Beverage Spectrum Jan-Feb 2007

J A N U A RY – F E B R U A RY 2 0 0 7

ALSO THIS ISSUE:

ETHNIC MARKETING

BEST OF BEVNET 2006

FANCY FOODS WEST REPORTRetailers Uncork Sales Through Wine Tastings

page 44

CRAFT BEERfinds a home

The Brewing Giants Get Hip to Quality

JANUARY – FEBRUARY 2007 \\ BEVERAGE SPECTRUM 3

Columns

Features 19 // Best of BevNET

40 // BOOK EXCERPT:

Ambitious Brew: The Story of

American Beer

42 // A Drop of Common Sense:

Increasing Sales through

Wine Tasting

44 // NATURAL PRODUCTS

EXPO WEST:

Get your show guide here

50 // FANCY FOODS WEST:

San Francisco Wrap-Up

4 // THE FIRST DROP

Don’t Patronize the Patron

6 // PUBLISHER’S TOAST

Innovation

20 // GERRY’S INSIGHTS

Gold in the Glass

Departments 8 // BEVSCAPE

Smackdown: Hulk Hogan vs.

The Blue Demon

12 // CHANNEL CHECK

New Energy Numbers

14 // NEW PRODUCTS

Ditka Wines and Pebble Beach Scotch.

Who says sports aren’t deep?

48 // PROMOTION PARADE

Year of the Boar.

Special Section

23 // ETHNIC MARKETING:

Best Practices

JANUARY – FEBRUARY 2007 vol. 5 // no. 1

23 34 40

Cover Story 34 // STALKING CRAFT

The Big Three pursue

brewery taste.

BEVERAGE SPECTRUM // JANUARY – FEBRUARY 20074

THE FIRST DROP

Don’t Patronize the Patron

ilingual Cans. Soccer-themed (Fútbal-

themed) displays. Sweet fruit fl avors.

Beverage marketers love to throw these things

around as the keys to attracting a multi-ethnic

audience to your stores.

But that doesn’t tell the whole story. Sure,

language, sports, and tastes are important char-

acteristics to take into account when expanding

your customer base to include the cultural and

ethnic groups who are permanently changing the

face of the country. But no amount of pandering

to customers is going to replace simply know-

ing their buying habits when they approach

your beverage cooler.

So pay attention. Because as our special Eth-

nic Marketing supplement indicates, when it

comes to gathering ethnic consumers, retailers

and marketers have to have respect. Respect

means not belittling ethnic consumers with

products and arrangements that speak at them,

but in fact considering preferences and interests

when it comes to stocking products – in other

words, marketing to them. Respect means not

just thinking of the Hispanic consumer as a soc-

cer (futbal) fan, or thinking of Asians as a broad

group who are only interested in whether it’s the

Year of the Rat, but fi guring out what mix of

ethnic and mainstream products you need to

have to satisfy a group’s needs. It also means that

many well-traveled mainstream customers are

going to want the same products you thought

would only appeal to a specifi c ethnic group.

Run out, and you risk losing them both.

Truly respectful ethnic mar-

keting, you’ll learn, ascribes

to a highly American belief

– that all of us are entitled

to great products at good

prices, and that we can vote

with our feet if we think we’re get-

ting ripped off, or made fun of, or

just plain patronized.

Part of the beauty of marketing is let-

ting people feel like they need something,

and then fi lling that need. What you’ll fi nd

is that when it comes to mainstream mar-

keting and ethnic marketing, the customer’s

susceptibility to being sold a bill of goods is

a lot lower than it used to be, regardless

of the language on that bill.

One group that certainly hates to

be sold a bill of goods are the dedi-

cated beer drinkers, who are show-

ing a greater inclination than ever to assume

that if they don’t watch out, the big beer com-

panies will slip them a watery “Mickey.” But

there’s change afoot in the beer industry, regular

freelancer Andy Murray discovers, as more

buyers turn to craft beer – and more big brewers

do so, as well.

While beer variety is of growing importance,

for wines, variety is at the soul of their success.

Our story on conducting wine tastings for cus-

tomers will help you teach them to appreciate

(read: buy) all that you have to offer.

Until next time, drink up… respectfully.

BEVERAGE SPECTRUM // JANUARY – FEBRUARY 2007�

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Barry J. Nathanson, Publisher

Innovation


ith the resignation of Mary Minnick

from the Coca-Cola Co., the question

of innovation, or the lack of same, in the bev-

erage industry has been on my mind. I started

to think of the innovation that happened at

Coke under Minnick’s watch and the watch

of all of those who preceded her. I started to

realize that her short reign isn’t very different

from the ones that others have had. It’s symp-

tomatic of the malaise Coke is suffering from.

And it’s not just Coke.

Why is it that the big guys don’t seem to have

a clue about creating exciting new products?

Too often, their own offerings have no real posi-

tioning, but when they acquire smaller boutique

brands, they don’t understand their uniqueness

and the consumer suffers by their neglect and

demise. This has to change at the retail level.

I have been privileged to see, over the years,

launches from some of the most creative organi-

zations and brands that grace our industry.

Whenever I see the folks from Arizona, Gla-

ceau, Hansens, Fuze, Honest Tea, Jones, Fiji

and other dynamic companies, I always come

away with the same reaction: They get the

consumer proposition. They understand that the

consumer is changing, and they have rolled

with the changes.

What do they have in common? First and

foremost, they have a willingness to take risks.

Second, they can take an idea from concept

to the shelf faster than you can say “Mukhtar

Kent.” They forgo the researchers, analysts and

consultants and go by their gut. They usually

partner with a supplier that has a stake, an emo-

tional tie-in or at least a strong understanding of

their creation. They see a market segment that

isn’t served and try to fill it. The real innova-

tors don’t believe in “me too” brands. As outsid-

ers, for the most part, in the major distribution

systems, they must expend inordinate amounts

of time and energy to create a hybrid route to

market. So give them an extra look. Innovation

should be rewarded by the industry. To my re-

tailer, distributor and wholesaler readers, learn

from these companies. Embrace their efforts.

Stock their SKU’s. You and your customers will

be better-served for it.


WHAT’S HAPPENING ACROSS BEVERAGESBEVSCAPE

ZERO GROWTH It’s not even two years old, but

the next couple of months will

be a major coming out party for

Coke Zero.

The no-calorie Coke clone

– called “bloke coke” in Great

Britain because of its calculatedly

masculine color scheme – will be

featured in a major ad push during

that most masculine of events, the

NCAA basketball tournament.

The Coca-Cola Co. is also push-

ing a slightly revised black-and-

silver color scheme that plays up

the darker color, as well as a real gift

to the brand, an emphasis on place-

ment next to fl agship Coca-Cola

Classic on shelves and displays.

The idea is to stress the brand’s

closeness to Classic in terms of taste

– one that the company hopes to

back up by adding fountain taps for

Zero in major on-premise accounts

like Wendy’s restaurants.

Zero has shown steady gains:

it’s sales put it in the top 25 skus

nationally, according to AC Nielsen.

With most full-calorie sodas in

decline, cannibalization can’t be as

much of an issue for Coke as the

loss of share to water

and energy drinks.

No, you’re not looking at the new tasting lab for BevNET. This is the new Dry Soda of-fi ce and store in Seattle, Wash., where the new, food-friendly soda brand is trying to counter the notion that CSD’s are only for fast food by serving it up in all kinds of winery-like digs.

SWIRL YOURSODA?

WHAT’S HAPPENING ACROSS BEVERAGES

WORLD OF SODA

PEPSI PACKAGES PERMUTATE Giving former spokescelebrity

Madonna a run for her money

in the quick-change costume cat-

egory, Pepsi Cola will feature a

new package design every three or

four weeks this year.

The frenzied molting will take

place on bottles and cans and

is expected, according to PepsiCo,

to demonstrate the brand’s “fun,

optimistic, and youthful spirit.”

It’s real estate that the company

has realized might be a source of

interest rather than consistency,

according to Dawn Hudson, the

president of PepsiCo’s North

American division.

With advances in packaging

technology, according to Hudson,

sending a new graphic template

is not as diffi cult as it might once

have been; in fact, it offers the

opportunity to get the company in

synch with its bottlers.

loss of share to water


BEVSCAPE

Holy Captain Lou Albano! Even if mixed martial arts are displacing it

on television, there’s just no stopping the progress of pro wrestlers onto

the front of energy drink cans. The last year has seen a team-up between

Socko Energy and barely-ambulatory former pro wrestler Hulk Hogan,

while Coca-Cola has gone full throttle into ethnic marketing with the

launch of sub-brand Blue Demon, which is named for Blue Demon,

a famous masked Mexican wrestler and fi lm star. Each man raised the

profi le of their sport in their own country, the Hulkster through a

bombastic form of all-inclusive jingoism, the Blue Demon by, uh,

wearing a mask. Ah, such innocent times. Anyway, here’s how the two

brand mascots stack up against each other. Betcha neither one could top

Hillbilly Jim or Uncle Elmer….

Hulk Hogan

Rocker Cindy Lauper Son, The Blue Demon Jr.

SOCKO HOGAN ENERGY

FULL THROTTLE BLUE DEMON

VS

Fans of the song “I am a real American”

Green

Famous for playing the Blue Demon, a masked wrestler

Blue (what else?)

Blue Demon

Famous for playing Thunderlips, a wrestler

Mexicans and Mexican-Americans

MASCOT

ODD SIDEKICK

FILM CAREER

DRINK COLOR

ADMIRED BY

NEMESIS

LATER YEARSBuried on television by

career of famous daughter Brooke Hogan

Buried in signature blue mask

Rowdy Roddy Piper, Paul “Mr. Wonderful” Orndof,

Rocky BalboaExczema

THROWDOWN: HOGAN ENERGY VS. THE BLUE DEMON

Beam Wine Estates appointed

Christopher Lynch as chief mar-

keting offi cer.

Beam Global Spirits & Wine,

Inc. named Rory Finlay as senior

vice president and global chief mar-

keting offi cer.

InBev named Glen Walter presi-

dent of Labatt USA.

David G. Burke has joined Pri-

mo Water Corporation as vice pres-

ident for business development.

Brad Redenius, general manager

of Judge & Dolph distributors in

Peoria, IL, has been promoted to

vice president and general sales

manager of Griggs, Cooper &

Company. Both companies are part

of the Wirtz Beverage Group.

The Switch Beverage Company

has named Maura Mottolese

president.

Signature Wines, a specialty wine

marketing company, announced it

has hired Sarah Hundley Garcia

as its new chief executive offi cer.

EXECUTIVE MOVES

FEBRUARY 2007

CONFERENCE CALENDARFEB. 7–11

International Sweetener Colloquium

Tuscon, Ariz.

FEB. 18–20Canadian International Food & Beverage Show

Toronto, Canada

MARCH 4–7Nightclub & Bar

Convention & Trade ShowLas Vegas, Nev.

MARCH 6–8Expo West

Anaheim, Calif.

MARCH 24–27Snack Food Association

SNAXPO 2007 Exhibition & Conference

Hollywood, Fla.

The Coca-Cola Company

named Muhtar Kent as president

and chief operating offi cer.

Heineken USA announced that

John Larkins has been appointed

general manager of the organiza-

tion’s Central Regional Business

Unit. He replaced Chris Steffan-

ci, who is now the general man-

ager position for Heineken USA’s

Northeast Regional Business Unit.

Additionally, Jim Sloan has as-

sumed the general manager role for

Heineken USA’s sister company,

Star Brand Imports.

Patrick Piana has been named

senior vice president, spirits mar-

keting, at Pernod Ricard USA.

Bob Koon has joined Snow

Beverages in the role of COO/EVP.

Other new hires for Snow Bever-

ages include Melanie Randall, vice

president of marketing & promo-

tion and Dennis Connelly, vice

president of operations.

MARCH 2007


TOPLINE CATEGORY

VOLUME

CSD’s$13,315,100,000-1.2%

BEER$8,885,896,192+2.3%

BOTTLED JUICES$3,535,208,000+2.1%

ENERGY DRINKS$�40,518,300+44.1%

BOTTLED WATER $4,585,17�,000+14.4%

SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart

52 Weeks ending 12/31/200�

SPOTLIGHT CATEGORY

52 Weeks ending 12/2/200�leading brands

ENERGY

TEA/COFFEE$1,185,084,000+25.7%

SPORTS DRINKS $1,578,948,000+10.7%

Channel Check january – february 2007

Brand Dollar Sales Change vs. year earlier Dollar Share

Red Bull $506,339,640 21.4% 30.3%

Monster $343,337,890 106.0% 20.5%

Sobe $147,695,189 16.0% 8.8%

Rockstar $117,079,158 35.5% 7.0%

Diet Red Bull $106,776,743 28.0% 6.4%

Full Throttle $98,894,73 770.9% 5.9%

Amp $87,389,165 60.6% 5.2%

Diet Rockstar $43,844,390 60.5% 2.6%

Monster Assault $29,709,186 59.0% 1.8%

Diet Sobe $26,760,874 38.8% 1.6%

Diet Full Throttle $17,662,901 651.3% 1.1%

Lost $13,020,113 -2.0% 0.8%

Boo Koo $12,651,002 96.9% 0.8%

NOS $10,506,029 438.8% 0.6%

Tab $10,134,326 0.0% 0.6%

A look at Convenience Store numbers – believed to account for more than 2/3 the total

amount of energy drink sales – shows some interesting trends in the energy drink cat-

egory. First, if Red Bull and Monster continue to gain in the same way they did last year,

they will be in a virtual tie for the category lead (this assumes Monster doubles its sales

again, a much harder thing to pull off with its rapid growth). The Pepsi System appears to

do better than Coke’s brands in convenience stores – the opposite is true in grocery – but

Coke’s brands are growing much more quickly, particularly Full Throttle. Newer brands

like Boo Koo, NOS, Full Throttle and Von Dutch are all showing major gains, while Lost

is not doing nearly as well as Monster once hoped it would.

