Aiming for Profits with Energy Shots

APRIL 2008 SUDDEN IMPACT aiming for profits with energy shots

ALSO THIS ISSUE: KIDS BEVERAGES SPARKLING JUICES CSDs AND CORN PRICES

APRIL 2008 vol. 6 :: no. 3

more than academic

A RETAILER’S GUIDE TO SCHOOL BEVERAGE GUIDELINES

17 26 28

Cover Story 28 :: LITTLE COMPETITION Departments 8 :: BEVSCAPE Energy shots aim for big profits Dr Pepper Spinoff Completed

10 :: CHANNEL CHECK Coke’s Prize Purchase Special Section 17 :: KIDS BEVERAGES A retailers guide to school 12 :: NEW PRODUCTS beverage guidelines Daily’s Keeps Mixing it Up

44 :: PROMOTION PARADE Nutrisoda Goes Biking Features 26 :: PUMPING GAS, AND SOFT DRINK PRICES How corn and gas are making for an expensive mix Columns 4 :: THE FIRST DROP Charity-Flavored Water 38 :: SPARKLING JUICES Not done fizzing 6 :: PUBLISHER’S TOAST Confessions of a 42 :: BRANDS IN TRANSITION Trade Show Junkie Fiji goes green 40 :: GERRY’S INSIGHTS 46 :: EXPO WEST IN REVIEW Michael Pollan, Natural A crunchy old time at Expo West Foods’ Frenemy

48 :: SHOW PREVIEW Beverage Spectrum is published monthly with combined issues in January/February, May/June, July/ Fancy Foods in Chicago 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. 50 :: SHOW PREVIEW POSTMASTER: Please send address changes to Beverage Spectrum Magazine, Subscriber Services, One FMI in Las Vegas Mifflin Place 3rd Floor, Cambridge, MA 02138-9917.

APRIL 08 :: BEVERAGE SPECTRUM 3 THE FIRST DROP A NEW FLAVOR: CHARITY

iven their typical concentration of youthful chunk of shelf space in Whole Foods’ mid-At- We’re not pointing Lewis out as the next big liberalism and cutting-edge faddishness, a lantic region. thing – although there’s obviously plenty of po- college campus can be a hard place to be a bottled “It’s cool,” he says. “As we grow and build up tential here for Give to resonate with the folks water mogul. Just ask University of Pennsylvania our brand, the top of our priority list will be to who were early adopters of bottled water in the freshman Ben Lewis. create more ways to give. People say, add a bottle fi rst place – but we’re pointing out his product as “Everyone likes to pick on the bottle water for this charity or for that one. It’s great. There’s the kind of clever and classy marketing innova- business,” he says of his fellow students. “It’s re- so much potential for expansion – not only into tion that can help keep the category growing. ally the thing to do these days.” other causes, but into other product lines down But with any number of new causes available That can’t be music to the ears of Lewis, whose the road.” as SKUs, with a brand conceit that could be ex- precocious entry into the beverage business start- Distributors and retailers are starting to have tended to several different kinds of products, we ed when he launched the Give brand of bottled legitimate concerns about the long-term mo- think Lewis has fi gured out something impor- water last August. mentum of the bottled water category. Media tant. Still, when Lewis explains what his business and environmental forces are fast turning against He’s fi gured out that in cynical times, a little does, the criticism tends to soften. The con- bottled water for environmental reasons. With earnestness can be very refreshing. ceit behind Give is pretty simple: the company that backlash spreading, but consumer habits donates ten cents for every bottle you buy to a with regard to water now strongly established, cause. There are three SKUs. So if you buy a blue Lewis sees his company as allowing bottled water bottle, you help fi ght child hunger; buy a pink consumers to self-levy a sin tax. bottle, you help fi ght breast cancer; buy a green “I’m not going to sit here and tell you that bottle, you help save the environment. If the bottled water is a rational product,” he says. “At majority of spring waters are generally equal in home, I don’t drink it. But there are 20 million terms of quality and taste, as most consumers are Americans that drink bottled water every year. starting to believe, the idea is that a cause might Give isn’t trying to reverse a consumer trend. make Give fi rst among equals. There’s nothing I can do about that. But if Give To Lewis’ own amazement, it’s turned into a can just leverage the power of this industry and growing phenomenon, having gone from a local use it as a vehicle to do some good – and I think brand in his hometown of Pittsburgh to a large we’re doing that – if we can, that’s the success.”

4 BEVERAGE SPECTRUM :: APRIL 08

PUBLISHER’S TOAST

PUBLISHER Barry J. Nathanson [email protected] TRADE SHOW JUNKIE 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]

BUSINESS MANAGER ’ve been a trade show junkie for over 25 years attendance . They know a good thing when they John Schinn now. Although I hate the travel, the excitement see it. [email protected] of arriving on the ﬂ oor of the show at its open- What do these shows offer that the traditional SUBSCRIPTION INQUIRIES ing still drives me. After all, where else can you beverage shows seem to have lost? In a word, en- Adam Stern see so many new brands and old friends at the ergy. They have captured the zeitgeist as the place [email protected] 617-715-9679 same time? For 16 years now, I’ve traveled the to be heard, to meet the principals and exchange beverage circuit. FMI, NACS. NBWA, Inter- in real dialogue. They have captured the entre- ONLINE RENEWALS & CHANGES bev, NACDS, IBWA, Fancy Foods, Expos East preneurial spirit. While their specialty retailers www.bevspectrum.com/subscribe and West, and an array of others have fi lled my and small chain formats don’t drive the product ARTICLE REPRINTS calendar. I spend my time critiquing the latest volumes of their larger brothers, they share that (500 copies or more) offerings from a taste, packaging and marketing magical entrepreneurialism. With the “big guys” FosteReprints 800-382-0808 x142 perspective. I especially get a kick out of seeing of the beverage industry buying up many of the old friends in new positions. (We have quite an successful brands from the last fi ve or ten years, incestuous industry: some have worked at 10 or the next generation of products have started to BEVERAGE SPECTRUM more different companies over the years.) emerge, and they’re emerging at what once had PUBLISHING INC. The new launches were usually the province been the smaller shows. That those events have CHAIRMAN of the major food shows, and FMI and NACS grown so much is evidence that they are the plac- John F. (Jack) Craven [email protected] were the gold standards. That is no longer the es to seek out something new. case. To anyone who attends the Expo East and PRESIDENT & EDITORIAL DIRECTOR especially Expo West, the beverage world has John Craven [email protected] tipped towards these venues. I fi nd it interesting that the newest and most innovative brands are being exhibited at these shows. While the Natu- EDITORIAL ral and Organic sector is only a smidgen in the 1 Mifﬂ in Place, Suite 300 Cambridge, MA 02138 total sales of the industry, almost all the attention ph. 617-715-9670 fax 617-715-9671 has been devoted to it. Take a walk around the ADVERTISING recent Expo West and look at our show coverage 1123 Broadway, Suite 210 New York, NY 10010 ph. 212-647-0501 fax 212-647-0565 on BevNET and you’ll know what I mean. Just as important, as you cruise the aisles, you see the retailers of all the major grocery, c-store, mass, BPA Worldwide Member, June 2007 club and drug chains strongly represented. The Barry J. Nathanson, distributors and beer wholesalers are equally in Publisher

6 BEVERAGE SPECTRUM :: APRIL 08 Dmjfou;!!JEGB0NjmlQFQ Qspevdu;!Sfgvfm Qvc;!Cfwfsbhf!Tqfdusvn Ebuf;!Bqsjm!3119

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MilkPEP_Refuel_BevSpect.indd 1 3/22/08 9:08:46 PM Bevscape WHAT’S HAPPENING ACROSS BEVERAGES

THE DOCTOR IS IN Copy Investors at Cadbury- Schweppes decided over- whelmingly that it was time to sever their beverage business from its chocolate-centered parent company. What that Goldman said vote will mean for the beverage company and the industry as a whole, he goes back with though, is up for debate. Cadbury “a long way,” and Industry Analyst Manny Goldman said he thinks the vote will bring he believes the spinoff won’t change little more than a name change to the soon-to-be Dr Pepper Snapple how the company operates. Despite its Group, but George Kalil, President of one of Cadbury’s largest U.S. bot- corporate ties to London, Goldman said, tlers, hopes that the restructuring will mean more. the division has effectively functioned as an inde- “If it goes through in the fashion it’s supposed to go through then pendent company. I think that it could be very good for everybody,” Kalil said, “for the “The confection business and the drinks business are really sep- employees and the network.” arate animals,” Goldman said. “Just the nature of the business Kalil said that high-level decisions would have to be easier when top is different.”Goldman said the two divisions usually didn’t even share offi cers can organize meetings simply by yelling down the hall of their fi nances, but that didn’t mean that the two businesses didn’t have Plano, Tex. headquarters. Currently, he said, American brass has to bring things in common. ideas to their London bosses before making any changes. That creates Both companies, Goldman said, compete as “leaner and mean- logistical snags, as nearly 5,000 miles, six time zones and the Atlantic er” competitors in fi elds dominated by a handful of giants. Cadbury Ocean separate Plano from London. wrestles with Hershey and Nestle, and Dr Pepper battles for shelf space Removing those snags, Kalil said, will allow the company to more against Coke and Pepsi. nimbly adopt new ideas, and removing the foreign ownership could While that may be true, Cadbury took pains to streamline their buoy the morale of associated independent bottlers. drinks division before spinning it off. Kalil’s family has been running the Kalil Bottling Company for 60 Between 2003 and 2005, Cadbury integrated Dr Pepper/Seven Up, years, and Kalil said bottlers felt more invested in the company before Mott’s and Snapple into one organization. Between 2006 and 2007, Cadbury Schweppes PLC and the Carlyle Group bought Dr Pepper/ they bought total control of the Dr Pepper/Seven Up Bottling Group Seven Up in 1995. and purchased other third-party bottlers, and, last year, Cadbury cut “We all felt like we owned part of it,” Kalil said. “That’s not easy to do 470 U.S. drinks division jobs ahead of the upcoming demerger. when you’re part of a foreign owned company.” The resulting company will command the power of a long list of He said he hopes the company will take a giant cultural step back beverage brands including A&W Root Beer, Canada Dry Ginger Ale, before it moves forward, and he thinks Larry Young, who will be the Sunkist, and Sunny Delight. DPSG’s chief executive offi cer, is the right man for the job. Goldman said the management team in place has done a fi ne job Goldman agreed that Young – who has served as the CEO of the Dr of corralling those disparate brands, and believes they’ll probably per- Pepper/Seven Up Bottling Group since 2005 – represents a good choice form at least as well when spun-off. Kalil said he expects the company to lead the beverage company, but that’s about the only point where to experience a period of adjustment, and hopes they will emerge as Goldman and Kalil agreed. a better company.

ENDORSEMENT WATCH Gotta wonder if there’s some dissension in the Red Sox’ ranks. Meanwhile, look who else is on the No, not over anyone’s share of World Series dough, either. It’s ball for vitaminwater? Yep, there he probably over the variety of enhanced water they’re throw- is, basketball’s second coming, Le- ing into the clubhouse cooler. David Ortiz is well known Bron James. Remember the King as one of the big guns hawking vitaminwater for Coke, but James comic book for PowerAde? Bet- Pepsi trucks in the Boston area now show catcher – and Sox cha they don’t do volume two with him team captain – Jason Varitek shilling for SoBe Life Water. in a vitaminwater uniform. Fenway Park is a Coke stadium, to be sure, but who can argue with the Captain? And what would Ted Williams, think, anyway? Chances are, he’d think “where’s the damned Moxie?” Maybe in the freezer with the rest of you, Ted… NOW PITCHING FOR SOBE, THE CATCHER!

