are available nationally. For more information, call 586-778-2143.

Powders and Tablets CSD’s Big Red is rolling out a new logo and advertising campaign. The new graphics feature a sleeker version of the popular “splash,” a distinct, customized font and subtle bubbles in the background. Big Red is available nationally for a suggested retail price of $3.99 to $4.99 for their 12-pack of cans, while 2L bottles have a suggested retail price of $1.59 to $1.79.

For more information, call 512-501-3867.

18 BEVERAGESPECTRUM.JULY-AUGUST.2011

Crystal Light has introduced new Crystal Light Mocktails, with the flavors Appletini, Margarita and Mojito. Crystal Light Mocktails are available in 6.9 oz. packages with a suggested retail price of $4.50. For more information, call 415-365-8547.

Mixers ELIXiR Floral Infusions is a new line of natural, artisanal beverage and food flavorings

NP with flavors Damascan Rose, Antillean Hibiscus, Andean Fire Orchid and English Lavender. Distributing on the West Coast, Chicago, Ohio and New York, the mixers have captured the silver and bronze awards in the 2011 Los Angeles International Wine and Spirits Competition. With each serving containing just 20 calories, the product is packaged in 9 or 17.5 oz. glass bottles with suggested retail prices of $15.99 and $22.95. For more information, call 323-337-9042.

Tea

product is packaged in 16 oz. PET bottles, the suggested retail price is $1.69. For more information, call 310-882-4007.

Coffee Whynatte has introduced a 4-pack of Whynatte Latte, which retails for $7.99.

Founded by two high school friends, Whynatte is a natural option for consumers who rely on coffee as a traditional stimulant.

Available in Georgia, Alabama, Ohio, Texas and New York, Whynatte Latte is packaged in 8 oz. cans. For more information, call 678488-2909.

Crystal Geyser is introducing a new line called California Teas, a refreshing line of Spirits 100 percent natural iced and green teas inHeaven Hill Distilleries is introducing HPspired by sunny California. Lightly sweetNOTIQ Harmonie, a liqueur that infuses ened with pure cane sugar, these brewed premium French vodka with natural fruits, teas are only 45 calories or less per 8 oz. flowers and Cognac. This unique harmony is serving. The product comes in several being launched nationally this summer and flavors, Original Sunshine Iced Tea, Origican be served straight, on the rocks or mixed nal Sunshine Green Tea, Summer Peach, in a cocktail, and has a suggested retail price Lemon Twist, Strawberry Patch, Coastal 15062 Dailys RTD BEV SPEC 1-2 PG Trade Ad.MECH_Layout 1 4/27/11 of 3:46 PM Page 1 750 ml bottle, though 1 li$22.99 for the Blueberry Green Tea and Apple Harvest ter, 375 ml and 50 ml sizes are also available.

Green Tea. Available in California, the For more information, call 212-799-1717.

Sensational taste and consumer pleasing package innovations have helped Daily’s produce truly remarkable success in RTDs. So, what does +237%* annual growth look like?

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WHERE GREAT COCKTAILS START.TM *IRI sales data for 12 month period ending 12/10

dailyscocktails.com ©2011 American Beverage Corp. Verona, PA 800.245.2929 5% - 6.9% alc/vol (10 - 13.8 proof) PLEASE DRINK RESPONSIBLY

JULY-AUGUST.2011.BEVERAGESPECTRUM 19

Brewbound

A BETTER WAY TO EXPERIENCE BEER

By Christopher Furnari

FOREIGN CRAFT BREWERS CAPITALIZING ON U.S. GROWTH U.S craft beer market is surging – but a nice secondary benefit is that many small brewers outside the U.S. are beginning to pay closer attention.

The Brewers Association recently reported dollar sales for America’s small and independent brewers were up another 15 percent over the first half of 2011. The U.S. now boasts 1,790 breweries with another 725 in planning.

But domestic makers aren’t the only ones trying to cash in: crafty beer producers from aboard like Mikkeller and BrewDog have recognized the demand for full flavored beers in America.

Mikkel Borg Bjergsø, for which the popular import Mikkeller is named, said he ships almost 50 percent of his product to the U.S. – a staggering amount for a company that made just 4,000 barrels (just north of 1.3 million 12 oz. beers) in 2010.

“We can’t keep up with the demand anywhere at the moment,” said Bjergsø. “I like to supply my U.S. importer the best I can.”

And that’s a good thing, because with so much growth in the category, at times, U.S. craft brewers are having trouble keeping up with domestic demand. And that means that when distributors and retailers add exciting new foreign varieties, it can help keep consumers happy.

It has also helped the import market overall, as it recovered from a 10 percent decline in 2009 to increase by 5 percent last year, according to the Brewers’ Association, an organization representing craft brewers.

Like many other exporters, Bjergsø is focusing more closely on the U.S. market than his own backyard, in an attempt to capitalize on the tremendous growth in the craft category over the last two years.

“Denmark is very small and not a lot of people are into craft beer,” he said. “The market is next to nothing and there is very little business opportunity here.”

Bjergsø added that he plans to up

20 BEVERAGESPECTRUM.JULY-AUGUST.2011

BrewDog Co-Founders Martin Dickie and James Watt with their limited release brew, End of History.

production to nearly 7,000 barrels of beer this year, most of which will be made in styles that many Americans can already find at their local brewery.

“He has really only become this rock star of a brewer by virtue of his sales in the

U.S.,” said Will Shelton, one of the founders of Shelton Brothers, a leading beer importer.

Shelton added that nobody could have predicted the success Mikkeller has seen.

“We didn’t have any idea this was going to happen, we just liked his beer,” he

PHOTO COURTESY OF THE DIGITAL NEWSROOM AND BREWDOG LTD.

IT’S NO LONGER NEWS THAT THE

ne

w!

Brewbound

A BETTER WAY TO EXPERIENCE BEER

said, but he thinks that because it’s from overseas it gives it extra cache, if not a qualitative advantage.

“Let’s face it,” Shelton said.”You can buy a six pack of something similar, made in the U.S. for the same price as a 16 oz. bottle from abroad that sells for $8.”

around the world, believes it’s the unusual spin on familiar styles that appeals to the craft community.

“These brewers are totally inspired by the American craft beer scene,” he said.

“Mikkel has access to different things in Europe that many American Brewers do not. He has different malts, yeast and equipment that he can utilize to make an American IPA with American hops, and it tastes very foreign.”

And if foreign is what American consumers are clamoring for, look no further than BrewDog, a brand widely regarded for pushing the boundaries of what’s acceptable – even if that means serving a 55 percent ABV beer in the carcass of a dead squirrel, as it famously did last year with its End of History limited release.

“Our mission has always been to make

“These brewers are totally inspired by the American craft beer scene. Mikkel has access to different things in Europe that many American Brewers do not. He has different malts, yeast and equipment that he can utilize to make an American IPA with American hops, and it tastes very foreign.”

Knowing that, why are so many American consumers giddy for a beer that mimics what hundreds of brewers are already doing in the U.S.?

Max Toste, owner of Deep Ellum, a craft beer bar in Boston, Mass. that prides itself on serving beer imported from

By Christopher Furnari other people as passionate about great craft beer as we are,” said Co-Founder James Watt. “This is much easier to do in the U.S. than the UK.” BrewDog exports 55 percent of its beer, 15 percent of which makes it to the U.S. “In America, uninhibited, challenging and progressive craft beers are flourishing,” said Watt. “The U.K. is a desert for progressive craft beer.”

So knowing that, are beer enthusiasts “across the pond” demanding American craft beer? If they are, there’s only a small trickle available, again because of the high domestic demand they’re competing against.

The Bruery, from Placentia, Calif., for example, sold just over 3,000 barrels in 2010, but exported less than five percent of that total, according to Manager of Sales and Marketing Benjamin Weiss.

“We are not reaching out for international distribution because there is plenty of growth here in the US,” he said.

“We only sent some abroad because we were approached by an importer who wanted our beer.”

To learn more about our OctoberFest program, contact your representative or email displays@samueladams.com Savor The Flavor Responsibly®

22 BEVERAGESPECTRUM.JULY-AUGUST.2011

SOURCE: IRI LIFT AND SALES VOLUME DATA, YEAR-END 2010 VS AVG CRAFT BAND

©2011 THE BOSTON BEER COMPANY, BOSTON, MA

GERRY’S INSIGHTS

By Gerry Khermouch

THE NEW DISTRIBUTION LANDSCAPE – PART 1 AT A TIME WHEN SO MANY Americans make their livelihoods by moving electrons around, dragging heavy cases of liquid from a warehouse to store shelves might seem to be an anachronism.

Certainly, it’s not an easy way to make a living, especially since some of us consider a trip from our desk to the coffee machine to be exerting. After decades of wholesale and retail consolidation, the odds of failure are high, too. Yet in the past couple of years, the direct-store delivery options available to new beverage brands seem to have been growing again, albeit in halting steps and with occasional reversals. If you believe – as I do – that DSD remains crucial to building early-stage brands, this would have to rank as a heartening development.

Certainly for those who aren’t that close to the innovation side of the business, the trend would seem to be going in one direction only. The moves by Coca-Cola and PepsiCo to acquire their biggest independent bottling operations in North America, coupled with Dr Pepper Snapple Group’s continued expansion of the footprint of its company-owned bottlers, would seem to leave no question about that. But increasingly those systems are highly tuned machines for getting mass brands to retail chains and major foodservice accounts. In that sense they’re irrelevant to the task of getting low-velocity brands started.

At the more granular level, however, where nascent brands are trying to get their first foothold in “influencer” accounts like delis, independent grocers, natural food stores and cafes, the number of new entrants on the non-alcoholic side has been growing. Just as I preach to entrepreneurs that the range of strategic partners they should consider extends well beyond Coke and Pepsi, so should they take a broad view of the available DSD options.

How broad? How about broad enough that we’re going to have to split our survey

26 BEVERAGESPECTRUM.JULY-AUGUST.2011

into two columns, this month looking at some of the more mainstream options who have garnered momentum, and next month checking out a few of the more esoteric choices out there. Ready? Here we go: Startups. It’s so astonishing, given the stiff odds, that anyone would even want to give running a startup direct store delivery option a go. But they’re out there and they’re actually showing promising signs.

In Pittsburgh, long starved for good DSD options for NAs, Jones Soda vet Mark Slepak has teamed with local copacker Castle to open Full Circle. In San Diego, an entrepreneur from the technology sector, Satwant Gill, launched a standalone NA operation, added specialty beer and now has pooled resources with venerable LA shop Haralambos. In the costly and complicated New York market, there have been a flurry of new entrants.

Several years ago Exclusive Beverage was launched by former Big Geyser employees, and they were joined more recently by the likes of High Five, launched as a self-distribution effort by the marketer of Powerball energy drinks, and Harney, similarly launched to move that company’s bottled teas. In a class of its own is Green Shoots, formed by Nat Noone and former Odwalla colleagues who’re determined to build a national DSD network – one truck at a time. They’re in half a dozen metros by now and early reviews are encouraging.

Beer wholesalers. Sure, some beer houses have played successfully in NAs for years, helping build the Snapple, SoBe and Vitaminwater brands. Most – particularly the insular Budweiser network – haven’t.

They’ve had good reasons for their reticence: different retail dynamics, novelties such as slotting fees, and the need to call on non-licensed accounts that do nothing to build their beer business. Most of

all, beer houses accustomed to receiving fair market value at the rare times that a brand leaves their house find it galling to see NA brands skip off into the arms of a Coke or Nestle for a pittance. But those negatives began to fade in the face of an unnerving notion: that premium beer brands may be entering the twilight of their life cycles. While specialty imports, craft beers and malternatives are picking up some of the slack, NAs are starting to look more enticing. Some, like Coors house Crescent in New Jersey and Bud houses Hensley and Spike in Arizona, seem to be really running with NAs. A few – Hensley and Spike included – are even taking their NA show statewide, facing off against each other. It’s confusing all right – but makes for more doors.

Refrigerated players. Another intriguing development has been the foray of refrigerated distribution operations – dairies and ice cream vendors – into shelf-stable beverages. After all, they call on the same accounts and, facing saturation in their core businesses, have been looking for other items to carry. In New York, for instance, dairy distributors Dora’s Naturals and Tuscan Farms have both thrown their hat into the shelf-stable ring. Ice cream distributor Jack & Jill likewise is in the game, picking up brands like Jones Soda in mid-Atlantic markets.

