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Columns 4 FIRST DROP Get energy out of the shadows 6 PUBLISHERS TOAST Taking personal resposibility 18 GERRY’S INSIGHTS The (deal) killer in our midst

Special Section 49 BEVNET’S 2013 NEW BEVERAGE GUIDE A look at the year’s new products

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Contents • Volume

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Departments 8 BEVSCAPE BUSINESS BluePrint prints money 10 BEVSCAPE INNOVATION Water goes Gaga 12 BREWSCAPE Inside 10th & Blake 14 NEW PRODUCTS Aloe gets fizzy 20 BREWBOUND The festival wrap-up – Themes from three cities 66 PROMO PARADE Whiskey guitars

BevNET Magazine (ISSN 2165-6061, USPS 24-552) is published bi-monthly except monthly in March, June, September, and October by 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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Features 22 THE EXPERTS The new strategy on strategics 26 CHANNEL CHECK The year in review for innovation categories – and Wal-Mart’s slice of the pie 36 COVER STORY MALTERNATIVES New profits are in the pouch 40 BOUTIQUE SODAS Gourmet CSDs battle on 44 FALL EXPO ROUNDUPS NACS & Expo East

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By Jeffrey Klineman

Monster: Turn the Light On As my children have taught me, the scariest monsters are the ones you can’t see. It doesn’t matter if they’re hiding under the bed, inside the closet, or, as we’ve heard lately, under the pop-top, the unknown is scarier than the known.

And when it comes to scares, it’s certainly been a tough couple of months for Monster Energy, which has seen its share price ride something like the “Scream Machine” while it faces waves of negative publicity and scrutiny from state and federal authorities, lawyers, the media, and a public that is increasingly starting to rethink its relationship with these products.

The situation at the root of the problem is a sad one: the death of Anais Fournier, a 14-year-old who died last winter after drinking two 24 oz. Monster drinks in two days. The family of Ms. Fournier, who had an existing heart valve condition, is suing Monster; as a part of that lawsuit her family’s lawyer released information from the FDA that mentions Monster as being somehow associated with five different deaths since 2009. As BevNET.com readers know, other companies have also reported “extreme adverse effects” to the FDA. The death of a child is a terrifying thing, and the release of governmentcompiled fatality reports is also enough to create a sensation. (Other energy drinkrelated controversies are a little less troubling, like when Red Bull-swigging Texas Rangers slugger Josh Hamilton missed several games in September as a result of something called “ocular keratitis,” a corneal problem that can result from too much caffeine ingestion.)

But it’s the lack of disclosure on both sides that is causing me to have concerns.

I actually find as much fault with the FDA and with Kevin Goldberg, the attorney for Fournier’s parents, as I do with Monster here. As tragic as the situation is, as a wrongful death suit, this is going to be a tough case to win: Monster makes it clear that its products are not recommended for people sensitive to caffeine – and Ms. Fournier – or her parents – had to be aware that she fell into that group. Monster

doesn’t appear to have broken any kind of regulation. In the case of the other FDA complaints, which Goldberg pried out of the agency via public records requests, there was no context released: the cases could range from caffeine toxicity to someone having a Monster in one hand while they drove off a cliff in the other. Without a little light, the causes are left to the imagination.

Even figures that show a massive increase in the number of caffeine-related emergency room visits over the past decade are hard for me to think about as a crisis of ingredients: there’s little information concerning how many are of the Red Bull and vodka variety versus the straight Red Bull variety, or how many are caused by, say, a couple of boys freaking out after drinking their first caffeinated beverage versus someone who has pushed their habit so far as to bring on ocular keratitis.

Again, the numbers raise eyebrows – but underneath the eyebrows, the eyes scan for context, finding little.

But Monster also needs to get its act together before regulators force it to do so, because nothing makes regulators act like a public impression that nothing is being done. The company needs to do something in order to control its own situation, because as long as it operates in the shadows, the shibboleths of consumer fear will gather there as well.

There is no overriding good reason that an energy drink – or any beverage – should keep from disclosing its caffeine content.

And by that, I mean all of its caffeine content, whether it’s from chemical analogs found in guarana, yerba mate, or green tea extracts, or the coffee-derived caffeine that they add to the typical Monster mix. This category has matured past the point where mystery about what makes the products work is an effective marketing tool. Holding out only increases controversy and creates negative feedback loops. It was a little less than a year ago that Monster President Mark Hall told us at BevNET Live that if the furor over most Monster ingredients became too great, the company could likely just take them out and move on. Obvious-

4 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

ly, Monster would never take out caffeine, but it could take away the guessing game consumers play when they look at the label and see a proprietary “energy mix.” Like we care. We prefer to know how much caffeine we’re getting so we can take a proper dose. Just like our calories and carbs.

One of the great strengths of the beverage industry has been its ability to react to consumer needs more quickly than other product types, whether by offering calorie data more prominently, developing better sweeteners for low-calorie products, or helping fuel late-night study sessions with a more agreeable form of caffeine consumption. For energy drinks – and, yes, for Starbucks as well – the consumer deserves to know the strength of the dose.

And that disclosure is becoming even more important as the inquiries start to pile up and the one missing piece for Monster – its caffeine content – becomes the one thing that everyone points to and says isn’t on the can. If they don’t offer up caffeine, they could be offering up a lot more, and for no good reason.

Supreme Court Justice Louis Brandeis said that sunlight is the best disinfectant.

Monster Energy isn’t in need of disinfecting – but it should cast a little light around the room, just to show everyone there isn’t something bad lurking in the shadows.

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MAGAZINE

By Barry J. Nathanson

www.bevnet.com/magazine

Barry J. Nathanson PUBLISHER

Taking Stock in Personal Responsibility As we come to the close of what has been a tumultuous year, I want to take stock of some of the issues that have dominated the news recently.

The events of the past few weeks in my home city of New York are staggering and overwhelming. It is hard to comprehend the devastation from hurricane Sandy. My heart goes out to the families who have lost everything.

The path to recovery is daunting and they might never be able to be whole again. Let’s hope they can.

The efforts to recover and rebuild have been exemplary. I admire the thousands of volunteers, relief workers, the fire and police departments, the civil servants, the MTA and utilities workers who have gone above and beyond to help their follow citizens. The efforts of people to come from all over the country for a common cause are impressive. It brings out the best of people in the worst of times. I also give a special shout out to the dozens of beverage companies, large and small, that have given product, resources, money and equipment to aid in the efforts. Our industry is a kind, benevolent one that, at crunch time, is there to serve the public.

I laud all the companies, too numerous to mention, that have contributed to the recovery. We have our priorities straight.

It’s a stark contrast to an issue that has dominated our beverage universe – the

controversy surrounding an unjust wrongful death lawsuit filed against Monster Energy. Monster is not alone in being attacked and vilified in the public. Many of the other players, in all categories, have been cited, sued or browbeaten by the media. They are all easy targets for the litigious and frivolous acts brought by classless class action lawyers and single case filers looking for a quick buck. It is sad that this young girl has died, but it is not the fault of their energy drink.

There have been well over 8 billion servings of energy drinks over the years just from Monster, and billions more from the likes of Red Bull, Rockstar and everyone else. The track record of these products is above reproach. All CPG categories should have that good a record.

If someone is irresponsible in their consumption of any product, in any category, it is not the responsibility of the manufacturer, but of the consumer. Abuse is on the backs of the public, not the producers.

You are accountable for your decisions.

The actions of Mayor Bloomberg, who I am an incredible fan of, in his quest to regulate quantity of consumption, are misguided. These legal actions, even more so. I fear sometimes that Americans don’t want to be responsible for what they do. It is so easy to blame everyone and everything for all that goes wrong. Man up and look in the mirror for the failings.

bnathanson@bevnet.com

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BEVSCAPE BUSINESS

The latest news on the brands you sell

Deals I: Hain Scoops Up BluePrint

Deals II: Money Raising the Weird Way – Pro NRG Lands $250K on “Shark Tank”

Fast-growing BluePrint — which makes raw juices and direct-to-consumer juice cleanse products — has been scooped up by natural foods conglomerate Hain Celestial.

Boulder-based Hain made the announcement as part of its quarterly earnings report, but did not disclose the amount of money it paid out for BluePrint, founded by a pair of friends, Erica Huss and Zoe Sakoutis, in 2007.

Expansion has come fast for BluePrint, which was being shopped for deals over the spring and summer by investment bank Partnership Capital Growth Advisors. With a $20-$25 million run rate derived largely from the brand’s cleanse products, the company has had little presence in retail outside of Whole Foods, although that was expected to change as BluePrint recently switched to High-Pressure Pasteurization as part of its push into wider retail circulation, as that allows high-quality fresh juices to last longer in grocery stores.

The company also recently rolled out BluePrint Bars as part of its expanding product line.

Hain did not disclose the amount of money it was paying for BluePrint.

Hain Celestial CEO Irwin Simon called BluePrint “an innovative leader.” Huss declined comment to BevNET, saying through a spokesman that the deal was not yet finalized.

Huss and Zakoutis — along with recently added beverage veteran Jim DiPietro, whom Hain announced is on board as the brand’s COO — will remain with the company and “continue to manage all aspects of BluePrint,” according to Simon. The Blueprint co-founders will report to John Carroll, the CEO of Hain Celestial United States.

It may not have been the exact deal that Pro NRG founder Tanya Patruno was looking for, but walking away with a $250,000 investment offer on the reality TV show “Shark Tank” could end up being a critical win for her fledgling beverage brand.

Patruno, who launched protein-infused water Pro NRG earlier this year, landed an opportunity to pitch her brand in the hopes of landing new capital on “Shark Tank.” The show features a panel of veteran entrepreneurs, including Dallas Mavericks owner Mark Cuban and real estate guru Barbara Corcoran, who entertain offers to invest in an entrepreneurial business or product. In her appearance on the show, Patruno was seeking a $250,000 investment for a 15 percent stake in Pro NRG in the hopes of taking her brand national.

With San Francisco 49ers running back and Pro NRG endorser Brandon Jacobs at her side, Patruno told the panel that within three months of its launch, Pro NRG had $126,000 in sales and secured distribution in 3,000 locations in Manhattan, including convenience stores, delis, and big box retailers. While the panel was impressed with the company’s

rapid growth, they were less than enthusiastic when Patruno explained that the cost to manufacture Pro NRG is $1.10 per bottle, wholesales for $1.80, and has a a retail price of $3.99.

“Do you realize that your distributors are making more money than you?” asked panelist Kevin O’Leary. “That’s upside down. You have to make more money than they do. That’s crazy.”

Although most of the panel quickly passed on Patruno’s proposal – reasons ranged from Pro NRG’s low profit margin to a difficult and competitive market for protein and sports drinks – FUBU founder and CEO Daymond John offered Patruno an investment of $250,000 for 30 percent of the company, contingent upon Pro NRG landing a contract with BADDASS, a protein and supplement company that John has a partnership with. Patruno accepted the offer, adding that Pro NRG would benefit from John’s expertise in branding and marketing.

Though details of the proposed contact with BADDASS were not disclosed, the deal with John has recently been finalized, according to a Pro NRG spokesperson.

Armstrong Scandal Reaches Beverage Indsutry Count FRS as one of the companies that severed ties with cyclist Lance Armstrong in the wake of a recent U.S. Anti-Doping Agency report that revealed him as a chemically-enhanced cheater throughout his career.

A host of prominent product companies, including Nike and Radio Shack, also ended endorsement deals with Armstrong.

But few had as tight an alignment with the cancer survivor as FRS, as the quercetin base of the drink has long been touted for its potential as a cancer-fighting supplement. FRS had been associated with the Livestrong Foundation — which Armstrong chaired until his resignation following the USADA report — since 2007.

Armstrong has been an investor and member of the board of directors for the company, as well as a spokesman and “FRS Ambassador” for several years. Beer maker Anheuser Busch, for whom Armstrong has

8 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

promoted Michelob Ultra, also said it would not renew its contract with Armstrong following its expiration at the end of the year.

In the wake of Armstrong’s departure, FRS quickly moved Tim Tebow, its squeaky clean spokesman, squarely to the forefront of a major marketing initiative.

Today, FRS announced a new national campaign promoting its relationship with the New York Jets quarterback, who, as a result of Armstrong’s departure, is now the premier endorser of its line of quercetin-based line of functional drinks and powders. The campaign, called “Time with Tebow,” includes new limited edition FRS bottles and packaging with images of Tebow as well as a “Meet Tim Tebow” contest, a coupon program for a free FRS product, and social media promotions designed to promote greater awareness of the Tim Tebow Foundation.

Politics: California Voters Say No to GMO Labeling, Soda Taxes While Election Day yielded few changes within the overall political landscape in the U.S., three referendum votes in California that were likely to have a significant impact on the sale of beverages in the state were defeated.

In a closely watched vote, Californians said no to Proposition 37, an initiative that would have required mandatory labeling of genetically modified or engineered food and ingredients. The initiative would have also prohibited labeling or advertising of genetically modified food as “natural,” with some exceptions.

The ballot measure was backed by the organic foods industry and some consumer protection groups, but was opposed by a number of large food and beverage companies – including PepsiCo, Inc. and The Coca-Cola Co., Inc. It was rejected by nearly 53 percent of voters.

Prop. 37 was the focus of an intense bombardment of negative television advertisements. It was also heavily criticized by newspaper editorial boards, who said they feared additional government bureaucracy and taxpayer costs, as well as the potential for new, frivolous lawsuits and increased food prices.

Supporters of the initiative vowed to continue fighting for GMO labeling and indicated that they would now turn their attention toward the issue on a federal level.

“Federal GE foods labeling must now be the focus,” said David Bancroft, the campaign director for Just Label It, a national coalition of 600 organizations that support labeling of genetically modified food. “The same powerful interests that funded the campaign against Prop 37 have already had their lobbyists insert language in House versions of the Farm Bill, which, if passed, would strip federal agencies of their authority to regulate [genetically engineered] crops.”

Meanwhile, voters in two California cities rejected measures that would have added a one-cent-per-ounce tax on purchases of soda and other sugary drinks. Residents of El Monte and Richmond voted against the tax, which was intended to reduce rising obesity rates and supply a new revenue stream in both cities.

However, the beverage industry, which, unsurprisingly, opposed the tax initiatives, launched a historic fight against the measure in El Monte, spending more than $1 million to defeat it.

Nearly 77 percent of the voters in El Monte opposed the new tax; while El Monte Mayor Andre Quintero, who was the top supporter of the measure, called the margin “insurmountable,” it was unclear if proponents would attempt to revisit the plan in the next election cycle.

Correction: In the October New Products section BevNET Magazine incorrectly reported that Just Chill comes in an 8.4 oz. can.The Just Chill can is 12 oz.

NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 9

BEVSCAPE INNOVATION

Product development & marketing news

Pop Water Comes With Some Popular Founders Here’s the challenge for Troy Carter, the manager of pop superstar Lady Gaga: launch a brand that has a basis in celebrity DNA without necessarily using those celebrities as the only reason to buy the product.

In late October, Carter announced that he was launching Pop Water, a low-calorie soft drink with famed fashion photographer Terry Richardson as its design director. Activate Drinks cofounder Burke Eiteljorg is also attached to the project, bringing beverage industry knowledge and contacts to the team.

But despite his and Richardson’s strong ties to the cultural and musical phenomenon that is Lady Gaga, Carter made it clear that he isn’t making “GagaH2O” — his plans for Pop Water don’t rely on his famous client’s celebrity to sell the product.

She is an investor, Carter said, but “Pop Water is completely independent of Lady Gaga.”

Not that having a product attached to Ms. Gaga doesn’t help, Carter concedes, but the company is interested in developing a credible beverage brand that isn’t based solely on celebrity because he’s wary of not having a product that could stand on its own.

“We understand celebrity really well,” Carter said. “We know when it’s an advantage and when it’s a disadvantage. You cannot hide a bad product behind celebrity.”

Instead, Carter is hoping that the brand’s striking design – the 11.2 oz. aluminum bottles, imported from Europe, feature strong fruit-splash graphics – and low calorie count will intersect with an ongoing move toward healthier beverages. The product is a 30-calorie fruit-flavored CSD, sweetened with a mix of sugar and stevia. The brand will debut in January in four flavors: pineapple, grape, orange and apple. Atom Factory worked with Wild Flavors on product development for almost a year, according to Carter.

Eiteljorg has been working with Carter and Richardson to build a team to help aid distribution and sales. The product is expected to launch through a handful of well-known southern

California distributors when it debuts, although no MSRP has yet been attached to it.

“We have three or four of the usual players lined up now,” Eiteljorg told BevNET. According to Carter, the company will focus initially on supermarket and specialty retailers, although with regard to alternative channels, “we have some tricks up our sleeve.”

Richardson, an edgy photographer who is known for erotically-charged shoots, was responsible for the design of the bottle. He has already worked on a coffee table book with Lady Gaga, released last year.

The idea for a soft drink arrived following what Carter called “music-related initiatives” with the Coca-Cola Co., Inc. and PepsiCo, Inc. According to the branding expert, the ties between music and pop culture have not been fully infused into the DNA of a beverage brand.

There are similarities between music and beverage, he added, in terms of starting small, building an audience, and making investments at the right time.

“We’re coming into the beverage industry with full respect,” for the challenges it entails, he said.

Both Lady Gaga and Atom Factory clients Greyson Chance and Fareoh quickly passed along “likes” on Facebook following the unveiling of the Pop Water project. But another one of Carter’s clients, John Legend, is already on board with Hint Water as an investor and brand representative. Despite client loyalty, the manager said, there won’t be any room reserved for Hint in the Atom Factory’s refrigerator.

“That’s going to be Pop Water only,” he said.

Gluten-Free Market to Reach $4.2 Billion in Sales in 2012 With nearly one in five U.S. adult consumers now purchasing or consuming products tagged as gluten-free, sales of gluten-free foods and beverages are expected to reach $4.2 billion in 2012, according to a new report from consulting group Packaged Facts. The report indicates that the gluten-free category has enjoyed a compound annual growth rate of 28 percent over the past four year period, and while the group expects growth to moderate over the next five years, the market research firm has pegged the segment to reach $6.6 billion in sales by 2017.

The report ties the rise of gluten-free foods and beverages to growing research that links grain-based diets to a variety of health ailments including celiac disease and food allergies. And as consumers increasingly shift toward healthier lifestyles and become more aware of gluten-free offerings, David Sprinkle, the research director at Packaged Facts, states that “the conviction that gluten-free products are generally healthier is the top motivation for purchase of these products.”

10 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

In Advance of a Broken Straw We’ve got some pouch news in our Malternatives coverage, but this is kind of neat: Ampac has announced the launch of the Pull Tab beverage pouch. The Pull Tab innovation is an alternative beverage pouch format to the traditional straw punch-through beverage pouch that is commonly used in the beverage market. If you’ve ever known the devastation of breaking your pointy straw trying to get at that Capri-Sun, you’ll know just how significant a development this is.

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BREWSCAPE

News from the brewing industry

Cardella: Tenth And Blake Seeks Craft Partnerships Here’s something a lot of craft brewers don’t like to share: They are every bit as interested in learning what Tenth and Blake – MillerCoors’ craft arm – can do for their businesses as MillerCoors is interested in talking to them about a partnership.

