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Energy Drinks: Five Big Questions

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Energy Drinks: Five Big Questions 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 Mn^ZcXZ!ZcZg\nYg^c`VcYhjeeaZbZcibVcj[VXijgZg!^heaZVhZY idVccdjcXZi]ZXdbeaZi^dcd[^ihgZhigjXijg^c\egdXZhh#I]ZaVhi h^mbdci]h]VkZegdkZcidWZY^[ÒXjai[dgVaa^ckdakZY!Wji^i]Vh jcYdjWiZYanVaadlZYjhidWZXdbZhigdc\Zg#LZjcYZghiVcYbVcn d[djgeVgicZghbVn]VkZWZZc^cXdckZc^ZcXZY#I]ZgZ[dgZ!lZÉYa^`Z idZmegZhhdjgZmigZbZ\gVi^ijYZ[dgndjghjeedgiVcYVgZZmX^iZY VWdjii]Zdeedgijc^i^ZhV]ZVY[dgdjgXdbeVcn#LZadd` [dglVgYidldg`^c\l^i]ZVX]d[ndj# OFFICIAL ENERGY DRINK DEIK=7HDE97BEH?;IBEM97H8 lll#mn^ZcXZ#Xdb xyience_bevnet_dblpg_0608.indd 1 6/6/08 4:46:07 PM OFFICIAL ENERGY DRINK DEJJ7FF?D=EKJ Mn^ZcXZ!ZcZg\nYg^c`VcYhjeeaZbZcibVcj[VXijgZg!^heaZVhZY idVccdjcXZi]ZXdbeaZi^dcd[^ihgZhigjXijg^c\egdXZhh#I]ZaVhi h^mbdci]h]VkZegdkZcidWZY^[ÒXjai[dgVaa^ckdakZY!Wji^i]Vh jcYdjWiZYanVaadlZYjhidWZXdbZhigdc\Zg#LZjcYZghiVcYbVcn d[djgeVgicZghbVn]VkZWZZc^cXdckZc^ZcXZY#I]ZgZ[dgZ!lZÉYa^`Z idZmegZhhdjgZmigZbZ\gVi^ijYZ[dgndjghjeedgiVcYVgZZmX^iZY VWdjii]Zdeedgijc^i^ZhV]ZVY[dgdjgXdbeVcn#LZadd` [dglVgYidldg`^c\l^i]ZVX]d[ndj# OFFICIAL ENERGY DRINK DEIK=7HDE97BEH?;IBEM97H8 lll#mn^ZcXZ#Xdb 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.
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