That’s a pretty good mix of new options, right? But wait – there’s more! as the hucksters say on late-night TV. In next month’s column, I’ll run down a few lessconventional options.

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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ENTREPRENEUR’S EYE

By Brent Sonnek-Schmelz

THE IMPORTANCE OF NO! RUNNING A SMALL COMPANY can be the most exciting thing in the world. Every second consumes you and you dream about what could be. It’s better than pizza or sex and becomes infectious.

You think you can accomplish anything.

Sometimes you are right, but often, this is when you make the largest mistakes.

At RelaxZen, we were at this point last June. Everything was guns a blazing. We had just signed a dozen distributors, Rite Aid was coming on board and the relaxation category was hot hot hot. So many people were telling us we were leading the category in the “Year of Relaxation,” that in our minds mass acceptance of the category, and of RelaxZen, was a foregone conclusion.

With smooth sailing ahead of us, we made the decisions to hire three additional full time people, basically doubling our payroll, and produce a very large amount of product. We hired and produced ahead of an anticipated surge in demand at the distributor and retailer level and to cover niche sales channels we believed sold to key influencer segments for RelaxZen. We also committed to three of our largest marketing spends to date. One was a volleyball sponsorship, the second a social media campaign and the third was a print ad and editorial in a USA Today insert. Each one of these spends were supposedly designed to engage key customers and build a following for our brand and its benefits. We believed we were making our “big push,” and it was very exciting.

Unexpectedly, we hit a speed bump.

Even though, the mantra “it takes time” had been repeated to us over and over, and I have always maintained that my core belief is ‘never, ever, spend any money,’ it soon became apparent that we had moved

28 BEVERAGESPECTRUM.JULY-AUGUST.2011

ahead of ourselves. It was very easy to get wrapped up in the thrill of it all – the potential, the growth, the inevitable new accounts. But, as Mike Tyson so eloquently put it, “Everyone has a plan ‘til they get punched in the mouth.” Really what matters is what you do after you get hit.

For us, our speed bump, or punch in the mouth, took several forms. First, we found distributors and retailers to be much slower at bringing our prod-

uct to market than we expected. Second, the “big push” marketing items that we implemented were not part of a properly integrated marketing plan that allowed each component to build off the others over time. As I wrote in my last column, one thing I’ve learned is that one-offs are completely useless no matter how cool they seem at the time. Third, with distributors and retailers acting slowly, the people we hired were not effective at what we hired them to do. All of this

resulted in a drain on resources – one that took place without our having a precise focus on driving revenue. It took us a few months of bobbing and weaving after that to get back to equilibrium.

By making these mistakes so early in our life cycle, we have been able to recover. It shocked us to see such massive (at our scale) missteps when we thought we made the right moves. But now I see those mistakes as clear benefits to the company and to me as a manager. If I had made the type of mistakes further along, they might have been larger and we might have been less flexible afterwards.

When I look at our business now, our new systems incorporate the lessons we learned last year: hiring and production are now diligent processes that only address clear needs and address growth. They must be absolutely accretive to the business. Marketing spends will not be one offs. Key to our growth is a defined, controlled marketing plan that builds off itself. Only by implementing this over time can we survive, or hopefully avoid, the cash sinks that inevitably pop up.

The best way I know how to do this is through clear goal setting, proper segmentation and planning. Do prospective activities fit within those frameworks? If not, don’t do them. If so, do they have sufficient ROI? No? Don’t do them.

Many other CPG entrepreneurs I speak to make the same mistakes, and will continue to do so. My advice to those of you who read this it to try to crank it back and don’t be afraid to say “No!” It’s the most important word in your vocabulary. But even if you still get hit hard, get up, learn from it and keep going. That’s what we’re doing – and we won’t quit.

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EXPERT SECTION

By Chuck Brymer

THE DEATH – AND RE-BIRTH – OF A SALESMAN PUNDITS WHO CLAIM THAT beverage advertising is dead are right… and wrong.

Advertising as we’ve known it for decades – marketing to a herd of receptive consumers – has been buried and forgotten (or should be).

But its 21st century replacement – marketing to and with a segmented “swarm” of like-minded community members, any one of whom has the power to influence and sway his or her brethren – has brought new life, or even, I’d say, a new golden age, to advertising.

As we move away from yesterday’s Madison Avenue to today’s dynamic Main Street, our work must be more creative than ever before – or it will fail. And the industry is quickly embracing that challenge with – in my opinion – some of the best work we’ve ever seen.

Consider an ad created for Anheuser Busch called “Budweiser Swear Jar.” An

vertising – including beverage advertising – has been reborn, and is becoming more germane and powerful, when done well.

Today swarms of consumers are propelled by online grassroots communities where participants eagerly engage with each other and with brands that interest them. This means that advertisers must be clever, nimble and adroit in pinpointing relevant targets – especially since they can change in a heartbeat.

I call this new approach to advertising “Social Creativity.” It’s a unique way of producing marketing materials that appeal to people emotionally, change their behavior and encourage them to share compelling ideas with others. Many beverage marketers – including Anheuser Busch – are at the forefront of this movement.

But how do we make it work? First, as an industry, we are ridding ourselves of outdated mindsets and maxims that may have worked when Mad Men ruled but are now about as pertinent to today’s digitized consumer as VCRs. We know the ground has shifted. Many years ago, consumers were much more trusting of what they saw or heard or read. Those in authority – the government, the church, the media and, yes, even beverage marketers – held much greater sway. With fewer channels and more homogenous markets, consumers were easy to find and very receptive to advertising.

Later, in an era of economic prosperity and easy access to credit, consumers began to buy what they wanted rather than just what they needed. Advertisers responded accordingly, leveraging cable TV and ultimately the Internet to target and persuade.

Here’s what has happened most recently, however: our excesses caught up with us.

We once tried to connect people to brands, we now connect people to people. office parody, it featured workers contributing to the purchase of a Bud case for an office party each time they cursed; so, they cursed like crazy in these zany, “bleep”heavy commercials.

Too edgy for TV? Yes. It was rejected for the Super Bowl. But it was really intended for life online, where it resided – via YouTube and numerous other websites and social communities.

And there, it did its work. Tied to a Budweiser website promotion, “Swear Jar” became an online hit, spreading virally like wildfire and recording more than 12 million online views.

Here’s the lesson behind that story: ad-

30 BEVERAGESPECTRUM.JULY-AUGUST.2011

And as the economy plunged into global recession, powerful digital networks have simultaneously spawned and promoted social communities, whose members – via Facebook, LinkedIn, blogs, Twitter, you name it – easily coalesce around issues, opportunities, challenges and interests.

Perhaps stung by their previous, unrewarded trust, or perhaps simply responding to the many new voices they encounter online, today’s consumers question those in authority, including big beverage brands. They behave differently; they are more connected with and trusting of each other. They shop more carefully. And they buy differently…their way.

As advertisers, we understand that today’s consumer is in charge, and we are encouraging our beverage clients to act accordingly. While we once tried to connect people to brands, we now connect people to people. This requires the fresh, new thinking that is central to Social Creativity.

Reaching the “swarm” requires new approaches, new ways of working. For instance, beverage retailers can leverage TV, print or online ads – like “Swear Jar” – via their own social media channels, including Twitter and Facebook.

This new era of “Social Creativity” paves a way for retailers to extend brand conversations to their in-store or online customers, reaping the benefits of creative and engaging online campaigns.

By the way, my firm created the “Swear Jar” ad, and I’m very proud of that integrated campaign, which won several top industry awards – including a coveted Emmy for Outstanding Commercial from the Academy of Television Arts and Sciences.

That’s right, an Emmy. For a beverage commercial that never once ran on TV. Chuck Brymer, President and CEO of DDB Worldwide, is the author of The Nature of Marketing.

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CHIA

A New Category Sprouts

BY RAY LATIF

NO LONGER JUST FOR DOG-SHAPED window plants, chia is now a rising star in the world of “superfoods” – and a fast-emerging ingredient to watch in the beverage industry.

Chia, a member of the mint family native to central and southern Mexico and Guatemala, was once revered among Aztec and Mayan cultures. The word chia itself is Mayan for “strength” and fleet-footed messengers of those cultures were purported to carry a pouch of chia seeds to sustain themselves. While in more contemporary times the fast-growing chia has come to be linked with the ubiquitous “Chia Pet,” in the past couple of years the seed of the plant has come to enjoy a strong measure of popularity among natural and health food enthusiasts.

The seed received a huge amount of attention after being mentioned by celebrity doctor, Mehmet Oz, on the Oprah Winfrey Show. Oz said that seed’s nutrition content made it an excellent as alternative to many well-known health foods. “[One chia seed muffin] has more magnesium than about 10 heads of broccoli, and it’s got as much calcium in it as a couple cups of milk,” noted Oz. Additionally, chia provides - in equitable serving sizes –greater amounts of Omega-3, antioxidants, protein and calcium than many other “superfoods” like salmon, blueberries and soybeans.

With such high nutritional value in such a tiny seed, many people credit chia with providing energy boosts, balancing blood sugar, cutting food cravings, and offering an alternative to dieting.

Yet while there are dozens of companies that sell chia seeds and chia seed oil, only two chia-based RTD beverages have been introduced to the market: Mamma Chia and Chia Vie. Each has a unique approach to chia, and though competing products, mutual goals toward education of the 32 BEVERAGESPECTRUM.JULY-AUGUST.2011

seed’s many benefits have created a kinship between the two.

Alongside those two, there’s another idea: that chia’s future might be as an enhancement to another beverage type rather than a standalone product. GTs Synergy Kombucha recently added a line of chia flavors, including grape and cherry.

With the power of GTs consumers getting behind the ingredient, it won’t be long before chia is even more well-known. So here are the pure plays.

MAMMA CHIA Launched in October of 2010, Mamma Chia was founded by Janie Hoffman, an unlikely beverage entrepreneur, though an ardent enthusiast of chia and its benefits.

“There is no doubt that once I incorporated chia into my daily diet, there was a very noticeable increase in my vitality, energy and strength,” said Hoffman. “I became so enchanted with these little seeds that I literally was adding them to

everything in my kitchen and giving away little bags of chia to everyone I knew or crossed paths with. And though I fell in love with chia, I certainly did not envision …starting a beverage company,” Prior to creating Mamma Chia, Hoffman was an organic grower of avocados and guava pineapple and had built her business with a strong focus on social responsibility. In 2009, she began to work with chia growers in Mexico and Central and South America to attain organic certification and establish justice and equality programs.

“But I began to realize that the best way to support and assist the growers was to create an outlet for their product,” Hoffman said.

Hoffman started testing ways to infuse chia into beverages on a commercial scale though found that her homemade kitchen recipes did not translate well in production. “We had one disastrous pilot run after another and were told over and over again that it was impossible to keep the natural gel surrounding the chia seed in-

tact during the processing,” Hoffman said.

However, Hoffman believed strongly in having whole seeds in her beverage and after months of trials was finally able to create a scalable product that includes whole chia seeds, organic fruit juices and organic agave nectar.

“I intuitively knew that if we could pull off keeping the seeds whole …Mamma Chia’s unique and enjoyable drinking experience had the potential to make a meaningful and innovative contribution to the beverage industry,” Hoffman said.

Also of great importance to Hoffman was having a message of social responsibility attached to Mamma Chia. The company is a member of 1% For the Planet and was a founding member of Slow Money, a group that donates 1 percent of gross sales to support local food systems.

“Along with a high quality organic product, part of the DNA of the company is our social mission,” Hoffman stated.

“We have ‘the whole package’, and been very well received in the natural foods channel. They get it.”

Indeed they must. With her unique beverage and socially conscious views, Hoff-

man found distribution for her product almost immediately. From her very first meeting with Whole Foods, Mamma Chia was enthusiastically received and quickly picked up by all 37 locations in the San Diego/Southern Pacific region. Hoffman simultaneously signed a distribution agreement with UNFI and soon found its way into several other natural retailers and co-ops, including Jimbo’s and Sprouts.

“We are now distributed through UNFI and Nature’s Best and currently can be found on the West Coast and in the Southwest,” Hoffman noted. “Mamma Chia will be on the East Coast this summer and [we’re] planning to be national by the end of the year.”