Tom Cardella, Tenth and Blake’s president and CEO, said during a recent interview with Brewbound that nearly 20 craft brewers approached him at this year’s Craft Brewers Conference, looking to discuss strategy and the future of their businesses.

Those conversations, he claims, were unsolicited. Also unsolicited, Cardella said, are the phone calls from small brewers, which are beginning to come in more frequently.

“Because of the uncertainties within the craft segment and the rapid growth of new players coming in, we get a lot of phone calls from smaller guys that see us as an opportunity,” he said.

Cardella is a 30-year veteran of the beer industry and boasts executive stints with Miller, InBev, Beck’s North America and Labatt USA. Now, he’s drawing on that experience to help strengthen MillerCoors’ craft portfolio. He’s hoping craft brewers will recognize the opportunity to align themselves with the country’s second-largest beer company — something many in the space have viewed, until now, as a deal with the devil, an attempt by MillerCoors to “buy craft” rather than win converts organically.

Not surprisingly, Cardella doesn’t see it that way. But he’s also not rushing any deals.

“If it is a model that we think makes sense, we will create partnerships,” he said.

It’s no secret that Tenth and Blake has been looking at the segment intensely. The company has openly admitted to having conversations with a number of craft brewers. It already owns 25 percent of Georgia’s Terrapin Beer Company; the company has also shown interest in Boulevard Brewing, and acquired Crispin Cider in February.

“We maintain an ongoing dialogue with a fairly wide set of existing players,” he said.

He said the company wants to learn how to better support craft brewers and how Tenth and Blake might become more involved with new partners. Cardella said he has a bullish outlook on the segment, but he admits it comes with some concerns.

“The barriers to entry in the craft industry are very low right now,” he said. “Homebrewers with a passion have the ability to go out and find small amounts of capital. That model continues to be exploited, hence the ongoing dialogue that there are another 1,000-plus brewers coming onto the scene.”

His fear is that these new, small craft brands are going to have a tough time earning that coveted spot a wholesaler’s truck, something Tenth and Blake with its access to a large network of MillerCoors distributors can remedy.

His other concern is the continued capital constraints craft brewers face as they look to grow their brands – again, something Tenth and Blake, with its access to the MillerCoors coffers, can solve.

But he also recognizes that any relationship will likely depend on developing a reputation in the larger craft brewing community as a big brewer that recognizes how craft is rejuvenating the overall beer category.

Cardella’s message: We come in peace.

“We are builders of brands,” he said. “We want people to know that we are looking to build a portfolio of breweries and brands that will continue to please consumers, support the MillerCoors distribution network, and provide us the ability to have a meaningful dialogue with our retailers.”

It’s been a slow education process, but Cardella is optimistic.

And as for investments, Cardella said he’s not sure when Tenth and Blake’s next craft deal will occur or what it will look like.

The company is looking at both strong regional players and small local brands – the only caveat being that a smaller brand must be capable of scaling.

“What’s most important to us is the initial chemistry,” he said.

“We want to find a relationship that not only enhances the value for both parties but one that maintains the spirit of the entrepreneur.”

Deals I: North American Breweries Sold In October, New York City-based private equity firm KPS Capital Partners announced plans to sell North American Breweries (NAB) – whose brand portfolio includes well-known craft offerings like Magic Hat, Pyramid and MacTarnahan’s – to Cerveceria Costa Rica, S.A. for $388 million.

Reports of a potential buyout surfaced in September when Reuters, citing “sources familiar with the matter” reported that KPS had put the NAB brand up for sale. NAB has long been discussed as an acquisition target. At one point in 2011, it

was rumored that the Japanese company, Saporro Holdings Ltd., was interested in cutting a deal. NAB officials regularly denied those claims and refused to comment on last month’s buyout speculations.

KPS formed NAB in February 2009 as a platform for investments and growth in the North American beer and malt beverage industries. At that time, KPS also announced NAB’s first three acquisitions: Labatt USA from a subsidiary of Anheuser-Busch InBev; substantially all of the assets of High Falls Brewing Company, LLC (now known as the Genesee Brewing

12 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

Company); and a perpetual license for the Seagram’s Escapes and Seagram’s Smooth brands from Pernod Ricard USA, LLC. In 2010, NAB acquired Independent Brewers United, Inc, one of the largest craft brewers in the United States, and owner of the Magic Hat, Pyramid and MacTarnahan’s brand families of craft beer.

Deals II: Not Bad for Apple Squeezins’ In the third deal in the cider space Hard Cider Company LLC – maker of Woodchuck Hard Cider – sold in late October to Irish cider company C&C Group for $305 million.

“It is our belief that significant opportunities for growth of the cider category are possible by combining these iconic cider brands,” said Bret Williams, Vermont Hard Cider President and CEO, in press materials.

Later, Williams told reporters that “I think I left a lot of value on the table. We didn’t shop it around but I know we could have received a higher value.”

Still, he said, he doesn’t deny feeling “pretty good” about $305 million.

“I think it is a very aggressive offer,” he said. “If this were a large global brewer like MillerCoors or AB-InBev, I wouldn’t have sold. They offered a quick exit that was painless.”

Vermont Hard Cider Company joins an impressive C&C portfolio that includes brands like Magners and Hornsby’s. C&C purchased Hornsby’s last year for $26 million.

In August, Vermont Hard Cider Company relinquished its distribution rights for the Strongbow brand to Heineken. And in February, Tenth and Blake – MillerCoors’ craft arm –purchased Crispin Cider for an undisclosed amount. The Wall Street Journal has pegged that deal at $40 million.

The Woodchuck brand has something of a storied past. The cider

company launched in 1991 as Green Mountain Beverage Company and was acquired in 1998 by H.P. Bulmer of England – at the time, the largest global cider producer. After Bulmer teetered on the edge of bankruptcy for years, Scottish & Newcastle purchased the company in 2003 for $278 million euros (Scottish & Newcastle was later acquired by Heineken, in 2008).

During the 2003 sale, Scottish & Newcastle reportedly had little interest in the U.S. cider business and Williams – who had been with Green Mountain Beverage since 1996 – assembled a small group of investors who were able to purchase the Woodchuck brand. Under Williams’ leadership, the company has become the largest U.S. cider maker, producing 215,000 barrels in 2011. The company is also in the midst of a $22 million expansion which includes a new, 100,000 square foot production facility scheduled to open in the summer of 2013.

Both domestic and craft brewers are paying attention to the cider space too. Anheuser-Busch extended its Michelob Ultra line with a light cider offering and the Boston Beer Company rolled out its Angry Orchard Hard Cider line nationwide in April.

Hard cider currently makes up less than 1 percent of total U.S. beer market (roughly 6 million cases), but growth is promising.

The category generated nearly $450 million in retail sales in 2011, up 23 percent over 2010.

NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 13

NEW PRODUCTS

The newest options for cooler and shelf

Carbonated Soft Drinks PepsiCo has launched a new dragonfruit flavor to its Pepsi X line of mid-calorie sodas.

The new flavor was chosen by fans and contestants of the reality TV show “The X Factor” during “The Pepsi Flavor Audition Tour.”

The dragonfruit flavor will be available for a limited time and sold in 12-packs of 12 oz. cans, 2 L bottles, and 20 oz. bottles. For more information, please call (914) 253-2628.

AriZona Beverages has partnered with artist Richard Prince to create a new lemon-flavored drink called Lemon Fizz. The lightlycarbonated beverage is packaged in a 23 oz. can partially designed by Prince himself.

The drink contains natural lemon flavor and is sweetened with high-fructose corn syrup, honey, and sucralose. Lemon Fizz will debut at Art Basel Miami Beach, an influential show for modern and contemporary works of art, from Dec. 6-9. The product will be launched nationally following the art show and has a suggested retail price around $.99-1.25. For more information, please call (516) 812-0346.

Lemonade AriZona has extended its Jack Nicklaus Golden Bear line with Jack Nicklaus Golden Bear Mint Lemonade. Golden Bear Mint Lemonade contains 10 percent juice and honey with a touch of fresh mint flavor.

Like all of AriZona’s products, the beverage contains no artificial flavors, colors, or preservatives. The drink is available nationally and has a suggested retail price is $.99-1.25 per 23 oz. can. For more information, please call (516) 812-0346.

Mr. Mo’s Beverages, Inc. has rolled out its proprietary line of Mr. Mo’s Lemonades in New England. Packaged in 16 oz. glass bottles, the line of drinks includes its flagship Mo’st Apeeling Lemonade (a Half & Half variety), and four fruit-flavored lemonades: Blackberry, Mango, Raspberry and Strawberry. The drinks are certified USDA Organic, sweetened with organic cane sugar, and contain 80-100 calories per 8 oz. serving.

The lemonades have a suggested retail price of $1.79-1.99. For more information, please call (561) 691-9147.

Water Icelandic Water Holdings ehf, makers of premium natural spring water Icelandic Gla14 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

cial, has launched a redesign that embraces the brand’s native country of Iceland. While retaining the brand’s unique glacial bottle shape, the redesign features frosted matte finish panels, a window in the shape of Iceland that displays the country’s topography, a new black script, additional information on the 5,000-year history of the source, emphasized pH information, and a lava-inspired black cap. The bottle’s back panel includes the new tagline “Source of an Epic Life.” For more information, please call (424) 201-6800.

Juice Homemade Bliss, LLC has introduced Nanny Fay’s Homemade Bliss, an allnatural blend of 100 percent fruit juice and extracts. The products contain 110 calories and 28 grams of sugar per serving. The drinks are packaged in 16 oz. glass bottles and have a suggested retail price of $2.60.

Nanny Fay’s Homemade Bliss will be sold in select grocers and online at www.nannyfays.com. For more information, please call (404) 219-3990.

Ocean Spray has launched two new variations of its flagship juice: Ocean Spray Low Tart Cranberry Juice Cocktail and Ocean Spray 2/3 Less Sugar Cranberry Juice Cocktail. Ocean Spray Low Tart Cranberry Juice Cocktail has a mild taste that is less tart than Original Cranberry Juice Cocktail. The juice contains a combination of cranberry juice and CranEssence, a natural cranberry extract made from sun-ripened cranberries. Ocean Spray 2/3 Less Sugar Cranberry Juice Cocktail contains two-thirds less sugar than Ocean Spray’s Original Cranberry Juice Cocktail and 35 calories per 8 oz. serving. The new drinks have a suggested retail price of $2.99 for a 64 oz. bottle, and are available exclusively at WalMart and at Kroger stores nationwide. For more information, please call (508)-946-7185.

Energy Drinks Next10 Energy is a new line of energy shot supplements. Next10 Energy was launched by a neurosurgeon who wanted to create a natural energy supplement that boosted cognitive performance without negative side effects associated with excessive caffeine and B vitamin levels. The energy shot contains zero calories and comes in an apple flavor. The product has a suggested retail price of $2.99 for a 2 oz. shot and is currently distributed at Walgreens stores throughout Oregon and

southwest Washington. For more information, please call (503) 691-9380.

New York Spring Water has launched VBlast Gator Pit Energy Formula, a new, sugarfree, taurine-free energy drink. Like other beverages in the VBlast line, VBlast Gator Pit is topped with a patented reservoir cap, which releases a liquid vitamin blend into 16.9 oz. of spring water. The suggested retail price is $1.49 to $1.89 per bottle. The new product is distributed in convenience stores, groceries, delis and sports clubs along the East Coast. For more information, please call (212) 239-7281.

Functional Drinks So Real is a new line of all-natural functional drinks formulated with vitamins, electrolytes, antioxidants, calcium and dietary fiber and designed to provide energy, hydration, recovery and wellness to consumers. The drinks contain 25 calories per 16 oz. bottle and come in four flavors: Citrus Pear, Strawberry Grapefruit, Papaya Peach and Tangerine. So Real has a suggested retail price of $1.99-2.49 and is currently distributed in Georgia and South Carolina. For more information, please call (404) 297-7787.

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Denver-based Point Brands Inc., has launched its second product, iXtreme Hydrator, a caffeine-free, electrolyte-infused, lightlycarbonated functional beverage. The beverage made its debut in select convenience stores, restaurants and skate shops in the Aspen and Denver area earlier this summer. The company has also developed an iXtreme Team of athletes to represent the brand. The drink has a suggested retail price of $1.69. For more information, please call 303-667-6853.

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Zola All-Natural Coconut Water is now available in a 1 L Tetra Pak. The coconut water is sourced from Thailand and contains five essential electrolytes: sodium, potassium, calcium, phosphorus and magnesium.

The new package size has a suggested retail price of $4.99 and is available nationwide at Dominick’s, Duane Reade, Lucky/Save Mart, Raley’s, Safeway, ShopRite, Stop n’ Shop, and Vons locations, as well as online at Amazon.com. For more information, please call (415) 775-6355.

Hot-Can has launched a new line of selfheating beverages. Each beverage is packaged NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 15

in a 7.1 oz. can that is equipped with a selfheating mechanism that is activated by pressing a button at the bottom of the container.

The flavor lineup includes: Café Mocha, Café Latte, Hot Cocoa, Hot Tea. Hot-Can beverages have a suggested retail price of $2.49 $2.99 and are available at www.hot-can.com, www.walmart.com and at convenience stores across the country. For more information, please call (858) 625-0200.

Smirnoff has introduced Smirnoff Iced Cake Vodka and Smirnoff Kissed Caramel Vodka. The vodkas are triple distilled and filtered ten times. The new product contains 30 percent alcohol by volume and comes in 50 mL, 750 mL, 1 L and 1.75 L sizes and is available nationwide. The vodkas have a suggested retail price of $12.99 per 750 mL bottle. For more information, please call (646) 223-2314.

Novamex has launched Alova, an all-natural sparkling aloe vera drink. Alova contains 15 percent organic aloe juice sourced from plants grown on a company-owned farm in Campeche, Mexico, and is sweetened with sugar. The drink has no preservatives or artificial flavors, and is packaged in a proprietary 330 mL glass bottle. Alova has a suggested retail price of $1.99 and will be sold exclusively at The Fresh Market until February 2013, followed by a national rollout. For more information, please call (915) 594-1618.

Whiskey

Powders Navitas Naturals Coconut Water Powder is made from the juices of fresh young organic coconuts. The coconut juice has been removed and freeze-dried to preserve the flavor and nutrients in the powder, which is certified organic, raw, vegan, gluten-free and kosher. The powder contains five key electrolytes to support rapid hydration: sodium, magnesium, calcium, potassium and phosphorus. Packaged in a 5.8 oz. re-sealable and recyclable pouch, the product is available at thousands of stores throughout North America including Whole Foods Markets, Wegmans, Sprouts and HEB, and online at NavitasNaturals.com and Amazon.com, for a suggested retail price of $11.99. For more information, please call (888) 645-4282.

Vodka Beam Inc. has introduced Pinnacle Pumpkin Pie vodka. The limited-edition vodka blends flavors of pumpkin, cinnamon, nutmeg, and whipped cream. The new product follows the other flavor introductions for the premium vodka in 2012, including Pineapple, Peach, Blackberry, and Cucumber Watermelon. Pinnacle Pumpkin Pie is available in select U.S. markets for a suggested retail price of $12.99. For more information, please call (847) 444-7073.

16 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

Constellation Brands has launched Black Velvet Toasted Caramel Flavored Whisky.

The whisky blends natural toasted caramel flavors and Black Velvet Canadian Whisky.

The product is 70 proof and is available in 750 mL and 50 mL bottles and has a suggested retail price of $12.49 for the 750 mL size. The spirit is distributed nationally. For more information, please call (585)393-5711.

George Dickel Rye is a new straight rye whisky matured in new charred oak barrels for at least 5 years that consists of a mash bill of 95 percent rye and 5 percent malted barley. The 90 proof whisky has an amber, golden appearance. George Dickel Rye has a suggested retail price of $24.99 for a 750 ml bottle and is available nationwide. For more information, please call (704) 644-6933.

Woodford Reserve Four Wood is the latest extension of the distillery’s Master’s Collection. Four Wood is a unique batching of mature Woodford Reserve bourbon that has been aged in American Oak and finished in barrels made from Maple Wood, Sherry Wood and Port Wood. Each bottle is individually numbered and presented at 94.4 proof.

Four Wood will be sold in 47 U.S. markets and has a suggested retail price of $99.99 for a 750 mL bottle. For more information, please call (502) 774-6949.

Crown Royal has launched Crown Royal Maple Finished. The 80 proof whisky is crafted by running Crown Royal whisky through maple toasted oak, resulting in an light maple-sweet flavor and a woody caramelized note on the end. The packaging is a slight variation on the classic Crown Royal style, incorporating colors of copper and auburn into the label, which displays the traditional image of the maple leaf in the background. The iconic bag that accompanies the bottle is a deep brown color

with gold embroidery accents. Crown Royal Maple Finished has suggested retail price of $24.99 for a 750 mL bottle and is currently available nationwide. For more information, please call (646) 223-2016.

mium line of chocolate liqueurs comes in three flavors: Chocolate Cherry, Chocolate Mint and Chocolate Chili. Each 750 mL bottle has a suggested retail price of $17.99. The products are 30 proof and distributed nationwide. For more information, please call (847) 444-7657.

Wine Southwest Wines has launched its recently renamed Soleil Mimosa in a new 187 mL aluminum slim can from Ball Corporation.

The ready-to-drink beverage blends premium sparkling wine with fresh-squeezed orange juice and is 8 percent ABV. The product is has a suggested retail price of $10.99 for a 4-pack of cans, and is distributed across the United States. For more information, please call (866) 867-3898.

Coastal Wine Brands has launched Charonge, a California white wine blended with natural orange flavor. Charonge features fresh orange blossom, peach/apricot and yellow plum aromas, orange, papaya and yellow apple flavors, and a long finish with a slight spritz.

Charonge is a packaged in a frosted 750 mL bottle and has a suggested retail price of $12.

The wine is distributed nationally. For more information, please call (707)265-1745.

Kenwood Vineyards has released “Smile,” its 2008 Kenwood Vineyards Artist Series Cabernet Sauvignon, featuring a label designed by accomplished artist Robin F. Williams. After fermentation and gentle pressing, the wine was aged in small oak barrels – 90 percent French and 10 percent American – for 27 months.

Following bottling, the 2008 Kenwood Vineyards Artist Series Cabernet Sauvignon was cellared at the winery for 18 months prior to release. Just 1,454 cases were produced. The wine is available in selected markets nationally for a suggested retail of $60. For more information, please call (707) 824-7715.

Other Spirits Copa Spirits Co. has launched U.S. distribution of Ron Miel de Canarias. Ron Miel is a blend of aged rum and honey and produced in the Canary Islands, Spain. Ron Miel is packaged in a 1 L bottle and retails for approximately $27.99. The rum is available at over 210 locations including Astor Wines & Spirits and Binny’s Beverage Depot. For more information, please call (310) 866-0153.