Source: AC Nielsen Convenience Track, 52 Weeks through Dec. 2, 2006

Brand Dollar Sales Change vs. year earlier Dollar Share

Red Bull $272,648,900 20.0% 42.6%

Monster $91,962,880 101.1% 14.4%

Rockstar $72,829,680 65.2% 11.4%

Full Throttle $44,401,750 89.5% 6.9%

SoBe No Fear $34,535,050 69.8% 5.4%

Amp $23,070,120 15.7% 3.6%

SoBe Adrenaline Rush $18,353,770 -13.4% 2.9%

Tab $14,486,380 N/A 2.3%

Monster XXL $6,044,066 621.6% 0.9%

Private Label $5,489,377 4,986.1% 0.9%

Rip It $4,994,777 64.1% 0.8%

SoBe Lean $4,621,964 44.1% 0.7%

Boo Koo $2,939,273 70.1% 0.5%

SoBe Superman $2,791,511 N/A 0.4%

Von Dutch $2,585,963 222.5% 0.4%

SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart through Dec. 31, 2006


SPARKLING JUICE DRINKS Dollar Sales Change vs. year earlier

Welchs $16,330,000 5.5%

Martinellis Gold Medal $12,647,480 5.7%

Izze $8,579,900 216.8%

Orangina $5,901,997 9.9%

Private Label $5,095,494 -28.7%

Meiers $4,685,679 -20.9%

Crystal Geyser $2,516,080 -14.7%

Kristian Regale $2,501,675 -7.2%

RW Knudsen $2,423,597 21.5%

Lorina $2,323,996 53.5%

Heading Up: Izze SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart

52 Weeks through 12/31/06

SPORTS DRINKS Dollar Sales Change vs. year earlier

Gatorade $686,848,300 2.6%

Powerade $196,569,800 6.8%

Gatorade Frost $141,512,400 5.0%

Gatorade Rain $119,947,100 16,549.5%

Gatorade All Stars $107,276,700 19.6%

Gatorade X-Factor $94,769,980 -1.1%

Gatorade Fierce $86,481,180 -17.9%

Gatorade Xtremo $16,647,260 -27.8%

Powerade Option $15,532,560 166.2%

Gatorade Ice $14,566,270 -24.6%

Heading Up: Powerade Option SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart


RTD TEA Dollar Sales Change vs. year earlier

AriZona $265,114,000 23.3%

Lipton $162,554,900 193.9%

Snapple $111,799,000 14.1%

Diet Snapple $84,527,000 -3.8%

Lipton Brisk $82,757,750 5.9%

Lipton Iced Tea $53,199,970 27.1%

Nestea $46,576,750 225.3%

Private Label $30,378,470 10.1%

Nestea Cool $17,870,090 -67.8%

SoBe $14,287,110 -3.9%

Heading Up: NesteaSOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart


CSDs Dollar Sales Change vs. year earlier

Coca-Cola Classic $1,903,330,717 -3.2%

Pepsi $1,545,051,466 -3.3%

Diet Coke $1,190,466,616 -0.7%

Diet Pepsi $801,343,193 -0.6%

Mountain Dew $740,117,284 2.2%

Dr Pepper $590,975,395 0.1%

Sprite $581,417,751 -3.1%

Caffeine Free Diet Coke $347,565,661 -8.6%

Diet Dr Pepper $279,164,881 3.9%

Diet Mountain Dew $249,413,097 10.6%

Heading Up: Diet Mountain Dew SOURCE: AC Nielsen/Citigroup Total U.S. food/drug/mass


CONVENIENCE/PET STILL WATER Dollar Sales Change vs. year earlier

Private Label $500,846,500 21.2%

Aquafina $492,977,900 15.1%

Dasani $424,983,100 22.1%

Poland Spring $248,602,500 23.6%

Propel $191,062,900 3.0%

Arrowhead $166,403,500 15.1%

Glaceau vitaminwater $164,156,600 134.7%

Deer Park $134,693,300 24.8%

Dannon $125,402,000 -22.2%

Ozarka $95,760,650 18.8%

Heading Up: Glaceau vitaminwaterSOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart


IMPORT BEER Dollar Sales Change vs. year earlier

Corona $480,572,864 6.2%

Heineken $297,890,432 8.2%

Corona Light $122,099,520 10.7%

Tecate $83,593,464 6.2%

Modelo Especial $53,852,856 30.8%

Heineken Light $50,751,208 2,973.9%

Labatt Blue $48,339,740 -5.7%

Becks $48,046,452 6.3%

Newcastle Brown $46,777,432 18.6%

Guinness Draught $46,557,664 8.5%

Heading Up: Heineken Light SOURCE: Information Resources Inc. Total food/drug/mass excluding Wal-Mart



NEW PRODUCTS Spirits

From Mystique come Metropolitan Martinis, a line of ready-to-drink cocktails that come complete with the Martini glass. The added packaging is intended to take “snobbery” out of the cocktail experience without forsak-ing taste and sophistication. Made with all natural ingredients and premium imported vodka, Metropolitan Martinis are available in four fl avors: cosmopolitan, green apple, and decadent chocolate (all 40 proof), as well as the classic vodka martini (60 proof). They are available in two packages: a cylinder with two pre-mixed 200 mL. martinis in acrylic martini glasses (retailing for $11.99-$13.99) and a party tray of 12 (for $6.99 per cocktail). For more info, contact Mystique at (212) 279-3115. This product is currently available in Florida, California, South Carolina, New York, New Jersey, Connecticut, Massachu-setts, Nevada, Minnesota and Georgia.

Further intertwining that fun couple, golf and booze, A.V. Imports has launched Peb-ble Beach Single Malt Scotch Whiskey. Pro-duced by the renowned Lombard family in Speyside, Scotland, and promoted through an exclusive agreement with Pebble Beach Company, owners of America’s most fa-mous golf resort, the product is matured for 12 years in hand-selected American White Oak, which imparts notes of cedar. Retailing at $69.99 for a 1 L. bottle, Pebble Beach is available nationwide. For more information, contact A.V. Imports at (800) 638-7720.

Long Tail Libations, Inc., a subsidiary of Anheuser Busch, has released Jekyll & Hyde premium liqueur. This liqueur combines two distinct elixirs – wild berry Jekyll and lico-rice-fl avored Hyde – into a dichromatic shot. Jekyll is 60 proof, while Hyde is 80 proof. This product is available nationwide and is line-priced with other premium liqueurs. For more information, contact Anheuser Busch’s representatives at (212) 999-5585.

From Centerra Wine Company comes Kajmir, a blend of premium brandy, fi ne vodka and warm vanilla. Whether served

straight, chilled, on the rocks or mixed to cre-ate a “signature” cocktail, Kajmir’s unique fl avor characteristics are versatile enough to create a different, yet distinctive experience very time. Kajmir is also available at major retailers across the country in 750 mL., 375 mL. and 50 mL. sizes, with a suggested retail price of $18.99 for 750 mL. For more infor-mation, call Centerra at (585) 396-7193.

Energy Drinks

This fall, Fever, the fi rst ever libido stimulant beverage, launched in major cities. A blend-ed ginger-vanilla fl avored liquid that comes in a 14 oz. aluminum canister, Fever contains a proprietary combination of eight organic herbs that the manufacturer claims will en-hance sexual performance and pleasure, and reduce recovery time between sexual intervals, including Goat Weed, Clavo Huas-ca, Panax Ginseng, Green Tea Caffeine, Ca-tuaba, Daminana Leaf, Suma and Maca.This product is available for $35 for a 12-pack. For more information, call (212) 584-4286.

Function Drinks, a Los Angeles-based func-tional beverage company, has launched Al-ternative Energy, an energy drink designed to have a time-release system to ensure a smooth, consistent boost over an extended period of time. With a light tangerine taste, this product includes energy additives muira puma, catuaba, guarana and yerba mate. Alternative Energy comes in 16.9 oz. PET bottles and is available in stores all across Southern California for approximately $2.95 per bottle. For more information, contact Function Drinks at (310) 725-9050.

Compressing a lot of caffeine into a tiny package, Zipfi zz Liquid Shot is a 4 oz. serv-ing that delivers a big energy boost. The Liquid Shot joins the growing line of Zipfi zz products that includes the original Zipfi zz powder form. Zipfi zz Liquid Shot is available at select Costco Wholesales stores and other retailers. For more information, contact Zip-fi zz at (847) 267-9660.

Mr. Re Restorative Beverage

Snow: New Flavors

Vignette

Gleukos

Metromint: Orangemint and Lemonmint

The Republic of Tea: Pomegranate Green Tea

Steaz Energy

Auna Kiwifruit Juice

Bazza High Energy Tea

Honest Tea Pomegranate White Tea w/Açai

Mojo Energy Drink

Syzmo Energy Drink

Bravo Blenders

Rehab Recovery Supplement

Sweet Leaf Tea Half and Half

Bombilla Gourd

WaterPlus

Damzl Fuel

Regatta Ginger Beer

Lambda Organic Fruit Juices

Bolthouse Farms Bom Dia

G Pure Energy

Sierra Mist Cranberry Splash

Sambazon Purple Power

From November 20 to press time. To see reviews, log on to www.BevNET.com

NEW DRINK REVIEWS

Juice

Naked Juice recently launched two additions to its Superfood lines: Gold Machine, which is boosted with 11 vitamins and minerals including green tea, vitamin E, and grape seed extract for a cosmeceutical benefit to improve skin health and boost cellular re-newal. Gold Machine is a blend of golden kiwi, pineapple, yellow passion fruit and banana. Purple Machine, which contains purple fruits including purple plum, concord grapes and the antioxidant-packed açai ber-

ry is boosted with vitamins and minerals like vitamins A, B5, C, E and selenium, choline and grape seed extract. Also, in Naked’s Well Being Family, Black Currant, is boosted with vitamin C, echinacea, rose hips and acerola cherry for its immunity-boosting powers. All three new flavors have a suggested re-tail price of $2.99 for a 16 oz. bottle, and are available nationwide. For more information, call Naked at (626) 633-8384.

Florida’s Natural Growers has launched a line of Earth’s Own Organics refrigerated juices. These blended, not-from-concen-trate juices carry the USDA seal for organic products and are packed in 1 L quick-chilled bottles. The following flavors are available: Orange/Mango, Orange/Peach, Apple/Peach, Apple/Cranberry and a 15 percent juice Lem-onade. The products are available nation-wide at varying price points. For more infor-mation, contact Florida’s Natural Growers at (800) 237-7805.

A favorite throughout Europe, Lambda Organic Juices made their U.S. debut in late 2006. Lambda’s line of organic juices are available in 1 L. and 250 mL. sizes in five fla-vors: Mango/Orange, Peach/Apple, Grape, Orange and Apple. Created in the fields of the Canary Islands, the Lambda’s fruits are nurtured under strict organic guidelines. They are offered in elegant, “blossoming” glass bottles and the juices are shelf-stabled for 18 months. They will be available nation-ally at health food and specialty retailers in-cluding Whole Foods and HEB. A 1 L. bottle will cost $3.99. Lambda juices are imported exclusively by Espana Brands North Ameri-ca and distributed through Kehe. For more information, call (866) 9ESPANA.

Dairy

From Odwalla, Inc., comes Odwalla Soy Smart, a new soymilk beverage to its nu-tritional lineup. Odwalla Soy Smart will be available to consumers in Chai, Chocolate and Vanilla varieties. Boasting a distinctive combination of soy protein, Omega-3 DHA and calcium, Odwalla Soy Smart contains nutrients essential to daily well-being and is an excellent source of calcium for bones



and teeth. Packaged in 15.2 oz. grab-n-go recyclable plastic bottles at a suggested re-tail price of $3.29, Odwalla Soy Smart will be available beginning April 2007 in super-markets and natural food stores throughout the country. For more information, contact Odwalla at (800) ODWALLA.