8 BEVERAGE SPECTRUM :: APRIL 08 A-B LOOSENS THE BLUE MOON RISING APRON STRINGS Blue Moon – brand of the year. meeting the ever-changing tastes Since the late ‘90s, the big boys That’s the word from IRI, which of consumer demands with their of beer have successfully swal- recently released its Top 30 Beer new product innovations. The key lowed up the competition, holding Brand Performers ranking, the re- now is getting the proper amount wholesalers to exclusive contracts sult of intensive share vs. volume of shelf space and distribution in and dominating shelf space. Now growth pricing in the last year. the right stores across multiple that Darwinian order appears to be With the top three coming from trade channels to support these backfi ring. Consumers want vari- Blue Moon, the Sam Adams sea- power brands.” ety – read: crafts and imports – and sonal line and Heineken Premium The Top 30 Beer Brand Perform- wholesalers want to deliver it. Light, the real big movers of the ers ranking is designed to highlight Anheuser-Busch, which has been beer category continue to be ex- the brands that experienced signifi - under pressure from wholesalers, is posed: craft, craft-y and imports. cant year-over-year growth across trying to placate them and bring “The historic trend of consum- total U.S. supermarkets in 2007. In a little variety to your consumers trading up and paying premium addition to looking at volume and ers. Distributors unable to carry price for their favorite brands con- dollar sales, IRI also examined pric- A-B’s “aligned brands”—primarily tinued in 2007,” said Bump Wil- ing, share growth and incremental InBev offerings like Stella Artois liams, general manager, IRI Beer, volume and dollar contribution. or Grolsch—because of statutory Wine and Spirits Practice. “In fact, It’s not that the big brewers franchise laws will now be allowed 20 of the top 30 Beer performers aren’t getting results – all three big to carry other beers, water or tea, are high-end brands that include light brands made the top 10. But but not wine or distilled spirits 13 imports and seven craft brands. the IRI poll shows retailers where from companies other than A-B or Brewers, Distributors and Retail- the tastiest trends are. its affi liates. While A-B is working ers are doing a phenomenal job of to minimize competition with its own brands, the hope is that the arrangement will re-energize its relationship with distributors. Meanwhile, A-B has looked IRI TOP 30 BEER BRAND PERFORMERS IN 2007 within its own product line to TOTAL U.S. SUPERMARKETS capitalize on the craving for crafts, which are growing faster than the 1. Blue Moon Belgian White Ale 16. Model Especial overall beer segment. Although its 2. Samuel Adams Seasonal 17. Michelob Ultra Light Michelob line has lagged in recent years, A-B is attempting to reinvent 3. Heineken Premium Light Lager 18. Dos Equis XX Especial Lager the “draught beer for connoisseurs” 4. Stella Artois Lager 19. Samuel Adams Light turning to a soon-to-be-launched 5. Newcastle Brown Ale 20. Sierra Nevada Pale Ale Michelob Brewing Co. to foster 6. Coors Light 21. Michelob Golden Draft Light A-B’s fuller-ﬂ avored beers. By turning the 7. Bud Light 22. Heineken producer of products 8. Yuengling Traditional Lager 23. New Belgium Fat Tire Amber Ale like Michelob, Mi- 9. Miller Lite 24. Grolsch Lager chelob Porter, Am- 10. Samuel Adams Boston Lager 25. Dos Equis XX Amber Lager berBock into its own little unit, letting 11. Keystone Light 26. Steel Reserve High Gravity Lager them experiment 12. Corona Light 27. Red Stripe with old-style and 13. Tecate 28. Busch Light new beers – like a 14. Guinness Draught 29. Shiner Bock dark wheat Bavar- ian-style, due out 15. Samuel Adams Variety Pack 30. Guinness Extra Stout later this year – it might be able to *Minimum of 500,000 cases sold in total U.S. supermarkets for 52 weeks ending Dec. 31, 2007 promote its place as a home for better brew.

APRIL 08 :: BEVERAGE SPECTRUM 9 Channel Check april 2008

CONVENIENCE/PET STILL WATER Dollar Sales Change vs. year earlier SPOTLIGHT CATEGORY Private Label $669,923,500 19.9% Aquafina $503,968,400 -2.0% Water Dasani $443,769,400 -2.6% Glaceau Vitaminwater $435,033,300 115.6% 52 Weeks ending 3/23/2008 Poland Spring $245,097,800 -7.4% Hey, look at that – this set of water num- Propel $192,249,100 -1.6% bers, which has always included function- Arrowhead $183,041,200 2.4% al products like vitaminwater and Propel Deer Park $137,399,100 -6.2% for some reason known only to the folks at IRI – shows just how psyched the Nestle Pure Life $124,516,100 28.9% Coke folks should be over their purchase Crystal Geyser $109,302,400 9.9% of Glaceau. When you bring in a brand Ozarka $101,640,100 0.9% that has roughly the same sales as your Ice Mountain $98,465,900 7.3% top-selling water, and watch it leave one Zephyrhills $86,985,740 0.8% major opponent in the dust by a greater than 2 to 1 margin, you think, hey, it cost Fiji $85,890,540 23.6% us, but it was worth it. And look further Evian $78,043,770 -2.1% down, too – where smartwater is within Dannon $67,861,260 -38.8% shouting distance of both Evian and Fiji. Glaceau Smartwater $55,098,180 110.8% The high end is still growing, the func- Aquafina Flavorsplash $45,104,940 -9.1% tional side is going gangbusters, and even beloved hippie bottle maker Nalgene SoBe Life Water $44,695,220 133.7% just caught a punch in the gut. Maybe Veryfine Fruit2O $42,797,800 -27.1% the water business isn’t the worst place Heading Up: Glaceau Vitaminwater to be? SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart

BOTTLED WATER ENERGY DRINKS $5,226,233,000 $837,647,500 7.1% 20.8% BEER TOPLINE CATEGORY SPORTS DRINKS $9,424,535,552 $1,715,877,000 VOLUME 3.7% 4.6% 52 Weeks ending 3/23/2008 BOTTLED JUICES TEA/COFFEE $3,795,195,000 $1,465,509,000 2.1% 13.7%

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

10 BEVERAGE SPECTRUM :: APRIL 08 RTD TEA Dollar Sales Change vs. year earlier ENERGY Dollar Sales Change vs. year earlier AriZona $293,600,300 5.6% Red Bull $352,364,800 20.5% Lipton $273,762,600 38.2% Monster $142,218,700 36.2% Snapple $131,242,800 8.2% Rockstar $98,153,490 20.6% Lipton Brisk $88,399,760 2.1% Full Throttle $42,401,350 -10.7% Diet Snapple $82,300,510 -3.9% Amp $29,944,210 17.3% Nestea $65,959,210 23.4% SoBe No Fear $23,035,730 -36.9% Lipton Iced Tea $43,442,320 -26.4% Monster XXL $15,267,410 113.3% Private Label $36,499,740 13.0% SoBe Adrenaline Rush $13,746,110 -24.1% Lipton Pureleaf $27,204,140 N/A Rockstar Juiced $13,018,690 187.3% Nestea Enviga $25,954,920 190.4% Amp Overdrive $10,840,910 1,011.1% Heading Up: Enviga 52 Weeks through 3/23/08 Heading Up: Amp Overdrive 52 Weeks through 3/23/08 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 SPARKLING JUICE Dollar Sales Change vs. year earlier Frappuccino $191,353,900 4..4% Welchs $17,048,570 -0.8% Doubleshot $25,705,930 -7.8% Martinellis Gold Medal $13,672,850 -0.2% Starbucks Iced Coffee $14,026,930 29.6% Izze $10,935,000 10.2% Bolthouse $12,347,460 13.8% Orangina $6,774,603 12.9% Doubleshot Light $11,048,510 17.5% Private Label $5,165,446 6.3% Godiva Belgian Blends $8,082,136 54.3% Meiers $4,167,706 -13.8% Cinnabon $2,115,872 771.9% RW Knudsen Family $3,787,302 21.8% Private Label $1,743,767 821.2% Kristian Regale $2,960,995 -7.4% Hillside $725,917 142.4% Lorina $2,359,196 -7.5% Starbucks Cappucino $638,505 70,655.4% Crystal Geyser Juice Squeeze $2,171,866 10.7% Heading Up: Cinnabon 52 Weeks through 3/23/08 Heading Up: RW Knudsen Family 52 Weeks through 3/23/08 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 BEER Dollar Sales Change vs. year earlier Gatorade $626,205,700 -9.4% Bud Light $1,451,717,888 3.3% Powerade $250,670,800 16.2% Miller Lite $747,077,504 3.5% Gatorade Rain $155,167,500 16.6% Budweiser $738,134,336 -3.5% Gatorade Frost $140,970,300 -2.5% Coors Light $664,185,088 6.0% Gatorade All Stars $134,747,000 16.3% Corona Extra $483,936,384 -1.4% Gatorade Fierce $88,257,900 -7.2% Heineken $321,705,728 5.3% Gatorade X Factor $78,292,890 -17.2% Natural Light $296,983,904 1.0% Gatorade AM $71,601,050 610.4% Busch Light $220,814,720 4.4% Gatorade G2 $34,635,810 N/A Michelob Ultra Light $212,028,768 4.2% Powerade Option $19,007,640 12.3% Miller High Life $181,333,024 3.2% Heading Up: Gatorade AM 52 Weeks through 3/23/08 Heading Up: Coors Light 52 Weeks through 3/23/08 SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart

APRIL 08 :: BEVERAGE SPECTRUM 11 NEW PRODUCTS

BEER RTD TEA

Miller Brewing Company has rolled out MGD 64, a Skae Beverage International has launched the lat- reformulation of MGD Light that has just 64 calo- est additions to its successful New Leaf line with ries, throughout the Midwest. Additionally, the Diet New Leaf teas. Choosing to release diet ver- brewer is testing MGD 64 in Arizona, San Diego sions of the widely popular Blue Tea, Diet Blue Tea and Sacramento. No other beer on the market has Lemon and Diet Blue Tea Peach will be available fewer calories than the new MGD 64. The roll-out this spring. Pairing blue tea with lemon and peach includes activities in some places consumers may has allowed for a distinctive citrus and fruit blend not expect to experience MGD 64 such as spas unlike any diet RTD tea available on the market. and health clubs, as well as some additional activi- Sweetened with Splenda, New Leaf diets main- ties that consumers will discover throughout the tain the integrity of the original lemon and peach beginning weeks in March. MGD 64 has only 64 fl avors. Diet New Leaf will be available in the calories and 2.4 grams of carbohydrates per 12 oz. trademark sophisticated 16.9 oz proprietary glass For more information, call (414) 931-3848. bottle. The MSRP would be $1.49- $1.79 and dis- For the past three years, Anheuser-Busch brew- tribution will be national. For further information masters have brewed special batches of beer please visit: www.drinknewleaf.com. crafted to complement the changing seasons. In response to growing consumer demand, Sun Dog Amber Wheat is stepping up to fi ll the ITO EN has expanded its 2 liter offerings of TEAS’ shoes of the very popular Spring Heat Spiced TEA beverages to include its Golden Oolong va- Wheat, which has graduated to a year-round of- riety. TEAS’ TEA 2 liter bottles are also available fering known now as Shock Top Belgian White. in Green Jasmine, Green White and Pure Green Jack’s Pumpkin Spice Ale, Winter’s Bourbon Cask varieties. They retail for $4.69 each and can be Ale and Beach Bum Blonde Ale will continue to found at mass merchandise stores, grocery stores be available during their respective seasons. Sun and specialty natural food retailers nationwide in- Dog is an unfi ltered beer, with a naturally cloudy cluding Whole Foods, Super Target, Bashas’ Su- appearance and fuller texture which allows it to permarket and Wegman’s. TEAS’ TEA can also be stand up to spicy foods like Thai noodle salads ordered at www.itoen.com. For more information, and Cuban sandwiches. Sun Dog is brewed at please call (707) 327-6413. Anheuser-Busch’s Fort Collins, Colo., brewery and contains 5.3 percent alcohol by volume. For more JUICE information, call (314)577-9629. Hoegaarden, the Original Belgian White Beer, Naked Juice has released Bare Breeze, a refresh- will be available in 12-packs beginning Monday, ing super-premium, 100 percent juice with no March 10. Hoegaarden is brewed in Belgium and added sugar or preservatives. Naked Juice Bare imported to and distributed in the United States by Breeze is available beginning March 31 in two Anheuser-Busch Inc. Hoegaarden is an unfi ltered tempting fl avors: Watermelon Chill and Peach wheat beer with a soft body, cloudy Mangosteen Bliss. Watermelon Chill mixes wa- appearance and thick, frothy head. termelon and lime, along with strawberries, a hint It’s brewed with real Curaçao or- of apples, and white grapes for good measure. ange peel and a dash of coriander Peach Mangosteen Bliss blends juicy peaches and and was the Gold Medal winner exotic mangosteen, along with apples, a hint of at the 2006 World Beer Cup. This lemon, and white grapes. With fruit such as water- product will be distributed nation- melon and mangosteen never-before-featured in ally and will be priced by whole- the more than 25 fl avors offered by Naked Juice, saler decision. For more informa- the crisp, fresh creations are a unique offering tion, call (314)577-9629. among the growing super-premium juice catego-

12 BEVERAGE SPECTRUM :: APRIL 08 ry. Watermelon Chill and Peach Mangosteen Bliss Bossa Nova Superfruit Juices features the com- will be available nationwide for a suggested retail pany’s fi ve original açai juices as well as fi ve new price of $3.19 per 15.2 ounce bottle. For more in- ﬂ avors: Acerola Juice with Mango and Acerola formation call 626.633.8384. Juice with Red Peach, Goji Berry Juice with Tart Sun Shower has introduced Stamina Superfood Cherry, Mangosteen Juice with Passion Fruit and Smoothie, a new, all natural, 100% juice smoothie Mangosteen Juice with Dragonfruit. These 10 oz. which contains over 20 essential vitamins, nutri- products will be distributed nationally with an ents, amino acids, electrolytes, herbs and anti- MSRP of $3.29. oxidants. Stamina helps enhance energy and endurance while providing enhanced nutrition and ENERGY DRINKS the same great taste of Sun Shower’s™ other 100% nectarine juices. For more information, call Bawls Guarana has introduced G33K B33R – the (312) 768-7376. fi rst-ever high-caffeine root beer, inspired by root Bossa Nova is introducing a line of new juices beer fans everywhere who want to let out their made with these superfruits: acerola, the highest inner geek! A rarity in the root beer world, G33K Vitamin C fruit; goji, the highest carotenoid fruit; B33R packs a caffeine kick equal to a cup of cof- and mangosteen, a xanthone-rich fruit. This led to fee and nearly three times that of traditional so- the creation of a full line of beverages that retain das. Written in “Leet Speak,” a language popular the best qualities of these fruits. The full line of among techies where letters are substituted with numbers, G33K B33R’s refreshing, root beer ﬂ avor is spiked with guarana to deliver a natural caffeine kick perfect for anyone in need of a “bounce.” This product will be marketed nationally and will NEW DRINK REVIEWS be line-priced with other Bawls offerings. For more information, call (305) 531-9708.

