Beverage Spectrum Nov-Dec 2006 by BevNET.com

NOVEMBER – DECEMBER 2006

THE ENVIGA EFFECT

Coke unleashes a wave of functionality.

ALSO THIS ISSUE: NEW AGE BEVERAGES NACS & EXPO EAST REPORT FANCY FOODS WEST PREVIEW

NOVEMBER – DECEMBER 2006

Cover Story

26 // TRENDS 2007:

vol.

4 // no. 9

Features

THE ENVIGA EFFECT

32 // STILL NEW AGE An oxymoron, but a profitable one

How many functions will fit in your cooler?

34 // NACS ROUNDUP What happens in Vegas...is pictured

Departments

in this magazine. 8 // BEVSCAPE LeNature’s Scandal // Holiday Gifts //

36 // EXPO EAST ROUNDUP

Coke and Eepybird nest together

What happens in Baltimore...is also pictured here.

14 // CHANNEL CHECK 38 // FANCY FOODS

End the year with Beer

WEST PREVIEW 18 // NEW PRODUCTS

Where to go if you left your

The Cachaça Cha-Cha

(all-natural, hormone free) heart in San Francisco

40 // PROMOTION PARADE Best. Job. Ever. From Chivas.

Columns

4 // THE FIRST DROP Still Hoping for Super Fuel 6 // PUBLISHER’S TOAST Call for Service 24 // BevNET.com’s VIEW Ten Years After 42 // GERRY’S INSIGHTS An Exciting Year

NOVEMBER – DECEMBER

200

\\ BEVERAGE SPECTRUM

THE FIRST DROP

Still Hoping for

Super fuel

o, I’m discussing this new Enviga stuff with a strapping store owner-type-of-guy at NACS, talking up its potential to make you burn a few extra calories and the fact that it doesn’t taste half-bad, and he looks at me and says, “Yeah, but here’s the problem: I need five of ‘em.” He had a point. He was a big dude. A can or two of Enviga wasn’t going to do the trick for him. It won’t do the trick for most of us (except get us wired on about 300 mg of caffeine), in fact. But we want it to, desperately. No matter how strong any functional product claims to be, it’s belief that is the strongest function of all – the belief that holding a product will make us happier, thinner, more sophisticated, more intelligent, less nervous. Which speaks well for Enviga and its ilk. Because even if Enviga works the way it’s supposed to, in the long run, what does the fact that you’ve burned about 60 calories really mean? I recently purchased a bag of chocolate-covered cherries at Peet’s Coffee. Two of them are a little more than 60 calories. As of this sentence, I’ve eaten nine of them. (Rest assured, they were all delicious.) That’s a lof of Envigas. But it’s what their functionality represents to the drinker that will make the sale. That doesn’t mean that Enviga itself is going to be the first breakout mainstream functional

product that has an effect beyond waking you up or making you less thirsty. But we think that Coke’s seeming willingness to cannonball into the pool of functional beverages indicates a major shift in the way beverage marketers understand consumer desire. Consumers will give wide latitude to beverage marketers in terms of the claims they make about products. Right now, even the most unlikely claims (You know what they are…) are supportable financially not just because they might taste good, but because they soothe our aspirations. (Well, most of our aspirations, anyway. To me, most of the really good effects are going to be tough to pull off. For example, aside from the increased alertness that comes from full-on caffeination, no one has actually come up with a smart drink. And I’ve always wanted products that would give me superpowers -- my wish for “telepathy tea” has been unheeded by even the quirkiest natural foods providers, who seem more interested in turning hemp seeds into milk – or, at least, could make me taller.) But we believe that, down the road, as products are sorted not just by flavor, but also by potential physiological effect, the ones that actually work will eventually become important success stories. Look at energy drinks and, to a lesser extent, sports drinks: at the most basic level, they

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

200

work. They wake you up, they hydrate you better. They’re also, in that vein, among the biggest recent success stories in the beverage industry. So Enviga, and the products that are sure to follow it, is a glimpse of one possible future for the beverage industry, and it’s the chief component of our cover story on trends that will be of interest in the year to come. We’ve also got a glimpse of Fancy Foods West, a show of increasing importance, and some suggestions for stocking a contemporary New Age cooler, along with the usual columns and other departments. In addition, we’d love to hear from you in the coming year. For example, if our Trends story doesn’t go far enough, we’d be happy to discuss it over another of our favorite functional beverages, one which we’re convinced make us much smarter, indeed: the Martini.

PUBLISHER’S TOAST

ADVERTISING 1123 Broadway Suite 301 New York, NY 10010 ph. 212-647-0501 fax 212-647-0565

EDITORIAL 1 Mifflin Place Suite 300 Cambridge, MA 02138 ph. 617-715-9670 fax 617-715-9671

PUBLISHER

Do Some Good

Barry J. Nathanson bnathanson@bevspectrum.com EDITORIAL DIRECTOR

t’s that time of the year when we step back and reflect on all that has transpired. Sometimes it’s hard to find the good, with all the tumult and unrest in society. Conflict, polarization and greed, both corporate and personal, are the headlines of the news stories we are confronted with every day. Pundits opine that we’ve lost our moral compass. Sometimes it’s hard to disagree. Hopefully this election, with its emphatic message for change, will be the flashpoint to get us back on track and bring us together. With all that said, I’m still the eternal optimist. I see all that is good and is yet to be accomplished. While I can’t speak for society and the economy in general, I look at our industry as a reflection of what can be done. It is in this view that I claim that it is incumbent upon the beverage retailers, marketers and distributors to take leadership roles within their communities. We are a high-profile industry and we must act accordingly. It is imperative that we take the initiative in developing products that help reduce obesity and the other health issues that plague our populace. I implore you to get involved with causes on both the local and national levels. I am always heartened when I see beverage companies sponsor breast cancer and AIDS walks, Operation Smile, and other important charities. Help those people who protect the environment. You could start with more eco-friendly packaging! There are plenty of alternatives to overfilling our landfills. Help your employees by making your facilities healthy and safe. Individually and as a business, choose an organization and get

involved. Chains that support local charities and children’s programs are performing good works. It’s a win-win, though, because the fact that you’re increasing your visibility and credibility doesn’t hurt, either. Smaller businesses can sponsor a Little League, basketball, or soccer team. Keeping kids busy and participating in sports accomplishes a myriad of positive goals. In 2005, the response to Hurricane Katrina on the part of the bottled water industry was tremendous. But what have we done in 2006? What do we have planned for 2007? Let’s expand into need-based food programs and other relief efforts. Our industry has been exemplary in its support of our communities and various causes, but there is still much more we can do. The holiday period brings out the best in everyone. Make that feeling last all year long. Doing good is the right thing to do. And to all of you, let me wish you a healthy, happy and prosperous New Year.

John Craven craven@bevnet.com EDITOR

Jeffrey Klineman jklineman@bevnet.com ASSOCIATE PUBLISHER

John McKenna mckenna@bevnet.com ART DIRECTOR

Matthew Kennedy mkennedy@bevnet.com PRODUCTION MANAGER

Adam Stern astern@bevnet.com BUSINESS MANAGER

John Schinn jschinn@bevnet.com SUBSCRIPTION INQUIRIES

Adam Stern astern@bevnet.com 617-715-9679 ARTICLE REPRINTS

500 copies or more FosteReprints Kelly Ganz kganz-blieden@fostereprints.com 800-382-0808 x142 BEVERAGE SPECTRUM PUBLISHING INC. CHAIRMAN

John F. (Jack) Craven jack@bevnet.com PRESIDENT Barry J. Nathanson, Publisher

John Craven craven@bevnet.com Beverage Spectrum is published 9 times a year by Beverage Spectrum Publishing, Inc. Beverage Spectrum Publishing, Inc. is a wholly owned subsidiary of BevNET.com, Inc., 1 Mifflin Place, Suite 300, Cambridge, MA 02138

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

2006

OUR TRADE WINDS ALSO CARRY PROFITS. Every size of FIJI Water is enjoying double-digit growth.* Behind every bottle is an equally exceptional consumer; not only do they purchase gourmet items when they shop, but they’re so loyal — they’ll go out of their way to find FIJI Water.** So adding FIJI to your shelf is a clear solution for profitability.

Natural Artesian Water 1.800.426.3454 www.fijiwater.com *IRI 5/28/06

BEVSCAPE

WHAT’S HAPPENING ACROSS BEVERAGES

MESSY SALES PROSPECTS Here’s something that might end up a boon for your sales – of both Coke and cleaning products! Remember that great Internet video from those two nerdy, Devo-looking guys from EepyBird.com, the one where they drop Mentos into Diet Coke and create a display that mimics the fountains at the Bellagio hotel in Vegas? Turns out that after Coke ham-handedly tried to distance itself from the video’s good, clean fun early on, despite the fact that even the ghost of Robert Woodruff could have told them they had a minor pop-culture sensation on their hands, they finally managed to do what Coke does best: co-opt good clean fun for corporate ends. Check out the latest EepyBird video on YouTube.com, and you’ll see the same two nerdy dudes exploding an even bigger Mento-and-Diet-Coke sodascape – only then, they dare viewers to conduct a Coke experiment of their own via the “Poetry in Motion” video challenge. Meanwhile, go to the EepyBird home page and you’ll see a link to the ever-corporate Coca-Cola Co. Web site, as well as a big, fat thank you to Coke and Mentos. So if you see a spike in case sales of 2 L Cokes – followed by a spike in Ajax and mops, you’ll know the reason. Meanwhile, why not conduct an experiment of your own? See if Enviga really works. Then let us know….

