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Single Serves Grow, Drink Mixes Reach $1 Billion

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Single Serves Grow, Drink Mixes Reach $1 Billion OCTOBER 31, 2008 POWDERPOWER Single Serves Grow, Drink Mixes Reach $1 Billion ALSO THIS ISSUE: MAGIC HAT BREWERY DIET ENERGY BOUTIQUE CSDs RTD JUICE OCTOBER 2008 vol. 6 :: no. 7 cover story 30 Powder Power Single serve drink mixes measure profi t by the square inch features 24 We Already HAD a V8 How the world’s best known veggie drink became fruitful 28 Brands in Transition Another trick for Magic Hat columns 8 6 First Drop Saving time online 8 Publishers Toast Take a deep breath 22 Gerry’s Insights Marginal difference departments 10 Bevscape Business BPA debate back again 12 Bevscape Innovation Pepsi banks on 8-packs 14 Channel Check Spotlighting teas 18 New Products 24 Say hello to Michelob 48 Promo Parade With hoiday coverage category focus 36 Boutique Sodas Embracing function 40 Juice and Juice Drinks The economy and premium products 44 Diet Energy So very necessary conference beat 46 Review NACS Show 30 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 Miffl in Place, 3rd Floor, Cambridge, MA 02138. Periodicals postage paid at Boston, MA and additional mailing offi ces. POSTMASTER: Please send address changes to Beverage Spectrum Magazine, Subscriber Services, One Miffl in Place 3rd Floor, Cambridge, MA 02138-9917. OCT.08.BEVERAGESPECTRUM.5 THE FIRST DROP By Jeffrey Klineman THE INTERNET: GET IT? THERE’S A LOT of discussion these days about whether various people or companies “get” the Internet. This is not a major concern for us at Beverage Spec- ÊUÊÌiÀiÌÊ>«Ê>ÃÊvÊ trum, as we, in fact, are creatures “of” January 16, 2006. the Internet. We don’t so much get it as are gotten by it, are glued to it, spend half our time lost in it, and enjoy forwarding amusing things back and forth that we have found in it. orbiting around every trend or niche interest duced a lot of the environmental zeitgeist. They say write about what you know, and one can think of, from the best cheeseburger You can’t beat them. Join them. Start selling it’s with this in mind that I tell you I know in Omaha to the various kinds of men who your environmental initiatives online. the Internet. Or, at least, the various news look like Kenny Rogers. and product sites I patrol hourly. Here’s the With so much to absorb – and so many 3 . As part of 2, remember – the Internet thing I get about the Internet: online, there misspelled captions laid over photos of cats is the home of the “Master Debunker.” The is a justifi cation or rationalization for every – it’s easy to take your eye off the ball when Master Debunker is a semi-journalistic, single thing written, recorded, or argued, it comes to harnessing the Internet for the semi-consumerist blogger or organization and there are a lot of t-shirts for sale. purpose of making and selling beverages. To who will fi nd out what is in your product, The idea that so much of our time is now spare you the trouble of having to “get” the what claims you make are truthful, and spent online does offer a wide variety of Internet, however, these are some observa- where to get it for cheap. Do not try to lie opportunities for beverage companies and tions that, having bothered to read this far, to the Master Debunker. They will leave you retailers to have an impact. For example, you should download to your own personal naked and hurting, with all your calories and knowing my wife was headed up to tax-free knowledge base: additives hanging in the wind. Look at the New Hampshire (New Hampshire having up-and-down fate of “All-Natural” 7-Up for voted long ago to offi cially change its state 1 . The niches of common interest that a clue to that. name to “Tax Free New Hampshire), I form on the Internet are the same kinds of hopped on the New Hampshire State Liquor groups that can sustain a product. Bawls is 4 . Just because something is an Internet Store web site to fi nd out what cheap cases an example of a product line that has found fad, that doesn’t mean it’s going to translate of red wine were available at their 77 loca- a variety of different, marketable niches into a good beverage. The better move is tions. It seems to me that this should be a rather than a broad, one-size-fi ts-all market- to understand what the fad represents: the fairly easy trick for chain stores to imple- ing strategy. If you’re launching or selling a answer to a question asked by Internet users. ment, particularly given the amount of work new product, go for the right niche. Jones Soda did this well for years –using the they are currently putting into category Web to let users express their individuality. management. 