MAY – JUNE 2008

ENERGY DRINKS: FIVE BIG QUESTIONS

ALSO THIS ISSUE: LIZARD KING AND COFFEE FANCY FOOD CHICAGO BUYING BUD?

NEW FEATURE: BEVERAGE SPECTRUM READER SERVICE PORTAL see page 49 for details OFFICIAL ENERGY DRINK DEJJ7FF?D=EKJ

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xyience_bevnet_dblpg_0608.indd 1 6/6/08 4:46:07 PM MAY – JUNE 2008 vol. 6 :: no. 4

28 40

Cover Story 28 :: ENERGY DRINKS Departments 10 :: BEVSCAPE Five questions facing the category. Jones Soda Campaign Cola

14 :: CHANNEL CHECK

Features 26 :: BRANDS IN TRANSITION Stella Artois and Import Beer Sweet ride for Sweet Leaf. 18 :: NEW PRODUCTS

40 :: THE LIZARD KING Revolution 3D, Bud Light with Lime DOES COFFEE and more John Bello, in his new role, takes on Starbucks. 48 :: PROMOTION PARADE Batman’s Milk Mustache

46 :: FANCY FOOD SHOW IN REVIEW Adina shows off after their new Columns 6 :: THE FIRST DROP cash infusion. The beginning of a beautiful relationship

8 :: PUBLISHER’S TOAST Damage control – let’s share the pain

Beverage Spectrum (Postal Number 024-552) is published monthly with combined issues in January/February, May/June, July/August and November/December by Beverage Spectrum Publishing, Inc., a wholly owned subsidiary of BevNET.com, Inc. One Mifflin Place, 3rd Floor, Cambridge, MA 02138. Periodicals postage paid at Boston, MA and additional mailing offices. POSTMASTER: Please send address changes to Beverage Spectrum Magazine, Subscriber Services, One Mifflin Place 3rd Floor, Cambridge, MA 02138-9917.

4 BEVERAGE SPECTRUM :: MAY – JUNE 08

THE FIRST DROP THE BEGINNING OF A BEAUTIFUL FRIENDSHIP

“If the deal gets done, InBev, which is known for its cost-cutting culture, could make deep cuts to Anheuser’s massive ad and marketing budget at is seeks to gain effi ciencies from the high-priced acquisition.” – The Wall Street Journal, 6/12/2008

From: August Busch IV To: Carlos Brito Subject: We. Need. To. Talk.

Carlos: Hard to believe it’s only been a year since you took over! First off, thanks for sending me your most recent suggestion regarding the sale of Moule et Frites at Cardinals games. I’ve already run the idea by Walt Jocketty and, while he seemed less than enthused, I’m sure once he has Tony LaRussa translate it for him he’ll be on board tout de suite. Now to the meat of the issue: are you trying to give my dad a heart attack? Hasn’t the poor guy had enough, what with your sending him to view the Brahma plant in a Speedo? What is with these ideas, man? I haven’t seen anything this nutty since my Eagle Snacks internship. There is NO WAY that anyone will ever accept that we’ve reincarnated Spuds McKenzie as Belgian Malinois. The simple fact is, that dog looks far too much like something guarding prisoners at Guantanamo Bay to sell beer. And speaking of selling beer, why have you cut our marketing budget that deeply, anyway? Slashing our hand-selling initiatives was bad enough – do you know how hard it is for our guys to only buy six rounds for everyone at the bar – but now you say we won’t be able to teach the Clydesdales to drive for our NASCAR commercials? I don’t know what kind of television they have in Belgium, but right here in the good old US of Anheuser, we expect that any sporting event telecast will have ads featuring the following: a horse, monkey, or amphibian doing the impossible, a home-grown rock star, and a jolly ethnic type with a lovable catchphrase. I’m sorry, I know she’s got a great backhand and now works cheap, but Justine Henin does not sell beer. I mean, Carlos, baby, give me a little credit! This isn’t what you want to do. Didn’t we decide we could build InBud on trust, as well as a slightly-higher-that-the-initial-offer share price? We’ve done well so far. We went along with you when you made us start serving Michelob Ultra in waffl e-shaped bottles. I personally didn’t like the idea of calling Bud Light “Bud Bruges,” but our people are adjusting. You’d think that I’d have earned a little trust over there in NATO headquarters. I know you told the powers-that-be that you’d be over here cracking skulls and bringing budgets in line, and that’s fi ne. We all need a little disci- pline, and you’ve fi nally done what we couldn’t – sell Beck’s to Americans. But the cultural changes we’re making don’t have to mean that we’re going to be living in St. Luxembourg. No one wants to visit the St. Louis Arc, after all. Even if they are all of a sudden selling really good chocolate there. The big draw is the view, man. Take one a babe up there and enjoy it. Quit with this whole centralized global culture idea. Lighten up! Show some sophistication! Eat some of those great little cabbages! Also, could you do something about bringing back our old weekly beer allotment? We enjoyed the Hoegaarden, after all, but we’re running out of fruit. Some ice- cold Bud would sure hit the spot. Enjoyed responsibly, over the course of a three hour lunch, natch! Carlos, I look forward to hanging out with you again in the near future. You pick the next event, be it soccer or – eeeecccch! – soccer. But please, please, chill out on the budget cuts. It’s getting to be that a guy can’t even sell a Borba, you know what I mean?

Best, Augie IV P.S. – Sorry I called you an An-Twerp, by the way. I was just kiddin’ around with a nick- name. You know, like W used to? You know?

6 BEVERAGE SPECTRUM :: MAY – JUNE 08 Job # 578773_189081 Ad Name: Hoegaarden Trade Ad Build date: 4.23.8 Trim: 8x10.875 Item #: PNF20089047 Closing date: 5.9.8 Bleed: 8.25x11.125 Publication: Beverage Spectrum QC: SM Live: 7.25x10.125 PUBLISHER’S TOAST

PUBLISHER Barry J. Nathanson [email protected]

EDITOR Jeffrey Klineman [email protected]

ASSOCIATE PUBLISHER John McKenna DAMAGE CONTROL – [email protected]

ART DIRECTOR Matthew Kennedy LET’S SHARE THE PAIN [email protected] GRAPHIC DESIGNER Amadeu Tolentino [email protected]

ASSISTANT EDITOR Matt Casey [email protected]

PRODUCTION MANAGER he economy dominates most of the con- way we market and deliver our products. The Adam Stern versations I have in both my personal and extra burden on the delivery of goods, via each [email protected] professional relationships. As we know, these system, be it DSD, warehouse or hybrid, has BUSINESS MANAGER are not the best of times: we all have watched eroded the beverage marketer’s ability to make John Schinn our 401Ks, IRA’s and portfolios diminish in money, certainly, but it is inadvisable right now [email protected] value. The gas crisis has affected society in ways to pass on these costs to the retailers as they are SUBSCRIPTION INQUIRIES I never imagined that it could, both fi scally struggling to make money with their margins Adam Stern and psychologically. being squeezed. Of course, everyone is afraid to [email protected] 617-715-9679 Here’s what I can tell about what the im- pass on these costs to the consumer. They are pact of this economic crisis has been on the suffering enough trying to pay their mortgages, ONLINE RENEWALS & CHANGES beverage marketplace: put gas in the tank and food on the table. The www.bevspectrum.com/subscribe I talk with dozens of marketers on a daily basis. headlines every day banner the crisis of confi - ARTICLE REPRINTS That is one of the aspects I love most of my job. dence in our economy. It is not a time to raise (500 copies or more) I am privileged to have such passionate friends prices to the populace. So, collectively, everyone FosteReprints 800-382-0808 x142 that help to drive this industry. Their creativity in the chain must take it on the chin for the has brought beverages to great heights and will forseeable future. That way, when things all turn lead us to products that will benefi t our society. for the good, they will for all of us. BEVERAGE SPECTRUM Yet, now they are in a struggle just to survive as One of my favorite credos that I live by is PUBLISHING INC. capital is scarce. When funds are available, it is “this too will pass.” We’ve gone through these CHAIRMAN on onerous terms. Marketers have to take their cycles before and we will emerge from this mal- John F. (Jack) Craven [email protected] eyes off the marketing end to deal with the mon- aise, hopefully, sooner than later. Right now it is etary issues that enable them to live another day. essential for all sides of the beverage equation to PRESIDENT & EDITORIAL DIRECTOR It is sad commentary that they must wear their share in the pain until the turnaround occurs. John Craven [email protected] fi nancial hats fi rst, rather than be the innovators that they set out to be. Frequently, in times of fi nancial crisis, the marketing budget is the fi rst EDITORIAL thing to go. I think that’s penny wise and pound 1 Miffl in Place, Suite 300 Cambridge, MA 02138 foolish. You need to keep selling products, guys, ph. 617-715-9670 fax 617-715-9671 no matter how squeezed profi t margins are. ADVERTISING And to do that, you need to keep marketing 1123 Broadway, Suite 210 New York, NY 10010 ph. 212-647-0501 fax 212-647-0565 those products. Yes, ingredient and packaging costs have soared, eating into the profi t margins of co- BPA Worldwide Member, June 2007 packers and marketers alike. The cost of trans- Barry J. Nathanson, portation has had the greatest impact on the Publisher

8 BEVERAGE SPECTRUM :: MAY – JUNE 08 ©2008 Skinny Nutritional Corp.

BevSpect5-30.indd 1 6/3/08 10:15:18 AM Bevscape WHAT’S HAPPENING ACROSS BEVERAGES

VOTE WITH YOUR DOLLARS WENDY THE ZOTA’S BACK VOICEOVER LADY Zota Green Tea Soda. Is it green tea? Is it soda? Is it an excuse to re- hash a Jerry Sein- feld shtick? It’s all three, and its back. The organic soda brand entered the market by using green tea as the base for a carbonated treat, but the original company couldn’t endure its own Wendy the Snapple Lady is now just Wendy. growth. It boomed then folded before Tom The long-time spokeswoman and the Dr Eggers resuscitated the brand last year. Pepper Snapple Group parted ways recently Now he’s returned the product to shelves over a contract disagreement, according to in a few hundred stores, and aims for na- Newsday. tional distribution in about a year – after a Wendy Kaufman told Newsday that she rebranding that will roll out around the end couldn’t accept the contract because it was of the summer. The updated line will feature one-sided, paying her based on appearances, fair trade certifi ed tea, six fl avors – RazzBer- Jones Soda Co. unveiled a new novelty line that al- with no guarantee that the company would ry, Ginger Pale Ale, Mandarin Grapefruit, lows consumers to cast their presidential vote long schedule any. Island Pineapple, Bling Cherry and Pear before November. Campaign Cola features three va- Greg Artkop, spokesman for DPSG, Dragonfruit – and come packaged in mix- rieties: Capital Hillary Cola for Sen. Hillary Clinton, called the contract “fair,” saying it offered and-match-able four-packs. Each four-pack Pure McCain Cola for Sen. John McCain or Yes We payment for work performed instead of a box features a character that wraps around Can Cola for Sen. Barack Obama. guaranteed fee. He said it was her decision all four sides. Put all four boxes together to Each sells for $14.99 per six-pack or $23.99 per to leave the company and wished Kaufman form one continuous picture, or jumble-up 12-pack and www.campaigncola.com will track pur- “nothing but the best in whatever she does the boxes to create your own character. chases as votes, but all consumers that participate in the future.” Eggers offered a preview of the new pack- in the campaign will get the same thing inside the That future will continue to include ages at April’s All Things Organic show in bottle: Jones’ Pure Cane Cola. pitching products, Newsday reported. Kauf- Chicago, where he said he also started chat- Is Jones saying that all politicians – on the inside man told the paper that she will do voice- ting with Texas grocery chain HEB. – are the same? overs for cellular phone maker Motorola.

ADULTS ONLY Expect the shape of beverage marketing to change in the next few years. Coca-Cola and PepsiCo, along with the International Council of Bever- age Associations, have declared that they will use new voluntary guide- lines to restrict advertising to children. Under the new plan, beverage companies agree to eliminate advertis- ing and marketing of a wide range of beverages – including CSDs – in venues that are predominantly populated by children 12 or younger. That rule cuts across all media outlets including TV, radio, internet phone messaging and movies – so there will be no Pepsi deal for Hannah Montana. As part of the guidelines, ICBA says it will review other forms of mar- keting, including sponsorships, presence in schools, and point-of sale promotions by the end of 2009.

