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Craft brewing contributes
$68bn to US economy
The US craft beer sector
contributed $67.8bn to the US
economy in 2016, with craft
brewers responsible for more than
456,373 jobs, according to the
latest economic impact report from
the Brewers Association.
Nestle vows to deliver
industry leading volume
growth
Leveraging key consumer trends is
the key to growth including Organic,
Functional, Low Sugar and Natural.
Consumer and health
trends force some
products to decline, and
others to ascend
In the face of these trends, new
innovations in food science are still
playing with long-accepted
formulas, trying to keep markets
open and expanding. Researchers
and innovators in the lab working
on functional ingredients and
sweeteners keep finding ways to
further disrupt and stretch out
established categories.
SPINS Trend Report
Highlights Functionality,
Plant-Based Proteins
In a webinar, market research
group SPINS shared its food and
beverage trend predictions, which
included a rise in new specialty
ingredients, an evolution towards
consumers’ health preferences and
a greater emphasis placed on
packaging
Pepsico Recycling
Expands Zero Impact
Fund
PepsiCo Recycling is expanding its
second year of the Zero Impact
Fund, which offers eligible colleges
and universities an opportunity to
bring campus eco-innovations to
life.
HOTSHOT Brings Hot,
RTD Coffee Mainstream
New York-based HOTSHOT, an
innovative company that got an
initial jolt from an appearance on
ABC's Shark Tank, is bringing HOT
canned coffee to consumers.
Advertisement
Beverage giants PepsiCo and Dr. Pepper/Snapple Group are all-too-aware of consumers
waning taste for sodas – and increasing thirst for healthier beverages. Soft-drink makers
responded years ago to changing consumer tastes with diet sodas. But, recently consumer
unease with artificial sweeteners like aspartame, has led to declining sales. According to
industry periodical, Beverage Digest, 2016 sales of Diet Pepsi declined the most ever,
dropping a staggering 9.3%. Michael Bellas, CEO of Beverage Digest, noted, the “beverage
industry has undergone a seismic shift and this shift “signals a fundamental change in what
consumers want from their beverages.
Today, consumers are looking for beverages to offer far more than just satisfying thirst. The
beverage industry’s product response has come to be known as functional beverages. The
first and still number one functional beverage market category is energy drinks. But,
conscious of the precipitous declines in diet soda sales and the uncomfortable fact that
most energy drinks are laden with sugar and caffeine, PepsiCo and Dr. Pepper/Snapple are
introducing revamped drinks featuring natural sweeteners and energy stimulating plant-
based extracts – instead of caffeine. PepsiCo’s Brisk Mate is illustrative. Brisk-Mate is an
energizing iced tea that, instead caffeine, infuses its popular Brisk Tea brand with “yerba
mate” – a species of the Holly family grown in South America, known for its energy and
mental stimulation properties. PepsiCo’s Brisk-Mate is one of myriad of new products
comprising an emerging functional beverage category identified by Euromonitor, a leading
publisher of independent market-research. The emerging category is functional tea
beverages. Euromonitor calculates functional tea beverages will achieve an impressive
10.3% CAGR (compound annual growth rate) through the year 2020 – more than any other
functional beverage category including energy and (bottled) water.
The impressive growth potential of functional tea beverages is no surprise to early investors
in two functional tea beverage start-ups acquired recently acquired for huge multiples of
their revenues. Bai Brands is illustrative. The company started in the proverbial basement
of CEO Ben Weiss’ home in Princeton, NJ in 2009. For more than year Weiss worked to
perfect his antioxidant functional tea beverage. According to WebMD, antioxidants can play
a positive role in reducing cell damage and are helpful in variety of conditions including
arthritis, heart disease and even Alzheimer’s. Bai Brands received its big break when
Costco began carrying its products. Then, building on its success at Costco, Weiss
convinced other retailers to pick up the brand. In mid-2016, Dr. Pepper/Snapple Group Inc.
purchased Bai Brands LLC for $1.7 billion.
On the very same day as Bai Brands was acquired, PepsiCo announced its $200 million
purchase of Kevita Inc. KeVita makes five flavors of carbonated probiotic drinks. According
to WebMD, probiotics are beneficial for overall health, but most particularly digestion.
But, the true holy-grail of functional beverages is the diabetes category. In its earliest
stages, known as pre-diabetes, doctors and nutritionists agree that diabetes can be
reversed with lifestyle changes. Not only can functional beverages play a credible and
beneficial role for consumers with pre-diabetes, the addressable market potential for any
functional beverage targeting the pre-diabetes consumer is enormous.
CEO Murray Fleming of Glucose Health, Inc. (Ticker: GLUC), which manufacturers a
functional tea beverage now sold nationally in the “Diabetic
Supplies” aisle at Walmart, cites numbers from the National
Diabetes Statistics Report published by the CDC (Centers for
Disease Control and Prevention). Fleming points to the 84
million Americans – fully one quarter of the nation –
estimated in the CDC’s 2017 report, to be pre-diabetic.
Building upon its success with Walmart, the company is expanding its product line-up.
Recently Glucose Health, Inc. announced a new line of “fortified” iced tea mixes in the three
most popular flavored iced teas sold in America – lemon, peach and raspberry.
More information on Glucose Health is available at http://glucosehealthinc.com/
Latest News
2019 Industry
Forecast
In The Next Issue
The Explosion Of The
Functional Beverage
Sector
500 billion cups of Coffee are sold each year. It is the
source of 75% of America’s caffeine consumption,
substantially beating sodas and energy drinks.
The newest coffee craze is made popular by a coffee
company out of Seattle, but it’s not who you think it is.
Baristas Coffee Company has partnered with Amazon
Prime to bring White Coffee Single Serve Cups compatible
with the Keurig 2.0 Brewing System to coffee drinking
consumers.
White Coffee has a lighter nuttier roast to it that contains
twice the amount of caffeine as regular coffee does. But it’s
less acidic, allowing more people to enjoy it. Currently
distributed on Amazon and Overstock, Baristas is
expanding its distribution and product lines, taking its
household name into trendy kitchens and offices
everywhere.
White Coffee is a rarity and is developed using a slow and
low heat roast that preserves a much higher caffeine level
than a traditional roast. Because the beans have been
under roasted, white coffee has a lighter taste than
traditional coffee and is described as both neutral and nutty.
This Month’s Top 4
Emerging Spirit Brands
Avuá Prata Cachaça is rested in stainless
steel casks before being hand bottled.
The result is a LUSH and CRISP spirit
with subtle floral notes perfect for exciting
new cocktails,
EXODO The World’s First Ultra-Premium
Flavored Tequila, like the great wines and
cognacs of the world are exceptional for a
reason. After extensive research and
development, we created the world’s
finest sipping tequila.
Hellboy Hell Water is micro- distilled,
hand bottled and styled in the old
traditional process of making Southern
Corn Whiskey in the Smokey Mountains.
Hellboy Hell Water Cinnamon Whiskey is
66.6 Proof, micro distilled in small
batches and uses only the finest corn,
natural ingredients, spring water,
glassware and craftsmanship
The local family tradition of Casa Miel
de Tierra, hailing from the colonial
towns in the South of the state of
Zacatecas,
declares that only local-made, virgin,
white oak wood caskets can be used
for resting Mezcal.