via bevnet.com
The stigma is receding. The notion of bubbles isn’t so bad. From the
gourmet to the Stevia generation, fewer products are afraid to fizz.
Even
as sprawling soda giants like Coke and Pepsi have seen overall volume
declines, existing gourmet products like Fentiman’s, Reed’s, GuS, Fever
Tree, Maine Root and Q Tonic have all ridden the expansion of the
natural and specialty channel to increasing sales, while the first
Stevia-sweetened CSD brand, Zevia, has vaulted into a top-20 spot in
some supermarkets recently. Even Honest Tea jumped into the fray last
year with Honest Fizz.
“I think it’s growing in sort of the same way that craft beer is
growing,” said Tom First, who is a board member of Bruce Cost Ginger
Ale. “It’s about quality drinks. And if you’re the quality player in a
category where things are big, you can really make a dent.”
Just as a few survivors of the early craft beer boom – the Stones,
the Sierras, the Sams – were able to clear the field for a new
generation of brewers, so too is a new group of soda makers popping back
up into view, either incorporating the natural sweetener Stevia or else
recombining other product types like tea or lemonade into their
branding. Like that new crop of craft brewers following Lagunitas or New
Belgium into the breach, the new soda makers can learn the lessons of
the ones who came before.
“I think it’s been sticking with it,” that has led to his company’s
growth, said Craig James, the CEO of Fentiman’s North America. “We’ve
had to accept there will be some parts of the market where the product
doesn’t sell, while focusing on the parts of the market where it does.”
There are parallel trends that may be driving the flight to quality:
on the one hand, there are restaurants making their own sodas, consumers
enjoying the option to make their own fizzy drinks at home via
contraptions like the SodaStream, and boutiques like the Fizzary opening
in San Francisco; on the other, there’s Sparkling Ice and its
knockoffs, which have reinforced an industry’s belief that bubbles, in
one form or another, still sway shoppers.
But mostly, according to James, it’s that tastes have matured for
shoppers in two key channels: on-premise accounts like restaurants and
bars (the same places where craft beer and cocktails have thrived) and
in natural and specialty stores.
“There’s an interesting dichotomy out there with consumers,” James
said. “The kids what technology, what the modern world can offer them,
but they’re sitting in the cool cafes sipping on funky sodas or gourmet
teas,” that have a throwback feel.
While losing guilt is one motivation, losing weight is another – and
it’s the reason that flavor chemist Bill Sabo and actor/environmental
activist Ed Begley Jr. teamed up to create Begley’s and Bill’s, a craft
soda that uses erythritol and a rare form of Stevia known as Reb-D.
Sabo had a heart attack a few years back and was forced to cut sugar
out of his diet – but he’s also a master flavorist, owner of Nature’s
Flavors, the largest online seller of organic flavors in the country. So
over a two-year period, he came up with a broad assortment of old-time
soda flavors running from cherry cola and strawberry to Bananas Foster
and root beer.
“What caused my heart attack was eating and drinking too much sugar,” Sabo said. “I needed to change things.”
Other companies try to bridge the gap.
“When you look at carbonated, you can go for flavor or for healthy,”
said Wonny Kim, the founder of Chai Elixir, who recently launched a line
of carbonated chai sodas in Oklahoma City. “I wanted to create a viable
soda alternative and revitalize the space.”
One other company trying to change things is Motto, a sparkling
matcha tea-based drink that uses honey and agave to keep its calorie
count low while incorporating carbonation.
“We’re more of a functional health drink,” said co-founder Tom
Olcott. “The fact that we’re sparkling just lightens up the flavor a
bit.”
But, added his partner, Henry Crosby, “We think the category itself is evolving.”
Tuesday, November 26, 2013
Monday, November 25, 2013
What Pepsi Discovered by Monitoring Millennials During the VMAs
via adweek.com
As a brand that has long had event sponsorship at the heart of its marketing formula, Pepsi sought a more scientific way to study the correlation between TV viewing and second-screen usage during live programming.
So using research methods such as biometrics, the brand looked at consumer behavior during the MTV Video Music Awards telecast
this past August—the top-rated entertainment program on cable among
viewers aged 12-34 this year, and the most social non-sports TV event.
What emerged were some surprising differences in media usage among millennials. During pivotal moments of the show—like Miley Cyrus’ twerk-tastic
duet with Robin Thicke (which generated a record 360,000 tweets per
minute)—consumers 18-26 immediately shifted from TV viewing to second
screens. Meanwhile, those aged 27-34 stayed with the telecast, waiting
to engage in social conversations.
“The younger group already had their hands ready and immediately went
to social media to start talking,” said Chad Stubbs, senior director of
marketing at PepsiCo.
“The show ebbed and flowed, and a key thing we learned was having a
brand message throughout the show was important,” he added. “In the
past, maybe we said we would need a big part at the beginning or the
end.”
Carolyn Kim, associate director of business intelligence at Pepsi agency OMD,
pointed out that while there is not a wide disparity of ages among the
millennial set, continual advances in technology have led to behavioral
differences among those consumers.
Consider this: When email became widely available in 1993, older
millennials were 11 years old—but younger millennials were just 2 years
old. “Those younger viewers really grew up more with technology as an
ordinary part of their everyday lives,” Kim said.