10 BEVERAGE SPECTRUM :: MAY – JUNE 08 N_Xk[f\jfe\f]eXkli\Ëjdfjkgfn\i]lc]fiZ\j _Xm\`eZfddfen`k_k_`jXek`fo`[Xek[i`eb6

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418 North 8th St, Philadelphia, PA 19123 BREWERS NEWS EXECUTIVE MOVES Anheuser’s Dilemma › Bossa Nova has added Larry Wu and Joseph Sain to its Anheuser-Busch received a merger offer from Bel- executive team as chief operating offi cer and senior vice gium-based InBev that would make the combined president of sales, respectively. The new team members will company the largest beer fi rm in the world – produc- report to Alton Johnson, Bossa Nova founder and CEO. ing more than 12 billion gallons annually. Wu was most recently VP, Consumer Strategist for Icon- InBev offered to buy the St. Louis-based brewery’s oculture. Sain joins the company from Cadbury Schweppes outstanding stock for $65 per share - just over $46 Americas Beverages. billion in total. As part of the proposal, InBev sug- › Royal Buying Group, Inc. has promoted Sharon Porter, gests making St. Louis the company’s North Ameri- formerly RBG’s Director of Business Development, to Di- can headquarters and the global home of the fl agship rector of Vendors & Business Development. Ms. Porter Budweiser brand. The Belgian company would also joined Royal Buying Group, Inc. in 2003. maintain all of Anheuser-Busch’s U.S. breweries. › The American Beverage Association has elected fi ve new “Together, we would draw on the collective ex- members to its board of directors. The new members are pertise of both companies’ management and em- Rodger L. Collins, president, bottling group sales, Cad- ployees,” said Carlos Brito, chief executive offi cer of bury Schweppes Americas Beverages; Hugh F. Johnston, InBev. “We also recognize the great contribution of president, Pepsi-Cola North America; Robert M. Levi, Anheuser-Busch ‘s wholesalers to the company’s suc- group vice president and president, beverages sector for cess and would work closely with them, under the Kraft Foods; Lawrence J. Lordi, president, Coca-Cola three-tier system.” Bottling Company of Northern New England; and Claude Pale Moon Rising B. Nielsen, chairman and CEO, Coca-Cola Bottling Com- Coors Brewing Company plans to add Pale Moon pany United, Inc. as a pale little brother to their successful Blue Moon › Stirrings has announced that Robert Swartz, former Vice beer. The Blue Moon line now includes a full selec- President of Sales at Terlato Wines International, will join tion of seasonal beers, and Beer Business Daily re- the company as its Chief Executive Offi cer. ported that Coors anticipates selling 1 million barrels › Janet DiGiovanna and Danny Rubenstein, who were of Blue Moon in 2008. directly involved in the creation of Naked Juice, Pom Wonderful, Odwalla and Tazo brands, have joined with Hot Chill SENCE-Worldwide to structure on- and off-premise ac- Miller Brewing Company won four “Hot Brand” counts nationally and internationally. awards from industry newsletter Impact. The news- › The International Bottled Water Association (IBWA) has letter recognized Miller Chill, Sunset Wheat, Peroni announced that Tom Lauria has joined the association as and Sparks Plus, giving Miller more awards than any Vice President for Communications. other brewer. › The Sunny Delight Beverages Co. has named Rick Suchenski Canned Tire Vice President and team leader for Fruit2O fl avored water. New Belgium Brewing Co. will offer its fl agship beer › Boo Koo Holdings, Inc. has appointed Gil Cassagne, for- – Fat Tire – in cans so the brew can be sold in places merly Chief Executive Offi cer of Cadbury Schwepps Amer- where glass bottles aren’t an option. icas Beverages, Jack Belsito, formerly President of Snapple Distributors, Inc. and Joe Bayern, formerly Chief Strategy Magic Pyramid? Offi cer of Cadbury Schwepps Americas Beverages, to its Magic Hat brewing company is moving to buy Pyra- Board of Directors. mid Breweries Inc. Pyramid signed a letter of intent › SABMiller plc and Molson Coors Brewing Company have under which Magic can buy the company for cash announced the MillerCoors leadership team. Leo Kiely, amounting to about half Pyramid’s total stock value. current CEO of Molson Coors, will be the CEO of Miller- The brewer posted a loss at the end of 2007 and an- Coors; Tom Long, current CEO of Miller Brewing Com- nounced plans to cut staff, but the acquisition would pany, will serve as President and Chief Commercial Offi - give Vt.-based Magic Hat a West Coast presence. cer; Tim Wolf, current CFO of Molson Coors, will be the New Channel for Grolsch Chief Integration Offi cer; and Gavin Hattersley, current Anheuser-Busch plans to terminate its U.S. import- Senior Vice President of Finance at Miller, will be the Chief ing rights to Grolsch, which Miller will pick up. An- Financial Offi cer. In addition, the following appointments heuser-Busch has imported Grolsch since April 2006 to the MillerCoors leadership team will become effective under an agreement with brand owner Royal Grolsch upon the closing of the transaction, which is expected to NV. In February 2008, SABMiller plc, parent com- take place June 30, 2008: Tom Cardella, Eastern Division pany of Miller Brewing, completed its acquisition of President; Ed McBrien, Western Division President; Andy Royal Grolsch NV and the Grolsch brands. The fi - England, Chief Marketing Offi cer; Dennis Puffer, Chief nancial terms of the deal have not been disclosed. Operations Offi cer; Karen Ripley, Chief Legal Offi cer.

12 BEVERAGE SPECTRUM :: MAY – JUNE 08 Thank you for making us #1.

You’re number one, too. Thanks to our retail partners, distributors and all of America for making FIJI Water the best-selling premium bottled water in the U.S.* We’re proud to be more than just the best-tasting water, but also the top-ranking premium bottled water. Thank you for your partnership and support. FIJIWATER.COM

*Source: IRI FDMx 52 Weeks Ending 2/3/08 & IRI Convenience Stores 52 Weeks Ending 12/30/07; Volume and Dollar Sales.

13571 Telefl ora Fiji Water- ThankYou PageLS: 150 Rnd: 1.0 1:10 AM 02/10/08 BEVERAGE SPECTRUM MAG. QC(Operator) : QC(Production) : Channel Check may – june 2008

IMPORT BEER Dollar Sales Change vs. year earlier SPOTLIGHT CATEGORY Category Total $2,005,363,000 2.8% Corona Extra $481,857,900 -2.7% Import Beer Heineken $323,368,600 5.5% Corona Light $134,419,600 4.4% 52 Weeks ending 5/18/2008 Tecate $97,887,140 10.5% Guess who’s benefiting from that good Heineken Light $75,255,690 15.9% old on-premise push? Stella Artois, that’s Modelo Especial $63,173,530 11.9% who. Looks like that pretty glassware is Newcastle $53,649,630 6.7% starting to rub off in the supermarket aisles. Meanwhile, Corona might have Guinness Draught $51,258,880 3.2% finally peaked, showing declines that Labatt Blue $48,935,680 -2.4% might mean it’s no longer considered Becks $44,758,240 -8.3% some kind of exotic product. Either that, Pacifico $43,485,540 -0.8% or people are just moving to other Mexi- Stella Artois $43,065,430 40.2% can beers – take a look at the growth for Tecate, Dos Equis, and Modelo. Arriba! Amstel Light $41,350,930 -8.4% Meanwhile, over in Holland, that Hei- Fosters $34,933,830 -4.5% neken Light continues to be a growth Labatt Blue Light $30,769,200 3.8% brand; wonder if the brewers will be able to pick Amstel back up? Heading Up: Stella Artois SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart

BOTTLED WATER ENERGY DRINKS $4,178,258,000 $850,453,900 8.0% 18.4% BEER TOPLINE CATEGORY SPORTS DRINKS $6,078,317,000 $1,655,344,000 VOLUME 2.1% 4.2% 52 Weeks ending 5/18/2008 BOTTLED JUICES TEA/COFFEE $3,797,773,000 $1,453,990,000 1.6% 8.3%

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

14 BEVERAGE SPECTRUM :: MAY – JUNE 08 CS1014 Bev World ad:Layout 1 5/27/08 1:31 PM Page 1

CHRISSIE WELLINGTON. RYAN BRAUN. BRANDON ROY. ADRIAN PETERSON. Rookies of the Year. Winners. Dreamers living their dreams. We salute you. Oh yeah – there’s one more thing they have in common. Muscle Milk®. Feed your dreams. 20,CTSOT eii,C 94510 CA Benicia, CYTOSPORT, ©2008,

www.musclemilk.com Channel Check may – june 2008

RTD TEA Dollar Sales Change vs. year earlier ENERGY Dollar Sales Change vs. year earlier AriZona $294,436,500 4.2% Red Bull $356,786,800 18.1% Lipton $268,033,400 20.8% Monster $145,283,300 30.1% Snapple $129,835,300 2.9% Rockstar $99,123,140 15.3% Lipton Brisk $86,124,500 -2.6% Full Throttle $40,192,240 -15.4% Diet Snapple $80,853,780 -5.7% Amp $31,328,030 19.4% Nestea $64,315,230 4.9% SoBe No Fear $20,972,220 -41.0% Lipton Iced Tea $39,067,970 -35.9% Monster XXL $16,842,810 109.7% Private Label $37,306,680 14.1% Rockstar Juiced $12,979,010 108.0% Lipton Pureleaf $32,604,110 N/A SoBe Adrenaline Rush $12,550,000 -29.2% Nestea Enviga $20,468,930 22.9% Java Monster $12,474,720 230,622.6% Heading Up: Enviga 52 Weeks through 5/18/08 Heading Up: Java Monster 52 Weeks through 5/18/08 SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart

RTD COFFEE/CAPPUCCINO Dollar Sales Change vs. year earlier CONVENIENCE/PET STILL WATER Dollar Sales Change vs. year earlier Frappuccino $191,263,100 4.5% Private Label $682,870,000 18.1% Doubleshot $25,485,010 -6.8% Aquafina $485,452,400 -7.4% Starbucks Iced Coffee $13,719,550 11.4% Glaceau Vitaminwater $448,331,700 94.8% Bolthouse $12,565,300 11.2% Dasani $441,681,300 -3.6% Doubleshot Light $11,056,350 6.9% Poland Spring $247,425,700 -7.2% Godiva Belgian Blends $6,812,917 -3.5% Propel $191,560,800 -1.6% Cinnabon $2,008,446 283.0% Arrowhead $181,252,900 -0.4% Private Label $1,982,749 636.5% Deer Park $136,373,400 -8.1% Frappuccino Cappucino $1,065,882 N/A Nestle Pure Life $123,553,900 18.9% Starbucks Cappucino $704,468 77,965.0% Crystal Geyser $105,397,400 -2.5% Heading Up: Cinnabon 52 Weeks through 5/18/08 Heading Up: Glaceau Vitaminwater 52 Weeks through 5/18/08 SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart

SPORTS DRINKS Dollar Sales Change vs. year earlier DOMESTIC BEER Dollar Sales Change vs. year earlier Gatorade $619,748,500 -9.4% Bud Light $1,461,529,000 2.8% Powerade $251,720,400 13.0% Miller Lite $746,253,200 2.6% Gatorade Rain $147,960,300 7.3% Budweiser $732,539,400 -3.7% Gatorade Frost $139,555,300 -3.2% Coors Light $675,767,600 6.8% Gatorade All Stars $133,991,000 12.7% Miller Genuine Draft $157,480,100 -7.8% Gatorade Fierce $84,703,610 -10.2% Budweiser Select $97,575,460 -17.3% Gatorade X Factor $74,136,950 -19.7% Coors $67,287,150 8.3% Gatorade AM $68,517,990 220.7% Yuengling Lager $45,585,460 20.7% Gatorade G2 $61,956,130 N/A Bud Ice $26,080,490 9.5% Gatorade Tiger $20,470,940 N/A Miller Genuine Draft Light $20,230,740 -8.2% Heading Up: Gatorade AM 52 Weeks through 5/18/08 Heading Up: Yuengling Lager 52 Weeks through 5/18/08 SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart

