Showing posts with label Industry Trends. Show all posts
Showing posts with label Industry Trends. Show all posts

Thursday, June 26, 2014

Here's Why Brands Are Speaking Spanish in General Market Ads Dish, ESPN, Hyundai, others mainstream their Hispanic marketing

Via AdAge


Sure, it's not a coincidence that brands like Hyundai, ESPN, Corona and Dish Network have run general market TV ads in both English and Spanish during the World Cup, but that isn't the whole story. Marketers also have been moved by the high crossover appeal of such efforts and the multicultural nature of the millennials they're trying to reach.
Some brands, like Hyundai and Corona, have run versions of the same ad in English and Spanish, while others, including Dish and ESPN, have taken a Spanglish route, weaving Spanish and English words and phrases into single ads. Either way, the key is to have a universal message that will appeal to both audiences.
The shift toward mainstreaming Hispanic marketing coincides, of course, with explosive population and spending growth among Hispanics in America. Hispanics now comprise 17 percent of the U.S. population (up from 13 percent in 2000) and collectively spend more than $1.3 trillion each year, according to Nielsen and AHAA: The Voice of Hispanic Marketing (formerly the Association of Hispanic Advertising Agencies). And those numbers will likely continue to grow—with or without World Cup play. 
For Corona, going bilingual "really broadens our opportunity to speak with Hispanic consumers through multiple vehicles," said John Alvarado, vp of marketing for the beer division of Constellation Brands, which owns and markets the brand in the U.S. English and Spanish versions of Corona ads from Hispanic marketing shop La Comunidad will run throughout the summer. "Where traditionally most brands have spoken to Hispanic consumers through just Hispanic television, this allows us to speak to consumers through multiple spots. Most millennials are multicultural."
Like Corona, Hyundai produced a new ad from lead agency Innocean USA in both Spanish and English. "We always consider each ad case by case," said David Matathia, director of marketing communications at Hyundai. "If we tap into a story or insight that's universal, then we'd definitely do it."
And while millennial appeal wasn't the main motivation behind Hyundai's strategy, Matathia acknowledged that within that age group, "to some extent there's greater acceptance, there's a mixed perspective that allows [bilingual ads] to work."
The high crossover appeal of the idea behind "Juego Bonito," a new Dish ad from Havas Worldwide, gave rise to blending Spanish and English words into a single execution, said Dish chief marketing officer James Moorhead. "The continued growth of acculturated Hispanics in the U.S. is creating a unique dynamic," Moorhead added.
ESPN's mainstream Hispanic efforts include two ads featuring Pitbull around the NBA Finals and two "This is Sportscenter" ads for the network—the second time that lead agency Wieden + Kennedy has gone bilingual in the long-running campaign.
"We know that Hispanic Americans like to see themselves represented in general markets as well as in the creative that is targeted to them on our Spanish speaking outlets," said Aaron Taylor, svp of marketing at ESPN. "And if you're talking about the other m word, 'millennial,' the composition of that audience is inherently multicultural. In order for brands to resonate with a younger, millennial, 18- to 34-year-old [and even younger audience], it's important for us to appeal to them in a way that reflects the world that they live in."

Friday, April 18, 2014

Beer Is About to Invade Your Snapchat

Via TIME

Marketers are taking a growing interest in the ephemeral messaging service Snapchat, using it to debut new sandwiches and offer customers exploding coupons. Now beer manufacturer Heineken has devised a way to make disappearing images engaging. The company will give attendees of the Coachella music festival the inside scoop on a lineup of secret concerts by sending them photo clues throughout the weekend.  

With the promotion, which the company is organizing through an account called HeinekenSnapWho, Snapchat users can receive snaps to help them figure which two artists are planning a surprise joint performance on a given day at the festival. A tightly cropped picture of an artist’s clothing, for instance, might be used as a tip. Users that respond to Heineken with the correct artists get an early confirmation of an act scheduled for the Heineken House, the stage where the beer maker is hosting acts.  


“When you’re at a music festival like Coachella, a lot of people are kind of fueling the rumor mill of who’s going to show up, who’s going to be the surprise act,” says Eric Steele, creative director at Wieden + Kennedy, the ad agency that worked on the campaign. Heineken hopes to leverage this curiosity to get in front of more music fans. “A lot of [brands] are using it as another broadcasting medium. Knowing the way people organically use Snapchat, it’s much more of a two-way conversation.”  

One to two surprise acts per day will be revealed via Snapchat. Pattie Falch, director of sponsorships and events at Heineken, says the company is the first beer brand to be active on the app.  

Social media networks can prove a thorny advertising venue for the alcohol industry. Snapchat in particular has a very young audience that includes many teenagers. In the United States, alcohol makers generally self-regulate their marketing and require that 70 percent of the people likely to see an ad be 21 or older. For the Snapchat promotion, Heineken will initially greet users with a photo of a bouncer and ask them to confirm that they are of age. Users are required to make similar confirmations to follow alcohol brands on Twitter and Facebook.