Beam Inc. has launched John DeKuyper & Sons Crave Chocolate Liqueurs. The pre-

Absolut Tune is a sparkling fusion of white wine and premium vodka. The new blend brings together a fruit-forward Sauvignon Blanc from the Marlborough region of New Zealand and Absolut Vodka. The new product contains 14 percent ABV and is available in a 750 mL bottle for a suggested retail price of $31.99. Absolut Tune is distributed nationally. For more information, please call (914) 848-4782.

Pernod Ricard USA has introduced Kahlúa Gingerbread, the latest entry to Kahlúa’s limited-edition holiday line. The liquor features notes of gingerbread, nutmeg and subtle cinnamon and clove, blended with the taste of 100 percent Arabica coffee and sugarcane rum. The new product has a suggested retail price of $17.99 per 750 mL bottle and is available nationwide while supplies last. For more information, please call (914) 848-4782.

Cocktail Rx is a new line of modern cocktail shakers. Debuting in three signature flavors - Cosmopolitan, Appletini and Lemon Drop the shakers contain ingredients to create eight servings of a cocktail and come with special rimming sugar to line and style glasses. Cocktail Rx’s signature cocktail shakers are available for purchase in Kroger grocery stores nationwide for a suggested retail price of $6.99 for each 8 oz. ready-to-shake container. For more information, please call (877) 434-6755.

Beer Howe Sound Brewing has released its Pumpkineater Imperial Ale. Pumpkineater is a high-gravity pumpkin ale brewed with barley, fresh roasted pumpkin, hops, cloves, cinnamon, nutmeg, star anise, water and yeast. The unfiltered ale contains 8 percent ABV and features flavors and aromas of a pumpkin pie, and a spicy finish. Pumpkineater is available in draft and bottles through November. The beer has a suggested retail price of $8.50 per in 1 L re-closable “pot-stopper” bottle and is distributed throughout British Columbia, Alberta, Ontario and Washington State. For more information, please call (604) 818-5097.

NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 17

By Gerry Khermouch

The (Deal) Killer in Our Midst As those of you who’ve learned to skip right over them will know, I often start my columns with an amusing or revealing anecdote, or even sometimes a mordant joke. You won’t get that this month, because that certainly isn’t appropriate when the topic of the column is the killer in our midst. Energy drinks.

As I write this, the energy drink business is getting slammed by serial reports of fatalities “linked” (how we journalists love that word!) to consumption of the highly (and sometimes not-so-highly) caffeinated drinks. We have the parents of a 14-year-old girl suing Monster Beverage for the brand’s alleged role in her premature death, and enterprising journalists scurrying to dig up “adverse incident” reports (usually filed to the FDA by the energy marketers themselves) on episodes involving injured or deceased consumers who’d consumed energy drinks or shots around the time they experienced their distress. If I seem to be taking a snide tone in recounting these events, it’s certainly not because I see anything remotely amusing or trivial about those consumers’ travails. What I do find appalling is the stampede to judgment in a near-total absence of any evidence that the drinks are any more dangerous than, say, Starbucks Coffee or Mountain Dew sodas.

I’m certainly not writing this as a blind supporter of the beverage industry.Readers of my newsletter might recall that I was the first to blow the whistle in 2010 on the presence of excessive levels of alcohol in kombuchas labeled as non-alcoholic – a real issue on health, labeling, taxation and any number of other levels. In the case of energy drinks, there really seems to be nothing there.

I suppose this manufactured hysteria shouldn’t strike me as too surprising in an era when policy debates on complex and technical issues like global warming and hydrofracking can be anything but science- or fact-based. This climate may have something to do with why certain

congressional leaders are continuing to demand action on energy drinks from the FDA despite the agency’s avowals that it’s amply investigated the drinks in the past and found nothing untoward about them.

So, if there’s really nothing there, will this uproar dissipate once the next “scandal” is uncovered and the media move on to that? Well, we can’t be sure of this.

If you recall the uproar over Four Loko and its rivals in the caffeinated, alcoholic beverage realm, no real evidence was ever produced that proved them to be more dangerous than, say, a Red Bull & Vodka or an Irish Coffee, and yet they’ve all either thrown in the towel or been reformulated without caffeine. But that was in a more highly scrutinized and regulated alcoholic sector where the government could easily bring enough pressure to bear to get the producers to “voluntarily” rejigger or withdraw their products. On the non-alcoholic energy side, I expect a lot of this will blow over soon enough.

That doesn’t mean there won’t be any repercussions. The biggest may be that you can pretty much rule out an acquisition of Monster by Coca-Cola or Rockstar by PepsiCo any time soon. With these conservatively managed companies already on the fence about deals because of the steep valuations attached to energy players (in Rockstar’s case, for a distant No. 3 player no less), the enhanced regulatory risk may scotch any such moves. On a routine earnings call during the furor, PepsiCo execs were suddenly talking about playing in energy “in a more responsible way” (apparently in reference to the 24-oz. cans of Mountain Dew containing 108 mg of caffeine that the company lately has been proffering as an energy drink alternative) and assuring investors they won’t devote any serious cash to acquisitions in the segment.

It’s also possible that the furor may offer an opportunity to purportedly “healthier” energy options – based on ingredients like, say, green tea and vitamin

18 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

B – that haven’t garnered much traction over the past decade. The adverse press about conventional energy drinks, whether warranted or not, may encourage some consumers to rethink their choices. My hunch, though, is that most consumers won’t make such fine distinctions; those who feel well-enough-served with the current choices in conventional energy drinks will stick with them and maybe a small number (or their moms!) will abandon the sector. The fact that energy drinks are still overwhelmingly sold through convenience stores would seem to support that view of the core consumer. You don’t find many health nuts cruising c-store aisles.

One more word on the adverse-incident reports. Though some media reports have tried to demonize brands sold as supplements rather than beverages, those companies actually must meet a higher standard in having to report these incidents. As for the reports themselves, they almost never contain any clear causal link to the product of the reporting company.

Just noodling around the FDA Web site, for instance, I encountered a report filed by a medical pump maker in May 2011 about a patient who experienced a hypoglycemia episode after being given “a candy bar and mountain dew.” The device apparently bleeped a few times, “the issue resolved” and “the patient has continued to use the pump without further reported incident.” That’s what most of these reports are like. Though somewhere down the line, who knows, this particular report may find itself enlisted as evidence that Mountain Dew is a cause of diabetes. For such a responsibly marketed brand, can you imagine anything more ridiculous than that?

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

Brewbound

Covering the business of craft

By Christopher Furnari

Three Tales from Three Cities Three major takeaways from recent beer events Forget about walking a straight line after four hours at a beer industry event. With acronyms like GABF, NBWA and BMI, just keeping the names of the numerous Fall events straight should be applauded.

In the past month, Brewbound.com travelled to Denver, San Diego and New York City for the Great American Beer Festival, the National Beer Wholesalers Association conference and the Beer Marketer’s INSIGHTS seminar - in effort to keep a finger on the pulse of the craft beer industry.

6,000 miles later, a few common themes emerged: CRAFT IS GETTING BIG – MAYBE TOO BIG At each event, mumblings of a craft shakeout – much like the one that occurred in the late 1990’s – could be overheard. Many veteran craft brewers expressed some trepidation at the sheer number of startups. In the halls of the Denver Convention center during the 2012 GABF, 578 breweries poured over 2,700 different styles of beers to 50,000 glassy-eyed consumers.

Take a quick peek at the most recent Brewers Association (BA) numbers and it’s easy to see why some brewers have concerns. BA director Paul Gatza said that 376 new breweries have sprouted up in the last 12 months, bringing the nation’s total to 2,263. What’s more, there are 1,381 in planning. That number has the industry buzzing – but it also has many asking themselves “When will the bubble burst?”

Lagunitas Founder Tony Magee who gave a rousing talk of his own at the November 12th BMI Seminar said the question isn’t “if ” but “when” the shakeout will occur.

“Something will happen, someday,” he said. “It’s like a forest fire; no one knows when it will start or where it will start, but everyone can be pretty sure there will be one.”

Much of the concern over a looming shakeout stems from what Beer Marketer’s INSIGHTS president Benj Steinman calls

‘SKUmageddon.’ He thinks that while the craft beer boom has contributed to a bounty of unique style innovations, some distributors and retailers will eventually begin to push back.

“There is just too much, coming too fast, for everyone to win,” he said. “There is just not enough space to withstand it all and it is going to be difficult for wholesalers and retailers to prioritize. Shelf space is finite.”

DISTRIBUTOR CONSOLIDATION PRESENTS SOME CHALLENGES Something else that is finite? The space on a distributor’s truck - which is becoming more valuable as wholesalers consolidate.

According to the Beer Institute, there were 168 fewer wholesalers in 2011 than in 2001.

That’s a concern for small brewers, who are already struggling to find routes to market.

“It is more important than ever to professionalize the front end of your brewery,” said Magee. “Distributors are totally motivated to work craft, now, but they have limited bandwidth and they will work best with those who are most prepared for game day.”

And game day is something that distributors will tell you many craft brewers simply aren’t ready for.

“They spend a lot of time tweaking and working on recipes, but how much time do they spend preparing to introduce a go-to market strategy with a distributor,” said Steve Zulanas, the vice president of sales & marketing for Allied Beverages.

Nevertheless, Magee contends that wholesalers are more motivated than ever to sell craft -- and they’re proving it with some serious investment in their own businesses. At least three large craft beer distributors said that in addition to investing in more personnel, increasing warehouse space and streamlining trucking efficiencies, they are also actively changing the ways in which craft reaches the retailer’s shelf. Those retailers claimed that adopting new go-to-market strategies are helping them balance an increasing number of stock-keeping units (SKUs).

20 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

In other words, distributors are betting on the future success of craft, and they’re not alone.

NEW RETAIL OPPORTUNITIES A host of new, non-traditional retailers are beginning to pay greater attention to craft as well.

Included on that growing list of new outlets adding craft to the mix are airlines, cruise ships, national restaurant chains and perhaps craft’s most promising new frontier – convenience stores. Many craft brewers at the GABF said they’re excited about the possibilities in those emerging channels.

“We get interest from places we never thought to look every day,” said Ted Whitney, Avery Brewing’s national sales director, citing large national restaurant chains, like T.G.I. Friday’s, that approached him about carrying the Avery brand.

But it’s craft’s emergence in the convenience channel that has many brewers excited about future sales. According to the National Association of Convenience Stores (NACS), sales of craft beer rose by 13.9 percent in C-Stores last year, and many believe that number will grow in 2013.

“Convenience stores are huge, that is where a huge portion of our beer is purchased actually,” said Rob Widmer, Widmer Brothers Brewing co-founder.

“We are always looking for a place, maybe non-traditionally that would be an opportunity for somebody to buy a beer.”

As part of the nationally distributed Craft Brew Alliance portfolio, Widmer is one of the few craft brands that have been able to make an early leap into the convenience channel – but more brewers are aiming for that channel, and more C-Stores are aware of the potential that craft holds for them.

Widmer is certainly optimistic and so is the Brewers Association. The non-profit trade organization that represents the interests of craft brewers said it hopes craft beer will make up 10 percent of the all-beer volume in the U.S. by 2017. Craft currently boasts 6 percent market share but in the last four years has added nearly 5 million new barrels.

All Flavors Zero Calorie

As an investment banker with Silverwood Partner working in the healthy/active living consumer packaged goods (CPG) space, I’ve often said that the joke about investors is true – they enter the room walking backwards with their eye on the exit. Perhaps entrepreneurs and founders should, as well. Unless you are building a company to comfortably live off of cash flows, you will need to sell your company at some time. In addition, your investors will also need liquidity at some point. For most companies, your options can include dividends from cash flow, being bought out, going public, or selling the company.

Most people I meet in the beverage space have started their company with one objective in mind: to grow enough to sell to a large strategic buyer like Coke or Pepsi – and for a lot of money.

Today, however, the role of the strategic is changing. These companies don’t only participate as exit options. More often, in fact, they are providing investment capital to help build companies. A sale is often considered as a potential result, but it can take a while.

Why is this happening?

In 2006, Glaceau (VitaminWater) had sales of approximately $355 million and in March 2007, the company was acquired by Coca-Cola from its founders and investors, including the Tata Group, for $4.1 billion in cash. Will that happen again? Monster Energy rumors aside, it’s not likely. Strategics still acquire, but their preferred method is evolving, and lately it seems to be through investing with a path to acquisition, sometimes called the “two-step” deal. It’s starting to become a well-troden road with increasing corporate traffic: Coke with Honest Tea and Zico, Pepsi with O.N.E., Hershey with mix1, Dean Foods with White Wave (Silk) and more.

Large food corporations like General Mills are doing this now too. Over the last two years, our direct conversations with strategics in regards to investing in earlier-stage food and beverage companies have increased dramatically. We frequently talk to and advise both companies looking to gain investment capital or sell, and also large corporations on their strategy and plans to set up official investment arms or incubators like Coca Cola’s Venturing and Emerging Brands (VEB) group.

We know that strategics want fast-growth, big-potential, on-trend brands to be a part of their larger brand portfolio. And they know that innovation happens quicker and can be more adept outside of the large strategic. But if there are increasing opportunities to get strategics involved early on, there are also new, important questions that complicate decision-making for entrepreneurs and investors.

22 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

61/070,381, 61/132,424, 12/383,244, PCT/US2009/001775, 61/070,381, 61/132,424, 2009226019, PCT/US2009/001775, PI 0909187-4, PCT/US2009/001775, 2,718,231, PCT/US2009/001775, 200980118258.9, PCT/US2009/001775, CN102036572A, PCT/US2009/001775, 09722985.0, 2268160, 11102843.2, PCTUS2009/001775, 1148648A, 208133, PCT/US2009/001775, 7031/DELNP/2010, PCT/US2009/001775, MX/a/2010/010050, PCT/US2009/001775, WO2009/117152, 61/070,392, 61/132,409, 12/383,241, 2009-0297491-A1, PCT/US2009/001774, WO 2009/117151, PI 0909185-8, PCT/US2009/001774, 2,715,018, PCT/US2009/001774, 200980118257.4, PCT/US2009/001774, CN102036661A, 2268274, PCT/US2009/001774, 09723157.5, 2268274, PCT/US2009/001774, 11102893.1, PCT/US2009/001774,7340/DELNP/2010, PCT/US2009/001774, MX/a/2010/010214, PCT/US2009/001774, 61/132,953, 12/456,926, US-2009-0317532-A1,PCT/US2009/003761, 2010/008475, PCT/US2009/003761, 2100628.6, 507/DELNP/2011, PCT/US2009/003761, 61/398,192, 13/134,927,US-2012-0016026, PCT/US2011/001099, WO 2011/162802, 61/340,944, 13/065,510, US, 2011-0236364, PCT/US2011/00538, 61/340,944,WO2011/119228, 61/633,431

VIRUN and OmegaH2O are registered trademarks of VIRUN, Inc. Following but not-limited-to Patents and Patents-Pending apply:

VIRUN

TWO-STEP STRATEGIC BEVERAGE DEALS

TARGET

STRATEGIC

OUTCOME

Honest Tea

Coca Cola (VEB)

Investment & Acquisition

Bossa Nova

Coca Cola

Investment; Decided to not acquire

Sweet Leaf

Nestle Waters

Investment & Acquisition

Zico

Coco Cola (VEB)

Investment & Acquisition

O.N.E.

Pepsi Co

Investments & Majority Acquisition

mix1

Hershey

Investment & Acquisition

White Wave (Silk)

Dean Foods

Investment & Acquisition

We consistently get these questions from beverage entrepreneurs about strategics: • When should I talk to a strategic?

• Am I too small and too early?

• Can I trust the strategic?

• Should I talk to just venture capital firms (VCs) when I want to raise capital, or strategics as well? And which do I talk to first?

• What information do I have to share before the strategic will sign a non-disclosure agreement (NDA)?

• Should I be worried about talking to a strategic – won’t they just learn from me and do what I am doing on their own?

• If I do a deal with a strategic, how do I structure it? How do I protect my company? What terms can I expect? What can I push for?

These are all complicated questions and ones that we deal with on a daily basis on behalf of our clients. But they fall into two main groups: (1) When to talk with strategics; and (2) What can and should a deal with a strategic look like.

WHEN TO TALK WITH STRATEGICS We recently embarked on a capital raise for a client where the client initially believed they were too small to talk with strategics.

As we talk with the likes of Coke, Pepsi and Nestle on a near-daily basis, we knew otherwise. Sure enough, more than one leading strategic demonstrated strong, genuine interest in our client.

The question of company size and stage of development needed to have reached should be in order to talk with strategics will vary somewhat with the strategic you’re talking about; in general, as little as $5 million in sales (trailing-12 month or genuine run-rate) can garner true interest. And if the ramp to $5 million happens quickly, talking with investors on that ride before $5 million is reached can be a good idea (and

can even lead to an early term sheet).

But how that $5 million sales figure was achieved is also critical: sell-in vs. sellthrough, sell-through velocities, distribution white space, success in natural vs. conventional, brand extendibility… in short – do you have a convincing story to move from $5 million to $300 million, $500 million and potentially $1 billion in sales? (For more information, see my previous articles “Numbers Rule” from the Feb. 2012 BevNET Magazine and “Capital Market Success” from Sept. 2011) Your own objectives also matter. Are you talking to a strategic because you want to get on that path to sell today (and/ or with that specific strategic investor) or do you just want to assess longer-term interest? Either way, the dialogue itself can lead to valuable learning and create positive external results. For example, talking to strategics can enhance opportunities with raising institutional capital.

Earlier this year, we identified the hole in the market for a client’s product with strategics and contacted the most likely eventual buyer. Our thesis that the strategic would like and eventually want this brand proved true, even though our client was much smaller than most companies the strategic would normally think about investing. The interest became real: We exchanged NDAs and held five in-person meetings. We were told exactly what we needed to create for them to buy, and this interest helped garner interest from financial investors. The result: Close to $5 million raised and a company on its way with a strong financial partner, lots of free and valuable advice from the strategic and a long-term buyer keeping tabs on progress and perhaps ready to pounce when the timing and size are right.

As strategics are willing to come in

24 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

early,and provide valuable feedback to help prime the pump for longer-term interest, we now often include contacting a carefully-selected group of strategics with a carefully-crafted message as a part of our capital-raising process for clients.

WHAT SHOULD A DEAL LOOK LIKE? Remember, though: a strategic will want to invest in a company because they hope to eventually buy all of it. They don’t want to invest, add value and then wake up to read the Wall Street Journal that you’ve sold to someone else.

The issue here becomes how to creatively structure rights for a strategic to buy you that do not overly hurt the company and its shareholders. But how do you, as the company, structure such a deal to provide the best eventual outcome for you and your shareholders? You are setting up a deal that may have a great outcome, but if it’s structured poorly, you may be doing nothing more than setting up a relatively “free look” at your company for the strategic, with little down-side for them – and potential risk for you.

Face it, when you sign a deal with one strategic and it is public (or becomes generally known to ‘those that know’) you are also likely limiting your exit pool. If you do a deal with BigCo A and they have a right of first refusal (i.e. they can match any deal that another company puts forward to buy your company), why would BigCo B spend time to conduct due diligence on your company and put an offer forward?

