Private Label CSD
The economy will be a
consideration for every business market this year, and carbonated soft
drinks have a particularly difficult situation increasing revenue with the
category’s pricing predicament. The majority of CSDs are sold on some
type of promotion, and the products are being commoditized and losing
image, analysts say.
Beverage Industry’s 2008
Soft Drink Report on page 18 points out that because of the discounting,
consumers are price savvy and have a certain idea of how much a case of
their favorite CSD “should cost.”
“Because of pricing we’ve commoditized
some of our branded products to such a degree that I think that consumers
have really lost the value equation with a Pepsi vs. a private label soda
or a Coca-Cola vs. a private label soda,” says Bump Williams,
executive vice president, general manager for IRI Global Consulting.
Private label CSDs add another dimension to the
pricing situation. While private label CSDs retained about the same share
of the CSD category last year, and they can force competitive pricing,
retailers still need the higher margins and higher spending clientele that
branded products bring to their stores.
Some major retailers are re-examining their private
label businesses and realizing that if they want to capitalize on
premiumization, trading people up or attracting new clientele to their
stores, they need to work with both branded and private label products,
“They are going to be reassessing their shelf
space they dedicate to national brands and private label brands,”
Williams says. “... People still really take pride in having a
branded soft drink in their hand vs. drinking a ‘Bump Soda.’ I
don’t think you can take away from the hundred of billions of dollars
that the major soft drink companies have invested in building that brand
Quarterback gives back
NFL quarterback Dan Marino teamed with Charity Wines,
Winchendon, Mass., to create Vintage 13 from Marino Estates. The company
will donate $1.25 for each bottle of wine sold to The Dan Marino
Foundation, which helps children with developmental disorders. The wine is
available in Merlot, Chardonnay and Cabernet Sauvignon at the retired
athlete’s chain of restaurants located in Florida and Las Vegas, as
well as retailers in Southern Florida. In 2007, Charity Wines raised more
than $400,000 through wine collaborations with Boston Red Sox players Manny
Ramirez and Curt Schilling as well as New Orleans Saints’ Drew Brees
and Bobby Hebert.
Beam Global Spirits & Wine Inc. celebrated the 11
millionth barrel of Jim Beam on Feb. 1. The date marked the first time the
bourbon brand has filled 1 million barrels in less than 3 years, which the
company says shows the worldwide growth of Jim Beam bourbon. The distillery
in Clermont, Ky., hosted a ceremony before the 11 millionth barrel was
transported to the warehouse, where it will age for four years in a charred
oak barrel to develop the distinctive Jim Beam flavor.
The Pennsylvania town named for a chocolate company,
Hershey, scheduled a long list of events for its annual Chocolate Covered
February promotion. Among the events, The Hotel Hershey hosted
Chocolatology lessons each Saturday, in which the hotel’s beverage
manager taught the art of mixing drinks with a chocolate flair. For the
adult visitor, late Saturday afternoon also offered the chance to take part
in a session on Wine & Chocolate Pairings. Starbucks Master Brewer
Sherry Dunbar led a seminar on African Coffee & Chocolate Pairings.
Additionally, all month long the Bears’ Den and Lobby Bar featured
daily chocolate-infused drink specials, including martinis, specialty
beers, cocktails and hot chocolate drinks.
Coors aids deer
Coors Brewing Co., Golden, Colo., announced its
donation of more than 100,000 pounds of spent grain to the Colorado
Division of Wildlife. The spent grain, which is a byproduct of the brewing
process, will be used to help feed hundreds of deer that have had a
difficult time finding natural forage due to heavy snows in the area.
Coors’ donation will join a larger group of food products that will
be formed into large wafers that are easily digestible for the deer.
Colorado’s Gunnison Valley is home to 20,000 deer that have been
challenged to find food due to more than 45 inches of snow that has
fallen on the area.
Cheering up Bloomingdale’s
Cheerwine from Carolina Beverage Corp., Salisbury,
N.C., made an appearance on Valentine’s Day in New York City. The
cherry-flavored soft drink was selected to help promote
Bloomingdale’s multi-day promotional event that celebrated the
opening of the new men’s denim and sneaker floor. A Cheerwine raffle,
a viewing party for the University of North Carolina vs. Virginia Tech game
and plenty of Cheerwine added to the events.