Despite these limitations, social media marketing is becoming increasingly important for the alcohol industry. Beer and spirits manufacturers spent about eight percent of their marketing budgets in digital channels in 2011, according to a recent Federal Trade Commission study of the industry’s advertising practices.

Monday, March 31, 2014

Google Plus Just as Popular as Twitter in U.S., Study Says

Google Plus has the same number of U.S. users as Twitter and more opportunity for brands, according to a new survey from Forrester Research. Google Plus, the two-year old network that put social in the search giant, is far from a ghost town as some have called it, the survey said.
In fact, 22 percent of people in a 60,000-person survey said they visit Google Plus monthly, the same percentage as people who said they visit Twitter. Of course, 72 percent visit Facebook monthly. Google Plus visitors topped LinkedIn, Pinterest and Instagram.
Nate Elliott, the Forrester researcher who found that brands are having a tougher time reaching Facebook users without paid campaigns, did the study.
“Put simply, Google Plus isn’t the Facebook killer some hoped it would be,” Elliott wrote on his blog today. “But that doesn’t mean marketers should ignore Plus. Far from it: I believe every marketer should use Google Plus.”
Elliott found that top brands have about 90 percent as many Google Plus fans as they have Twitter followers, on average.
“The brands we studied have more followers on Google Plus than on YouTube, Pinterest and Instagram combined,” Elliott wrote.
The report also found that Google Plus fans engage more with brand posts than they do on Twitter. Google says it has more than 300 million monthly users, which is more than Twitter at 240 million, but Nielsen has found people spend little time on Google Plus.
A recent New York Times Article called it a "ghost town," but that was met by some passionate fans, who disagreed with the comparison. Still, most marketers advise brands to have a presence on Google Plus because it can affect search positions.

Friday, March 28, 2014

Coca-Cola, Mondelez partner for snack solution

 via http://supermarketnews.com

A joint occasion-based snack merchandising program was a success for Coca-Cola and Mondelez International, executives from both companies’ said in a Shopper Marketing Summit presentation.

Tara Bartelt, Coca-Cola’s senior manager of strategic partnerships. “The goal was to provide quick and convenient access to products already consumed together,” said Michael Tilley, associate director of Shopper Marketing & Strategic Partnerships at Mondelez.

The program features a snack and beverage merchandising rack that can be merchandised in the perimeter as a destination center. The rack is available in a smaller version for retailers who want to use it in the deli or another department. “We created a rack that could fit in any retail or channel outlet,” Tilley said of the program, which launched in March 2013 and marks one of the largest joint efforts between the two companies.
The program comes at a time when 63% of shoppers have specific occasions in mind as they shop for snacks, and 33% agree it would help if stores provided meal and snack solutions.

“Consumers want to see products together that they would consume together,” said Tilley.
The displays combine Triscuit, Ritz, Oreo and other Mondelez brands with Coke, Dasani, Powerade and other items in the Coca-Cola portfolio. Entertaining ideas, coupons and mobile promotions support the display.

“This is more about a solution than a brand-sell,” said Tara Bartelt, Coca-Cola’s senior manager of strategic partnerships.  “We paired brands to offer relevant solutions.”


Thursday, March 20, 2014

KitchenAid Collaborates With SodaStream on Sparkling Beverage Maker

via http://www.bevnet.com

KitchenAid has entered the fast growing home carbonation category with the introduction of the Sparkling Beverage Maker, a premium countertop soda maker developed in collaboration with SodaStream International, Ltd., the world’s leading manufacturer and distributor of home carbonation systems.

Echoing the curved, streamlined silhouette of the brand’s iconic stand mixer, the Sparkling Beverage Maker features all-metal construction.  It offers four carbonation settings, a one-liter BPA free plastic bottle, and a 60-liter CO2 tank.  Available in Aqua Sky, Cobalt Blue, Contour Silver, Empire Red, Green Apple, Onyx Black, Tangerine and White starting in June, it will carry a suggested retail price of $249.99.

“As with all KitchenAid products, we never enter a new category unless there’s something differentiating we can offer,” said Beth Robinson, senior manager of brand experience for KitchenAid.  “The all-metal design and eye-catching aesthetics of this model make it uniquely KitchenAid.”

“Also, given how adventurous our consumers are in the kitchen, we envision them using it somewhat differently,” she adds.  “Beyond the many wonderful pre-made soda syrups available for this system, KitchenAid consumers are likely to experiment in making their own syrups using fresh ingredients.”
In an earlier statement announcing plans for their collaboration, executives from both KitchenAid and SodaStream reflected on the synergies between the brands.

“We are excited to expand our KitchenAid family of products and enter the growing category of home carbonation,” said David Elliott, general manager of KitchenAid small appliances.  “Working with SodaStream brings together their best-in-class technology with our stylish design signature to offer a premium product for our consumers worldwide.”

“KitchenAid is an iconic, global brand and we welcome them to the SodaStream revolution,” said Daniel Birnbaum, CEO of SodaStream. “Our unique platform will enable KitchenAid to provide its large and loyal consumer base with the many benefits of home carbonation. We look forward to leveraging the combined strengths of our two brands to advance the category and reach an even broader global audience.”