Beaver Buzz Black Currant Energy ENHANCED WATER King 888 Energy Olade PepsiCo has reformulated its Aquaﬁ na Alive Nu- trient Enhanced Water Beverage lineup, including DNA Energy a new option with 10 percent of the daily recom- TeaZazz mended value (DV) of fi ber. Aquafi na Alive, a line Franks Energy extension of the nation’s leading water brand, Amp: New Flavors adds more functionality to PepsiCo’s leading hy- dration portfolio. Aquafi na Alive Satisfy (10-Calo- Vita 500 rie Peach Mango, with 10% DV of fi ber) is one of Nitro2Go Instant Energy the only waters on the market with a signifi cant Simply Originals amount of fi ber. Protect (Calorie-free Berry Pome- Red Bull Cola granate, with 10% DV of Vitamins E and C) is a good source of E and C vitamins. Energize (Calo- Java Monster: New Flavors rie-free Orange Lime, with caffeine, 10% DV of Vi- Nos Powershot tamin B) is enhanced with about as much caffeine Bawls G33K B33R as an average cup of coffee. Hydrate (Calorie-Free Virgil’s Real Cola Lemon, with electrolytes, sodium and potassium) is enhanced with electrolytes to replenish the nutrients an active body loses throughout the day. 20 From March 28, 2008 to press time. oz. pricing will be $1.19-$1.29, while 16.9oz 6-pack To see reviews, visit www.BevNET.com pricing is $2.50-$3.29. For more information, call (914) 253-2437.

APRIL 08 :: BEVERAGE SPECTRUM 13 (ALF0AGE"EV3PEC VERTPDF0-

SPIRITS

Stolichnaya Vodka has launched Stoli Blakberi, the newest fl avor to join the award winning family of imported vodka fl avors. The new fl avor joins the popular, award winning family of Stoli fl avors that includes Stoli Blueberi, Stoli Vanil, Stoli Raz- beri, Stoli Cranberi, Stoli Strasberi, Stoli Citros and Stoli Ohranj. Stoli is supporting the launch of Stoli Blakberi with a full array of programming including Blakberi specifi c national and local advertising, on and off-premise point-of-sale materials and on-premise consumer sampling events in key markets across the U.S. Stoli Blakberi will be available in four sizes – 1.75 L, 1.0 L, 750 ml and 50 ml – and will launch nationally in May, 2008. It will retail for a suggested price of $23.99 for a 750 ml. For more information, call (203) 254-8225. Daily’s, America’s premier cocktail and mixer, has introduced a new line of all natural martini mixers. Daily’s Sour Apple, Blueberry, Lemon and Pear Martini Mixers will make their retail debut # this April, just in time for the refreshing summer - cocktail season. Daily’s Sour Apple, Blueberry,

9 Lemon and Pear Martini Mixers, available in 20

#- oz. PET bottles with Daily’s proprietary pour spout fi nish, will have a suggested retail price of $4.99 -9 per bottle. Daily’s will support the launch with #9 national print and on-line advertising and attrac-

#-9 tive POS materials that include delicious at home

+ recipe suggestions. For more information, call (203) 254-8225. From Hood River Distillers comes the aptly- named Spudka vodka. Made with Idaho pota- toes and pure, glacier-fed Mt. Hood spring water, Spudka is 80-proof vodka that undergoes a complex 139-plate distillation process, is double char- coal fi ltered and contains no additives. It sells for $12.95 per 750mL bottle. For more information, call (971) 244-0661. Smirnoff Vodka has introduced Smirnoff Pas- sion Fruit and Smirnoff White Grape. These innovations feature award-winning Smirnoff No. 21 Vodka immersed with the sweet, yet tart and tropical fl avor of the popular passion fruit and the crisp, sweet and smooth fl avor of white grape. Smirnoff Passion Fruit and White Grape join the already existing 11-product Smirnoff fl avored vodka col- lection. All are available in 50mL, 200mL, 375mL, 750mL, 1L and 1.75L sizes. The 750mL bottle car- ries a suggested retail price of $14.99.

14 BEVERAGE SPECTRUM :: APRIL 08

A SPECIAL SECTION FROM more than academic

A RETAILER’S GUIDE TO SCHOOL BEVERAGE GUIDELINES

BY: MATT CASEY The next time the school bell rings their rising consumption of high-fructose corn individual results may vary. So don’t start toss- and students ﬂ ood into your store, pay syrup. After that, it was only a matter of time ing out your Coca-Cola in favor of no-calorie attention to what they buy. It may be before experts chose the beverage industry as the beverages yet. different from what they bought a few next target in the battle for fi t and trim kids. First, the ABA plans to fi nish rolling of the years ago. Those teens and tweens But ABA leaders – with a little help from the new guidelines at the start of the 2009 school may be handing you wadded up bills to most popular president since John F. Kennedy year, so they may not have gotten to your neigh- pay for – gasp – healthier beverages. – turned their time in the cross-hairs into an borhood yet. Second, even if they have, that Or maybe not. It all depends on where you opportunity to lead. The Association shook doesn’t mean that students who drink nothing are and what your local school districts are doing hands with the Alliance for a Healthier Gen- but water, 100 percent juice and non-fat milk in about school beverage guidelines – particularly eration in May 2006 on guidelines that will, school are going to stick to those same healthy those defi ned by the Alliance for a Healthier among other things, eliminate full-calorie so- choices once the school day is over. Generation, former President Bill Clinton and das from schools. The goal of this landscape- Their reactions will depend on how school of- the American Beverage Association. changing agreement is to reduce childhood fi cials “frame” the new rules, according to Irwin The agreement – which sets standards for obesity and diabetes by teaching kids to eat and Levin, a professor of psychology and marketing what beverages should and shouldn’t be avail- drink healthier products. at the University of Iowa. Levin said students at able in schools –developed as an almost inevi- “We like to hope that in several years they schools that properly usher in the new rules will table consequence of America’s growing aware- might be looking for that bottled water or that probably adopt healthier beverage habits. But if ness of its growing waistlines. Politicians and diet drink or that mid-calorie drink when they’re a school fumbles the transition, Levin said stu- pundits have railed about childhood obesity for hanging out at the 7-Eleven,” said Brian Herr, dents could sour on healthy drinks and cling to years, with targets ranging from Lunchables to executive director of the Alliance. full-calorie sodas. Marshmallow Fluff. In 2005, nutritionists noted In some places, that may be exactly what More than 2,000 schools have already tran- that America’s rising obesity rates coincided with happens. But – just like Weight Watchers – sitioned into the Alliance’s beverage plan, and thousands more will have to convert in the next year. Major bottlers are in the process of converting their stock to meet the calorie, nutrition and portion size constraints that the ABA agreed to. Once they have, they won’t sell anything else in schools. Until 2009, many schools can enforce whatever metric they like. The Hickman Mills School District in Kansas City, for example, uses the Missouri Eat Smart Guidelines. The policy limits sodas to 50 percent of offered items – though it makes no distinction between diet and full-calorie sodas. According to Leah Schmidt, the district’s director of nutrition services, her students readily accepted the new policy, but she was uncertain if that behavior followed them to the mini-mart. “Changing their habits may take a little while,” she said. But Kim Bealle, director of strategy and in- Former President Bill Clinton looks on as Susan Neely, President of the American Beverage novation with the consulting fi rm Just Kids Inc., Association, speaks at the press conference for the Alliance for a Healthier Generation, a joint thinks kids in some areas have already changed initiative of the William J. Clinton Foundation and the American Heart Association at the their habits. Bealle recently visited schools in President’s ofﬁ ce in Harlem, New York, Wednesday, May 3, 2006. (Gina Gayle/U.S. Newswire) Connecticut – where the state has implemented

Clear Beverage Corporation 8379 W. Sunset Road, Suite 130 Las Vegas, NV 89113 ph. (866) 543-3583 www.kidfuel.com

Kid Fuel is a naturally fl avored, nutritious drink that offers a Grape and Orange. Each 8 oz. serving contains 100% RDA of healthy alternative to sugar laden soft drinks and fruit juices and vitamins B6 and B12 plus added, biotin (20%), vitamins B3 and gives moms a healthy option that their kids will love. Kid Fuel is B5 (20%) and calcium. Kid Fuel is currently available in 4-packs made with quality ingredients, no high fructose corn syrup and (supermarket), 12-packs (warehouse) and single serve (conve- no artifi cial fl avors, dyes or sweeteners. Kid Fuel contains added nience stores, restaurants, specialty retail). Kid Fuel will soon vitamins – along with reduced sugar, calories and carbohydrates. debut a 24-pack for Big Box retailers. Kid Fuel comes in four fruit fl avors: Kiwi-Strawberry, Raspberry,

18 BEVERAGE SPECTRUM :: APRIL 08

Crayons Inc. 9201 NE 28th Place Clyde Hill, WA 98004 ph. (415) 515-4709 www.drinkcrayons.com

While many of today’s newer beverage offerings appeal to Mom sweetness level that kids love today. Crayons Fruit Drinks also gatekeepers with their low or zero calorie messages, these bev- use the world’s fi rst “SugarGuard Protection System” to help erages often have artifi cial sweeteners, preservatives and/or ar- control the rate of sugar absorption. Crayons comes in fi ve juice tifi cial colors. We’ve found that most beverages with 50 calories fl avors: Outrageous Orange Mango, Tickled Pink Lemonade, or less sacrifi ce the critical taste appeal with the all-important Wild Watermelon & Berries, Redder-Than-Ever Fruit Punch and consumer: kids. At Crayons, we make our refreshing beverages Kiwi Strawberry. Crayons also offers three sports drink fl avors: with 33 percent fewer sugar grams while retaining the same Playoff Punch, Leaping Lemon Lime and Breakaway Berry.

tougher guidelines than those agreed to by the Bealle said, and stores could draw them in by “Our stores aren’t accordions,” he said. ABA – and kids seem to be doing okay with it. stocking an after-school refueling station with And, he said, convenience store owners have Connecticut’s policy allows only fi ve kinds of healthy drinks and healthy snacks. But Bealle’s seen better-for-you ambitions fall apart before. beverages to be sold in schools: water, 100% healthy-kids ambitions might collide with con- It wasn’t so long ago, he said, that everyone was juice, juice drinks, milk and non-dairy milk venience store realities. talking about organic foods, but the sales didn’t products, and all drinks must submit to strict Jeff Lenard, vice president of communica- live up to the buzz. guidelines on sugars and artifi cial sweeten- tions for the National Association of Conve- “Everyone will say they want healthy food, ers. Bealle said the mantra of healthy beverage nience Stores, said store operators have to re- and you watch what people buy and it’s often seemed to have made it out of the vending ma- move a product from their shelves for each item very different,” he said. chines and into student’s homes. that they add. He was also wary of modifying a store’s stock

Minimarts sell more bananas than they used to, and nutrition bars are stealing space from packaged sweets, Lenard said. The trend is similar in the cooler case, where diet drinks and fortiﬁ ed waters have gone from fringe offering to beverage staple.

“When I saw kids with brown bag lunches to cater to the buying patterns of people too they tended to have a water, or a vitamin water young to vote. Kids make up a small spectrum or a Capri Sun,” Bealle said. of the minimart’s customer base, Lenard said, That doesn’t mean that all of the school’s because they spend all day on closed campus- health-conscious decisions went over like fi re- es and have little buying power. But there are works on the 4th of July. The state also revamped exceptions to every rule. Lenard visited one food offerings, and students disapproved of store where students streamed in for breakfast, the new low-fat cookies – so much that one lunch and dinner. student leaned over to Bealle and said “Bring And not every attempt at healthy food in con- back the fat.” venience stores has ﬂ opped. Minimarts sell more The lesson here, Bealle said, is that kids bananas than they used to, and nutrition bars won’t eat something if it doesn’t taste good – are stealing space from packaged sweets, Lenard and that rule applies just as readily with bever- said. The trend is similar in the cooler case, ages as it does with cookies, chicken strips and where diet drinks and fortifi ed waters have gone butterscotch pudding. She said retailers near from fringe offering to beverage staple. schools could use that knowledge to lasso a The Alliance for a Healthier Generation may loyal customer base. Kids leave school hungry, nudge that healthy trend forward. Herr said

Hint Inc. 2430 Scott Street San Francisco, CA 94115 ph. (917) 593-5974 www.drinkhint.com

Hint prides itself on simplicity. Each 15 oz. bottle contains water, you drink before craving something more? Hint satisfi es those a hint of natural fl avor and nothing else -- no sugar, no artifi - cravings and quenches even the most powerful thirst. It gives cial sweeteners, no calories, no carbohydrates and no sodium bodies young and old what they need most. Hint currently offers – making it a refreshing alternative to sodas, juice and other nine fl avors including Peppermint, Tropical Punch and Cucum- sweetened drinks. Doctors agree that good old H20 is, without ber. Give me a Hint! question, a most benefi cial liquid, but how much plain water can

20 BEVERAGE SPECTRUM :: APRIL 08

Honest Beverages 4827 Bethesda Avenue Bethesda, MD 20814 ph. (800) 865-4736 or (301) 652-3557 www.honest-kids.com

Honest Kids, the nation’s fi rst certifi ed organic kids’ thirst Given all the negative press about the obesity epidemic quencher packaged in a portable pouch, is available in three amongst children, retailers realize that they need to provide fl avors: Berry Berry Good Lemonade, Goodness Grapeness healthier beverage options such as Honest Kids. Honest Kids and Tropical Tango Punch. Most kids’ drink pouches have more contains half the calories and sugar of most children’s drinks, sugar per once than a can of soda. In contrast, each variety of making it an attractive choice for parents while still offering a Honest Kids is low in sugar, organic and provides a day’s supply great taste. of Vitamin C.

