Summer 2017 | V.94 ORIGLIO BEVERAGE THE LEADER OF THE PACK Delivering Excellence Seasonals The Beer Guy New Products Programs UFO BRAND REFRESH | SUMMER SELECTIONS | YUENGLING CONTINUES TO MAKE HISTORY Letter toTHE TRADE HE GRAY DOLDRUMS OF WINTER HAVE FADED AWAY – it’s springtime! Blue skies and higher temps mean In This T it’s the most popular time of the year for Flavored Malt Beverages. FMB sales spike by 11% during the warm ISSUE weather months� In the land of flat beer growth, that has profit opportunity written all over it� Delivering the Today, consumers’ preferences change rapidly� Many Taste of Excellence ���������������1 continuously seek the next new thing� This has made the FMB marketplace very dynamic with innovation at the forefront� Trade journal Beer Marketers Insights reported in 2016 that Cover Story �������������������������2 fruit-flavored adult beverages account for more than 13 percent of beer sales. Based on the analysis of repeat purchases, that number will only Brewer Highlight �����������������4 continue to grow. FMBs give consumers exactly what they want – flavor options, refreshment The Beer Peddlers ����������������5 and quality ingredients� Flavor is the #1 criteria in FMB choice and over 70% of FMB/cooler and hard cider consumers are in search of greater variety and Penn Taproom ���������������������6 something new� According to Mintel Ready To Drink (RTD) Alcoholic Beverages U�S�, half of consumers who buy FMBs do so because they like the taste, 42% New Products ���������������������7 Seasonal Selections ���������� 10 “FMBs give consumers exactly what Available Year-Round they want – flavor options, refreshment Perfect for the Season ������� 17 and quality ingredients.” Programs ������������������������� 18 The Beer Guy ������������������� 25 appreciate the variety and 18% simply buy these beverages because they are more fun! They appeal to non-beer drinkers and to consumers who describe themselves as beer drinkers, who occasionally want something other than Web ordering is now available to “traditional” beer� all Origlio Beverage customers. “The segment continues to be a growth opportunity [because] new and To place your beer order online, different flavor offerings keep drinkers satisfied, particularly younger contact your Origlio sales rep today! [legal-drinking-age consumers] seeking to explore through flavors,” says Danelle Kosmal, Vice President of beverage alcohol practice for New York-based To receive weekly emails Nielsen� And although they account for a smaller portion of the FMB market of upcoming releases from share, Kosmal adds that hard sodas and seltzers were also a bright spot for the Origlio Beverage, please send segment in 2016� your email address and the name of your account to Origlio Beverage has a vast portfolio of FMBs including Mike’s, Smirnoff Ice, [email protected] or Twisted Tea, many hard ciders and three different hard seltzers – Smirnoff text ORIGLIOBLAST to 22828. Spiked Sparkling, Truly Spiked & Sparkling and White Claw Hard Seltzer� Now is the time to stock up on these FMBs, perfect for casual get-togethers, which happen frequently during the spring and summer� Sincerely, ® Dominic Origlio Heady Times is published five times a year, courtesy of Origlio Beverage. President DeliveringTHE TASTE OF EXCELLENCE Find Out More About Origlio’s Employees Tom Neuman Delivery Service Representative How long have you been with Origlio Beverage? 13 years and counting� What area/s do you service? The Philadelphia International Airport and surrounding areas� How do you provide the best service to customers? I know my customers very well and I have a pretty good understanding of the industry, so I attempt to provide them with meaningful information that can positively impact their businesses� What do you like to do in your spare time? I’m usually with my family when I’m not working – those memories are priceless to me� Diane Kitchin Director of Purchasing How long have you been with Origlio Beverage? 28 years this August� This was my first job after graduating from Penn State with a degree in Supply Chain� What positions have you held in the company? My first role was as an operations assistant� I counted inventory and managed order changes for our new (at the time) supplier Coors Brewing Co� Over time, I assumed the responsibility of inventory control as well as forecasting and ordering for all of our suppliers� I was promoted to my current role as Director of Purchasing during the All Star acquisition� What does your current job entail? Managing the forecasting and product replenishment process for our Philadelphia and Reading locations� What does it take to be a top-notch Forecaster? To be successful, you need to keep an eye on trends and have a strong line of communication with the marketing and sales teams� Relying solely on historical data is