Wine

Mendocino Wine Company recently teamed up with football Hall of Fame player and coach Mike Ditka to produce a new line of wines. Mike Ditka Wines come in a pair of varietals. Mike Ditka Kick Ass Red is a re-serve-quality bottling combining Zinfandel, Syrah and Petite Sirah, the red varieties that excel in Mendocino County’s rugged hillside vineyards. Suggested retail is $49.99. Mike Ditka Chardonnay ($17.99) and Cabernet Sauvignon ($19.99) are composed of high quality selections, while Ditka’s “Da Coach” Pinot Grigio and Merlot are styled and priced for everyday enjoyment at $11.99. All three labels feature a simple caricature of “Da Coach.” All are available through retailers in the Midwest and around the country. For more information, call the wine company at (707) 433-8484.

Beer

This January, after tallying votes from beer lovers nationwide, the Boston Brewing Co. added Honey Porter to its product line. Samuel Adams Honey Porter is a full-fla-vored, full-bodied English porter with a substantial roasted malt character, offering a smooth, rounded finish. This beer is brewed with traditional English Ale hops and is dry-hopped with English Goldings, known for their spicy aroma and distinctive, earthy flavor, as well as Scottish heather honey. The new product will be part of the Samuel Adams Brewmaster’s Collection, available nationwide year-round, with a suggested retail price of $12.99-$13.99, and in 6-packs for $6.99 to $7.99.

United States Beverage, L.L.C., has be-gun to distribute the first Nicaraguan Beer ever widely imported into the United States,

Toña Cerveza, which is brewed in Managua, Nicaragua by Compania Cervecera De Nica-ragua, S.A. Toña has an alcohol content of 4.6 percent by volume. The golden lager’s unique, authentic taste comes with the tag-line, “drink exotic.” Painted bottles and yel-low and black packaging give Toña a con-temporary, streamlined look. Tona will be available nationwide for a suggested retail price of $6.99. For more information, contact U.S. Beverage at (212) 584-4317.

Spain’s premium leading beer, Mahou, is being launched by Eagle Brands in the U.S. this month. Mahou is making its debut in Mi-ami, Fla., and will soon be available through-out the nation. Mahou is available in three specially designed long neck bottles, each depicting one of the celebratory icons of Spain – a flamenco dancer, a matador and a bull. Mahou is sold in 6-packs, 12-packs and 24-bottle cases. For more information about Mahou, please call (305) 567-0821.

Peak Organic Beer is now available in convenient 12-packs at retail. One of Amer-ica’s very first organic beers, Peak Organic is made with the highest quality ingredi-ents and is characterized by a distinctively refreshing taste. Peak is available in three flavors: Pale Ale, complex and hoppy; Nut Brown Ale, smooth with a nutty finish; and Amber Ale, lively with a subtle toasted char-acter. The 12-pack features four of each fla-vor and is also available in the popular Pale Ale flavor. This product is being bottled in Portland, Maine, and is available in Maine and Massachusetts. For more information, call (781)648-7157.

Denver-based Flying Dog Brewery has a full lineup of new seasonal and experimen-tal beers, which will include a new summer seasonal, two Wild Dogs and a new addition to their high gravity series, Double Dog Dou-ble Pale Ale. Double Dog will be available in four-packs hitting retail stores in April. The Flying Dog pack has also started to brew 2007’s first Wild Dog release, which will be a “whiskey barrel-aged” version of the popu-lar Gonzo Imperial Porter, and is due to hit shelves in the early Spring. The second Wild Dog release is scheduled to be unveiled at this year’s Great American Beer Festival and

will be available at retailers in November. These products are available in 45 states and are as yet not priced. For more information, contact Flying Dog at (303) 717-5832.

Water

Soma Beverage Company, LLC has intro-duced two new varieties to its Metromint line of mint-flavored waters, Orangemint and Lemonmint. These new varieties were developed with mainstream flavor profiles in mind, combining the hallmark mint taste and cooling sensation with citrus fruits. Both are made with pure water and no preserva-tives, sweeteners or calories. The two new flavors are available in 500 mL PET bottles. To emphasize the company’s SKU variety, each flavor of Metromint is now designated

with a numerical chill factor, from mildly cool Orangemint (-3) to super cool Peppermint (-9). These products will retail for between $1.39 and $1.69 per bottle, and are available in stores nationwide including Whole Foods Market, Wild Oats, Safeway Naturals and nu-merous other natural and specialty food out-lets. For more information, call Soma Bever-age at (415) 979-0781.

From Glaceau, the makers of Vitaminwa-ter, comes Charge, the latest variety of the Vitaminwater line. Charge is a nutrient-en-hanced lemon-lime product containing key electrolytes plus b vitamins for performance enhancement, but with no sodium. Charge will be available in 16 oz. PET bottles and is line-priced with other Vitaminwater prod-ucts. For more information, contact Glaceau at (718) 746-0087.



his is safe to say: 2006 did not see that

launch of any beverage mega-brands.

That’s not all that bad, though. Usually, the

launch of a mega-brand indicates the inclusion

of something mega-bad.

What we did see – and what our famous Best

of BevNET voting shows – is that beverage ex-

ecutives are starting to understand the new play-

ing field.

Sure, there were plenty of ham-handed line

extensions and the usual cast of me-too energy

drinks. But there were also plenty of companies

getting on board with new tea flavors, new in-

gredients, and new looks. As an example, check

out Pom Tea and Arizona Green Tea Energy, two

products in which companies whose success is

based on hot ingredients, like pomegranate juice

and green tea, weren’t afraid to try to innovate in

other, equally fast-moving categories, with out-

standing results.

Similarly, decisions about brand purchases

and licensing deals finally showed a real incli-

nation to create partnerships that could harness

the innovative reputations of both brands – Pep-

si with Ben & Jerry’s, Coke and Caribou Coffee

– rather just keep the lawyers busy.

BevNET user voting reflected respect for big

companies, which is no surprise given their po-

tent marketing budgets. But it’s also indicative

of a positive direction in the industry that, for

the most part, BevNET’s own set of “deciders”

weren’t too taken aback by the amount of sup-

port the big guys received. That’s not to say our

own choices weren’t a bit different. They were.

Want to see them? Look no further….

We’ve discussed this wondrous bever-age enough over the past year, but here’s the recap: not too sweet, a nice kick, an edgy glass bottle package and innovative, trendy ingredients. It’s up to the market-ers to really make this product a phenom-enon.

Açaí has quickly become the popular in-gredient in the beverage industry, and Sambazon’s Organic Açaí was the best of the crop for 2006. This pure blend of açaí and blue agave is exotically refreshing, but simple: only five ingredients go into the blend. It’s no wonder companies like Honest Tea and Healthy Beverage come to Sambazon for the açaí used in their drinks.

Oh, Tangerine Green, with your deli-cious, low-calorie sweetener, we hardly knew ye! Why, why, didst thou tempt us with citrus-y, green tea goodness and then disappear? You know it’s great stuff when we salute a diet drink in a highly competitive field. Honest Tea might have discontinued it, but it sure did raise the bar for lo-cal sweet tea.

Everyone’s talking about this stuff, and with good reason – POM took a product that was already going to draw major in-terest and gave it a package that’s not just re-usable, but also re-advertises itself. It’s not like it’s the most innovatively-shaped or designed product, but it has both im-mediate and long-range value and it sure looks nicer than the stadium “souvenir cup.”

Sure, this one could fall flat in terms of its health claims. But it looks pretty good and it tastes pretty good. If nothing else, they could turn around and market it as an energy tea and not do half bad. And if people start buying the story, look out!

For no other reason than this product pulled perfect judo on the press, easily forcing the media to take on all the trou-ble of advertising it for free. P.T. Barnum couldn’t have done it any better.

Continuing its winning approach to locking down innovative brands, these two acquisitions give PepsiCo access for both the High-End Juice and boutique CSD segments for relatively short money. Naked bolsters a Tropicana property that has been struck by ennui of late, while Izze is an immediate defense to the loss of school vending. Brilliant strategy from a company that really knows how to bolt on brands.

For the second year in a row, an energy drink hybrid has taken the title; this time, AriZona combined its potent mix of packaging élan with sweet green tea know-how to create a beverage that’s viable up and down the consumer food chain. From health nuts who key in on words like green tea and pomegranate to full-on energy fiends, this is a drink that should have wide appeal.

Readers' Choice: Red Bull Energy Drink 12oz

Readers' Choice: Odwalla Pomagrand

Readers' Choice: Cocaine Energy Drink

Readers' Choice: Snapple White Tea

Readers' Choice: Ben and Jerry's Milkshakes

Readers' Choice: Pepsi Buys Naked Juice and Izze

Readers' Choice: Dr Pepper Berries n' Cream

Best Energy Drink: AriZona Pomegranate Green Tea Energy

Best New Non-Carbonated Drink: Sambazon Organic Açaí

Best New Packaging: POM Tea

Best New Oddball Product: Cocaine Energy Drink

Best New Carbonated Drink: Sol Maté

Best New RTD Tea: Honest Tea Tangerine Green

Best New Coke/Pepsi/ Cadbury-Schweppes Product: Enviga

Biggest News Story: Pepsi Buys Naked Juice and Izze

Readers' Choice: POM Tea

allen flavors, inc.

SPONSORED BY


GERRY’S INSIGHTS

Longtime beverage-watcher Gerry Kher-mouch is executive editor of Beverage Busi-ness Insights, a twice-weekly e-newsletter covering the nonalcoholic beverage sector.

in theGold

t’s looking like heady times again in the craft

brewing business. Maybe too heady?

Certainly the numbers are impressive, with

the segment roaring into the new year up well

into the double digits as consumers glom onto

pale ales, porters, hefeweizens and other styles

not long ago viewed as too obscure for prime-

time.

There’s little question that the influence of

craft styles is far more pervasive than a dozen

years ago, when the first craft boom crested.

Back then, only a tiny minority of taverns and

restaurants offered a range of draft styles, and if

you stopped into a strange place and found Sam

Adams Boston Lager or Sierra Nevada Pale Ale

on tap, that was enough for you to count your-

self blessed. These days, multi-tap houses seem

to be the rule, certainly among new openings.

That’s all testimony to the increasing culinary

sophistication of Americans, and certainly sug-

gests that the image of beer itself remains ex-

ceedingly healthy, even if the marketers of some

major brands may perceive the segment to be in

trouble (hint: look at your TV ads, guys).

So we’re living in this exciting period when

brands are proliferating, styles are adventurous

and everyone, from big Boulevard in Missouri

to tiny Saint Arnold in Texas, has embarked on

an expansion. It’s great for consumer choice, and

if you subscribe to the trendy “long tail” theory,

there seems no reason that the good-beer seg-

ment can’t continue to profitably splinter into

ever-tinier and tastier niches.

Still, some of us with longer memories are

haunted by the spectre of the first microboom’s

unraveling a decade ago (even if, contrary to

many impressions, the shakeout didn’t result in

an overall decline in craft beer sales, just a flat-

tening). Certainly, there are parallels that make

me wonder whether history may be about to

repeat itself: the not-quite-rational exuberance,

the ratcheting up of capacity, the headlong rush

into new, far-off markets. It’s reassuring to note

that there are some differences from that experi-

ence.

First, we haven’t seen a proliferation of me-

diocre and novelty beers (anyone remember

Wanker Beer?) offered by opportunists who’d

gravitated to the business for its perceived cachet

and get-rich-quick potential (they’re too busy

making energy drinks, I suppose). Nor have we

seen misguided and perhaps intentionally con-

fusing entries from major brewers – remember

“stealth” brands like Plank Road Icehouse and

“fake” imports like Azteca? – or the marketing

assaults on contract-brewed craft beers and “bit-

ter beer faces.” Those trends left store shelves

cluttered with brands of dubious provenance

and stoked a consumer backlash that tarred the

segment for years. To their credit, the major

domestic players have focused on allying them-

selves with authentic craft brewers (Anheuser-

Busch), carefully nurturing their in-house craft

brands (Coors, with Blue Moon) and not giving

their wholesalers grief over their efforts to be

represented in this thriving segment.

Still, I worry that some of the lessons learned

last time around are being forgotten. The shake-

out left many of the survivors swearing to put

aside national expansionist ambitions and in-

stead tenaciously defend their regional base,

expanding only where they could adequately

support their brands. Not everyone, they ac-

knowledged, can be a national or super-regional

brand like Sam Adams, Sierra Nevada or Fat

Tire, nor is that necessary in order to prosper.

So when I see terrific brands like Stone and

North Coast (from California) or Goose Island

(from Chicago) showing up in my New York

market, the consumer in me exults even as the

businessman in me worries. Though I certainly

believe the current resurgence is sustainable, I do

wish craft brewers would take it a wee bit slower.

While I don’t expect American consumers to roll

back their tastes, there is a limit to available shelf

space, not to mention truck space in a wholesale

segment that is consolidating, not expanding.

Nor is it out of the question that an economic

correction could cause people to cut back on

splurging. In that environment, with shelf space

shrinking and pricing under pressure, not every-

one can be a winner. Since most everyone out

there today is brewing interesting beers that de-

serve the local loyalty they’re winning, I’d sure

hate to see the land grab’s losers jeopardize their

core business.