During the VMAs, Facebook was the most popular social media brand,
accounting for 41 percent of consumer usage, followed by Twitter with 32
percent. And while Cyrus’ antics burned up Twitter, performances by
Justin Timberlake and Katy Perry had fans taking to Facebook to discuss.
Stubbs said he thinks there was a good balance between the brand’s TV
and online investment during the VMAs. But he would consider devoting
more resources to monitoring social activity. He imagines a focus group
that might include a comic, an industry insider, and key millennials and
influencers in order to explore ways that the brand might respond to
ultimate fans. “We know live TV is a place we need to be—it’s still
incredible appointment viewing,” he said. “But it’s not enough for an
advertiser to show up with a beautiful ad and wait for everyone to come
to it.”
Friday, November 22, 2013
Coca-Cola Designed Its New Can Around A Problem No One Has
via http://www.fastcodesign.com
There are two types of problems that designers try to solve: problems people have, and problems designers delude themselves into thinking people have. Venerable sugar tonic maker Coca-Cola has just released a new can design firmly in the latter camp: a chill-activated can to visually tell people whether their Coke is cold or not. First released as a 7-Eleven promotion six months ago, the chill-activated can is now available to everyone.
Chill-activation, of course, is nothing new. The designers at MillerCoors have previously rolled out a series of chill-activated Coors Light cans, glasses, and containers. When refrigerated, the outline of the Rocky Mountains on the cans turn a vibrant blue, indicating that the can is properly cold. Coca-Cola is doing the same thing here, only color-changing ice cubes serve as the visual cue.
It's all achieved with thermochromatic ink, a color-sensitive dye that has been used in cheap thermometers for years, and is increasingly being used by the big brands for packaging purposes. For example, Pizza Hut has used thermochromatic ink to show whether or not your pizza was delivered hot in an innovation they called "the Hot Dot." And Mountain Dew has also experimented with thermochromatic inks, releasing a limited edition 16-ounce can in a cross-promotional campaign with the last Batman movie that changed the color of the Dark Knight's symbol when properly chilled.
It's all innocuous enough, but with Coca-Cola getting in on the thermochromatic ink trolley, maybe it's time to call this what it actually is: faddish bad design.
It should be obvious, but for the most part, no one needs to be visually told when something is cold or hot. There are exceptions, of course: an electric stove burner that turns orange when it's hot is an important safety cue. But when safety is not a factor--and a lukewarm can of pop is not going to kill anyone--a can that shows you when it is cold is like a siren that goes off when it's bright out. It's self-evidently absurd. We don't expect to "see" cold. We expect to feel it, and our skin has been designed to do just that. When we want to know if a can of Coke is cold, or a pizza is warm, our natural instinct is to touch it. That's what our hands are for.
The design problem that Coca-Cola, Coors Light, Mountain Dew, Pizza Hut have tasked themselves to solve is how to convey the temperature of their product to people without hands. That's actually a noble pursuit in its own way--amputees need a nice frosty one now and again, just like everyone else--but something tells me, that's not why these companies' R&D departments spent their millions.
There are two types of problems that designers try to solve: problems people have, and problems designers delude themselves into thinking people have. Venerable sugar tonic maker Coca-Cola has just released a new can design firmly in the latter camp: a chill-activated can to visually tell people whether their Coke is cold or not. First released as a 7-Eleven promotion six months ago, the chill-activated can is now available to everyone.
Chill-activation, of course, is nothing new. The designers at MillerCoors have previously rolled out a series of chill-activated Coors Light cans, glasses, and containers. When refrigerated, the outline of the Rocky Mountains on the cans turn a vibrant blue, indicating that the can is properly cold. Coca-Cola is doing the same thing here, only color-changing ice cubes serve as the visual cue.
It's all achieved with thermochromatic ink, a color-sensitive dye that has been used in cheap thermometers for years, and is increasingly being used by the big brands for packaging purposes. For example, Pizza Hut has used thermochromatic ink to show whether or not your pizza was delivered hot in an innovation they called "the Hot Dot." And Mountain Dew has also experimented with thermochromatic inks, releasing a limited edition 16-ounce can in a cross-promotional campaign with the last Batman movie that changed the color of the Dark Knight's symbol when properly chilled.
It's all innocuous enough, but with Coca-Cola getting in on the thermochromatic ink trolley, maybe it's time to call this what it actually is: faddish bad design.
It should be obvious, but for the most part, no one needs to be visually told when something is cold or hot. There are exceptions, of course: an electric stove burner that turns orange when it's hot is an important safety cue. But when safety is not a factor--and a lukewarm can of pop is not going to kill anyone--a can that shows you when it is cold is like a siren that goes off when it's bright out. It's self-evidently absurd. We don't expect to "see" cold. We expect to feel it, and our skin has been designed to do just that. When we want to know if a can of Coke is cold, or a pizza is warm, our natural instinct is to touch it. That's what our hands are for.
The design problem that Coca-Cola, Coors Light, Mountain Dew, Pizza Hut have tasked themselves to solve is how to convey the temperature of their product to people without hands. That's actually a noble pursuit in its own way--amputees need a nice frosty one now and again, just like everyone else--but something tells me, that's not why these companies' R&D departments spent their millions.