Wednesday, March 12, 2014

And Here's the First Branded Parody of That Super-Viral 'First Kiss' Ad

via adweek.com

The surest sign that you've created a viral juggernaut is that the parodies quickly come flowing in. This will be especially true of Wren's "First Kiss" ad, which is so stripped down visually that it will be easy to spoof. First out of the gate is a British brand with a reason to jump all over this—Snog frozen yogurt. (A "snog," of course, is British slang for a makeout session.) Check out the parody below, and wait for the onslaught of about 5,000 more by tomorrow. Agency: Krowd.

Tuesday, February 25, 2014

Is Maple Water Going To Be The Next Coconut Water?

via huffingtonpost.com

Despite coconut water's recent world takeover (after all, anything endorsed by Rihanna is bound to rule the planet, right?), not everyone is entirely convinced of its greatness. Coconut water can be a little bit funky, a little bit floral, and sometimes, a little bit chunky. For those of you wishing there were a better-tasting plant-based water, Canada's got a present for you: maple water.

Newly available in Canada and on its way to the U.S. market, maple water is essentially just maple sap -- the clear, sweet nectar that runs out of maple trees. (Don't worry, the stuff they're selling on store shelves has been sterilized.) Though we all think of maple as being sickly sweet, it's important to remember that maple syrup is super concentrated maple sap -- it takes 20 to 50 liters of sap to boil down into 1 liter of syrup. So as you can imagine, maple sap is much less sweet than its syrupy counterpart. (And it's only got about 6g of sugar per serving.)

Originally used as a tonic by the First Nations people of Canada, now it's suggested that we either drink it straight up, or use it in ice cubes, cocktails, smoothies, soups, stews, or even for cooking a whole ham. Though it doesn't boast all the same benefits of coconut water, it's packed with vitamins and minerals.

Monday, December 9, 2013

Kombucha Bubbles Toward the Mainstream

via bevnet.com

For a small deal, it certainly aroused a fair amount of attention, at least in my world. Just a few weeks ago, Los Angeles-based First Beverage Group wrote a check of undisclosed magnitude for what it described as a significant minority position in a small, local kombucha producer with the avowedly retro name Health-Ade. But the Health-Ade deal was the first public acknowledgement that I’ve noticed that serious institutional money is starting to chase this rarefied sector. Coincidentally, the same week, Health-Ade and several of its peers in this rapidly burgeoning field joined up with kombucha proselytizers Hannah Crum and Alex LaGory to launch the industry’s first trade group, Kombucha Brewers International, with plans for a Kombucha Konvention in Santa Monica, Calif., in January. So first, a private equity move, then a convention. Does this herald that kombucha, all of a sudden, has come of age?

That may be a stretch at this point, but the segment certainly is becoming tantalizingly visible even to the beverage conglomerates. Some of that Health-Ade investment, after all, came from the Coca-Cola Co. via its stake in the First Beverage fund; also, there have long been rumblings that kombucha-like probiotic brand KeVita has dallied with PepsiCo’s incubation arm in Southern California. If you put aside all the distracting talk of “scoby” and “mushrooms,” kombucha has a lot going for it: health benefits via the high probiotic content, a broad palette of techniques that allow individual marketers to differentiate their liquids much the way craft brewers can (and craft soda purveyors can’t), a growing on-premise component, and a burgeoning sense of grass-roots authenticity that comes of having an active network of home brewers who swap their scobies. (OK, hard to avoid that word.)

Of course, the segment has produced one mega-brand already, GT’s, which so far dominates with its core GT’s and juice-inflected GT’s Synergy, and has showed agility by early clambering aboard the chia bandwagon with a well-received subline. It’s defined the segment so far, and attained the sorts of velocities we’re not supposed to expect in the natural food channel. In fact, I believe GT’s and the kombucha segment deserves credit for helping to elevate the overall beverage segment, much in the way Starbucks once elevated a dreary coffee sector. It’s offered a refreshing burst of premium positioning at a time that even the Whole Foods grab-and-go cooler seems to have become a price promotion battlefield. Arguably, kombucha’s premium but not scary-premium price softened up consumers for the really premium prices charged by the new breed of high-pressure-processed (HPP) juice and cleanse purveyors like BluePrint, Evolution Fresh and Suja.

But kombucha also comes with massive challenges to widespread adoption. Many items still carry a vinegary taste that may be a badge of authenticity to core users but is a turn-off to mainstream consumers. The artisanal nature of production, and the difficult-to-control risk that continued in-bottle fermentation will take the product above acceptable alcohol content levels, is another disincentive for the majors to play. (I’m sure you all remember the massive recall of the category undertaken by Whole Foods in 2010 after several brands, including GT’s Synergy, were found to have consistently excessive levels of alcohol. And I do worry that GT’s continues to be a bit too cavalier about this issue, which I don’t believed it’s fully resolved.) Another challenge, and a sizable one: the need for the products to be kept refrigerated from plant all the way to retail.