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A SPECIAL SECTION FROM

JANUARY – FEBRUARY 2007

Courting EthnicCustomers

By Lisa Terry

JANUARY – FEBRUARY 2007 \\ BEVERAGE SPECTRUM 23SPECIAL SECTION

BEVERAGE SPECTRUM // JANUARY – FEBRUARY 200724 SPECIAL SECTION

Hispanic beverages at Texas’ Car-

nival stores used to be stocked alongside foods

popular among Hispanics. But recognizing

the changing demographics of many of

its stores, merchandisers relocated them to

the beverage section.

“Beverages meant so much that we pulled

them out of the ethnic-Mexican aisle and put

them with regular soft drinks in 24-foot to 36-

foot sections,” says Bob Highsmith,

Senior Vice President of Merchan-

dising at Minyard Food Stores/Car-

nival Supermarkets. “Sales have

mushroomed,” leading the retailer

to expand the strategy.

Such success stories are mounting

as retailers respond to the increasing

diversity of the US population. By

2040, half the US population will

be Hispanic, Asian-American or

African-American; some markets

are already there. Stocking the right

assortment of beverage brands,

fl avors and sizes is key to both at-

tracting ethnic shopper and satisfy-

ing the broadening palates of the mainstream

consumers they infl uence.

Many retailers are thriving by creating envi-

ronments that make ethnic customers feel com-

fortable by catering to their tastes and lifestyles

and offering authentic products and assort-

ments. Beverages are critical to that formula.

Among Hispanics, for example, beverages “are

a category the Latino consumer buys every time

they come into the store,” says Mario Chavez,

VP of Latino Merchandising at Minyard Food

Stores/Carnival Super Market, Coppell, Texas,

which serves the chain’s largely Mexican consum-

ers. “There is a group of items any store must

have” he says, to satisfy the Hispanic consumer

the chain targets, including juices, nectars, min-

eral water and authentic soft drinks.

Generally speaking, mainstream retailers tend

to be lower on the learning curve in fi guring

out how to win ethnic customers. Those failing

to fully embrace these groups, however, risk los-

ing sales to those who those who do.

Diversity Wake-Up Call

Manufacturers devote signifi cant resources to

learning about customers, using syndicated

data to shape ethnic marketing programs with

point-of-purchase materials, promotion and ad

dollars, and events sponsorship to create excite-

ment around their products.

Many retailers have been less comprehensive.

According to the Coca-Cola Research Council’s

2002 report, Grow with America, Best Practices

in Ethnic Marketing and Merchandising, retailers’

ethnic marketing is driven at the local level rath-

er than by the entire organization, and programs

lack continuity and are based on short-term

promotions and events. Their investment in

ethnic marketing tends to be limited and typical-

ly focuses on advertising and promotions, rather

than on understanding cultures. Yet

it’s only from a true understand-

ing of the customer that retailers'

courting of ethnic customers comes

off as truly authentic.

That’s starting to change, how-

ever, as retailers realize the potential

upside of courting ethnic consum-

ers more comprehensively. Accord-

ing to the Coca-Cola report, mar-

ket baskets of ethnic customers are

20 percent larger than those of

non-ethnic consumers, and they

shop more often—two to three times

per week.

“Manufacturers used to come in with pro-

grams that were Hispanic-oriented and retail-

ers would look and listen,” says Paul Castillo,

executive vice president of ViVA Partnership, a

Miami consultancy. “Now retailers go to manu-

facturers and say, ‘here is what I want in my His-

panic plan, how do you fi t in?’”

Walgreens, for example, customizes stores to

match the demographics of the neighborhood,

creating a program that has won widespread

admiration. It includes bilingual associates

Since its inception in 1988, Aloecorp has produced the fi nest, most biologically active Aloe vera ingredients, supported with over $13 million in scientifi c and clinical research. As owner of the fi rst com-mercial Aloe vera farm in the USA, Aloecorp is vertically integrated – growing, harvesting and processing its own Aloe vera plants on its farms in Texas, Mexico, and China.

Frequently referred to as the “healing plant,” Aloe vera is one of the oldest medicinal plants in recorded history. In Hispanic, Asian and African cultures, ingesting Aloe vera as a beverage has a long tradition of folk remedy use handed down from one generation to the next.

In numerous Hispanic surveys, the use of Aloe was consistent across all Hispanic sub-cultures, age groups, acculturation stage, education-al and income levels. In Asian countries, especially Japan and South Korea, Aloe vera is already a popular ingredient in juice drinks and yogurts. For retailers creating a “destination” in their stores for Hispanic and Asian consumers, beverages developed with authentic ingredients such as Aloe vera would serve as a reminder of culture, tradition, his-tory and family—establishing a strong emotional connection between the consumer and the retailer

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and the stocking of stores with products

that index highly to African-American or

Hispanic consumers, focusing on the value of

those products in its ads.

Data is fueling such efforts. “We’re get-

ting more and more requests from retailers to

subscribe or buy data,” says Thomas Neal,

Nielsen product manager for ACNielsen’s Tar-

get Track. “It’s always been a fi nancial issue, but

now they see a cost/benefi t.”

Target Track decomposes sales transactions

into non-ethnic and ethnic sales. A sister service,

Spectra Marketing Systems’ HispanIQ, breaks

down this data by brand. Syndicated data, for

example, detected the successful entry of Grupo

Industrial Lala SA’s LaLa milk products from

Mexico into U.S. regions with large Mexican

populations, likely displacing domestic brand

purchases in favor of a long-familiar name from

south of the border.

A Rising Tide

Ethnic customers aren’t the only ones at stake.

Mainstream Americans are drawn to new fl a-

vors, natural and healthy ingredients and en-

ergy drinks – all of which can be sated by cross-

marketing ethnic beverages.

Japanese green tea maker Ito En, for example,

entered the U.S. market in 2001 the way many

non-U.S. beverages do, in ethnic groceries, but

with an eye to the mainstream. “We felt with

changing lifestyles, there was more interest in

wellness, health, and Pacifi c cuisine,” says Rona

Tison, Ito En's Vice President of Corporate

Relations. Ito En next penetrated natural

foods chains, and today its unsweetened Teas’

Tea is sold everywhere from supermarkets to

Target. The takeaway: just because a beverage

is ethnic doesn’t mean that’s the only quality to

emphasize in promotions.

Similarly, with retailers’ help, Americans are

discovering coconut water as a natural sports

drink and aloe vera water as a digestive health

aide, says Richard Ross, vice president of mar-

keting at Tampico Beverages.

Another US trend is the desire to “trade up”

to high-end brands. Chinese brewer Tsingtao is

tapping this to extend beyond Chinese buyers,

aiming at the 35-and-over crowd with new pack-

aging and a line extension. Retail-level strategies

include promotions pairing the beer with high-

end authentic Chinese foods.

Sampling events are a key strategy to intro-

duce mainstream customers to ethnic beverages.

Asian grocer H-Mart, a 22-unit chain oper-

ated by the Hanahreum Group in Lyndhurst,

NJ, uses samplings heavily to promote Asian

juices and bottled teas, boosting purchases

by Asian and non-Asian shoppers alike, says

Jimmy Kim, manager.

Pairing beverages with complementary foods

not only drives sales, but enhances the retailer’s

reputation as a source of new tastes. At a Whole

Foods in Las Vegas, for example, chilled Teas’

Teas were paired with equally subtle Belgian

wafer cookies for a tasting. Integrating ethnic

goods with mainstream – such as bottled ethnic

drinks in the regular beverage aisle – supports

the cross-over effort.

Ethnic Marketing Best Practices

Retailers seeking to truly capitalize on the poten-

tial sales boost of ethnic beverages can tap these

best practices honed by ethnic and mainstream

retailers alike:

1. Know and use demographics. Step one

to any ethnic marketing program is understand-

ing customers. Beyond gut feel, data can clar-

ify who is shopping in a trading area and how

a neighborhood is trending. Detail is essential;

knowing there are a high percentage of Asian

customers, for example, isn’t enough. Are they

primarily from China? Korea? Another key

is acculturation; fi rst-generation immigrants

may have very different purchase patterns

than second or third.

For example, least acculturated Hispan-

ics prefer Modelo Especial, Carta Blanca and

Corona beer, according to ACNielsen, while

more acculturated prefer Sam Adams, Budweiser

and micro-brews.

Anheuser-Busch is addressing acculturation

by marketing to more Latinos in English in

2007, says Henry Dominguez, vice president

of Latino marketing, as well as creating adver-

tising aimed at the diverse countries of origin

in East coast urban areas. “Relevance is critical

as you get into different cultures and countries,”

Industry veteran Big Red, LTD., is parent company and manufacturer to a portfolio of brands now as diverse as the US consumer base. Its widely-recognized fl agship Big Red brand is celebrating its 70th anni-versary this year.

Big Red, already highly regarded throughout Texas, is a growing fa-vorite among Mexican-Americans moving throughout the US. Big Red’s unique fl avor and red color transcends three generations, appealing to even the most acculturated consumer. Big Red, LTD. borrowed equity from its recognizable core translating it into line extensions including Big Red Vanilla Float and Big Pineapple. Both brands, appealing in color and fl avor to the Hispanic consumer, launched successfully and deliv-ered double-digit increases in markets where retailers are clamoring for Hispanic shopping dollars, such as Los Angeles, Chicago and Denver.

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Dominguez notes. “You need to be respectful,” and make an emotional

and cultural connection.

Ongoing analysis is key to picking up on trends. For example, “many

areas in which African Americans live tend to be transitional,” with

growing Hispanic and Asian populations, says Sam Chisholm, veteran

marketer and president of Chisholm Consulting. Tastes change, too;

whereas once African Americans preferred sweeter, grape and red bev-

erages, “we’re tending to become closer in style to our mainstream

counterparts,” Chisholm says.

Syndicated data may not be enough, however; many ethnic mar-

kets don’t participate, so results are skewed toward ethnic purchases in

mainstream stores. Another strategy is buying data about beverages in

customers’ countries of origin.

2. Observe. Ethnic market executives have their reasons for not shar-

ing this data; they thrive by understanding their customer and creat-

ing an authentic experience, from the advertising to the in-store design

to the music to the assortments. Retailers need to shop ethnic markets

and urban, multicultural stores and note the beverage brands, presenta-

tion, signage and in-store feel.

“There is a signifi cant variety of canned and bottled juices made from

fruits one never sees in this country imported from Latin America or

manufactured in the U.S.,” says Soto. “You could fi ll up a 23-foot aisle,”

and ethnic markets often do. “Go to independent supermarkets, look at

the space that is dedicated to ethnic beverages, and you’ll quickly have

a sense of the potential volume movement these products have that

you’ll never see in the syndicated scanner data.”

Store visits can teach other lessons. For example, “often the shopper is

not who they expect,” says Chisholm. In African American communities,

for example, “It’s not necessarily the mother – it could be the daughter

or someone else doing the shopping,” whose brand and taste preferences

may be quite different.

Equally key is listening to customers and accommodating their

expressed needs, adds Poul Heilmann, Senior Vice President of Market-

Brazil Gourmet Premium Nectars, Nectar Teas and Açai are hot items for the rapidly growing Hispanic population in the US. As Hispanic buy-ing power increases, so does the popularity of our products. To ensure our success, we have focused our marketing efforts to reach the re-gions where the Hispanic population has the largest concentration and impact, such as the West Coast and the Southwest.

Our success with the culturally diverse Hispanic community is due to the true and authentic taste of our products. Unlike other brands, our nectars are not made from concentrate and they are not blended with any other fruit juices. Our 1 L. packaging is bilingual, allowing retailers to cater to multi-ethnic customers.

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ing and Strategic Planning for Minyard Food

Stores/Carnival Super Market.

3. Collaborate. The best ethnic marketing com-

bines the efforts of manufacturers and retailers

for better-funded, more impactful campaigns.

“We have a good pulse on what our customers

find exciting and interesting, and manufactur-

ers are interested in understanding and working

with us,” says Carnival’s Heilmann. “We work

with them under their objectives and our objec-

tives, and tailor programs to fit.” A campaign

with DelValle, for example, boosted the juice’s

sales among Latino and non-Latino consumers.

When retailers are more invested, “there’s still

an event, but you’ve also got the four weeks lead-

ing up to it in the store, with TPRs [temporary

price reductions], displays. There is an authen-

ticity when it’s retailer driven,” says ViVA’s Cas-

tillo. He urges retailers to create a playbook for

the year, creating in-store programs and spon-

sorships around pertinent ethnic events.

Ethnic events successfully used by Tam-

pico include a mobile bus tour that visits re-

tailer lots, playing music and offering samples,

giveaways, and in-store displays and promo-

tions. Hispanic- or African-American “ambas-

sadors” and bilingual signage helped convey

the message, boosting Tampico sales. Multi-

packs with bilingual coloring books and sales

contests have also worked, Ross adds.

Wholesalers and distributors can also rec-

ommend shelf sets and facilitate events. UK

Imports, in Orlando, Fla., helps retailers shape

ethnic sections according to local demograph-

ics. For example, the company has incorporat-

ed mainstay Scottish soda Irn-Bru into ethnic

sets where there are ex-pats and high British tour-

ism. A recent tweaking moved Irn-Bru, famous

for its unique orange color, to the top shelf.