Thursday, November 21, 2013
SodaStream Plots 'Edgy' Return to Super Bowl
via adweek.com
SodaStream is headed back to the Super Bowl, where it plans to take direct aim at Coke and Pepsi with a 30-second ad in the fourth quarter of the Feb. 2 game.
The marketer of home soda-making machines was forced to tone down its ad in this year's game after the company said CBS rejected the original spot, which showed exploding Coke and Pepsi bottles to dramatize the environmental pitch that SodaStream could have "saved 500 million bottles on game day alone."
The 2014 ad has not been submitted for approval because it is still in development. But "it will be edgy because that is who we are," said SodaStream International CEO Daniel Birnbaum. "You have to be edgy if you are challenging and disrupting a big category."
"I hope that [Fox] will be a little more courageous than CBS, because CBS's behavior was pathetic," he added. "CBS chickened out and they just didn't want to take a risk of pissing off Coke and Pepsi who are big, big sponsors of theirs."
CBS declined to comment on Friday. A Fox Sports spokesman said that "ads cannot be reviewed until submitted, and all ads submitted for review must meet Fox's standards for broadcast."
SodaStream received a wave of free publicity as a result of the 2013 rejected ad, which it distributed digitally. "We never intended to be banned, but the end result was we got about 5 million views on YouTube, which we didn't pay for," Mr. Birnbaum said.
SodaStream has not picked an agency for the 2014 ad. But Mr. Birnbaum said former CP&B exec Alex Bogusky, who worked on the 2013 ad, is on the company's short list. "I loved working with Alex and he really brings an edge," he said.
The company sought a fourth-quarter time slot because it wanted to follow any Coke and Pepsi ads, Mr. Birnbaum said. (PepsiCo is sponsoring halftime and is planning to air two 30-second beverage ads, while Coca-Cola has yet to confirm its Super Bowl plans.) Mr. Birnbaum said he expects his soda competitors to use their ads to talk "about happiness and love and all those beautiful attributes in life."
As SodaStream grows -- its machines are now available in more than 60,000 retail stores in 45 countries -- it has adopted mainstream marketing techniques, including partnering with big food companies such as Kraft Foods Group. Co-branded flavor versions include Kool-Aid, Country Time and Crystal Light. The company also recently announced a deal with Cooking Light magazine, whose logo will adorn two new flavors: Passionfruit-Mango and Kiwi-Pear.
Fox is expected to fetch roughly $4 million for 30 seconds in the Super Bowl. Mr. Birnbaum said that amount roughly equals what SodaStream typically pays for TV advertising over three months in the U.S. The Super Bowl investment is a "big decision" and "we don't take it lightly," he said. But it's "bigger than the money," he added. "It's a statement that we have arrived."
According to Kantar Media, SodaStream spent $15 million on measured media in 2012. In the first half of 2013 it spent $11 million, including $4.5 million on network TV during the first quarter.
SodaStream is headed back to the Super Bowl, where it plans to take direct aim at Coke and Pepsi with a 30-second ad in the fourth quarter of the Feb. 2 game.
The marketer of home soda-making machines was forced to tone down its ad in this year's game after the company said CBS rejected the original spot, which showed exploding Coke and Pepsi bottles to dramatize the environmental pitch that SodaStream could have "saved 500 million bottles on game day alone."
The 2014 ad has not been submitted for approval because it is still in development. But "it will be edgy because that is who we are," said SodaStream International CEO Daniel Birnbaum. "You have to be edgy if you are challenging and disrupting a big category."
"I hope that [Fox] will be a little more courageous than CBS, because CBS's behavior was pathetic," he added. "CBS chickened out and they just didn't want to take a risk of pissing off Coke and Pepsi who are big, big sponsors of theirs."
CBS declined to comment on Friday. A Fox Sports spokesman said that "ads cannot be reviewed until submitted, and all ads submitted for review must meet Fox's standards for broadcast."
SodaStream received a wave of free publicity as a result of the 2013 rejected ad, which it distributed digitally. "We never intended to be banned, but the end result was we got about 5 million views on YouTube, which we didn't pay for," Mr. Birnbaum said.
SodaStream has not picked an agency for the 2014 ad. But Mr. Birnbaum said former CP&B exec Alex Bogusky, who worked on the 2013 ad, is on the company's short list. "I loved working with Alex and he really brings an edge," he said.
The company sought a fourth-quarter time slot because it wanted to follow any Coke and Pepsi ads, Mr. Birnbaum said. (PepsiCo is sponsoring halftime and is planning to air two 30-second beverage ads, while Coca-Cola has yet to confirm its Super Bowl plans.) Mr. Birnbaum said he expects his soda competitors to use their ads to talk "about happiness and love and all those beautiful attributes in life."
As SodaStream grows -- its machines are now available in more than 60,000 retail stores in 45 countries -- it has adopted mainstream marketing techniques, including partnering with big food companies such as Kraft Foods Group. Co-branded flavor versions include Kool-Aid, Country Time and Crystal Light. The company also recently announced a deal with Cooking Light magazine, whose logo will adorn two new flavors: Passionfruit-Mango and Kiwi-Pear.
