Pepsi debuts eco-friendly bottle

PepsiCo's new non-carbonated beverage bottle uses 20 percent less plastic.

Pepsi-Cola, Purchase, N.Y., is getting set to roll out what it says is its lightest 500-ml. non-carbonated beverage bottle. The company reduced the amount of plastic in the bottle by 20 percent, and expects to have the new packages on store shelves this month.

The new bottle will be used for products such as Lipton Iced Tea, Tropicana juice drinks, Aquafina FlavorSplash and Aquafina Alive flavored waters. It will be available in 12-packs and 24-packs. In addition to a 20 percent reduction in the amount of plastic resin, the packaging initiative includes a 10 percent reduction in the size of the label, and a 5 percent reduction in the amount of shrinkwrap film used to wrap the multi-packs.

Pepsi says the bottle was developed by a cross-functional team of experts from within and outside the company, and the new bottle was one of more than 30 aesthetic designs that were tested.

"As a company, we've challenged ourselves to consistently identify ways to lessen our impact on the environment, and in this case we're doing a little 'plastic surgery,'" Robert Lewis, vice president of worldwide beverage packaging and equipment development at PepsiCo, said in a statement. "We're constantly striving to make our packaging an even smaller part of the waste stream and this new bottle is just one of many examples.

"The challenge was to deliver significantly lighter packaging that would provide the same shelf life as the heavier bottle, withstand the manufacturing and distribution process yet not compromise aesthetics," he added. "After a full year of hard work from multiple corners of the company, we hit the trifecta - a bottle that satisfied the needs of our system, our consumers and the environment."

Economic conditions a boon and a test for food retailers

Supermarket industry sales increased 4.6 percent in 2007, and same-store sales rose 4.2 percent, which marked the largest increases in more than a decade, according to the “Food Retailing Industry Speaks: Annual State of the Industry Review 2007” survey that was released at this week’s Food Marketing Institute (FMI) show in Las Vegas. Supermarket gains, however, were largely offset by the 4.2 percent food-at-home inflation rate last year, FMI says.

Mid-sized food retailers (31-100 stores) posted the highest growth figures with overall sales increasing 7.4 percent and same-store sales 6.5 percent. The increases among independent retailers (1-10 stores) and the largest chains (500 or more stores) were closer to the industry medians. Among independents, overall sales grew 4.6 percent and same-store sales 4.4 percent. For the largest chains, these growth figures were 5.2 percent and 4.2 percent, respectively.

“The industry performed quite well in an extraordinarily challenging year,” said FMI President and Chief Executive Officer Tim Hammonds. “Companies managed spikes in energy, commodity, healthcare and credit card interchange costs, along with relentless competition in the industry.”

Looking at the future, FMI found retailers are concerned about a number of issues, including energy costs, healthcare costs, competition from other retailers credit/debit card interchange costs, the local and national economy, and food safety.

Consumers are cooking at home more and eating less at restaurants, increasing retail sales, the association said. At the same time, they are taking measures to save money at the store. Retailers are divided over the effect of a recessionary economy: 58.3 percent believe it will reduce sales and profits, while 41.7 percent foresee increases.

FMI also released the results of its “U.S. Grocery Shopper Trends 2008” study at the show, which shows consumers are buying fewer luxury products this year and more store brand items. The high cost of fuel is causing consumers to make fewer trips – less than two trips per week for the second year in a row. The association says food retailers can play on those trends by emphasizing the social benefits of at-home meals for children and families, as well as the tendency to eat and drink healthier at home than in restaurants.

FMI has included additional information on both studies on its Web site at fmi.org.

Starbucks, Pepsi ready energy coffee

The North American Coffee Partnership between Starbucks, Seattle, and PepsiCo, Purchase, N.Y., will introduce Starbucks DoubleShot with Energy, the companies said last week. Starbucks also said it will debut a new health and wellness platform and a new frozen beverage in its retail locations.

The announcements were made at the same time as Starbucks’ second-quarter results, which saw consolidated net revenues increase 12 percent to $2.5 billion. Net earnings for the period ending March 30 were $108.7 million vs. $150.8 million for the same period last year. Earnings per share were $0.15 vs. $0.19 for the same period a year ago. The company says costs associated with its transformation agenda and charges related to the rationalization of its store portfolio negatively impacted earnings per share by about $0.03 per share.

“Fiscal 2008 is a transitional year for Starbucks, and while our financial results are clearly being impacted by reduced frequency to our U.S. stores, we believe that as we continue to execute on the initiatives generated by our transformational agenda, we will reinvigorate the Starbucks experience for our customers, and in doing so, deliver increased value to our shareholders,” Howard Schultz, chairman, president and chief executive officer, said in a statement.