The early success and first mover advantage of Mamma Chia has not gone unnoticed as the company has attracted some big name investors and advisors from the beverage world including Seth Goldman of Honest Tea and Guayaki yerba mate co-founder Chris Mann.

“They’re two of the best entrepreneurs within the natural foods channel and have great experience working with organic farms,” Hoffman said. “We’re always looking to build relations that will help Mamma

Chia to grow in a sustainable and scalable way within the natural foods category.”

Additionally, Hoffman stated that her company would also look to build the Mamma Chia brand by educating everyday consumers about the benefits of chia and was enthusiastic about the role played by traditional media outlets.

“The good news is that the mass media is doing most of the educating about the benefits of chia for us,” Hoffman said. “Every day there seems to be great new articles appearing and other media coverage singing the praises of chia, and we are benefiting from incredible word of mouth phenomenon. “ “And as our vision for Mamma Chia,” Hoffman continued, “is to set the standard for the highest quality chia-based foods and beverages and be a leader in the category, and we hope that in the future, when people think of chia, they think of Mamma Chia.”

CHIA\VIE Chia\Vie is a chia seed infused beverage developed by new Bare Nutrition, a new health-focused CPG company based out of Salinas, CA.

JULY-AUGUST.2011.BEVERAGESPECTRUM 33

“The popularity of Chia seeds has been growing among people with healthy and active lifestyles, but no one had come up with a chia beverage that was commercial and marketable,” said Mark Reith, a co-founder of Bare Nutrition. “So when we had the idea to create a new chia beverage, we had three requirements. We wanted a product that had the benefits of both chia and fruit; did not need to be refrigerated; and packaged in a container that was non-glass.”

But in creating the beverage, there were several significant challenges particularly in working with the chia seed itself.

“When you mix chia and water, you tend to get a gel-like texture, and for the type of seed we were using, there were very specific requirements we had to give to the manufacturer [to avoid that from happening],” Reith said. “Also we found that many people weren’t thrilled with whole seeds in traditional chia beverages, so we decided to grind up the seeds pretty small and did so in a way that, while still having all of the benefits of chia, you couldn’t detect the chia [flavor] itself.

36 BEVERAGESPECTRUM.JULY-AUGUST.2011

After a year in development and “hundreds and hundreds of iterations”, Chia\ Vie debuted at the 2011 Natural Foods Expo West. The beverage is a shelf

stable fruit smoothie made with ground chia seed and packaged in an aluminum bottle. It will come in 3 flavors with fruit-centric names: Banappleberry, Mango-J, and Pina Acerola.

While Reith said that he was pleasantly pleased at how many people were familiar with chia at Expo West, he acknowledged that widespread education would be more difficult. In a welcoming nod to competition, he noted that as more chia products come to market, consumers will have greater exposure to the benefits of chia and bring greater light to the entire category.

“There are a number of chia products out there and people have different uses for each of them. At Expo West, we talked a lot to Janie [Hoffman] from Mamma Chia and have a high respect for her product.

We actually use it quite often; however there is a very big difference between our products in terms of functionality and flavor profile. And even though we have different approaches to [using] chia, we hope [having her product on the market] boosts our sales, and we do the same for her.”

Kombucha’s

Long Bounce One year later, last summer’s withdrawal proves more hiccup than handicap.

By Hannah Crum & Alex LaGory a nascent beverage category like Kombucha, there’s not a much bigger crisis than having all major brands disappear from store shelves, just as growth appeared headed for warp speed. Everything was lining up in favor of the category. With a clear market leader in GT’s Kombucha and Synergy, a number of creative brands and established beverage companies crafting their own offerings, swelling grassroots support for healthier beverage choices, including a strong home-brewing community, and a massive distribution pipeline via Whole Foods and UNFI, Kombucha seemed on the verge of a breakout.

38 BEVERAGESPECTRUM.JULY-AUGUST.2011

Instead, it got a wake-up call. As rumors of boozy booch spread from producers and retailers to consumers, this functional beverage, long prized for its natural benefits was yanked off shelves and became subject to lab testing and regulatory scrutiny. Loyal Kombucha consumers, a group that had of late rejoiced at Kombucha’s increasing availability, suddenly found themselves scrambling to locate and stockpile any available cache of the stuff.

Now, a year later, what could have been disaster appears to have been only a blip on the radar. Much has changed in the Kombucha business, yet much looks the same. Having already roared back to once again become one of the biggest selling products in Whole Foods, Kombucha’s growth trajectory appears to be restored.

Despite last summer’s withdrawal, category sales grew by 28 percent in 2010 and, based on numbers through June 2011, are projected to jump a whopping 60 percent this year in the natural channel, according to data provided by SPINS (note: SPINS numbers do not include Whole Foods).

The ongoing proliferation of regional Kombucha bottlers, with products aimed at both the above-21 and all-ages demos, continues to reflect its growing popularity as a functional beverage. Though the industry faces clear challenges, the year-over-year growth numbers and the quantity of new brands appearing on shelves indicate that Kombucha’s breakout, while potentially delayed, has not been sidetracked.

How it went down

While GT’s Kombucha and Synergy brands are by far the most visible in the category and dominate the market, it is unclear which brand or brands caught the eye of Randy Trahan, a Consumer Protection Inspector for the Maine Department of Agriculture. Regardless, when conducting routine bottle audits at the Whole Foods in Portland, Maine in early 2010, Trahan noticed “some of the Kombucha bottles on the shelf were leaking. Being a public health official, I know that alcohol is a by-product of the fermentation process. I could immediately see that

there might be a public safety issue,” he recalled. “Kids could get hold of this and get a buzz.”

Samples of at least four different brands of Kombucha were taken from those shelves and submitted to the Food Sciences Lab at The University of Maine. Tests showed alcohol levels ranging from slightly over .5 percent to over 2.5 percent ABV, each one in violation. The case was subsequently handed over to the Federal Government in February 2010, specifically the Alcohol and Tobacco Tax and Trade Bureau (TTB), the agency which regulates the sale of any beverage over .5 percent ABV. On June 15, 2010 Whole Foods posted a notice on the Kombucha shelf: “Key suppliers and Whole Foods Market have elected to voluntarily withdraw Kombucha products in bottles and on tap from our stores at this time due to labeling concerns related to slightly elevated alcohol levels in some products. This is not a quality issue. Sorry for any inconvenience.”

It would be months before many brands returned to shelves.

Indeed, once GT’s was off the shelf, for several smaller companies, the race was on. Upstart brand Vibranz out of Healdsburg, CA was one of the few companies to benefit from the timing of last summer’s withdrawal by shipping a lot of product and grabbing shelf space while others reformulated, yet paid a heavy price when GT’s came back. The company appears to have shuttered operations this summer under the weight of unsold product returned by the retailers, though no official announcement has been made. Vibranz declined to comment.

WIithdrawal syptoms

“The withdrawal has created confusion among consumers,” argues Will Savitri of Katalyst Kombucha (MA). Katalyst was poised to expand their keg program with Whole Foods when the withdrawal occurred. “Many consumers still don’t understand why Kombucha was removed from the shelves,” said Savitri.

That might be true, but many don’t seem to care, either. Most fans spent the summer wondering not why it was re-

moved, but obsessing over how and when it would be coming back.

While some customers were satisfied with the re-appearance of other brands, an extremely loyal, and vocal, GT’s fanbase aired its frustrations with the withdrawal.

Founder GT Dave himself stayed in close touch with his flock, even describing in detail the changes to the new Enlightened brand in a long and lively back-andforth with customers on the company Facebook page: “The ratio of probiotics has been changed. The number has not been reduced, rather the probiotics that facilitated the increase in alcohol has been lowered while the ones that don’t were increased. This is achieved by a difference in the way the product is cultured (fermented). The taste will be slightly softer than our ‘Original’ line.”

Within that single Facebook thread can be seen the wild and varied reaction to the debut of the Enlightened line, including “does NOT nearly taste the same as before. Very very disappointed,” and the Enlightened “tastes very watered down.”

Others defended the new formula, saying they “haven’t found the new batch to taste different at all,” and “It’s not the same ... but it’s still a trillion times better than any of the other brands I’ve tried.”

Beyond consumers, however, the twomonth interruption in these products’ route to market had reverberations for retailers and distributors as well. Removing Kombucha from the shelves constituted no small move for Whole Foods, which by industry research estimates sells about 110 cases per week/per store, amounting to $75M worth of the trendy fermented tea last year – almost 1 percent of the company’s total revenue.

This gives Kombucha, especially the market leader GT’s, a strong strategic position in the Whole Foods chain. It also means that Whole Foods was taking an especially big risk by pulling Kombucha off its shelves.

The withdrawal was not without casualties. Honest Kombucha, which had been gaining significant traction with retailers and consumers on a national level, halted production after the com-

JULY-AUGUST.2011.BEVERAGESPECTRUM 39

pany was forced to take $1M+ in returns.

Once the TTB got involved, Seth Goldman, CEO of Honest Tea, decided to discontinue the brand despite its growing popularity, citing an unstable regulatory environment. “We have never aspired to sell drinks that are labeled and distributed as alcoholic drinks,” Goldman said on the Honest Tea blog in Dec 2010. High Country Kombucha, one of the only other nationally distributed brands, must also be counted among the victims, as they had been enjoying an expanding co-packing relationship with Honest Tea Kombucha prior to the withdrawal. However the High Country brand continues to rebuild market share following the shake up with a new look and increased in-store demos.

In order to comply with federal law, most Kombucha makers have undergone “reformulation” or modification of their brewing processes in various ways, as well as attempting to more tightly control the natural continued fermentation in the bottle via additional temperature controls.

While the exact specifics of each manufacturer’s process are often hush-hush, most are manipulating the yeast, either through filtration, centrifuge or other means. De-

alcoholizers, pro-biotic boosting, altering of recipes (especially the sugar used) and many more techniques have been combined to tackle the problem of staying within government limits. “We have been fortunate to be able to work with the University of Wisconsin to help refine our fermentation process in order to keep our product in compliance,“ said Vanessa Tortolano of NessAlla Kombucha.

Steps toward recovery

While last summer’s events presented challenges, many in the industry now believe they were a positive. “The withdrawal was good for the industry to bring everyone into compliance, to build intellectual capital, and to improve the product,” says Ron Lloyd, CEO of Búcha, a newer brand making a push for national distribution.

Búcha was initially slated to enter the market in June 2010, but was delayed due to the withdrawal, even though their product was compliant.

Regional brands saw advantages to the recall as well. “Because we self-distribute, the national distribution withdrawal was a golden opportunity for us to introduce Buchi to Kombucha drinkers whose national

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brand was no longer available,” said Jeannine Bucher of Buchi. Nearly all Kombucha companies interviewed agreed that the difficulties of last summer generated more consumer interest and led to expansion rather than contraction.

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An important part of that expansion is in the over-21 market, a new distinction for the beverage that could cause some confusion among consumers. Some regional Kombucha manufacturers, such as Deane’s (MN), Invisible Alchemy (OR), Unity Vibration (MI), CommuniTea (WA), & Beyond (NY) decided not to reformulate their brewing process and instead apply for beer or wine making licenses. By continuing to brew what they consider an “unadulterated” or “full-powered” Kombucha, the final beverage generally ranges between 1 – 3 percent ABV, depending on the maker. GT’s was first to market with an over-21 Kombucha in December 2010, now dubbed the “Classic” formula, and he remains the only brand with offerings in both over-21 and all-ages beverage categories.

Deane’s Kombucha, whose bottle lists 2.7 percent ABV, was a thriving local brand in Minnesota, so they decided not to alter their brewing process and instead make the shift to an over-21 product. But a big hurdle exists for the over-21 products: educating health food store retailers.

The concept of “healthy low alcohol” beverages is one many people have difficulty understanding. Bryan Bertsch of Deane’s Kombucha recently posted a blog exhorting others to tell GT’s to bring the Classic line to Minnesota, stating, “… granted I have an ulterior motive...Because let’s face it, (GT’s) following is HUGE.” Dylan Goldsmith, owner of Captured

by Porches, an indie beer brand out of Oregon, echoed a similar sentiment. CBP started its own brand of Kombucha - Invisible Alchemy - in response to the “tasteless reformulated products” that began showing up after the withdrawal. “Kombucha should have been grandfathered in as a non-inebriating beverage because it predates Prohibition,” says Goldsmith.