Are these insuperable obstacles? I suspect not, in part because so many of the most intriguing beverage sectors today – from cold-brewed coffee to HPP juices – share them that it’s in the industry’s interest to find ways to resolve them. On the distribution front, for instance, it occurs to me that beer wholesalers could prove a workable route to market. After all, they understand fermented products (quite a few beer wholesalers were among those eager to take a flier on the German fermented soda Bionade, though that company’s U.S. push disintegrated before it really got started) and many have been putting in cold capacity to accommodate their craft beer kegs. With kombucha also proving an ancillary sell to their more cutting-edge on-premise accounts, it may make sense. (My local multitap house in Manhattan, Dive Bar, has kept KBBK Kombucha Brooklyn consistently on tap for two years now.) And of course, these days, beer wholesalers have both non-alcoholic and alcoholic varieties of the product to choose from.

And there’s no question that, in the hands of countless celebrities, kombucha’s profile in pop culture is rising. Ironically, there’s a good chance the massive Whole Foods recall may have given the category an awareness jolt. Hey, that hilarious “It’s Gettin’ Real in the Whole Foods Parking Lot” video has been viewed 5 million times on Youtube by now, and the rapper’s complaint that “I’ve been on edge ever since they took kombucha off the shelves” no doubt gets a lot of knowing smiles from viewers. Maybe it even gives the product an air of danger!

So who are the next winners likely to be, after GT’s? That’s a tough call. Among those looking to go broad, I can understand First Beverage’s enthusiasm for Health-Ade, with its approachable recipes, unmistakable apothecary look and links to local farms. Reed’s Inc. has made an aggressive push behind its highly drinkable Culture Club Kombucha, which is finally cracking major retailers. High Country has weathered its share of storms that rivals like Honest Tea and Vibranz didn’t. A group in Austin is intriguingly, if controversially, executing their Live Kombucha as a soft drink. But much as with craft beer, I think many winners will bubble up from the local level, as with a tiny outfit called Beyond Kombucha Artisan Fermented Tea in my burg. After all, who could resist a chance to try a Mava Roka Maple Vanilla Rooibos Kombucha Ale (with a 6.5% alcohol kick)? If things like that interest you, maybe it’s time to book a flight to Santa Monica in January for the konvention.

Friday, December 6, 2013

Five Ways to Use Twitter's New Targeting Capabilities

via http://www.adweek.com



With the announcement of its new ad targeting capability, “tailored audiences,” Twitter opens the door to more data and sends a message to the rest of the marketing world that the new programmatic era has arrived.
Tailored audiences, a partnership between Twitter and companies like Chango, allows more advanced targeting at the individual level, meaning it takes into account the kinds of things people do when they’re not on Twitter, from visiting websites to searching for products on Google.
Until now, Promoted Tweets were limited to what Twitter already knew about a user—gender, location, interests. Meanwhile, access to big data and programmatic marketing tools were confined to the worlds of display ads and the increasingly popular Facebook media exchange, FBX. Starting this week, these capabilities combine into a powerful tool that has far-reaching implications for CMOs and others in the marketing business.
Here are five ways to use these capabilities in your next campaign, from “Twitter’s Tailored Audiences Handbook”:
1. Acquire new customers: Send a Promoted Tweet to in-market consumers who haven’t previously engaged with your brand but have searched for relevant terms. For example, a manufacturer of car seats for children could deliver a special offer via Twitter to customers who type the words “baby car seat” into a search engine. Using a partner like Chango that can collect billions of searches from Google, Yahoo and Bing can make it possible to do this.
2. Encourage new customers to engage socially: Leveraging information about a user who has visited a brand’s website, more commonly thought of as “retargeting,” can now be reimagined on Twitter with the tailored audiences product. A good use of this program is to deliver a promotional message on Twitter to a user who hasn’t made a purchase yet.
3. Start a conversation with brand loyalists: With Twitter’s tailored audiences, marketers will be able to run a Promoted Tweets campaign to their most frequent visitors, as well as to individuals who have visited sites that are positively associated with their own brand.
4. Market to a subset of your existing customers: Many marketers already keep track of their audiences in CRM systems, some of which have incorporated engagements on Twitter. This CRM data can now be made actionable on Twitter. For example, an advertiser could run a Promoted Account campaign to its most active customers from the previous month. 
5. Reconnect with dormant customers: Rather than showing dozens of banner ads to a an inactive user, a marketer can now look at each consumer at the individual level and decide what type of outreach represents the maximum value, or when the right moment is to make contact based on a person’s historical purchases.

Tuesday, November 26, 2013

Gourmet Sodas’ Second Wave

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.”

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."

Still, Whole Foods is hedging its bets. Mr. Schweizer says he called on Suja to work with Whole Foods' product team to create a secondary line of less expensive juices and smoothies. The line, called Suja Elements, was launched in Whole Foods stores around the country this fall and retails for $5. The bottles are smaller—12 ounces versus the usual 16 ounces—and the recipes tend to use lower-cost ingredients like apples and carrots.

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.