tough� What do you like most about your job? The challenge of the ever-changing If you could be anywhere market and working with new suppliers� drinking any beer, where would What do you like to do when you’re not working? I enjoy spending time you be and which beer would be with my husband Steve and our two dogs� They are constant sources of in your hand? Poolside with an entertainment! My favorite hobbies are cooking (I’m fortunate to have a husband Allagash White� who’s a willing taste tester) and entertaining� They relax me and keep me away from my computer� www.origlio.com HeadyTimes v.94 1 CoverSTORY Mike’s Hard Lemonade Company The Leader of the Pack While the rest of the Flavored Malt Beverage category First off, we care about what’s in the bottle� chugs along at about 4% growth, the premium-priced That’s why all our products [Mike’s, Mike’s & never-price-promoted FMBs from Mike’s Hard Harder, Cayman Jack and White Claw] have a consistent following� Our sales Lemonade are posting double-digit gains. grow because of our quality. The liquid T’S GOOD TO BE IN THE FLAVORED MALT BEVERAGE (FMB) SEGMENT� is really good� A lot of brands talk about Consumers of all ages, not just millennials, constantly look for new quality, but we only use the best, natural Iflavors in the easy-to-drink adult beverage category� That is why the ingredients to flavor our malt base – which segment continues to grow� is so pure we are about to get a trademark for it� And everything is 100% gluten free� But most FMB consumers migrate from one brand to the next as they To maximize profits, savvy retailers offer explore the newest flavor� Brand loyalty in the FMB category is practically their customers the best version of a nonexistent� But that’s not true if your name happens to be Mike� Mike’s unique product. In essence, allocating is thriving� In fact, it is the FMB category leader� This year, the entire shelf space based on the quality of Mike’s Hard Lemonade (MHL) portfolio, which includes Mike’s Hard the liquid in the bottle. That’s what Lemonade, Mike’s Harder, Cayman Jack and White Claw, is up 12%� And consumers want. And they are willing that’s on top of four straight years of growth� to pay for it. Mike’s Marketing VP Sanjiv Gajiwala – recently recognized by Our best-selling seasonal ever, Mike’s Hard Ad Age magazine for the success of his scrappy, digital messaging Watermelon is a perfect example� It’s back campaigns – explains how you can increase your profits by this year because of consumer demand� We leveraging MHL’s portfolio. have actually been told that it tastes like “When speaking to retailers, I remind them that too many choices a real watermelon, but without the seeds� overwhelm consumers� Lots of studies confirm that an overwhelmed Of all the FMBs sold last summer in a six- consumer buys less� So if you want to increase FMB profits, you have to pack, Hard Watermelon was number ask yourself if you really gain anything by allocating valuable shelf space one� And when it was on display, its sales [for example] to six more root beers� Root beer drinkers are happy, but increased 61%� what about everyone else? That’s where my products come in� We’re building on that success by launching Consumers are smart� They want whatever tastes the best� And they Mike’s Harder Watermelon (8% ABV) in also care about the quality of the ingredients� There is no doubt that 16 oz� cans� the introduction of new flavors drives growth – that’s true for any food & beverage category� But, offering more flavors isn’t enough to grow a brand� Mike’s brands are growing and here’s why… 2 HeadyTimes v.94 www.origlio.com CoverSTORY Understanding who is attracted to the different products in the MHL portfolio gives you insights that will increase sales. Sanjiv says… Mike’s Hard Lemonade Appeals to all LDA Drinkers� Sad people don’t drink Mike’s� Happiness is universal� Finally, I’d like to mention that all our great- tasting products are supported by their Mike’s Harder own, individual social media programs� Typically, Mike’s Harder appeals Lots of traditional beer advertising fails to males 21 to 29 years of because ad agencies take one concept age� Cracking open a Mike’s and ‘retrofit it’ for, say, Twitter or Facebook� Harder single-serve helps this We recognize that our products appeal to consumer shift from a workday different consumers for different reasons� mindset into fun mode� The The Cayman Jack drinker is also into bold flavors and higher ABV are craft beer� [Cayman Jack sells better if more intense, just like him and it’s displayed with craft beer�] And they the experience he is after� choose to get their information in different ways� Obviously millennials are always looking at their phones� Our Facebook Cayman Jack pages get more engagement than These consumers are into “mixology” and crave any other alcoholic beverage.