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 Be!tj{f;!9Ôx!y!21/986Ôi Cmffe!tj{f;!9/36Ôx!y!22/236Ôi Mjwf!Bsfb;!8/36Ôx!y!21/236Ôi SIGN UP BY 07/07/08 Run up the score on milk sales. Sell more milk and score yourself an adidas® sports watch, while teaching moms and young athletes to Refuel with Chocolate Milk. It’s the August/September feature incentive program from MilkPEP, promoting chocolate milk as an ideal beverage for refueling tired muscles. Feature fl avored milk and you’ll be rewarded with an adidas® watch. Call your processor or ADA representative now, or call the MilkPEP hotline at 1-800-945-MILK. BEWFSUJTFS;!!NjmlQFQ0JEGB!!! !!!! EJWJTJPO;!!! !!!GNTUJ!!! !!!! !!!! CJMMJOH!UP;!! JEGB! ® ! d0p!Pvumpve ! 2516!Gpshf!Bwfovf! ! Tvjuf!311! ! Cbmujnpsf-!NE!!3231: ©2008 America’s Milk Processors. got milk?® is a registered trademark of the California Milk Processor Board. adidas®, the adidas logo, and the 3-stripes mark are registered trademarks of the adidas Group. TFOE!JOWPJDF!XJUI!POF!UFBSTIFFU UIBOL!ZPV"! !!! !! 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.