Wednesday, October 23, 2013

Premium Hydration Overtakes Enhanced Water

via http://www.bevnet.com/

Amid rising consumer disdain for high-calorie beverages, a convergence in demand for simple refreshment and functionality is starting to give rise to a broad, catch-all category: premium hydration. At its core are products that are generally thought of as enhanced waters, but it has more room at the margins, including alkaline waters, electrolyte enhanced waters and beverages, naturally functional products like coffeefruit-based Bai or any number of coconut waters, mix-to-drink twist-cap bottles, even carbonated products like Sparkling Ice and its current raft of imitators.

In particular, coconut water products and electrolyte-infused waters, led by market leaders Vita Coco and Smartwater, respectively, have found success by promoting hydration as a key function of their beverages, particularly as a way to bridge the gap between health and refreshment.

“Hydration is a very contemporary opportunity that’s out there,” said Neil Kimberley, a longtime beverage consultant. “I think it probably comes back to the idea that it’s not so much about enhanced water as it is about some form of hydration. And then it’s about, ‘is this an updated form of modern hydration that is not for a sports occasion?’ Then I think you get into this kind of space.”

Consumers have been drinking more beverages in general, Kimberley noted, particularly as hydration becomes a more significant part of their daily needs, and a big part of that boost in consumption has come from bottled water. Moreover, as U.S. consumers increasingly shun carbonated soft drinks, research from Nestlé Waters North America and published by Zenith International, a consulting group focused on the food and beverage industries, found that 51 percent of consumers choose non-flavored bottled water in favor of CSDs, while 12 percent opt for sweetened or enhanced water.
At a cost that hovers around $3-6 for a 24-pack of brands like Poland Springs and Dasani, manufacturers have made it extremely easy to buy and consume commodity water. However, higher margins in single serve premium water and hydration beverages have made the products an attractive option for retailers. And in more and more instances, lines have been blurred to include a wider range of beverages.

“[The growth of] bottled water and the whole idea of premium hydration starting with Vitaminwater and then going through products like Smartwater and Sobe Lifewater and then into coconut water, and maybe even Body Armor is an example, is something that’s starting to get grouped together by retailers, and I think that’s becoming the decision set for the consumer,” Kimberley said. “It is taking away share from carbonated soft drinks, specifically diets, and, probably, there’s some trading going on inside the actual premium set itself when you look at the declines of Vitaminwater and the increases in Smartwater.”

The irony of Vitaminwater’s current position is that the brand was once touted as the better-for-you (and higher margin) alternative to highly sweetened carbonated soft drinks and artificially flavored sports drinks. Along with its first-to-market status, Vitaminwater’s fortified formulation and a lighter sweetness profile (than most CSDs, anyway) were significant pieces of the proposition. Moreover, the isotonic flavor, sans the salty aftertaste of Gatorade, gave the brand a solid following among female consumers, who have played a major role in the growth of the enhanced water category.
In recent years, however, the billion-dollar brand has faced a highly publicized torrent of criticism from public health advocates who claim that Vitaminwater’s positioning as a healthy beverage is not only flawed, but dangerous. A 2009 lawsuit filed by consumer advocacy group The Center for Science in the Public Interest (CSPI) alleges The Coca-Cola Co, Inc., which markets the cane sugar-sweetened drinks, has engaged in “deceptive and unsubstantiated claims” in the labeling and marketing of the products.

“Vitaminwater is Coke’s attempt to dress up soda in a physician’s white coat,” said CSPI litigation director Steve Gardner said in a statement about the lawsuit. “Underneath, it’s still sugar water, albeit sugar water that costs about ten bucks a gallon.”

Lawsuits aside, sales of Vitaminwater are in the midst of sustained slide, pointing to a consumer that wants something else. According to Symphony IRI, a Chicago-based market research firm, the brand is down over 16 percent in dollar sales and over 20 percent in unit sales in all multi-outlets combined including C-Stores for the 52 week period ending on Aug. 11 2013. A significant part of that decline is likely rooted in cannibalization from Vitaminwater Zero, the brand’s zero-calorie line. That noted, Zero isn’t faring much better than its stable mate: the brand is down 10 percent and 17.25 percent in dollar and unit sales, respectively.

Monday, October 21, 2013

Marketers Wax Enthusiastic Over Bees and Honey

via  http://www.nytimes.com

COINCIDENCE or not, as the denizens of Madison Avenue seek to generate “buzz” — positive word of mouth — among consumers, they are increasingly turning to bees and honey as marketing tools.
Decades ago, young viewers of “Romper Room” were introduced to characters named Mr. Do-Bee and Mr. Don’t-Bee as shoppers were asked to buy Bit-O-Honey candy, Honey Maid grahams and Pine Brothers honey glycerin tablets. And a brand mascot named Buffalo Bee peddled “the most bee-licious cereals ever” with this jingle: “I’m Buffalo Bee, take my advice, get Nabisco Wheat Honeys, also Rice.” 

More recently, experts say, the “foodie” boom in exploring the provenance and improving the quality of what Americans eat and drink has generated a swarm of brands related to honey and bees. That success has crossed over into other consumer categories, including cosmetics, a fragrance named Honey Marc Jacobs and even a revival of the Dodge Super Bee muscle car, rebranded as the Dodge Charger SRT8 Super Bee. 