Demand for their over-21 Kombucha has steadily increased yet their difficulties highlight the problem for all brands offering an above .5 percent ABV product: sales are robust when their product is displayed with other Kombucha brands but once it moves to the “beer” section, it’s a tougher sell.

These types of challenges aren’t exactly a surprise. When the Classic line was launched in Dec 2010, GT Dave had this to say, “We have to convince retailers, who don’t really know how to handle this, that (the Classic line) can be sold side by side (with the Enlightened version).“ Bertsch and Goldsmith couldn’t agree more.

Dave, however, acknowledges frustration with the hurdles and misinformation involved in distributing the Classic line to various states and retailers, including Whole Foods. “Unlike our Enlightened line, our Classic cannot be reviewed or approved nationally, therefore they must be presented on a state-by-state level,” Dave saida. “This means we have to treat each state as if it is a separate region and present to them individually. It involves changing the way people think: retailers, regulators and distributors.”

Whole Foods specifically employed a “wait and see” approach with the Classic formula, concerned about potential liability and that confusion over alcohol content may plague customers. “Some retailers expressed concern that if Kombucha returned as an over-21 beverage, the public’s perception that it’s healthy or nutritious would change and it would be grouped with a wine cooler or a malt beverage-like product.”

However, after taking time to assess how the withdrawal affected the industry, Whole Foods stores in some regions of the country have recently expressed interest in carrying the Classic line. Multiple companies also confirmed that the national food chain has required any Kombucha company that sells product through their stores to sign a full indemnification regarding the issue.

42 BEVERAGESPECTRUM.JULY-AUGUST.2011

Dissent among the faithful

Alcohol levels are not the only controversial issue in the Kombucha category.

Many manufacturers have taken issue with health claims that are made on some Kombucha products. Others are upset with some competitor’s labels that they say do not accurately reflect levels of sugar, what types of bacteria and which organic acids may or may not be present in that bottle Kombucha. A few harbor the belief that other Kombucha companies are “cheating” by using forced carbonation but do not list that on the label.

Without a legal definition of for “Kombucha,” or a trade group to self-regulate the industry, divergent viewpoints on industry standards will likely grow.

“There is a responsibility on the part of the manufacturer to disclose what’s actually in the product,” says Adam Goodman, founder of Kombucha Botanica. His product returned to shelves after perhaps the most dramatic reinvention. Partnered with Kefi-Plant, a Canadian bio-tech company specializing in kefir ferments, Kombucha Botanica posits that the original Kombucha culture actually derived from the kefir grain. Utilizing a lab induced fermentation process, they create a concentrate that is subsequently shipped to the US and mixed as the final drink, producing what Goodman believes is a Kombucha that is superior in health benefits and taste, but which is dramatically different from his pre-withdrawal beverage.

So is Kombucha a fad or is it here to stay? “The Kombucha ‘fad’ may not have even started yet as many people still have

not heard about it,” said Mike Brady of BAO Kombucha, a New York City brand.

“It is very early in the category, similar to coconut water.” And that small size may have ultimately been what shielded the entire category from disaster. Adherents don’t seem concerned about the presence of alcohol – they just want their drink, and whoever makes the best product will continue to win them over.

Growth seems inevitable: market researcher SPINS projects $110M in Kombucha sales this year, not including Whole Foods, meaning the entire category is expected to top $200M. Meanwhile, privately commissioned research by industry insiders shows Kombucha sales moving north of $500M by 2015.

And that seems to be why, for his part, GT Dave is intent on innovating to stay ahead. “We don’t want to focus on the past but rather are looking toward the future,” said Dave. His company has just released the first Kombucha with chia seeds, in grape, raspberry and cherry flavors, and he has hinted at a couple of “very different flavors to debut very soon.”

GT’s Kombucha has also expanded to the Canadian market and recently began appearing in convenience stores and at airports, new distribution channels that could mean a lot of new Kombucha consumers for a nascent category. As American consumer tastes shift from sedentary to active, and as the public’s interest in products perceived as unhealthy continues to wane, expect Kombucha’s star to rise – even while it carries the baggage of the past.

›› TEA BY THE NUMBERS Kombucha might be getting all the headlines and the celebrity controversy (hello, LiLo) but it’s good old iced tea that remains one of the stalwart growth categories for the beverage business – to the tune of a 5.35 percent increase in dollar sales last year, according to IRI (not including Wal-Mart, as well as many delis and mom-and-pops, a key element for the tea biz).

With low-cost and high end options and an easily-understood functional premise, tea seems to fit most of the key areas for health and energy while still landing gently on the consumer wallet. The Tea Council projects overall tea sales at $15 billion in 2012.

That money includes dry tea, but the increase is indicative of the still-rising profile of tea in the U.S. – as does the more than $500 million IPO of Teavana stores earlier this summer. Teavana sells dry tea varieties and tea equipment, and has the potential to give a Starbucks-like push into increased category visibility.

Investors aren’t just looking at the hot stuff, either. There’s plenty of activity on the venture and growth capital side in the tea space, with placements coming from BYB brands and other incubator capital sources in recent years, along with two of the biggest investment takeouts in the past year: Sweet Leaf Tea and Honest Tea.

Still, the robust growth of all-natural products like independent brand Xing Tea and Hansen’s Naturalowned Peace Tea, combined with Honest and Sweet Leaf begs the question of how much room there is for other products in the category to push into a cohesive national footprint – particularly in light of the growth of tea subcategories like yerba mate and Kombucha, both of which seem to offer less-crowded routes to the shelf. In fact, many tea companies seeking growth have turned as much to lemonade and lemonade blends as much as they have to new tea varieties.

We’ll have more on that next issue, when we explore the overlap between tea, juice and lemonade.

But right now, you can see that the numbers tell the story, and that story is largely driven by big distribution organizations like Coke, Pepsi, Dr Pepper/Snapple and AriZona’s independent network.

With those key routes to market largely locked down, and with Sweet Leaf leveraging Nestle’s distribution system, the battle to be the strong independent on the shelf remains the brass ring for too many brands. The natural channel offers them the opportunity to establish themselves regionally – and tea itself is a product that encourages tasting around as well – but until DSD momentum begins to center around one or two brands (and Xing has been pushing hard in that respect) expect there to be plenty of variety in the category. Call it simultaneously the oldest category there is, as well as one of the newest.

JULY-AUGUST.2011.BEVERAGESPECTRUM 43 H� � a� l� f�� p� g�� a� d�� J� a� n�� 2� 0� 1� 1�� f� i� n� a� l�� a� r� t

RTD TEA Brand

BRAND NEWS: TEA Dollar Sales

AriZona

Change vs. year earlier

$617,890,200

-1.53%

BRAND NEWS

Lipton Brisk

$284,583,400

33.79%

Lipton

$270,030,900

-15.57%

Snapple

$186,040,000

-1.00%

The Republic of Tea has introduced three

Lipton Pureleaf

$155,267,700

-6.27%

Diet Snapple

$137,482,200

12.52%

AriZona Arnold Palmer

$122,253,500

52.37%

Nestea

new flavors to its Glass Bottled Iced Tea line.

Natural Hibiscus Tea is a caffeine-free herbal tea brewed from hibiscus leaves from Nigeria.

Sweet Black Tea is a calorie-free iced black tea brewed from premium organic black tea leaves and lightly sweetened with stevia leaves.

Sweet Green Tea is a calorie-free iced green tea brewed from premium, organic green tea leaves and lightly sweetened with stevia leaves. The three flavors contain no artificial flavors, sweeteners or preservatives and are certified gluten free and certified kosher. Each is sold in a two-serving 16.9 oz. glass bottle.

$103,286,700

-10.54%

Gold Peak

$82,495,890

24.25%

Diet Lipton

$62,532,960

-2.14%

Peace Tea

$50,971,420

215.57%

Private Label

$46,436,980

2.69%

Arnold Palmer Lite

$37,639,260

84.71%

AriZona RX

$29,439,350

2.84%

Honest Tea

$24,156,600

54.55%

Sweat Leaf

$19,344,080

65.14%

SoBe

$18,750,270

-14.09%

Diet Nestea

$15,851,280

-4.67%

XingTea

$13,864,690

19.49%

Tradewinds

$13,090,710

19.41%

Snapple Celebrity Apprentice

$8,237,087

138.14%

Tejava

$7,648,249

9.31%

Fuze

$7,609,491

-52.81%

Tazo

$6,363,513

-28.74%

AriZona has also extended its Half & Half line

Ssips

$5,775,663

-0.34%

SoBe Lean

$4,147,493

-11.03%

Teas Tea

$3,332,176

-22.64%

with AriZona Raspberry Half & Half. The beverage contains berry juice and a delicious raspberry flavor. AriZona Raspberry Half & Half is available in a vibrant red 20 oz. PET bottle.

Nantucket Squeezed Nectars

$2,954,412

16.43%

Inkos

$2,781,239

7.34%

Celsius

$2,533,720

7.37%

Steaz

$2,188,766

25.94%

Community

$2,101,042

6.90%

New Leaf

$1,724,684

-18.35%

Luzianne

$1,570,165

-18.04%

Turners

$1,425,450

8.45%

Marleys Mellow Mood

$1,383,263

N/A

Ito En

$1,382,323

2.21%

Guayaki

$1,379,842

61.61%

Diet Lipton Pureleaf

$1,246,372

-3.91%

John Boy and Billy

$1,233,816

98.55%

Guayaki Yerba Mate

$1,109,477

46.28%

My Tea

$1,022,331

2.38%

Paradise Key Teas

$989,165

91.59%

Beacon Drive In

$839,210

-29.32%

Kombucha Wonder Drink

$711,004

35.19%

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

52 Weeks through 7/10/11

44 BEVERAGESPECTRUM.JULY-AUGUST.2011

AriZona Beverages has launched Arnold Palmer Peach Sweet Tea Half & Half as the newest addition to its popular Arnold Palmer Half & Half line. The new flavor combines lemonade and sweet tea with a peach flavor.

The Arnold Palmer Peach Sweet Tea Half & Half is available in 23 oz. aluminum cans and 64 oz. half gallons.

Tazo has introduced Zero Calorie Tazo Iced Chai. Zero Calorie Tazo Iced Chai is a blend of freshly brewed black tea, sweet cinnamon, ginger, star anise and cardamom, naturally sweetened with a derivative of the stevia plant. The suggested retail price for a 13.8 oz. bottle is $1.39 – 1.79.

Jade Monk Beverage Co. has introduced a line of powdered matcha tea drinks. The tea is packaged in 3.63 oz. tins designed with bold images representing Japanese folklore. Flavors of the tea include peach, chai, cranberry blood orange, and lime. Production of the product is slated for the next three months.

Cintron Beverage Company has introduced a line of premium-ingredient iced teas. The new premium drinks are packaged in 14 oz. ecofriendly glass bottles and feature vintage sepiatoned images and stylized tropical fruits that evoke Havana in the 1950s. Cintron iced teas are made with a base of premium antioxidant-

Think of us as

Tea

Vanilla

Flavors

Masking

Green Tea Black Tea Oolong Tea Rooibos Organic Fair Trade

Virginia Dare provides a full range of the highest quality and best tasting tea concentrates, flavors and powders.

Tea Flavors

Tel: 718-788-1776

•

flavorinfo@virginiadare.com

•

www.virginiadare.com

BRAND NEWS: TEA rich black or green tea and then are blended with floral notes, and ripe fruit flavors. The all natural teas are sweetened with organic cane sugar for a sweet lift with no artificial after taste. Flavors include Strawberry Hibiscus, Tamarind, Lemon Lime Mojito, Mandarin Raspberry, Toronja, Peach Mango, and Pineapple Ginger.

New Leaf’s White Tea with Strawberry

was Named Best Tasting Flavored White Tea by Rachael Ray Magazine. The tea is naturally and sweetened with 100 percent organic cane sugar.

MaryAnna’s Tea has introduced Peachy

Sweet Tea. The beverage is an infusion of a custom blend of black tea leaves from the Nilgiri, or “Blue Mountain” region of India, peach pieces, marigolds and natural peach flavor and sweetened with a bit of pure cane sugar. The tea is paired with 100 percent lemon juice for a refreshing, antioxidant-rich drink.

