The following is transcript of Beverage Digest's podcast, The Breeze, Episode 4. Duane Stanford invites beverage industry expert (and former Beverage Digest publisher) John Sicher to discuss soda pricing power.
Today we chat with long-time industry expert and former Beverage Digest publisher John Sicher to discuss soda pricing power. The carbonated soft drink category is a significant value driver in the ready-to-drink refreshment beverage market. Products like Coca-Cola, Pepsi, and Dr Pepper are important to retailers in generating store traffic and contributing to overall profitability. We explore how the recent surprising period of pricing growth in the category has evolved and whether this trend will continue in 2023 and beyond.
Plus, Blue Cloud Now Permitted by TTB in 40 States (Map)
April 6, 2023
PepsiCo’s Blue Cloud alcohol distribution subsidiary will not acquire Corwin Beverage’s beer distribution business in southwest Washington state, Corwin CEO Keith Richards confirmed to BD. PepsiCo’s recent agreement to buy back Corwin’s Washington-based Pepsi franchise (see Territory Changes & Deals) sparked speculation as to whether PepsiCo would acquire Corwin’s beer business to distribute Hard Mtn Dew and perhaps...
Product Ships Regionally in May. National Launch in 2024
April 6, 2023
Coca-Cola’s BodyArmor is jumping into the fast-growing rapid hydration sports drink segment with a new product called Flash I.V., the company has confirmed to BD. BodyArmor filed for the Flash I.V. trademark in January and will ship the product in the US regionally early next month by way of some Coca-Cola bottlers, BodyArmor CEO Federico Muyshondt said in an interview. The company will take the product nationwide in January of 2024. The emerging rapid hydration market, being forged by brands including Grupo Pisa’s Electrolit, PepsiCo’s Gatorlyte, and Abbott’s Pedialyte Sport, has reached between...
The following is transcript of Beverage Digest's podcast, The Breeze, Episode 3.
Our guest today is Matt Hughes, Vice President of Incubation for New Revenue Streams at Coca-Cola. Insiders might remember this unit as Venturing & Emerging Brands (VEB), of which Matt is a founding member. He has spent 30 years in the beverage industry, including as an entrepreneur. We talk to Matt about this month's Natural Products Expo West to compare notes on natural product trends, up-and-coming wellness brands, and what it takes to break through in a crowded sector defined by high failure rates and a huge potential upside...
Vying for Attention: Functional Mocktails, Seaweed, Upcycling, Canned Sports Drink, Hard Honey
March 16, 2023
Natural Products Expo West was nearly back to pre-pandemic form this year with more than 3,000 exhibitors and 65,000 attendees. The show, held last week in Anaheim, California, hosts the vanguard of consumer health and wellness trends, mostly in packaged food and beverage. Had you been at Expo West in 1999, you would have seen bottled organic tea brand Honest in its infancy, a dozen years before Coca-Cola would eventually acquire the company in full from co-founder and fair trade tea evangelist Seth Goldman. While many brands at the show will fail, they often still represent trends that will one day go mainstream and generate meaningful growth, usually at premium pricing. As a result, Expo West is a magnet for strategic companies, private equity investors, distributors, and retailers looking for the next big trend or growth brand. With all of this in mind, BD walked the show floor — 10 football fields in size — for three days, spending most of that time in the “Hot Products” zones, where the smallest and newest companies exhibit. Here’s what caught our attention:
Powdered Beverage ‘Headroom is Unlimited,’ CEO Says. Brand Represents Possible Long-Term Disruption for RTD Sector.
March 16, 2023
Liquid I.V., the powdered water enhancer acquired by Unilever in 2020, is closing in on $1 billion in net sales, according to the company. The brand will reach the milestone in the “near future,” the company said, while declining to define that timeframe. The “hydration multiplier,” which promises to hydrate as much as 2.5 times faster than water and is used by some consumers as a hangover remedy, is the largest single-serve drink mix brand on the market with a...
Beverage Digest is walking the show floor along with about 65,000 other attendees at Expo West in California this week. We'll investigate natural ingredient trends that could one day drive the growing and profitable functional packaged beverage market. We're also looking for what's new within existing ready-to-drink segments and product lines, and talking to the founders and leaders who propel the sector.
We'll share our observations in live updates here, so check back through the next couple of days.
Subscribers can email us if there is something specific you'd like to ask about. For those attending the show, feel free to send any noteworthy observations as well.
Little Increase in Retailer Pressure Over Pricing. Promotions Remain Strategic.
March 2, 2023
Input Costs Still Elevated, Tracking Inflation. Volatility Expected.
Independent Coca-Cola and PepsiCo bottlers generally anticipate average annual retail carbonated soft drink pricing growth of between +3.0% and +6.0% during the next five years, an informal BD survey found. US CSD pricing at retail in 2022 reached almost +15.0%. Some bottlers said pricing growth will likely trend in the +7.0% to +9.0% range. Outliers predicted...
March Brings Investment Growth for Coke’s Sports Drink Brands, He Says
March 2, 2023
Bodyarmor-Powerade a ‘One-Two Punch’ Vs Gatorade With Two-Tier Pricing
BodyArmor leaders will look to double the brand’s awareness and make it a household name now that they have completed an integration with Coca-Cola’s Powerade, BodyArmor Sports Nutrition CMO Matt Dzamba told BD in an exclusive interview. “We can't just be a brand that athletes of the Nth degree understand,” he said of BodyArmor. “So we're widening the aperture and speaking to a broader audience, like gatekeepers and active adults.” He also said...