BY GEORGE, LET’S GIVE KILLIAN’S A FACE-LIFT! Coors is taking another shot with its oft-befuddled Killian’s Irish Red. The brand, a kind of Irish-derived mainstream super-premium along the lines of Michelob, has seen sales drop and excitement ebb since its heyday in the mid-1990s. Things have gotten so bad, according to Coors representatives, that the company plans to “reintroduce” beer drinks to the brand, which, despite its Irish orientation, is produced largely in the Coors factory in Golden, Colo. Killian’s, which still receives a fair amount of advertising support, has been caught in a slipstream between increasing craft and import consumption – a place it once occupied before getting crowded out by a more refined market – and declining returns for almost all massproduced domestic beer brands. But one idea, according to an interview Coors Spokeswoman Aimee Valdez had with the Denver Post, is to sharpen the brand’s image as a lighter but still prestigious trade-up. May we suggest calling it a “Wild Irish Rosè?”

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

200

7-ELEVEN TO FRANCHISEES: NO DEALING COCAINE As predicted, Cocaine is already feeling some pain. The negative press campaign against the non-narcotic energy drink – manufactured by Las Vegas-based Redux Beverages – continued strongly throughout the fall, while retailers remained skeptical. One major blow against the supercaffeinated (nearly 300 mg) beverage came from the West Coast, where negative calls to convenience giant 7-Eleven Inc.’s corporate offices over the decision by a single San Josearea franchisee to stock the product resulted in a company-wide advisory against carrying it.

DON’T DEW IT ANY MORE Get ready for a new marketing push from stalwart citrus CSD Mountain Dew. After 13 years, “Do the Dew,” a central theme to ads that featured biking, skiing, and more extreme sports, is being given its walking papers, reports Brandweek. The new plan will focus on “fueling the core.” With energy drinks and other products moving into the extreme space once held by Mountain Dew – still one of the few CSD’s to show continued sales growth in what are tough times for top brands all around – parent company PepsiCo is turning to its ad agencies to come up with a new answer. It also looks like the fizz is leaving the energy soda business. PepsiCo has decided to move the emphasis on its Mountain Dew offshoot MDX to market it as a CSD infused with energy, rather than as an energy soda. The company plans to run ads with a tag line of “Stay Sharp.” Which is not, we believe, a reference to the distinctions the company is drawing with regard to these particular marketing approaches.

THE TROPIC OF CORONA LIGHT. THE #1 IMPORTED LIGHT BEER IN AMERICA. With estimated total sales of over 10.5 million cases for 2006, we thank you for helping us make Corona Light the #1-selling imported light beer.

Corona Light (millions of case sales*) Gambrinus Total United States

1994 .5M 1.0M

*Source: Industry and company-reported volumes. ÂŠ The Gambrinus Company, San Antonio, TX 78232

2005 6.2M 9.6M

BEVSCAPE HOLIDAY READING The time has come again… for those employees you’ve ignored for so long, the ones who won’t get a Christmas bonus, or just for those who you’re pretty sure actually read stuff…or for those bosses for whom you don’t want to get anything more expensive than a book… we’ve got the answer.

• Amibitious Brew: The Story of American Beer By Maureen Ogle $25.00 This is the story of the growth of the giant companies on the American beer landscape – as well as the families that grew them, families like the Busch and Schlitz clans. It’s also the story of how immigrant Germans began to succeed in America by moving the country’s taste from Englishstyle brews to the bitter British pilsner. Most of all, though, it’s a story about beer, and that makes for a delicious read.

• Brewing up a Business Sam Calagione $16.95 Subtitled Adventures in Entrepreneurship from the Founder of Dogﬁsh Head Craft Brewery, this is more than just the story of the highly-regarded craft beer, and the crazy adventures of Calagione, who gets himself into more than one dangerous situation in the wilds of Delaware and Philadelphia, it’s also an apocryphal field manual on how good ideas can be turned into money-making businesses through hard work and creative thinking. Which is what we’d all like to do. And for the ones who can’t make it through a whole book…

• CocktailSmarts $24.95 Edited by Charles Hardwick, a veteran New York City bartender, CocktailSmarts is a board game that features question and answer cards, coasters with recipes, a cocktail tips guide and a score sheet for competitive cocktail lovers. Competitors can pick a card and discover: What’s Triple Sec? What country did gin come from? What’s in a White Lady? What’s the primary alcohol in a Bronx Cocktail? CocktailSmarts is created by SmartsCo, a San Francisco-based publisher that is also the creator of the top-selling WineSmarts, which star chef Mario Batali called “the greatest game ever!”

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

200

WHO’S THAT HANDSOME FELLOW WITH THE SECRETARY OF STATE? Why, it’s Sambazon’s own Ryan Black, accepting the Secretary of State’s Award for Corporate Excellence. Sambazon received the annual award for its efforts to promote sustainable development in the Brazilian Rainforest, while improving conditions of the indigenous population of the Rainforest by marketing the açai berry.

EXECUTIVE MOVES Constellation Brands, Inc. announced that Executive Vice President and Chief Financial Officer Tom Summer plans to retire from his position in May 15, 2007. Brad Redenius, general manager of Judge & Dolph distributors in Peoria, IL has been promoted to Vice President, General Sales Manager of Griggs, Cooper & Company. Both are part of the Wirtz Beverage Group. The American Beverage Association elected John E. (Jack) Pelo, president and chief executive officer of Swire Coca-Cola, USA, as Chairman of its Board of Directors. Other ABA officers elected were Dawn Hudson, President of Pepsi-Cola North America, as Vice Chair, and Larry Young, President and CEO of Cadbury Schweppes Bottling Group, as Treasurer. Castle Brands Inc., promoted Robert A. Battipaglia to Vice President Sales – Eastern Region. The p.i.n.k. Spirits Company has named veteran distilled spirits executive Lonnie Charleson as Executive Vice President, Sales. Pernod Ricard USA appointed David Jackson as Vice President, Distribution Strategy. August A. Busch IV was named President and CEO of the Anheuser-Busch Cos., Inc. effective Dec. 1, 2006. Centerra Wine Company announced the appointment of Oren Lewin to the position of Senior Vice President of Marketing for premium wines. August A. Busch IV The National Beer Wholesalers Association (NBWA) announced that Betty Buck, president and owner of Buck Distributing Co. Inc. in Upper Marlboro, Maryland, will be its 2006-2007 Chairman of the Board. Buck is the first female to hold the prestigious post of NBWA Chair. Aldo Madrigrano, president of W.O.W. Distributing Co. Inc. in Sussex, Wisconsin, was named Vice Chair.

BEVSCAPE FRESH START AT JANA The picture is getting a bit clearer now for the direction of the high-end Croatian water brand Jana. Responsibility for importing the finely-balanced – but struggling – artesian water, bottled and sourced at an eponymous spring along the so-called “Balkan Riviera,” has been assumed by Jana North America, a new company owned by the brand’s Croatian parent, Agrokor. Jana, long a dominant brand in its home country, has spent the past two years struggling to gain shelf space alongside other elite water brands like Voss, Evian and Fiji in the New York market, according to Momir Stojnovic, the vice president at Jana North America. Without New York, plans for national expansion were also in trouble. But all that has changed now, according to company executives. “We’re excited that Agrokor has decided to invest and create the company,” Stojnovic said. “They’ve been in the water business for 175

years, and they’re making the effort themselves because they didn’t want to subcontract out. They wanted to control their own destiny and really start bringing it into this country.” Jana North America took over from Creative Enterprises, which had the importation rights to Jana and also marketed Jana Skinny Water – a Super Citrimax-enhanced appetite suppressant product – made with Jana water. Creative, run by Michael Salaman, has left New York City for Pennsylvania, where it will concentrate on finding a domestic source for its product. “The focus of our company is Skinny Water,” Salaman said. “There really were two products, and we were just too de-focused to do them both.”

SCANDAL IN LATROBE LeNature’s Closure Tells Sordid Tale It didn’t quite have the sturm und drang of Gomorrah, but there were, nevertheless, plenty of biblical references contained within the sudden implosion of Pittsburgh-area water company LeNature’s, Inc. In late November, the company laid off 238 workers and stopped producing its water, tea, and juice lines, apparently in anticipation of a final liquidation. A guardian from Kroll Zolfo Cooper LLC, a crisis management and turnaround firm appointed to manage LeNature’s, was not holding out hope for its survival. The fast demise of the company, which had recently leased a massive secondary bottling facility in downtown Phoenix, began with revelations made during investor lawsuits over owner Greg Podlucky’s unwillingness to sell the business to larger companies. It turned out that at least part of that reluctance was due to fears that purchase offers would invite scrutiny of the company’s financial records. Those records were shaky, indeed. LeNature’s self-reported fast growth had made it a juicy takeover target; unfortunately, that growth was also just plain made up, according to investigators. What had been reported sales of $275 million in 2005 turned out to be closer to $20 million, while the company had accrued $728 million in debt, according to filings from Kroll Zolfo. During late October, the company’s Latrobe, PA facility was shuttered to its executives as part of the dispute. Podlucky and his officers, including several other family members, were locked out. But with the clock ticking on the arrival of the Kroll Zolfo custodian appointed to handle the business in their absence, Podlucky started destroying court-protected evidentiary financial records, according to affidavits filed in the case. Employees reported seeing the shredding of dump trucks’ worth of documents, and Podlucky and his bodyguard running back and forth to the shredder with even more documents.