16 BEVERAGE SPECTRUM :: MAY – JUNE 08

NEW PRODUCTS

BEER mation on Revolution 3D and the full line of inno- vative Revolution products, call (888) 321.4738. Budweiser has launched Bud Light Lime, a crisp Nestea has restaged its ready-to-drink iced tea light lager beer that combines Bud Light with a product line, with new graphics, sleek straight- splash of 100 percent natural lime flavor. Bud Light wall bottles and the introduction of Green Tea Lime contains 4.2 percent alcohol by volume (also Citrus and Diet Green Tea Citrus products with available in 3.2 percent ABW) and is available in 50 percent more antioxidants than before. The 12 oz., clear glass bottles, 22 oz. single-serve bot- new Green Tea products and packaging are now tles and 16 oz. aluminum bottles. It is line-priced available nationwide. Nestea is available nation- with other Bud Light products. For more info, visit wide in multiple packaging options to meet a va- www.anheuser-busch.com. riety of customer and marketplace needs. Green Peak Organic Brewing, producers of gourmet, Tea Citrus and Diet Green Tea Citrus will be pack- certified organic ales, is collaborating with lo- aged in distinctive straight-wall 20 oz. and half- cal farmers and like-minded small businesses to liter PET bottles, as will Nestea’s Iced Tea with create a delicious Maple Oat Ale. The Maple Oat Lemon and Diet Iced Tea with Lemon flavors. Iced Ale is brewed with Maine-grown organic oats Tea with Lemon also comes in aluminum cans from granola company GrandyOats and Vermont- and 2-liter PET bottles. NESTEA products are sold produced organic maple syrup from Butternut in supermarkets, convenience retail, drugstores Mountain Farms in Morrisville, VT. The beer and other retail stores. For more information, is in support of Chef’s Collaborative a national call (404) 676-1070. chef-led organization dedicated to promoting The signature eye-catching graphics and bright- local, sustainable cuisine. This product will be ly colored full shrink label of FUZE’s iconic 18 oz. available in Maine and Massachusetts. MSRP glass package have been replicated in an all-new $7.99-$8.49. For more information, call Peak Or- 18.5 oz PET bottle. The FUZE PET bottles are the ganic at (603) 475-3226. easiest and most common plastics to recycle and Beginning May 1st, Point Nude Beach Sum- are made of polyethylene terephthalate (PETE) mer Wheat, a satisfying unfiltered wheat ale, will and are assigned the number 1. Once the plastic be available in 12 oz. bottles and kegs wherever is processed by a recycling facility, PETE can be- Point brands are sold. Point Nude Beach Sum- come fiberfill for winter coats, sleeping bags, life mer Wheat is a fun, refreshing beer for hot sum- jackets, other plastic bottles, etc. All eighteen fla- mer afternoons and evenings. With a rich golden vors of FUZE products will be available, including color reminiscent of an early summer tan, Point the Slenderize, Refresh, Tea and Vitalize platforms. Nude Beach Summer Wheat is brewed with “au The nutritious and newly portable bottles will re- naturel” raw white wheat, malted red wheat and main free of aspartame, preservatives and high highly kilned specialty barley malts. For more in- fructose corn syrup and will be available for an formation, call (715) 344-9310. average suggested retail price of $1.79. For more information, call Fuze at (201) 461-6640. TEA POM Wonderful’s POM Tea is now available in a larger 16 oz. plastic bottle. POM Tea is an all-nat- Revolution Tea has launched a new multi-dimen- ural blend of POM Wonderful Pomegranate Juice, sional beverage: Revolution 3D. Revolution 3D is premium, whole-leaf, hand-picked tea and POMx, a first-of-its-kind combination of antioxidant-rich the most potent, antioxidant-rich pomegranate ‘super fruits’, multi-vitamins, and premium white extract available. Due to the gentle brewing pro- tea in an all-natural drink. Revolution Tea is re- cess, POM Tea is naturally low in caffeine, aver- leasing four refreshing 3D flavors: Green Apple, aging only 2 mg per serving, and Pomegranate Blueberry, Mango and Pomegranate in sleek 12 Orange Blossom Red Tea contains no caffeine at oz. cans and four-packs. Each innovative 3D for- all. POM Tea is available in seven flavors including mulation contains 100 percent of the daily recom- Pomegranate Tea, Pomegranate Lychee Green Tea, mended value of Vitamin C and is sweetened only Pomegranate Blackberry Tea, Pomegranate Peach with cane sugar and agave syrup. For more infor- Passion White Tea, Light Pomegranate Wildberry

18 BEVERAGE SPECTRUM :: MAY – JUNE 08 Developed specifically for kids, Kid FuelTM is fun to drink AND nutritious — in four great flavors.

PLUS: Kid FuelTM gets noticed on retail shelves with eye catching, innovative, kid-friendly packaging that features 8oz. easy-to-hold, contoured bottles with spill-proof, sip-top caps. Great margins to drive profits. For more information and to carry Kid Fuel: Clear Beverage Corporation 8379 W. Sunset Road, #130 Las Vegas, NV 89113 Phone: 866.543.3853 Email: [email protected]

©2008 Clear Beverage Corp. White Tea, Light Pomegranate Hibiscus Green Tea SMOOTHIES and Light Pomegranate Orange Blossom Red Tea. Light POM Teas are sweetened with erythritol and Naked Juice has introduced a new fl avor to its fructose and contain only 35 calories per serving. popular Naked Juice Protein Zone line, Banana POM Tea is available nationwide in the refriger- Chocolate. Like all Naked Juice products, Protein ated section of produce departments next to POM Zone Banana Chocolate has no added sugar or Wonderful Pomegranate Juice. The suggested re- preservatives – ever. Additionally, every 15.2oz tail price for POM Tea is $2.99. For more informa- bottle of Protein Zone Banana Chocolate contains tion, call POM Wonderful at (310) 966-5858. 30g soy and whey protein, 1 banana, 12 cocoa beans, 87 white grapes, and a hint of coconut. Na- ked Juice Protein Zone Banana Chocolate will be available in grocery stores nationwide, with a sug- gested retail price of $3.29. For more information, NEW DRINK REVIEWS please contact Naked Juice at (626) 633.8384.

JUICE Naked Juice Protein Zone CurrantC Northland has introduced new Pomegranate Plus, signifi cantly enhancing the proven health benefi ts Function Drinks (new fl avors) of pomegranate juice through the addition of 10 Hint Water (new fl avors) essential vitamins and minerals. Pomegranate Thomas Kemper Cane Sugar Sodas Plus is available in Pomegranate Blueberry and Atomic Dogg Energy Pomegranate Cherry, and sold in 64 oz. bottles. In addition to the high level of antioxidants , Pome- Revolution 3D granate Plus has been fortifi ed with Vitamin C, ! Energy Calcium, Iron, Vitamin B3, Vitamin B5, Vitamin B6, Mana Energy Potion Vitamin B12, Biotin, Magnesium and Zinc – and Fizz Ed contain no added sugars or sweeteners. Pome- granate Plus will be available in grocery stores, Whey Up (new fl avors) club stores and health food stores nationwide at a On Go Energy Shot suggested retail price of $3.50-$4.50. For more in- Iyemon Cha formation about Pomegranate Plus, and complete Apple and Eve Fruitables nutritional information, call (516) 222-0236. Tropicana Coastal Groves Lemonades are a new LIV Organic Sports Drinks premium line of 100 percent natural lemonades Boozer with no artifi cial sweeteners or preservatives. It BAWLS Guarana EXXTRA will be available in three fl avors: Original Lemon- Faded Energy ade, Raspberry Lemonade and Peach Lemonade. The launch of Tropicana Coastal Groves includes Maté Fusion an on-package commitment from Tropicana to Dahlicious Lassi partner along with Habitat for Humanity to help Talking Rain TWIST Organics rebuild the U.S. coastal regions. All three fl avors M13 Functional Juice of Tropicana Coastal Groves Lemonade will be available in 64 oz. Located in the chilled juice case, Kaboom Pomegranate (reformulated) the suggested retail price is $2.99. This product Bain Toniq will also be available in a 12 oz. single serve size Infused Owater (new fl avor) with a suggested retail price of $1.79. Consum- ers can fi nd more product information by visiting www.tropicana.com. From April 28, 2008 to press time. Simply Orange Juice Company has added two To see reviews, visit www.BevNET.com new varieties to the successful Simply line: Simply Orange with Mango and Simply Orange with Pine-

20 BEVERAGE SPECTRUM :: MAY – JUNE 08 apple. Both start with the fresh-squeezed taste of aloe vera pulp, and ALO Awaken, a unique blend 100 percent not-from-concentrate Simply Orange of aloe vera and real wheat grass extract. ALO is orange juice, blended with not-from-concentrate available in a 500mL as well as a 1.5L bottle and is mango juice and pineapple juice, respectively. shelf stable, with an SRP of $1.69 - $3.99. For more The new products will begin shipping to retail- information call (800) 223-4438. ers in mid-August. Simply Orange with Mango Noble Juice has three new flavors with a deli- and Simply Orange with Pineapple are packaged cious all-natural taste and plant-based PLA pack- in the unique 59 fl. oz. clear Simply carafe. The aging - the environmentally friendly alternative launch of the new products will be supported to petroleum. The brand new Noble Juice flavors with a comprehensive marketing program that include exotic Sicilian Blood Orange juice, an Ital- includes a multi-media advertising plan, a public ian citrus specialty celebrated for its tart and tangy relations campaign, consumer promotions and in- flavor, and Tangerine Cranberry. The company store sampling. For more information, call (404) has also introduced Organic Lemonade, made 676-1070. with 100 percent organic lemons and sweetened NBI Juiceworks is with organic cane juice. Noble Juice is available introducing a new nationwide in Wal-Mart, Publix, A&P, Food Em- line of highly nu- porium, Stop and Shop, Shop Rite, and Whole tritional, all natural Foods, among other large grocery chains and 100% Super Juices has a MSRP of $3.29 for a 32oz bottle. For more called Drenchers. information about the Noble Juice line of super- Drenchers is a new premium juices, visit www.noblejuice.com. brand with three separate lines: Super Juice (fortified juices), Super ENHANCED WATER Blends (fortified coffee and tea beverages), and Fit N’ Lean – a fortified, Super Juice beverage with Old Orchard Brands has introduced a unique en- less calories than the original Super Juice. The try into the functional beverage category today Super Juice and Fit N’ Lean lines are available in with FruitSense, the first vitamin water available 12 oz. and 64 oz. sizes. The pricing for the 12 oz. is in multi-serve, 64 oz. bottles. It is available na- $1.99 and for the 64 oz. $4.99. For more informa- tionwide at SuperTarget stores and at traditional tion, call NBI Juiceworks at (312) 768-7358. grocery stores with a suggested retail of $3.49 Apple & Eve, the all-natural fruit juice pioneer, per bottle. FruitSense is available only in large, has just launched the company’s first 100 percent lightweight plastic bottles typically reserved for fruit and vegetable blend. New Fruitables are a 100 the fruit juice aisle of the grocery store, a move percent juice blend of fruits and vegetables, with that suggests flavored-waters are headed toward each 8 oz. glass delivering 2 servings of fruit and traditional “at-home” consumption in what has vegetables from the 5-a-Day Fruit and Vegetable traditionally been a single-serve “on-the-go” program. Each serving also provides the healthy segment. With 5 percent fruit juice, FruitSense antioxidants A and C. Fruitables are available in is being offered in six flavors, each supporting two delicious flavors: Orange Passion and Straw- a distinctive health benefit: Key Lime Colada is berry Mango. Fruitables are available in 46 and enhanced with EGCG to help boost metabolism; 64 oz. bottles, and will be sold in grocery stores, Pomegranate, Blueberry, Mangosteen includes club stores and health food stores nationwide. Co-enzyme Q10 for heart health; Kiwi Dragonfruit They will retail for $2.68 for a 46 oz. bottle at su- contains ginseng and taurine for natural, caffeine- permarkets and $5.79 for a twin 64 oz. package at free energy; Strawberry, Peach, Melon includes club stores. For more information about Fruitables hibiscus, vitamin D, and magnesium to combat and complete nutritional information, visit www. stress; Tangerine Grapefruit includes zinc and appleandeve.com. Echinacea for preventative health; and Cranberry, ALO is a refreshing line of unique drink alter- Raspberry is blended with calcium, vitamin D and natives made with real aloe vera pulp. All natu- iron for women’s health. For more information, ral, with no preservatives, no artificial colorings, call Old Orchard at (616) 233-0500. and no artificial flavors, Alo comes in two flavors: Skinny Nutritional Corp. has introduced a new ALO Exposed, an original blend infused with real line of multi-functional Skinny Waters that de-

22 BEVERAGE SPECTRUM :: MAY – JUNE 08 Dailys Ice Bops Bev Spec.MECH:Layout 1 5/16/08 9:15 AM Page 1

TAKE A LOOK AT THE FUTURE OF KIDS’ BEVERAGES © Disney/Pixar ©2008 American Beverage Corp. Verona, PA 800.245.2929 www.ambev.com