All they are doing is setting the price and market for BigCo A. In this case, you have limited your options – and, likely, your shareholder returns as well. As with any deal, the terms matter. Some of the more important terms and issues to consider when doing a deal with a strategic include:

Approval Rights (Negative Covenants) and Governance: • Does the strategic as an investor get the right to block certain items, such as the company raising additional capital?

• Will the terms and structure of your deal potentially inhibit or help your ability to raise capital from outside sources in the future?

• Can you take on debt above a certain amount or change the strategic direction of the business?

• Will the rights granted to the strategic investor align management and the investor on long-term goals?

• Will the strategic get a board seat? How many seats? Who from the strategic will be on the board? What if the person from the strategic who did the deal leaves the company or changes roles? How can that impact you?

Value Add: • Is the strategic bringing in money or more than just money?

• What will they assist with? Distribution?

R&D? Marketing? COGS reductions?

Supply-chain?

• How will you ensure that the valueadd occurs?

• What does the strategic get for the value add?

The Path to (and rights regarding) Acquisition: • Does the strategic get a Right of First Refusal? If not, what other means can you employ to grant this “need” to the strategic?

• How do the rights and deal structure impact your goal to maximize the exit value while the strategic wants to minimize it?

• How does the acquisition work?

• Are the “triggers” which turn on the acquisition time-based, financial-based or a combination?

• If certain triggers or milestones are met, does the mechanism involve a Call (the strategic “calls” the remaining stock to acquire) or a Put (the company “puts” the rest of the stock to the strategic)?

• What if there is no acquisition due to milestones not met or other issues? How do you disentangle the deal, the ownership, any value add (distribution) and move forward with as little damage as possible?

Each of these questions and issues aforementioned are probably each worth their own article and require good thought, preparation and careful negotiations. Our advice is simple: get a good advisor and deal counsel – in other words, have your own deal team.

These questions and issues are complex, but when the rewards can be immense, they should be. The opportunities have never been better for younger and smaller food and beverage companies to engage and partner with strategic investors and buyers. When we run a process (to either raise capital or sell), we thoroughly examine both potential strategics and financials (private equity).

Our relationships with both help the process and open doors. When you think about your company’s longer-term (and near-term) options, don’t be too quick to discount or eliminate the strategic path – if you do so, you may be eliminating the best potential option, limiting competition for your deal and potentially reducing your longer-term options.

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NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 25

EMAN

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A Bump in the Numbers – From Wal-Mart For those of you who dream nightly about this kind of thing – and yes, the BevNET crew is part of that group, don’t you doubt it – we recently got some spectacular news.

Symphony IRI Group, the company that provides our awesome brand sales data, has updated its information to include Wal-Mart.

This change in sales data offers us, this issue only, an opportunity to at least infer, by comparing 52-week periods – and acknowledging that they cover two 52-week periods separated by a 28-day month – the overall impact of Wal-Mart sales in many beverage categories. The new information also includes a few other, smaller channels, including military commissaries and what the company calls “select club and dollar retail chains,” which can affect some of the results.

It’s also worth noting that Symphony IRI is largely chain-focused – it’s hard for the organization to pick up many natural, specialty, and other incubation channels where so many smaller beverage companies debut or build share, or the up-and-down-thestreet deli, mom-and-pop convenience, foodservice, or other retailers where local brands can build a presence. Whole Foods is included, but extrapolations from the small sample of Whole Foods’ 300 or so U.S. stores covered means phenomena growing in a few of that core retailers’ stores can escape the survey’s notice.

26 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

Finally, one area where Symphony IRI has an admitted point of confusion is its occasional inconsistency in rolling various SKUs into brand listings. Thus for some companies, an entire brand family will be listed in sales totals, while for others, SKUs have to be rolled together to give a complete picture.

That doesn’t change regardless of outlet, however.

Those caveats aside, it’s an exciting development: for retailers, distributors, and the brands themselves, the new data set offers the ability to provide a more complete picture of their strength in key mainstream channels. But it also provides us this one-time opportunity to comparatively demonstrate the importance of Wal-Mart as a sales outlet for many leading brands.

Some channels are more strongly affected than others. We see, for example, that 5-Hour Energy sells nearly $200 million in product via Wal-Mart and the other included channels, comprising about 20 percent to its annual sales, and about 20 percent to the category overall. (It should be noted that 5-Hour Energy also has a long history of being popular in military commissaries).

The more diverse nature of the energy drink category leads to less of a bump in Wal-Mart, however: overall sales are about $8.1 billion in the channels that include the superstore, and $7.3 billion without it. Refrigerated juice sales show how much of an influence the company has had on that traditional grocery category, as nearly $1.5 billion more sales are added to that $ 6.5 billion category when Wal-Mart is rolled in – fully 30 percent more than sales without it. Bottled juices increase even more: from $5 billion to $7 billion, with shelf-stable staples like apple juice and cranberry juice accounting for nearly $1 billion in that difference alone.

This leads to some extreme comparisons: almost half of Sunny D’s sales appear to come from Wal-Mart (although the addition of dollar stores to the count may play a role with that brand as well), $324 million as opposed to $188 million. Less likely to be found, however, are entrepreneurial brands like Good Belly, or even Coke-owned Odwalla Protein Monster, both of which show roughly equal sales even with the additional channels.

Another big Wal-Mart category is the sports drink, with $5.6 billion in sales including the extra channels, as opposed to $4.3 without them. Both Gatorade and Powerade seem to derive about 17-20 percent of their sales from Wal-Mart and club channels.

The Pepsi/Starbucks partnership also fares well in Wal-Mart and club channels, with Frappuccino sales rising from $587 million to $707 million when those channels are added in, while Double-

shot adds a more modest $26 million to the $286 million it does without the new channels.

The most extreme bump, however, indicates that when Americans are thirsty for bottled water, they head to Wal-Mart: the extra channels add another $3 billion in sales, from $8.3 to $11.3 billion – about 35 percent more than without the megastore. Of course, the typical thinking would be that consumers who are buying bottled water in Wal-Mart would seem to favor value-priced offerings – and they do: Nestle Pure Life, a low-cost brand, sells nearly $1 billion in all channels ($932 million) but less than half of that ($408 million) came from the older Symphony/IRI channels. Another brand that is fully taking advantage of the channel is Sparkling Ice: the red-hot Talking Rain product is selling more than 1/3 of its product through Wal-Mart and the other new channels: an additional $43 million to a topline of $82 million from the month before. Of course, with Sparkling Ice also accelerating nearly 400 percent year-over-year, a month can make a big difference. Still, if you’re starting to move a lot of product, and you’ve got the right price and a big-enough name, Wal-Mart truly is your one-stop shop… for volume.

In the pages that follow, we’ll use the numbers as a jumping-off point to frame much of what has happened in the industry this year.

Key Innovation Categories RTD TEA AND COFFEE There were several brands that could qualify for “MVTea” this year; Peace Tea, Tradewinds, and AriZona Arnold Palmer lines showed significant growth off healthy initial bases. Gold Peak similarly continued to be a surprisingly strong performer for the Coca-Cola Co., both in large and small formats. By the numbers, it appears to be closing in on $250 million in sales in tracked channels between refrigerated and shelf-stable iterations.

On the organic front, Sweet Leaf and Honest both continued to grow at a healthy clip in mainstream channels, although they remain mired at around $30 million. Their ability to maintain share in independent natural and specialty markets are likely to determine how their acquirers view their investment this year, although both companies have other positives as well. Sweet Leaf is actually being outsold by its stable-mate, Tradewinds, while Honest’s Honest Kids and Honest Ade lines are also performing well for the brand.

NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 27

Smaller tea companies continued to experiment with blends as well; white tea innovator Inko’s moved into Red, Green and White varieties, while half-and-half ruled the land, as Honest, Cabana, Hubert’s and many, many others signed up for the latest version of Arnie’s Army.

TEA Brand

Dollar Sales

Change vs. year earlier

AriZona

$690,579,500

-0.39%

Lipton

$373,188,400

-5.61%

Lipton Brisk Tea

$312,992,300

-2.33%

Snapple

$213,291,800

-2.19%

Diet Snapple

$192,468,800

13.36%

AriZona Arnold Palmer

$188,452,400

22.31%

Lipton Pureleaf

$158,457,500

-0.66%

Diet Lipton

$146,857,300

13.98%

Gold Peak

$112,678,400

27.11%

Nestea

$101,230,300

-12.23%

Peace Tea

$72,445,140

36.08%

Private Label

$70,866,150

-6.83%

Arnold Palmer Lite Half&Half

$51,035,780

19.18%

Tradewinds

$36,131,010

66.03%

AriZona RX

$34,315,970

11.10%

SOURCE: Symphony/IRI Total U.S. Multi-Outlet w/ C-Store (Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) 52 Weeks through 10/7/12

With coffee, the category remains the playground of the North American Coffee Partnership, which combines the forces of PepsiCo and Starbuck’s into $1 billion worth of product. Coke entry Illy Issimo had a good year – one that likely is undercounted given its growth in smaller accounts supplied by incubating distributor Big Geyser – and so did Marley’s One Drop, which has redesigned cans and a new marketing focus behind the charged-up brand.

On the innovation front, a large crop of cold-brewed coffee brands are beginning to appear, including New Beverage Showdown participants Grady’s Cold Brew, Gorilla Cold Brew, Stumptown, and many others belonging to the so-called “Third Wave” of coffee companies. They may be uncounted, but they are not unnoticed.

Tea also became the proving ground for one of the fastestgrowing functional product types, as Marley’s Mellow Mood tea began to take hold in convenience and supermarket chain accounts. As of mid-year, the brand was at about $7.5 million in sales, with more outlets coming on line and a growth rate of more than 600 percent.

On the kombucha side, GTs and GTs Synergy showed $40 million in revenue – a number that might indicate a small tip of the iceberg of the kind of sales it is producing in natural chan-

28 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

CAPPUCINO/ICED COFFEE Brand

Dollar Sales

Change vs. year earlier

Frappuccino

$706,971,900

10.95%

Doubleshot

$312,869,100

12.58%

Frappuccino Light

$27,781,300

2.74%

Starbucks Doubleshot

$20,884,670

N/A

Seattles Best

$9,730,553

-50.36%

Private Label

$9,277,086

15.80%

Illy Issimo

$5,536,133

36.32%

Doubleshot Light

$4,891,901

6.60%

Starbucks Doubleshot Light

$4,094,326

-15.00%

Marleys One Drop

$1,012,767

660.93%

GTs STRONG CROSS-CATEGORY GROWTH Brand

GTS Kombucha Synergy

Dollar Sales

Change vs. year earlier

$3,366,332

78.72%

$11,058,040

62.78%

$15,545,680

143.44%

RFG CRANBERRY COCKTAIL/DRINK GTS Kombucha Synergy RFG FRUIT DRINK GTS Kombucha Synergy RFG TEAS SOURCE: Symphony/IRI Total U.S. Multi-Outlet w/ C-Store (Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) 52 Weeks through 10/7/12

THISIS LOVE

To all our partners around the world, we give thanks for making 2012 a great year for Marley Beverages. We look forward to a successful 2013.

marleysmellowmood.com

On e love.

nels, but a telling one nevertheless. Kombucha, coconut water, certain kinds of tea, coffee, and juice, are the products that have grown in natural and specialty channels and are now rocketing into mainstream. Their growth rates reflect that – all are up more than 50 percent year-over-year, and should continue to increase share in the rankings as they gain more ground.

ENERGY DRINKS Here’s a category that isn’t in need of recovery: Energy Drinks.

They continue to grow at a strong – 17.5 percent – clip in tracked channels. But that growth was, ironically, goosed by “Recovery,” a relatively new set of extensions launched by Monster and Rockstar in the past two years. Together, the two brands have added nearly $500 million in innovation to a category that had not existed.

Innovation also seems to have taken hold at Red Bull, which added Total Zero to its line this year and three flavored line extensions that will launch in the spring. The company, a $3.25 billion property that continues to grow at a healthy clip, remains the category’s sales leader.

ENERGY DRINKS Brand

ENERGY SHOTS Dollar Sales

Change vs. year earlier

Brand

Dollar Sales

Change vs. year earlier

Red Bull

$3,157,804,000

15.19%

5 Hour Energy

Monster

$1,854,700,000

15.00%

Stacker 2 6 Hour Power

$22,599,270

-19.39%

Monster

$346,674,000

259.14%

Private Label

$19,743,230

45.41%

Rockstar

$320,354,800

14.71%

Stacker 2 Xtra

$19,027,690

22.57%

NOS

$262,862,700

10.32%

Worx

$13,645,400

31.65%

Java Monster

$243,028,100

25.04%

Stacker 2

$8,821,549

86.54%

Monster Mega

$229,653,100

21.32%

E6

$5,328,865

38.09%

AMP

$186,241,200

5.06%

VPX Redline Power Rush

$3,469,177

2.96%

Rockstar Sugar Free

$145,074,400

1.90%

Tweaker

$3,209,125

167.12%

Rockstar Recovery

$143,037,100

8.96%

Spike Double Shot

$3,142,215

-10.30%

Red Bull Total Zero

$108,076,700

N/A

Full Throttle

$106,547,800

0.23%

Rockstar Punched

$73,018,980

10.07%

Rockstar Zero Carb

$67,501,860

-1.34%

Monster Khaos

$67,182,890

-5.77%

SOURCE: Symphony/IRI Total U.S. Multi-Outlet w/ C-Store (Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) 52 Weeks through 10/7/12

Negative publicity has begun to drag a bit on the share price of Monster, the only “pure play” in the energy drink business, but scrutiny from politicians and regulatory agencies hasn’t been able to slow the company’s growth. The edgy nature of the category is also shown in the growth of Xyience, which continues to push forward at a greater than 20 percent clip – and that’s not tracking sales through key channels like GNC, gyms, and other outlets.

30 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

$1,190,657,000

3.15%

SOURCE: Symphony/IRI Total U.S. Multi-Outlet w/ C-Store (Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) 52 Weeks through 10/7/12

The soda giants remain in the mix, albeit more through distribution than through organic brand growth. Still, NOS and AMP remain popular choices among consumers, and even Full Throttle broke its losing streak when it came to dollar sales.

Nevertheless, growth in Energy Drinks – and Energy Shots – belongs almost entirely to the big independent brands, including 5-Hour Energy. With regulatory action perhaps scaring strategic investors away from potential deals, it seems like those brands could remain independent for the foreseeable future, as well.

COCONUT WATER One could spend all day scouring scan data for information on the coconut water category and still fail to find numbers that accurately represent the growth of the product – mostly because,

PA I D A D V E R T I S E M E N T

COCONUT WATER – CROSS CATEGORY ROUNDUP Brand

Dollar Sales

Change vs. year earlier

Vita Coco Aseptic Juices

$84,758,220

140.74%

Zico Aseptic Juices

$10,523,350

54.04%

Zico Bottle Fruit Juice Blend

$8,109,895

72.18%

Zico Bottled Other Fruit Juice

$9,621,314

54.62%

SOURCE: Symphony/IRI Total U.S. Multi-Outlet w/ C-Store (Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) 52 Weeks through 10/7/12

Choline.

Schmoline.

The time has come for the truth concerning choline and brain metabolism. People seem to think all choline sources are the same. That is, they think all choline is effective in elevating acetylcholine – the vital neurotransmitter responsible for

for many brands, a significant percentage of their sales remain in natural, specialty and small-format channels. Vita Coco, for example, still runs about 20 percent of its volume in natural.

But there’s no denying that the main brands – Zico, ONE, and Vita Coco, have made inroads when it comes to mainstream channels (although tracked channels before and after the Symphony IRI switch show that coconut water still hasn’t erupted in Wal-Mart).

BevNET scoured the scan data so you don’t have to, digging through Aseptic Juices (where a lot of the category tends to hang out due to its Tetra-Pak package) as well as a variety of juice blends and bottles that are now Zico’s by right of bottled concentrate format.

In these channels, here are the numbers: Vita Coco, $84.8 million; O.N.E., $26.6 million; Zico (rolling all formats together), $28.2 million. Naked is also at $10.1 million in its aseptic package. What does that say? Mostly that the covered channels sold nearly $150 million in coconut water. It’s an interesting snapshot – a category grounded in natural, but one that is moving authoritatively into mainstream channels in a short period of time. If the growth rate remains as strong (all three brands were on pace to more than double year-overyear) and it continues to migrate, the category could become significantly larger in short order -- although it might still be hard to track.

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Innovation remained a strong current in the coconut water category, as Coco Cafe moved into Target and Zico began to steadily roll out earthier products, adding a Latte flavor to buttress its chocolate line. Meanwhile, other promising juice brands moved into the coconut space as well – Purity Organic, Zola, and Aloe Gloe, to name a few. On the incubation channel side, Harmless Harvest became the darling of Whole Foods, creating a higher level of taste and purity for the others to shoot for. Coconut water also migrated as an ingredient into products ranging from Body Armor and Greater Than to Odwalla and Naked smoothies and juice blends.

SPORTS DRINKS Powerade ION4 is making strides toward $1 billion in sales, but it’s hard to judge if that’s really affecting Gatorade, as the unit price between the two is more than 60 cents in Gatorade’s favor, $1.83 to $1.19. That doesn’t mean that Gatorade has stopped growing, either, as it has a lot of SKUs that are showing above 20 percent volume leaps – a sign that innovation is starting to take hold as the brand re-tools.

SPORTS DRINKS Brand

Dollar Sales

Change vs. year earlier

in core mainstream channels. This time next year could make for an interesting set of findings concerning that product line.

Sports drinks are now a dual concept, overlapping with the protein/meal replacement category, which is also listed here for the very first time. A look at those numbers reveals the underlying strength of the product that built the category – Muscle Milk. While Ensure and Pedia Sure are largely clinical products, Muscle Milk, which has about 10 percent of the category, is the product that remade the idea of protein drink as a post-workout product to pack on the pounds. One can see the potential for growth in protein-forward brands – all are up in the high double digits. With Coke now marketing Core Power, expect a potent new entrant this year, as well.

WEIGHT CONTROL/NUTRITIONALS Brand

Dollar Sales

Change vs. year earlier

Ensure

$319,774,000

19.26%

Muscle Milk

$247,689,800

32.07%

Pedia Sure

$218,499,200

12.56%

Private Label

$213,722,200

2.05%

Boost

$172,962,300

24.53%

Slim Fast 321 Plan

$143,449,700

350.81%

$2,745,852,000

2.11%

Ensure Plus

$137,447,700

37.55%

Powerade ION4

$867,312,500

4.99%

Body Fortress Whey Protein

$96,379,460

23.25%

Gatorade G2 Perform

$521,455,500

-7.42%

Glucerna

$90,995,540

36.48%

Gatorade

$381,526,300

25.93%

Kelloggs Special K

$87,796,100

21.05%

Powerade Zero ION4

$227,930,000

19.70%

Gatorade G2

$140,133,700

7.37%

Gatorade Frost

$107,252,600

1.57%

Gatorade Cool Blue

$68,078,230

20.65%

Gatorade Fierce

$62,086,820

33.63%

Gatorade All Stars

$55,676,650

2.72%

Gatorade Perform

SOURCE: Symphony/IRI Total U.S. Multi-Outlet w/ C-Store (Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) 52 Weeks through 10/7/12

This is also a spot where it’s interesting to think about the growth of coconut water; Vita Coco would immediately be the third-largest brand if it were classified as part of the Sports Drink category, although it would still be about one-tenth the size of ION4.

