September 5, 2018
Coca-Cola
Coca-Cola In Dispute With Brazil Over Loss Of Tax Breaks
To settle a truckers strike in May, the Brazilian government raised $3.4 billion by cutting soft drink manufacturers’ tax breaks. Needless to say, this did not sit well with the 59 members of the Brazilian Association of Soft Drink Manufacturers (Abir), which includes Coca-Cola, Inbev, and PepsiCo. Now Coke is threatening to stop production in the Manaus Free Trade Zone – and shift it to another country with better tax incentives – unless Pres. Michel Temer restores the breaks. A bill establishing the tax on industrialized products at 15 percent could be introduced before Temer's mandate is over, but the government would like to punt the problem to the next president. Moving out of Brazil would mean a loss of 15,000 jobs in the soft drinks bottling industry there.
Coke Says Growth In Its Global Volumes Is Driven By Innovation
Coca-Cola CEO James Quincey last year told global subsidiaries to develop and launch beverages with more local flavors and textures. The result has been more than 500 new products and variants, an increase of 25 percent over the previous year. Recent launches include a chunky mango juice (Maaza Chunky) in India, cucumber-flavored Sprite in Russia, whey shakes in Brazil, a sesame-and-walnut drink in China, Coca-Cola Plus Coffee in Australia, and a salty lemon tonic water in France and Belgium. The trick is to introduce and grow new products without hurting sales of the flagship brands that buoy revenue. But the company says the new beverages are helping to drive its recent growth in volumes, despite the elimination of non-performing “zombie” brands.
Coca-Cola Buys Iconic N.E. Moxie Soda Brand From Bottling Partner
Coca-Cola announced it is acquiring the iconic New England soda brand Moxie from Coca-Cola of Northern New England, an independent bottling partner based in Bedford, N.H., which will remain the site of future bottling. The 133-year-old brand – the state beverage of Maine – is made from a root extract that gives it a unique flavor. Though distribution of the brand will not change, a Coca-Cola spokesman said the company sees an opportunity to bring Moxie to a wider audience. The deal is expected to close in the fourth quarter.
Nestle
Nestlé Waters Expands Delivery Service With Acquisition Of Maryland Water Delivery Firm
Conn.-based Nestlé Waters NA has expanded its ReadyRefresh beverage delivery service for homes and businesses to the Eastern U.S. by acquiring the customers of Dayspring Water (Trappe, Maryland). The deal extends the service to the Eastern shore of Maryland into Delaware, down the Maryland shoreline, and into Virginia. ReadyRefresh delivers Deer Park water, Nestlé Pure Life, Perrier, S.Pellegrino sparkling water, and other brands in various sizes and flavors. It offers expanded delivery hours, flexible frequency options (weekly, biweekly, monthly, etc.) and a shopping website. The ReadyRefresh service is also available in Sacramento, Calif., Denver, Colo., and Atlanta, Ga. The transaction closed on July 27, 2018.
Other Companies
Fizzique Unveils Sparkling Protein Waters
Taking advantage of the rising popularity of protein foods and beverages, Carlsbad, Calif.-based Fizzique has launched a line of sparkling protein waters in strawberry watermelon and tropical limon flavors. The company has positioned the drinks as hydration solutions that also deliver 20 grams of whey protein isolate that is lactose free, caseinate free, soy free, kosher, and free of artificial preservatives and flavors. The company says the beverage is “keto perfect” and low-glycemic, perfect for athletes and others looking for more protein and fewer carbs in their diet. Although the company experimented with monkfruit, stevia, and other natural sweeteners, it ended up using sucralose simply because it tastes better.
TEN Water Benefits From Rising Consumer Interest In Alkaline Water
TEN Water of Boca Raton, Fla., is riding a wave of consumer interest in the hydration benefits of alkaline water, predicting it will double sales within a year. The basic product is spring water, sourced from the foothills of the Appalachian Mountains, fortified with electrolytes to increase its pH to 10. Launched in 2013, TEN Water is available on Amazon and Walmart.com and at more than 4,000 stores, including Publix, Wegmans, Food Lion, Ingles and Food City. The product differentiates itself from its alkaline water competition by highlighting the spring water base and a high pH value (10). It is also priced about 10 percent less than others on the shelf. In addition, the company backs away from claims of healthfulness from drinking alkaline water, except to note that it offers superior hydration. Trader Joe’s was recently sued for false advertising, the plaintiffs alleging there is no reliable scientific evidence to support the purported benefits of alkaline water.