INTRODUCINGICEBOPS - Shelfstablejuiceslushie - Availablein4vitaminrichflavors -Lowinsugar - Highinantioxidants - Goesconvenientlyintoyourfreezerthenisserved asaslushierightoutofthepouch! - FeaturesDisney-PixarWall*E liver a variety of health benefi ts: $1.69 per 16.9 oz. PET bottle. For more informa- weight control, multi-vitamins, tion call Function at (310) 729-5596. antioxidants, and energy boost- Multi-Vitamin Energy ers-all formulated with zero calo- Corp. is back with a new ries, zero sugar, zero sodium, line of seven natural mul- and zero preservatives. The new tivitamin enhanced waters line includes four great-tasting rich in electrolytes and an- fl avors: Raspberry Pomegran- tioxidants. The company’s ate (Crave Control) helps control cravings, aids low-calorie line features in weight loss, and includes polyphenol-rich fi ve fl avors: dragonfruit, pomegranates, one of the most powerful anti- mango-passion, lem- oxidants. Passionfruit Lemonade (Total-V) is a onade, kiwi-strawberry and tropical punch. The comprehensive multi-vitamin formula. Goji Fruit company’s zero-carb, zero-calorie drinks come in Punch (Shape) includes the key ingredient Goji cranberry-pomegranate-acai and green tea with berry, while Peach Mango Mandarin (XXX-Detox) honey and ginseng fl avors. The waters are avail- includes three antioxidants: Hesperidine, a citrus able in 20 oz. PET bottles at supermarkets, gro- bio-fl avonoid that strengthens immunity; Lutein, cery stores, restaurants, convenience outlets and which assists with UV skin protection; and EGCG, other retailers in the eastern United States, this a green tea catechin. All Skinny Waters have three product has an SRP of $1.39 per bottle. For more key ingredients: Super CitriMax, ChromeMate, information, call Multi-Vitamin Enhanced Water and EGCG. Each 16.9-ounce bottle of Skinny Wa- at (201) 303-2903. ter will be available at a suggested retail price of $1.49. For more information call (610) 228-2138. CSDs Originally created by an Orthopedic Surgeon, in partnership with one of Thomas Kemper Soda Co. has unveiled a new the founders of Celestial Seasonings premium soda collection sweetened with natural Herb Teas, Osteo is the fi rst beverage cane sugar. Craft brewed in small batches, the line to specifi cally target the issue of new Thomas Kemper Cane Sugar Soda collection promoting bone health and increas- debuts this May in fi ve favorite fl avors, includ- ing awareness for the worldwide epi- ing the brand’s best-selling Root Beer. Unique demic of Osteoporosis. With high lev- to Thomas Kemper is the use of pure Northwest els of Calcium and Vitamin D, as well honey, which lends a distinct natural sweetness, as B, C - combined with High Sierra rich creaminess and smooth fi nish, complement- Spring Water, natural fruit juices, min- ing other natural ingredients such as Madagascar erals, magnesium and boron, Osteo is vanilla and Jamaican ginger. The company is also a cutting-edge nutraceutical drink that combines releasing Vanilla Cream, Orange Cream, Black great taste with health awareness. It is available in Cherry and Ginger Ale. The cane sugar sodas will three pasteurized fl avors, Tropical Tisane, Orange- be available at retailers across the U.S. this May Pom and Lemonberry. With an MSRP of between in single bottles (SRP $1.29), six-packs (SRP $5.99) $2.29 and $2.49, this product will be available in 12 and 12-bottle sampler packs (SRP $12.99). oz. glass bottles. For more information, please go to Osteobev.com. SPIRITS Function Drinks has released additional fl avors for two of its products, Function: Urban Detox and New from Proximo, 1800 Silver Select Tequila is a Function: Light Weight. The new additions to the 100-proof, 100-percent agave tequila. It is the lat- Function line are a Function: Urban Detox, Goji est addition to the 1800 tequila line. It is double- Berry and Function: Light Weight, Blueberry Rasp- distilled and blended with a touch of aged tequila berry. The company has also launched Function: to product a nuanced taste. This product is avail- Night Life, which helps promote sexual health able in 375 ml, 750 ml and 1 L sizes and is priced at with a proprietary, all-natural formula. These $29.99 for a 750 ml bottle. For more information, products will be available nationally and will be call Proximo spirits at (212) 277-7286. line-priced with other Function Drinks products at

24 BEVERAGE SPECTRUM :: MAY – JUNE 08

BRANDS IN TRANSITION

SWEET RIDE FOR SWEET LEAF BY MATT CASEY

ustin, Tex. has gone through some pretty That’s not to say that Sweet Leaf hasn’t been two weeks, Christopher said, and their bottles big changes in the past couple of decades. good at opening new markets in the past. For were ugly. In 2002, he shut the company down Riding the wave of the dot-com bubble, it went years, the founders would survey new retail are- for fi ve months to roll out a shelf stable prod- from laid-back college town to a good-life- nas and then wiggle into delis and convenience uct. As soon as he did, he said, he landed a deal seeking-Yuppie-infested new economy hub. But stores. But there’s an imperative that comes with with his hometown grocery giant, Whole Foods. with the growth of Whole Foods, Hewlett Pack- the Catterton money, an imperative to leave the Within eight months, Sweet Leaf was the num- ard and Hoovers, Inc. attracting MBA-types to nest of Whole Foods and upper-middle class ber one selling RTD tea in the natural food gi- the area, it’s gotten pretty tough on the natives. sandwich joints, and fl y into new cities and ant’s southwest region. In fact, despite the benefi ts that a growing econ- mainstream supermarkets. The company’s growth has only continued omy offers an urban center, things have gotten Shoved or not, Christopher says that the new since then – especially in Austin. Brad Miller, the so bad for the locals that they introduced a new bankroll is unlikely to clash with any hippie general manager of the Austin Beverage Compa- slogan: Keep Austin Weird. sensibilities at Sweet Leaf. The ex-charter boat ny, said he’s carried Sweet Leaf since 2002, when Similarly, another home-grown Austin enter- captain and college dropout has always taken a he placed an order for two mixed pallets. Now prise is about to enter the local struggle between conservative approach to his business. He kept he moves 65-70 pallets a month to convenience character and capitalism: Sweet Leaf Tea. Sweet marketing budgets tight and only moved into stores, delis and Aramark food services. Leaf might have started out with pillowcases new places when the time was right – even going Christopher said his company reaps $2 in per for teabags and water from a garden hose, but so far as to say “no” to distributors that wanted capita sales per year in Austin, which he consid- lately the only thing the pillowcases have been to carry his product in what he felt were the ers the company’s only “mature” market, and a good for is carrying the company’s cash. Last wrong markets at the wrong times. model for exploring new territory. month, venture capital group Catterton Partners Still, if Christopher isn’t necessarily a Texas “We still probably say no more than we say cut Sweet Leaf an $18 million check, and that slacker, there’s a bit of Austin’s Hill Country yes to DSD distributors,” Christopher said. means the company has reached the same cross- attitude that helped make Sweet Leaf such a Currently, he has his sights set on Chicago and roads as Austin. Now that Sweet Leaf founder success in the fi rst place. Now Christopher will the Northeast. He also wants to intensify his Clayton Christopher has cashed that check – couple that attitude with a venture capital part- company’s music tie-ins – another trick that and used at least a portion of those proceeds ner that, he said, brings “more strategic value grew out of the company’s Austin origins. The to buy out a few early investors – the question than just the check.” city calls itself “the live music capital of the is whether the product will be able to keep its “We went with Catterton because they have world,” and Christopher used the area’s music down-home sense of fun even as it tries to move deep industry experience,” he said. The com- festivals as guerilla sampling and sponsorship into new markets. pany has a record of success that includes Kettle opportunities. Now, he said, he wants to spon- Foods, Odwalla, and Gold Coast Beverages Dis- sor bands. The company received calls from Par- tributors, one of the largest beer and beverage amore and Joss Stone – who said they’re fans of distribution companies in the U.S. the brand – but Christopher can’t say whom he Still, the money helps. In addition to buying might sign a deal with. out some existing shareholders, Christopher said And while most of Sweet Leaf’s current tactics Sweet Leaf will use the windfall to bolster sales can be summed up as embellishments of ear- and marketing across the U.S., and help the lier themes, the company recently introduced company move into mainstream channels. plastic bottles, a departure from its long-time As the marketing team swells, they’ll use a lot glass-only model. Miller greeted that change of the tactics learned in the company’s early days. with hesitation. Once the company targeted a market, they “There’s an impression – a belief – that good committed to it. Company personnel spent their tea only comes in glass,” Miller said. “For years weekends at retail locations passing out samples. the only tea you bought in plastic was crap.” Christopher said the only way his brand could But, he said, he understands why Sweet Leaf work is if people fell in love with it. introduced plastic. Plastic bottles can be sold in Early on, the brand wasn’t without its prob- more places, like schools, which is one place the SWEETLEAF FOUNDER CLAYTON CHRISTOPHER WITH LONGTIME FRIEND AND BUSINESS PARTNER DAVID SMITH. lems. The kitchen-produced product spoiled in product is headed.

26 BEVERAGE SPECTRUM :: MAY – JUNE 08 (ALF0AGE"EV3PEC VERTPDF0-

Some students in Texas can already buy Sweet Leaf at school, and the company is working on deals with Florida and Colorado. Christopher said Sweet Leaf in schools is a “win-win” for the company. It puts money in the till and builds the product’s future customer base – though Miller isn’t certain that he’ll be serving those Sweet Leaf converts when they get their own disposable income. Miller said he’s been in the beverage distribution business for a while, and he’s seen this pattern before. Catterton’s $18 million investment in Sweet Leaf represents one step on the road blazed by SoBe and Izze from plucky startup to Coke or Pepsi property – which takes the product out of the independent distribution system. Miller noted that Coke’s Gold Peak RTD tea brand isn’t performing as well as it could, and Sweet Leaf would be a fi tting replacement. But it may turn out that nobody sells Sweet Leaf Tea in the near fu- ture. The company never fi led for federal trade mark protection, and when United American Industries Inc. started selling stevia sweeteners under # the Sweet Leaf brand name, they sent Christopher’s RTD tea company a cease and desist letter. Sweet Leaf Tea responded by fi ling a suit against- United American, according to the Austin Business Journal. While Sweet9

Leaf never fi led a trademark, they did put ten years and millions of dollars#- behind building the brand, which, according to Sweet Leaf attorney Craig -9 Tyler, affords the company a common-law trademark claim. Christopher said the two companies are already talking, but he add-#9 ed that he doesn’t think Sweet Leaf losing its name would be a disas-#-9 ter for the company. “I’ve even said ‘Sweet Leaf’ has pigeonholed us+ a little bit because we have non-sweet fl avors and diet fl avors,” Christopher told the ABJ. Regardless of the company’s name, Sweet Leaf’s board has a little ex- perience with the startup-to-buyout plan. Christopher recently pulled in Nantucket Nectars founder Tom First. And Christopher isn’t saying “no” to the idea of joining one of the country’s beverage empires. “Four to fi ve years from now, we could have the option to bring in a larger investor,” he said. He added that he liked the deal that Honest Tea brokered with Coke. Honest sold a 40 percent stake in the company to the soda giant, but the deal left co-founders Seth Goldman and Barry Nalebuff and longtime advisor Gary Hirshfeld in control of the company’s fi ve-member board. But the future is far from certain, and, at the moment, Christopher said he’s currently having fun with his business. “We have a board that is very much in agreement around the strategy we’re going to use to grow the brand,” he said. “Life is good.”

MAY – JUNE 08 :: BEVERAGE SPECTRUM 27

the energy drink explosion rolls into its second enfant terrible, or at least try to shift shelf space to maximize growing its decade, the game is changing and the stakes are own products, costing Rockstar space for brand extensions. higher. It’s true that the products are only about a In addition to core brands, the “juiced” energy category has been grow- generation old in the U.S., but what a generation ing for the past few years – both Monster and Rockstar’s blends have be- it has been: for many consumers, the products have moved from edgy come top sellers. But a question retailers should ask themselves is whether curiosity to lifestyle necessity. Nevertheless, there are still plenty of people they want to rely on their most successful brands and their line extensions wondering what Red Bull or Monster taste like, or trying to determine the or continue to shuffle through other offshoots to see if something catches difference between Gatorade and Rockstar. fire. With so much variety out there, it might be worthwhile to see if So in many respects, energy drinks are at a crossroads: do they become your customers are looking for something nontraditional, and perhaps by as ubiquitous, the CSD’s of their day, as some expect, or do they remain another manufacturer. an item that fills the functional niche – albeit a large one – that lies be- Some retailers are starting to address the issue by dividing their drinks tween coffee and Diet Coke? up by functionality; this will be especially important as more functions With the category’s estimated $4.8 billion in sales at stake, it’s a big start to cross over into the energy drink sector. It’s already happening question, and the answer isn’t likely to arrive right away. But there are with sports drinks. some ongoing issues whose resolution will likely affect the way retailers and distributors treat energy drinks by the end of the next generation, 2 Poor taste and poor judgment: Will crassness and caffeine ten years hence. get them banned? And will there be backlash in your store?

1 How many hybrid products will the category accept? Recently, South Bend, Ind. convenience store owner Candy Gioupis put up a hand-lettered Perhaps the largest limiting factor for energy sign telling kids under 18 that her Quik- drinks has been their taste, and while that par- Mart would only sell two energy drinks at a ticular aspect has come a long way, an ongoing time. Last year, the American Beverage As- solution for many brands has been to try to dis- sociation began looking into caffeine labeling solve the flavor into a variety of more common issues. Just this spring, the owner of Redline do- beverage types, including juice, coffee, cola, nated $25,000 to a Florida school district after tea, even beer. But with that expansion – and four eighth-graders became sick after consum- increased focus on injecting energy into bever- ing his product. ages that cover more parts of the day – comes That kind of self-policing comes at a time dilution. As a retailer, can you depend on the when energy drinks are receiving increased me- increase in variety to continue to expand your dia and government scrutiny. Several states are sales, particularly as the new varieties put pres- looking at banning or restricting sales of energy sure on your limited space? drinks to minors. The FDA is considering taking a hard look at caffeine. The dependability issue is becoming a big And stories about caffeine and energy drink concerns are now a regular one, at least with regard to coffee blends. Recently, Hansen’s made it clear part of any TV reporter’s playbook come sweeps week. that JavaMonster, while a fast-growing brand – almost 14 percent of its Meanwhile, the crass are getting crasser, as Cocaine begets Blow be- energy drink sales, according to the company – doesn’t have the high profit gets Bump and Hooters begets Deep Throat. And the alcohol tie-ins margin of its other offerings. And that’s where Monster’s/Hansen’s dual don’t help in that respect – too many potentially scary questions are being identity as successful energy drink company and stock market darling start thrown at the energy malternatives as well as at the use of energy drinks as to battle it out, because much of the charm that has elevated its share price mixers. On-premise, energy drinks have grown almost exclusively in bars; has come from the category’s high profit margins. So while your JavaMon- that does not translate readily to the family fridge. ster allocation might be rising for now, that might be a short-term event As of this writing, NBC’s Today Show had aired a segment called ‘The – particularly with other companies pushing more strongly into the coffee Truth about Energy Drinks,’ while the Sacramento Bee had published a market, and Starbucks hopping into the energy space, both with its own report on convenience store owners limiting sales to minors. Arguments RTD products and with a guarana booster for its on-premise drinks. that energy drinks are the equivalent of Starbucks coffee only seem to take Meanwhile, Rockstar Roasted has been a successful introduction for the industry so far in the eyes of the public. Marketing tactics may change the other major independent brand, but with Coke developing a strong in the future, but the wild side presented by many energy drink compa- brand internally – note the skyrocketing success of NOS – there is always nies, while continuing to bring on consumers in the short term, in the long the possibility that it might opt out of its deal with the California-based term could collapse under the weight of one negative event too many.