“It gets a little more attention for the product;

the light hits the bottle and it brings the item

out so customers notice it,” says Mike Dar-

byshire, president.

4. Define and commit. There is no clear for-

mula matching level of penetration of a particu-

lar ethnic group to the amount of play a store

should devote to ethnic beverages. But what

is clear is that whatever level is determined

appropriate requires 100 percent commitment

from management on down.

Carnival’s relocation of ethnic beverages is one

successful example of commitment throughout

the chain. Resetting a store to integrate ethnic

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and mainstream products is a hallmark of a more complete commitment

to embrace ethnic clientele. The move also addresses acculturation by ac-

commodating the range of beverage tastes in one place.

In the chain’s Minyard and Sackn’ Save banners, particularly those in pri-

marily African-American neighborhoods, Latino brands remain in an eth-

nic aisle and assortments of Dr. Pepper, Coca-Cola and Pepsi are larger.

In three Carnival stores the retailer offers Fruterias mixing custom

blends of fresh fruits – an approach that complements, rather than

cannibalizes, bottled sales. “We would put them in every Carnival if we

could,” says Chavez.

Unfortunately, commitment has been a problem for many mainstream

grocers. “Ethnic budgets are still the fi rst to get cut on an annual basis,”

says Kylee Hall, Nielsen product manager for Spectra’s HispanIQ.

It’s not uncommon for retailers to hire ethnic specialists without giving

them the power to implement changes or to integrate ethnic products

into category management. For example, “Bashas went in the direction

of creating their own division, Food City Stores, in order to bypass the

potential bureaucracy which might have limited their ability to implement

a true Hispanic strategy. That requires customization at a time when the

industry’s direction was achieving greater effi ciencies through centraliza-

tion and deploying strategies on a mass level,” says Terry Soto, president

of About Marketing Solutions, a Burbank, Cal.-based Hispanic strategy

consultancy. For instance, smaller, minority vendors have limited capabili-

ties and it can be diffi cult for buyers and category managers to incorpo-

rate them into day-to-day business processes. “For example, ethnic buyers

and merchandisers and large retailers don’t often see eye to eye on vol-

ume measurement systems so it is diffi cult for these vendors to make the

case for product authorizations,” Soto adds. Successful ethnic marketing

means fi nding a way to overcome these barriers.

5. Source authentically. While major U.S. manufacturers have deeper

pockets and more sophisticated information technology, it’s important

to source authentic brands from customers’ countries of origin as well.

Specialty and ethnic distributors can offer expertise here.

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“In the past, retailers have welcomed with

open arms the big brands, and still do,” says

ViVA’s Castillo. “But now they’re talking also

to little brands to make a big impact.”

While it’s tempting to dabble in ethnic bever-

ages at fi rst, that’s not always the best approach,

warns Ross. “We’ve faced a lot of retailers who

were skeptical at fi rst, and wanted one or two

fl avors, not ten. But as they add fl avors, we’ve

never seen a decrease in the rest of the brand.

Flavors tend to be incremental,” tapping into

their target customers’ desire for variety.

In addition to ethnic brands, ethnic con-

sumers often prefer the fl avor of international

formulations of some global brands. Carnival,

for example, has long stocked Mexican Coke,

a sweeter formulation.

6. Price correctly. Some retailers make the

mistake of pricing ethnic goods as specialty

products, failing to understand the role some

play as a staple of the diet. According to the

Coca-Cola study, for example, Hispanics typi-

cally have larger families and often drink sig-

nifi cant amounts of juice in a day, so selling a

wide variety of tropical fl avors in gallon sizes and

pricing them for purchase in large quantities is

essential to winning that customer’s loyalty.

“Chains need to understand that when it

comes to the perimeter of the store, the Hispanic

opportunity is in volume, not margin – that’s one

thing independents understand well,” says Soto.

Stepping Up

Knowing best practices is one thing; reaching

them can be quite another. Retailers must over-

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come their reticence to extend ethnic market-

ing past ethnic aisles and the occasional holiday

and commit at the level dictated by their cus-

tomer base.

“If your supermarket is in a trading area where

the ethnic population is at least twenty percent

higher than in the total market,” then it’s prob-

ably time to step up efforts, says About’s Soto.

Retailers often start with ethnic sections and

specifi c events, but as the program grows and

ethnic traffi c picks up, these strategies help take

them to the next level:

• integrating products with mainstream

categories

• bilingual signage

• hiring ethnic workers

• extended programs/events/tie-ins

• ethnic advertising, promotions

• resetting the store to emphasize quali-

ties the dominant ethnic group favors

• sponsoring community events and

supporting local ethnic organizations

Changing the feel of the store can be a hurdle

for many retailers. “This is where they shy off

because they don’t want to offend” mainstream

customers, notes Linda Gonzalez, CEO and

president at ViVA Partnership.

Retailers who “get it” and make broad chang-

es, such as HEB, Carnival and Food City, are

winning business from those who do not.

Embracing Ethnic Opportunity

The need for ethnic marketing can no longer be

ignored. The good news is, many of the changes

retailers make to accommodate the preferences

of ethnic consumers will please the gamut of

customers, from broader assortments to fresh

juice bars to increased customer service. Some

beverages can help span the range; when Bookoo

Beverages created Jugo with 99 percent juice, for

example, they knew energy drinks were trending

well across most ethnic groups, and formulated

and named the drink accordingly.

“Jugo means juice, but it appeals to a number

of people,” says Paul Herrera, advertising man-

ager. “Even if you don’t know Spanish, it seems

like a word you should know.” Separate English

and Spanish advertising and promotional pro-

grams are driving both groups to Jugo. Similarly,

Pepsi fi rst introduced its Manzanita Sol in Mexi-

co, then brought it into the U.S..

Do ethnic marketing right, and it can boost

ethnic sales while pleasing mainstream custom-

ers as well. “Retailers who compete effectively

for these customers will be in a position to profi t

from this growth,” according to the Coca-Cola

report. “Those who ignore the changing make-

up of the marketplace—or make only token ef-

forts—will not fi nd success.”

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Retailers have demanded that their manufac-turers and distributors get on board with ethnic marketing programs.

Stalking Craft


PHOT

O CO

URTE

SY O

F Vi

sMed

ia

Better and smaller beers are cruising. But the Big Three have crafty plans of their own.By Andy Murray


Craft brew has a stalker.Usually, Anheuser-Busch – the nation’s largest brewer – isn’t one found to be slinking

around in the shadows. But these aren’t usual times,

Beer, that staple of Friday frat parties and Saturday tailgates, is flatlining. According

to Information Resources Inc., a market researcher, total beer sales grew by just 0.7

percent for the 52-week period ending Dec. 3, 2006. That followed similarly lackluster

expansion in each of the previous two years.

Beer’s slump has come, ironically, at a time of near-record consumer spending.

While shoppers have shown an almost insatiable appetite for $5 lattes, $500 shoes

and $5000 televisions, brewers have somehow failed to connect with the nation’s unholy

passion for consumption.

Or have they? One segment of the beer market that has been cruising along is “micro-

craft,” or specialty brewing market. Usually sold at a 25 percent premium over most mass

produced brews, micro-craft beers grew by 17.2 percent over the same 52-week period,

to $453 million, according to IRI. In fact, for many craft brewers, 2006 may go down as

the year their sales broke through the copper ceiling: at year’s end, it made up more than

5 percent of the United States’ $8.7 billion in annual beer sales.

“Overall, the beer market is having its challenges, but people are going for high-end

products that offer a more substantial flavor profile,” said Steve Harrison, vice president

of the Sierra Nevada Brewing Co. Founded in 1980 by Ken Grossman and Paul Camusi,

Sierra Nevada is the nation’s top-selling micro-craft beer, at about $53 million.

As trailblazers like Sierra Nevada know well, this isn’t the first craft beer surge.

In 1996, U.S. craft brewers increased output by 26 percent. That year brought the end

to a half-decade of growth that peaked in 1995 at 51 percent, but things ended poor-

ly, with the industry awash in product and extra brewing equipment, a classic case of

too much to soon.

But this time, brewers agree, something feels different. Not only are survivors like

Sierra Nevada, Boston Beer Co., and Colorado’s New Belgium Brewing Co. more

seasoned and battle-tested, but independent brewers have the sneaking suspicion they

aren’t alone. The big brewers are looking over their shoulder, studying their moves,

looking for a way into the game.

Somebody’s Watching YouKen Hehir, 42, works for Molson/Coors, not that the company has any interest in

letting you know that. He oversees the brand and marketing promotion of two lines:

Blue Moon Belgian White and Killian’s Irish Red. Neither one is marketed strongly

as a Coors brand, as today’s picky beer drinker doesn’t necessarily associate mass produc-

tion with high quality.

In fact, many off-premise and on-premise retailers mistakenly sell Blue Moon

and Killian’s as imports, despite the fact that they have been Coors products for years

(in Blue Moon’s case, from the start).

It’s a legacy of the first microbrew boom: during the mid-1990s the nation’s Big Three

brewers launched a bevy of high-concept specialty beers, many of which were revealed to

be poor imitations of the burgeoning craft scene. One of the only ones that survived was

Blue Moon. It was launched in 1995 by a Coors master brewer who had earned his PhD

in Belgium and wanted to recreate the country’s fruity, almost-sweet wheat beers.

Since 1995, Blue Moon has steadily gained momentum and market share, but

it’s really taken off lately, growing by 115 percent in the first 10 months of 2006 alone,

according to the Rocky Mountain News. According to industry estimates, the company

was on track to sell between 400,000 and 500,000 barrels of Blue Moon in 2006, which

would have made it the equivalent of the third- or fourth-largest craft brewer in the

U.S., behind Boston Beer; Sierra Nevada and New Belgium. But it's never been

promoted as a Coors product.


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“We’ve had a lot of suc-

cess with word-of-mouth

for Blue Moon without hav-

ing to beat people over the

head with it,” Hehir said.

“I think it’s because people

like to reward themselves by

trading up a little bit. But

while they do want to trade

up, they don’t want to trade

up too far in terms of flavor.

They don’t want a beer they

can’t cope with.”

The other major breweries are also trying to find the sweet spot held by

unique but familiar-tasting beers like Blue Moon. Global brewing giant

SABMiller, which bought the Miller Brewing Co. in 2002, recently scored

a hit with its Fredrick Miller Chocolate Lager, which one reviewer called

one of the “best new beers of 2006.” Miller also owns Henry Weinhard's,

which recently launched an organic offshoot. A-B has put out regional

brews, developed by its brew masters in St. Louis and New Hampshire,

distributing them across the Northeast and the Midwest.

Not only are major brewers encouraging their own employees to

get crafty, they are also lapping up smaller, independent brewers at a

rapid pace. In May, Anheuser-Busch announced it was buying Latrobe,

Penn.-based brewer Rolling Rock from the InBev, but it also owns

large shares in regional craft brews such as Chicago’s Goose Island Beer

Co., Seattle’s Redhook Ale Brewery Inc., and Portland, Ore.-based

Widmer Brothers Brewing Co.

St. Louis Craft FairTo hear that Anheuser-Busch is focusing on high-end products is to in-

vite snickers, but Pat McGauley, vice president of innovation at Anheuser-

Busch, doesn’t let it worry him. To craft loyalists who openly question

whether a beer can be considered micro-anything if it is brewed by A-B,

McGauley long ago came up with a counter-argument.

“We tell them to taste our beer and tell us it’s not meeting their stan-

dards. Anheuser-Busch has some of the best brewers in the world and

we are winning the skeptics

over,” said McGauley, 43.

But winning the skeptics

over, no matter how well

qualified its brewers are,

means that the St. Louis be-

hemoth has to take the mi-

cro-craft boom seriously.

In many respects, it has.

In addition to backing

Redhook and Widmer,

last year, Anheuser-Busch

launched two organic beers,

Stone Mill Pale Ale and

Wild Hop Lager. The giant

brewer also came out with a

line of four seasonal specialty

”

Now, kids are used to going into the grocery store and seeing 35 different kinds of beer from 34 different brew-ers. I don’t see that going away.

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Ale, Jack’s Pumpkin Spice Ale and Winter’s Bourbon Cask Ale.

“This is a building-block type approach,” McGauley said. “We don’t

expect these beers to pay off right away, but the news we are generating

in the market is very, very positive. These beers are all about creating

excitement in the beer category,” he said.

Anheuser-Busch is also looking to reinvigorate its organizational struc-

ture by giving its network of breweries the authority to make and distrib-

ute regional beers to a limited area. Last year, those companies brewed

beers like Mule Kick Oatmeal Stout in St. Louis and the Demon Hop

Yard Ale in Merrimac, NH. These items, while only available in restau-

rants and bars, were a way of giving brewmasters throughout the organiza-

tion the flexibility to work with more specific flavor profiles and recipes,

while creating a sort of local pride of ownership. Next year, the program

will expand to all 12 of the company’s regional breweries.

“Beer is absolutely an emotional purchase so we are always trying

to make sure there is an emotional tie between our products and custom-

ers,” McGauley said. “This is all about giving some control and brand

ownership back to the consumer.’