Adagio has re-launched its ready-to-drink

iced teas, formerly called anTEAdote. Adagio Teas Iced Teas made with pure water infused with fresh tea leaves and have no added sweeteners.

Fruit Of The Spirit LLC has announced

that its product, Purple Grace Exquisite Tea is now being sold through ThirstMonger.com. The tea is available in three gourmet flavors, Lemon Lime Excitement, Cinnamon Grace and Lemon Peace.

Steaz has introduced Steaz Zero Calorie

Iced Teaz, the world’s first full line of all naturally sweetened (using stevia) zero calorie RTD teas using certified organic and fair trade green tea. The teas are sold at Whole Foods, Kroger and wherever premium beverages are sold.

Beverage Brands recently upgraded its MATE fusion tea packaging and introduced Raspberry & Black Currant flavors to its line of teas.

Rooibee Red Tea Watermelon Mint recently won first place in the 2011 North American Tea Championship Ready-to-DrinkFlavored/Sweetened category. For more information visit www.rooibeeredtea.com.

46 BEVERAGESPECTRUM.JULY-AUGUST.2011

ITO EN has launched a new and renewed TEAS’

TEA line. The company’s core brand, TEAS’ TEA has offered a popular, unsweetened tea since 2002. Broadening its selection to include Low-Calorie and Classic flavors, the awardwinning line will now offer a three-tier option to meet the diversity of consumer demand.

ABF Beverage LLC is set to launch new plastic bottle packaging for its Herbal Mist line of teas and introduce three new sugar-free flavors each sweetened with all natural Stevia.

Delta Blues has recently signed distribution

agreements with Tree of Life, KeHe Distribution, Cavallaro Foods LLC, Global Specialty Foods and Unique Foods.

Sweet Leaf Tea will appear at various events in the Austin, Chicago, Houston and South Florida regions, and is rolling out a specially created site called ‘Granny’s Almanac’ (www. sweetleafalmanac.com) to give fans of the brand in these cities access to playful summertime tidbits, local events and exclusive promotions. Sweet Leaf has also introduced a new look for its Tradewinds brand of teas and also added a new 6-pack comprised of 16 oz. PET bottles to Tradewinds’ packaging line-up.

Chantea, an all natural blend of green tea infused with aloe vera pulp has won the Best New Product Award at the World Tea Expo and Buyer’s Choice Best Ready to Drink Tea at the North American Tea Championship in Las Vegas, NV. Crystal Geyser Water Company’s Tejava

brand recently captured first place at the 2011 North American Tea Championship in the Ready-To-Drink-Unflavored Black Tea category. Tejava is micro-brewed and contains zero calories, no added tea flavors, sweeteners, preservatives, or artificial ingredients.

Crystal Geyser has also launched California Teas, a new line of 100 percent all natural iced and green teas. Varieties include: Original Sunshine Iced Tea, Original Sunshine Green Tea, Summer Peach Iced Tea, Lemon Twist Iced Tea, Strawberry Patch Iced Tea, Coastal Blueberry Green Tea, and Apple Harvest Green Tea. NOYU is a new line of all natural authentic Asian teas, fresh brewed from whole premium green and oolong tea leaves grown in the high mountains of Taiwan. NOYU has seven flavor

varieties including lightly sweetened, fruit infused, unsweetened, and functional with therapeutic herbs, each packaged in 500 mL PET bottles. Contact the company at info@noyuteas. com.

Cold Star Inc. has introduced TEAse, a new line of 100 percent all natural premium brewed iced tea drinks. TEAse iced tea beverages have no artificial colors, flavors, or preservatives and are sweetened with pure, all natural honey and organic cane juice. The teas are available in three flavors: Berry-Blended Black Tea, Green Tea with Honey & Ginseng, and Green Tea with Honey, Pomegranate & Acai.

UrbanZen Tea has introduced a new Green Tea Mango Aloe Vera flavor to its line-up of freshly brewed whole leaf green teas with juice.

Introducing TreattSweet™

BYB Brands, Inc. Bazza Natural Energy Tea is

now distributed in Whole Foods and organic specialty chains across Texas and California.

Million Beverage has revamped their premium green teas for 2011.Still packaged in their trademarked 16 oz. black bottles with metallic labels, the Million brand is continuing to grow its distribution and retail placements along the East Coast.

Oooli Beverages Inc. is expanding distribution of its teas into the Western US. Oooli also recently scored a top three win at the 2011 North American Tea Championships for their Oooli Passion Mango which taking third place in the “Best Flavoured Oolong” category.

Honest Tea has introduced Honest Classic Green Tea. The tea is made with Fair Trade Certified real brewed tea leaves and is sweetened with organic cane sugar. The drink contains 60 calories per 16 oz. bottle and is Fair Trade Certified, Certified Organic and OU Kosher.

XingTea Natural Premium Green Teas are now available in 3 sizes: an 11.5 oz. slim can, a 23.5 oz. can, and in a gallon jug. XingTea is now distributed in 47 states and internationally. XingTea supports the DSD system and offers exclusive territory to retailers and distributors. For more info contact Tom LeBon at 303-994-2152 or tlebon@newagebev.us.

Struggling to address the flavor profile and improve the mouthfeel of Stevia, or reduce the sugar content in your product?

Treatt, a leading flavor and fragrance ingredients supplier, has the solution TreattSweet™.

NATURAL sweetness, mouthfeel and a clean label without the carbs and calories.

For further information on this product, please visit www.treatt.com or email TreattSweet@treatt.com JULY-AUGUST.2011.BEVERAGESPECTRUM 47

2011 WATER GUIDE SPONSORED BY:

ACTIVATE Drinks

Aquacai Natural Artesian Water

Avitae Caffeinated Water

ACTIVATE Drinks

Aquacai

Vitality Distributing

PRODUCTS: Multivitamin Fruit Punch, Multivitamin Lulo Pear, Immunity Orange, Energy Lemon Lime, Antioxidant Exotic Berry, Antioxidant Blueberry Pomegranate

PRODUCTS: Aquacai Natural Artesian Water

PRODUCTS: Avitae Caffeinated Water 90mg

PACKAGING: 354 mL PET, 591 mL PET, 1L PET

PACKAGING: 16.9 oz. PET ATTRIBUTES: Enhanced

ATTRIBUTES: PACKAGING: 16.9 oz. 100% RPET, 20 oz. 100% RPET, 1L 100% RPET ATTRIBUTES: Enhanced

Active O2

Aspen Pure Water

Balance Mind

Fluid Distribution LLC

Aspen Pure Water

Balance Water Company

PRODUCTS: Active O2 Apple Kiwi, Active O2 Orange Lemon, Active O2 Peach, Active O2 Iced Berry

PRODUCTS: Aspen Pure water

PRODUCTS: Balance Mind

PACKAGING: 24 oz. PET, 33.8 oz. PET, 16.9 oz. PET

PACKAGING: 1L Biodegradable PET Bottle, 500 mL Biodegradable PET Bottle

PACKAGING: 500 mL PET

ATTRIBUTES: ATTRIBUTES: Enhanced

ATTRIBUTES: Enhanced, Flavored

AMAzon Waters AMAzon Waters PRODUCTS: Camu Camu Extract/ Pomegranate, Guarana Extract/ Mixed Berry, Urucu Extract/ Papaya, Maracuja Acu Extract/ Passion Fruit, Coconut Water/ White Tea, Coconut Water/ Green Tea, Coconut Water/ Peppermint Tea PACKAGING: 16.9 oz. PET

ASSURE WATER

Balance Relax

Assure Food & Beverage Company, Inc

Balance Water Company PRODUCTS: Balance Relax

PRODUCTS: Tropical Tangerine, Peach Mango, Raspberry Acai, Pomegranate Blueberry, Strawberry Kiwi Melon, GOJI Lemonade

PACKAGING: 1L Biodegradable PET Bottle, 500 mL Biodegradable PET Bottle ATTRIBUTES: Enhanced

PACKAGING: 12 oz. Pouch ATTRIBUTES: Enhanced, Flavored

ATTRIBUTES: Enhanced, Flavored

Apollinaris

Avitae Caffeinated Water

Balance Travel

Brands Within Reach

Vitality Distributing

Balance Water Company

PRODUCTS: Classic Naturally Sparkling Mineral Water, Selection Naturally Sparkling Mineral Water

PRODUCTS: Avitae Caffeinated Water 45mg

PRODUCTS: Balance Travel

PACKAGING: 1L Glass, 0.33L Glass

ATTRIBUTES: Enhanced

ATTRIBUTES: On Premise

50 BEVERAGESPECTRUM.JULY-AUGUST.2011

PACKAGING: 16.9 oz. PET

PACKAGING: 1L Biodegradable PET Bottle, 500 mL Biodegradable PET Bottle ATTRIBUTES: Enhanced

DRINK 1, GIVE 10

速

RainfoRest VolVic + foundation us

P r o t e c t i n g Forests + r i g h t s o F indigenous PeoPles. www.drink1give10.com

Balance Women

Cape Cod Water Infusions

Balance Water Company

Ex Aqua Vitamins

Cape Cod Water Infusions

Ex Drinks, LLC

PRODUCTS: Balance Women

PRODUCTS: Ex Aqua Vitamins Lemon Lime, Ex Aqua Vitamins Raspberry, Ex Aqua Vitamins Peach Mango

PRODUCTS: Cape Cod Lemonade, Cape Cod Seabreeze, Cape Cod Minty Margarita, Cape Cod Indian Summer

PACKAGING: 1L Biodegradable PET Bottle, 500 mL Biodegradable PET Bottle

PACKAGING: 16.9 oz. PET

ATTRIBUTES: Enhanced PACKAGING: 5L Bag in a Box, 4 oz. Drops

ATTRIBUTES: Enhanced, Flavored

ATTRIBUTES: Flavored, USDA Organic

Bella Voda USA

Celtic Prestige Collection

Bella Voda USA

FIJI Water

Euro distribution Company LLC.

PRODUCTS: Bella Voda Artesian Water

FIJI Water PRODUCTS: Natural Artesian Water

PRODUCTS: Still

PACKAGING: 500 mL PET, 750 mL PET, 1L PET, 800 mL Glass

PACKAGING: 1L

PACKAGING: 330 mL PET, 500 mL PET, 1L PET, 1.5L PET

ATTRIBUTES: ATTRIBUTES: Enhanced, On Premise

BORBA

ATTRIBUTES: On Premise

DASANI

Fred

BORBA, Inc.

The Coca-Cola Company

Fred Beverages, Inc.

PRODUCTS: Age Defying - Acai, Clarifying - Pomegranate, Firming - Guanabana Fruit, Replenishing - Lycee Fruit

PRODUCTS: DASANI

PRODUCTS: Fred, USA Premium Natural Spring Water

PACKAGING: 16 oz. PET

PACKAGING: 8.5 oz. PET, 10.1 oz. PET, 12 oz. PET, 16.9 oz. PET, 20 oz. PET, 24 oz. PET, 1L PET

PACKAGING: Flat 400 mL, 600 mL, 1000 mL PET ATTRIBUTES:

ATTRIBUTES: Enhanced, Flavored

BOT Enhanced Water

ATTRIBUTES:

ESSENTIA WATER

Function: WATER

BOT Beverage Company

Essentia Water, Inc.

Function Drinks

PRODUCTS: Blue Plum BOT Enhanced Water

PRODUCTS: Essentia Water

PRODUCTS: Function: WATER

PACKAGING: 20 oz. PET, 1L PET, 1.5L PET

PACKAGING: 750 mL PET, 1L PET

ATTRIBUTES: Enhanced

ATTRIBUTES:

PACKAGING: 16.9 oz. PET ATTRIBUTES: Enhanced, Flavored

52 BEVERAGESPECTRUM.JULY-AUGUST.2011

ganicwater

Gize ganic KG

C.M.W. Canadian Mineral Water Development S.A.