Fox is expected to fetch roughly $4 million for 30 seconds in the Super Bowl. Mr. Birnbaum said that amount roughly equals what SodaStream typically pays for TV advertising over three months in the U.S. The Super Bowl investment is a "big decision" and "we don't take it lightly," he said. But it's "bigger than the money," he added. "It's a statement that we have arrived."
According to Kantar Media, SodaStream spent $15 million on measured media in 2012. In the first half of 2013 it spent $11 million, including $4.5 million on network TV during the first quarter.
Wednesday, November 20, 2013
Coca Cola Helps Fans Create Custom Tacky Sweaters for the Holidays
via http://www.psfk.com/
It wouldn’t be Christmas unless you received a pair of knitted socks, or if you’re really lucky, a hideous handmade sweater that you have no choice but to wear at least once. To embrace the holiday spirit, Coca-Cola and Droga5 have joined forces to create the “Coke Zero Sweater Generator,” an excellent new service that lets you design your very own ugly christmas sweater.
There’s all kinds of colors, patterns and graphics to choose from on the site. Some of the more obvious design elements include reindeer, abominable snowmen and cooked turkeys, but there are also king cobras, saxophones and other random elements to choose from.
To keep things interesting, the Sweater Generator is only available for the next two weeks, during which you’re encouraged to try and get as many votes as you can for your design. The 100 sweaters with the most votes on December 1st will be handcrafted and sent to their creators in time for the holiday.
Monday, November 18, 2013
New Zealand Water Brand Attaches iPhone Cameras To Bottles
via http://creativity-online.com
New Zealand bottled water brand Pump is encouraging its customers to film themselves doing interesting activities while they consume the brand. In a campaign by Saatchi & Saatchi NZ, Pump is giving out a hand-held, acrylic camera mounts that attaches their iPhone 4 or 5 and to their Pump water bottle, and asking them to film themselves doing something that shows they "grab life by the bottle" (for example, some kind of sport or activity). The campaign kicks off with a TV ad launching this week, then customers apply on the brand's website and the most creative footage will be featured in forthcoming TV ads, as well as having the chance to win prizes.
New Zealand bottled water brand Pump is encouraging its customers to film themselves doing interesting activities while they consume the brand. In a campaign by Saatchi & Saatchi NZ, Pump is giving out a hand-held, acrylic camera mounts that attaches their iPhone 4 or 5 and to their Pump water bottle, and asking them to film themselves doing something that shows they "grab life by the bottle" (for example, some kind of sport or activity). The campaign kicks off with a TV ad launching this week, then customers apply on the brand's website and the most creative footage will be featured in forthcoming TV ads, as well as having the chance to win prizes.
Friday, November 15, 2013
What's Behind the Green Juice Fad?
via wsj.com
How much will consumers pay for healthy-in-a-bottle?
As much as $10 and sometimes more. At least that's the belief of high-end grocers like Whole Foods and a spurt of small juice companies trying to move the cold-pressed-juice craze from small-batch to mass-produced.
A
16-ounce bottle of BluePrint Red, containing beets, carrots and ginger,
among other ingredients, goes for $10 at some retailers. And Whole
Foods customers are paying $9 for a bottle of celery-based Twelve
Essentials vegetable juice, one of the top-sellers from Suja, an
18-month-old juice brand based in San Diego. Suja co-founder Annie
Lawless says customers understand the high cost of what goes into the
bottle, including organic produce that is cold pressed and then
preserved using a process that leaves most of the nutrients intact.
"When you buy a bottle, you're getting all the goodness without any of
the effort," says Ms. Lawless, a 26-year-old former law student and yoga
instructor. The company says it generated $20 million in revenue in its
first year.
Just as carrying a Starbucks coffee cup has become a celebrity fashion accessory and a
slung-over-the-shoulder yoga mat can signify a certain devotion to
spiritual fitness, porting a clear bottle of green vegetable juice has
evolved into a status symbol. Initially, the juicing market was
supported mostly by people doing liquid-only cleanses, marketed as a way
to rid the body of toxins and bloat. Now, more consumers are drinking
juice as a meal replacement, a quick infusion of vegetables or to convey
the impression of superior health and discipline.
Suja's product line is a slate of
fruit-and-vegetable juices meant to dose the body with a palatable
concentration of nutrients from organic produce. For people doing a
liquid-only cleanse, Suja sells packages on its website. A three-day
supply costs $225, including shipping on ice outside of California. It
has flavors such as Glow, which contains apples, cucumbers, mint, kale
and other ingredients, and Green Supreme, with apples, kale and lemon.
Health
experts say the vegetable drinks have many beneficial nutrients,
although some ingredients, like apples and carrots, can add a lot of
sugar. Consumers should be careful to get enough fiber in their diets,
since the process of cold-pressed juicing extracts the juice from the
fiber-rich leaves and stems. Good sources of fiber can include whole
grains and nuts, which aid digestive health.
A
simpler route to a well-rounded diet might be to eat the vegetables
themselves, rather than as juice, suggests Marion Nestle, a professor of
nutrition, food studies and public health at New York University. "It's
a lot of money, why not have a salad?"