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

200

But the really damning finds came when federal investigators opened up a secret room in the Latrobe plant, turning up safes filled with gemstones and watches, according to bankruptcy records. The postal service has now added an investigative team on-site at LeNature’s, searching for evidence of mail and wire fraud. As authorities and investors trace the money, they can’t help but wonder how much of it ended up in Podlucky’s massive, still-under-construction home in exclusive Ligonier Township, one that was designed to include a hockey rink, swimming pool and 5-car garage. Podlucky, a devout Christian, had also filed plans to build a $20 million church near the plant. As of Dec. 1, Podlucky had not responded to media calls for comment, and the state of Pennsylvania was preparing to help retrain laid off workers.

NOVEMBER – DECEMBER

200

\\ BEVERAGE SPECTRUM

Channel Check

november – december 2006 Brand

SPOTLIGHT CATEGORY

BUD LIGHT

Change vs. year earlier

$1,351,898,496

1.1%

BEER

BUDWEISER

$760,035,072

-8.4%

52 Weeks ending 10/8/2006 leading brands

MILLER LITE

$708,737,664

-1.4%

COORS LIGHT

$608,988,672

2.1%

If there’s one product that’s entered the Top 40 with a bullet, it’s Heineken Premium Light, which has sold nearly $40 million in these channels since its inception earlier this year – and it’s about $10 million behind that of stablemate Amstel Light, which is only showing small cannibalization. On the domestic side, Michelob Ultra continues to slide, while Bud Select is growing, but at a slower pace now that it’s better established. The question for your future: will new light beers or light beers masquerading as specialty beers eventually win out? SOURCE: Information Resources, Inc.Total food/drug/mass excluding Wal-Mart

TOPLINE CATEGORY

VOLUME

52 Weeks ending 10/8/2006

CORONA EXTRA

$477,899,168

7.7%

HEINEKEN

$295,899,744

9.9%

NATURAL LIGHT

$289,362,432

1.9%

BUSCH LIGHT

$206,925,680

3.8%

MICHELOB ULTRA LIGHT

$203,301,296

-10.8%

MILLER HIGH LIFE

$174,282,224

-3.9%

MILLER GENUINE DRAFT

$173,174,672

-9.8%

BUSCH

$169,518,304

-2.2%

BUDWEISER SELECT

$131,110,608

34.4%

CORONA LIGHT

$120,544,992

11.0%

KEYSTONE LIGHT

$94,039,224

4.2%

NATURAL ICE

$85,114,392

4.5%

TECATE

$81,972,104

6.0%

MILWAUKEE’S BEST LIGHT

$80,786,640

-6.0%

MICHELOB LIGHT

$76,470,368

-11.1%

COORS

$63,571,044

-11.8%

MILWAUKEE’S BEST

$62,657,232

-10.5%

ICEHOUSE

$57,957,968

-4.4%

MODELO ESPECIAL

$51,002,492

32.4%

PABST BLUE RIBBON

$50,015,940

3.1%

LABATT BLUE

$48,819,060

-6.2%

CSD’s $14,179,827,810 +0.8%

ENERGY DRINKS $597,277,700 +47.8%

BOTTLED WATER $4,451,280,000 +14.6%

SPORTS DRINKS $1,558,809,000 +12.8%

BEER $8,827,156,480 +1.8%

TEA/COFFEE $1,121,302,000 +23.4%

BOTTLED JUICES $3,492,708,000 +0.6% 14

Dollar Sales

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

2006

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

Channel Check

november – december 2006

RTD TEA

Dollar Sales

Change vs. year earlier

AriZona

$257,494,300

27.7%

Lipton

$135,779,100

204.6%

Snapple

$106,443,600

Diet Snapple

$84,481,980

Lipton Brisk

$81,492,890

3.7%

Lipton Iced Tea

$50,160,480

20.8%

Nestea

$33,231,240

142.8%

Private Label

$29,576,210

10.3%

Nestea Cool

$27,907,510

-52.6%

SoBe

$14,535,760

-0.1%

CSDs

Dollar Sales

Change vs. year earlier

Coca-Cola Classic

$1,916,843,591

-2.0%

Pepsi

$1,558,906,797

-2.0%

9.2%

Diet Coke

$1,190,024,536

0.2%

-2.8%

Diet Pepsi

$800,031,951

-0.5%

Mountain Dew

$737,631,918

2.6%

Dr Pepper

$593,148,780

1.9%

Sprite

$590,439,900

-0.7%

Caffeine Free Diet Coke

$351,414,685

-8.3%

Diet Dr Pepper

$276,740,220

2.9%

Diet Mountain Dew

$244,836,722

9.8%

Heading Up: Nestea

52 Weeks through 10/8/06 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

Heading Up: Diet Mountain Dew

SPORTS DRINKS

CANNED JUICE DRINKS

Dollar Sales

Change vs. year earlier

$38,820,490

-16.5%

Dollar Sales

Change vs. year earlier

52 Weeks through 11/4/06 SOURCE: AC Nielsen/Citigroup Total U.S. food/drug/mass

Gatorade

$688,671,900

7.3%

Minute Maid

Powerade

$192,393,300

6.8%

Minute Maid Light

$35,740,600

-20.7%

Gatorade Frost

$141,242,800

7.1%

Hawaiian Punch

$27,221,870

-13.1%

Jumex

$26,572,670

6.5%

Tropicana

$20,920,970

0.9%

Kerns

$20,061,840

-4.3%

Gatorade All Stars

$102,503,200

18.8%

Gatorade Rain

$101,231,800

N/A

Gatorade X-Factor

$95,590,250

4.7%

Gatorade Fierce

$89,809,760

-12.9%

Country Time

$10,864,810

-5.8%

Gatorade Xtremo

$17,769,330

-22.5%

Jugos Del Valle

$10,788,150

16.5%

Gatorade Ice

$15,378,530

-37.8%

Private Label

$8,159,064

-9.2%

Powerade Option

$14,933,740

332.1%

Tropicana Sugar-Free

$7,699,248

65.9%

Heading Up: Powerade Option

52 Weeks through 10/8/06 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

Heading Up: Tropicana Sugar Free

CONVENIENCE/PET STILL WATER

ENERGY DRINKS

Dollar Sales

Change vs. year earlier

52 Weeks through 10/8/06 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

Dollar Sales

Change vs. year earlier

Aquafina

$481,691,700

17.3%

Red Bull

$261,775,900

22.1%

Private Label

$479,086,800

21.3%

Monster Energy

$81,482,200

118.2%

Dasani

$408,601,400

21.3%

Rockstar

$66,544,100

76.1%

Poland Spring

$238,702,100

22.6%

Full Throttle

$40,489,760

131.9%

Propel

$193,110,400

9.9%

SoBe No Fear

$31,977,190

81.3%

Arrowhead

$161,414,200

15.2%

Amp

$22,806,050

20.5%

Glaceau vitaminwater

$141,140,300

144.7%

SoBe Adrenaline Rush

$18,887,170

-7.5%

Dannon

$135,377,500

-13.4%

Tab Energy

$11,445,890

N/A

Deer Park

$127,523,000

21.8%

Monster Energy XXL

$4,781,691

1,131.3%

Crystal Geyser

$91,365,210

7.4%

Private Label

$4,692,075

N/A

Heading Up: Glaceau vitaminwater

52 Weeks through 10/8/06 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

2006

Heading Up: Monster Energy XXL

52 Weeks through 10/8/06 SOURCE: Information Resources Inc.Total food/drug/mass excluding Wal-Mart

NEW PRODUCTS size servings of the French Rabbit Chardonnay, Pinot Noir and Merlot varietals. Both the red and white Family Reserve blends that will retail for $13.99 each. The convenient 500 mL containers offer the same fine quality French wine as the larger 1 L ePods. The smaller size, which will retail for $5.99, holds more than three glasses of wine, making it ideal for those who enjoy a glass or two of wine with a friend. The packaging features the same benefits as the 1 L, it’s lightweight, shatterproof, and easy to transport, open, and serve. For more information, call (212) 682-2293. Beauzeaux is a new red wine blend made from eight different varietals, including Zinfandel and Syrah, small amounts of Petite Sirah, Charbono, Grenache, as well as Lagrein, a red grape variety mentioned in the 17th century records of a Benedictine monastery. Beauzeaux is bottled with a striking “four act” label – each of the four labels features an illustration of a whimsical French juggler in different positions. Each bottle comes with four easy-to-learn parlor tricks – perfect pizza night entertainment for wine lovers and their friends. Beauzeaux is offered nationally at a suggested retail price of $9.99. For more information, call (707) 254-0465.

Water From a new Health and Wellness division at Special K comes Special K20 Protein Water, a new flavored water delivering 5 grams of protein per 16 oz. bottle. With 50 calories each, the three flavors are Strawberry Kiwi, Lemon Twist and Tropical Blend. The retail price for four PET bottles is $5.99. Say hello to Fred, a new flask-shaped bottled water currently available in New York City and Brooklyn, but expected to be distributed nationally in the coming year. Priced at $1.75 for a 20 oz. bottle, Fred comes in a plastic, flat container and is available via www.fredspot.com. For more information, call (212) 230-1800.