MAY – JUNE 08 :: BEVERAGE SPECTRUM 29 For retailers, the issue becomes the image of the drinks they sell, their In fact, NOS, Coke’s latest, bestest new hope for a homegrown energy willingness to work with local communities with regard to merchandising brand, started as an indie all its own. And while that brand has taken off and sales to minors, and knowledge of their customers. in a big way, its core gearhead user is still too small a subculture for the product to become a genre spanner. NOS has been brilliantly executed to 3 Here comes the competition – What effect will energy shots, capture as much of its niche as possible, but it will be hard for it to move hyped-up diet colas, yerba mate, and even energy cookies and too far out of its core competency. chips have on the category? So where does that leave retailers who need leverage on their side in the face of an increasingly stultifi ed set of distributors for Monster (i.e. Energy isn’t just for energy drinks anymore. Anheuser-Busch) and Red Bull (still catching hell from its own sales force As the veil lifts on the main source of energy after raising its case prices)? Growing regional brands like BooKoo and drinks’ energy – pure, unadulterated, caffeine – Xyience have run into major trouble as they try to reach national sta- what was an aura of mystery is now counted in tus. Rip It remains bargain sized, while other major niche marketing ef- milligrams. And those milligrams are appearing forts like TaB and SoBe Essential Energy have fl opped. Here’s where, for in all kinds of new iterations. retailers, knowledge of the growing fi eld of natural and organic brands Beverage Spectrum has been out front on the makes sense, where a Steaz or a Sambazon might be an appealing alterna- growth of energy shots as a high-profi t phenom- tive, as they all have a solid but small base. Still, even those little guys can enon – one that energy drink companies them- disappear in a second – has anyone seen Syzmo on shelves lately? selves have started to invest in – but the stubby The category remains young enough that the cacophony of different capsules aren’t the only product class making a labels is probably still fun for consumers, but with share settling into a grab for a piece of the energy pie. At a recent pair of camps, there is still money to be made for retailers through the natural products convention, booth workers for discovery of a Mountain Dew to provide an alternative to the Coke vitamin maker Yummi Bears were passing out and Pepsi of Red Bull and Monster. By having that extra outlet, they adult versions of their products that were loaded with caffeine and guar- can keep their costs in check. ana. There are energy beans, energy lollipops and other candies – some are made by energy drink companies themselves, like Bawls – and now 5 Speaking of keeping costs in check, what about even energy potato chips. Caffeinated vodka is creeping onto the mar- the economy? ket, negating the need for Red Bull as a mixer (and a good thing for bar- tenders, too, given that company’s willingness to go for the wallet if you The high margin bonanza that drove the energy happen to pour an off-brand). category is shrinking for distributors and for re- “The consumer continues to look for quick additives,” said George tailers as raw materials and fuel costs go up. Sim- Pontiakos, CEO of BI Nutraceuticals. “We saw a guy put it into gum! And ilarly, it’s hitting consumers right in the wallet, we’re seeing a lot more movement into the beverage alcohol segment.” as prices at the pump have long been the enemy Additionally, the soda makers have fi gured out that their consumers of trips inside the convenience mart. Sooner or know what caffeine is all about, as well, adding pumped-up variants like later, the high cost of the energy drink is going Diet Pepsi Max. Rather than bill new offerings as energy drinks, new to have to go down, particularly as consumers products like Energy Green from Honest Tea and the Naked Juice En- start to notice they can now hit both Starbucks ergy Smoothie are simply appropriating the energy aura and applying it to and McDonald’s for a $.99 high-end coffee. their own categories. If energy is isolated as a routine functionality across a But at the same time competition for con- broad variety of food and beverage products, doesn’t that expose the CSD- sumers starts to force the price down, supply like fl ank of the energy drink category? costs are going up: gas, sugar, corn syrup, fuel, aluminum for cans are all getting more costly, 4 Whither the Third Brand? and so is one other important ingredient, energy drinks’ miracle caffeine source, the guarana seed. Demand for the product has increased – aid- For years, energy drinks were like the hydra ed by the increase in other energy based products. International trade is – one company went out of business and two also playing a role: the Brazilian Real is performing exceedingly well more grew to replace them. But that made for against the U.S. Dollar. a pretty crowded collection of critters. Now, “Demand is stripping away supply,” notes Pontiakos. “I’m killing my- with a couple of dominant independie brands self to get it in here before the dollar drops again.” running the show, the big CSD companies still haven’t been able to fi gure out how to win the Energy drinks have come so far, so fast, that it’s hard to believe they were game – or even stay in it for a long period of ever consigned to a small part of the evening and a small group of athletes. time. Witness the up-and-down stories of Amp, What’s truly amazing is that they’ve had as signifi cant a cultural impact as SoBe, Full Throttle, KMX. Each time, the they have a fi nancial one. Still, while ten years is a short time in the devel- big soda companies have used their distribu- opment of a major brand, it’s a long, long time to forecast. In ten years, the tion network to build up a head of steam, but questions we’re looking at now will have a brand new spin: either they’ll they have continued to see consumer sentiment be small squalls preceding a decade-long storm of profi ts, or the last few return to the indie brand. clouds that arrive before a whole new weather system moves in.

30 BEVERAGE SPECTRUM :: MAY – JUNE 08 CRK1001_ad_052908.pdf 5/29/08 12:20:16 PM BRAND NEWS ENERGY DRINKS

BAWLS Fluid Motion Beverage Inc. BAWLS Guarana has launched an addition to their prod- Fluid Motion Beverage Inc. recently won the 2008 uct lineup – BAWLS Guarana EXXTRA. Packing 50 Graphic Design USA Packaging Award for the outstand- percent extra caffeine than the original BAWLS Guarana ing graphic design on the Talon Blood Punch line ex- flavor, sugar-free BAWLS EXXTRA offers a powerful tension launched last year. The Talon line is also breaking boost with a refreshing, guarana-infused taste. Because out of its current US boundaries, debuting in Canadian EXXTRA is made with more guarana than the rest of the C-Stores in May. BAWLS product line, BAWLS EXXTRA hits the caffeine level of a strong cup of brewed coffee – 96 mg per 10 oz. serving and 150 mg. per 16 oz. serving. Offered in 10 oz. PepsiCo bumped glass bottles and in 16 oz. color-changing cans, In March, AMP Energy launched three new line exten- BAWLS EXXTRA is now available in stores nationwide. sions - AMP Energy Elevate, AMP Energy Relaunch BAWLS EXXTRA will also be integrated into the brand’s and AMP Energy Traction. New limited edition Dale 2008 sampling initiatives, including a nationwide tour of Earnhardt Jr. AMP Energy products will be available BAWLS-sponsored video game conventions, BMX races this summer. AMP ENERGY RELAUNCH is energized and pro paintball tournaments. with a burst of orange citrus flavor, Electrolytes and B- vitamins. AMP ENERGY TRACTION is enhanced with Sambazon grape flavor, Maltodextrin and D-ribose. AMP ENERGY Sambazon has created a potent, all-natural energy drink ELEVATE features a blast of mixed berry flavor and L- that heightens awareness while boosting energy and the Theanine. All three line extensions are available nation- immune system. Amazon Energy is made with Açaí, wide in 16 oz. single-serve cans. AMP Energy Relaunch is the powerfully nutritious purple berry sustainably har- also available in 16 oz. 4-packs. vested from the Amazon basin, along with Vitamin-C superfruit acerola and rainforest botanicals like guaraná Marquis Platinum and yerba mate. Formulated with the finest organic in- LUX5 EVENTS, a Newport Beach-based event company, gredients, Amazon Energy delivers nutrition, sustained launched their 2008 Nationwide DEEP FLIGHT LUX5 energy and great taste without tons of refined sugars, arti- Luxury Lifestyle Tour Presented By Marquis Platinum ficial colors, chemicals and negative side effects. Amazon Vitality Drink on Saturday, May 10th at Santa Monica’s Energy is now available in Whole Foods and other fine celebrated Barker Hangar. The product has also recently retailers nationwide. arranged an exclusive distribution deal with DEAN & DELUCA for all locations nationwide. Marquis Platinum Bionic Boink Vitality Drink was also chosen by the newly renovated Starting in Arizona, Boink has taken off at local restau- Plaza Hotel in NYC to be the exclusive energy type drink rants, bars, and clubs as a healthy alternative to energy. for the entire property. Boink stands out amongst the rest offering a product without sugar, calories, and fat and only the best natural Hansen’s herbs for energy. Boink’s Cayenne Pepper formula pro- This summer, Monster Energy is blowing up the Vans duces a long lasting amount of energy without the use Warped Tour with Monster’s biggest promotion ever. of synthetic caffeine. Monster partnered with over 25 Warped Tour bands to give fans an exclusive album download for free with ev- Volcano ery specially-marked Monster 4-pack and 8-pack pur- Volcano energy drink, is a new non-carbonated energy chase. Monster has been a huge part of Warped Tour drink with high caffeine and taurine content plus vita- since Monster’s launch in ’02 by activating the Monster min B-complex, vitamin C and vitamin E as well as Zinc. Energy VIP Lounge at nearly 50 events throughout the Those high quality ingredients are intended to relieve US and Canada. fatique, boost metabolism and improve physical perfor- mance and the reproductive system for men. It is available Zafi Beverages in original and sugar-free Zafi Beverages, Inc. is an energy mixer that is also a stand- alone energy drink. It is packaged in an 11 oz., double- lined PET bottle, and it is non-carbonated, with a tag-line

32 BEVERAGE SPECTRUM :: MAY – JUNE 08 GIVE CONSUMERS THE HORSEPOWER THEY DEMAND

INTRODUCING NOS POWERSHOT! • NOS brings a real energy drink brand to the $100 Million Energy Shot category* • Same mango passionfruit flavor profile as NOS Energy Drink • Available May 1 through your local Coke bottler *Source: All Measured Channels AC Nielsen 12 months ending 12.29.07, Estimated Energy Shot Retail Sales Dollars All Measured Channels Full Year 2007 (in 000’s) NOS 22oz – TRUE RESEALABILITY! BIG PROFITS! • Hottest package in the energy drink category! • +5083% growth vs YAG* • 2nd in Velocity in the larger than 16oz category* • Unique packaging targets other brands’ high frequency consumers • No cannibalization effect • Higher levels of availability of 22oz enhances the velocity of NOS 16oz