PRODUCTS: ganicwater Citric Lemongrass, ganicwater Smooth Ginger, ganicwater Cranberry Pearl, ganicwater Strawberry Slim, ganicwater Caramel Toffee, ganicwater Spearmint Kiss

PRODUCTS: Gize Still, Gize Sparkling, Gize+ LemonElderflower, Gize+ RaspberryGinseng, Gize+ Pear-Vinegar, Gize+ Pineapple-Coconut

PACKAGING: 500 mL PET

PRODUCTS: h2O Natural Spring Water PACKAGING: 16.9 oz. Tetra Pak ATTRIBUTES:

ATTRIBUTES: Enhanced, Flavored, Sparkling

H2o Box

Hangover ResQwater

Fluid Distribution LLC

H2o Box

PRODUCTS: Gerolsteiner sparkling mineral water

PRODUCTS: H2o Box PACKAGING: 16.9 oz. Tetra Pak

PACKAGING: 1.0L Glass, 750 mL Glass, 500 mL PET

h2O Spring Water

PACKAGING: 200 mL Glass, 750 mL Glass

ATTRIBUTES: Enhanced, Flavored

Gerolsteiner

h2O

Intelligent Beverages, LLC PRODUCTS: Pomegranate ResQwater, Lemon Lime ResQwater

ATTRIBUTES: USDA Organic PACKAGING: 16 oz. PET

ATTRIBUTES: Sparkling ATTRIBUTES: Enhanced, Flavored, On Premise

JULY-AUGUST.2011.BEVERAGESPECTRUM 53

Hawaiian Springs Natural Water ICIO Water

MindEssential

Hawaiian Springs, LLC

ICIO Inc.

Maayan LLC

PRODUCTS: Hawaiian Springs Young Natural Artesian Water

PRODUCTS: Peppermint Water, Cucumber Lemongrass Water, Lemon Basil Water, Apple Pear Water, Blood Orange Tarragon Water, Peach Ginger Water, Lychee Watermelon Water, Black Currant Blueberry Water

PRODUCTS: MindEssential RELAX water

PACKAGING: 330 mL PET, 500 mL PET, 750 mL PET, 1L PET, 1.5L PET

PACKAGING: 8.5 oz. PET, 2 oz.

Glass ATTRIBUTES: Enhanced, Flavored

ATTRIBUTES: PACKAGING: 12 oz. PET ATTRIBUTES: Flavored

HINT Water

LaCroix Sparkling Water

MindEssential

HINT Water

National Beverage Corp.

Maayan LLC

PRODUCTS: Blackberry, Watermelon, PomegranateTangerine, Raspberry-Lime, Mango-Grapefruit, StrawberryKiwi, Pear, Cucumber, Honeydew-Hibiscus

PRODUCTS: LaCroix Sparkling Water Coconut

PRODUCTS: MindEssential CONFIDENCE shot

PACKAGING: 12 oz. Can, 15 oz. PET, 12 oz. 24 pack

PACKAGING: 2 oz. Glass ATTRIBUTES: Enhanced, Flavored

ATTRIBUTES: Flavored, Sparkling

PACKAGING: 16 oz. PET ATTRIBUTES: Enhanced, Flavored

ICELAND SPRING

Metroelectro

NEO WATER

Pure Distribution US LLC

Soma Beverage Co. LLC

RockHumanity Inc.

PRODUCTS: Iceland Springlets

PRODUCTS: Metroelectro

PRODUCTS: Neo Water: Alkaline - Antioxidants - Carbon Neutral

PACKAGING: 0.33L

PACKAGING: 20 oz. PET, 1L PET

ATTRIBUTES:

ATTRIBUTES: Enhanced, USDA Organic

PACKAGING: 20 oz. PET, 1L PET

Icelandic Glacial Water Icelandic Water Holding PRODUCTS: Icelandic Glacial Water PACKAGING: 330 mL PET, 500 mL PET, 750 mL PET, 1000 mL PET

Metromint

Neuro Drinks Soma Beverage Company

Neuro Drinks PRODUCTS: neuroAQUA

PRODUCTS: Peppermint, Spearmint, Orangemint, Lemonmint, Cherrymint, Chocolatemint, Goodberrymint PACKAGING: 16.9 oz. PET

ATTRIBUTES: ATTRIBUTES: USDA Organic

54 BEVERAGESPECTRUM.JULY-AUGUST.2011

ATTRIBUTES: Enhanced

PACKAGING: 14.5 oz. PET ATTRIBUTES: Enhanced

Nika Water

NOAH’S Spring Water

OXYGIZER & OXYGEN WATER

Nika Water Company, LLC.

Noah’s Spring Water / Varni Brothers

SANTA MONICA DIST. CO. INC.

PRODUCTS: 500ml Purified Water, 1L Purified Water

PRODUCTS: Noah’s Spring Water

PRODUCTS: OXYGIZER & OXYGEN WATER

PACKAGING: 500 mL 100% RPET, 1L 100% RPET

PACKAGING: 8 oz. Can, 12 oz.

PET, 12 oz. Glass, 20 oz. PET

PACKAGING: 16.9 oz. Glass

ATTRIBUTES: On Premise

ATTRIBUTES:

NOAH’S Sparkling Spring Water owater Noah’s Spring Water / Varni Brothers

ATTRIBUTES: Enhanced, USDA Organic

Pink Monkey Water owater

Pink Monkey Water

PRODUCTS: Sparkling Spring Water, Sparkling Spring Water with Lime, Sparkling Spring Water with Blueberry Pomegranate, Sparkling Spring Water with Peach Mango

PRODUCTS: plain electrolyte owater, sport cap plain electrolyte owater, lemon lime owater, wild berries owater, strawberry owater, mandarin orange owater, peach owater (all unsweetened)

PRODUCTS: Organic Lemon/ Lime Essence Water, Organic Orange Essence Water, Organic Raspberry Essence Water, Organic Pomegranate Essence Water, Spring Water

PACKAGING: 12 oz. Can, 12 oz. Glass

PACKAGING: 33.8 oz. PET, 20 oz. PET

ATTRIBUTES: Flavored, Sparkling

ATTRIBUTES: Flavored

PACKAGING: 16.9 oz.

Biodegradable PET Bottle ATTRIBUTES: Flavored, USDA Organic

JULY-AUGUST.2011.BEVERAGESPECTRUM 55

PURE COOL

Sahara Spice

Sparkling ICE

Watermark Innovation

Stirville

PRODUCTS: Sparkling Pear Ginger Ice, Sparkling Mojo Cool

PRODUCTS: Sahara Spice (launching soon)

PACKAGING: 12 oz. Glass

PACKAGING: 0.13 oz. Sticks/ Sleeves

ATTRIBUTES: Flavored, Sparkling

TalkingRain Beverage Company Inc PRODUCTS: Orange Mango, Black Raspberry, Pink Grapefruit, Kiwi Strawberry, Lemon Lime, Pomegranate Berry

ATTRIBUTES: Flavored PACKAGING: 17 oz. PET, 1L PET, 12 oz. Can ATTRIBUTES: Enhanced, Flavored, Sparkling

PURE SWISS mineral water

Saint Geron

PURE SWISS mineral water Inc. PRODUCTS: Still, Sparkling PACKAGING: 16.9 oz. PET, 16.9 oz. Glass, 1L Glass, 1.5L PET

Syfo Beverages Brands Within Reach

Universal Beverages, Inc.

PRODUCTS: Sparkling Natural Mineral Water

PRODUCTS: Original Seltzer, Naturally Flavored Lemon-Lime Sparkling Water, Naturally Flavored Tangerine-Orange Sparkling Water, Naturally Flavored Wild Cherry Sparkling Water

PACKAGING: 750 mL Glass ATTRIBUTES: On Premise, Sparkling

ATTRIBUTES: USDA Organic, Sparkling

PACKAGING: 10 oz. Glass, 20 oz. PET, 1L PET, 2L PET ATTRIBUTES: Flavored, Sparkling

QURE

Saratoga Spring Water Qure Water

Saratoga Spring Water

PACKAGING: 500 mL PET, 1L PET

PRODUCTS: Still Spring Water, Sparkling Spring Water, Naturally Flavored Sparkling Spring Water

ATTRIBUTES: Enhanced

PACKAGING: 12 oz. Glass, 28 oz.

Glass, 8 oz. PET, 16.9 oz. PET, 24 oz. PET, 1L PET, 1.5L PET ATTRIBUTES: Flavored, On Premise, Sparkling

re:newal premium spring water Keystone Water Company, LLC PRODUCTS: 100% plant made bottle, premium spring water, sustainable packaging PACKAGING: .5L 100% Plant Based Bottle, 1L 100% Plant Based Bottle ATTRIBUTES:

56 BEVERAGESPECTRUM.JULY-AUGUST.2011

Skinny Water

TalkingRain Sparkling Water TalkingRain Beverage Company Inc PRODUCTS: Natural, Lemon Lime, Tangerine, Berry, Lemon Zest, Peach Nectarine, Kiwi Strawberry, Pomegranate Lime, Mango Acai, Citrus Twist PACKAGING: 16.9 oz. PET, 2L PET, 12 oz. Can ATTRIBUTES: Flavored, Sparkling

TONGO Coconut Water Skinny Nutritional Corp

TONGO LLC

PRODUCTS: Raspberry Pomegranate (Crave Control), Acai Grape Blueberry (HiEnergy), Orange Cranberry Tangerine (Wake Up), Goji Black Cherry (Shape), Pink Berry Citrus (Power), Blue Raspberry (Fit), Lemonade Passionfruit (Total-V), Kiwi Lime (Active)

PRODUCTS: Warrior Punch, Tahitian Lime, Pacific Orange

PACKAGING: 16 oz. PET ATTRIBUTES: Enhanced, Flavored

PACKAGING: 16 oz. PET ATTRIBUTES:

Bringing

natural flavors into focus.

Robertet Flavors is a closely-held multinational company whose vision is long-term and whose technologies are focused on the flavors and scents that nature always intended. For all of your flavor needs, call Robertet at 732-981-8300, or send an email to Solutions@RobertetUSA.com.

TECHNOLOGY • CREATIVITY • INNOVATION

Twist Essence Water

Whistler Water

TalkingRain Beverage Company Inc

Whistler Water PRODUCTS: Glacial Spring Water, Flat Cap, Sport Cap

PRODUCTS: Pomegranate Blueberry, West Indies Lime, Mango Acai, Wild Strawberry, Mandarin White Tea, Lemon Zest

PACKAGING: 350 mL PET, 500 mL PET, 1L PET, 1.5L PET, 750 mL Glass

PACKAGING: 19 oz. PET

ATTRIBUTES: On Premise

SUPPLIERS & SERVICES

ATTRIBUTES: Flavored

VBlast! Vitamins & Spring Water Y Water New York Spring Water, Inc. PRODUCTS: Acai & Berry, Wild Berry, Orange, Grape, Pomegranate Cherry, Green Tea, Peach Tea, Strawberry Kiwi PACKAGING: 16.9 oz. PET

Adobe Springs Water Co. LLC

Y Water PRODUCTS: Y Water Immune, Y Water Brain, Y Water Muscle, Y Water Bone PACKAGING: 6.75 oz. Pouch

Adobe Springs supplies to bottlers bulk mineral water containing 110 mg of Magnesium per liter. WHO recommends a minimum of 25 mg of magnesium per liter. Location: Off I-5 near San Francisco.

ATTRIBUTES: Enhanced, Flavored, USDA Organic

ATTRIBUTES: Enhanced, Flavored

Volvic

ZICO Premium Coconut Water Brands Within Reach

ZICO

PRODUCTS: Natural Spring Water

PRODUCTS: ZICO Natural, ZICO Natural Tetra, ZICO Natural Bottle, ZICO Mango Tetra, ZICO Pineapple, ZICO Chocolate, ZICO Passion Fruit

PACKAGING: 1.5L PET, 1L PET, 0.5L PET ATTRIBUTES: On Premise

allen flavors, inc.

Allen Flavors is a one stop shop for beverage development and supply. We can assist at any level of development and will support you to finished product and beyond.

PACKAGING: 1L Tetra Pak, 11 oz. Tetra Pak, 14 oz. PET ATTRIBUTES: Flavored

VOSS

AquaJoe Products LLC

Voss PRODUCTS: Still, Sparkling PACKAGING: 330 mL PET, 375 mL Glass, 500 mL PET, 800 Glass, 850 mL PET, 375 mL 4-Pack Carton, mL ATTRIBUTES: On Premise, Sparkling

58 BEVERAGESPECTRUM.JULY-AUGUST.2011

AquaJoe is a powder dispensing device that can turn water into your favorite beverage. Works with all beverage powders and anything that holds liquid, even bottled water!