“When we look at how America is cooking, there’s an ever-growing interest in quality ingredients, artisanal ingredients,” said Maile Carpenter, editor in chief of Food Network Magazine, a joint venture of Hearst and Scripps Networks Interactive. “And honey is easy-access artisanal food.”
“It’s no longer just the requisite bear in the cupboard,” she said, referring to honey bottles in ursine shapes. “I was up at a cider mill in Connecticut over the weekend, and for the first time I saw a honey stand. There was a huge line; I thought it was for doughnuts. It was a guy selling local honey.”
Beekeeping has become a pursuit of stars who appear in Food Network Magazine and on the Food Network and Cooking Channel cable networks, Ms. Carpenter said, listing Ted Allen, Jose Garces, Jean-George Vongerichten and the Fabulous Beekman Boys, Josh Kilmer-Purcell and Brent Ridge.
“It’s got a great cool factor,” she added. “It’s not as extreme as raising goats.” (Watch this space to see if goats turn into the next ad trend.) 

“Honey has risen” in the estimation of marketers “the same way that olive oil has and cheese has,” said Zeke Freeman, who owns Bee Raw Honey and sponsors a “Save the Bees” fund-raising effort in social media and online in response to a phenomenon known as colony collapse disorder.
The centerpiece of the effort is a Web site for a fake company, Be A Bee Inc., with a home page that declares: “Bees all over the world are dying. Now is the time to invest in the human pollination market.” The effort was created for Bee Raw Honey by the New York office of CHI & Partners, part of WPP. 

Some brands point to roots that predate the current fascination with bees and honey.
“I like to say we were part of this trend even before it was a trend,” said Jon Schlesinger, vice president for marketing at Burt’s Bees in Durham, N.C., because the founders of Burt’s Bees, Roxanne Quimby and Burt Shavitz, “were selling honey out of the back of their truck 30 years ago.” The company became part of the Clorox Company in 2007. 

Mr. Schlesinger and Mariah Eckhardt, director for marketing at Burt’s Bees, said they were not worried that the category would become overcrowded. “I don’t see it as a danger,” he said. “Even as more people market bee-oriented products, that has a halo effect back on our products.” The primary creative agency for Burt’s Bees is Baldwin& in Raleigh, N.C. 

Sometimes, apparently, it may not matter whether a bee-related or honey-related product is a pioneer or a newbie. Although “we weren’t the first to introduce a honey or a flavored whiskey product,” said Casey Nelson, senior brand manager for the Jack Daniel’s flavor portfolio at Brown-Forman in Louisville, Ky., “consumers’ continued propensity” for such tastes meant “it was fitting that the world’s largest whiskey brand be a participant.” 

So Brown-Forman brought out Jack Daniel’s Tennessee Honey in April 2011. “Its flavor is honey,” one ad declared. “Its soul is Jack.” The product “continues to exceed our expectations,” Mr. Nelson said, remaining “one of the fastest-growing spirits brands in the industry.” Ads for Tennessee Honey, featuring characters known as the King Bee and his Swarm, are created by Arnold Worldwide in Boston, part of the Havas Creative division of Havas. 

Another bee, named Buzz, is the brand mascot for Honey Nut Cheerios, sold by General Mills since 1979. It is the best-selling cereal in the country, the company said, outselling even its forebear, Cheerios. 

The honey-flavored segment of the cereal market is expanding rapidly, however. For instance, Post Honey Bunches of Oats, introduced in 1989, now has 13 varieties, and both types of new Kellogg’s Crunchy Nut cereal are honey-flavored: Golden Nut Honey and Roasted Nut and Honey O’s.
So General Mills decided it would “be interesting and fun if Buzz came out of the hive and into pop culture,” said Scott Lee, associate marketing director for Honey Nut Cheerios in Golden Valley, Minn. The character got its own Twitter account, which now has more than 26,800 followers, and appears in a series of commercials with the rapper Nelly that transformed the line “Must be the money” from Nelly’s “Ride Wit Me” to “Must be the honey.” 

Not every bee or honey marketing effort is received sweetly. A blogger on The Huffington Post criticized the commercials, by the Saatchi & Saatchi division of the Publicis Groupe, in a post with the headline “Nelly and Honey Nut Cheerios Bee Cruelly Suck the Life Out of Your Millennial Childhood.”


Tuesday, October 15, 2013

Better Sodas Bubbling Up

via http://www.qsrmagazine.com


Handcrafted. Natural. Artisan. Signature. These foodie buzzwords may have once described decadent pizzas or burgers featuring grass-fed beef, but they’re increasingly featured on the beverage side of quick-serve menus, too.

Freshness and originality are becoming increasingly important buying factors for today’s restaurant-goers, and operators have begun bolstering their drink programs with premium craft-soda options, which offer customers a more enhanced beverage experience than traditional mass-market picks.
“Customers are looking for things that seem like specialties—new, innovative options you can’t get everywhere,” says Maeve Webster, director at food industry market research firm Datassential. “We’re also seeing consistent demand for offerings that are local, small-batch, rare. Custom-soda programs are helping restaurants address these niche demands, and can be a real differentiator for Millennial buyers, who have endless choices.”