Juice
companies say the high cost of the organic produce, and the expense of
processing, prevent them from selling their product for less. Consumers
making their own juice at home with similar ingredients would pay about
the same or more, not counting the cost of equipment, they say. "We wish
we could bring the cost down," says Zoë Sakoutis, co-founder of
BluePrint.
Sarah Andersen, 31, drinks about five
bottles of Suja juice a week and says it leaves her feeling healthy and
confident. A health-and-wellness trainer for teenage girls in Madison,
N.J., Ms. Andersen says she used to make her own juice. But the time,
effort and mess became onerous. Now she buys Suja, even if it means
cutting back elsewhere. "I know it's expensive but I would rather have a
juice than get my nails done."
Industry
experts say overall sales of cold-pressed juice aren't tracked
separately. But the segment is a bright spot in an otherwise stagnant
juice market, they say. National retailers like Whole Foods are devoting
increased shelf space to the products, more companies are launching,
and acquisitions and expansion in the industry have been robust, says
Jonas Feliciano, a beverages analyst for Euromonitor International, a
market-research company. "Americans are drinking less juice," he says.
"So what manufacturers are going for is attracting the health-conscious
consumer who will pay higher costs for smaller volumes."
Errol
Schweizer, executive global grocery coordinator for Whole Foods, says
the company was skeptical at first that consumers would be willing to
pay such high prices for juice. But, he says, "I have been surprised by
the cleansing products and what people are willing to spend."
BluePrint was founded six
years ago to sell a six-bottle-a-day-cleanse product that costs $75 a
day. It includes a lemon, cayenne and agave concoction meant to
"hydrate, refresh, curb that 4 p.m. snack craving and stay focused," the
company website says. BluePrint now also sells individual bottles of
juice at high-end grocers around the country. Another cleanse product:
BluePrintBride, for women wanting to lose weight and detoxify before
their wedding, starts at $350. BluePrint, which was acquired last year
by Hain Celestial Group Inc., in Melville, N.Y., says it had $20 million
in sales last year.
Another
cold-pressed juice company, Evolution Fresh, was purchased by
Seattle-based Starbucks Coffee Co. two years ago for $30 million. The
company recently invested $70 million to open a factory in Southern
California to produce 140,000 gallons of juice a week, says Chris
Bruzzo, general manager of Evolution Fresh. Mr. Bruzzo says the juices
are now carried in 5,000 Starbucks locations and 3,000 grocery outlets.
The best sellers are two varieties of green juice, he says.
Getting
pricey cold-pressed juice on the shelves of national supermarkets and
specialty stores has been a challenge. Stores like Whole Foods typically
require a shelf-life of about 30 days for packaged juices. But
traditional methods of preserving foods use heat, which destroys some
nutrients. Cold-pressed juice companies didn't want that.
To
extend shelf life, some companies, including Suja, BluePrint and
Evolution Fresh, have turned to a process often called high-pressure
processing (HPP), which inactivates most microorganisms while retaining
natural freshness. HPP, also used to preserve guacamole and ready-to-eat
meats, subjects the food to intense pressure of thousands of pounds a
square inch.
High-pressure processing,
however, is the subject of a lawsuit filed against Hain Celestial in
U.S. District Court for the Southern District of New York last month.
The suit says that HPP destroys some probiotics and enzymes and that
BluePrint labels falsely advertise its products as "raw." A BluePrint
spokeswoman declined to comment on the suit.
Ms.
Lawless, the Suja co-founder, has long made juice at home because she
has celiac disease. She and a partner, Eric Ethans, in 2011 began
selling juice to her yoga students who would ask about her juicing.
The
small operation attracted two investors, including Jeff Church, 52, a
bottled-water entrepreneur. He approached Whole Foods, which began
offering Suja products in its stores in fall of 2012. Suja—a word the
company founders made up that signifies to them "long and beautiful
life," a spokeswoman says—now produces on average 10,000 bottles a week
of each of its 19 flavors at its Southern California plant. It acquired
an organic-produce distributor to ease supply issues. And it plans to
open a plant in the Philadelphia area next year to have quicker access
to more markets. "It's about getting the kale picked and on the shelf at
Whole Foods as fast as we possibly can," says Mr. Church, Suja's chief
executive.
Thursday, November 14, 2013
Coca-Cola Exec Kevin Keith Splits for JWT Atlanta
via mediabistro.com
After spending the last four years as group director/integrated content marketing at Coca-Cola, Kevin Keith has headed back to the agency side, joining up with JWT’s Atlanta office as director of planning. Keith has taken over for Michael Deszo as of this week and will report to the agency office’s president/CCO, Perry Fair.
During his time on the client side, Keith led brand strategy and integrated marketing communications on both Coke and Sprite. Regarding his meeting with Fair and the JWT Atlanta crew, which works on clients including the U.S. Marine Corps, Shell, Transamerica and Quaker State, Keith says in a statement, ““I was introduced to Perry when he joined JWT Atlanta and have followed his accomplishments and work over the past two years. The extensive technology capabilities at JWT and the supporting infrastructure to propel creative ideas into business solutions for clients made the agency very attractive for me, and I’m excited to see what we can invent together.”