La Colombe Debuts RTD Lemonade-Coffee Hybrid
Philadelphia’s La Colombe Coffee Roasters has introduced what it calls the “first ever” Cold Brew Shandy Lemonade, a blend of smooth cold-pressed coffee and sweet lemonade made from Sicilian lemons and infused with microbubbles. The beverage was launched this month nationwide in an RTD can. Each has 90 mg of natural caffeine and is an excellent source of vitamin C, the company says. Cold Brew Shandy Lemonade is available at select La Colombe cafes and online for $2.99.
Positive Beverage Expands Its Hydration Product Line
Positive Beverage of Southern California has added four lightly-carbonated flavors to the Positive H2O hydration line that are zero-calorie and free of artificial colors, sweeteners and preservatives. A new look to the packaging features an updated “Drop” logo and vibrant graphics. The new packaging will replace the previous generation in September through multiple distribution channels including online and will hit retail shelves in early October. Positive Beverage’s drinks contain a range of vitamins, plus potassium and calcium.
Bird Rock Coffee Roasters Creates Its First RTD Cold Brew
San Diego-based Bird Rock Coffee Roasters has collaborated with BKON LLC to create its first RTD single-origin cold brew made from Colombian green coffee beans. BKON used its RAIN (reverse atmospheric infusion) process to create the cold brew, the first of its kind in the West. The RAIN process gently removes the air trapped in an organic material’s cellular structure, enhancing the way infusion occurs and how soluble elements are extracted into a beverage. The results are deep and layered flavor profiles, the company says. The $4.45 Bird Rock Coffee Roasters single origin cold brew cans are 8.4 oz, and are available at all four Bird Rock Coffee locations in San Diego.
O2 Natural Recovery Adds New Flavors To Oxygenated Water Line
Columbus, Ohio-based beverage company O2 Natural Recovery has released two new flavors of its oxygenated natural recovery drink. O2 contains seven times the amount of oxygen in typical water, and is believed to give the liver added power to process harmful toxins – released from burning fat during exercise or ethanol from alcohol – 60 percent faster. They also energize without caffeine. The new lemon lime and blackberry currant flavors are caffeine-free and contain 20 calories per 16 oz can. The beverages are sold in the U.S. at retailers such as Kroger and Whole Foods Market at an SRP of $12.99 for a variety four-pack, or $41.99 for a case of 12 drinks.
Red Bull Ventures Beyond Energy Drinks
Energy drinks giant Red Bull has introduced its first non-energy beverages. The Organics line includes a caffeinated drink called Simply Cola, and three caffeine-free drinks: bitter lemon, ginger ale, and tonic water, all made with “natural flavors from plant extracts.” The Organics line is available in certain stores and restaurants in San Diego, Calif., and parts of North Carolina, and on Amazon.
Starbucks, Nestlé Join Hands In Major Marketing Alliance
Nestlé and Starbucks have closed a deal that grants Nestlé perpetual worldwide rights to market Starbucks consumer packaged goods and foodservice products outside of the company’s coffee shops. Dubbed a “strategic milestone” for Starbucks by CEO Kevin Johnson, the deal involves the marketing of Starbucks roast and ground coffees, whole beans, instant coffee, portioned coffees, and tea brands, including Teavana. Nestlé’s coffee portfolio in the North American premium roast, ground, and portioned coffee business will be strengthened by the deal, the company aid, and will also lead to global expansion in grocery and foodservice for Starbucks, through Nestlé. About 500 Starbucks employees in the U.S. and Europe will join Nestlé in Seattle and London.
Rockstar Maker A. G. Barr Adds Energy Drink Range For Morning Consumption
Barr Soft Drinks of Scotland says it has found an untapped niche for its energy beverage brand Rockstar: “morning consumption occasions.” The mixed berries and orange clementine flavors of Rockstar First Start are available in 500 ml cans in the U.K. retailing at $1.54 They contain fruit juice and caffeine from “natural sources” that “provide a much-needed morning boost.” The company’s own research found that 70 percent of shoppers said they would buy the products.
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