This new breed of craft sodas, which some industry experts believe is an alcohol-free outgrowth of the popular craft-beer movement, has several distinct characteristics. The sodas are made with cane sugar and other natural ingredients and are typically brewed in small, locally sourced batches. Craft soda also has the attention of health-conscious consumers, since they’re positioned as a more natural option to traditional sodas.

“Custom-soda programs can be a real differentiator for Millennial buyers, who have endless choices.”
“Around 90 percent of restaurants currently have something on their menu categorized as ‘fresh,’ and it still resonates with customers,” Webster says. “The perception is that craft sodas are more exclusive and provide higher-quality experiences.”

For restaurants already emphasizing natural ingredients and original experiences, craft-soda programs are a natural fit. Take Live Basil, for example. The fast-casual pizza concept launched in Denver earlier this year with a focus on fresh options, and debuted with a Boylan craft-soda fountain to give customers a more diverse beverage selection. Products from Boylan Bottling Company, a small soda brand that was founded in 1891, are only available in 20 states, and the brand has a passionate grassroots following.

Despite having only been open for a few months, Live Basil has already seen excellent customer response for the Boylan fountain, and executives believe the sodas actively reaffirm the brand’s key messaging.

“Live Basil was conceived to meet the needs of the next generation of restaurant guests, with a focus on fresh, authentic food people can feel good about eating,” says Tom Ryan, Live Basil’s founder and chief concept officer. “Craft sodas really align with that message—they’re a premium offering with robust, natural flavors.”

Beverages are becoming an area of increasing importance for the fast-casual segment, Ryan adds, and should be leveraged as part of a concept’s overall branding efforts.

“Boylan sodas give Live Basil an added dimension. We make sure to mention them in our outreach and marketing materials, since that’s what customers are looking for,” he says. “We feel they give our brand more energy and new panache. I’ve actually sat in stores and watched customers taste each flavor.”
Perhaps most telling of the craft-soda trend’s staying power is the fact that Starbucks is now toying with the product. The coffee giant recently commissioned in-house research and development teams to create original recipes for its own proprietary line of sodas, which are now undergoing pilot testing at 150 stores in Atlanta and Austin, Texas. The sodas come in three retro flavors—a lemon ale, spiced root beer, and ginger ale—and are individually measured, mixed, and carbonated by baristas on the spot.
“Starbucks is known for custom beverages—our baristas make a variety of handcrafted, made-to-order coffee and tea drinks every day,” says Linda Mills, a spokeswoman for Starbucks. “Craft sodas seem like a natural extension for our refreshment platform, which inspired this concept testing. Our sodas are made with natural ingredients and are fairly low-calorie, so they’re something customers can feel good about drinking, too.”

While Mills says it’s still too early to tell when or if the Starbucks soda program will launch company-wide, initial response to the testing has been positive.

“Customers are really enjoying the sodas, and are even experimenting with carbonating some of our core beverages,” she says. “We’re very pleased with feedback to date and look forward to evaluating customer response as the test progresses.”

As more restaurants develop craft-soda options, experts say, the immediate industry implications are clear: Gone are the days when beverages simply play a supporting role at mealtime. Premium beverage options can stand on their own two feet and affect a restaurant’s overall strategy going forward.
“Craft sodas represent a huge opportunity for quick-serve operators right now, and especially with these customers,” Webster says. “You can take a familiar menu item, soda, and offer a heightened experience—yours is fresher, original, more flavorful—and you have something your competitors don’t.”

