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Beverage Industry Insider - April 30, 2008

April 29, 2008

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Organics show hits Chicago

The Global Food & Style Expo 2008 took place in Chicago this week, and brought exhibitors from around the world to display products. With 120,000 square feet of exhibition space in McCormick Place, more than 1,000 exhibitors with more than 56,000 products were looking to gain market presence. The Expo included three shows: the Spring Fancy Foods Show, All Things Organic and U.S. Food Export Showcase, and for the first time, was held separate from the Food Marketing Institute’s annual trade show. Keynote addresses included a presentation by chef and restaurant owner Bobby Flay, and a global retailer forum with Robert Neslund, Sharon Jeske, Bobbi Goselin and John Moore. In addition, the show featured an educational program with 40 seminars, workshop and industry tours.

Beverage companies had a particularly strong showing, especially at All Things Organic, which included everything from vodka to tea to juice and milk. Stand-out ingredients included yerba mate, pomegranate, cherry juice concentrate and yumberry. In addition, many beverage companies were eager to discuss their efforts to reduce their carbon footprint and increase sustainable practices. A common phrase heard on the show floor was “good for you and good for the environment.”

According to the Organic Trade Association, which sponsored the show, organic beverage and food sales for 2007 are projected to grow by 18 percent from a $16.7 billion base in 2006, to an estimated $19.7 billion. This is the eighth year for All Things Organic, and the fifth time the show was held in Chicago.



Top bottlers see growth in Q1

The Pepsi Bottling Group, Somers, N.Y., and Coca-Cola Enterprises, Atlanta, reported growth in the first quarter of 2008, despite the challenges that both companies reported in the U.S. cold drink channel and the U.S. economy overall.

PBG said worldwide revenue was up 7 percent to $2.7 billion for the quarter. Volume in the United States and Canada was up 2 percent, while European volume grew 7 percent, driven by double-digit growth in Russia. In Mexico, volume was up 2 percent.

Net revenue per case grew 3 percent in the United States and Canada, the company said, “with pricing gains and foreign currency translation offset by a negative mix impact due to declines in the cold drink channel and shifts into take-home volume due to Easter occurring in the first quarter of 2008 as compared to the second quarter of 2007.”

“The diversity and strength of our geographic portfolio, combined with significant cost productivity gains, helped offset a challenging macroeconomic environment in the U.S.,” said Eric Foss, president and chief executive officer at PBG, in a statement.

CCE also reported a revenue increase of 7 percent for the quarter. “Softer-than-expected volume in North American single-serve packages, particularly in sparkling beverages and Dasani,” resulted in flat volumes in bottle and can cases in North America. Volume in Europe was up 7 percent for the quarter, including an 11 percent increase in Great Britain and a 4 percent increase overall.

Weakness in the U.S. economy tempered results for the quarter, CCE Chairman and Chief Executive Officer John Brock said in a statement. But he added, “We believe topline trends in Europe, coupled with the improvement generated by North American operating and brand initiatives, will enable us to achieve solid earnings growth.” Read more about Coca-Cola Enterprises and Pepsi Bottling Group's first quarter results.



Pyramid, Magic Hat to merge

Pyramid Breweries Inc., Seattle, and Magic Hat Brewing Co., Burlington, Vt., announced they have signed a letter of intent for Magic Hat to acquire Pyramid.

“The combination of these two well-established, high-profile craft breweries will be very complementary given our respective brand portfolios and the geographies in which we predominantly operate,” said Pyramid Chief Executive Officer Scott Barnum in a statement. “Additionally, there will be a number of important benefits for Pyramid to be part of a private company vs. continuing to operate as a stand-alone public entity. This consolidation makes both good strategic and financial sense and is well timed, particularly as the beer industry’s competitive dynamics continue to intensify."

If the merger is completed, Pyramid will continue to have offices in Seattle, he added. The proposed transaction is subject to the negotiation and execution of a definitive merger agreement, the companies said in the statement. Read more on the proposed merger.



Mountain Valley adds new distribution

Mountain Valley Spring Co., Hot Springs, Ark., has added Earl Gaudio & Son Inc., Tilton, Ill., and College City Beverage, Dundas, Minn., as distributors of its bottled water products.

Earl Gaudio & Sons is a distributor of Anheuser-Busch and non-alcohol beverages, covering 15 counties in Illinois and Indiana. College City Beverage also is an Anheuser-Busch distributor, and carries a number of imports, craft beers and non-alcohol brands.



Manhattan Beer Distributors gets Coors’ top award

Manhattan Beer Distributors received Molson Coors Brewing Co.’s 2007 Founder’s Award at the Molson Coors National Convention in Denver. The distributor was selected from among more than 400 Molson Coors wholesalers in the United States, and was recognized for its sales, quality, execution, individual market achievements, collaboration and supplier/wholesaler relationship.

Manhattan Beer Distributors also won one of five President’s Awards that were presented to distributors in Molson Coors’ Northeast Region. A total of twenty President’s Awards were presented in the four Molson Coors Regions throughout the United States.

Simon Bergson, president and chief executive officer at Manhattan Beer Distributors, said, “We are very proud to be the recipient of the 2007 Molson Coors Founder’s Award. To be considered among the best of hundreds of capable Molson Coors distributors is a special honor. This outstanding achievement is a tribute to the daily contributions made by everyone at Manhattan Beer Distributors. Now the stage is set for another Founder’s Award next year.”



Crystal Light

Crystal Light Live Active

Kraft Foods Inc., Northfield, Ill., released Crystal Light Focus Citrus Splash, Metabolism+ Peach Mango Green Tea and Red Tea Mandarin. The sugar-free drink mixes are enhanced with vitamins and minerals have five calories per serving. Kraft also added to its LiveActive line of products with Crystal Light LiveActive On The Go Drink Mixes. Available in Natural Mixed Berry and Natural Raspberry Peach flavors, Crystal Light LiveActive provides 3 grams of inulin, a prebiotic fiber, 100 percent of the daily value of vitamin C and 10 calories per serving. See the whole line of products.



Honest Tea

Honest Tea

Honest Tea, Bethesda, Md., released a new lineup of five teas in PET bottles with new graphics on the labeling. The portfolio includes three new tea introductions and revised formulations for Honey Green Tea and Pomegranate White Tea with Acai. All of the teas are USDA Organic and remain at less than 40 calories per serving. Lemon Black, Peach White and Citrus Green Energy Teas are the new additions to the line. Find out more about the new lineup.



Sambazon Amazon Energy

Sambazon Amazon Energy

Sambazon, San Clemente, Calif., created Amazon Energy, an organic energy drink made with acai, other “superfruits” and botanicals. The energy drink features acerola, an exotic citrus fruit that helps deliver more than 1,000 percent of the recommended daily allowance of vitamin C per can. Amazon’s energy blend combines Brazilian guarana and Guayaki yerba maté. Read more about Amazon Energy




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