The new energy coffee product will be sold outside of Starbucks stores through its Consumer Products Group, and is the first energy product for the Starbucks/PepsiCo partnership. The health and wellness platform will include food offerings as well as protein and fruit blended beverages. In addition, the company says it has partnered with an Italian company on a product that it says will represent a new category of beverages with both an indulgent and refreshing profile. The new platform will launch in California by mid-summer.

"I haven't tasted anything this good in a long time," Schultz said in a memo to employees posted on the company's Web site. "We are confident that our unique new beverage category will be received with great enthusiasm by our customers in California, and set the stage for our national launch in fiscal year '09."

Clear Choice winners announced

The Glass Packaging Institute, Washington, D.C., named the winners of the Clear Choice Awards yesterday in Las Vegas. Eight of the top designs were beverage packages. Among the winners were:

Beer: Miller Chill from Miller Brewing Co., in a bottle from Owens Illinois

Wine: Tin Roof Chardonnay and Cabernet Sauvignon from White Rocket Wine Co., in a bottle from Saint-Gobain Containers Inc.

Carbonated Beverage: Q Tonic from Q Tonic, in a package from Vitro Packaging and Flow Design Inc.

Non-Carbonated Beverage: Xango from Xango LLC, in a bottle from Anchor Glass and Flow Design Inc.

Distilled Spirit: UV Vodka from Phillips Distilling Co., in a bottle from Anchor Glass

Organic Beverage: Tizane Beverages from Tizane Beverages, in a bottle from Leone Industries

Flavored Alcoholic Beverage: Sake2me from Sake2me LLC, in a bottle from Vitro Glass and Spear.

Overall Package Design: Rose’s Mojito from Cadbury Schweppes Beverages Americas, in a bottle from Vitro Packaging

On the non-beverage side, On the Border Salsa from Truco Enterprises won for the Food category; Del Monte Organic Pickles from M.A. Gedney Co. won the Organic Food category; Avon Anew Clinical from Avon Products Inc. received the award in the Cosmetic and Fragrance Products category; and Red Gold Salsa was the winner in the Conversion Recognition category.

GPI also recognized the Orange Community Recycling Division of the Orange County Solid Waste Management Department for Outstanding Sustainable Practices. The group’s commercial recycling program now serves more than 140 businesses with source-separated collection of glass bottles and jars, metal cans, plastic bottles and mixed paper. The program collects more than 640 tons annually.

The Glass Packaging Institute has posted detailed information on all the Clear Choice winners on its Web site at gpi.org.

 

ABA names new board members

The American Beverage Association (ABA) elected five new members to its board of directors last week, including Rodger L. Collins, president, bottling group sales at Cadbury Schweppes Americas Beverages; Hugh F. Johnston, president, Pepsi-Cola North America; Robert M. Levi, group vice president and president, beverages sector for Kraft Foods; Lawrence J. Lordi, president, Coca-Cola Bottling Co. of Northern New England; and Claude B. Nielsen, chairman and chief executive officer at, Coca-Cola Bottling Co. United Inc.

"I am pleased to welcome these new members to the ABA family and look forward to working with them on the wide-variety of challenging and exciting issues currently facing our industry," said Jack Pelo, chairman of the board of directors and president and chief executive officer of Swire Coca-Cola USA. "Our industry is leading the way on a variety of fronts, including school wellness and environmental stewardship, and with the addition of these new members we will further strengthen our organization's outreach."

Members of ABA's board of directors serve a four-year term and participate in semi-annual meetings. With the election of the new members, there are now 24 members on ABA's board.

Hydrive S

Hydrive Energy LLC, Rye, N.Y., introduced Hydrive S (for Strength), a blue raspberry flavor that joins its lineup of non-carbonated Hydrive energy drinks. The product is enhanced vitamin B-12, caffeine, maca root, ginkgo biloba, d-ribose and l-leucine. Like the rest of the Hydrive lineup, it also contains 6 grams of sugar, 30 calories, and a blend of electrolytes and amino acids. The product is packaged in a 15.5-ounce PET "gripper" bottle.

Drenchers Super Juice

NBI Juiceworks, Orlando, Fla., introduced Drenchers Super Juice, a line of 100 percent enhanced juices. Each 8-ounce serving is said to provide two servings of fruit and/or vegetables. Each of the varieties include at least 15 vitamins, as well as herbs, electrolytes and amino acids. Endurance is Grape Apple flavor; Power is Orange Crème flavor and also contains 20 grams of protein per 8-ounce serving; Restore is Apple Kiwi Mango flavor. The Drenchers line debuted at the FMI Show this week, and is available in both 12-ounce and 64-ounce bottles.

Bawls Exxtra

Bawls Guarana, Miami, launched Guarana Exxtra with 50 percent more caffeine than its original product. The product is a reformulation of sugar-free Bawls Guaranexx, and contains 96 mg. of caffeine per 10-ounce serving. It is available in 10-ounce bumped glass bottles and 16-ounce color-changing cans.