Honest used bright TALK TO THE KIDS!

colors and pictures So how do you know if you should of fruit to give their prepare for a change of tastes in pouches a youthful – but your teen and tween customers? ageless – personality. Kim Bealle, director of strategy and innovation with Just Kids Inc., said that larger retail chains could hire her company to fi nd out where kids’ the nonprofi t plans to speak to every industry into the kids drinks segment to fail because they tastes are headed, but that service that contributes to the calories burned or con- have not one, but two hurdles to trip over. is well beyond the budget of most sumed by children, and he would love to see First, Lloyd said, kids’ beverages need to ap- mom and pop operations. For them, the Wawas and 7-Elevens of the world adopt peal to both moms and kids by offering good Bealle suggested a simpler solution: policies for pedaling healthy selections to their nutrition, fun, and good ﬂ avor. Second, the talk to the kids that patronize your younger consumers. drinks need to let kids feel as old as they want to store. Ask them what they want that “We hope that the free market will reward at any given moment. you don’t have. You may fi nd that those companies that are trying to do the right “Kids desperately crave to be a teen, but at the a lot of them want healthier-for-you thing,” Herr said. same time they don’t want to be prevented from beverages. If that’s so, you know While the “right thing” for retailers might be being a kid when they feel like it,” Lloyd said. you need to add more of those op- pretty clear – stock healthy products and sell He said his company cleared this second tions to your cooler case. them to kids – it may be a trickier proposition hurdle through clever packaging. Crayons uses 8 for beverage companies. Crayons President and oz. slim cans adorned with bright colors, a black CEO Ron Lloyd said he expected most entries oval and a set of distinctive stripes that make

Crayons uses 8 oz. slim cans adorned with bright colors, a black oval and a set of distinctive stripes that make them look like, well, crayons.

Switch Beverage Company 201 West 7th Street RIchmond, VA 23221 ph. (866) 875-8423 www.switchbev.com

The Switch has the bold taste and nutritional value of a fortifi ed Watermelon Strawberry, Orange Tangerine, Grape, Fruit Punch, juice, with the carbonated refreshment of a soda. It is the per- Kiwi Berry, Apricot Peach, and Very berry. Each comes packed fect balance of juice and carbonation with no high-fructose corn in either 12 oz glass bottles or 8.3 oz. slim cans (available in syrup, no added sugar, no gluten, no preservatives and no arti- schools) and contains 100 percent of a kid’s recommended daily fi cial colors. The brand’s eight-fl avor line includes Black Cherry, dosage of Vitamin C.

22 BEVERAGE SPECTRUM :: APRIL 08

While Hat Brands, LLC 2675 Paces Ferry Road, Suite 100 Atlanta, GA 30339 ph. (800) 747-0912 www.WhiteHatBrands.com

Launched by beverage industry and kids marketing veterans, Beverage, is loaded with Calcium, Vitamins A, B, C, D, E and White Hat Brands is committed to becoming a leading force in Minerals without all the excess stuff you may find in other bever- combating growing children’s health issues like childhood obe- ages – no high fructose corn syrup, no artificial sweeteners and sity and juvenile diabetes by developing nutritious beverages for no artificial colors or flavors. Dog On It! Is available in Strawber- “Tweens” supported by a comprehensive marketing plan and in- ry Lemonade, Berry Punch, Orange Splash, Kiwi Watermelon, novation calendar. Tropical Tangerine. Each is packaged in 6-packs of portion-con- The company’s flagship product, Dog On It! Fortified Juice trolled 8-oz. PET bottles.

them look like, well, crayons. When a kid wants retailers. Goldman said Honest Kids offers stores Clayton Christopher, founder and CEO to feel like a teen, Lloyd said, they can look at something that many other kids’ brands don’t: a of Sweet Leaf Tea, said his company added the slim-can and think of a Red Bull. When they comfortable profit margin. 12 oz. plastic bottles to their lineup to get the want to be a kid, they can look at the design and “This kids’ drinks channel, its one where par- product into schools in Texas. Students can cur- think of refrigerator art. ents will switch pretty easily based on whatever’s rently buy Sweet Leaf in about 30 percent of Honest Beverages used a different design on sale,” Goldman said. the state’s middle and high schools, Christopher strategy with their Honest Kids line of pouched But, he said, parents don’t have a lot of said, and will soon be available in schools in juice drinks. Founder and CEO Seth Goldman healthy options, and that has allowed his brand Florida and Colorado. said Honest stayed away from cartoon char- to “really take off” even when the Honest “It’s a win-win for us,” Christopher said. acters or Power Rangers on their packaging. Kids’ price tag can be twice that of products “It’s not like we’re selling it at cost, (and) it also Instead, they used bright colors and pictures of on the same shelf. does a great job of building the brand with the fruit to give their pouches a youthful – but age- That same price differential, Goldman said, young consumer.” less – personality. could keep Honest Kids from popping up in And it won’t be long before that young con- The design must be working. Goldman said school channels any time soon, but another tea sumer is a grown-up consumer with his or her the brand’s growth has been surprising, which brand has taken the rush of sodas leaving school own disposable income. could have something to do with its appeal to vending machines as its cue to enroll for class.

24 BEVERAGE SPECTRUM :: APRIL 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. t’s an unusual equation, and the variables include commodities speculators, the weather, international trade, and congress, but only one PUMPING constant: corn. Millers derive high fructose corn syrup, the number two ingredient for most soft drinks, and ethanol, the number two ingredient for gasoline, from the same yellow kernels. The cost GAS. of those kernels jumped in the last few months after congressional efforts for energy inde- pendence collided with the fallout from a volatile stock market. Beverage manufacturers have seen those costs AND SOFT passed on to them. Food Business News reported in early April that HFCS cost an average of 18.65 cents per pound, up from an average of 15.7 cents at the same time last year. That’s a 19 percent increase that’s causing fi nancial DRINK pain for beverage companies. And that pain will likely travel down the supply chain into the cooler case. Brian Weber, Vice President of DLR As- sociates Inc., the makers of Potencia Energy PRICES. Drink, said he found out about the price hike when his company mixed its last batch, but America’s insatiable appetite for gasoline they got lucky. His supplier had a stock of HFCS bought last may push up the price of soft drinks in gas year at the lower price, Weber said, allowing stations’ attached minimarts. And him to dodge any price hikes until at least the next production run. By then, he said, everywhere else, for that matter. DLR may have another plan in place to deal with HFCS prices. BY: MATT CASEY Bigger companies likely won’t be as nimble. Coca-Cola Bottling Co. Consolidated, one of Coke’s largest regional bottlers, reported a 14 percent drop in profi ts in 2007 compared to 2006, partly due to rising sweetener costs. Ana- lysts at the investment bank Morgan Stanley recently cited rising commodity costs as one reason they believed stock in PepsiCo Inc., had become a riskier investment. They also offered insight on how Pepsi could offset the higher cost of HFCS: either increase productivity or raise prices – as much as three percent in 2008, according to analyst Bill Pecoriello. PepsiCo representatives declined to comment for this article, but their corn-related troubles and those of other beverage companies can be

26 BEVERAGE SPECTRUM :: APRIL 08 traced not back to the fi eld, but back to the oil much so that companies have shelved plans for Corn isn’t the only commodity barrel. as many as 50 planned ethanol plants. pushing up the prices on products for Congress mandated gasoline companies to Birger reported that the price of corn has groceries and convenience stores. blend 9 billion gallons of ethanol with regular jumped 60 percent since the third quarter of • MILK: The wholesale cost of milk peaked gasoline in 2008 – up sharply from the previous 2007, while the price of ethanol has only risen in July at slightly more than $21 per 100 5.5 billion gallons. The corn-based substitute 30 percent. That squeezes companies like Vera- lbs. before fi nishing the year just south for oil-based fuel appeals to politicians because sum Energy Corporation, Birger said. Verasum’s of $21. That’s more than double the it is renewable – taking 97 percent of its matter profi ts fell from 37 percent to 12 percent in the fi ve-year low of $9 farmers sold the white from the air – and reduces reliance on oil from third quarter of 2007 at the same time that corn stuff for in March of 2003. Consum- the confl ict-ridden Middle East. costs rose from $2.05 per bushel to $3.32 per ers can thank the price of corn feed for According to Nathan Fields, director of bushel. Birger predicts the economics of Ethanol contributing to that bullish run. research and business development for the will change, with market forces favoring large- National Corn Growers Association, that scale producers like ADM. • OIL: Consumer’s have an up close view high-level mandate has attracted investors who But even if the ethanol market cooled, Uni- of the rising cost of oil, but that pain fl ed the troubled waters on Wall Street. Now versity of Illinois professor of Agricultural Eco- at the pump stretches down the supply dabbling in commodities futures, Fields said nomics Darrel Good said international trade line of pretty much any product on any those investors are exacerbating the natural will help keep the price of corn high. China has shelf in any store. It all has to get there swings in corn prices. reduced its corn exports, Good said, draining somehow, and that somehow is usually a the pool of internationally available corn and big truck with a big gas tank. Oil nudges leading more international buyers to get their prices yet higher, as most plastic packag- corn from the U.S. ing is petroleum based, and many stores Good said America’s economic climate adds a use electricity from oil-fi red power plants fi nancial bonus to overseas U.S. corn buyers. to keep products cold, or warm, as “Importers have not felt the full brunt of the case may be. the price increase because of the weak dollar,” • HOPS: Consumers can expect to pay as Good said. much as $1 more for a six pack of craft In theory, increasing the cost of a bushel of beer in the near future, and they may see corn should increase the price of all corn de- some of their favorite smaller brewers rivatives including high fructose corn syrup, but go out of business. A global shortage of Craig Ruffolo, a paid consultant for the corn in- hops, exacerbated by American farmers dustry, suggested that may not be the case. trimming their hops crop (in favor of HFCS buyers meet with their supplier once a corn) has driven the price of beer’s bitter year – typically between October and December and aromatic ingredient skyward. – to determine the price of the sweetener, Ruffo- • WATER: It doesn’t take an economist to lo said. During that period last year, corn prices explain water’s importance, and the price generally hovered below $4 per bushel, though of the fl ow out of the faucet is on its the price spiked in early December. way up. One Massachusetts community Ruffolo added that other factors could play in recently increased the price of their water Fields said market forces alone would have to negotiated prices. Beverage companies turned from $1.96-3.60 per thousand gallons to pushed the price of a bushel of corn beyond the to HFCS because it was cheaper than sugar, $2.60 to $5 per thousand gallons – and typical $2-4 range, but those newly-arrived in- Ruffolo said. Recent media coverage of the that’s nothing compared to the drought- vestors forced the cost of corn north of $6.00 sweetener linked it to America’s struggle with stricken southeast. Florida, Alabama per bushel on the Chicago Board of Trade. childhood obesity, and some beverage compa- and Georgia are fi ghting over the water Ironically, that extra push has led to the slow- nies are switching to cane sugar — a more ex- in one reservoir. States in the southwest down of the industry that attracted investors pensive commodity. are in a battle over water supplies as to corn in the fi rst place. Jon Birger wrote for The laws of supply and demand suggest that well, and economics teaches that scarcity CNN Money in February that the high price of a drop in demand could negate a price increase. breeds higher prices. corn had cut the profi t margins on ethanol, so Maybe it will, but it hasn’t yet.

