I got a call from CNBC to offer a few thoughts on the news that Coke was taking a 10 percent stake in Green Mountain for a cool $1.25 billion. It'll certainly give SodaStream a run for its money and it'll be interesting to see how Pepsi responds in the coming days/weeks. (Another deal in the near future, perhaps? Pepsi is mum).
"Gamechanger" is CNBC's word, not mine. I think it's a bit strong. The deal doesn't necessarily change the game. It does, however, make it a bit more fun to watch.
I know I’ve written about this a bunch of times before, but every time I go abroad I am absolutely floored to discover just how much American craft brewers have been influencing the craft scenes—both established and burgeoning—around the world. And each time I’m in Europe, the extent to which that impact is felt always seems far greater than it was on my prior visit.
Just in the past two months, I returned to a trio of Western European markets known for their own venerable beer traditions. It was those same traditions that previously influenced craft brewers in the U.S. I’m talking about Belgium, Germany and the U.K.
In a column last year, I rhapsodized about the craft beer renaissance in London that very much mirrored the early days of the U.S. boom. I won’t spend too much time on that particular market, except to say that the American craft influence—what I like to call the “brewmerang effect,” wherein beer countries that had inspired small U.S. brewers are now home to a new generation of brewers inspired by the Yanks—seemed far more pronounced than my previous visit, just seven months prior.
Belgium was a true revelation. It had only been two years since my last visit, but the number of breweries making U.S.-inspired hop-forward beers seems to have increased exponentially in that time. They’re also producing styles like imperial stouts and porters and ramping up their whiskey barrel aging activities—including in cooperage that once housed that most American of spirits, bourbon.
American craft brewers have gotten quite adept at producing their own riff on classic Belgian styles. The Belgians are now returning the favor. Of course, it’s not just out of admiration. There’s a real commercial reason. Since about 60 percent of the output from independent Belgian breweries is exported, Belgian brewers now need to compete with the 2,600 or so brewers in a country that was only too recently treated as a punchline on the world brewing stage. That is far from being the case now. And, when it comes to the Belgian styles that American beer consumers have come to love via stateside craft producers, the Belgians might just be asserting themselves a little bit and reminding the world where those varieties were born.
Surely the same dynamic couldn’t be playing out in that other Western European bastion of centuries-old brewing heritage, the lager-centric home of the Reinheitsgebot, Germany. All I needed to do was step foot in the new Berlin gastropub Das Meisterstück to discover how wrong I was. The portrait of Brooklyn Brewery brew master Garrett Oliver on the wall of Das Meisterstück was a pretty good hint as to the types of delights available on tap and in bottles in the Berliner bar/restaurant. We’re not talking just pils and weissbier here. Imperial brown ales, IPAs, stouts, farmhouse ales and other decidedly non-German styles were on the menu—most of which were not imports, but were from new Deutschland breweries.
Europeans no longer find American beer a joke; in fact, U.S. brewers are having the last laugh.
Flavors—sometimes you want ’em, sometimes you don’t. At least that seems to be what is going on in the beverage business these days. For some categories, the greater variety of flavors a beverage can come in, the better. For others, coming out with a bunch of new flavors may actually do more harm than good. The trick is figuring out exactly where your brand falls when it comes to flavor innovation.
So, which beverage categories are ripe for more flavor innovation and which appear to have peaked in this regard?
One category that could see more flavor innovation in this new year is CSDs. It’s a category that could use some new excitement to help reverse declining sales, and some innovative flavors—tastefully done, mind you—could be just what it needs. So far, much of the flavor innovation in soda has been designed to appeal to younger drinkers. But I’ll bet that some grown-up flavors, using more wholesome ingredients, could catch the interest of older drinkers.
On the alcohol front, the new year brings some very interesting developments when it comes to flavors. For one thing, a study released just as 2013 was coming to a close revealed that flavored vodkas—an enormously popular trend which has really boosted this category—may have already peaked in popularity. Restaurant Sciences LLC, , an independent firm that closely tracks food and beverage product sales throughout the foodservice industry in North America, reported that the sales of on-premise flavored vodkas fell 11.7 percent from Q3 2012 to Q3 2013. Analyzing more than 170 million drink orders, the organization uncovered that flavored vodkas lost nearly one percent of their on-premise spirits market share from Q3 2012 to Q3 2013. So, it appears that while flavored vodkas remain quite popular, consumers may not be open to any additional flavors for their vodka in 2014.
Another spirits segment where flavors can be tricky is whiskey. The Wall Street Journal reported that Brown-Forman Corp. Chief Executive Paul Varga plans to take a “conservative” approach to rolling out new flavors for Jack Daniel’s. While Tennessee Honey, introduced in 2011, has done great, Varga and his team have correctly realized that for some beverages, too much flavor can go too far. After all, when it comes to a heritage brand like Jack Daniel’s, already savored so much for its inherent flavor, too much tinkering can probably do more harm than good.
A new year means new opportunties to reap the spoils of victory. Well, the most we can offer you is bragging rights--in the form of a gold, silver or bronze medal in our Fifth Annual BevStar Awards.
We've made a few tweaks this year to the competition that recognizes innovation across all major categories of liquid refreshment and beverage alcohol.
This isn't a traditional contest where the judges taste and grade. While the tasting is a key component of our judging criteria, we also select the winners based on innovation in ingredients, packaging design, market positioning and the overall value proposition the product represents.
We'll be selecting winners in categories we always have, with a few tweaks here and there. (The quality and quantity of entries we've received in the past guides us in fine tuning those categories.)
Those categories include:
• Carbonated Soft Drinks
• Bottled Water (including enhanced/value-added water)
• Energy & Functional Beverages (or "New Age," if you will, though the segments aren't so new anymore)
• Hard Cider (This exploding segment gets its own category this year)
• Wine, Sake, Mead & Alternative Alcohol Beverages (FMBs and flavored alcohol beverages also fit in here)
• Ready-to-Drink Tea & Coffee
• Juice & Juice Drinks
You can enter as many products as you like, as long as they were introduced to the market between June 1, 2012 and March 1, 2014.
To enter, please e-mail the following to firstname.lastname@example.org:
1. Product Name
2. Parent Company
3. Contact Information
4. High-Resolution Product Image
5. A BRIEF description of the product and why you think it should win (maximum: 75 words)
6. Names of any packaging/labeling design, branding, ingredient and closure companies that played a role in helping to create the brand (very important).
If your entry qualifies, you'll receive an e-mail detailing where to ship a product sample.
If you make it to the product sample phase of the competition, I'd like to request that for the sake of the environment, tidiness and (mostly) sanity, please do not use foam packing peanuts when shipping your beverages.