During his previous stints in ad land, Keith worked on the account side at the likes of Draftfcb, Lowe and Hal Riney & Partners.
Tuesday, November 12, 2013
PepsiCo (PEP) Plans To Invest $5.5 Billion In India By 2020, Expansion in Rural Areas Seen As Key
PepsiCo, Inc. (NYSE:PEP) will spend about $5.5 billion between now and 2020 to expand its operations in India as part of a larger effort to bolster sales in emerging markets, the company announced.
The expansion coincides with an economic slowdown in India,
where output growth has slowed to its lowest level in a decade,
spooking some investors, the Wall Street Journal reports.
PepsiCo Chairman and Chief Executive Indra Nooyi on Monday called the investment a “vote of confidence in India’s future.”
The announcement follows a similar claim by The Coca-Cola Company (NYSE:KO), PepsiCo's top rival, which said last year that it would invest $5 billion in India by 2020.
PepsiCo will double its manufacturing capacity and improve
its distribution network in rural areas while developing products geared
toward Indian tastes. While the Purchase, N.Y.-based company doesn’t
publicize sales and earnings by country, it said that eight of its big
brands in India generate annual sales of more than $1.26 billion.
Monday, November 11, 2013
Heartwarming Campaign Asks Viewers to Be More Human by 'Staying Apes'
via creativity-online.com
In this big old rat race that is modern day life, sometime we lose sight of who we really are -- animals. And, at heart, animals are empathetic creatures, as this campaign for F/Nazca Saatchi & Saatchi sets out to show.
The keystone of the campaign is this video, shot in what appears to be a scientific lab. In it, we see what happens when two monkeys who had never met before are placed near each other -- one, in a cage, without food, and another, free, with as much sustenance as his heart desires. he result will tug at your heartstrings. It's an attempt to encourage people to "Stay Apes," that is, remember their empathy and donate to Operation Smile, an organization dedicated to funding reconstructive surgery for children born with cleft lips.
We wanted "to remind people, especially non-donors, that the act of sharing is what helped us evolve as a species and should never be ignored," said F/Nazca Saatchi & Saatchi ECD Eduardo Lima in a statement.
The commercial was inspired by a study out of Duke University on the nature of empathy.
In this big old rat race that is modern day life, sometime we lose sight of who we really are -- animals. And, at heart, animals are empathetic creatures, as this campaign for F/Nazca Saatchi & Saatchi sets out to show.
The keystone of the campaign is this video, shot in what appears to be a scientific lab. In it, we see what happens when two monkeys who had never met before are placed near each other -- one, in a cage, without food, and another, free, with as much sustenance as his heart desires. he result will tug at your heartstrings. It's an attempt to encourage people to "Stay Apes," that is, remember their empathy and donate to Operation Smile, an organization dedicated to funding reconstructive surgery for children born with cleft lips.
We wanted "to remind people, especially non-donors, that the act of sharing is what helped us evolve as a species and should never be ignored," said F/Nazca Saatchi & Saatchi ECD Eduardo Lima in a statement.
The commercial was inspired by a study out of Duke University on the nature of empathy.
Friday, November 8, 2013
Coca-Cola to Invest More Than $4 Billion in China From 2015-2017
via http://www.bloomberg.com
Coca-Cola, the world’s largest beverage company, plans to invest more than $4 billion in Chine from 2015 to 2017 as it builds factories and adds new products to meet demand and counter rising competition.
The Atlanta-based company is also open to acquisitions in China and may consider deals with complementary businesses, such as makers of juices or plant-protein drinks like almond milk, David Brooks, president of Coca-Cola’s Greater China and Korea business unit, said in an Nov. 6 interview in Shanghai.
“You will see an absolute increase in investment on an annual basis and on a three-year basis,” Brooks said, commenting on the company’s future plan for China. Coca-Cola is investing $4 billion in the country for 2012-2014.
The U.S. soda maker is ramping up its China investment as the company and its bottlers seek to double global revenues to $200 billion in the 10 years to 2020. While it is the country’s largest soft-drink maker, it faces competition from companies including Pepsi-Co and the local Hangzhou Wahaha Group as it seeks to expand in the most populous nation.
Competition in China’s beverage industry is intense and the sector is one with “low growth and weak profitability,” analyst Jean Chan from Sanford C. Bernstein & Co. wrote in a Sept. 25 report. Sales are typically driven by promotions, she said.
Coca-Cola said in July that its second-quarter sales volume in China was little changed after rising 7 percent a year ago. Sales in the third quarter have shown improvements, and this will continue over the next several quarters, Brooks said.
The Asian nation has pared economic growth projections to an average of 7 percent this decade, compared with 10.5 percent in the previous 10 years.
Coca-Cola plans to open as many as two facilities each year in China over the next decade, Brooks said. In the nearer term, it will invest about $40 million in a new pulp blending factory in Shanghai, and likely open a plant in the southwestern Guizhou province in the next two years, Brooks said.
“The beverage market in China is still very fragmented,” the executive said. “No company has predominant market share, and there is a huge amount of untapped opportunity left to grow.”
