2012 Up-and-Coming Beverage Categories and Companies in the U.S.

2012 Up-and-Coming Beverage Categories and Companies in the U.S.

Published: December 2012
Publisher: Beverage Marketing Corporation
Product ref: 154678
Pages: 278
Format: PDF
Delivery: By product vendor

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This report scrutinizes the always-changing marketplace, identifying and quantifying emerging non-alcoholic beverage categories and companies of growing significance and describing what could be the next big thing. It also provides an overview of defining trends spurring development of the new categories and looks at the fast-growing liquid refreshment beverage companies, documenting their performance and indicating what makes them noteworthy. Profiles of emerging companies include sales data as well as key personnel and contact information.

Report extract:

At a time of risk aversion, the marquee value of entrepreneurs who have attained past success glows even more brightly, easing access to capital for new brands associated with them.

  • That has certainly been the case for John Bello (ex-SoBe, Izze) at Adina, or Honest Tea cofounders Seth Goldman (backing Mamma Chia) and Barry Nalebuff (backing Q Tonic). The involvement of former Glaceau marketing chief Rohan Oza as an investor in Bai coffee berry drinks and a marketing advisor prompted a surge of interest.
  • For a long stretch, the two entrepreneurs with the greatest marquee value - Vitaminwater creator Darius Bikoff and his key lieutenant, Mike Repole, who between them pocketed a sizable chunk of Coke's $4.1 billion purchase of Glaceau - stayed on the sidelines in beverages, preferring to turn their energy and sizable wealth to non-beverage investments like Pirate's Booty snacks (both), the healthy restaurant chain Energy Kitchen (Repole) and thoroughbred racehorses like Uncle Mo (Repole again).
  • That changed when Repole caught enthusiasm for the Body Armor line launched by Fuze founder Lance Collins and came in both as an investor and as an uncommonly hands-on "non-executive chairman." Although some have wondered how two such big egos will work together, there is no question that this "supergroup" has stoked even greater enthusiasm among distributors, retailers and would-be investors. For his part, Bikoff is believed to be sticking to his guns and remaining on the beverage sidelines.
  • It should be noted that the advantage of having a previously successful entrepreneur at the helm was undermined by Bello's experience at Adina Holistics, where he tried to turn what was launched as an ayurvedic beverage into the second coming of his greatest past success, SoBe, with a poor outcome that has left the brand on the brink of extinction as of this writing.
  • Other successful entrepreneurs, such as Mike Weinstein (A&W, Snapple) have hung in there with their latest efforts (in his case, Hydrive energy drinks) but not proved conspicuously successful.

On the regulatory side, under the Obama Administration the stepped-up vigilance of government authorities on health claims made by premium-positioned beverages, particularly functional beverages, represents a radical shift from the laissez-faire years of the Bush Administration.

  • A Food and Drug Administration that was quiescent to the point of being comatose under Bush has sharply stepped up its profile under Obama, issuing flurries of warning letters targeting both familiar brands, like POM Wonderful and Nestlé children's drinks, and up-and-comers like the organic kids' drink First Juice or an anti-nausea potion launched by Reed's Inc.

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