APRIL 08 :: BEVERAGE SPECTRUM 27 don’t have to go. Truck drivers, they don’t like to pull over.” To date, the growth of the energy shot has largely centered around 5-Hour Energy, which in one year grew from $13 million to $59 million in convenience stores and from $6 million to $26 million in grocery, drug and mass channels, according to Nielsen and IRI numbers. LITTLE While several other big players and a gaggle of indepen- dents are moving to compete with 5-Hour, it appears that COMPETITION Living Essentials’ product is the one to beat. “I probably order about 10 boxes a week,” said Bruce Cullen, who owns a 7-Eleven in ENERGY SHOTS AIM Springfi eld, Ore. “5-Hour seems to be like the Red Bull of the category. It just keeps plugging FOR BIG PROFITS away. A lot of items, if they’re fads, they’re just boom-then-splat. This has been very consistent.” For the retailer, the energy shot advantage is BY JEFFREY KLINEMAN threefold: their small size – about about the size of a white out bottle -- allows them to be placed The just about anywhere in the store, although they reasons sell best next to the register. Additionally, they for Fine’s can be consumed warm, saving valuable cooler o p t i m i s m space, and their standard price, about $2.99, are twofold: like gives them a signifi cant ring. espresso to coffee drink- Living Essentials, whose fi rst product was the At a Chaser brand of hangover remedies, launched time when most energy ers, energy shots appeal to a 5-Hour Energy in late 2004. After bombarding drink brands are publicizing new, bigger slightly different group of consumers than the television cablesphere with advertisements cans, it turns out that the biggest profi ts are core energy drink users, but they also have telling consumers to “avoid the crash” in the past actually coming from the smallest packages. signifi cant overlap in that group. In their year, Living Essentials has managed to carve out Energy “shots,” concentrated two-ounce ability to satisfy consumers’ need for en- sales numbers that would easily put it in top 10 versions featuring the same basic energy mix of ergy, the shots offer retailers a product that energy drinks nationwide. caffeine and b-vitamins as their larger brethren, complements the energy category, but they “The kids are buying energy drinks,” says are riding a wave of runaway sales multiples that don’t fi ght for cooler space with the traditional Carl Sperber, the marketing director for Liv- echo the frenzied growth of fi rst-generation en- 16 oz. and 8 oz. drinks. For some consumers, ing Essentials, which makes Five-Hour energy. ergy drinks like Red Bull and Monster. they are an add-on product to go with their en- “We’ve found an audience among working Last year, just three years after the introduc- ergy drink in a kind of shot-and-chaser strategy. adults. If you’re a 35-year-old man, do you really tion of 5-Hour Energy, Nitro2Go, ZipFizz and But for others, the shots are their own target. identify with a product called Monster or Freek? their ilk, the category grew to nearly $100 mil- Retailers say energy shots are selling to truck It’s found appeal with those who just want lion. With new brands and new distribution av- drivers and yuppies alike, but that the sales de- energy. They want to slam something down in enues coming on-line, however, the category is mographics seem to include customers who a couple of seconds and feel great for the rest expected to reach a new level by the end of the need energy but might not have drunk energy of the day.” year. According to at least one beverage execu- drinks in the past. With little or no sugar in the What’s more, the product still is only sold tive, by the end of the next year, energy shots product, energy shots are advertised as helping in about 40 percent of the convenience chan- could be a $500 million business. consumers avoid the “crash” associated with sug- nel. With only modest increases in distribu- “We feel like this is the next big category ar-laden energy drinks. Small enough to make it tion and pull-through, by the end of the year, to explode,” says Mike Fine, who oversees the through a TSA airport security check, consum- 5-Hour Energy could be close to $250 million fast-growing NOS energy brand for the Coca- able in one gulp, and low in calories while still in sales. Not bad for a product that won’t yet be Cola Co.’s Fuze subsidiary. Using its newfound high in stimulants, the reduced size of the en- four years old. ability to get into the Coke distribution network, ergy shot also has one main advantage that the “The big obstacle is continued distribution,” NOS is planning to jump into the category in previous generation does not: the reduced blad- says Sperber. Despite ubiquity in Walgreen’s, a big way in May. By leveraging Coke’s adver- der impact of the signifi cantly smaller volume of 7-Eleven, and other major chains, he says, “We’re tising and marketing resources, Fine plans to liquid -- as some call it, the “pee factor.” still knocking on doors. The big box stores are attempt to emulate the rapid growth of 5-Hour, “The bathroom factor is huge,” says Danny starting to beckon, and we still don’t have Coke, which increased its sales by more than 400 Lim, who oversees energy purchases for D&J Pepsi or Red Bull ubiquity yet.” percent last year. Market & Deli, in Poulsbo, Wash. “You just

28 BEVERAGE SPECTRUM :: APRIL 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 But they’re gearing up for it. Last year Liv- is all about, we thought we could take the same for vitamins and supplements, says of energy ing Essentials purchased a 145,000 square-foot brand platform and extend it into this new cat- shots. Starting with the single 5-Hour Energy warehouse in Wabash, Indiana and taking its egory.” product, she says, “we went from a bottle, to a staff up from four employees to 30. Still, there are some skeptics who believe that shelf, to a shelf and a half, and our individual “I think if bigger and more legitimate com- the strong energy drink players won’t be able to stores are going further depending on what their panies get in, things will really grow,” Sperber make the transition into shots. customers want.” says. “Having more legitimate players in it al- “If it was about taste, rather than the benefi t Marketers are betting they’re going to want ways helps the category. But we have a pretty big the consumer gets from the product, that might quite a bit more. Last November, at the Nation- start, and I don’t know if there’s anything that let energy drink makers in,” said one conve- al Association of Convenience Stores Show, the Coke, Pepsi or Monster will bring to the table nience store executive. “It’s going to take some rising tide of energy shots was easily evident, as that will work better than ours.” innovative products or a value-added proposi- brands from established players like Jolt Cola tion to take the share away.” and distributor-produced rollouts like Blutoni- FIRING A POWER SHOT um alike jostled for attention. There is the sense As Sperber describes, that lack of competition NO ATTENTION that, just as with energy drinks before them, from big-name energy drinks has helped the So, aside from 5-Hour’s television ads – it spent there are going to be a lot of similar products Michigan-based brand take early ownership nearly $10 million in 2006, according to A.C. on the market in the near future. Already, in of the category. But some well-known players, Nielsen Monitor Plus -- why haven’t energy shots fact, 5-Hour executives are complaining about particularly NOS, are about to jump into the picked up much media attention yet? Part of the me-too products making claims of six hours of market. reason is that the shots are tracked as vitamin energy and beyond, fi ling suit against Nitro2Go “We’re the hot brand at the hot time,” said supplements, rather than selling in the heavily- in Michigan. One of the fi rst sports tie-ins is in Fine. “We’re putting it on everybody’s radar.” advertised beverage space. But the introduction place, as well – Baseball Hall-of-Famer Johnny NOS, best known for a set of bottles shaped of energy shots has turned vitamin, health and Bench is on board with Turbo Power Energy. like a popular brand of automotive nitrous ox- beauty into a major growth sector for C-Stores With a NOS launch that will include a ma- ide booster tanks, has taken off in the past year and other retail channels – according to one C- jor advertising push of its own and 5-Hour go- through a combination of innovative package Store executive, in fact, it’s a boom that hasn’t ing strong, there is the possibility that one or design and clever channel marketing, climbing been seen since the pre-regulatory Ephedrine two products may be enough to crowd all other to nearly $160 million in sales. tablet sales bonanza of the 1990s. comers out of the category. But with energy In early May, Fine plans to introduce the 7-Eleven has increased its space allocation for the top function in the beverage arena, energy NOS Power Shot throughout the Coke system. liquid vitamin supplements – the category en- shots are giving off the scent of cash, and there Fine says that with Coke’s distribution power, ergy shots dominate – for 12 straight quarters. are a lot of beverage and supplement manufac- the growing popularity of the energy shot, and Energy shots now represent 25 percent of the turers who believe there’s a spot in the lineup the momentum of the NOS brand, Power Shot sales in the health and beauty category at Circle- for them, too. will quickly turn into a top SKU. K – even though the category includes every- “We’re on a pace that if we had no growth, “Think about how excited we were when we thing from marital aids to Advil. we’d have $1.5 million in sales this year – and fi rst saw this nugget of a category nine months “I would classify it as outstanding growth,” we’re predicting $2.5 million,” says Jim Folsom, ago,” Fine says. “Based on what the NOS brand Sandra Colvin, the 7-Eleven category manager whose company started making Blutonium less than a year ago. “I think Red Bull and Monster RIDING HIGH – As this chart indicates, it’s been a big year for 5-Hour Energy. built a category across the whole country and $6,000,000 contributed to a shift in consumption habits. This is maybe the next generation down from what they’ve done.” 5-Hour Lemon Lime $5,000,000 According to marketers, energy drinks and 5-Hour Berry the country’s massive coffee culture have pushed the notion of energy into the mainstream. But $4,000,000 energy shots represent a new evolution, they say, one that distills the energy boost of caffeine into one of its most direct forms yet. $3,000,000 “You’re selling energy, but they’re the antith- esis of drinks because there’s this notion that Convenience Store Sales Dollars [energy drinks] don’t sustain energy, while the $2,000,000 shots do,” says Wet Planet Beverages’ C.J. Rapp, whose Jolt Soda makes him as knowledgeable about the energy category as anyone. “They’re $1,000,000 low calorie, so it attracts a female audience, and the less liquid the better, for some.”

0 “At the end of the day, you’re selling en- 4 Weeks Ending 4 Weeks Ending 4 Weeks Ending 4 Weeks Ending 4 Weeks Ending 4 Weeks Ending 4 Weeks Ending 4/21/07 6/16/07 8/11/07 10/6/07 12/1/07 1/26/08 3/22/08 ergy,” Rapp says. “But you’re selling against SOURCE: AC NIELSEN, CONV. STORE TRACK energy drinks.”

30 BEVERAGE SPECTRUM :: APRIL 08

ENERGY

SHOTS: as a half cup of decaffeinated coffee, Decaf 5-Hour Energy is designed for people who avoid caffeine, but still need an extra boost to help them BRAND function during the day.

Impulse One – Impulse One is a New Age Beverage Company with established NEWS and innovative brands like Head Shot Energy Shot, and Red Devil Energy Drink. Headshot is an incredibly smooth-tasting energy shot that provides hours of energy. Headshot is available in Original, Blueberry Slam and Apple Slam.

Zipfi zz – Zipfi zz Bond Laboratories – FUSION 6+HR Energy Shot is a Liquid Shot is now avail- 2 oz. that is available nationwide in convenience stores, able in four fl avors: Orange, Mango, Fruit on college campuses and among the action sports Punch and Passion. This liquid formula world. The shot is made with Fusion’s “Phytomic En- delivers 41,667% B-12 for enhanced energy Blend,” which includes B-vitamins for energy, ergy and mental alertness. It contains no amino acids to trigger focus and mood enhancement, sugar and “just enough caffeine and green and enzymes that help the body feel energy quicker tea extract to get the ball rolling.” Liquid and sustain increased energy for a long period of time. Shot is isotonic and is conveniently packaged in FUSION was launched from BOND Laboratories— a 4 oz. bottle. a premier marketer and manufacturer of nationally branded nutritional products. Shot Me Up – Texas-based Shot Me Up has two energy shot lines: Chi Shot, the World’s fi rst caffeine- Labrada Nutrition – Labrada’s Charge! SuperShot free White Tea energy shot, comes in three fl avors: comes in a convenient, 2 oz. that is intended to either Pomegranate, Mandarin and Mango. Zen Shots are be opened and consumed or added to bottled water to the World’s fi rst and only 2 oz. Green Tea Energy “Charge! your water”--- instantly making a delicious Shot. It is also caffeine-free, with a powerhouse of non-carbonated fruit fl avored drink. Charge! is for- synergistic ingredients that not only provide energy tifi ed with 2450 mg of fruit based anti-oxidants and but optimal health, including green tea extract, natu- B-vitamins. ral agave nectar, Aloe Barbadensis Leaf Juice, panax ginseng, and essential B and C vitamins. Zen Shots NRG – NRG SHOT contains about as much caffeine come in fi ve fl avors: Original, Orange, Lemon, Pep- as a cup of coffee for energy revival, while it also con- permint and Berry. tains vitamins like C, B6, B12, Niacin, and Folic Acid for hours of crisp clean energy without the crash of Living Essentials – Living Essentials, the maker of other energy drinks. NRG SHOT comes in Mandarin 5-Hour Energy Berry and Lemon-Lime fl avored en- Orange, Red Berry, Pink Lemonade, and, coming this ergy shots, has added an Orange fl avor to its lineup. summer, Blue Raspberry. Previously available exclusively at Walgreens, Orange is now available to the convenience store channel. Or- Liquid Lightning – New Jersey based Liquid Lightning ange is available in 12-packs and as part of a new multi- has added Liquid Lightning Boltz to their portfolio of fl avor wire rack display that includes all three 5-Hour products. A compact 2 oz. energy shot supplement, it Energy fl avors. Living Essentials has also released De- is the only one on the market that is made with Hoo- caf 5-Hour Energy. Containing only as much caffeine dia Extract. Hoodia has been known for years as a

32 BEVERAGE SPECTRUM :: APRIL 08 nutritious food that is extremely effective at reducing OC Energy – OC Energy ’s “Insane” energy shot the appetite. Boltz is sugar free and has a berry fl avor. was designed for consumers that want a choice. Its One shot has the equivalent power of two cans of an iconic bottle design with eye-popping graphics set it energy drink. Liquid Lightning has plans for two new apart from the run-of-the mill energy shot. Offering fl avors and a twin pack arriving this Spring. something more than just energy, Insane has undergone a fl avor transformation. Its great new taste and Fuze – NOS Energy Drink will launch NOS Power- new label verbiage let customers know exactly what to Shot in May of this year. The 2 oz. product is aimed expect; 6+ hours of energy, no crash and hangover re- at those looking for very quick, high-impact en- lief when you need it. Consumers enjoy Insanes’s wide ergy. NOS PowerShot contains the NOS Maximum mouth that easily allows it to be shot not sipped. This Boost Formula, which serves the same level of Caf- product is suggested as both a shot and a drink mixer. feine, Taurine, L-Carnitine, Inositol and Panax Gin- seng found in an 8 oz. serving of regular NOS Energy Blutonium – Blutonium is a cool looking product in a Drink into a 2 oz. package. Plus, NOS PowerShot category fi lled with look-alikes. It sells cold on a pro- contains a special formulation of elevated levels of prietary suction rack for easy placement in any store. Niacin, Vitamin B6 and B12 than those found in regu- Blutonium Unconventional Energy is a great-tasting lar NOS Energy Drink. energy shot that surprises customers who’ve thought you have to wince a time or two to swallow an en- FIXX – FIXX Extreme Shots claim a proprietary ergy shot. Blutonium Peaceful Power is a caffeinated, Nano-Particulate Delivery system (NDS) and bioacti- energy-charged shot with a dose of habenero to heat vated ingredients to produce a great tasting shot with things up. an extremely powerful and effective blast of energy that’s designed to last all day. Wet Planet – From the makers of America’s original energy drink comes the Jolt Endurance Shot. True