Wines A.V. Imports has added Beronia Tempranillo Rioja to its González Byass portfolio. Packaged with bold red graphics that stand out in any display, the 2003 vintage boasts an intense plum color and ripe cherry nose. This product has been available since September with a suggested retail price of $10.99. For more information, contact A.V. Imports at (813) 248-6500. A.V. Imports will also introduce a cream sherry, Solera 1847, from Gonzalez Byass, a winery that is regarded as one of the finest producers of sherry, including the world famous Tio Pepe. Solera 1847 is distinctive with a light mahogany color and ripe raisin and fig flavors. Offering the slightest hint of toffee on the finish, this cream sherry is an ideal accompaniment to cheese, foie gras and desserts. At 18 percent alcohol, the Solera 1847’s suggested retail price is $15.99. For more information, contact A.V. Imports at (813) 248-6500. Boisset America has introduced three new products for its line of Tetra-Pak wines: French Rabbit Family Reserves in red and white – a blend of six different grapes – and a line of 500 mL ePods, which are half-bottle

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

CSDs Ardea Beverages has launched a pair of new products in its airforce Nutrisoda line: Slender is a pink grapefruit- and guava-flavored soda that features Super Citrimax as an appetite suppressant. This product will be line-priced with other airforce Nutrisodas. It has also re-launched Immune. Immune is a nutrient-enhanced soda with vitamins, minerals and amino acids that help boost the immune system to defend against fall and winter ailments, including L-arginine, which supports the body’s immune system through enhanced T-cell function, Zinc, Bvitamins and Folic Acid. These products are line-priced with other airforce products. Also

2006

from airforce Nutrisoda come new 4-Packs of all of its flavors: Immune, Calm, Focus, Radiant, Flex, Energize and Slender. The 4-packs will be priced at $6.99. For more information call (612) 677-1717.

as well as mini coolers, racks and suction cup shelf holders. For more information, call (914) 925-9100. National Beverage Corp. is launching Rip It Chic, an extension of its Rip It line “created by women for women.” It will come in two pun-filled sugar-free flavors, Berry In-O-Scent and Sin-A-Man, in a unique can design that features sanitary foil over the lid. With a suggested price of $1.49 to $1.99, this 12 oz. sleek-can product is being distributed nationally. For more information, call National Beverage at (954) 581-0922. From the folks at the Coca-Cola Co. comes a new Full Throttle line extension, Full Throttle Blue Demon Energy Drink. With a blue color and a blue can, this drink is aimed at males aged 20 to 30. Based on the image of a Mexican movie legend named Blue Demon, this product has bi-lingual packaging and is flavored with blue agave. It comes in 16 oz. aluminum cans and will be line-priced with other Full Throttle offerings. For more information, call Coke at (770) 565-5440.

Energy Drinks Hydrive, an energy drink introduced in July, has added a new flavor, Hydrive Pomegranate to its three initial offerings. Specially formulated to give a sustained boost of energy, Hydrive does not have the sugar spike and intense sweetness of most other energy drinks. With more caffeine than Red Bull, but with only 5 grams of carbohydrates per bottle, it alleviates the crash and the jitters. Offered in a re-sealable bottle, Hydrive Pomegranate’s suggested price is $1.69 to $1.99. Retailers receive attention-grabbing cooler decals, shelf strips and shelf talkers

Malternatives

NEW DRINK REVIEWS

From the ever-creative malternative makers at Smirnoff comes a new flavor, Smirnoff Twisted V Arctic Berry. Smirnoff Arctic Berry became available nationwide as of October 1, 2006 and costs $6.99 per 6-pack. For more information, call (212) 714-1280.

Fred Water Hydrive Pomegranate Red Bull 12 oz. Shock Coffee Jolly Rancher Soda

Juice

Red Rock Ginger Ale AriZona Pomegranate Green Tea Energy

Sambazon, the leading global supplier of the Amazon Superfood Açaí berry, has launched a new organic açaí juice, Purple Power, a pure blend of acai and blue agave. Purple Power will be available in single serving 10.5 oz. bottles and sold in the produce section of grocery stores nationwide. The açai juice is a follow-up to a line of six organic açai-based superfood smoothies Sambazon launched earlier this summer. The products are available at natural foods retailers as well as conventional grocery stores, including Safeway, Vons, HEB, Meijers, Dierbergs, QFC, Shop Right, Dagastino’s and Food Emporium. For more information, call D’agostino’s at (949) 498-8618.

Hogan Energy by Socko Golly Guarana TRIBU 4 Energy Drink Coffee Fiend by Pop Soda V&V Energy Beaver Big Buzz C-Swiss Hemp Ice Tea Rockstar Juiced (new flavors) Enviga Bally Blast Sugar Free NOS Energy (new bottle) From October 11 to press time. To see reviews, log on to www.BevNET.com

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

2006

Consumers want great tasting cocktails... Daily’s Delivers

Consumers want authentic, fresh and great tasting cocktails. With over 30 years of experience and a unique recipe that blends real fruit and natural flavors, Daily’s deleivers top scores on all three.* Introduce your customers to the best tasting cocktail mixes and ready-to-drink cocktails from Daily’s. For more information visit www.dailysfruitmixers.com or call 1-800-245-2929 X6113. *2004 Blattner Brunner Study.

and has a unique texture derived from a blend of regional mountain pears. It is available in a 750 ml. size that retails for $30. Trago Tequila launched in October in California, Chicago and New York, with Las Vegas and Miami to follow in the first quarter of 2007. Trago, which means “taste” or “sip” in Spanish, is being marketed as an ultra-premium tequila that could be savored like a cognac or a port. It will be available in Silver, Reposado and Anejo, and carries a suggested retail price of between $50 and $70 per bottle. Originally from Brazil, Boca Loca Premium Cachaça has just arrived in the U.S. Made with single-plantation, hand-harvested and pressed sugarcane from a small plantation in the state of Sao Paulo, Boca Loca (“crazy lips”)is the first “branded” cachaça created and bottled specifically with the US Market in mind; it is imported by the Meyer Marino Import Company. National roll-out plans underway in the US market include Samba parties infused with the music, energy and sprit of Brazil, and will feature an array of specialty Boca Loca cocktails at targeted bars and restaurants across the country. A 750 ml. bottle sells for $21. For further information about Boca Loca, call Meyer Marino at (303) 645-4840. If Boca Loca isn’t on the Cachaça menu, what about LeBlon? This is another Brazilian white Cachaça rum named for an upscale beach neighborhood adjacent to Ipanema in Rio de Janeiro. This cachaça is shipped to France for light aging in Cognac casks before it is exported to the U.S. LEBLON is rolling out nationally, and is available now in the NY, CT, MA, NJ, PA, FL, CA, AZ, and IL markets with a suggested retail price of $29.99 for a 750 ml. bottle. For more information, call LeBlon at (212) 741-2675. Distributed by Southern Wines and Spirits, Ty Ku is billed as the world’s first premium sake liqueur, a mix of more than 20 natural ingredients, including pomegranate, Asian pear, oolong tea, ginseng and damiana. It features a green jade color and is currently available in New York City and Las Vegas, with widespread distribution expected in the coming year. Ty Ku’s packaging is composed of frosted glass with brushed chrome

Beer Fuller’s ESB, a definitive premium ale, has added new packaging design as of October. Fuller’s ESB will now be identified by a royal blue backdrop and confident graphics. Although new to U.S. consumers, for the past two years, ESB sold in Britain has featured the new look. To help create a presence, a variety of Fuller’s ESB accessories will be available, including: new eye-catching 3D pump clips, stylish bar runners, drip mats, clothing and other accessories. For more information, call (970) 927-5363. Spirits From Daucourt Martin Imports comes X-Rated Fusion Liqueur, a blend of premium French vodka, blood oranges, and mango and passion fruit essences. This product is aimed at younger women because of its mixability and bright pink color. This product is available nationwide and has a suggested retail price of $27.99 for 750 ml. or $31.99 for 1 L. For more information, call (201) 370-8057. From the folks at Absolut comes Absolut Pears, a Pear-flavored vodka the is the ninth flavor in the Absolut Flavors portfolio. The Absolut Pears bottle is dressed in two shades of soft, mellow green with subtle curves and shapes inspired by the tender Anjou pear. The modern, organic design mimics the silhouette of an upside-down pear. This product will be available for $2 for 50 ml., 750 ml. for $20 to $22, and $27 to $29 for 1 L. For more information, contact the Absolut Spirits Company at (212) 641-8720. Boutique spirits importer Haus Alpenz has recently introduced a pair of Austrian liqueurs to the North American market, Zirbenz Stone Pine Liqueur and Lauria Alpensahne Alpine Cream Liqueur. Both celebrate rich histories in the Alps as tastes of alpine luxury. Zirbenz Stone Pine Liqueur draws its flavor, color and nose from the fruit of the Arolla Stone Pine. It is available in 375 ml. and 750 ml. sizes, priced at $30 and $40, respectively. Lauria Alpensahne Cream Liqueur has a flavor derived from full alpine cream, alpine milk, Pear Williams brandy,

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

2006

accents, and it is launching with a “limited edition” bottle, one that illuminates when lifted, the result of new, patent-pending LED technology. A bottle of Ty Ku will retail for $32.99. For more information, call the guys behind Ty Ku at (212)777-3455.