*Source: Total US, ACNielsen, Nov 2007 Conv Rtl Channel that reads, ‘Sip It. Cap It. Blend It.’ Zafi can be blended oz. and is recommended by its manufacturer as a value into a multitude of products creating a wide range of proposition for retailers. CL-ONE energy drink is an en- energized drinks. ergizer, with a modern synergistic formulation for periods of extra demand on body and mind. Drink CL-ONE at HYDRIVE sports, exams or as a general pick-me-up during your busy HYDRIVE Energy LLC has expanded its line of energy day or night. drinks with the launch of HYDRIVE S – Strength En- ergy Drink in a blue raspberry fl avor. Inspired by the re- Power Trip Beverages cent Senate hearings, HYDRIVE S contains six fully legal Power Trip Beverages’ four vitamin-packed energy drinks performance enhancers including B-12, Caffeine, Maca, (Original Blue, THE Extreme, PT “0” and Mango) are D-Ribose, L-Leucine and Ginkgo Biloba. HYDRIVE now available at 300 Piggly Wiggly stores in Alabama, 71 S joins, E, X, and V in a colorful, great tasting line-up Tops Supermarkets in NY and many other retail outlets in that delivers full power energy with just 30 calories and 6 15 U.S. states, including New York, Florida and Califor- grams of sugar per 15.5 oz. re-sealable PET bottle while nia, as well as internationally throughout the Caribbean delivering no jitters and no crash. and the Middle East. By the end of this year, the company projects that its reach will span 25 states and additional in- Pimp Juice ternational markets. To help fuel further expansion while Fillmore Street Brewery is proud to announce that its encouraging consumers to “Get in the Game,” Power Trip owner and spokesperson, Nelly, will be launching his next has redesigned its Web site to feature interactive elements album, Brass Knuckles, on June 24, 2008. In conjunction including streaming audio, video, giveaway contests and with this album launch, Nelly will be promoting Pimp an online store. Juice and the new anti-oxidant/energy hybrid drink Pur- ple Pimp Juice on his tour across the United States. The Havoc Energy Pimp Juice RV will also be joining the tour to give out American Enterprise Development Corporation and samples to all of the Nelly and Pimp Juice fans as well as HAVOC Distribution, Inc. announced recently that it promote Pimp Juice at the Nelly concert afterparties. Pimp will begin distribution of Red Bird Energy Drink, an of- Juice will be introduced into India, Nigeria, and Sweden fi cial collegiate licensed energy drink for the University of this summer, will gain further distribution into FYE stores Louisville. The University of Louisville Energy Drink will in malls across the United States along with Nelly’s album be powered by HAVOC and will be sold in 8.4 oz, 16 launch, and will play a prominent role in his international oz. and 4-Pack quantities. River City Distribution, Inc. tour in late 2008/ early 2009. and AXTON Candy & Tobacco Co. will be distributing the product to Kroger, Thornton’s and various other retail Steaz outlets in the Kentucky market. Steaz Energy is the world’s fi rst and only Organic and Fair Trade Certifi ed energy drink in four delicious varieties: BURN Energy Berry, Lime, Orange and Diet Berry. Unlike most other BURN Energy Drink, on the market since 2002, has just energy drinks on the market, Steaz Energy is completely partnered with Meridian Beverages to expand its distribu- food-based. The natural boost in Steaz Energy comes from tion alongside Meridian’s products in the Southeast and four quality ingredients: organic Fair Trade Certifi ed Cey- Midwest. BURN offers 25 percent more caffeine than lon green tea from Sri Lanka, organic Guayaki yerba mate, leading competitors, refreshing citrus taste and healthy in- organic Sambazon Acai, and organic Guarana. The drinks gredients in an award-winning package. Sugar-Free BURN come in a new 12 oz. sleek can so consumers get more offers the only energy drink that helps boost metabolism healthy benefi ts – more antioxidants, more vitamins and with a combination of EGCG (Green Tea Extract), Cal- more green tea polyphenols in every can. Steaz Sparkling cium and Caffeine while offering all the energy and vita- Green Teas are sold in the US in over 7,000 retail accounts mins with NO sugar and extremely low sodium. – including natural, specialty, gourmet grocer and club stores – in 40 states and is also available in the food service Xstream Energy and military channels. As well, Steaz is sold internation- Lightyear XSTREAM Energy contains Yohimbe, which ally in Canada, Australia, Mexico, India, Singapore and has been one of the most popular supplements for men the Middle East. and women for years and is claimed as an aphrodisiac. Now with a natural sexual enhancer used for impotent CL-ONE males, XSTREAM Energy is an all natural, non-carbon- CL-ONE ENERGY DRINK For Smarter People is ated and fruit-juice-based energy drink. now in its 6th year. CL-ONE is available in 8.3oz and 16

34 BEVERAGE SPECTRUM :: MAY – JUNE 08 NEW! Anheuser-Busch 180 Orange Citrus is refreshing, lightly carbonated and has an orange-citrus flavor. It contains vitamins B-6, B-12 and C, natural citrus flavors and is enhanced with natural guarana. 180 Sugar-Free Orange Citrus Blast, an exten- sion of 180 Orange Citrus, contains only five calories, appeals to adults who prefer sugar-free products and en- ergizes your body and mind without sugar. 180 Blue has a refreshing berry and grape flavor that includes the Acai berry – an antioxidant rich berry that grows wild in the Brazilian Amazon and is considered to be one of the top superfoods in the world. The first packaged energy drink launched by a major beverage company in the United Power Trip Beverages is proud to States that contains the Acai berry, 180 Blue won a gold introduce to its distributor and medal at the 2007 North American Beer Awards. 180 Blue wholesale partners: Low-Calorie, an extension of the popular 180 Blue, con- · GREAT TASTE, more vitamins and tains only 15 calories. 180 Red With Goji has a uniquely NO SUGAR means NO CRASH refreshing and slightly sweet lychee and cherry taste bal- anced with subtle tartness. The first packaged energy drink · Contains a higher vitamin containing the Goji berry launched by a major beverage content than all its competitors company in the United States, 180 Red won a silver medal at the 2007 North American Beer Awards. · HOURS of healthier energy

Playboy Energy Drink · Energy shots are the fastest Playboy Energy Drink is ultra-sexy and incredibly in- growing segment of the New Age vigorating with subtle notes of fruit and vanilla, this pro- Beverage category prietary formula contains ginseng root, guarana extract · No refrigeration needed and and damiana leaf, ingredients that are believed to stimu- requires only 26 square inches of late energy levels. Available in two varieties, regular and shelf space sugar-free, Playboy Energy is now available in Boston and Florida. Playboy Energy Drink is packaged in an 8.4 oz. www.powertripbev.com black can, made distinctive by the famous Playboy Rabbit Head design and colors denoting regular (glowing orange) CONTACT US TODAY FOR or sugar-free (glowing blue). MORE INFORMATION ABOUT “VITAMIN ENERGY SHOTS”

M-150 RESPECT, M-150 Energy Drink’s philanthropic com- munity support program rolled into Woodland Hills, Cal- ifornia on Sunday, April 27th to support LAPD SWAT, local and federal law enforcement agencies in honoring fallen SWAT member, Roland Simmons. Chilled M-150 Phone 954-862-1445, Fax 954-862-1484 Energy Drinks were served to over 7,000 residents and ce- [email protected] lebrities in attendance who raised over $450,000 for Sim- mons’s widow and children. SALES AND DISTRIBUTION: Power Trip Beverages, Inc., 12401 Orange Drive, Suite 205, Davie, FL 33330 Wet Planet Jolt has become the best name in the consumable energy business. With a seven-flavor roster of Energy Drinks, a 2 oz. Endurance Shot, energy gum and mints - with more on the way, Jolt continues to jolt the industry. Jolt Energy was the first to utilize resealable technology on their eye- catching 23.5 oz. aluminum bottle. The resealable cap is user-friendly and allows hours of carbonated energy. Over

MAY – JUNE 08 :: BEVERAGE SPECTRUM 35 the past year Wet Planet Beverages has introduced 3 new a 100 percent fruit juice energy drink, non-carbonated, Jolt Energy Flavors: Orange Blast, Wild Grape and Pas- with no added sugar or preservatives and all natural fl a- sion Fruit. vors. Available in Orange Passion Fruit fl avor. NTrinsic is all-natural with antioxidants and no preservatives. A sugar G Pure free, zero calorie version is also available. It comes in Black G Pure Energy is “Energy Redesigned”- a healthier, Pomegranate fl avor. CoMotion is a double concentration more sophisticated choice for the discerning consumer, energy drink for a stronger and longer-lasting boost, avail- delivering sustainable energy with truly effervescent fresh able in Dragon Fruit fl avor. lulo lime taste. G Pure Energy is available in a recyclable glass bottle. Guru GURU, a line of 100 percent Natural and Certifi ed Cult USDA Organic Energy Drinks, is now available in a Cult launched its Cult Energy Cola in Denmark earlier 12 oz. slim can and introduces two new fl avors: GURU this spring. Full On Lemonade and GURU Juicy Superfruit. The newly redesigned GURU can contains more energy than Redux Beverages Brawndo the original 8.3 oz. size and is less fi lling than the 16 oz. On April 1st, 2008, Redux Beverages signed a multi- Catering to busy, active people’s needs, the new set of six year agreement with Motocross legend Ryan Clark and GURU products is 100 percent natural and contains an Team Solitaire. The sponsorship positions Brawndo: The active botanical complex made of standardized herbal ex- Thirst Mutilator as the team’s headlining sponsor with tracts - Guarana, Ginseng, Ginkgo Biloba and Echinacea, the offi cial title Redux Beverages/Brawndo Team Solitaire following the same original proprietary formula that maxi- Honda. Brawndo: The Thirst Mutilator is currently avail- mizes their benefi cial effects. able in selected retailers throughout the Northeast and South with new distribution channels opening in South- Spike Shooter ern California, Oregon, and Washington in May. SPIKE, the hardcore energy brand, now features three fl a- vors (Original, ‘Quila Lime, and Orange Gold) of SPIKE Rockstar Shotgun (16 oz.) and SPIKE Shooter (8.4 oz), as well as the Rockstar energy drink continues to experience robust recently launched SPIKE Shot (4.2 oz). Shot and Shotgun growth nearly three years into its partnership with the feature a new formulation that delivers maximum hard- Coke system. Over the past year the brand has been able core energy without the jitters. SPIKE is nationally dis- to gain signifi cant space, share, and volume with key na- tributed in top c-store outlets through McLane and Core- tional customers like CVS and Walmart as well as expand Mark and is also available in specialty retail stores such as internationally in countries like Canada and the U.K. GNC and Vitamin Shoppe. Delivering a premium price Growth and penetration into nontraditional channels point and high profi t margin, SPIKE is supported by the such as specialty retail/colleges/ski resorts has also been a best “street team” in the business—SPIKE Special Ops. key focus. Several new products are in the works. Build- ing on the successful launch of Rockstar Roasted, multi B12 Beverages packs of this line are set to rollout nationally this summer. After years of research and development, B12 Beverages The Rockstar marketing team continues to keep the brand is proud to introduce LIFE into the marketplace. Life’s new and fresh through its nationally recognized sponsor- energy blend has a combination of vitamins and natural, ship of the Suzuki Supercross team, Golden Boy Boxing exotic herbs, including the new “Super Root” MACA, to matches, NHRA racing team, and the Rockstar Taste of give consumers high-quality energy quickly yet with the Chaos concert tour. staying power to keep them energized for hours with NO CRASH, and NO BURN. What is MACA? Maca is grown Acute Fruit in a very small section of the Andes, planted and harvested Introduced in 2008, Acute Fruit, NTrinsic and CoMo- by hand. Its healing power and benefi ts have been known tion represent a new line of energy brands based on the by the Inca for over 2000 years. Maca is high in calcium trio of energy, antioxidants and adaptogens. This new and works with the body to enhance the immune system, category of drinks in addition to providing energy, pro- nourish the body with minerals and vitamins and enhance motes health, wellness, and stress relief. The end result is libido as a natural aphrodisiac. complete and well-balanced energy. These three brands are also certifi ed CarbonFree and thanks to a partnership with Xtreme Shock Carbonfund.org the carbon footprint associated with their Xtreme Shock is now available in a 16 oz can. The fi rst production and distribution will be offset. Acute Fruit is and only “energy sensation” drink is serviced through a

36 BEVERAGE SPECTRUM :: MAY – JUNE 08 multi-faceted network of distributors, such as: health and fi tness DSDs to beer and beverage distributors. The 16 oz. can is available in three fl avors – Fruit Punch, Grape SOMEWHERESOMEWHERE BETWEEN BETWEEN VITAMIN VITAMIN and Blue Raspberry. WATERSWATERS AND AND ENERGY ENERGY DRINKS DRINKS LIES LIES AA BRAVE BRAVE NEW NEW WORLD. WORLD. Liquid Lightning Liquid Lightning will be unveiling a new formula and AA WORLD WORLD WHERE WHERE ENERGY ENERGY COMES COMES brand-new look for release late spring. The new formula FROMFROM VITAMINS VITAMINS AND AND NOT NOT FROM FROM will feature a combination of Ribose, Taurine, Ginseng, CONTROVERSIAL CHEMICALS. Niacin, Vitamin B and Vitamin C to maximize its ener- CONTROVERSIAL CHEMICALS. gizing benefi ts. Liquid Lightning’s focus has always been on product quality, strong support of local distributors, AA WORLD WORLD WHERE WHERE FANTASTIC FANTASTIC TASTE TASTE and nurturing relationships for the long-term growth of ANDAND MILD MILD CARBONATION CARBONATION ARE ARE the product. Liquid Lightning is available in regular and PERFECTLYPERFECTLY COMBINED COMBINED TO TO CREATE CREATE sugar free in both 8.4 oz. and 16 oz. cans. Look for Liquid THETHE ULTIMATE ULTIMATE TASTY TASTY BEVERAGE BEVERAGE Lightning at Shop Rite, Drug Fair/Cost Cutters, Food- ANDAND THE THE BEST BEST MIXER. MIXER. town, Pathmark, Amazon.com and in vending machines. AA WORLD WORLD WITHOUT WITHOUT CRASH! CRASH! Frank’s A WORLD WITHOUT BURN! Frank’s is a sizzling new energy drink that is taking Amer- A WORLD WITHOUT BURN! ica by storm. The invigorating drink contains a number of vitamins and premium ingredients designed to improve physical performance and mental alertness. Pasteurized to preserve freshness, Frank’s comes in four varieties and deli- cious fl avors: Original, Sugar Free, Lime and Pineapple. The energy drink is available in a slim 8.4 oz. can and a jumbo 16 oz. can. Frank’s is the Offi cial Energy Drink of the Indy 500.