34 BEVERAGE SPECTRUM :: APRIL 08 to the Jolt name, the Jolt Endurance Shot contains oz. fortifi ed, sugar free energy shot. One Fuel Cell has more “good stuff” as compared to competing brands. two and a half times the energy of an 8 oz. can of the The Jolt Endurance Shot contains a heaping dose of leading carbonated brand, with 0 calories and 0 carbo- amino acids, electrolytes, vitamins and enzymes, plus hydrates, and no sugar crash. just the right amount caffeine. And unlike most other energy shots, Jolt Endurance shots are sugar-free, so Peptime – Peptime Energy Shots are in the ware- there’s no crash after just a few hours. house and being distributed now. These shots are portable, do not need refrigeration, and come in three 2 Drinks that Work – Founded by ex-Odwalla employee oz. fl avors, Tropical Orange, Cosmo Berry and Island Brian Lovejoy, Drinks that Work is the maker of UP- Lemon Lime. SHOT, a 2.5 oz. energy shot that claims to contain the most boost of any product on the market, with none of On Go – On Go started in April 2007 with local dis- the excess liquid. In Christmas, 2007, Upshot Energy tribution of its Lemon Lime fl avor in the Midwest Re- was included in the gift bag for both the 700-strong gion. In 2008, the company introduced Berry Blast and annual Los Angeles Police Department Dinner and began national distribution. Positioned as the “Better also the Christmas Party for the Marines at Camp Pen- for You” energy shot; consumers perceive On Go to be delton, Calif. Upshot was also included in the 2008 “safer” or “less harsh” than the existing brands which Oscar gift bag presented by People Magazine to those have a “truck driver look.” Its graphics appeal to hesi- Oscar attendees staying at the Four Seaons Hotel. So tant fi rst-time energy shot buyers and many women. far, Upshot boasts four fl avors: Kola, Pomegranate, Fruit and Mocha. M-150 – The M-150 Girls will be dropping the fl ag on The Long Beach Grand Prix on April 20 in California. Bayshore Specialties Ltd. – Bayshore Specialties Ltd. They will be cheering on race driver Cindi Lux, who’ll is the manufacturer of Fuel Cell, an exciting new 2 be racing to the winner’s circle in the Speed World

APRIL 08 :: BEVERAGE SPECTRUM 35 Challenge GT Series race. Off the track, Cindi will be visiting several local pubs during race week to meet her fans and support M-150 retailers with additional public appearances. The high energy M-150 Girls will be along to provide patrons with smiles and samples of M-150 non-carbonated energy drink. Cindi’s ﬂ avor for hard driving and competitive energy make her the perfect driver for M-150.

Bevolution Ammo – Bevolution AMMO has launched their new product image and expanded marketing that has moved beyond the extreme sport scene of paintball in the United States and now includes convenience stores, bars and an international presence in Europe and South America. Bevolution AMMO was origi- nally developed for the Military and is perfected for your consumer. It is a great tasting “liquid power shot” of caffeine for a burst of energy. If the 171 mg of caffeine is too much, the packaging includes a meter to measure how much your consumer shoots or mixes into their beverage of choice

Zantrex – Zantrex has launched its Ultra-Potent Insta-Shot in two ﬂ avors: Orange Octane and Flash Berry. The high-energy boost contains 8 calories, is fast-acting, long lasting and has no crash. It is available at Wal-Mart, GNC, Walgreen’s, Rite Aid, and other retailers nationwide.

NVE Pharmaceuticals – NVE manufactures and co packs unique custom beverages for nationally known private label brands. NVE specializes in 20 oz vitamin fortifi ed waters, 8.4 oz carbonated energy drinks as well as 2 oz and 3 oz vitamin and energy shots. NVE stocks several size bottles and blows custom size and shape bottles to the customer’s specifi cations. NVE’s nationally-advertised 6 Hour Power Extreme Energy Shot comes in 5 ﬂ avors; Lemon Lime, Very Berry, Fruit Punch, Grape and Orange. The newest and hottest addition to the NVE line of energy shots is Java Shot, a premium coffee shot in delicious Mojo Mocha, Catapult Cappuccino and Hopped Hazelnut.

BDI Marketing – BDI Marketing’s Mini Thin Rush was the exclusive energy drink for Winter Music Con- ference 2008. As such, the product was exposed to more than 45,000 contemporary music professionals and enthusiasts that attend the 300 plus events held over the course of the 5 day festival. Exposure for Mini Thin Rush included extensive sampling and signage throughout the conference, exhibition space, advertising in WMC publications, as well as logo placement on delegate bags, the WMC website, weekly email blasts and more. Mini Thin Rush Liquid is a berry-ﬂ avored sugar-free energy drink shot that contains less than one gram of carbohydrates per serving.

36 BEVERAGE SPECTRUM :: APRIL 08 ZANTREX®-3 Insta-Shot™

Item Description . . . . .Zantrex®- 3 Ultra Potent Insta-Shot™ Product UPC ...... 681168417017

Whse PK ...... 12 Vendor PK ...... 216 Size ...... 2.0 oz. each Count ...... 1

Specs. KT 04 34MP216. . 12 pk. – 6.125” L x 4.625” W x 4.25” H 1.26 lbs. Master 18.75” L x 14.25” W x 9.13” H 36 lbs. Cost/Ret of Each: (Recommendations Only) Retail Single ...... $3.50 2 Pack ...... $6.00 6 Pack ...... $16.50

First Available Ship Date - 1/15/2008 Supplier Name ...... Basic Research®

Why Zantrex®-3 Insta-Shot™?

1) Almost One Billion Zantrex-3 capsules sold (that’s Billion with a B). 2) Approximately $120 million spent in advertising the brand. 3) The number of impressions numbers in the Trillions. 4) Zantrex-3 OWNS the 18-25 energy market. 5) An established leader in the category. Top 3 SKU in Wal-Mart & FDMX channels for the last 4 years. 6) $10-15 million in media planned for the ﬁ rst quarter of 2008. 7) Tastes better… Don’t believe it? Try choking down some 5-hour Energy. 8) Compared to 5-hour Energy, Zantrex-3 has double the B12 for better and more immediate energy boost. 9) Zantrex-3 contains a proprietary combination of xanthine stimulants. 10) Great impulse item that can be placed anywhere in the store, from the front end to clip strips.

Basic Research® Top 25 Brands — IRI Weekly Flash Total FDM 12 Weeks Ending 11/4/2007

Category-Weight Control/Energy Candy Tablets * Hydroxycut rolls up all SKU’s

Dollar Sales Unit Sales Total $77,399,496 3,089,078 ALLI $29,481,152 500,638 HYDROXYCUT* $6,321,946 247,818

ZANTREX®- 3 $2,634,547 105,404 RELACORE® $2,606,149 101,217 SLIMQUICK $2,321,324 87,737 METABOLIFE $1,921,435 94,204 MEGA T $1,714,482 243,363 SMARTBURN $1,388,039 50,174 AKÄVAR®-20/50 $1,337,159 34,896 Sizes Available: Single Serve, 12 pk, 6 pk and 2 pk Order Today! Call: 1-800-403-3817 ©2008 All Rights Reserved BR11894

InstaShot_sales_ad_bev_spectrum_br11894.indd 1 4/14/08 1:37:46 PM SPARKLING FIZZLING OUT? JUICES NOT YET, SAY JUICE MARKETERS.

million and counting. That’s verts behind the bar, at the sandwich shop and in lights seem to shine elsewhere, toward function- where IRI put the total count for any number of high-end alternative channels. al waters and teas. the sparkling juice category, a number that has Still, it’s hard to tell how much traction a Nevertheless, in the right product mix, spar- to be discouraging for marketers in the once-hot traditional retailer can squeeze from sparkling klers are the way to go: a natural food chain in set of alternative sodas, not counting Wal-Mart juices. The category has felt lifeless since the Seattle, PCC, cut all High-Fructose Corn Syr- or convenience stores -- not exactly the intended purchase of its top brand, Izze, by PepsiCo in up-enhanced products – opening the door for channels to begin with. late 2006. As product quality improves – Fizzy juice-based altsodas. Cocktail culture shows no Or is it discouraging? Beyond those numbers Lizzy and Orangina just rebranded, for exam- sign of abating. And the entrepreneurial vacuum sit a variety of uncounted distribution channels ple, while Apple & Eve has launched a product left by the Izze purchase should keep the market for the products, which continue to garner con- aimed directly at the schools market – the bright bubbly before it withers on the vine.

THE SWITCH fl avors, Gulf Coast Tangerine and Red Hill Pomegran- In 2007, The Switch rebranded with vibrant new graph- ate. Fizzy Lizzy boasts an average of 65 percent juice. ics, juicy reformulations, and two new fl avors: Kiwi Berry Fizzy Lizzy comes in a total of eight fl avors (the others and Very Berry. The company signed with 20 new dis- are Costa Rican Pineapple, Mount Fuji Apple, Lone tributors and 1,500 new schools. In December the Switch Star Grapefruit, Yakima Valley Grape, Pacifi c Raspberry unveiled it’s brand new web site, showcasing it’s bold Lemon, and Northern Lights Cranberry) and is avail- consumer promise of “100% OF WHAT YOU WANT” able in select supermarkets, gourmet food stores, and and “0% OF WHAT YOU DON’T”, and inviting the cafés across the country. The products entered several ever growing number of passionate Switch fans to have new regional markets recently, including Fresh Market, a little fun with the brand. There are lots of great things Whole Foods Rocky Mountain Region, UNFI Rocky to win, including hats, t-shirts, itunes and iphones. One Mountain Region, Stop & Shop Supermarkets, Giant on-line contest asks Switch fans to answer one of their Supermarkets, Bradley Distributing, Palo Alto Egg Dis- most frequently asked questions “Why is the ‘The’ upside tributing, Performance Beverage Distributors and Crown down”?, and the responses pouring in have ranged from Pacifi c Specialty Foods. weird to outright hilarious. IZZE In March, Izze Beverage Company added Sparkling Peach SANPELLEGRINO to its line of sparkling juice fl avors. It is an all-natural SanPellegrino has relaunched its sparkling fruit beverages blend of pure fruit juice and sparkling water with nothing Aranciata and Limonata. They were reinvented, reformu- artifi cial. It is best served chilled. Because of its simple, lated and repackaged to present consumers a refreshingly true-to-the-fruit fl avor, Izze Sparkling Peach comple- all-natural beverage option. The product now contains ments a variety of foods and, with its stylish packaging, is all-natural ingredients and a refreshed brand image. also great for entertaining. With the introduction of Izze Sparkling Peach, Izze also debuted new graphics on its 12 APPLE & EVE oz. four-pack carrier. The packaging is brighter for greater Apple & Eve recently announced the launch of Fizz Ed impact on shelf. – an all-natural fruit juice and sparkling water beverage – offering an alternative to traditional sodas. Available SKYLARHALEY in four great tasting varieties – Red Raspberry, Orange SkylarHaley has released a new fl avor in its award win- Mango, Pomegranate Cherry and Green Apple – Fizz Ed ning line of Essn beverages: sparkling mango and passion contains none of the high fructose corn syrup or artifi cial fruit juice. A 100 percent juice drink, Essn is packed with ingredients found in carbonated soft drinks. Each single- natural fl avor and contains no preservatives, additives, serving 8-ounce can contains a refreshing blend of 70% or artifi cial sweeteners. Packaged in 8.4 oz. bullet cans, pure fruit juice and 30% sparkling water. Essn juices are also offered in fi ve other distinctive varieties: fuji apple, meyer lemon, blood orange & cran- Fizzy Lizzy berry, minneola tangerine, and sparkling pomegranate Fizzy Lizzy, a line of all-natural beverages consisting of and montmorency cherry. These products are available fruit juice and sparkling water with no added sugar or at select Safeway, Albertson’s, and Jamba Juice stores corn syrup, recently re-launched its products with new and Kroger’s Southwest. packaging, new fl avor names, a new website and two new

38 BEVERAGE SPECTRUM :: APRIL 08 BEVNET.COM AND ZENITH INTERNATIONAL PRESENT

BEVERAGE ENTREPRENEUR FORUM

A day’s conference, workshops, and networking designed for owners and managers of emerging beverage concepts as well as investors, suppliers and customers looking for the next big thing.