The category also gives a glimpse of the fast growth of another Starbucks line, Refreshers, which are coming in at about $32 million in sales – and again, that’s not counting incubation channels.

One brand that doesn’t show up on the sports drink report yet – but should next year, given its growth rate – is Body Armor, which hadn’t landed Wal-Mart as of October but still showed about $3.5 million in sales with a strong growth rate for the 52 weeks previous to Sept. 9. With little up-and-down-the-street volume added into the total, either, it’s actually a mark of no little success that the brand has been able to activate enough chain accounts to register

32 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

SOURCE: Symphony/IRI Total U.S. Multi-Outlet w/ C-Store (Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) 52 Weeks through 10/7/12

FUNCTIONAL WATER The Symphony IRI numbers provide a look at the two major functional water brands, vitaminwater and Sobe Lifewater, that define the category. And the takeaway is that the brands are moving in different directions: vitaminwater and vitaminwater zero have sold near $1 billion in the past 52 weeks, while Lifewater and Lifewater Zero have about one-quarter of that volume at a lower price. Zero is a little less than 30 percent of vitaminwater’s sales, although its growth is starting to equalize with the category overall.

Right now, the best-moving parts of the functional water category are moving at about the same rate as the rest of the PET/Still water FUNCTIONAL WATER Brand

Dollar Sales

Change vs. year earlier

Glaceau Vitaminwater

$697,226,900

(6.82)

Glaceau Vitaminwater Zero

$256,212,300

4.70

SoBe Life Water

$212,085,000

(4.20)

SOURCE: Symphony/IRI Total U.S. Multi-Outlet w/ C-Store (Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) 52 Weeks through 10/7/12

PA I D A D V E R T I S E M E N T

category – that is, slow and steady. Most of the “me-too” entries have subsided, leaving just a couple of brands in its wake – which means that the big strategic investors might have won this round.

JUICES A spin through the juice numbers reveals clues to the fates of all manner of entrepreneurial beverage companies, but as with other situations in which natural and specialty channels also play key roles, you have to do some hunting and gathering to determine the state of things.

Ranging across juice subcategories, V8’s V Fusion and V8 Splash lines total $451 million – a strong complement to its original vegetable juice products, which have seen declining revenues in light of new veggie juice alternatives.

In the higher end lines, Odwalla had $142 million in sales of combined listed products, Naked $369 million and Bolthouse $281 million. Rolling Bolthouse in with Campbell’s V8 products makes the erstwhile soup company a pretty big player in beverages, indeed. Of course, the Naked/Odwalla/Bolthouse $800 million in sales is only the part of the category that’s visible above water – again, there may be twice that level of revenue – when natural channels and foodservice are combined into the total.

The new data also gives a lot of insight into kids beverages, showing InZone’s Tummy Tickler/BellyWasher products at near $100 million in sales. BYB Brands’ Tum-E Yummies were at about $80 million, and both have forward momentum outpacing their native categories.

And that goes double for the high-end juices. What’s interesting here isn’t so much the exact number, but the momentum: Sambazon, Odwalla, Naked, Bolthouse, are all outpacing their categories; in the case of products like juice smoothies, they are setting the pace.

Juice smoothies and sparkling and mineral waters, at 33 percent volume increase apiece, are by far the fastest-growing of any category of product with $500 million or more in sales. Natural’s influence on mainstream can also be found in categories like dairy substitutes, which grew 15 percent in the past year, to almost $1 billion as a category, buoyed in great part by recently spun-off SILK, as well as Lifeway’s Kefir products.

That’s indicative of which products are ultimately forming inroads to mainstream grocery. Where they grow, more innovation is sure to follow.

NAKED/ODWALLA/BOLTHOUSE – BUILDING THE HIGH END (pulled across several bev. categories) Brand

Dollar Sales

Odwalla

$143,558,505

Naked

$364,127,494

Bolthouse Farms

$280,498,173

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ALCOHOL MARKETERS

FILLING THEIR POUCHES BY: RAY LATIF

Call it the next stage in product evolution for those the kids who just couldn’t get enough Capri Sun. Long the signature package of the popular kids’ juice brand, pouches are being hailed as a simple, convenient, and, in the past year, extremely profitable package for marketers of malternatives and winebased cocktails.

Within the past two years, alcoholic beverage companies have introduced a range of new pouch-packaged cocktails and frozen drinks, promoting them as a way to enjoy the beverages without the effort and occasional mess associated with their preparation.

The new package has caught on quickly: according to recent data from the consumer research firm A.C. Nielsen, sales of pouch-packaged alcoholic beverages leaped from $12 million in sales for the 12-month period ending in August, 2010 to nearly $200 million for the 12 month period ending on August 18, 2012.

Incredibly, the jaw-dropping increase may be only the start of the trend.

Danny Brager, the vice president of Beverage/Alcohol Practice for Nielsen, indicated that, based on recent research, sales of alcoholic drink pouches are likely

volume comes from buyers new to alcoto remain on an upward trajectory. Brager holic beverages, while about 50 percent of cited rising consumer trial of the products volume comes from consumers purchasas a key factor in rising sales, noting that ing pouches in addition to other adult 12 percent of alcoholic-beverage buyers beverage categories.” purchased a pouch product in the last And who exactly are these consumyear, nearly twice the number of people ers? Compared to the typical alcoholic who bought one in the previous year. beverage conBrager noted sumer, alcoholic that both consum“Research indicates that about drink pouches ers and retailers ten percent of the pouch sales “seem to appeal have responded volume comes from buyers new to 35-54 year positively to the to alcoholic beverages, while olds, key Gen X convenience of the about 50 percent of volume comes from consumers purchasand Baby Boomer package, which is ing pouches in addition to other age groups,” most often used adult beverage categories.” according to for single-serve Nielsen consumer drinks and sold in research. Nielsen a variety of retail also found that African-Americans and channels, including drug, grocery, and women purchase pouch products in convenience stores. Moreover, Nielsen “above-average quantities.” consumer research found that pouch The company is now tracking nearly products, which often have a lower price 100 alcoholic pouch products, and point than most beer and wine counterparts, are supplementing current alcoholic the number is growing. The increasing popularity of pouches has attracted the beverage sales, as opposed to taking marattention of a growing number of beverket share from traditional segments. age marketers and conglomerates. Many “[Pouches] may be the catalyst for new of these companies have begun adding drinking occasions, including on-the-go pouch package extensions to their current events,” said Brager. “Research indicates flavored malt beverage lines. They are also that about ten percent of the pouch sales

36 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

using the packaging format to develop new and innovative products.

Enlisting two of its best known trademarks, Diageo recently launched a new line of naturally-flavored, frozen malt beverage pouches for its Parrot Bay rum and Smirnoff vodka brands. The products are packaged in single-serve 10 oz. pouches, contain 5 percent alcohol by volume, and have a suggested retail price of $1.99.

Each line comes in three varieties: Parrot Bay pouches feature a trio of island-inspired rum drinks, including two daiquiris and a pina colada, and the Smirnoff pouches offer a mix of vodka with lemonade and limeade flavors. Diageo, which introduced the drinks in June, positioned the drinks as alternatives to home-based, labor-intensive frozen cocktails.

“Frozen cocktails are a fun component to… celebrations, but the preparation and time needed to create these drinks sometimes takes away from the celebration itself,” said Patrick Hughes, the marketing director for progressive adult beverages, DIAGEO - Guinness USA. Diageo may be the largest beverage player getting into the pouch business, but it is not alone. Building upon the success of its Seagram’s Escapes flavored malt

beverage line, North American Breweries (NAB) debuted Seagram’s Escapes Frozen Flavors, a line of single-serve ready-to-drink frozen flavored malt beverages earlier this year. Packaged in 10 oz. pouches, the line comes in Margarita, Strawberry Daiquiri, Piña Colada and

Sangria flavors, and each product has a suggested retail price of $1.99. NAB will be adding two new flavors to the line, Blue Hawaiian and Jamaican Me Happy, in March 2013.

The pouch craze has also opened up new opportunities for start-ups and smaller drink companies to get into the malternative and frozen cocktail business.

Last year, Austin, TX-based DGI Beverage introduced BLACK iGUANA Margaritas & Cocktails, a line of wine-based RTD cocktails. The 10 oz. drinks have soared by 417 percent in revenue sales in the last year, according to the company, which recently launched a multi-platform social media campaign.

There may be no bigger indication of the draw of alcoholic pouch drinks than the blazing growth of Cordina. Launched in New Orleans in 2009, the frozen cocktail company sold $150,000 worth of its alcoholic pouches in its first 12 months. Just two years later, Cordina had annual revenue of over $4 million. Today, five varieties of the drinks are sold at Walgreen’s, Wal-Mart, and Winn-Dixie stores in 45 states for a suggested retail price of $1.99 per pouch.

Further growth? Looks like it’s in the bag – or the pouch.

NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 37

BRAND NEWS

Malternatives

Phusion Projects, LLC has announced two new Four Loko flavors, Coco Loko and Peach, and a new Four Loko XXX Limited Edition flavor, Strawberry Lemonade, which replaces the Four Loko XXX Limited Edition flavor, Blueberry Lemonade. Each flavor contains 12 percent ABV and is packaged in a 23.5 oz. can.

launched a line of frozen wine cocktails in single-serve 10 oz. pouches. The flavors include: Blackberry Merlot, White Pear Pinot Grigio and Strawberry White Zinfandel.

Arbor Mist Frozen Wine Cocktails require no mixing of ingredients, ice or blenders – just freeze, squeeze and enjoy.

Phusion’s Island Squeeze is a new line of frozen pouch cocktails. The malt-based, progressive adult beverage comes in four flavors: Pink Lemonade Light, Pina Colada, Margarita, and Strawberry Daiquiri. Island Squeeze Pink Lemonade Light has nearly one-third the calories of other pouches. Individually packaged in 10 oz. single serve pouches, Island Squeeze contains 6 percent alcohol by volume and can be frozen and squeezed into a glass, or served over ice.

Phusion has also launched Moskato Life, a malt-based, progressive adult beverage that drinks like a Moscato wine. The beverage is lightly carbonated and contains 6 percent alcohol by volume. Moskato Life comes in two flavors - Moscato and Rose – and is packaged in a 750 mL bottle.

Mike’s Hard Lemonade, Mike’s Hard Black Cherry Lemonade and Mike’s Classic Margarita are all now available in a 12-pack of 12 oz. cans. Mike’s Winter Grab Bag, a limitededition variety pack, is a 12-pack of 11.2 oz glass bottles and includes Mike’s Cranberry Lemonade, winter seasonal Mike’s Winter Black Berry, and limited edition flavor Mike’s Hard Chocolate Cherry.

Diageo has launched a new line of frozen malt beverage pouches for its Parrot Bay and Smirnoff brands. The Parrot Bay pouches come in three flavors: Frozen Strawberry Daiquiri, Frozen Mango Daiquiri and Frozen Pina Colada. The Smirnoff pouches also come in three flavors: Frozen Strawberry Lemonade, Frozen Blue Raspberry Lemonade and Frozen Cherry Limeade. Both Parrot Bay and Smirnoff Frozen Pouches are naturally-flavored and contain 5 percent alcohol by volume. The products are packaged in single 10 oz. pouches.

Diageo’s Smirnoff brand has added Smirnoff Signature Screwdriver and Smirnoff Ice Tropical Fruit to its line of Premium Flavored Malt Beverages. Smirnoff Signature Screwdriver contains 5.8 percent alcohol-by-volume (ABV) while Smirnoff Ice Tropical Fruit contains 4.5 percent ABV. Each new product is packaged in 11.2 oz. bottles and is available in 6-packs.

Diageo also partnered with legendary rock band ZZ Top on a new creative campaign with Jeremiah Weed Premium Flavored Malt Beverages. The summer-long campaign leveraged the social media communities of both ZZ Top and Jeremiah Weed to generate fan awareness and rewarded engaged fans with gear giveaways on Facebook, Twitter, and other social media sites throughout the season.

Constellation Brands. Arbor Mist has 38 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

Boston Beer Co. has introduced a new mango flavor for its Twisted Tea line. The beverage contains 5 percent alcohol by volume, and is packaged in 24 oz. cans.

Anheuser-Busch has launched ULTRA

19th Hole Light Tea & Lemonade, an iced tea and lemonade-flavored alcohol beverage inspired by the golf course classic. ULTRA 19th Hole is available in single-serve and four-packs of 16 oz. cans and can be purchased at convenience stores, select golf courses, and bars and restaurants.

Mississippi Brewing Company has launched Arnold Palmer Light Half & Half Malt Beverage. The latest entry in the Arnold Palmer Hard line and is made with original AriZona brand iced tea and lemonade, contains 5 percent alcohol by volume, and 110 calories per 8 oz. serving. It is available in 12 oz. longneck bottles and a 32 oz. jug.

The Seagram Beverage Company. Sea-

gram’s Escapes Frozen Flavors, a line of single-serve ready-to-drink frozen flavored malt beverages (FMBs), launched in spring 2012. Seagram’s will be adding two new flavors to the line for 2013 – Blue Hawaiian and Jamaican Me Happy. The products will be available nationwide in March 2013.

DGI Beverage, LLC. BLACK iGUANA is a line of wine-based, ready to drink cocktails that can be consumed straight from its pouch package or served chilled over ice, slushy or frozen. The 10 oz. single-serve BLACK iGUANA Cocktail pouches contain 5.5 percent alcohol by volume. The line of drinks recently gained distribution in Massachusetts.

Gourmet CSDs Battle On

By Jeffrey Klineman Carbonated soft drinks (CSDs) are a category in steady decline – but the high end continues to attract new companies who are trying to offer natural alternatives, better taste, functionality and rare ingredients.

T

hese attempts to make over the pedestrian soda category with highbrow products seem to come every year, making for a diverse set of companies for retailers and distributors to consider.

The entrepreneurs wouldn’t mind the consideration – it’s tough out there, they say, when you’re competing with the Cokes of the world. But things are starting to turn: recently a high profile investor took a stake in one brand, while a fast growing retailer interested in building high-end consumer brands took a chance on another: Emil Capital Partners invested in Sipp, while The Fresh Market opened its doors wide for upstart brand Block Island Beverages (Bibbs). Meanwhile, older brands like Maine Root, Steaz, Izze and Reed’s remain stalwart in their ongoing battle to make a place for themselves in the market.

Izze, for example, is undergoing yet another round of route-to-market tinkering at PepsiCo, where it sits in the emerging Naked/Izze innovation group.

“The brand has potential and the category has potential,” said George Kuhn, who works on sales strategy and planning with Naked and Izze. “There’s definitely a play within certain demographic groups.”

That doesn’t mean that it’s not hard. Sipp, for example, an organic soda brand started by former bartender Beth Wilson-Parentice recently pulled in growth capital from Emil, which was founded by a family with expertise in consumer products. You might think that Ms. Wilson-Parentice would take the investment as a positive sign, but she recognizes that the cash is just fuel for another round of production and battling to get traction in more stores. With a small proof of concept in place – Sipp is available in about 400 Philadelphia-area accounts – she said that she knows the road is still a long one.

“It’s been an interesting road,” Wilson-Parentice said during

40 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

the Natural Products Expo East event in Baltimore in October.

“Now, we’re interested in being able to go forward.”

Despite the difficulties, many gourmet soda operators see white space in the market. One place they like to point is New York City, where Mayor Michael Bloomberg is in the process of banning the sale of high-calorie beverages larger than 16 ounces.

Steaz, a carbonated tea brand that has been on the market for nearly a decade, is one brand whose owners seem to believe it has found the caloric slipstream to success.

“Steaz is part of the solution, not the problem,” noted spokesman Tom Sellwood in a recent missive. “Steaz believes 16 oz. at a time is ample for refreshment.”

Most gourmet CSDs seem to buy into the notion that less is more, both in terms of packaging and calories. It’s the places they don’t skimp – real fruit for juice-based carbonated products or sweeteners like cane sugar or agave syrup – that they believe will motivate buyers.

“Even though CSDs are down 11 percent since 2006, the ingredients give us an advantage,” says Len Zide, the founder of Block Island Beverages, which makes carbonated blackberry sodas and lemonades.

“People still are thirsty, but they’re reading labels.”

And beverage industry gatekeepers are reading labels as well; The Fresh Market, for example, took a chance on Zide’s products and ordered two truckloads as a way to debut a new product that fit in its wheelhouse of innovation and natural origin. While he’s still fighting it out with the bigger companies on price and shelf space, he’s not deterred. For every Fresh Market, there are several more Whole Foods, Wegmans, and other supermarket account focused on the high end.

“We’re going to live or die being the best we can be,” Zide said. “There’s still room, and the market seems to be evolving in our direction.”

BRAND NEWS

Boutique CSDs

The Dominion Brewing Company has announced the addition of Black Cherry and Creamy Orange flavors to its line of soft drinks. Handcrafted with pure cane sugar from the Domino’s factory in Baltimore, the products contain no high-fructose corn syrup or caffeine. Dominion Black Cherry pays homage to the classic soda fountain beverage, while Creamy Orange undertakes a modern reinterpretation of orange soda by smoothing the traditionally acerbic citrus and invoking the flavor profile of a carbonated creamsicle.

The new sodas will join Dominion’s other two sodas, Root Beer and Ginger Ale, in a variety 12-pack.

The Double Cola Co. has repackaged its

Diet Double Cola with new graphics and the new tagline, “Surprisingly Diet.” The new design features hand-drawn elements that the company hopes “will catch the attention of consumers browsing a crowded shelf.”

HOTLIPS has introduced a new Marionberry

flavor. Marionberry is called the “Cabernet” of blackberries for its complex, tart flavor, according to the company. HOTLIPS produces the soda using Marionberries from Sandy Farms in Boring, Ore., cane sugar, organic lemon and filtered sparkling water.

Block Island Beverages, Inc., a manufacturer of super-premium, all-natural sparkling juice beverages, has completed its second full year of business. The company’s first product the Bibbs line of blackberrybased beverages, is now on shelves in more than two hundred retail outlets across 24 states. All Block Island Beverages are made from high quality ingredients and natural and/or organic flavors. The drinks are also GMO-free and certified kosher. The company will introduce a line of all natural sparkling lemonades next year.

Cool Mountain Beverages, Inc. is reinvigorating its branding message in the premium soda segment with a refreshed website complete with an all-new mobile-compatible theme, as well as new content and features.

Enhancements to the site strengthen the company’s use of the Internet as a marketing and sales platform. The new site has added functionality that includes featuring a direct link where customers can purchase product

42 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

online and a distribution map to find a local retailer or distributor.

Blumers is a line of heritage sodas, made in the tradition of those Master Brewers from our past. The drinks are carefully hand-crafted with cane sugar and natural ingredients.

VIGNETTE Wine Country Soda recently

began selling its top-selling Pinot Noir variety in a 750 mL bottle. The new package will primarily be distributed in Northern California specialty stores and wine shops for the upcoming holiday season. The company will plan a larger rollout next year. VIGNETTE’s 750 mL line of drinks allows the company to offer a wine experience to non-drinkers in a more sophisticated non-alcoholic beverage.