Roaring Lion Roaring Lion’s 12 oz. can is rapidly becoming its fl agship SKU, as it has crossed over from the bar and nightclub world to availability for purchase the product at gas sta- tions and mini marts. Due to strong on-premise demand, Roaring Lion’s fi rst foray into the ready to drink market was with the Resealable 500 ml PET bottle.

Fixx FIXX Extreme is the fi rst extention of the new Extreme product line, which is “designed to push the limits of en- ergy like never before.”

Hype Energy A signifi cant milestone in its international expansion, Hype Energy has entered into an exciting agreement with French distribution giant Orangina Schweppes. Via the new arrangement, effective March 2008, products from the Hype family will reach a wide network of outlets across France. Other signifi cant news from the company is the TM launch of a new branded can featuring NHL star Alexan- der Ovechkin available in Canada from the start of 2008. the FIRST

vitamin soft drink TM

© 2008 B12 Beverages, LLC [email protected] - 561·737·8533

MAY – JUNE 08 :: BEVERAGE SPECTRUM 37 Rhino Rage Beverages Rhino Energy Drink provides exquisite taste with an RAGE Beverages of Canada is now the offi cial energy outstanding quality product formulation exclusively using beverage of the TKO, one of the world’s leaders in MMA natural Austrian spring water. Rhino is currently the lead Boxing. RAGE has announced placement through Fas sponsor of John Carter’s 2008 NASCAR team and had Mart/Shore Stop and Royal Farms. Distribution for all a prominent presence at the 2008 X-GAMES’ Snowcross 202 Fas Mart/Shore Stop locations is being done through fi nals and offi cial team sponsor of the WPSA’s Snowcross an independent Otto Distribution, along with distri- series nationwide. Rhino’s is now the exclusive energy bution in close to 50 7-Eleven locations in Maryland drink of Mandalay Bay and MGM Grand casinos’ ser- and Delaware. vice and pool bars. Rhino has also recently been enlisted for distribution by Coca-Cola in select markets. Rhino’s Ardea Beverage Company currently has prominent distribution in PA, OH, MD, The creators of Nutrisoda launched their beverages in DE, KY, WV, and Washington D.C. and is launching in clear, 12 oz. glass bottles. All Nutrisodas, including En- VA, TN, NC, and SC throughout May and June. In ad- ergize, have a unique wellness benefi t and feature lightly dition to Rhino’s 8.3 oz regular and sugar-free cans and sparkling, crisp, natural fruit fl avors. The bottles have 1.5L Pet bottles, Rhino is now available in 16oz cans and been shipped to the following markets for distribution: 2.6g Bag-in-a-Box. Midwest/Great Lakes region, Dayton, Ohio, Chicago, Portland, St. Louis, Florida, Kansas City, San Diego, In- National Beverage dianapolis, Seattle, and Cincinnati. National Beverage’s Rip It’s newest fl avor isA’Tomic Pom Sugarfree. Rip It combines deliciously crisp pomegranate Crunk!!! fl avor with an extra energy burst and zero calories. It’s the CRUNK!!! Energy Drink will be expanding its product ultimate sugar-free energy drink with a refreshing pome- portfolio this June by launching a new lemon-lime cit- granate punch. rus fl avor. CRUNK!!! Citrus will have new packaging as well, boasting a yellow and green can. Since January Dark Dog 2008, CRUNK!!! has added fi ve new markets to their dis- Dark Dog has launched a brand new Dark Dog Light. tribution – Los Angeles, North Carolina, Missouri, Okla- Dark Dog Light differentiates its can from other energy homa, and Tennessee – and the expansion will continue drinks by its eye-catching colour magenta. this summer.

Crazy Horse V&V Crazy Horse Energy Drink claims to be so aggressively V&V Energy, the sparkling fruit beverage with a kick, has priced that consumers save nearly half their initial invest- new packaging and is now available as a 100 percent all- ment just for trying Crazy Horse Energy Drink. natural product. V&V is currently offering two new fl a- vors, Pomegranate Blueberry and Orange Clementine and Cuba Energy Juice is still available in Mixed Berry and Citrus Twist. V&V is A 100 percent natural energy juice containing no arti- made with cane sugar and packaged in glass, giving V&V fi cial sugars or preservatives, CUBA herbal energy juice the aura of a true gourmet beverage with energy drink hit South Florida this spring. The product comes in three properties. fl avors, Pomegranate/Cranberry, Wild Berry and Passion- fruit/Orange. Xyience Xenergy, a premium energy drink from Xyience, is a zero Potencia calorie sugar-free energy drink. Xyience is pleased to an- DLR Associates Inc and Potencia USA are proud to have nounce a renewed partnership with the UFC (Ultimate made it through year one with better-than-expectations Fighting Championship). As the Offi cial Energy drink of results. Potencia Energy Drink is now bi-coastal and con- the fastest growing sport in the world, Xyience is able to tinues to grow nationwide. With several trips south of the leverage it’s exposure within key demographic markets to border done and resumes being considered Potencia Mex increase sales and distribution. S.R.L. is gearing up for a southern assault into Mexico in 2008. Potencia is also producing its next fl avor, Mandarin, in the coming months.

38 BEVERAGE SPECTRUM :: MAY – JUNE 08 FRANKS_ENERGY_ad_FINAL.pdf 5/21/08 8:12:12 AM

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K the izard ing does coffee by matt casey

he Lizard King is back in the arena, but he’s backstage, not front and cen- Tter. That’s where he says he wants to be, though. He’s through with the song and dance routine, he insists. He’s not a brand manager, and he’s not the entrepreneur either. The Lizard King – John Bello, in his former role with SoBe, where the rallying cry was “Drain the Lizard” – is an investor now, a power broker, a guy who spots potential, feeds and nurtures it, and then rides it to a payday. Whereas it was once about fl ipping cases for him, now it’s about fl ipping companies. At least, that’s his position, and in some ways, he’s right. After all, it was just two years ago that Bello parlayed a $6 million investment in IZZE sparkling juices into a $75 million sale to PepsiCo, the same company to which he more famously sold his own creation, SoBe Bev- erages for a cool $337 million back in 2001. But Bello the salesman is still in full effect, even when he’s selling Bello the investor. There’s been some friction between paydays, and some of it’s still ongo- ing. He’s seen one product line collapse on him, another one struggle to keep its feet. Even Bello’s admirers – and there are many – might want to see the now 62 year- old kick back, lighten up, recognize that he’s had a nice, dreamy, multi-million dollar run in the beverage business, wake up and smell the coffee. Only problem is, Bello already did wake up and smell the coffee, and to him, it smelled like more cash. Bello and his partners at Sherbrooke Capital recently in- vested $6 million in Adina World Beat Beverages; their aim is to create a set of coffee products that will become the biggest brew in the cooler case since Starbucks’ Frappucino, and they think Adina has the potential to do it.

40 BEVERAGE SPECTRUM :: MAY – JUNE 08 ut while the once-hyperactive Bello said he’ll have a hand in the Bello framed confl icts in terms of war, Miller said, and was unwilling to Bbrand’s development, he won’t be hustling cases out of trucks – or lose a battle. Miller recalled one instance where a distributor said he wasn’t hassling the distributors who own those trucks – like he did during his interested in carrying SoBe. Bello yelled his way up the company’s chain days as the co-founder of SoBe. of command until the last person he reached declared that the distributor In those days, Bello cut a reputation with his employees by getting his would never carry SoBe, unless Bello left. hands dirty and personally dabbling in all the tasks he asked them to do. Miller later developed respect for Bello, he said, and he saw at SoBe how These days are different, he swears. that cockiness played out in a business environment. That all-or-nothing “I don’t want to get on the fi eld,” he said. attitude could have had a lot to do with what was at stake for Bello, Miller But here’s the question: can a guy who made his bones pulling tricks said. He said The Lizard King built his kingdom by leveraging his castle, like stealing his competition’s cooler stickers continue to fi nd success when offering his house to the bank as collateral so that the company could get he’s not able to re-shape a brand around his own personality? His two a line of credit. And while Bello’s bluster may have cost SoBe one distribu- greatest successes, SoBe, and before that, the promotion of NFL Proper- tor, he eventually sold the company to Pepsi for a cool $337 million. ties, both had attitude, a gutsy feel that was all their own. Even when But that 2001 sale still stands as Bello’s crowning achievement. Be- Bello sold IZZE, the acquisition by PepsiCo was considered by some to fore starting the company, he achieved notable successes at NFL Prop- be a last-minute bailout for a strapped niche brand that had lost its mo- erties; after leaving SoBe, he and Sherbrooke facilitated the estimated mentum, the combination of Bello with the brand felt oddly incongruous. $75 million sale of IZZE sparkling juice drinks to Pepsi. In between, For a Yoga-Mom friendly brand with the hip quotient of a Volkswagen however, he’s had a hand in a couple of ventures that have limped Beetle, they were sold by a guy whose approach correlates more directly into transition. Or failure. with a Panzer division. So what does that mean now that he’s put his money into an exotic- fi refi ghter fi zzles juice-cum-coffee company that plans to save the world? Can the Lizard In 2004 Bello invested in Firefi ghter Brands, launching a line of snacks King really do coffee? and drinks to capitalize on the popularity of the fi refi ghter image following the September 11 terrorist attacks. That brand’s products included Hy- the bello method drant Water and Courageous Cola, and the company promised to donate From the start, Bello has said he wants to build Adina’s globally-inspired 25 percent of its profi ts to fi refi ghter-related causes. But you won’t fi nd the coffee line to challenge Starbucks’ domination of the ready to drink coffee brand on shelves today, and the company’s website has gone dark. category. While he won’t get on the street, he said he will play director for Bello called Firefi ghter Brands an instance of “no good deed goes un- Adina’s next act, and instill the organization with the “Bello Method.” punished.” The brand idea worked, he said, but the company was beset by The Bello method is a blend of football-coach motivational strategy a number of problems. His departure from Pepsi barred him from working and guerilla – he calls it “go-rilla” – marketing. In his SoBe days, Bello was in the beverage side of the business, he said, which is where the focus of known to march into convenience stores, rip the Snapple stickers off the the brand fell, and he had a hard time corralling the divergent interests of coolers and replace them with SoBe stickers. He also motivated his team full-time and volunteer fi refi ghters. with “Bello-isms” like “Snapple is crapple” and “put AriZona in a coma,” But he also had a hard time pulling the whole idea together. While the and made curiously effective use of the company’s voicemail system, ac- brand started with a rollout of everything from potato chips and chili cording to John Kenneally, who headed up SoBe’s West Coast sales. to bottled water and sports drinks, by the end it was apparent that the “He would encourage everybody in the company to get on that voice- throw everything and see what sticks approach hadn’t worked. If the pub- mail on a daily basis and talk about positive things in the marketplace,” lic had as much respect for fi refi ghters in terms of potential brand equity Kennelly said. “It really fi red you up.” as Bello says it did, then Firefi ghter’s execution was a colossal failure. If When someone at SoBe failed, Kenneally said, they didn’t have to be that potential was never there in the fi rst place, it calls into question Bello’s chastised. They went home knowing that they let down their coach and their ability to still pick a winner. team, and that powerful mix gave the staff a strong dose of motivation. And another of Bello’s recent ventures – a line of soups and soup res- “I would wake up in the morning and want to run through a burning taurants based on the inspiration for Seinfeld’s “Soup Nazi,” a real life wall of fi re… to make him proud,” Kenneally said. soup maker named Al Yeganeh – decided it would just plain be bet- Kenneally, currently working on Cytosport’s RTD line of Muscle Milk, ter off without him. Bello lost his post as CEO of The Original Soup said Bello’s tactics made SoBe’s staff feel like a tight-knit sports team Man World Renowned Soup last year. But Bello said he never wanted pursuing a championship. to be the company’s CEO. He said he took the post to drum up fund- Of course, every championship coach makes a few mistakes. Just ing and publicity, and doesn’t have the time or will to be involved with ask Bill Belichik. Soup Man’s – or any other company’s – day to day operations. He already Bob Miller, one-time SoBe executive Vice President of Sales and Mar- sits on several other boards and serves Sherbrooke by searching for the keting and now executive vice president of sales and head of strategic plan- next big brand. But he still owns ten percent of Soup Man, sits on the ning for Function Drinks, said he disliked Bello the fi rst time they met. company’s board and represents a large group of investors – which affords The two crossed paths at a 1994 trade show when Miller worked for Mis- him a measure of infl uence. tic and Bello worked for AriZona. But this raises another question about the Lizard King: Does the Bello “At fi rst, I couldn’t stand the guy,” Miller said. “(He was) just like real Method work from a distance? He crafted SoBe in his own image by sta- arrogant and cocky.” tioning himself on the front lines of the company’s store-to-store battles.