WHEN: June 19, 2008 WHERE: Le Parker Meridien Hotel New York City

MORE INFO: www.bevnet.com/innobev

SPONSORED BY:

innobev.indd 60 4/4/08 6:37:54 PM GERRY’S INSIGHTS CROSS-POLLANATED e’ve all seen the slow drip of companies Pollan started by tracing the notion of “sci- away from the Food Marketing Institute entifi c eating” in America back to the mid-19th Show in recent years, and it’s become easy to Century and showed how it taps into a Puritan view the two emergent replacement gatherings heritage that has left us uncomfortable enjoy- of the food and beverage industry as polar oppo- ing sensual activities, including eating. The past sites. In one corner, you have the place to be seen century and a half has seen a succession of foods for good-for-you foods and beverages, Natural and ingredients demonized, from the protein Products Expo West – “good for you, good for that Kellogg sought to drive out of the American business, good for everyone,” as its slogan had it colon with his newfangled breakfast cereals, to this year. In the other corner is the show for bad- the red meat against which Sen. George McGov- for-you items (well, Pepsi, for one, prefers to say ern inveighed, to the current ostracism of they’re “fun for you”), the National Association Omega-6 fatty acids as the enemy of “blessed” of Convenience Stores show. Expo West prod- Omega-3 fatty acids. Good nutrients need to ucts are all-natural, sometimes organic and gen- be promoted and evil nutrients must be purged erally not tainted by taboo ingredients, like high- from the food supply. fructose corn syrup, that render them unworthy The resulting emphasis on “nutritionism” has of retailers like Whole Foods. By contrast, NACS diminished the role of food to a purely biologi- products generally taste better to the “average cal means of sustaining life rather than a cultural American” and most likely sell in numbers that means of attaining pleasure, community, family, are an order of magnitude greater. identity or ritual. That itself is a lot to lose, as Given these Manichean opposites, it was fasci- proponents of the Slow Food movement have nating to attend the keynote speech by Michael been tireless in explaining. Pollan at this year’s Expo West, in Anaheim, Ca- But there’s another implication. Foods reduced Defense of Food, aims to swap the complexity lif., in March. Pollan, of course, is the best-selling to the role of “carriers of nutrients” essentially be- of nutritionism for the mantra: “Eat food, not author of such infl uential books as The Botany come “the sum of their nutrient parts,” Pollan too much, mostly plants.” He brought a similar of Desire and The Omnivore’s Dilemma. With argued. “Since nutrients are invisible, therefore message to his Expo West audience. “Don’t buy his excoriation of the industrial food business, I need experts to tell me how to eat,” much as foods that make health claims,” he advised. “The Pollan has been regarded by many in the natural the priesthood mediates one’s relationship with healthiest food in the store is silent.” Delivered foods sector as a crucial ally. In many ways, he is. the deity. People today have “lost the ability to at the Produce Show, that message doubtless But as the natural foods business has scaled up, eat without help.” would be universally applauded. At Expo West and as industrial players have bought their way Pollan doesn’t think this emphasis on nutri- it was a clear rebuke to the marketing strategies in, Pollan has been hard at work warning con- tionism works very well: not only does it ruin the revealed on the show fl oor downstairs. Pollan still sumers to be skeptical about the claims aimed pleasure of eating but it’s often based on weak managed to draw an ovation from his audience. their way by natural foods purveyors. After read- science, since studying the effects of individual But it’s clear that those who like to revel in being Pollan’s description, in Omnivore, of how nutrients in isolation overlooks food’s identity as ing at the “good for you” end of the food and industrial producers defi ne “free range” (a strip of an extremely complex system. beverage spectrum have some hard thinking to grass separated from an industrial barn by a tiny Further, all the talk about nutrients gives an do about where their strategies are taking them door that the enclosed livestock almost never tra- enormous edge to those selling processed foods, and their customers. verse), my wife and I stopped paying a premium since they can rejigger foods to suit the latest for free-range chicken. fi ndings – or fads – disseminated by experts. To- Chalk up those activities, maybe, to unscru- day that’s refl ected in the endless references – in pulous food processors gaming the system. But store signage, product packaging and advertising Pollan’s critique poses a challenge to natural – to such nutrients du jour as antioxidants and food purveyors in a far more fundamental way, resveratrol. “Walk in the supermarket and you’re and that was the gist of his speech at Expo West. besieged by biochemistry,” Pollan observed. If in some ways it was accusatory, his mild tone Or – though Pollan didn’t say it directly and subtle sense of humor insured it was only – walk the aisles of Expo West, just a couple gently accusatory. But it had to be disquieting of fl oors below. Longtime beverage-watcher Gerry Kher- to many in the audience who are used to feel- So, are Expo West exhibitors still the good mouch is executive editor of Beverage Busi- ing pretty good about themselves and what they guys? To the extent that they foster nutrition- ness Insights, a twice-weekly e-newsletter do for a living. ism, maybe they’re not. Pollan’s new book, In covering the nonalcoholic beverage sector.

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prezza.monkey.indd 60 4/4/08 6:38:34 PM BRANDS IN TRANSITION

FIJI PLAYS A GREEN TUNE BY MATT CASEY

n the world of premium bottled waters, Newspapers, magazines and broadcast person- Fiji might as well be U2. Both imports hit alities have been questioning the rationality of American shores with a splash, and put in years paying a premium for water that’s been shipped of hard work earning fans before ascending half-way around the world when the same stuff to their fi eld’s top spot. Fiji entered in 1997, – or something very similar to it – ﬂ ows from and surpassed Evian as America’s number- every faucet in America at for pennies per gal- one luxury water in 2006. Now Fiji seems to lon. National Public Radio’s On Point with Tom defi ne the category. Ashbrook dedicated half an hour to the practi- But there’s an unfortunate side effect to being cality of bottled water in July. Marie Claire ran a on top: eventually, you fall. And with consum- story in September that concluded that bottled ers, environmentalists and politicians bristling at water is bad for the environment, and Time the environmental ramifi cations of bottling and published an article in August that agreed, add- shipping water from far-away places, Fiji could ing that “Worst of all, the migration to bottled be at risk to lose its audience. But instead of trot- water fosters a perception that tap water isn’t safe ting out the same old songs, the master of the or necessary. That’s dangerous at a time when premium bottled water category has rearranged aging public-water systems need investment, its set list to bolster its environmentally-friendly particularly as global warming increases the in- credentials and please a crowd that thinks of cidence of drought.” green as more than the color of money. Amid that atmosphere, you might expect the That crowd – those hip, young afﬂ uent trend- company that headlines the premium bottled setters –initially came to Fiji because of the water category to watch their sales sink and their water’s exotic source, attractive packaging and audience shrink, but that’s not the case. Fiji’s conspicuous placement at celebrity-fi lled events. volume has actually grown, according to Gerry The water earned a badge value that made Martin, vice president of marketing at Massa- it an “attainable luxury,” according to Clarence chusetts-based Polar Beverages Inc. Martin said Chia, Fiji’s brand manager. But that was be- Fiji’s sales numbers crescendoed by 22 percent in fore consumers started calculating their carbon 2007. He said the brand also increased its mar- footprints for fun. ket penetration, and continues to win market Where consumers go, politicians are sure to share from its competitors. follow – especially when they have an easy tar- “They just seem to be doing a lot of the right get like bottled water. Local governments have things,” Martin said. passed resolutions to no longer purchase the Currently, Chia said, those “right things” cen- product, and even levied a tax on it. The state of ter on improving the company’s already-positive Connecticut may end its bottled water contract environmental profi le. with Nestle in favor of installing more water But Fiji isn’t breaking any new ground by fountains in public buildings. At the national touting environmental responsibility; it has be- level, two Democratic representatives asked the come a popular theme in the beverage industry. Government Accountability Offi ce to take a Coca-Cola pledged in February to recycle 100 hard look at the growth of the bottled industry, percent of the aluminum used in their packag- which is booming while U,S, citizens enjoy what ing. While that pledge didn’t include a time line, the representatives called “one of the safest sup- the soft-drink giant backed it up with a trailer at plies of tap water in the world.” the Daytona 500 that educated NASCAR fans But, of course, none of that would have hap- about the benefi ts of recycling. Within Fiji’s own pened if the press didn’t start the drumbeat fi rst. category, Icelandic Glacial garnered the 2007

42 BEVERAGE SPECTRUM :: APRIL 08 Opening day is here and Power Trip Best of BevNET award for the “We haven’t Energy Drinks bottled water category and a been as vocal distribution deal from Anheus- in the past about everything we are a sure hit! er-Busch partly on the strength of do,” Chia said. its carbon-neutral certification. That relatively-quiet period is · PT opens Alabama, over 500 retailers With everyone playing the same over, Chia said. He said Fiji wants song, Fiji decided to play it better. to champion the cause of environ- · PT opens 4 new states, on pace for 31 “As of January fist 2008, we are mental responsibility for all com- states this year officially carbon negative,” Chia panies across all industries – and said. In effect, for every five bottles Thomas Mooney, Fiji’s senior vice · PT Vitamin energy drink has more vitamins of water Fiji sells, the company president of sustainable growth, than any other leading energy drink takes out of the atmosphere the trumpeted the company’s efforts · PT completes 2008 Marketing Business plans, carbon emissions required to man- last November on the popular blog distributors impressed ufacture, fill and ship six bottles. site, The Huffington Post. Mooney But, Chia said, the company’s ef- wrote that consumers “expect us · PT specializes in flavored energy drinks that forts extend beyond carbon offsets. to be environmentally sustainable, taste great, Mango becomes a top seller The water company is preserving and that is what we intend to do.” 51,000 acres of the Fijian rainfor- While Mooney’s article might · Check out our all new website: est, improving vital infrastructure have been the equivalent of scream- www.powertripbev.com for the islands residents and aims ing to an arena, the company’s to use technological advancements every-day efforts to get its mes- to reduce the plastic in their bottles sage out have been far more low- PTB, the difference is in our by 20 percent over the next three key. Each bottle of Fiji now car- unique products and our years. Fiji is even exploring the use ries a small green water-drop logo distributor references of alternative energy and looking on its front panel, and a summary to support bottle deposit bills in of the company’s efforts on the the U.S. – something that strikes back panel that leads customers to a sour chord for most beverage fijigreen.com if they want more industry professionals, and is ac- information. tively opposed by the American Whether consumers are reading Beverage Association. Fiji’s back panel and website, or if Phone 954-862-1445, Fax 954-862-1484 All of these efforts stack on top they were in Mooney’s audience [email protected] of what the company said it’s been when he trumpeted the company’s SALES AND DISTRIBUTION: Power Trip Beverages, Inc., doing all along. Chia said Fiji has intention, they seem to like Fiji’s 12401 Orange Drive, Suite 205, Davie, FL 33330 always responsibly managed the latest song. Fiji has remained on aquifer they draw the water from, top, and Martin said the bottled and Fiji’s squared bottles make water brand’s sales keep growing. their shipments more efficient “We’re expecting a pretty robust by reducing the “dead space” in year for Fiji in 2008,” he said. freight carriers. Bono, eat your heart out.

APRIL 08 :: BEVERAGE SPECTRUM 43 PROMO PARADE

Corona covers many fronts in ’08 “Get Some A” Corona Extra and Corona Light are head- 2007 continues in major markets this year. Albeit 147 years-old, Iron City Brewing Co. ing back to the beach with a new market- The radio spots pitch the Corona Commer- still has a few new tricks up its sleeve. The ing campaign. Two new television ads cial Getaway before launching into snippets Pittsburgh-based brewery is launching a will capitalize on its “vacation in a bottle” of contemporary recording artists’ songs, new campaign to remind Pittsburghers to appeal. “Treasure Map,” and “Hotel Room,” including Grammy-nominees Raheem “Get Some A” – its Augustiner brand of la- feature scenes that escalate to vacationers DeVaughn and Emily King. ger. The campaign encourages consumers enjoying Corona moments. Print ads debut Three national television commercials to upgrade their choice in beer to Augustin- in lifestyle, entertainment and sports publi- speak to Corona’s Hispanic market. Launch- er. Pittsburghers can learn more about pro- cations, and out-of-home executions will ap- ing this spring, “Sports,” “Dance” and motions by visiting a new web site, www. pear in all major markets. “Foods” represent activities with which Co- GetSomeA.com. Corona’s on-air sponsorship of the “Jim- rona believes Hispanics will identify. Out- In addition to the new Augustiner cam- my Kimmel Live” green room will also door executions take advantage of various paign, Iron City has also launched a new continue in 2008. The partnership includes local and regional inﬂ uences and landmarks corporate Web site, www.ironcitybrewing- prominent branding, live on-air bumpers, to target the local consumer, e.g. Southern company.com, which showcases the brew- and 30-second TV spots. Crown Imports California, a Mariachi band is seen against ery’s core brands (Iron City Premium Lager, brands are also the exclusive beers avail- the iconic Hollywood sign; and in Miami, a IC Light and Augustiner) and chronicles the able in the green room. South Beach hotel showcases a Corona in- brewery’s history. Corona will also sponsor the Kenny spired neon façade. Corona will also execute Each of the brewery’s core brands have Chesney 2008 “Poets & Pirates” Tour which a radio campaign targeted to the Hispanic also undergone signifi cant redesigns in la- kicks off on April 18 and runs through consumer to support the brand in 2008. beling and case packaging. mid-September. For more information, visit www.crown- The urban radio program that launched in importsllc.com.