KNOW YOUR INDUSTRY. GET NETWORKED.

Your source for beverage news and reviews.

BevNET IBQ Magazine

Bravo! Foods International Corp. is launching two new licensed flavors: Franken Berry Slammers and Boo Berry Slammers. These blueberry- and strawberry-flavored 8 oz. products will be appearing before the end of the year and are a continuation of the Slammers product line. Produced aseptically, Slammers have no preservatives, do not need to be refrigerated until opened, and, before opening, have a shelf life of six months. They will be line-priced with other Slammer offerings. More information is available by calling (561) 625-1411. Hemp food processor Living Harvest has announced the launch of the first shelfstable hemp milk. Set to hit the shelves in January 2007, Living Harvest Hempmilk is a beverage for anyone craving the latest in performance health products and for those seeking a delicious and healthier alternative to soy or dairy. Living Harvest Hempmilk will initially launch in three flavors – Original, Chocolate and Vanilla in vibrantly-colored 32 oz. aseptic containers. For more information, call Living Harvest at (212) 253-0474.

BevNET.com

Dairy

INNOVATIVE BEVERAGES QUARTERLY ››› WINTER 2006

THE NEW BEVERAGE VANGUARD: EXECUTIVES MAKING THE FUTURE

Red Bull’s Dietrich Mateschitz: Energy supplier for a new era in beverages. PATHS TO INNOVATION IBQ_cover copy 5.indd 1

From Beverage Partners Worldwide – a joint venture of Nestle S.A. and the Coca-Cola Co. – comes Enviga, a functional tea designed to elicit the burning of calories in the drinker via a blend of green tea extracts, caffeine and naturally active plant micronutrients. Enviga will be available in three flavors – green tea, berry and peach – in the ready-todrink tea section at supermarkets, mass merchandisers, convenience and drug stores, and club stores. It will be sold in individual 12 oz. sleek cans as well as six-can and 12can multi-packs with a suggested retail price of $1.29 to $1.49 for a single can. For more information, call (404) 676-1070.

9/20/06 4:28:49 PM

A quarterly publication devoted to “Innovative Beverages”

Email Newsletter

Tea

THE ADDITIVES MASTER FLAVORS YOU CAN’T DO WITHOUT

A weekly newsletter covering industry news and new products

Visit us online to subscribe to all of our publications. http://www.bevnet.com/biz/Subscribe NOVEMBER – DECEMBER

200

\\ BEVERAGE SPECTRUM

BevNET.com’s VIEW

Ten Years After

n just ten years, BevNET has grown from a small hobbyist web site – one that helped me get a lot of free drinks – into a company that is a nationally-recognized source for published beverage reviews, news features, and a print magazine – the very one that you’re reading right now. It has been quite an evolution – and we’re not done yet. In just a few months, we’re launching BevNET IBQ, a new magazine that covers strategies for developing innovative beverage products. In many ways, our decade-long evolution as a publishing company has paralleled a major change in the beverage industry. What started as a web site focused on drinkability has turned into a company that examines the entire industry. Similarly, what started as a class of consumer products focused primarily on taste and refreshment has morphed into one that is increasingly driven by the satisfaction of any number of need states. When I first started BevNET, we were reviewing root beers, coffee cola, high-calorie ready-todrink iced teas, and a plethora of South American fruit-flavored soft drinks. Everything was about taste, and the primary “function” was the ability to quench thirst and please the senses. Functionality and energy were largely left to sports drinks and coffee. A notable exception was found in Jolt Cola, which was, for the most part, considered a novelty product. Obviously, that has changed to a large extent – and today’s market is dramatically different. Now, people want more from their beverages

than ever. They are demanding functionality, beautiful design, great taste, and fewer calories. The future of this industry is exciting, but uncertain. There are many new areas for growth, including the mainstreaming of functions other than energy. But there is also cause for concern. Manufacturers for too long varied size rather than function when determining their new offerings, and at times, when they have introduced functional beverages, they have been so behind in catching the drift of consumer desire that they have made ham-handed claims in place of quality, innovative products. That might change very soon, as the Food and Drug Administration is showing signs that it will evaluate functional food and beverage products. How far they will go towards regulation, we don’t know, but we’ll be watching. One thing that we do know for certain is that consumers will continue to demand innovation. And that’s the main reason that we are launching BevNET IBQ. We plan to take BevNET’s awareness of the marketplace and combine it with Beverage Spectrum’s ability to determine what consumers want, funneling that insight into the essential industry guide for the Beverage Marketer. How will that help you sell more products? We aim to make sure that those who want to create new beverages are doing it in a way that lines up with what consumers are going to want. We will help Beverage Marketers understand important drinking and design trends, demand for certain functions and flavors, and bring them

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

2006

insight into changes in brand development and marketing across all manner of packaged goods. We plan to make sure that we all have a profitable, healthy future, from the ingredient makers and flavor houses to the marketers, distributors and consumers. The beverage industry is an enjoyable one to cover. Every year brings a fresh litter of 300plus products, many of which bring something unique to the industry, and speak reams about consumer desires and marketing dreams. Soon, we will put up the Best of BevNET 2006 – check out the web site for details – but know that, regardless of who gets chosen, things are getting better every year.

John Craven is the founder of beverage-industry watchdog The BevNET.com, based in Cambridge, Mass. The BevNET.com’s goal is to test nonalcoholic beverages — primarily soft drinks — and to provide a written critique of each one on its Web site. With more than 1,100 reviews posted since 1996, The BevNET.com has become an internationally recognized resource for beverage industry professionals.

Select Products available from United Natural Foods Inc.

New ready to drink joint supplement

For more information on Logic Nutrition® Just 4 Joints™ or the Logic Nutrition® brand, contact: Corporate Accounting & Remittance Office Logic Nutrition LLC Magnolia Village, Suite 1040 6900 S. McCarran Blvd., Reno NV 89509 775-826-6677

Corporate Administration Office Logic Nutrition LLC 60 Thoreau St. Ste 267 Concord, MA. 01742 866-718-9444

email info@LogicNutrition.com www.LogicNutrition.com

the

ENVIGA EFFECT How will functionality function in your cooler? This is the year you ﬁnd out. By Jeffrey Klineman

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

200

Get ready, people.

With the release of Enviga, a new calorie-burning tea from the Coca-Cola/Nestle partnership known as Beverage Partners Worldwide, the functional beverage movement has gone mainstream. The rubber is meeting the road. How should you react? Are you going to have to stock up on products that flush the system, fill the tank, shine up the human hood? What changes will be wrought in your cooler by the Enviga Effect? Well, for starters, you’ve got to weave through a lot of traffic chasing after Enviga for the calorie burning space. Already, Elite Fx, the company that first marketed a calorie-burning formula in Celsius, has ramped up its advertising and is pressing for increased distribution, claiming that the release of the Coke/Nestle calorie-burning tea legitimizes the category they pioneered. PepsiCo has its own plans to release Tava, a soda that also supposedly ramps up calorie burning via the mineral Chromium. Snapple, which has a growing green tea brand, will add label language indicating that it, too, boosts the metabolism. Companies like Fuze and Airforce NutriSoda, both of which have products with appetite-suppressing super-Citrimax, are ready to push for more space. It’s important to note that all of these products are only chasing one thing: thin. Here’s the skinny: thin is the Killer App in the food and drink business. If people think a drink will help them lose weight, they’ll buy it. A recent survey by the drug company GlaxoSmithKline PLC showed that 33 percent of Americans who are trying to lose weight have tried dietary supplements with no proven

benefit. AC Nielsen recently reported that 15 percent of U.S. households have bought weight loss products in the last year. The market is there for a mainstream product that purports to have a slimming effect. But at the same time, if it doesn’t work, there are plenty of other products – be they beverages or other consumer goods – that are available to take their place in the weight loss market. That’s the game that Coke and Nestle started playing when they showed the Enviga card. BEYOND SKINNY Despite the potential gold mine awaiting an effective weight loss beverage, when it comes to functionality, Enviga had better not be the only card in the deck, according to Kaumil Gajrawala, a beverage analyst with UBS. “It’s a long-term trend,” Gajrawala says. “Coke has said publicly that they want to better leverage their research and development to develop more of these kinds of products. You’re seeing it across all CPGs (Consumer Packaged Goods) as well. Cheerios has labels that relates to how it affects your heart. Someone else just launched a chocolate bar that’s supposed to be good for your heart. So they’re all going in pretty deep.” That’s not to say you should expect to stock racks of functional sodas; according to Gajrawala, that particular beverage category is drowning in too many line extensions already. But in those categories whose shelf presence is already growing – tea, water, sports drinks – functionality is going to accompany them hand in hand.