The company also plans to expand its offerings of Chinese-style beverages, with traditional Chinese items such as wolf berries and herbal ingredients all being considered in future drinks, Brooks said, declining to elaborate further. It will also roll out more low-calorie and no-calorie drinks as it caters to an aging population, he said.
“People like new flavors,” Chan, the analyst, said. “Going forward, product innovations will help you expand your categories and also drive growth.”
Chinese consumers are buying more juices and ready-to-drink teas and fewer carbonated drinks as they seek a healthier lifestyle, Chan said.
China regulators blocked the Coca-Cola’s planned $2.3 billion buyout of China Huiyuan Juice Group Ltd. in 2009.
Coca-Cola, which broke ground on the first of its 43 factories on the mainland in 1980, already sells snow-pear fruit drinks and sour-plum sparkling beverages there. On its website, there are suggested recipes including sweet and spicy hoisin spare ribs with Coca-Cola, encouraging consumers to incorporate the carbonated beverage into local cooking.
Coca-Cola, the world’s largest beverage company, plans to invest more than $4 billion in Chine from 2015 to 2017 as it builds factories and adds new products to meet demand and counter rising competition.
The Atlanta-based company is also open to acquisitions in China and may consider deals with complementary businesses, such as makers of juices or plant-protein drinks like almond milk, David Brooks, president of Coca-Cola’s Greater China and Korea business unit, said in an Nov. 6 interview in Shanghai.
“You will see an absolute increase in investment on an annual basis and on a three-year basis,” Brooks said, commenting on the company’s future plan for China. Coca-Cola is investing $4 billion in the country for 2012-2014.
The U.S. soda maker is ramping up its China investment as the company and its bottlers seek to double global revenues to $200 billion in the 10 years to 2020. While it is the country’s largest soft-drink maker, it faces competition from companies including Pepsi-Co and the local Hangzhou Wahaha Group as it seeks to expand in the most populous nation.
Competition in China’s beverage industry is intense and the sector is one with “low growth and weak profitability,” analyst Jean Chan from Sanford C. Bernstein & Co. wrote in a Sept. 25 report. Sales are typically driven by promotions, she said.
Coca-Cola said in July that its second-quarter sales volume in China was little changed after rising 7 percent a year ago. Sales in the third quarter have shown improvements, and this will continue over the next several quarters, Brooks said.
The Asian nation has pared economic growth projections to an average of 7 percent this decade, compared with 10.5 percent in the previous 10 years.
Coca-Cola plans to open as many as two facilities each year in China over the next decade, Brooks said. In the nearer term, it will invest about $40 million in a new pulp blending factory in Shanghai, and likely open a plant in the southwestern Guizhou province in the next two years, Brooks said.
“The beverage market in China is still very fragmented,” the executive said. “No company has predominant market share, and there is a huge amount of untapped opportunity left to grow.”
The company also plans to expand its offerings of Chinese-style beverages, with traditional Chinese items such as wolf berries and herbal ingredients all being considered in future drinks, Brooks said, declining to elaborate further. It will also roll out more low-calorie and no-calorie drinks as it caters to an aging population, he said.
“People like new flavors,” Chan, the analyst, said. “Going forward, product innovations will help you expand your categories and also drive growth.”
Chinese consumers are buying more juices and ready-to-drink teas and fewer carbonated drinks as they seek a healthier lifestyle, Chan said.
China regulators blocked the Coca-Cola’s planned $2.3 billion buyout of China Huiyuan Juice Group Ltd. in 2009.
Coca-Cola, which broke ground on the first of its 43 factories on the mainland in 1980, already sells snow-pear fruit drinks and sour-plum sparkling beverages there. On its website, there are suggested recipes including sweet and spicy hoisin spare ribs with Coca-Cola, encouraging consumers to incorporate the carbonated beverage into local cooking.
Thursday, November 7, 2013
Wednesday, November 6, 2013
Smashburger Announces New National Partnership with HONEST® Tea
via businesswire.com
Smashburger, the rapidly expanding better burger restaurant concept, today announced it is the first national restaurant chain to roll out HONEST Tea’s fresh-brewed iced tea options at all restaurants nationwide. HONEST Tea is the nation’s top-selling organic bottled tea company. Each Smashburger location will brew a selection of freshly brewed iced tea options, all made from organic ingredients: Classic Green Tea, Just Iced Tea, Lemon Herbal Tea and Naturally Flavored Raspberry Tea.
“Smashburger and HONEST Tea share a passion for providing guests with fresh-tasting, high caliber products, so the partnership was a natural fit for us. We are excited for the opportunity to be the first national restaurant to serve their fresh brewed teas to guests in all of our restaurants across the country,” commented Tom Ryan, Founder and Chief Concept Officer of Smashburger. “There are many synergies between our two brands, but first and foremost is our commitment to serving food and beverages that our guests can feel good about, comprised of quality ingredients for a better dining experience.”
Smashburger has long focused on offering premium beverages, serving craft beer (excluding New Jersey) and craft sodas at its locations nationwide.
Added Ryan, “The trend toward non-carbonated beverages in particular is continuing to grow, and has been the strongest area of growth in our beverage business recently. The addition of HONEST Tea’s freshly brewed iced tea platform fits in well with this growing consumer demand.”