New POS for Whaler’s Rum Line Heaven Hill Distilleries, Inc. has launched a new POS campaign to tout the Whaler’s brand. The new POS “This Way to Paradise” has a tropical aesthetic. It will include a case card, fl avored shelf talker, original shelf talker, shelf strips, fl oor bin and table tent bar card. As an evolving brand, this POS will distinguish the Whaler’s fl avors from more traditional Rums. Whaler’s legendary recipe hearkens back to when seafarers rattled vanilla beans in empty rum bottles at sunset to entice migrating whales to their ships. The friendly whales led them to the tropical haven known as Hawaii. There the sailors discovered the old rum makers of Maui and were so impressed by the exotic taste of their rum that they called it Whaler’s. For more information on Whaler’s, visit heaven-hill.com

44 BEVERAGE SPECTRUM :: APRIL 08 ‘Good to Go’ with Nutrisoda and Giant Bicycle Nutrisoda, “the Good Soda” announces its partnership with the world’s largest bicycle company, Giant Bicycle, to promote healthier lifestyles. As part of the promotion, ten Giant OCR Alliance 1 performance road bicycles, valued at $1,500 each, will be offered as Grand Priz- es, along with 100 Giant helmets for fi rst prize winners, and 1,000 Nutrisoda-Giant water bottles for second prize winners. On-air radio contests in select markets will give away 33 Giant FCR 1 fi tness bicycles valued at $900 each. Additionally, Nutrisoda will give away up to 1,000 Giant Boulder mountain bikes through local entries at participating retailers in select markets. McCormick bottles eco-luxury Through the promotion, Nutrisoda hopes to introduce the fi t- McCormick’s eco-luxury brand 360 Vodka is pioneering an innova- ness-oriented consumer to its line of eight vitamin and mineral- tive and eco-friendly approach to distilling and packaging spirits. Its infused beverages. new advertising campaign reﬂ ects McCormick’s concern for envi- At the heart of the Good to Go promotion is the Giant Code ronmental sustainability, while not compromising high luxury and Game, which runs from March 10 through May 31, 2008. Participat- design. The “Blend In. Stand Out” campaign’s visual style is based ing retailers will carry specially marked Nutrisoda four- packs on on the concept of “blending in” to the environment to minimize www.nutrisoda.com/giant/ with the game. Consumers may also one’s eco-footprint, and “standing out” from the ordinary. The cam- enter the sweepstakes via mail-in entry forms found at participat- paign will consist of three ads featuring female fi gures that have ef- ing convenience stores. fectively blended in to their natural settings. Images from the “Blend The integrated marketing campaign hit radio waves in twelve In. Stand Out” campaign can be seen at www.vodka360.com. markets, highlighted by on-air contests and bicycle, helmet and McCormick Distilling was recently named a member of the En- water bottle giveaways. An online advertising and e-mail campaign vironmental Protection Agency’s Green Power Partnership and has rounds out the promotion. pledged to replace a portion of its electricity consumption with For more information, on both Good to Go partners, please visit green power to reduce the environmental impact associated with www.nutrisoda.com and www.gia ntbicycle.com. conventional electricity use.

Giant Moose Loose on Daytona Beach Wanted: Giant 30-foot inﬂ atable bottle of Moosehead Light Last Seen: At a Daytona Beach, Florida promotion where the moose bottle was allegedly stolen. Moosehead USA, the U.S. importing arm of Moosehead Breweries, was launching its fi rst U.S. product: Moosehead Light. Moosehead Light is a smooth and refreshing premium light beer packaged in Moosehead’s unique and recognizable green bottle. The on-site promotion location where the moose bottle was last seen marked one of the fi rst consumer-focused events in support of the imported light beer’s U.S. availability. REWARD: One-year supply of Moosehead Light to the person who brings the bottle back to its home on the beach -- no questions asked. Investigators expect that the moose bottle will be diffi cult to hide… If you have information leading to the missing giant moose, please call the Daytona Beach Patrol at 386-239-6414. To fi nd out more about Moosehead, visit www.moosehead.com.

APRIL 08 :: BEVERAGE SPECTRUM 45 CONVENTION SCRAPBOOK EXPO WEST

oga Moms, Good Lifers, Hippies, YCrunchies and Granola-Heads – they were all there and they were all selling at last week’s 2008 Natural Prod- ucts Expo West in Anaheim, Calif. The show was a clear demonstration of the sway the natural foods movement has in this part of the country, as it easily dwarfed the East Coast ver- sion of the show. Sitting and enjoying a “John Daly” – one of his half-and-half teas mixed with Tito’s vodka, Sweet Leaf Tea founder Clayton Christopher admitted that he’d even been willing to Team Crayons. miss his beloved South-by-Southwest Music Festival. With buyers from behe- Guru Energy - Catherine Gundon, moths like Target and Whole Foods to Eric Tomeo, Bernadette Wilkes tiny Midwestern natural food shops in attendance, it was just that important. And there are exciting new outlets for these products, indeed, including the revelation of a Whole Foods “energy set” that will include Hi Ball, Steaz and Sambazon energy drinks, among other potential candidates.

Pure Cool - Patti Ann Kelly

Skylar Haley - Fernando Vasquez, Cornelius Geary, Ken Cohen

HiBall - Dan Craytor, Alyssa and Todd Berardi

Lightfull Foods - Susan Schneider Emergen-C - Ron Fugate and Bruce Sweyd

46 BEVERAGE SPECTRUM :: APRIL 08 GUS - Steve Hersh and Crew. Tradewinds Tea - Steve Hatch Maine Root - Matt and Mark Seiler.

Vita Coco - Ira Liran and Michael Goldstein

NVE Pharmaceuticals - Richard Norowitz The Switch - Cindy Lane and Maura Mottolese

Jones Soda - Erin Kliphardt and Josh Groff Carpe Diem - Amanda Winter and Bree Warner Hansens - Gregg Arends

APRIL 08 :: BEVERAGE SPECTRUM 47 Fancy Food show preview

SCHEDULE Saturday, April 26 - 8 :00 A.M. – 6:30 P.M. – OTA Member Day ® - 8:30 A.M. – 1:15 P.M. – Organic Store Tour N A S F T - 9:00 A.M. – 4:00 P.M. – Fancy Food Show Workshop: Fundamentals of Specialty Food Retailing - 10:00 A.M. – 4:00 P.M. – Fancy Food Show Workshop: The Basics: The The 2008 Global Food and Styles Expo will Business of Specialty Food combine three shows to offer more than 56,000 - 1:00 P.M. – 4:00 P.M. – Reaching Your Best Organic Target Pre- products from over 1000 exhibitors in the fast- Conference Workshop est growing food and beverage segments – two of which are of particular interest to the beverage - 1:00 P.M. – 4:00 P.M. – How to Effi ciently Build Your Brand industry. This year, the Fancy Food Show and All Things Sunday, April 27 Organic will focus on celebrity chefs and culinary - 9:00 A.M. – 10:00 A.M. – Opening Keynote: A Morning With Bobby Flay demonstrations including appearances by Food - 10:00 A.M. – 5:00 P.M. – Exhibits Open Network star Bobby Flay. The combined shows - 10:30 A.M. – 11:30 A.M. – US Food Export Showcase Seminar: will feature dozens of beverage companies, with a Integrating Sustainability into Successful Businesses number of workshops on how to better sell natural and organic products in your place of business. - 10:30 A.M. – 12:00 P.M. – All Things Organic Conference Sessions: » Organic 101: Overview of the North American Marketplace, Educated on Organic: Your employees and your customers, Beyond the Boutique: • When: Organic in non-traditional retail environments, Making Organic April 26-29 Produce Stand Out in Retail Settings • Where: - 10:30 A.M. – 12 :00 P.M. – Fancy Food Show Seminars: Effectively Reaching the LOHAS Consumer, Trading Up in Brands & Store Design McCormick Place, Chicago Illinois USA - 12:30 P.M. – 1:45 P.M. – All Things Organic Exhibitor Seminars • Who Attends: - 1 P.M. – 4:00 P.M. – Organic Fiber Tour Supermarket retailers, wholesalers, distribu- - 2:15 P.M. – 3:45 P.M. – All Things Organic Conference Sessions: tors, international buyers and sellers come to Organic 101: Navigating the Organic Treasure Map - Sourcing for All the Global Food and Style Expo. CEOs, owners, Your Needs, Entering the North American Organic Market, Organic managers – including everyone from buyers Private Label: Views from around the table, Understanding and Selling and marketers to store managers. the Organic Message: Eco-labels, current research and health claims - 6:00 P.M. – 10:00 P.M. – All Things Organic Welcome Party at the River • Who Exhibits: East Art Center Over 350 domestic exhibitors from around the country. Most exhibitors are entrepreneurs who Monday, April, 28 developed the recipe and started the company, - 8:30 A.M. – 9:30 A.M.– Keynote Panel: Global Retailer Forum so you can learn about the products and do - 10:00 A.M. – 5:00 P.M. – Global Food & Style Exhibits open business with decision-makers. And at this Spring Show, you’ll fi nd many local Midwest - 10:15 A.M. – 4:00 P.M. – All Things Organic Culinary Demonstrations exhibitors with regional or ethnic products. - 10:30 A.M. – 12:00 P.M. – All Things Organic Conference Sessions: Or-

48 BEVERAGE SPECTRUM :: APRIL 08 SCHEDULE (CONT’D) EXHIBITORS ganic 101: Organic on the Menu: Definitions for you and your Fancy Foods customers, How-To for Organic Exporters, Policy and Standards Update Part 1 Food, Sustainability How-To for the Organic Industry: Creating 2430 SENCE Worldwide your business plan, Cutting-Edge Organic Fashion: Meeting the needs 2442 Switch Beverage of today’s eco-savvy consumers 2963 Aquadeco LLC - 10:30 A.M. – 12 P.M. – Fancy Food Show Seminars: Specialty Food All Things Organic Magazine Presents: State of the Specialty Food Industry 2008, Taking Your Products to the Marketplace 3233 Ciranda Inc 3301 Tart Is Smart/TPG - 12:30 P.M. – 1:45 P.M. – All Things Organic Exhibitor Seminars 3307. Uncle Matt’s Organic, Inc. - 2:15 P.M. – 3:45 P.M. – All Things Organic Conference Sessions: Organic 3421 Lakewood Organic Juices 101: Certifying Your Store: How and why to go organic for retailers, 3452 Elite Naturel / Organic Juice USA Inc Consumer Trends: The word on the street, Innovations in Food Safety 3469 Dream Foods International LLC for the Organic Industry, Policy and Standards Update Part 2: Non-food, 3477 BrandStorm Inc Sourcing Tips for Organic Foodservice: From fine dining to the cafeteria 3528 Global Juices and Fruits LLC - 6:30 P.M. – 12:00 A.M. – OTA Annual Dinner & Awards Ceremony at the 3530 Eldorado Artesian Springs Inc Hyatt Regency Chicago 3547 Frutzzo Natural Juice 3570 Totally Organic Beverages Tuesday, April 29 3604 Zola Acai - 8:30 A.M. – 9:30 A.M.– Closing Keynote: John Moore: "The Bigness of 3662 Modmix Smallness" 3667 Bionade International GmbH - 10:00 A.M. – 4:00 P.M. – Global Food & Style Exhibits open 3847 Horizon Organic 3862 - 10:30 A.M. – 12:00 P.M. – All Things Organic Conference Sessions: Honest Tea Organic 101: Trends in Organic Non-Food Sectors, Diverse Approaches 3870 Herbal Water, Inc. to a Competitive Marketplace: Learning to thrive, Getting Started: Menu 3954 Sambazon building and trends for restaurants, International Standards and 4045 Adina World Beat Beverages Equivalency Update, Meeting Increased Demand with Integrity: 4163 Apple Rush Co Sourcing organic locally, domestically, and internationally 4171 Purity Organics Inc

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APRIL 08 :: BEVERAGE SPECTRUM 49 PREVIEW

EXHIBITORS FMI SCHEDULE

WHAT: 1688 A. Lassonde, Inc. SATURDAY, May 3, 2008 616 Adams Flavors, Foods & Ingredients 8:00am - 5:00pm Registration The FMI Show 1797 Advanced Food Products

and Marketechnics 2058 Advanced H2O, Inc. SUNDAY, MAY 4, 2008 310 American Beverage Corp. 8:00am - 5:00pm WHEN: 2134 Anheuser-Busch Registration 311 Ardea Beverage Co. 1:00pm - 4:00pm May 4-7, 2008 Business Sessions 2532 Coca-Cola North America 4:00pm- 5:00pm 1893 CytoSport, Inc. WHERE: Opening Keynote Session 1052 Campbell Soup Company Mandalay Bay 2280 Classic Wines of California MONDAY, MAY 5, 2008 Convention Center 1334 Disney Consumer Products 7:00am - 5:00pm Las Vegas, Nevada 305 Evian North America Registration 1734 Flavor Infusions, Inc. 8:00am - 11:00am Super Session WHY: 864 Glass Packaging Institute 8:00am - 11:00am 2190 Icelandic Glacial, Inc. Dozens of vendors and Business Sessions 445 InZone Brands suppliers will be on hand 11:00am - 5:00pm 1008 Kellogg Company Exhibit Halls Open to show retailers their hot 233 Kids Only, LLC new products. Education TUESDAY, MAY 6, 2008 1943 Kraft Foods, Inc. 7:00am - 5:00pm sessions will focus 1281 Lt. Blender’s Frozen Concoctions Registration on everything from theft 2152 Miller Brewing 8:00am - 11:00am prevention to the future 602 NBI Juiceworks Super Session of category management. 2290 Niagara Bottling 8:00am - 11:00am 2065 Nestle’ USA, Inc. Business Sessions 1875 Nature 101 11:00am - 5:00pm Exhibit Halls Open 871 Organica Beverages

1777 Reed’s WEDNESDAY, MAY 7, 2008 702 SG Beverage Solutions Inc. 7:00am - 12:00pm 1764 The J.M. Smucker Company Registration 455 Talking Rain Beverage 8:00am – 9:00am 911 Zipfi zz Closing Keynote Session 9:00am – 1:00pm Exhibit Halls Open

50 BEVERAGE SPECTRUM :: APRIL 08