the industry ‘permission’ to put additives in their beverage, but it’s not enough to have just a splash of a special ingredient in the drink. Consumers want more from enhanced beverages and will expect to feel a difference after consuming these products.” Natural and New Age food manufacturers realize what consumers want: at the Expo East Convention in October, tea and juice lines like Pure Fruit were defined as much by what they are expected to do as by their flavor. Fuze Beverages, which has recently taken nine of the top 50 supermarket SKUs in the New Age category, are nearly entirely dependent on a mix of products that promise various functions, from appetite suppression to free radical scavenging. Last year, Ito En presented the Sencha Shot, a triple strong bullet of green tea that, if antioxidant research is correct, contains the equivalent of a mortar attack on free radicals. And if Enviga takes off, expect some of those companies to introduce packaging that evokes their latent qualities as much as it does their natural or organic origins. After all, the levels of green tea catechins and caffeine present in Enviga’s “proprietary blend” of calorie burning ingredients are very similar to those present in a well-brewed green tea, in similar ratios. Nevertheless, even proving a drink helps consumers lose weight is, while measurable, still subjective. When considering the effects of Enviga, which are smallish (the Wall Street Journal reported the calorie burn is similar to that achieved in a 15 minute walk), the customer is going to have to believe, and see, that it is working. Moving into other functional areas, it’s

“At the end of the day, it’s got to be a genuine benefit. Today’s consumer is able to see through anything that’s not real.” “Efficacy will become important,” says Debbie Wildrick, the beverage portfolio manager at 7-Eleven. “Consumers already have given

NOVEMBER – DECEMBER

going to be hard to prove more. Products claiming to have longer-term benefits, like all of those that contain antioxidants, aren’t marketed as a

2006

\\ BEVERAGE SPECTRUM

cure for anything – their implied benefit is in what they prevent, rather than what they cause. But others, like skin improvement products, performance enhancement beverages that offer everything from tranquility, to spiritual insight, to sexual bliss, may very well have to measure up to their billing, or disappear overnight. Nevertheless, marketers are gambling billions on the belief that a product that might work will be just as attractive to consumers as the ones that actually work. “There are two things here,” says Gajrawala. “At the end of the day, it’s got to be a genuine benefit. Today’s consumer is able to see through anything that’s not real. But people are moving from CSD’s because they know they’re

That’s the line walked by the products at Glaceau, whose Vitaminwater – believed by many experts to have helped inspire the rush to launch more functional products – might have already grabbed the lion’s share of the potential market for functional waters. But how many more times can lightning strike in that fuzzy spot between marketed effect and sugar water? RAISED STAKES While there’s no arguing with Glaceau’s success, there’s likely no replicating it, either – their lead is huge and they’ve already spawned lessthan-successful imitators. The market strength of Vitaminwater means that stakes have been raised. The next product whose label promises

since the beginning,” says Lance Collins, the CEO of Fuze. “A lot of these companies haven’t fulfilled their promise to consumers. Products that were billed as offering ‘healthy refreshment’ were just offering ‘healthy deception.’ I was a witness to all these false representations and thought I could deliver something on that promise.” Collins says he believes marketers are getting better at creating functional beverages. “Big companies are delivering beverages that offer benefits,” he says. “It’s better, but it’s not great. They’ve come a long way. They see what’s going on with consumers, and I guess they’re heeding the call.” Still, that doesn’t mean that as retailers, you should grab every new functional beverage that you can. “You can’t ignore it, because it’s something that people are looking for,” says Lauren Torres, the chief beverage analyst at HSBC. “It’s always great to be the first one out with things, like with Gatorade. Some of these categories at times do have some traction. But retailers have to be very careful – there’s always shelf space to allocate, but you have to take it very slowly to see how consumers react.” Chances are, if there’s even a hint of helpfulness to a product, there are a whole lot of sales to come. As a retailer, remember this: a large part of the attraction of functional beverages is that they pay lip service to both convenience and health – currently two of the top three drivers of consumer food choices, according to a recent survey by the NPD Group. Nothing is more convenient than drinking something that will slim you down, wake you up, keep you from getting cancer. It beats the hard work of exercise, the time you need to sleep, the expense and detail required to keep track of one’s health. “Consumers want more functionality, and they want it to be convenient,” Wildrick says. “Providing more enhancements that are easy to

The next product whose label promises something immediate and tangible behond basic hydration

or caffeine-related alertness needs to deliver, or it could torpedo the whole category. bad for you. Now, you look at Enviga, and sure, it’s carbonated, but it’s clearly a green tea product, and not only is it not bad for you but it could be good for you.”

something immediate and tangible beyond basic hydration or caffeine-related alertness needs to deliver, or it could torpedo the whole category. “That’s been the problem with the New Age

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

200

Now there’s even more Metromint to love.

Metromint, the original mintwater,® is proud to present the newest members of our growing family: Lemonmint and Orangemint. The two new varieties were developed with mainstream flavor profiles, intended to introduce incremental consumers to the Metromint Brand. And like their cousins Peppermint and Spearmint, they contain no sweeteners, no calories, and no preservatives. Pure. Simple. Mintwater.® Each variety of Metromint is now designated with a numerical chill factor. From mildly cool Orangemint (-3 ) o

to super cool Peppermint (-9 ), the chill factor is a comparative scale that measures the range of minty refreshment. o

Metromint is currently the fastest growing bottled water in the natural food channel.* Our success comes from driving sales with an effective promotion program. We’re building the Brand, raising awareness, and developing a fanatically loyal following. Distributor or retail inquiries: 415 979-0781. E-mail us at info@metromint.com.

www.metromint.com/retailerinfo *Source: SPINSscan Natural, Current Period: 12 weeks ending 07/15/06 Prior Period ending 07/16/05 Category: Packaged Water, Enhanced Water, Flavored Water: Total US All Regions

drink and more readily absorbed by the body will be important for the beverage industry in keeping up with consumer needs.” DOWN THE ROAD By all means, be ready to hop on the functionality train. If you’ve simply got a convenience CSD cooler, think about adding an Enviga or a Tava, or even a Celsius – products like that are attractive to drivers (especially considering the fact they have massive amounts of caffeine). And if you’ve got a broad array of products, be ready to go further. Think about the way orange juice manufacturers created new revenue streams – and soaked up space in the dairy cooler – by coming up with different fortification packages, and you’ll get an idea of the potential for expansion. But here’s a little packaging note that needs to be kept in mind: “This statement has not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, prevent or cure any disease.” You’re going to see it on a lot of labels. And the number of disclaimers might eventually come to overwhelm the perceived level of benefit. In December, the FDA is meeting to start defining, in a regulatory sense, some of the products that produce functionality. If that happens, get ready to see the numbers shrink all around – including those products whose only fortification has been their own marketing claims. Nevertheless, there’s a lot to try, and the end result could be, rather than a series of products that are part of other categories – a la Enviga or Tava – just a functional category all to itself. The demand is there, Wildrick says. “They’ll keep looking,” she says of consumers. “Word-of-mouth and viral marketing will quickly raise awareness and trial of those drinks that customers believe live up to their claims. Products that disappoint will drop off the shelves, whereas the best performers will be the winners.”

You didn’t think we’d leave you with just one major industry current, did you? Here are some other important developments to keep track of in the year to come. TEAS STEEPED IN ADDITIONAL GROWTH — Tea sits at the intersection of two trends: functionality and health. With its leaves serving as a natural source of flavor and of the antioxidant-supplying catechins, tea is poised for continued major growth this year. How valuable is that prospect? It’s so tempting that longtime couple Beverage Partners Worldwide – Coke and Nestle – are taking a trial separation over green, white and red teas, developing their own products independently. MORE LIGHT IMPORTS — The only way things could have gone better for Heineken this year is if Andre Agassi could’ve rallied to win the U.S. Open with a Heineken Premium Light in his left hand. As it was, though, the product exceeded all predictions that it would exceed all predictions for success. So expect other importers to rush to market, and a bigger ad push from Beck’s. Otherwise, non-high-end imports are likely to face the same problem as domestic premium brands: the galloping grape. THE SEARCH FOR THE MAGIC SWEETENER — Honest Tea thought they had it earlier this year with erythritol, a fermented organic cane sugar, then they scuttled their Tangerine Green tea. There’s still talk of Chinese Splenda, while ace-K continues to be blended with everything under the sun. But until someone comes up with a low-calorie way to replace real sugar’s taste, expect the juggling acts to continue. ENERGY — Caffeine paranoia is expected to build to an early high right at around New Year’s Eve, when the consumption of energy drinks and vodka hits an all-time high, and products like Cocaine and Green Card draw even more negative media attention. WIDESPREAD WATER ENHANCEMENT — From BooKoo to Odwalla, enhanced waters will be everywhere next year, capitalizing on the growing market exemplified by Vitaminwater. And while there are plenty of products that claim functionality coming out, that market will be tiny compared to the demand for more low-calorie, fruit-flavored waters with a little vitamin enhancement and some snazzy packaging.

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

200

NOVEMBER – DECEMBER

2006

\\ BEVERAGE SPECTRUM

NEW W AGE: Five that Still Fit By Jeffrey Klineman

e know, the New Age isn’t really that new anymore. Snapple and Nantucket Nectars mingle at Cadbury Schweppes cocktail parties, and Fruitopia flew the coop. But there are still a few folks out there who stick strongly to many New Age tenets: odd mixes, uses of exotic fruit or herbal flavors, outrageous packaging and a proposition that straddles two or three older, more established beverage categories but doesn’t fit comfortably into any of them.