BacklashThe big-beer ownership behind these brands has led some indepen-

dent brewers and their supporters to deride them as “stealth beers”

or “pseudo crafts.”

Jim Koch, president and founder of Boston Beer, the nation’s larg-

est craft brewery (and a company that is derided on occasion as having

gotten too big itself ), argues that the definition of a craft brewery is small,

independent and authentic, meaning it can’t produce more than 2 mil-

lion barrels, and can’t be owned by a larger brewer.

But Coors’ Hehir argues this definition ignores the care and steps

a brewer takes in brewing his or her beer.

“It’s carefully-crafted, it’s a complex recipe and it takes a lot of time

to brew,” Hehir said of Blue Moon.

Whatever words get used to paint the picture, it’s clear the brewing

landscape is changing.

Mark Selner, beer buyer for Surdyk’s Wine and Cheese Shop in the

Twin Cities, sees the end result of that every day.

Even though Surdyk’s is just a few short miles from the University

of Minnesota’s campus, an increasing portion of the store’s beer sales

are driven by craft or specialty beers. Selner, who started at the store in

1973, said there were maybe a few dozen beers in the early days, mostly

old regional favorites like Augsberger. Today, Selner estimates the store

carries close to 300 different kinds of beer, largely to accommodate

the never-ending search to try something new.

“People are into the unusual. Highest this, most that; the beer with

the sharpest hops, the most alcohol,” he said.

And small liquor stores aren’t the only ones taking notice. Greg Mau-

rer, executive vice president for the Heidelberg Distributing Co., points

to large grocers and discount clubs such as Pittsburgh’s Giant Eagle Su-

permarkets that are restocking their coolers in states that allow beer and

wines sales to reflect a more diverse offering.

“If nothing else it is a statement they are making that they are willing

to service their customers’ needs and wants,” Maurer said.


Building a bigger ringBrewers and wholesalers often point

to one of two factors to explain the recent

surge in craft brews and imports. One is

a growing wealth of upper-middle class pro-

fessionals who often work hard and spend

even harder. The other is the so-called

identity factor. With more disposable in-

come, consumers are looking for brands or

products that set them apart, that commu-

nicate their likes and dislikes, their social

status. Maurer sees both factors at play.

“It’s that high-discretionary-income, young consumer. They’re doing

it partly for the identity factor, partly because of high income, and partly

because of flavor. It becomes ‘Who am I?’ and ‘Can I define who I am

by what I drink?’” Maurer said.

Convenience stores and other off-premise retailers can benefit greatly

from this kind of soul-searching. While a six-pack of 12 oz. Budweiser

or Miller bottles may cost retailers $4 and retail for $5.49 plus deposits,

the same six-pack of Sam Adams or Flying Dog may cost $5.25 and sell

for anywhere from $7 to $7.50. That’s roughly the same profit as import

beers, and is at least 16 percent better profit than most mass domestics.

“It’s a good volume and it’s a really good ring, so it’s a high margin item

that moves pretty well,” Harrison said.

Like many, Coors’ Hehir sees Starbucks as an example worth emulating.

While Starbucks redefined coffee as a luxury item at $5 per cup, it has also

created a luxury lifestyle: customers who stop in for a latte often leave with

a cookie, a compact disc, or a book. Beer drinkers who spend more per

bottle also will make impulse buys, something that retailers appreciate.

“I think people let the situation guide them. Sometimes it’s a craft

brew. If they are mowing the lawn and just want something that’s easy-to-

drink and refreshing, it might be a Coors. The ideal is for them to

walk out with both,” Hehir said.

Loud footstepsIn 1990, Jim Koch predicted “better beers,” crafts and imports, would

account for 20 to 30 percent of domestic beer sales and craft beers would

account for “at least a third of that” by 2010.

With three years to go craft brewing still has a way to go, but it has

pushed its head above the 5 percent mark for the first time.

“To me great beer is a great beverage,” Koch said in January. “I think

people are thirsty for quality, flavor, variety and authenticity in their bever-

ages and that is where I think the growth is.”

But there’s something different in this craft boom than the one Koch

rose to prominence in during the1990s. For one thing, he said, the

brewers are a lot more professional.

“In some ways crafts grew so fast in the beginning of the 1990s that I just

think there was an adjustment to a more modest growth spurt,” he said.

While specialty and craft brewers may be the toast of the town now,

they have reason to be looking over their shoulder, said Maureen Ogle,

author of Ambitious Brew: The Story of American Beer.

Ogle notes that for all their growth, craft brews still account for only

6 percent of the nation’s beer. The other 94 percent comes from Big

Brewers. Anheuser-Busch alone accounts for half the beer sold in the

U.S. Budweiser, 18 percent.

The reason big brewers seemed to fail during the first craft revolu-

tion during the nineties was partly because they didn’t take it seriously,

Ogle said. Brewers like Anheuser-Busch seemed to think they could

find any pre-Prohibition beer recipe, slap an old-timey label on it and it

would sell regardless of what it tasted like.

Fifteen years later, Ogle thinks they’ve smartened up. Gone is the

haphazard approach to brands; back is massive influx of investment that

characterized the post-World War II era, when brewers like Anheuser-

Busch, Coors and Miller survived a sustained drop in beer consumption

by adding capacity, exploiting every possible niche or fad imaginable and

innovating until the Baby Boom reached legal drinking age.

Ogle sees gluten-free beers, like Budweiser’s RedBridge, as an exam-

ple of the sound, long-term investment big brewers are making.

“They are just getting a lot smarter,”

Ogle said.

Consolidation is also helping reinvigo-

rate the brewing industry, Ogle said. South

African Breweries 2002 purchase of the

Miller Brewing Co. from Philip Morris

started that company on a track to rediscov-

ering its brewing roots. Successes like the

company’s chocolate lager show, in a lim-

ited way, how much the Milwaukee brew-

ing company is refocusing itself on beer. So

does A-B’s regional beer program.

If major brewers were to get organized, independent brewers and retail-

ers would have plenty of reason to be worried. With their vast distribution

networks, big brewers can exert tremendous control over retailers and the

beer they stock, even pulling their major brands if a retailer isn’t cooperat-

ing. That, combined with acquisition and advertising budgets that would

make most European countries quaver, mean things could get a lot nastier

before they improve.

“Anheuser-Busch and Miller could be way more aggressive exploiting

their marketing advantage and throwing their advertising dollars around. I

think a lot of those small brewers are going to go away,” Ogle said.

Like any small business, independent craft breweries also face ques-

tions about succession. Many of the nation’s craft brewing pioneers are

graying. Grossman, Koch, and Anchor Steam’s Fritz Maytag are all nearing

retirement age.

How long can craft brewing’s growth last? Like Koch and other craft

brewers, Ogle can’t say for certain, but she doesn’t see beer drinker’s

thirst for the unusual drying up any time soon.

“Now, kids are used to going into the grocery store and seeing 35 dif-

ferent kinds of beer from 34 different brewers. I don’t see that going away.

I think there is always going to be a segment, a small segment of the

market that always gravitates to choice, just like they want 500 chan-

nels on cable,” she said.

What might change, though, is that the big brewers seem to be pretty

interested in making some off-beat programs of their own.

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ADIOS, AMIGOS.´

On December 31, the Corona

brewer y in Mex ico and i ts

impor ter par ted ways. As the

adver t is ing agency for the

impor ter, we had no choice

but to say adiós as well. I t

feels l ike only yesterday that

we created the campaign

inviting beer drinkers to escape

to a Corona state of mind,

but remarkab ly, i t ’s been

more than ten years.

Ten years of work ing with

a cl ient who bel ieved in

consistency as much as we

do. Ten years of helping

Corona become the #1

sell ing impor t in the U.S.

and the four th-largest brand

in the wor ld. Ten years.

Gracias, Corona, for making

ever y one of them feel

l i ke a day at the beach.

THE RICHARDS GROUP

060137RNB StanAdios BevSpec.indd1 1 1/11/07 8:28:45 AM


M aureen Ogle’s Ambitious Brew: The Story of American Beer is

more than just a tale of the development of an American brewing

style, it’s also an enlightening primer on U.S. immigration patterns,

family business and mainstream taste. But for retailers, it holds les-

sons on the beer companies themselves, and what kind of factors

infl uence them to provide the products you stock. In this excerpt

– late in the book, after Ogle has retold the story of brewing from

the perspective of many of its leading families – she takes stock of

the crew comprising the top ten domestic brewers in the year 2000.

While a few changes have been made – most notably the sale of Roll-

ing Rock to Anheuser Busch – there is a key takeaway for retailers: be

it production values or stylistic imperatives, buying from companies

who are dedicated to what they do is very important, because those

are the companies that last.

As it turned out, these were growing

pains, not death throes, and they were good for the industry. The encoun-

ters with the Big Boys toughened the survivors, who either fashioned new,

and better, strategies for growth, or reeled in their ambitions and stayed

close to home. Customers came back. The number of breweries and brew-

pubs soared, reaching well over one thousand by century’s end. By the

late 1990s, Ken Grossman’s annual output inched toward a half mil-

lion barrels and he was out-producing Leinenkugel and F. X. Matt. Jim

Koch shot past the million mark.

The late-twentieth-century reinvention of American brewing laid bare

the industry’s bone structure, and revealed a fundamental truth about

brewing: almost alone among commercial enterprises, it is one in which,

regardless of the brewery’s size, success depends less on number-crunching,

share value, and MBA management than on basic entrepreneurship and

a personal passion for the product.

Consider the sad story at Schlitz, which, already bleeding from the

carnage of the 1970s, did not survive the century. In June 1981, strik-

ing brewery workers walked out of the Milwaukee plant. Company of-

fi cials, most of them accountants rather than men with beer in their veins,

announced that they planned to shut the brewery for good in September,

even as Pabst and Heilemen battled for ownership of the tattered remnants

of what had been one of Milwaukee’s fi nest. Schlitz’s board of directors

approved a sale to Heileman, but the Justice Department nixed the deal

as a violation of anti-trust laws. In the spring of 1982, Schlitz fi nally found

a home, with Stroh of Detroit.

Stroh was one of the family-owned survivors, having been in business

for 149 years under fi ve generations of Strohs. But the family made its bid

for grandeur at the wrong moment, demonstrating that brewing heritage

and passion alone do not make great breweries. Had they maintained their

“small” mystique and cachet, they might have survived. But in an industry

hobbled by fragmentation, fi ckle consumers, and dwindling demand, no

one wanted beer from an ordinary Big Brewer wannabe, and it was im-

Excerpted from: Ambitious Brew: The Story of American Beer


possible for Stroh to catch up with giants A-B and Miller. Add the new

burden of debt and stagnant demand, and the pressure proved fatal. In

1998, the company’s board sold its Tampa plant to Dick Yuengling; a year

later they disposed of the rest of the assets, including the cornucopia of

brand names Stroh had acquired over the years: Schlitz, Old Milwaukee,

Old Style, Schmidt’s, Lone Star, and Special Export.

In 2000, the nation’s tenth-ranked brewer was Minnesota Brewing Co.

of St. Paul, but the company was nearing the end of its short-lived run for

glory. Management would fi le for bankruptcy in 2002, selling its Grain

Belt label to August Schell Brewing in nearby New Ulm, Minnesota (the

second-oldest family-owned brewery in the country).

The number-nine spot belonged to Ken Grossman, now sole owner of

Sierra Nevada Brewing Co. and as passionate about his beer and his future

as he had been back in 1978.

At number eight sat the nation’s oldest beermaker: D. G. Yuengling &

Son. Dick Yuengling, Jr., had devoted the 1990s to making the kinds of

careful business decisions that only a hands-on entrepreneur could: he used

secondhand equipment when possible and saved on

stamps by having his drivers deliver necessary mail

to the brewery’s wholesalers. But when Yuengling

did spend money, he did so dramatically and effec-

tively: In 1998 he announced plans to build a new

brewery from ground up in Pottsville; a year later,

he bought Stroh’s Tampa plant. In 2001, Yuengling

would break the one-million-barrel mark.

Number seven, Latrobe, was an oddity: The

Pennsylvania maker of Rolling Rock, which had

become the favorite of collegians in the 1980s,

was owned by Labatt, which was itself owned

by Belgian giant Interbev.

Jim Koch’s Boston Beer Company claimed the

number-six spot. He still brewed some beer on

contract, but in 1996 he’d bought the old Hude-

pohl-Schoenling brewery in Cincinnati, the town

where he’d grown up. Few brewers had been

as personally battered by the late-century beer wars

as Koch; but few proved more tenacious and passionate than he when

it came to making fi ne beer.

Genesee of Rochester, New York, in the number-fi ve spot, had been

around western New York for more than a century, owned and run by

the Wehle family since repeal. But in 2000, the Wehle at the top, dying

of cancer, decided to sell what had become an ailing company. A group

of investors, nearly all of them Rochester locals, bought it, intent on sav-

ing some local history and the brewery’s fi ve hundred jobs. The owners

immediately aligned themselves with the microbrewing end of the indus-

try, hiring a brewmaster with a craft brewing background and launching

a new line of full-bodied brews.