Smashburger, the rapidly expanding better burger restaurant concept, today announced it is the first national restaurant chain to roll out HONEST Tea’s fresh-brewed iced tea options at all restaurants nationwide. HONEST Tea is the nation’s top-selling organic bottled tea company. Each Smashburger location will brew a selection of freshly brewed iced tea options, all made from organic ingredients: Classic Green Tea, Just Iced Tea, Lemon Herbal Tea and Naturally Flavored Raspberry Tea.
“Smashburger and HONEST Tea share a passion for providing guests with fresh-tasting, high caliber products, so the partnership was a natural fit for us. We are excited for the opportunity to be the first national restaurant to serve their fresh brewed teas to guests in all of our restaurants across the country,” commented Tom Ryan, Founder and Chief Concept Officer of Smashburger. “There are many synergies between our two brands, but first and foremost is our commitment to serving food and beverages that our guests can feel good about, comprised of quality ingredients for a better dining experience.”
Smashburger has long focused on offering premium beverages, serving craft beer (excluding New Jersey) and craft sodas at its locations nationwide.
Added Ryan, “The trend toward non-carbonated beverages in particular is continuing to grow, and has been the strongest area of growth in our beverage business recently. The addition of HONEST Tea’s freshly brewed iced tea platform fits in well with this growing consumer demand.”
Friday, November 1, 2013
Coke Unveils Broad Array of New Products, Packages at NAC's
via bevnet.com
With the National Association of Convenience Stores (NACS) show returning to Atlanta for the first time since 2010, executives from the Coca-Cola Co. didn’t have to travel very far from the company’s downtown headquarters to the show’s location at the Georgia World Congress Center. That was probably a good thing considering that they certainly had their hands full with a heap of new products and packages that Coke unveiled at the event.
Staffed by a small army of sales and marketing executives, Coke’s sprawling booth was packed with a broad array of line extensions and packaging updates, each highlighted by the company’s new Digital Cold Vault platform. The video-based technology uses demographic data and market insights that give C-store operators the ability to customized beverage sets each designed to increase sales and shopper satisfaction on a store to store basis.
Embedded within the Digital Cold Vault presentation were several of Coke’s new product introductions, which the company termed as “business-generating innovation.” From the recent launch of Sprite Cranberry, to an upcoming revamp for Vitaminwater’s 20 oz. bottles, to a new cold-activated 16 oz. can, Coke sought to offer retailers new ways to attract consumers and maximize shelf space.
“Retailers are looking for meaningful innovation that drives traffic,” said Doug Middlebrooks, Asst. VP of Shopper Marketing – Convenience Retail, The Coca-Cola, Co. Inc.
For Coke, part of that meaningful innovation meant doubling down on its presence in the liquid water enhancer category, which was pioneered and dominated by Kraft Foods’ MiO brand. Coke’s foray into liquid water enhancers began in October 2012 with the launch of Dasani Drops, and earlier this year, the company introduced Powerade Zero Drops, a likely response to MiO’s launch of MiO Fit, a sports-centric line extension. Coke will soon extend the “Drops” platform with products from Minute Maid and Vitaminwater Zero, both scheduled to debut early next year.
Minute Maid Drops is “the only liquid beverage flavor enhancer in the U.S. made with real fruit juice (an important driver of purchase intent)” according to a fact sheet that Coke distributed at the NACS show. The products contain 5 calories per serving and will come in three flavors: Lemonade, Pink Lemonade and Mango Tropical. Each will be packaged in a 1.9 oz. bottle.
Vitaminwater Zero Drops will launch in late March 2014 and is a line of naturally sweetened, zero-calorie liquid water enhancers that are packaged in 3 oz. bottles. Coke will debut the new line with four varieties: XXX, an acai-blueberry-pomegranate flavor, Revive, a fruit punch flavor, Squeezed, a lemonade flavor, and Rise, an orange flavor.
A line of liquid water enhancers wasn’t the only brand extension for Vitaminwater. Coke has reprised the short-lived Vitaminenergy with a new line called Vitaminwater Energy. Similar to Starbucks’ Refreshers brand, the products are naturally sweetened and formulated with an energy blend that includes green bean coffee extract and B-vitamins. Unlike the previous incarnation of the line, the non-carbonated beverages are packaged in slim 12 oz. cans (as opposed to a 16 oz. package) and contain 50 calories per can.
Coke also showcased a new bag-in-box fountain dispenser for Vitaminwater. The 4-value unit uses a Postmix Bag-in-Box, each of which holds 2.5 gallons of liquid. The fountain station will dispense four Vitaminwater varieties: XXX, Revive, Essential and Vitaminwater Zero Squeezed.
Fruitwater, the Vitaminwater brand extension which Coke revived earlier this year, will have two new flavors — Fizzy Lemonade and Tropical Pineapple — coming in 2014. The artificially sweetened, zero-calorie carbonated drinks are, like many new brands and products seen at the NACS show, similarly positioned to Talking Rain’s Sparkling ICE, which has seen many companies attempt to latch on its remarkable growth rate over the past two years.
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