And there are plenty of retailers who still want to maintain a New Age beverage set. It allows a designated location for fresh, eye-catching products that might not be able to compete in a narrowly-demarcated cooler, and it allows them to be sold at a premium, due to their high-margin otherness. So, if you’re interested in keeping the New Age alive for yourself and your customers, here are five product lines that could form a pretty strong core group:

Fuze: Slenderize, Refresh, Vitalize These products use a mix of just about every available beverage material, from the milk and fruit juice blends that characterize their Refresh line of not-quite-smoothies to the fruit juice and electrolyte combinations in Vitalize and the potential for appetite suppression that comes from Slenderize. Fuze has filtered through mounds of product types to varying degrees of success but remains very much a New Age stalwart, tinkering with combinations of ingredients, flirting with different functions, and creating beverages that have never fit neatly into any one category. Which means that they’re at the very heart of New Age. Ito En Sri Lankan Tea Blends Mixing super-fresh tea and pure fruit juice in a rectangular, shrink-wrapped bottle, these exotic (domestically exotic, that is, as it’s a leading brand in Japan) little beverages combine strong fruit and tea flavor. Flexible enough to be consumed – or vended – cold, at room temperature, or even in a special warming box, these mixes of black and green have a lot of badge appeal for tea fans. Adding all the appeal of natural tea to the American penchant for sweetness, this is basically an Arnold Palmer in a very contemporary package.

Sol Maté Is it a soda? Is it an energy drink? A carbonated tea? Does its odd, angular glass bottle come from outer space, or the ancient Aztecs? Whatever it is, there isn’t a whole lot of defined space around Sol Maté, and that means that you’ve got a fizzed-up leg to support your New Age table. The yerba maté base gives it an energizing kick to accompany its exotic flavor, which isn’t overwhelmingly sweet. Somewhere, there’s a salsa dance night that’s just screaming for a case of this.

Taste Nirvana: Creamy Thai Tea, Creamy Thai Coffee, Creamy Green Tea and Coconut Juices For consumers who love Thai-style products, the teas and coffee here represent one of the few opportunities they’ll have to enjoy these drinks outside of a Thai restaurant. While the packaging isn’t overly exotic (except for the one that looks like it’s holding green paint, thanks to the mixture of ingredients) there isn’t a lot of designated shelf space for any of these products, except if you group them all together. Add the coconut juices – a couple of which include Orbitz-looking coconut pulp – and you’ve got something to put next to Fuze’s Vitalize as a New Age sports drink. To be sure, it’s a highly ethnic product line at this point. But so was Red Bull. Carpe Diem Speaking of Red Bull, founder Dieter Mateschitz struck out into an entirely new direction with the launch of these lightly carbonated, exotic herb, root and soda blends. With tall, elegant packaging, these vibrantly-colored drinks are based on extracts of Gingko, Kefir, Kombucha, and botanic waters. Their labels include little symbols for Yoga, meditation, and even archery. They’ve got pungent smells evocative of old ways, but they’re bottled in an hourglass shaped PET that must have given the mold-makers fits. Get ready. The Yoga Moms are getting thirsty.

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

200

BS1206

CONVENTION SCRAPBOOK

nacs 200

From ultimate fighters to bad breath fighters, from the World’s Strongest Man to World’s Best Coffee, this year’s NACS Show had it all. But don’t just take our word for it, check out some of the folks who were there…

Bawls’ Hoby Buppert, double-ﬁsting it. The All-American Cadbury Schweppes booth featured Betty Cooper and Veronica Lodge.

Rockstar’s new spokeswomen, Paris and Nicole. Nice that they made up, huh?

Rio Miura, founder of Metromint. Modernist aesthetic, anyone?

Mark Beatty of Heineken takes advantage of the one-drink-per-customer policy.

Monster’s Sam Pontrelli, Geoff Bremmer, and friend – Keep it Classy, Las Vegas!

BooKoo’s Pam Thornton shows off her energy juice.

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

200

nacs 2006

Glaceau’s Tom Riggio, sitting pretty.

Brian O’Byrne and Art Carey – they ain’t pretty, but they move product.

A smiley group at Tempest Tea: Melissa Rushing, Crafty St. James, and Melissa Bailey Box.

Nate Hoops and Justin LaForgia, ready to bring Fuze to a town near you.

Look who showed up for Socko! Energy for the Hogan Leg Drop.

Caballo Negro’s Arley Campbell – proud papa.

NOVEMBER – DECEMBER

2006

\\ BEVERAGE SPECTRUM

CONVENTION SCRAPBOOK

expo east

To misquote the Bob Dylan lyric, “There was music on the convention floor at night and patchouli in the air” at the recent Natural Foods Expo East gathering, where our favorite leading-edge crunchy types were on hand to discuss all things antioxidant, fruitful, or just plain sinfully good.

Karsten Robbins of Luvli Juices prepares for the onslaught. Energy on tap at the Sol Mate booth

Jessica Cooper shows off Pure Fruit Technology. We thought it was juice, but no, it’s technology.

Ito En’s Jeff Sleeper and Nancy Northan – a formidable duo.

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

Alex Reist shows the effects of Inko’s White Tea Energy… …which is also, apparently, affecting the guys from Maine Root.

200

expo east

Peter Mouritz gives people the Hint.

Who couldn’t be (Pro)Bugs about Lifeway’s Marina Nikolenko

The energy at the Guru booth was all-natural, as always. The loneliness of the hemp milk seller Bossa Nova’s Palo Hawken, with product and matching t-shirt.

Steve Kessler and Carle Robbins show off Steaz Energy...and shoelaces.

NOVEMBER – DECEMBER

2006

\\ BEVERAGE SPECTRUM

• Show Schedule • Friday, January 19

Winter Fancy Food Show

Workshops 9 am – 4 pm Fundamentals of Specialty Food Retailing

WHO:Vendors, Buyers, Retailers and Distributors

“Supplier Education Day” – Focus on Manufacturers, Importers and Marketers

WHEN: Friday, Jan. 19 to Tuesday, Jan. 23, 2007 WHERE: Moscone Center, San Francisco, Calif. WHY: For product demonstrations and samples, educational seminars and workshops, and Special Events FOR INFO: National Association for the Specialty Food Trade, (212) 482-6440

9 am – 12 pm How to Achieve Profitable Broker & Distributor Relationships 9 am – 12 pm Staying on the Shelf: How to Compete with Mainstream Food Companies 10 am – 3 pm The Basics: The Business of Specialty Food 2 pm – 5 pm Branding Boot Camp for Specialty Food Suppliers

Exhibitor List Adagio Teas Ardea Beverage Ariel Vineyards Brands of Britain, LLC GuS - Grown-up Soda Hi Ball Inc. Hint, Inc. Honest Tea ITO EN LTD. Kehe Food Distributors Liberty Richter Lorina, Inc. Metromint Nantucket Off-Shore and Stirrings O Beverages One World Enterprise, LLC Pixie Maté Purity Organic, Inc. Revolution Tea, LLC Royal Pacific Foods—The Ginger People Skylar Haley Source Atlantique, Inc. Sweet Leaf Tea Company Taste Nirvana International Inc. Tempest Tea The Republic of Tea Vita Coco

Saturday, January 20

Booth Number

Workshops

4118 1747 2918 3217 434 202 835 1071 2621 1653 943 3251 1346 1775 4920 801 1548 405 550 1542 1858 3405 424 1052 2410 1250 849

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

9 am – 12 pm Social Media Communication: New Ways to Get Closer to the Consumer 2 pm – 5 pm Taking Your Products to the Marketplace “Super Retailer Summit” – Exclusive Event for Retailers 8:30 am – 9:30 am GENERAL SESSION: The Future of Food Retailing 9:45 am – 11:15 am BREAKOUT SESSION I • Creating and Delivering In-Store Demos and Tasting Events That Connect with Customers • Zingerman’s Approach to Better Buying 11:30 am – 1 pm BREAKOUT SESSION II • Costing and Pricing • Partnering With Local Food Producers 2 pm – 5 pm Pre-Show Buyer-Supplier Connection

2006

5 pm – 6 pm Networking Wine Reception showcasing the Fancy Food Show’s newest products! Sunday, January 21 Keynote Session 8:30 am – 10 am “Fast Food Nation: The Dark Side of the All-American Meal” Eric Schlosser, author, Fast Food Nation Seminars 1 pm – 2:30 pm Pricing Gift Baskets for Maximum Profit 3:30 pm – 5 pm Beyond Soy Sauce: Exploring Premium-Quality Japanese Products Store Tour 3 pm – 6 pm San Francisco’s Specialty Food Retailers: How They Stay Current Monday, January 22 Seminars 8:30 am - 9:30 am Specialty Food Magazine Presents: Today’s Specialty Food Consumer 2006 8:30 am – 10 am NASFT Diversity Program Presents: Minorities in Specialty Food: Leveraging BusinessBuilding Opportunities 8:30 am – 10 am Ten Steps to Increase Website Sales and Profits 3 pm – 5 pm The European Union Presents: Tradition + Technique + Terroir = Taste of Traditional Foods Tuesday, January 23 Seminars 8:30 am – 10 am Defining, Differentiating and Marketing Fine Chocolates 8:30 am – 10 am From Restaurant Plate to Retail Shelf: The New Menu Trends Affecting Your Business

PROMO PARADE Pernod-Ricard Pernod Ricard will be maintaining a festive line-up of value-added packaging and point-of-purchase displays for trademark brands Kahlúa, Stolichnaya, Chivas Regal, Beefeater, Jameson, Martell, Wild Turkey, The Glenlivet and Hiram Walke this holiday season. The specially designed promotional materials will keep Pernod Ricard brands top of mind and offer consumers shopping convenience during the hustle-and-bustle of the holidays. The 2006 off-premise holiday promotions for Pernod Ricard’s brands include: • The exotic spirit of Kahlúa will be available in two holiday gift giving packages; the Kahlúa 750 ml. with two elegant White Russian glasses or alone in a holiday 750 ml. gift box. Supporting the value-added packaging will be a pole topper, shelf talker and a two-sided, acrylic case card with recipe tear pad. • Stolichnaya Vodka is offering two special gift packs; one that features a 750 ml. of Stoli with two frosted shot glasses and one that features a 750ml of Stoli packed with four 50 ml’s of popular Stoli flavors. Larger Stoli flavors will also include unique gift wrap packages. • Beefeater London dry Gin enters the holiday season with two value-added packs to attract store traffic. The Beefeater 750 ml. with two Collins glasses gift set and the Beefeater 1.75 with cocktail shaker gift set make a great and convenient gift to customers. • Wild Turkey Kentucky Straight Bourbon comes to the holiday table with a range of gift packs that include a Wild Turkey 101 with two rocks glasses, Wild Turkey Rare Breed with two rocks glasses and a Wild Turkey 101 750 ml. gift carton. Point-of-sale has been designed in the unique personality of the brand.