At number four was an entity named Pabst, but which had nothing to

do with the Pabst Brewing that had once been the world’s largest beer-

maker. Pabst offi cials, uncertain how to navigate a stagnant market and

changing tastes, spent the early 1980s leaning into a whirlwind of mostly

hostile takeover bids. In the end, Paul Kalmanovitz, a California investor,

won. He acquired Pabst in 1985 and proceeded to strip its management,

its advertising, its employees, and its sales. When Kalmanovitz died in

early 1987, his successor vowed to save the brewery.

It was too late. In 1996, Phillip Best and Frederick Pabst’s proud

factory--the acres of soft red brick, the wrought iron lamps with their

ornate “P,” the once-bustling shipping yard--fell silent, locked behind

an ugly chain-link, barb-wired-topped fence, its only companions a

growing community of weeds, rats, and birds. Captain Pabst’s beloved

Blue Ribbon brand survived--in name only and as one of an array of beer

labels owned by the Kalmanovitz Charitable Foundation, a San Antonio,

Texas, holding company. Blue Ribbon became the darling of the bike

messenger and retro-chic crowd in the early 2000s--but it was brewed

at the Miller plant out on State Street.

In 2000, the Coors family still clung to their number-three spot, but

Pete Coors’s plans to topple the two leaders had never panned out. Indeed,

the brewery’s share of the market slipped in the 1990s, perhaps because

for the fi rst time in company history, the family turned the wheel over

to an outsider, a man who had once run Frito-Lay.

As for the top two, they were the same pair who

had held the spots since the late 1970s. But in 2000,

Miller produced less than half of A-B’s 96 million

barrels, and its market share dwindled slightly each

year. In 2002, Philip Morris conceded defeat and

sold Miller to a South African outfi t. Would things

have turned out differently if Fred C. Miller had not

boarded that plane in December 1955? Perhaps.

And then there was the leader: Anheuser-Busch.

At the beginning of the new century, half the beer

consumed by Americans sported the Anheuser-

Busch eagle, and just one of those brands, Bud-

weiser, accounted for a staggering 18 percent of all

the beer sold in the United States--proof that mi-

crobreweries notwithstanding, many Americans still

favored a light-bodied, effervescent beer of the kind

created by Carl Conrad and Adolphus Busch more

than a century earlier. In 2002, August Busch IV,

the great-great-grandson of Adolphus Busch, took

over as president of Anheuser-Busch, the fi fth Busch to serve in that post.

That as much as anything else explains why Anheuser-Busch is the

world’s largest brewery: For more than 150 years, the family has nurtured

and built and fought, trusting almost no one but themselves to care as

much about the company’s name and its beer as they did. The craft brew-

ers, the brewpub owners, the contract brewers, and everyone in between

could take a lesson from the Busch family: Stick to the basics, in this case

uncompromised quality and consistency. And if anyone needed proof be-

yond the sales fi gures, they need only visit the St. Louis brewery. There, in

its immaculate grounds, in Adolphus’s still-pristine stables, in the perfectly

maintained 1893 brewhouse, stands evidence of the family’s constant vigi-

lance and its justifi able pride in its history, products, image, and reputa-

tion. Evidence, in short, of the entrepreneurial passion--and ambition--

that had served the company for a century and a half.

Adolphus would be proud--but then again, he would have ex-pected

nothing less.

had held the spots since the late 1970s. But in 2000,

Miller produced less than half of A-B’s 96 million

barrels, and its market share dwindled slightly each

year. In 2002, Philip Morris conceded defeat and

sold Miller to a South African outfi t. Would things

have turned out differently if Fred C. Miller had not

boarded that plane in December 1955? Perhaps.

At the beginning of the new century, half the beer

consumed by Americans sported the Anheuser-

Busch eagle, and just one of those brands, Bud-

weiser, accounted for a staggering 18 percent of all

the beer sold in the United States--proof that mi-

crobreweries notwithstanding, many Americans still

favored a light-bodied, effervescent beer of the kind

created by Carl Conrad and Adolphus Busch more

than a century earlier. In 2002, August Busch IV,

Excerpted from: Ambitious Brew: The Story of American Beer

By Carolyn Heinze

As an increasing

number of Americans pop the cork,

retailers are looking to wine tastings –

either as separate events or ongoing pro-

grams – as a way to attract clients to the

store and, eventually, the cash register.

At retail, the art of product sampling as

an enticement to buy is an old one. But

wine tastings, where a few bottles are set

out as samples for customers to try, have

the potential to be much more effective

than sausage on a stick. These events aren’t

just a way to make a fast buck on whatever

you’re pushing that week: they can produce

more knowledgeable, loyal customers, the

kind who will regard your store as a gather-

ing place and a resource as much as they will

rely on it as a retail establishment.

Depending on your store type, wine tast-

ing programs can be either a stylistic neces-

sity or a nice bonus for ordinary shoppers.

At Hi-Time Wine Cellars in Costa

Mesa, California – a family-owned store

with 24,000 square feet of retail space

and a 3,000 square-foot temperature

controlled wine cellar – it’s the former.

Tastings take place three times a

week in the store’s wine bar, featuring up to

a dozen different wines.

“There is more of a hands-on mentality, where

people really want to decide for themselves what

they like and what they want to taste,” observes

Dan Rhodes, Hi-Time’s French wine buyer.

“There is also a growing awareness of wine

matching, and that’s really good, because it gets

people off the main path. A wine bar can help to

introduce people to new things.”

Rhodes creates specifi c themes for each tast-

ing, often by region, grape variety, or wine type.

“There are a lot of different things that you can

do, and the more creative you are, the more

your clients appreciate it,” he advises. Tastings at

Hi-Times are also seasonal: Rhodes won’t,

for example, conduct a Sauvignon Blanc tasting

during the middle of winter.

BLM Wine + Spirits in Boston, Massachu-

setts, holds tastings every Saturday. Usually

featuring about nine wines, a table is arranged

so that the tasting glasses are placed in front

of the bottle, enabling the customer to look at

and smell the wine. Roger Ormon, BLM’s wine

manager, provides a sheet with a two-to-three

paragraph blurb on each wine, listing grape

varieties, facts about the region, how the wine

is made and interesting highlights about the

winemaker. A tasting coordinator behind the

table focuses on how the wine tastes, but also

pushes for incremental sales by talking about

its relationship to food.

“They will draw

people out so that they can express

what they think about the wine, and what

they would serve it with,” he says, add-

ing that customers will also talk amongst

themselves. “It’s very informal. Some

people go through all the wines in a hurry,

while other will taste one or two. Some will

talk for half an hour to 45 minutes to lei-

surely go through all of the wines.”

Servers don’t necessarily need to pos-

sess the in-depth knowledge of a master

sommelier, but they should be equipped

with a number of basic facts on grape va-

rieties, regions and background on the

wineries themselves.

“The real critical component, as far as the

in-store operations go, is to make sure that

there are wine-knowledgeable people out

there selling the product,” emphasizes Scott

D. Kamp, corporate wine buyer for grocery

chain Meijer, Inc, headquartered in Grand

Rapids, Michigan. “If someone is sell-

ing wine and they don’t understand it the

way they should, you can get into trouble

quickly because you lose credibility. Peo-

ple who really like wine will quickly pick

up on it when someone doesn’t know

what they are talking about.”

Meijer works closely with its suppli-

ers in organizing their tastings, which

usually take place on Friday evenings


hoiceaster’sWine tastings that work


When it’s not staging wine tastings, Hi-Time Wine Cellars in Costa Mesa, California – which

also sells North American micro-brews and world-class beers – holds monthly beer tastings

based on various themes. Dan Rhodes, the store’s French wine buyer, notes that these events

differ greatly from those dedicated to wine, although both can be powerful sales boosters if

they cater to the consumer in the right way.

“It’s two different crowds,” Rhodes says. “There is a defi nite beer afi cionado that appre-

ciates the subtle differences in beer, but it’s a little bit different in that it’s a little bit more

about a camaraderie between beer drinkers. There is more social interaction going

on and it’s more of a pub atmosphere. We provide snacks, such as chips, pretzels

and pizza rolls.”

During wine tastings, the store offers bread, but the focus on snacks is minimal

in order to keep the palette neutral.

Rhodes believes that this difference between the two beverages is rooted in

our social conditioning. “We are conditioned to think of wine as a more artistic

beverage and beer as a more commercial, industrial beverage,” he said. “I don’t

necessarily agree with that; I think there are some really artistic beers that are really

well done and produced in small quantities, and a lot of industrial plonk that calls

itself wine. I don’t necessarily agree with the perception, but it is the perception.”

and Saturday afternoons, to make the most

of high-traffi c times. Those conducting the

tastings are usually supplied by the winery,

but Kamp underlines that, even if a tasting co-

ordinator is from outside your establishment,

they should be familiar with your store before

they hit the fl oor.

“They are the face of the retailer to the cus-

tomer,” he says. “It’s important that they are

knowledgeable about that entire department,

and they really should have some level of fa-

miliarity with the store as a whole. If you are

sampling wine in the wine department, there

will always be someone who asks you where the

cheese is. That’s going to happen – especially

with a supercenter format like Meijer.”

Secondary Benefi ts

Kamp points out that tastings in a gro-

cery store environment not only boost

wine sales, but, when executed prop-

erly, provide an opportunity to increase sales in

other departments as well.

“There are tremendous cross-merchandising

benefi ts,” he says. “We will pair a nice wine, a

cheese, a chocolate, or even something from the

deli area.” And, he adds, the hands-on nature of

wine tasting demonstrates to customers that the

store is committed to providing good service.

But what happens when in-store wine tastings

are illegal in your state, or require an expensive

license that you may not be willing to invest in

right now? Meijer, which has stores in Michigan,

Ohio, Indiana, Illinois and Kentucky, may only

conduct tastings in Illinois; it’s illegal to pop a

cork in the rest of the states except for Indiana,

which requires retailers to purchase a license.

To get around this restriction, Meijer provides

specially-trained “hand-sellers” who circulate

throughout the department, offering customers

advice and recounting various details about each

wine. If you can put a bottle into a client’s hand,

Kamp reasons, it’s 80 percent sold.

“People don’t want to, if they are going to

someone’s house, buy a bottle of wine and look

like they don’t know what they’re doing,” he

says. “If you have someone who is wine-knowl-

edgeable, and who can give them food pairings,

information about the winery or the history of

the wine, now you personalize that product for

them. Then, when the customer goes to some-

body’s house with that bottle of wine, they are

not only confi dent that they have the right bot-

tle, but they also have a little story to tell.”

In conjunction with tastings or hand-sellers,

special events are another good way to drive

traffi c through your wine department. Kamp

recounts that, during tastings, some Meijer

locations charge several cents a glass to donate

to a local organization – solidifying the retail-

er’s involvement in the community. Meijer will

also invite some of the country’s better-known

winemakers to come into a store to speak

and sign bottles. Every effort is made to have

wines bolster the store and to help the store

to sell more wine.

To encourage purchases, Ormon notes that

BLM offers a 20 percent discount on the wines

that are being tasted with a minimum purchase

of three bottles. Kamp believes that pricing

should be very aggressive during a tasting so

that customers are encouraged to try the wine

at home – and hopefully, come back to buy

more at the regular price. “My philosophy has

always been that you pretty much need to give

the product away,” he says. “I almost look at it

as a loss leader. I will sell wine at cost during a

wine tasting just to get the product into people’s

hands. If even 10 percent of the people that

tasted it come back the following week and they

buy it at full margin because they like it, or they

tell a friend or neighbor about it, it can be an

extremely powerful way to market product.”