Cheerwine recently partnered with North Carolina indie-rockers the Avett Brothers to present its “Legendary Giveback” concert, an evening that raised awareness and funds for a number of nonprofit organizations. A portion of the proceeds raised by the concert went to Operation Homefront and Wounded Warriors.

Green Bee Soda of Maine handcrafts its beverages exclusively with local honey and botanicals. The company recently added two new regional partners to their distribution network. Associated Buyers has begun distributing Green Bee’s lineup of all natural sodas to retailers throughout New England and the Hudson River Valley of NY. Additionally, G. Housen is distributing Green Bee in Vermont, New Hampshire and Massachusetts. Their products can also be found at select Whole Foods Markets throughout the Northeast.

Jeff’s Soda has updated the packaging, labels, and 12 oz. bottles for its line of dairybased sodas. Jeff’s Soda comes in “Old Fashion Soda Fountain” flavors of Chocolate, Orange, Vanilla, and each flavor is available in original and diet versions.

Q Drinks. This December, Whole Foods will feature the full line of Q Drinks - Q Tonic, Q Ginger, Q Kola, and Q Club – in large displays at all its locations around the country during December. Additionally, Whole Foods selected Jordan Silbert, the founder of Q Drinks, to be featured as the subject of its “Whole Story” campaign, a program

that promotes some of the stories behind the grocer’s favorite products.

GuS – Grown-up Soda. GuS Soda has

mainstream flavor to date, and was crafted to compete with America’s traditional soda flavors. The newest addition to the DRY soda mix is the company’s take on the old-guard, too-sweet lemon/lime soda.

introduced new labeling and graphics for its 4-packs. The taller labels have a bolder and more modern look. GuS adds new DSD distributors in New England: G. Housen, Bay State Beverages and Great State Beverages.

GuS is helping the trade deficit by commencing exports to China, Korea and Brazil.

Fentimans has partnered with Caorunn Gin

Steaz has reformulated its line of Steaz Zero

to offer a $1 coupon off the cost of a 4-pack of Fentimans Tonic Water with the purchases of a 750 mL bottle of the gin. The coupon is offered at several locations where both beverages are sold including: Total Wine and More, and Bevmo.

Calorie Sparkling Green Teas. The line is now available in 12 oz. tall cans includes two new flavors: Cola and Root Beer.

DRY Soda. Wild Lime is DRY Soda’s most

The PoP Shoppe has launched an exclusive partnership with Cott Beverages to launch the first-ever line of PoP Shoppe canned sodas. Designed to complement its iconic, “stubby” glass bottles, The PoP Shoppe’s retro-cool can line includes four additions to the PoP Shoppe’s flavor lineup: Psychadelic Strawberry, Big Time Banana, Omazing Orange n’ Cream and Got the Blues Raspberry.

The cans are also available in four of The PoP Shoppe’s classic flavours, with a twist - Lime Ricky, Radical Root Beer, Groovin’ Grape and Crazy Cream Soda. The PoP Shoppe’s glass bottled sodas are still available across North America, and all of the company’s products are now are made with real sugar.

Oogavé is launching a new line of all

natural diet soda called “LoCa.” LoCa is an alternative to other stevia sodas on the market. LoCa is a 10-calorie all-natural diet soda with organic agave nectar and stevia, eliminating the after-taste people have been willing to accept in the past.

Taylor’s Tonics Holiday Fizz Collection

is now available at all 270 Cost Plus World Market locations and most Safeway locations across the country. The collection includes four flavors: Cranberry Dream, Gingerbread Sparkler, Eggnog Fizz, and Candy Cane Shake.

Boundary Waters Brands, the makers of Joia All Natural Soda, launched two new flavors: Ginger, Apricot & Allspice, and Orange, Jasmine & Nutmeg. The new flavors are all-natural, and use pure cane sugar, stevia, and monk fruit as sweeteners. The sodas are distributed in Minnesota and along the West Coast, and are available at all The Fresh Market locations.

Introducing a New Way to Learn the Beverage Industry

Maine Root launched Mexicane Cola, the

company’s take on a Mexican-style cola. All Maine Root products are sweetened with 100 percent Fair Trade Certified organic sugar, and are available at retailers nationwide. The company will expand its Fair Trade Certified offerings in 2013.

Zevia. In 2012, Zevia added three new

flavors to its portfolio: Cherry Cola, Lime Cola and Strawberry. Zevia products are sweetened with stevia and are zero-calorie and all-natural.

Whether you are starting a new beverage company or have new hires that you need to bring up to speed, BevNET’s “BeverageSchool.com” is the easiest and most affordable way to learn the ropes of the beverage industry.

The video-based, on-demand learning tool can be accessed anytime for a nominal subscription fee of $49/month.

Get Started Now at BeverageSchool.com NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 43

CONFERENCE OVERVIEW

NACS 2012:

Energy Drinks, Innovation, and Naked Ambition

By Jeffrey Klineman

The National Association of Convenience Stores (NACS) Show in early October in Las Vegas offered clues to some of the grand plans of many beverage companies.

There was the Coca-Cola Co., Inc., trying to fill in portfolio gaps by leaking plans to take coconut water brand Zico and protein drink Core Power into national distribution.

There was Red Bull discovering the wonder of flavors, extending its brand into three “Red Bull Edition” varieties, blending cranberry, lime and blueberry with the Red Bull base. The move to extend the line a long decade after the brand’s ascension as the top seller of energy drinks showed that the company is playing at a different tempo than other energy drink brands.

Rockstar, for example, continued to extend its product line into “super sour” varieties, as well as a new “energy water” – a zero-calorie caffeinated H20 variety. The independent brand, like its chief competitor, Monster Energy, has lived off of innovation, moving into colas, teas, coffees, juices and “rehab” drinks.

Coke-owned NOS also launched a caffeinated water of its own, “NOS Active,” part of a slight line tweak for the brand. Coke’s other news, while big for the entrepreneurial community, comprised a mere tweaking for its massive portfolio: the company is taking Zico coconut water and Core Power protein drinks into national distribution.

Perhaps the biggest set of changes came from Xyience’s Xenergy line, which broke out in several new directions: hydration, tea and lemonade. Xenergy+True Hydration is even made without caffeine.

“We earned our place as the fastest growing of the top 10 energy drink brands by delivering on taste and product performance,” said Xyience President John Lennon. “Combining energy with other beverage formats is a powerful proposition.”

Lennon also revealed that the brand is gradually unifying inside its silver can line, instead of having some in black cans – a package that had been distributor-driven in some cases, he said.

“Silver means lighter, no sugar,” Lennon said. “We want to be the energy drink of the health club, not the night club.”

44 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

While energy drinks were in abundance, relaxation products retreated a bit; one notable new entry was a relaxation shot from Celestial Seasonings called “Sleepytime Snooz.” Owned by natural products stalwart Hain Celestial, the relaxation shot, combined with a set of green tea “enerji” shots – indicates the conglomerate is aiming for convenience channels.

Meanwhile, relaxation drink up-and-comer Marley Beverage Co. is now pushing its coffee products to the forefront, shoring up a fast-growing brand that expects to expand beyond relaxation drinks and into a wider set of products.

According to Global Marketing Director Lee Brody, Marley is about to hit the publicity switch, as well.

“Our go-to-market strategy is perfectly aligned with this market,” Brody said of convenience, adding that the company will be moving more fully into field marketing in the spring.

Meanwhile, another breakout brand that was on hand to make inroads in convenience was Sparkling Ice, the Talking Rain product that is accelerating quickly to supermarkets and Wal-Mart, but is still trying to find its place in convenience.

“The challenge is looking where we can find a match between our distributors and other key retail outlets,” said Kevin Klock, the president of Talking Rain. The brand has a patchwork distribution system built on warehouse, DSD, and direct-ship to grocery – so it has not yet overlaid a convenience footprint, he said, restricting the channel to about 5 percent of its sales.

Still, it remains a great opportunity for the brand, he added.

Veteran Innovators While Marley was about to turn up the marketing dial, and Sparkling Ice was looking to find its way into more stores, Karma Water, a product started by Jolt Cola inventor C.J. Rapp, was simply looking to deepen its footprint.

Karma, one of a new line of “mix to drink” products with vitamins and minerals stored in a chamber in its lid, has slowly

been making its way across the eastern third of the United States.

With a growing distribution footprint, Rapp said, the company is “in the capital raising phase,” which will allow the company to go deeper into its existing markets, building awareness and supporting its DSD network.

“The company is sustainable in its current form,” he said.

“The desire to raise capital is to properly develop the brand.”

Another veteran entrepreneur, Body Armor CEO (and Fuze founder) Lance Collins, said that part of the development of his own brand would involve a few tweaks.

“We adjusted the logo, killed the teas and the cherry citrus, and added orange mango, blueberry pomegranate, and tropical citrus,” he said.

With the line winnowed down to one functional idea and five SKUs, the brand message is emerging after a year, 2012, that was “a discovery period,” Collins said. The new message is clearer, he added: “We’re calling it a ‘super-nutrient enhanced sports drink.’”

Another brand apparently undergoing some tweaking is from Brain Twist’s Larry Trachtenbroit, who was on the floor at the show, but did not have a booth. Trachtenbroit’s new aloe-based product, HALO, has been in development for months – he just settled on a new package, he said.

Trachtenbroit told BevNET that Halo, developed with supermodel Petra Nemcova as an investor, would be out “by the end of the year.”

There’s no rush, he joked. “I enjoy the R & D process with Petra. Why rush it?”

The New Incubator Beyond promising brands, however, the show floor was also where some of the newest members of an emerging PepsiCo innovation project surfaced.

BevNET had the chance to speak with Doug Woodward, the Senior Director of Sales and Distribution at Naked Juice – now the incubation lab for Pepsi’s emerging brands strategy.

Woodward was there with George Kuhn, another strategy and planning team member.

While the pair was ostensibly on the scene to explore new channel prospects for sparkling juice brand Izze, they were also taking in the show floor to consider route-to-market strategies and potential bolt-on brand ideas for the Naked operation.

According to Woodward, most recently an executive with Dean Foods, the Naked group will be looking at “any brands in transformative categories.”

Izze itself was an example of a transformative brand, pulling in consumers who were tired of colas and sodas but still interested in the fun of a CSD. Products like Izze are able to bring in a cadre of attractive consumers, Woodward said, “but they are very different from the PepsiCo brands.”

The Pepsi mentality thus far, he added, “has been to let the brand follow the truck,” while the new Naked unit will “say where the consumers are who we want to reach.”

NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 45

CONFERENCE OVERVIEW

EXPO EAST REVIEW: Optimism Bubbling

By Jeffrey Klineman It went beyond rumor, all the way to mockups and flavors, even sampling, but the bubbly giddiness ruling the Honest Tea Expo East booth wasn’t confirmation that the brand will be rolling out a line of carbonated soft drinks, according to “TeaEO” and co-founder Seth Goldman.

“It’s definitely not a done deal,” Goldman told BevNET, pointing out that the company has used Expo East for product experimentation in the past, and has gone into and out of the market quickly with products like its “CocoaNovo” chocolate play.

Still, there were clear signs that the booth was prepared to launch a four-SKU line – tentatively labeled with zero-calorie, Stevia-and-erythritol sweetened root beer, lemon lime, orange “pop” and “Professor Fizz” (think cherry/pepper) flavors – if it got the go-ahead, down to a potential pricing scheme for 6-packs and single-serve cans.

Goldman did allude to the possibility that the product could just be one of several steps in the broadening of the Honest brand, however, as he said the Coke property might eventually try to add a tween-focused fizzy “Splash” line that could take the brand into schools and bridge the gap between its youngest consumers and adults.

For those youngest consumers, however, the company rolled out a new, juice-sweetened version of the fast-growing Honest Kids line during Expo East, tweaking a formula that has become a major part of the business. According to Goldman, the Honest Kids line is close to 1/3 of the company’s revenues at this point. The new white grape-sweetened version of Honest Kids debuted in natural channels in October, and is launching with significant end-cap space in

46 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

national accounts like Target and key supermarkets in January.

“It’s on fire,” Goldman said of Honest Kids.

Also on fire is a potential Honest Fizz competitor, however – Zevia. The original Stevia-sweetened soda brand, Zevia was purchased by natural foods entrepreneur and part-time martial artist Paddy Spence in the October of 2010.

The brand offers straight-ahead CSD flavors in a traditional 12 oz. (and now 16 oz.) can. According to Spence, the brand has quadrupled its growth over a two-year period while studiously avoiding any extension of channels beyond natural, grocery, and drug, avoiding convenience, club and warehouse accounts.

That’s not to say that people aren’t buying Sam’s Club-sized

portions of the now 15-flavor line, according to Spence.

“What’s cool is our brand has gotten to the point where the consumers who like our brand can’t live without our brand,” he said. “We see a lot of pantry-loading.”

Two other companies hoping for pantry-loading behind a new canned product were natural products stalwart Inko’s teas, which have recently broadened beyond its longstanding white tea product to include black, rooibos, and green tea flavors in 16 oz. cans, and Marley Beverage Co., which was showing off canned versions of its coffee line during Expo East.

“We’ve always wanted to go into Inko’s Teas,” as opposed to just white tea — said co-founder Andy Schamisso. “I think there’s a great opportunity in the natural [channel] cold box for cans.”

Meanwhile, at fast-growing Viva Beverages, which makes Marley’s Mellow Mood, among other Bob Marley-themed beverages, representatives of the Marley family were on hand for photos as CEO Kevin McClafferty and marketing manager Lee Brody showed off new “light” coffee line extensions that ushered the line’s move from glass bottles into slimcans.

“It’s about growing the category,” Brody said of the new emphasis on coffee, where the brand is expected to compete with Starbucks and its sub-line, Seattle’s Best.

One company that definitely wasn’t canning anything was Aquahydrate, a celebrity-backed functional water brand that recently re-launched its package to more directly aim at the athletic consumer. The company has had product on the market for several years – and the added buzz that comes from investment by actor Mark Wahlberg – but never gained traction. New key

investors Sean “Puffy” Combs and Ron Burkle are on board as well as the brand also aims to roll out flavors to join its key line of high-alkaline, electrolyte fortified waters.

Expo East revealed that changes are also coming to the top at new oat extract beverage Oatworks following a development phase that featured early incubation from investor Bill Anderson’s First Beverage Group.

One of the more experienced members of the First Beverage Group team, Nantucket Nectars founder Tom First, had been tasked with helping take the product from concept to market.

But First Beverage did not invest following the launch and First is no longer actively involved with the brand.

Now that it’s bottled and available – for now, pretty much only in Boston, via Blue Coast distributing, but soon to roll out in New York – the company is looking for a full-time CEO to run the business.

“Ultimately both they and we decided that the investment wasn’t necessary,” said David Peters of Biovelop, which developed Promoat, an oat beta glucan extract that gives the drink its heart-healthy functional properties.

The London native and former investment banker said he was happy with the product that the partnership had produced – indeed, he was happily hawking it at the Oatworks booth, along with frequent check-ins by Oatworks board member and Code Blue founder Jeffrey Frumin (the founder of Code Blue) — throughout the show.

First Beverage “did a great job,” Peters said, “But we need someone who can eat, sleep, drink and think Oatworks.”

NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 47

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+RED Elixir

ACTIVATE +RED Elixir PRODUCTS: Rescue Elixir, Power Elixir

AquaBall Flavored Water

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Rising Beverage Co.

True Drinks Inc.

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Beyond 100% Coconut Water

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50 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

PACKAGING: 250 mL Can

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Black Bear Energy, LLC

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PRODUCTS: Black Bear Energy Spray

PRODUCTS: Pure Coconut Water & Pure Coconut Water with Pulp

PACKAGING: Spray 0.8 oz. Sticks/ Sleeves, Spray 0.8 oz. 24 pack

Body Works

Chameleon Cold Brew

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PRODUCTS: Cold Brewed coffee

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Chasing Rabbits

PRODUCTS: Enerji - Green Tea Energy Shot PACKAGING: 2.5 oz. PET

PACKAGING: 2.5 oz. RPET

DOUBLE-COLA

Chasing Rabbits, LLC

The Double Cola Company

PRODUCTS: Chasing Rabbits Natural Energy Beverage Natural Ingredients & Mango Citrus Flavors with Coconut Water

PRODUCTS: DOUBLE-COLA PACKAGING: 12 oz. Can

PACKAGING: 12 oz. Can

Celestial Seasonings

BODYARMOR Nutrition, LLC

Chia\Vie

The Hain Celestial Group, Inc

PRODUCTS: BODYARMOR SuperDrink: Superior Nutrition & Hydration

PRODUCTS: Sleepytime Snooz Natural Sleep Aid PACKAGING: 2.5 oz. PET

PACKAGING: 16 oz. PET

Celsius

Dox Cardio Water Bare Nutrition, LLC

Dox Solutions, LLC

PRODUCTS: Ground Chia Smoothies: Acerola-Pina, Mango-J, Banapple-Berry

PRODUCTS: Cardio Water Resveratrol Infused Pom/ Grape, Apple/Pear, Acai/Blueberry, Green Tea/ Lemon

PACKAGING: 12 oz. PET

Core Power

Cape Kingdom

Celsius, Inc.

PRODUCTS: Sparkling Herbal Water - Natural, Lime, Cranberry, Black Currant

PRODUCTS: Sparkling Orange, Sparkling Wild Berry, Raspberry Acai Green Tea, Sparkling Cola, Peach Mango Green Tea

PACKAGING: 16.9 oz. PET

Exports USA, LLC

PACKAGING: 1 gal. PET

The Hain Celestial Group, Inc

PRODUCTS: Sleep Shot, Relax & Unwind Shot, Perform Under Pressure Shot, Wellness Shot, Sport Shot, Energy Shot

BuchuLife

Chameleon Cold Brew LLC

PACKAGING: 17.5 oz. Can

Celestial Seasonings

BODYARMOR SuperDrink

Coyote

PACKAGING: 12 oz. Can 52 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

PACKAGING: 16 oz. PET

Dream Water Fair Oaks Farms Brands

Dream Products, LLC

PRODUCTS: Chocolate - 26g Protein, Vanilla - 26g Protein, Honey - 26g Protein, Chocolate Light - 20g Protein, Strawberry Banana Light - 20g Protein

PRODUCTS: Sleep & Relaxation Shot PACKAGING: 2.5 oz. PET

Energy Mocha Java

Everfresh VIP Mixers

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FIX

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National Beverage Corp.

PRODUCTS: Fresh Juices and Smoothies

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PACKAGING: 10.5 oz. PET

FIX Brands, Inc.

Shadow Beverages

PRODUCTS: FIX

PRODUCTS: GNC Protein JuiceOrange Cream, Mixed Berry

PACKAGING: 16 oz. PET

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ESSENTIA WATER

Evolution Fresh

Flash Water

GNC Sport

ESSENTIA WATER, INC.