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

200

Best. Job. Ever. The makers of Chivas Regal scotch are launching Year Three of the Search for The Chivas Life, seeking two people to become Chivas Life Ambassadors for an entire year, traveling the globe together in search of extraordinary experiences. Now encompassing twelve months, this latest Search will appoint two Chivas Life Ambassadors to serve as international representatives of the world's smoothest Scotch whisky, whose compensation, including travel stipend, will be $200,000. Their duties will include interacting with international and domestic media, recording their adventures online, hosting mentoring events and attending exclusive Chivas Life events such as Elephant Polo and Snow Golf. Another new component of the Search is The Chivas Studio, open for several weeks in six major markets - New York, Dallas, Miami, Chicago, Los Angeles and Las Vegas. In a custom-designed space in each city, the Chivas Studio will be open to film Chivas Life Ambassador applicants onsite, while at night, the Studio will offer various facets of The Chivas Life, whether it's an intimate Chivas Musica event, a Chivas Life party, or various exhibits.

Applications for the two positions will be accepted through March 30, 2007, and will be reviewed by a panel of travel and lifestyle experts. For more information, or to download an application, visit www.chivaslifeambassador.com.

That Time Already Miller Lite and Miller Genuine Draft are attracting consumers at retail by promoting Better Beer for the Big Game. A national sweepstakes offers consumers a chance to win a championship bonus, off-premise accounts are invited to build their own super party central and drive awareness with football themed floor decals, static stickers, stadium spectaculars, cut-outs, inflatables and yard markers.

Plus, consumers can stock up for their own big game party with these special cross-merchandising offers from Hillshire Farms Lit’l Smokies, TGI Friday’s frozen snacks, Jack Daniel’s sauces and marinades and Cheez-It Snack Crackers. This promotion will run from January 1 to February 5. See your local distributor for details and to request merchandising materials.

Heaven Hill Heaven Hill’s PAMA Pomegranate Liqueur, the world’s first true pomegranate liqueur, will release a full consumer and trade media campaign beginning in November with consumer placements in GQ, InStyle, Vanity Fair and Vogue through October 2007. The campaign will continue to drive consumer and trade awareness for PAMA Pomegranate Liqueur – one the industries’ hottest products. The ad campaign is designed to capitalize on the overwhelming consumer and trade response to the product’s introduction. Consumer insertions will feature a scent strip, much like perfume ads, with the alluring scent of PAMA in a campaign titled, “Pomegranate Perfected.” On the first anniversary of the product’s launch, PAMA Pomegranate Liqueur will also feature regional consumer ads in New York style publication Gotham, Miami social magazine Ocean Drive and the social-life based Chicago Scene. The trade ad campaign will cover publications dedicated to both retail and on-premise spirits business. In the campaign, a PAMA Martini sits atop a pomegranate set against a background of the PAMA Tree logo in silver. The recipes will highlight the brand’s mixability and great flavor.

Diageo

Diageo, which recently acquired Bushmills Irish Whiskey, has announced a new packaging and advertising campaign designed to build the brand’s profile in the Irish whiskey category. The new campaign is the first for Bushmills. The campaign will also reference a March 8, 2006, New York Times article that selected Bushmills 10 Year-Old Single Malt as the Number One Irish whiskey among 16 competitive whiskies. The ads recently launched in sports publications, including Sporting News, USA Today, and the Times. The campaign will continue through the rest of the year in men’s lifestyle, news and trade magazines such as Blender, The Onion, Men’s Fitness and Men’s Journal. The campaign will also prominently feature the new Bushmills packaging, which conveys a more contemporary feel, yet retains the brand’s strong Irish heritage.

NOVEMBER – DECEMBER

200

\\ BEVERAGE SPECTRUM

GERRY’S INSIGHTS

Big or Small

an Exciting Year B

everage wise, this last year ranks as one of the most exciting I’ve seen. The major companies explored provocative ways of shifting their business models with the times, even as smaller brands picked up traction in highermargin segments of the business. Major Coke and Pepsi bottlers, as well as Anheuser-Busch distributors, continued to put their core suppliers on notice that they expect more in the way of innovation. That degree of ferment has to be healthy for the industry in the long run. Here are a handful of themes distilled from a year of covering this fascinating business: innovation still seems to be the province of the smaller guys. Sure, every major beverage corporation has put a priority on stepping up innovation, and several have gone to ingenious lengths organizationally to try to get there. Nevertheless, when I take a stroll down the store aisle, almost everything truly exciting seems to have emerged out of a garage, metaphorically speaking. No question, the big guys are bringing lots of new products to market, and the onrush may be having a salutary effect in attuning their production and distribution systems towards handling a more diverse portfolio. But most of these products seem to be line extensions or by-the-numbers concepts (“Let’s see, coffee and canned energy drinks are booming and we do sodas, so let’s create Coke Blak”). There are exceptions, but too few, and, in some cases, such as trying to convince consumers that 7Up is now “natural” or that Bud Select somehow is a breakthrough in brewing, too contrived: the companies seem to harbor hope that brilliant marketing can mask a lack of genuine innovation. Indeed, megabottler Coca-

Coca Consolidated took a slap at the qualitynot-quantity issue when it recently attributed its weak quarterly results to a “decline in significant innovation.” Its core supplier is Coca-Cola: enough said. big guys, needing innovation, will pay a lot for the smaller guys who have it. The valuations paid for some smaller brands in the past few months have struck veteran beverage watchers as rich, even outlandish. Not just Tata’s stake in Vitaminwater marketer Glaceau (at an enterprise value of roughly $3 billion) but also Anheuser-Busch’s $82 million purchase of declining Rolling Rock and Pepsi’s $75 million purchase of still-tiny Izze. But these guys are far from crazy. The trend reflects their awareness that, though there may be few entry barriers to duplicating the formulations of some of these products, it is not so easy to successfully knock them off after all. (Witness Pepsi’s humiliating effort with SoBe LifeWater.) Once these brands have achieved first-mover advantage, consumers’ perception of their authenticity makes them hard to dethrone. Better to ungrudgingly pay the premium and hope you can keep the magic going once you incorporate the brand into your own system. And yeah, good luck on that one. if you’ve got innovation, launch it in a big chain. For decades, the mantra was that innovative brands are built up and down the street, generating the consumer intrigue that might finally, along with a $40,000 slotting check, make the chains take notice. Can it be that that notion is being turned on its head? I think it often. I’ll walk into a dingy New York deli and spy a

BEVERAGE SPECTRUM // NOVEMBER – DECEMBER

200

premium beverage in the cooler – one of those açai drinks or some highfalutin coconut water. “Did somebody from that company actually call on you?” I’ll ask the manager. No, I’d be told, the manager had spotted it in Whole Foods and approached the company. Certainly, the aura-conferring status of Whole Foods can no longer be denied. I’m a bit more dubious about the degree of cachet that accrues from landing on the shelves of Target Stores, but a national or super-regional presence that comes of cracking chains like those seems to lend credibility to a new brand, and opens doors up and down the street. Sure, some of this theory is mere rationalization by marketers who can’t land a decent DSD distributor; also, a heavy reliance on fickle chain buyers carries its own dangers. But as retail consolidation concentrates power into a handful of mega-chains, there’s no question they have become a route to instant awareness and recognition. Crack the chains, and the up-anddown-the-street guys – and the distributors who service them – may follow.

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

18 % LARGER BASKETS

WITH SAMUEL ADAMS.

Mass Domestic basket 18% smaller

Import basket 15% smaller

YOUR SHOPPING CARTS ARE ABOUT TO GROW. Facts prove customers with Samuel Adams® in their carts spend more in your store1. Make sure you are getting these customers to your store by focusing on ad mix, shelf sets, in and out of section displays and cross-promotions with other high-quality and high-margin items. Call 1-800-330-4112 to speak with a Samuel Adams® representative and see how we can grow your profits.

Take pride in your beer.

™

we make something better to drink for everyone including celebrities, soccer moms, superheroes and you

www.glaceau.com

1.877.glaceau