Brentwood

Chemi Nutra

Closure Systems International

Brentwood Plastics manufactures custom polyethylene heat shrink plastic films. For Beverage Shrink Wrap, we offer clear printable shrink wrap and filmover-film shrink wrap for overwrapping printed shrink film.Brentwood Plastics is a 49 year old manufacturer of custom blown flexible plastic films located in St. Louis, MO###

Chemi Nutra’s specialty ingredient AlphaSize® A-GPC can help maintain and improve mental performance, boost exercise performance, and positively impact healthy aging without contributing flavor or cloudiness.

Closure Systems International is a leading global supplier of plastic and aluminum closures, capping equipment and technical services. Our popular water closures include the lightweight mini family of 26mm and 28mm flat and sport caps.

Century Foods International

Citromax Flavors

Flavor Producers

Century Foods International is a leading contract manufacturer for the beverage, food, sports, and nutritional supplement industries.

From non-carbonated, high-acid beverages to nutritional powders; Century Foods can create custom blends to meet your highest demands.

Citromax, with global headquarters in Carlstadt, NJ and facilities in Argentina and Brazil, has been one of the world’s premier growers of lemons and producers of oils and juices for more than 40 years. Our family of companies is also behind a delicious array of many of today’s most recognized, iconic flavors in beverages, confection, dairy, and baked goods.

Flavor Producers is a leading global manufacturer of premium quality conventional and certified organic flavors, extracts & essences. Your partner in innovative flavor development.

NOT ALL WATER IS THE SAME Is your water brand clean & healthy?

WHAT DISTINGUISHES OUR SPARKLING AND STILL MINERAL WATER FROM OTHER BRANDS:

Natural MINERAL water strengthens your health.

Natural ALKALINE water balances your acidity.

Natural ELECTROLYTES fortifies your body.

Very Low to Zero NITRATES keeps you clean.

For Retailers interested in carrying one of the healthiest natural mineral waters in the industry, please contact : Alex Fries afries@pureswisswater.com Tel. 408-426 8040 www.PURESWISSWATER.com

Pure Swiss is currently looking for local and national distributors.

JULY-AUGUST.2011.BEVERAGESPECTRUM 59

FutureCeuticals, Inc.

Osio International

Primera Technology

FutureCeuticals, Inc. is a leader in the research and development of innovative, scientifically justified, clinically tested functional food and beverage ingredients and nutritional products with facilities in Illinois, Wisconsin, California, and Europe.

Osio International facilitates off-shore sourcing of rotogravure printed Shrink Labels, Roll-Fed OPP labels, and Spouted Pouches.

World-class print quality, outstanding service, low pre-press costs. As little as two weeks from art approval to delivery of your new item. A certified Minority Owned Business.

Primera Technology is the world’s leading developer and manufacturer of specialty printing equipment.

Primera is well known for its LX-Series Color Label Printers, AP-Series Label Applicators, CX1200 Color Label Press and FX1200 Digital Finishing System.

Glover Capital, Inc.

Owens-Illinois

Prinova USA **Formerly Premium Ingredients International

Glover Capital, Inc., negotiates the purchase, sale, merger or restructuring of industry-specific assignments that are national and international in scope.

The company also advises owners and senior management on a wide spectrum of corporate financial issues.

O-I is North America’s leading producer of glass containers, with 19 manufacturing operations located in the United States and Canada. The company’s glass container lines span a range of shapes and sizes for food, beer, wine, spirits and other non-alcoholic beverages. O-I is focused on leveraging capabilities to bring innovative package solutions to current and potential customers. O-I is committed to being a performance-driven, customer and consumer-focused organization, providing the best packaging solutions to enhance brand recognition.

Premium Ingredients has outgrown its name due to expanded services and product portfolios. Prinova embodies our growth while communicating we’re still your global ingredient source and largest provider of vitamins and amino acids. Let Prinova be your secret ingredient.

GMP Laboratories of America, Inc.

Performance Packaging of Nevada

Prism Visual Software, Inc.

GMP Laboratories of America is a custom contract manufacturer that offers a range of manufacturing and packaging services including liquid dietary supplement products and oxygenated water.

Performance Packaging of Nevada is a premium flexible packaging supplier of Retort Packaging, Rollstock, Bags, Spouted and Zippered Pouches, Straw Pouches, Shrink Sleeves, Folding Cartons, Labels and Turnkey Filling Lines.

Prism Visual Software develops desktop, web, and wireless handheld application software to manage and improve pre-order delivery, route sales, and equipment service operations. The software serves a variety of industries including: Bottled Water, Water Treatment & Food and Beverage Distribution.

HealthyBrandBuilders

Pharmachem

Purac America, Inc

Healthy Brand Builders is a full service consultancy, specializing in building brands through industry connections and relevance! HBB also provides introductions to funding sources and aids in business foundation planning though exits! Your, ‘go to experts’ in the beverage business...

PHARMACHEM produces a variety of ingredients including vitamins, minerals, botanicals and premixes.

We also produce bulk & turnkey liquid & powder beverages.

Purac has a broad and versatile product portfolio for the beverages market, including products for preservation, acidification, flavor boosting, masking off flavors of intensive sweeteners and mineral fortification.

60 BEVERAGESPECTRUM.JULY-AUGUST.2011

Racks Incorporated

Solublend Technologies

Strive Logistics

Custom manufacturer of Point of Purchase displays for the beverage industry.

We manufacture right across the border getting displays made with quality, speed and inexpensively.

Call today for a free sample customized for your product.

SoluBlend Technologies LLC is the patent holder and manufacturer of a proprietary technology that allows nutraceuticals such as Omega 3 fatty acids, plant-based Phytosterols, Resveratrol, and Coenzyme Q10 to be incorporated into consumables as water-soluble lipids, opening up opportunities to provide shelf-stable value-added foods and beverages. Now consumers can get the added benefits of nutraceuticals in soups, drinks, foods and a plethora of beverages.

No matter where your company is headed, Strive Logistics will help you get there - literally. Strive Logistics is an award winning leader in beverage transportation offering a global range of services.

Sensient Colors

Spear

SunOpta

Inspired by a limitless palette, unmatched technology and the emotional connection between people and color, Sensient Colors has successfully defined memorable sensory experiences for the beverage industry for over a century.

Since 1982, Spear has been the world’s leading innovator and supplier of film pressure-sensitive labeling. Spear provides system labeling solutions through expertise in label design, production, application, performance and comprehensive technical support.

SunOpta Food Solutions leverages its global sourcing, supply, product development and logistics expertise to provide consumer products and food service solutions to the grocery and food service industry

JULY-AUGUST.2011.BEVERAGESPECTRUM 61

S A N TA M O N I C A

WINTER 2011

Tap The Cap, INC.

Tap The Cap’s patentpending dispensing cap fits onto virtually every well-known brand of bottled water. We are seeking out a licensing partnership that will take this groundbreaking product to the next level.

Triumbari Corp

DECEMBER 5 & 6, 2011 Loews Santa Monica Beach Hotel Santa Monica, CA

Triumbari specializes in the blow molding manufacturing of Custom and Stock PET bottles for cold fill applications. Whether re-inventing an existing product line or wanting to set one apart, Triumbari can make it happen in a economically feasible manner while still providing the high quality our customers have come to rely on.

Veriplas Containers

For more information and early registration pricing, visit www.bevnetlive.com SPONSORED BY:

Veriplas Containers supplies the bottled water and beverage industry with a broad selection of stock and custom PET containers.

Veriplas is a leader in the utilzation of recycled PET (rPET) in beverage containers.

WS Packaging Group, Inc.

WS Packaging has over 40 years of experience producing all types of labels, quality signage, folded cartons, coupons and booklets, game pieces, and more. ™

62 BEVERAGESPECTRUM.JULY-AUGUST.2011

FREE SUBSCRIPTION 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.

SEPTEMBER 22, 2008

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E-mail Please list a colleague at your location who should also receive a FREE subscription.

Name Title 1. Do you buy or influence the buying of beverages?

Yes No 2. Would you like to receive our weekly new product email newsletter?

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3. What is your primary business type? (check only one) A Convenience Store B Supermarket/Grocery C Club/Warehouse D Mass Merchandiser/Dollar E Drug Store F Liquor Store G Wine Store H Wholesaler/Distributor/Broker I Beverage Only/Beverage Specialty Store J Beverage Company K Supplier Company L Services Company X Other (please describe) 4. What is your title? (check only one) A Owner/President/CEO/COO/VP/Director B Buyer C Merchandising Manager D Regional/District Manager E Store Manager/Supervisor X Other (please describe) 5. Please check all product types that your company sells, distributes, or manufactures: (check all that apply) A Carbonated soft drinks B Non-carbonated soft drinks C Bottled water D Beer E Wine F Liquor X None of the above BS0811

COMPANY CONTACT INFORMATION company

name

address1

city

state

zip

phone

website

ACTIVATE Drinks

Joe McCoy

4590 MacArthur Blvd

Newport Beach

CA

92660

949-417-5728

www.activatedrinks.com

Adobe Springs Water Co.

Paul Mason

PO Box 1417

Paterson

CA

95363

408-897-3023

www.mgwater.com/download

Allen Flavors, inc.

Joe Morna

23 Progress St.

Edison

NJ

08820

908-561-5995

www.allenflavors.com

AMAzon Waters

Ed Newman

501 Brickell Key Dr.

Miami

FL

33131

786-400-1630

www.amawaters.com

Aquacai

Ken Kurtz

PO Box 511

Somers

NY

10536

917-848-9459

www.aquacai.com

AquaJoe Products LLC

Avi Ohring

PO Box 6209

Hoboken

NJ

07030

201-653-1500

www.aquajoe.com

Aspen Pure Water

Rob Curtis

1700 E 68th Ave

Denver

CO

80229

303-289-8655

www.aspenpure.com

Assure Food & Beverage Co., Inc

Chuck Miller

10883 Kinross Ave

Los Angeles

CA

90024

770-262-5709

www.assurewater.com

Balance Water Company

Martin Chalk

39 West 32nd St Suite 1504

New York

NY

10001

212-564-0878

www.drinkbalance.com

Bella Voda USA

Marcus Franco

PO Box 501305

San Diego

CA

92150

949-229-1489

www.bellavoda.com

BORBA, Inc.

Talia

21700 Oxnard St., Suite 1850

Woodland Hills

CA

91367

818-444-4848

www.drinkborba.com

BOT Beverage Company

Brian Allen

301 North Harrison St., #402

Princeton

NJ

08540

609-882-2806

www.botbeverages.com

Brands Within Reach

Magali Gaudron

689 Mamaroneck Avenue

Mamaroneck

NY

10543

914-433-0557

www.volvic-na.com

Brentwood

Plastics

8734 Suburban Tracks

St. Louis

MO

63144

314-968-1135

www.brentwoodplastics.com / beverage_wrap_film.html

C.M.W. Canadian Mineral Water Development S.A.

Hanna Meyer

5, rue Heienhaff

Senningerberg

LU

1736

+352 26 71 39

www.gize.com

Cape Cod Water Infusions

Russ Price

171 Whistleberry Drive

Marstons Mills

MA

02648

508-420-5581

www.capecodinfusions.com

Century Foods International

Pete Hahn

400 Century Court

Sparta

WI

54656

800-269-1901

www.centuryfoods.com

Chemi Nutra

Chase Hagerman

4463 White Bear Pkwy., Suite 105

White Bear Lake

MN

55110

866-907-0400

www.cheminutra.com

Citromax Flavors

Elaine KellmanGrosinger

444 Washington Avenue

Carlstadt

NJ

07072

201-933-8405

www.citromaxflavors.com

Closure Systems International

Nancy Moll

7702 Woodland Drive

Indianapolis

IN

46278

317-390-5000

www.csiclosures.com

Essentia Water, Inc.

Donna Braxton

22833 Bothell Evrt Hwy, Suite 220

Bothell

WA

98021

877-293-2239

www.essentiawater.com

Euro distribution Company LLC.

Marc Ducloz

4470 Chamblee Dunwoody Rd.

Atlanta

GA

30338

770-457-0300

www.epicureanbeverages.com

Ex Drinks, LLC

Travis Arnesen

1879 Whitney Mesa Drive

Henderson

NV

89014

702-949-6555

www.ExDrinks.com

FIJI Water

David Ricanati

11444 W. Olympic Blvd., 2nd Floor

Los Angeles

CA

90064

310-312-2850

www.fijiwater.com

Flavor Producers

Janet Guzman

28350 W. Witherspoon Pkwy

Valencia

CA

91355

661-257-3400

www.flavorproducers.com

Fluid Distribution LLC

Thomas K. Jessen

15 Azalea Drive

Lumberton

NJ

08048

609-410-8101

www.gerolsteiner.com

Fred Beverages, Inc.