· Ambiance is a must: create an informal, celebratory environment where clients are comfortable and receptive

· Be creative: develop interesting themes

· Serve wines from lightest to heaviest

· Servers must be neutral: let the customer decide what they like and dislike

A Bit About Beer

on and it’s more of a pub atmosphere. We provide snacks, such as chips, pretzels

During wine tastings, the store offers bread, but the focus on snacks is minimal

Tips for Tastings


Thursday, 3/8/2007

8:00 A.M. – 1:00 P.M.: Retail Store Tour11: 30 A.M. – 1:30 P.M.: 10th Annual OFRF

Meet & Greet Benefit Luncheon12: 30 P.M. – 5:30 P.M.: Fresh Ideas

Organic Marketplace6:0 0 P.M. – 8:00 P.M.: International

Welcome Reception7:3 0P.M. – 10:30P.M.: OTA's Organic

Industry Reception

Friday, 3/9/2007

8:0 0A.M. – 10:00A.M.: A Better Breakfast with Silk, Horizon Organic & Kashi

9:3 0A.M. – 6:30 P.M.: New Ingredient & Technology Showcase; New Products Showcase

10: 00 A.M. – 6:00 P.M.: Business Information and Technology Exchange; Global Supply Marketplace

6:3 0 P.M. – 9:30 P.M.: LUNAFEST: In Support of The Breast Cancer Fund

9:0 0 P.M. – 12:00 A.M.: Live Music Party featuring the Dirty Dozen Brass Band

Saturday, 3/10/2007

8:00 A.M. – 9:00 A.M.: Run for the Health of It9:3 0 A.M. – 6:30 P.M.: New Ingredient &

Technology Showcase10: 00 A.M. – 6:00 P.M.: Business Information

and Technology Exchange; Global Supply Marketplace

12:00 P.M. – 5:00 P.M.: Organic Farm Tour4:0 0 P.M. – 6:00 P.M.: Global Supply Marketplace

Client Appreciation Event5:30 P.M. – 5:45 P.M.: NutrAward Announcement6:0 0 P.M. – 7:30 P.M.: Women In Naturals

Networking Event7:0 0 P.M. -10:00 P.M.: The Organic Wine and

Beer Festival

Sunday, 3/11/2007

9:3 0 A.M. – 4:00 P.M.: New Ingredient & Technology Showcase

9:3 0 A.M. – 4:00 P.M.: New Products Showcase10: 00 A.M. – 4:00 P.M.: Business Information

and Technology Exchange

Thursday, 3/8/2007

9:0 0 A.M. – 10:30 A.M.: The Fresh Revolution: How It's Changing Customer Perceptions in Your Store Speakers: Byron Freney, Jay Jacobowitz

10: 30 A.M. -12:00 P.M. Japan—Market Opportunities and Regulatory Issues

11: 00 A.M. -12:45 P.M. From Here to Sustainability: Greening Your Business and Bottom Line Speaker: Joel Makower

1:0 0 P.M. – 2:15 P.M. The Global Health and Wellness Opportunity: Consumer Research

1:3 0 P.M. – 2:30 P.M. Alice Waters on Organics and Sustainability Speaker: Alice Waters

2:0 0 P.M. – 3:30 P.M. Educating Your Customers: Practical Guidance on Supplements and Integrative Medicine Speaker: Elson Haas, MD

2:4 5 P.M. – 4:00 P.M. Introduction to the North American Market

4:0 0 P.M. – 5:30 P.M. Roundtables with the Experts: Nuts, Bolts and Nuance for Successfully Managing Your Business

4:3 0 P.M. – 5:45 P.M. The Organic Opportunity in Latin A.M.erica

Friday, 3/9/2007

8:3 0 A.M. -10:00 A.M. Making Meaningful Health Claims in Risky Regulatory Waters Speakers: Ivan Wasserman, Michelle Rusk

8:3 0 A.M. – 9:30 A.M. Featured Speaker Andrew Zolli

10: 30 A.M. -12:00 P.M. A Close Look at EU Standards for Personal Care Speaker: Stacy Malkan Global Ingredient Sourcing: Pricing, Shortages and Quality Organic Basics: Core Values and Fundamental Principles Speakers: Jamie Brent, Jesse Singerman, Lisa Bell

1:0 0 P.M. – 2:15 P.M. Fine Tuning Your Marketing Campaign

1:0 0 P.M. – 2:30 P.M. Hot New Consumer and Retail Trends Speakers: Linda Povey, Maryellen Molyneaux

1:0 0 P.M. – 2:00 P.M. Seminar Presented by Natural Factors (Exhibitor-Presented)

1:3 0 P.M. – 2:30 P.M. Cosmetics, Health Risks, and Solutions for Safer Products

2:4 5P.M. – 4:00P.M. Organic Issues Forum: Hot Topics

Saturday 3/10/2007

9:0 0 A.M. -10:00 A.M.: Keynote Address Speaker: Eric Schlosser

10: 30 A.M. -12:00 P.M.: Contract Manufacturing Primer: Focus on Supplements Got Organic Certification Questions? Ask the Experts Speakers: Jake Lewin, Marty Mesh

10: 30 A.M. -11:30 A.M.: The Hormone Triangle: What's the Adrenals, Thyroid and Liver to do with Balanced Hormones? Speakers: Lorna Vanderhaeghe BSc

11: 00 A.M. -12:00 P.M. Vulnerable Blood – A Common Denominator Preventing Cardiovascular Health

1:0 0 P.M. – 2:15 P.M. Contract Manufacturing Primer: Focus on Food Cultural Convergence: The Place Where Healthy and Ethnic Meet Speakers: Kimberly Egan, Thomas Tseng Top Ten Reasons To Go Organic: Revisited for the 21st Century Speakers: Alan Greene MD, FAAP, Bob Scowcroft, Sylvia Tawse

2:4 5 P.M. – 4:00 P.M. Making The Hard Choices at Work Without Losing Your Self-Respect Speakers: Jim Autry, Peter Roy Tackling Organic Ingredient and Supply Chain Challenges Speaker: Mary Mulry PhD

Sunday, 3/11/2007

9:0 0 A.M. -10:00 A.M. Featured Speaker: Neil Howe

EVENT SCHEDULE EDUCATION/SEMINAR SCHEDULE

NATURALAnaheim Convention Center

Anaheim, CAPRODUCTS

EXPO WEST

PREVIEW

Education: March 8-11, 2007Trade Show: March 9-11, 2007

4. What is your title? (check only one)A— Owner/President/CEO/COO/VP/DirectorB— BuyerC— Merchandising ManagerD— Regional/District ManagerE— Store Manager/SupervisorX— Other (please describe):

5. Do the locations that you are responsible for sell:(check all that apply)A— Carbonated soft drinksB— Non-carbonated soft drinksC— Bottled waterD— BeerE— WineF— Liquor BS03O6

3. What is your primary business type?(check only one)A— Convenience StoreB— Supermarket/GroceryC— Club/Warehouse StoreD— Mass Merchandiser/DollarE— Drug StoreF— Liquor StoreG— Wine StoreH— Wholesaler/Distributor/BrokerI — Beverage Only/Beverage Specialty StoreX— Other (please describe):

BS0406

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APRIL 2006

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EXHIBITORS

Adagio Teas Adina World Beat Beverages AJY International Inc. Aloe Breeze Apple & Eve Appletiser/Genesis NA Aquamantra, Inc. Blue Diamond Growers Bolthouse Farms Bossa Nova Beverage Group, Inc. Boylan Bottling Co. Brazil Gourmet BSN Canandaigua Concentrates, Div. of Constellation Wines U.S. Century Foods International Ceres Organics Clement Pappas & Co., Inc. Crayons, Inc CurrantC CytoSport, Inc. EarthTrade Water Eden Foods, Inc Elite Natural/Organic Juice USA Espana Brands N.A. Evamor Products, Inc. Frutzzo Natural Juice, LLC Fuze Beverage LLC Good Karma Foods Green Mountain Coffee Roasters Guayakí Yerba Maté GURU Energy GuS – Grown-up Soda Hain Celestial Group, The Hansen Beverage Company Health Support, Inc. Hiball Inc. Hint, Inc. Honest Tea Hydrate 2 O Icelandic Water Holdings, EHF Inko's White Tea ITO EN, LTD. IZZE Beverage Company Jones Soda Co. Juice Beauty Kagome USA Kamauoha Farms Kombucha Wonder Drink Kooz Beverage Company, LLC Kraft Foods Lakewood Organic and Premium Juices Langer Juice Company Liberty Richter Lifeway Foods, Inc. Lightfull Foods

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D40557cspm 6/21/04 5:00 AM Page 1


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across the Country will vie for the chance to best creatively capture brand FUZE through the innovative use of multime-dia this spring.

The competition will challenge advertising, design and communication students to construct a media plan that best integrates new media with traditional media. Multiple teams will compete from each university, with the school itself de-termining its winning campaign to position against the other schools in a national competition.

FUZE is awarding an $8000 scholarship to the winning team from each school. The team with the best overall cam-paign will be fl own to Manhattan to personally present their campaign to FUZE executives.

The schools competing are: The Art Institute of New York, Michigan State University, Minneapolis College of Art and Design, Academy of Art University, Cal State Fullerton, Uni-versity of Oregon, University of Texas at Austin, School of the Art Institute of Chicago, Portfolio Center, Creative Circus and Savannah College of Art and Design.

Winter Essentials include Miller Genuine Draft and Miller Genuine Draft Light

Through the end of March, Miller Genuine Draft is pre-senting a one-of-a-kind cinema program that will bring the Red Carpet to off-premise accounts. Custom-designed Miller Genuine Draft packaging will communicate the in-pack of-fer. Program support also includes a partnership with IMDB.com, print-ads, impactful POS and special online content.

Supermarkets will have a "Build-a-Movie-Premier" dis-play with display cards with take-one box and GQ mini-magazines, red carpet fl oor decals, spectaculars, case cards and basewrap.

In C-stores, consumers will embrace opening night excite-ment with take-one posters, horizontal display cards, case cards, tatic stickers, basewrap, red carpet fl oor decals and cooler door clings. In liquor stores, command fl oor space with a display featuring display cards with a take-one box and GQ mini-magazines, red carpet fl oor decals, take-one posters, static stickers, a cooler door cling, case cards, base-wrap and shelf cards. Spanish language versions will also be available to activate Hispanic accounts. See your local dis-tributor for details and to request merchandising materials.


Year of the BoarAccording to Chinese tradition, the “Year of the Boar”,

starting on February 18, 2007, will be a year of plenty. Signi-fying freedom, ease of life and abundance, the “Year of the Boar” will be a year where one can live life to the hilt, social-ize more and make numerous friends.

Chinese New Year is also an excellent time to promote authentic Tsingtao Lager, the number one imported Chinese beer in the United States, and smooth, light-tasting Tsing-tao Pure Draft, with an array of promotional materials de-signed to capture attention and increase sales during this festive holiday.

For off-premise accounts, Tsingtao has produced P.O.S. items sure to generate consumer excitement at retail, in-cluding bright red hanging lanterns, two-sided satin ban-ners, basewrap, easel cards and tuck-in price cards. And in markets where legal, Tsingtao and Annie Chun’s All Natural Asian Cuisine, a leading producer of Asian meal kits, noo-dles and sauces, are teaming up with a chain grocery cou-pon program that offers IRC’s on Annie Chun food products. Tsingtao’s alliance with Annie Chun’s creates the perfect op-portunity for out-of-department displays in the Asian food, meat and produce sections.

Consumers interested in the Chinese New Year can surf the Tsingtao website at www.tsingtaobeer.com to pick up fun facts about the holiday and the Chinese zodiac. The web-site includes background on the holiday, a listing of Chinese New Year celebrations and it enables people to type in their birth date to determine their Chinese zodiac sign. Consum-ers can also learn which personal characteristics are attributed to their zodiac sign and which celebrities share their sign. Well-known people born in the Year of the Boar include: Henry Kissinger, David Letterman, Hillary Rodham Clinton, Elton John, Lucille Ball, Lance Armstrong, Marie Osmond and the Dalai Lama.

More Bawlsy SportsBAWLS Guarana has entered BMX racing as the “Official

Energy Drink” of the National Bicycle League (NBL). Tens of thousands of BMX racers across North America will now rely on the refreshing taste and caffeinated kick of BAWLS Guarana to keep them bouncing down the track this season. Set to be an official sport for the first time at the 2008 Olym-pics in Beijing, BMX racing is the latest niche to join BAWLS Guarana’s portfolio of targeted industries which include vid-eo gaming, paintball and fashion.

As the Official Energy Drink of the NBL, BAWLS Guarana will enjoy exclusive sampling and on-track signage rights at all NBL-sanctioned national races, set to take place in more than 20 cities across the US. BAWLS will launch an aggressive sampling effort to introduce tens of thousands of BMX enthusiasts to the refreshing, caffeine-packed taste of BAWLS Guarana. The brand also plans to launch a coopera-tive marketing effort with the NBL through a limited edition run of BAWLS Guarana packaging dedicated to BMX racing, as well as a nationwide contest.

Through their partnership with the NBL, BAWLS Guarana will also have a presence at several Olympic qualifier events. Olympic hopefuls will have opportunities to gather qualify-ing points at nine NBL National races this year. The NBL is the only BMX organization affiliated with the UCI (Union Cycliste Internationale) - the international governing body of cycling that is qualifying riders from around the world to participate in the 2008 Olympics.

BOAR-ING:

CONVENTION SCRAPBOOK As the fi rst national beverage tradeshow of the year, the Fancy Foods West Show is a great place to spot new beverage launches and line extensions. It’s also a great place to watch out for our booth cam, there to grab the best product shots and smiles. fancy food show

Ira Liran and Leigh Robertson: drink Vita Coco, win a yellow T-shirt!

Kara Goldin and Peter Moritz of Hint.

Hey, Pat Galvin, mind if we grab your grapes?

David Louie and Jeffrey Barhhart from Sugar Bowl Bakery – A spirited group. Ha. Ha.

Caroline Parker, Jeanene Bentley, Althea Dunn:

the faces of Purity.

Young Jo Jin from T’Best Aloe Vera Juice.

Sugar Bowl Bakery

What Expo could be complete w

ithout a visit to the

Honest Tea booth?

Krissy Miller from Skylar Haley

Hey, Moriba Ouendeno from Moriba, Bissssaaaaap?!?


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©2006 Anheuser-Busch, Inc., St. Louis, M

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Beverage Spectrum Jan-Feb 2007

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Transcript of Beverage Spectrum Jan-Feb 2007