2 . Environmental awareness is not going There’s also a lot of knowledge and away, and bloggers, activists and nonprofi ts 5. When all else fails, post a photo of opinion available online. While a lot of that who fi nd equal footing for their messages a cat enjoying your product. Make sure to is political, there’s also a galaxy of sites with marketers and manufacturers have pro- misspell everything the cat says. 6.BEVERAGESPECTRUM.OCT.08 a10tion calorie counting shoppers! we hate to twist our own caps, but we just did the unthinkable to low-calorie! sonly 10 calories per serving sgreat tasting (trust us, it can be done) spacked with vitamins and nutrients available in 20oz. singles and 16oz. 4 packs. low cal PUBLISHER’S TOAST By Barry J. Nathanson PUBLISHER Barry J. Nathanson [email protected] TAKE A DEEP BREATH... EDITOR Jeffrey Klineman [email protected] ASSOCIATE PUBLISHER John McKenna [email protected] ART DIRECTOR Matthew Kennedy [email protected] GRAPHIC DESIGNER Amadeu Tolentino [email protected] ASSISTANT EDITOR Matt Casey [email protected] PRODUCTION MANAGER Adam Stern [email protected] JR. DESIGNER Natalie Iknaian [email protected] SUBSCRIPTION INQUIRIES Adam Stern [email protected] 617-715-9679 ONLINE RENEWALS & CHANGES www.bevspectrum.com/subscribe OUR ECONOMY is roiled to a level not recessions and tight credit before, and have seen since the Great Depression. The roller always come out of it. ARTICLE REPRINTS coaster of the Dow Jones and the collapse What does this have to do with beverages? (500 copies or more) of several once-esteemed fi nancial institu- Everything. This is not a time for marketers, FosteReprints 800-382-0808 x142 tions have launched the anxiety meters to the retailers and distributors to go into a shell. stratosphere. The entire world’s economy is It is essential that we continue to be visible caught in this downward spiral. Our 401Ks, in the marketplace. We are blessed to be in BEVERAGE SPECTRUM IRAs, savings, and stock accounts are evapo- an industry that the consumer both needs PUBLISHING INC. rating before our collective eyes. Nothing and wants. So look where you can trim, of CHAIRMAN seems safe or secure anymore. course, but don’t stop your initiatives. Bever- John F. (Jack) Craven Being a baby boomer born in 1948, I viv- ages are a foundation of our package goods [email protected] idly remember the conversations of my par- industry. Our brands are some of the few PRESIDENT AND ents and their peers about their lives during basic and luxury items that the public can EDITORIAL DIRECTOR the turbulent Great Depression. Years later, afford. We would send a bad signal if the John Craven their fears and angst were still very real, and shelves weren’t stocked, if the choices were [email protected] the times they talked about were truly des- diminished, and the pricing was either cut perate. But what I remember most was their drastically or raised too much. Promote your EDITORIAL faith in our system and the American way brands and keep up the marketing efforts. 1 Miffl in Place, Suite 300 of confronting dark issues and overcoming Don’t slash budgets on programs that have Cambridge, MA 02138 them. Sure, what they were discussing was worked for you for so long. Give a value ph. 617-715-9670 fax 617-715-9671 different from today’s situation. They didn’t proposition that the buyer can embrace. ADVERTISING have the safety nets, government-sponsored The market will come back, as will the 1123 Broadway, Suite 210 deposit insurance, and the immediate credit. The economy will rebound, as it New York, NY 10010 intervention that we all hope will eventu- always has. Our industry is a bellwether of ph. 212-647-0501 fax 212-647-0565 ally bring us back from the economic abyss. our economy. Make sure you’re serving the We can believe, from their experience, that, customer well, and you’ll be poised to ben- while these times are tough right now, they efi t from the turnaround. It will come. BPA Worldwide Member, June 2007 too shall pass. We’ve had economic travails, 8.BEVERAGESPECTRUM.OCT.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.
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