Fred. He's water.

2633 Lincoln Boulevard #536

Santa Monica

CA

90405

877-437-9283

www.FredBrands.com

Function Drinks

Liz Kollar

3795 Landmark Street

Culver City

CA

90232

310-725-9050

www.functiondrinks.com

FutureCeuticals, Inc.

Hartley Pond

2692 N. State Rt. 1-17

Momence

IL

60954

888-452-6853

www.futureceuticals.com

ganic KG

Cinto Gersie

Gottlieb Daimlerstr. 1

Langenselbold

DE

63505

+49-6184-952640

www.ganicwater.com

Glover Capital, Inc.

Marion B. Glover

Ste 506, 229 Peachtree St, NE

Atlanta

GA

30303

404-523-2921

GMP Laboratories of America, Inc.

Suhail Ishaq

2931 E. La Jolla St.

Anaheim

CA

92806

714-630-2467

www.gmplabs.com

H2o Box

Michele Bassi

PO Box 946

Watsonville

CA

95077

831-750-9016

www.drinkh2obox.com

Hawaiian Springs, LLC

Clint Welker

3375 Koapaka St, F220-27

Honolulu

HI

96819

808-483-0520

www.hawaiianspringswater. com

HealthyBrandBuilders

James S Tonkin

7559 E. Woodshire Cove

Scottsdale

AZ

85258

480-596-6360

www.healthybrandbuilders.com

HINT Water

Liz Creelman

2124 Union Street, Suite D

San Francisco

CA

94123

646-475-5106

www.drinkhint.com

Icelandic Water Holding

Icelandic Glacial Water

2862 Columbia Street

Torrance

CA

90503

424-201-6800

www.icelandicglacial.com

ICIO Inc.

Alex Van Lang

935 Westbourne Dr. #205

Los Angeles

CA

90069

310-652-4790

www.iciowater.com

Intelligent Beverages, LLC

Steve Earnhart

10869 N. Scottsdale, Rd. #103-122

Scottsdale

AZ

85254

602-380-3899

www.resqwater.com

Keystone Water Company, LLC

Chris Rapp

1512 US 27 South

Lake Placid

FL

33852

239-331-7744

www.renewal-water.com

Maayan LLC

Orly Glick

10 Preston

Irvine

CA

92618

888-788-1541

www.mindessential.com

National beverage Corp.

Nicole Cheifetz

8100 SW 10th St.

Plantation

FL

33324

954-581-0922

www.LaCroixWater.com

64 BEVERAGESPECTRUM.JULY-AUGUST.2011

company

name

address1

city

state

zip

phone

website

Neuro Drinks

Ken Tenace

501 Santa Monica Blvd

Santa Monica

CA

90401

310-393-6444

www.drinkneuro.com

New York Spring Water, Inc.

Luke Zakka

517 W. 36th St.

New York

NY

10018

212-SPRINGW

www.newyorksprings.com

Nika Water Company, LLC.

Nika Water

PO Box 2348

La Jolla

CA

92038

800-585-5841

www.nikawater.org

Noah's Spring Water / Varni Brothers

Tony J. Varni

400 Hosmer Avenue

Modesto

CA

95351

209-521-1777

www.noahswater.com

Osio International

Rick Majewski

2550 E. Cerritos Ave.

Anaheim

CA

92806

714-935-9700

www.osiopack.com

owater

Chris Kinch

33 Bradford Street

Concord

MA

01742

978-578-4505

www.owater.com

Owens-Illinois

Angela Luring

One Michael Owens Way, P2

Perrysburg

OH

43551

567-336-5000

www.o-i.com

Performance Packaging of Nevada

Laura Martin

6430 Medical Center Street Suite 102

Las Vegas

NV

89148

702-240-3457

www.performance-packaging. com

Pharmachem

Gregory Drew

265 Harrison Avenue

Kearny

NJ

07032

201-719-7405

www.pharmachemlabs.com

Pink Monkey Water

Nancy Dellamonte

147 Danbury Road, #14

New Milford

CT

06776

914-274-1678

www.pinkmonkeywater.com

Primera Technology

Carla Schoenberg

Two Carlson Parkway North

Plymotuh

MN

55447

763-475-6676

www.primeralabel.com

Prinova USA (Formerly Premium Ingredients International)

Nicole Aurelio

285 E. Fullerton Avenue

Carol Stream

IL

60188

630-868-0300

www.prinovaUSA.com

Prism Visual Software, Inc.

Lynn Keating

1 Sagamore Hill Dr

Port Washington

NY

11050

516-944-5920

www.prismvs.com

Purac America, Inc

Eva Dratwa

111 Barclay Blvd., Ste. 100

Lincolnshire

IL

60069

847-634-6330

www.purac.com

Pure Distribution US LLC

David Lomnitz

777 S Flagler Dr. Suite 800 WT

West Palm Beach

FL

33401

561-515-6075

www.icelandspring.com

PURE SWISS mineral water Inc.

Alex Fries

PO Box 26291

San Francisco

CA

94126

415-992-7735

www.pureswisswater.com

Qure Water

Lesley Ventura

7231 Garden Grove Blvd. Ste. F

Garden Grove

CA

92841

888-800-6941

www.qurewater.com

Racks Incorporated

William Schiffman

7684 St Andrews Ave.

San Diego

CA

92154

619-301-7971

www.racksinc.com

Refreshing Ideas LLC

Julie Atherton

318 Indian Trace, Suite 340

Weston

FL

33326

888-650-2221

www.h2Ospringwater.com

RockHumanity Inc.

Sonny Page

1322 2nd Street Suite 2800

Santa Monica

CA

90401

800-604-7051

www.rockhumanity.com

Santa Monica Dist. Co. Inc.

David Hiekali

3180 West Olympic Blvd.

Santa Monica

CA

90404

310-453-9197

www.smdconline.com

Saratoga Spring Water

Adam C. Madkour

11 Geyser Road

Saratoga Springs

NY

12866

518-584-6363

www.sswc.com

Sensient Colors

Tom Tsimboukis

2515 N. Jefferson Ave.

St. Louis

MO

63106

800-325-8110

www.sensientfoodcolors.com

Skinny Nutritional Corp

Michael Salaman

3 Bala Plaza East, Suite 101

Bala Cynwyd

PA

19004

610-784-2000

www.skinnywater.com

Solublend Technologies

Ricard Staack

11487 Amhearst Court

Frankfort

IL

60423

815-534-5778

www.solublend.com

Soma Beverage Co. LLC

Mike Love

535 Bryant St

San Francisco

CA

94107

415-979-0781

www.metroelectro.com

Soma Beverage Company

Mike Love

535 Bryant St

San Francisco

CA

94107

415-979-0781

www.SomaBeverage.com

Spear

Kyle Baldwin

5510 Courseview Dr

Mason

OH

45040

513-767-7160

www.spearsystem.com

Palos Verdes Pen

CA

90274

310-614-7158

www.stirville.com

3008 N Lincoln Avenue

Chicago

IL

60657

773-342-5780

www.strivelogistics.com

Stirville

Laura Buchanan

Strive Logistics

Adam Moreau

SunOpta

Chad Hagen

2100 Deleware St

Santa Cruz

CA

95060

831-685-6506

www.sunopta.com

TalkingRain Beverage Company Inc

David Kearns

PO Box 549

Preston

WA

98050

800-734-0748

www.drinktwist.com

Tap The Cap, INC.

Chris Simonian

4924 Balboa Blvd. #277

Encino

CA

91316

818-472-2311

www.tapthecap.com

The Coca-Cola Company

Carrie Brune

1 Coca-Cola Plaza

Atlanta

GA

30313

404-676-3223

www.dasani.com

Tongo LLC

Paul Tecker

160 N. Riverview Dr. Suite 200

Anaheim

CA

92808

760-231-0806

www.DrinkTongo.com

Triumbari Corp

Patrick Moore

370 Healey Road

Bolton

ON

L7E 5C1

513-480-4210

www.triumbari.com

Universal Beverages, Inc.

Cydelle Mendius

PO Box 448

Ponte Vedra Beach

FL

32004

904-280-7795

www.syfobeverages.com

Veriplas Containers

Speed Stodghill

6600 Geyer Springs Rd.

Little Rock

AR

72209

800-919-3329

www.veriplas.com

Vitality Distributing

Trent Moffat

7300 Post Rd.

Dublin

OH

43016

614-766-2848

www.myavitae.com

Voss

Sales and Marketing

236 W 30th Street, 12 FL

New York

NY

10001

212-995-2255

www.vosswater.com

Watermark Innovation

Patti Ann Kelly

400 Noyac Road

Southampton

NY

11968

201-693-8285

www.drinkpurecool.com

Whistler Water

Lissa Poloni

PO Box 1400

Whistler

BC

V0N 1B0

877-65-WATER

www.whistlerwater.com

WS Packaging Group, Inc.

Rex Lane

2571 S. Hemlock Road

Green Bay

WI

54229

877-977-5177

www.wspackaging.com

Y Water

Thomas Jessen

15 Azalea Drive

Lumberton

NJ

08048

609-410-8101

www.ywater.us

ZICO

Bill Lange

643 Cypress Avenue

Hermosa Beach

CA

90254

310-379-9505

www.zico.com

JULY-AUGUST.2011.BEVERAGESPECTRUM 65

PROMO PARADE

PROMOTIONS, EVENTS, AND SPECIALS FOR THE INDUSTRY WAT-AAH! Rocks Out

Budweiser has just introduced the 12th iteration of their packaging since the company started in 1936.

Featuring Budweiser’s iconic bowtie design on the new can design and on secondary packaging designs, it will accompany the time-honored Budweiser creed and the Anheuser-Busch medallion.

The packaging will also feature a “Quick Response” code that will better enable Budweiser to regularly communicate with fans.

WAT-AAH! will be the exclusive beverage for Camplified, the 2011 nationwide touring rock concert, which is celebrating its 10th anniversary. Camplified is organized by Hear Here LLC., and will feature a line up of Radio Disney artists, up-and-coming names like Jessarae, McKenzie Comer, BRKN RBTZ, Jenny and Ashley and Beyond the Summit. WAT-AAH! will also develop a print and viral campaign to aggressively promote the young artists in Camplified and post detailed profiles, performances and clips of their work.

IMAGE COURTESY OF ANHEUSER-BUSCH InBEV ®

Budweiser’s New Bowtie

Pepsi Brings Ray Charles Back to Life Hearkening back to a commercial classic, Pepsi has collaborated with the Ray Charles Foundation to introduce retro T-shirts that faithfully reproduce those of the original Diet Pepsi Ray Charles commercials of the early ‘90s. Charles’s “You’ve Got The Right One Baby” Tshirts will align with Pepsi’s Throwback line, which offers vintage Pepsi packaging from the ‘70’s and ‘80’s. The shirts will retail from $24.00 to $38.00 at Kitson’s Robertson and Melrose locations in Los Angeles and will feature an exclusive Pepsi Throwback window promotion for two weeks starting July 16, and for two additional weeks at the Santa Monica Location starting August 1.

66 BEVERAGESPECTRUM.JULY-AUGUST.2011

Pepsi Features X Factor As the premier partner of The X Factor, Pepsi has announced that the winners of the singing competition will be featured in a Pepsi commercial scheduled to air on NBC during Super Bowl XLVI in February 2012. Joining other pop music icons like Michael Jackson, Madonna and Justin Timberlake, the commercial will be given in addition to the previously announced $5 million recording contract with Sony Music/Syco.

Amstel Light District Features Flavor Introducing a summer program called “District,” Amstel Light will bring their beer to consumers on- and off-premise through Labor Day this summer to convince buyers that Amstel Light is the only true full-flavored light beer. The Amstel Light District will feature social sampling activities, entertaining educational materials and brand ambassadors in select pubs and upscale sports bars.

Consumers 21 and older should text-in or go online to enter for a chance to win a grand prize trip to Amsterdam and experience the energy and culture of Amstel Light first hand.