Industry veterans have expressed a wide range of opinions following the decision by The Coca-Cola, Co., Inc. to split its North American operations into two units. However, despite the range, one sentiment prevails with many: the shift could present a new set of challenges for Coke and its partners.
Danone Waters of America (DWA), the makers of evian spring water, announced last week that it will test a distribution partnership with Red Bull Distribution Company (RBDC). The test will focus on small format channels such as convenience, drug, select food service and specialty retail stores in southern California and central/southern Florida, two of evian’s key markets.
Buffalo Wild Wings, Inc. (BWW) announced Thursday that PepsiCo, Inc., will become the restaurant’s primary soft drink and non-carbonated beverage supplier. The partnership, which will begin in early 2014, will replace products by The Coca-Cola Co., Inc., in the chicken wing chain. It will also initiate a series of joint marketing initiatives tied to sports and entertainment, according to a release.
In an effort to streamline operations and expedite its refranchising to independent bottlers, The Coca-Cola, Co., Inc. announced late Thursday that it will divide its North American operations into two units. On January 1, 2014, Coca-Cola Americas will no longer exist, paving the way for Coca-Cola North America (CCNA) and Coca-Cola Refreshments (CCR).
At BevNET Live in Santa Monica earlier this week, retailers restated the theme: they understand the potential for emerging brands and they’re looking for partnerships. Representatives from 7-Eleven, Costco and Life Time Fitness, Inc. were on hand to discuss their interest in identifying the next wave of innovation and stocking their shelves with the buzzworthy brands of the next few years.
The idea that a beverage company can spike or sink at any time carried over at the conference, indicating that entrepreneurs recognize the often uncontrollable factors at play. CEO Jeff Church knows that, even now, Suja could continue to reach new levels of prominence or have about the same shelf life as the juice itself.
The health and wellness fervor has become more of an industry idea than something conceived by the consumer, said Tim Kezman, the president of King Juice Company, Inc, makers of Calypso Lemonade. With an overload of vitamins, nutraceuticals and other hard-to-pronounce details, consumers can feel overwhelmed and unsure of their decisions. This opinion isn’t on-trend, but distributors still boast to Kezman about how there’s no educational process needed with Calypso.
A recent study conducted by Medicus Research indicates that hangover-prevention supplements made by Mercy Nutraceuticals, Inc. can diminish common symptoms from hangovers, such as headache and nausea, and alcohol consumption, such as reductions in attention and cognitive function.
If your beverage is sparkling, flavored, some form of water and has a solid foundation in taste and packaging, retailers are probably interested.
After Senator Richard Durbin (D-IL) received a tweet with an image of a toy boat draped in branding from Rockstar Energy, CNN anchor Jake Tapper aired Senator Richard Blumenthal (D-CT) on his news show to chat about youth marketing and energy drinks, a rather familiar subject by now.
Coca-Cola will continue to distribute Evian through the first half of 2014, however, its last ship date will be on July 3. After that, Evian, a branch of The Danone Group, will work with several wholesalers and use the distribution system of Dannon yogurt, another branch of The Danone Group, to compensate for the loss of Coke’s expansive network.
Recent developments in distribution news indicate that retailers are beginning to express more confidence in oat-based beverages. Shortly after BevNET reported that, alongside Sneaky Pete’s line of oat-based drinks, Target will include Oatworks in its emerging brands test, FreshDirect announced on Thursday that it will also carry the Oatworks line.
Researchers shared their insights on what they termed the misinformation, research gaps and potential benefits of caffeinated products during a webcast hosted by the Institute of Food Technologists earlier this week titled The Buzz on Caffeine: New Developments in Safety, Regulation and Adverse Event Reporting.
An article in The Wall Street Journal by reporter Mike Esterl notes that food and beverage products labeled as “natural,” such as PepsiCo’s Naked juice, are beginning to shed the hazy modifier. Also, last Thursday, the FDA proposed measures that would “all but eliminate” artificial trans fats, a major contributor to heart disease in the U.S., from the food supply.