Evolution Fresh

Gastroceuticals LLC

Shadow Beverages

PRODUCTS: super hydrating bottled water

PRODUCTS: Organic Orange, Essential Vegetable, Sweet Greens and Lemon, Vital Greens, Pineapple Coconut Water, Spicy Lemonade

PRODUCTS: Flash Antioxidant Water - Lime, Flash Antioxidant Water - Punch, Flash Antioxidant Water Orange

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Eternal Energy

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Go Girl Energy Drinks

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Fit FrappĂŠ National Beverage Corp.

PRODUCTS: Orange Juice, Cranberry Juice, CarrotOrange Juice, Red Grapefruit Juice, Pineapple Juice, Apple Juice PACKAGING: 16 oz. Glass

PACKAGING: 12 oz. 24 pack

GNC NutriWater Big Train PRODUCTS: Espresso, Vanilla Latte, Mocha, Chocolate, Vanilla PACKAGING: 36.2 oz. Powders

Shadow Beverages PRODUCTS: GNC NutriWater XPMixed Fruit, Wild Berry, Triple Citrus, GNC NutriWaterCitrus, Summer Melon, Berry Pomegranate

PACKAGING: 12 oz. Can

Golazo Sports Energy Golazo, Inc PRODUCTS: Mandarina, Jamaica Punch PACKAGING: 12 oz. Can

PACKAGING: 20 oz. PET NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 53

Golazo Sports Hydration

Hoist

Golazo, Inc PRODUCTS: MangoLim贸n, Mandarina, Limonada, Jamaica Punch PACKAGING: 20 oz. PET

Icelandic Glacial QCK, LLC DBA HOIST

Icelandic Water Holdings

PRODUCTS: Starfruit, Strawberry Lemonade

PRODUCTS: Icelandic Glacial Natural Spring Water

PACKAGING: 12 oz. PET

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

Joia All Natural Soda Boundary Waters Brands PRODUCTS: Ginger Apricot & Allspice, Orange Jasmine & Nutmeg, Blackberry Pomegranate & Ginger, Grapefruit Chamomile & Cardamom, Pineapple Coconut & Nutmeg, Lime Hibiscus & Clove PACKAGING: 12 oz. Glass

Granny Squibb's Iced Tea

Honest Kids

The Granny Squibb Company, LLC PRODUCTS: Classic Lemon, Mojito/ Lime, Raspberry, Black Currant; Unsweetened - Lemon/Mint, Mojito/Lime, Raspberry, Black Currant PACKAGING: 16 oz. Glass

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PRODUCTS: Berry Berry Good Lemonade, Tropical Tango Punch, Goodness Grapeness, Appley Ever After, Super Fruit Punch

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PACKAGING: 6.75 oz. Pouch

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HOTLIPS Soda Innovative Health Solutions

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PACKAGING: 12 oz. Glass

The Chill Group, Inc. PRODUCTS: Just Chill: Rio Berry, Just Chill: Caribbean, Just Chill: Tropical PACKAGING: 12 oz. Can

KeVita Sparkling Probiotic

Dream Foods International, LLC

KeVita Sparkling Probiotic Drink

PRODUCTS: 100% Organic Lime Juice

PRODUCTS: Pomegranate KeVita

PACKAGING: 500 mL Glass

PACKAGING: 15.2 oz. Glass

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RPET, 12 oz. RPET, 20 oz. RPET

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Icebox Water Hiball Energy PRODUCTS: Sparkling Energy Water - Grapefruit, Lemon Lime, Wild Berry, Vanilla; Organic Energy Drink - Wild Berry, Cranberry Apple

Java Monster

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Water Resources Group, LLC

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PRODUCTS: Icebox Standard, Icebox Jr. "Slim"

PRODUCTS: Kona Blend, Vanilla Light, Mean Bean, Loca Moca, Toffee, Irish Blend

PACKAGING: 33.8 oz. Elopak, 16.9 oz. Elopak

PACKAGING: 16 oz. Can 54 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

PACKAGING: 15 oz. Can

PBEV, LLC PRODUCTS: Killer Buzz Proto, Killer Buzz Zilch, Killer Buzz Hybrid, Killer Buzz Livid, Killer Buzz Dragon Spit PACKAGING: 16 oz. Can

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Killer Buzz Coffee + Energy

LifeAID

PBEV, LLC

MANYK Energy LifeAID Beverage Company, Inc.

PRODUCTS: Killer Buzz Mocha Madness, Killer Buzz Luscious Latte

MANYK ENERGY INC PRODUCTS: MANYK Energy Original, MANYK Energy Zero, MANYK Energy White Tea/ Cranberry, MANYK Energy White Tea/ Lemonade

PRODUCTS: GolferAID, FitAID, PartyAID

PACKAGING: 16 oz. Can

Monster Energy

PACKAGING: 12 oz. Can

PACKAGING: 16 oz. 24 pack

Kiwaii

Limitless Smart Shot Premium Healthy Spring Water, Inc.

Marley's Mellow Mood

Limitless Group, LLC PRODUCTS: Limitless Smart Shot

PRODUCTS: Kiwaii True Spring Water PACKAGING: 16.9 oz. 6 pack

Monster Beverage Company PRODUCTS: Original, Lo-Carb, Absolutely Zero, Khaos, M-80, Assault, Mixxd, Cuba Lima, Zero Ultra, Import , Import Light, DUB Editions M3, Ăœbermonster PACKAGING: Can - 16 oz., 8.3 oz., 18.6 oz.; Glass - 5 oz., 16.9 oz.

Monster Extra Strength

Marley Beverage Company

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Kudu Energy

Live Soda

Mickies Slices

Monster Energy Rehab

Kudu Energy LLC

Boundless Nutrition

Kids Healthy Foods, LLC

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PRODUCTS: Kid's 100% Organic Juice, Vitamin Waters, Veggie Juice Fusions

PACKAGING: 12 oz. Glass

PACKAGING: 5 oz. Tetra Pak

PACKAGING: 2 oz. PET

Monster Beverage Company PRODUCTS: Tea + Lemonade + Energy, Rojo Tea + Energy, Green Tea + Energy, Protean + Energy, Tea + Orangeade + Energy PACKAGING: 15.5 oz. Can

LaCroix Sparkling Water National Beverage Corp.

PRODUCTS: LaCroix Peach-Pear Sparkling Water

Mamma Chia

mix1 Mamma Chia PRODUCTS: Guava Mamma PACKAGING: 10 oz. Glass

PACKAGING: 12 oz. Can

Mr. Mo's Lemonades mix1 beverage company PRODUCTS: Nutr. Shake (Mix Berry, Blueberry Vanilla, Strawberry Banana), Lean Performance (Acai Pomegranate, Strawberry Banana) PACKAGING: 12 oz. PET, 11 oz.

Tetra Pak

56 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

Mr. Mo's Beverages, Inc. PRODUCTS: Mo'st Apeeling Lemonade, Blackberry, Mango, Raspberry, Lemonade, 1/2 & 1/2 (Green TeaLemonade) PACKAGING: 16 oz. Glass

Nawgan Lemonade

Noah's Oxygenated Water

Nawgan Products LLC

Varni Brothers / Noah's Water

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PRODUCTS: Noah’s Oxygenated Spring Water

PACKAGING: 11.5 oz. Can

PACKAGING: 12 oz. Can

Oatworks

Peace Tea Oatworks

Peace Tea Beverage Company

PRODUCTS: Oatworks Pomegranate & Blueberry smoothie, Oatworks Mango & Peach smoothie, Oatworks Strawberry & Banana smoothie

PRODUCTS: Razzleberry Tea, Sweet Lemon Tea, Green Tea, Caddy Shack Tea + Lemonade, Pink Lemonade + Tea, Texas Style Sweet Tea, Cranberry Tea

PACKAGING: 10.8 oz. PET

NEO Water

Noah's Sparkling Almond NEO North America Inc.

Varni Brothers / Noah's Water

PRODUCTS: NEO Water; 9.5pH Alkaline, Electrolytes, Antioxidants

PRODUCTS: Noah’s Sparkling Varni Almond Spring Water

NOVO neuro

PRODUCTS: Perfectly Petite Women's Energy, Passionfruit Flavor

PACKAGING: 12 oz. Can, 12 oz.

4-pack carton

Open1

PRODUCTS: Raspberry Lemon, Ginger Lime, Blueberry Pomegranate, Mango Mandarin

PACKAGING: 14.5 oz. PET

LXR Biotech, LLC

PRODUCTS: Open1 Cranberry Dragonfruit, Mango Papaya

NOVO Organics, LLC

PRODUCTS: neuroTRIM

Perfectly Petite Synaptent LLC

PACKAGING: 12 oz. Can

PACKAGING: 16.9 oz. PET, 20 oz. PET, 33.8oz oz. PET

neuroTRIM

Open1

PACKAGING: 23 oz. Can

PACKAGING: 1.93 oz. Biodegradable PET Bottle

Plasma Energy Synaptent LLC

D-Plasma Corp

PRODUCTS: Open1 Cranberry Dragonfruit, Open1 Mango Papaya

PRODUCTS: Plasma Energy Citrus Fusion, Plasma Energy Mixed Berry Low Carb, Plasma Energy Blue Raz

PACKAGING: 12 oz. Can, 12 oz.

4-pack carton

PACKAGING: 16 oz. Can

PACKAGING: 16.9 oz. PET

Next10 Energy

Nuun All Day Northwest Neuro Enterprises, LLC PRODUCTS: Functional beverage, smart energy, green apple flavor

OXYwater Nuun & Company PRODUCTS: Vitamin enhanced all-natural drink tab PACKAGING: 16 oz. Tablets

Popeye Energy Imperial Integrative Health Research & Development PRODUCTS: Function Beverage

Popeye Energy PRODUCTS: Bruiser Blackberry PACKAGING: 16 oz. Can

PACKAGING: 20 oz. PET

PACKAGING: 2 oz. PET NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 57

Popeye Energy

Q Kola - A Superior Cola Popeye Energy

Q Drinks

PRODUCTS: Clobberin Clementine

PRODUCTS: Q Kola PACKAGING: 8 oz. Glass, 750 mL Glass

PACKAGING: 16 oz. Can

Premier Protein

Red Bull Total Zero

Premier Nutrition

Red Bull North America

PRODUCTS: High Protein Shakes

PRODUCTS: Red Bull Total Zero

PACKAGING: 11 oz.

Tetra Pak, 8.25 oz.

Tetra Pak, 14 oz.

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PACKAGING: 8.4 oz.

Can, 12 oz. Can, 16 oz. Can, 8.4 oz.

4-pack carton

Protein + Coconut Milk SAMBAZON PRODUCTS: Protein Chocolate + Almond + Coconut Milk PACKAGING: 10.5 oz. PET

RightSize

ROAR

Rockstar XDurance ROAR Beverages LLC

PRODUCTS: Lean Coco Bean, Skinni Vanilli, SlendA-Berry, Leano Cappuccino

PACKAGING: 16 oz. PET

Rockstar Guava Punched

PepsiCo PRODUCTS: Unsweetened, Sweet, Extra Sweet, Lemon, Peach, Raspberry, Green Tea with Honey

Rip It Energy Fuel National Beverage Corp.

PACKAGING: 18.5 oz. PET, 59 oz. PET

58 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

Runa Runa LLC

PRODUCTS: Rockstar Guava Punched

PRODUCTS: RTD Guayusa Teas

PACKAGING: 16 oz. Can

PACKAGING: 14 oz. Glass

Runa Guayusa Tea

Rockstar Inc.

Runa

PRODUCTS: Iced Tea + Lemonade

PRODUCTS: Hibiscus-Berry Guayusa Tea, Mint Guayusa Tea, Traditional Guayusa Tea, Lemon-Lemongrass Guayusa Tea

PACKAGING: 16 oz. Can

PACKAGING: 14 oz. Glass

Rockstar Super Sours Rockstar Inc. PRODUCTS: Bubbleberry

PRODUCTS: Tribute PACKAGING: 16 oz. Can

PACKAGING: 16 oz. Can

Rockstar Inc.

PACKAGING: 20.5 oz. Powders

Pure Leaf Iced Tea

PRODUCTS: XDurance Performance Energy

PRODUCTS: ROAR Sport Drink

Rockstar Recovery RightSize Health and Nutrition

Rockstar Inc.

PACKAGING: 16 oz. Can

Scheckter's Organic Energy Scheckter's Organic Beverages PRODUCTS: Scheckter's Organic Energy PACKAGING: 8.4 oz. Can

SEKSI Pearl Infused Beauty

SPACHO

Pearl Aqua LLC

Supergreens w/Kale & Ginger Vemma Bod-e Burn FreshForward Beverages

PRODUCTS: SEKSI Pearl Infused Beauty

PRODUCTS: SPACHO GazpachoInspired Vegetable Juice

PACKAGING: 8.4 oz. Can

SAMBAZON PRODUCTS: Supergreens with Kale and Ginger PACKAGING: 10.5 oz. PET

PACKAGING: 10 oz. PET

Simpli

Sparkling ICE

Superliminal Purple Stuff

Oat Solutions LLC

TalkingRain Beverage

PRODUCTS: Simpli OatShake Coffee, Simpli Naked Oat Plain, Simpli Naked Oat Vanilla

PRODUCTS: Naturally Flavored Sparkling Mountain Spring Water Available in 8 refreshing flavors

PACKAGING: 8.45 oz. Tetra Pak, 25.35 oz. Tetra Pak

SK Energy Shots SK Energy Shots LLC PRODUCTS: SK Energy Shots in 100% natural Berry, Grape and Orange flavors

Vemma Nutrition Company PRODUCTS: Weight Management PACKAGING: 8.3 oz. Can

Vemma Bod-e Cleanse

Funktional Beverages, Inc.

Vemma Nutrition Company

PRODUCTS: Best New Carbonated Beverage

PRODUCTS: Weight Management

PACKAGING: 8 oz. Can

PACKAGING: 2 oz. PET

PACKAGING: 17 oz. PET

Spindrift

Tumeric - Pure Prana Spindrift Beverage Co. PRODUCTS: Blackberry, Grapefruit, Cranberry/ Raspberry, Orange Mango, Lemonade, Half & Half, Lemon Water, Tangerine Water, Raspberry Lime Water

TumericALIVE PRODUCTS: Pure Prana PACKAGING: 3 oz. PET

Vemma Bod-e Rest Vemma Nutrition Company PRODUCTS: Weight Management PACKAGING: 3 oz. PET

PACKAGING: 12 oz. Glass

Sol Maté

Suavva Smoothies Sol Mate AG PRODUCTS: Sol Maté Original, Sol Maté Lemon/Lime PACKAGING: 330 mL Glass

Uncle Matt's Organic

Agro Innova Co

Uncle Matt's Organic, Inc.

PRODUCTS: Suavva Cacao Fruit Smoothies

PRODUCTS: Pulp Free Orange Juice, Apple Juice, Lemonade, Grapefruit Juice, Orange Juice with Calcium

PACKAGING: 10.3 oz. PET

PACKAGING: 12 oz. PET 60 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

Vemma Bod-e Shake Vemma Nutrition Company PRODUCTS: Meal Replacement PACKAGING: 1.85 oz. Pouch

Vemma Bod-e Thirst

Volcano Grenadine Burst

XENERGY

Zingiwell

Vemma Nutrition Company

Dream Foods International, LLC

XYIENCE

PRODUCTS: Hydration Beverage

PRODUCTS: Organic Grenadine

PRODUCTS: XYIENCE Xenergy Melon Mayhem & Tangerine Twister

PACKAGING: 3 oz. PET

PACKAGING: 100 mL PET

PACKAGING: 16 oz. Can

Zingiwell Healthalicious, Inc. PRODUCTS: The Original, Lemon, Mixed Fruits, Zingiwell Java Turmeric + Curcumin shot PACKAGING: 240 mL Glass, 70 mL Glass

Verve Energy Shot

Waiakea Volcanic Water

Vemma Nutrition Company

Waiakea Inc. PRODUCTS: Waiakea

PRODUCTS: Verve Energy Shot

PACKAGING: 1 L RPET, 500 mL RPET

PACKAGING: 2 oz. PET

Verve Zero Sugar

XL Energy Drink

West Coast Chill

Vemma Nutrition Company PRODUCTS: Energy Drink PACKAGING: 8.3 oz. Can

Zola Fruits of the World

XL Energy Drink Corp.

Zola Fruits of the World

PRODUCTS: XL Lime&Lemon Energy

PRODUCTS: Zola 100% Natural Coconut Water

PACKAGING: 8.4 oz. Can

PACKAGING: 17.5 oz. Can

Zenify

Joseph Company International, Inc.

Phi Drinks, Inc.

PRODUCTS: West Coast Chill

PACKAGING: 12 oz. Can

FOLLOW US ONLINE

PRODUCTS: Zenify

http://twitter.com/BevNET

PACKAGING: 8.4 oz. Can, 9.3 oz. Self Chilling Can

http://www.facebook.com/bevnetcom

VISO Beverage Company

WheyUP

ZICO

VISO Beverage Company

Shadow Beverages

ZICO Beverages

PRODUCTS: Vigor, Dynamo, Razor, Will, Star, Lightning, Snap Sport, Passion Sport

PRODUCTS: Protein+Caffeine, Grape, Orange, Berry

PRODUCTS: 1 Liter Chocolate ZICO

PACKAGING: 20 oz. PET

PACKAGING: 16 oz. PET

SUBSCRIBE TO BEVNET MAGAZINE

PACKAGING: 1 L Tetra Pak

www.bevnet.com/magazine/subscribe

NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 61

COMPANY CONTACT INFORMATION COMPANY

CONTACT NAME

ADDRESS

CITY

STATE

ZIP

PHONE #

WEB SITE

+RED Elixir

Michael Ball

145 Channel Pointe Mall

Marina Del Rey

CA

90292

310-822-1310

www.plusredelixir.com

Agro Innova Co

Joe Montgomery

553 Slippery Rock Rd

Weston

FL

33327

954-258-3994

Suavva.com

All In Beverage, LLC.

Kurt Reid

618 E. South Street

Orlando

FL

32801

866-958-3555

www.drinkagame.com

ALO Drink

Henry Chen

377 swift ave.

S. SanFrancisco

CA

94080

800-223-4438

Andale! Energy Drink Co LLC

Rodney Josephson

PO BOX 9484

Bakersfield

CA

93389

661-376-6282

www,andaleenergy.com

877-370-1795

www.AQUAhydrate.com

AQUAhydrate, Inc. AriZona Beverages USA, LLC

Jackie Harrigan

60 Crossways Park Drive West

Woodbury

NY

11797

516-812-0208

Drinkarizona.com

Avitae USA, LLC

Bryant Fox

8500 Memorial Dr

Plain City

OH

43064

614-973-6012

www.avitaeusa.com

BAI Brands, LLC

Ken Kurtz

1800 East State Street

Hamilton

NJ

08609

609-586-0500

www.drinkbai.com

Bare Nutrition, LLC

Camille Reith

P.O. Box 190

Monterey

CA

93942

831-998-8102

www.drinkCHIAVIE.com

Beyond 100% Coconut Water

RUSSELL LIPTON

1402/666 CHAPEL STREET

SOUTH YARRA

VIC

3141

+61419342455

beyondcoconutwater.com

Big Train

Tim Pisarski

25392 Commercentre Drive

Lake Forest

CA

92630

949-340-8820

www.BigTrain.com

Black Bear Energy, LLC

Ed Yasko

279 Walkers Mill Rd.

Bethel

ME

04217

877-325-2327

www.BlackBearB12.com

BODYARMOR Nutrition, LLC

BODYARMOR

Beverly Hills

CA

90210

310-424-5077

Boundary Waters Brands

Carleton Johnson

3440 Belt Line Blvd

St. Louis Park

MN

55416

612-308-2056

Boundless Nutrition

Trevor Ross

4020 S. Industrial Dr, #133

Austin

TX

78744

512-402-5772

Brands of Britain, LLC

Marie Christoffersen

2410 Camino Ramon, Ste 265

San Ramon

CA

94583

800-646-6965

C2O Pure Coconut Water,LLC

Adam Biggs

400 Oceangate #750

Long Beach

CA

90802

562-951-9709

www.c2o-cocowater.com

Cape Kingdom

Denise Whitney

7401 Wiles Road

Coral Springs

FL

33067

941-365-6349

www.buchulife.com

Celsius, Inc.

