We are now accepting entries for the 2014 Global Packaging Design Awards. The awards recognize the best in beverage packaging design from around the world. They are open to any packages introduced since Sept. 1, 2013. Deadline for entries is August 15th. Winners will be notified by Oct. 1st and will also be featured in the November 2014 edition of Beverage World. Contact firstname.lastname@example.org details on how to enter.
I found it interesting while walking the aisles of the Wine & Spirits Wholesalers of America (WSWA) show last month in Las Vegas just how many different types of beverages—even after all these years-—the average American consumer still has little or no knowledge of. There were numerous importers and distillers from other countries at this year’s show, here to publicize their national drinks to the American market. I covered this to some extent in my write-up about the show, which you can find beginning on page 10 of the May issue of Beverage World. But the space there didn’t really allow me to do justice to the passion these companies have behind their products. Two cases in point are Portón, which sells half of all Peruvian pisco exports to the U.S., and CNS Enterprises, the oldest and largest importer of China’s baijiu to the United States.
During the show I had the pleasure of spending time with one of the world’s foremost experts on pisco, Johnny Schuler. Having Schuler guide you through a personal tasting and exploration of the delights of this unique spirt is a special experience to say the least. It’s rare to meet someone more enamored of a particular beverage. He detailed for me how Portón is made at the 330-year-old distillery in Hacienda La Caravedo in Ica, Peru. That’s right, 330 years old, making it the oldest working distillery in the Americas, according to Schuler. “We consider Pisco to be the fifth white spirit,” he explained to me. “Gin, vodka, rum and tequila are the four big sisters. And we have the new one on the market called pisco. People have to understand that pisco is a category of its own. It’s not like tequila which is made from cactus. It’s not like vodka, made from grain. Pisco’s made from fruit, the grape. So it’s the only white spirit made from a fruit. And Peru has about 380 distilleries that make hundreds or even thousands of different varieties of piscos. So it’s a wonderful, huge, beautiful world, much like the world of cognac in France.”
And yet, ask many Americans about pisco today and they might give you a blank stare. This is especially curious because pisco at one point was enormously popular in some parts of the United States. In fact, if you were to jump in your time machine and travel back to mid-1800s San Francisco, you’d find Pisco Punches being served all over the city. Furthermore, it just so happens that the most popular cocktail in Peru today, the Pisco Sour, was actually created by an American in Peru in 1918—a Mormon, in fact—named Victor Morris.
As for baijiu, the folks with CNS enthusiastically explained to me how much this spirit is an integral part of Chinese culture (and also that of many other Asian countries). The custom is for guests in China to be greeted with a tiny measure—about half an ounce (it is over 100 proof)—of the spirit when they arrive and everyone begins drinking it before they sit down. (I believe I actually witnessed this custom amongst a group of Chinese at a Chinese restaurant in New York City right after WSWA, purely by coincidence. The baijiu kept the diners quite energized, and on their feet very often during the meal!)
Baijiu is actually the top-selling spirit in the world; almost twice as much of it is consumed around the world as vodka. Now it’s heading here, too.
So we are supposed to believe that suddenly the entire world is shunning a refreshing Pepsi or Coke because they have a lot of calories, but can’t wait to get their hands on a Subway sandwich filled with Fritos, or an indulgent new nachos you can gobble up on the go from Taco Bell?
Which is it, because, at least in my mind, the two trends seem to be telling me two things at once—and this is driving me slowly crazy!
Are we really seeing consumers the world over suddenly turn against carbonated soft drinks, or is there something else going on here?
Activist investor Nelson Peltz believes it’s the latter. He would like to see PepsiCo split into two parts: one for its food business, the other for its beverages. And he wants this not because he thinks the beverage part of the business would then slither away into a corner and die like some zombie from “The Walking Dead,” but because he believes it would then be able to thrive under a more “focused leadership.”
I’m inclined to agree with him. And this is despite the synergies “The Power of One” — where PepsiCo’s food and beverages have been used together in some powerful promotions—have brought to PepsiCo. The reason is that in this day and age—“The Age of Creative Disruption”—it’s not hard to see why more intense focus can only benefit a beverage business.
I’m writing this, after all, in the days following the announcement that Comcast plans to buy out Time Warner. And the news just broke that Netlfix is paying Comcast to ensure its pipeline into homes remains free of disruption by the increasingly powerful Comcast. And NBC just noticed how a vast number of its audience turned to their iPads, mobile phone and computers, instead of their TV’s, to watch the Olympics live. And I can go on and on...
Talk about creative disruption!
Our industry’s “creative disruption” can be seen in the interest in the handcrafted and the local over the distant and impersonal. It’s in the craft beer renaissance, where small brewers are giving entrenched global brands a run for their money. Case in point: I recently dined out at a newly opened gastropub in my Queens, N.Y. neighborhood and was able to savor the pub’s new house beer, brewed by the nearby, and newly opened, Queens Brewery. You can’t get much more local than that.
And that’s just beer. We haven’t even touched on the increasing number of new functional beverages—everything from beautifying drinks, to drinks that help you think better, sleep better, or stay alert longer. Or how about the premiumization of just about everything? Think Starbucks’ experimentation with handcrafted sodas.
So it may be that the pickle CSD finds itself in today isn’t so much about consumers running away from high-calorie sodas (as the mainstream media loves to so dramatically describe it) as it is about them just enjoying all the new choices they have.
Beverage companies that can focus 100 percent on navigating their way through all the new opportunities created by this creative disruption probably have a big advantage going forward.
I can’t say I agree with a lot of what Newt Gingrich says, but when he raised the possibility of building a base on the moon during the past election, he got my serious attention.
Allow me to explain.
I’m a huge fan of science-fiction and that goes hand-in-hand with keeping an open mind. So while Newt’s lunar proposal generally was greeted with guffaws and accusations that he had totally lost it, personally, I found it to be one of the only lucid things he said during the election. I think the U.S. benefits in a whole host of ways by its ambitious space program, in ways so far-reaching most of us take it for granted. If you were growing up in India 30 years ago, for instance, and were interested in space exploration, you yearned to go to the U.S. where the opportunity was. The best and the brightest from all over the world wanted to come here because of our space program.
Along these same lines, when Jeff Bezos recently announced during his now infamous “60 Minutes” interview that he wanted to deliver Amazon products using flying drones, he was also generally met with guffaws and accusations that he had totally lost it. Again, my personal view is that such tech advances that seem crazy today often create the future, and maintaining an open mind is the best course of action. Imagine if you had told someone in colonial America that they’d be able to fly in 6 hours from New York to the Pacific?
So when an email recently appeared in my inbox from a company called Emulate3D with a link to a youtube video demonstrating the use of drones for material handling in a warehouse, I did anything but hit ‘delete.’ Qimarox of the Netherlands, a supplier of material handling system components, commissioned Emulate3D to make the video, the link to which is on my blog at beverageworld.com. It demonstrates how drones may soon offer a cost-effective and scalable alternative to traditional palletizing methods. With little superstructure or extensive hardware to install, a drone-based palletizing solution could be deployed rapidly, and should be capable of a relatively high-sustained load throughput, according to Qimarox. Imagine entering a warehouse with drones flying around, carrying bottles or cases of soda or beer or wine from one end of the building to the other? If there are supply chain efficiencies to be gained, this may not be science-fiction for very long. Live Long and Prosper.