Publisher’s Toast: Midyear Observations

As we slog through the serious dog days of summer (get it?), I thought it’s a good time to assess how the beverage marketplace is holding up: after all, we’re at the mid-point of the year and the high season for hydration. Yesterday, I spent a day out in the field with a brand doing store checks. It’s always a fun thing to do. I so enjoy their enthusiasm and glee when their product is in the array of brands on the shelves. Yes, they always want a more prominent placement, but overall they’re grateful that it’s displayed at all.

Being in the field gave me the incentive to check into dozens of brands to see how their years are evolving, so I hit the phones, trying to understand their thoughts on the business atmosphere. Overall, they reported, it’s been strong, but growth was slower than they wanted. Sadly, it’s been hard to expand. Profit margins are a common thread in our conversations. Those with more than four SKUs are disappointed that the full line isn’t taken. Still, as a small brand, it’s hard to find the clout to merit more. It’s imperative to be realistic in your expectations. But being forced to scale back brings on grave unease. We all know the statistics of beverage failure rates. I hear that fear.

The talk of investors and acquisitions is a major topic: so many brands are under-financed and in need of capital. I hear jealousy and wonder how some companies are able to raise money. I’m always asked what the formula is that enables comparable brands to secure the cash they need? I cannot answer this query with any real certainty. Which brands will the big wallets deem investment worthy? It’s a crapshoot. There are so many brands in need
of money that deserve that infusion
of cash.

I wish only success to those bold enough to launch beverages. Hang in there, and I’ll be looking for you on the shelf.