MAY – JUNE 08 :: BEVERAGE SPECTRUM 41 Even at IZZE, he packaged the company for sale by sitting as the board’s bucks’ formula by partnering with Caribou Coffee and releasing metal- chairman. But the battlefi eld looks different the farther you get away from bottled versions of that chain’s brew. SkylarHaley took a nutritious tack it, and at Adina, Bello plans to send dispatches from the general’s bunker. on coffee drinks by fortifying AchievONE with vitamins and nutrients. As for Soup Man, Bello said the company is in a period of adjustment, Muud Coffee plans to try the reverse of Starbucks’ model: the brand re- not unlike SoBe’s South Beach days. SoBe originally sold iced teas to an cently launched 15 oz. RTD cans composed mostly of espresso, and co- unreceptive marketplace before Bello rebranded the company as SoBe and founder Matt Marini said long term plans for the brand include opening introduced a new line of fruit and vegetable juice blends with splashes of coffee bars called “Muud Rooms.” Shock coffee continues to have cachet herbs – many of the elements that would later surface in the emerging among caffeine junkies. And don’t forget about the Monster in the room functional drink category. Similarly, The Original Soup Man is bending – JavaMonster – which might very well have the growing distribution and away from the franchise track and specializing in grocery-ready soups. fan base to trump them all, Frappucino included. Even with brands clamoring to get into the coffee sector, Bello still stirring the coffee thinks Adina has an edge. The company’s coffee is both organic and fair And, just as he made those adjustments at SoBe and Soup Man, therein trade – a great pair of marketing buzz-words – and its ethnically-inspired might be the best of what Bello can bring to Adina. fl avors give the brand a strong point of difference. Bello said he thinks that Founded in 2006, Adina, despite a reputation for selling good, if expen- combination could help the brand carve out its own subcategory. sive, beverages, has been organized more around an idea than a product, But again, there’s that cultural issue. Bello’s style is in your face, while according to company co-founder Magette Wade-Marchand. Adina has long been about laid back San Francisco hippie multicultural- That’s even why the company chose the name Adina World Beat Bever- ism. How will that jibe with a guy who screams about draining the lizard? ages, she said, so they wouldn’t be locked down to a single kind of drink. According to Bello, it won’t be a problem. “I’m just there to provide But co-founder and CEO Greg Steltenpohl said that approach left the experience and refl ection,” he said. company without focus. Adina experimented with multiple products that But while the company’s founders share that vision, not everyone does. “were not fully executed,” he said, and pushed three divergent beverage Miller, for one, has his doubts. He said the beverage market has gotten lines including Miracle Fruits and Juice Coolers. tougher since his and Bello’s SoBe days. Now, under Bello’s advice, the company is rallying its sales and develop- ment resources behind the company’s coffee line. The coffee category is ripe for a strong contender, Bello believes. To that end, Steltenpohl said Adina plans to roll out six new coffee SKUs in the coming year and bring the line to DSD markets on both the East and West coasts. “The ready to drink category is pretty much dominated right now by Frappucino,” Bello said. “While it tastes great, we think there’s room for something lighter.” Adina’s coffee drinks weigh in between 90 and 110 calories per bottle, which is about half that of a Starbucks bottled Frappucino – the creamy concoction which Bello credits for blazing the path for other RTD coffees to follow. The RTD coffee category was worth more than a quarter bil- lion in sales in the last year, with Frappuccino alone accounting for $191 million and non-Starbucks brands accounting for around $25 million – about the same as Starbucks Doubleshot. Taken as a whole, Starbucks owns the RTD coffee segment much like Gatorade owns sports drinks, but Bello said he thinks that their presence created a space where another brand can move in. “(Coffee) has been reinvented and reinvigorated with what Starbucks has done,” Bello said. “(Frappucino) made a place for ready to drink cof- fees in the cooler set, so we’ll move in alongside it.” The Lizard King, John Bello, is an investor now, a power broker, a guy who Bello’s bet comes with more than Sherbrooke’s check. He said his ex- spots potential, feeds and nurtures it, and then rides it to a payday. perience in coffee stretches back beyond his SoBe days to when he cut his teeth in the beverage market by working on Sanka for Maxwell House. “Distributors do less and less,” he said. “Slotting fees are higher… It’s Additionally, the team brought in Bruce Schroder, who ran the Pepsi/Star- really become a much more diffi cult process now.” bucks Frappucino partnership, and Adina has its own dose of in-house Additionally, he said he’s not sure that Adina and Sherbrooke will have expertise. Steltenpohl, you may remember, helped launch Odwalla – now the capital to take on a monster like Starbucks. Companies with much owned by Coca-Cola. deeper pockets have tried to and failed to take a piece of Starbucks’ action But Adina isn’t the only beverage fi rm trying to cut their own piece of proving, he said, that RTD coffee might be a one-brand category. territory out of Starbucks’ kingdom. Coca-Cola tried to replicate Star- But, he added, “If anybody can do it, (Bello) will do it.”

42 BEVERAGE SPECTRUM :: MAY – JUNE 08

Coffeebrand news java monster Hansen’s Java Monster continued to grow after its ini- tial release last April. The share-stealing energy drink brand added Lo-Ball, Nut-Up, Irish Blend, Russian and Chai Hai - Monster’s fi rst tea-based drink – to the line. Geoff Bremmer, Monster’s brand manager, said customer response to the line has been so strong that the company had to ramp up production. muud coffee OK folks, buckle-up! Hot on the heels of the release of our fi rst 3 critically acclaimed MUUD fl avors (original, mocha and vanilla), MUUD is ready to unleash Dyno- MUUD. This the “bad boy,” – the original MUUD recipe with another shot of espresso for an extra kick. The result is an amazing smoky espresso fl avor that will defi nitely get you going. mojava With only 90 calories and no fat, Mojava Black is a natural coffee drink with no preservatives or addi- tional charging supplements such ginko, guarana or taurine. Coffee, with the right amount of sugar and 8 to 10 oz. servings, makes the perfect energy drink without the unpleasant side effects of crashing. Other fl avors in Mojito Brands, Inc. Mojava line RTD cof- fee include Mojava de Carma, Mojava MoMi, Mojava Mojito, Mojava OrMi. A percentage of the profi ts from the sale of Mojava Black are set aside for chari- table contribution to help the many who suffer from Sickle Cell Disease. ny coffee Not just for New Yorkers anymore, NY Coffee is ex- panding its reach. Besides the NY Metro area, the company now has sales in Buffalo, Chicago, Georgia, Portland Ore., Little Rock Ark., South Florida and Atlanta. The company recently added distribution in Price Chopper Supermarkets, Tree of Life and MVP Distributors in Pennsylvania. Within the city, NY Coffee has been promoting heavily with select TV green rooms, including the Tyra Banks show, MTV and Comedy Central. starbucks If the caffeine in Starbucks’ RTDs wasn’t enough for you, the Seattle-based chain added a new selection of supercharged coffee drinks. The Starbucks Double- shot Energy + Coffee line features Coffee, Mocha and Vanilla fl avors, each 15 oz. can comes charged with a double shot of espresso and a dose of guarana, ginseng and B Vitamins.

44 BEVERAGE SPECTRUM :: MAY – JUNE 08 Packaged beverages accounted for $8.136 billion of in-store sales How are you going to tap into [ consumer beverage demand?

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he Fancy Food and All Things Organic shows held in Chicago from April 26-29 as- sembled vendors from all over the high-end food and organic world. Companies hawked every- thing from baby clothes to imitation chicken, from imported cheese to coconut oil and, of course, a few beverages. With more than 800 total exhibitors, the 30 or so beverage companies were clearly outnum- bered and – with the show following Natural Products Expo West – most of the new prod- ucts and developments had already been re- vealed, but the beverage cadre still brought a handful of surprises. Adina World Beat Beverages fi nalized and Keith Lord, Marie Hugley, Chad Woolery, Randy Robert Corr of Apple Rush shows off Klackle, Tim Pisarski with Sambazon. announced a $6.6 million investment lead by the brands new slim-cans. Sherbrooke Capital and “Lizard King” John Bello (see The Lizard King Does Coffee for a deeper look into that deal.) Honest Tea showed off fi ve new SKUs, including Jasmine Green Energy Tea; Apple Rush showed off mock-ups of their planned new slim-can packaging, and Zota revealed a glimpse into the company’s re- launch, including new fl avors and innovative new packaging. Booths generally veered toward the tame end of the spectrum, with Adina and Samba- zon offering two of the more elaborate beverage displays. Fruitzzo also made a strong showing with its simple, but large and inviting mid- fl oor installation.

Soy milk apparently excites Pamela Dietz of Vitasoy. The Adina crew had their faux-hut and their private equity news - that's why they're smiling.

Ken Weeks and Andres Hildebrandt of Bionade John Beske and Linda Catomer with Zota brought an ample supply of their product. showed off their new packaging. Uncle Matt's brought orange juice and family.

46 BEVERAGE SPECTRUM :: MAY – JUNE 08

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48 BEVERAGE SPECTRUM :: MAY – JUNE 08 READER SERVICE PORTAL

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Daily's Unveils 'Sipstakes' to Kick Off the Summer Miller Lite Launches Comprehensive Soccer Program Selling Season Featuring CONCACAF Champions League Partner- ship All summer long, Miller Lite will be working to make its brand syn- onymous with soccer. As the offi cial beer sponsor of the CONCA- CAF’s Champions League, Miller Lite will run ads featuring current Mexican soccer champions Omar Bravo and Cuauhtemoc Blanco. Anchored by a partnership with Univision, “A Champion Com- bination” will hopefully give Miller Lite a captive audience among legal-drinking-age Hispanics within the world of soccer, particularly CONCACAF’s 40-member nations in the U.S., Mexico, Central Amer- ica and the Caribbean. Ads will center on Blanco and Bravo. Special collectable single- serve cans will also feature the two players. A national consumer promotion will give soccer fans a chance to win a soccer viewing party chock full of Miller Lite. Miller Lite also will have branded content during the summer on TeleFutura’s “Contacto Deportivo” and branded sponsorship of Daily’s, America’s premier cocktail and mixer company unveils its online media. “Win More Summer” consumer ‘sipstakes’ program at retail and Another digital element will be the update of MillerLiteLatino. online. This July and August, ads in Marie Claire and Cosmopolitan com. The site will feature interactive games, tournament informa- magazines, a range of POS materials, and an on-pack sticker will tion and CONCACAF game footage, as well as sweepstakes where all introduce Daily’s mixers and ready-to-drink products in a wide visitors can register to win prizes such as fl at screen TVs, keg-erators array of today’s most popular fl avors and cocktails. The ad and POS and mini-fridges. copy will drive consumers to Daily’s website, www.dailyscocktails. The CONCACAF tournament com, where they can enter to win the grand prize – a trip for two to is scheduled to kick-off in Au- The Westin Maui Resort & Spa, Maui, HI or the fi rst prize summer gust 2008. tunes MP3 player. Daily’s Ready-to-Drink products are available in 10 oz. frozen pouch package in four fl avors: Mojito, Margarita, Strawberry Dai- quiri, Pina Colada and a 1.75L Bag-in-Box in seven fl avors: Cosmo- politan, Margarita, Appletini, Mojito, Mangotini, Bloody Mary and Pomegranate Margarita. Daily’s Fruit Mixers are available 1L plas- tic bottle with professional pour spout in a range of popular fl a- vors including Margarita, Caipirinha, Mojito, Mudslide, Raspberry Daiquiri and more. Available in nearly two dozen mouth-watering fl avors, Daily’s Fruit Mixers are made with a unique blending of real fruit, authentic ingredients and fresh natural fl avors.

What is 7UP’s Recipe for Success? 7UP is teaming up with celebrity Chef Car- Contestants can submit their original in select markets. All entries must be re- los Fernandez to cook up the 7UP Recipe for 7UP-infused recipes online at www.Rec- ceived by Aug. 5, 2008. Chef Carlos will re- Success nationwide contest. Latinos across eta7UP.com, via mail or at in-store demos view each entry and, using a small judging the country can put their creative cooking panel, test his favorites. Ultimately, he will skills to the test for a chance to win $70,000 narrow the selection to seven lucky partici- and make their dreams of their own restau- pants who will cook their recipes live in-stu- rant or remodeled kitchen a reality. Chef dio with Chef Carlos. The fi nal cook-off will Fernandez will judge all of the 7UP-infused be shown during Telemundo’s Cada Dia in recipe entries to decide who gets crowned September. Chef Carlos will lead the fi nal in- the 7UP 100% Naturally Talented Chef. studio judging and crown one winner with The Hispanic population in the U.S. is the title of 7UP 100% Naturally Talented opening small businesses at a rate three Chef and award the $70,000 grand prize to times faster than the national average. fulfi ll their dreams. 7UP looks forward to helping one novice For complete contest rules for 7UP with Latino chef follow in dream a reality, Chef 100% Natural Flavors’ Recipe for Success Carlos’ footsteps. contest, please visit www.Receta7UP.com.

50 BEVERAGE SPECTRUM :: MAY – JUNE 08

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