Irina Lorenzi

2424 North Federal Highway

Boca Raton

FL

33431

561-276-2239

www.celsius.com

Chameleon Cold Brew LLC

Chris Campbell

PO Box 4518

Austin

TX

78765

512-323-0345

chameleoncoldbrew.com

Chasing Rabbits, LLC

Sales Manager

P.O. Box 2937

San Rafael

CA

94912

415-485-1953

www.chasingrabbits.com

D-Plasma Corp

Dan O'Connor

1756 Riverside Dr.

Shakopee

MN

55379

612-998-3560

www.drinkplasma.com

Dox Solutions, LLC

Deborah Nunez

13031 Villosa Place

Playa Vista

CA

90094

702-561-7171

www.drinkdox.com

Dream Foods International, LLC

Harry Merzian

1223 Wilshire Blvd. #355

Santa Monica

CA

90404

310-315-5739

www.dreamfoods.com

Dream Products, LLC

Vincent Porpiglia

296 Ocean Blvd

N. Miami Beach

FL

33160

305-792-7900

www.drinkdreamwater.com

ESSENTIA WATER, INC.

Sales Department

22833 Bothell Everett Hwy

Bothell

WA

98021

877-293-2239

www.essentiawater.com

Evolution Fresh

Marianne Duong

2401 Utah Ave South

Seattle

WA

98134

206-318-3413

www.evolutionfresh.com

Exports USA, LLC

David A. Hoeft

10142 Hermosa Dr.

Indianapolis

IN

46236

317-489-2076

coyotedrinks.com

Fair Oaks Farms Brands

Anders Porter

1001 W. Adams Street

Chicago

IL

60647

312-624-9444

www.corepower.com

FIX Brands, Inc.

Justin Cerbone

2950 Buskirk Ave.

Walnut Creek

CA

94597

925-979-9574

www.yourdailyfix.com

FreshForward Beverages

Romano Palenzona

10540 NW 26 ST.

Miami

FL

33172

305-607-9090

www.spacho.com

Funktional Beverages, Inc.

Darrell Duchesneau

17413 FM 2920

Tomball

TX

77377

281-224-1865

mypurplestuff.com

Gastroceuticals, LLC

Maziar Ghodsian

9107 WIlshire Blvd

Beverly HIlls

CA

90210

310-461-1944

Flash-Water.com

Go Girl Energy Drinks

Cinde Dolphin

3689 Industrial

West Sacramento

CA

95691

916-372-0600

gogirlenergy.com

Goddess Energy Inc

Ron Pingrey

4703 Homestead Place

Matthews

NC

28104

704-953-1731

www.flirtdrink.com

Golazo, Inc

Mike Brown

714 East Pike Street

Seattle

WA

98122

206-682-4625

Good Life Beverages, Inc.

Dan Rumennik

440 East 6th Street #6C

New York

NY

10009

917-825-1784

62 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

www.JoiaLife.com

drinkbcalm.com

COMPANY

CONTACT NAME

ADDRESS

CITY

STATE

ZIP

PHONE #

WEB SITE

Hiball Energy

Todd Berardi

1862 Union St.

San Francisco

CA

94123

415-420-4801

www.hiballer.com

Honest Tea

Joanna Seiden

4827 Bethesda Ave.

Bethesda

MD

20814

301-652-3556

www.honesttea.com

HOTLIPS Soda

Lou Hijar

1432 SE 22nd Avenue

Portland

OR

97214

503-224-2069

hotlipssoda.com

Icelandic Water Holdings

David Casey

2862 Columbia St.

Torrance

CA

90503

424-201-6800

icelandicglacial.com

Imperial Integrative Health Research & Development

Paul Strong

470 Olde Worthington Rd., Suite 200

Westerville

OH

43082

800-832-3046

www.oxywater.com

In Zone Brands

Tyler Hartsook

2859 Paces Ferry Rd

Atlanta

GA

30339

678-564-3212

www.inzonebrands.com

Inko's Tea

Andy Schamisso

435 E. 70th St.

New York

NY

10021

212-472-7886

www.inkostea.com

Innovative Health Solutions

Randy Olshen

1767 South 5500 West

Salt Lake City

UT

84104

888-426-4104

www.h2ooverdrive.com

Joseph Co. International, Inc.

Scott Berger

1711 Langley Ave

Irvine

CA

92614

949-474-2200

www.westcoastchill.com

KeVita Sparkling Probiotic Drink

Bill Moses

6043 Olivas Park Drive

Ventura

CA

93003

888-310-6106

www.KeVita.com

Kids Healthy Foods, LLC

Jeff McClelland

6107 SW Murray Blvd, Ste 168

Beaverton

OR

97008

949-680-8006

www.kidshealthyfoods.com

Kudu Energy LLC

Bob Mattei

6688 Nolensville Rd

Brentwood

TN

37027

615-499-5878

www.kuduenergy.com

LifeAID Beverage Company, Inc.

Aaron Hinde

PO Box 761

Santa Cruz

CA

95061

888-558-1113

www.DrinkPartyAID.com

Limitless Group, LLC

Tanya Sam

4060 peachtree rd

atlanta

GA

30319

408-475-SHOT

www.LimitlessShot.com

Living Essentials

Brandon Bohland

38955 Hills Tech Drive

Farmington Hills

MI

48331

248-960-1700

LXR Biotech, LLC

Richard Ensley

4225 N. Atlantic Blvd

Auburn Hills

MI

48326

248-836-4393

www.eternalenergyshot.com

Mamma Chia

Janie Hoffman

PO Box 644

Bonsall

CA

92003

855-588-2442

www.MammaChia.com

MANYK Energy Inc.

Zach Zuppardo

14305 Corporate Way

Moreno Valley

CA

92553

951-288-5555

manykenergy.com

Marley Beverage Company

Kevin McClafferty

27777 Franklin Road

Southfield

MI

48034

602-751-4758

marleysmellowmood.com

mix1 beverage company

Kevin Conrad

5500 Central Ave

Boulder

CO

80301

480-980-5440

mix1life.com

Monster Beverage Company

Richard Hastings

550 Monica Circle

Corona

CA

92880

951-739-6200

Mr. Mo's Beverages, Inc.

Maurice Hakim

7641 Gumbo Limbo Ct.

West Palm Beach

FL

33412

561-691-9147

www.drinkmrmos.com

National Beverage Corp.

Nicole Cheifetz

8100 SW 10th Street

Ft. Lauderdale

FL

33324

954-581-0922

lacroixwater.com

Nawgan Products LLC

Tony Miano

34052 La Plaza Dr. Ste 201

Dana Point

CA

92629

623-521-0391

nawgan.com

NEO North America Inc.

Kiersten Slader

1322 2nd Street

Santa Monica

CA

90401

800-604-7051

www.poweredbyneo.com

neuro

Holly Trivan

501 Santa Monica Boulevard

Santa Monica

CA

90401

310-393-6444

www.drinkneuro.com

Northwest Neuro Ent., LLC

W. Roberts

6485 SW Borland Road

Tualatin

OR

97062

503-309-0125

www.next10energy.com

NOVO Organics, LLC

Jay Hanley

P.O. Box 2294

Nantucket

MA

02584

508-364-4166

www.drinknovo.com

Nuun & Company

Nathan Underwood

PO Box 3312

Seattle

WA

98114

206-219-9237

www.nuun.com

Oat Solutions LLC

Sales

4440 PGA Blvd. Suite 600

Palm Beach Gardens

FL

33410

800-641-4541

www.livesimpli.com

Oatworks

David Peters

411 West 14th St, 4th Floor

New York

NY

10014

212-504-2060

http://oatworks.com/

PBEV, LLC

Jeremy Friedman

2201 Jack Warner Pkwy Ste 3

Tuscaloosa

AL

35401

251-747-9111

www.killerbuzz.com

Peace Tea Beverage Company

Tony DeMatteo

550 Monica Circle

Corona

CA

92880

951-739-6200

Pearl Aqua LLC

Robbie Robertson

522 N. Elizabeth St.

Chicago

IL

60642

312-243-8806

PepsiCo

Abigail Greenheck

420 N 5th ST

Minneapolis

MN

55401

612-215-3504

Phi Drinks, Inc.

Adam Rosenfeld

1855 Industrial St, #110

Los Angeles

CA

90021

310-228-7754

thelivestressfreedrink.com

Popeye Energy

Paul Romo

41555 Cherry Street

Murrieta

CA

92562

760-583-3649

www.DrinkPopeye.com

Premier Nutrition

Jon Visser

188 Spear Street, Suite 600

San Francisco

CA

94105

713-449-4511

premierprotein.com

www.drinkpearlaqua.com

NOVEMBER/DECEMBER 2012 BEVNET MAGAZINE 63

COMPANY CONTACT INFORMATION COMPANY

CONTACT NAME

ADDRESS

CITY

Premium Healthy Spring Water, Inc.

Lou Savant

1866 Leithsville Road #310

Q Drinks

Jordan Silbert

QCK, LLC DBA HOIST

Kelly Heekin

Red Bull North America

STATE

ZIP

PHONE #

WEB SITE

Hellertown

PA

18055

610-748-0118

www.kiwaii.com

45 Main Street

Brooklyn

NY

11201

718-398-6642

QDrinks.com

270 W Mitchell Ave

Cincinnati

OH

45232

513-252-0605

drinkhoist.com

1740 Stewart St.

Santa Monica

CA

90404

310-393-4647

www.RedBullUSA.com

RELAXZEN

Fred Rudy

622 Kings Highway

Brooklyn

NY

11223

718-627-3555

www.bodyworksforme.com

RightSize Health and Nutrition

Randy Krebs

750 Oakwood Road

Lake Zurich

IL

60047

847-847-3102

www.myrightsize.com

Rising Beverage Co.

Pat Sanderlin

1375 Dove Street

Newport Beach

CA

92660

909-286-4507

www.activatedrinks.com

ROAR Beverages LLC

ROAR Beverages

310 New York Avenue

Huntington

NY

11743

631-683-5565

www.drinkroar.com

Rockstar Inc.

Rockstar Inc.

PO Box 27740

Las Vegas

NV

89126

702-939-5535

Runa LLC

Dan MacCombie

33 Flatbush Ave

Brooklyn

NY

11217

440-552-6832

www.runa.org

SAMBAZON

Greg Fleishman

1160 Calle Cordillera

San Clemente

CA

92673

949-498-8618

www.sambazon.com

Scheckter's Organic Beverages

Toby Scheckter

c/0 PSI Inc.

St. Paul

MN

55117

Shadow Beverages

Sam Jones

4650 E. Cotton Center Blvd.

Phoenix

AZ

85040

480-371-1071

www.shadowbev.com

SK Energy Shots LLC

Alyssa Richardson

575 Madison Ave.

New York

NY

10022

212-400-2200

www.skenergyshots.com

Sol Mate AG

Babak Alikaram

5, rue Heienhaff

Senningerberg

LU

L- 1736

+352267139 11

www.drinksolmate.com

Spindrift Beverage Co.

Bill Creelman

72A High St

Charlestown

MA

02129

617-899-6212

www.spindriftfresh.com

Synaptent LLC

Marek Wiszniewski

47 W. Polk St.

Chicago

IL

60605

888-679-6278

open1.com

TalkingRain Beverage

David Kearns

PO Box 549

Preston

WA

98050

630-631-2295

www.sparklingice.com

The Chill Group, Inc.

Russell Fager

PO Box 10369

Marina del Rey

CA

90295

855-552-4455

www.DrinkJustChill.com

The Double Cola Company

Megan Hallar

537 Market Street

Chattanooga

TN

37402

423-267-5691

www.double-cola.com

The FaVe Juice Company

David Kirkpatrick

The FaVe Juice Company

Middletown

NJ

07748

248-808-2585

www.favejuice.com

The Granny Squibb Co., LLC

Robin Squibb

259 Benefit Street

Providence

RI

02903

401-383-2474

www.grannysquibb.com

The Hain Celestial Group, Inc

Customer Care

4600 Sleepytime Drive

Boulder

CO

80301

800-351-8175

celelstialseasonings.com

True Drinks Inc.

Kevin Sherman

18552 MacArthur Blvd.

Irvine

CA

92612

303-862-2017

www.theaquaball.com

TumericALIVE

Jonathan Katzenberg

2323 Borden Ave.

Long Island City

NY

11101

347-460-0348

www.tumericalive.com

Uncle Matt's Organic, Inc.

Glen Garrity

PO Box 120187

Clermont

FL

34712

352-394-8737

www.unclematts.com

Varni Brothers / Noah's Water

Tony Varni

400 Hosmer Ave

Modesto

CA

95351

209-521-1777

www.noahswater.com

Vemma Nutrition Company

Lynn McGovern

8322 East Hartford Drive

Scottsdale

AZ

85255

480-289-0398

www.vemma.com

VISO Beverage Company

Tom Morrow

917 SW Oak Suite 310

Portland

OR

97068

503-984-1565

Waiakea Inc.

Ryan Emmons

801 South Grand Ave #1311

Los Angeles

CA

90017

855-WAIAKEA

www.WaiakeaSprings.com

Water Resources Group, LLC

Robert Emmons

84 Main St.

Cold Spring Harbor

NY

11724

800-376-4006

www.icebox-water.com

XL Energy Drink Corp.

Maja Sponring

521 5th Avenue

New York

NY

10175

212-594-3080

www.xl-energy.com

XYIENCE

Reuben Rios

1335 E. Sunset Road

Las Vegas

NV

89119

702-430-5478

www.xyience.com

ZICO Beverages

ZICO

2221 Park Place

El Segundo

CA

90245

310-379-9505

www.zico.com

Zingiwell Healthalicious, Inc.

Pit Tioanda

2275 Huntington Drive

San Marino

CA

91108

626-202-8770

zingiwell.com

Zola Fruits of the World

Kirsten Eldridge

1501-A Vermont St

San Francisco

CA

94107

720-890-8440

DrinkZola.com

64 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

www.schecktersorganic.com

The profits flow from America’s #1.*

The #1 selling refrigerated iced tea in America offers an exciting variety of flavors in various sizes. With 13 different 20-ounce drinks and 15 different pint-size flavors, Turkey Hill has something for all of your customers. So fill up today.

Visit us at booth #6294 at the NACS show!

Scan this QR Code with your smartphone to receive more information.

Contact the Turkey Hill Dairy Sales Department at 800-873-2479, or email: trela@turkeyhill.com l 2601 River Road, Conestoga, PA 17516 ©2012 Turkey Hill Dairy. *#1 refrigerated RTD tea, based on IRI sales data.

turkeyhill.com

PROMO PARADE

Promotions, events and specials for the industry

Bushmills Irish Whiskey Partners With Lowden to Create Handcrafted Whiskey Barrel Oak Guitars Bushmills Irish Whiskey, which has been handcrafted on the North Coast of Ireland for centuries, has partnered with world famous luthier, George Lowden, to create three special-edition guitars, handmade from barrel-oak used in the whiskey making process.

The guitars were presented to singer-songwriter Foy Vance and other artists as a thank-you for their participation in Bushmills Live, the handcrafted whiskey and music festival which took place at the Old Bushmills Distillery in June 2012, headlined by Snow Patrol.

The guitar-making process took more than three months. Each barrel stave

had to be carefully sanded by hand then painstakingly glued together to create panels which were then hand-cut by George Lowden to guitar templates he has been using for almost 40 years. Finally, the team at Lowden assembled the guitars, incorporating the whiskey barrel oak into traditional Lowden body designs.

Bushmills Master Distiller, Colum Egan, said: “To see barrels that have housed our whiskey being used in this way is remarkable.

Their creation celebrates the handcrafted qualities at the heart of both Bushmills and Lowden Guitars and I want to thank George and his team for making them.”

Kara Goldin, CEO & Founder, HINT, Inc. Named One of Ernst & Young LLP’s 2012 Entrepreneurial Winning Women Kara Goldin, CEO & founder of HINT, Inc. was named one of Ernst & Young LLP’s 2012 Entrepreneurial Winning Women. Kara is one of 11 exceptional women entrepreneurs recognized throughout the country with this prestigious award.

“I am extraordinarily honored to be recognized by Ernst & Young and be a part of this dynamic group of women,” said Kara

Goldin. “The Entrepreneurial Winning Women program is an investment in the future of women entrepreneurs.”

Now in its fi fth year, the Entrepreneurial Winning Women program is a national competition and executive leadership program that identifies a select group of high-potential women entrepreneurs whose businesses show real potential to scale — and then helps them do it.

66 BEVNET MAGAZINE NOVEMBER/DECEMBER 2012

Jose Cuervo Unveils “Tradicional Mural Project 2012”

Jose Cuervo Tradicional – Mexico’s No. 1 super-premium tequila with the same recipe used in Cuervo’s original tequila in 1795 -- last night unveiled 10 murals as part of its Tradicional Mural Project 2012. The murals were created by 10 legal drinking age artists from across the United States commissioned by the brand to create original artwork inspired by their passion for Latin culture. The murals will be showcased on Facebook starting January 15 through February 28, 2013 for public voting, with one winning artist earning a $15,000 grant as well as a $15,000 donation to the community that they represent.

All consumers 21 years of age and older will be eligible to vote at the Jose Cuervo Tradicional Mural Project’s Facebook page at www.facebook.com/losamigosdejose.

“We were very impressed by the beauty and diversity of each of the murals as well as the depth of talent of our Jose Cuervo Tradicional Mural Project artists,” said Roy Danis, Managing Director, Jose Cuervo International. “It was very interesting to see how each artist interpreted and celebrated the meaning of being a Latino in the US and how Jose Cuervo Tradicional was a part of that, especially within Mexico’s history and culture” Jose Cuervo Tradicional gave the artists license to interpret the influence of Latino heritage in the United States. The artists utilized various painting techniques and explored themes such as music, education, the importance of family and how all of these aspects have contributed to the nation’s melting pot. The 10 artists, selected on the basis of submitted art portfolios and a personal essay, were given thirty days to complete their murals. The states and regions represented by the Tradicional Mural Project 2012 include New York, Northern California, Southern California, Florida, Illinois, Arizona, Texas, Washington, Georgia and Nevada.