Friday, October 11, 2013

Relaxation Drinks: The Opposite of Energy Drinks


via wsj.com


Can relaxation, a good night's sleep or happiness come from a lightly carbonated, berry-flavored beverage?
imageAmid booming sales of energy drinks spiked with caffeine and other stimulating ingredients, some people are heading to the soda aisle for drinks that promise the opposite effect. With names like Neuro Bliss, Marley's Mellow Mood (as in Bob), and Just Chill, the products aren't marketed as medicine, but as a way to relax without turning to more traditional, if sometimes imperfect, measures like taking prescription drugs or having a few beers.
Consumers are warming up to drinks that could fill the chasm between taking medication for anxiety or sleep problems and doing nothing, says Paul Nadel, president of Neuro Drinks, a Santa Monica, Calif.-based company that sells a line of six drinks including Neuro Bliss, Neuro Sleep and Neuro Sonic, an energy drink. He says the "overmedicated culture we live in" has primed consumers for the concept of a relaxation drink.
Small studies show that some of the ingredients in relaxation drinks, like melatonin, valerian root and L-theanine, appear to help fight sleeplessness or to create a sensation of relaxation in isolated situations.
The ingredients appear reasonably safe for most adults, but users should check with a doctor or research how they might mix with other medications or pre-existing illnesses, says Catherine Ulbricht, co-founder of Natural Standard Research Collaboration, a Somerville, Mass., group that evaluates natural therapies.
Often the drinks are marketed as dietary supplements, a classification under Food and Drug Administration standards that means at least one ingredient isn't considered conventional food. The FDA doesn't review the efficacy, safety or quantity of active ingredients in dietary supplements.She notes that this class of beverages with multiple active ingredients hasn't been well-studied: "I don't mean to sound scary, but it's not water."
Big beverage companies are pitching coconut water, energy drinks and fruit smoothies, but so far haven't dipped their toe into the relaxation business.More consumers say they want a drink that feels healthier than soda—hence the raft of new, lower-calorie beverages. Some have only natural ingredients, while other so-called "functional" products claim some benefit like energy, sleep or cold-fighting properties.
It's not clear the relaxation drink concept will stick. In 2012 relaxation drinks (which includes sleep drinks) accounted for about $32 million in U.S. wholesale sales, a slight increase from previous years, but a tiny amount compared with the $6 billion generated by U.S. energy drinks the same year, says Gary Hemphill, managing director of research for Beverage Marketing Corp. "Some people say, 'If I want to relax I'm going to have a martini," Mr. Hemphill says.
Sold in three beach-themed fruit flavors in a slim can, the drink contains L-theanine, an amino acid found in green tea that the label says "promotes a Chill Mentality."Already a fan of sipping morning coffee to wake up and downing a happy-hour drink to unwind, Patrick O'Brien, a 31-year-old aerospace project manager in Los Angeles, recently added two cans of Just Chill to his Monday afternoon routine.
"It's kind of a Xanax in a can," he says. After a weekend of late nights, the drink helps him feel less anxious confronting a Monday-sized pile of work, he says.
[image]A first round of relaxation drinks came onto the market several years ago. They often were linked explicitly to recreational drug use with names like Purple Stuff and Drank, both slang for the practice of mixing prescription-strength codeine with soda or juice. The drinks now gaining popularity are marketed as mainstream products for busy moms, stressed professionals or those with sleep problems.
Typical consumers "have too much caffeine, then they grab Just Chill," to calm down in the afternoon or evening, says Max Baumann, founder and chief executive of the Venice, Calif.-based Chill Group Inc. "It's not about knocking you out," says Mr. Baumann. The L-theanine in the drink is meant to focus and relax people before "anything where there might be a fight-or-flight response," like a stressful meeting, he says. The company has sponsored yoga and surfing events to cultivate its image, he says.
Some drinks are pitching "more of a lifestyle thing," says Lee Brody, global marketing director for Marley Beverage Co., which is owned by Viva Beverages, a Southfield, Mich., company. Members of the Marley family hold an ownership stake.
Three years ago Viva introduced Marley's Mellow Mood drinks, a line of relaxation juices and decaffeinated teas with Bob Marley's image on every bottle. Originally Marley family members came to Viva with the idea of a Bob Marley-themed energy drink, says Mr. Brody. But the "more authentic proposition for a beverage named after Bob Marley was not energy, but relaxation," he says.
The company markets the drinks at music festivals like the recent Gathering of the Vibes, in Bridgeport, Conn., a music, arts and camping festival. "I get asked on a weekly basis, 'Does this drink have ganja in it?' " says Mr. Brody. (It doesn't.) The drink's appeal is Bob Marley's brand, an association with reggae music and "hey, take time for you," in a world of busy schedules, he says. It contains camomile flower and valerian root extracts.
Drinking a sleep beverage "has to be better than Ambien," reasons Julie Duffy, an elementary school reading specialist from Clark, N.J., who drinks Neuro Sleep most nights to fall asleep by 10 p.m., instead of past midnight.
At about $2.40 a bottle, the bright orange bottles filled with melatonin and other ingredients are more expensive than the melatonin powders she tried, but it "tastes great," like "those orange drinks at McDonald's," she says.

Wednesday, September 25, 2013

Pepsi Invents An "Aroma Delivery System" To Waft Comforting Smells At You As You Drink

via http://www.fastcoexist.com

Scent marketing” is in vogue these days--smell is, after all, the “strongest and most primal of all our senses,” according to the Scent Marketing Association (yes, that exists).

But how to waft a heartwarming smell when you’re a company hawking drinks of a more chemically-scented variety? If you’re Pepsi you develop and patent an “aroma delivery system.”

As Beverage Daily reports, PepsiCo. received a patent earlier this year for a system by which gelatin capsules could be ruptured and broken at the moment a container is opened, “thereby releasing the aroma compound and causing a favorable aroma for the consumer.” 

The patent, filed in September 2011, proposes the capsules have a secondary wax or biopolymer protective coating that would prevent them from degrading during packaging and transport.
PepsiCo's patent gives two reasons why its system would be useful.
One, it’s not easy for scents to escape tiny holes: “The aroma of a product is often not adequately revealed when the consumer opens the container because the orifice through which a product is dispensed is small or a safety film is used...”
Two, the beverage usually smells like its packaging: “...it is often difficult to deliver adequate aroma to a headspace of a container that comes from the beverage itself, and not from the container.”
It’s hard to say whether we will be buying 12-packs of Pepsi that smell like our mom used to make any time soon. Companies often patent inventions that never make it into any actual products.